MPLX LP Reports Fourth-Quarter and Full-Year 2016 Financial Results
(Thomson Reuters ONE) -
* Reported fourth-quarter net income of $133 million and adjusted EBITDA
of $391 million; reported full-year net income of $233 million and adjusted
EBITDA of $1.4 billion
* Reported fourth-quarter net cash from operating activities of $356 million
and distributable cash flow of $318 million
* Declared distribution of $0.5200 per common unit, a 4 percent increase over
fourth-quarter 2015; delivered 13 percent distribution growth in 2016 with a
full-year coverage ratio of 1.23
* Affirmed 2017 distribution growth guidance of 12 to 15 percent and forecast
double-digit distribution growth rate for 2018
* Executing strategic actions with goal of providing increased visibility to
distribution growth and lowering cost of capital
FINDLAY, Ohio, Feb. 1, 2017 - MPLX LP (NYSE: MPLX) today reported fourth-quarter
2016 net income attributable to MPLX of $133 million and full-year 2016 net
income attributable to MPLX of $233 million, concluding its first full year with
MarkWest.
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Three Months Ended Year Ended
Dec. 31 Dec. 31
(In millions, except per
unit and ratio data) 2016 2015((a)) 2016 2015((a))
------------ ------------- ------------ ------------
Net income attributable to
MPLX((b)) $ 133 $ 18 $ 233 $ 156
Adjusted EBITDA
attributable to MPLX((c)) 391 298 1,419 498
Net cash provided by
operating activities 356 82 1,288 340
Distributable cash flow
("DCF")((c)) 318 227 1,140 399
Distribution per common
unit((d)) 0.5200 0.5000 2.0500 1.8200
Distribution coverage
ratio((e)) 1.25x 1.20x 1.23x 1.27x
Growth capital
expenditures((f)) 326 161 1,201 271
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(a) MarkWest operations excluded from results and measures provided prior to
the Dec. 4, 2015, merger.
(b) The year ended Dec. 31, 2016, includes 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 capital expenditures for MarkWest
acquisition. See description below.
"In 2016, MPLX delivered strong results in all four quarters," said Gary R.
Heminger, MPLX chairman and chief executive officer. "We achieved our targeted
distribution growth rate, reduced our financial leverage while maintaining
strong distribution coverage, and optimized capital to deliver projects on a
just-in-time basis to meet producer-customer needs."
Additionally, on Jan. 3, MPLX's sponsor, Marathon Petroleum Corporation (NYSE:
MPC), announced the significant acceleration of dropdowns to MPLX. MPLX now
expects to acquire assets with approximately $1.4 billion of annual earnings
before interest, taxes, depreciation and amortization (EBITDA) from MPC in
2017, including $250 million by the end of the first quarter. The partnership
expects to finance the dropdown transactions with debt and equity in
approximately equal proportions, with the equity financing to be funded through
MPLX LP units issued to MPC.
In conjunction with completion of the dropdowns, MPLX also expects to exchange
newly issued common units for MPC's economic interests in the general partner,
including incentive distribution rights.
These actions are expected to reduce MPLX's cost of capital and enhance its
long-term distribution growth capabilities. All transactions are subject to
requisite approvals, market and other conditions, including tax and other
regulatory clearances.
"Following the dropdowns, the partnership's size and scale would be among the
largest in the industry with nearly equal contributions from the Logistics and
Storage and Gathering and Processing segments," Heminger said. "With a
simplified structure, full alignment with our sponsor and additional visibility
to an attractive distribution growth rate, we are confident about MPLX's
compelling value proposition to our investors."
The Gathering and Processing (G&P) segment continues to deliver strong volume
growth and provides exceptional organic growth opportunities. In 2016, processed
gas volumes exceeded 5.7 billion cubic feet per day, a 13 percent increase over
the full-year 2015 and a new record for the partnership.
As MPLX plans for continued growth, the partnership announced that it recently
amended and extended agreements with one of its largest customers, Range
Resources Corporation (NYSE: RRC). To support the continued long-term
development of Range's substantial rich-gas acreage,
MPLX expects to construct an additional processing facility at the Houston
complex, in Pennsylvania, in early 2018, and commission a new processing
facility at the Harmon Creek complex, in Pennsylvania, by mid- to late-2018.
The combination of projects supporting Range Resources and other previously
announced organic growth capital expenditures are expected to result in an
additional 1.2 billion cubic feet per day of processing capacity and 140,000
barrels per day of fractionation capacity by the end of 2018. This additional
capacity will further strengthen our position as the largest processor and
fractionator in the prolific Marcellus and Utica shales.
"With an investment-grade credit profile, an attractive portfolio of organic
growth projects, and potential for an improved cost of capital, we expect to
deliver solid distribution growth, maintain a strong coverage ratio, and be
competitively positioned for the long term," Heminger said.
Operational Highlights
* Processed volumes in the Marcellus and Utica of 4.3 billion cubic feet per
day, a 14 percent increase for 2016 versus full-year 2015.
* Fractionated volumes in the Marcellus and Utica of 302,000 barrels per day,
a 29 percent increase for 2016 versus full-year 2015.
* Processed volumes in the Southwest of 1.2 billion cubic feet per day, a 14
percent increase for 2016 versus full-year 2015.
* Achieved full utilization during the fourth quarter at the 1.2 billion cubic
feet per day Sherwood complex, the largest facility of its kind in the
Northeast.
* Commenced start-up of third fractionation train at Hopedale complex in Ohio,
to support growing natural gas liquids (NGL) production from producers in
the Marcellus and Utica shales.
* Commenced operations of the Cornerstone Pipeline and completed the
supporting Hopedale connection. The completion of the Hopedale connection
and the reversal of MPC's Robinson Illinois Ohio (RIO) Pipeline in December
now allow for the movement of natural gasoline from Hopedale to MPC's
Robinson refinery.
Financial Position and Liquidity
As of Dec. 31, MPLX had $234 million in cash, $2 billion available through its
bank revolving credit facility and $500 million available through its credit
facility with MPC. During the fourth quarter, MPLX opportunistically issued 8.6
million new common units through its at-the-market program and received net
proceeds of approximately $277 million. The partnership's $2.7 billion of
available liquidity and its access to the capital markets 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 3.4 times at Dec. 31. MPLX remains committed to
maintaining an investment-grade credit profile.
Forecast
Based on current estimates for operational volumes and commodity prices, our
2017 forecast excluding acquisitions and dropdowns is:
Net income $500 million to $650 million
Adjusted EBITDA((a)) $1.5 billion to $1.65 billion
Net cash provided by operating activities $1.25 billion to $1.4 billion
Distributable cash flow (DCF)((a)) $1.15 billion to $1.3 billion
Organic growth capital expenditures((b)) $1.4 billion to $1.7 billion
Maintenance capital expenditures ~$100 million
Distribution growth rate 12 percent to 15 percent
(a) Non-GAAP measure calculated before the distribution to preferred units.
See reconciliation below.
(b) Guidance excludes expenditures incurred related to acquisitions and non-
affiliated JV members' share of capital expenditures.
The forecast for organic growth capital expenditures is $1.4 billion to $1.7
billion, an increase from our preliminary guidance in October 2016, and now
includes capital to support additional development for Range Resources in the
Northeast. Maintenance capital remains forecast at approximately $100 million.
Approximately $1 billion to $1.3 billion of these growth investments are
expected to support producer customers in the G&P segment. During 2017, the
partnership expects to complete 400 million cubic feet per day of additional
natural gas processing capacity and 120,000 barrels per day of additional
fractionation capacity, primarily in the Marcellus shale.
The remaining $400 million is planned for the Logistics and Storage (L&S)
segment for the development of various crude oil and refined petroleum products
infrastructure projects, including a build-out of Utica Shale infrastructure in
connection with the recently completed Cornerstone Pipeline, a butane cavern in
Robinson, Illinois, and a tank farm expansion in Texas City, Texas.
Segment Results
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Segment operating income attributable
to MPLX LP
Three Months
Ended Year Ended
Dec. 31 Dec. 31
(In millions) 2016 2015 2016 2015
--------- -------- ----------- --------
L&S((a)) $ 118 $ 71 $ 453 $ 322
G&P((a)) 311 76 1,132 76
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(a) See reconciliation below for details.
L&S segment operating income for the fourth quarter of 2016 was $118 million,
compared with $71 million for the same period in 2015. For the full-year 2016,
L&S segment operating income was $453 million, compared with $322 million for
the full-year 2015. The increase was primarily due to the acquisition of the
inland marine business on March 31, 2016 and higher average pipeline tariffs.
The fourth quarter increase was also due to increased throughput on crude oil
lines and an increase in the amount of deferred revenue recognized from volume
deficiency credits.
G&P segment operating income increased for the fourth quarter and full-year
2016, compared with the same periods 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 year ended Dec.
31, 2016, and 2015. MPLX believes this 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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Year Ended
Dec. 31
$ %
(In millions) 2016((a)) 2015((b)) Change Change
------------- ------------- -------- -------
Segment operating income
attributable to G&P $ 1,132 $ 1,011 $ 121 12 %
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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 year ended 2016
compared with the pro forma results for the same period in 2015 by $121 million.
The increase was primarily due to higher fee revenues partially offset by
increased operating costs due to growth in our gathering, processing and
fractionation operations.
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Three Months Ended Year Ended
Dec. 31 Dec. 31
G&P Pro Forma % %
Operating Statistics 2016 2015 Change 2016 2015 Change
--------- --------- -------- --------- --------- -------
Gathering Throughput
(mmcf/d)
Marcellus operations 874 876 - % 910 858 6 %
Utica operations 922 819 13 % 932 673 38 %
Southwest operations 1,368 1,395 (2 )% 1,433 1,413 1 %
--------- --------- -------- --------- --------- -------
Total gathering
throughput 3,164 3,090 2 % 3,275 2,944 11 %
Natural Gas
Processed (mmcf/d)
Marcellus operations 3,341 2,841 18 % 3,210 2,861 12 %
Utica operations 1,084 1,080 - % 1,072 883 21 %
Southwest operations 1,277 1,086 18 % 1,226 1,077 14 %
Southern Appalachian
operations 268 250 7 % 253 267 (5 )%
--------- --------- -------- --------- --------- -------
Total natural gas
processed 5,970 5,257 14 % 5,761 5,088 13 %
C2 + NGLs
Fractionated (mbpd)
Marcellus operations 276 204 35 % 260 194 34 %
Utica operations 38 48 (21 )% 42 40 5 %
Southwest operations 19 20 (5 )% 18 18 - %
Southern Appalachian
operations 13 13 - % 15 15 - %
--------- --------- -------- --------- --------- -------
Total C2 + NGLs
fractionated 346 285 21 % 335 267 25 %
--------------------------------------------------- --------- -----------------
Conference Call
At 11 a.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 1-800-446-1671 (confirmation number
44084608) or by visiting MPLX's website at http://www.mplx.com and clicking on
the "2016 Fourth-Quarter and Full-Year Financial Results" link in the "News &
Headlines" section. Replays of the conference call will be available on MPLX's
website through Wednesday, Feb. 15. 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; 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 5,600 miles of gas
gathering and NGL pipelines, 54 gas processing plants, 14 NGL fractionation
facilities and two condensate stabilization facilities.
Investor Relations Contacts:
Lisa D. Wilson (419) 421-2071
Doug Wendt (419) 421-2423
Denice Myers (419) 421-2965
Media Contacts:
Chuck Rice (419) 421-2521
Katie Merx (419) 672-5159
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) non-cash equity-based
compensation; (v) impairment expense; (vi) net interest and other financial
costs; (vii) loss (income) from equity investments; (viii) distributions from
unconsolidated subsidiaries; (ix) unrealized derivative losses (gains); and (x)
acquisition costs. In general, we define DCF as adjusted EBITDA adjusted for (i)
deferred revenue impacts; (ii) net interest and other financial costs; (iii)
maintenance capital expenditures; and (iv) other non-cash items.
The Partnership makes a distinction between realized or unrealized gains and
losses on derivatives. During the period when a derivative contract is
outstanding, we record changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is settled, we
reverse the previously recorded unrealized gain or loss and record the realized
gain or loss of the contract.
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.
The financial and operational results of MarkWest are included in the
Partnership's results from December 4, 2015, the date of the MarkWest merger, in
accordance with GAAP. The Partnership distributes and, prior to the MarkWest
merger, MarkWest distributed, all or a portion of the DCF generated in any given
quarter to unitholders in the subsequent quarter. MarkWest had made a
distribution for the third quarter of 2015 prior to the MarkWest merger.
However, the DCF generated by MarkWest for the period from Oct. 1, 2015, through
Dec. 3, 2015, had not been distributed to MarkWest unitholders as of the date of
the MarkWest merger. By operation of the MarkWest merger, the Partnership
acquired such undistributed cash, along with all other assets of MarkWest, with
the intent and obligation to distribute such cash to the Partnership's
unitholders as part of the Partnership's fourth-quarter 2015 distribution. In
order to effectively include the amount of adjusted EBITDA and DCF generated by
MarkWest during the fourth quarter of 2015 prior to the date of the MarkWest
merger, and effectively include such previously undistributed cash, we have made
adjustments labeled "MarkWest's pre-merger EBITDA" and "MarkWest undistributed
DCF" in our reconciliations of adjusted EBITDA and DCF to reported net income.
MarkWest's pre-merger EBITDA represents adjusted EBITDA generated by MarkWest
for the period from Oct. 1, 2015, through Dec. 3, 2015. MarkWest undistributed
DCF represents the net adjustments made to MarkWest's pre-merger EBITDA in order
to arrive at the DCF generated by MarkWest for the period from Oct. 1, 2015,
through Dec. 3, 2015.
The amount of adjusted EBITDA and DCF generated by MarkWest for the period of
Oct. 1, 2015, through Dec. 3, 2015, was considered by the Board of Directors of
the Partnership's general partner in approving the Partnership's cash
distribution for the fourth quarter of 2015. In addition, we believe the
inclusion of the DCF generated by MarkWest for the period of Oct. 1, 2015,
through Dec. 3, 2015, allows for a more meaningful calculation of the
Partnership's ratio of DCF generated to distributions declared for the fourth
quarter of 2015. We believe the inclusion of these adjustments presents an
appropriate basis for analyzing the complete operating results of the
Partnership and MarkWest, on a combined basis, for the year ended Dec. 31, 2015.
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; 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 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; 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, and other
risks described above with respect to MPLX; 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 in MPC's Form 10-K could also
have material adverse effects on forward-looking statements. Copies of MPLX's
Form 10-K are available on the SEC website, MPLX's website at http://ir.mplx.com
or by contacting MPLX's Investor Relations office. Copies of MPC's Form 10-K are
available on the SEC website, MPC's website at http://ir.marathonpetroleum.com
or by contacting MPC's Investor Relations office.
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Results of Operations
(unaudited)
Three Months Ended Year Ended
Dec. 31 Dec. 31
(In millions, except per unit
data) 2016 2015((a)) 2016 2015((a))
---------- ------------- ----------- ------------
Revenues and other income:
Service revenue $ 246 $ 80 $ 958 $ 130
Service revenue - related
parties 155 147 603 593
Rental income 80 20 298 20
Rental income - related
parties 30 26 114 101
Product sales 178 36 572 36
Product sales - related
parties 3 1 11 1
Gain on sale of assets - - 1 -
(Loss) income from equity
method investments (2 ) 3 (74 ) 3
Other income 1 2 6 6
Other income - related
parties 23 18 101 71
---------- ------------- ----------- ------------
Total revenues and other
income 714 333 2,590 961
Costs and expenses:
Cost of revenues (excludes
items below) 91 78 354 225
Purchased product costs 138 20 448 20
Rental cost of sales 14 5 53 5
Purchases - related parties 78 43 316 166
Depreciation and amortization 139 58 546 116
Impairment expense - - 130 -
General and administrative
expenses 46 50 193 118
Other taxes 11 5 43 13
---------- ------------- ----------- ------------
Total costs and expenses 517 259 2,083 663
---------- ------------- ----------- ------------
Income from operations 197 74 507 298
Related party interest and
other financial costs - - 1 -
Interest expense, net of
amounts capitalized 52 20 210 35
Other financial costs 13 11 50 13
---------- ------------- ----------- ------------
Income before income taxes 132 43 246 250
Provision (benefit) for
income taxes - 1 (12 ) 1
---------- ------------- ----------- ------------
Net income 132 42 258 249
Less: Net (loss) income
attributable to
noncontrolling interests (1 ) - 2 1
Less: Net income attributable
to Predecessor - 24 23 92
---------- ------------- ----------- ------------
Net income attributable to
MPLX LP 133 18 233 156
Less: Preferred unit
distributions 16 - 41 -
Less: General partner's
interest in net income
attributable to MPLX LP 55 38 191 57
---------- ------------- ----------- ------------
Limited partners' interest in
net income (loss)
attributable to MPLX LP $ 62 $ (20 ) $ 1 $ 99
---------- ------------- ----------- ------------
Per Unit Data
Net income (loss)
attributable to MPLX LP per
limited partner unit:
Common - basic $ 0.17 $ (0.14 ) $ - $ 1.23
Common - diluted 0.17 (0.14 ) - 1.22
Subordinated - basic and
diluted - - - 0.11
Weighted average limited
partner units outstanding:
Common units - basic 351 146 331 79
Common units - diluted 356 146 338 80
Subordinated units - basic
and diluted - - - 18
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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 Ended Year Ended
Dec. 31 Dec. 31
(In millions, except ratio 2016 2015 2016 2015
data)
---------- ------------ ------------ -----------
Distribution declared
Common units (LP) - public $ 140 $ 120 $ 533 $ 151
Common units - MPC 45 29 159 104
General partner units (GP) -
MPC 5 3 18 6
Incentive distribution rights
- MPC 52 37 187 54
---------- ------------ ------------ -----------
Total GP and LP distribution
declared 242 189 897 315
Redeemable preferred
units((a)) 16 - 41 -
---------- ------------ ------------ -----------
Total distribution declared $ 258 $ 189 $ 938 $ 315
---------- ------------ ------------ -----------
Distribution coverage
ratio((b)) 1.25x 1.20x 1.23x 1.27x
Cash Flow Data
Net cash flow provided by
(used in):
Operating activities $ 356 $ 82 $ 1,288 $ 340
Investing activities (363 ) (1,408 ) (1,212 ) (1,599 )
Financing activities 33 1,279 115 1,275
Other Financial Data
Adjusted EBITDA attributable
to MPLX LP((c)) $ 391 $ 298 $ 1,419 $ 498
DCF attributable to GP and LP
unitholders((c)) 302 227 1,099 399
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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.
-------------------------------------------------------------------------------
Select Balance Sheet Data (unaudited)
Dec. Dec.
(In millions, except ratio data) 31 2016 31 2015
-------------- -------------
Cash and cash equivalents $ 234 $ 43
Total assets 16,646 16,104
Total debt 4,423 5,264
Redeemable preferred units 1,000 -
Total equity 10,319 9,667
Consolidated total debt to LTM pro forma adjusted
EBITDA((a)) 3.4x 4.5x
Partnership units outstanding:
General partner units 7 7
Class B units((b)) 4 8
MPC-held common units 86 57
Public common units 271 240
-------------------------------------------------------------------------------
(a) Calculated using face value total debt and LTM adjusted EBITDA, which is
pro forma for acquisitions and includes NCI. Face value total debt includes
approximately $435 million and $480 million of unamortized discount and debt
issuance costs as of December 31, 2016 and 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 $6.20 in cash for each Class B unit in two equal installments, the
first of which occurred on July 1, 2016, and the second of which will occur July
1, 2017. Class B units do not receive distributions.
--------------------------------------------------------------------------------
Operating
Statistics
(unaudited)
Three Months Ended Year Ended
Dec. 31 Dec. 31
% %
2016 2015 Change 2016 2015 Change
----------- ----------- -------- ----------- ----------- -------
Logistics and
Storage
Pipeline
throughput
(thousands of
barrels per
day)
Crude oil
pipelines 1,081 972 11 % 1,088 1,061 3 %
Product
pipelines 907 934 (3 )% 908 914 (1 )%
----------- ----------- -------- ----------- ----------- -------
Total pipeline
throughput 1,988 1,906 4 % 1,996 1,975 1 %
Average tariff
rates ($ per
barrel)
Crude oil
pipelines $ 0.65 $ 0.65 - % $ 0.67 $ 0.66 2 %
Product
pipelines 0.71 0.68 4 % 0.69 0.65 6 %
Total pipelines 0.68 0.66 3 % 0.68 0.65 5 %
Barges at
period-end 204 205 - % 204 205 - %
Towboats at
period-end 18 18 - % 18 18 - %
Gathering and
Processing((a))
Gathering
throughput
(mmcf/d)
Marcellus
operations 874 889 (2 )% 910 889 2 %
Utica
operations 922 745 24 % 932 745 25 %
Southwest
operations 1,368 1,441 (5 )% 1,433 1,441 (1 )%
----------- ----------- -------- ----------- ----------- -------
Total gathering
throughput 3,164 3,075 3 % 3,275 3,075 7 %
Natural gas
processed
(mmcf/d)
Marcellus
operations 3,341 2,964 13 % 3,210 2,964 8 %
Utica
operations 1,084 1,136 (5 )% 1,072 1,136 (6 )%
Southwest
operations 1,277 1,125 14 % 1,226 1,125 9 %
Southern
Appalachian
operations 268 243 10 % 253 243 4 %
----------- ----------- -------- ----------- ----------- -------
Total natural
gas processed 5,970 5,468 9 % 5,761 5,468 5 %
C2 + NGLs
fractionated
(mbpd)
Marcellus
operations 276 220 25 % 260 220 18 %
Utica
operations 38 51 (25 )% 42 51 (18 )%
Southwest
operations 19 24 (21 )% 18 24 (25 )%
Southern
Appalachian
operations 13 12 8 % 15 12 25 %
----------- ----------- -------- ----------- ----------- -------
Total C2 + NGLs
fractionated 346 307 13 % 335 307 9 %
--------------------------------------------------------------------------------
(a) The three months and year ended Dec. 31, 2015, G&P segment operating
statistics are for the period of Dec. 4, 2015, through Dec. 31, 2015. The G&P
segment volumes reported are the average daily rate for the days of operation.
-------------------------------------------------------------------------------
Reconciliation of Segment Operating
Income Attributable to MPLX LP to
Income From Operations (unaudited)
Three Months Year Ended
Ended Dec. 31
Dec. 31
(In millions) 2016 2015 2016 2015
---------- --------- ----------- ---------
L&S segment operating income
attributable to MPLX LP $ 118 $ 71 $ 453 $ 322
G&P segment operating income
attributable to MPLX LP((a)) 311 76 1,132 76
Segment portion attributable to
equity affiliates (43 ) (8 ) (173 ) (8 )
Segment portion attributable to
Predecessor((b)) - 34 34 133
(Loss) income from equity method
investments (2 ) 3 (74 ) 3
Other income - related parties 11 2 40 2
Unrealized derivative (losses)
gains((c)) (13 ) 4 (36 ) 4
Depreciation and amortization (139 ) (58 ) (546 ) (116 )
Impairment expense - - (130 ) -
General and administrative expenses (46 ) (50 ) (193 ) (118 )
---------- --------- ----------- ---------
Income from operations $ 197 $ 74 $ 507 $ 298
---------- --------- ----------- ---------
-------------------------------------------------------------------------------
(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.
(c) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, we record changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is settled, we
reverse the previously recorded unrealized gain or loss and record the realized
gain or loss of the contract.
-------------------------------------------------------------------------------
Pro Forma Reconciliation to Income from Operations
(unaudited)((a)):
Twelve Months
Ended
December 31
(In millions) 2016 2015
----------- ---------
L&S segment operating income attributable to MPLX LP $ 453 $ 322
G&P segment operating income attributable to MPLX LP 1,132 76
Pro forma G&P segment operating income attributable to
MPLX LP - 935
Segment portion attributable to equity affiliates (173 ) (29 )
Segment portion attributable to Predecessor((b)) 34 182
(Loss) income from equity method investments (74 ) 8
Other income (loss) - related parties 40 (5 )
Unrealized derivative losses((c)) (36 ) (10 )
Depreciation and amortization (546 ) (575 )
Impairment expense (130 ) (26 )
General and administrative expenses (193 ) (209 )
----------- ---------
Pro forma income from operations $ 507 $ 669
----------- ---------
-------------------------------------------------------------------------------
(a) This table reconciles pro forma data presented in the pro forma financial
information section above to the closest GAAP measure.
(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.
(c) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, we record changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is settled, we
reverse the previously recorded unrealized gain or loss and record the realized
gain or loss of the contract.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA
Attributable to MPLX LP and DCF
Attributable to GP and LP Unitholders
from Net Income (Loss) (unaudited)
Three Months Year Ended
Ended Dec. 31
Dec. 31
(In millions) 2016 2015 2016 2015
--------- --------- ----------- ---------
Net income $ 132 $ 42 $ 258 $ 249
Depreciation and amortization 139 58 546 116
(Benefit) provision for income taxes - 1 (12 ) 1
Amortization of deferred financing
costs 12 4 46 5
Non-cash equity-based compensation 1 1 10 4
Impairment expense - - 130 -
Net interest and other financial
costs 53 27 215 43
Loss (income) from equity investments 2 (3 ) 74 (3 )
Distributions from unconsolidated
subsidiaries 39 15 150 15
Unrealized derivative losses
(gains)((a)) 13 (4 ) 36 (4 )
Acquisition costs - 26 (1 ) 30
--------- --------- ----------- ---------
Adjusted EBITDA 391 167 1,452 456
Adjusted EBITDA attributable to
noncontrolling interests - - (3 ) (1 )
Adjusted EBITDA attributable to
Predecessor((b)) - (31 ) (30 ) (119 )
MarkWest's pre-merger EBITDA((c)) - 162 - 162
--------- --------- ----------- ---------
Adjusted EBITDA attributable to MPLX
LP 391 298 1,419 498
Deferred revenue impacts 2 2 8 6
Net interest and other financial
costs (53 ) (20 ) (215 ) (36 )
Maintenance capital expenditures (20 ) (15 ) (68 ) (31 )
Other (2 ) (6 ) (4 ) (6 )
--------- --------- ----------- ---------
DCF pre-MarkWest undistributed 318 259 1,140 431
MarkWest undistributed DCF((c)) - (32 ) - (32 )
--------- --------- ----------- ---------
DCF 318 227 1,140 399
Preferred unit distributions (16 ) - (41 ) -
--------- --------- ----------- ---------
DCF attributable to GP and LP
unitholders $ 302 $ 227 $ 1,099 $ 399
--------- --------- ----------- ---------
-------------------------------------------------------------------------------
(a) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, we record changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is settled, we
reverse the previously recorded unrealized gain or loss and record the realized
gain or loss of the contract.
(b) The adjusted EBITDA adjustments related to the Predecessor are excluded
from adjusted EBITDA attributable to MPLX LP and DCF prior to the March
31, 2016, acquisition.
(c) MarkWest pre-merger EBITDA and undistributed DCF relates to MarkWest's
EBITDA and DCF from Oct. 1, 2015, through Dec. 3, 2015.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA Attributable to MPLX LP
and DCF Attributable to GP and LP Unitholders from Net
Cash Provided by Operating Activities (unaudited)
Year Ended
Dec. 31
(In millions) 2016 2015
----------- ---------
Net cash provided by operating activities $ 1,288 $ 340
Changes in working capital items (89 ) 54
All other, net (20 ) (12 )
Non-cash equity-based compensation 10 4
Net gain on disposal of assets 1 -
Current income taxes 5 -
Net interest and other financial costs 215 43
Asset retirement expenditures 5 1
Unrealized derivative losses (gains)((a)) 36 (4 )
Acquisition costs (1 ) 30
Other 2 -
----------- ---------
Adjusted EBITDA 1,452 456
Adjusted EBITDA attributable to noncontrolling interests (3 ) (1 )
Adjusted EBITDA attributable to Predecessor((b)) (30 ) (119 )
MarkWest's pre-merger EBITDA((c)) - 162
----------- ---------
Adjusted EBITDA attributable to MPLX LP 1,419 498
Deferred revenue impacts 8 6
Net interest and other financial costs (215 ) (36 )
Maintenance capital expenditures (68 ) (31 )
Other (4 ) (6 )
----------- ---------
DCF pre-MarkWest undistributed 1,140 431
MarkWest's undistributed DCF((c)) - (32 )
----------- ---------
DCF 1,140 399
Preferred unit distributions (41 ) -
----------- ---------
DCF attributable to GP and LP unitholders $ 1,099 $ 399
----------- ---------
-------------------------------------------------------------------------------
(a) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, we record changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is settled, we
reverse the previously recorded unrealized gain or loss and record the realized
gain or loss of the contract.
(b) The adjusted EBITDA adjustments related to the Predecessor are excluded
from adjusted EBITDA attributable to MPLX LP and DCF prior to the March
31, 2016, acquisition.
(c) MarkWest pre-merger EBITDA and undistributed DCF relates to MarkWest's
EBITDA and DCF from Oct. 1, 2015, through Dec. 3, 2015.
-------------------------------------------------------------------------------
Capital Expenditures (unaudited)
Three Months Year Ended
Ended Dec. 31
Dec. 31
(In millions) 2016 2015 2016 2015
--------- ----------- ----------- ----------
Capital Expenditures((a)):
Maintenance $ 20 $ 14 $ 68 $ 33
Growth 293 152 1,118 282
--------- ----------- ----------- ----------
Total capital expenditures 313 166 1,186 315
Less: (Decrease) increase in
capital accruals (21 ) 7 (25 ) 26
Asset retirement expenditures 2 - 5 1
--------- ----------- ----------- ----------
Additions to property, plant and
equipment 332 159 1,206 288
Capital expenditures of
unconsolidated subsidiaries((b)) 37 24 131 24
--------- ----------- ----------- ----------
Total gross capital expenditures 369 183 1,337 312
Less: Joint venture partner
contributions 19 8 64 8
--------- ----------- ----------- ----------
Total capital expenditures, net 350 175 1,273 304
Less: Maintenance capital 24 14 72 33
--------- ----------- ----------- ----------
Total growth capital expenditures 326 161 1,201 271
Acquisition, net of cash acquired - 1,218 - 1,218
--------- ----------- ----------- ---------
Datum: 01.02.2017 - 12:50 Uhr
Sprache: Deutsch
News-ID 521328
Anzahl Zeichen: 65675
contact information:
Town:
FINDLAY
Kategorie:
Business News
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"MPLX LP Reports Fourth-Quarter and Full-Year 2016 Financial Results"
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