10-QPeriod: Q3 FY2021

MPLX LP Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 2, 2021For Securities:MPLXMPLXP

Summary

MPLX LP's (MPLX) third quarter 2021 results show a significant improvement in financial performance compared to the prior year, driven by increased revenues and a substantial reduction in costs, largely due to the absence of large impairment charges seen in the prior year. Total revenues and other income increased to $2.56 billion, up from $2.25 billion in the same period last year, with strong performance in the Gathering and Processing (G&P) segment contributing significantly through higher prices. Net income attributable to MPLX LP was $802 million, a notable increase from $665 million in Q3 2020, reflecting the operational improvements and a more favorable economic environment post-pandemic. The company also demonstrated strong operational execution with increased pipeline and terminal throughput. MPLX returned capital to unitholders through a robust unit repurchase program and a substantial cash distribution for the quarter, including a special distribution. The company maintained ample liquidity and remains focused on capital discipline and cost optimization, positioning it well for continued operational and financial strength.

Financial Highlights

37 data points
Beta

Revenue

$2.56B

Net Income

$802.00M

31.3% Net Margin

Total Assets

$35.70B

Cash & Equivalents

$39.00M

Free Cash Flow

$1.04B

Financial Statements
Beta
Revenue$2.56B
Operating Expenses$1.53B
Operating Income$2.94B
Net Income$802.00M

Key Highlights

  • 1Total revenues and other income increased to $2.56 billion in Q3 2021 from $2.25 billion in Q3 2020.
  • 2Net income attributable to MPLX LP rose to $802 million in Q3 2021, up from $665 million in Q3 2020.
  • 3Adjusted EBITDA attributable to MPLX LP increased to $1.39 billion, a $54 million improvement year-over-year.
  • 4Distributions to common unitholders, including a special distribution, totaled $1.305 billion for Q3 2021.
  • 5MPLX repurchased approximately $155 million of its common units during the third quarter of 2021.
  • 6Net cash provided by operating activities was $3.67 billion for the nine months ended September 30, 2021.
  • 7The company's credit ratings remained at or above investment grade as of September 30, 2021.

Frequently Asked Questions

The increase in revenue was primarily driven by higher prices in the Gathering and Processing (G&P) segment, contributing approximately $300 million. Additionally, there were increases in pipeline volumes, income from equity method investments, and revenue from terminal, storage, and refining logistics operations due to increased throughput and rate escalations. These were partially offset by decreases in marine transportation fees and other tariff rates.

MPLX focused on managing its debt by redeeming its $1.0 billion floating rate senior notes in September 2021 and $750 million of fixed-rate senior notes in January 2021. Borrowings under the MPC Loan Agreement increased to fund some of these redemptions. The company's total long-term debt decreased significantly, and its credit ratings were maintained at investment grade levels.

The special distribution of $0.575 per common unit, in addition to the base distribution of $0.705, was declared in the third quarter of 2021. This signifies the company's strong performance and its commitment to returning capital to unitholders, supported by robust year-to-date cash flow and excess cash flow after distributions.

No significant impairment expenses were recorded in the third quarter of 2021. This is a positive contrast to the first quarter of 2020, which saw substantial impairment charges related to goodwill, equity method investments, and long-lived assets due to economic downturns. In Q2 2021, a $42 million impairment was recognized within the G&P segment related to asset divestitures and closures.