Fourth Quarter 2020
Table of Contents: | Investor Relations | |
200 East Hardin Street | ||
Consolidated Statements of Income | 2 | Findlay, OH 45840 |
Consolidated Statements of Comprehensive Income | 3 | MPLXInvestorRelations@marathonpetroleum.com |
Consolidated Balance Sheets | 4 | 419/421-2071 |
Consolidated Statements of Cash Flows | 5 | |
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 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 Free Cash Flow | 12 | |
Reconciliation of Capital Expenditures | 13 |
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-cash equity-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 26, 2021
CONSOLIDATED STATEMENTS OF INCOME
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(In millions, except per unit data) | Year 2016 | Year 2017 | Year 2018 |
Revenues and other income: Service revenue Service revenue - related parties Service revenue - product related Rental income Rental income - related parties Product sales Product sales - related parties (Loss) income from equity method investments(1) Other income Other income - related parties Total revenues and other income Costs and expenses: Cost of revenues (excludes items below) Purchased product costs Rental cost of sales Rental cost of sales - related parties Purchases - related parties Depreciation and amortization Impairment expense General and administrative expenses Restructuring expenses Other taxes Total costs and expenses Income (loss) from operations Related party interest and other financial costs Interest expense, net of amounts capitalized Other financial costs Income (loss) before income taxes (Benefit) provision for income taxes Net income (loss) Less: Net income attributable to noncontrolling interests Less: Net income attributable to Predecessor Net income (loss) attributable to MPLX LP Less: Series A preferred unit distributions Less: Series B preferred unit distributions Less: General partner's interest in net income attributable to MPLX LP Limited partners' interest in net income (loss) attributable to MPLX LP | $ 958 936 - 298 235 572 11 (74) 7 86 | $ 1,156 1,082 - 277 279 889 8 78 6 92 | $ 1,856 2,404 220 352 846 887 87 247 7 99 |
3,029 | 3,867 | 7,005 | |
454 448 57 1 388 591 130 227 - 50 | 528 651 62 2 455 683 - 241 - 54 | 1,096 824 135 31 925 867 - 316 - 83 | |
2,346 | 2,676 | 4,277 | |
683 1 210 50 | 1,191 2 296 56 | 2,728 5 590 119 | |
422 (12) | 837 1 | 2,014 8 | |
434 2 199 | 836 6 36 | 2,006 16 172 | |
233 41 - 191 | 794 65 - 318 | 1,818 75 - - | |
$ 1 | $ 411 | $ 1,743 |
37 38
39 40
Per Unit Data Net income (loss) attributable to MPLX LP per limited partner unit: Common - basic Common - diluted Weighted average limited partner units outstanding: Common - basic Common - diluted | $ - - 331 338 | $ 1.07 1.06 385 388 | $ 2.29 2.29 761 761 |
(1) Income/(loss) from equity method investments includes impairment charges of $1,264 million for the first quarter of 2020.
1st Qtr 2019 | 2nd Qtr 2019 | 3rd Qtr 2019 | 4th Qtr 2019 | Year 2019 |
$ 614 803 34 99 325 216 41 77 - 26 | $ 619 847 26 93 286 189 36 83 4 27 | $ 632 899 26 99 293 171 32 95 2 31 | $ 633 906 54 97 292 230 33 35 6 30 | $ 2,498 3,455 140 388 1,196 806 142 290 12 114 |
2,235 | 2,210 | 2,280 | 2,316 | 9,041 |
339 194 37 43 278 301 - 101 - 30 | 353 166 29 36 313 313 - 90 - 25 | 407 129 37 45 303 302 - 102 - 29 | 390 197 38 41 337 338 1,197 95 - 29 | 1,489 686 141 165 1,231 1,254 1,197 388 - 113 |
1,323 | 1,325 | 1,354 | 2,662 | 6,664 |
912 1 214 9 | 885 2 214 13 | 926 5 212 16 | (346) 3 211 15 | 2,377 11 851 53 |
688 (1) | 656 (1) | 693 4 | (575) (2) | 1,462 - |
689 6 180 | 657 6 169 | 689 8 52 | (573) 8 - | 1,462 28 401 |
503 20 - - | 482 21 - - | 629 20 7 - | (581) 20 10 - | 1,033 81 17 - |
$ 483 | $ 461 | $ 602 | $ (611) | $ 935 |
$ 0.61 0.61 794 795 | $ 0.56 0.55 794 795 | $ 0.61 0.61 974 975 | $ (0.58) (0.58) 1,058 1,058 | $ 1.00 1.00 906 907 |
1st Qtr 2020 | 2nd Qtr 2020 | 3rd Qtr 2020 | 4th Qtr 2020 | Year 2020 |
$ 612 928 39 96 234 169 33 (1,184) 1 64 | $ 563 857 22 98 237 120 30 89 2 63 | $ 604 909 41 102 241 165 37 83 2 63 | $ 618 886 53 102 240 182 28 76 - 64 | $ 2,397 3,580 155 398 952 636 128 (936) 5 254 |
992 | 2,081 | 2,247 | 2,249 | 7,569 |
368 135 35 46 276 325 2,165 97 - 31 | 315 87 33 41 280 321 - 96 - 30 | 323 152 33 32 297 346 - 96 36 33 | 320 165 34 41 263 385 - 89 1 31 | 1,326 539 135 160 1,116 1,377 2,165 378 37 125 |
3,478 | 1,203 | 1,348 | 1,329 | 7,358 |
(2,486) 3 211 16 | 878 1 206 16 | 899 - 207 17 | 920 1 205 13 | 211 5 829 62 |
(2,716) - | 655 - | 675 1 | 701 1 | (685) 2 |
(2,716) 8 - | 655 7 - | 674 9 - | 700 9 - | (687) 33 - |
(2,724) 20 11 - | 648 21 10 - | 665 20 10 - | 691 20 10 - | (720) 81 41 - |
$ (2,755) | $ 617 | $ 635 | $ 661 | $ (842) |
$ (2.60) (2.60) 1,058 1,058 | $ 0.58 0.58 1,059 1,059 | $ 0.61 0.61 1,046 1,047 | $ 0.63 0.63 1,040 1,040 | $ (0.80) (0.80) 1,051 1,051 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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(In millions) | Year 2016 | Year 2017 | Year 2018 |
Net income (loss) Other comprehensive (loss) income, net of tax: Remeasurement of pension and other postretirement benefits related to equity method investments, net of tax Comprehensive income (loss) Less comprehensive income attributable to: Noncontrolling interests Income attributable to Predecessor Comprehensive income (loss) attributable to MPLX LP | $ 434 - | $ 836 - | $ 2,006 (2) |
434 2 199 | 836 6 36 | 2004 16 172 | |
$ 233 | $ 794 | $ 1,816 |
1st Qtr 2019 | 2nd Qtr 2019 | 3rd Qtr 2019 | 4th Qtr 2019 | Year 2019 |
$ 689 1 | $ 657 - | $ 689 - | $ (573) - | $ 1,462 1 |
690 6 180 | 657 6 169 | 689 8 52 | (573) 8 - | 1,463 28 401 |
$ 504 | $ 482 | $ 629 | $ (581) | $ 1,034 |
1st Qtr 2020 | 2nd Qtr 2020 | 3rd Qtr 2020 | 4th Qtr 2020 | Year 2020 |
$ (2,716) (1) | $ 655 - | $ 674 - | $ 700 1 | $ (687) - |
(2,717) 8 - | 655 7 - | 674 9 - | 701 9 - | (687) 33 - |
$ (2,725) | $ 648 | $ 665 | $ 692 | $ (720) |
CONSOLIDATED BALANCE SHEETS
MPLX LP
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(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: Cash and cash equivalents Receivables, net Current assets - related parties Inventories Other current assets Total current assets Equity method investments Property, plant and equipment, net Intangibles, net Goodwill Right of use assets, net Noncurrent assets - related parties Other noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Accrued liabilities Current liabilities - related parties Accrued property, plant and equipment Accrued interest payable Operating lease liabilities Other current liabilities Total current liabilities Long-term deferred revenue Long-term liabilities - related parties Long-term debt Deferred income taxes Long-term operating lease liabilities Deferred credits and other liabilities Total liabilities Series A preferred units Equity Common unitholders - public Class B unitholders Common unitholder - MPC General partner - MPC Series B preferred units Equity of Predecessor Accumulated other comprehensive loss Total MPLX LP partners' capital Noncontrolling interests Total equity Total liabilities, preferred units and equity | $ 234 299 247 55 33 | $ 5 292 160 65 37 | $ 77 611 556 98 98 | $ 15 593 656 110 110 | $ 57 522 600 105 45 | $ 67 562 594 115 48 | $ 28 477 591 117 59 | $ 15 452 677 118 253(2) |
868 2,471 11,408 492 2,245 - 11 14 | 559 4,010 12,187 453 2,245 - 20 26 | 1,440 4,901 21,525 1,359 10,016 - 24 60 | 1,484 5,275 22,145 1,270 9,536 365 303 52 | 1,329 3,992 21,829 1,055 7,722 352 677 50 | 1,386 4,065 21,758 1,023 7,722 341 676 51 | 1,272 4,081 21,615 991 7,657 323 675 48 | 1,515 4,036 21,218 959 7,657 309 672 48 | |
17,509 140 232 125 146 53 - 67 | 19,500 151 231 559 194 88 - 81 | 39,325 266 272 502 399 184 - 645 | 40,430 242 187 1,008 283 210 66 136 | 37,006 138 135 297 234 214 67 129 | 37,022 145 138 372 154 207 69 143 | 36,662 140 169 364 121 207 65 465(3) | 36,414 152 194 356 84 222 63 1,015(2)(4) | |
763 12 19 4,422 6 - 177 | 1,304 42 43 6,945 5 - 188 | 2,268 132 46 17,922 14 - 208 | 2,132 217 290 19,704 12 302 192 | 1,214 241 290 20,467 11 284 175 | 1,228 261 287 20,556 11 274 175 | 1,531 291 281 20,042 12 258 184 | 2,086 314 283 19,375 12 244 115 | |
5,399 1,000 8,086 133 1,069 1,013 - 791 - | 8,527 1,000 8,379 - 2,099 (637) - - (14) | 20,590 1,004 8,336 - (1,612) - - 10,867 (16) | 22,849 968 10,800 - 4,968 - 611 - (15) | 22,682 968 9,509 - 3,014 - 601 - (16) | 22,792 968 9,469 - 2,951 - 611 - (16) | 22,599 968 9,436 - 2,827 - 601 - (16) | 22,429 968 9,384 - 2,792 - 611 - (15) | |
11,092 18 | 9,827 146 | 17,575 156 | 16,364 249 | 13,108 248 | 13,015 247 | 12,848 247 | 12,772 245 | |
11,110 | 9,973 | 17,731 | 16,613 | 13,356 | 13,262 | 13,095 | 13,017 | |
$ 17,509 | $ 19,500 | $ 39,325 | $ 40,430 | $ 37,006 | $ 37,022 | $ 36,662 | $ 36,414 |
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) Current assets includes $188 million of assets held for sale and Current liabilities includes $101 million of liabilities held for sale.
(3) 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.
(4) Includes $750 million of long-term debt due within one year related to our 5.25% Senior Notes due on January 15, 2025, which were paid off on January 15, 2021.
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MPLX LP published this content on 26 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 February 2021 13:47:02 UTC.