* Completed initial public offering (IPO) on Oct. 31
* Reported $18.2 million of Adjusted EBITDA attributable to MPLX for post-IPO
period
* Generated $16.7 million of distributable cash flow
* Declared $0.1769 per unit initial quarterly prorated distribution
* Established strong financial position and liquidity to support growth
FINDLAY, Ohio, Jan. 30, 2013 - MPLX LP (NYSE: MPLX), for the period beginning
Oct. 31, 2012, and ending Dec. 31, 2012 (the "post-IPO period"), reported net
income attributable to MPLX of $13.1 million, or $0.18 per common limited
partner unit. For the post-IPO period, Adjusted EBITDA attributable to MPLX was
$18.2 million and distributable cash flow attributable to MPLX was $16.7
million.
On Jan. 24, the board of directors declared its first regular cash distribution
of $0.1769 per unit. This amount represents the prorated minimum quarterly
distribution of $0.2625 per unit, or $1.05 per unit on an annualized basis.
"Our objective is to create a leading master limited partnership focused on
hydrocarbon-based midstream assets, and we are enthusiastic about MPLX's
prospects," said MPLX Chairman and Chief Executive Officer Gary R. Heminger.
"MPLX has multiple revenue and earnings expansion options to support an
attractive distribution growth profile over an extended period of time. We
intend to provide unitholders continuing confidence in MPLX's consistent cash
generation and distribution-growth capabilities."
Heminger said that MPLX will benefit from Marathon Petroleum Corporation's (MPC)
more than 100 years of experience in the midstream business. "Our operational
excellence is backed by a long-established culture of safety, environmental
stewardship and efficiency that has grown along with the upstream and downstream
operators we serve," said Heminger. "Our unitholders will benefit from this
values-driven legacy as it continues to contribute to our success."
Discussion of results
MPLX revenues and other income for the post-IPO period totaled $83.6 million,
driven primarily by total pipeline throughput of 2.07 million barrels per day.
MPC - MPLX's general partner - and related parties accounted for approximately
87 percent of those revenues, including revenues attributable to volumes shipped
by MPC under joint tariffs with third parties, which are treated as third-party
revenue for accounting purposes. After deducting the 49 percent interest
retained by MPC, Adjusted EBITDA attributable to MPLX for the post-IPO period
was $18.2 million. The financial results for the post-IPO period were consistent
with MPLX management's expectations.
Prior to the IPO on Oct. 31, 2012, net income attributable to MPLX included the
results of two pipeline systems not contributed to MPLX. The post-IPO period
does not include the results from these systems. In addition, the results for
the post-IPO period are reduced by the 49 percent interest in MPLX pipeline
systems retained by MPC. As a result, net income attributable to MPLX of $28.9
million for the fourth quarter of 2012 is not comparable on a period-to-period
basis.
Progress continues on MPLX's multiyear Patoka-to-Catlettsburg pipeline system
expansion project, with all the 2012 work completed as planned. The project
continues to be targeted for completion in late 2014.
As of Dec. 31, 2012, MPLX had $216.7 million of cash, primarily to prefund
$177.6 million of planned capital projects. The partnership also had access to a
$500 million unused revolving credit facility available to fund organic growth
opportunities or acquisitions from MPC or from third parties.
Conference call
At 2 p.m. EST today, MPLX will hold a webcast and conference call to discuss the
reported results and provide an update on partnership operations. Interested
parties may listen to the conference call on MPLX's website at
http://www.mplx.com by clicking on the "2012 Financial Results" link, found
under the News and Headlines section. Replays of the conference call will be
available on the partnership's website through Thursday, Feb. 14.
# # #
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 51 percent 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.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Media Contacts:
Angelia Graves (419) 421-2703
Jamal Kheiry (419) 421-3312
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."Â 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 MPLX business
and operations. 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 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 Prospectus filed with the Securities and Exchange Commission
(the "SEC") on October 29, 2012. In addition, the forward-looking statements
included herein could be affected by general domestic and international economic
and political conditions. Unpredictable or unknown factors not discussed here or
in MPLX's Prospectus could also have material adverse effects on forward-looking
statements. Copies of MPLX's Prospectus are available on the SEC website, at
http://ir.mplx.com or by contacting MPLX's Investor Relations Office.
Results of Operations
Factors Affecting Comparability
The following tables present net income attributable to MPLX LP, distributable
cash flow attributable to MPLX LP, Adjusted EBITDA attributable to MPLX LP and
related operational information for the three- and twelve-month periods ended
Dec. 31, 2012, and Dec. 31, 2011. Prior to Oct. 31, 2012, MPLX results included
minority undivided joint interests in two crude oil pipeline systems that were
not contributed to MPLX at the IPO. One hundred percent of the net income
related to the assets that were contributed to MPLX was included in results
prior to Oct. 31, while results for the post-IPO period reflect only the 51
percent general partner interest contributed to MPLX by deducting the 49 percent
interest retained by MPC. The Neal, W.Va., butane cavern financial results are
only included starting Oct. 31, 2012. Additional differences in revenues and
expenses are detailed in the factors affecting the comparability of our
financial results in the Management's Discussion and Analysis of Financial
Condition and Results of Operations section of the prospectus filed in
connection with the IPO. The unaudited combined financial results of MPLX LP
Predecessor, our predecessor for accounting purposes, are presented for periods
through Oct. 30, 2012.
-------------------------------------------------------------------------------
Results of Operations
(unaudited)
Predecessor and
Partnership
MPLX LP
 MPLX LP Predecessor
10/1/12 Through 10/31/12 Through Three months
(In millions) 10/30/12 12/31/12 ended  12/31/12
-------------------------------------------------------------------------------
Revenues and other
income:
  Sales and other
operating revenues $ Â Â Â Â Â Â 5.9 $ Â Â Â Â Â 15.0 $ Â Â Â Â Â 20.9
  Sales to related
parties 37.1 64.9 102.0
  Other income 0.6 1.3 1.9
  Other income -
related parties        1.1        2.4        3.5
   Total revenues
and other income       44.7       83.6      128.3
Costs and expenses:
  Cost of revenues
(excludes items below) 14.5 22.5 37.0
  Purchases from
related parties 6.7 16.4 23.1
  Depreciation 3.7 7.9 11.6
  General and
administrative
expenses 3.3 9.2 12.5
  Other taxes        0.6        1.0        1.6
   Total costs and
expenses       28.8       57.0       85.8
Income from operations 15.9 26.6 42.5
  Interest and other
financial income
(costs) Â Â Â Â Â Â Â Â Â - Â Â Â Â Â Â (0.2) Â Â Â Â Â Â (0.2)
Income before income
taxes 15.9 26.4 42.3
  Provision for
income taxes        0.1        0.1        0.2
Net income       15.8       26.3       42.1
Less:
  Net income
attributable to MPC-
retained interest          -        13.2       13.2
Net income
attributable to MPLX
LP $ Â Â Â Â 15.8 $ Â Â Â Â Â 13.1 $ Â Â Â Â Â 28.9
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Results of Operations
(unaudited)
 Three Months Ended Twelve Months Ended
 December 31 December 31
(In millions, except per-
unit data) 2012 2011 2012 2011
-------------------------------------------------------------------------------
Revenues and other income:
  Sales and other operating
revenues $ Â Â 20.9 $ Â Â 17.6 $ Â Â 74.4 $ Â Â 62.1
  Sales to related parties 102.0 81.4 367.8 334.8
  Loss on sale of assets - - (0.3) -
  Other income 1.9 2.0 6.9 4.3
  Other income - related
parties     3.5     3.1    13.1     9.4
   Total revenues and
other income   128.3   104.1   461.9   410.6
Costs and expenses:
  Cost of revenues
(excludes items below) 37.0 48.6 173.8 162.9
  Purchases from related
parties 23.1 7.5 44.4 29.0
  Depreciation 11.6 8.9 39.4 36.3
  General and
administrative expenses 12.5 11.4 49.8 38.5
  Other taxes     1.6     3.1    11.3    11.9
   Total costs and
expenses    85.8    79.5   318.7   278.6
Income from operations 42.5 Â Â Â 24.6 Â Â 143.2 Â Â 132.0
  Related party interest
and other financial income - 0.2 1.3 2.3
  Interest and other
financial income (costs) Â Â Â (0.2) Â Â Â Â Â Â - Â Â Â (0.2) Â Â Â (0.2)
Income before income taxes 42.3 Â 24.8 Â 144.3 Â 134.1
  Provision for income
taxes     0.2     0.1     0.3     0.1
Net income   42.1 24.7 144.0 134.0
Less:
  Net income attributable
to MPC-retained interest    13.2       -    13.2       -
Net income attributable to
MPLX LP $ Â Â 28.9 $ Â Â 24.7 $ Â 130.8 $ Â 134.0
Less: Predecessor income
prior to IPO on 10/31/12 Â Â Â 15.8 Â Â Â 117.7
Net income attributable to
MPLX LP subsequent to IPO 13.1 Â 13.1
Less: General Partner's
interest in net income
attributable to MPLX LP
subsequent to IPO Â Â Â Â 0.2 Â Â Â Â Â 0.2
Limited Partners' interest
in net income attributable
to MPLX LP subsequent to IPO $ Â Â 12.9 Â $ Â Â 12.9
Net income attributable to
MPLX LP subsequent to IPO
per limited partner unit
(basic and diluted):
  Common $   0.18  $   0.18
  Subordinated - MPC 0.17  0.17
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 Twelve Months
 Ended Ended
 December 31 December 31
(In millions, except per-unit and ratio 2012 2012
data)
-------------------------------------------------------------------------------
Minimum Quarterly Distribution per unit
(prorated) $ 0.1769 Â $ 0.1769
Adjusted EBITDA attributable to MPLX LP
subsequent to IPO $ Â Â 18.2 Â $ Â Â 18.2
Distributable Cash Flow attributable to
MPLX LP subsequent to IPO $ Â Â 16.7 Â $ Â Â 16.7
Distribution declared:
  Limited partner units - Public $    3.5  $    3.5
  Limited partner units - MPC 9.5  9.5
  General partner units - MPC      0.3      0.3
   Total distribution declared $    13.3  $   13.3
Coverage ratio 1.25x  1.25x
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Reconciliation of
Distributable Cash
Flow attributable
to MPLX LP and
Adjusted EBITDA
attributable to
MPLX LP to Net
Income (unaudited)
MPLX LP
 Predecessor MPLX LP Three Twelve
10/1/12 10/31/12 Months
Through 10/30/12 Through Months  Ended  Ended
(In millions) 12/31/12 Â 12/31/12 12/31/12
-------------------------------------------------------------------------------
Net income $ Â Â Â Â 15.8 $ Â Â Â 26.3 $ Â Â Â 42.1 $ Â Â 144.0
Less:
  Net income
attributable to
MPC-retained
interest         -     13.2     13.2     13.2
Net income
attributable to
MPLX LP 15.8 13.1 28.9 130.8
Add:
  Net income
attributable to
MPC-retained
interest - 13.2 13.2 13.2
  Depreciation 3.7 7.9 11.6 39.4
  Provision for
income taxes 0.1 0.1 0.2 0.3
  Non-cash equity-
based compensation  -   0.1    0.1   0.1
Less:
  Net interest and
other financial
income (costs) Â Â Â Â Â Â Â Â - Â Â Â Â (0.2) Â Â Â Â (0.2) 1.1
Adjusted EBITDA 19.6 34.6 54.2 182.7
Less:
  Adjusted EBITDA
attributable to
MPC-retained
interest         -     16.4     16.4     16.4
Adjusted EBITDA
attributable to
MPLX LP $ Â Â Â 19.6 18.2 37.8 166.3
Less:
  Predecessor
Adjusted EBITDA
prior to IPO on
10/31/12 Â Â - Â Â Â Â 19.6 Â Â Â 148.1
Adjusted EBITDA
attributable to
MPLX LP subsequent
to IPO Â 18.2 18.2 18.2
Less:
  Cash interest
paid, net  0.2 0.2 0.2
  Income taxes
paid  - - -
  Maintenance
capital
expenditures paid  3.4 3.4 3.4
Plus:
  Increase
(decrease) in
deferred revenue
for committed
volume deficiencies       2.1      2.1 2.1
Distributable Cash
Flow attributable
to MPLX LP Â $ Â Â Â 16.7 $ Â Â Â 16.7 $ Â Â Â 16.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Reconciliation of Distributable Cash Flow attributable to MPLX LP and Adjusted
EBITDA attributable to MPLX LP to Net Cash Provided by Operating Activities
(unaudited)
Three Months Ended Twelve Months Ended
(In millions) Â 12/31/12 Â 12/31/12
-------------------------------------------------------------------------------
Net cash provided by
operating activities $ Â Â Â Â Â Â 68.8 $ Â Â Â Â Â 190.6
Less:
  Net loss on disposal of
assets - 0.3
  Net interest and other
financial income (costs) (0.2) 1.1
  Changes in working
capital items 18.1 15.9
  All other, net (3.0) (8.9)
Plus:
  Non-cash equity based
compensation 0.1 0.1
  Current income tax
expense         0.2         0.4
Adjusted EBITDA 54.2 182.7
Less:
  Adjusted EBITDA
attributable to MPC-retained
interest        16.4        16.4
Adjusted EBITDA attributable
to MPLX LP Â Â Â 37.8 166.3
Less:
  Predecessor Adjusted
EBITDA prior to IPO on
10/31/12 Â Â Â Â Â Â Â 19.6 Â Â Â Â Â Â 148.1
Adjusted EBITDA attributable
to MPLX LP subsequent to IPO Â Â Â 18.2 Â Â Â Â 18.2
Less:
  Cash interest paid, net 0.2 0.2
  Income taxes paid - -
  Maintenance capital
expenditures paid 3.4 3.4
Plus:
  Increase (decrease) in
deferred revenue for
committed volume
deficiencies         2.1         2.1
Distributable Cash Flow
attributable to
MPLX LP $ Â Â Â Â Â Â 16.7 $ Â Â Â Â Â Â 16.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Selected Operating
Data (unaudited)
Predecessor and
Partnership
           MPLX LP Predecessor MPLX LP Three
           10/1/12  through 10/31/12  through Months
  10/30/12  12/31/12 Ended 12/31/12
-------------------------------------------------------------------------------
Pipeline throughput
 (thousands of
barrels per day):
  Crude oil
pipelines    1,179  1,123 1,141
  Product pipelines    1,116     948    1,003
    Total    2,295   2,071    2,144
  Crude oil
pipelines in light
equivalent barrels 1,257 1,244 1,248
Average tariff rates
($ per barrel)
  Crude oil
pipelines $ Â Â 0.64 $ Â Â 0.60 $ Â Â 0.62
  Product pipelines 0.56 0.55 0.55
  Total pipelines   0.60   0.58   0.59
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Selected Operating Data (unaudited)
 Twelve Months
Three Months Ended Ended
 December 31 December 31
 2012 2011 2012 2011
-------------------------------------------------------------------------------
Pipeline throughput  (thousands of
barrels per day):
  Crude oil pipelines 1,141 1,137 1,147 1,184
  Product pipelines   1,003   1,007    980   1,031
   Total   2,144   2,144  2,127   2,215
  Crude oil pipelines in light
equivalent barrels   1,248 1,200 1,219 1,259
Average tariff rates ($ per barrel)
  Crude oil pipelines $ 0.62 $ 0.47 $ 0.57 $ 0.48
  Product pipelines 0.55 0.49 0.51 0.46
  Total pipelines  0.59   0.48   0.54   0.47
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Selected Financial Data
(unaudited)
Predecessor and
Partnership
 MPLX LP
Predecessor MPLX LP
10/1/12 10/31/12 Three
Through Through Months
(In millions) 10/30/12 12/31/12 Ended 12/31/12
-------------------------------------------------------------------------------
Capital Expenditures:
  Maintenance $      5.0 $       4.7 $        9.7
  Expansion       7.4       10.1        17.5
   Total Capital 12.4 14.8 27.2
Expenditures
Less:
  Increase (decrease) in (1.9) (3.9) (5.8)
capital accruals
  Retirement       4.4        2.2         6.6
expenditures
Additions to property, $ Â Â Â Â Â 9.9 $ Â Â Â Â Â 16.5 $ Â Â Â Â Â Â 26.4
plant and equipment
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Selected Financial Data
(unaudited)
 Three Twelve
Months Ended Months Ended
December 31 December 31
(In millions) 2012 2011 2012 2011
-------------------------------------------------------------------------------
Capital Expenditures:
  Maintenance $    9.7 $    7.7 $   24.5 $   14.3
  Expansion    17.5    22.5   123.5    41.6
   Total Capital
Expenditures 27.2 30.2 148.0 55.9
Less:
  Increase (decrease) in
capital accruals (5.8) 1.4 3.2 4.1
  Retirement expenditures     6.6     1.2     9.2     2.0
Additions to property, plant
and equipment $ Â Â 26.4 $ Â Â 27.6 $ Â 135.6 $ Â Â 49.8
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Balance Sheet Data (unaudited)
 December 31 December 31
(In millions, except ratio data) 2012 2011
-------------------------------------------------------------------------------
Cash and cash equivalents $ Â Â Â Â 216.7 $ Â Â Â Â Â Â 0.1
Total assets 1,301.3 1,303.1
Long term debt((a)) 11.3 11.9
Total equity/net investment 1,226.8 1,239.2
Consolidated Total Debt to Consolidated EBITDA
ratio (covenant basis) 0.1 n/a
-------------------------------------------------------------------------------
(a) Â Including amounts due within one year
MPLX LP 4Q 2012 Results:
http://hugin.info/155038/R/1673991/545039.pdf
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Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: MPLX LP via Thomson Reuters ONE
[HUG#1673991]