MPLX LP Reports First-Quarter 2017 Financial Results
(Thomson Reuters ONE) -
* Reported first-quarter net income of $150 million and adjusted EBITDA
of $423 million
* Reported first-quarter net cash from operating activities of $377 million
and distributable cash flow of $354 million
* Declared distribution of $0.540 per common unit, a 7 percent increase over
first-quarter 2016
* Completed strategic transactions including the first of several planned
dropdowns from its sponsor, Marathon Petroleum Corporation
* Increased 2017 organic growth capital forecast to a range of $1.8 billion to
$2 billion, up from $1.4 billion to $1.7 billion
FINDLAY, Ohio, April 27, 2017 - MPLX LP (NYSE: MPLX) today reported first-
quarter 2017 net income attributable to MPLX of $150 million compared with a $60
million loss in the first quarter of 2016.
"MPLX delivered solid operational and financial results in the quarter, and the
partnership continues to pursue and execute on a number of strategic growth
opportunities," said Gary R. Heminger, MPLX chairman and chief executive
officer. "With a strong balance sheet and diverse asset base, we are well-
positioned to deliver our forecasts for a 2017 distribution growth rate of 12 to
15 percent and a double-digit distribution growth rate in 2018."
On March 1, MPLX completed the first of several planned dropdowns from its
sponsor, Marathon Petroleum Corporation (NYSE: MPC), acquiring terminal,
pipeline and storage assets for total consideration of $2 billion. MPC has
indicated that work remains on schedule to prepare the remaining assets for
dropdown to MPLX, consistent with the previously announced strategic actions.
In conjunction with the completion of the dropdowns, MPLX expects to exchange
newly issued common units for MPC's general partner economic interest, including
incentive distribution rights (IDRs). These strategic actions are intended to
reduce MPLX's cost of capital and enhance its long-term distribution growth
capabilities. The planned dropdowns and the elimination of the IDRs are subject
to requisite approvals, market and other conditions, including tax and other
regulatory clearances.
In the first quarter, MPLX further diversified its Logistics and Storage (L&S)
segment footprint with the purchase of the Ozark Pipeline and an indirect equity
interest in the Bakken Pipeline system.
The Gathering and Processing (G&P) segment also strengthened its organic growth
portfolio with recently amended and extended agreements to support the continued
long-term development of Range Resources Corporation's substantial rich-gas
acreage in Pennsylvania and the formation of a joint venture between MPLX's
wholly owned subsidiary MarkWest Energy Partners L.P. and Antero Midstream
Partners LP. The joint venture is intended to support the development of Antero
Resources Corporation's extensive Marcellus Shale acreage in the rich-gas
corridor of West Virginia.
The projects supporting Range Resources, Antero Resources and the continuing
organic growth capital expenditures are expected to result in an additional 1.6
billion cubic feet per day of processing capacity and 160,000 barrels per day of
fractionation capacity in the Northeast by the end of 2018. A portion of this
capacity will be completed in 2017 and supports MPLX's forecast of 10 to 15
percent year-over-year growth in processed volumes and 15 to 20 percent year-
over-year growth in fractionated volumes. It also further strengthens MPLX's
position as the largest processor and fractionator in the prolific Marcellus and
Utica shales.
"Increased visibility to growth from successfully executing dropdown
transactions, eliminating IDRs and continuing investment in organic growth
projects positions us well to improve our cost of capital," Heminger said. "We
remain confident in our long-term value proposition for investors."
Financial Highlights
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Three Months Ended
March 31
(In millions, except per unit and ratio data) 2017 2016
------------ -----------
Net income attributable to MPLX((a)(b)) $ 150 $ (60 )
Adjusted EBITDA attributable to MPLX((c)) 423 302
Net cash provided by operating activities((b)) 377 321
Distributable cash flow ("DCF")((c)) 354 236
Distribution per common unit((d)) 0.5400 0.5050
Distribution coverage ratio((e)) 1.29x 1.18x
Growth capital expenditures((f)) 358 314
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(a) The three months ended March 31, 2016, includes a pretax, non-cash
impairment charge of $129 million related to the goodwill established in
connection with the MarkWest acquisition.
(b) Amounts have been recast to reflect the March 1, 2017, acquisition of
Hardin Street Transportation (HST), Woodhaven Cavern (WHC) and MPLX Terminals
(MPLXT) from MPC. The results of HST and WHC were recast effective Jan.
1, 2015, and the results for MPLXT were recast effective April 1, 2016. Prior to
these dates these companies were not considered businesses and therefore there
are no financial results from which to recast.
(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 MPLX's general
partner.
(e) Non-GAAP measure. See calculation below.
(f) Includes capital expenditures for inland marine business acquired on
March 31, 2016, and the pipeline, storage and terminals businesses acquired on
March 1, 2017 (collectively with inland marine business, "Predecessor").
Excludes non-affiliated joint-venture (JV) members' share of capital
expenditures. See description below.
Operational Highlights
· Processed volumes in the Marcellus and Utica of 4.6 billion cubic feet
per day, a 4 percent increase for the first quarter of 2017 versus the fourth
quarter of 2016.
· Fractionated volumes in the Marcellus and Utica of 334,000 barrels per
day, a 6 percent increase for the first quarter of 2017 versus the fourth
quarter of 2016.
· Commenced operations of the Sherwood VII 200-million-cubic-feet-per-
day gas processing plant; three additional Sherwood plants are under
construction.
· Commenced operation of a third fractionation train at Hopedale complex
in Ohio, to support growing natural gas liquids (NGL) production from producers
in the Marcellus and Utica shales.
· Averaged 96 percent utilization at Hidalgo complex.
· Began construction of Argo I gas processing plant in Delaware Basin.
· Continued construction of the Harpster-Lima pipeline and expansions to
the East Sparta-Heath and Heath-Findlay pipelines. These pipeline projects are
expected to be complete by mid-2017.
Financial Position and Liquidity
As of March 31, MPLX had $265 million in cash, $2 billion available through its
bank revolving credit facility and $500 million available through its credit
facility with MPC. During the first quarter, MPLX opportunistically issued 4.2
million new common units through its at-the-market program and received net
proceeds of approximately $148 million.
In February, the partnership issued $2.25 billion in unsecured senior notes.
MPLX used a significant portion of the net proceeds from this offering to fund
the March 1 dropdown from MPC and expects to use the remaining proceeds for
general partnership purposes, which may include future dropdowns from MPC and
capital expenditures.
The partnership's $2.8 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 4.0 times at March
31, 2017. MPLX remains committed to maintaining an investment-grade credit
profile.
Forecast
MPLX's 2017 financial forecast has been revised to reflect the first-quarter
dropdown from MPC; the acquisitions of the Ozark pipeline and Bakken Pipeline
system; and MPLX's current estimates for operational volumes and commodity
prices. The 2017 forecast excluding future dropdowns is:
Net income $550 million to $700 million
Adjusted EBITDA((a)) $1.7 billion to $1.85 billion
Net cash provided by operating activities $1.4 billion to $1.55 billion
Distributable cash flow (DCF)((a)) $1.25 billion to $1.4 billion
Organic growth capital expenditures((b)) $1.8 billion to $2.0 billion
Maintenance capital expenditures ~$150 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 acquisition costs for dropdown of terminal, pipeline and
storage assets; Ozark Pipeline; and Bakken Pipeline system. Also excludes non-
affiliated JV members' share of capital expenditures.
The forecast for organic growth capital expenditures is $1.8 billion to $2.0
billion, an increase from the previous range of $1.4 billion to $1.7 billion.
Updates include additional capital to support the development of the Argo I
plant in the Delaware Basin, the Sherwood Complex in the Northeast and an
expansion of the Ozark Pipeline. Maintenance capital is forecast at
approximately $150 million, an increase of $50 million versus previous guidance,
primarily due to expenditures related to assets acquired during the quarter.
Segment Results
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Segment operating income attributable to MPLX LP
Three Months
Ended
March 31
(In millions) 2017 2016
--------- --------
Logistics and Storage((a)) $ 156 $ 88
Gathering and Processing((a)) 309 257
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(a) See reconciliation below for details.
Logistics and Storage (L&S) segment operating income increased for the first
quarter of 2017 compared with the same period in 2016. The increase was
primarily due to the acquisition of the MPLX Terminals, Hardin Street
Transportation and Woodhaven Cavern businesses on March 1, 2017, and the
acquisition of the Hardin Street Marine business on March 31, 2016.
Gathering and Processing (G&P) segment operating income increased for the first
quarter of 2017 compared with the same period in 2016. This increase is due to
higher product margins; higher processing and fractionation volumes; and lower
transportation costs and other operating expenses.
See reconciliation below for detail on items not allocable to or controllable by
any individual segment, which are therefore excluded when evaluating segment
performance.
Conference Call
At 11 a.m. EDT 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
44548079) or by visiting MPLX's website at http://www.mplx.com and clicking on
the "2017 First-Quarter Financial Results" link in the "News & Headlines"
section. Replays of the conference call will be available on MPLX's website
through Thursday, May 11. 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, storage
and distribution 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; 62 light-product terminals with approximately 24 million
barrels of storage capacity; an inland marine business; crude oil and product
storage facilities (tank farms and caverns) with approximately 7.8 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, 55 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.
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 an increase of the current yield
on common units, 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, 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; 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, 2016,
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
March 31
(In millions, except per unit data) 2017 2016((a))
---------- ------------
Revenues and other income:
Service revenue $ 260 $ 229
Service revenue - related parties 255 177
Rental income 69 70
Rental income - related parties 67 38
Product sales 203 100
Product sales - related parties 2 3
Gain on sale of assets 1 -
Income from equity method investments 5 5
Other income 2 2
Other income - related parties 22 21
---------- ------------
Total revenues and other income 886 645
Costs and expenses:
Cost of revenues (excludes items below) 113 94
Purchased product costs 131 79
Rental cost of sales 12 14
Purchases - related parties 107 78
Depreciation and amortization 187 136
Impairment expense - 129
General and administrative expenses 58 53
Other taxes 13 12
---------- ------------
Total costs and expenses 621 595
---------- ------------
Income from operations 265 50
Related party interest and other financial costs - 1
Interest expense, net of amounts capitalized 66 55
Other financial costs 12 12
---------- ------------
Income (loss) before income taxes 187 (18 )
Benefit for income taxes - (4 )
---------- ------------
Net income (loss) 187 (14 )
Less: Net income attributable to noncontrolling
interests 1 -
Less: Net income attributable to Predecessor 36 46
---------- ------------
Net income (loss) attributable to MPLX LP 150 (60 )
Less: Preferred unit distributions 16 -
Less: General partner's interest in net income
attributable to MPLX LP 62 39
---------- ------------
Limited partners' interest in net income (loss)
attributable to MPLX LP $ 72 $ (99 )
---------- ------------
Per Unit Data
Net income (loss) attributable to MPLX LP per limited
partner unit:
Common - basic $ 0.20 $ (0.33 )
Common - diluted 0.19 (0.33 )
Weighted average limited partner units outstanding:
Common units - basic 362 300
Common units - diluted 367 300
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(a) Financial results for HST and WHC were recast effective Jan. 1, 2015, and
the results for MPLXT were recast effective April 1, 2016. Prior to these dates
these companies were not considered businesses and therefore there are no
financial results from which to recast. The net income of these businesses is
excluded from net income attributable to MPLX LP prior to March 1, 2017,
acquisition from MPC.
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Select Financial Statistics (unaudited)
Three Months
Ended
March 31
(In millions, except ratio data) 2017 2016
---------- ---------
Distribution declared:
Common units (LP) - public $ 149 $ 127
Common units - MPC 47 29
Common units - General partner (GP) 2 -
GP units - MPC 5 4
Incentive distribution rights - MPC 60 40
---------- ---------
Total GP and LP distribution declared 263 200
---------- ---------
Redeemable preferred units((a)) 16 -
---------- ---------
Total distribution declared $ 279 $ 200
---------- ---------
Distribution coverage ratio((b)) 1.29x 1.18x
Cash Flow Data
Net cash flow provided by (used in):
Operating activities $ 377 $ 321
Investing activities (953 ) (266 )
Financing activities 607 (94 )
Other Financial Data
Adjusted EBITDA attributable to MPLX LP((c)) $ 423 $ 302
DCF attributable to GP and LP unitholders((c)) 338 236
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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)
Dec. 31
March
(In millions, except ratio data) 31 2017 2016((c))
--------------- ------------
Cash and cash equivalents $ 265 $ 234
Total assets 18,285 17,509
Total debt 6,655 4,423
Redeemable preferred units 1,000 1,000
Total equity 9,700 11,110
Consolidated total debt to LTM pro forma adjusted
EBITDA((a)) 4.0x 2.9x
Partnership units outstanding:
GP units 8 7
Class B units((b)) 4 4
MPC-held common units 90 86
GP-held common units 9 -
Public common units 275 271
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(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 $453 million and $435 million of unamortized discount and debt
issuance costs as of March 31, 2017, and Dec. 31, 2016, respectively.
(b) Class B units were issued to and are held by M&R MWE Liberty LLC, 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 $6.20 in cash for
each Class B unit in two equal installments, the first of which occurred on
July 1, 2016, and the second of which will occur July 1, 2017. Class B units do
not receive distributions.
(c) Financial information has been retrospectively adjusted to include the
results of HST, WHC and MPLXT prior to the March 1, 2017, acquisition from MPC,
since MPLX and these businesses are under common control.
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Operating Statistics (unaudited)
Three Months Ended
March 31
%
2017 2016 Change
------------ ----------- -------
Logistics and Storage
Pipeline throughput (thousands of barrels
per day)((a))
Crude oil pipelines 1,624 1,576 3 %
Product pipelines 951 989 (4 )%
------------ ----------- -------
Total pipeline throughput 2,575 2,565 0 %
Average tariff rates ($ per barrel)((a))
Crude oil pipelines $ 0.59 $ 0.59 - %
Product pipelines 0.76 0.66 15 %
Total 0.65 0.61 7 %
Terminal throughput (thousands of barrels
per day)((b)) 59,793 - - 100 %
Barges at period-end 231 219 5 %
Towboats at period-end 18 18 - %
Gathering and Processing
Gathering throughput (mmcf/d)
Marcellus operations 926 903 3 %
Utica operations 914 990 (8 )%
Southwest operations 1,344 1,452 (7 )%
------------ ----------- -------
Total gathering throughput 3,184 3,345 (5 )%
Natural gas processed (mmcf/d)
Marcellus operations 3,532 3,152 12 %
Utica operations 1,068 1,120 (5 )%
Southwest operations 1,267 1,110 14 %
Southern Appalachian operations 265 254 4 %
------------ ----------- -------
Total natural gas processed 6,132 5,636 9 %
C2 + NGLs fractionated (mbpd)
Marcellus operations 291 237 23 %
Utica operations 43 48 (10 )%
Southwest operations 19 19 - %
Southern Appalachian operations 14 17 (18 )%
------------ ----------- -------
Total C2 + NGLs fractionated 367 321 14 %
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(a) Pipeline throughput and tariff rates as of March 31, 2016, have been
recast to reflect the acquisition of HST.
(b) MPLXT was not established as a business until April 1, 2016, therefore
there is no terminal throughput to disclose for the three months ended March
31, 2016.
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Reconciliation of Segment Operating Income Attributable to
MPLX LP to Income From Operations (unaudited)
Three Months
Ended
March 31
(In millions) 2017 2016
---------- ---------
L&S segment operating income attributable to MPLX LP $ 156 $ 88
G&P segment operating income attributable to MPLX LP((a)) 309 257
Segment portion attributable to equity affiliates (40 ) (42 )
Segment portion attributable to Predecessor((b)) 53 62
Income from equity method investments 5 5
Other income - related parties 11 7
Unrealized derivative gains (losses)((c)) 16 (9 )
Depreciation and amortization (187 ) (136 )
Impairment expense - (129 )
General and administrative expenses (58 ) (53 )
---------- ---------
Income from operations $ 265 $ 50
---------- ---------
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(a) All Partnership-operated, non-wholly owned subsidiaries are treated as if
they are consolidated.
(b) The operating income of the Predecessor is excluded from segment operating
income attributable to MPLX LP prior to the acquisition dates.
(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.
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Reconciliation of Adjusted EBITDA attributable to MPLX LP
and DCF attributable to GP and LP unitholders from Net
Income (Loss) (unaudited)
Three Months
Ended
March 31
(In millions) 2017 2016
--------- --------
Net income (loss) $ 187 $ (14 )
Depreciation and amortization 187 136
Benefit for income taxes - (4 )
Amortization of deferred financing costs 12 11
Non-cash equity-based compensation 3 2
Impairment expense - 129
Net interest and other financial costs 66 57
Income from equity method investments (5 ) (5 )
Distributions from unconsolidated subsidiaries 33 38
Unrealized derivative (gains) losses((a)) (16 ) 9
Acquisition costs 4 1
--------- --------
Adjusted EBITDA 471 360
Adjusted EBITDA attributable to noncontrolling interests (1 ) (1 )
Adjusted EBITDA attributable to Predecessor((b)) (47 ) (57 )
--------- --------
Adjusted EBITDA attributable to MPLX LP 423 302
Deferred revenue impacts 8 3
Net interest and other financial costs (66 ) (57 )
Maintenance capital expenditures (12 ) (13 )
Other (1 ) -
Portion of DCF adjustments attributable to Predecessor((b)) 2 1
--------- --------
DCF 354 236
Preferred unit distributions (16 ) -
--------- --------
DCF attributable to GP and LP unitholders $ 338 $ 236
--------- --------
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(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 and DCF adjustments related to the Predecessor are
excluded from adjusted EBITDA attributable to MPLX LP and DCF prior to the
acquisition dates.
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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
March 31
(In millions) 2017 2016
--------- --------
Net cash provided by operating activities $ 377 $ 321
Changes in working capital items 51 (13 )
All other, net (16 ) (17 )
Non-cash equity-based compensation 3 2
Net gain on disposal of assets (1 ) -
Net interest and other financial costs 66 57
Current income taxes - -
Asset retirement expenditures 1 -
Unrealized derivative (gains) losses((a)) (16 ) 9
Acquisition costs 4 1
Other 2 -
--------- --------
Adjusted EBITDA 471 360
Adjusted EBITDA attributable to noncontrolling interests (1 ) (1 )
Adjusted EBITDA attributable to Predecessor((b)) (47 ) (57 )
--------- --------
Adjusted EBITDA attributable to MPLX LP 423 302
Deferred revenue impacts 8 3
Net interest and other financial costs (66 ) (57 )
Maintenance capital expenditures (12 ) (13 )
Other (1 ) -
Portion of DCF adjustments attributable to Predecessor((b)) 2 1
--------- --------
DCF 354 236
Preferred unit distributions (16 ) -
--------- --------
DCF attributable to GP and LP unitholders $ 338 $ 236
--------- --------
-------------------------------------------------------------------------------
(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 and DCF adjustments related to the Predecessor are
excluded from adjusted EBITDA attributable to MPLX LP and DCF prior to the
acquisition dates.
---------------------------------------------------------------------------
Capital Expenditures (unaudited)
Three Months
Ended
March 31
(In millions) 2017 2016
--------- --------
Capital Expenditures((a)):
Maintenance $ 12 $ 11
Growth 271 270
--------- --------
Total capital expenditures 283 281
Less: Increase (decrease) in capital accruals 2 (23 )
Asset retirement expenditures 1 -
--------- --------
Additions to property, plant and equipment 280 304
Capital expenditures of unconsolidated subsidiaries((b)) 124 44
--------- --------
Total gross capital expenditures 404 348
Less: Joint venture partner contributions 34 23
--------- --------
Total capital expenditures, net 370 325
Less: Maintenance capital 12 11
--------- --------
Total growth capital expenditures $ 358 $ 314
--------- --------
---------------------------------------------------------------------------
(a) Includes capital expenditures of the Predecessor for all periods
presented.
(b) Capital expenditures includes amounts related to unconsolidated,
partnership-operated subsidiaries.
-------------------------------------------------------------------------------
2017 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 $ 550 $ 700
Depreciation and amortization 680 680
Net interest and other financial costs 330 330
Adjustment for equity investment earnings &
distributions 100 100
Unrealized derivative losses((a)) 20 20
Other 23 23
----------- ----------
Adjusted EBITDA 1,703 1,853
Adjusted EBITDA attributable to noncontrolling interests (3 ) (3 )
----------- ----------
Adjusted EBITDA attributable to MPLX LP 1,700 1,850
Deferred revenue impacts 5 5
Net interest and other financial costs (280 ) (280 )
Maintenance capital expenditures (150 ) (150 )
Other (25 ) (25 )
----------- ----------
DCF 1,250 1,400
Preferred unit distributions (65 ) (65 )
----------- ----------
DCF available to GP and LP unitholders $ 1,185 $ 1,335
----------- ----------
-------------------------------------------------------------------------------
(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.
-------------------------------------------------------------------------------
2017 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 $ 1,400 $ 1,550
Changes in working capital items (76 ) (76 )
All other, net 60 60
Non-cash equity based compensation 12 12
Net cash interest and other financial costs 280 280
Current income tax expense (1 ) (1 )
Asset retirement expenditures 8 8
Unrealized derivative losses((a)) 20 20
----------- ----------
Adjusted EBITDA 1,703 1,853
Adjusted EBITDA attributable to noncontrolling interests (3 ) (3 )
----------- ----------
Adjusted EBITDA attributable to MPLX LP 1,700 1,850
Deferred revenue impacts 5 5
Net interest and other financial costs (280 ) (280 )
Maintenance capital expenditures (150 ) (150 )
Other (25 ) (25 )
----------- ----------
DCF 1,250 1,400
Preferred unit distributions (65 ) (65 )
----------- ----------
DCF available to GP and LP unitholders $ 1,185 $ 1,335
----------- ----------
-------------------------------------------------------------------- ----------
(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.
MPLX Q1 2017 Earnings Release:
http://hugin.info/155038/R/2099574/795618.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MPLX LP via GlobeNewswire
Datum: 27.04.2017 - 12:50 Uhr
Sprache: Deutsch
News-ID 538814
Anzahl Zeichen: 59426
contact information:
Town:
FINDLAY
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 116 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"MPLX LP Reports First-Quarter 2017 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
MPLX LP (Nachricht senden)
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