MPLX LP : Q4 2021 Investor Relations Packet (PDF)

Fourth Quarter 2021
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 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 and Excess 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 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) sales-type lease payments, net of income; (iii) net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment 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. 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) cash contributions from MPC; (iii) cash contributions from noncontrolling interests and (iv) cash 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, 2022

1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

MPLX LP

																							Preliminary(1)		Preliminary(1)
			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)		2019			2020		2020		2020		2020		2020			2021		2021		2021		2021		2021
	Revenues and other income:
1	Operating revenue	$	3,832		$	916	$	803	$	912	$	955	$	3,586		$	1,047	$	1,057	$	1,218	$	1,302	$	4,624
2	Operating revenue - related parties		4,800			1,233		1,162		1,225		1,192		4,812			1,193		1,242		1,224		1,292		4,951
3	Income (loss) from equity method investments(2)		290			(1,184)		89		83		76		(936)			70		66		92		93		321
4	Other income		119			27		27		27		26		107			29		30		25		47		131
5	Total revenues and other income		9,041			992		2,081		2,247		2,249		7,569			2,339		2,395		2,559		2,734		10,027
	Costs and expenses:
6	Operating expenses		2,316			538		435		508		519		2,000			581		663		752		909		2,905
7	Operating expenses - related parties		1,396			322		321		329		304		1,276			337		320		331		340		1,328
8	Depreciation and amortization		1,254			325		321		346		385		1,377			329		318		324		316		1,287
9	Impairment expense		1,197			2,165		-		-		-		2,165			-		42		-		-		42
10	General and administrative expenses		388			97		96		96		89		378			86		87		94		86		353
11	Restructuring expenses		-			-		-		36		1		37			-		-		-		-		-
12	Other taxes		113			31		30		33		31		125			32		34		27		27		120
13	Total costs and expenses		6,664			3,478		1,203		1,348		1,329		7,358			1,365		1,464		1,528		1,678		6,035
14	Income (loss) from operations		2,377			(2,486)		878		899		920		211			974		931		1,031		1,056		3,992
15	Interest and other financial costs		915			230		223		224		219		896			225		216		220		218		879
16	Income (loss) before income taxes		1,462			(2,716)		655		675		701		(685)			749		715		811		838		3,113
17	Provision for income taxes		-			-		-		1		1		2			1		-		-		-		1
18	Net income (loss)		1,462			(2,716)		655		674		700		(687)			748		715		811		838		3,112
19	Less: Net income attributable to noncontrolling interests		28			8		7		9		9		33			9		9		9		8		35
20	Less: Net income attributable to Predecessor		401			-		-		-		-		-			-		-		-		-		-
21	Net income (loss) attributable to MPLX LP		1,033			(2,724)		648		665		691		(720)			739		706		802		830		3,077
22	Less: Series A preferred unit distributions		81			20		21		20		20		81			20		21		38		21		100
23	Less: Series B preferred unit distributions		17			11		10		10		10		41			11		10		10		10		41
24	Limited partners' interest in net income (loss) attributable to MPLX LP	$	935		$	(2,755)	$	617	$	635	$	661	$	(842)		$	708	$	675	$	754	$	799	$	2,936
	Per Unit Data
	Net income (loss) attributable to MPLX LP per limited partner unit:
25	Common - basic	$	1.00		$	(2.60)	$	0.58	$	0.61	$	0.63	$	(0.80)		$	0.68	$	0.66	$	0.74	$	0.78	$	2.86
26	Common - diluted	$	1.00		$	(2.60)	$	0.58	$	0.61	$	0.63	$	(0.80)		$	0.68	$	0.66	$	0.74	$	0.78	$	2.86
	Weighted average limited partner units outstanding:
27	Common - basic		906			1,058		1,059		1,046		1,040		1,051			1,037		1,029		1,024		1,019		1,027
28	Common - diluted		907			1,058		1,059		1,047		1,040		1,051			1,037		1,029		1,025		1,019		1,027

1. Preliminary statement of income data.
2. Income/(loss) from equity method investments include impairment charges of $6 million for the second quarter of 2021 and $1,264 million for the first quarter of 2020.

2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

MPLX LP

																							Preliminary(1)		Preliminary(1)
			Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	(In millions)		2019			2020		2020		2020		2020		2020			2021		2021		2021		2021		2021
1	Net income (loss)	$	1,462		$	(2,716)	$	655	$	674	$	700	$	(687)		$	748	$	715	$	811	$	838	$	3,112
	Other comprehensive (loss) income, net of tax:
2	Remeasurement of pension and other postretirement benefits related to equity		1			(1)		-		-		1		-			(2)		-		-
method investments, net of tax
3	Comprehensive income (loss)		1,463			(2,717)		655		674		701		(687)			746		715		811
	Less comprehensive income attributable to:
4	Noncontrolling interests		28			8		7		9		9		33			9		9		9		8		35
5	Income attributable to Predecessor		401			-		-		-		-		-			-		-		-		-		-
6	Comprehensive income (loss) attributable to MPLX LP	$	1,034		$	(2,725)	$	648	$	665	$	692	$	(720)		$	737	$	706	$	802

(1) Preliminary select comprehensive income data.

3

CONSOLIDATED BALANCE SHEETS

MPLX LP

													Preliminary(1)
	(In millions, except ratio data)		December 31, 2019		December 31, 2020		March 31, 2021		June 30, 2021		September 30, 2021		December 31, 2021
	Assets
1	Current assets:
Cash and cash equivalents	$	15	$	15	$	24	$	8	$	39	$	13
2	Receivables, net		593		452		523		538		617
3	Current assets - related parties		656		677		650		614		645
4	Inventories		110		118		128		126		141
5	Other current assets(2)		110		253		49		46		74
6	Total current assets		1,484		1,515		1,374		1,332		1,516
7	Equity method investments		5,275		4,036		4,040		4,033		4,001
8	Property, plant and equipment, net		22,145		21,218		20,996		20,352		20,158
9	Intangibles, net		1,270		959		927		896		864
10	Goodwill		9,536		7,657		7,657		7,657		7,657
11	Right of use assets, net		365		309		296		297		282
12	Noncurrent assets - related parties		303		672		676		1,144		1,160
13	Other noncurrent assets		52		48		64		62		61
14	Total assets		40,430		36,414		36,030		35,773		35,699		35,507
	Liabilities
15	Current liabilities:
Accounts payable		242		152		162		158		177
16	Accrued liabilities		187		194		233		258		332
17	Current liabilities - related parties		1,008		356		338		812		1,706
18	Accrued property, plant and equipment		283		84		58		54		66
19	Accrued interest payable		210		222		189		203		188
20	Operating lease liabilities		66		63		63		63		61
21	Other current liabilities(3)(4)		136		1,015		153		179		191
22	Total current liabilities		2,132		2,086		1,196		1,727		2,721
23	Long-term deferred revenue		217		314		332		349		366
24	Long-term liabilities - related parties		290		283		279		306		297
25	Long-term debt		19,704		19,375		20,052		19,234		18,253
26	Deferred income taxes		12		12		11		11		11
27	Long-term operating lease liabilities		302		244		230		232		220
28	Deferred credits and other liabilities		192		115		112		151		155
29	Total liabilities		22,849		22,429		22,212		22,010		22,023
30	Series A preferred units		968		968		968		968		986		965
31	Equity
Common unitholders - public		10,800		9,384		9,226		9,061		8,919
32	Common unitholder - MPC		4,968		2,792		2,796		2,897		2,944
33	Series B preferred units		611		611		601		611		601
34	Accumulated other comprehensive loss		(15)		(15)		(17)		(17)		(17)
35	Total MPLX LP partners' capital		16,364		12,772		12,606		12,552		12,447
36	Noncontrolling interests		249		245		244		243		243
37	Total equity		16,613		13,017		12,850		12,795		12,690		12,052
38	Total liabilities, preferred units and equity	$	40,430	$	36,414	$	36,030	$	35,773	$	35,699
39
Consolidated total debt to LTM pro forma adjusted EBITDA(5)		4.1x		3.9x		3.9x		3.7x		3.7x		3.7x

1. Preliminary select balance sheet data.
2. The December 31, 2020 Other current assets includes $188 million of assets held for sale and the September 30, 2021 Other current assets includes $20 million of assets held for sale.
3. The December 31, 2020 Other current liabilities includes $101 million of liabilities held for sale.
4. Includes long-term debt due within one year.
5. Calculated using face value total debt and pro forma adjusted EBITDA, which is pro forma for acquisitions.

4

CONSOLIDATED STATEMENTS OF CASH FLOWS (YTD)

MPLX LP

																					Preliminary(1)
			Dec. 31			Mar. 31		Jun. 30		Sep. 30		Dec. 31			Mar. 31		Jun. 30		Sep. 30		Dec. 31
	(In millions)		2019			2020		2020		2020		2020			2021		2021		2021		2021
	(Decrease) increase in cash, cash equivalents and restricted cash
	Operating activities:
1	Net income (loss)	$	1,462		$	(2,716)	$	(2,061)	$	(1,387)	$	(687)		$	748	$	1,463	$	2,274	$	3,112
	Adjustments to reconcile net income to net cash provided by operating activities:
2	Amortization of deferred financing costs		42			14		29		44		61			17		35		53		70
3	Depreciation and amortization		1,254			325		646		992		1,377			329		647		971		1,287
4	Impairment expense		1,197			2,165		2,165		2,165		2,165			-		42		42		42
5	Deferred income taxes		(2)			-		(1)		(1)		(1)			-		(1)		(1)
6	Asset retirement expenditures		(1)			-		-		-		-			-		-		-		-
7	(Gain) loss on disposal of assets		(6)			-		1		1		4			-		1		4		(13)
8	(Income) loss from equity method investments(2)		(290)			1,184		1,095		1,012		936			(70)		(136)		(228)		(321)
9	Distributions from unconsolidated affiliates		525			119		226		350		459			119		239		361
	Changes in:
10	Current receivables		17			71		31		69		62			(67)		(83)		(162)
11	Inventories		(9)			3		(7)		(8)		(12)			(11)		(8)		(22)
12	Fair value of derivatives		2			(15)		(9)		1		3			3		39		41
13	Current accounts payable and accrued liabilities		(59)			(142)		(102)		(27)		36			26		77		166
14	Current assets/current liabilities - related parties		(163)			(52)		27		36		8			(8)		101		94
15	Right of use assets/operating lease liabilities		4			(4)		(1)		(2)		(5)			(1)		1		2
16	Deferred revenue		100			27		49		85		112			24		43		65
17	All other, net		9			30		26		6		3			15		29		11
18	Net cash provided by operating activities		4,082			1,009		2,114		3,336		4,521			1,124		2,489		3,671		4,911
	Investing activities:
19	Additions to property, plant and equipment		(2,408)			(379)		(708)		(982)		(1,183)			(126)		(235)		(374)		(529)
20	Acquisitions, net of cash acquired		6			-		-		-		-			-		-		-
21	Disposal of assets		30			39		43		54		56			70		74		77
22	Investments in unconsolidated affiliates		(713)			(91)		(222)		(244)		(266)			(35)		(84)		(116)		(151)
23	Distributions from unconsolidated affiliates - return of capital		18			69		110		112		123			-		-		36		36
24	All other, net		4			-		-		-		8			1		-		-
25	Net cash used in investing activities		(3,063)			(362)		(777)		(1,060)		(1,262)			(90)		(245)		(377)		(518)
	Financing activities:
26	Long-term debt - borrowings		9,174			1,325		2,500		5,990		6,810			1,910		2,800		3,000
27	Long-term debt - repayments		(7,924)			(581)		(1,682)		(5,372)		(6,414)			(2,020)		(3,746)		(4,946)
28	Related party debt - borrowings		9,313			1,667		2,708		4,870		6,264			2,241		4,435		6,571
29	Related party debt - repayments		(8,719)			(2,261)		(3,302)		(5,464)		(6,858)			(2,241)		(3,942)		(5,201)
30	Debt issuance costs		(20)			-		-		(23)		(25)			-		-		-
31	Unit repurchases		-			-		-		-		(33)			(155)		(310)		(465)		(630)
32	Distributions to Series A preferred unitholders		(81)			(20)		(41)		(61)		(81)			(20)		(41)		(61)
33	Distributions to Series B preferred unitholders		(21)			(21)		(21)		(41)		(41)			(21)		(21)		(41)
34	Distributions to unitholders and general partner		(2,435)			(717)		(1,445)		(2,162)		(2,884)			(713)		(1,421)		(2,126)
35	Distributions to noncontrolling interests		(30)			(9)		(17)		(26)		(37)			(10)		(20)		(29)		(39)
36	Distributions to common and Series B preferred unitholders from Predecessor		(502)			-		-		-		-			-		-		-
37	Contributions from MPC		74			14		20		34		50			7		17		31		45
38	Contributions from noncontrolling interests		95			-		-		-		-			-		-		-		-
39	All other, net		(13)			(2)		(5)		(8)		(10)			(3)		(2)		(3)
40	Net cash used in financing activities		(1,089)			(605)		(1,285)		(2,263)		(3,259)			(1,025)		(2,251)		(3,270)		(4,395)
41	Net (decrease) increase in cash and cash equivalents and restricted cash		(70)			42		52		13		-			9		(7)		24
42	Cash and cash equivalents and restricted cash at beginning of period		85			15		15		15		15			15		15		15
43	Cash and cash equivalents and restricted cash at end of period	$	15		$	57	$	67	$	28	$	15		$	24	$	8	$	39

1. Preliminary select cash flow data.
2. (Income)/loss from equity method investments include impairment charges of $6 million for the second quarter of 2021 and $1,264 million for the first quarter of 2020.

5