MPLX LP Announces Second-Quarter 2013 Results
(Thomson Reuters ONE) -
* Achieved adjusted EBITDA of $26.7 million
* Generated $27.2 million of distributable cash flow
* Increased quarterly cash distribution by $0.0125 (4.6 percent) to $0.2850
per unit
FINDLAY, Ohio, Aug. 1, 2013 - MPLX LP (NYSE: MPLX) today reported second-quarter
net income attributable to MPLX of $18.6 million, or $0.26 per common limited
partner unit. Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) attributable to MPLX were $26.7 million and distributable
cash flow attributable to MPLX was $27.2 million.
On July 23, the board of directors declared a distribution of $0.2850 per unit.
This represents an increase of $0.0125 per unit, or 4.6 percent, above the
first-quarter 2013 distribution of $0.2725 per unit.
On May 1, MPLX acquired an additional 5 percent interest in MPLX Pipe Line
Holdings LP from a subsidiary of Marathon Petroleum Corporation (NYSE: MPC) for
$100 million. This represents MPLX's first acquisition following its initial
public offering (IPO) in October 2012.
"MPLX's strategically located assets, and the talented workforce operating them,
continue to deliver excellent performance for our unitholders," said Gary R.
Heminger, chairman and chief executive officer. "Consistent with our commitment
to provide unitholders with an attractive long-term distribution growth profile,
the board of directors has increased our distribution again this quarter,
reflecting our confidence in MPLX's outlook. This increase in the distribution
is consistent with our intent to maintain a distribution growth rate of 15 to
20 percent for at least the next several years."
Discussion of results
MPLX revenues and other income for the second quarter of 2013 were $122.2
million, driven primarily by total pipeline throughput of 2.03 million barrels
per day. MPC (MPLX's general partner) and related parties accounted for 89
percent of revenues, including revenues attributable to volumes shipped by MPC
under joint tariffs with third parties, which are treated as third-party revenue
for accounting purposes. After deducting the interest retained by MPC, adjusted
EBITDA attributable to MPLX for the second quarter of 2013 was $26.7 million.
During the second quarter of 2013, MPC did not ship its minimum committed
volumes on certain MPLX pipeline systems. While payments for such deficiencies
are not included in determining net income or adjusted EBITDA, they are included
in distributable cash flow attributable to MPLX.
As of June 30, 2013, MPLX had $115.3 million of cash and cash equivalents,
including proceeds from the IPO that were retained to prefund capital projects.
During the 2013 second quarter, MPLX used $100 million of cash to purchase an
additional 5 percent interest in MPLX Pipe Line Holdings LP. MPLX has a $500
million unused revolving credit facility available to pursue growth
opportunities.
Conference call
At 2 p.m. EDT today, MPLX will hold a webcast and conference call to discuss the
reported results and provide an update on operations. Interested parties may
listen to the conference call on MPLX's website at http://www.mplx.com by
clicking on the "Second-Quarter 2013 Financial Results" link, found under the
"News & Headlines" section. Replays of the conference call will be available on
MPLX's website through Thursday, Aug. 15. Information, including the earnings
release and other investor-related material, will also be available online prior
to the webcast and conference call at http://ir.mplx.com.
# # #
About MPLX LP
MPLX is a fee-based, growth-oriented master limited partnership formed in 2012
by Marathon Petroleum Corporation to own, operate, develop and acquire pipelines
and other midstream assets related to the transportation and storage of crude
oil, refined products and other hydrocarbon-based products. Headquartered in
Findlay, Ohio, MPLX's assets consist of a majority equity interest in a network
of common carrier crude oil and products pipeline assets located in the Midwest
and Gulf Coast regions of the United States and a 100 percent interest in an
approximately 1 million barrel butane storage cavern located in West Virginia.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Media Contacts:
Angelia Graves (419) 421-2703
Jamal Kheiry (419) 421-3312
Non-GAAP Financial Information
In addition to our financial information presented in accordance with U.S.
generally accepted accounting principles (GAAP), management utilizes additional
non-GAAP measures to facilitate comparisons of past performance and future
periods. This news release and supporting schedules include the non-GAAP
measures of adjusted EBITDA and distributable cash flow. We believe certain
investors use adjusted EBITDA to evaluate MPLX's financial performance between
periods and to compare MPLX's performance to certain competitors. We believe
certain investors use distributable cash flow to determine the amount of cash
generated from the partnership's operations and available for distribution to
its unitholders. These additional financial measures are reconciled from the
most directly comparable measures as reported in accordance with GAAP and should
be viewed in addition to, and not in lieu of, our consolidated financial
statements and footnotes.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements relate to, among other
things, MPLX's expectations, estimates and projections concerning MPLX business
and operations. You can identify forward-looking statements by words such as
"anticipate," "believe," "estimate," "expect," "forecast," "project," "could,"
"may," "should," "would," "will" or other similar expressions that convey the
uncertainty of future events or outcomes. Such forward-looking statements are
not guarantees of future performance and are subject to risks, uncertainties and
other factors, some of which are beyond MPLX's control and are difficult to
predict. Factors that could cause actual results to differ materially from those
in the forward-looking statements include: the adequacy of our capital resources
and liquidity, including, but not limited to, availability of sufficient cash
flow to pay distributions and execute our business plan; the timing and extent
of changes in commodity prices and demand for crude oil, refined products,
feedstocks or other hydrocarbon-based products; volatility in and/or degradation
of market and industry conditions; completion of pipeline capacity by our
competitors; disruptions due to equipment interruption or failure, including
electrical shortages and power grid failures; the suspension, reduction or
termination of MPC's obligations under our commercial agreements; our ability to
successfully implement our growth strategy, whether through organic growth or
acquisitions; state and federal environmental, economic, health and safety,
energy and other policies and regulations; other risk factors inherent to our
industry; and the factors set forth under the heading "Risk Factors" in MPLX's
Annual Report on Form 10-K for the year ended Dec. 31, 2012, filed with the
Securities and Exchange Commission (SEC). In addition, the forward-looking
statements included herein could be affected by general domestic and
international economic and political conditions. Unpredictable or unknown
factors not discussed here or in MPLX's Form 10-K could also have material
adverse effects on forward-looking statements. Copies of MPLX's Form 10-K are
available on the SEC website, MPLX's website at http://ir.mplx.com or by
contacting MPLX's Investor Relations office.
Results of Operations
Factors Affecting Comparability
The following tables present net income attributable to MPLX, adjusted EBITDA
attributable to MPLX and related financial and operational information for the
three-month and six-month periods ended June 30, 2013, and June 30, 2012. Prior
to the IPO on Oct. 31, 2012, MPLX results included minority undivided joint
interests in two crude oil pipeline systems that were not contributed to MPLX at
the IPO. One hundred percent of the net income related to the assets that were
contributed to MPLX was included in results for the three and six months ended
June 30, 2012, while results for the three and six months ended June 30, 2013,
reflect only MPLX's general partner interest by deducting the interest retained
by MPC. The Neal, W.Va., butane cavern financial results are only included in
the three and six months ended June 30, 2013. Additional differences in revenues
and expenses are detailed in the factors affecting the comparability of our
financial results in the Management's Discussion and Analysis of Financial
Condition and Results of Operations section of MPLX's Annual Report on Form 10-
K. The unaudited combined financial results of MPLX LP Predecessor
(Predecessor), our predecessor for accounting purposes, are presented for the
three and six months ended June 30, 2012. We have not presented distributable
cash flow attributable to MPLX for the three and six months ended June
30, 2012, since that period was prior to the IPO.
--------------------------------------------------------------------------------
Results of Operations (unaudited) Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per-unit
data) 2013 2012 2013 2012
--------------------------------------------------------------------------------
Predecessor Predecessor
Revenues and other income:
Sales and other operating
revenues $ 18.8 $ 18.1 $ 39.6 $ 33.9
Sales to related parties 97.3 87.5 186.4 169.2
Loss on sale of assets - (0.3) - (0.3)
Other income 0.9 1.7 2.1 3.3
Other income - related parties 5.2 3.4 8.8 6.4
Total revenues and other
income 122.2 110.4 236.9 212.5
Costs and expenses:
Cost of revenues (excludes
items below) 35.6 44.4 66.1 82.5
Purchases from related parties 23.8 7.3 45.6 13.6
Depreciation 11.9 9.2 23.6 18.4
General and administrative
expenses 13.9 17.0 27.4 26.9
Other taxes 1.8 3.0 3.5 6.7
Total costs and expenses 87.0 80.9 166.2 148.1
Income from operations 35.2 29.5 70.7 64.4
Related party interest and
other financial income - 0.4 - 0.8
Interest and other financial
income (costs) (0.3) - (0.5) -
Income before income taxes 34.9 29.9 70.2 65.2
Provision for income taxes 0.1 0.1 0.1 0.2
Net income 34.8 29.8 70.1 65.0
Less: Net income attributable
to MPC-retained
interest 16.2 - 33.9 -
Net income attributable to MPLX LP 18.6 $ 29.8 36.2 $ 65.0
Less: General partner's
interest in net income
attributable to MPLX LP 0.3 0.7
Limited partners' interest in net
income attributable to MPLX LP $ 18.3 $ 35.5
Net income attributable to MPLX LP
per limited partner unit:
Common (basic) $ 0.26 $ 0.53
Common (diluted) 0.26 0.52
Subordinated (basic and
diluted) 0.23 0.44
Limited partner units outstanding
(basic and diluted):
Common units - Public 19.9 19.9
Common units - MPC 17.1 17.1
Subordinated units - MPC 37.0 37.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other Financial Six Months Ended
Information
(unaudited) Three Months Ended
June 30 June 30
(In millions, except
per-unit and ratio 2013 2012 2013 2012
data)
--------------------------------------------------------------------------------
Predecessor Predecessor
Quarterly distribution N/A N/A
declared per unit $ 0.2850 $ 0.5575
Adjusted EBITDA $ 38.7 $ 82.8
attributable to MPLX
LP $ 26.7 $ 51.8
Distributable cash N/A N/A
flow attributable to
MPLX LP $ 27.2 $ 55.2
Distribution declared:
Limited N/A N/A
partner units - Public $ 5.7 $ 11.1
Limited N/A N/A
partner units - MPC 15.4 30.1
General N/A N/A
partner units - MPC 0.4 0.8
N/A N/A
Total distribution
declared $ 21.5 $ 42.0
Coverage ratio 1.27x 1.31x
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Reconciliation
of Adjusted
EBITDA
attributable to
MPLX LP and
Distributable
Cash Flow
attributable to
MPLX LP to Net
Income
(unaudited) Three Months Ended Six Months Ended
June 30 June 30
(In millions) 2013 2012 2013 2012
--------------------------------------------------------------------------------
Predecessor Predecessor
Net Income $ 34.8 $ 29.8 $ 70.1 $ 65.0
Less: Net
income
attributable to
MPC-retained
interest 16.2 - 33.9 -
Net income
attributable to
MPLX LP 18.6 29.8 36.2 65.0
Add: Net
income
attributable to
MPC-retained
interest 16.2 - 33.9 -
Depreciation 11.9 9.2 23.6 18.4
Provision for
income taxes 0.1 0.1 0.1 0.2
Non-
cash equity-
based
compensation 0.3 - 0.5 -
Net
interest and
other financial
costs (income) 0.3 (0.4) 0.5 (0.8)
Adjusted EBITDA 47.4 38.7 94.8 82.8
Less: Adjusted
EBITDA
attributable to
MPC-retained
interest 20.7 - 43.0 -
Adjusted EBITDA
attributable to
MPLX LP 26.7 $ 38.7 51.8 $ 82.8
Less: Cash
interest paid,
net - 0.2
Income
taxes paid - -
Maintenance
capital
expenditures
paid 2.3 3.8
Plus: Increase
(decrease) in
deferred revenue
for committed
volume
deficiencies 2.8 7.4
Distributable
cash flow
attributable to
MPLX LP $ 27.2 $ 55.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA attributable
to MPLX LP and Distributable Cash Flow
attributable to MPLX LP to Net Cash Provided by
Operating Activities (unaudited) Six Months Ended
June 30
(In millions) 2013 2012
--------------------------------------------------------------------------------
Predecessor
Net cash provided by operating activities $ 108.6 $ 94.9
Less:
Changes in working capital items 17.5 13.7
All other, net (1.0) (0.8)
Plus: Non-cash equity-based compensation 0.5 -
Net loss on disposal of assets - (0.3)
Net interest and other financial costs
(income) 0.5 (0.8)
Current income tax expense 0.1 0.2
Asset retirement expenditures 1.6 1.7
Adjusted EBITDA 94.8 82.8
Less: Adjusted EBITDA attributable to MPC-
retained interest 43.0 -
Adjusted EBITDA attributable to MPLX LP 51.8 $ 82.8
Less: Cash interest paid, net 0.2
Income taxes paid -
Maintenance capital expenditures paid 3.8
Plus: Increase (decrease) in deferred revenue
for committed
volume deficiencies 7.4
Distributable cash flow attributable to MPLX LP $ 55.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Selected Operating Data Six Months Ended
(unaudited) Three Months Ended
June 30 June 30
2013 2012 2013 2012
--------------------------------------------------------------------------------
Predecessor Predecessor
Pipeline throughput (thousands
of barrels per day):
Crude oil pipelines 1,075 1,193 1,075 1,157
Product pipelines 959 954 939 935
Total 2,034 2,147 2,014 2,092
Average tariff rates ($ per
barrel):
Crude oil pipelines $ 0.60 $ 0.55 $ 0.59 $ 0.53
Product pipelines 0.56 0.48 0.54 0.48
Total pipelines 0.58 0.52 0.57 0.51
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Selected Financial Three Months Ended Six Months Ended
Data (unaudited) June 30 June 30
(In millions) 2013 2012 2013 2012
--------------------------------------------------------------------------------
Predecessor Predecessor
Capital Expenditures
((a)):
$ $
Maintenance 5.6 $ 5.9 7.8 $ 8.6
Expansion 28.4 41.4 38.8 58.3
Total capital
expenditures 34.0 47.3 46.6 66.9
Less: Increase
in capital accruals 1.2 9.4 4.2 10.4
Asset
retirement
expenditures 1.2 0.7 1.6 1.7
Additions to property, $ $
plant and equipment 31.6 $ 37.2 40.8 $ 54.8
--------------------------------------------------------------------------------
(a) Excludes $100 million acquisition of an additional 5 percent interest in
MPLX Pipe Line Holdings LP.
--------------------------------------------------------------------------------
Balance Sheet Data (unaudited) June 30 March 31
(In millions, except ratio data) 2013 2013
--------------------------------------------------------------------------------
Cash and cash equivalents $ 115.3 $ 227.9
Total assets 1,217.7 1,311.9
Long-term debt((a)) 10.9 11.1
Total equity 1,128.6 1,236.2
Consolidated Total Debt to Consolidated EBITDA
ratio (covenant basis) 0.1 0.1
--------------------------------------------------------------------------------
(a) Represents a capital lease. Includes amounts due within one year.
MPLX LP 2013 2Q Results:
http://hugin.info/155038/R/1720303/572672.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: MPLX LP via Thomson Reuters ONE
[HUG#1720303]
Datum: 01.08.2013 - 13:28 Uhr
Sprache: Deutsch
News-ID 283989
Anzahl Zeichen: 26278
contact information:
Town:
FINDLAY
Kategorie:
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