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    MPLX LP Reports Fourth-Quarter and Full-Year 2021 Financial Results

    02/02/2022
    Download the PDF version PDF Format (opens in new window) PDF 479 KB

    FINDLAY, Ohio, Feb. 2, 2022 /PRNewswire/ --

    • Reported fourth quarter net income attributable to MPLX of $830 million and full-year net income of $3.1 billion
    • Reported fourth quarter adjusted EBITDA attributable to MPLX of $1.4 billion and full-year adjusted EBITDA of $5.6 billion
    • Generated $4.9 billion in net cash provided by operating activities for the full-year 2021 and returned $4.2 billion in capital to unitholders
    • Announced 2022 MPLX capital spending outlook of $900 million

    MPLX LP (NYSE: MPLX) today reported fourth-quarter 2021 net income attributable to MPLX of $830 million, compared to $691 million for the fourth quarter of 2020. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1,445 million, compared with $1,355 million in the fourth quarter of 2020.

    The Logistics and Storage (L&S) segment income from operations was $750 million for the fourth quarter of 2021, compared with $662 million for the fourth quarter of 2020. Segment adjusted EBITDA for the fourth quarter of 2021 was $934 million, compared with $884 million for the fourth quarter of 2020.

    The Gathering and Processing (G&P) segment income from operations was $306 million for the fourth quarter of 2021, compared with $258 million for the fourth quarter of 2020. Segment adjusted EBITDA for the fourth quarter of 2021 was $511 million, compared with $471 million for the fourth quarter of 2020. 

    During the quarter, MPLX generated $1,240 million in net cash provided by operating activities, $1,207 million of distributable cash flow, and excess cash flow of $361 million. MPLX announced a fourth quarter 2021 distribution of $0.705 per common unit, resulting in coverage of 1.64x for the quarter.  Leverage was 3.7x.   MPLX generated $4,911 million in net cash provided by operating activities, $4,785 million of distributable cash flow, and excess cash flow of $1,429 million for the full year 2021.

    "In 2021, our focus on strict capital discipline and lowering the cost structure as well as solid operational performance contributed to strong cash generation," said Michael J. Hennigan, MPLX chairman, president, and chief executive officer. "This year MPLX returned approximately $4.2 billion of capital to unitholders through both distributions and unit repurchases."

    Financial Highlights



    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions, except per unit and ratio data)


    2021



    2020



    2021



    2020

    Net income (loss) attributable to MPLX LP(a)


    $         830



    $         691



    $      3,077



    $        (720)

    Adjusted EBITDA attributable to MPLX LP(b)


    1,445



    1,355



    5,560



    5,211

    Net cash provided by operating activities


    1,240



    1,185



    4,911



    4,521

    Distributable cash flow attributable to MPLX LP(b)


    1,207



    1,155



    4,785



    4,327

    Excess cash flow


    361



    246



    1,429



    266

    Distribution per common unit(c)


    $    0.7050



    $    0.6875



    $    3.3600



    $    2.7500

    Distribution coverage ratio(d)


    1.64x



    1.58x



    1.35x



    1.46x

    Adjusted distribution coverage ratio(e)


    1.64x



    1.58x



    1.64x



    1.46x

    Consolidated debt to adjusted EBITDA(f)


    3.7x



    3.9x



    3.7x



    3.9x

    Common unit repurchases


    $         165



    $           33



    $         630



    $           33















    (a)

    The twelve months ended December 31, 2021, includes impairments related to equity method investments of approximately $6 million and long-lived asset impairments of approximately $42 million, all within the G&P operating segment. The twelve months ended December 31, 2020, includes impairments related to equity method investments of approximately $1.3 billion, goodwill impairment of approximately $1.8 billion and long-lived asset impairments of approximately $0.3 billion, all within the G&P operating segment.

    (b)

    Non-GAAP measures calculated before distributions to preferred unitholders. See reconciliation in the tables that follow.

    (c)

    Distributions declared by the board of directors of MPLX's general partner. The twelve months ended December 31, 2021 include a special distribution of $0.575 per unit (the "Special Distribution Amount") for the third quarter of 2021.

    (d)

    DCF attributable to GP and LP unitholders divided by total GP and LP distributions declared including the Special Distribution Amount.

    (e)

    The adjusted distribution coverage ratio represents distribution coverage excluding the effects of the Special Distribution Amount. It reflects an $18 million increase to DCF attributable to GP and LP unitholders to exclude the Special Distribution Amount allocable to the Series A preferred unitholders and a $585 million decrease to distributions to exclude the Special Distribution Amount attributable to GP and LP unitholders for the twelve months ended December 31, 2021.

    (f)

    Calculated using face value total debt and LTM adjusted EBITDA. See reconciliation in the tables that follow.

     

    Segment Results













    (In millions)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    Segment income (loss) from operations (unaudited)


    2021



    2020



    2021



    2020

    Logistics and Storage

    $

    750


    $

    662


    $

    3,012


    $

    2,743

    Gathering and Processing


    306



    258



    980



    (2,532)













    Segment adjusted EBITDA attributable to MPLX LP (unaudited)












    Logistics and Storage

    $

    934


    $

    884


    $

    3,681


    $

    3,488

    Gathering and Processing


    511



    471



    1,879



    1,723













    Logistics & Storage

    L&S segment income from operations for the fourth quarter of 2021 increased by $88 million compared to the same period in 2020, while segment adjusted EBITDA for the fourth quarter of 2021 increased by $50 million compared to the same period in 2020. Results for the quarter benefited from higher revenue offset partially by higher operating expenses.

    Total pipeline throughputs were 5.6 million barrels per day (bpd) in the fourth quarter, 18% higher than the same quarter of 2020. The average tariff rate was $0.87 per barrel for the quarter, a decrease of 3% versus the same quarter of 2020. Terminal throughput was 2.9 million bpd for the quarter, an increase of 11% versus the same quarter of 2020.

    Gathering & Processing

    G&P segment income from operations for the fourth quarter of 2021 increased by $48 million compared to the fourth quarter of 2020. Adjusted EBITDA for the fourth quarter of 2021 increased by $40 million compared to the same period in 2020 as a result of higher natural gas liquids prices. These benefits were partially offset by lower processed and fractionated volumes.

    In the fourth quarter of 2021:

    • Gathered volumes averaged 5.4 billion cubic feet per day (bcf/d), a 3% increase from the fourth quarter of 2020.
    • Processed volumes averaged 8.5 bcf/d, a 2% decrease versus the fourth quarter of 2020.
    • Fractionated volumes averaged 549 thousand bpd, a 6% decrease versus the fourth quarter of 2020.

    In the Marcellus: 

    • Gathered volumes averaged 1.4 bcf/d in the fourth quarter, a 7% increase versus the fourth quarter of 2020.
    • Processed volumes averaged 5.6 bcf/d in the fourth quarter, a 2% decrease versus the fourth quarter of 2020.
    • Fractionated volumes averaged 485 thousand bpd in the fourth quarter, a 1% decrease versus the fourth quarter of 2020.

    Strategic Update

    MPLX's capital spending outlook for 2022 is $900 million, which includes approximately $700 million of growth capital, $140 million of maintenance capital and $60 million for repayment of MPLX's share of the Bakken Pipeline joint venture's debt due in 2022.  The capital spending plan focuses on expansions and de-bottlenecking of MPLX's existing assets.  MPLX continues to evaluate opportunities to expand its logistics footprint to meet the needs of today and participate in an energy-diverse future.

    Financial Position and Liquidity

    As of December 31, 2021, MPLX had $13 million in cash and $3.2 billion available on its bank revolving credit facility. The company's leverage ratio was 3.7x.

    The partnership repurchased $165 million of common units held by the public in the fourth quarter of 2021. As of December 31, 2021, MPLX had approximately $337 million remaining available under the current $1 billion board authorization.

    MPLX remains committed to maintaining an investment-grade credit profile.

    Conference Call

    At 9:30 a.m. ET today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at www.mplx.com.

    About MPLX LP

    MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.MPLX.com

    Investor Relations Contact: (419) 421-2071
    Kristina Kazarian, Vice President
    Jamie Madere, Manager
    Isaac Feeney, Analyst

    Media Contact: (419) 421-3312
    Jamal Kheiry, Communications Manager

    Non-GAAP references

    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 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-cash equity-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 less base 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.

    Forward-Looking Statements

    This press release 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, financial priorities, including with respect to positive free cash flow and distribution coverage, strategic plans, capital return plans, operating cost and capital expenditure reduction objectives, and environmental, social and governance goals. You can identify forward-looking statements by words such as "anticipate," "believe," "commitment," "could," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project," "proposition," "prospective," "pursue," "seek," "should," "strategy," "target," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPLX, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPLX's actual results to differ materially from those implied in the forward-looking statements include but are not limited to: general economic, political or regulatory developments, including inflation, changes in governmental policies relating to refined petroleum products, crude oil, natural gas or NGLs, or taxation; the magnitude, duration and extent of future resurgences of the COVID-19 pandemic and its effects, including the continuation or re-imposition of travel restrictions, business and school closures, increased remote work, stay at home orders and other actions taken by individuals, government and the private sector to stem the spread of the virus; the adequacy of capital resources and liquidity, including the availability of sufficient free cash flow from operations to pay distributions and to fund future unit repurchases; the ability to access debt markets on commercially reasonable terms or at all; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; changes to the expected construction costs and timing of projects and planned investments, the availability of desirable strategic initiatives for the Alaska logistics and storage operations or other portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; accidents or other unscheduled shutdowns affecting our machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the suspension, reduction or termination of MPC's obligations under MPLX's commercial agreements; other risk factors inherent to MPLX's industry; the impact of adverse market conditions or other similar risks to those identified herein affecting MPC; and the factors set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended Dec. 31, 2020, and in other filings with Securities and Exchange Commission (SEC).

    Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.

    Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.













    Condensed Results of Operations (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions, except per unit data)


    2021



    2020



    2021



    2020

    Revenues and other income:












    Operating revenue

    $

    1,302


    $

    955


    $

    4,624


    $

    3,586

    Operating revenue - related parties


    1,292



    1,192



    4,951



    4,812

    Income (loss) from equity method investments


    93



    76



    321



    (936)

    Other income


    47



    26



    131



    107

    Total revenues and other income


    2,734



    2,249



    10,027



    7,569

    Costs and expenses:












    Operating expenses (including purchased product costs)


    909



    519



    2,905



    2,000

    Operating expenses - related parties


    340



    304



    1,328



    1,276

    Depreciation and amortization


    316



    385



    1,287



    1,377

    Impairment expense


    —



    —



    42



    2,165

    General and administrative expenses


    86



    89



    353



    378

    Restructuring expenses


    —



    1



    —



    37

    Other taxes


    27



    31



    120



    125

    Total costs and expenses


    1,678



    1,329



    6,035



    7,358

    Income from operations


    1,056



    920



    3,992



    211

    Interest and other financial costs


    218



    219



    879



    896

    Income (loss) before income taxes


    838



    701



    3,113



    (685)

    Provision for income taxes


    —



    1



    1



    2

    Net income (loss)


    838



    700



    3,112



    (687)

    Less: Net income attributable to noncontrolling interests


    8



    9



    35



    33

    Net income (loss) attributable to MPLX LP


    830



    691



    3,077



    (720)

    Less: Series A preferred unitholders interest in net income


    21



    20



    100



    81

    Less: Series B preferred unitholders interest in net income


    10



    10



    41



    41

    Limited partners' interest in net income (loss) attributable to MPLX LP

    $

    799


    $

    661


    $

    2,936


    $

    (842)













    Per Unit Data












    Net income (loss) attributable to MPLX LP per limited partner unit:












    Common – basic

    $

    0.78


    $

    0.63


    $

    2.86


    $

    (0.80)

    Common – diluted

    $

    0.78


    $

    0.63


    $

    2.86


    $

    (0.80)

    Weighted average limited partner units outstanding:












    Common units – basic


    1,019



    1,040



    1,027



    1,051

    Common units – diluted


    1,019



    1,040



    1,027



    1,051













     













    Select Financial Statistics (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions, except ratio data)


    2021



    2020



    2021



    2020

    Common unit distributions declared by MPLX












    Common units (LP) – public

    $

    259


    $

    269


    $

    1,257


    $

    1,079

    Common units – MPC


    456



    445



    2,175



    1,793

    Total GP and LP distribution declared (a)


    715



    714



    3,432



    2,872













    Preferred unit distributions (b)












    Series A preferred unit distributions (a)(c)


    21



    20



    100



    81

    Series B preferred unit distributions(d)


    10



    10



    41



    41

    Total preferred unit distributions


    31



    30



    141



    122













    Other Financial Data












    Adjusted EBITDA attributable to MPLX LP(e)


    1,445



    1,355



    5,560



    5,211

    DCF attributable to GP and LP unitholders(e)

    $

    1,176


    $

    1,125


    $

    4,644


    $

    4,200

    Distribution coverage ratio(f)


    1.64x



    1.58x



    1.35x



    1.46x

    Adjusted distribution coverage ratio(f)


    1.64x



    1.58x



    1.64x



    1.46x













    Cash Flow Data












    Net cash flow provided by (used in):












    Operating activities

    $

    1,240


    $

    1,185


    $

    4,911


    $

    4,521

    Investing activities


    (141)



    (202)



    (518)



    (1,262)

    Financing activities

    $

    (1,125)


    $

    (996)


    $

    (4,395)


    $

    (3,259)













    (a)

    The twelve months ended December 31, 2021 include the Special Distribution Amount of $0.575 per unit, or a total of $585 million to GP and LP unitholders and $18 million to Series A preferred unitholders.

    (b)

    Includes MPLX distributions declared on the Series A and Series B preferred units as well as distributions earned on the Series B preferred, assuming a distribution is declared by the Board of Directors (distributions on Series B preferred units are declared and payable semi-annually on February 15 and August 15 or the first business day thereafter). Cash distributions declared/to be paid to holders of the Series A and Series B preferred units are not available to common unitholders.

    (c)

    Series A preferred unitholders receive the greater of $0.528125 per unit or the amount of per unit distributions paid to holders of MPLX LP common units.

    (d)

    Series B preferred unitholders are entitled to receive a fixed distribution of $68.75 per unit, per annum, payable semi-annually in arrears on February 15 and August 15 or the first business day thereafter.

    (e)

    Non-GAAP measure. See reconciliation below.

    (f)

    DCF attributable to GP and LP unitholders divided by total GP and LP distribution declared. The adjusted distribution coverage ratio represents distribution coverage excluding the effects of the Special Distribution Amount. The twelve months ended December 31, 2021, reflects an $18 million increase to DCF attributable to GP and LP unitholders to exclude the Special Distribution Amount allocable to the Series A preferred unitholders and a $585 million decrease to distributions to exclude the Special Distribution Amount attributable to GP and LP unitholders.

     







    Financial Data (unaudited)






    (In millions, except ratio data)


    December 31,
    2021



    December 31,
    2020

    Cash and cash equivalents

    $

    13


    $

    15

    Total assets


    35,507



    36,414

    Total debt(a)


    20,021



    20,139

    Redeemable preferred units


    965



    968

    Total equity

    $

    12,052


    $

    13,017

    Consolidated debt to adjusted EBITDA(b)


    3.7x



    3.9x







    Partnership units outstanding:






    MPC-held common units


    647



    647

    Public common units


    369



    391









    (a)

    Includes outstanding intercompany borrowings of $1,450 million as of December 31, 2021, and zero as of December 31, 2020. Presented net of unamortized debt issuance costs, unamortized discount/premium and includes long-term debt due within one year.

    (b)

    Calculated using face value total debt and LTM adjusted EBITDA. Face value total debt was $20,359 million and $20,536 million as of December 31, 2021, and December 31, 2020, respectively.

     

















    Operating Statistics (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,


    2021



    2020


    % Change



    2021



    2020


    % Change

    Logistics and Storage
















    Pipeline throughput (mbpd)
















    Crude oil pipelines


    3,322



    2,970


    12 %



    3,380



    2,998


    13 %

    Product pipelines


    2,264



    1,753


    29 %



    2,073



    1,714


    21 %

    Total pipelines


    5,586



    4,723


    18 %



    5,453



    4,712


    16 %

    Average tariff rates ($ per barrel)
















    Crude oil pipelines

    $

    0.93


    $

    0.97


    (4) %


    $

    0.95


    $

    0.96


    (1) %

    Product pipelines


    0.77



    0.78


    (1) %



    0.78



    0.81


    (4) %

    Total pipelines

    $

    0.87


    $

    0.90


    (3) %


    $

    0.89


    $

    0.91


    (2) %

















    Terminal throughput (mbpd)


    2,889



    2,606


    11 %



    2,886



    2,673


    8 %

















    Barges at period-end


    297



    300


    (1) %



    297



    300


    (1) %

    Towboats at period-end


    23



    23


    — %



    23



    23


    — %

















     

















    Gathering and Processing Operating Statistics (unaudited) - Consolidated (a)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,


    2021



    2020


    % Change



    2021



    2020


    % Change

    Gathering throughput (mmcf/d)
















    Marcellus Operations


    1,371



    1,281


    7 %



    1,336



    1,349


    (1) %

    Utica Operations(b)


    —



    —


    — %



    —



    —


    — %

    Southwest Operations


    1,315



    1,385


    (5) %



    1,346



    1,430


    (6) %

    Bakken Operations


    152



    136


    12 %



    150



    137


    9 %

    Rockies Operations


    406



    476


    (15) %



    439



    511


    (14) %

    Total gathering throughput


    3,244



    3,278


    (1) %



    3,271



    3,427


    (5) %

















    Natural gas processed (mmcf/d)
















    Marcellus Operations


    4,098



    4,259


    (4) %



    4,150



    4,198


    (1) %

    Utica Operations(b)


    —



    —


    — %



    —



    —


    — %

    Southwest Operations


    1,381



    1,448


    (5) %



    1,328



    1,471


    (10) %

    Southern Appalachian Operations


    235



    231


    2 %



    231



    231


    — %

    Bakken Operations


    152



    135


    13 %



    149



    136


    10 %

    Rockies Operations


    427



    471


    (9) %



    429



    502


    (15) %

    Total natural gas processed


    6,293



    6,544


    (4) %



    6,287



    6,538


    (4) %

















    C2 + NGLs fractionated (mbpd)
















    Marcellus Operations


    485



    492


    (1) %



    484



    472


    3 %

    Utica Operations(b)


    —



    —


    — %



    —



    —


    — %

    Southwest Operations


    —



    21


    (100) %



    2



    18


    (89) %

    Southern Appalachian Operations


    12



    12


    — %



    12



    12


    — %

    Bakken Operations


    23



    26


    (12) %



    23



    25


    (8) %

    Rockies Operations


    4



    4


    — %



    4



    4


    — %

    Total C2 + NGLs fractionated


    524



    555


    (6) %



    525



    531


    (1) %



















    (a)

    Includes operating data for entities that have been consolidated into the MPLX financial statements.

    (b)

    The Utica region relates to operations for partnership-operated equity method investments and thus does not have any operating statistics from a consolidated perspective. See table below for details on Utica.

     

















    Gathering and Processing Operating Statistics (unaudited) - Operated (a)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,


    2021



    2020


    % Change



    2021



    2020


    % Change

    Gathering throughput (mmcf/d)
















    Marcellus Operations


    1,371



    1,281


    7 %



    1,336



    1,349


    (1) %

    Utica Operations


    1,862



    1,753


    6 %



    1,690



    1,818


    (7) %

    Southwest Operations


    1,513



    1,459


    4 %



    1,494



    1,483


    1 %

    Bakken Operations


    152



    136


    12 %



    150



    137


    9 %

    Rockies Operations


    546



    636


    (14) %



    588



    688


    (15) %

    Total gathering throughput


    5,444



    5,265


    3 %



    5,258



    5,475


    (4) %

















    Natural gas processed (mmcf/d)
















    Marcellus Operations


    5,637



    5,769


    (2) %



    5,639



    5,629


    — %

    Utica Operations


    452



    552


    (18) %



    482



    578


    (17) %

    Southwest Operations


    1,576



    1,519


    4 %



    1,471



    1,537


    (4) %

    Southern Appalachian Operations


    235



    231


    2 %



    231



    231


    — %

    Bakken Operations


    152



    135


    13 %



    149



    136


    10 %

    Rockies Operations


    427



    471


    (9) %



    429



    502


    (15) %

    Total natural gas processed


    8,479



    8,677


    (2) %



    8,401



    8,613


    (2) %

















    C2 + NGLs fractionated (mbpd)
















    Marcellus Operations


    485



    492


    (1) %



    484



    472


    3 %

    Utica Operations


    25



    30


    (17) %



    26



    31


    (16) %

    Southwest Operations


    —



    21


    (100) %



    2



    18


    (89) %

    Southern Appalachian Operations


    12



    12


    — %



    12



    12


    — %

    Bakken Operations


    23



    26


    (12) %



    23



    25


    (8) %

    Rockies Operations


    4



    4


    — %



    4



    4


    — %

    Total C2 + NGLs fractionated


    549



    585


    (6) %



    551



    562


    (2) %



















    (a)

    Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.

     













    Reconciliation of Segment Adjusted EBITDA to Net Income (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    L&S segment adjusted EBITDA attributable to MPLX LP

    $

    934


    $

    884


    $

    3,681


    $

    3,488

    G&P segment adjusted EBITDA attributable to MPLX LP


    511



    471



    1,879



    1,723

    Adjusted EBITDA attributable to MPLX LP


    1,445



    1,355



    5,560



    5,211

    Depreciation and amortization


    (316)



    (385)



    (1,287)



    (1,377)

    Provision for income taxes


    —



    (1)



    (1)



    (2)

    Amortization of deferred financing costs


    (17)



    (17)



    (70)



    (61)

    Gain on extinguishment of debt


    —



    5



    10



    19

    Non-cash equity-based compensation


    (3)



    (2)



    (9)



    (14)

    Impairment expense


    —



    —



    (42)



    (2,165)

    Restructuring expenses


    —



    (1)



    —



    (37)

    Net interest and other financial costs


    (201)



    (207)



    (819)



    (854)

    Income (loss) from equity method investments(a)


    93



    76



    321



    (936)

    Distributions/adjustments related to equity method investments


    (166)



    (130)



    (537)



    (499)

    Unrealized derivative losses(b)


    (4)



    (2)



    (45)



    (3)

    Other


    (3)



    (1)



    (8)



    (6)

    Adjusted EBITDA attributable to noncontrolling interests


    10



    10



    39



    37

    Net income (loss)

    $

    838


    $

    700


    $

    3,112


    $

    (687)















    (a)

    The twelve months ended December 31, 2021 and December 31, 2020 include $6 million and $1,264 million of impairment expense, respectively.

    (b)

    MPLX 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.

     













    L&S Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited)

    Three Months Ended 

    December 31,


    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    L&S segment income from operations

    $

    750


    $

    662


    $

    3,012


    $

    2,743

    Depreciation and amortization


    132



    193



    546



    633

    Restructuring expenses


    —



    2



    —



    29

    Income from equity method investments


    (41)



    (28)



    (153)



    (154)

    Distributions/adjustments related to equity method investments


    88



    52



    262



    221

    Non-cash equity-based compensation


    2



    2



    6



    10

    Other


    3



    1



    8



    6

    L&S segment adjusted EBITDA attributable to MPLX LP

    $

    934


    $

    884


    $

    3,681


    $

    3,488













     













    G&P Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited)

    Three Months Ended 

    December 31,


    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    G&P segment income (loss) from operations

    $

    306


    $

    258


    $

    980


    $

    (2,532)

    Depreciation and amortization


    184



    192



    741



    744

    Impairment expense


    —



    —



    42



    2,165

    Restructuring expenses


    —



    (1)



    —



    8

    (Income) loss from equity method investments


    (52)



    (48)



    (168)



    1,090

    Distributions/adjustments related to equity method investments


    78



    78



    275



    278

    Unrealized derivative losses(a)


    4



    2



    45



    3

    Non-cash equity-based compensation


    1



    —



    3



    4

    Adjusted EBITDA attributable to noncontrolling interest


    (10)



    (10)



    (39)



    (37)

    G&P segment adjusted EBITDA attributable to MPLX LP

    $

    511


    $

    471


    $

    1,879


    $

    1,723















    (a)

    MPLX 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.

     







    Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to GP and LP Unitholders from Net Income (Loss) (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    Net income (loss)

    $

    838


    $

    700


    $

    3,112


    $

    (687)

    Provision for income taxes


    —



    1



    1



    2

    Amortization of deferred financing costs


    17



    17



    70



    61

    Gain on extinguishment of debt


    —



    (5)



    (10)



    (19)

    Net interest and other financial costs


    201



    207



    819



    854

    Income from operations


    1,056



    920



    3,992



    211

    Depreciation and amortization


    316



    385



    1,287



    1,377

    Non-cash equity-based compensation


    3



    2



    9



    14

    Impairment expense


    —



    —



    42



    2,165

    Restructuring expenses


    —



    1



    —



    37

    (Income) loss from equity method investments


    (93)



    (76)



    (321)



    936

    Distributions/adjustments related to equity method investments


    166



    130



    537



    499

    Unrealized derivative losses(a)


    4



    2



    45



    3

    Other


    3



    1



    8



    6

    Adjusted EBITDA


    1,455



    1,365



    5,599



    5,248

    Adjusted EBITDA attributable to noncontrolling interests


    (10)



    (10)



    (39)



    (37)

    Adjusted EBITDA attributable to MPLX LP


    1,445



    1,355



    5,560



    5,211

    Deferred revenue impacts


    12



    52



    88



    144

    Sales-type lease payments, net of income(b)


    3



    —



    71



    —

    Net interest and other financial costs


    (201)



    (207)



    (819)



    (854)

    Maintenance capital expenditures


    (52)



    (53)



    (133)



    (161)

    Maintenance capital expenditures reimbursements


    14



    15



    45



    46

    Equity method investment capital expenditures paid out


    (3)



    (7)



    (7)



    (23)

    Restructuring expenses


    —



    (1)



    —



    (37)

    Other


    (11)



    1



    (20)



    1

    DCF attributable to MPLX LP


    1,207



    1,155



    4,785



    4,327

    Preferred unit distributions(c)


    (31)



    (30)



    (141)



    (127)

    DCF attributable to GP and LP unitholders

    $

    1,176


    $

    1,125


    $

    4,644


    $

    4,200















    (a)

    MPLX 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.

    (b)

    The twelve months ended December 31, 2021 includes one time impact from Refining Logistics harmonization project of $54 million.

    (c)

    Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units, as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually), assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A preferred units, Series B preferred units and TexNew Mex units are not available to common unitholders. The TexNew Mex units were eliminated effective February 1, 2021.The distributions to Series A preferred unitholders for the twelve months ended December 31, 2021 include the Special Distribution Amount of $0.575 per unit, or a total of $18 million in addition to the base distributions.

     




    Reconciliation of Net Income to Last Twelve Month (LTM) adjusted EBITDA (unaudited)


    December 31,

    (In millions)


    2021



    2020

    LTM Net income (loss)

    $

    3,112


    $

    (687)

    LTM Net income to adjusted EBITDA adjustments


    2,448



    5,898

    LTM Adjusted EBITDA attributable to MPLX LP


    5,560



    5,211

    Consolidated total debt(a)

    $

    20,359


    $

    20,536

    Consolidated total debt to adjusted EBITDA


    3.7x



    3.9x









    (a)

    Consolidated total debt excludes unamortized debt issuance costs and unamortized discount/premium. Consolidated total debt includes long-term debt due within one year and outstanding borrowings under the loan agreement with MPC.

     










    Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to GP and LP Unitholders from Net Cash Provided by Operating Activities (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    Net cash provided by operating activities

    $

    1,240


    $

    1,185


    $

    4,911


    $

    4,521

    Changes in working capital items


    (18)



    (50)



    (202)



    (204)

    All other, net


    (15)



    3



    (26)



    (3)

    Non-cash equity-based compensation


    3



    2



    9



    14

    Net gain (loss) on disposal of assets


    17



    (3)



    13



    (4)

    Restructuring expenses


    —



    1



    —



    37

    Current income taxes


    1



    1



    3



    3

    Gain on extinguishment of debt


    —



    (5)



    (10)



    (19)

    Net interest and other financial costs


    201



    207



    819



    854

    Unrealized derivative losses(a)


    4



    2



    45



    3

    Other adjustments related to equity method investments


    19



    21



    29



    40

    Other


    3



    1



    8



    6

    Adjusted EBITDA


    1,455



    1,365



    5,599



    5,248

    Adjusted EBITDA attributable to noncontrolling interests


    (10)



    (10)



    (39)



    (37)

    Adjusted EBITDA attributable to MPLX LP


    1,445



    1,355



    5,560



    5,211

    Deferred revenue impacts


    12



    52



    88



    144

    Sales-type lease payments, net of income(b)


    3



    —



    71



    —

    Net interest and other financial costs


    (201)



    (207)



    (819)



    (854)

    Maintenance capital expenditures


    (52)



    (53)



    (133)



    (161)

    Maintenance capital expenditures reimbursements


    14



    15



    45



    46

    Equity method investment capital expenditures paid out


    (3)



    (7)



    (7)



    (23)

    Restructuring expenses


    —



    (1)



    —



    (37)

    Other


    (11)



    1



    (20)



    1

    DCF attributable to MPLX LP


    1,207



    1,155



    4,785



    4,327

    Preferred unit distributions(c)


    (31)



    (30)



    (141)



    (127)

    DCF attributable to GP and LP unitholders

    $

    1,176


    $

    1,125


    $

    4,644


    $

    4,200















    (a)

    MPLX 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.

    (b)

    The twelve months ended December 31, 2021 includes one time impact from Refining Logistics harmonization project of $54 million.

    (c)

    Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units, as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually), assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A preferred units, Series B preferred units and TexNew Mex units are not available to common unitholders. The TexNew Mex units were eliminated effective February 1, 2021. The distributions to Series A preferred unitholders for the twelve months ended December 31, 2021 include the Special Distribution Amount of $18 million in addition to the base distributions.

     













    Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Excess Cash Flow (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    Net cash provided by operating activities(a)

    $

    1,240


    $

    1,185


    $

    4,911


    $

    4,521

    Adjustments to reconcile net cash provided by operating activities to free cash flow












    Net cash used in investing activities


    (141)



    (202)



    (518)



    (1,262)

    Contributions from MPC


    14



    16



    45



    50

    Distributions to noncontrolling interests


    (10)



    (11)



    (39)



    (37)

    Free cash flow


    1,103



    988



    4,399



    3,272

    Base distributions paid to common and preferred unitholders(b)


    (742)



    (742)



    (2,970)



    (3,006)

    Excess cash flow(c)

    $

    361


    $

    246


    $

    1,429


    $

    266















    (a)

    The three months ended December 31, 2021, and December 31, 2020, include a decrease in working capital of $18 million and $50 million, respectively. The twelve months ended December 31, 2021, and December 31, 2020, include a decrease in working capital of $202 million and $204 million, respectively.

    (b)

    The three and twelve months ended December 31, 2021 excludes the Special Distribution Amount of $603 million distributed to unitholders in the fourth quarter of 2021.

    (c)

    For the three and twelve months ended December 31, 2021, $165 million and $630 million of excess cash flow generated was used to repurchase common units held by the public, respectively.

     













    Capital Expenditures (unaudited)


    Three Months Ended 

    December 31,



    Twelve Months Ended 

    December 31,

    (In millions)


    2021



    2020



    2021



    2020

    Capital Expenditures:












    Growth capital expenditures

    $

    133


    $

    101


    $

    407


    $

    778

    Growth capital reimbursements


    —



    (2)



    —



    (4)

    Investments in unconsolidated affiliates


    35



    22



    151



    266

    Return of capital


    —



    (11)



    (36)



    (123)

    Capitalized interest


    (2)



    (8)



    (13)



    (39)

    Total growth capital expenditures


    166



    102



    509



    878

    Maintenance capital expenditures


    52



    53



    133



    161

    Maintenance capital reimbursements


    (14)



    (15)



    (45)



    (46)

    Capitalized interest


    —



    —



    (1)



    —

    Total maintenance capital expenditures


    38



    38



    87



    115













    Total growth and maintenance capital expenditures


    204



    140



    596



    993

    Investments in unconsolidated affiliates(a)


    (35)



    (22)



    (151)



    (266)

    Return of capital(a)


    —



    11



    36



    123

    Growth and maintenance capital reimbursements(b)


    14



    17



    45



    50

    (Increase) decrease in capital accruals


    (30)



    47



    (11)



    244

    Capitalized interest


    2



    8



    14



    39

    Additions to property, plant and equipment, net(a)

    $

    155


    $

    201


    $

    529


    $

    1,183















    (a)

    Investments in unconsolidated affiliates, return of capital and additions to property, plant and equipment, net are shown as separate lines within Investing activities in the Consolidated Statements of Cash Flows.

    (b)

    Growth and maintenance capital reimbursements are included in the contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows.

     

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