Delaware | 001-35714 | 27-0005456 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
200 E. Hardin Street Findlay, Ohio | 45840 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | 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)) |
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). |
Emerging growth company ¨ |
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. |
(d) | Exhibits. |
Exhibit Number | Description | |
Press Release dated November 1, 2018, issued by MPLX LP | ||
MPLX LP | |||
By: | MPLX GP LLC, its General Partner | ||
Date: November 1, 2018 | By: | /s/ Pamela K. M. Beall | |
Name: Pamela K. M. Beall | |||
Title: Executive Vice President and Chief Financial Officer |
• | Reported third quarter net income of $510 million and adjusted EBITDA of $937 million, which provided 1.47x distribution coverage and resulted in 3.8x leverage |
• | Logistics & Storage segment income from operations of $468 million and adjusted EBITDA of $547 million driven by strong results from the underlying base business |
• | Gathering & Processing segment income from operations of $204 million and adjusted EBITDA of $390 million driven by record gathered, processed, and fractionated volumes |
• | Announced planned investment in the Permian-to-Gulf Coast Pipeline |
• | Acquired strategically located Gulf Coast Export Terminal in Mt. Airy, Louisiana |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(In millions, except per unit and ratio data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income attributable to MPLX | $ | 510 | $ | 216 | $ | 1,384 | $ | 556 | |||||||
Adjusted EBITDA attributable to MPLX(a) | 937 | 538 | 2,564 | 1,435 | |||||||||||
Net cash provided by operating activities | 737 | 494 | 2,027 | 1,338 | |||||||||||
Distributable cash flow ("DCF")(a) | 766 | 442 | 2,080 | 1,183 | |||||||||||
Distribution per common unit(b) | $ | 0.6375 | $ | 0.5875 | $ | 1.8825 | $ | 1.6900 | |||||||
Distribution coverage ratio(c) | 1.47x | 1.33x | 1.38x | 1.29x | |||||||||||
Consolidated debt to adjusted EBITDA(d) | 3.8x | 3.6x | |||||||||||||
(a) | Non-GAAP measure calculated before the distribution to preferred units. See reconciliation below. |
(b) | Distributions declared by the board of directors of MPLX’s general partner. |
(c) | Non-GAAP measure. See calculation below. |
(d) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. |
• | Gathered volumes: 4.7 billion cubic feet per day in the third quarter of 2018, a 27 percent increase versus the third quarter of 2017 |
• | Processed volumes: 7.2 billion cubic feet per day in the third quarter of 2018, a 9 percent increase versus the third quarter of 2017 |
• | Fractionated volumes: 488,000 barrels per day in the third quarter of 2018, a 23 percent increase versus the third quarter of 2017 |
(In millions) | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
Segment adjusted EBITDA attributable to MPLX LP (unaudited) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Logistics and Storage(a) | $ | 547 | $ | 218 | $ | 1,510 | $ | 544 | |||||||
Gathering and Processing(a) | $ | 390 | $ | 320 | $ | 1,054 | $ | 891 | |||||||
(a) | Non-GAAP measure. See reconciliation below for details. |
Condensed Results of Operations (unaudited) | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions, except per unit data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues and other income: | |||||||||||||||
Operating revenue | $ | 843 | $ | 585 | $ | 2,306 | $ | 1,664 | |||||||
Operating revenue - related parties | 776 | 348 | 2,148 | 1,014 | |||||||||||
Income from equity method investments | 64 | 23 | 175 | 29 | |||||||||||
Other income | 29 | 24 | 81 | 75 | |||||||||||
Total revenues and other income | 1,712 | 980 | 4,710 | 2,782 | |||||||||||
Costs and expenses: | |||||||||||||||
Operating expenses | 514 | 318 | 1,406 | 866 | |||||||||||
Operating expenses - related parties | 229 | 114 | 630 | 331 | |||||||||||
Depreciation and amortization | 201 | 164 | 565 | 515 | |||||||||||
General and administrative expenses | 76 | 59 | 217 | 174 | |||||||||||
Other taxes | 20 | 14 | 55 | 40 | |||||||||||
Total costs and expenses | 1,040 | 669 | 2,873 | 1,926 | |||||||||||
Income from operations | 672 | 311 | 1,837 | 856 | |||||||||||
Interest and other financial costs | 153 | 93 | 434 | 258 | |||||||||||
Income before income taxes | 519 | 218 | 1,403 | 598 | |||||||||||
Provision for income taxes | 3 | 1 | 8 | 3 | |||||||||||
Net income | 516 | 217 | 1,395 | 595 | |||||||||||
Less: Net income attributable to noncontrolling interests | 6 | 1 | 11 | 3 | |||||||||||
Less: Net income attributable to Predecessor(a) | — | — | — | 36 | |||||||||||
Net income attributable to MPLX LP | 510 | 216 | 1,384 | 556 | |||||||||||
Less: Preferred unit distributions | 19 | 16 | 55 | 49 | |||||||||||
Less: General partner’s interest in net income attributable to MPLX LP | — | 86 | — | 222 | |||||||||||
Limited partners’ interest in net income attributable to MPLX LP | $ | 491 | $ | 114 | $ | 1,329 | $ | 285 | |||||||
Per Unit Data | |||||||||||||||
Net income (loss) attributable to MPLX LP per limited partner unit: | |||||||||||||||
Common - basic | $ | 0.62 | $ | 0.29 | $ | 1.77 | $ | 0.75 | |||||||
Common - diluted | $ | 0.62 | $ | 0.29 | $ | 1.77 | $ | 0.75 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units – basic | 794 | 394 | 750 | 378 | |||||||||||
Common units – diluted | 794 | 395 | 750 | 381 | |||||||||||
Select Financial Statistics (unaudited) | |||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(In millions, except ratio data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Distribution declared: | |||||||||||||||
Common units (LP) - public | $ | 185 | $ | 170 | $ | 545 | $ | 481 | |||||||
Common units - MPC(a) | 322 | 62 | 926 | 167 | |||||||||||
GP units - MPC | — | 7 | — | 18 | |||||||||||
Incentive distribution rights - MPC | — | 81 | — | 211 | |||||||||||
Total GP and LP distribution declared | 507 | 320 | 1,471 | 877 | |||||||||||
Redeemable preferred units(b) | 19 | 16 | 55 | 49 | |||||||||||
Total distribution declared | $ | 526 | $ | 336 | $ | 1,526 | $ | 926 | |||||||
Distribution coverage ratio(c) | 1.47x | 1.33x | 1.38x | 1.29x | |||||||||||
Cash Flow Data | |||||||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | 737 | $ | 494 | $ | 2,027 | $ | 1,338 | |||||||
Investing activities | (1,073 | ) | (431 | ) | (2,027 | ) | (1,836 | ) | |||||||
Financing activities | $ | 366 | $ | (351 | ) | $ | 30 | $ | 268 | ||||||
Other Financial Data | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP(d) | $ | 937 | $ | 538 | $ | 2,564 | $ | 1,435 | |||||||
DCF attributable to GP and LP unitholders(d) | $ | 747 | $ | 426 | $ | 2,025 | $ | 1,134 | |||||||
(a) | MPC agreed to waive $23.7 million in common unit distributions associated with the units received in connection with the Feb. 1 dropdown. |
(b) | The preferred units are considered redeemable securities due to the existence of redemption provisions upon a deemed liquidation event, which is outside of 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. |
(c) | DCF attributable to GP and LP unitholders divided by total GP and LP distribution declared. |
(d) | Non-GAAP measure. See reconciliation below. |
Select Balance Sheet Data (unaudited) | |||||||
(In millions, except ratio data) | Sept. 30, 2018 | Dec. 31, 2017 | |||||
Cash and cash equivalents | $ | 37 | $ | 5 | |||
Total assets | 22,379 | 19,500 | |||||
Total debt(a) | 12,890 | 7,332 | |||||
Redeemable preferred units | 1,003 | 1,000 | |||||
Total equity | $ | 6,953 | $ | 9,973 | |||
Consolidated total debt to adjusted EBITDA(b) | 3.8x | 3.6x | |||||
Partnership units outstanding: | |||||||
GP units | — | 8 | |||||
MPC-held common units | 505 | 118 | |||||
Public common units | 289 | 289 | |||||
(a) | Total debt includes $0 million and $386 million of outstanding intercompany borrowings classified in current liabilities as of September 30, 2018, and Dec. 31, 2017, respectively. |
(b) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. Face value total debt includes approximately $467 million and $416 million of unamortized discount and debt issuance costs as of September 30, 2018, and Dec. 31, 2017, respectively. |
Logistics and Storage Operating Statistics (unaudited) | |||||||||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Pipeline throughput (mbpd) | |||||||||||||||||||||
Crude oil pipelines | 2,208 | 2,046 | 8 | % | 2,149 | 1,901 | 13 | % | |||||||||||||
Product pipelines | 1,182 | 1,131 | 5 | % | 1,135 | 1,051 | 8 | % | |||||||||||||
Total pipelines | 3,390 | 3,177 | 7 | % | 3,284 | 2,952 | 11 | % | |||||||||||||
Average tariff rates ($ per barrel) | |||||||||||||||||||||
Crude oil pipelines | $ | 0.60 | $ | 0.54 | 11 | % | $ | 0.58 | $ | 0.57 | 2 | % | |||||||||
Product pipelines | 0.86 | 0.75 | 15 | % | 0.80 | 0.74 | 8 | % | |||||||||||||
Total pipelines | $ | 0.69 | $ | 0.62 | 11 | % | $ | 0.66 | $ | 0.63 | 5 | % | |||||||||
Terminal throughput (mbpd) | 1,474 | 1,496 | (1 | )% | 1,468 | 1,470 | — | % | |||||||||||||
Barges at period-end | 256 | 232 | 10 | % | 256 | 232 | 10 | % | |||||||||||||
Towboats at period-end | 20 | 18 | 11 | % | 20 | 18 | 11 | % | |||||||||||||
Gathering and Processing Operating Statistics (unaudited) - Consolidated(a) | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,201 | 1,005 | 20 | % | 1,157 | 965 | 20 | % | |||||||||||||
Utica Operations | — | — | — | % | — | — | — | % | |||||||||||||
Southwest Operations | 1,599 | 1,398 | 14 | % | 1,523 | 1,383 | 10 | % | |||||||||||||
Total gathering throughput | 2,800 | 2,403 | 17 | % | 2,680 | 2,348 | 14 | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 4,004 | 3,618 | 11 | % | 3,775 | 3,565 | 6 | % | |||||||||||||
Utica Operations | — | — | — | % | — | — | — | % | |||||||||||||
Southwest Operations | 1,479 | 1,331 | 11 | % | 1,403 | 1,310 | 7 | % | |||||||||||||
Southern Appalachian Operations | 226 | 264 | (14 | )% | 244 | 266 | (8 | )% | |||||||||||||
Total natural gas processed | 5,709 | 5,213 | 10 | % | 5,422 | 5,141 | 5 | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 405 | 326 | 24 | % | 374 | 310 | 21 | % | |||||||||||||
Utica Operations | — | — | — | % | — | — | — | % | |||||||||||||
Southwest Operations | 20 | 18 | 11 | % | 18 | 19 | (5 | )% | |||||||||||||
Southern Appalachian Operations | 14 | 14 | — | % | 13 | 15 | (13 | )% | |||||||||||||
Total C2 + NGLs fractionated | 439 | 358 | 23 | % | 405 | 344 | 18 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the Partnership financial statements. |
Gathering and Processing Operating Statistics (unaudited) - Operated(a) | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,201 | 1,005 | 20 | % | 1,157 | 965 | 20 | % | |||||||||||||
Utica Operations | 1,936 | 1,324 | 46 | % | 1,722 | 1,065 | 62 | % | |||||||||||||
Southwest Operations | 1,600 | 1,400 | 14 | % | 1,524 | 1,385 | 10 | % | |||||||||||||
Total gathering throughput | 4,737 | 3,729 | 27 | % | 4,403 | 3,415 | 29 | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 4,609 | 3,986 | 16 | % | 4,338 | 3,778 | 15 | % | |||||||||||||
Utica Operations | 857 | 1,000 | (14 | )% | 889 | 982 | (9 | )% | |||||||||||||
Southwest Operations | 1,479 | 1,331 | 11 | % | 1,403 | 1,310 | 7 | % | |||||||||||||
Southern Appalachian Operations | 226 | 264 | (14 | )% | 244 | 266 | (8 | )% | |||||||||||||
Total natural gas processed | 7,171 | 6,581 | 9 | % | 6,874 | 6,336 | 8 | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 405 | 326 | 24 | % | 374 | 310 | 21 | % | |||||||||||||
Utica Operations | 49 | 39 | 26 | % | 46 | 40 | 15 | % | |||||||||||||
Southwest Operations | 20 | 18 | 11 | % | 18 | 19 | (5 | )% | |||||||||||||
Southern Appalachian Operations | 14 | 14 | — | % | 13 | 15 | (13 | )% | |||||||||||||
Total C2 + NGLs fractionated | 488 | 397 | 23 | % | 451 | 384 | 17 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the Partnership financial statements as well as operating data for Partnership-operated equity method investments. |
Reconciliation of Segment Adjusted EBITDA to Net Income (unaudited) | |||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP | $ | 547 | $ | 218 | $ | 1,510 | $ | 544 | |||||||
G&P segment adjusted EBITDA attributable to MPLX LP | 390 | 320 | 1,054 | 891 | |||||||||||
Adjusted EBITDA attributable to MPLX LP | 937 | 538 | 2,564 | 1,435 | |||||||||||
Depreciation and amortization | (201 | ) | (164 | ) | (565 | ) | (515 | ) | |||||||
Provision for income taxes | (3 | ) | (1 | ) | (8 | ) | (3 | ) | |||||||
Amortization of deferred financing costs | (14 | ) | (13 | ) | (45 | ) | (38 | ) | |||||||
Non-cash equity-based compensation | (6 | ) | (4 | ) | (15 | ) | (10 | ) | |||||||
Net interest and other financial costs | (139 | ) | (80 | ) | (389 | ) | (220 | ) | |||||||
Income from equity method investments | 64 | 23 | 175 | 29 | |||||||||||
Distributions/adjustments related to equity method investments | (112 | ) | (65 | ) | (314 | ) | (131 | ) | |||||||
Unrealized derivative (losses) gains(a) | (17 | ) | (17 | ) | (18 | ) | 2 | ||||||||
Acquisition costs | — | (2 | ) | (3 | ) | (6 | ) | ||||||||
Adjusted EBITDA attributable to noncontrolling interests | 7 | 2 | 13 | 5 | |||||||||||
Adjusted EBITDA attributable to Predecessor(b) | — | — | — | 47 | |||||||||||
Net income | $ | 516 | $ | 217 | $ | 1,395 | $ | 595 | |||||||
(a) | The Partnership makes a distinction between realized or 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 adjustments related to Predecessor are excluded from adjusted EBITDA attributable to MPLX LP prior to the acquisition date. |
L&S Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited) | |||||||||||||||
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | ||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
L&S Segment income from operations | $ | 468 | $ | 153 | $ | 1,287 | $ | 441 | |||||||
Depreciation and amortization | 62 | 42 | 171 | 121 | |||||||||||
Income from equity method investments | (43 | ) | (7 | ) | (123 | ) | (7 | ) | |||||||
Distributions/adjustments related to equity method investments | 57 | 26 | 164 | 26 | |||||||||||
Acquisition costs | — | 2 | 3 | 6 | |||||||||||
Non-cash equity-based compensation | 3 | 2 | 8 | 4 | |||||||||||
Adjusted EBITDA attributable to Predecessor | — | — | — | (47 | ) | ||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP | $ | 547 | $ | 218 | $ | 1,510 | $ | 544 | |||||||
G&P Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited) | |||||||||||||||
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | ||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
G&P Segment income from operations | $ | 204 | $ | 158 | $ | 550 | $ | 415 | |||||||
Depreciation and amortization | 139 | 122 | 394 | 394 | |||||||||||
Income from equity method investments | (21 | ) | (16 | ) | (52 | ) | (22 | ) | |||||||
Distributions/adjustments related to equity method investments | 55 | 39 | 150 | 105 | |||||||||||
Unrealized derivative loss/(gain)(a) | 17 | 17 | 18 | (2 | ) | ||||||||||
Non-cash equity-based compensation | 3 | 2 | 7 | 6 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interest | (7 | ) | (2 | ) | (13 | ) | (5 | ) | |||||||
G&P Segment adjusted EBITDA attributable to MPLX LP | $ | 390 | $ | 320 | $ | 1,054 | $ | 891 | |||||||
(a) | MPLX makes a distinction between realized or 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 Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income | $ | 516 | $ | 217 | $ | 1,395 | $ | 595 | |||||||
Provision for income taxes | 3 | 1 | 8 | 3 | |||||||||||
Amortization of deferred financing costs | 14 | 13 | 45 | 38 | |||||||||||
Net interest and other financial costs | 139 | 80 | 389 | 220 | |||||||||||
Income from operations | 672 | 311 | 1,837 | 856 | |||||||||||
Depreciation and amortization | 201 | 164 | 565 | 515 | |||||||||||
Non-cash equity-based compensation | 6 | 4 | 15 | 10 | |||||||||||
Income from equity method investments | (64 | ) | (23 | ) | (175 | ) | (29 | ) | |||||||
Distributions/adjustments related to equity method investments | 112 | 65 | 314 | 131 | |||||||||||
Unrealized derivative losses (gains)(a) | 17 | 17 | 18 | (2 | ) | ||||||||||
Acquisition costs | — | 2 | 3 | 6 | |||||||||||
Adjusted EBITDA | 944 | 540 | 2,577 | 1,487 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (7 | ) | (2 | ) | (13 | ) | (5 | ) | |||||||
Adjusted EBITDA attributable to Predecessor(b) | — | — | — | (47 | ) | ||||||||||
Adjusted EBITDA attributable to MPLX LP | 937 | 538 | 2,564 | 1,435 | |||||||||||
Deferred revenue impacts | 13 | 8 | 24 | 25 | |||||||||||
Net interest and other financial costs | (139 | ) | (80 | ) | (389 | ) | (220 | ) | |||||||
Maintenance capital expenditures | (40 | ) | (24 | ) | (98 | ) | (59 | ) | |||||||
Equity method investment capital expenditures paid out | (6 | ) | (2 | ) | (22 | ) | (4 | ) | |||||||
Other | 1 | 2 | 1 | 4 | |||||||||||
Portion of DCF adjustments attributable to Predecessor(b) | — | — | — | 2 | |||||||||||
DCF attributable to MPLX LP | 766 | 442 | 2,080 | 1,183 | |||||||||||
Preferred unit distributions | (19 | ) | (16 | ) | (55 | ) | (49 | ) | |||||||
DCF attributable to GP and LP unitholders | $ | 747 | $ | 426 | $ | 2,025 | $ | 1,134 | |||||||
(a) | The Partnership makes a distinction between realized or 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 prior to the acquisition date. |
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 Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net cash provided by operating activities | $ | 737 | $ | 494 | $ | 2,027 | $ | 1,338 | |||||||
Changes in working capital items | 45 | (50 | ) | 78 | (64 | ) | |||||||||
All other, net | (9 | ) | (3 | ) | 5 | (20 | ) | ||||||||
Non-cash equity-based compensation | 6 | 4 | 15 | 10 | |||||||||||
Net (loss) / gain on disposal of assets | (1 | ) | — | (1 | ) | 1 | |||||||||
Net interest and other financial costs | 139 | 80 | 389 | 220 | |||||||||||
Current income taxes | 1 | — | 1 | 1 | |||||||||||
Asset retirement expenditures | 2 | 1 | 7 | 2 | |||||||||||
Unrealized derivative losses (gains)(a) | 17 | 17 | 18 | (2 | ) | ||||||||||
Acquisition costs | — | 2 | 3 | 6 | |||||||||||
Other adjustments to equity method investment distributions | 8 | (5 | ) | 35 | (5 | ) | |||||||||
Other | (1 | ) | — | — | — | ||||||||||
Adjusted EBITDA | 944 | 540 | 2,577 | 1,487 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (7 | ) | (2 | ) | (13 | ) | (5 | ) | |||||||
Adjusted EBITDA attributable to Predecessor(b) | — | — | — | (47 | ) | ||||||||||
Adjusted EBITDA attributable to MPLX LP | 937 | 538 | 2,564 | 1,435 | |||||||||||
Deferred revenue impacts | 13 | 8 | 24 | 25 | |||||||||||
Net interest and other financial costs | (139 | ) | (80 | ) | (389 | ) | (220 | ) | |||||||
Maintenance capital expenditures | (40 | ) | (24 | ) | (98 | ) | (59 | ) | |||||||
Equity method investment capital expenditures paid out | (6 | ) | (2 | ) | (22 | ) | (4 | ) | |||||||
Other | 1 | 2 | 1 | 4 | |||||||||||
Portion of DCF adjustments attributable to Predecessor(b) | — | — | — | 2 | |||||||||||
DCF attributable to MPLX LP | 766 | 442 | 2,080 | 1,183 | |||||||||||
Preferred unit distributions | (19 | ) | (16 | ) | (55 | ) | (49 | ) | |||||||
DCF attributable to GP and LP unitholders | $ | 747 | $ | 426 | $ | 2,025 | $ | 1,134 | |||||||
(a) | The Partnership makes a distinction between realized or 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 prior to the acquisition date. |
Capital Expenditures (unaudited) | |||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Capital Expenditures(a): | |||||||||||||||
Maintenance | $ | 40 | $ | 24 | $ | 98 | $ | 59 | |||||||
Growth | 458 | 351 | 1,382 | 1,002 | |||||||||||
Total capital expenditures | 498 | 375 | 1,480 | 1,061 | |||||||||||
Less: Increase in capital accruals | (25 | ) | 22 | 90 | 55 | ||||||||||
Asset retirement expenditures | 2 | 1 | 7 | 2 | |||||||||||
Additions to property, plant and equipment | 521 | 352 | 1,383 | 1,004 | |||||||||||
Capital expenditures of unconsolidated subsidiaries(b) | 156 | 101 | 323 | 306 | |||||||||||
Total gross capital expenditures | 677 | 453 | 1,706 | 1,310 | |||||||||||
Less: Joint venture partner contributions | 64 | 39 | 134 | 132 | |||||||||||
Total capital expenditures, net | 613 | 414 | 1,572 | 1,178 | |||||||||||
Acquisitions | 451 | 29 | 451 | 249 | |||||||||||
Total capital expenditures, net and acquisitions | 1,064 | 443 | 2,023 | 1,427 | |||||||||||
Less: Maintenance capital | 40 | 24 | 98 | 60 | |||||||||||
Acquisitions | 451 | 29 | 451 | 249 | |||||||||||
Total growth capital expenditures | $ | 573 | $ | 390 | $ | 1,474 | $ | 1,118 | |||||||
(a) | Includes capital expenditures of the Predecessor for all periods presented. |
(b) | Capital expenditures includes amounts related to unconsolidated, partnership operated subsidiaries. |
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