10-QPeriod: Q3 FY2019

MPLX LP Quarterly Report for Q3 Ended Sep 30, 2019

Filed November 4, 2019For Securities:MPLXMPLXP

Summary

MPLX LP reported strong financial results for the nine months ended September 30, 2019, with Total Revenues and Other Income increasing by 43% to $6.725 billion compared to the prior year, largely driven by the significant acquisition of Andeavor Logistics LP (ANDX) in July 2019. Net income attributable to MPLX LP also saw a substantial rise of 16%, reaching $1.614 billion. The company's Logistics and Storage (L&S) segment demonstrated robust growth, with total segment revenues up 67% year-over-year, supported by increased service and rental income, particularly from acquired assets. The Gathering and Processing (G&P) segment also showed growth, with total segment revenues up 17%, driven by service revenues and product sales. Adjusted EBITDA for MPLX LP, a key profitability metric, increased significantly due to the ANDX acquisition and continued operational performance, demonstrating the combined entity's enhanced scale and cash flow generation capabilities. MPLX LP's balance sheet reflects the scale of the ANDX acquisition, with total assets increasing to $41.281 billion. The company's liquidity remains strong, with significant availability under its credit facilities. Management remains focused on operational execution and portfolio optimization, positioning MPLX for continued growth and value creation for unitholders.

Financial Highlights

36 data points
Beta

Revenue

$2.28B

Net Income

$629.00M

27.6% Net Margin

Total Assets

$41.28B

Cash & Equivalents

$41.00M

Free Cash Flow

$452.00M

Financial Statements
Beta
Revenue$2.28B
Operating Expenses$1.35B
Operating Income$926.00M
Net Income$629.00M

Key Highlights

  • 1Total revenues and other income increased by 43% to $6.725 billion for the nine months ended September 30, 2019, primarily due to the acquisition of ANDX.
  • 2Net income attributable to MPLX LP rose by 16% to $1.614 billion for the nine months ended September 30, 2019.
  • 3The Logistics and Storage (L&S) segment revenue increased by 67% for the nine months ended September 30, 2019.
  • 4The Gathering and Processing (G&P) segment revenue increased by 17% for the nine months ended September 30, 2019.
  • 5Adjusted EBITDA attributable to MPLX LP (including Predecessor results) increased to $3.785 billion for the nine months ended September 30, 2019.
  • 6Diluted earnings per common unit remained strong at $1.78 for the nine months ended September 30, 2019.
  • 7Total assets grew to $41.281 billion as of September 30, 2019, reflecting the significant acquisition of ANDX.

Frequently Asked Questions

The primary driver of MPLX's financial performance in the reported period was the acquisition of Andeavor Logistics LP (ANDX) completed on July 30, 2019. This acquisition significantly expanded MPLX's asset base and revenue streams, leading to substantial increases in total revenues and net income.

The acquisition of ANDX led to a significant increase in both total revenues and net income. For the nine months ended September 30, 2019, total revenues and other income grew by 43%, and net income attributable to MPLX LP increased by 16%. The Logistics and Storage segment, in particular, saw a 67% revenue increase, benefiting greatly from the combined operations.

MPLX maintained a strong liquidity position as of September 30, 2019, with total liquidity of $5.413 billion, including $3.497 billion available under its bank revolving credit facility, $500 million from its term loan facility, and $1.375 billion available under the MPC Loan Agreement, in addition to cash and cash equivalents. The company expects its ongoing sources of liquidity to be sufficient to meet its funding requirements.

MPLX operates through two reportable segments: Logistics and Storage (L&S) and Gathering and Processing (G&P). For the nine months ended September 30, 2019, the L&S segment revenue increased by 67% year-over-year, driven by service and rental income. The G&P segment revenue increased by 17%, primarily due to service revenues and product sales. Both segments showed improved performance, contributing to the overall positive financial results.