Summary
MPLX LP (MPLX) reported strong financial and operational performance for the year ended December 31, 2018, benefiting from significant "dropdown" acquisitions from its sponsor, Marathon Petroleum Corporation (MPC). These acquisitions, primarily of Refining Logistics and Fuels Distribution assets, substantially increased MPLX's scale and diversified its midstream infrastructure and services. The company's Logistics and Storage (L&S) segment saw a significant surge in Adjusted EBITDA, largely driven by these newly acquired assets, while the Gathering and Processing (G&P) segment also demonstrated growth in throughput volumes and facility utilization. Financially, MPLX successfully executed a series of debt financings, raising substantial capital to support its growth initiatives and refinance existing debt. The company maintained its investment-grade credit profile throughout the year. Management highlighted a focus on enhancing cash flow stability through fee-based services and long-term contracts, with fee-based contracts expected to constitute approximately 95% of its net operating margin. The strategic relationship with MPC remains a key driver of MPLX's business, providing a stable revenue stream and a platform for continued growth through asset dropdowns and organic development projects.
Financial Highlights
38 data points| Revenue | $7.00B |
| Operating Expenses | $4.28B |
| Operating Income | $2.73B |
| Net Income | $1.82B |
Key Highlights
- 1MPLX completed significant "dropdown" acquisitions from MPC in 2018, notably Refining Logistics and Fuels Distribution, bolstering its midstream asset base.
- 2Adjusted EBITDA for the Logistics and Storage (L&S) segment increased by 165% year-over-year, largely due to the acquired assets.
- 3The Gathering and Processing (G&P) segment also experienced growth, with gathering volumes up 26%, processing volumes up 9%, and fractionated volumes up 16% compared to 2017.
- 4MPLX successfully raised substantial capital through senior note offerings totaling $7.75 billion in 2018, primarily used for debt repayment and general business purposes.
- 5The company continued to execute its organic growth plan with ongoing projects to expand pipelines, processing capacity, and fractionation facilities.
- 6MPLX maintained its investment-grade credit profile, with credit ratings from Moody's, Fitch, and S&P at or above investment grade.
- 7The elimination of the general partner's incentive distribution rights (IDRs) and conversion of its economic general partner interest to a non-economic interest in February 2018 simplified the capital structure and reduced distribution requirements.