- Increased distribution to
$0.3275 per unit - a 4.8 percent increase over fourth-quarter 2013
and 20.2 percent over first-quarter 2013
- Reported $37.7 million of
distributable cash flow and adjusted EBITDA of $43.8
million
- Acquired additional 13
percent interest in MPLX Pipe Line Holdings LP
FINDLAY, Ohio, May 1, 2014 - MPLX LP (NYSE: MPLX)
today reported first-quarter 2014 net income attributable to MPLX
of $34.2 million, or $0.41 per common limited partner unit,
compared with $17.6 million, or $0.26 per common limited partner
unit, for the first quarter of 2013. First-quarter 2014 adjusted
earnings before interest, taxes, depreciation and amortization
(EBITDA) attributable to MPLX were $43.8 million and distributable
cash flow attributable to MPLX was $37.7 million.
On April 22, the board of directors declared a
distribution of $0.3275 per unit. This distribution represents an
increase of $0.015 per unit, or 4.8 percent, above the
fourth-quarter 2013 distribution of $0.3125 per unit and an
increase of 20.2 percent over the first-quarter 2013
distribution.
Effective March 1, MPLX acquired a 13 percent
interest in MPLX Pipe Line Holdings LP (Pipe Line Holdings) for
$310 million. The acquisition increased MPLX's interest in Pipe
Line Holdings to 69 percent from the 56 percent interest it held
previously. The acquisition was funded through a combination of $40
million of cash on hand and a $270 million borrowing on its $500
million bank credit facility.
"We are pleased with the consistent earnings and
cash generation of the partnership in the first quarter, which have
enabled us to continue increasing distributions substantially for
our unitholders," said Chairman and Chief Executive Officer Gary R.
Heminger. "Completing MPLX's second acquisition since the initial
public offering underscores our focus on growing the partnership
and supporting an attractive distribution profile for our
unitholders over an extended period of time."
Discussion of
Results
MPLX revenues and other income for the first
quarter of 2014 were $137.3 million, compared with $114.7 million
for the first quarter of 2013. The increase in revenues and other
income was primarily due to increased pipeline tariff rates and
revenue recognized for volume deficiency credits, partially offset
by a decrease in throughput volumes. For the first quarters of 2014
and 2013, Marathon Petroleum Corporation (MPC) and related parties
accounted for 91 and 87 percent, respectively, of those revenues,
including revenues attributable to volumes shipped by MPC under
joint tariffs with third parties.
After deducting MPC's retained interest, net
income attributable to MPLX for the first quarter of 2014 was $34.2
million, compared with $17.6 million for the first quarter of 2013.
This increase was driven by an increase in revenue, as well as a
higher ownership interest in Pipe Line Holdings compared to the
first quarter of 2013.
Financial Position and
Liquidity
On March 31, 2014, Pipe Line Holdings entered
into a credit agreement with a subsidiary of MPC, providing for a
$50 million revolving credit facility that matures on
March 31, 2019.
As of March 31, 2014, MPLX had $40.6 million of
cash and cash equivalents, $230 million available on its bank
credit facility and $50 million undrawn on the credit agreement
with MPC. This combination should allow MPLX to pursue growth
opportunities that expand its growing base of distributable cash
flow.
Conference Call
At 2 p.m. EDT today, MPLX will hold a webcast and
conference call to discuss the reported results and provide an
update on operations. Interested parties may listen to the
conference call on MPLX's website at http://www.mplx.com by
clicking on the "2014 First-Quarter Financial Results" link in the
"News & Headlines" section. Replays of the conference call will
be available on MPLX's website through Thursday, May 15.
Investor-related material will also be available online prior to
the webcast and conference call at http://ir.mplx.com.
###
About MPLX LP
MPLX is a fee-based, growth-oriented master
limited partnership formed in 2012 by Marathon Petroleum
Corporation to own, operate, develop and acquire pipelines and
other midstream assets related to the transportation and storage of
crude oil, refined products and other hydrocarbon-based products.
Headquartered in Findlay, Ohio, MPLX's assets consist of a majority
equity interest in a network of common carrier crude oil and
products pipeline assets located in the Midwest and Gulf Coast
regions of the United States and a 100 percent interest in a butane
storage cavern located in West Virginia. For additional information
about the partnership, please see our website at
http://www.mplx.com.
Investor Relations
Contacts:
Beth Hunter (419) 421-2559
Geri Ewing (419) 421-2071
Media
Contacts:
Angelia Graves (419) 421-2703
Brandon Daniels (419) 421-3127
In addition to our financial
information presented in accordance with U.S. generally accepted
accounting principles (GAAP), management utilizes additional
non-GAAP measures to facilitate comparisons of past performance and
future periods. This news release and supporting schedules include
the non-GAAP measures adjusted EBITDA and distributable cash
flow. We believe certain investors use adjusted
EBITDA to evaluate MPLX's financial performance between periods and
to compare MPLX's performance to certain competitors. We believe
certain investors use distributable cash flow to determine the
amount of cash generated from the
partnership's operations and available for distribution to its
unitholders. These additional financial measures are reconciled
from the most directly comparable measures as reported in
accordance with GAAP and should be viewed in addition to, and not
in lieu of, our consolidated financial statements and
footnotes.
This press release contains
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements relate to, among
other things, MPLX's expectations, estimates and projections
concerning the business and operations of MPLX. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "estimate," "expect," "forecast," "project," "could,"
"may," "should," "would," "will" or other similar expressions that
convey the uncertainty of future events or outcomes. Such
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties and other factors, some of
which are beyond the issuer's control and are difficult to predict.
Factors that could cause MPLX actual results to differ materially
from those in the forward-looking statements include: the adequacy
of our capital resources and liquidity, including, but not limited
to, availability of sufficient cash flow to pay distributions and
execute our business plan; the timing and extent of changes in
commodity prices and demand for crude oil, refined products,
feedstocks or other hydrocarbon-based products; volatility in
and/or degradation of market and industry conditions; completion of
pipeline capacity by our competitors; disruptions due to equipment
interruption or failure, including electrical shortages and power
grid failures; the suspension, reduction or termination of MPC's
obligations under our commercial agreements; our ability to
successfully implement our growth strategy, whether through organic
growth or acquisitions; state and federal environmental, economic,
health and safety, energy and other policies and regulations; other
risk factors inherent to our industry; and the factors set forth
under the heading "Risk Factors" in MPLX's Annual Report on Form
10-K for the year ended Dec. 31, 2013, filed with the Securities
and Exchange Commission (SEC). Copies of MPLX's Form 10-K are
available on the SEC website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor
Relations office. In addition, unpredictable or unknown factors not
discussed here or in MPLX's Form 10-K could also have material
adverse effects on forward-looking statements.
Results
of Operations (unaudited) |
Three Months Ended |
|
|
March
31 |
| (In millions, except per unit
data) |
2014 |
2013 |
|
Revenues and other
income: |
|
|
|
Sales and other operating revenues |
$ 16.9 |
$ 20.8 |
|
Sales to related parties |
113.8 |
89.1 |
|
Other income |
1.5 |
1.2 |
|
Other income - related parties |
5.1 |
3.6 |
|
Total revenues and other income |
137.3 |
114.7 |
|
Costs and expenses: |
|
|
|
Cost of revenues (excludes items below) |
26.6 |
30.5 |
|
Purchases from related parties |
24.0 |
21.8 |
|
Depreciation |
12.6 |
11.7 |
|
General and administrative expenses |
15.9 |
13.5 |
|
Other taxes |
1.9 |
1.7 |
|
Total costs and expenses |
81.0 |
79.2 |
|
Income from operations |
56.3 |
35.5 |
|
Net interest and other financial costs |
0.6 |
0.2 |
|
Income before income taxes |
55.7 |
35.3 |
|
Provision for income taxes |
- |
- |
|
Net income |
55.7 |
35.3 |
| Less:
Net income attributable to MPC-retained interest |
21.5 |
17.7 |
|
Net income attributable to MPLX
LP |
34.2 |
17.6 |
| Less:
General partner's interest in net income attributable to MPLX
LP |
1.0 |
0.4 |
|
Limited partners' interest in net income
attributable to MPLX LP |
$ 33.2 |
$ 17.2 |
|
|
|
|
|
Net income attributable to MPLX LP per
limited partner unit: |
|
|
|
Common (basic) |
$ 0.41 |
$ 0.26 |
|
Common (diluted) |
0.41 |
0.26 |
|
Subordinated (basic and diluted) |
0.41 |
0.21 |
|
|
|
|
|
Limited partner units outstanding (basic and
diluted): |
|
|
|
Common units - public |
19.9 |
19.9 |
|
Common units - MPC |
17.1 |
17.1 |
|
Subordinated units - MPC |
37.0 |
37.0 |
|
|
|
|
| Other Financial Information
(unaudited) |
Three Months Ended |
|
|
March
31 |
| (In millions, except per unit and ratio
data) |
2014 |
2013 |
|
|
|
|
|
Quarterly distribution declared per
unit |
$ 0.3275 |
$ 0.2725 |
|
|
|
|
|
Volume deficiency credits attributable to
MPLX LP (a) |
$ 11.5 |
$
0.1 |
|
|
|
|
Adjusted EBITDA attributable to MPLX
LP |
$ 43.8 |
$ 25.1 |
|
|
|
|
|
Distributable cash flow attributable to MPLX
LP |
$ 37.7 |
$ 28.0 |
|
|
|
|
| Distribution declared: |
|
|
| Limited
partner units - public |
$ 6.5 |
$ 5.4 |
| Limited
partner units - MPC |
17.7 |
14.7 |
|
General partner units -
MPC |
0.5 |
0.4 |
|
Incentive distribution
rights - MPC |
0.3 |
- |
|
Total distribution declared |
$ 25.0 |
$ 20.5 |
|
|
|
|
| Coverage ratio |
1.51x |
1.37x |
| Reconciliation of Adjusted EBITDA
attributable to MPLX LP and Distributable Cash Flow attributable to
MPLX LP from Net Income (unaudited) |
Three Months Ended |
|
March
31 |
| (In millions) |
2014 |
2013 |
|
Net Income |
$ 55.7 |
$ 35.3 |
| Less:
Net income attributable to MPC-retained interest |
21.5 |
17.7 |
|
Net income attributable to MPLX
LP |
34.2 |
17.6 |
| Plus:
Net income attributable to MPC-retained interest |
21.5 |
17.7 |
|
Depreciation |
12.6 |
11.7 |
|
Non-cash
equity-based compensation |
0.4 |
0.2 |
|
Net interest and
other financial costs |
0.6 |
0.2 |
|
Adjusted EBITDA |
69.3 |
47.4 |
| Less:
Adjusted EBITDA attributable to MPC-retained interest |
25.5 |
22.3 |
|
Adjusted EBITDA attributable to MPLX
LP |
43.8 |
25.1 |
| Plus:
Current period deferred revenue for committed volume deficiencies
(b) |
7.7 |
4.7 |
| Less:
Cash interest paid, net |
0.4 |
0.2 |
|
Maintenance
capital expenditures paid |
1.9 |
1.5 |
|
Volume
deficiency credits (a) |
11.5 |
0.1 |
| Distributable cash flow attributable
to MPLX LP |
$ 37.7 |
$ 28.0 |
(a)
Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but
not distributable cash flow.
(b)
Deficiency payments included in distributable cash flow that are
not included in net income or adjusted EBITDA.
| Reconciliation of Adjusted EBITDA
attributable to MPLX LP and Distributable Cash Flow attributable to
MPLX LP from Net Cash Provided by Operating Activities
(unaudited) |
Three Months Ended |
|
March
31 |
| (In millions) |
2014 |
2013 |
|
|
|
|
Net cash provided by operating
activities |
$ 71.9 |
$ 46.7 |
| Less:
Changes in working capital items |
4.3 |
(2.3) |
|
All other,
net |
(0.5) |
2.4 |
| Plus:
Non-cash equity-based compensation |
0.4 |
0.2 |
|
Net interest and
other financial costs |
0.6 |
0.2 |
|
Asset retirement
expenditures |
0.2 |
0.4 |
|
Adjusted EBITDA |
69.3 |
47.4 |
| Less:
Adjusted EBITDA attributable to MPC-retained interest |
25.5 |
22.3 |
|
Adjusted EBITDA attributable to MPLX
LP |
43.8 |
25.1 |
| Plus:
Current period deferred revenue for committed volume deficiencies
(a) |
7.7 |
4.7 |
| Less:
Cash interest paid, net |
0.4 |
0.2 |
|
Maintenance
capital expenditures paid |
1.9 |
1.5 |
|
Volume
deficiency credits (b) |
11.5 |
0.1 |
|
Distributable cash flow attributable to MPLX
LP |
$ 37.7 |
$ 28.0 |
|
|
|
(a)
Deficiency payments included in distributable cash flow that are
not included in net income or adjusted EBITDA.
(b)
Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but
not distributable cash flow.
| Selected Operating Data
(unaudited) |
Three Months Ended |
|
|
March
31 |
| |
2014 |
2013 |
|
Pipeline throughput (thousands of barrels per
day) : |
|
|
|
Crude oil pipelines |
982 |
1,076 |
|
Product pipelines |
819 |
917 |
|
Total |
1,801 |
1,993 |
|
Average tariff rates ($ per
barrel): |
|
|
|
Crude oil pipelines |
$ 0.68 |
$ 0.59 |
|
Product pipelines |
0.62 |
0.52 |
| Total pipelines |
0.65 |
0.56 |
| Selected Financial Data
(unaudited) |
Three Months Ended March
31 |
| (In millions) |
2014 |
2013 |
|
Capital Expenditures(a): |
|
|
|
Maintenance |
$ 2.4 |
$ 2.2 |
|
Expansion |
3.0 |
10.4 |
|
Total
capital expenditures |
5.4 |
12.6 |
|
Less: Increase in capital
accruals |
0.1 |
3.0 |
|
Asset retirement expenditures |
0.2 |
0.4 |
| Additions to property, plant and
equipment |
$ 5.1 |
$
9.2 |
(a) Excludes acquisition of an
additional interest in Pipe Line Holdings.
| Balance Sheet Data
(unaudited) |
March 31 |
December 31 |
| (In millions, except ratio
data) |
2014 |
2013 |
| Cash
and cash equivalents |
$ 40.6 |
$ 54.1 |
| Total
assets |
1,193.7 |
1,208.5 |
| Long
term debt(a) |
280.4 |
10.5 |
| Total
equity |
821.1 |
1,114.1 |
| Consolidated total debt to consolidated EBITDA (covenant
basis) |
2.2x |
0.1x |
(a) Includes amounts due within
one year.
MPLX 1Q 2014 Financial
Results
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: MPLX LP via Globenewswire
HUG#1781943
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