MPLX LP : Q1 2023 Investor Relations Packet

First Quarter 2023
Table of Contents:		Investor Relations
Condensed Consolidated Statements of Income	2	200 East Hardin Street
Consolidated Statements of Comprehensive Income	3	Findlay, OH 45840
Consolidated Balance Sheets	4	[e-mail]
Consolidated Statements of Cash Flows	5	419/421-2071
Financial Statistics	6
L&S Selected Operating Data	7
G&P Selected Operating Data	8
Reconciliation of Segment Adjusted EBITDA attributable to MPLX LP to Income from Operations and Net Income	9
Reconciliation of Adjusted EBITDA attributable to MPLX LP and Distributable Cash Flow attributable to GP and LP Unitholders from Net Income	10
Reconciliation of Adjusted EBITDA attributable to GP and LP Unitholders and Distributable Cash Flow attributable to MPLX LP from Net Cash Provided by Operating Activities	11
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions	12
Capital Expenditures	13

MPLX LP is a diversified, large-cap master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC).

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. These supporting schedules include the non-GAAP measures adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA); consolidated debt to last twelve months pro forma adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); distribution coverage ratio; adjusted free cash flow (Adjusted FCF) and Adjusted FCF after distributions. The amount of adjusted EBITDA and DCF generated is considered by the board of directors of our general partner in approving the Partnership's cash distribution. Adjusted EBITDA and DCF should not be considered separately from or as a substitute for net income, income from operations, or cash flow as reflected in our financial statements. The GAAP measures most directly comparable to adjusted EBITDA and DCF are net income and net cash provided by operating activities. We define Adjusted EBITDA as net income adjusted for: (i) provision for income taxes; (ii) interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) gain on sales-type leases; (vii) impairment expense; (viii) noncontrolling interests; and (ix) other adjustments, as applicable. In general, we define DCF as adjusted EBITDA adjusted for (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment maintenance capital expenditures paid out; and (vi) other adjustments as deemed necessary. The Partnership 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. Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. DCF is a financial performance measure used by management as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders. Adjusted FCF and Adjusted FCF after distributions are financial performance measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define Adjusted FCF as net cash provided by operating activities adjusted for (i) net cash used in investing activities; (ii) cash contributions from MPC; (iii) cash contributions from noncontrolling interests and (iv) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders. Distribution coverage ratio is a financial performance measure used by management to reflect the relationship between the partnership's financial operating performance and cash distribution capability. We define the distribution coverage ratio as the ratio of DCF attributable to GP and LP unitholders to total GP and LP distributions declared. Leverage ratio is a liquidity measure used by management, industry analysts, investors, lenders and rating agencies to analyze our ability to incur and service debt and fund capital expenditures.

Additional information regarding Investor Relations, Financial Highlights, and News Releases can be reviewed on our website at: www.mplx.com

May 2, 2023

1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

MPLX LP

Preliminary

			Year
	(In millions, except per unit data)		2021
	Revenues and other income:
1	Operating revenue	$	4,624
2	Operating revenue - related parties		4,951
3	Income from equity method investments		321
4	Other income(1)		131
5	Total revenues and other income		10,027
	Costs and expenses:
6	Operating expenses		2,905
7	Operating expenses - related parties		1,328
8	Depreciation and amortization		1,287
9	Impairment expense		42
10	General and administrative expenses		353
1	Other taxes		120
12	Total costs and expenses		6,035
13	Income from operations		3,992
14	Interest and other financial costs		879
15	Income before income taxes		3,113
16	Provision for income taxes		1
17	Net income		3,112
18	Less: Net income attributable to noncontrolling interests		35
19	Net income attributable to MPLX LP		3,077
20	Less: Series A preferred unit distributions		100
21	Less: Series B preferred unit distributions		41
22	Limited partners' interest in net income attributable to MPLX LP	$	2,936

	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	2022		2022		2022		2022		2022
$	1,265	$	1,495	$	1,430	$	1,137	$	5,327
	1,236		1,301		1,313		1,364		5,214
	99		111		125		141		476
	10		33		533		20		596
	2,610		2,940		3,401		2,662		11,613
	791		1,028		933		803		3,555
	334		370		374		389		1,467
	313		310		302		305		1,230
	-		-		-		-		-
	78		82		88		87		335
	34		33		30		18		115
	1,550		1,823		1,727		1,602		6,702
	1,060		1,117		1,674		1,060		4,911
	222		233		236		234		925
	838		884		1,438		826		3,986
	5		-		1		2		8
	833		884		1,437		824		3,978
	8		9		9		8		34
	825		875		1,428		816		3,944
	21		21		23		23		88
	11		10		10		10		41
$	793	$	844	$	1,395	$	783	$	3,815

1st Qtr

2023

$ 1,199 1,350 134 30

2,713

734

368

296

-

89

30

1,517

1,196

243

953

1

952

9

943

23

5

$ 915

Per Unit Data

Net income attributable to MPLX LP per limited partner unit:

1. Common - basic
2. Common - diluted

Weighted average limited partner units outstanding:

1. Common - basic
2. Common - diluted

$	2.86
$	2.86
	1,027
	1,027

$	0.78	$	0.83	$	1.36	$	0.78	$	3.75
$	0.78	$	0.83	$	1.36	$	0.78	$	3.75
	1,015		1,012		1,010		1,003		1,010
	1,015		1,012		1,011		1,003		1,010

$	0.91
$	0.91
	1,001
	1,001

(1) The third quarter of 2022 includes a $509 million non-cash gain on a lease reclassification.

2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

MPLX LP

			Year
	(In millions)		2021
1	Net income	$	3,112
	Other comprehensive (loss) income, net of tax:
	Remeasurement of pension and other postretirement benefits related to equity
2	method investments, net of tax		(2)
3	Comprehensive income		3,110
	Less comprehensive income attributable to:
4	Noncontrolling interests		35
5	Comprehensive income attributable to MPLX LP	$	3,075

	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr			Year
	2022		2022		2022	2022			2022
$	833	$	884	$	1,437	$	824	$	3,978
	9		-		-		-		9
	842		884		1,437		824		3,987
	8		9		9		8		34
$	834	$	875	$	1,428	$	816	$	3,953

Preliminary

1st Qtr

2023

$ 952

9

3

CONSOLIDATED BALANCE SHEETS

MPLX LP

							Preliminary
	(In millions, except ratio data)		December 31, 2021		December 31, 2022		March 31, 2023
	Assets
1	Cash and cash equivalents	$	13	$	238	$	393
2	Receivables, net		654		737
3	Current assets - related parties		644		729
4	Inventories		142		148
5	Other current assets		54		53
6	Total current assets		1,507		1,905
7	Equity method investments		3,981		4,095
8	Property, plant and equipment, net		20,042		18,848
9	Intangibles, net		831		705
10	Goodwill		7,657		7,645
11	Right of use assets, net		268		283
12	Noncurrent assets - related parties		1,161		1,225
13	Other noncurrent assets		60		959
14	Total assets		35,507		35,665		35,672
	Liabilities
15	Accounts payable		172		224
16	Accrued liabilities		363		269
17	Current liabilities - related parties		1,780		343
18	Accrued property, plant and equipment		97		128
19	Long-term debt due within one year		499		988
20	Accrued interest payable		202		237
21	Operating lease liabilities		59		46
22	Other current liabilities		176		166
23	Total current liabilities		3,348		2,401
24	Long-term deferred revenue		383		219
25	Long-term liabilities - related parties		302		338
26	Long-term debt		18,072		18,808
27	Deferred income taxes		10		13
28	Long-term operating lease liabilities		205		230
29	Other long-term liabilities		170		142
30	Total liabilities		22,490		22,151
31	Series A preferred units		965		968		968
	Equity
32	Common unitholders - public		8,579		8,413
33	Common unitholder - MPC		2,638		3,293
34	Series B preferred units		611		611
35	Accumulated other comprehensive loss		(17)		(8)
36	Total MPLX LP partners' capital		11,811		12,309
37	Noncontrolling interests		241		237
38	Total equity		12,052		12,546		12,080
39	Total liabilities, preferred units and equity	$	35,507	$	35,665
40	Consolidated total debt to LTM adjusted EBITDA(1)		3.7x		3.5x		3.5x

(1) Calculated using face value total debt and the last twelve months adjusted EBITDA.

4

CONSOLIDATED STATEMENTS OF CASH FLOWS (YTD)

MPLX LP

			Dec. 31
	(In millions)		2021
	Operating activities:
1	Net income	$	3,112
	Adjustments to reconcile net income to net cash provided by operating activities:
2	Amortization of deferred financing costs		70
3	Depreciation and amortization		1,287
4	Impairment expense		42
5	Deferred income taxes		(2)
6	Gain on sales-type leases		-
7	(Gain) loss on disposal of assets		(13)
8	Income from equity method investments		(321)
9	Distributions from unconsolidated affiliates		508
10	Change in fair value of derivatives		45
	Changes in:
11	Receivables		(199)
12	Inventories		(24)
13	Accounts payable and accrued liabilities		193
14	Assets/liabilities - related parties		101
15	Right of use assets/operating lease liabilities		(2)
16	Deferred revenue		88
17	All other, net		26
18	Net cash provided by operating activities		4,911
	Investing activities:
19	Additions to property, plant and equipment		(529)
20	Acquisitions, net of cash acquired		-
21	Disposal of assets		126
22	Investments in unconsolidated affiliates		(151)
23	Distributions from unconsolidated affiliates - return of capital		36
24	All other, net		-
25	Net cash used in investing activities		(518)
	Financing activities:
26	Long-term debt - borrowings		4,175
27	Long-term debt - repayments		(5,821)
28	Related party debt - borrowings		8,493
29	Related party debt - repayments		(7,043)
30	Debt issuance costs		-
31	Unit repurchases		(630)
32	Redemption of Series B preferred units		-
33	Distributions to noncontrolling interests		(39)
34	Distributions to Series A preferred unitholders		(100)
35	Distributions to Series B preferred unitholders		(41)
36	Distributions to unitholders and general partner		(3,432)
37	Contributions from MPC		45
38	All other, net		(2)
39	Net cash used in financing activities		(4,395)
40	Net change in cash and cash equivalents and restricted cash		(2)
41	Cash and cash equivalents and restricted cash at beginning of period		15
42	Cash and cash equivalents and restricted cash at end of period	$	13

										Preliminary
	Mar. 31		Jun. 30		Sep. 30		Dec. 31			Mar. 31
	2022		2022		2022		2022			2023
$	833	$	1,717	$	3,154	$	3,978		$	952
	18		36		55		73
	313		623		925		1,230			296
	-		-		-		-			-
	4		4		4		3
	-		-		(509)		(509)
	18		16		23		34
	(99)		(210)		(335)		(476)			(134)
	120		258		405		578
	(9)		(16)		(62)		(47)
	(87)		(131)		(219)		14
	(7)		(15)		(7)		(5)
	73		253		49		(33)
	(112)		-		52		40
	(1)		-		1		(3)
	16		41		64		108
	45		36		51		34
	1,125		2,612		3,651		5,019			1,227
	(169)		(294)		(535)		(806)			(169)
	-		(28)		(28)		(28)
	3		67		74		84
	(110)		(156)		(198)		(217)			(51)
	-		-		11		11			-
	-		-		-		-
	(276)		(411)		(676)		(956)			(220)
	2,385		2,385		3,379		3,379
	(1,201)		(1,201)		(2,202)		(2,202)
	1,849		2,824		2,824		2,989
	(2,976)		(4,274)		(4,274)		(4,439)
	(16)		(16)		(29)		(29)
	(100)		(135)		(315)		(491)			-
	-		-		-		-
	(9)		(19)		(29)		(38)			(10)
	(21)		(42)		(63)		(85)
	(21)		(21)		(41)		(41)
	(716)		(1,430)		(2,144)		(2,921)
	10		17		30		44			8
	(4)		(4)		(3)		(4)
	(820)		(1,916)		(2,867)		(3,838)			(852)
	29		285		108		225
	13		13		13		13
$	42	$	298	$	121	$	238

5