MPLX(MPLX) - 2024 Q3 - Quarterly Results

markdown [Financial Highlights](index=1&type=section&id=Financial%20Highlights) MPLX reported strong Q3 2024 financial results, with significant growth in net income and adjusted EBITDA, alongside increased unitholder distributions Q3 2024 Key Financial Metrics (in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Income attributable to MPLX | $1,037 million | $918 million | | Adjusted EBITDA attributable to MPLX | $1,714 million | $1,596 million | | Net Cash from Operating Activities | $1,415 million | $1,244 million | | Distributable Cash Flow (DCF) | $1,446 million | $1,373 million | | Distribution per Common Unit | $0.9565 | $0.8500 | - The quarterly distribution was increased by **12.5%** to **$0.9565** per common unit, which annualizes to **$3.83** per unit[1](index=1&type=chunk) - The company returned **$949 million** of capital to unitholders during the quarter, which includes distributions and **$76 million** in unit repurchases[1](index=1&type=chunk)[4](index=4&type=chunk) - Management stated that the durability of cash flows supported the distribution increase and expects the growing portfolio to support similar annual increases in the future[4](index=4&type=chunk) [Segment Results](index=2&type=section&id=Segment%20Results) Both MPLX operating segments showed year-over-year growth in Q3 2024, with L&S driven by higher rates and G&P by increased volumes Segment Adjusted EBITDA (in millions) | Segment | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Logistics and Storage | $1,157 | $1,091 | | Gathering and Processing | $557 | $505 | [Logistics & Storage (L&S)](index=2&type=section&id=Logistics%20%26%20Storage) L&S segment adjusted EBITDA rose to $1,157 million in Q3 2024, fueled by higher tariffs and increased pipeline and terminal throughputs - The **$66 million** increase in adjusted EBITDA was primarily driven by higher rates and throughputs, including growth from equity affiliates, partially offset by higher operating expenses[6](index=6&type=chunk) L&S Operating Metrics (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Pipeline Throughput | 6.0 million bpd | 5.9 million bpd | +1% | | Average Pipeline Tariff | $1.01 / barrel | $0.99 / barrel | +2% | | Terminal Throughput | 3.3 million bpd | 3.2 million bpd | +1% | [Gathering & Processing (G&P)](index=2&type=section&id=Gathering%20%26%20Processing) G&P segment adjusted EBITDA grew to $557 million in Q3 2024, driven by significant volume increases and recent asset acquisitions in key basins - The increase in G&P adjusted EBITDA was primarily due to increased volumes, including contributions from recently acquired assets in the Utica and Permian basins[8](index=8&type=chunk) G&P Operating Volume Growth (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change YoY | | :--- | :--- | :--- | | Gathered Volumes | 6.7 bcf/d | +8% | | Processed Volumes | 9.8 bcf/d | +9% | | Fractionated Volumes | 635 thousand bpd | +4% | Marcellus Operations Volume Growth (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change YoY | | :--- | :--- | :--- | | Gathered Volumes | 1.5 bcf/d | +11% | | Processed Volumes | 6.0 bcf/d | +4% | | Fractionated Volumes | 550 thousand bpd | +1% | [Strategic Update](index=3&type=section&id=Strategic%20Update) MPLX is expanding capacity in key basins, with L&S advancing Permian pipeline projects and G&P adding processing and fractionation capacity through 2026 - In the L&S segment, MPLX is expanding its Permian and Bakken value chains through natural gas, NGL, and crude pipeline projects[11](index=11&type=chunk) - In the G&P segment, MPLX is focused on responding to producer demand in the Permian and Marcellus basins with new processing plants[12](index=12&type=chunk) - A new processing plant and de-ethanizer in the Northeast is expected to bring total processing and fractionation capacity to **8.1 bcf/d** and **800 mbpd**, respectively, in the **second half of 2026**[1](index=1&type=chunk)[14](index=14&type=chunk) [L&S Segment Projects](index=3&type=section&id=L%26S%20Segment%20Projects) The L&S segment is advancing key pipeline projects to enhance its Permian basin value chain, including the BANGL JV expansion and new natural gas pipelines - The BANGL joint venture pipeline is being expanded to increase capacity to **250 thousand bpd**, with completion expected in **Q1 2025**[12](index=12&type=chunk) - The Blackcomb and Rio Bravo pipelines are being progressed to transport Permian natural gas to the Gulf Coast, with an expected in-service date in **H2 2026**[12](index=12&type=chunk) [G&P Segment Projects](index=3&type=section&id=G%26P%20Segment%20Projects) G&P segment is expanding capacity with new plants in Permian and Marcellus, increasing gas processing and fractionation capabilities by 2026, with Utica volumes surging - **Permian:** Preakness II (**200 mmcf/d**) began operations in July; Secretariat (**200 mmcf/d**) is expected online in **H2 2025**. These will bring Delaware basin processing capacity to **1.4 bcf/d**[13](index=13&type=chunk) - **Marcellus:** Harmon Creek II (**200 mmcf/d**) was placed in service in February; Harmon Creek III (**300 mmcf/d** plant and **40k bpd** de-ethanizer) is expected online in **H2 2026**[14](index=14&type=chunk) - **Utica:** The company is increasing utilization of existing capacity, with gas processing volumes up **50%** year-to-date versus the same period in 2023[14](index=14&type=chunk) [Financial Position and Liquidity](index=3&type=section&id=Financial%20Position%20and%20Liquidity) As of September 30, 2024, MPLX maintained a robust financial position with $2.4 billion cash, $3.5 billion available liquidity, and a stable 3.4x leverage ratio Liquidity Position as of Sept 30, 2024 (in billions) | Item | Amount | | :--- | :--- | | Cash | $2.4 billion | | Available on Revolving Credit Facility | $2.0 billion | | Available on Intercompany Loan with MPC | $1.5 billion | - The partnership's leverage ratio was **3.4x**, while the stability of cash flows supports leverage in the range of **4.0x**[15](index=15&type=chunk) - MPLX repurchased **$76 million** of common units in Q3 2024 and had approximately **$620 million** remaining under its repurchase authorization as of September 30, 2024[15](index=15&type=chunk) [Financial Tables and Reconciliations](index=7&type=section&id=Financial%20Tables%20and%20Reconciliations) This section provides detailed financial statements, including consolidated results, balance sheet data, operating statistics, and non-GAAP reconciliations for Q3 2024 [Condensed Consolidated Results of Operations](index=7&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) For Q3 2024, MPLX reported increased total revenues and net income attributable to MPLX LP, with diluted EPS rising to $1.01 Consolidated Results of Operations (in millions, except per unit data) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total revenues and other income | $2,972 | $2,912 | | Income from operations | $1,275 | $1,154 | | Net income attributable to MPLX LP | $1,037 | $918 | | Diluted EPS | $1.01 | $0.89 | [Select Financial and Cash Flow Data](index=8&type=section&id=Select%20Financial%20and%20Cash%20Flow%20Data) In Q3 2024, MPLX declared $974 million in distributions and generated $1,415 million in net cash from operating activities, with a 1.5x distribution coverage Cash Flow Data (in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,415 | $1,244 | | Net cash used in investing activities | $(536) | $(236) | | Net cash used in financing activities | $(954) | $(803) | - Total GP and LP distributions declared for Q3 2024 were **$974 million**, compared to **$851 million** for Q3 2023[31](index=31&type=chunk) [Select Balance Sheet Data](index=9&type=section&id=Select%20Balance%20Sheet%20Data) As of September 30, 2024, MPLX's balance sheet showed total assets of $38.5 billion and total debt of $22.1 billion, with a 3.4x debt to LTM adjusted EBITDA ratio Balance Sheet Highlights (in millions) | Item | Sept 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,426 | $1,048 | | Total assets | $38,515 | $36,529 | | Total debt | $22,086 | $20,431 | | Total equity | $13,779 | $12,689 | [Operating Statistics](index=9&type=section&id=Operating%20Statistics) In Q3 2024, L&S segment pipeline throughput increased 1% with a 2% tariff rise, while G&P volumes showed strong growth across all activities L&S Operating Statistics (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change | | :--- | :--- | :--- | | Total Pipeline Throughput (mbpd) | 5,951 | 1% | | Average Tariff Rate ($/barrel) | $1.01 | 2% | | Terminal Throughput (mbpd) | 3,268 | 1% | G&P Operated Statistics (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change | | :--- | :--- | :--- | | Total Gathering Throughput (MMcf/d) | 6,737 | 8% | | Total Natural Gas Processed (MMcf/d) | 9,775 | 9% | | Total C2+ NGLs Fractionated (mbpd) | 635 | 4% | [Reconciliations of Non-GAAP Measures](index=12&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of non-GAAP financial measures like Adjusted EBITDA, DCF, and Adjusted Free Cash Flow to their GAAP counterparts for Q3 2024 - These tables reconcile GAAP measures like Net Income and Net Cash Provided by Operating Activities to non-GAAP measures such as Adjusted EBITDA, Distributable Cash Flow (DCF), and Adjusted Free Cash Flow (Adjusted FCF)[18](index=18&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Q3 2024 Reconciliation from Net Income (in millions) | Item | Amount | | :--- | :--- | | Net Income | $1,047 | | ...Adjustments... | ... | | **Adjusted EBITDA attributable to MPLX LP** | **$1,714** | | ...Adjustments... | ... | | **DCF attributable to LP unitholders** | **$1,440** | Q3 2024 Reconciliation from Operating Cash Flow (in millions) | Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,415 | | Net cash used in investing activities | $(536) | | Other adjustments | $(2) | | **Adjusted free cash flow** | **$876** | [Capital Expenditures](index=17&type=section&id=Capital%20Expenditures) MPLX's total growth capital expenditures for Q3 2024 were $258 million, with maintenance capital expenditures also increasing to $39 million Capital Expenditures (in millions) | Category | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total growth capital expenditures | $258 | $159 | | Total maintenance capital expenditures | $39 | $28 |