MPLX LP Reports Record Third-Quarter 2017 Financial Results
(Thomson Reuters ONE) -
* Reported record third-quarter net income of $216 million and adjusted EBITDA
of $538 million
* Reported third-quarter net cash from operating activities of $494 million
and distributable cash flow of $442 million
* Achieved record gathered, processed and fractionated volumes
* Declared 19th consecutive quarterly distribution increase to $0.5875 per
common unit
* Completed acquisition of joint-interest ownership in certain pipeline and
storage facilities from sponsor Marathon Petroleum Corp.
* Evaluating MPC's offer of remaining dropdown
FINDLAY, Ohio, Oct. 26, 2017 - MPLX LP (NYSE: MPLX) today reported record third-
quarter 2017 net income attributable to MPLX of $216 million compared with $141
million in the third quarter of 2016.
"MPLX delivered strong earnings and cash flow in the third quarter, setting
multiple quarterly financial records," said Gary R. Heminger, MPLX chairman and
chief executive officer. "Results were driven by record volumes in our gathering
and processing operations and solid contributions from our logistics and storage
assets."
MPLX ended the quarter with strong distribution coverage of 1.33 times and debt-
to-pro forma adjusted EBITDA of 3.6 times. Higher earnings and cash flow
combined with a disciplined approach to capital investments have increased the
partnership's capacity to fund organic growth with debt and retained cash. As a
result, there were no new at-the-market (ATM) transactions during the third
quarter.
On Sept. 1, the partnership acquired joint-interest ownership in certain
pipeline and storage facilities from sponsor Marathon Petroleum Corp. (NYSE:
MPC), for total consideration of $1.05 billion. The remaining identified
dropdown, which includes refining logistics assets and fuels distribution
services, with total projected annual earnings before interest, taxes,
depreciation and amortization (EBITDA) of $1 billion has been offered to MPLX
and referred to the conflicts committee of the MPLX board of directors. The
transaction is expected to close in the first quarter of 2018.
In conjunction with the closing of this last dropdown, MPLX expects to exchange
newly issued common units for MPC's general partner (GP) economic interests,
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 support its attractive distribution growth capabilities over the long term.
The planned dropdown and the buy-in of the IDRs are subject to requisite
approvals, market and other conditions, including tax and other regulatory
clearances.
"We are enthusiastic about our portfolio of organic projects in the most
prolific and economic shale plays in the nation and the bold course of strategic
actions expected to close by the end of the first quarter," Heminger said. "As
one of the energy sector's largest diversified master limited partnerships, MPLX
is well-positioned to deliver attractive and sustainable long-term returns,
enhanced further once the IDR obligation is eliminated."
The Gathering and Processing (G&P) segment continues to build on its strong
footprint in the Marcellus, Permian and STACK shale plays. Total Northeast
processing capacity has increased to approximately 5.8 billion cubic feet per
day (cfd), up 400 million cfd, an increase of 7 percent, since the beginning of
the year.
Additionally, the partnership expects to add approximately 1.5 billion cfd of
processing capacity, an increase of 19 percent, in 2018. Of that, approximately
1.2 billion cfd is in the Northeast and approximately 300 million cfd is in the
Southwest, which includes the Argo gas processing plant in the Delaware basin
and the Omega gas processing plant in the STACK shale play of Oklahoma.
During the quarter, the Logistics and Storage (L&S) segment benefited from the
first full quarter of earnings from its indirect interest in the Bakken Pipeline
system, which includes the Dakota Access Pipeline. Initial cash distributions
related to this investment also were received during the quarter. MPLX also
continued to benefit from its recent acquisition of the Ozark pipeline. The
project to expand the Ozark pipeline is progressing and is expected to be
completed in mid-2018, further expanding the partnership's throughput capacity
and earnings base.
Financial Highlights
-------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
(In millions, except per
unit and ratio data) 2017 2016 2017 2016
------------ ------------ ------------ -----------
Net income attributable to
MPLX((a)(b)) $ 216 $ 141 $ 556 $ 100
Adjusted EBITDA attributable
to MPLX((c)) 538 375 1,435 1,028
Net cash provided by
operating activities((b)) 494 305 1,338 975
Distributable cash flow
("DCF")((c)) 442 301 1,183 822
Distribution per common
unit((d)) 0.5875 0.5150 1.6900 1.5300
Distribution coverage
ratio((e)) 1.33x 1.22x 1.29x 1.22x
Growth capital
expenditures((f)) 390 332 1,118 934
-------------------------------------------------------------------------------
(a) The nine months ended Sept. 30, 2016, includes a pretax, non-cash
impairment charge of $89 million related to an equity method investment. The
nine months ended Sept. 30, 2016, include a pretax, non-cash impairment charge
of $130 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 capital expenditures table below.
Operational Highlights
· Reported record gathered volumes in the Marcellus and Utica of 2.3
billion cubic feet per day, a 25 percent increase for the third quarter of 2017
compared with the third quarter of 2016.
· Reported record processed volumes in the Marcellus and Utica of 5 billion
cubic feet per day, a 15 percent increase for the third quarter of 2017 compared
with the third quarter of 2016.
· Reported record fractionated volumes in the Marcellus and Utica of
365,000 barrels per day, a 16 percent increase for the third quarter of 2017
versus the third quarter of 2016.
· Operated near full utilization at the Sherwood complex with Sherwood IX
processing plant expected to be in service in the first quarter of 2018.
· Commenced operations of the Harpster-to-Lima pipeline and expansions to
the East Sparta-to-Heath and Heath-to-Harpster pipelines, and added connectivity
via the Wabash-to-Cochin pipeline connection.
Financial Position and Liquidity
As of Sept. 30, MPLX had $3 million in cash, approximately $1.8 billion
available through its bank revolving credit facility expiring in July 2022, and
$298 million available through its credit facility with MPC. MPLX received net
proceeds of approximately $39 million related to its ATM program for second-
quarter commitments that settled in the third quarter. No additional common
units were issued through this program in the third quarter.
The partnership's $2.1 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 3.6 times at Sept.
30, 2017. MPLX remains committed to maintaining an investment-grade credit
profile.
Forecast
With one quarter remaining in the year, MPLX's 2017 financial forecast has not
been revised. The partnership anticipates finishing the year above the high end
of the ranges provided in the second-quarter 2017 earnings materials with the
exception of capital expenditures, which are forecast to be below the range
provided. In addition, the partnership expects 2017 distribution growth of
approximately 12 percent over the full-year 2016 distributions. For 2018, the
partnership expects double-digit distribution growth.
Segment Results
-------------------------------------------------------------------------------
Segment operating income attributable to
MPLX LP (unaudited)
Three Months Nine Months
Ended Ended
Sept. 30 Sept. 30
(In millions) 2017 2016 2017 2016
--------- --------- --------- --------
Logistics and Storage((a)) $ 213 $ 124 $ 577 $ 335
Gathering and Processing((a)) 349 293 971 821
-------------------------------------------------------------------------------
(a) See reconciliation below for details.
L&S segment operating income increased for the third 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.
G&P segment operating income increased for the third quarter of 2017 compared
with the same period in 2016. The increase was predominantly due to record
gathered, processed and fractionated volumes, but also included a benefit from
increased 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 1-888-606-5719 (confirmation number
6033306) or by visiting MPLX's website at
http://www.mplx.com and clicking on the "2017 Third-Quarter Financial Results"
link in the "News & Headlines" section. Replays of the conference call will be
available on MPLX's website through Thursday, Nov. 9. 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 5.9 billion cubic feet per day of gathering
capacity, 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 considering principal payments of debt and certain
capital expenditures; (ix) distributions of cash received from equity method
investments to MPC; (x) unrealized derivative losses (gains); and (xi)
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 and our
value creation plans. 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
and/or the general partner economic interests; the adequacy of MPLX's capital
resources and liquidity, including, but not limited to, availability of
sufficient cash flow to pay distributions and access to debt to fund anticipated
dropdowns on commercially reasonable terms, 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; our ability to manage disruptions in credit
markets or changes to our credit rating; 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 and/or the general partner economic interests; 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; the impact of adverse market
conditions affecting MPLX's midstream business; 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 Nine Months Ended
(unaudited) Sept. 30 Sept. 30
(In millions, except per unit
data) 2017 2016((a)) 2017 2016((a))
---------- ------------- ----------- ------------
Revenues and other income:
Operating revenue $ 585 $ 485 $ 1,665 $ 1,325
Operating revenue - related
parties 348 323 1,014 856
Income (loss) from equity
method investments 23 6 29 (72 )
Other income 24 24 74 72
---------- ------------- ----------- ------------
Total revenues and other
income 980 838 2,782 2,181
Costs and expenses:
Operating expenses 318 252 866 681
Operating expenses - related
parties 114 109 331 287
Depreciation and amortization 164 151 515 438
Impairment expense - - - 130
General and administrative
expenses 59 56 174 172
Other taxes 14 12 40 37
---------- ------------- ----------- ------------
Total costs and expenses 669 580 1,926 1,745
---------- ------------- ----------- ------------
Income from operations 311 258 856 436
Interest and other financial
costs 93 64 258 196
-------- ----------- --------- ----------
Income before income taxes 218 194 598 240
Provision (benefit) for
income taxes 1 - 3 (12 )
---------- ------------- ----------- ------------
Net income 217 194 595 252
Less: Net income attributable
to noncontrolling interests 1 2 3 3
Less: Net income attributable
to Predecessor - 51 36 149
---------- ------------- ----------- ------------
Net income attributable to
MPLX LP 216 141 556 100
Less: Preferred unit
distributions 16 16 49 25
Less: General partner's
interest in net income
attributable to MPLX LP 86 51 222 136
---------- ------------- ----------- ------------
Limited partners' interest in
net income (loss)
attributable to MPLX LP $ 114 $ 74 $ 285 $ (61 )
---------- ------------- ----------- ------------
Per Unit Data
Net income (loss)
attributable to MPLX LP per
limited partner unit:
Common - basic $ 0.29 $ 0.22 $ 0.75 $ (0.19 )
Common - diluted 0.29 0.21 0.75 (0.19 )
Weighted average limited
partner units outstanding:
Common units - basic 394 341 378 324
Common units - diluted 395 346 381 324
-------------------------------------------------------------------------------
(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 Nine Months Ended
Ended Sept. 30
Sept. 30
(In millions, except ratio data) 2017 2016 2017 2016
---------- ---------- ------------ ----------
Distribution declared:
Common units (LP) - public $ 170 $ 135 $ 481 $ 393
Common units - MPC 54 44 152 114
Common units - General partner
(GP) 8 - 15 -
GP units - MPC 7 5 18 13
Incentive distribution rights -
MPC 81 49 211 135
---------- ---------- ------------ ----------
Total GP and LP distribution
declared 320 233 877 655
---------- ---------- ------------ ----------
Redeemable preferred units((a)) 16 16 49 25
---------- ---------- ------------ ----------
Total distribution declared $ 336 $ 249 $ 926 $ 680
---------- ---------- ------------ ----------
Distribution coverage ratio((b)) 1.33x 1.22x 1.29x 1.22x
Cash Flow Data
Net cash flow provided by (used
in):
Operating activities $ 494 $ 305 $ 1,338 $ 975
Investing activities (433 ) (289 ) (1,837 ) (892 )
Financing activities (351 ) 157 268 82
Other Financial Data
Adjusted EBITDA attributable to
MPLX LP((c)) $ 538 $ 375 $ 1,435 $ 1,028
DCF attributable to GP and LP
unitholders((c)) 426 285 1,134 797
-------------------------------------------------------------------------------
(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. 31
Sept.
(In millions, except ratio data) 30, 2017 2016((d))
---------------- ------------
Cash and cash equivalents $ 3 $ 234
Total assets 19,238 17,509
Total debt((a)) 7,051 4,423
Redeemable preferred units 1,000 1,000
Total equity 10,086 11,110
Consolidated total debt to LTM pro forma adjusted
EBITDA((b)) 3.6x 2.9x
Partnership units outstanding:
GP units 8 7
Class B units((c)) - 4
MPC-held common units 95 86
GP-held common units 23 -
Public common units 289 271
-------------------------------------------------------------------------------
(a) Total debt includes $202 million of outstanding intercompany borrowings
classified in current liabilities as of Sept. 30, 2017.
(b) Calculated using face value total debt and LTM pro forma adjusted EBITDA,
which is pro forma for acquisitions. Face value total debt includes
approximately $428 million and $435 million of unamortized discount and debt
issuance costs as of Sept. 30, 2017, and Dec. 31, 2016, respectively.
(c) Class B units were issued to and were 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 $6.20 in cash for each
Class B unit in two equal installments, on July 1, 2016 and 2017. Class B units
did not receive distributions.
(d) Financial information has been retrospectively adjusted to include the
results of HST, WHC and MPLXT prior to the March 1, 2017, acquisition from MPC,
since MPLX and these businesses are under common control.
-------------------------------------------------------------------------------
Operating
Statistics
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
% %
2017 2016 Change 2017 2016 Change
----------- ----------- -------- ----------- ----------- -------
Logistics
and Storage
Pipeline
throughput
(thousands
of barrels
per
day)((a))
Crude oil
pipelines 2,046 1,775 15 % 1,901 1,665 14 %
Product
pipelines 1,131 992 14 % 1,051 989 6 %
----------- ----------- -------- ----------- ----------- -------
Total
pipelines 3,177 2,767 15 % 2,952 2,654 11 %
Average
tariff rates
($ per
barrel)((a))
Crude oil
pipelines $ 0.54 $ 0.55 (2 )% $ 0.57 $ 0.57 - %
Product
pipelines 0.75 0.69 9 % 0.74 0.67 10 %
Total
pipelines 0.62 0.60 3 % 0.63 0.61 3 %
Terminal
throughput
(thousands
of barrels
per day) 1,496 - 1,517 (1 )% 1,470 1,510 (3 )%
Barges at
period-end 232 217 7 % 232 217 7 %
Towboats at
period-end 18 18 - % 18 18 - %
Gathering
and
Processing
Gathering
throughput
(mmcf/d)
Marcellus
Operations 1,005 946 6 % 965 922 5 %
Utica
Operations 1,324 916 45 % 1,065 936 14 %
Southwest
Operations 1,400 1,444 (3 )% 1,385 1,455 (5 )%
----------- ----------- -------- ----------- ----------- -------
Total
gathering
throughput 3,729 3,306 13 % 3,415 3,313 3 %
Natural gas
processed
(mmcf/d)
Marcellus
Operations 3,986 3,273 22 % 3,778 3,166 19 %
Utica
Operations 1,000 1,050 (5 )% 982 1,068 (8 )%
Southwest
Operations 1,331 1,339 (1 )% 1,310 1,209 8 %
Southern
Appalachian
Operations 264 244 8 % 266 248 7 %
----------- ----------- -------- ----------- ----------- -------
Total
natural gas
processed 6,581 5,906 11 % 6,336 5,691 11 %
C2 + NGLs
fractionated
(mbpd)
Marcellus
Operations 326 274 19 % 310 254 22 %
Utica
Operations 39 41 (5 )% 40 43 (7 )%
Southwest
Operations 18 19 (5 )% 19 17 12 %
Southern
Appalachian
Operations 14 14 - % 15 16 (6 )%
----------- ----------- -------- ----------- ----------- -------
Total C2 +
NGLs
fractionated 397 348 14 % 384 330 16 %
-------------------------------------------------------------------------------
(a) Pipeline throughput and tariff rates for the three and nine months ended
Sept. 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 Nine Months Ended
Ended Sept. 30
Sept. 30
(In millions) 2017 2016 2017 2016
---------- ---------- ---------- ---------
L&S segment operating income
attributable to MPLX LP $ 213 $ 124 $ 577 $ 335
G&P segment operating income
attributable to MPLX LP((a)) 349 293 971 821
Segment portion attributable to
equity affiliates (47 ) (41 ) (125 ) (130 )
Segment portion attributable to
Predecessor((b)) - 74 53 216
Income (loss) from equity method
investments 23 6 29 (72 )
Other income - related parties 13 11 38 29
Unrealized derivative (losses)
gains((c)) (17 ) (2 ) 2 (23 )
Depreciation and amortization (164 ) (151 ) (515 ) (438 )
Impairment expense - - - (130 )
General and administrative expenses (59 ) (56 ) (174 ) (172 )
---------- ---------- ---------- ---------
Income from operations $ 311 $ 258 $ 856 $ 436
---------- ---------- ---------- ---------
-------------------------------------------------------------------------------
(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 Nine Months Ended
Ended Sept. 30
Sept. 30
(In millions) 2017 2016 2017 2016
--------- --------- ----------- ----------
Net income $ 217 $ 194 $ 595 $ 252
Depreciation and amortization 164 151 515 438
Provision (benefit) for income taxes 1 - 3 (12 )
Amortization of deferred financing
costs 13 11 38 34
Non-cash equity-based compensation 4 3 10 9
Impairment expense - - - 130
Net interest and other financial
costs 80 53 220 162
(Income) loss from equity method
investments (23 ) (6 ) (29 ) 72
Distributions from unconsolidated
subsidiaries 70 33 136 111
Distributions of cash received from
equity method investments to MPC (13 ) - (13 ) -
Other adjustments to equity method
investment distributions 8 - 8 -
Unrealized derivative losses
(gains)((a)) 17 2 (2 ) 23
Acquisition costs 2 - 6 (1 )
--------- --------- ----------- ----------
Adjusted EBITDA 540 441 1,487 1,218
Adjusted EBITDA attributable to
noncontrolling interests (2 ) (2 ) (5 ) (3 )
Adjusted EBITDA attributable to
Predecessor((b)) - (64 ) (47 ) (187 )
--------- --------- ----------- ----------
Adjusted EBITDA attributable to MPLX
LP 538 375 1,435 1,028
Deferred revenue impacts 8 1 25 8
Net interest and other financial
costs (80 ) (53 ) (220 ) (162 )
Maintenance capital expenditures (24 ) (25 ) (59 ) (58 )
Other - (2 ) - (2 )
Portion of DCF adjustments
attributable to Predecessor((b)) - 5 2 8
--------- --------- ----------- ----------
DCF 442 301 1,183 822
Preferred unit distributions (16 ) (16 ) (49 ) (25 )
--------- --------- ----------- ----------
DCF attributable to GP and LP
unitholders $ 426 $ 285 $ 1,134 $ 797
--------- --------- ----------- ----------
-------------------------------------------------------------------------------
(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 Nine Months Ended
Sept. 30 Sept. 30
(In millions) 2017 2016 2017 2016
--------- --------- ----------- ----------
Net cash provided by operating
activities $ 494 $ 305 $ 1,338 $ 975
Changes in working capital items (42 ) 68 (41 ) 59
All other, net (11 ) 4 (43 ) (18 )
Non-cash equity-based compensation 4 3 10 9
Net gain on disposal of assets - 1 1 1
Net interest and other financial
costs 80 53 220 162
Current income taxes - 3 1 4
Asset retirement expenditures 1 2 2 4
Unrealized derivative losses
(gains)((a)) 17 2 (2 ) 23
Acquisition costs 2 - 6 (1 )
Distributions of cash received from
equity method investments to MPC (13 ) - (13 ) -
Other adjustments to equity method
investment distributions 8 - 8 -
--------- --------- ----------- ----------
Adjusted EBITDA 540 441 1,487 1,218
Adjusted EBITDA attributable to
noncontrolling interests (2 ) (2 ) (5 ) (3 )
Adjusted EBITDA attributable to
Predecessor((b)) - (64 ) (47 ) (187 )
--------- --------- ----------- ----------
Adjusted EBITDA attributable to MPLX
LP 538 375 1,435 1,028
Deferred revenue impacts 8 1 25 8
Net interest and other financial
costs (80 ) (53 ) (220 ) (162 )
Maintenance capital expenditures (24 ) (25 ) (59 ) (58 )
Other - (2 ) - (2 )
Portion of DCF adjustments
attributable to Predecessor((b)) - 5 2 8
--------- --------- ----------- ----------
DCF 442 301 1,183 822
Preferred unit distributions (16 ) (16 ) (49 ) (25 )
--------- --------- ----------- ----------
DCF attributable to GP and LP
unitholders $ 426 $ 285 $ 1,134 $ 797
--------- --------- ----------- ----------
-------------------------------------------------------- ----------------------
(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 Nine Months Ended
Ended Sept. 30
Sept. 30
(In millions) 2017 2016 2017 2016
--------- --------- ----------- ----------
Capital Expenditures((a)):
Maintenance $ 24 $ 23 $ 59 $ 58
Growth 351 323 1,002 889
--------- --------- ----------- ----------
Total capital expenditures 375 346 1,061 947
Less: Increase in capital accruals 22 7 55 -
Asset retirement expenditures 1 2 2 4
--------- --------- ----------- ----------
Additions to property, plant and
equipment 352 337 1,004 943
Capital expenditures of
unconsolidated subsidiaries((b)) 101 34 306 94
--------- --------- ----------- ----------
Total gross capital expenditures 453 371 1,310 1,037
Less: Joint venture partner
contributions 39 16 132 45
--------- --------- ----------- ----------
Total capital expenditures, net 414 355 1,178 992
Less: Maintenance capital 24 23 60 58
--------- --------- ----------- ----------
Total growth capital expenditures $ 390 $ 332 $ 1,118 $ 934
--------- --------- ----------- ----------
-------------------------------------------------------------------------------
(a) Includes capital expenditures of Predecessor for all periods presented.
(b) Capital expenditures includes amounts related to unconsolidated,
partnership-operated subsidiaries.
MPLX Q3 2017 Earnings Release:
http://hugin.info/155038/R/2144742/822042.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: 26.10.2017 - 12:50 Uhr
Sprache: Deutsch
News-ID 565448
Anzahl Zeichen: 55537
contact information:
Town:
FINDLAY
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"MPLX LP Reports Record Third-Quarter 2017 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
MPLX LP (Nachricht senden)
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