10-QPeriod: Q3 FY2014

MPLX LP Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 3, 2014For Securities:MPLXMPLXP

Summary

MPLX LP's third-quarter 2014 report shows solid growth, with total revenues and other income reaching $138.0 million, a 11.5% increase year-over-year. Net income attributable to MPLX LP grew by 35.3% to $29.1 million for the quarter, and diluted earnings per common unit rose to $0.37 from $0.29 in the prior year. This performance was driven by increased sales to related parties, particularly MPC, and improved tariff rates. The company also saw a significant increase in its investment in Pipe Line Holdings, raising its interest to 69% through acquisitions funded by debt and cash, signaling a strategic move to consolidate midstream assets. Liquidity remains adequate, with $32.2 million in cash and cash equivalents and $245.0 million in unused revolving credit availability. While capital expenditures were reduced for the full year 2014 due to cost efficiencies, the company continues to invest in expansion projects. MPLX LP also announced a quarterly cash distribution of $0.3575 per unit, representing a 4% increase from the previous quarter and a 20% increase year-over-year, underscoring its commitment to returning value to unitholders and supporting an attractive distribution growth profile.

Financial Highlights

32 data points
Beta

Revenue

$131.00M

Net Income

$30.00M

22.9% Net Margin

Total Assets

$1.19B

Cash & Equivalents

$32.20M

Free Cash Flow

$28.00M

Financial Statements
Beta
Revenue$131.00M
Operating Expenses$93.80M
Operating Income$61.00M
Net Income$30.00M

Key Highlights

  • 1Net income attributable to MPLX LP increased by 35.3% to $29.1 million for the three months ended September 30, 2014, compared to $21.5 million in the prior year period.
  • 2Diluted earnings per common unit increased to $0.37 for the three months ended September 30, 2014, up from $0.29 in the same period of 2013.
  • 3MPLX LP increased its ownership in Pipe Line Holdings to 69% through a March 1, 2014 acquisition, funded by $270 million in debt and $40 million in cash.
  • 4Total revenues and other income grew by 11.5% to $138.0 million for the quarter ended September 30, 2014, compared to $123.8 million in the prior year.
  • 5The company declared a quarterly cash distribution of $0.3575 per unit, an increase of 4% from the previous quarter and 20% from the prior year's third quarter.
  • 6MPLX LP reported $245.0 million in unused revolving credit availability as of September 30, 2014, indicating strong liquidity.
  • 7Sales to related parties (primarily MPC) increased significantly by $16.3 million in the third quarter, driven by higher average tariffs and volume deficiency credits.

Frequently Asked Questions

MPLX LP is a fee-based, growth-oriented master limited partnership focused on owning, operating, developing, and acquiring pipelines and other midstream assets for the transportation and storage of crude oil, refined products, and other hydrocarbon-based products.

MPLX LP increased its ownership in Pipe Line Holdings from 56% to 69% on March 1, 2014, through an acquisition of a 13% interest from MPC for $310 million. This acquisition was financed by $270 million in borrowings and $40 million in cash.

MPC is the sponsor of MPLX LP and a significant related party. MPLX LP's operations are integral to MPC's success, and MPC accounts for a substantial portion of MPLX LP's revenues and expenses through various commercial agreements. MPC also holds a significant ownership interest in MPLX LP.

MPLX LP demonstrated strong performance in the third quarter of 2014. Net income attributable to MPLX LP increased by 35.3% year-over-year, and total revenues and other income grew by 11.5%, primarily driven by increased volumes and higher average tariffs, especially from related party transactions.