MPLX LP (MPLX) Bundle
A Brief History of MPLX
Company Overview
MPLX LP is a master limited partnership formed in 2012. It primarily focuses on the transportation and storage of crude oil and refined products, as well as the gathering and processing of natural gas and natural gas liquids (NGLs).
Recent Financial Performance
As of September 30, 2024, MPLX reported a net income attributable to MPLX LP of $1,037 million, compared to $918 million for the same period in 2023, reflecting an increase of $119 million. The total revenues and other income for the third quarter of 2024 were $2,972 million, up from $2,912 million year-over-year, marking a growth of $60 million.
| Financial Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Income Attributable to MPLX LP | $1,037 million | $918 million | $119 million |
| Total Revenues and Other Income | $2,972 million | $2,912 million | $60 million |
| Adjusted EBITDA | $1,714 million | $1,596 million | $118 million |
| Cash Distributions Declared | $980 million | $876 million | $104 million |
Capital Expenditures and Investments
In the first nine months of 2024, MPLX's capital expenditures totaled $720 million, compared to $668 million in the same period of 2023. The company also made significant investments in unconsolidated affiliates, amounting to $103 million in 2024, a substantial increase from $23 million in 2023.
Acquisitions and Expansions
MPLX completed the Utica Midstream Acquisition in the first quarter of 2024, contributing an additional $30 million in revenue. Additionally, the consolidation of the MarkWest Torñado GP, L.L.C. in December 2023 added approximately $93 million in incremental revenues.
Debt and Financing
As of September 30, 2024, MPLX had outstanding debt of $21,494 million, compared to $19,377 million as of December 31, 2023. The company issued $1.65 billion in Senior Notes during 2024, which contributed to its financing strategies.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Outstanding Debt | $21,494 million | $19,377 million |
| Cash and Cash Equivalents | $2,426 million | $1,048 million |
Market Trends and Future Outlook
MPLX's ability to adapt to market fluctuations is evidenced by its performance amid changing oil and gas prices. The pricing for natural gas NYMEX HH was reported at $2.23 per MMBtu in Q3 2024, down from $2.66 per MMBtu in Q3 2023, while C2 + NGL pricing was stable around $0.67 per gallon.
Looking ahead, MPLX expects to continue leveraging its pipeline and processing assets to enhance operational efficiency and drive revenue growth.
A Who Owns MPLX LP (MPLX)
Ownership Structure
MPLX LP is a publicly traded master limited partnership (MLP) primarily owned by Marathon Petroleum Corporation (MPC). As of September 30, 2024, the ownership breakdown is as follows:
| Ownership Type | Units Owned | Percentage Ownership |
|---|---|---|
| Common Units - Public | 355 million | 34.8% |
| Common Units - MPC | 619 million | 60.8% |
| Series A Preferred Units | 6 million | 0.6% |
| Series B Preferred Units | — | — |
| Non-controlling Interests | — | — |
Preferred Units
MPLX has Series A preferred units, with approximately 6 million remaining outstanding as of September 30, 2024. The Series B preferred units were redeemed on February 15, 2023, with a final distribution of $21 million paid to unitholders.
Recent Financial Performance
For the third quarter of 2024, MPLX declared a total cash distribution of $974 million, translating to $0.9565 per common unit, which is a notable increase from $0.8500 per common unit in the previous quarter. The allocation of distributions for the three months ended September 30, 2024, is detailed below:
| Distribution Type | Amount (in millions) |
|---|---|
| Common Unitholders | $974 |
| Series A Preferred Units | $6 |
| Total Distribution Declared | $980 |
Unit Repurchase Program
MPLX has an ongoing unit repurchase program authorized for up to $1 billion. As of September 30, 2024, the company had repurchased a total of 5.5 million common units at an average cost of $41.32 per unit.
Market Capitalization and Valuation
As of September 30, 2024, MPLX LP had approximately 1,018 million common units outstanding, contributing to a market capitalization of around $43.5 billion, based on a recent trading price range.
Summary of Key Financial Metrics
Key financial metrics for MPLX for the nine months ended September 30, 2024, are as follows:
| Metric | Value |
|---|---|
| Net Income | $3.218 billion |
| Adjusted EBITDA | $5.002 billion |
| Distributions to Unitholders | $2.623 billion |
| Cash Flow from Operations | $4.271 billion |
Equity Method Investments
MPLX also holds investments in various joint ventures and partnerships, which contribute to its overall financial performance. As of September 30, 2024, the carrying value of equity method investments was approximately $4.558 billion.
MPLX LP (MPLX) Mission Statement
Mission Statement Overview
MPLX LP is committed to providing safe, reliable, and environmentally responsible midstream services, focusing on the transportation, storage, and processing of natural gas and natural gas liquids. The company aims to create value for its unitholders while supporting the communities it serves and adhering to the highest standards of operational excellence.
Financial Performance
As of September 30, 2024, MPLX reported a net income attributable to MPLX LP of $1,037 million for the third quarter, compared to $918 million in the same period of the previous year. For the nine months ended September 30, 2024, the net income attributable to MPLX LP was $3,218 million, up from $2,794 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $1,037 | $918 | $3,218 | $2,794 |
| Adjusted EBITDA (in millions) | $1,714 | $1,596 | $5,002 | $4,646 |
| Distributions Declared (in millions) | $980 | $876 | $2,727 | $2,479 |
Capital Expenditures
MPLX's capital investment plan for 2024 includes a total capital expenditure of $1.1 billion, which consists of $950 million for growth capital and $150 million for maintenance capital. This investment is aimed at expanding and enhancing existing operations, as well as meeting regulatory requirements.
| Capital Expenditure Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Growth Capital Expenditures | $950 | $555 |
| Maintenance Capital Expenditures | $150 | $113 |
| Total Capital Expenditures | $1,100 | $668 |
Liquidity and Debt Management
As of September 30, 2024, MPLX reported total liquidity of $5.926 billion, which includes $2.426 billion in cash and cash equivalents. The company’s total long-term debt stood at $19.250 billion, with a significant portion of its borrowings consisting of fixed-rate senior notes.
| Debt and Liquidity Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $2,426 |
| Total Long-term Debt | $19,250 |
| Credit Facilities Available | $2,000 |
Environmental Commitment
MPLX is dedicated to maintaining a strong environmental stewardship program, adhering to federal, state, and local regulations concerning emissions and waste management. The company has allocated $15 million for environmental remediation efforts as of September 30, 2024.
Operational Highlights
For the three months ended September 30, 2024, MPLX processed a total of 7,168 million cubic feet of natural gas per day, showcasing its operational capacity and efficiency.
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Natural Gas Processed (in mcf/d) | 7,168 | 6,397 |
| C2 + NGLs Fractionated (in mbpd) | 595 | 565 |
Conclusion
MPLX LP continues to strengthen its position in the midstream sector through strategic investments, a robust financial framework, and a commitment to environmental sustainability.
How MPLX LP (MPLX) Works
Business Segments
MPLX operates through two primary segments: Logistics & Storage (L&S) and Gathering & Processing (G&P).
- Logistics & Storage (L&S): This segment is responsible for gathering, transporting, storing, and distributing crude oil, refined products, and other hydrocarbon-based products. It also includes refining logistics and terminal operations.
- Gathering & Processing (G&P): This segment focuses on gathering, processing, and transporting natural gas, as well as transporting, fractionating, storing, and marketing natural gas liquids (NGLs).
Financial Performance
As of September 30, 2024, MPLX reported the following financial highlights:
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Variance | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Variance |
|---|---|---|---|---|---|---|
| Total Revenues and Other Income | $2,972 million | $2,912 million | $60 million | $8,870 million | $8,315 million | $555 million |
| Net Income | $1,047 million | $928 million | $119 million | $3,248 million | $2,822 million | $426 million |
| Adjusted EBITDA | $1,714 million | $1,596 million | $118 million | $5,002 million | $4,646 million | $356 million |
| Distributable Cash Flow (DCF) | $1,446 million | $1,373 million | $73 million | $4,220 million | $3,956 million | $264 million |
Capital Expenditures
MPLX's capital expenditures for growth and maintenance are significant due to the capital-intensive nature of its operations.
| Type of Capital Expenditure | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Growth Capital Expenditures | $675 million | $516 million |
| Maintenance Capital Expenditures | $151 million | $113 million |
| Total Capital Expenditures | $793 million | $608 million |
Debt and Liquidity
As of September 30, 2024, MPLX has a significant amount of outstanding debt:
| Debt Type | Carrying Value (in millions) | Fair Value (in millions) |
|---|---|---|
| Outstanding Debt | $22,209 million | $21,494 million |
MPLX's credit ratings as of September 30, 2024, are as follows:
| Rating Agency | Rating | Outlook |
|---|---|---|
| Moody's | Baa2 | Stable |
| Standard & Poor's | BBB | Stable |
| Fitch | BBB | Stable |
Distributions
MPLX declared the following cash distributions:
| Distribution Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Common Unitholder Distributions | $974 million | $851 million |
| Series A Preferred Unit Distributions | $6 million | $25 million |
| Series B Preferred Unit Distributions | $0 million | $5 million |
Pricing Information
Pricing for key commodities as of September 30, 2024:
| Commodity | Price |
|---|---|
| Natural Gas NYMEX HH ($ per MMBtu) | $2.23 |
| C2 + NGL Pricing ($ per gallon) | $0.67 |
Equity Method Investments
MPLX's income from equity method investments for the three months ended September 30, 2024:
| Investment | Income (Loss) (in millions) |
|---|---|
| BANGL, LLC | ($3) |
| Illinois Extension Pipeline Company, L.L.C. | $15 |
| LOOP LLC | $3 |
| MarEn Bakken Company LLC | $23 |
| WPC Parent, LLC | $16 |
| Other | $26 |
| Total Income from Equity Method Investments | $149 |
How MPLX LP (MPLX) Makes Money
Business Segments
MPLX operates through two primary segments: Logistics & Storage (L&S) and Gathering & Processing (G&P).
Logistics & Storage (L&S)
The L&S segment is responsible for gathering, transporting, storing, and distributing crude oil, refined products, and other hydrocarbon-based products. This segment also includes refining logistics and fuels distribution.
In the third quarter of 2024, the L&S segment reported:
| Item | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Service Revenue | $1,158 | $1,130 |
| Rental Income | $223 | $216 |
| Product Related Revenue | $5 | $6 |
| Total Segment Revenue | $1,617 | $1,591 |
Gathering & Processing (G&P)
The G&P segment focuses on gathering, processing, and transporting natural gas, as well as transporting, fractionating, storing, and marketing natural gas liquids (NGLs).
For the third quarter of 2024, the G&P segment reported:
| Item | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Service Revenue | $709 | $641 |
| Product Sales | $433 | $478 |
| Total Segment Revenue | $1,191 | $1,274 |
Revenue Growth
Total revenues and other income for MPLX in the third quarter of 2024 reached $2.972 billion, an increase from $2.912 billion in the same quarter of 2023. The revenue growth was attributed to:
- Higher pipeline tariff rates
- Consolidation of MarkWest Torñado GP, L.L.C.
- Acquisition of additional ownership in the Utica basin
Cost Structure
In the third quarter of 2024, MPLX's total costs and expenses were $1.697 billion, compared to $1.758 billion in Q3 2023. Key cost components included:
- Cost of Revenues: $404 million (Q3 2024) vs. $367 million (Q3 2023)
- Purchased Product Costs: $403 million (Q3 2024) vs. $474 million (Q3 2023)
- Depreciation and Amortization: $322 million (Q3 2024) vs. $301 million (Q3 2023)
Net Income and Adjusted EBITDA
Net income attributable to MPLX LP for the third quarter of 2024 was $1.037 billion, compared to $918 million in Q3 2023. Adjusted EBITDA attributable to MPLX LP for the same period was $1.714 billion, up from $1.596 billion in Q3 2023.
Distributions to Unitholders
On October 29, 2024, MPLX declared a cash distribution of $974 million, or $0.9565 per common unit. This distribution is a significant increase from the $851 million declared in Q3 2023.
| Distribution Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Common Unitholder Distributions | $974 | $851 |
| Series A Preferred Distributions | $6 | $25 |
| Series B Preferred Distributions | $0 | $0 |
| Total Cash Distributions | $980 | $876 |
Capital Expenditures
MPLX's capital expenditures for the first nine months of 2024 totaled $793 million, including:
- Growth Capital Expenditures: $675 million
- Maintenance Capital Expenditures: $118 million
These investments are focused on expanding processing capacity in key regions such as the Marcellus and Permian basins.
Equity Method Investments
Income from equity method investments for the third quarter of 2024 was $149 million, down from $159 million in Q3 2023. This reflects the performance of various joint ventures in which MPLX holds stakes.
Financial Position
As of September 30, 2024, MPLX had total assets of approximately $28.124 billion, with total liabilities of $22.209 billion. The partnership's cash and cash equivalents stood at $2.426 billion.
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Resources:
- MPLX LP (MPLX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MPLX LP (MPLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MPLX LP (MPLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.