MPLX LP Reports Second-Quarter 2017 Financial Results
(Thomson Reuters ONE) -
* Reported record second-quarter net income of $190 million and adjusted
EBITDA of $474 million
* Reported second-quarter net cash from operating activities of $467 million
and distributable cash flow of $387 million
* Declared 18th consecutive quarterly distribution increase to $0.5625 per
common unit, and continue to forecast 2017 distribution growth of 12 to 15
percent
* Targeting third-quarter 2017 for next dropdown in series of acquisitions
planned from sponsor Marathon Petroleum Corporation
FINDLAY, Ohio, July 27, 2017 - MPLX LP (NYSE: MPLX) today reported second-
quarter 2017 net income attributable to MPLX of $190 million compared with $19
million in the second quarter of 2016.
"MPLX delivered record second-quarter financial results driven by record
processed and fractionated volumes and the continued execution of our organic
and dropdown growth strategies," said Gary R. Heminger, MPLX chairman and chief
executive officer.
In the third quarter, MPLX anticipates completing the second of several
acquisitions from sponsor Marathon Petroleum Corporation (NYSE: MPC) with the
offer of the joint-interest ownership in certain pipelines and storage
facilities. These assets are projected to generate approximately $135 million of
annual adjusted earnings before interest, taxes, depreciation and amortization
(EBITDA).((1) )MPC has indicated work remains on schedule to prepare the
remaining assets with annual EBITDA of approximately $1 billion for dropdown to
MPLX no later than the end of the first quarter of 2018.
In conjunction with the completion of the acquisitions, MPLX expects to exchange
newly issued common units for MPC's general partner economic interest, including
incentive distribution rights (IDRs) and its 2 percent general partner interest.
These strategic actions are intended to reduce MPLX's cost of capital and
enhance its long-term distribution growth capabilities. Following these
transactions, the partnership also expects to target a higher coverage ratio
over time and internally fund a greater portion of its future growth. The
planned dropdowns and the elimination of the IDRs are subject to requisite
approvals, market and other conditions, including tax and other regulatory
clearances.
"Upon completion of the dropdowns, MPLX will be among the largest diversified
master limited partnerships in the energy sector," Heminger said. "With a robust
portfolio of organic projects in the Marcellus, Permian and STACK, which are
among the most prolific and economic shale plays in the country, we believe MPLX
is well-positioned to deliver attractive long-term returns."
In early July, the Logistics and Storage segment's (L&S) Utica build-out
projects, including the newly constructed Harpster-to-Lima pipeline, became
fully operational. In combination with the Cornerstone Pipeline, these projects
create additional fee-based revenue for the partnership and new access for Utica
and Marcellus shale producers by moving condensate and natural gasoline to
refineries throughout the Midwest. MPLX is currently constructing additional
connectivity and expanding pipelines to provide more optionality for Midwest
refiners.
The Gathering and Processing (G&P) segment continues to build on its strong
footprint in the Marcellus, Permian and STACK shale plays. In the Northeast, the
second quarter was the first full quarter with seven plants operating at the
Sherwood complex in West Virginia. The complex operated at full capacity for the
quarter. To further support Antero Resources Corp.'s extensive Marcellus Shale
acreage in the prolific rich-gas corridor of West Virginia, the Sherwood VIII
processing plant was placed into service in July. Three additional processing
plants and a de-ethanization unit are expected to be constructed at Sherwood in
2018.
In the Southwest, MPLX continues construction of the Argo gas processing plant
in the Delaware basin. In July, the partnership began construction of an
additional gas processing plant to support growth in the STACK shale play of
Oklahoma. The new facility, named the Omega plant, is expected to enter service
in mid-2018.
((1) ) Adjusted EBITDA with respect to anticipated joint-interest
acquisitions is calculated as cash distributions adjusted for maintenance
capital, growth capital and financing activities.
Financial Highlights
-------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30 June 30
(In millions, except per
unit and ratio data) 2017 2016 2017 2016
------------ ------------ ------------ -----------
Net income attributable to
MPLX((a)(b)) $ 190 $ 19 $ 340 $ (41 )
Adjusted EBITDA attributable
to MPLX((c)) 474 351 897 653
Net cash provided by
operating activities((b)) 467 349 844 670
Distributable cash flow
("DCF")((c)) 387 285 741 521
Distribution per common
unit((d)) 0.5625 0.5100 1.1025 1.0150
Distribution coverage
ratio((e)) 1.26x 1.24x 1.27x 1.21x
Growth capital
expenditures((f)) 370 288 728 602
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(a) The three and six months ended June 30, 2016, include pretax, non-cash
impairment charges of $89 million related to an equity method investment. The
three and six months ended June 30, 2016, includes a pretax, non-cash impairment
of $1 million and $130 million, respectively, 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 4.7 billion cubic feet
per day, a 14 percent increase for the second quarter of 2017 versus the second
quarter of 2016.
· Fractionated volumes in the Marcellus and Utica of 351,000 barrels per
day, a 19 percent increase for the second quarter of 2017 versus the second
quarter of 2016.
· Operated at full utilization at the Sherwood complex; commenced operation
of Sherwood VIII processing plant in July.
· Commenced operation of a 20,000-barrels-per-day fractionation train at
the Bluestone complex to support growing natural gas liquids (NGL) production in
the Marcellus shale.
· Operated at full utilization at the Hidalgo plant.
· Commenced operations of the Harpster-to-Lima pipeline and expansions
to the East Sparta-to-Heath and Heath-to-Harpster pipelines. These pipeline
projects became fully operational in July.
Financial Position and Liquidity
As of June 30, MPLX had $293 million in cash, approximately $2 billion available
through its bank revolving credit facility expiring in December 2020, and $500
million available through its credit facility with MPC. On July 21, 2017, MPLX
replaced its existing bank revolving credit facility with a new five-year $2.25
billion bank revolving credit facility, with an expiration approximately 18
months after the previous facility. Additionally, the $250 million outstanding
under the term loan facility was repaid on July 19, 2017. During the second
quarter, MPLX opportunistically issued approximately 9 million new common units
through its at-the-market program and received net proceeds of approximately
$286 million.
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 3.8 times at June
30, 2017. MPLX remains committed to maintaining an investment-grade credit
profile.
Forecast
MPLX's 2017 financial forecast has been revised to reflect the partnership's
current estimates for operational volumes and commodity prices. The partnership
increased its earnings-related guidance by $50 million. The 2017 forecast
excluding future dropdowns is:
Net income $600 million to $750 million
Adjusted EBITDA((a)) $1.75 billion to $1.9 billion
Net cash provided by operating activities $1.45 billion to $1.6 billion
Distributable cash flow (DCF)((a)) $1.3 billion to $1.45 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.
Segment Results
-------------------------------------------------------------------------------
Segment operating income attributable to
MPLX LP (unaudited)
Three Months Six Months
Ended Ended
June 30 June 30
(In millions) 2017 2016 2017 2016
--------- --------- --------- --------
Logistics and Storage((a)) $ 208 $ 123 $ 364 $ 211
Gathering and Processing((a)) 313 271 622 528
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(a) See reconciliation below for details.
Logistics and Storage (L&S) segment operating income increased for the second
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 Ozark pipeline.
Gathering and Processing (G&P) segment operating income increased for the second
quarter of 2017 compared with the same period in 2016. This increase is due to
higher processing and fractionation volumes and higher product margins.
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 1-888-677-5735 (confirmation number
2770286) or by visiting MPLX's website at http://www.mplx.com and clicking on
the "2017 Second-Quarter Financial Results" link in the "News & Headlines"
section. Replays of the conference call will be available on MPLX's website
through Thursday, Aug. 10. 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 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; storage caverns with approximately
2.8 million barrels of storage capacity; crude oil and product storage
facilities (tank farms) with approximately 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 approximately 5.6 billion cubic feet per day of gathering
capacity, 7.8 billion cubic feet per day of natural gas processing capacity and
570,000 barrels per day of fractionation capacity.
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, changes in the fair value of the derivative are recorded as an
unrealized gain or loss. When a derivative contract matures or is settled, the
previously recorded unrealized gain or loss is reversed and the realized gain or
loss of the contract is recorded.
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;
adverse results in litigation; 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; adverse results in litigation; 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.
Results of Operations Three Months Ended Six Months Ended
(unaudited) June 30 June 30
(In millions, except per unit
data) 2017 2016((a)) 2017 2016((a))
---------- ------------- ----------- ------------
Revenues and other income:
Service revenue $ 286 $ 233 $ 546 $ 462
Service revenue - related
parties 270 246 525 423
Rental income 70 71 139 141
Rental income - related
parties 70 66 137 104
Product sales 191 137 394 237
Product sales - related
parties 2 3 4 6
Gain on sale of assets - - 1 -
Income (loss) from equity
method investments 1 (83 ) 6 (78 )
Other income 1 1 3 3
Other income - related
parties 25 24 47 45
---------- ------------- ----------- ------------
Total revenues and other
income 916 698 1,802 1,343
Costs and expenses:
Cost of revenues (excludes
items below) 139 113 252 207
Purchased product costs 140 114 271 193
Rental cost of sales 13 15 25 29
Rental cost of sales -
related parties 1 1 1 1
Purchases - related parties 109 99 216 177
Depreciation and amortization 164 151 351 287
Impairment expense - 1 - 130
General and administrative
expenses 57 63 115 116
Other taxes 13 13 26 25
---------- ------------- ----------- ------------
Total costs and expenses 636 570 1,257 1,165
---------- ------------- ----------- ------------
Income from operations 280 128 545 178
Related party interest and
other financial costs - - - 1
Interest expense, net of
amounts capitalized 74 52 140 107
Other financial costs 13 12 25 24
---------- ------------- ----------- ------------
Income before income taxes 193 64 380 46
Provision (benefit) for
income taxes 2 (8 ) 2 (12 )
---------- ------------- ----------- ------------
Net income 191 72 378 58
Less: Net income attributable
to noncontrolling interests 1 1 2 1
Less: Net income attributable
to Predecessor - 52 36 98
---------- ------------- ----------- ------------
Net income (loss)
attributable to MPLX LP 190 19 340 (41 )
Less: Preferred unit
distributions 17 9 33 9
Less: General partner's
interest in net income
attributable to MPLX LP 74 46 136 85
---------- ------------- ----------- ------------
Limited partners' interest in
net income (loss)
attributable to MPLX LP $ 99 $ (36 ) $ 171 $ (135 )
---------- ------------- ----------- ------------
Per Unit Data
Net income (loss)
attributable to MPLX LP per
limited partner unit:
Common - basic $ 0.26 $ (0.11 ) $ 0.46 $ (0.43 )
Common - diluted 0.26 (0.11 ) 0.46 (0.43 )
Weighted average limited
partner units outstanding:
Common units - basic 377 331 370 316
Common units - diluted 382 331 374 316
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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 the March 1, 2017,
acquisition from MPC.
-------------------------------------------------------------------------------
Select Financial Statistics
(unaudited)
Three Months Six Months Ended
Ended June 30
June 30
(In millions, except ratio data) 2017 2016 2017 2016
---------- ---------- ------------ ---------
Distribution declared:
Common units (LP) - public $ 162 $ 131 $ 311 $ 258
Common units - MPC 51 41 98 70
Common units - General partner
(GP) 5 - 7 -
GP units - MPC 6 4 11 8
Incentive distribution rights -
MPC 70 46 130 86
---------- ---------- ------------ ---------
Total GP and LP distribution
declared 294 222 557 422
---------- ---------- ------------ ---------
Redeemable preferred units((a)) 17 9 33 9
---------- ---------- ------------ ---------
Total distribution declared $ 311 $ 231 $ 590 $ 431
---------- ---------- ------------ ---------
Distribution coverage ratio((b)) 1.26x 1.24x 1.27x 1.21x
Cash Flow Data
Net cash flow provided by (used
in):
Operating activities $ 467 $ 349 $ 844 $ 670
Investing activities (451 ) (337 ) (1,404 ) (603 )
Financing activities 12 19 619 (75 )
Other Financial Data
Adjusted EBITDA attributable to
MPLX LP((c)) $ 474 $ 351 $ 897 $ 653
DCF attributable to GP and LP
unitholders((c)) 370 276 708 512
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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
June
(In millions, except ratio data) 30 2017 2016((c))
-------------- ------------
Cash and cash equivalents $ 293 $ 234
Total assets 18,601 17,509
Total debt 6,667 4,423
Redeemable preferred units 1,000 1,000
Total equity 9,909 11,110
Consolidated total debt to LTM pro forma adjusted
EBITDA((a)) 3.8x 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 284 271
-------------------------------------------------------------------------------
(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 $441 million and $435 million of unamortized discount and debt
issuance costs as of June 30, 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 converted into
common units at a rate of 1.09 common units and received $6.20 in cash for each
Class B unit in two equal installments, the first of which occurred on July 1,
2016, and the second of which occurred on July 1, 2017. Class B units do not
receive distributions.
(c) Financial information has been retrospectively adjusted to include the
results of HST, WHC and MPLXT prior to the March 1, 2017, acquisition from MPC,
since MPLX and these businesses are under common control.
-------------------------------------------------------------------------------
Operating
Statistics
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
% %
2017 2016 Change 2017 2016 Change
----------- ----------- -------- ----------- ----------- -------
Logistics
and Storage
Pipeline
throughput
(thousands
of barrels
per
day)((a))
Crude oil
pipelines 2,027 1,643 23 % 1,827 1,609 14 %
Product
pipelines 1,067 987 8 % 1,010 988 2 %
----------- ----------- -------- ----------- ----------- -------
Total
pipelines 3,094 2,630 18 % 2,837 2,597 9 %
Average
tariff rates
($ per
barrel)((a))
Crude oil
pipelines $ 0.58 $ 0.57 2 % $ 0.58 $ 0.58 - %
Product
pipelines 0.70 0.67 4 % 0.73 0.66 11 %
Total
pipelines 0.62 0.61 2 % 0.63 0.61 3 %
Terminal
throughput
(thousands
of barrels
per day) 1,489 - 1,503 (1 )% 1,456 1,503 (3 )%
Barges at
period-end 232 219 6 % 232 219 6 %
Towboats at
period-end 18 18 - % 18 18 - %
Gathering
and
Processing
Gathering
throughput
(mmcf/d)
Marcellus
Operations 964 918 5 % 944 910 4 %
Utica
Operations 951 902 5 % 933 946 (1 )%
Southwest
Operations 1,411 1,468 (4 )% 1,378 1,460 (6 )%
----------- ----------- -------- ----------- ----------- -------
Total
gathering
throughput 3,326 3,288 1 % 3,255 3,316 (2 )%
Natural gas
processed
(mmcf/d)
Marcellus
Operations 3,811 3,072 24 % 3,672 3,112 18 %
Utica
Operations 879 1,034 (15 )% 973 1,077 (10 )%
Southwest
Operations 1,333 1,175 13 % 1,300 1,142 14 %
Southern
Appalachian
Operations 269 248 8 % 267 251 6 %
----------- ----------- -------- ----------- ----------- -------
Total
natural gas
processed 6,292 5,529 14 % 6,212 5,582 11 %
C2 + NGLs
fractionated
(mbpd)
Marcellus
Operations 313 252 24 % 302 244 24 %
Utica
Operations 38 40 (5 )% 40 44 (9 )%
Southwest
Operations 21 14 50 % 20 16 25 %
Southern
Appalachian
Operations 15 16 (6 )% 15 17 (12 )%
----------- ----------- -------- ----------- ----------- -------
Total C2 +
NGLs
fractionated 387 322 20 % 377 321 17 %
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(a) Pipeline throughput and tariff rates as of June 30, 2016, have been recast
to reflect the acquisition of HST.
-------------------------------------------------------------------------------
Reconciliation of Segment Operating
Income Attributable to MPLX LP to
Income From Operations (unaudited)
Three Months Six Months Ended
Ended June 30
June 30
(In millions) 2017 2016 2017 2016
---------- ---------- ---------- ---------
L&S segment operating income
attributable to MPLX LP $ 208 $ 123 $ 364 $ 211
G&P segment operating income
attributable to MPLX LP((a)) 313 271 622 528
Segment portion attributable to
equity affiliates (38 ) (47 ) (78 ) (89 )
Segment portion attributable to
Predecessor((b)) - 80 53 142
Income (loss) from equity method
investments 1 (83 ) 6 (78 )
Other income - related parties 14 11 25 18
Unrealized derivative gains
(losses)((c)) 3 (12 ) 19 (21 )
Depreciation and amortization (164 ) (151 ) (351 ) (287 )
Impairment expense - (1 ) - (130 )
General and administrative expenses (57 ) (63 ) (115 ) (116 )
---------- ---------- ---------- ---------
Income from operations $ 280 $ 128 $ 545 $ 178
---------- ---------- ---------- ---------
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(a) All Partnership-operated, non-wholly owned subsidiaries are treated as if
they are consolidated.
(b) The operating income of 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, changes in the fair value of the derivative are recorded as an
unrealized gain or loss. When a derivative contract matures or is settled, the
previously recorded unrealized gain or loss is reversed and the realized gain or
loss of the contract is recorded.
-------------------------------------------------------------------------------
Reconciliation of Adjusted EBITDA
attributable to MPLX LP and DCF
attributable to GP and LP unitholders
from Net Income (Loss) (unaudited)
Three Months Six Months Ended
Ended June 30
June 30
(In millions) 2017 2016 2017 2016
--------- --------- ---------- ---------
Net income $ 191 $ 72 $ 378 $ 58
Depreciation and amortization 164 151 351 287
Provision (benefit) for income taxes 2 (8 ) 2 (12 )
Amortization of deferred financing
costs 13 12 25 23
Non-cash equity-based compensation 3 4 6 6
Impairment expense - 1 - 130
Net interest and other financial costs 74 52 140 109
(Income) loss from equity method
investments (1 ) 83 (6 ) 78
Distributions from unconsolidated
subsidiaries 33 40 66 78
Unrealized derivative (gains)
losses((a)) (3 ) 12 (19 ) 21
Acquisition costs - (2 ) 4 (1 )
--------- --------- ---------- ---------
Adjusted EBITDA 476 417 947 777
Adjusted EBITDA attributable to
noncontrolling interests (2 ) - (3 ) (1 )
Adjusted EBITDA attributable to
Predecessor((b)) - (66 ) (47 ) (123 )
--------- --------- ---------- ---------
Adjusted EBITDA attributable to MPLX
LP 474 351 897 653
Deferred revenue impacts 9 4 17 7
Net interest and other financial costs (74 ) (52 ) (140 ) (109 )
Maintenance capital expenditures (23 ) (20 ) (35 ) (33 )
Other 1 - - -
Portion of DCF adjustments
attributable to Predecessor((b)) - 2 2 3
--------- --------- ---------- ---------
DCF 387 285 741 521
Preferred unit distributions (17 ) (9 ) (33 ) (9 )
--------- --------- ---------- ---------
DCF attributable to GP and LP
unitholders $ 370 $ 276 $ 708 $ 512
--------- --------- ---------- ---------
-------------------------------------------------------------------------------
(a) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, changes in the fair value of the derivative are recorded as an
unrealized gain or loss. When a derivative contract matures or is settled, the
previously recorded unrealized gain or loss is reversed and the realized gain or
loss of the contract is recorded.
(b) The Adjusted EBITDA and DCF adjustments related to Predecessor are
excluded from adjusted EBITDA attributable to MPLX LP and DCF prior to the
acquisition dates.
-------------------------------------------------------------------------------
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 Six Months Ended
June 30 June 30
(In millions) 2017 2016 2017 2016
--------- --------- ---------- ---------
Net cash provided by operating
activities $ 467 $ 349 $ 844 $ 670
Changes in working capital items (50 ) 4 1 (9 )
All other, net (16 ) (5 ) (32 ) (22 )
Non-cash equity-based compensation 3 4 6 6
Net gain on disposal of assets 2 - 1 -
Net interest and other financial costs 74 52 140 109
Current income taxes 1 1 1 1
Asset retirement expenditures - 2 1 2
Unrealized derivative (gains)
losses((a)) (3 ) 12 (19 ) 21
Acquisition costs - (2 ) 4 (1 )
Other (2 ) - - -
--------- --------- ---------- ---------
Adjusted EBITDA 476 417 947 777
Adjusted EBITDA attributable to
noncontrolling interests (2 ) - (3 ) (1 )
Adjusted EBITDA attributable to
Predecessor((b)) - (66 ) (47 ) (123 )
--------- --------- ---------- ---------
Adjusted EBITDA attributable to MPLX
LP 474 351 897 653
Deferred revenue impacts 9 4 17 7
Net interest and other financial costs (74 ) (52 ) (140 ) (109 )
Maintenance capital expenditures (23 ) (20 ) (35 ) (33 )
Other 1 - - -
Portion of DCF adjustments
attributable to Predecessor((b)) - 2 2 3
--------- --------- ---------- ---------
DCF 387 285 741 521
Preferred unit distributions (17 ) (9 ) (33 ) (9 )
--------- --------- ---------- ---------
DCF attributable to GP and LP
unitholders $ 370 $ 276 $ 708 $ 512
--------- --------- ---------- ---------
---------------------------------------------------------- --------------------
(a) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, changes in the fair value of the derivative are recorded as an
unrealized gain or loss. When a derivative contract matures or is settled, the
previously recorded unrealized gain or loss is reversed and the realized gain or
loss of the contract is recorded.
(b) The Adjusted EBITDA and DCF adjustments related to Predecessor are
excluded from adjusted EBITDA attributable to MPLX LP and DCF prior to the
acquisition dates.
-------------------------------------------------------------------------------
Capital Expenditures (unaudited)
Three Months Six Months
Ended Ended
June 30 June 30
(In millions) 2017 2016 2017 2016
--------- --------- --------- --------
Capital Expenditures((a)):
Maintenance $ 23 $ 24 $ 35 $ 35
Growth 380 296 651 566
--------- --------- --------- --------
Total capital expenditures 403 320 686 601
Less: Increase (decrease) in capital
accruals 31 16 33 (7 )
Asset retirement expenditures - 2 1 2
--------- --------- --------- --------
Additions to property, plant and
equipment 372 302 652 606
Capital expenditures of unconsolidated
subsidiaries((b)) 81 16 205 60
--------- --------- --------- --------
Total gross capital expenditures 453 318 857 666
Less: Joint venture partner
contributions 59 6 93 29
--------- --------- --------- --------
Total capital expenditures, net 394 312 764 637
Less: Maintenance capital 24 24 36 35
--------- --------- --------- --------
Total growth capital expenditures $ 370 $ 288 $ 728 $ 602
--------- --------- --------- --------
-------------------------------------------------------------------------------
(a) Includes capital expenditures of 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 $ 600 $ 750
Depreciation and amortization 690 690
Net interest and other financial costs 380 380
Adjustment for equity investment earnings &
distributions 110 110
Unrealized derivative losses((a)) (20 ) (20 )
----------- ----------
Adjusted EBITDA 1,760 1,910
Adjusted EBITDA attributable to noncontrolling interests (10 ) (10 )
----------- ----------
Adjusted EBITDA attributable to MPLX LP 1,750 1,900
Deferred revenue impacts 35 35
Net interest and other financial costs (335 ) (335 )
Maintenance capital expenditures (150 ) (150 )
----------- ----------
DCF 1,300 1,450
Preferred unit distributions (65 ) (65 )
----------- ----------
DCF available to GP and LP unitholders $ 1,235 $ 1,385
----------- ----------
-------------------------------------------------------------------------------
(a) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, changes in the fair value of the derivative are recorded as an
unrealized gain or loss. When a derivative contract matures or is settled, the
previously recorded unrealized gain or loss is reversed and the realized gain or
loss of the contract is recorded.
-------------------------------------------------------------------------------
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 $ 1,450 $ 1,600
Changes in working capital items 45 45
All other, net (70 ) (70 )
Non-cash equity based compensation 15 15
Net cash interest and other financial costs 335 335
Asset retirement expenditures 5 5
Unrealized derivative losses((a)) (20 ) (20 )
----------- ----------
Adjusted EBITDA 1,760 1,910
Adjusted EBITDA attributable to noncontrolling interests (10 ) (10 )
----------- ----------
Adjusted EBITDA attributable to MPLX LP 1,750 1,900
Deferred revenue impacts 35 35
Net interest and other financial costs (335 ) (335 )
Maintenance capital expenditures (150 ) (150 )
----------- ----------
DCF 1,300 1,450
Preferred unit distributions (65 ) (65 )
----------- ----------
DCF available to GP and LP unitholders $ 1,235 $ 1,385
----------- ----------
-------------------------------------------------------------------- ----------
(a) The Partnership makes a distinction between realized or unrealized gains
and losses on derivatives. During the period when a derivative contract is
outstanding, changes in the fair value of the derivative are recorded as an
unrealized gain or loss. When a derivative contract matures or is settled, the
previously recorded unrealized gain or loss is reversed and the realized gain or
loss of the contract is recorded.
MPLX Q2 2017 Earnings Release:
http://hugin.info/155038/R/2123409/809904.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: 27.07.2017 - 12:50 Uhr
Sprache: Deutsch
News-ID 554225
Anzahl Zeichen: 62082
contact information:
Town:
FINDLAY
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"MPLX LP Reports Second-Quarter 2017 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
MPLX LP (Nachricht senden)
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