What is the primary purpose of the Third Amended and Restated Distribution Agreement?

The primary purpose of the agreement is to provide MPLX LP with the ability to raise capital by issuing and selling its common units in the open market, up to an aggregate offering price of approximately $1.74 billion.

How will MPLX sell its common units under this agreement?

The common units will be sold through 'at the market' offerings, which involve selling them on stock exchanges or other trading facilities at prevailing market prices. This can include ordinary brokers' transactions or block transactions.

What are the potential implications for existing unitholders?

As MPLX can issue new units, there is a potential for dilution of existing unitholders' ownership stake. However, 'at the market' offerings typically allow the company to sell units at favorable market prices, potentially funding growth initiatives that could benefit unitholders in the long term.

What fees or expenses will MPLX incur from this agreement?

MPLX will pay commissions to the Sales Agents, which are capped at 2% of the gross sales price of the common units sold. Additionally, MPLX has agreed to pay certain expenses incurred by the Sales Agents in connection with these offerings.

MPLX/MPLXP 8-K SEC Disclosure

Summary

MPLX LP (MPLX) announced on March 13, 2018, the entry into a Third Amended and Restated Distribution Agreement. This agreement allows MPLX to issue and sell common units representing limited partner interests, with an aggregate offering price of up to approximately $1.74 billion. The sales will be conducted as 'at the market offerings' through various registered securities exchanges or trading facilities, at prevailing market prices. This strategic move provides MPLX with financial flexibility to raise significant capital through the opportunistic sale of its common units. Investors should note that these offerings will be made under the company's existing shelf registration statement. The agreement outlines that sales agents will receive a commission of up to 2% of the gross sales price, and MPLX will also cover certain expenses associated with these offerings.

Key Highlights

1MPLX LP entered into a Third Amended and Restated Distribution Agreement on March 13, 2018.
2The agreement permits MPLX to offer and sell common units with an aggregate offering price of up to approximately $1.74 billion.
3Sales will be conducted as 'at the market' offerings, allowing for flexibility in timing and pricing.
4The offerings will utilize an existing shelf registration statement filed with the SEC.
5Various major financial institutions are listed as Sales Agents under the agreement.
6Commissions for Sales Agents are capped at 2% of the gross sales price.
7MPLX will cover certain expenses related to the offerings.

MPLX LP 8-K Report, Corporate Update (Mar 13, 2018)

Summary

Key Highlights

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