10-QPeriod: Q1 FY2023

MPLX LP Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 2, 2023For Securities:MPLXMPLXP

Summary

MPLX LP reported a solid first quarter for 2023, demonstrating revenue growth and improved profitability compared to the prior year. Total revenues and other income increased by approximately 4% to $2.71 billion, driven by higher throughputs and rate escalations across its Logistics and Storage (L&S) and Gathering and Processing (G&P) segments. Net income attributable to MPLX LP rose by over 14% to $943 million, translating to diluted earnings per unit of $0.91, up from $0.78 in the first quarter of 2022. The company successfully managed its costs, with total costs and expenses decreasing slightly due to lower purchased product costs and depreciation, despite increases in related party purchases and interest expenses. MPLX also strengthened its financial position by issuing $1.6 billion in senior notes, using a portion to redeem Series B preferred units and another portion to pay down existing senior notes. This proactive debt management, coupled with strong operational performance, positions MPLX favorably for continued distribution growth and operational efficiency.

Financial Highlights

37 data points
Beta

Revenue

$2.71B

Net Income

$952.00M

35.1% Net Margin

Total Assets

$35.67B

Cash & Equivalents

$393.00M

Free Cash Flow

$1.06B

Financial Statements
Beta
Revenue$2.71B
Operating Expenses$1.52B
Operating Income$1.20B
Interest Expense$227.00M
Net Income$952.00M

Key Highlights

  • 1Total revenues and other income increased by 4% to $2.71 billion for Q1 2023, compared to $2.61 billion in Q1 2022.
  • 2Net income attributable to MPLX LP grew by 14.3% to $943 million for Q1 2023, resulting in diluted earnings per unit of $0.91, up from $0.78 in Q1 2022.
  • 3The company generated $1.227 billion in net cash provided by operating activities, a 9% increase year-over-year.
  • 4MPLX successfully redeemed all outstanding Series B preferred units for $600 million and repaid $1.0 billion of senior notes using proceeds from a $1.6 billion debt issuance.
  • 5Segment Adjusted EBITDA for the Logistics and Storage (L&S) segment increased by 13.5% to $1.026 billion, while the Gathering and Processing (G&P) segment saw a slight increase of 0.8% to $493 million.
  • 6The company declared a first-quarter 2023 distribution of $0.775 per common unit, an increase from $0.705 per common unit in the first quarter of 2022.
  • 7As of March 31, 2023, MPLX had $846 million remaining under its unit repurchase authorization, though no units were repurchased in the current quarter.

Frequently Asked Questions

MPLX LP reported increased revenues and net income for the first quarter of 2023 compared to the same period in 2022. Total revenues and other income rose to $2.71 billion, and net income attributable to MPLX LP increased to $943 million, leading to higher earnings per unit of $0.91.

MPLX issued $1.6 billion in senior notes. The proceeds were used to redeem all outstanding Series B preferred units for $600 million and to repay $1.0 billion of senior notes due July 2023. This proactive management improved the company's debt profile.

Revenue growth was primarily driven by increased throughput and rate escalations across both the Logistics and Storage (L&S) and Gathering and Processing (G&P) segments. Higher income from equity method investments also contributed positively to the overall revenue increase.

MPLX declared a first-quarter 2023 distribution of $0.775 per common unit, an increase from the prior year's $0.705 per common unit. The company also has an ongoing unit repurchase program, with $846 million remaining authorization as of March 31, 2023, though no repurchases were made in the reported quarter.