(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number | Description | |
Press Release issued by MPLX LP on January 29, 2020 | ||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MPLX LP | |||
By: | MPLX GP LLC, its General Partner | ||
Date: January 29, 2020 | By: | /s/ Pamela K. M. Beall | |
Name: Pamela K. M. Beall | |||
Title: Executive Vice President and Chief Financial Officer |
• | Reported fourth-quarter net loss attributable to MPLX of $581 million and full-year net income attributable to MPLX of $1.0 billion; includes non-cash impairment charges of $1.2 billion in fourth quarter primarily related to goodwill associated with the Andeavor Logistics G&P businesses acquired by MPC as part of its combination with Andeavor in October 2018 |
• | Reported fourth-quarter adjusted EBITDA attributable to MPLX of $1.3 billion and full-year adjusted EBITDA attributable to MPLX of $4.3 billion, or $5.1 billion including results of Andeavor Logistics |
• | Generated $4.1 billion in net cash provided by operating activities for the full-year 2019, supporting the return of capital of approximately $2.8 billion to unitholders |
• | Reduced 2020 growth capital spending target to approximately $1.5 billion |
• | Targeting positive free cash flow, after capital investments and distributions, in 2021 |
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||||||
(In millions, except per unit and ratio data) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net (loss) income attributable to MPLX | $ | (581 | ) | $ | 434 | $ | 1,033 | $ | 1,818 | ||||||||||
Adjusted net (loss) income attributable to MPLX(a) | (581 | ) | 606 | 1,434 | 1,990 | ||||||||||||||
Adjusted EBITDA attributable to MPLX LP (excluding predecessor results)(b) | 1,319 | 911 | 4,334 | 3,475 | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP (including predecessor results)(c) | 1,319 | 1,246 | 5,104 | 3,810 | |||||||||||||||
Net cash provided by operating activities | 1,092 | 1,044 | 4,082 | 3,071 | |||||||||||||||
Distributable cash flow attributable to MPLX LP(c) | 1,045 | 955 | 4,100 | 3,035 | |||||||||||||||
Distribution per common unit(d) | $ | 0.6875 | $ | 0.6475 | $ | 2.6900 | $ | 2.5300 | |||||||||||
Distribution coverage ratio(e) | 1.42x | 1.80x | 1.51x | 1.49x | |||||||||||||||
Consolidated debt to adjusted EBITDA(f) | 4.1x | 3.9x | N/A | N/A | |||||||||||||||
(a) | Includes net income attributable to predecessor. |
(b) | Non-GAAP measure calculated before distributions to preferred unitholders. See reconciliation below. Excludes adjusted EBITDA attributable to predecessor. |
(c) | Non-GAAP measure calculated before distributions to preferred unitholders. See reconciliation below. Includes adjusted EBITDA and DCF adjustments attributable to predecessor. |
(d) | Distributions declared by the board of directors of MPLX's general partner. |
(e) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distribution declared. For the three months and year ended December 31, 2018, DCF attributable to predecessor for the fourth quarter has been included with no corresponding distribution being declared by MPLX relating to the predecessor, resulting in distribution coverage ratios of 1.80x and 1.49x, respectively. For the year ended December 31, 2019, DCF attributable to predecessor has been included with no corresponding distribution being declared by MPLX relating to the predecessor for the first quarter of 2019, resulting in a distribution coverage ratio of 1.51x. |
(f) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. See reconciliation below. |
(In millions) | Three Months Ended Dec. 31 | Year Ended Dec. 31 | |||||||||||||
Segment income (loss) from operations (unaudited) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Logistics and Storage | $ | 677 | $ | 637 | $ | 2,752 | $ | 1,924 | |||||||
Gathering and Processing | (1,023 | ) | 254 | (375 | ) | 804 | |||||||||
Segment adjusted EBITDA attributable to MPLX LP (unaudited) | |||||||||||||||
Logistics and Storage | 853 | 809 | 3,351 | 2,319 | |||||||||||
Gathering and Processing | $ | 466 | $ | 437 | $ | 1,753 | $ | 1,491 | |||||||
• | Gathered volumes: 6.2 billion cubic feet per day, a 5% increase versus the fourth quarter of 2018 |
• | Processed volumes: 8.8 billion cubic feet per day, a 7% increase versus the fourth quarter of 2018 |
• | Fractionated volumes: 557 thousand barrels per day, an 11% increase versus the fourth quarter of 2018 |
• | Gathered volumes averaged 3.6 billion cubic feet per day (bcf/d) in the fourth quarter, an 11% increase versus the fourth quarter of 2018. For the full year, gathered volumes increased 18% year-over-year |
• | Processed volumes averaged 6.1 bcf/d in the fourth quarter, a 7% increase versus the fourth quarter of 2018 driven by the addition of the Sherwood 12 and 13 processing plants, which were placed in service during the quarter. For the full year, processed volumes increased 14% year-over-year |
• | Fractionated volumes averaged 487 thousand barrels per day in the fourth quarter, a 9% increase versus the fourth quarter of 2018. The increase was primarily driven by higher volumes from expansions at the Hopedale and Sherwood complexes. For the full year, fractionated volumes increased 12% year-over-year |
Condensed Results of Operations (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions, except per unit data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenues and other income: | |||||||||||||||
Operating revenue | $ | 1,014 | $ | 1,009 | $ | 3,832 | $ | 3,315 | |||||||
Operating revenue - related parties | 1,231 | 1,189 | 4,793 | 3,337 | |||||||||||
Income from equity method investments | 35 | 72 | 290 | 247 | |||||||||||
Other income | 36 | 25 | 126 | 106 | |||||||||||
Total revenues and other income | 2,316 | 2,295 | 9,041 | 7,005 | |||||||||||
Costs and expenses: | |||||||||||||||
Operating expenses | 625 | 649 | 2,316 | 2,055 | |||||||||||
Operating expenses - related parties | 378 | 326 | 1,396 | 956 | |||||||||||
Depreciation and amortization | 338 | 302 | 1,254 | 867 | |||||||||||
Impairment expense | 1,197 | — | 1,197 | — | |||||||||||
General and administrative expenses | 95 | 99 | 388 | 316 | |||||||||||
Other taxes | 29 | 28 | 113 | 83 | |||||||||||
Total costs and expenses | 2,662 | 1,404 | 6,664 | 4,277 | |||||||||||
Income from operations | (346 | ) | 891 | 2,377 | 2,728 | ||||||||||
Interest and other financial costs | 229 | 280 | 915 | 714 | |||||||||||
Income before income taxes | (575 | ) | 611 | 1,462 | 2,014 | ||||||||||
(Benefit) provision for income taxes | (2 | ) | — | — | 8 | ||||||||||
Net (loss) income | (573 | ) | 611 | 1,462 | 2,006 | ||||||||||
Less: Net income attributable to noncontrolling interests | 8 | 5 | 28 | 16 | |||||||||||
Less: Net income attributable to Predecessor | — | 172 | 401 | 172 | |||||||||||
Net (loss) income attributable to MPLX LP | (581 | ) | 434 | 1,033 | 1,818 | ||||||||||
Less: Series A preferred unit distributions | 20 | 20 | 81 | 75 | |||||||||||
Less: Series B preferred unit distributions | 10 | — | 17 | — | |||||||||||
Limited partners’ interest in net (loss) income attributable to MPLX LP | $ | (611 | ) | $ | 414 | $ | 935 | $ | 1,743 | ||||||
Per Unit Data | |||||||||||||||
Net (loss) income attributable to MPLX LP per limited partner unit: | |||||||||||||||
Common - basic | $ | (0.58 | ) | $ | 0.52 | $ | 1.00 | $ | 2.29 | ||||||
Common - diluted | $ | (0.58 | ) | $ | 0.52 | $ | 1.00 | $ | 2.29 | ||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units – basic | 1,058 | 794 | 906 | 761 | |||||||||||
Common units – diluted | 1,058 | 794 | 907 | 761 | |||||||||||
Select Financial Statistics (unaudited) | Three Months Ended Dec. 31 | Year Ended Dec. 31 | |||||||||||||
(In millions, except ratio data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Common unit distributions declared by MPLX | |||||||||||||||
Common units (LP) - public(a) | $ | 270 | $ | 187 | $ | 988 | $ | 732 | |||||||
Common units - MPC(a)(b) | 446 | 327 | 1,647 | 1,253 | |||||||||||
Total GP and LP distribution declared | 716 | 514 | 2,635 | 1,985 | |||||||||||
Preferred unit distributions(c) | |||||||||||||||
Series A preferred unit distributions(d) | 20 | 20 | 81 | 75 | |||||||||||
Series B preferred unit distributions(e) | 11 | — | 42 | — | |||||||||||
Total preferred unit distributions | 31 | 20 | 123 | 75 | |||||||||||
Other Financial Data | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP (excluding predecessor results)(f)(g) | 1,319 | 911 | 4,334 | 3,475 | |||||||||||
Adjusted EBITDA attributable to MPLX LP (including predecessor results)(f)(h) | 1,319 | 1,246 | 5,104 | 3,810 | |||||||||||
DCF attributable to GP and LP unitholders(f)(h) | $ | 1,015 | $ | 925 | $ | 3,978 | $ | 2,950 | |||||||
Distribution coverage ratio(i) | 1.42x | 1.80x | 1.51x | 1.49x | |||||||||||
Cash Flow Data | |||||||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | 1,092 | $ | 1,044 | $ | 4,082 | $ | 3,071 | |||||||
Investing activities | (874 | ) | (851 | ) | (3,063 | ) | (2,878 | ) | |||||||
Financing activities | $ | (244 | ) | $ | (147 | ) | $ | (1,089 | ) | $ | (117 | ) | |||
(a) | The distribution on common units for 2019 includes the impact of the issuance of approximately 102 million units issued to public unitholders and approximately 161 million units issued to MPC in connection with MPLX's acquisition of ANDX on July 30, 2019. |
(b) | Distributions to MPC exclude $12.5 million in distributions waived by MPC in connection with MPLX’s acquisition of ANDX with ANDX for the three months ended December 31, 2019 and $37.5 million for the twelve months ended December 31, 2019. The waiver was instituted in 2017 under the terms of ANDX's historical partnership agreement and will remain in effect through 2019, the original term of the waiver agreement. In addition, MPC agreed to waive $23.7 million in common unit distributions associated with the units received in connection with the Feb. 1, 2018 dropdown. |
(c) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as distributions earned on the Series B preferred assuming a distribution is declared by the Board of Directors (distributions on Series B preferred units are declared and payable semi-annually on February 15th and August 15th or the first business day thereafter). Cash distributions declared/to be paid to holders of the Series A and Series B preferred units are not available to common unitholders. |
(d) | Series A preferred units are considered redeemable securities due to the existence of redemption provisions upon a deemed liquidation event which is outside our control. These units rank senior to all common units with respect to distributions and rights upon liquidation and effective May 13, 2018, on an as-converted basis, preferred unit holders receive the greater of $0.528125 per unit or the amount of per unit distributions paid to holders of MPLX LP common units. |
(e) | As a result of the ANDX acquisition, 600,000 ANDX preferred units were converted into 600,000 preferred units of MPLX (the “Series B preferred units”). Series B preferred unitholders are entitled to receive a fixed distribution of $68.75 per unit, per annum, payable semi-annually in arrears on February 15 and August 15 or the first business day thereafter. |
(f) | Non-GAAP measure. See reconciliation below. |
(g) | Excludes predecessor EBITDA that is attributable to the period prior to the acquisition date of July 30, 2019. |
(h) | Includes predecessor EBITDA and DCF that is attributable to the period prior to the acquisition date of July 30, 2019. |
(i) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distribution declared. For the three months and year ended December 31, 2018, DCF attributable to predecessor for the fourth quarter has been included with no corresponding distribution being declared by MPLX relating to the predecessor, resulting in distribution coverage ratios of 1.80x and 1.49x, respectively. For the year ended December 31, 2019, DCF attributable to predecessor has been included with no corresponding distribution being declared by MPLX relating to the predecessor for the first quarter of 2019, resulting in a distribution coverage ratio of 1.51x. |
Select Balance Sheet Data (unaudited) | |||||||
(In millions, except ratio data) | Dec. 31, 2019 | December 31, 2018(a) | |||||
Cash and cash equivalents | $ | 15 | $ | 77 | |||
Total assets | 40,430 | 39,325 | |||||
Total long-term debt(b) | 20,307 | 18,435 | |||||
Redeemable preferred units | 968 | 1,004 | |||||
Total equity | $ | 16,613 | $ | 17,731 | |||
Consolidated total debt to adjusted EBITDA(c) | 4.1x | 3.9x | |||||
Partnership units outstanding: | |||||||
MPC-held common units | 666 | 505 | |||||
Public common units | 392 | 289 | |||||
(a) | Financial information has been retrospectively adjusted for the acquisition of ANDX. |
(b) | Outstanding intercompany borrowings were $594 million as of December 31, 2019 and zero December 31, 2018. Includes current portion of long-term debt. |
(c) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. Face value total debt includes approximately $406 million and $431 million of unamortized discount and debt issuance costs as of December 31, 2019 and December 31, 2018, respectively. |
Operating Statistics (unaudited)(a) | |||||||||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Logistics and Storage | |||||||||||||||||||||
Pipeline throughput (mbpd) | |||||||||||||||||||||
Crude oil pipelines | 3,196 | 3,214 | (1 | )% | 3,228 | 3,121 | 3 | % | |||||||||||||
Product pipelines | 1,923 | 1,943 | (1 | )% | 1,886 | 1,823 | 3 | % | |||||||||||||
Total pipelines | 5,119 | 5,157 | (1 | )% | 5,114 | 4,944 | 3 | % | |||||||||||||
Average tariff rates ($ per barrel) | |||||||||||||||||||||
Crude oil pipelines | $ | 0.97 | $ | 0.85 | 14 | % | $ | 0.94 | $ | 0.67 | 40 | % | |||||||||
Product pipelines | 0.78 | 0.67 | 16 | % | 0.75 | 0.75 | — | % | |||||||||||||
Total pipelines | $ | 0.90 | $ | 0.78 | 15 | % | 0.87 | 0.70 | 24 | % | |||||||||||
Terminal throughput (mbpd) | 3,313 | 3,188 | 4 | % | 3,279 | 3,148 | 4 | % | |||||||||||||
Barges at period-end | 286 | 256 | 12 | % | 286 | 256 | 12 | % | |||||||||||||
Towboats at period-end | 23 | 23 | — | % | 23 | 23 | — | % |
(a) | Inclusive of predecessor operations beginning October 1, 2018. |
Gathering and Processing Operating Statistics (unaudited) - Consolidated(a) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,329 | 1,148 | 16 | % | 1,287 | 1,155 | 11 | % | |||||||||||||
Utica Operations | — | — | — | % | — | — | — | % | |||||||||||||
Southwest Operations | 1,651 | 1,694 | (3 | )% | 1,625 | 1,566 | 4 | % | |||||||||||||
Bakken Operations | 158 | 147 | 7 | % | 151 | 147 | 3 | % | |||||||||||||
Rockies Operations | 602 | 654 | (8 | )% | 630 | 654 | (4 | )% | |||||||||||||
Total gathering throughput | 3,740 | 3,643 | 3 | % | 3,693 | 3,522 | 5 | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 4,136 | 3,977 | 4 | % | 4,192 | 3,826 | 10 | % | |||||||||||||
Utica Operations | — | — | — | % | — | — | — | % | |||||||||||||
Southwest Operations | 1,690 | 1,542 | 10 | % | 1,629 | 1,438 | 13 | % | |||||||||||||
Southern Appalachian Operations | 244 | 255 | (4 | )% | 244 | 247 | (1 | )% | |||||||||||||
Bakken Operations | 158 | 147 | 7 | % | 151 | 147 | 3 | % | |||||||||||||
Rockies Operations | 564 | 573 | (2 | )% | 572 | 573 | — | % | |||||||||||||
Total natural gas processed | 6,792 | 6,494 | 5 | % | 6,788 | 6,231 | 9 | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 446 | 398 | 12 | % | 435 | 379 | 15 | % | |||||||||||||
Utica Operations | — | — | — | % | — | — | — | % | |||||||||||||
Southwest Operations | 21 | 17 | 24 | % | 15 | 18 | (17 | )% | |||||||||||||
Southern Appalachian Operations | 13 | 18 | (28 | )% | 12 | 15 | (20 | )% | |||||||||||||
Bakken Operations | 31 | 15 | 107 | % | 24 | 15 | 60 | % | |||||||||||||
Rockies Operations | 5 | 4 | 25 | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 516 | 452 | 14 | % | 490 | 431 | 14 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements. Also inclusive of predecessor operations beginning October 1, 2018. |
Gathering and Processing Operating Statistics (unaudited) - Operated(a) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,329 | 1,148 | 16 | % | 1,287 | 1,155 | 11 | % | |||||||||||||
Utica Operations | 2,241 | 2,067 | 8 | % | 2,200 | 1,809 | 22 | % | |||||||||||||
Southwest Operations | 1,658 | 1,694 | (2 | )% | 1,628 | 1,567 | 4 | % | |||||||||||||
Bakken Operations | 158 | 147 | 7 | % | 151 | 147 | 3 | % | |||||||||||||
Rockies Operations | 806 | 841 | (4 | )% | 828 | 841 | (2 | )% | |||||||||||||
Total gathering throughput | 6,192 | 5,897 | 5 | % | 6,094 | 5,519 | 10 | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 5,339 | 4,773 | 12 | % | 5,248 | 4,448 | 18 | % | |||||||||||||
Utica Operations | 734 | 877 | (16 | )% | 810 | 886 | (9 | )% | |||||||||||||
Southwest Operations | 1,720 | 1,542 | 12 | % | 1,636 | 1,438 | 14 | % | |||||||||||||
Southern Appalachian Operations | 244 | 255 | (4 | )% | 244 | 247 | (1 | )% | |||||||||||||
Bakken Operations | 158 | 147 | 7 | % | 151 | 147 | 3 | % | |||||||||||||
Rockies Operations | 564 | 573 | (2 | )% | 572 | 573 | — | % | |||||||||||||
Total natural gas processed | 8,759 | 8,167 | 7 | % | 8,661 | 7,739 | 12 | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 446 | 398 | 12 | % | 435 | 379 | 15 | % | |||||||||||||
Utica Operations | 41 | 50 | (18 | )% | 44 | 47 | (6 | )% | |||||||||||||
Southwest Operations | 21 | 17 | 24 | % | 15 | 18 | (17 | )% | |||||||||||||
Southern Appalachian Operations | 13 | 18 | (28 | )% | 12 | 15 | (20 | )% | |||||||||||||
Bakken Operations | 31 | 15 | 107 | % | 24 | 15 | 60 | % | |||||||||||||
Rockies Operations | 5 | 4 | 25 | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 557 | 502 | 11 | % | 534 | 478 | 12 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments. Also inclusive of predecessor operations beginning October 1, 2018. |
Reconciliation of Segment Adjusted EBITDA to Net Income (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | $ | 853 | $ | 809 | $ | 3,351 | $ | 2,319 | |||||||
G&P segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | 466 | 437 | 1,753 | 1,491 | |||||||||||
Adjusted EBITDA attributable to MPLX LP (including predecessor results) | 1,319 | 1,246 | 5,104 | 3,810 | |||||||||||
Depreciation and amortization | (338 | ) | (302 | ) | (1,254 | ) | (867 | ) | |||||||
Benefit (provision) for income taxes | 2 | — | — | (8 | ) | ||||||||||
Amortization of deferred financing costs | (13 | ) | (10 | ) | (42 | ) | (55 | ) | |||||||
Loss on extinguishment of debt | — | (46 | ) | — | (46 | ) | |||||||||
Non-cash equity-based compensation | (5 | ) | (8 | ) | (22 | ) | (23 | ) | |||||||
Impairment expense | (1,197 | ) | — | (1,197 | ) | — | |||||||||
Net interest and other financial costs | (216 | ) | (224 | ) | (873 | ) | (613 | ) | |||||||
Income from equity method investments | 35 | 72 | 290 | 247 | |||||||||||
Distributions/adjustments related to equity method investments | (163 | ) | (144 | ) | (562 | ) | (458 | ) | |||||||
Unrealized derivative (losses) gains(a) | (6 | ) | 23 | 1 | 5 | ||||||||||
Acquisition costs | — | (1 | ) | (14 | ) | (4 | ) | ||||||||
Other | — | — | (1 | ) | — | ||||||||||
Adjusted EBITDA attributable to noncontrolling interests | 9 | 5 | 32 | 18 | |||||||||||
Net income | $ | (573 | ) | $ | 611 | $ | 1,462 | $ | 2,006 | ||||||
(a) | MPLX 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. |
L&S Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
L&S segment income from operations | $ | 677 | $ | 637 | $ | 2,752 | $ | 1,924 | |||||||
Depreciation and amortization | 130 | 137 | 503 | 308 | |||||||||||
Income from equity method investments | (41 | ) | (48 | ) | (200 | ) | (171 | ) | |||||||
Distributions/adjustments related to equity method investments | 83 | 78 | 267 | 242 | |||||||||||
Acquisition costs | — | 1 | 14 | 4 | |||||||||||
Non-cash equity-based compensation | 4 | 4 | 14 | 12 | |||||||||||
Other | — | — | 1 | — | |||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | 853 | 809 | 3,351 | 2,319 | |||||||||||
L&S predecessor segment adjusted EBITDA attributable to MPLX LP | — | (262 | ) | (603 | ) | (262 | ) | ||||||||
L&S segment adjusted EBITDA attributable to MPLX LP | $ | 853 | $ | 547 | $ | 2,748 | $ | 2,057 | |||||||
G&P Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
G&P segment income from operations | $ | (1,023 | ) | $ | 254 | $ | (375 | ) | $ | 804 | |||||
Depreciation and amortization | 208 | 165 | 751 | 559 | |||||||||||
Impairment expense | 1,197 | — | 1,197 | — | |||||||||||
Loss (Income) from equity method investments | 6 | (24 | ) | (90 | ) | (76 | ) | ||||||||
Distributions/adjustments related to equity method investments | 80 | 66 | 295 | 216 | |||||||||||
Unrealized derivative losses (gains)(a) | 6 | (23 | ) | (1 | ) | (5 | ) | ||||||||
Non-cash equity-based compensation | 1 | 5 | 8 | 12 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interest | (9 | ) | (6 | ) | (32 | ) | (19 | ) | |||||||
G&P segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | 466 | 437 | 1,753 | 1,491 | |||||||||||
G&P predecessor segment adjusted EBITDA attributable to MPLX LP | — | (73 | ) | (167 | ) | (73 | ) | ||||||||
G&P segment adjusted EBITDA attributable to MPLX LP | $ | 466 | $ | 364 | $ | 1,586 | $ | 1,418 | |||||||
(a) | MPLX 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. |
Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to GP and LP Unitholders from Net Income (Loss) (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | (573 | ) | $ | 611 | $ | 1,462 | $ | 2,006 | ||||||
(Benefit) provision for income taxes | (2 | ) | — | — | 8 | ||||||||||
Amortization of deferred financing costs | 13 | 10 | 42 | 55 | |||||||||||
Loss on extinguishment of debt | — | 46 | — | 46 | |||||||||||
Net interest and other financial costs | 216 | 224 | 873 | 613 | |||||||||||
Income from operations | (346 | ) | 891 | 2,377 | 2,728 | ||||||||||
Depreciation and amortization | 338 | 302 | 1,254 | 867 | |||||||||||
Non-cash equity-based compensation | 5 | 8 | 22 | 23 | |||||||||||
Impairment expense | 1,197 | — | 1,197 | — | |||||||||||
Income from equity method investments | (35 | ) | (72 | ) | (290 | ) | (247 | ) | |||||||
Distributions/adjustments related to equity method investments | 163 | 144 | 562 | 458 | |||||||||||
Unrealized derivative losses (gains)(a) | 6 | (23 | ) | (1 | ) | (5 | ) | ||||||||
Acquisition costs | — | 1 | 14 | 4 | |||||||||||
Other | — | — | 1 | — | |||||||||||
Adjusted EBITDA | 1,328 | 1,251 | 5,136 | 3,828 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (9 | ) | (5 | ) | (32 | ) | (18 | ) | |||||||
Adjusted EBITDA attributable to predecessor(b) | — | (335 | ) | (770 | ) | (335 | ) | ||||||||
Adjusted EBITDA attributable to MPLX LP | 1,319 | 911 | 4,334 | 3,475 | |||||||||||
Deferred revenue impacts | 27 | 4 | 94 | 28 | |||||||||||
Net interest and other financial costs | (216 | ) | (224 | ) | (873 | ) | (613 | ) | |||||||
Maintenance capital expenditures | (88 | ) | (77 | ) | (262 | ) | (175 | ) | |||||||
Maintenance capital expenditures reimbursements | 19 | 8 | 53 | 8 | |||||||||||
Equity method investment capital expenditures paid out | (12 | ) | (9 | ) | (28 | ) | (31 | ) | |||||||
Other | (4 | ) | 7 | 12 | 8 | ||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | 81 | 159 | 81 | |||||||||||
DCF attributable to MPLX LP | 1,045 | 701 | 3,489 | 2,781 | |||||||||||
Preferred unit distributions(c) | (30 | ) | (30 | ) | (122 | ) | (85 | ) | |||||||
DCF attributable to GP and LP unitholders (excluding predecessor results) | 1,015 | 671 | 3,367 | 2,696 | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | 335 | 770 | 335 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | (81 | ) | (159 | ) | (81 | ) | ||||||||
DCF attributable to GP and LP unitholders (including predecessor results) | $ | 1,015 | $ | 925 | $ | 3,978 | $ | 2,950 | |||||||
(a) | MPLX 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. |
(b) | The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders prior to the acquisition date. |
(c) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as cash distributions earned by the Series B preferred (as the Series B preferred units are declared and payable semi-annually) assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A and Series B preferred units are not available to common unitholders. |
Reconciliation of Net Income to LTM Pro forma adjusted EBITDA (unaudited) | |||||||
Year Ended Dec. 31 | |||||||
(In millions) | 2019 | 2018 | |||||
LTM Net income | $ | 1,462 | $ | 1,834 | |||
LTM Net income to adjusted EBITDA adjustments | 2,872 | 1,641 | |||||
LTM Adjusted EBITDA attributable to MPLX LP | 4,334 | 3,475 | |||||
LTM Pro forma/Predecessor adjustments for acquisitions | 770 | 92 | |||||
LTM Pro forma adjusted EBITDA | 5,104 | 3,567 | |||||
Consolidated debt | $ | 20,713 | $ | 13,856 | |||
Consolidated debt to adjusted EBITDA(a) | 4.1x | 3.9x | |||||
(a) | 2018 is shown as historically presented and has not been adjusted for predecessor impacts. |
Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to GP and LP Unitholders from Net Cash Provided by Operating Activities (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net cash provided by operating activities | $ | 1,092 | $ | 1,044 | $ | 4,082 | $ | 3,071 | |||||||
Changes in working capital items | (26 | ) | (47 | ) | 108 | 31 | |||||||||
All other, net | 14 | (10 | ) | (9 | ) | (5 | ) | ||||||||
Non-cash equity-based compensation | 5 | 8 | 22 | 23 | |||||||||||
Net gain (loss) on disposal of assets | 3 | (2 | ) | 6 | (3 | ) | |||||||||
Current income taxes | 1 | (1 | ) | 2 | — | ||||||||||
Loss on extinguishment of debt | — | 46 | — | 46 | |||||||||||
Net interest and other financial costs | 216 | 224 | 873 | 613 | |||||||||||
Asset retirement expenditures | — | — | 1 | 7 | |||||||||||
Unrealized derivative (gains) losses(a) | 6 | (23 | ) | (1 | ) | (5 | ) | ||||||||
Acquisition costs | — | 1 | 14 | 4 | |||||||||||
Other adjustments related to equity method investments | 17 | 11 | 37 | 46 | |||||||||||
Other | — | — | 1 | — | |||||||||||
Adjusted EBITDA | 1,328 | 1,251 | 5,136 | 3,828 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (9 | ) | (5 | ) | (32 | ) | (18 | ) | |||||||
Adjusted EBITDA attributable to predecessor(b) | — | (335 | ) | (770 | ) | (335 | ) | ||||||||
Adjusted EBITDA attributable to MPLX LP | 1,319 | 911 | 4,334 | 3,475 | |||||||||||
Deferred revenue impacts | 27 | 4 | 94 | 28 | |||||||||||
Net interest and other financial costs | (216 | ) | (224 | ) | (873 | ) | (613 | ) | |||||||
Maintenance capital expenditures | (88 | ) | (77 | ) | (262 | ) | (175 | ) | |||||||
Maintenance capital expenditures reimbursements | 19 | 8 | 53 | 8 | |||||||||||
Equity method investment capital expenditures paid out | (12 | ) | (9 | ) | (28 | ) | (31 | ) | |||||||
Other | (4 | ) | 7 | 12 | 8 | ||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | 81 | 159 | 81 | |||||||||||
DCF attributable to MPLX LP | 1,045 | 701 | 3,489 | 2,781 | |||||||||||
Preferred unit distributions(c) | (30 | ) | (30 | ) | (122 | ) | (85 | ) | |||||||
DCF attributable to GP and LP unitholders (excluding predecessor results) | 1,015 | 671 | 3,367 | 2,696 | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | 335 | 770 | 335 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | (81 | ) | (159 | ) | (81 | ) | ||||||||
DCF attributable to GP and LP unitholders (including predecessor results) | $ | 1,015 | $ | 925 | $ | 3,978 | $ | 2,950 | |||||||
(a) | MPLX 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. |
(b) | The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders prior to the acquisition date. |
(c) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually) assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A and Series B preferred units are not available to common unitholders. |
Capital Expenditures (unaudited) | |||||||||||||||
Three Months Ended Dec. 31 | Year Ended Dec. 31 | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Capital Expenditures: | |||||||||||||||
Maintenance | $ | 88 | $ | 77 | $ | 262 | $ | 175 | |||||||
Maintenance reimbursements | (19 | ) | (8 | ) | (53 | ) | (8 | ) | |||||||
Growth | 522 | 696 | 2,001 | 2,078 | |||||||||||
Growth reimbursements | (4 | ) | (16 | ) | (21 | ) | (16 | ) | |||||||
Total capital expenditures | 587 | 749 | 2,189 | 2,229 | |||||||||||
Less: Increase (decrease) in capital accruals | (79 | ) | 45 | (146 | ) | 135 | |||||||||
Asset retirement expenditures | — | — | 1 | 7 | |||||||||||
Additions to property, plant and equipment, net(a) | 666 | 704 | 2,334 | 2,087 | |||||||||||
Investments in unconsolidated affiliates | 219 | 126 | 713 | 341 | |||||||||||
Acquisitions | — | — | (6 | ) | 451 | ||||||||||
Total capital expenditures and acquisitions | 885 | $ | 830 | $ | 3,041 | $ | 2,879 | ||||||||
Less: Maintenance capital expenditures (including reimbursements) | 69 | 69 | 209 | 167 | |||||||||||
Acquisitions | — | — | (6 | ) | 451 | ||||||||||
Total growth capital expenditures(b) | $ | 816 | $ | 761 | $ | 2,838 | $ | 2,261 | |||||||
(a) | This amount is represented in the Consolidated Statements of Cash Flows as Additions to property, plant and equipment after excluding growth and maintenance reimbursements. Reimbursements are shown as Contributions from MPC within the Financing activities section of the Consolidated Statements of Cash Flows. |
2019 adjusted growth capital expenditures | Year Ended Dec. 31 | ||
(In millions) | 2019 | ||
Total growth capital expenditures | $ | 2,838 | |
Decrease in capital accruals | (146 | ) | |
Capitalized interest | (44 | ) | |
Contributions from noncontrolling interests | (95 | ) | |
Total adjusted growth capital expenditures | $ | 2,553 | |
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