MPLX LP Reports Second-Quarter 2015 Financial Results
(Thomson Reuters ONE) -
* Reported adjusted EBITDA of $70.7 million; distributable cash flow of $61.0
million
* Declared distribution of $0.44 per common unit, a 7.3 percent increase over
first-quarter 2015 and a 28.5 percent increase over second-quarter 2014
* Announced transformative combination with MarkWest Energy Partners, L.P.
* Rating agencies affirmed prospective investment-grade credit ratings for the
proposed combined partnership
FINDLAY, Ohio, July 30, 2015 - MPLX LP (NYSE: MPLX) today reported second-
quarter 2015 net income attributable to MPLX of $51.2 million, or $0.50 per
common limited partner unit, compared with $28.8 million, or $0.37 per common
limited partner unit, for the second quarter of 2014. Second-quarter 2015
adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)
attributable to MPLX were $70.7 million and distributable cash flow attributable
to MPLX was $61.0 million.
As announced on July 21, the board of directors of MPLX's general partner
declared a distribution of $0.44 per common unit. This represents an increase of
$0.03 per unit, or 7.3 percent, over the first-quarter 2015 distribution and an
increase of $0.0975 per unit, or 28.5 percent, over the second-quarter 2014
distribution. Since the partnership's initial public offering in October 2012,
the MPLX board has authorized distribution increases for ten consecutive
quarters, representing a compound annual growth rate of 23 percent over the
minimum quarterly distribution established at the partnership's formation.
"The financial results this quarter were consistent with our expectations," said
MPLX Chairman and Chief Executive Officer Gary R. Heminger. "This strong
performance supported the 7.3 percent increase in our second quarter
distribution to $0.44 per unit."
Heminger said the partnership's plan to grow distributable cash over an extended
period of time will be significantly enhanced by its announced combination with
MarkWest Energy Partners, L.P. "Our strategic combination with MarkWest will
create a best-in-class, large-cap, diversified master limited partnership with
an exceptional growth profile," he said.
"As part of the combination, MPLX affirmed its anticipated distribution growth
guidance of 29 percent in 2015 and expects a 25 percent compound annual limited
partner distribution growth rate for the combined entity through 2017, with an
annual distribution growth profile of approximately 20 percent in 2018 and
2019," said Heminger. He highlighted that the combined partnership also
anticipates incremental growth capital investment opportunities due to the
stronger financial position of the combined entity and support from its
investment-grade sponsor Marathon Petroleum Corporation (NYSE: MPC).
Heminger noted that the combination of MarkWest and MPLX defers the need for the
recently proposed MPLX acquisition of MPC's marine transportation assets in
2015. As a result, that transaction has been indefinitely postponed, and the
approximately $115 million of EBITDA associated with these assets returns to the
$1.6 billion backlog available to the partnership.
Discussion of Results
Revenues increased $13.7 million for the second quarter of 2015 compared to the
second quarter of 2014 due to both higher transported volumes and average tariff
rates. MPC and related parties accounted for 92 percent of MPLX's revenue for
the second quarter of 2015, including revenues attributable to volumes shipped
by MPC under joint tariffs with third parties. Net income attributable to MPLX
for the second quarter rose by $22.4 million over the same period in 2014 due to
the acquisition of additional interests in MPLX Pipe Line Holdings LP and
increased revenue in the quarter.
Financial Position and Liquidity
As of June 30, the partnership has full availability under its $1 billion bank
revolving credit facility, as well as $130.4 million of cash and cash
equivalents. The partnership's liquidity and ready access to the capital markets
should provide the partnership with sufficient flexibility to meet its short-
term and long-term funding requirements, including expanding its growing base of
distributable cash flow through strategic organic growth and acquisitions.
MPLX also noted that all three rating agencies, Fitch, Moody's, and Standard &
Poor's, have affirmed a prospective investment-grade credit rating for the
proposed combined partnership.
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 "2015 Second-Quarter Financial Results" link in the "News &
Headlines" section. Replays of the conference call will be available on MPLX's
website through Wednesday, Aug. 12. Investor-related materials 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 99.5 percent 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 W.Va. with approximately 1 million barrels
of natural gas liquids storage capacity.
Investor Relations Contacts:
Geri Ewing (419) 421-2071
Teresa Homan (419) 421-2965
Media Contacts:
Chuck Rice (419) 421-2521
Brandon Daniels (419) 421-3127
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
federal securities laws regarding MPLX LP ("MPLX") and Marathon Petroleum
Corporation ("MPC"). These forward-looking statements relate to, among other
things, expectations, estimates and projections concerning the business and
operations of MPLX and MPC. You can identify forward-looking statements by words
such as "anticipate," "believe," "estimate," "objective," "expect," "forecast,"
"plan," "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 companies' control and are difficult to predict. Factors
that could cause MPLX's actual results to differ materially from those in the
forward-looking statements include: the ability to complete the proposed merger
of MPLX and MarkWest Energy Partners, L.P. ("MWE") on anticipated terms and
timetable; the ability to obtain approval of the transaction by the unitholders
of MWE and satisfy other conditions to the closing of the transaction
contemplated by the merger agreement; the ability to obtain governmental
approvals of the MPLX/MWE transaction based on the proposed terms and schedule,
and any conditions imposed on the combined company in connection with
consummation of the MPLX/MWE transaction; disruption from the MPLX/MWE
transaction making it more difficult to maintain relationships with customers,
employees or suppliers; risks relating to any unforeseen liabilities of MWE or
MPLX, as applicable; the adequacy of their respective capital resources and
liquidity, including, but not limited to, availability of sufficient cash flow
to pay distributions and execute their respective business plans; 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 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 MPLX's commercial agreements; each
company's ability to successfully implement its growth plan, whether through
organic growth or acquisitions; modifications to earnings and distribution
growth objectives; federal and state environmental, economic, health and safety,
energy and other policies and regulations; changes to MPLX's capital budget;
other risk factors inherent to MPLX or MWE's 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, 2014, filed with the Securities and Exchange Commission
(SEC); and the factors set forth under the heading "Risk Factors" in MWE's
Annual Report on Form 10-K for the year ended Dec. 31, 2014, filed with the SEC.
Factors that could cause MPC's actual results to differ materially from those in
the forward-looking statements include: risks described above relating to the
MPLX/MWE proposed merger; changes to the expected construction costs and timing
of pipeline projects; volatility in and/or degradation of market and industry
conditions; the availability and pricing of crude oil and other feedstocks;
slower growth in domestic and Canadian crude supply; an easing or lifting of the
U.S. crude oil export ban; completion of pipeline capacity to areas outside the
U.S. Midwest; consumer demand for refined products; transportation logistics;
the reliability of processing units and other equipment; MPC's ability to
successfully implement growth opportunities; modifications to MPLX earnings and
distribution growth objectives; federal and state environmental, economic,
health and safety, energy and other policies and regulations; MPC's ability to
successfully integrate the acquired Hess retail operations and achieve the
strategic and other expected objectives relating to the acquisition; changes to
MPC's capital budget; other risk factors inherent to MPC's industry; and the
factors set forth under the heading "Risk Factors" in MPC's Annual Report on
Form 10-K for the year ended Dec. 31, 2014, filed with 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, in MPLX's Form 10-K, in MPC's Form 10-K, or in MWE'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. Copies of
MPC's Form 10-K are available on the SEC website, MPC's website at
http://ir.marathonpetroleum.com or by contacting MPC's Investor Relations
Office. Copies of MWE's Form 10-K are available on the SEC website, MWE's
website at http://investor.markwest.com or by contacting MWE's Investor
Relations office.
Additional Information
This communication may be deemed to be solicitation material in respect of the
proposed transaction. In connection with the proposed transaction, a
registration statement on Form S-4 will be filed with the SEC and will include a
proxy statement of MWE. INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ
THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
INCLUDING THE PROXY STATEMENT/PROSPECTUS THAT WILL BE PART OF THE REGISTRATION
STATEMENT, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED MERGER. The final proxy statement/prospectus will
be mailed to unitholders of MWE. Investors and security holders will be able to
obtain the documents free of charge at the SEC's website, http://www.sec.gov,
from MPLX LP at its website, http://ir.mplx.com, or 200 E. Hardin Street,
Findlay, Ohio 45840, Attention: Corporate Secretary, or from MWE at its website,
http://investor.markwest.com, or 1515 Arapahoe Street, Tower 1, Suite 1600,
Denver, CO 80202, Attention: Corporate Secretary.
Participants in Solicitation
MPLX and MWE and their respective directors and executive officers may be deemed
to be participants in the solicitation of proxies in respect of the proposed
merger. Information concerning MPLX participants is set forth in MPLX's Form 10-
K for the year ended Dec. 31, 2014, as filed with the SEC on Feb. 27, 2015, and
MPLX's current report on Form 8-K, as filed with the SEC on March 9, 2015.
Information concerning MWE's participants is set forth in the proxy statement,
dated April 23, 2015, for MWE's 2015 Annual Meeting of Common Unitholders as
filed with the SEC on Schedule 14A and MWE's current reports on Form 8-K, as
filed with the SEC on May 5, 2015, May 19, 2015 and June 8, 2015. Additional
information regarding the interests of participants of MPLX and MWE in the
solicitation of proxies in respect of the proposed merger will be included in
the registration statement and proxy statement/prospectus and other relevant
materials to be filed with the SEC when they become available. These documents,
when available, may be obtained free of charge from MPLX or MWE using the
contact information above.
Non-Solicitation
This communication shall not constitute an offer to sell or the solicitation of
an offer to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. No offer of securities shall
be made except by means of a prospectus meeting the requirements of Section 10
of the Securities Act of 1933, as amended.
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Results of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per unit
data) 2015 2014 2015 2014
----------- ----------- ----------- ----------
Revenues and other income:
Sales and other operating
revenues $ 16.4 $ 18.7 $ 32.0 $ 35.6
Sales to related parties 123.6 108.1 238.0 221.9
Loss on sale of assets (0.2 ) - (0.2 ) -
Other income 1.4 1.1 2.8 2.6
Other income - related parties 6.4 6.0 12.5 11.1
----------- ----------- ----------- ----------
Total revenues and other
income 147.6 133.9 285.1 271.2
Costs and expenses:
Cost of revenues (excludes
items below) 31.7 35.7 59.5 62.3
Purchases from related parties 24.7 23.7 48.6 47.7
Depreciation 12.7 12.4 25.4 25.0
General and administrative
expenses 17.9 15.9 36.6 31.8
Other taxes 3.0 1.9 6.2 3.8
----------- ----------- ----------- ----------
Total costs and expenses 90.0 89.6 176.3 170.6
----------- ----------- ----------- ----------
Income from operations 57.6 44.3 108.8 100.6
Net interest and other
financial costs 6.2 1.3 11.5 1.9
----------- ----------- ----------- ----------
Income before income taxes 51.4 43.0 97.3 98.7
Provision for income taxes - 0.1 - 0.1
----------- ----------- ----------- ----------
Net income 51.4 42.9 97.3 98.6
Less: Net income attributable
to MPC-retained interest 0.2 14.1 0.5 35.6
----------- ----------- ----------- ----------
Net income attributable to MPLX
LP 51.2 28.8 96.8 63.0
Less: General partner's
interest in net income
attributable to MPLX LP 6.8 1.2 10.8 2.2
----------- ----------- ----------- ----------
Limited partners' interest in
net income attributable to MPLX
LP $ 44.4 $ 27.6 $ 86.0 $ 60.8
----------- ----------- ----------- ----------
Per Unit Data
Net income attributable to MPLX
LP per limited partner unit:
Common - basic $ 0.50 $ 0.37 $ 0.96 $ 0.79
Common - diluted 0.50 0.37 0.96 0.79
Subordinated - basic and diluted 0.50 0.37 0.96 0.79
Weighted average limited partner
units outstanding:
Common units - basic 43.4 37.0 43.4 37.0
Common units - diluted 43.4 37.1 43.4 37.1
Subordinated units - basic and
diluted 37.0 37.0 37.0 37.0
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Other Financial Information
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per 2015 2014 2015 2014
unit and ratio data)
------------ ------------ ------------ -----------
Quarterly distribution
declared per unit $ 0.4400 $ 0.3425 $ 0.8500 $ 0.6700
Volume deficiency credits
attributable to MPLX LP((a)) $ 9.2 $ 6.1 $ 19.1 $ 17.6
Adjusted EBITDA attributable
to MPLX LP $ 70.7 $ 39.9 $ 134.9 $ 83.7
Distributable cash flow
attributable to MPLX LP $ 61.0 $ 36.2 $ 118.4 $ 73.5
Distribution declared:
Limited partner units -
public $ 10.3 $ 6.8 $ 19.9 $ 13.3
Limited partner units -
MPC 25.0 18.6 48.4 36.3
General partner units -
MPC 0.8 0.5 1.5 1.0
Incentive distribution
rights - MPC 5.5 0.6 8.7 0.9
------------ ------------ ------------ -----------
Total distribution
declared $ 41.6 $ 26.5 $ 78.5 $ 51.5
------------ ------------ ------------ -----------
Coverage ratio 1.47x 1.37x 1.51x 1.43x
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(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 Six Months Ended
Ended June 30
June 30
(In millions) 2015 2014 2015 2014
---------- ---------- ----------- ----------
Net Income $ 51.4 $ 42.9 $ 97.3 $ 98.6
Less: Net income attributable to
MPC-retained interest 0.2 14.1 0.5 35.6
---------- ---------- ----------- ----------
Net income attributable to MPLX LP 51.2 28.8 96.8 63.0
Plus: Net income attributable to
MPC-retained interest 0.2 14.1 0.5 35.6
Depreciation 12.7 12.4 25.4 25.0
Provision for income taxes - 0.1 - 0.1
Non-cash equity-based
compensation 0.8 0.5 1.4 0.9
Net interest and other financial
costs 6.2 1.3 11.5 1.9
---------- ---------- ----------- ----------
Adjusted EBITDA 71.1 57.2 135.6 126.5
Less: Adjusted EBITDA attributable
to MPC-retained
interest 0.4 17.3 0.7 42.8
---------- ---------- ----------- ----------
Adjusted EBITDA attributable to
MPLX LP 70.7 39.9 134.9 83.7
Plus: Current period deferred
revenue for committed
volume deficiencies((a)) 9.2 6.9 21.8 14.6
Less: Net interest and other
financial costs 6.2 1.3 11.5 2.1
Maintenance capital expenditures
paid 3.5 3.2 7.7 5.1
Volume deficiency credits((b)) 9.2 6.1 19.1 17.6
---------- ---------- ----------- ----------
Distributable cash flow
attributable to MPLX LP $ 61.0 $ 36.2 $ 118.4 $ 73.5
---------- ---------- ----------- ----------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
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) 2015 2014
----------- ----------
Net cash provided by operating activities $ 127.9 $ 128.4
Less: Changes in working capital items 4.2 7.5
All other, net 1.1 (1.8 )
Plus: Non-cash equity-based compensation 1.4 0.9
Net loss on disposal of assets (0.2 ) -
Net interest and other financial costs 11.5 1.9
Current income taxes expense - 0.1
Asset retirement expenditures 0.3 0.9
----------- ----------
Adjusted EBITDA 135.6 126.5
Less: Adjusted EBITDA attributable to MPC-retained
interest 0.7 42.8
----------- ----------
Adjusted EBITDA attributable to MPLX LP 134.9 83.7
Plus: Current period deferred revenue for committed
volume deficiencies((a)) 21.8 14.6
Less: Net interest and other financial costs 11.5 2.1
Maintenance capital expenditures paid 7.7 5.1
Volume deficiency credits((b)) 19.1 17.6
----------- ----------
Distributable cash flow attributable to MPLX LP $ 118.4 $ 73.5
----------- ----------
-------------------------------------------------------------------------------
(a) Deficiency payments included in distributable cash flow that are not
included in net income or adjusted EBITDA.
(b) Current period revenue related to volume deficiency credits generated in
prior periods that are included in adjusted EBITDA but not distributable cash
flow.
-------------------------------------------------------------------------------
Select Operating Data
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2015 2014 2015 2014
----------- ----------- ----------- ----------
Pipeline throughput (thousands
of barrels per day):
Crude oil pipelines 1,123 1,044 1,068 1,027
Product pipelines 941 871 913 845
----------- ----------- ----------- ----------
Total 2,064 1,915 1,981 1,872
Average tariff rates ($ per
barrel):
Crude oil pipelines $ 0.66 $ 0.66 $ 0.67 $ 0.66
Product pipelines 0.64 0.59 0.63 0.60
Total pipelines 0.65 0.63 0.65 0.63
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Select Financial Data (unaudited)
Three Months Six Months Ended
Ended June 30
June 30
(In millions) 2015 2014 2015 2014
---------- --------- ---------- ---------
Capital Expenditures((a)):
Maintenance $ 5.0 $ 6.0 $ 7.5 $ 8.4
Expansion 36.8 3.2 69.1 6.2
---------- --------- ---------- ---------
Total capital expenditures 41.8 9.2 76.6 14.6
Less: Increase (decrease) in
capital accruals 7.8 0.4 12.8 0.5
Asset retirement
expenditures 0.2 0.7 0.3 0.9
---------- --------- ---------- ---------
Additions to property, plant and
equipment $ 33.8 $ 8.1 $ 63.5 $ 13.2
---------- --------- ---------- ---------
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(a) Excludes acquisitions of additional interests in MPLX Pipe Line Holdings
LP.
-------------------------------------------------------------------------------
Select Balance Sheet Data (unaudited)
June 30 March 31
(In millions, except ratio data) 2015 2015
------------- ------------
Cash and cash equivalents $ 130.4 $ 132.5
Total assets 1,382.6 1,349.5
Long term debt((a)) 753.4 753.3
Total equity 492.4 476.0
Consolidated total debt to consolidated EBITDA
(covenant basis) 3.1x 3.3x
Partnership units outstanding:
General partner units 1.6 1.6
MPC-held limited partner units 57.0 57.0
Public limited partner units 23.4 23.4
-------------------------------------------------------------------------------
(a) Includes amounts due within one year. We adopted the updated Financial
Accounting Standards Board debt issuance cost standard as of June 30, 2015, and
applied the changes retrospectively to the prior period presented. We
reclassified unamortized debt issuance costs related to term debt of $4.3
million and $4.5 million as of June 30 and March 31, 2015, respectively, from
other noncurrent assets to long-term debt.
MPLX Financial Results :
http://hugin.info/155038/R/1942254/702522.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#1942254]
Datum: 30.07.2015 - 13:18 Uhr
Sprache: Deutsch
News-ID 410438
Anzahl Zeichen: 34506
contact information:
Town:
FINDLAY
Kategorie:
Business News
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