Why is MPLX providing pro forma financial statements for 2015?

MPLX is providing these pro forma statements to offer investors a clearer view of the combined operational performance after significant transactions, namely the merger with MarkWest Energy Partners (MWE) in late 2015 and the acquisition of Hardin Street Marine (HSM) from MPC in early 2016. The pro forma view presents how these combined entities would have performed financially as if they were part of MPLX for the entirety of 2015.

How does the acquisition of Hardin Street Marine (HSM) impact the pro forma financials?

Since the acquisition of HSM from its parent, Marathon Petroleum Corporation (MPC), was a transfer between entities under common control, MPLX is retrospectively adjusting its historical financial results. This means the acquired assets from HSM are reflected at MPC's historical cost basis, not fair value, and the pro forma statements include HSM's results as if the acquisition had occurred at the beginning of 2015.

Should investors rely on these pro forma statements to predict future earnings?

Investors should use these pro forma statements as an illustrative tool to understand the historical performance of the combined business. However, they are based on available information and assumptions and do not represent what the actual results would have been. Actual future results may differ, potentially significantly, from these pro forma figures. They are not a guarantee of future performance.

MPLX/MPLXP 8-K: Earnings & Results

Summary

MPLX LP (MPLX) filed an 8-K on May 2, 2016, to furnish supplemental information regarding unaudited quarterly pro forma Statements of Income for the year ended December 31, 2015. This supplemental disclosure is primarily driven by two significant transactions: the merger with MarkWest Energy Partners, L.P. (MWE) in December 2015 and the acquisition of Hardin Street Marine LLC (HSM) from Marathon Petroleum Corporation (MPC) in March 2016. The pro forma statements aim to provide investors with a clearer understanding of the historical operating performance of these combined entities, as if they had been part of MPLX for the entirety of 2015. The adjustments for the HSM acquisition are made on a retrospective basis due to it being a transfer between entities under common control, meaning the historical basis of assets acquired from MPC is used. Investors should view these pro forma statements as illustrative and not necessarily indicative of future performance, as actual results may differ. The detailed pro forma income statements for 2015 are provided as an exhibit to this filing.

Key Highlights

1MPLX LP is providing unaudited quarterly pro forma Statements of Income for the full year 2015.
2The pro forma statements reflect the combined results following the MarkWest Energy Partners (MWE) merger in December 2015.
3The pro forma statements also incorporate the acquisition of Hardin Street Marine LLC (HSM) from Marathon Petroleum Corporation (MPC) in March 2016.
4The HSM acquisition is treated as a transaction between entities under common control, necessitating retrospective adjustment of historical financial results.
5These pro forma statements are intended to enhance investor understanding of the historical operating performance of the combined entities.
6Investors are cautioned that the pro forma figures are for illustrative purposes and may not represent actual historical results or future performance.
7Detailed 2015 pro forma income statements are furnished as Exhibit 99.1 to the filing.

MPLX LP 8-K Report, Financial Results (May 2, 2016)

Summary

Key Highlights

Frequently Asked Questions