First Quarter 2023 | ||
Table of Contents: | Investor Relations | |
Condensed Consolidated Statements of Income | 2 | 200 East Hardin Street |
Consolidated Statements of Comprehensive Income | 3 | Findlay, OH 45840 |
Consolidated Balance Sheets | 4 | IR@marathonpetroleum.com |
Consolidated Statements of Cash Flows | 5 | 419/421-2071 |
Financial Statistics | 6 | |
L&S Selected Operating Data | 7 | |
G&P Selected Operating Data | 8 | |
Reconciliation of Segment Adjusted EBITDA attributable to MPLX LP to Income from Operations and Net Income | 9 | |
Reconciliation of Adjusted EBITDA attributable to MPLX LP and Distributable Cash Flow attributable to GP and LP Unitholders from Net Income | 10 | |
Reconciliation of Adjusted EBITDA attributable to GP and LP Unitholders and Distributable Cash Flow attributable to MPLX LP from Net Cash Provided by Operating Activities | 11 | |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions | 12 | |
Capital Expenditures | 13 |
MPLX LP is a diversified, large-cap master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC).
In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes additional non-GAAP measures to facilitate comparisons of past performance and future periods. These supporting schedules include the non-GAAP measures adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA); consolidated debt to last twelve months pro forma adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); distribution coverage ratio; adjusted free cash flow (Adjusted FCF) and Adjusted FCF after distributions. The amount of adjusted EBITDA and DCF generated is considered by the board of directors of our general partner in approving the Partnership's cash distribution. Adjusted EBITDA and DCF should not be considered separately from or as a substitute for net income, income from operations, or cash flow as reflected in our financial statements. The GAAP measures most directly comparable to adjusted EBITDA and DCF are net income and net cash provided by operating activities. We define Adjusted EBITDA as net income adjusted for: (i) provision for income taxes; (ii) interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) gain on sales-type leases; (vii) impairment expense; (viii) noncontrolling interests; and (ix) other adjustments, as applicable. In general, we define DCF as adjusted EBITDA adjusted for (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment maintenance capital expenditures paid out; and (vi) other adjustments as deemed necessary. The Partnership makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is outstanding, changes in the fair value of the derivative are recorded as an unrealized gain or loss. When a derivative contract matures or is settled, the previously recorded unrealized gain or loss is reversed and the realized gain or loss of the contract is recorded. Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. DCF is a financial performance measure used by management as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders. Adjusted FCF and Adjusted FCF after distributions are financial performance measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define Adjusted FCF as net cash provided by operating activities adjusted for (i) net cash used in investing activities; (ii) cash contributions from MPC; (iii) cash contributions from noncontrolling interests and (iv) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders. Distribution coverage ratio is a financial performance measure used by management to reflect the relationship between the partnership's financial operating performance and cash distribution capability. We define the distribution coverage ratio as the ratio of DCF attributable to GP and LP unitholders to total GP and LP distributions declared. Leverage ratio is a liquidity measure used by management, industry analysts, investors, lenders and rating agencies to analyze our ability to incur and service debt and fund capital expenditures.
Additional information regarding Investor Relations, Financial Highlights, and News Releases can be reviewed on our website at: www.mplx.com
May 2, 2023
1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
MPLX LP
Preliminary
Year | |||
(In millions, except per unit data) | 2021 | ||
Revenues and other income: | |||
1 | Operating revenue | $ | 4,624 |
2 | Operating revenue - related parties | 4,951 | |
3 | Income from equity method investments | 321 | |
4 | Other income(1) | 131 | |
5 | Total revenues and other income | 10,027 | |
Costs and expenses: | |||
6 | Operating expenses | 2,905 | |
7 | Operating expenses - related parties | 1,328 | |
8 | Depreciation and amortization | 1,287 | |
9 | Impairment expense | 42 | |
10 | General and administrative expenses | 353 | |
1 | Other taxes | 120 | |
12 | Total costs and expenses | 6,035 | |
13 | Income from operations | 3,992 | |
14 | Interest and other financial costs | 879 | |
15 | Income before income taxes | 3,113 | |
16 | Provision for income taxes | 1 | |
17 | Net income | 3,112 | |
18 | Less: Net income attributable to noncontrolling interests | 35 | |
19 | Net income attributable to MPLX LP | 3,077 | |
20 | Less: Series A preferred unit distributions | 100 | |
21 | Less: Series B preferred unit distributions | 41 | |
22 | Limited partners' interest in net income attributable to MPLX LP | $ | 2,936 |
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | |||||
2022 | 2022 | 2022 | 2022 | 2022 | |||||
$ | 1,265 | $ | 1,495 | $ | 1,430 | $ | 1,137 | $ | 5,327 |
1,236 | 1,301 | 1,313 | 1,364 | 5,214 | |||||
99 | 111 | 125 | 141 | 476 | |||||
10 | 33 | 533 | 20 | 596 | |||||
2,610 | 2,940 | 3,401 | 2,662 | 11,613 | |||||
791 | 1,028 | 933 | 803 | 3,555 | |||||
334 | 370 | 374 | 389 | 1,467 | |||||
313 | 310 | 302 | 305 | 1,230 | |||||
- | - | - | - | - | |||||
78 | 82 | 88 | 87 | 335 | |||||
34 | 33 | 30 | 18 | 115 | |||||
1,550 | 1,823 | 1,727 | 1,602 | 6,702 | |||||
1,060 | 1,117 | 1,674 | 1,060 | 4,911 | |||||
222 | 233 | 236 | 234 | 925 | |||||
838 | 884 | 1,438 | 826 | 3,986 | |||||
5 | - | 1 | 2 | 8 | |||||
833 | 884 | 1,437 | 824 | 3,978 | |||||
8 | 9 | 9 | 8 | 34 | |||||
825 | 875 | 1,428 | 816 | 3,944 | |||||
21 | 21 | 23 | 23 | 88 | |||||
11 | 10 | 10 | 10 | 41 | |||||
$ | 793 | $ | 844 | $ | 1,395 | $ | 783 | $ | 3,815 |
1st Qtr
2023
$ 1,199 1,350 134 30
2,713
734
368
296
-
89
30
1,517
1,196
243
953
1
952
9
943
23
5
$ 915
Per Unit Data
Net income attributable to MPLX LP per limited partner unit:
- Common - basic
- Common - diluted
Weighted average limited partner units outstanding:
- Common - basic
- Common - diluted
$ | 2.86 |
$ | 2.86 |
1,027 | |
1,027 |
$ | 0.78 | $ | 0.83 | $ | 1.36 | $ | 0.78 | $ | 3.75 |
$ | 0.78 | $ | 0.83 | $ | 1.36 | $ | 0.78 | $ | 3.75 |
1,015 | 1,012 | 1,010 | 1,003 | 1,010 | |||||
1,015 | 1,012 | 1,011 | 1,003 | 1,010 |
$ | 0.91 |
$ | 0.91 |
1,001 | |
1,001 |
(1) The third quarter of 2022 includes a $509 million non-cash gain on a lease reclassification.
2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
MPLX LP
Year | |||
(In millions) | 2021 | ||
1 | Net income | $ | 3,112 |
Other comprehensive (loss) income, net of tax: | |||
Remeasurement of pension and other postretirement benefits related to equity | |||
2 | method investments, net of tax | (2) | |
3 | Comprehensive income | 3,110 | |
Less comprehensive income attributable to: | |||
4 | Noncontrolling interests | 35 | |
5 | Comprehensive income attributable to MPLX LP | $ | 3,075 |
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | |||||
2022 | 2022 | 2022 | 2022 | 2022 | |||||
$ | 833 | $ | 884 | $ | 1,437 | $ | 824 | $ | 3,978 |
9 | - | - | - | 9 | |||||
842 | 884 | 1,437 | 824 | 3,987 | |||||
8 | 9 | 9 | 8 | 34 | |||||
$ | 834 | $ | 875 | $ | 1,428 | $ | 816 | $ | 3,953 |
Preliminary
1st Qtr
2023
$ 952
9
3
CONSOLIDATED BALANCE SHEETS
MPLX LP
Preliminary | |||||||
(In millions, except ratio data) | December 31, 2021 | December 31, 2022 | March 31, 2023 | ||||
Assets | |||||||
1 | Cash and cash equivalents | $ | 13 | $ | 238 | $ | 393 |
2 | Receivables, net | 654 | 737 | ||||
3 | Current assets - related parties | 644 | 729 | ||||
4 | Inventories | 142 | 148 | ||||
5 | Other current assets | 54 | 53 | ||||
6 | Total current assets | 1,507 | 1,905 | ||||
7 | Equity method investments | 3,981 | 4,095 | ||||
8 | Property, plant and equipment, net | 20,042 | 18,848 | ||||
9 | Intangibles, net | 831 | 705 | ||||
10 | Goodwill | 7,657 | 7,645 | ||||
11 | Right of use assets, net | 268 | 283 | ||||
12 | Noncurrent assets - related parties | 1,161 | 1,225 | ||||
13 | Other noncurrent assets | 60 | 959 | ||||
14 | Total assets | 35,507 | 35,665 | 35,672 | |||
Liabilities | |||||||
15 | Accounts payable | 172 | 224 | ||||
16 | Accrued liabilities | 363 | 269 | ||||
17 | Current liabilities - related parties | 1,780 | 343 | ||||
18 | Accrued property, plant and equipment | 97 | 128 | ||||
19 | Long-term debt due within one year | 499 | 988 | ||||
20 | Accrued interest payable | 202 | 237 | ||||
21 | Operating lease liabilities | 59 | 46 | ||||
22 | Other current liabilities | 176 | 166 | ||||
23 | Total current liabilities | 3,348 | 2,401 | ||||
24 | Long-term deferred revenue | 383 | 219 | ||||
25 | Long-term liabilities - related parties | 302 | 338 | ||||
26 | Long-term debt | 18,072 | 18,808 | ||||
27 | Deferred income taxes | 10 | 13 | ||||
28 | Long-term operating lease liabilities | 205 | 230 | ||||
29 | Other long-term liabilities | 170 | 142 | ||||
30 | Total liabilities | 22,490 | 22,151 | ||||
31 | Series A preferred units | 965 | 968 | 968 | |||
Equity | |||||||
32 | Common unitholders - public | 8,579 | 8,413 | ||||
33 | Common unitholder - MPC | 2,638 | 3,293 | ||||
34 | Series B preferred units | 611 | 611 | ||||
35 | Accumulated other comprehensive loss | (17) | (8) | ||||
36 | Total MPLX LP partners' capital | 11,811 | 12,309 | ||||
37 | Noncontrolling interests | 241 | 237 | ||||
38 | Total equity | 12,052 | 12,546 | 12,080 | |||
39 | Total liabilities, preferred units and equity | $ | 35,507 | $ | 35,665 | ||
40 | Consolidated total debt to LTM adjusted EBITDA(1) | 3.7x | 3.5x | 3.5x |
(1) Calculated using face value total debt and the last twelve months adjusted EBITDA.
4
CONSOLIDATED STATEMENTS OF CASH FLOWS (YTD)
MPLX LP
Dec. 31 | |||
(In millions) | 2021 | ||
Operating activities: | |||
1 | Net income | $ | 3,112 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
2 | Amortization of deferred financing costs | 70 | |
3 | Depreciation and amortization | 1,287 | |
4 | Impairment expense | 42 | |
5 | Deferred income taxes | (2) | |
6 | Gain on sales-type leases | - | |
7 | (Gain) loss on disposal of assets | (13) | |
8 | Income from equity method investments | (321) | |
9 | Distributions from unconsolidated affiliates | 508 | |
10 | Change in fair value of derivatives | 45 | |
Changes in: | |||
11 | Receivables | (199) | |
12 | Inventories | (24) | |
13 | Accounts payable and accrued liabilities | 193 | |
14 | Assets/liabilities - related parties | 101 | |
15 | Right of use assets/operating lease liabilities | (2) | |
16 | Deferred revenue | 88 | |
17 | All other, net | 26 | |
18 | Net cash provided by operating activities | 4,911 | |
Investing activities: | |||
19 | Additions to property, plant and equipment | (529) | |
20 | Acquisitions, net of cash acquired | - | |
21 | Disposal of assets | 126 | |
22 | Investments in unconsolidated affiliates | (151) | |
23 | Distributions from unconsolidated affiliates - return of capital | 36 | |
24 | All other, net | - | |
25 | Net cash used in investing activities | (518) | |
Financing activities: | |||
26 | Long-term debt - borrowings | 4,175 | |
27 | Long-term debt - repayments | (5,821) | |
28 | Related party debt - borrowings | 8,493 | |
29 | Related party debt - repayments | (7,043) | |
30 | Debt issuance costs | - | |
31 | Unit repurchases | (630) | |
32 | Redemption of Series B preferred units | - | |
33 | Distributions to noncontrolling interests | (39) | |
34 | Distributions to Series A preferred unitholders | (100) | |
35 | Distributions to Series B preferred unitholders | (41) | |
36 | Distributions to unitholders and general partner | (3,432) | |
37 | Contributions from MPC | 45 | |
38 | All other, net | (2) | |
39 | Net cash used in financing activities | (4,395) | |
40 | Net change in cash and cash equivalents and restricted cash | (2) | |
41 | Cash and cash equivalents and restricted cash at beginning of period | 15 | |
42 | Cash and cash equivalents and restricted cash at end of period | $ | 13 |
Preliminary | ||||||||||
Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 | Mar. 31 | ||||||
2022 | 2022 | 2022 | 2022 | 2023 | ||||||
$ | 833 | $ | 1,717 | $ | 3,154 | $ | 3,978 | $ | 952 | |
18 | 36 | 55 | 73 | |||||||
313 | 623 | 925 | 1,230 | 296 | ||||||
- | - | - | - | - | ||||||
4 | 4 | 4 | 3 | |||||||
- | - | (509) | (509) | |||||||
18 | 16 | 23 | 34 | |||||||
(99) | (210) | (335) | (476) | (134) | ||||||
120 | 258 | 405 | 578 | |||||||
(9) | (16) | (62) | (47) | |||||||
(87) | (131) | (219) | 14 | |||||||
(7) | (15) | (7) | (5) | |||||||
73 | 253 | 49 | (33) | |||||||
(112) | - | 52 | 40 | |||||||
(1) | - | 1 | (3) | |||||||
16 | 41 | 64 | 108 | |||||||
45 | 36 | 51 | 34 | |||||||
1,125 | 2,612 | 3,651 | 5,019 | 1,227 | ||||||
(169) | (294) | (535) | (806) | (169) | ||||||
- | (28) | (28) | (28) | |||||||
3 | 67 | 74 | 84 | |||||||
(110) | (156) | (198) | (217) | (51) | ||||||
- | - | 11 | 11 | - | ||||||
- | - | - | - | |||||||
(276) | (411) | (676) | (956) | (220) | ||||||
2,385 | 2,385 | 3,379 | 3,379 | |||||||
(1,201) | (1,201) | (2,202) | (2,202) | |||||||
1,849 | 2,824 | 2,824 | 2,989 | |||||||
(2,976) | (4,274) | (4,274) | (4,439) | |||||||
(16) | (16) | (29) | (29) | |||||||
(100) | (135) | (315) | (491) | - | ||||||
- | - | - | - | |||||||
(9) | (19) | (29) | (38) | (10) | ||||||
(21) | (42) | (63) | (85) | |||||||
(21) | (21) | (41) | (41) | |||||||
(716) | (1,430) | (2,144) | (2,921) | |||||||
10 | 17 | 30 | 44 | 8 | ||||||
(4) | (4) | (3) | (4) | |||||||
(820) | (1,916) | (2,867) | (3,838) | (852) | ||||||
29 | 285 | 108 | 225 | |||||||
13 | 13 | 13 | 13 | |||||||
$ | 42 | $ | 298 | $ | 121 | $ | 238 |
5
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MPLX LP published this content on 02 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2023 11:12:06 UTC.