MPLX LP : Q4 2020 Investor Relations Packet (PDF)

Fourth Quarter 2020

Table of Contents:

Condensed Consolidated Statements of Income Consolidated Statements of Comprehensive Income Consolidated Balance Sheets

Consolidated Statements of Cash Flows Financial Statistics

L&S Selected Operating Data

G&P Selected Operating Data

Reconciliation of Segment Adjusted EBITDA attributable to MPLX LP to Net Income

Reconciliation of Adjusted EBITDA attributable to MPLX LP and Distributable Cash Flow attributable to GP and LP Unitholders from Net Income

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 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

Reconciliation of Capital Expenditures

Investor Relations

200 East Hardin Street

1. Findlay, OH 45840
2. [e-mail]
3. 419/421-2071

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MPLX LP is a diversified, large-cap master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC). On July 30, 2019, we completed the merger with Andeavor Logistics LP (ANDX). Financial information has been retrospectively adjusted for the acquisitions of Hardin Street Marine LLC, Hardin Street Transportation LLC, Woodhaven Cavern LLC and MPLX Terminals LLC as these transactions were considered transfers between entities under common control. Financial information has been retrospectively adjusted for the acquisitions of ANDX as noted on the following pages. Transfers of businesses between entities under common control require prior periods to be retrospectively adjusted to furnish comparative information.

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 press release and supporting schedules include the non-GAAP measures adjusted 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; and free cash flow (FCF) and excess/deficit cash flow. 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) depreciation and amortization; (ii) provision/benefit for income taxes; (iii) amortization of deferred financing costs; (iv) gain/loss on extinguishment of debt; (v) non-cashequity-based compensation; (vi) impairment expense; (vii) net interest and other financial costs; (viii) income/loss from equity method investments; (ix) distributions and adjustments related to equity method investments; (x) unrealized derivative gains/losses; (xi) acquisition costs; (xii) noncontrolling interest and (xiii) other adjustments as deemed necessary. In general, we define DCF as adjusted EBITDA adjusted for (i) deferred revenue impacts; (ii) net interest and other financial costs; (iii) maintenance capital expenditures; (iv) equity method investment capital expenditures paid out; and (v) other adjustments as deemed necessary. 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. FCF and excess/deficit cash flow 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 FCF as net cash provided by operating activities adjusted for (i) net cash used in investing activities; (ii) contributions from MPC; (iii) contributions from noncontrolling interests and (iv) distributions to noncontrolling interests. We define excess/deficit cash flow as FCF adjusted for 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

February 2, 2021

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

MPLX LP

																										Preliminary(2)	Preliminary(2)
			Year		Year		Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	(In millions, except per unit data)		2016		2017		2018			2019		2019		2019		2019		2019			2020		2020		2020		2020		2020
	Revenues and other income:
1	Operating revenue	$	1,828	$	2,322	$	3,315		$	963	$	927	$	928	$	1,014	$	3,832		$	916	$	803	$	912	$	955	$	3,586
2	Operating revenue - related parties		1,182		1,369		3,337			1,169		1,169		1,224		1,231		4,793			1,195		1,124		1,187		1,154		4,660
3	(Loss) income from equity method investments(1)		(74)		78		247			77		83		95		35		290			(1,184)		89		83		76		(936)
4	Other income		93		98		106			26		31		33		36		126			65		65		65		64		259
5	Total revenues and other income		3,029		3,867		7,005			2,235		2,210		2,280		2,316		9,041			992		2,081		2,247		2,249		7,569
	Costs and expenses:
6	Operating expenses		959		1,241		2,055			570		548		573		625		2,316			538		435		508		519		2,000
7	Operating expenses - related parties		389		457		956			321		349		348		378		1,396			322		321		329		304		1,276
8	Depreciation and amortization		591		683		867			301		313		302		338		1,254			325		321		346		385		1,377
9	Impairment expense		130		-		-			-		-		-		1,197		1,197			2,165		-		-		-		2,165
10	General and administrative expenses		227		241		316			101		90		102		95		388			97		96		96		89		378
11	Restructuring expenses		-		-		-			-		-		-		-		-			-		-		36		1		37
12	Other taxes		50		54		83			30		25		29		29		113			31		30		33		31		125
13	Total costs and expenses		2,346		2,676		4,277			1,323		1,325		1,354		2,662		6,664			3,478		1,203		1,348		1,329		7,358
14	Income (loss) from operations		683		1,191		2,728			912		885		926		(346)		2,377			(2,486)		878		899		920		211
15	Interest and other financial costs		261		354		714			224		229		233		229		915			230		223		224		219		896
16	Income (loss) before income taxes		422		837		2,014			688		656		693		(575)		1,462			(2,716)		655		675		701		(685)
17	(Benefit) provision for income taxes		(12)		1		8			(1)		(1)		4		(2)		-			-		-		1		1		2
18	Net income (loss)		434		836		2,006			689		657		689		(573)		1,462			(2,716)		655		674		700		(687)
19	Less: Net income attributable to noncontrolling interests		2		6		16			6		6		8		8		28			8		7		9		9		33
20	Less: Net income attributable to Predecessor		199		36		172			180		169		52		-		401			-		-		-		-		-
21	Net income (loss) attributable to MPLX LP		233		794		1,818			503		482		629		(581)		1,033			(2,724)		648		665		691		(720)
22	Less: Series A preferred unit distributions		41		65		75			20		21		20		20		81			20		21		20		20		81
23	Less: Series B preferred unit distributions		-		-		-			-		-		7		10		17			11		10		10		10		41
24	Less: General partner's interest in net income attributable to MPLX LP		191		318		-			-		-		-		-		-			-		-		-		-		-
25	Limited partners' interest in net income (loss) attributable to MPLX LP	$	1	$	411	$	1,743		$	483	$	461	$	602	$	(611)	$	935		$	(2,755)	$	617	$	635	$	661	$	(842)
	Per Unit Data
	Net income (loss) attributable to MPLX LP per limited partner unit:
26	Common - basic	$	-	$	1.07	$	2.29		$	0.61	$	0.56	$	0.61	$	(0.58)	$	1.00		$	(2.60)	$	0.58	$	0.61	$	0.63	$	(0.80)
27	Common - diluted		-		1.06		2.29			0.61		0.55		0.61		(0.58)		1.00			(2.60)		0.58		0.61		0.63		(0.80)
	Weighted average limited partner units outstanding:
28	Common - basic		331		385		761			794		794		974		1,058		906			1,058		1,059		1,046		1,040		1,051
29	Common - diluted		338		388		761			795		795		975		1,058		907			1,058		1,059		1,047		1,040		1,051

1. Income/(loss) from equity method investments includes impairment charges of $1,264 million for the first quarter of 2020.
2. Preliminary statement of income data.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

MPLX LP

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																									Preliminary(1)	Preliminary(1)
	Year		Year			Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
(In millions)	2016		2017			2018			2019		2019		2019		2019		2019			2020		2020		2020		2020		2020
Net income (loss)	$	434	$	836	$	2,006		$	689	$	657	$	689	$	(573)	$	1,462		$	(2,716)	$	655	$	674	$	700	$	(687)
Other comprehensive (loss) income, net of tax:
Remeasurement of pension and other postretirement benefits related to equity
method investments, net of tax		-		-		(2)			1		-		-		-		1			(1)		-		-
Comprehensive income (loss)		434		836		2004			690		657		689		(573)		1,463			(2,717)		655		674
Less comprehensive income attributable to:
Noncontrolling interests		2		6		16			6		6		8		8		28			8		7		9		9		33
Income attributable to Predecessor		199		36		172			180		169		52		-		401			-		-		-		-		-
Comprehensive income (loss) attributable to MPLX LP	$	233	$	794	$	1,816		$	504	$	482	$	629	$	(581)	$	1,034		$	(2,725)	$	648	$	665

(1) Preliminary select comprehensive income data.

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CONSOLIDATED BALANCE SHEETS

MPLX LP

																	Preliminary(3)
	(In millions, except ratio data)		Dec 31, 2016		Dec 31, 2017		Dec 31, 2018		Dec 31, 2019		Mar 31, 2020		Jun 30, 2020		Sep 30, 2020		Dec 31, 2020
	Assets
	Current assets:
1	Cash and cash equivalents	$	234	$	5	$	77	$	15	$	57	$	67	$	28	$	15
2	Receivables, net		299		292		611		593		522		562		477
3	Current assets - related parties		247		160		556		656		600		594		591
4	Inventories		55		65		98		110		105		115		117
5	Other current assets		33		37		98		110		45		48		59
6	Total current assets		868		559		1,440		1,484		1,329		1,386		1,272
7	Equity method investments		2,471		4,010		4,901		5,275		3,992		4,065		4,081
8	Property, plant and equipment, net		11,408		12,187		21,525		22,145		21,829		21,758		21,615
9	Intangibles, net		492		453		1,359		1,270		1,055		1,023		991
10	Goodwill		2,245		2,245		10,016		9,536		7,722		7,722		7,657
11	Right of use assets, net		-		-		-		365		352		341		323
12	Noncurrent assets - related parties		11		20		24		303		677		676		675
13	Other noncurrent assets		14		26		60		52		50		51		48
14	Total assets		17,509		19,500		39,325		40,430		37,006		37,022		36,662		36,414
	Liabilities
	Current liabilities:
15	Accounts payable		140		151		266		242		138		145		140
16	Accrued liabilities		232		231		272		187		135		138		169
17	Current liabilities - related parties		125		559		502		1,008		297		372		364
18	Accrued property, plant and equipment		146		194		399		283		234		154		121
19	Accrued interest payable		53		88		184		210		214		207		207
20	Operating lease liabilities		-		-		-		66		67		69		65
21	Other current liabilities		67		81		645		136		129		143		465(2)
22	Total current liabilities		763		1,304		2,268		2,132		1,214		1,228		1,531
23	Long-term deferred revenue		12		42		132		217		241		261		291
24	Long-term liabilities - related parties		19		43		46		290		290		287		281
25	Long-term debt		4,422		6,945		17,922		19,704		20,467		20,556		20,042
26	Deferred income taxes		6		5		14		12		11		11		12
27	Long-term operating lease liabilities		-		-		-		302		284		274		258
28	Deferred credits and other liabilities		177		188		208		192		175		175		184
29	Total liabilities		5,399		8,527		20,590		22,849		22,682		22,792		22,599
30	Series A preferred units		1,000		1,000		1,004		968		968		968		968		968
	Equity
31	Common unitholders - public		8,086		8,379		8,336		10,800		9,509		9,469		9,436
32	Class B unitholders		133		-		-		-		-		-		-
33	Common unitholder - MPC		1,069		2,099		(1,612)		4,968		3,014		2,951		2,827
34	General partner - MPC		1,013		(637)		-		-		-		-		-
35	Series B preferred units		-		-		-		611		601		611		601
36	Equity of Predecessor		791		-		10,867		-		-		-		-
37	Accumulated other comprehensive loss		-		(14)		(16)		(15)		(16)		(16)		(16)
38	Total MPLX LP partners' capital		11,092		9,827		17,575		16,364		13,108		13,015		12,848
39	Noncontrolling interests		18		146		156		249		248		247		247
40	Total equity		11,110		9,973		17,731		16,613		13,356		13,262		13,095		13,017
41	Total liabilities, preferred units and equity	$	17,509	$	19,500	$	39,325	$	40,430	$	37,006	$	37,022	$	36,662
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Consolidated total debt to LTM pro forma adjusted EBITDA(1)		2.9x		3.6x		3.9x		4.1x		4.1x		4.1x		4.0x		3.9x

1. Calculated using face value total debt and pro forma adjusted EBITDA, which is pro forma for acquisitions.
2. Includes $300 million of long-term debt due within one year related to our 6.25% Senior Notes due on October 15, 2022, which were paid off on October 15, 2020.
3. Preliminary select balance sheet data.

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