10-QPeriod: Q1 FY2022

MPLX LP Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 3, 2022For Securities:MPLXMPLXP

Summary

MPLX LP reported solid financial results for the first quarter of 2022, demonstrating revenue growth driven by strong performance in both its Logistics and Storage (L&S) and Gathering and Processing (G&P) segments. Total revenues and other income increased by $271 million year-over-year, largely attributable to higher prices and volumes in the G&P segment, coupled with increased pipeline fees and equity method income in the L&S segment. Net income saw a notable rise of $85 million to $833 million, reflecting operational efficiencies and favorable market conditions. The company maintained a strong financial position with substantial Adjusted EBITDA of $1.39 billion. MPLX also actively returned capital to unitholders through distributions totaling $713 million for the quarter and repurchased $100 million in common units. The company successfully issued $1.5 billion in senior notes, further strengthening its liquidity and extending its debt maturity profile, while maintaining investment-grade credit ratings.

Financial Highlights

34 data points
Beta

Revenue

$2.61B

Net Income

$833.00M

31.9% Net Margin

Total Assets

$35.73B

Cash & Equivalents

$42.00M

Free Cash Flow

$956.00M

Financial Statements
Beta
Revenue$2.61B
Operating Expenses$1.55B
Operating Income$1.06B
Net Income$833.00M

Key Highlights

  • 1Total revenues and other income increased by $271 million to $2.61 billion for the three months ended March 31, 2022, compared to the prior year period.
  • 2Net income attributable to MPLX LP rose by $86 million to $825 million for the first quarter of 2022, compared to $739 million in the same period of 2021.
  • 3Adjusted EBITDA attributable to MPLX LP was $1.39 billion for the first quarter of 2022, a slight increase from $1.35 billion in the prior year quarter.
  • 4Cash provided by operating activities remained strong at $1.125 billion for the first quarter of 2022.
  • 5MPLX declared and paid a total cash distribution of $713 million ($0.7050 per common unit) for the first quarter of 2022.
  • 6The company repurchased $100 million of its common units during the quarter under its unit repurchase program.
  • 7MPLX issued $1.5 billion of senior notes due March 2052, utilizing the proceeds to repay outstanding debt under its MPC Intercompany Loan Agreement and MPLX Credit Agreement.

Frequently Asked Questions

The $271 million increase in total revenues and other income was primarily driven by higher prices and volumes in the G&P segment ($274 million). Additionally, the L&S segment saw increased pipeline fees due to higher throughput, and there was higher income from equity method investments across both segments. These were partially offset by a loss on disposal of assets.

MPLX strengthened its liquidity by issuing $1.5 billion in senior notes due March 2052, with net proceeds used to repay outstanding debt. The company maintained its investment-grade credit ratings and had total liquidity of $4.7 billion at the end of the quarter, comprising availability under its credit and loan agreements, and cash and cash equivalents.

MPLX returned capital to unitholders through cash distributions and a unit repurchase program. For the first quarter of 2022, the company declared a cash distribution of $713 million ($0.7050 per common unit) and repurchased $100 million of its common units. The declared distribution resulted in a distribution coverage ratio of 1.65x.

MPLX is subject to various legal proceedings, including environmental matters. A notable item is an action by the State of Illinois concerning a crude oil release near Edwardsville, Illinois, for which MPLX is negotiating a settlement. Management believes that the resolution of these matters, individually or in aggregate, will not have a material adverse effect on its financial position, results of operations, or cash flows, although potential outcomes cannot be predicted with certainty.