Mplx Lp · NYSE:MPLX
Mplx Lp — Q3 2024 Earnings Presentation
19 slides from Mplx Lp's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call November 5, 2024 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measurements
Forward‐Looking Statements and Non-GAAP Financial Measurements This presentation contains forward-looking statements regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX’s expectations, estimates and projections concerning its business and operations, fi
Slide 3: Business Update
Business Update Distributable ▪ 7% Adj. EBITDA growth year over year Adj. EBITDA Cash Flow $1.7B $1.4B ▪ Executing growth strategy in the Adj. Free Return of Northeast, increasing processing and Cash Flow Capital fractionation capacity $876M $949M ▪ Increased quarterly distribution 12.5% to Leverage
Slide 4: Steadily Growing Business: Growth Projects & Projected In-Service Dates
Steadily Growing Business L&S ⚫ W2W Pipeline Lateral Expansion (16% owner(b)) 2023 ⚫ Whistler Pipeline Expansion (2.0 → 2.5 Bcf/d, 30% owner) ⚫ Marine Fleet Expansion (100% owner) G&P ⚫ Projected In-Service Dates Marcellus Gathering System Expansion (100% owner) L&S Growth Projects & ⚫ ADCC Pipeline
Slide 5: Harmon Creek III
Harmon Creek III ▪ Executing growth strategy in the Northeast with additional processing plant ▪ Delivering just-in-time capacity aligned with producer drilling plans ▪ Processing +300 MMcf/d → 8.1 Bcf/d(a) ▪ Fractionation +40 Mbpd → 800 Mbpd(a) ▪ Investment and return estimates: ▪ ~$600MM Capex; ~2
Slide 6: Logistics & Storage Segment
Logistics & Storage Segment ▪ Higher rates and throughputs including growth from equity affiliates, partially offset by higher operating expenses ▪ 3Q24 overall volumes and % change: vs. 3Q23 Crude Pipelines: 3.9 MMBPD 0% Product Pipelines: 2.1 MMBPD 4% Terminals: 3.3 MMBPD 1% 6
Slide 7: Gathering & Processing Segment
Gathering & Processing Segment ▪ Increased volumes, including contributions from recently acquired assets ▪ 3Q24 overall volumes and % change: vs. 3Q23 Gathering: 6.7 Bcf/d 8% Processing: 9.8 Bcf/d 9% Fractionation: 635 MBPD 4% ▪ 3Q24 Marcellus volumes and % change: vs. 3Q23 Gathering: 1.5 Bcf/d 11%
Slide 8: 3Q 2024 Financial Highlights
3Q 2024 Financial Highlights 2023 2024 2023 2024 +7% YoY +5% YoY Three Months Ended September 30, 2023 2024 Distributions Declared ($/unit) $0.8500 $0.9565 Distribution Coverage(a) 1.6x 1.5x Adjusted Free Cash Flow(b) ($MM) $1,004 $876 Total Capital Returned to Unitholders(c) ($MM) $799 $949 See app
Slide 9: Sustainability Highlights
Sustainability Highlights (a) Methane emissions were calculated based on the EPA’s Mandatory Greenhouse Gas Reporting Program in 40 CFR Part 98. See our most recent Perspectives on Climate-Related Scenarios report on our website for additional information on how we calculate GHG intensity and CO2e r
Slide 10: History of Strong Financial Performance
History of Strong Financial Performance Steady cash flow growth supports reinvestment and capital return to unitholders See appendix for additional information and reconciliations for Adj. EBITDA and Distributable Cash Flow. (a) Attributable to MPLX LP (b) Attributable to LP Unitholders 10 (c) Base
Slide 11: MPLX Value Proposition
MPLX Value Proposition Durable Cash Flow Growth • Executing mid-single digit growth strategy Compelling Growth Opportunities • Expanding Permian natural gas and NGL value chains • Building on significant Marcellus footprint • Driving higher utilization in the Utica • Strategic relationship and integ
Slide 12: Appendix
Appendix 12
Slide 13: Strong Balance Sheet
Strong Balance Sheet Consolidated Total Debt to LTM Adj. EBITDA $ Millions YE22 YE23 3Q24 (unless otherwise noted) Consolidated Total Debt(a) 20,108 20,706 22,356 LTM Adj. EBITDA 5,775 6,269 6,625 Consolidated Total Debt to LTM 3.5x 3.3x 3.4x Adj. EBITDA See appendix for additional information and r
Slide 14: Gathering & Processing Segment: Region Processed and Fractionated Volumes
Gathering & Processing Segment Region Processed and Fractionated Volumes 3Q24 Processed Volumes(a) 3Q24 Fractionated Volumes(a) Capacity at End Average Utilization of Capacity at End Average Utilization of Area Volume Available of Quarter Area of Quarter Volume Available (MBPD) Capacity (%) (MMcf/d)
Slide 15: Reconciliation of Adjusted EBITDA and Distributable Cash Flow from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash Flow from Net Income ($MM) 3Q 2024 3Q 2023 FY 2023 FY 2022 FY 2021 FY 2020 Net income/(loss) 1,047 928 3,966 3,978 3,112 (687) Provision for income taxes 2 1 11 8 1 2 Net interest and other financial costs 226 225 923 925 879 896 Income from o
Slide 16: Reconciliation of Adjusted EBITDA and DCF from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash Flow from Net Cash Provided by Operating Activities ($MM) 3Q 2024 3Q 2023 FY 2023 FY 2022 FY 2021 FY 2020 Net cash provided by operating activities 1,415 1,244 5,397 5,019 4,911 4,521 Changes in working capital items 40 47 (169) (128) (169) (2
Slide 17: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income ($MM) 3Q 2024 3Q 2023 L&S segment adjusted EBITDA attributable to MPLX LP 1,157 1,091 G&P segment adjusted EBITDA attributable to MPLX LP 557 505 Adjusted EBITDA attributable to MPLX LP 1,714 1,596 Depreciation and amortization (322) (301) Net
Slide 18: Reconciliation of Net Cash from Operating Activities to Adjusted Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow (FCF) and Adjusted Free Cash Flow After Distributions ($MM) 3Q 2024 3Q 2023 Net cash provided by operating activities (a) 1,415 1,244 Adjustments to reconcile net cash provided by operating activities to adjusted
Slide 19: Reconciliation of LTM Net Income (Loss) to LTM Adjusted EBITDA
Reconciliation of LTM Net Income (Loss) to LTM Adjusted EBITDA ($MM) 3Q 2024 YE 2023 YE 2022 YE 2021 YE 2020 LTM Net income (loss) 4,392 3,966 3,978 3,112 (687) Provision for income taxes 14 11 8 1 2 Net interest and other financial costs 914 923 925 879 896 LTM income from operations 5,320 4,900 4,