10-QPeriod: Q3 FY2015

MPLX LP Quarterly Report for Q3 Ended Sep 30, 2015

Filed November 2, 2015For Securities:MPLXMPLXP

Summary

MPLX LP's third quarter 2015 report highlights continued growth and strategic development. The company reported increased revenues and income from operations, reflecting strong performance in its fee-based midstream operations. A significant development during the quarter was the announcement of the proposed merger with MarkWest Energy Partners, L.P. (MWE), a transaction expected to significantly expand MPLX's scale and geographic reach within the natural gas gathering and processing sector. Financially, MPLX demonstrated solid operational cash flow, which supported both capital expenditures for ongoing projects and distributions to unitholders. The company also secured additional financing, enhancing its liquidity position. The conversion of subordinated units to common units also represented a step towards a more simplified capital structure. Investors should note the ongoing integration efforts and the potential impact of the MWE merger on future growth and profitability.

Financial Highlights

33 data points
Beta

Revenue

$214.00M

Net Income

$41.00M

19.2% Net Margin

Total Assets

$1.39B

Cash & Equivalents

$90.00M

Free Cash Flow

$26.00M

Financial Statements
Beta
Revenue$214.00M
Operating Expenses$146.00M
Operating Income$91.00M
Net Income$41.00M

Key Highlights

  • 1Net income attributable to MPLX LP increased to $41.5 million for the three months ended September 30, 2015, up from $29.1 million in the prior year period.
  • 2Total revenues and other income grew to $148.6 million for the third quarter of 2015, compared to $138.0 million in the same period of 2014.
  • 3The company announced a definitive merger agreement with MarkWest Energy Partners, L.P. (MWE) in July 2015, with an expected closing in Q4 2015, valued at approximately $13.7 billion.
  • 4Cash flow from operations remained strong, providing $184.9 million for the nine months ended September 30, 2015.
  • 5MPLX declared a quarterly cash distribution of $0.47 per unit, representing an increase from the previous year and reflecting a commitment to distribution growth.
  • 6Significant capital expenditures of $121.1 million were made in additions to property, plant and equipment during the nine months ended September 30, 2015, primarily for expansion projects.
  • 7All subordinated units owned by MPC were converted into common units on August 17, 2015, simplifying the capital structure.

Frequently Asked Questions

MPLX LP is a fee-based, growth-oriented master limited partnership that owns, operates, develops, and acquires pipelines and other midstream assets for the transportation and storage of crude oil, refined products, and other hydrocarbon-based products.

The proposed merger with MWE, announced in July 2015, is a significant strategic move expected to create a larger, more diversified midstream energy company. The transaction, valued at approximately $13.7 billion, aims to expand MPLX's capabilities, particularly in natural gas gathering and processing, and is anticipated to close in the fourth quarter of 2015.

For the three months ended September 30, 2015, MPLX LP reported an increase in net income attributable to MPLX LP to $41.5 million, up from $29.1 million in the same period of 2014. Total revenues and other income also increased to $148.6 million from $138.0 million year-over-year.

MPLX maintained a strong liquidity position with $1.1 billion in available capacity as of September 30, 2015, consisting of cash and unused credit facilities. The company recently issued $500 million in senior notes and has a credit agreement that requires maintaining a debt-to-EBITDA ratio below 5.0 to 1.0. Management aims to maintain an investment-grade credit profile.