MPLX LP Reports Third-Quarter 2016 Financial Results
(Thomson Reuters ONE) -
* Reported third-quarter net income of $141 million and adjusted EBITDA of
$375 million on strong volume growth in the Northeast and Southwest
* Reported third-quarter net cash from operating activities of $339 million
and distributable cash flow of $301 million
* Declared distribution of $0.515 per common unit, a 10 percent increase over
third-quarter 2015
* Affirmed 2016 distribution growth guidance of 12 to 15 percent; forecast
2017 distribution growth rate of 12 to 15 percent and a double-digit
distribution growth rate for 2018
* Strategic initiatives announced by MPC support MPLX's distribution growth
FINDLAY, Ohio, Oct. 27, 2016 - MPLX LP (NYSE: MPLX) today reported third-quarter
2016 net income attributable to MPLX of $141 million.
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Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
(In millions, except per
unit and ratio data) 2016 2015((a)) 2016 2015((a))
------------ ------------- ------------ ------------
Net income attributable to
MPLX((b)) $ 141 $ 41 $ 100 $ 138
Adjusted EBITDA
attributable to MPLX((c)) 375 66 1,028 200
Net cash provided by
operating activities 339 85 932 258
Distributable cash flow
("DCF")((c)) 301 54 822 172
Distribution per common
unit((d)) 0.5150 0.4700 1.5300 1.3200
Distribution coverage
ratio((e)) 1.22x 1.15x 1.22x 1.37x
Growth capital
expenditures((f)) 306 48 875 110
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((a) )MarkWest operations excluded from results and measures provided
prior to the Dec. 4, 2015, merger.
((b)) The nine months ended Sept. 30, 2016, include pretax, non-cash
impairments of $89 million related to an equity method investment and $130
million related to the goodwill established in connection with the MarkWest
acquisition.
((c) )Non-GAAP measure calculated before the distribution to preferred
units and excluding impairment charges. See reconciliation below.
((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"), acquired on March 31, 2016. Excludes non-affiliated joint-
venture (JV) members' share of capital expenditures. See description below.
In a separate release this morning, Marathon Petroleum Corporation (NYSE: MPC)
announced several strategic actions, including an aggressive dropdown strategy.
In 2017, MPC plans to offer the partnership assets contributing approximately
$350 million of annual earnings before interest, taxes, depreciation and
amortization (EBITDA), with the first drop of approximately $235 million of
annual EBITDA by the end of the first quarter. The partnership's plans for
funding these dropdowns would likely include transactions with MPC, including
the potential for a substantial amount of equity to MPC.
MPC intends to execute on additional value-enhancing dropdowns totaling an
estimated $1 billion of annual EBITDA to the partnership within the next three
years. The dropdown strategy is subject to market and other conditions, as well
as requisite approvals.
In addition to the expected dropdowns, MPC announced the evaluation of
opportunities to optimize the partnership's cost of capital through a strategic
review of its general partner interest.
"We believe MPC's strategic plan introduced today, including the visibility to
its planned dropdown schedule, combined with the strong underlying organic
growth we continue to enjoy in the gathering and processing business will
support distribution growth of 12 to 15 percent for 2017 and double-digit growth
for 2018," said Gary R. Heminger, MPLX chairman and chief executive officer.
A copy of the press release can be found at http://ir.marathonpetroleum.com.
"MPLX delivered strong results in the third quarter and a distribution coverage
ratio of over 1.2 times," Heminger said. "MPLX's gathering and processing
segment is experiencing growing demand from producer customers amid an improving
commodity price environment, while our logistics and storage segment continues
to generate steady results supporting the requirements of Marathon Petroleum.
"We are pleased with our team's success in completing the Cornerstone Pipeline
on schedule and under budget this month," Heminger said. MPLX now is in the
process of expanding the capacity of existing pipelines, as well as constructing
new pipelines as part of a larger build-out of Utica Shale infrastructure, which
is targeted for completion in mid-2017. With this mix of new and existing
pipelines, MPLX is seizing a unique opportunity to support producer customer
growth by connecting natural gas liquids (NGLs) to downstream markets in the
Midwest and Canada through its extensive distribution network.
MPLX's gathering and processing segment continues to drive exceptional organic
growth opportunities in support of a diverse set of producer customers in some
of the nation's most prolific shale plays. "In 2016, processed volumes from our
Northeast and Southwest operating units are expected to achieve approximately
15 percent growth over the prior year," Heminger said. For 2017, the partnership
forecasts Marcellus and Utica processed volumes to increase by 10 to 15 percent.
MPLX is currently constructing five new processing and fractionation facilities
in the region to meet projected volume growth. These plants are expected to
commence operations in 2017.
"We continue to work with our producer customers as they evaluate their
development plans for 2017," Heminger said. "Increased drilling activity among
our producer customers, combined with previously announced logistics and storage
projects, supports our positive outlook for the remainder of this year and
2017."
Operational Highlights
* Commenced operations of the Cornerstone Pipeline, on schedule and under
budget, to transport liquids production from the Marcellus and Utica shales
of eastern Ohio to a tank farm in East Sparta, Ohio, and on to MPC's
refinery in Canton, Ohio, providing improved industry connectivity to the
region.
* Accelerated construction of the Hopedale connection to Cornerstone Pipeline
to transport natural gasoline from the Marcellus and Utica shales to Midwest
refiners, including MPC, with completion expected by year end.
* Increased Northeast natural gas processed volumes by 14 percent over the
third quarter of 2015 and 5 percent over the second quarter of 2016.
* Increased Southwest natural gas processed volumes by 14 percent over the
second quarter of 2016, driven by the Hidalgo complex in the Delaware Basin,
which commenced operations in May.
Financial Position and Liquidity
As of Sept. 30, MPLX had $208 million in cash, $2 billion available through its
bank revolving credit facility and $500 million available through its credit
facility with MPC. During the third quarter, MPLX opportunistically issued 5.7
million new common units through its at-the-market program and received net
proceeds of approximately $184 million. The partnership's $2.7 billion of
available liquidity should provide it with sufficient flexibility to meet its
day-to-day operational needs and continue investing in organic growth
opportunities. The partnership's debt-to-pro forma adjusted EBITDA ratio was
3.5 times at Sept. 30. MPLX remains committed to maintaining an investment-grade
credit profile.
Forecast
MPLX today reiterated its 2016 financial forecast and narrowed the range for its
organic 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
Organic growth capital expenditures((c)) $1.1 billion to $1.2 billion
Maintenance capital expenditures ~$60 million
Distribution growth rate 12 percent to 15 percent
((a) )Guidance includes impairment charges of $89 million related to an
equity method investment and $130 million related to goodwill established in
connection with the MarkWest merger.
((b)) Non-GAAP measure calculated before the distribution to preferred units
and excluding the impairment charges related to an equity method investment and
goodwill. See reconciliation below.
((c)) Excludes non-affiliated JV members' share of capital expenditures
For 2017, MPLX expects a 12 to 15 percent distribution growth rate, and
forecasts a double-digit distribution growth rate for 2018.
MPLX's preliminary 2017 forecast for organic growth capital expenditures is $1.2
billion to $1.6 billion and maintenance capital is approximately $100 million.
Projects in this forecast include the Utica infrastructure build-out, a butane
cavern in Robinson, Illinois, and a tank farm expansion in Texas City, Texas.
Also, the partnership expects to complete 400 million cubic feet per day of
additional natural gas processing capacity, 60,000 barrels per day of additional
ethane-fractionation capacity and 60,000 barrels per day of additional propane-
plus fractionation capacity to support producers' ongoing development of rich-
gas acreage in the Marcellus and Utica shales.
Segment Results
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Three Months Nine Months
Ended Ended
Sept. 30 Sept. 30
(In millions) 2016 2015 2016 2015
--------- -------- --------- --------
L&S segment operating income attributable
to MPLX LP((a)) $ 124 $ 81 $ 335 $ 251
G&P segment operating income attributable
to MPLX LP((a)) 293 - 821 -
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((a) )See reconciliation below for details.
Logistics and Storage (L&S) segment operating income increased for the third
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, and higher average tariffs received on the volumes of crude oil and
products shipped.
Gathering and Processing (G&P) segment operating income increased for the third
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.
See reconciliation below for detail on items not allocable to or controllable by
any individual segment, which are therefore excluded 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 nine
months ended Sept. 30, 2016, and 2015. MPLX believes this Sept. 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 Nine Months Ended
Sept. 30 Sept. 30
(In millions) 2016((a)) 2015((b)) 2016((a)) 2015((b))
------------- ------------- ------------- ------------
Segment operating
income attributable to
G&P $ 293 $ 266 $ 821 $ 754
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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 third quarter of
2016 compared with the pro forma results for the same period in 2015 and for the
nine months ended Sept. 30, 2016, compared with the same period of 2015. These
increases were primarily due to higher volumes as well as increased natural gas
and NGL prices.
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Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
G&P Pro Forma % %
Operating Statistics 2016 2015 Change 2016 2015 Change
--------- --------- -------- --------- --------- -------
Gathering Throughput
(mmcf/d)
Marcellus operations 946 875 8 % 922 849 9 %
Utica operations 916 763 20 % 936 617 52 %
Southwest operations 1,444 1,414 2 % 1,455 1,419 3 %
--------- --------- -------- --------- --------- -------
Total gathering
throughput 3,306 3,052 8 % 3,313 2,885 15 %
Natural Gas
Processed (mmcf/d)
Marcellus operations 3,273 2,865 14 % 3,166 2,868 10 %
Utica operations 1,050 929 13 % 1,068 816 31 %
Southwest operations 1,339 1,089 23 % 1,209 1,074 13 %
Southern Appalachian
operations 244 275 (11 )% 248 273 (9 )%
--------- --------- -------- --------- --------- -------
Total natural gas
processed 5,906 5,158 15 % 5,691 5,031 13 %
C2 + NGLs
Fractionated (mbpd)
Marcellus operations 274 198 38 % 254 191 33 %
Utica operations 41 42 (2 )% 43 37 16 %
Southwest operations 19 19 - % 17 17 - %
Southern Appalachian
operations 14 16 (13 )% 16 15 7 %
--------- --------- -------- --------- --------- -------
Total C2 + NGLs
fractionated 348 275 27 % 330 260 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 #
43396866) or by visiting MPLX's website at http://www.mplx.com and clicking on
the "2016 Third-Quarter Financial Results" link in the "News & Headlines"
section. Replays of the conference call will be available on MPLX's website
through Wednesday, Nov. 9. 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 5,500 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
Doug Wendt (419) 421-2423
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 measures most directly
comparable to adjusted EBITDA and DCF are 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)
amortization of deferred financing costs; (iv) net interest and other financial
costs; (v) non-cash equity-based compensation; (vi) impairment expense; (vii)
income/loss from equity investments; (viii) distributions from unconsolidated
subsidiaries; (ix) unrealized gain/loss on commodity hedges; and (x) 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) gain on disposal of assets; (iv)
equity investment maintenance capital expenditures; (v) current portion of
income taxes; (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.
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, including proposed strategic initiatives. 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 time, costs and ability to obtain
regulatory or other approvals and consents and otherwise consummate the
strategic initiatives discussed herein and other proposed transactions; the
satisfaction or waiver of conditions in the agreements governing the strategic
initiatives discussed herein and other proposed transactions; our ability to
achieve the strategic and other objectives related to the strategic initiatives
discussed herein and other proposed transactions; adverse changes in laws
including with respect to tax and regulatory matters; inability to agree with
respect to the timing of and value attributed to assets identified for dropdown;
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; changes to the expected construction costs and timing of projects;
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;
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: the time, costs and ability to obtain regulatory or other
approvals and consents and otherwise consummate the strategic initiatives
discussed herein; the satisfaction or waiver of conditions in the agreements
governing the strategic initiatives discussed herein; our ability to achieve the
strategic and other objectives related to the strategic initiatives discussed
herein; adverse changes in laws including with respect to tax and regulatory
matters; inability to agree with the MPLX conflicts committee with respect to
the timing of and value attributed to assets identified for dropdown; risks
described above relating to MPLX and the MPLX/MarkWest merger; changes to the
expected construction costs and timing of 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 Nine Months Ended
Sept. 30 Sept. 30
(In millions, except per unit
data) 2016 2015((a)) 2016 2015((a))
---------- ------------- ----------- ------------
Revenues and other income:
Service revenue $ 250 $ 18 $ 712 $ 50
Service revenue - related
parties 153 152 448 446
Rental income 77 - 218 -
Rental income - related
parties 29 25 84 75
Product sales 157 - 394 -
Product sales - related
parties 2 - 8 -
Gain on sale of assets 1 - 1 -
Income (loss) from equity
method investments 6 - (72 ) -
Other income 2 1 5 4
Other income - related
parties 26 18 78 53
---------- ------------- ----------- ------------
Total revenues and other
income 703 214 1,876 628
Costs and expenses:
Cost of revenues (excludes
items below) 90 59 263 147
Purchased product costs 117 - 310 -
Rental cost of sales 11 - 39 -
Purchases - related parties 84 43 238 123
Depreciation and amortization 138 19 407 58
Impairment expense - - 130 -
General and administrative
expenses 46 25 147 68
Other taxes 10 - 32 8
---------- ------------- ----------- ------------
Total costs and expenses 496 146 1,566 404
---------- ------------- ----------- ------------
Income from operations 207 68 310 224
Related party interest and
other financial costs - - 1 -
Interest expense, net of
amounts capitalized 51 4 158 15
Other financial costs 13 1 37 2
---------- ------------- ----------- ------------
Income before income taxes 143 63 114 207
Benefit for income taxes - - (12 ) -
---------- ------------- ----------- ------------
Net income 143 63 126 207
Less: Net income attributable
to noncontrolling interests 2 - 3 1
Net income attributable to
Predecessor - 22 23 68
---------- ------------- ----------- ------------
Net income attributable to
MPLX LP 141 41 100 138
Less: Preferred unit
distributions 16 - 25 -
Less: General partner's
interest in net income
attributable to MPLX LP 51 8 136 19
---------- ------------- ----------- ------------
Limited partners' interest in
net income (loss)
attributable to MPLX LP $ 74 $ 33 $ (61 ) $ 119
---------- ------------- ----------- ------------
Per Unit Data
Net income (loss)
attributable to MPLX LP per
limited partner unit:
Common - basic $ 0.22 $ 0.41 $ (0.19 ) $ 1.42
Common - diluted 0.21 0.41 (0.19 ) 1.42
Subordinated - basic and
diluted - - - 1.36
Weighted average limited
partner units outstanding:
Common units - basic 341 80 324 56
Common units - diluted 346 80 324 56
Subordinated units - basic
and diluted - - - 25
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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 income attributable to MPLX LP.
-------------------------------------------------------------------------------
Select Financial Statistics
(unaudited)
Three Months Nine Months Ended
Ended Sept. 30
Sept. 30
(In millions, except ratio data) 2016 2015 2016 2015
---------- --------- ----------- ---------
Distribution declared:
Common units (LP) - public $ 135 $ 11 $ 393 $ 31
Common units - MPC 44 27 114 75
General partner units (GP) - MPC 5 1 13 3
Incentive distribution rights - MPC 49 8 135 17
---------- --------- ----------- ---------
Total GP and LP distribution
declared 233 47 655 126
---------- --------- ----------- ---------
Redeemable preferred units((a)) 16 - 25 -
---------- --------- ----------- ---------
Total distribution declared $ 249 $ 47 $ 680 $ 126
---------- --------- ----------- ---------
Distribution coverage ratio((b)) 1.22x 1.15x 1.22x 1.37x
Cash Flow Data
Net cash flow provided by (used in):
Operating activities $ 339 $ 85 $ 932 $ 258
Investing activities (323 ) (82 ) (849 ) (191 )
Financing activities 157 (43 ) 82 (4 )
Other Financial Data
Adjusted EBITDA attributable to MPLX
LP((c)) $ 375 $ 66 $ 1,028 $ 200
DCF attributable to GP and LP
unitholders((c)) 285 54 797 172
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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)
Sept. Dec.
(In millions, except ratio data) 30 2016 31 2015
--------------- -------------
Total assets $ 16,415 $ 16,104
Total debt 4,412 5,264
Redeemable preferred units 1,000 -
Total equity 10,154 9,667
Consolidated total debt to LTM pro forma adjusted
EBITDA((a)) 3.5x 4.5x
Partnership units outstanding:
General partner units 7 7
Class B units((b)) 4 8
MPC-held common units 87 57
Public common units 262 240
-------------------------------------------------------------------------------
((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 $439 million and $472 million of unamortized discount and
approximately $7 million and $8 million of unamortized debt issuance costs as of
September 30, 2016 and December 31, 2015, respectively.
((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 $6.20 in cash for each Class B unit in two equal installments, the
first of which occurred on July 1, 2016, and the second of which will occur July
1, 2017. Class B units do not receive distributions.
-------------------------------------------------------------------------------
Operating
Statistics
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
% %
2016 2015 Change 2016 2015 Change
----------- ----------- -------- ----------- ----------- -------
Logistics and
Storage
Pipeline
throughput
(thousands of
barrels per
day)
Crude oil
pipelines 1,180 1,135 4 % 1,090 1,091 - %
Product
pipelines 907 896 1 % 909 907 - %
----------- ----------- -------- ----------- ----------- -------
Total pipeline
throughput 2,087 2,031 3 % 1,999 1,998 - %
Average tariff
rates ($ per
barrel)
Crude oil
pipelines $ 0.64 $ 0.66 (3 )% $ 0.67 $ 0.66 2 %
Product
pipelines 0.70 0.65 8 % 0.68 0.64 6 %
Total 0.67 0.66 2 % 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 946 922
Utica
operations 916 936
Southwest
operations 1,444 1,455
----------- -----------
Total
gathering
throughput 3,306 3,313
Natural gas
processed
(mmcf/d)
Marcellus
operations 3,273 3,166
Utica
operations 1,050 1,068
Southwest
operations 1,339 1,209
Southern
Appalachian
operations 244 248
----------- -----------
Total natural
gas processed 5,906 5,691
C2 + NGLs
fractionated
(mbpd)
Marcellus
operations 274 254
Utica
operations 41 43
Southwest
operations 19 17
Southern
Appalachian
operations 14 16
----------- -----------
Total C2 +
NGLs
fractionated 348 330
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Reconciliation of Segment Operating
Income Attributable to MPLX LP to
Income From Operations (unaudited)
Three Months Nine Months
Ended Ended
Sept. 30 Sept. 30
(In millions) 2016 2015 2016 2015
---------- --------- ---------- --------
L&S segment operating income
attributable to MPLX LP $ 124 $ 81 $ 335 $ 251
G&P segment operating income
attributable to MPLX LP((a)) 293 - 821 -
Segment portion attributable to equity
affiliates (41 ) - (130 ) -
Segment portion attributable to
Predecessor((b)) - 31 34 99
Income (loss) from equity method
investments 6 - (72 ) -
Other income - related parties 11 - 29 -
Unrealized derivative loss (2 ) - (23 ) -
Depreciation and amortization (138 ) (19 ) (407 ) (58 )
Impairment expense - - (130 ) -
General and administrative expenses (46 ) (25 ) (147 ) (68 )
---------- --------- ---------- --------
Income from operations $ 207 $ 68 $ 310 $ 224
---------- --------- ---------- --------
-------------------------------------------------------------------------------
((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 Nine Months Ended
Sept. 30 Sept. 30
(In millions) 2016 2015 2016 2015
---------- ---------- ---------- ---------
L&S segment operating income
attributable to MPLX LP $ 124 $ 81 $ 335 $ 251
G&P segment operating income
attributable to MPLX LP 293 - 821 -
Pro forma G&P segment operating
income attributable to MPLX LP - 266 - 754
Segment portion attributable to
equity affiliates (41 ) 38 (130 ) 122
Segment portion attributable to
Predecessor((a)) - - 34 -
Income (loss) from equity method
investments 6 6 (72 ) 4
Other income (loss) - related
parties 11 (2 ) 29 (2 )
Unrealized derivative (loss) gain (2 ) 7 (23 ) (9 )
Depreciation and amortization (138 ) (148 ) (407 ) (427 )
Impairment expense - - (130 ) (26 )
General and administrative expenses (46 ) (55 ) (147 ) (165 )
---------- ---------- ---------- ---------
Pro forma income from operations $ 207 $ 193 $ 310 $ 502
---------- ---------- ---------- ---------
-------------------------------------------------------------------------------
((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 Nine Months Ended
Ended Sept. 30
Sept. 30
(In millions) 2016 2015 2016 2015
--------- -------- ----------- --------
Net income $ 143 $ 63 $ 126 $ 207
Plus: Depreciation and amortization 138 19 407 58
Benefit for income taxes - - (12 ) -
Amortization of deferred financing
costs 11 - 34 -
Net interest and other financial costs 53 5 162 17
Non-cash equity-based compensation 3 2 9 3
Impairment expense - - 130 -
(Income) loss from equity investments (6 ) - 72 -
Distributions from unconsolidated
subsidiaries 33 - 111 -
Unrealized loss on commodity hedges 2 - 23 -
Acquisition costs - 4 (1 ) 4
--------- -------- ----------- --------
Adjusted EBITDA 377 93 1,061 289
Less: Adjusted EBITDA attributable to
noncontrolling
interests 2 - 3 1
Adjusted EBITDA attributable to
Predecessor((a)) - 27 30 88
--------- -------- ----------- --------
Adjusted EBITDA attributable to MPLX LP 375 66 1,028 200
Plus: Current period cash
received/deferred revenue for
committed volume deficiencies((b)) 10 11 31 33
Less: Net interest and other financial
costs 53 5 162 17
Gain on disposal of assets 1 - 1 -
Equity investment maintenance capital
expenditures - - 1 -
Current portion of income taxes 4 - 4 -
Maintenance capital expenditures paid 20 8 48 16
Volume deficiency credits
recognized((c)) 9 10 25 29
Other (3 ) - (3 ) -
Adjustments attributable to
Predecessor((a)) - - (1 ) (1 )
--------- -------- ----------- --------
DCF 301 54 822 172
--------- -------- ----------- --------
Less: Preferred unit distributions 16 - 25 -
--------- -------- ----------- --------
DCF attributable to GP and LP
unitholders $ 285 $ 54 $ 797 $ 172
--------- -------- ----------- --------
-------------------------------------------------------------------------------
((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
Ended Nine Months Ended
Sept. 30 Sept. 30
(In millions) 2016 2015 2016 2015
--------- -------- ----------- --------
Net cash provided by operating
activities $ 339 $ 85 $ 932 $ 258
Less: Changes in working capital items 28 1 54 (8 )
All other, net (3 ) 3 18 2
Plus: Non-cash equity-based
compensation 3 2 9 3
Net gain on disposal of assets 1 - 1 -
Net interest and other financial costs 53 5 162 17
Current income taxes expense 3 - 4 -
Asset retirement expenditures 1 1 3 1
Unrealized loss on commodity hedges 2 - 23 -
Acquisition costs - 4 (1 ) 4
--------- -------- ----------- --------
Adjusted EBITDA 377 93 1,061 289
Less: Adjusted EBITDA attributable to
noncontrolling interests 2 - 3 1
Adjusted EBITDA attributable to
Predecessor((a)) - 27 30 88
--------- -------- ----------- --------
Adjusted EBITDA attributable to MPLX LP 375 66 1,028 200
Plus: Current period cash
received/deferred revenue for committed
volume deficiencies((b)) 10 11 31 33
Less: Net interest and other financial
costs 53 5 162 17
Gain on disposal of assets 1 - 1 -
Equity investment maintenance capital
expenditures - - 1 -
Current portion of income taxes 4 - 4 -
Maintenance capital expenditures paid 20 8 48 16
Volume deficiency credits
recognized((c)) 9 10 25 29
Other (3 ) - (3 ) -
Adjustments attributable to
Predecessor((a)) - - (1 ) (1 )
--------- -------- ----------- --------
DCF 301 54 822 172
--------- -------- ----------- --------
Less: Preferred unit distributions 16 - 25 -
--------- -------- ----------- --------
DCF attributable to GP and LP
unitholders $ 285 $ 54 $ 797 $ 172
--------- -------- ----------- --------
---------------------------------------------------------- --------------------
((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 Nine Months
Ended Ended
Sept. 30 Sept. 30
(In millions) 2016 2015 2016 2015
--------- -------- --------- --------
Capital Expenditures((a)):
Maintenance $ 17 $ 11 $ 48 $ 19
Growth 292 55 825 130
--------- -------- --------- --------
Total capital expenditures 309 66 873 149
Less: Increase (decrease) in capital
accruals 3 6 (4 ) 19
Asset retirement expenditures 1 1 3 1
--------- -------- --------- --------
Additions to property, plant and
equipment 305 59 874 129
Capital expenditures of unconsolidated
subsidiaries((b)) 34 - 94 -
--------- -------- --------- --------
Total gross capital expenditures 339 59 968 129
Less: Joint venture partner contributions 16 - 45 -
--------- -------- --------- --------
Total gross capital expenditures, net 323 59 923 129
Less: Maintenance capital 17 11 48 19
--------- -------- --------- --------
Total growth capital expenditures $ 306 $ 48 $ 875 $ 110
--------- -------- --------- --------
-------------------------------------------------------------------------------
((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 maintenance capital expenditures 2 2
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
Datum: 27.10.2016 - 12:45 Uhr
Sprache: Deutsch
News-ID 503299
Anzahl Zeichen: 65665
contact information:
Town:
FINDLAY
Kategorie:
Business News
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"MPLX LP Reports Third-Quarter 2016 Financial Results"
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