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MPLX Reports Good Q1-18

|Includes: MPLX LP (MPLX)

Operational Highlights

  • Reported total gathered volumes of 4.2 billion cubic feet per day in the first quarter of 2018, a 31 percent increase compared with the first quarter of 2017.
  • Reported total processed volumes of 6.6 billion cubic feet per day in the first quarter of 2018, an 8 percent increase compared with the first quarter of 2017.
  • Reported total fractionated volumes of 423,000 barrels per day in the first quarter of 2018, a 15 percent increase from the first quarter of 2017.
  • The new Houston, Pennsylvania, 200-million-cubic-feet-per-day gas processing plant in the Marcellus shale commenced operations.
  • The Argo 200-million-cubic-feet-per-day gas processing plant in the Permian Basin commenced operations.
  • The Sherwood 9 gas processing plant in the Marcellus shale began ramping up operations.
  • The Robinson, Illinois, butane cavern became operational.

The partnership ended the quarter with strong distribution coverage of 1.29 times and affirmed its 2018 distribution growth guidance of 10 percent. Debt-to-pro forma adjusted EBITDA was 3.8 times for the quarter.

Note - This is the first quarter when the IDRs are gone.

MPLX LP metrics

For 2017, MPLX projects Adjusted EBITDA of $1.5 billion to $1.65 billion; DCF of $1.15 billion to $1.3 billion and Distribution growth rate of 12%. 2018 growth at 10%.

Q1-2018 Q4-2017 Q3-2017 Q2-2017 Q1-2017 Q4-2016 Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015 Q2-2015 Q1-2015 Q4-2014 Q3-2014 Q2-2014 Q1-2014 Q4-2013 Q3-2013 Q2-2013 Q1-2013
Revenues 1,420 1,085 980 916 886 714 703 564 609 269 148.6 147.6 137.5 139.1 138.0 133.9 137.3 125.6 123.8 122.2 114.7
Costs 863 750 669 636 621 517 496 488 582 219 101.5 90.0 86.3 100.6 93.8 89.6 81.0 89.1 84.0 87.0 79.2
EBITDA 760 569 538 474 423 391 375 351 302 286 64.6 70.7 64.2 42.4 40.2 39.9 43.8 28.9 30.5 26.7 25.1
Total DCF dollars 603 445 442 387 354 318 285.0 285.0 236.0 227.0 52.5 61.0 57.4 32.1 32.9 36.2 37.3 28.3 31.0 27.2 28.0
GP's DCF dollars 0 96 86 74 60 55.0 49.0 46.0 40.0 38.0 8.6 6.8 4.0 2.2 1.5 1.2 1.0 0.5 0.5 0.3 0.4
Preferred Distributions 16.0 16.0 16.0 17.0 16.0 16.0 16.0 9.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net DCF dollars 587 333 320 296 278 247.0 220.0 230.0 196.0 189.0 43.9 54.2 53.4 29.9 31.4 35.0 36.3 27.8 30.5 26.9 27.6
Units 661.000 407.000 395.000 377.000 367.000 356.000 346.000 331.000 300.000 146.00* 80.400 80.400 80.400 75.700 74.100 74.100 74.000 74.400 74.000 74.000 74.000
DCF/unit $0.8880 $0.8182 $0.8101 $0.7851 $0.7575 $0.6938 $0.6358 $0.6949 $0.6533 $1.2945 $0.5460 $0.6742 $0.6642 $0.3950 $0.4237 $0.4723 $0.4905 $0.3736 $0.4122 $0.3635 $0.3730
Upcoming Distrib. $0.6175 $0.6075 $0.5875 $0.5625 $0.5400 $0.5200 $0.5150 $0.5100 $0.5050 $0.5000 $0.4700 $0.4400 $0.4100 $0.3825 $0.3575 $0.3425 $0.3275 $0.3125 $0.2975 $0.2850 $0.2725
Calculated Coverage 1.44x 1.35x 1.38x 1.40x 1.40x 1.33x 1.23x 1.36x 1.29x * 1.16x 1.53x 1.62x 1.03x 1.19x 1.38x 1.50x 1.19x 1.38x 1.27x 1.37x
Reported Coverage 1.29x 1.24x 1.33x 1.26x 1.29x 1.25x 1.22x 1.24x 1.18x 1.20x 1.13x 1.47x 1.56x 0.97x 1.18x 1.37x 1.49x 1.19x 1.38x 1.25x 1.36x
Annualized EBITDA 3,040 2,276 2,152 1,896 1,692 1,564 1,500 1,404 1,208 1,144 258 283 345






Long term debt 11,862 7,332 7,051 6,667 6,655 4,423 4,412 4,401 4,715 5,225 753 753 757 644





Debt/EBITDA 3.90x 3.22x 3.28x 3.52x 3.93x 2.83x 2.94x 3.13x 3.90x 4.57x 2.92x 2.66x 2.14x






Interest Expense 130 96 93 74 66 52 51 52 55 20 5.2 6.2 5.3 2.0





Interest Coverage 5.85x 5.93x 5.78x 6.41x 6.41x 7.52x 7.35x 6.75x 5.49x 14.30x 12.42x 11.40x 12.11x






Fixed Charge Coverage 5.21x 5.08x 5.12x 5.21x 5.16x 5.75x 5.60x 5.75x 5.49x 14.30x 12.42x 11.40x 12.11x






Disclosure: I am/we are long MPLX.