Mplx Lp · NYSE:MPLX
Mplx Lp — Q2 2019 Earnings Presentation
20 slides from Mplx Lp's earnings presentation, Aug 1, 2019
Slide 1: Second-Quarter 2019 Earnings Conference Call
Second-Quarter 2019 Earnings Conference Call August 1, 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, MPLX’s acquisition of Andeavor Logistics LP and include expectations, estimates and
Slide 3: Second-Quarter Highlights
Second-Quarter Highlights Reported adjusted EBITDA of $920 million which increased 6% year-over-year, and distributable cash flow of $741 million which provided 1.36x adjusted distribution coverage(a) and resulted in 3.9x leverage Closed acquisition of Andeavor Logistics on July 30 Advanced ke
Slide 4: Three Strategic Initiatives
Three Strategic Initiatives 1. Streamline capex focusing on most attractive returns 2. Work with MPC on portfolio optimization, which could include asset divestitures 3. Proceeds from divestitures would be used for general purposes, such as investments in high-return projects as well as debt reducti
Slide 5: Capturing Strategic Opportunities
Capturing Strategic Opportunities Creating an integrated Permian footprint to the Gulf Coast Gas Processing NGLs NGLs Fractionation 3 Long-Haul Gathering 1 Gas Pipelines Gas Export MPC Galveston 4 1 Oil Storage Oil 2 Oil Bay Refinery Key L&S projects: Delaware & Midland Basins TEXAS – Signed defin
Slide 6: Logistics & Storage Segment
Logistics & Storage Segment Pipeline throughputs averaged 3.5 MMBPD – Increase of ~3% year-over-year ® Headquarters MPLX Pipelines(a) ® Terminalling throughputs averaged MPLX Pipelines under development(b) 1.5 MMBPD MPLX Refining Logistics Assets MPLX Terminals – Increase of ~2% year-over-year O
Slide 7: Gathering & Processing Segment
Gathering & Processing Segment 2Q19 Processed Volumes(a) 2Q19 volumes (% increase vs. 2Q18): Capacity at Average Utilization of Gathering: 4.9 Bcf/d 15% Area End of Quarter Volume Available (MMcf/d) (MMcf/d) Capacity (%)(b) Processing: 7.8 Bcf/d 15% Marcellus 5,720 5,202 91% Fractionation: 495 MBP
Slide 8: 2Q 2019 Financial Highlights
2Q 2019 Financial Highlights Adjusted EBITDA Distributable Cash Flow 2,000 2018 2019 1,850 2,000 2018 2019 1,627 1,498 1,500 1,500 1,314 $MM $MM 1,000 867 920 1,000 695 741 500 500 0 0 2Q Year-to-Date 2Q Year-to-Date Three Months Six Months Segment Adjusted EBITDA ($MM) Ended June 30 Ended June 30 2
Slide 9: 2Q 2019 vs. 2Q 2018 Adjusted EBITDA
2Q 2019 vs. 2Q 2018 Adjusted EBITDA 1,000 43 10 920 867 800 G&P G&P 351 341 600 $MM 400 L&S L&S 569 5262Q 2018 200 vs. 2Q 2017 0 Variance 2Q 2018 Adjusted EBITDA Attributable to Logistics & Storage Gathering & Processing 2Q 2019 Adjusted EBITDA Attributable to MPLX MPLX Analysis 9
Slide 10: Financial and Balance Sheet Highlights
Financial and Balance Sheet Highlights As of ($MM except ratio data) 6/30/19 Cash and cash equivalents 7 Total assets 23,746 Total debt(a) 14,080 Redeemable preferred units 1,005 Total equity 6,869 Second quarter 2019 adjusted distribution coverage(b) 1.36x Leverage(c) 3.9x Remaining capacity availa
Slide 11: Appendix
MPLy Appendix 11
Slide 12: Gathering & Processing Segment
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 13: Organic Growth Capital Projects
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 W2W Pipeline(a) 1
Slide 14: Organic Growth Capital Projects
Organic Growth Capital Projects Gathering & Processing Segment Est. Completion Est. Completion Gathering Processing and Fractionation Shale Resource Capacity Dates Date Through 2020 Marcellus/Utica Rich- and Ongoing Omega 1 Expansion Cana-Woodford 45 MMcf/d In Service Dry-Gas Gathering(a) Sherwood 1
Slide 15: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Income ($MM) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 Net income 488 456 997 879 Provision (benefit) for income taxes 1 1 (1) 5 Amortization of deferred financing costs 13 15 26 31 Net interest and other financial costs 157 136 315 250 Incom
Slide 16: Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities
Reconciliation of Adjusted EBITDA and Distributable Cash from Net Cash Provided by Operating Activities ($MM) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 Net cash provided by operating activities 834 840 1,452 1,290 Changes in working capital items (79) (145) 62 33 All other, net - 17 4 14 Non-cash equity-bas
Slide 17: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income ($MM) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 L&S segment adjusted EBITDA attributable to MPLX LP 569 526 1,128 963 G&P segment adjusted EBITDA attributable to MPLX LP 351 341 722 664 Adjusted EBITDA attributable to MPLX LP 920 867 1,850 1,627 Deprec
Slide 18: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income Drop Impact YTD 2019 ($MM) without Drop(a) YTD 2019 Drop L&S segment adjusted EBITDA attributable to MPLX LP 1,059 69 1,128 G&P segment adjusted EBITDA attributable to MPLX LP 722 - 722 Adjusted EBITDA attributable to MPLX LP 1,781 69 1,850 Dep
Slide 19: Reconciliation of LTM Net Income to LTM Pro Forma adjusted EBITDA
Reconciliation of LTM Net Income (Loss) to LTM Pro Forma adjusted EBITDA ($MM) 2Q 2019 2Q 2018 LTM Net income 1,952 1,337 LTM Net income to adjusted EBITDA adjustments 1,746 1,989 LTM Adjusted EBITDA attributable to MPLX LP 3,698 3,326 LTM Pro forma adjustments for acquisitions 2 19 LTM Pro forma ad
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