Market Overview

MPLX LP Reports Second-Quarter 2019 Financial Results

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FINDLAY, Ohio, Aug. 1, 2019 /PRNewswire/ --

  • Reported second quarter net income of $482 million and adjusted EBITDA of $920 million, both up 6% year-over-year
  • Reported net cash provided by operating activities of $834 million, 1.36x adjusted distribution coverage1, and 3.9x leverage
  • Closed acquisition of Andeavor Logistics on July 30
  • Announced plans to proceed with Whistler, a Permian natural gas pipeline
  • Signed definitive agreements for Wink-to-Webster, a Permian crude oil pipeline
  • Continued focus on portfolio optimization, which could include asset divestitures

MPLX LP (NYSE:MPLX) today reported second quarter 2019 net income attributable to MPLX of $482 million compared with $453 million for the second quarter of 2018. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $920 million compared with $867 million in the second quarter of 2018. Logistics and Storage (L&S) reported segment income from operations of $486 million and adjusted EBITDA of $569 million for the quarter, up $52 million and $43 million, respectively, versus the second quarter of last year. Gathering and Processing (G&P) reported segment income from operations of $173 million and adjusted EBITDA of $351 million for the quarter, down $1 million and up $10 million, respectively, on a year-over-year basis.

"MPLX successfully closed its acquisition of Andeavor Logistics on July 30th," said Gary R. Heminger, chairman and chief executive officer. "We plan to focus on three strategic initiatives. First, streamlining our capital expenditures focusing on the most attractive returns. Second, working with MPC on a portfolio optimization initiative, which could include asset divestitures. And third, using proceeds from any divestitures for general purposes, such as investments in high-return projects as well as debt reduction."

During the quarter, MPLX generated $834 million in net cash provided by operating activities and distributable cash flow of $741 million, which provided adjusted distribution coverage1 of 1.36x and resulted in 3.9x leverage. MPLX also announced its 26th consecutive distribution increase to $0.6675 per common unit, a $0.01 increase over the prior quarter and a 6.4 percent increase over the prior year second quarter.

(1) Adjusted distribution coverage does not include distributable cash flow from ANDX or distributions paid to converted ANDX unitholders post-close

 

Financial Highlights



Three Months Ended

 June 30



Six Months Ended

 June 30

(In millions, except per unit and ratio data)


2019



2018



2019


2018


Net income attributable to MPLX


$

482



$

453



$

985


$

874


Adjusted EBITDA attributable to MPLX(a)


920



867



1,850


1,627


Net cash provided by operating activities


834



840



1,452


1,290


Distributable cash flow ("DCF")(a)


741



695



1,498


1,314


Distribution per common unit(b)


$

0.6675



$

0.6275



$

1.3250


$

1.2450


Distribution coverage ratio(c)


1.01x



1.36x



1.18x


1.33x


Adjusted distribution coverage ratio(c)(d)


1.36x



N/A



1.38x


N/A


Consolidated debt to adjusted EBITDA(e)


3.9x



3.7x



N/A


N/A














(a)

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

(b)

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

(c)

Non-GAAP measure. See calculation below. Includes distributions in respect of common units and preferred units issued in connection with the acquisition of ANDX on July 30, 2019 to MPLX DCF as reported above.

(d)

Non-GAAP measure. See calculation below. Excludes distributions in respect of common units and preferred units issued in connection with the acquisition of ANDX on July 30, 2019. Such units were issued prior to the record dates for the respective units.

(e)

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

Segment Results

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