MPLX(MPLX) - 2024 Q1 - Quarterly Results

Q1 2024 Financial Results MPLX reported strong Q1 2024 financial performance with increased net income, adjusted EBITDA, and distributable cash flow, while maintaining healthy leverage and returning capital to unitholders Financial Highlights MPLX achieved strong Q1 2024 financial results, marked by increased net income, adjusted EBITDA, and distributable cash flow, alongside robust capital returns Q1 2024 Key Financial Metrics | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income Attributable to MPLX | $1,005 million | $943 million | | Adjusted EBITDA Attributable to MPLX | $1,635 million | $1,519 million | | Net Cash from Operating Activities | $1,291 million | $1,227 million | | Distributable Cash Flow (DCF) | $1,370 million | $1,268 million | | Distribution per Common Unit | $0.850 | $0.775 | | Distribution Coverage | 1.6x | 1.6x | | Leverage Ratio (Debt to LTM Adj. EBITDA) | 3.2x | 3.5x | - Returned $951 million of capital to unitholders in Q1 2024, which includes distributions and $75 million in common unit repurchases[5][18] Segment Performance Both Logistics & Storage and Gathering & Processing segments demonstrated strong Q1 2024 adjusted EBITDA growth driven by strategic factors Logistics & Storage (L&S) L&S segment adjusted EBITDA increased to $1,098 million in Q1 2024, driven by higher tariff rates and equity affiliate contributions despite lower throughputs L&S Segment Adjusted EBITDA (Q1 YoY) | Period | Adjusted EBITDA | | :--- | :--- | | Q1 2024 | $1,098 million | | Q1 2023 | $1,026 million | - The increase in L&S adjusted EBITDA was primarily driven by higher rates and growth from equity affiliates[9] - Changes in refinery volume had a limited financial impact due to contract structures[9] L&S Operational Data (Q1 YoY) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Pipeline Throughput (million bpd) | 5.3 | 5.6 | (6)% | | Average Pipeline Tariff ($/barrel) | $1.02 | $0.90 | +13% | | Terminal Throughput (million bpd) | 2.9 | 3.1 | (5)% | Gathering & Processing (G&P) G&P segment adjusted EBITDA grew to $537 million in Q1 2024, primarily due to increased processed and fractionated volumes and a non-cash gain G&P Segment Adjusted EBITDA (Q1 YoY) | Period | Adjusted EBITDA | | :--- | :--- | | Q1 2024 | $537 million | | Q1 2023 | $493 million | - The G&P EBITDA increase was primarily due to higher volumes and a $20 million non-cash gain from the acquisition of the remaining interest in a Utica joint venture, partially offset by higher operating expenses[11] G&P Operational Volumes (Q1 YoY) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Gathered Volumes (bcf/d) | 6.2 | 6.4 | (2)% | | Processed Volumes (bcf/d) | 9.4 | 8.6 | +9% | | Fractionated Volumes (thousand bpd) | 632 | 593 | +7% | Strategic Update MPLX is advancing its growth strategy through key acquisitions, strategic joint ventures, and significant pipeline and processing plant expansions in core basins - Acquired additional ownership in Utica joint ventures and a dry gas gathering system for $625 million, closing the transaction in March 2024[13] - Entered a definitive agreement to combine the Whistler Pipeline and Rio Bravo Pipeline project in a new joint venture to expand its Permian natural gas value chain[14] - Progressing on L&S projects including the Agua Dulce Corpus Christi (ADCC) Pipeline lateral (in-service Q3 2024) and the BANGL NGL pipeline expansion (completion H1 2025)[15] - Advanced G&P projects: the Harmon Creek II plant in the Marcellus was placed in service, the Preakness II plant in the Delaware Basin is nearing startup, and construction began on the Secretariat plant, expected online in H2 2025[16] Financial Position and Liquidity MPLX maintains a strong liquidity position with $3.5 billion available, a healthy 3.2x leverage ratio, and continued unit repurchases Liquidity Position as of March 31, 2024 | Item | Amount | | :--- | :--- | | Cash | $385 million | | Bank Revolving Credit Facility | $2.0 billion | | Intercompany Loan Agreement (with MPC) | $1.5 billion | | Leverage Ratio | 3.2x | - Repurchased $75 million of common units in Q1 2024[18] - Approximately $771 million remains available under the current unit repurchase authorization[18] Financial Tables and Reconciliations This section provides detailed financial statements, operating statistics, capital expenditure breakdowns, and non-GAAP reconciliations for comprehensive analysis Condensed Consolidated Results of Operations MPLX reported increased total revenues and net income attributable to MPLX LP in Q1 2024, with diluted net income per common unit rising to $0.98 Q1 2024 Income Statement Highlights (YoY) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues and Other Income | $2,846 million | $2,713 million | | Income from Operations | $1,251 million | $1,196 million | | Net Income Attributable to MPLX LP | $1,005 million | $943 million | | Diluted Net Income per Common Unit | $0.98 | $0.91 | Select Financial Statistics Q1 2024 saw increased distributions and net cash from operating activities, though net cash used in investing activities rose significantly due to acquisitions Q1 2024 Financial & Cash Flow Data (YoY) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total GP and LP Distribution Declared | $864 million | $776 million | | Net Cash from Operating Activities | $1,291 million | $1,227 million | | Net Cash used in Investing Activities | ($996) million | ($220) million | | Net Cash used in Financing Activities | ($958) million | ($852) million | Financial Data (Balance Sheet) MPLX's balance sheet as of March 31, 2024, shows stable total assets and debt, with a slightly improved consolidated debt to LTM adjusted EBITDA ratio of 3.2x Balance Sheet Highlights | Metric | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $385 million | $1,048 million | | Total assets | $36,461 million | $36,529 million | | Total debt | $20,444 million | $20,431 million | | Total equity | $13,086 million | $12,689 million | | Consolidated debt to LTM adjusted EBITDA | 3.2x | 3.3x | Operating Statistics Q1 2024 operating statistics show L&S throughput declines offset by higher tariffs, while G&P volumes experienced strong growth in processed and fractionated volumes L&S Operating Statistics (Q1 YoY) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Pipeline Throughput (mbpd) | 5,293 | 5,630 | (6)% | | Average Tariff Rate ($/barrel) | $1.02 | $0.90 | 13% | | Terminal Throughput (mbpd) | 2,930 | 3,091 | (5)% | G&P Operated Operating Statistics (Q1 YoY) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Gathering Throughput (MMcf/d) | 6,226 | 6,359 | (2)% | | Total Natural Gas Processed (MMcf/d) | 9,371 | 8,605 | 9% | | Total C2+ NGLs Fractionated (mbpd) | 632 | 593 | 7% | Capital Expenditures Q1 2024 growth capital expenditures significantly increased to $259 million, excluding $622 million for acquisitions, while maintenance capital decreased Capital Expenditures (Q1 YoY) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Growth Capital Expenditures | $259 million | $154 million | | Total Maintenance Capital Expenditures | $35 million | $44 million | | Total Growth and Maintenance | $294 million | $198 million | - Total growth capital expenditures for Q1 2024 exclude $622 million related to acquisitions, net of cash acquired[55] Non-GAAP Reconciliations This section provides comprehensive reconciliations for key non-GAAP financial measures, including Adjusted EBITDA, DCF, leverage ratio, and Adjusted Free Cash Flow - Provides a reconciliation of Segment Adjusted EBITDA to Net Income and Income from Operations[43][44] - Reconciles Adjusted EBITDA and DCF from both Net Income and Net Cash Provided by Operating Activities[45][51] - Includes a detailed calculation of the Last Twelve Months (LTM) Adjusted EBITDA used for the leverage ratio[48]