10-QPeriod: Q2 FY2023

MPLX LP Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 1, 2023For Securities:MPLXMPLXP

Summary

MPLX LP reported solid financial results for the second quarter and first half of 2023, demonstrating resilience in its midstream energy infrastructure operations. For the three months ended June 30, 2023, MPLX LP reported total revenues and other income of $2.69 billion and net income attributable to MPLX LP of $933 million, resulting in diluted earnings per common unit of $0.91. The six-month period showed similar strength with total revenues of $5.40 billion and net income attributable to MPLX LP of $1.88 billion. Financially, the company maintained a strong liquidity position with $755 million in cash and cash equivalents at the end of June 2023. Debt management remained a focus, with the company having issued $1.6 billion in senior notes in February 2023 and using a portion of the proceeds to redeem Series B preferred units and repay maturing senior notes. MPLX LP also continues to return capital to unitholders, declaring a second quarter distribution of $0.775 per common unit.

Financial Highlights

37 data points
Beta

Revenue

$2.69B

Net Income

$942.00M

35.0% Net Margin

Total Assets

$35.87B

Cash & Equivalents

$755.00M

Free Cash Flow

$1.17B

Financial Statements
Beta
Revenue$2.69B
Operating Expenses$1.51B
Operating Income$1.18B
Interest Expense$230.00M
Net Income$942.00M

Key Highlights

  • 1MPLX LP reported a net income attributable to MPLX LP of $933 million for the three months ended June 30, 2023, up from $875 million in the prior year period.
  • 2Diluted earnings per common unit for the second quarter of 2023 were $0.91, an increase from $0.83 in the same period of 2022.
  • 3Total revenues and other income for the second quarter of 2023 were $2.69 billion, a decrease from $2.94 billion in the prior year period, primarily due to lower product sales revenue.
  • 4The company maintained a robust liquidity position with $755 million in cash and cash equivalents as of June 30, 2023.
  • 5MPLX LP generated $1,315 million in DCF (Distributable Cash Flow) for the three months ended June 30, 2023, indicating strong cash generation to support distributions.
  • 6Capital expenditures for the six months ended June 30, 2023, totaled $432 million, primarily for growth projects in gas processing and gathering.
  • 7MPLX LP declared a second quarter 2023 distribution of $0.775 per common unit, paid on August 14, 2023.

Frequently Asked Questions

The decrease in total revenues and other income by $250 million in the second quarter of 2023 compared to the same period in 2022 was primarily driven by lower product sales revenue, which was a result of lower NGL prices. This was partially offset by higher throughput and rate escalations across the business, as well as an increase in income from equity method investments.

MPLX LP issued $1.6 billion in senior notes in February 2023 and used a portion of the proceeds to redeem Series B preferred units and repay $1.0 billion of senior notes maturing in July 2023. As of June 30, 2023, the company had $20.7 billion in total debt, with $20.4 billion classified as long-term debt. MPLX LP aims to maintain an investment-grade credit profile, with current ratings from Moody's, S&P, and Fitch at Baa2/BBB/BBB respectively, all with stable outlooks.

MPLX LP's initial capital investment plan for 2023 totals $950 million, including $800 million for growth capital and $150 million for maintenance capital. The company is returning capital to unitholders through distributions, declaring a second quarter 2023 distribution of $0.775 per common unit, totaling $776 million. The company also has an authorized unit repurchase program, with $846 million remaining as of June 30, 2023, though no units were repurchased in the first six months of 2023.

The L&S segment saw an increase in total segment revenues and other income to $1.50 billion in Q2 2023 from $1.42 billion in Q2 2022, driven by higher service revenue from increased throughput and tariff rates, and higher income from equity method investments. Segment Adjusted EBITDA for L&S increased to $1.02 billion. The G&P segment experienced a decrease in total segment revenues and other income to $1.19 billion in Q2 2023 from $1.52 billion in Q2 2022, mainly due to lower product-related revenue resulting from decreased NGL prices. However, Segment Adjusted EBITDA for G&P increased slightly to $509 million, supported by higher service revenue and income from equity method investments.