Mplx Lp · NYSE:MPLX
Mplx Lp — Q4 2018 Earnings Presentation
25 slides from Mplx Lp's earnings presentation, Feb 7, 2019
Slide 1: Fourth-Quarter 2018 Earnings Conference Call
Fourth-Quarter 2018 Earnings Conference Call February 7, 2019
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws regarding MPLX LP (MPLX). These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations, str
Slide 3: Full-Year Highlights
Full-Year Highlights Increased adjusted EBITDA by $1.5 billion in 2018; $1.1 billion from dropdowns and $0.4 billion from organic growth – Advanced integrated downstream Permian strategy with announced long-haul pipelines – Expanded assets to support export strategy including acquisition of the Mt
Slide 4: Logistics & Storage Segment
Logistics & Storage Segment 4Q18 adjusted EBITDA of $547 million Full-year adjusted EBITDA of $2.1 billion, which Headquarters increased 23% year-over-year after adjusting for MPLX Pipelines: Owned & Operated the impact of dropdowns MPLX Interest Pipelines: Operated by Others MPLX Operated Pipel
Slide 5: Capline Reversal – Swordfish - LOOP
Capline Reversal – Swordfish - LOOP Competitive full-service solution Capline – 40” crude oil pipeline from Patoka, IL, to St. James, LA – Reversed service planned for September 2020 – Currently in open season Swordfish Pipeline – Proposed crude oil pipeline from St. James to Clovelly in Louisia
Slide 6: Gathering & Processing Segment
Gathering & Processing Segment 4Q18 adjusted EBITDA of $364 million, which increased 8% year-over-year Full-year adjusted EBITDA of $1.4 billion, which increased 15% over prior year Delivered record volumes in 2018 (% increase vs. full-year 2017) – Gathering: 4.5 Bcf/d 26% – Processing: 7.0 Bc
Slide 7: Gathering & Processing Segment Operating Highlights
Gathering & Processing Segment Operating Highlights 4Q18 Processed Volumes(a) 4Q18 volumes (% increase vs. 4Q17): Capacity at Average Utilization of Area End of Quarter Volume Available Gathering: 4.9 Bcf/d 17% (MMcf/d) (MMcf/d) Capacity (%)(b) Processing: 7.4 Bcf/d 9% Marcellus 5,720 4,773 89% Ut
Slide 8: 2019 Capital Outlook
2019 Capital Outlook Forecast organic growth capital of ~$2.2 B* L&S Segment Logistics Permian long-haul pipelines & Storage Mt. Airy Terminal expansion Swordfish Pipeline Marine fleet expansion G&P Segment Expect to commission six additional Gathering & plants by end of 2019 Processing ~0
Slide 9: 4Q 2018 Financial Highlights
4Q 2018 Financial Highlights Adjusted EBITDA Distributable Cash Flow 4000 2017 2018 3000 2017 2018 2,781 3500 3,475 2500 3000 721 Capital Investments* 2000 2500 1,628 Declared 2,004 $MM $MM 2000 1500 Distributions 1500 1000 911 701 2,060 1000 569 500 445 500 0 0 4Q 2018 4Q 2018 Use of DCF Three Mont
Slide 10: 4Q 2018 vs. 4Q 2017 Adjusted EBITDA
4Q 2018 vs. 4Q 2017 Adjusted EBITDA 1,000 911 54 26 262 800 G&P 364 600 569 $MM G&P 400 338 2Q 2018 L&S 547 L&S vs. 2Q 200 231 2017 0 Variance 4Q 2017 Adjusted EBITDA Dropdowns Logistics & Storage Gathering & Processing 4Q 2018 Adjusted EBITDA Attributable to MPLX Attributable to MPLX Analysis 10
Slide 11: 2018 vs. 2017 Adjusted EBITDA
2018 vs. 2017 Adjusted EBITDA 4,000 189 3,475 3,500 178 1,104 3,000 G&P 1,418 2,500 2,004 $MM 2,000 1,500 G&P 1,229 1,000 2Q 2018 L&S 2,057 vs. 2Q 500 L&S 775 2017 0 Variance 2017 Adjusted EBITDA Dropdowns Logistics & Storage Gathering & Processing 2018 Adjusted EBITDA Analysis Attributable to MPLX
Slide 12: Financial and Balance Sheet Highlights
Financial and Balance Sheet Highlights As of ($MM except ratio data) 12/31/18 Cash and cash equivalents 68 Total assets 22,779 Total debt(a) 13,393 Redeemable preferred units 1,004 Total equity 6,864 Full-year distribution coverage 1.36x Leverage(b) 3.9x Remaining capacity available under $2.25 B re
Slide 13: Reiterated Outlook for 2019 and 2020
Reiterated Outlook for 2019 and 2020 2019 Distribution Growth: expect $0.01 per unit increase each quarter Forecast, excluding acquisitions and dropdowns: ($ billion) 2019E 2020E Net Income $2.2 $2.5 Adjusted EBITDA(a) attributable to MPLX LP $3.9 $4.4 Net cash provided by operating activities $
Slide 14: Appendix
MPL ENERGYLOGISTICS: Appendix
Slide 15: Gathering & Processing Segment Processed Volumes
Gathering & Processing Segment Processed Volumes Marcellus/Utica Processed Volumes(a) Southwest Processed Volumes(a) Capacity at End Average Utilization of Capacity at End Average Utilization of Area of Quarter Volume Available Area of Quarter Volume Available (MMcf/d) (MMcf/d) Capacity (%)(b) (MMcf
Slide 16: Organic Growth Capital Projects – Logistics & Storage
Organic Growth Capital Projects Logistics & Storage Segment Est. Completion Projects Description Date Marine Fleet Expansion Displaces MPC’s third-party barges and supports increased demand 2019 Mt. Airy Terminal Expansion Constructing 2nd 120 MBPD dock and incremental storage 2020 Provide transport
Slide 17: Organic Growth Capital Projects – Gathering & Processing
Organic Growth Capital Projects Gathering & Processing Segment Est. Completion Est. Completion Processing and Fractionation Shale Resource Capacity Gathering Date Date Omega 1 Expansion Cana-Woodford 45 MMcf/d 2Q19 Marcellus/Utica Rich- and Ongoing Dry-Gas Gathering(a) Sherwood 12 Processing Plant(b
Slide 18: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 4Q 2018 4Q 2017 2018 2017 Net income 439 241 1,834 836 (a)The Partnership makes a distinction Provision for income taxes - (2) 8 1 between realized and unrealized gains Amortization of deferred financing costs 14 15 59 53
Slide 19: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 4Q 2018 4Q 2017 2018 2017 Net cash provided by operating activities 799 569 2,826 1,907 (a)The Partnership makes a distinction Changes in working capital items (37) (83) 41 (147) between rea
Slide 20: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income ($MM) 4Q 2018 4Q 2017 2018 2017 (a)The Partnership makes a distinction L&S segment adjusted EBITDA attributable to MPLX LP 547 231 2,057 775 between realized and unrealized gains and losses on derivatives. During the G&P segment adjusted EBITDA
Slide 21: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income Drop Impact 4Q 2018 2018 ($MM) without Drops(a) 4Q 2018 without Drops(a) 2018 (a)The drops are the 3Q 2017 Drop which included Joint Interest in Drops Drops Pipeline & Storage Assets and the 1Q 2018 drop which included the L&S segment adjusted
Slide 22: Reconciliation of Net Income to LTM Pro Forma adjusted EBITDA
Reconciliation of Net Income (Loss) to LTM Pro Forma adjusted EBITDA ($MM) 2018 2017 Net income 1,834 836 Net income to adjusted EBITDA adjustments 1,641 1,168 Adjusted EBITDA attributable to MPLX LP 3,475 2,004 Pro forma adjustments for acquisitions 92 146 LTM Pro forma adjusted EBITDA 3,567 2,150
Slide 23: MPLX 2019-2020 Outlook – Reconciliation
MPLX 2019-2020 Outlook – Reconciliation Adjusted EBITDA and Distributable Cash Flow from Net Income ($ billion) 2019E 2020E Net income 2.2 2.5 Depreciation and amortization 0.9 1.0 Net interest and other financial costs 0.7 0.7 Adjustment for equity investment earnings & distributions 0.2 0.2 Other
Slide 24: MPLX 2019-2020 Outlook – Reconciliation
MPLX 2019-2020 Outlook – Reconciliation Adjusted EBITDA and Distributable Cash Flow from Net Cash Provided by Operating Activities ($ billion) 2019E 2020E Net cash provided by operating activities 3.2 3.8 Changes in working capital items 0.0 (0.1) Net interest and other financial costs 0.7 0.7 Other
Slide 25: Nirly~
— Nirly~ ENERGYLOGISTICS