10-KPeriod: FY2014

MPLX LP Annual Report, Year Ended Dec 31, 2014

Filed February 27, 2015For Securities:MPLXMPLXP

Summary

MPLX LP's 2015 10-K filing details its business as a fee-based, growth-oriented master limited partnership focused on midstream assets, primarily pipelines and storage for crude oil and refined products. Formed by Marathon Petroleum Corporation (MPC), MPLX generates revenue through transportation tariffs and storage fees, operating under long-term, fee-based agreements with MPC that provide stable cash flows and minimum volume commitments. In 2014, MPLX significantly accelerated its growth strategy, evidenced by increased ownership in Pipe Line Holdings and new credit facilities. The company highlighted its commitment to increasing scale, funding organic projects, and pursuing acquisitions independently from its sponsor. MPLX aims to support an average annual distribution growth rate in the mid-20s over the next five years. The filing also detailed the company's extensive asset base across the Midwest and Gulf Coast regions and its strategic relationship with MPC, which underpins a substantial portion of its revenue and provides opportunities for future growth.

Financial Highlights

37 data points
Beta

Revenue

$793.00M

Net Income

$121.00M

15.3% Net Margin

Total Assets

$1.21B

Cash & Equivalents

$27.00M

Free Cash Flow

$193.00M

Financial Statements
Beta
Revenue$793.00M
Operating Expenses$548.00M
Operating Income$245.00M
Net Income$121.00M

Key Highlights

  • 1MPLX LP operates as a fee-based midstream MLP, generating revenue primarily through transportation tariffs and storage fees.
  • 2The company has a strong, strategic relationship with its sponsor, Marathon Petroleum Corporation (MPC), which accounts for the substantial majority of its revenues.
  • 3MPLX completed significant transactions in 2014, including increasing its interest in Pipe Line Holdings, indicating a strategy to accelerate growth and expand its operational scale.
  • 4The company has a stable and predictable cash flow profile due to long-term agreements with MPC, including minimum volume commitments.
  • 5MPLX's asset base is strategically located in key refining and demand regions in the Midwest and Gulf Coast of the United States.
  • 6The company announced plans to accelerate growth and evolve into a large-cap, diversified MLP, with a stated goal of supporting mid-20s average annual distribution growth over the next five years.
  • 7MPLX closed a public offering of unsecured senior notes in February 2015, raising $500 million, and used proceeds to repay borrowings under its credit facility.

Frequently Asked Questions

MPLX LP operates as a fee-based master limited partnership focused on midstream assets, primarily pipelines and storage for crude oil and refined products. Its revenue is generated through transportation tariffs and storage fees, largely under long-term, fee-based agreements with its sponsor, Marathon Petroleum Corporation (MPC), which include minimum volume commitments.

In 2014, MPLX significantly advanced its growth strategy by increasing its ownership in Pipe Line Holdings and securing new credit facilities. The company announced plans to accelerate its growth to become a large-cap, diversified MLP, aiming to fund organic projects and pursue acquisitions independently from MPC. The stated goal is to support an average annual distribution growth rate in the mid-20s over the next five years.

MPLX is highly dependent on MPC, as MPC accounts for the substantial majority of MPLX's revenues. MPC owns a significant stake in MPLX and has a stated intent to use MPLX to grow its midstream business, providing MPLX with substantial growth opportunities and a stable base of cash flows.

As of December 31, 2014, MPLX had $27.3 million in cash and cash equivalents and $692.3 million in total liquidity, including $665.0 million available under its credit facilities. The company had total long-term debt of $644.8 million, a significant increase from the prior year primarily due to financing acquisitions. MPLX reported net income of $121.3 million attributable to MPLX LP for the year.