MPLX LP Reports Third-Quarter 2014 Financial Results
(Thomson Reuters ONE) -
* Reported adjusted EBITDA of $40.2 million and distributable cash flow
of $33.4 million
* Increased distribution to $0.3575 per common unit, 4.4 percent over second
quarter
* Announced plans to substantially accelerate growth of the partnership
* Marathon Petroleum Corporation has offered to sell its remaining 31 percent
interest in MPLX Pipe Line Holdings to MPLX
FINDLAY, Ohio, Oct. 30, 2014 - MPLX LP (NYSE: MPLX) today reported third-quarter
2014 net income attributable to MPLX of $29.1 million, or $0.37 per common
limited partner unit, compared with $21.5 million, or $0.29 per common limited
partner unit, for the third quarter of 2013. Third-quarter 2014 adjusted
earnings before interest, taxes, depreciation and amortization (EBITDA)
attributable to MPLX were $40.2 million and distributable cash flow attributable
to MPLX was $33.4 million.
"We are pleased with our ability to provide meaningful returns to our
unitholders, and we are constantly evaluating our strategic options to better
serve the energy market," said Gary R. Heminger, chairman and chief executive
officer.
On Oct. 21, the MPLX board of directors declared a distribution of $0.3575 per
unit. This distribution represents an increase of $0.015 per unit, or 4.4
percent, over the second-quarter 2014 distribution of $0.3425 per unit and an
increase of 20.2 percent over the third-quarter 2013 distribution. Since the
partnership's initial public offering in October 2012, the MPLX board has
authorized distribution increases for seven consecutive quarters, representing a
compound annual growth rate of 19.3 percent over its minimum quarterly
distribution.
Heminger noted that MPLX plans to substantially accelerate its growth. MPLX
expects to provide unitholders an average annual distribution growth rate
percentage in the mid-20s over the next five years as it builds meaningful scale
more quickly. This increased scale provides MPLX with greater flexibility to
fund organic projects and to pursue acquisition opportunities. By the end of
2015, MPLX expects to triple its annualized run-rate EBITDA versus third-quarter
2014 annualized run-rate EBITDA. In support of this plan, the Marathon Petroleum
Corporation (MPC) board of directors has authorized the sale of MPC's remaining
31 percent interest in MPLX Pipe Line Holdings LP to MPLX. If the MPLX board of
directors approves the transaction, it would be expected to be financed with a
combination of debt and equity, which could include transactions with the
sponsor.
In addition to acquisitions of MPC's midstream assets, Heminger pointed to
MPLX's organic growth as a critical factor in its future success. "During the
third quarter, we completed a successful non-binding open season for our
proposed 50-mile Cornerstone Pipeline and other build-out projects," said
Heminger. "These would help MPC leverage growing Utica production in eastern
Ohio and position MPLX to participate in the development of infrastructure to
meet the needs of producers, processors, other refiners and marketers to move
natural gas liquids." Cornerstone would connect Utica condensate and natural gas
liquids processing facilities to MPC's refinery in Canton, Ohio, and other
build-out projects would provide service to additional Midwest markets beyond
eastern Ohio. MPLX also is exploring options to deliver natural gas liquids to
the Chicago, Ill., area and to pipelines that supply diluent to Western Canada.
Heminger noted that MPC's recent acquisition of Hess' retail operations expanded
MPC's strategic options and increased fuels distribution volumes that represent
MLP-qualifying income. "MPC's large and growing portfolio of qualifying assets,
combined with Cornerstone and other organic projects, represent a substantial
source of potential growth for MPLX unitholders over an extended period of
time," he said.
Discussion of Results
MPLX revenues and other income for the third quarter of 2014 were $138 million,
compared with $123.8 million for the third quarter of 2013. The increase in
revenues and other income was primarily due to higher pipeline tariff rates and
revenue recognized for volume deficiency credits. Average pipeline tariff rates
increased $0.05 per barrel compared to the third quarter of 2013. These revenue
increases substantially exceeded the impact of lower throughput in the third
quarter of 2014 compared to the same period in 2013. Comparing the third
quarters of 2014 and 2013, MPC and related parties accounted for 92 and 89
percent, respectively, of those revenues, including revenues attributable to
volumes shipped by MPC under joint tariffs with third parties.
After deducting MPC's retained interest, net income attributable to MPLX for the
third quarter of 2014 rose $7.6 million over the third quarter of 2013 due to
increased revenue and a larger ownership interest in MPLX Pipe Line Holdings LP.
Financial Position and Liquidity
As of Sept. 30, MPLX had $32.2 million of cash and cash equivalents and $245
million available on its bank credit facility. The partnership believes this
combination, and its access to public debt and equity markets, should be
sufficient to meet its short-term and long-term funding requirements, including
expanding its growing base of distributable cash flow.
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 "2014 Third-Quarter Financial Results" link in the "News &
Headlines" section. Replays of the conference call will be available on MPLX's
website through Wednesday, Nov. 12. 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 a
butane storage cavern located in West Virginia. For additional information about
the partnership, please see our website at http://www.mplx.com.
Investor Relations Contacts:
Geri Ewing (419) 421-2071
Teresa Homan (419) 421-2965
Media Contacts:
Angelia Graves (419) 421-2703
Jamal Kheiry (419) 421-3312
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 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.
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 the business
and operations of MPLX. You can identify forward-looking statements by words
such as "anticipate," "believe," "estimate," "objective," "expect," "forecast,"
"project," "potential," "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 the
issuer's control and are difficult to predict. Factors that could cause MPLX
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; modifications
to earnings and distribution growth objectives; 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, 2013, filed with the Securities and Exchange Commission (SEC). 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. In
addition, unpredictable or unknown factors not discussed here or in MPLX's Form
10-K could also have material adverse effects on forward-looking statements.
-------------------------------------------------------------------------------
Results of Operations
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In millions, except per unit
data) 2014 2013 2014 2013
----------- ----------- ----------- ----------
Revenues and other income:
Sales and other operating
revenues $ 16.6 $ 20.4 $ 52.2 $ 60.0
Sales to related parties 114.1 97.8 336.0 284.2
Other income 1.5 1.0 4.1 3.1
Other income - related parties 5.8 4.6 16.9 13.4
----------- ----------- ----------- ----------
Total revenues and other
income 138.0 123.8 409.2 360.7
Costs and expenses:
Cost of revenues (excludes
items below) 40.6 33.1 102.9 99.2
Purchases from related parties 23.7 23.8 71.4 69.4
Depreciation 12.5 12.7 37.5 36.3
General and administrative
expenses 15.3 13.0 47.1 40.4
Other taxes 1.7 1.4 5.5 4.9
----------- ----------- ----------- ----------
Total costs and expenses 93.8 84.0 264.4 250.2
----------- ----------- ----------- ----------
Income from operations 44.2 39.8 144.8 110.5
Net interest and other
financial costs 1.1 0.2 3.0 0.7
----------- ----------- ----------- ----------
Income before income taxes 43.1 39.6 141.8 109.8
Provision for income taxes - 0.4 0.1 0.5
----------- ----------- ----------- ----------
Net income 43.1 39.2 141.7 109.3
Less: Net income attributable
to MPC-retained interest 14.0 17.7 49.6 51.6
----------- ----------- ----------- ----------
Net income attributable to MPLX
LP 29.1 21.5 92.1 57.7
Less: General partner's
interest in net income
attributable to MPLX LP 1.5 0.5 3.7 1.2
----------- ----------- ----------- ----------
Limited partners' interest in
net income attributable to MPLX
LP $ 27.6 $ 21.0 $ 88.4 $ 56.5
----------- ----------- ----------- ----------
Per Unit Data
Net income attributable to MPLX
LP per limited partner unit:
Common - basic $ 0.37 $ 0.29 $ 1.16 $ 0.79
Common - diluted 0.37 0.29 1.16 0.79
Subordinated - basic and diluted 0.37 0.29 1.16 0.74
Weighted average limited partner
units outstanding:
Common units - basic 37.1 37.0 37.0 37.0
Common units - diluted 37.1 37.0 37.1 37.0
Subordinated units - basic and
diluted 37.0 37.0 37.0 37.0
-------------------------------------------------------------------------------
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Other Financial Information
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In millions, except per 2014 2013 2014 2013
unit and ratio data)
------------ ------------ ------------ -----------
Quarterly distribution
declared per unit $ 0.3575 $ 0.2975 $ 1.0275 $ 0.8550
Volume deficiency credits
attributable to MPLX LP((a)) $ 7.4 $ 0.1 $ 25.0 $ 0.3
Adjusted EBITDA attributable
to MPLX LP $ 40.2 $ 30.5 $ 123.9 $ 82.3
Distributable cash flow
attributable to MPLX LP $ 33.4 $ 31.0 $ 106.9 $ 85.8
Distribution declared:
Limited partner units -
public $ 7.2 $ 5.9 $ 20.5 $ 17.0
Limited partner units -
MPC 19.2 16.1 55.5 46.2
General partner units -
MPC 0.5 0.5 1.5 1.3
Incentive distribution
rights - MPC 1.0 - 1.9 -
------------ ------------ ------------ -----------
Total distribution
declared $ 27.9 $ 22.5 $ 79.4 $ 64.5
------------ ------------ ------------ -----------
Coverage ratio 1.20x 1.38x 1.35x 1.33x
-------------------------------------------------------------------------------
(a) Current period revenue related to volume deficiency credits generated in
prior periods that are included in adjusted EBITDA but not distributable cash
flow.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA
attributable to MPLX LP and
Distributable Cash Flow
attributable to MPLX LP to Net
Income (unaudited)
Three Months Nine Months Ended
Ended September 30
September 30
(In millions) 2014 2013 2014 2013
---------- ---------- ----------- ----------
Net Income $ 43.1 $ 39.2 $ 141.7 $ 109.3
Less: Net income attributable to
MPC-retained interest 14.0 17.7 49.6 51.6
---------- ---------- ----------- ----------
Net income attributable to MPLX LP 29.1 21.5 92.1 57.7
Plus: Net income attributable to
MPC-retained interest 14.0 17.7 49.6 51.6
Depreciation 12.5 12.7 37.5 36.3
Provision for income taxes - 0.4 0.1 0.5
Non-cash equity-based
compensation 0.5 0.3 1.4 0.8
Net interest and other financial
costs 1.1 0.2 3.0 0.7
---------- ---------- ----------- ----------
Adjusted EBITDA 57.2 52.8 183.7 147.6
Less: Adjusted EBITDA attributable
to MPC-retained interest 17.0 22.3 59.8 65.3
---------- ---------- ----------- ----------
Adjusted EBITDA attributable to
MPLX LP 40.2 30.5 123.9 82.3
Plus: Current period deferred
revenue for committed volume
deficiencies((a)) 7.8 5.1 22.4 12.7
Less: Net interest and other
financial costs((b)) 1.4 0.5 3.5 1.1
Maintenance capital expenditures
paid 5.8 4.0 10.9 7.8
Volume deficiency credits((c)) 7.4 0.1 25.0 0.3
---------- ---------- ----------- ----------
Distributable cash flow
attributable to MPLX LP $ 33.4 $ 31.0 $ 106.9 $ 85.8
---------- ---------- ----------- ----------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA attributable to MPLX
LP and Distributable Cash Flow attributable to MPLX LP
to Net Cash Provided by Operating Activities (unaudited)
Nine Months Ended
September 30
(In millions) 2014 2013
----------- ----------
Net cash provided by operating activities $ 190.3 $ 167.1
Less: Changes in working capital items 12.1 24.0
All other, net - 0.4
Plus: Non-cash equity-based compensation 1.4 0.8
Net interest and other financial costs 3.0 0.7
Current income tax expense 0.1 -
Asset retirement expenditures 1.0 3.4
----------- ----------
Adjusted EBITDA 183.7 147.6
Less: Adjusted EBITDA attributable to MPC-retained
interest 59.8 65.3
----------- ----------
Adjusted EBITDA attributable to MPLX LP 123.9 82.3
Plus: Current period deferred revenue for committed
volume deficiencies((a)) 22.4 12.7
Less: Net interest and other financial costs((b)) 3.5 1.1
Maintenance capital expenditures paid 10.9 7.8
Volume deficiency credits((c)) 25.0 0.3
----------- ----------
Distributable cash flow attributable to MPLX LP $ 106.9 $ 85.8
----------- ----------
-------------------------------------------------------------------------------
(a) Deficiency payments included in distributable cash flow that are not
included in net income or adjusted EBITDA.
(b) Starting in the third quarter of 2014, net interest and other financial
costs is used to calculate distributable cash flow attributable to MPLX LP
instead of cash interest paid, net. All prior periods presented have been
recalculated to reflect a consistent approach. Previously, distributable cash
flow attributable to MPLX LP was $31.1 million in the third quarter of 2013 and
$86.3 million for the first nine months of 2013.
(c) Current period revenue related to volume deficiency credits generated in
prior periods that are included in adjusted EBITDA but not distributable cash
flow.
-------------------------------------------------------------------------------
Selected Operating Data
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2014 2013 2014 2013
----------- ----------- ----------- ----------
Pipeline throughput (thousands
of barrels per day):
Crude oil pipelines 1,048 1,093 1,021 1,081
Product pipelines 839 913 843 930
----------- ----------- ----------- ----------
Total 1,887 2,006 1,864 2,011
Average tariff rates ($ per
barrel):
Crude oil pipelines $ 0.64 $ 0.60 $ 0.66 $ 0.59
Product pipelines 0.63 0.59 0.61 0.56
Total pipelines 0.64 0.59 0.64 0.58
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Selected Financial Data (unaudited)
Three Months Nine Months Ended
Ended September 30
September 30
(In millions) 2014 2013 2014 2013
---------- ---------- ---------- ---------
Capital Expenditures((a)):
Maintenance $ 9.0 $ 7.5 $ 17.4 $ 15.3
Expansion 30.4 31.9 36.6 70.7
---------- ---------- ---------- ---------
Total capital expenditures 39.4 39.4 54.0 86.0
Less: Increase in capital accruals 5.4 (2.6 ) 5.9 1.6
Asset retirement expenditures 0.1 1.8 1.0 3.4
---------- ---------- ---------- ---------
Additions to property, plant and
equipment $ 33.9 $ 40.2 $ 47.1 $ 81.0
---------- ---------- ---------- ---------
-------------------------------------------------------------------------------
(a) Excludes acquisition of an additional interest in MPLX Pipe Line Holdings
LP.
-------------------------------------------------------------------------------
Balance Sheet Data (unaudited)
September
30 June 30
(In millions, except ratio data) 2014 2014
-------------- ------------
Cash and cash equivalents $ 32.2 $ 43.2
Total assets 1,194.3 1,181.4
Long term debt((a)) 265.0 265.2
Total equity 833.3 828.7
Consolidated total debt to consolidated EBITDA
(covenant basis)((b)) 1.7x 1.8x
Partnership units outstanding:
General partner units 1.5 1.5
MPC-held LP units 54.1 54.1
Public LP units 19.9 19.9
-------------------------------------------------------------------------------
(a) Includes amounts due within one year.
(b) Based on last 12 months.
MPLX LP 2014 3Q Earnings:
http://hugin.info/155038/R/1866922/655903.pdf
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GlobeNewswire 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 GlobeNewswire
[HUG#1866922]
Datum: 30.10.2014 - 12:17 Uhr
Sprache: Deutsch
News-ID 348403
Anzahl Zeichen: 29190
contact information:
Town:
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Kategorie:
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