10-QPeriod: Q2 FY2021

MPLX LP Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 4, 2021For Securities:MPLXMPLXP

Summary

MPLX LP's (MPLX) 10-Q filing for the period ending June 29, 2021, shows a significant rebound in financial performance compared to the prior year's pandemic-impacted quarter. Total revenues and other income increased by $314 million year-over-year for the three months ended June 30, 2021, reaching $2.4 billion. This growth was driven by stronger pricing and volumes across both its Logistics and Storage (L&S) and Gathering and Processing (G&P) segments, as well as a substantial increase in product sales. Net income attributable to MPLX LP also saw a healthy rise to $706 million from $648 million in the prior year's comparable period. The company's operational efficiency appears to be improving, evidenced by a decrease in total costs and expenses, primarily due to lower purchased product costs and the absence of significant impairment charges seen in the prior year. MPLX also demonstrated strong cash flow generation, with net cash provided by operating activities increasing to $2.49 billion for the six months ended June 30, 2021. The company continued to return capital to unitholders through its unit repurchase program, repurchasing approximately $310 million in common units during the first half of the year. Despite some ongoing legal and environmental contingencies, MPLX maintained compliance with its debt covenants and has ample liquidity.

Financial Highlights

38 data points
Beta

Revenue

$2.40B

Net Income

$706.00M

29.5% Net Margin

Total Assets

$35.77B

Cash & Equivalents

$8.00M

Free Cash Flow

$1.26B

Financial Statements
Beta
Revenue$2.40B
Operating Expenses$1.46B
Operating Income$1.91B
Net Income$706.00M

Key Highlights

  • 1Total revenues and other income increased by 15% to $2.395 billion for Q2 2021 compared to $2.081 billion in Q2 2020, driven by improved pricing and volumes across segments.
  • 2Net income attributable to MPLX LP increased to $706 million in Q2 2021 from $648 million in Q2 2020, reflecting operational improvements and a favorable market environment.
  • 3Adjusted EBITDA attributable to MPLX LP rose by 12% to $1.374 billion for Q2 2021, indicating strong operational performance and profitability.
  • 4Net cash provided by operating activities increased by 33% to $2.489 billion for the first six months of 2021 compared to the same period in 2020.
  • 5MPLX repurchased approximately $310 million of its common units in the first six months of 2021 as part of its ongoing unit repurchase program.
  • 6The company maintained strong liquidity with $4.515 billion available at June 30, 2021, supported by its credit facilities and cash on hand.
  • 7Significant impairment expenses of $2.165 billion in the prior year's comparable period were absent in Q2 2021, contributing to the improved net income.

Frequently Asked Questions

MPLX reported a significant increase in total revenues and other income, growing by $314 million (15%) to $2.395 billion in the second quarter of 2021, compared to $2.081 billion in the same period of 2020. This growth was attributed to higher prices and volumes across both the Logistics and Storage (L&S) and Gathering and Processing (G&P) segments, as well as increased product sales.

The company demonstrated strong profitability with net income attributable to MPLX LP increasing to $706 million in Q2 2021 from $648 million in Q2 2020. Adjusted EBITDA attributable to MPLX LP also saw a healthy increase of 12% to $1.374 billion. Cash flow generation was robust, with net cash provided by operating activities increasing by 33% to $2.489 billion for the first six months of 2021, indicating a strong ability to fund operations and distributions.

MPLX continued its unit repurchase program, buying back approximately $310 million of its common units in the first six months of 2021. The company also declared a quarterly distribution of $0.6875 per common unit for the second quarter of 2021, consistent with the prior quarter's distribution, demonstrating a commitment to returning capital to investors.

While MPLX recorded significant impairment expenses in the first half of 2020, these were substantially reduced in the comparable periods of 2021, with a $42 million impairment in Q2 2021 related to portfolio optimization. The company is also involved in certain legal proceedings, including those related to the Dakota Access Pipeline, which could have future financial implications, though management believes current resolutions will not have a material adverse effect on financial position or results.