What were the main drivers of revenue growth in the third quarter of 2017?

Revenue growth was driven by increased pricing on product sales, higher volumes from new gathering and processing facilities in the Marcellus and Southwest areas, expanded fractionation capacity, and contributions from recent acquisitions such as the Ozark pipeline and equity interests in the Bakken Pipeline system. The L&S segment also benefited from higher crude and product transportation volumes.

How did MPLX LP finance its recent acquisitions and growth initiatives?

MPLX LP financed its activities through a combination of debt and equity. Key financing activities included the issuance of $2.25 billion in senior notes, borrowings under its $2.25 billion revolving credit facility, and proceeds from the issuance of common units under its At-the-Market (ATM) Program. Significant acquisitions were also funded through cash and equity considerations.

What is the outlook for distributions to unitholders?

MPLX LP declared an increased quarterly cash distribution of $0.5875 per common unit for the third quarter of 2017, representing a 14% increase over the third quarter of 2016. The company intends to maintain an attractive distribution growth profile, supported by expected cash generated from operations, borrowings, and further equity/debt issuances, with a stated goal of paying at least the minimum quarterly distribution.

What is the status of the planned acquisition of refinery logistics assets and fuels distribution services from MPC?

The offer to acquire these assets, projected to contribute approximately $1.0 billion of annual EBITDA, was under review by the conflicts committee of the general partner's board of directors. The transaction was expected to close no later than the end of the first quarter of 2018, representing a significant step in completing MPC's planned asset dropdowns to MPLX LP.

MPLX/MPLXP 10-Q Quarterly Report Q3 FY2017

Summary

MPLX LP (MPLX) reported a strong third quarter and first nine months of 2017, demonstrating significant growth driven by strategic acquisitions and increasing operational volumes across its Logistics and Storage (L&S) and Gathering and Processing (G&P) segments. Total revenues and other income saw a substantial increase, reflecting the successful integration of newly acquired assets and organic growth. The company benefited from higher commodity prices and volumes, particularly in its G&P segment, while its L&S segment saw improvements from acquisitions like Ozark pipeline and contributions from HST, WHC, and MPLXT. Financially, MPLX LP improved its operational income and net income attributable to MPLX LP significantly year-over-year. The company also strengthened its balance sheet through strategic financing activities, including the issuance of new senior notes and borrowings under its revolving credit facility, to fund its growth initiatives and acquisitions. The company reiterated its commitment to returning capital to unitholders, announcing an increased quarterly distribution per unit. Management expressed confidence in its ability to fund future growth and meet its financial obligations, supported by strong operational performance and prudent financial management.

Financial Highlights

38 data points

Beta

Revenue

$980.00M

Net Income

$216.00M

0.2% Net Margin

Total Assets

$19.24B

Cash & Equivalents

$3.00M

Free Cash Flow

$142.00M

Financial Statements

Beta

Revenue	$980.00M
Operating Expenses	$669.00M
Operating Income	$311.00M
Net Income	$216.00M

Key Highlights

1Total revenues and other income increased by 17% to $980 million for the three months ended September 30, 2017, and by 27% to $2,782 million for the nine months ended September 30, 2017, compared to the prior year periods.
2Income from operations surged by 20.5% to $311 million for the third quarter of 2017 and by 96.3% to $856 million for the first nine months of 2017.
3Net income attributable to MPLX LP rose significantly, increasing by 53.2% to $216 million for the third quarter and by 456% to $556 million for the first nine months of 2017.
4The company completed several significant acquisitions during the period, including joint-interest ownerships in pipelines and storage facilities, the Ozark crude oil pipeline, and an equity interest in the Bakken Pipeline system.
5Financing activities were robust, with significant proceeds from the issuance of senior notes and borrowings under its revolving credit facility, supporting acquisitions and capital expenditures.
6MPLX LP declared an increased quarterly cash distribution of $0.5875 per common unit for the third quarter of 2017, up from $0.5150 in the prior year's third quarter, reflecting confidence in future performance.
7The L&S segment operating income increased by 72% to $213 million, and the G&P segment operating income increased by 19% to $349 million for the third quarter of 2017, showcasing strong performance across both segments.

MPLX LP Quarterly Report for Q3 Ended Sep 30, 2017

Summary

Financial Highlights

Key Highlights

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