Market Overview

MPLX LP Delivers Extraordinary Results in 2018

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FINDLAY, Ohio, Feb. 7, 2019 /PRNewswire/ -- 

  • Reported record full-year net income of $1.8 billion and adjusted EBITDA of $3.5 billion, an increase of $1.0 billion and $1.5 billion, respectively, compared to 2017
    • Logistics & Storage (L&S): expanded earnings base through completion of dropdowns, pipeline expansions, and acquisition of an export terminal
    • Gathering & Processing (G&P): added 11 plants with 1.5 billion-cubic-feet-per-day of processing and 100,000 barrels-per-day of fractionation capacity
  • $2.8 billion in net cash provided by operating activities supported the return of nearly $2.1 billion to unitholders
  • Maintained capital discipline and improved financial profile by increasing distribution coverage to 1.36x while keeping leverage below 4.0x

MPLX LP (NYSE:MPLX) today reported fourth quarter 2018 net income attributable to MPLX of $434 million and full-year 2018 net income attributable to MPLX of $1.8 billion, compared with $238 million and $0.8 billion for the fourth quarter and full year 2017, respectively, which was an increase of $1.0 billion on a year-over-year basis. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $3.5 billion for the full year, which was nearly $1.5 billion higher than 2017. The increase was driven by dropdowns in the L&S segment and strong base business performance across both segments.

"2018 was a transformational year for MPLX," said Gary R. Heminger, chairman and chief executive officer. "Our team executed on the strategic vision outlined at the beginning of the year by significantly growing the business, enhancing the stability of the cash flow profile, and simplifying our financial structure.

"Looking forward, we continue to focus on increasing our presence throughout the midstream value chain as well as developing assets that generate third-party revenue. We announced a number of compelling new projects, including anticipated investments in multiple long-haul pipelines and export facilities that we expect to deliver long-term attractive returns for our shareholders and position the company for success in 2019 and beyond."

For the year, the company generated $2.8 billion in net cash provided by operating activities and distributable cash flow of $2.8 billion, returning $2.1 billion to unitholders. Consistent with its self-funding strategy, the company did not issue any public equity in 2018 and ended the year with leverage of 3.9x.

Financial Highlights



Three Months Ended
 Dec. 31



Year Ended
 Dec. 31

(In millions, except per unit and ratio data)


2018



2017



2018



2017

Net income attributable to MPLX(a)


$

434




$

238




$

1,818




$

794


Adjusted EBITDA attributable to MPLX(b)


911




569




3,475




2,004


Net cash provided by operating activities


799




569




2,826




1,907


Distributable cash flow ("DCF")(b)


701




445




2,781




1,628


Distribution per common unit(c)


$

0.6475




$

0.6075




$

2.5300




$

2.2975


Distribution coverage ratio(d)


1.32x




1.24x




1.36x




1.28x


Consolidated debt to adjusted EBITDA(e)


3.9x




3.6x




3.9x




3.6x
















(a)

Includes $60 million of debt extinguishment charges.

(b)

Non-GAAP measure calculated before distributions to preferred unitholders. See reconciliation below.

(c)

Distributions declared by the board of directors of MPLX's general partner.

(d)

Non-GAAP measure. See calculation below.

(e)

Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. See reconciliation below.

Duri

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