MPLX LP Reports Fourth-Quarter and Full-Year 2015 Financial Results
(Thomson Reuters ONE) -
* Completed strategic combination with MarkWest on Dec. 4
* Reported fourth-quarter 2015 adjusted EBITDA of $286 million and
distributable cash flow of $227 million
* Delivered 29.1 percent distribution growth in 2015 with a 1.27 coverage
ratio
* MPC offered to contribute its inland marine business to the partnership in
exchange for MPLX equity
* Commenced operation of three major facilities in the Marcellus shale
FINDLAY, Ohio, Feb. 3, 2016 - MPLX LP (NYSE: MPLX) today reported fourth-quarter
and full-year 2015 financial results. Effective Dec. 4, 2015, MPLX and MarkWest
Energy Partners (MarkWest) completed the previously announced merger by which
MarkWest became a wholly-owned subsidiary of MPLX and together formed one of the
largest master limited partnerships (MLPs) in the U.S. The financial and
operational results of MarkWest are included in MPLX's results from the date of
the merger, unless otherwise noted.
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Three Months Ended Year Ended
December 31 December 31
(In millions, except per
unit) 2015 2014 2015 2014
------------ ------------ ------------ -----------
Net income attributable to
MPLX((a)) $ 18 $ 29 $ 156 $ 121
Adjusted EBITDA attributable
to MPLX((b)) 286 42 486 166
Distributable cash flow
attributable to MPLX((b)) 227 32 399 137
Distribution per unit 0.5000 0.3825 1.8200 1.4100
Growth capital
expenditures((a)(c)(d)) 145 21 249 51
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(a) Reflects the results of MarkWest from the date of the merger, Dec.
4, 2015.
(b) Non-GAAP measure including MarkWest from Oct. 1, 2015. See reconciliation
below.
(c) Excludes non-affiliated joint-venture (JV) members' share of capital
expenditures.
(d) See reconciliation below.
"MPLX's successful combination with MarkWest creates a diversified, large-cap
MLP with compelling long-term growth opportunities," said Gary R. Heminger, MPLX
chairman and chief executive officer. "The combination expands our asset base
and positions us to continue supporting natural gas liquids development in North
America, which provides significant future earnings potential. Our commitment to
a strong balance sheet, fee-based cash flows, and supportive sponsor position us
for sustainable growth."
Heminger noted that, in addition to this substantial diversification, MarkWest
also adds scale to the partnership. "MarkWest has long-term relationships with
many producers who operate in the most economic shale plays in the country. The
MarkWest leadership team has a demonstrated record of successfully executing
midstream organic capital programs to meet producers' needs," Heminger said.
"Together with MPLX's existing crude oil and refined products logistics and
storage network, we have the ability to pursue projects along the entire
hydrocarbon value chain. These opportunities, combined with prospective drop-
downs from our sponsor Marathon Petroleum Corporation [NYSE: MPC], are expected
to contribute to the partnership's long-term growth profile."
Heminger highlighted the partnership's strategic advantages in its newly-
acquired, full-service midstream assets, saying, "MarkWest has the right assets
in the right locations. Even in the current market conditions, we continue to
see increased volumes in the Marcellus and Utica shales. We believe the
partnership is well-positioned to execute its future growth strategy."
During the fourth quarter of 2015, Heminger indicated that in light of the
higher MLP yield environment, drop-down transactions could be expected as early
as 2016. Consistent with this guidance, MPC recently offered to contribute its
inland marine business to MPLX, with funding anticipated to consist entirely of
MPLX equity issued to MPC. The transaction is expected to close in the second
quarter, pending requisite approvals. Heminger noted that an all-unit
transaction and a supportive valuation demonstrate MPC's support and provide
MPLX a more attractive alternative than accessing the public capital markets. He
stressed that MPLX remains committed to maintaining an investment-grade credit
profile, which is supported by the anticipated issuance of equity to MPC. MPLX
is targeting a leverage ratio of approximately 4.0 times by the end of the year.
"The inland marine business has high-quality assets and is strategically located
in key markets. Essentially all of its operations support the movement of crude
oil and refined products for MPC," said Heminger. "The cash flows generated from
the marine business will further diversify the partnership's earnings stream."
Heminger emphasized the fee-for-capacity arrangement associated with these
assets and the highly predictable earnings they are expected to generate for the
partnership.
As announced on Jan. 25, the board of directors of MPLX's general partner
declared a distribution of $0.50 per common unit, resulting in a 1.20 times
distribution coverage ratio for the fourth quarter. Since the partnership's
initial public offering in October 2012, the MPLX board has authorized
distribution increases for 12 consecutive quarters, representing a compound
annual growth rate of 24 percent over its minimum quarterly distribution. The
partnership achieved its forecasted increase to distributions of 29 percent in
2015.
"The continued decline in commodity prices, and the market's increasing belief
that these conditions will persist for some period of time, has resulted in a
challenging valuation and a higher yield environment within the MLP space," said
Heminger, also noting that many MLPs have taken steps to address the
deteriorating market conditions with significant reductions to either
distributions or distribution growth rates. "Given current market conditions,
more modest growth in volumes of natural gas and natural gas liquids, the
increase in our yield and the impacts to our valuation, we are now forecasting
distribution growth of 12 to 15 percent for 2016, which is among the highest for
large-cap, diversified MLPs." He said this guidance considers the continuing
supportive measures expected from MPC, which include those in connection with
the anticipated marine transaction, the expected placement of additional equity
with MPC, incubating projects for future acquisition by MPLX, and the ability to
borrow from MPC via an inter-company loan agreement. As MPC continues to
evaluate the support options available, it is expected to consider the capital
allocation needs of both companies.
"We will assess the distribution growth rate for 2017 later this year and
provide guidance around the partnership's growth expectations at that time,"
Heminger said. "We are continuing to build our financial strength and preserve
capital to achieve sustainable long-term growth." He reiterated that continuing
support anticipated from its sponsor and maintaining an investment-grade credit
profile should allow the partnership to manage the near-term challenges and
provide long-term growth. "As we continue to optimize our growth capital
investments to support our producer customers and diversify our asset base
through acquisitions and drop-downs from our sponsor, we look forward to
increasing our steady earnings streams and capitalizing on the opportunities
available to us."
Operational Highlights
* Commenced operation of one processing plant and two fractionation facilities
in the Marcellus shale, increasing the partnership's total processing
capacity by 200 million cubic feet per day and fractionation capacity by
73,000 barrels per day
* Completed 1.24 million barrel expansion at the Patoka tank farm to support
the startup of the Southern Access Extension pipeline, which commenced
operations in December 2015
* 10 major processing and fractionation projects currently under construction
on a just-in-time basis; five expected to be completed in 2016 to meet
forecasted growth in producer volumes
Segment Results
MPLX has two reportable segments: Logistics and Storage, and Gathering and
Processing. Each of these segments is organized and managed based upon the
nature of the products and services it offers. Segment results represent income
from operations attributable to the reportable segments, including partially-
owned entities operated by the partnership that are accounted for as equity
method investments. Segment results are also adjusted to exclude the portion of
income from operations attributable to the noncontrolling interests related to
partially-owned entities that are either consolidated or recorded based upon the
equity method investment.
* Logistics and Storage - transports and stores crude oil, refined products
and other hydrocarbon-based products. This segment generally corresponds to
the MPLX business prior to the MarkWest acquisition.
* Gathering and Processing - gathers, processes and transports natural gas;
gathers, transports, fractionates, stores and markets natural gas liquids
(NGLs). This segment generally corresponds to the MarkWest business, which
was acquired on Dec. 4, 2015.
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Three Months
Ended Year Ended
December 31 December 31
(In millions) 2015 2014 2015 2014
--------- -------- --------- --------
Logistics and Storage $ 71 $ 57 $ 322 $ 213
Gathering and Processing 76 - 76 -
--------- -------- --------- --------
Segment operating income attributable to
MPLX LP((a)) $ 147 $ 57 $ 398 $ 213
--------- -------- --------- --------
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((a)) See reconciliation below for details.
Logistics and Storage segment operating income for the fourth quarter of 2015
was $71 million, compared with $57 million over the same period in 2014. For the
full-year 2015, Logistics and Storage segment operating income was $322 million,
compared with $213 million for the full-year 2014. The increase in the fourth
quarter and full year was primarily due to the acquisition of the remaining
interest in MPLX Pipe Line Holdings LP and higher average tariff rates. The
fourth quarter increase was partially offset by a reduction in transported
volumes and the full year increase was partially offset by a reduction in the
amount of deferred revenue recognized from volume deficiency credits.
Gathering and Processing segment operating income increased for the three and
twelve months ended Dec. 31, 2015, compared to the same periods in 2014. This
increase is due to the acquisition of MarkWest.
Corporate general and administrative expenses, unrealized derivative gains and
depreciation and amortization are not allocated to the reportable segments. MPLX
management does not consider these items allocable to or controllable by any
individual segment, and therefore, excludes these items when evaluating segment
performance.
Financial Position and Liquidity
In connection with the combination, we assumed an aggregate principal amount of
$4.1 billion in senior notes issued by MarkWest and MarkWest Energy Finance
Corporation. On Dec. 22, 2015, we completed offers to exchange any and all
outstanding MarkWest senior notes for up to $4.1 billion aggregate principal
amount of new notes issued by MPLX having the same maturity and interest rates
as the MarkWest senior notes. The exchange was completed for 98.4 percent, or
$4.0 billion, of MarkWest senior notes.
On Dec. 4, 2015, our existing credit agreement was amended to, among other
things, increase the aggregate amount of our bank revolving credit capacity from
$1.0 billion to $2.0 billion.
On Dec. 4, 2015, MPLX entered into a loan agreement with MPC Investment LLC, a
wholly-owned subsidiary of MPC, providing for a $500 million revolving credit
facility which is scheduled to mature on Dec. 4, 2020. As of Dec. 31, 2015,
there was $8 million in borrowings outstanding under this facility.
As of Dec. 31, 2015, MPLX had $43 million in cash. In addition, MPLX had $1.12
billion of remaining capacity under its $2 billion bank revolving credit
facility, as well as $492 million available under the facility with MPC. MPLX
reported a leverage ratio of 4.7 times on a covenant basis. MPLX remains
committed to maintaining an investment grade credit profile and is targeting a
leverage ratio of 4.0 times by the end of 2016.
2016 Forecast
For 2016, MPLX forecasts net income in a range of $325 million to $485 million,
adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)
in a range of $1.25 billion to $1.40 billion and distributable cash flow (DCF)
in a range of $970 million to $1.10 billion based on its current forecast of
operational volumes, commodity prices, and derivative instruments currently
outstanding. A $0.05 per gallon change in NGL prices is forecasted to result in
an approximate $18 million change to DCF.
MPLX is forecasting distribution growth of 12 to 15 percent for 2016.
MPLX's portion of growth capital expenditures for 2016 is forecasted in a range
of $1.0 billion to $1.5 billion. Maintenance capital for 2016 is forecasted at
approximately $61 million.
Conference Call
At 2 p.m. EST today, MPLX will hold a conference call and webcast to discuss the
reported results and provide an update on operations. Interested parties may
listen to the conference call by dialing 1-800-447-0521 (confirmation #41539371)
or by visiting MPLX's website at http://www.mplx.com and clicking on the "2015
Fourth-Quarter Financial Results" link in the "News & Headlines" section.
Replays of the conference call will be available on MPLX's website through
Wednesday, Feb. 17. Investor-related material will also be available online
prior to the conference call and webcast at http://ir.mplx.com.
###
About MPLX LP
MPLX is a diversified, growth-oriented master limited partnership formed in
2012 by Marathon Petroleum Corporation to own, operate, develop and acquire
midstream energy infrastructure assets. We are engaged in the gathering,
processing and transportation of natural gas; the gathering, transportation,
fractionation, storage and marketing of NGLs; and the transportation and storage
of crude oil and refined petroleum products. Headquartered in Findlay, Ohio,
MPLX's assets consist of a network of common carrier crude oil and products
pipeline assets located in the Midwest and Gulf Coast regions of the United
States, a butane storage cavern located in West Virginia with approximately 1
million barrels of natural gas liquids storage capacity, crude oil and product
storage facilities (tank farms) with approximately 4.5 million barrels of
available storage capacity, a barge dock facility with approximately 78,000
barrels per day of crude oil and product throughput capacity and gathering and
processing assets which includes more than 5,000 miles of gas gathering and NGL
pipelines, over 50 gas processing plants, more than 10 NGL fractionation
facilities and one condensate stabilization facility.
Investor Relations Contacts:
Lisa Wilson (419) 421-2071
Kevin Hawkins (866) 858-0482
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 press release and supporting schedules include the non-GAAP
measures adjusted EBITDA and distributable cash flow (DCF). DCF and adjusted
EBITDA should not be considered separately from or as a substitute for net
income, income from operations, or cash flow as reflected in our financial
statements. The GAAP measure most directly comparable to adjusted EBITDA and DCF
is net income and net cash provided by operating activities. We define adjusted
EBITDA as net income adjusted for (i) depreciation and amortization; (ii)
provision for income taxes; (iii) non-cash equity-based compensation; (iv) net
interest and other financial costs; (v) equity investment income; (vi) equity
method distributions; and (vii) acquisition costs. In general, we define DCF as
adjusted EBITDA plus (i) the current period cash received/deferred revenue for
committed volume deficiencies less (ii) net interest and other financial costs;
(iii) unrealized gain on commodity hedges; (iv) equity investment capital
expenditures paid out; (v) equity investment cash contributions; (vi)
maintenance capital expenditures paid; (vii) volume deficiency credits
recognized; and (viii) other non-cash items.
Adjusted EBITDA is a financial performance measure used by management, industry
analysts, investors, lenders, and rating agencies to assess the financial
performance and operating results of our ongoing business operations.
Additionally, we believe adjusted EBITDA provides useful information to
investors for trending, analyzing and benchmarking our operating results from
period to period as compared to other companies that may have different
financing and capital structures.
DCF is a financial performance measure used by management as a key component in
the determination of cash distributions paid to unitholders. We believe DCF is
an important financial measure for unitholders as an indicator of cash return on
investment and to evaluate whether the partnership is generating sufficient cash
flow to support quarterly distributions. In addition, DCF is commonly used by
the investment community because the market value of publicly traded
partnerships is based, in part, on DCF and cash distributions paid to
unitholders.
This press release contains forward-looking statements within the meaning of
federal securities laws regarding MPLX LP ("MPLX"), Marathon Petroleum
Corporation ("MPC"), and MarkWest Energy Partners, L.P. ("MarkWest"). These
forward-looking statements relate to, among other things, expectations,
estimates and projections concerning the business and operations of MPLX, MPC,
and MarkWest. You can identify forward-looking statements by words such as
"anticipate," "believe," "estimate," "expect," "forecast", "goal," "guidance,"
"imply," "objective," "opportunity," "outlook," "plan," "project,"
"prospective," "position," "potential," "pursue," "seek," "target," "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. In addition to other factors described herein that could cause
MPLX's actual results to differ materially from those implied in these forward-
looking statements, negative capital market conditions, including a persistence
or increase of the current yield on common units, which is higher than
historical yields, could adversely affect MPLX's ability to meet its
distribution growth guidance. Factors that could cause MPLX's or MarkWest's
actual results to differ materially from those implied in the forward-looking
statements include: risk that the synergies from the MPLX/MarkWest merger
transaction may not be fully realized or may take longer to realize than
expected; disruption from the MPLX/MarkWest merger transaction making it more
difficult to maintain relationships with customers, employees or suppliers;
risks relating to any unforeseen liabilities of MarkWest; the adequacy of MPLX's
capital resources and liquidity, including, but not limited to, availability of
sufficient cash flow to pay MPLX's distributions, and the ability to
successfully execute both companies' business plans and growth strategies; 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 midstream
infrastructure 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; modifications to earnings and distribution growth objectives; the
level of support from MPC, including dropdowns, alternative financing
arrangements, taking equity units, and other methods of sponsor support, as a
result of the capital allocation needs of the enterprise as a whole and its
ability to provide support on commercially reasonable terms; 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 MarkWest'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 SEC; and the factors set forth under the heading "Risk Factors"
in MarkWest's Annual Report on Form 10-K for the year ended Dec. 31, 2014, and
Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2015, filed with
the SEC (former ticker symbol: MWE). These risks, as well as other risks
associated with MPLX, MarkWest and the merger transaction, are also more fully
discussed in the joint proxy statement and prospectus included in the
registration statement on Form S-4 filed by MPLX and declared effective by the
SEC on Oct. 29, 2015, as supplemented. Factors that could cause MPC's actual
results to differ materially from those implied in the forward-looking
statements include: risks described above relating to MPLX, MarkWest and the
MPLX/MarkWest merger transaction; changes to the expected construction costs and
timing of pipeline projects; continued/further 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; the
effects of the 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; including the cost of compliance with the Renewable Fuel Standard;
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 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, in
MPLX's Form 10-K, in MPC's Form 10-K, or in MarkWest's Form 10-K and Form 10-Qs
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 MarkWest's Form 10-K and Form 10-Qs are available on the SEC
website (former ticker symbol: MWE), MarkWest's website at
http://investor.markwest.com or by contacting MPLX's Investor Relations office.
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Results of Operations (unaudited)
Three Months Ended Year Ended
December 31 December 31
(In millions, except per unit data) 2015 2014 2015 2014
----------- ---------- ---------- ---------
Revenues and other income:
Service revenue $ 100 $ 17 $ 150 $ 69
Service revenue to related parties 120 115 481 451
Product sales 36 - 36 -
Product sales to related parties 1 - 1 -
Other income 4 1 8 5
Other income - related parties 8 6 27 23
----------- ---------- ---------- ---------
Total revenues and other income 269 139 703 548
Costs and expenses:
Cost of revenues (excludes items
below) 71 42 172 145
Purchased product costs 20 - 20 -
Purchases from related parties 27 26 102 98
Depreciation and amortization 51 12 89 50
General and administrative expenses 46 18 104 65
Other taxes 4 2 10 7
----------- ---------- ---------- ---------
Total costs and expenses 219 100 497 365
----------- ---------- ---------- ---------
Income from operations 50 39 206 183
Interest expense, net of amounts
capitalized 20 2 35 4
Other financial costs 10 - 12 1
----------- ---------- ---------- ---------
Income before income taxes 20 37 159 178
Provision for income taxes 2 - 2 -
----------- ---------- ---------- ---------
Net income 18 37 157 178
Less: Net income attributable to
noncontrolling interests - 8 1 57
----------- ---------- ---------- ---------
Net income attributable to MPLX LP 18 29 156 121
Less: General partner's interest in
net income attributable to MPLX LP 38 2 57 6
----------- ---------- ---------- ---------
Limited partners' interest in net
(loss) income attributable to MPLX
LP $ (20 ) $ 27 $ 99 $ 115
----------- ---------- ---------- ---------
Per Unit Data
Net (loss) income attributable to
MPLX LP per limited partner unit:
Common - basic $ (0.14 ) $ 0.38 $ 1.23 $ 1.55
Common - diluted (0.14 ) 0.38 1.22 1.55
Subordinated - basic and diluted - 0.33 0.11 1.50
Weighted average limited partner
units outstanding:
Common units - basic 146 39 79 37
Common units - diluted 146 39 80 37
Subordinated units - basic and
diluted - 37 18 37
---------
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Select Financial Statistics
(unaudited)
Three Months Ended Year Ended
December 31 December 31
(In millions, except ratio data) 2015 2014 2015 2014
------------ --------- ------------ ---------
Distribution declared
Limited partner units - public $ 120 $ 9 $ 151 $ 29
Limited partner units - MPC 29 21 104 77
General partner units - MPC 3 1 6 2
Incentive distribution rights -
MPC 37 2 54 4
------------ --------- ------------ ---------
Total distribution declared $ 189 $ 33 $ 315 $ 112
------------ --------- ------------ ---------
Coverage ratio 1.20x 0.97x 1.27x 1.23x
Cash Flow Data
Net cash flow provided by (used
in):
Operating activities $ 54 $ 57 $ 239 $ 247
Investing activities $ (1,379 ) $ (32 ) $ (1,498 ) $ (75 )
Financing activities $ 1,278 $ (30 ) $ 1,275 $ (199 )
Other Financial Data
Adjusted EBITDA attributable to
MPLX LP((a)) $ 286 $ 42 $ 486 $ 166
Distributable cash flow
attributable to MPLX LP((a)) $ 227 $ 32 $ 399 $ 137
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(a) Non-GAAP measure. See reconciliation below.
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Select Balance Sheet Data (unaudited)
December September
31 30
(In millions, except ratio data) 2015 2015
------------- -------------
Cash and cash equivalents $ 43 $ 90
Total assets 15,662 1,391
Long term debt 5,255 753
Total equity 9,256 493
Consolidated total debt to consolidated EBITDA
(covenant basis) 4.7x 3.1x
Partnership units outstanding:
General partner units 7 2
Class B units((a)) 8 -
MPC-held LP units 57 57
Public LP units 240 23
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(a) Class B units were issued to and are held by M&R MWE Liberty LLC and
certain of its affiliates, an affiliate of The Energy & Minerals Group. The
Class B units will convert into common units at a rate of 1.09 common units and
will receive $6.20 in cash for each Class B unit in two equal installments on
July 1, 2016, and July 1, 2017. Class B units do not receive distributions.
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Operating
Statistics
(unaudited)
Three Months Ended Year Ended
December 31 December 31
% %
2015 2014 Change 2015 2014 Change
----------- ----------- -------- ----------- ----------- -------
Logistics and
Storage
Pipeline
throughput
(mbpd):
Crude oil
pipelines 972 1,065 (9 )% 1,061 1,041 2 %
Product
pipelines 934 979 (5 )% 914 878 4 %
----------- ----------- -------- ----------- ----------- -------
Total 1,906 2,044 (7 )% 1,975 1,919 3 %
Average tariff
rates ($ per
barrel):
Crude oil
pipelines $ 0.65 $ 0.62 5 % $ 0.66 $ 0.64 3 %
Product
pipelines 0.68 0.61 11 % 0.65 0.61 7 %
Total
pipelines 0.66 0.61 8 % 0.65 0.63 3 %
Gathering and
Processing
((a))
Gathering
throughput
(mmcf/d)
Marcellus
operations 889 889
Utica
operations 745 745
Southwest
operations 1,441 1,441
----------- -----------
Total
gathering
throughput 3,075 3,075
Natural gas
processed
(mmcf/d)
Marcellus
operations 2,964 2,964
Utica
operations 1,136 1,136
Southwest
operations 1,125 1,125
Southern
Appalachian
operations 243 243
----------- -----------
Total natural
gas processed 5,468 5,468
C2 + NGLs
fractionated
(mbpd)
Marcellus
operations 220 220
Utica
operations 51 51
Southwest
operations 24 24
Southern
Appalachian
operations 12 12
----------- -----------
Total C2 +
NGLs
fractionated 307 307
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(a) The three months and year ended Dec. 31, 2015, Gathering and Processing
segment operating statistics are for the period of Dec. 4, 2015, through Dec.
31, 2015. The Gathering and Processing segment volumes reported are the average
daily rate for the days of operation.
The table below presents pro forma operating statistics, as evaluated by
management, for the reported Gathering and Processing segment for the years
ended Dec. 31, 2015, and 2014. We believe this pro forma full-year data provides
a more meaningful discussion of trends. The pro forma operating information
below might not necessarily be indicative of future results. In addition, all
partnership-operated, non-wholly-owned subsidiaries are included in the
statistics below.
----------------------------------------------------------------------------
Pro Forma Operating Statistics (unaudited)
Year Ended
December 31
%
2015 2014 Change
----------- ----------- -------
Gathering and Processing((a))
Gathering Throughput (mmcf/d)
Marcellus operations 858 668 28 %
Utica operations 673 289 133 %
Southwest operations 1,413 1,336 6 %
----------- ---------
Total gathering throughput 2,944 2,293 28 %
Natural Gas Processed (mmcf/d)
Marcellus operations 2,861 2,064 39 %
Utica operations 883 416 112 %
Southwest operations 1,077 991 9 %
Southern Appalachian operations 267 280 (5 )%
----------- ---------
Total natural gas processed 5,088 3,751 36 %
C2 + NGLs Fractionated (mbpd)
Marcellus operations 194 147 32 %
Utica operations 40 19 111 %
Southwest operations 18 21 (14 )%
Southern Appalachian operations 15 19 (21 )%
----------- ---------
Total C2 + NGLs fractionated 267 206 30 %
----------------------------------------------------------------------------
(a) The Gathering and Processing segment volumes reported are the average daily
rate for the days of operation.
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Reconciliation of Segment Operating
Income Attributable to MPLX LP to
Income From Operations (unaudited)
Three Months Year Ended
Ended December 31
December 31
(In millions) 2015 2014 2015 2014
--------- --------- ---------- --------
Segment operating income attributable
to MPLX LP $ 147 $ 57 $ 398 $ 213
Segment portion attributable to
unconsolidated affiliates (21 ) - (21 ) -
Segment portion attributable to NCI 12 12 13 85
Income from equity method investments 3 - 3 -
Other income - related parties from
unconsolidated affiliates 2 - 2 -
Unrealized derivative gains 4 - 4 -
Depreciation and amortization (51 ) (12 ) (89 ) (50 )
General and administrative expenses (46 ) (18 ) (104 ) (65 )
--------- --------- ---------- --------
Income from operations $ 50 $ 39 $ 206 $ 183
--------- --------- ---------- --------
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Reconciliation of Adjusted EBITDA
Attributable to MPLX LP and Distributable
Cash Flow Attributable to MPLX LP to Net
Income (unaudited)
Three Months Year Ended
Ended December 31
December 31
(In millions) 2015 2014 2015 2014
--------- -------- --------- --------
Net income $ 18 $ 37 $ 157 $ 178
Plus: Depreciation and amortization 51 12 89 50
Provision for income taxes 2 - 2 -
Non-cash equity-based compensation 1 1 4 2
Net interest and other financial costs 30 2 47 5
Equity investment income (3 ) - (3 ) -
Equity method distributions 15 - 15 -
Acquisition costs 26 - 30 -
--------- -------- --------- --------
Adjusted EBITDA 140 52 341 235
Less: Adjusted EBITDA attributable to
noncontrolling
interests - 10 1 69
MarkWest's pre-merger EBITDA((a)) 146 - 146 -
--------- -------- --------- --------
Adjusted EBITDA attributable to MPLX LP 286 42 486 166
Plus: Current period cash
received/deferred revenue
for committed volume deficiencies 11 9 44 31
Less: Net interest and other financial
costs 20 2 36 6
Unrealized gain on commodity hedges 4 - 4 -
Equity investment capital expenditures
paid out (14 ) - (14 ) -
Equity investment cash contributions 14 - 14 -
Maintenance capital expenditures paid 14 9 30 20
Volume deficiency credits recognized 9 8 38 34
Other 7 - 7 -
--------- -------- --------- --------
Distributable cash flow pre-MarkWest
undistributed 243 32 415 137
MarkWest undistributed DCF((a)) (16 ) - (16 ) -
--------- -------- --------- --------
Distributable cash flow attributable to
MPLX LP $ 227 $ 32 $ 399 $ 137
--------- -------- --------- --------
-------------------------------------------------------------------------------
(a) MarkWest pre-merger EBITDA and undistributed distributable cash flow relates
to MarkWest's EBITDA and distributable cash flow from Oct. 1, 2015, through Dec.
3, 2015.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA Attributable to MPLX LP
and Distributable Cash Flow Attributable to MPLX LP to Net
Cash Provided by Operating Activities (unaudited)
Year Ended
December 31
(In millions) 2015 2014
--------- --------
Net cash provided by operating activities $ 239 $ 247
Less: Changes in working capital items (38 ) 19
All other, net 17 2
Plus: Non-cash equity-based compensation 4 2
Net loss on disposal of assets (1 ) -
Net interest and other financial costs 47 5
Asset retirement expenditures 1 2
Acquisition costs 30 -
--------- --------
Adjusted EBITDA 341 235
Less: Adjusted EBITDA attributable to non-controlling
interests 1 69
MarkWest's pre-merger EBITDA((a)) 146 -
--------- --------
Adjusted EBITDA attributable to MPLX LP 486 166
Plus: Current period cash received/deferred revenue for
committed volume
deficiencies 44 31
Less: Net interest and other financial costs 36 6
Unrealized gain on commodity hedges 4 -
Equity investment capital expenditures paid out (14 ) -
Equity investment cash contributions 14 -
Maintenance capital expenditures paid 30 20
Volume deficiency credits recognized 38 34
Other 7 -
--------- --------
Distributable cash flow pre-MarkWest undistributed 415 137
MarkWest's undistributed DCF adjustment((a)) (16 ) -
--------- --------
Distributable cash flow attributable to MPLX LP $ 399 $ 137
--------- --------
-------------------------------------------------------------------------------
(a) MarkWest pre-merger EBITDA and undistributed distributable cash flow relates
to MarkWest's EBITDA and distributable cash flow from Oct. 1, 2015, through Dec.
3, 2015, which create a total $130 million adjustment to DCF.
-------------------------------------------------------------------------------
Reconciliation of Forecast Distributable cash
Flow attributable to MPLX LP and Forecast
Adjusted EBITDA attributable to MPLX LP to Net
Income (unaudited)
Low High
Year Ended Year Ended
(In millions) 12/31/2016 12/31/2016
-------------- -------------
Net income $ 325 $ 485
Plus: Depreciation and amortization 582 582
Net interest and other financial costs 223 223
Adjustment for Equity investment earnings and
distributions 107 107
Other 16 6
-------------- -------------
Adjusted EBITDA 1,253 1,403
Less: Adjusted EBITDA attributable to NCI 3 3
-------------- -------------
Adjusted EBITDA attributable to MPLX LP 1,250 1,400
Less: Maintenance Capital 61 61
Net interest and other financial costs 223 223
Other (4 ) 16
-------------- -------------
Distributable cash flow attributable to MPLX LP $ 970 $ 1,100
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Reconciliation of Capital Expenditures
(unaudited)
Three Months Year Ended
Ended December 31
December 31
(In millions) 2015 2014 2015 2014
----------- -------- ----------- -------
Capital Expenditures((a)):
Maintenance $ 14 $ 11 $ 31 $ 28
Growth 137 29 259 65
----------- -------- ----------- -------
Total capital expenditures 151 40 290 93
Less: Increase in capital accruals 7 7 25 12
Asset retirement expenditures 1 1 1 2
----------- -------- ----------- -------
Additions to property, plant and
equipment 143 32 264 79
Capital expenditures of
unconsolidated subsidiaries((b)) 24 - 24 -
----------- -------- ----------- -------
Total gross capital expenditures 167 32 288 79
Joint venture partner contributions (8 ) - (8 ) -
----------- -------- ----------- -------
Total gross capital expenditures, net 159 32 280 79
Less: Maintenance capital 14 11 31 28
----------- -------- ----------- -------
Total growth capital expenditures 145 21 249 51
Acquisition, net of cash acquired 1,218 - 1,218 -
----------- -------- ----------- -------
Total growth capital and acquisition $ 1,363 $ 21 $ 1,467 $ 51
-------------------------------------------------------------------------------
(a) Excludes acquisition of an additional interest in MPLX Pipe Line Holdings
LP.
(b) Capital expenditures includes amounts related to unconsolidated,
partnership operated subsidiaries.
MPLX 4Q2015 Financial Results:
http://hugin.info/155038/R/1983242/726854.pdf
This announcement is distributed by GlobeNewswire on behalf of
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#1983242]
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