MPLX(US:MPLX)2024-04-30 17:05PART I – FINANCIAL INFORMATION Financial Statements The unaudited consolidated financial statements for Q1 2024 and 2023 show net income of $1,015 million and diluted EPS of $0.98 Consolidated Statements of Income (Unaudited) | (In millions, except per unit data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total revenues and other income | $2,846 | $2,713 | | Income from operations | $1,251 | $1,196 | | Net income | $1,015 | $952 | | Net income attributable to MPLX LP | $1,005 | $943 | | Common - diluted EPS | $0.98 | $0.91 | Consolidated Balance Sheets (Unaudited) | (In millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $2,139 | $2,808 | | Total assets | $36,461 | $36,529 | | Total current liabilities | $2,960 | $2,624 | | Long-term debt | $18,805 | $19,296 | | Total liabilities | $22,814 | $22,945 | | Total equity | $13,086 | $12,689 | Consolidated Statements of Cash Flows (Unaudited) | (In millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,291 | $1,227 | | Net cash used in investing activities | $(996) | $(220) | | Net cash used in financing activities | $(958) | $(852) | | Net change in cash | $(663) | $155 | Notes to Consolidated Financial Statements (Unaudited) Notes detail the Utica Midstream Acquisition, $75 million in unit repurchases, and a $170 million potential Dakota Access Pipeline obligation - On March 22, 2024, MPLX used $625 million cash to acquire additional ownership in existing joint ventures and gathering assets in the Utica basin, increasing its interest in Ohio Gathering Company L.L.C. (OGC) and Ohio Condensate Company L.L.C. (OCC)35 - During Q1 2024, the company repurchased approximately 1.9 million common units for $75 million As of March 31, 2024, $771 million remained under the $1 billion repurchase authorization535556 - Declared a Q1 2024 cash distribution of $0.850 per common unit, an increase from $0.775 in Q1 2023 Total declared distributions for Q1 2024 were $874 million5960 - MPLX has a maximum potential undiscounted payment obligation of approximately $170 million under a Contingent Equity Contribution Agreement related to the Bakken Pipeline system (Dakota Access) if a permanent shutdown occurs107 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2024 results, highlighting 7.6% Adjusted EBITDA growth to $1.6 billion and 7.9% DCF rise to $1.4 billion - Returned $951 million of capital to unitholders in Q1 2024 through distributions and unit repurchases122 - Progressed growth strategy with the Utica Midstream Acquisition and entered a definitive agreement to combine the Whistler and Rio Bravo Pipeline projects in a new joint venture122 Key Financial Metrics (Non-GAAP) | (In millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Variance | | :--- | :--- | :--- | :--- | | Adjusted EBITDA attributable to MPLX LP | $1,635 | $1,519 | $116 | | DCF attributable to MPLX LP | $1,370 | $1,268 | $102 | L&S Segment Results L&S segment reported 7.0% Adjusted EBITDA increase to $1,098 million, driven by higher pipeline tariff rates and other income L&S Segment Financial Highlights | (In millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | Total segment revenues and other income | $1,556 | $1,460 | $96 | | Segment Adjusted EBITDA | $1,098 | $1,026 | $72 | L&S Operating Data | | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Pipeline throughput (mbpd) | | | | Crude oil pipelines | 3,462 | 3,642 | | Product pipelines | 1,831 | 1,988 | | Total pipelines | 5,293 | 5,630 | | Terminal throughput (mbpd) | 2,930 | 3,091 | G&P Segment Results G&P segment's Adjusted EBITDA increased 8.9% to $537 million due to higher volumes and fees, partially offset by lower NGL prices G&P Segment Financial Highlights | (In millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | Total segment revenues and other income | $1,290 | $1,253 | $37 | | Segment Adjusted EBITDA | $537 | $493 | $44 | G&P Operating Data (MPLX LP Consolidated) | | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gathering Throughput (MMcf/d) | 3,839 | 3,342 | | Natural Gas Processed (MMcf/d) | 6,993 | 6,284 | | C2 + NGLs Fractionated (mbpd) | 588 | 565 | Liquidity and Capital Resources MPLX maintains $3.9 billion in total liquidity, with a $1.1 billion capital plan for 2024, returning capital via distributions and unit repurchases Total Liquidity as of March 31, 2024 | (In millions) | Amount | | :--- | :--- | | Available Capacity (Credit Facilities) | $3,500 | | Cash and cash equivalents | $385 | | Total liquidity | $3,885 | - The initial capital investment plan for 2024 is $1.1 billion, consisting of $950 million for growth and $150 million for maintenance189 - Declared a Q1 2024 distribution of $0.850 per common unit, totaling $864 million, payable on May 13, 2024185 Quantitative and Qualitative Disclosures about Market Risk This section outlines market risks from commodity prices and interest rates, with a 100-basis-point rate decrease increasing fixed-rate debt fair value by $1.5 billion - The company is exposed to market risks from commodity prices and interest rates but held no hedging derivative instruments as of March 31, 2024201 Interest Rate Risk Sensitivity Analysis | Debt Type | Fair Value (Mar 31, 2024) | Change in Fair Value (100 bps decrease) | | :--- | :--- | :--- | | Fixed-rate | $19,206 million | $1,507 million | Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - Based on an evaluation, the CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024209 - There were no changes in internal control over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, internal controls210 PART II – OTHER INFORMATION Legal Proceedings The company is involved in various legal proceedings, but management does not expect a material adverse effect on its financial position or results - The company is involved in various legal actions but does not expect them to have a material adverse effect on its consolidated financial position, results of operations, or cash flows212 - There have been no material changes to the legal matters previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023214 Risk Factors There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023215 Unregistered Sales of Equity Securities and Use of Proceeds MPLX repurchased 1,872,917 common units for approximately $75 million in Q1 2024, with $771 million remaining under the repurchase authorization Common Unit Repurchases for Q1 2024 | Period | Total Common Units Purchased | Average Price Paid per Common Unit | | :--- | :--- | :--- | | Jan 2024 | — | $— | | Feb 2024 | 609,120 | $39.40 | | Mar 2024 | 1,263,797 | $40.36 | | Total | 1,872,917 | $40.04 | - As of March 31, 2024, $771 million remained available for repurchase under the publicly announced program217 Other Information No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024 - During the quarter ended March 31, 2024, no director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"219 Exhibits This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The filing includes CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2), a Form of 2024 MPLX Phantom Unit Award Agreement (Exhibit 10.1), and Inline XBRL data files221