10-QPeriod: Q3 FY2023

MPLX LP Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 31, 2023For Securities:MPLXMPLXP

Summary

MPLX LP reported solid financial results for the nine months ended September 30, 2023, with total revenues and other income of $8.315 billion, slightly down from $8.951 billion in the prior year period. Net income attributable to MPLX LP was $2.794 billion, a decrease from $3.128 billion year-over-year. Despite a decrease in overall revenues, the company demonstrated operational resilience, with Segment Adjusted EBITDA increasing to $4.646 billion from $4.321 billion for the comparable periods. The company continues to return capital to unitholders, with $2.403 billion distributed in the first nine months of 2023, and announced a 10% increase in its third-quarter distribution to $0.850 per common unit. MPLX also made progress on its balance sheet by redeeming its Series B preferred units and redeeming $1 billion in senior notes. The company maintained its investment-grade credit profile with stable outlooks from major rating agencies. Significant events during the period include $63 million in incident response costs at the Garyville Tank Farm and ongoing legal proceedings related to the Dakota Access Pipeline, which could potentially require up to $170 million in contingent equity contributions.

Financial Highlights

36 data points
Beta

Revenue

$2.91B

Net Income

$928.00M

31.9% Net Margin

Total Assets

$36.12B

Cash & Equivalents

$960.00M

Free Cash Flow

$1.01B

Financial Statements
Beta
Revenue$2.91B
Operating Expenses$1.76B
Operating Income$1.15B
Interest Expense$227.00M
Net Income$928.00M

Key Highlights

  • 1MPLX LP reported Segment Adjusted EBITDA of $4.646 billion for the nine months ended September 30, 2023, an increase from $4.321 billion in the prior year period, indicating operational strength.
  • 2Total revenues and other income decreased to $8.315 billion for the nine months ended September 30, 2023, compared to $8.951 billion in the same period last year, primarily due to a non-cash gain on sales-type lease in the prior year and lower product sales.
  • 3Net income attributable to MPLX LP decreased to $2.794 billion for the nine months ended September 30, 2023, from $3.128 billion in the prior year.
  • 4The company declared a third-quarter 2023 distribution of $0.850 per common unit, representing a 10% increase over the prior quarter, and returned $2.403 billion to unitholders in the first nine months of 2023.
  • 5MPLX successfully redeemed all outstanding Series B preferred units and $1 billion in senior notes during the first nine months of 2023.
  • 6The company incurred $63 million in incident response costs related to the Garyville Tank Farm incident in August 2023.
  • 7MPLX maintained its investment-grade credit ratings with stable outlooks from Moody's, S&P, and Fitch.

Frequently Asked Questions

The decrease in total revenues and other income to $8.315 billion from $8.951 billion was primarily driven by a significant non-cash gain on sales-type lease of $509 million recognized in the third quarter of 2022. Additionally, lower product sales revenue, resulting from decreased NGL prices, also contributed to the decline.

MPLX LP made significant moves to manage its capital structure. They issued $1.6 billion in senior notes in February 2023. From the proceeds, they redeemed all outstanding Series B preferred units for $600 million and redeemed $1 billion in senior notes. The company also maintained its investment-grade credit profile with stable outlooks from major rating agencies.

In August 2023, MPLX incurred $63 million in incident response costs related to a naphtha release and fire at its Garyville Tank Farm. The company is pursuing recovery of these costs under its insurance policies.

MPLX declared a third-quarter 2023 distribution of $0.850 per common unit, representing a 10% increase over the prior quarter's distribution. For the first nine months of 2023, the company distributed a total of $2.403 billion to unitholders.