MPLX LP Quarterly Report for Q2 Ended Jun 30, 2019

Summary

MPLX LP reported solid financial results for the second quarter and first six months of 2019, demonstrating revenue growth and improved profitability across its Logistics and Storage (L&S) and Gathering and Processing (G&P) segments. Total revenues and other income saw an increase, driven by higher transportation volumes and rates in the L&S segment, and increased fees from growing volumes in the G&P segment. Net income attributable to MPLX LP rose year-over-year, reflecting operational efficiencies and strategic acquisitions, including the significant impact of the Andeavor Logistics LP (ANDX) merger, which closed in July 2019. Financially, the company maintained a strong liquidity position, with significant capacity under its revolving credit facilities and a stable credit rating. The successful integration of acquired assets and continued focus on operational optimization are key themes. MPLX is well-positioned to continue its growth trajectory, supported by its fee-based business model and strategic expansion projects, while also managing debt levels effectively. Investors should note the ongoing strategic importance of its relationship with Marathon Petroleum Corporation (MPC) and the impact of its major acquisition of ANDX.

Key Highlights

• 1Total revenues and other income increased to $1,629 million for Q2 2019 and $3,275 million for the six months ended June 30, 2019, compared to $1,578 million and $2,998 million in the prior year periods, respectively.
• 2Net income attributable to MPLX LP increased to $482 million for Q2 2019 and $985 million for the six months ended June 30, 2019, up from $453 million and $874 million in the prior year periods.
• 3Segment Adjusted EBITDA showed growth, with L&S at $569 million and G&P at $351 million for Q2 2019, indicating improved operational performance.
• 4MPLX completed the acquisition of Andeavor Logistics LP (ANDX) on July 30, 2019, a significant strategic move expected to expand its midstream infrastructure and logistics network.
• 5The company maintained a strong liquidity position, with $2.6 billion in available liquidity from its credit facilities and MPC Loan Agreement as of June 30, 2019.
• 6Distributions to common unitholders increased, with declared distributions per common unit rising to $0.6675 for Q2 2019, reflecting confidence in operational performance and cash flow generation.
• 7Capital expenditures for the six months ended June 30, 2019 totaled $800 million, primarily for growth projects aimed at expanding processing and fractionation capacity.

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