MPLX LP Reports Second-Quarter 2016 Financial Results
(Thomson Reuters ONE) -
* Reported second-quarter net income of $19 million and adjusted EBITDA of
$351 million
* Reported second-quarter net cash from operating activities of $298 million
and distributable cash flow of $285 million
* Declared distribution of $0.510 per common unit, a 16 percent increase over
second-quarter 2015
* Expanded operations to the prospective Delaware Basin with completion of the
Hidalgo gas processing complex
* Confirmed 2016 guidance of 12 to 15 percent distribution growth rate over
the prior year, double-digit distribution growth rate in 2017
* Announced Frank Semple will retire as vice chairman on Oct. 31, 2016
FINDLAY, Ohio, July 28, 2016 - MPLX LP (NYSE: MPLX) today reported second-
quarter 2016 net income attributable to MPLX of $19 million. Second-quarter
2016 net income includes a non-cash impairment charge of $89 million related to
an equity method investment.
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Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per
unit and ratio data) 2016 2015((a)) 2016 2015((a))
------------ ------------- ------------ ------------
Net income (loss)
attributable to MPLX((b)) $ 19 $ 51 $ (41 ) $ 97
Adjusted EBITDA
attributable to MPLX((c)) 351 70 653 134
Net cash provided by
operating activities 298 101 593 173
Distributable cash flow
("DCF")((c)) 285 62 521 118
Distribution per unit((d)) 0.5100 0.4400 1.0150 0.8500
Distribution coverage
ratio((e)) 1.24x 1.48x 1.21x 1.49x
Growth capital
expenditures((f)) 267 30 569 62
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((a) )MarkWest operations excluded from results and measures provided
prior to the Dec. 4, 2015, merger.
((b)) The three and six months ended June 30, 2016, include a pretax, non-
cash impairment of $89 million related to an equity method investment. The three
and six months ended June 30, 2016, include a pretax, non-cash impairment of $1
million and $130 million, respectively, related to the goodwill established in
connection with the MarkWest acquisition.
((c) )Non-GAAP measure. See reconciliation below. Excludes impairment
charges.
((d)) Distributions declared by the board of directors of our general
partner.
((e)) Non-GAAP measure. See calculation below.
((f) )Includes capital expenditures for inland marine business
("Predecessor") for all periods presented. Excludes non-affiliated joint-venture
(JV) members' share of capital expenditures. See description below.
"MPLX continued to deliver solid results during the second quarter and we are
encouraged by the improving commodity-price environment. As a result, we have
increased the midpoints for our full-year 2016 financial guidance," MPLX
Chairman and Chief Executive Officer Gary R. Heminger said. "We remain on target
to achieve our 2016 distribution growth guidance of 12 to 15 percent without the
need for additional dropdowns from MPC during the year."
During the quarter, MPLX expanded its midstream presence in the Southwest with
the completion of its Hidalgo gas processing complex in the Delaware Basin,
which is now 80 percent utilized only three months after starting operations. In
addition, the partnership increased its processing capacity and purity ethane
fractionation capacity in the Marcellus Shale. MPLX continues to anticipate its
Marcellus and Utica shale processing facilities will average approximately 80
percent utilization for 2016, as it expects overall processed gas volumes in the
region to increase by approximately 15 percent year-over-year.
The Cornerstone Pipeline is progressing as planned, with completion expected in
the fourth quarter. The partnership has also accelerated construction of a
pipeline that connects its Hopedale fractionator to the Cornerstone Pipeline and
expects to commence operations in the fourth quarter. With the Hopedale
connection, Cornerstone Pipeline is designed to provide an industry solution to
move condensate and natural gas liquids out of the Marcellus and Utica regions
into Midwest refining centers and into Canada.
Commercial and engineering teams continue to evaluate synergistic projects to
support producer customers in the Marcellus and Utica shale regions. Among these
potential solutions are a butane-to-alkylate facility, a regional NGL export
solution in the Northeast, and a long-haul pipeline to the Gulf Coast, such as a
reversal of the Centennial Pipeline.
"We remain focused on optimizing capital investments and capturing commercial
synergies. As commodity prices recover, optimism is growing among our producer
customers, and with world-class midstream assets located in some of the best
resource plays in the country, we are well-positioned to capitalize on an
exceptional set of opportunities along the entire hydrocarbon value chain,"
Heminger said.
MPLX also announced that Frank Semple, vice chairman of MPLX's general partner,
will retire from his executive role on Oct. 31, 2016, culminating a 38-year
career in the energy and telecommunications industry which followed his
distinguished service in the U.S. Navy. Semple will remain on the MPLX board of
directors, and will also continue to serve on the board of directors of MPLX's
sponsor, Marathon Petroleum Corp. (NYSE: MPC).
"All of us on the MPLX board of directors are grateful to Frank for his service
as vice chairman and his efforts to facilitate the seamless combination of
MarkWest and MPLX," Heminger said. "Frank assembled an outstanding management
team at MarkWest and provided strong leadership that created tremendous
unitholder value. We are fortunate to continue to benefit from his deep
knowledge of the midstream business as well as his keen focus on creating value
for our unitholders as we position MPLX to continue delivering sustainable
returns over the long term."
Operational Highlights
· Commenced operations of the Hidalgo 200-million-cubic-feet-per-day
cryogenic gas processing plant in May, the partnership's first facility in the
highly prospective Delaware Basin in West Texas. Complex utilization is already
at 80 percent.
· Commenced operations of the Mobley V 200-million-cubic-feet-per-day
processing plant in the Marcellus Shale in early April.
· Increased the partnership's Northeast de-ethanization capacity to
190,000 barrels per day (Bbl/d) with the addition of a new 10,000 Bbl/d facility
in the Marcellus Shale in early April. Production of purity ethane from the
Marcellus and Utica shales increased 76 percent from second-quarter 2015.
· Continued construction of Cornerstone Pipeline to transport liquids
production from the Marcellus and Utica shales of eastern Ohio to MPC's refinery
in Canton, Ohio, providing an industry solution in the region; the pipeline is
scheduled for completion in the fourth quarter.
· Commenced construction of the Hopedale connection to Cornerstone Pipeline
to transport natural gasoline from the Marcellus and Utica shales to Midwest
refiners, including MPC; the pipeline construction was accelerated to align with
Cornerstone Pipeline's expected completion in the fourth quarter.
· Completed expansion of the Patoka-to-Robinson, Illinois, pipeline to
support increased crude oil supply to MPC's Robinson, Illinois, refinery.
· Concluded the first full quarter with the inland marine business,
diversifying the partnership's earnings with a fee-for-capacity contract
structure.
Financial Position and Liquidity
As of June 30, MPLX had $2 billion available through its bank revolving credit
facility and $500 million available through its facility with MPC. During the
quarter, MPLX issued 30.8 million convertible preferred units and received net
proceeds of approximately $984 million. The $1.3 billion of financing completed
through this preferred unit issuance and at-the-market (ATM) equity issuances
earlier in the year provide for the partnership's forecast funding needs for the
remainder of 2016 and into 2017. The partnership's debt-to-pro forma adjusted
EBITDA ratio was 3.7 times at June 30. MPLX remains committed to maintaining an
investment-grade credit profile.
2016 Forecast
MPLX has increased the midpoints of its 2016 financial forecast for adjusted
earnings before interest, taxes, depreciation and amortization (adjusted
EBITDA), distributable cash flow (DCF) and growth capital expenditures. Based on
current estimates for operational volumes, commodity prices, and derivative
instruments outstanding, our 2016 forecast is:
· Net income((a)): $140 million to $240 million
· Adjusted EBITDA((b)): $1.3 billion to $1.4 billion
· Net cash provided by operating activities: $1.1 billion to $1.2 billion
· Distributable cash flow (DCF)((b)): $1.0 billion to $1.1 billion
· Growth capital expenditures: $900 million to $1.2 billion
· Maintenance capital expenditures: ~$60 million
· Distribution growth rate: 12 percent to 15 percent
((a) )Guidance includes the $130 million first-half non-cash goodwill
impairment charges and the $89 million second-quarter non-cash equity method
impairment charge.
((b)) Non-GAAP measure calculated before the distribution to preferred units
and excluding the $130 million first-half non-cash goodwill impairment charges
and the $89 million second-quarter non-cash, equity method impairment charge.
See reconciliation below.
Segment Results
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Three Months Six Months
Ended Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
--------- -------- --------- --------
Logistics and Storage $ 123 $ 88 $ 211 $ 170
Gathering and Processing 271 - 528 -
--------- -------- --------- --------
Segment operating income attributable to
MPLX LP((a)) $ 394 $ 88 $ 739 $ 170
--------- -------- --------- --------
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((a) )See reconciliation below for details.
Logistics and Storage segment operating income increased for the second quarter
of 2016 compared with the same period in 2015. The increase was primarily due to
the acquisition of the inland marine business on March 31, 2016.
Gathering and Processing (G&P) segment operating income increased for the second
quarter of 2016 compared with the same period in 2015. This increase is due to
the acquisition of MarkWest. Further discussion is included in the G&P pro forma
financial information below.
Corporate general and administrative expenses, unrealized derivative
gains/losses, depreciation, amortization and impairment charges 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.
G&P Pro Forma Financial Information
For the G&P segment, the table below presents financial information, as
evaluated by management, for the reported segment for the three months and six
months ended June 30, 2016, and 2015. MPLX believes this June 30, 2015, pro
forma quarterly data provides a useful comparison for the G&P segment in light
of the December 2015 acquisition. The pro forma financial information below may
not necessarily be indicative of future results. In addition, all partnership-
operated, non-wholly owned subsidiaries are treated as if they are consolidated.
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Three Months Ended Six Months Ended
June 30 June 30
(In millions) 2016((a)) 2015((b)) 2016((a)) 2015((b))
------------- ------------- ------------- ------------
Segment operating
income attributable to
G&P $ 271 $ 243 $ 528 $ 488
------------- ------------- ------------- ------------
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((a) )Actual results.
((b) )G&P segment results incorporate pro-forma adjustments necessary to
reflect a Jan. 1, 2014, acquisition date (see the reconciliations of pro forma
data below).
Segment operating income attributable to G&P increased for the second quarter of
2016 compared with the pro forma results for the same period in 2015 and for the
six months ended June 30, 2016, compared with the same period of 2015. These
increases were primarily due to higher volumes, partially offset by decreases in
natural gas and NGL prices.
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Three Months Ended Six Months Ended
June 30 June 30
G&P Pro Forma % %
Operating Statistics 2016 2015 Change 2016 2015 Change
--------- --------- -------- --------- --------- -------
Gathering Throughput
(mmcf/d)
Marcellus operations 918 857 7 % 910 836 9 %
Utica operations 902 583 55 % 946 543 74 %
Southwest operations 1,468 1,445 2 % 1,460 1,421 3 %
--------- --------- -------- --------- --------- -------
Total gathering
throughput 3,288 2,885 14 % 3,316 2,800 18 %
Natural Gas
Processed (mmcf/d)
Marcellus operations 3,072 2,894 6 % 3,112 2,870 8 %
Utica operations 1,034 762 36 % 1,077 759 42 %
Southwest operations 1,175 1,064 10 % 1,142 1,065 7 %
Southern Appalachian
operations 248 278 (11 )% 251 272 (8 )%
--------- --------- -------- --------- --------- -------
Total natural gas
processed 5,529 4,998 11 % 5,582 4,966 12 %
C2 + NGLs
Fractionated (mbpd)
Marcellus operations 252 193 31 % 244 187 30 %
Utica operations 40 34 18 % 44 34 29 %
Southwest operations 14 17 (18 )% 16 17 (6 )%
Southern Appalachian
operations 16 15 7 % 17 15 13 %
--------- --------- -------- --------- --------- -------
Total C2 + NGLs
fractionated 322 259 24 % 321 253 27 %
--------------------------------------------------- --------- -----------------
Conference Call
At 11 a.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 by dialing 1-800-446-1671 (confirmation #42834145)
or by visiting MPLX's website at http://www.mplx.com and clicking on the "2016
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. 10. 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 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, an inland marine business, a butane storage cavern located in West
Virginia with approximately one million barrels of 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 that include more than 5,000 miles of gas
gathering and NGL pipelines, 54 gas processing plants, 13 NGL fractionation
facilities and two condensate stabilization facilities.
Investor Relations Contacts:
Lisa D. Wilson (419) 421-2071
Teresa Homan (419) 421-2965
Kevin Hawkins (866) 858-0482
Media Contacts:
Katie Merx (419) 672-5159
Chuck Rice (419) 421-2521
Non-GAAP references
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, distributable cash flow (DCF) and distribution
coverage ratio. The amount of adjusted EBITDA and DCF generated is considered by
the board of directors of our general partner in approving the Partnership's
cash distribution. Adjusted EBITDA and DCF 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 (benefit) for income taxes; (iii)
non-cash equity-based compensation; (iv) net interest and other financial costs;
(v) equity investment income (loss); (vi) equity-method distributions; (vii)
impairment expenses; (viii) unrealized gain/loss on commodity hedges; and (ix)
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) equity investment capital expenditures paid out; (iii) net interest
and other financial costs; (iv) equity investment cash contributions; (v)
maintenance capital expenditures paid; (vi) volume deficiency credits
recognized; and (vii) 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.
Distribution coverage ratio is a financial performance measure used by
management to reflect the relationship between the partnership's financial
operating performance and cash distribution capability. We define the
distribution coverage ratio as the ratio of DCF attributable to GP and LP
unitholders to total GP and LP distribution declared.
Forward-looking statements
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," "design," "estimate," "expect," "forecast,"
"goal," "guidance," "imply," "intend," "objective," "opportunity," "outlook,"
"plan," "position," "pursue," "prospective," "predict," "project," "potential,"
"seek," "strategy," "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. Factors that could cause MPLX's
actual results to differ materially from those implied in the forward-looking
statements include: negative capital market conditions, including a persistence
or increase of the current yield on common units, which is higher than
historical yields, adversely affecting MPLX's ability to meet its distribution
growth guidance; risk that the synergies from the acquisition of MarkWest Energy
Partners, L.P. ("MarkWest") by MPLX may not be fully realized or may take longer
to realize than expected; disruption from the MPLX/MarkWest merger 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 distributions, and the ability to successfully
execute its business plans and growth strategy; the timing and extent of changes
in commodity prices and demand for crude oil, refined products, feedstocks or
other hydrocarbon-based products; continued/further 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 drop-downs, 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; compliance with
federal and state environmental, economic, health and safety, energy and other
policies and regulations and/or enforcement actions initiated thereunder;
changes to MPLX's capital budget; other risk factors inherent to MPLX'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, 2015, and Quarterly
Report on Form 10-Q for the quarter ended March 31, 2016, filed with the
Securities and Exchange Commission (SEC). 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 and the MPLX/MarkWest
merger; 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; compliance
with federal and state environmental, economic, health and safety, energy and
other policies and regulations, including the cost of compliance with the
Renewable Fuel Standard, and/or enforcement actions initiated thereunder;
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, 2015, filed with the 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 or Form
10-Q or in MPC's Form 10-K could also have material adverse effects on forward-
looking statements. Copies of MPLX's Form 10-K and Form 10-Q 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.
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Results of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per
unit data) 2016 2015((a)) 2016 2015((a))
----------- ------------- ----------- ------------
Revenues and other income:
Service revenue $ 233 $ 16 $ 462 $ 32
Service revenue - related
parties 145 152 295 294
Rental income 71 - 141 -
Rental income - related
parties 29 25 55 50
Product sales 137 - 237 -
Product sales - related
parties 3 - 6 -
Loss from equity method
investments (83 ) - (78 ) -
Other income 1 2 3 3
Other income - related
parties 28 18 52 35
----------- ------------- ----------- ------------
Total revenues and other
income 564 213 1,173 414
Costs and expenses:
Cost of revenues (excludes
items below) 84 46 173 88
Purchased product costs 114 - 193 -
Rental cost of sales 14 - 28 -
Purchases - related parties 78 40 154 80
Depreciation and
amortization 137 20 269 39
Impairment expense 1 - 130 -
General and administrative
expenses 49 21 101 43
Other taxes 11 4 22 8
----------- ------------- ----------- ------------
Total costs and expenses 488 131 1,070 258
----------- ------------- ----------- ------------
Income from operations 76 82 103 156
Related party interest and
other financial costs - - 1 -
Interest expense, net of
amounts capitalized 52 6 107 11
Other financial costs 12 - 24 1
----------- ------------- ----------- ------------
Income (loss) before income
taxes 12 76 (29 ) 144
Benefit for income taxes (8 ) - (12 ) -
----------- ------------- ----------- ------------
Net income (loss) 20 76 (17 ) 144
Less: Net income
attributable to
noncontrolling interests 1 1 1 1
Net income attributable to
Predecessor - 24 23 46
----------- ------------- ----------- ------------
Net income (loss)
attributable to MPLX LP 19 51 (41 ) 97
Less: Preferred unit
distributions 9 - 9 -
Less: General partner's
interest in net income
attributable to MPLX LP 46 7 85 11
----------- ------------- ----------- ------------
Limited partners' interest
in net (loss) income
attributable to MPLX LP $ (36 ) $ 44 $ (135 ) $ 86
----------- ------------- ----------- ------------
Per Unit Data
Net (loss) income
attributable to MPLX LP per
limited partner unit:
Common - basic $ (0.11 ) $ 0.50 $ (0.43 ) $ 0.96
Common - diluted (0.11 ) 0.50 (0.43 ) 0.96
Subordinated - basic and
diluted - 0.50 - 0.96
Weighted average limited
partner units outstanding:
Common units - basic 331 43 316 43
Common units - diluted 331 43 316 43
Subordinated units - basic
and diluted - 37 - 37
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((a)) Financial information has been retrospectively adjusted to include the
results of the inland marine business prior to the March 31, 2016, acquisition
from MPC, since MPLX and this business are under common control. The net income
of the Predecessor is excluded from net (loss) income attributable to MPLX LP.
-------------------------------------------------------------------------------
Select Financial Statistics
(unaudited)
Three Months Six Months Ended
Ended June 30
June 30
(In millions, except ratio data) 2016 2015 2016 2015
---------- --------- ---------- ---------
Distribution declared:
Limited partner units - public $ 131 $ 10 $ 258 $ 20
Limited partner units - MPC 41 25 70 48
General partner units - MPC 4 1 8 2
Incentive distribution rights - MPC 46 6 86 9
---------- --------- ---------- ---------
Total GP and LP distribution declared 222 42 422 79
---------- --------- ---------- ---------
Redeemable preferred units((a)) 9 - 9 -
---------- --------- ---------- ---------
Total distribution declared $ 231 $ 42 $ 431 $ 79
---------- --------- ---------- ---------
Distribution coverage ratio((b)) 1.24x 1.48x 1.21x 1.49x
Cash Flow Data
Net cash flow provided by (used in):
Operating activities $ 298 $ 101 $ 593 $ 173
Investing activities $ (286 ) $ (66 ) $ (526 ) $ (109 )
Financing activities $ 19 $ (37 ) $ (75 ) $ 39
Other Financial Data
Adjusted EBITDA attributable to MPLX
LP((c)) $ 351 $ 70 $ 653 $ 134
DCF attributable to GP and LP
unitholders((c)) $ 276 $ 62 $ 512 $ 118
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((a) )The preferred units are considered redeemable securities due to the
existence of redemption provisions upon a deemed liquidation event which is
outside our control.
((b) )DCF attributable to GP and LP unitholders divided by total GP and
LP distribution declared.
((c) )Non-GAAP measure. See reconciliation below.
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Select Balance Sheet Data (unaudited)
June 30 Dec. 31
(In millions, except ratio data) 2016 2015
------------ -----------
Total assets $ 16,079 $ 16,104
Total debt $ 4,401 $ 5,264
Redeemable preferred units $ 993 $ -
Total equity $ 9,473 $ 9,667
Consolidated total debt to LTM pro forma adjusted
EBITDA((a)) 3.7x 4.5x
Partnership units outstanding:
General partner units 8 7
Class B units((b)) 8 8
MPC-held LP units 79 57
Public limited partner units 252 240
-------------------------------------------------------------------------------
((a) )Calculated using face value total debt and LTM pro forma adjusted
EBITDA, which is pro forma for acquisitions. Face value total debt includes
approximately $450 million and $472 million of unamortized discount and
approximately $8 million of unamortized debt issuance costs as of June 30, 2016
and December 31, 2015.
((b) )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 $6.20 in cash for each Class B unit in two equal installments, the
first of which occurred on July 1, 2016, and the second of which will occur July
1, 2017. Class B units do not receive distributions.
-------------------------------------------------------------------------------
Operating
Statistics
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
% %
2016 2015 Change 2016 2015 Change
--------- --------- -------- --------- --------- -------
Logistics and
Storage
Pipeline
throughput
(thousands of
barrels per
day)
Crude oil
pipelines 1,066 1,123 (5 )% 1,045 1,068 (2 )%
Product
pipelines 904 941 (4 )% 910 913 - %
--------- --------- -------- --------- --------- -------
Total pipeline
throughput 1,970 2,064 (5 )% 1,955 1,981 (1 )%
Average tariff
rates ($ per
barrel)
Crude oil
pipelines $ 0.69 $ 0.66 5 % $ 0.69 $ 0.67 3 %
Product
pipelines 0.68 0.64 6 % 0.67 0.63 6 %
Total 0.68 0.65 5 % 0.68 0.65 5 %
Barges at
period-end 205 202 1 % 205 202 1 %
Towboats at
period-end 18 18 - % 18 18 - %
Gathering and
Processing
Gathering
throughput
(mmcf/d)
Marcellus
operations 918 910
Utica
operations 902 946
Southwest
operations 1,468 1,460
--------- ---------
Total
gathering
throughput 3,288 3,316
Natural gas
processed
(mmcf/d)
Marcellus
operations 3,072 3,112
Utica
operations 1,034 1,077
Southwest
operations 1,175 1,142
Southern
Appalachian
operations 248 251
--------- ---------
Total natural
gas processed 5,529 5,582
C2 + NGLs
fractionated
(mbpd)
Marcellus
operations 252 244
Utica
operations 40 44
Southwest
operations 14 16
Southern
Appalachian
operations 16 17
----------- ---------
Total C2 +
NGLs
fractionated 322 321
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Reconciliation of Segment Operating
Income Attributable to MPLX LP to
Income From Operations (unaudited)
Three Months Six Months Ended
Ended June 30
June 30
(In millions) 2016 2015 2016 2015
---------- --------- ---------- --------
Segment operating income attributable
to MPLX LP((a)) $ 394 $ 88 $ 739 $ 170
Segment portion attributable to
unconsolidated affiliates (83 ) - (166 ) -
Segment portion attributable to NCI
and Predecessor((b)) 36 35 111 68
Loss from equity method investments (83 ) - (78 ) -
Other income - related parties 11 - 18 -
Unrealized derivative loss (12 ) - (21 ) -
Depreciation and amortization (137 ) (20 ) (269 ) (39 )
Impairment expense (1 ) - (130 ) -
General and administrative expenses (49 ) (21 ) (101 ) (43 )
---------- --------- ---------- --------
Income from operations $ 76 $ 82 $ 103 $ 156
---------- --------- ---------- --------
-------------------------------------------------------------------------------
((a) )All Partnership-operated, non-wholly owned subsidiaries are treated
as if they are consolidated.
((b)) The operating income of the Predecessor of the inland marine business
is excluded from segment operating income attributable to MPLX LP prior to the
March 31, 2016, acquisition.
-------------------------------------------------------------------------------
Pro Forma Reconciliation to Pro
Forma Income from Operations
(unaudited)((a)):
Three Months Ended Six Months Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
---------- ----------- ---------- ---------
Segment operating income
attributable to G&P $ 271 $ 243 $ 528 $ 488
Segment operating income
attributable to L&S 123 88 211 170
Segment portion attributable to
unconsolidated affiliates (83 ) (4 ) (166 ) (6 )
Segment portion attributable to
noncontrolling interest and
Predecessor 36 47 111 90
(Loss) income from equity method
investments (83 ) 1 (78 ) (2 )
Other income (loss) - related
parties 11 (2 ) 18 -
Unrealized derivative loss (12 ) (7 ) (21 ) (16 )
Depreciation and amortization (137 ) (140 ) (269 ) (279 )
Impairment expense (1 ) - (130 ) (26 )
General and administrative expenses (49 ) (53 ) (101 ) (110 )
---------- ----------- ---------- ---------
Pro forma income from operations $ 76 $ 173 $ 103 $ 309
---------- ----------- ---------- ---------
-------------------------------------------------------------------------------
((a) )This table reconciles pro forma data presented in the pro forma
financial information section above to the closest GAAP measure.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA
attributable to MPLX LP and DCF
attributable to GP and LP unitholders
from Net Income (Loss) (unaudited)
Three Months Six Months
Ended Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
--------- --------- --------- --------
Net income (loss) $ 20 $ 76 $ (17 ) $ 144
Plus: Depreciation and amortization 137 20 269 39
Benefit for income taxes (8 ) - (12 ) -
Amortization of deferred financing costs 12 - 23 -
Non-cash equity-based compensation 4 - 6 1
Impairment expense 1 - 130 -
Net interest and other financial costs 52 6 109 12
Loss from equity investments 83 - 78 -
Distributions from unconsolidated
subsidiaries 40 - 78 -
Unrealized loss on commodity hedges 12 - 21 -
Acquisition costs (2 ) - (1 ) -
--------- --------- --------- --------
Adjusted EBITDA 351 102 684 196
Less: Adjusted EBITDA attributable to
noncontrolling
interests - 1 1 1
Adjusted EBITDA attributable to
Predecessor((a)) - 31 30 61
--------- --------- --------- --------
Adjusted EBITDA attributable to MPLX LP 351 70 653 134
Plus: Current period cash
received/deferred revenue for
committed volume deficiencies((b)) 11 10 21 22
Less: Net interest and other financial
costs 52 6 109 12
Equity investment capital expenditures
paid (10 ) - (38 ) -
Investment in unconsolidated affiliates 10 - 39 -
Maintenance capital expenditures paid 16 4 28 8
Volume deficiency credits
recognized((c)) 9 9 16 19
Adjustments attributable to
Predecessor((a)) - (1 ) (1 ) (1 )
--------- --------- --------- --------
DCF 285 62 521 118
--------- --------- --------- --------
Less: Preferred unit distributions 9 - 9 -
--------- --------- --------- --------
DCF attributable to GP and LP
unitholders $ 276 $ 62 $ 512 $ 118
--------- --------- --------- --------
-------------------------------------------------------------------------------
((a) )The Adjusted EBITDA and DCF adjustments related to the Predecessor
are excluded from adjusted EBITDA attributable to MPLX LP and DCF prior to the
March 31, 2016, acquisition.
((b) )Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
((c) )Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but not DCF.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA
attributable to MPLX LP and DCF
attributable to GP and LP unitholders
from Net Cash Provided by Operating
Activities (unaudited)
Three Months Six Months
Ended Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
--------- --------- --------- --------
Net cash provided by operating
activities $ 298 $ 101 $ 593 $ 173
Less: Changes in working capital items 10 5 26 (9 )
All other, net 6 - 21 (1 )
Plus: Non-cash equity-based compensation 4 - 6 1
Net interest and other financial costs 52 6 109 12
Current income taxes expense 1 - 1 -
Asset retirement expenditures 2 - 2 -
Unrealized loss on commodity hedges 12 - 21 -
Acquisition costs (2 ) - (1 ) -
--------- --------- --------- --------
Adjusted EBITDA 351 102 684 196
Less: Adjusted EBITDA attributable to
noncontrolling interests - 1 1 1
Adjusted EBITDA attributable to
Predecessor((a)) - 31 30 61
--------- --------- --------- --------
Adjusted EBITDA attributable to MPLX LP 351 70 653 134
Plus: Current period cash
received/deferred revenue for committed
volume deficiencies((b)) 11 10 21 22
Less: Net interest and other financial
costs 52 6 109 12
Equity investment capital expenditures
paid (10 ) - (38 ) -
Investment in unconsolidated affiliates 10 - 39 -
Maintenance capital expenditures paid 16 4 28 8
Volume deficiency credits
recognized((c)) 9 9 16 19
Adjustments attributable to
Predecessor((a)) - (1 ) (1 ) (1 )
--------- --------- --------- --------
DCF 285 62 521 118
--------- --------- --------- --------
Less: Preferred unit distributions 9 - 9 -
--------- --------- --------- --------
DCF attributable to GP and LP
unitholders $ 276 $ 62 $ 512 $ 118
--------- --------- --------- --------
------------------------------------------------------------ ------------------
((a) )The adjusted EBITDA and DCF adjustments related to the Predecessor
are excluded from Adjusted EBITDA attributable to MPLX LP and DCF prior to the
March 31, 2016, acquisition.
((b) )Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
((c) )Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but not DCF.
-------------------------------------------------------------------------------
Capital Expenditures
(unaudited)
Three Months Six Months
Ended Ended
June 30 June 30
(In millions) 2016 2015 2016 2015
--------- -------- --------- -------
Capital Expenditures((a)):
Maintenance $ 21 $ 5 $ 31 $ 8
Growth 272 37 533 75
--------- -------- --------- -------
Total capital expenditures 293 42 564 83
Less: Increase (decrease) in capital
accruals 13 7 (7 ) 13
Asset retirement expenditures 2 - 2 -
--------- -------- --------- -------
Additions to property, plant and equipment 278 35 569 70
Capital expenditures of unconsolidated
subsidiaries((b)) 16 - 60 -
--------- -------- --------- -------
Total gross capital expenditures 294 35 629 70
Less: Joint venture partner contributions 6 - 29 -
--------- -------- --------- -------
Total gross capital expenditures, net 288 35 600 70
Less: Maintenance capital 21 5 31 8
--------- -------- --------- -------
Total growth capital expenditures $ 267 $ 30 $ 569 $ 62
-------------------------------------------------------------------------------
((a) )Includes capital expenditures of the Predecessor for all periods
presented.
((b) )Capital expenditures includes amounts related to unconsolidated,
partnership operated subsidiaries.
-------------------------------------------------------------------------------
2016 Forecast - Reconciliation of Adjusted EBITDA
Attributable to MPLX LP and DCF Attributable to GP and
LP unitholders from Net Income (unaudited)
(In millions) Low High
----------- ----------
Net income $ 140 $ 240
Plus: Depreciation and amortization 540 540
Benefit for Income taxes (20 ) (20 )
Amortization of deferred financing costs 45 45
Non-cash equity-based compensation 10 10
Impairment expense 130 130
Net interest and other financial costs 220 220
Loss from equity investments((a)) 70 70
Distributions from equity investments 145 145
Unrealized loss on commodity hedges 10 10
Acquisition costs (1 ) (1 )
Other 14 14
----------- ----------
Adjusted EBITDA 1,303 1,403
Less: Adjusted EBITDA attributable to noncontrolling
interests 3 3
----------- ----------
Adjusted EBITDA attributable to MPLX LP 1,300 1,400
Plus: Current period cash received/deferred revenue for
committed volume
deficiencies((b)) 40 40
Less: Net interest and other financial costs 220 220
Equity investment capital expenditures paid (115 ) (115 )
Investment in unconsolidated affiliates 117 117
Maintenance capital expenditures paid 60 60
Volume deficiency credits recognized((c)) 35 35
Adjustments attributable to Predecessor((d)) (1 ) (1 )
All other, net 24 24
----------- ----------
DCF 1,000 1,100
----------- ----------
Less: Preferred unit distributions 41 41
----------- ----------
DCF available to GP and LP unitholders $ 959 $ 1,059
----------- ----------
-------------------------------------------------------------------------------
((a)) Includes a pretax, non-cash impairment of $89 million related to an
equity method investment.
((b) )Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
((c) )Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but not DCF.
((b)) The DCF adjustments related to the Predecessor are excluded from DCF
prior to the March 31, 2016, acquisition.
-------------------------------------------------------------------------------
2016 Forecast - Reconciliation of Adjusted EBITDA
Attributable to MPLX LP and DCF Attributable to GP and
LP Unitholders from Net Cash Provided by Operating
Activities (unaudited)
(In millions) Low High
----------- ----------
Net cash provided by operating activities $ 1,075 $ 1,175
Less: Changes in working capital items (8 ) (8 )
All other, net 22 22
Plus: Non-cash equity based compensation 10 10
Net cash interest and other financial costs 220 220
Current Income tax expense 1 1
Asset retirement expenditures 2 2
Unrealized loss on commodity hedges 10 10
Acquisition costs (1 ) (1 )
----------- ----------
Adjusted EBITDA 1,303 1,403
Less: Adjusted EBITDA attributable to noncontrolling
interests 3 3
----------- ----------
Adjusted EBITDA attributable to MPLX LP 1,300 1,400
Plus: Current period cash received/deferred revenue for
committed volume
deficiencies((a)) 40 40
Less: Net interest and other financial costs 220 220
Equity investment capital expenditures paid (1
Datum: 28.07.2016 - 12:48 Uhr
Sprache: Deutsch
News-ID 486059
Anzahl Zeichen: 65659
contact information:
Town:
FINDLAY
Kategorie:
Business News
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"MPLX LP Reports Second-Quarter 2016 Financial Results"
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