MPLX LP Quarterly Report for Q2 Ended Jun 30, 2018

Summary

MPLX LP (MPLX) reported strong financial performance for the six months ended June 30, 2018, with total revenues and other income significantly increasing to $2,998 million from $1,802 million in the prior year period. This growth was primarily driven by the acquisition of Refining Logistics and Fuels Distribution assets from Marathon Petroleum Corporation (MPC) on February 1, 2018, which contributed substantially to both the Logistics and Storage (L&S) and Gathering and Processing (G&P) segments. Net income attributable to MPLX LP more than doubled to $874 million from $340 million year-over-year, reflecting improved operational performance and the benefits of recent strategic acquisitions. The company also made significant financing moves, including the issuance of $5.5 billion in senior notes to fund acquisitions and debt repayment. Notably, MPC exchanged its incentive distribution rights (IDRs) and economic general partner interest for 275 million MPLX LP common units, eliminating future GP cash distributions and providing a benefit to common unitholders. The company continues to emphasize distribution growth, announcing a quarterly cash distribution of $0.6275 per common unit, a 12% increase year-over-year, signaling confidence in its future cash flow generation and commitment to returning capital to unitholders.

Key Highlights

• 1Total revenues and other income surged to $2,998 million for the first six months of 2018, up from $1,802 million in the same period of 2017, driven by acquisitions and organic growth.
• 2Net income attributable to MPLX LP more than doubled year-over-year, reaching $874 million for the first six months of 2018, indicating robust profitability.
• 3The acquisition of Refining Logistics and Fuels Distribution from MPC on February 1, 2018, significantly boosted the company's scale and asset base, contributing substantially to segment revenues and EBITDA.
• 4MPLX LP successfully raised $5.5 billion in senior notes in February 2018 to fund its strategic initiatives and debt management.
• 5The conversion of MPC's incentive distribution rights (IDRs) and economic general partner interest into common units eliminated future general partner cash distributions, positively impacting distributable cash flow per common unit.
• 6The company declared a quarterly cash distribution of $0.6275 per common unit, representing a 12% increase compared to the second quarter of 2017, underscoring a commitment to unitholder returns.
• 7Segment adjusted EBITDA increased significantly, with L&S EBITDA up 186% and G&P EBITDA up 18% year-over-year for the three months ended June 30, 2018, showcasing strong operational performance across both segments.

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