MPLX LP Q4 Earnings Beat Estimates on Higher Throughput

Core Insights - MPLX LP reported fourth-quarter 2025 earnings of $1.17 per unit, exceeding the Zacks Consensus Estimate of $1.08 and increasing from $1.07 in the same quarter last year [2] - Total quarterly revenues were $3.25 billion, falling short of the Zacks Consensus Estimate of $3.32 billion but rising from $3.06 billion year-over-year [2] - The strong earnings were driven by increased throughput in oil and product pipelines, as well as natural gas and NGL gathering [2] Segmental Highlights - Adjusted EBITDA from the Crude Oil and Products Logistics segment rose nearly 5% to $1.18 billion from $1.12 billion a year ago, supported by a $37 million benefit from a FERC tariff ruling and higher rates, despite increased operating expenses [3] - Pipeline throughputs averaged 5.91 million barrels per day (mbpd), a 1% increase from 5.86 mbpd in the prior-year quarter, while terminal throughputs decreased by 2% to 3.08 mbpd from 3.13 mbpd [3] - Adjusted EBITDA from the Natural Gas and NGL Services segment was $629 million, down almost 2% from $639 million in the year-ago quarter, primarily due to divestitures and lower natural gas liquids prices, partially offset by contributions from acquired assets and increased volumes [4] Costs & Expenses - Total costs and expenses increased to $1.77 billion from $1.72 billion a year ago, mainly due to higher operating expenses, including purchased product costs [6] Cash Flow - Distributable cash flow for the quarter was $1.42 billion, providing 1.3X distribution coverage, down from $1.48 billion in the year-ago quarter [7] - Adjusted free cash flow improved to $1.57 billion from $1.32 billion in the corresponding period of 2024 [7] Balance Sheet - As of December 31, 2025, MPLX had cash and cash equivalents of $2.14 billion and total debt of $25.65 billion [8] Future Outlook - MPLX expects to maintain mid-single-digit adjusted EBITDA growth while continuing investments in its Permian and Marcellus basin operations, with a capital spending plan of $2.7 billion for 2026 [11] - This plan includes $2.4 billion for growth investments and $300 million for maintenance activities, with new investments expected to be operational by the second half of 2028 [11]