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 February 3, 2016 - 6:56 AM EST
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MPLX LP Reports Fourth-Quarter and Full-Year 2015 Financial Results

  • Completed strategic combination with MarkWest on Dec. 4
  • Reported fourth-quarter 2015 adjusted EBITDA of $286 million and distributable cash flow of $227 million
  • Delivered 29.1 percent distribution growth in 2015 with a 1.27 coverage ratio
  • MPC offered to contribute its inland marine business to the partnership in exchange for MPLX equity
  • Commenced operation of three major facilities in the Marcellus shale

FINDLAY, Ohio, Feb. 3, 2016 - MPLX LP (NYSE: MPLX) today reported fourth-quarter and full-year 2015 financial results. Effective Dec. 4, 2015, MPLX and MarkWest Energy Partners (MarkWest) completed the previously announced merger by which MarkWest became a wholly-owned subsidiary of MPLX and together formed one of the largest master limited partnerships (MLPs) in the U.S. The financial and operational results of MarkWest are included in MPLX's results from the date of the merger, unless otherwise noted.  

    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions, except per unit)   2015     2014     2015     2014
Net income attributable to MPLX(a) $ 18     $ 29     $ 156     $ 121  
Adjusted EBITDA attributable to MPLX(b)   286       42       486       166  
Distributable cash flow attributable to MPLX(b)   227       32       399       137  
Distribution per unit   0.5000       0.3825       1.8200       1.4100  
Growth capital expenditures(a)(c)(d)   145       21       249       51  

(a)    Reflects the results of MarkWest from the date of the merger, Dec. 4, 2015.
(b)    Non-GAAP measure including MarkWest from Oct. 1, 2015. See reconciliation below.
(c)    Excludes non-affiliated joint-venture (JV) members' share of capital expenditures.
(d)    See reconciliation below.

"MPLX's successful combination with MarkWest creates a diversified, large-cap MLP with compelling long-term growth opportunities," said Gary R. Heminger, MPLX chairman and chief executive officer. "The combination expands our asset base and positions us to continue supporting natural gas liquids development in North America, which provides significant future earnings potential. Our commitment to a strong balance sheet, fee-based cash flows, and supportive sponsor position us for sustainable growth."

Heminger noted that, in addition to this substantial diversification, MarkWest also adds scale to the partnership. "MarkWest has long-term relationships with many producers who operate in the most economic shale plays in the country. The MarkWest leadership team has a demonstrated record of successfully executing midstream organic capital programs to meet producers' needs," Heminger said. "Together with MPLX's existing crude oil and refined products logistics and storage network, we have the ability to pursue projects along the entire hydrocarbon value chain. These opportunities, combined with prospective drop-downs from our sponsor Marathon Petroleum Corporation [NYSE: MPC], are expected to contribute to the partnership's long-term growth profile."

Heminger highlighted the partnership's strategic advantages in its newly-acquired, full-service midstream assets, saying, "MarkWest has the right assets in the right locations. Even in the current market conditions, we continue to see increased volumes in the Marcellus and Utica shales. We believe the partnership is well-positioned to execute its future growth strategy."

During the fourth quarter of 2015, Heminger indicated that in light of the higher MLP yield environment, drop-down transactions could be expected as early as 2016. Consistent with this guidance, MPC recently offered to contribute its inland marine business to MPLX, with funding anticipated to consist entirely of MPLX equity issued to MPC. The transaction is expected to close in the second quarter, pending requisite approvals. Heminger noted that an all-unit transaction and a supportive valuation demonstrate MPC's support and provide MPLX a more attractive alternative than accessing the public capital markets. He stressed that MPLX remains committed to maintaining an investment-grade credit profile, which is supported by the anticipated issuance of equity to MPC. MPLX is targeting a leverage ratio of approximately 4.0 times by the end of the year.

"The inland marine business has high-quality assets and is strategically located in key markets. Essentially all of its operations support the movement of crude oil and refined products for MPC," said Heminger. "The cash flows generated from the marine business will further diversify the partnership's earnings stream." Heminger emphasized the fee-for-capacity arrangement associated with these assets and the highly predictable earnings they are expected to generate for the partnership.

As announced on Jan. 25, the board of directors of MPLX's general partner declared a distribution of $0.50 per common unit, resulting in a 1.20 times distribution coverage ratio for the fourth quarter. Since the partnership's initial public offering in October 2012, the MPLX board has authorized distribution increases for 12 consecutive quarters, representing a compound annual growth rate of 24 percent over its minimum quarterly distribution. The partnership achieved its forecasted increase to distributions of 29 percent in 2015.

"The continued decline in commodity prices, and the market's increasing belief that these conditions will persist for some period of time, has resulted in a challenging valuation and a higher yield environment within the MLP space," said Heminger, also noting that many MLPs have taken steps to address the deteriorating market conditions with significant reductions to either distributions or distribution growth rates. "Given current market conditions, more modest growth in volumes of natural gas and natural gas liquids, the increase in our yield and the impacts to our valuation, we are now forecasting distribution growth of 12 to 15 percent for 2016, which is among the highest for large-cap, diversified MLPs." He said this guidance considers the continuing supportive measures expected from MPC, which include those in connection with the anticipated marine transaction, the expected placement of additional equity with MPC, incubating projects for future acquisition by MPLX, and the ability to borrow from MPC via an inter-company loan agreement. As MPC continues to evaluate the support options available, it is expected to consider the capital allocation needs of both companies.

"We will assess the distribution growth rate for 2017 later this year and provide guidance around the partnership's growth expectations at that time," Heminger said. "We are continuing to build our financial strength and preserve capital to achieve sustainable long-term growth." He reiterated that continuing support anticipated from its sponsor and maintaining an investment-grade credit profile should allow the partnership to manage the near-term challenges and provide long-term growth. "As we continue to optimize our growth capital investments to support our producer customers and diversify our asset base through acquisitions and drop-downs from our sponsor, we look forward to increasing our steady earnings streams and capitalizing on the opportunities available to us."


Operational Highlights

  • Commenced operation of one processing plant and two fractionation facilities in the Marcellus shale, increasing the partnership's total processing capacity by 200 million cubic feet per day and fractionation capacity by 73,000 barrels per day
  • Completed 1.24 million barrel expansion at the Patoka tank farm to support the startup of the Southern Access Extension pipeline, which commenced operations in December 2015
  • 10 major processing and fractionation projects currently under construction on a just-in-time basis; five expected to be completed in 2016 to meet forecasted growth in producer volumes

Segment Results

MPLX has two reportable segments: Logistics and Storage, and Gathering and Processing. Each of these segments is organized and managed based upon the nature of the products and services it offers. Segment results represent income from operations attributable to the reportable segments, including partially-owned entities operated by the partnership that are accounted for as equity method investments. Segment results are also adjusted to exclude the portion of income from operations attributable to the noncontrolling interests related to partially-owned entities that are either consolidated or recorded based upon the equity method investment.

  • Logistics and Storage - transports and stores crude oil, refined products and other hydrocarbon-based products. This segment generally corresponds to the MPLX business prior to the MarkWest acquisition.
  • Gathering and Processing - gathers, processes and transports natural gas; gathers, transports, fractionates, stores and markets natural gas liquids (NGLs). This segment generally corresponds to the MarkWest business, which was acquired on Dec. 4, 2015.
    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions)   2015     2014     2015     2014
                       
Logistics and Storage $ 71     $ 57     $ 322     $ 213  
Gathering and Processing   76       -       76       -  
Segment operating income attributable to MPLX LP(a) $ 147     $ 57     $ 398     $ 213  
                       

(a)  See reconciliation below for details.

Logistics and Storage segment operating income for the fourth quarter of 2015 was $71 million, compared with $57 million over the same period in 2014. For the full-year 2015, Logistics and Storage segment operating income was $322 million, compared with $213 million for the full-year 2014. The increase in the fourth quarter and full year was primarily due to the acquisition of the remaining interest in MPLX Pipe Line Holdings LP and higher average tariff rates. The fourth quarter increase was partially offset by a reduction in transported volumes and the full year increase was partially offset by a reduction in the amount of deferred revenue recognized from volume deficiency credits.

Gathering and Processing segment operating income increased for the three and twelve months ended Dec. 31, 2015, compared to the same periods in 2014. This increase is due to the acquisition of MarkWest.

Corporate general and administrative expenses, unrealized derivative gains and depreciation and amortization are not allocated to the reportable segments. MPLX management does not consider these items allocable to or controllable by any individual segment, and therefore, excludes these items when evaluating segment performance.

Financial Position and Liquidity

In connection with the combination, we assumed an aggregate principal amount of $4.1 billion in senior notes issued by MarkWest and MarkWest Energy Finance Corporation. On Dec. 22, 2015, we completed offers to exchange any and all outstanding MarkWest senior notes for up to $4.1 billion aggregate principal amount of new notes issued by MPLX having the same maturity and interest rates as the MarkWest senior notes. The exchange was completed for 98.4 percent, or $4.0 billion, of MarkWest senior notes.

On Dec. 4, 2015, our existing credit agreement was amended to, among other things, increase the aggregate amount of our bank revolving credit capacity from $1.0 billion to $2.0 billion.

On Dec. 4, 2015, MPLX entered into a loan agreement with MPC Investment LLC, a wholly-owned subsidiary of MPC, providing for a $500 million revolving credit facility which is scheduled to mature on Dec. 4, 2020. As of Dec. 31, 2015, there was $8 million in borrowings outstanding under this facility.

As of Dec. 31, 2015, MPLX had $43 million in cash. In addition, MPLX had $1.12 billion of remaining capacity under its $2 billion bank revolving credit facility, as well as $492 million available under the facility with MPC. MPLX reported a leverage ratio of 4.7 times on a covenant basis. MPLX remains committed to maintaining an investment grade credit profile and is targeting a leverage ratio of 4.0 times by the end of 2016.

2016 Forecast

For 2016, MPLX forecasts net income in a range of $325 million to $485 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in a range of $1.25 billion to $1.40 billion and distributable cash flow (DCF) in a range of $970 million to $1.10 billion based on its current forecast of operational volumes, commodity prices, and derivative instruments currently outstanding. A $0.05 per gallon change in NGL prices is forecasted to result in an approximate $18 million change to DCF.

MPLX is forecasting distribution growth of 12 to 15 percent for 2016.

MPLX's portion of growth capital expenditures for 2016 is forecasted in a range of $1.0 billion to $1.5 billion. Maintenance capital for 2016 is forecasted at approximately $61 million.


Conference Call

At 2 p.m. EST today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen to the conference call by dialing 1-800-447-0521 (confirmation #41539371) or by visiting MPLX's website at http://www.mplx.com and clicking on the "2015 Fourth-Quarter Financial Results" link in the "News & Headlines" section. Replays of the conference call will be available on MPLX's website through Wednesday, Feb. 17. Investor-related material will also be available online prior to the conference call and webcast at http://ir.mplx.com.

###

About MPLX LP

MPLX is a diversified, growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation to own, operate, develop and acquire midstream energy infrastructure assets. We are engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; and the transportation and storage of crude oil and refined petroleum products. Headquartered in Findlay, Ohio, MPLX's assets consist of a network of common carrier crude oil and products pipeline assets located in the Midwest and Gulf Coast regions of the United States, a butane storage cavern located in West Virginia with approximately 1 million barrels of natural gas liquids storage capacity, crude oil and product storage facilities (tank farms) with approximately 4.5 million barrels of available storage capacity, a barge dock facility with approximately 78,000 barrels per day of crude oil and product throughput capacity and gathering and processing assets which includes more than 5,000 miles of gas gathering and NGL pipelines, over 50 gas processing plants, more than 10 NGL fractionation facilities and one condensate stabilization facility.

Investor Relations Contacts:
Lisa Wilson (419) 421-2071
Kevin Hawkins (866) 858-0482

Media Contacts:
Chuck Rice (419) 421-2521
Brandon Daniels (419) 421-3127

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 and distributable cash flow (DCF). DCF and adjusted EBITDA 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 measure most directly comparable to adjusted EBITDA and DCF is net income and net cash provided by operating activities. We define adjusted EBITDA as net income adjusted for (i) depreciation and amortization; (ii) provision for income taxes; (iii) non-cash equity-based compensation; (iv) net interest and other financial costs; (v) equity investment income; (vi) equity method distributions; and (vii) acquisition costs. In general, we define DCF as adjusted EBITDA plus (i) the current period cash received/deferred revenue for committed volume deficiencies less (ii) net interest and other financial costs; (iii) unrealized gain on commodity hedges; (iv) equity investment capital expenditures paid out; (v) equity investment cash contributions; (vi) maintenance capital expenditures paid; (vii) volume deficiency credits recognized; and (viii) other non-cash items.

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.

This press release contains forward-looking statements within the meaning of federal securities laws regarding MPLX LP ("MPLX"), Marathon Petroleum Corporation ("MPC"), and MarkWest Energy Partners, L.P. ("MarkWest"). These forward-looking statements relate to, among other things, expectations, estimates and projections concerning the business and operations of MPLX, MPC, and MarkWest. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast", "goal," "guidance," "imply," "objective," "opportunity," "outlook," "plan," "project," "prospective," "position," "potential," "pursue," "seek," "target," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the companies' control and are difficult to predict. In addition to other factors described herein that could cause MPLX's actual results to differ materially from those implied in these forward-looking statements, negative capital market conditions, including a persistence or increase of the current yield on common units, which is higher than historical yields, could adversely affect MPLX's ability to meet its distribution growth guidance. Factors that could cause MPLX's or MarkWest's actual results to differ materially from those implied in the forward-looking statements include: risk that the synergies from the MPLX/MarkWest merger transaction may not be fully realized or may take longer to realize than expected; disruption from the MPLX/MarkWest merger transaction making it more difficult to maintain relationships with customers, employees or suppliers; risks relating to any unforeseen liabilities of MarkWest; the adequacy of MPLX's capital resources and liquidity, including, but not limited to, availability of sufficient cash flow to pay MPLX's distributions, and the ability to successfully execute  both companies' business plans and growth strategies; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; volatility in and/or degradation of market and industry conditions; completion of midstream infrastructure by competitors; disruptions due to equipment interruption or failure, including electrical shortages and power grid failures; the suspension, reduction or termination of MPC's obligations under MPLX's commercial agreements; modifications to earnings and distribution growth objectives; the level of support from MPC, including dropdowns, alternative financing arrangements, taking equity units, and other methods of sponsor support, as a result of the capital allocation needs of the enterprise as a whole and its ability to provide support on commercially reasonable terms; federal and state environmental, economic, health and safety, energy and other policies and regulations; changes to MPLX's capital budget; other risk factors inherent to MPLX or MarkWest's industry; 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, 2014, filed with the SEC; and the factors set forth under the heading "Risk Factors" in MarkWest's Annual Report on Form 10-K for the year ended Dec. 31, 2014, and Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2015, filed with the SEC (former ticker symbol: MWE). These risks, as well as other risks associated with MPLX, MarkWest and the merger transaction, are also more fully discussed in the joint proxy statement and prospectus included in the registration statement on Form S-4 filed by MPLX and declared effective by the SEC on Oct. 29, 2015, as supplemented. Factors that could cause MPC's actual results to differ materially from those implied in the forward-looking statements include: risks described above relating to MPLX, MarkWest and the MPLX/MarkWest merger transaction; changes to the expected construction costs and timing of pipeline projects; continued/further volatility in and/or degradation of market and industry conditions; the availability and pricing of crude oil and other feedstocks; slower growth in domestic and Canadian crude supply; the effects of the lifting of the U.S. crude oil export ban; completion of pipeline capacity to areas outside the U.S. Midwest; consumer demand for refined products; transportation logistics; the reliability of processing units and other equipment; MPC's ability to successfully implement growth opportunities; modifications to MPLX earnings and distribution growth objectives; federal and state environmental, economic, health and safety, energy and other policies and regulations; including the cost of compliance with the Renewable Fuel Standard; MPC's ability to successfully integrate the acquired Hess retail operations and achieve the strategic and other expected objectives relating to the acquisition; changes to MPC's capital budget; other risk factors inherent to MPC's industry; and the factors set forth under the heading "Risk Factors" in MPC's Annual Report on Form 10-K for the year ended Dec. 31, 2014, filed with Securities and Exchange Commission (SEC). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here, in MPLX's Form 10-K, in MPC's Form 10-K, or in MarkWest's Form 10-K and Form 10-Qs could also have material adverse effects on forward-looking statements. Copies of MPLX's Form 10-K are available on the SEC website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Form 10-K are available on the SEC website, MPC's website at http://ir.marathonpetroleum.com or by contacting MPC's Investor Relations office. Copies of MarkWest's Form 10-K and Form 10-Qs are available on the SEC website (former ticker symbol: MWE), MarkWest's website at http://investor.markwest.com or by contacting MPLX's Investor Relations office.


Results of Operations (unaudited)                      
    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions, except per unit data)   2015     2014     2015     2014
Revenues and other income:                      
Service revenue $ 100     $ 17     $ 150     $ 69  
Service revenue to related parties   120       115       481       451  
Product sales   36       -       36       -  
Product sales to related parties   1       -       1       -  
Other income   4       1       8       5  
Other income - related parties   8       6       27       23  
Total revenues and other income   269       139       703       548  
Costs and expenses:                      
Cost of revenues (excludes items below)   71       42       172       145  
Purchased product costs   20       -       20       -  
Purchases from related parties   27       26       102       98  
Depreciation and amortization   51       12       89       50  
General and administrative expenses   46       18       104       65  
Other taxes   4       2       10       7  
Total costs and expenses   219       100       497       365  
Income from operations   50       39       206       183  
Interest expense, net of amounts capitalized   20       2       35       4  
Other financial costs   10       -       12       1  
Income before income taxes   20       37       159       178  
Provision for income taxes   2       -       2       -  
Net income   18       37       157       178  
Less: Net income attributable to noncontrolling interests   -       8       1       57  
Net income attributable to MPLX LP   18       29       156       121  
Less: General partner's interest in net income attributable to MPLX LP   38       2       57       6  
Limited partners' interest in net (loss) income attributable to MPLX LP $ (20 )   $ 27     $ 99     $ 115  
                       
                       
Per Unit Data                      
Net (loss) income attributable to MPLX LP per limited partner unit:                      
Common - basic $ (0.14 )   $ 0.38     $ 1.23     $ 1.55  
Common - diluted   (0.14 )     0.38       1.22       1.55  
Subordinated - basic and diluted   -       0.33       0.11       1.50  
                       
Weighted average limited partner units outstanding:                      
Common units - basic   146       39       79       37  
Common units - diluted   146       39       80       37  
Subordinated units - basic and diluted   -       37       18       37  
                       


Select Financial Statistics (unaudited)                      
    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions, except ratio data)   2015     2014     2015     2014
Distribution declared                      
Limited partner units - public $ 120     $ 9     $ 151     $ 29  
Limited partner units - MPC   29       21       104       77  
General partner units - MPC   3       1       6       2  
Incentive distribution rights - MPC   37       2       54       4  
Total distribution declared $ 189     $ 33     $ 315     $ 112  
                       
Coverage ratio   1.20x     0.97x     1.27x     1.23x
                       
Cash Flow Data                      
Net cash flow provided by (used in):                      
Operating activities $ 54     $ 57     $ 239     $ 247  
Investing activities $ (1,379 )   $ (32 )   $ (1,498 )   $ (75 )
Financing activities $ 1,278     $ (30 )   $ 1,275     $ (199 )
                       
Other Financial Data                      
Adjusted EBITDA attributable to MPLX LP(a) $ 286     $ 42     $ 486     $ 166  
Distributable cash flow attributable to MPLX LP(a) $ 227     $ 32     $ 399     $ 137  
                       

(a)  Non-GAAP measure. See reconciliation below.


Select Balance Sheet Data (unaudited)          
(In millions, except ratio data)   December 31
 2015
    September 30
 2015
Cash and cash equivalents $ 43     $ 90  
Total assets   15,662       1,391  
Long term debt   5,255       753  
Total equity   9,256       493  
Consolidated total debt to consolidated EBITDA (covenant basis)   4.7x     3.1x
           
Partnership units outstanding:          
  General partner units   7       2  
  Class B units(a)   8       -  
  MPC-held LP units   57       57  
Public LP units   240       23  

(a)  Class B units were issued to and are held by M&R MWE Liberty LLC and certain of its affiliates, an affiliate of The Energy & Minerals Group. The Class B units will convert into common units at a rate of 1.09 common units and will receive $6.20 in cash for each Class B unit in two equal installments on July 1, 2016, and July 1, 2017.  Class B units do not receive distributions.


Operating Statistics (unaudited)                              
    Three Months Ended
 December 31
    Year Ended
 December 31
    2015     2014   % Change     2015     2014   % Change
Logistics and Storage                              
Pipeline throughput (mbpd):                              
  Crude oil pipelines   972       1,065     (9 )%     1,061       1,041     2 %
  Product pipelines   934       979     (5 )%     914       878     4 %
  Total   1,906       2,044     (7 )%     1,975       1,919     3 %
Average tariff rates ($ per barrel):                              
  Crude oil pipelines $ 0.65     $ 0.62     5 %   $ 0.66     $ 0.64     3 %
  Product pipelines   0.68       0.61     11 %     0.65       0.61     7 %
  Total pipelines   0.66       0.61     8 %     0.65       0.63     3 %
                               
Gathering and Processing (a)                              
Gathering throughput (mmcf/d)                              
Marcellus operations   889                 889            
Utica operations   745                 745            
Southwest operations   1,441                 1,441            
Total gathering throughput   3,075                 3,075            
                               
Natural gas processed (mmcf/d)                              
Marcellus operations   2,964                 2,964            
Utica operations   1,136                 1,136            
Southwest operations   1,125                 1,125            
Southern Appalachian operations   243                 243            
Total natural gas processed   5,468                 5,468            
                               
C2 + NGLs fractionated (mbpd)                              
Marcellus operations   220                 220            
Utica operations   51                 51            
Southwest operations   24                 24            
Southern Appalachian operations   12                 12            
Total C2 + NGLs fractionated   307                 307            
                               
                               

(a) The three months and year ended Dec. 31, 2015, Gathering and Processing segment operating statistics are for the period of Dec. 4, 2015, through Dec. 31, 2015.  The Gathering and Processing segment volumes reported are the average daily rate for the days of operation.

The table below presents pro forma operating statistics, as evaluated by management, for the reported Gathering and Processing segment for the years ended Dec. 31, 2015, and 2014. We believe this pro forma full-year data provides a more meaningful discussion of trends. The pro forma operating information below might not necessarily be indicative of future results. In addition, all partnership-operated, non-wholly-owned subsidiaries are included in the statistics below.

Pro Forma Operating Statistics (unaudited)                
      Year Ended
 December 31
      2015     2014   % Change
Gathering and Processing(a)                
Gathering Throughput (mmcf/d)                
Marcellus operations     858       668     28 %
Utica operations     673       289     133 %
Southwest operations     1,413       1,336     6 %
Total gathering throughput     2,944       2,293     28 %
                 
Natural Gas Processed (mmcf/d)                
Marcellus operations     2,861       2,064     39 %
Utica operations     883       416     112 %
Southwest operations     1,077       991     9 %
Southern Appalachian operations     267       280     (5 )%
Total natural gas processed     5,088       3,751     36 %
                 
C2 + NGLs Fractionated (mbpd)                
Marcellus operations     194       147     32 %
Utica operations     40       19     111 %
Southwest operations     18       21     (14 )%
Southern Appalachian operations     15       19     (21 )%
Total C2 + NGLs fractionated     267       206     30 %
                 

(a) The Gathering and Processing segment volumes reported are the average daily rate for the days of operation.


Reconciliation of Segment Operating Income Attributable to MPLX LP to Income From Operations (unaudited)                      
    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions)   2015     2014     2015     2014
Segment operating income attributable to MPLX LP $ 147     $ 57     $ 398     $ 213  
Segment portion attributable to unconsolidated affiliates   (21 )     -       (21 )     -  
Segment portion attributable to NCI   12       12       13       85  
Income from equity method investments   3       -       3       -  
Other income - related parties from unconsolidated affiliates   2       -       2       -  
Unrealized derivative gains   4       -       4       -  
Depreciation and amortization   (51 )     (12 )     (89 )     (50 )
General and administrative expenses   (46 )     (18 )     (104 )     (65 )
Income from operations $ 50     $ 39     $ 206     $ 183  
                       


Reconciliation of Adjusted EBITDA Attributable to MPLX LP and Distributable Cash Flow Attributable to MPLX LP to Net Income (unaudited)          
    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions)   2015     2014     2015     2014
Net income $ 18     $ 37     $ 157     $ 178  
Plus:  Depreciation and amortization   51       12       89       50  
Provision for income taxes   2       -       2       -  
Non-cash equity-based compensation   1       1       4       2  
Net interest and other financial costs   30       2       47       5  
Equity investment income   (3 )     -       (3 )     -  
Equity method distributions   15       -       15       -  
Acquisition costs   26       -       30       -  
Adjusted EBITDA   140       52       341       235  
Less:  Adjusted EBITDA attributable to noncontrolling
  interests
  -       10       1       69  
MarkWest's pre-merger EBITDA(a)   146       -       146       -  
Adjusted EBITDA attributable to MPLX LP   286       42       486       166  
Plus:  Current period cash received/deferred revenue
  for committed volume deficiencies
  11       9       44       31  
Less: Net interest and other financial costs   20       2       36       6  
Unrealized gain on commodity hedges   4       -       4       -  
Equity investment capital expenditures paid out   (14 )     -       (14 )     -  
Equity investment cash contributions   14       -       14       -  
Maintenance capital expenditures paid   14       9       30       20  
Volume deficiency credits recognized   9       8       38       34  
Other   7       -       7       -  
Distributable cash flow pre-MarkWest undistributed   243       32       415       137  
MarkWest undistributed DCF(a)   (16 )     -       (16 )     -  
Distributable cash flow attributable to MPLX LP $ 227     $ 32     $ 399     $ 137  
                       

(a) MarkWest pre-merger EBITDA and undistributed distributable cash flow relates to MarkWest's EBITDA and distributable cash flow from Oct. 1, 2015, through Dec. 3, 2015.


Reconciliation of Adjusted EBITDA Attributable to MPLX LP and Distributable Cash Flow Attributable to MPLX LP to Net Cash Provided by Operating Activities (unaudited)    
    Year Ended
 December 31
(In millions)   2015     2014
Net cash provided by operating activities $ 239     $ 247  
Less:  Changes in working capital items   (38 )     19  
   All other, net   17       2  
Plus: Non-cash equity-based compensation   4       2  
 Net loss on disposal of assets   (1 )     -  
  Net interest and other financial costs   47       5  
  Asset retirement expenditures   1       2  
 Acquisition costs   30       -  
Adjusted EBITDA   341       235  
Less: Adjusted EBITDA attributable to non-controlling interests   1       69  
MarkWest's pre-merger EBITDA(a)   146       -  
Adjusted EBITDA attributable to MPLX LP   486       166  
Plus:  Current period cash received/deferred revenue for committed volume
  deficiencies
  44       31  
Less: Net interest and other financial costs   36       6  
Unrealized gain on commodity hedges   4       -  
Equity investment capital expenditures paid out   (14 )     -  
Equity investment cash contributions   14       -  
  Maintenance capital expenditures paid   30       20  
Volume deficiency credits recognized   38       34  
Other   7       -  
Distributable cash flow pre-MarkWest undistributed   415       137  
MarkWest's undistributed DCF adjustment(a)   (16 )     -  
Distributable cash flow attributable to MPLX LP $ 399     $ 137  
           

(a) MarkWest pre-merger EBITDA and undistributed distributable cash flow relates to MarkWest's EBITDA and distributable cash flow from Oct. 1, 2015, through Dec. 3, 2015, which create a total $130 million adjustment to DCF.


Reconciliation of Forecast Distributable cash Flow attributable to MPLX LP and Forecast Adjusted EBITDA attributable to MPLX LP to Net Income (unaudited)            
      Low     High
      Year Ended     Year Ended
(In millions)     12/31/2016     12/31/2016
Net income   $ 325     $ 485  
Plus:  Depreciation and amortization     582       582  
Net interest and other financial costs     223       223  
Adjustment for Equity investment earnings and distributions     107       107  
Other     16       6  
Adjusted EBITDA     1,253       1,403  
Less: Adjusted EBITDA attributable to NCI     3       3  
Adjusted EBITDA attributable to MPLX LP     1,250       1,400  
Less:  Maintenance Capital     61       61  
Net interest and other financial costs     223       223  
Other     (4 )     16  
Distributable cash flow attributable to MPLX LP   $ 970     $ 1,100  


Reconciliation of Capital Expenditures (unaudited)                      
    Three Months Ended
 December 31
    Year Ended
 December 31
(In millions)   2015     2014     2015     2014
Capital Expenditures(a):                      
  Maintenance $ 14     $ 11     $ 31     $ 28  
  Growth   137       29       259       65  
Total capital expenditures   151       40       290       93  
  Less: Increase in capital accruals   7       7       25       12  
  Asset retirement expenditures   1       1       1       2  
Additions to property, plant and equipment   143       32       264       79  
  Capital expenditures of unconsolidated subsidiaries(b)   24       -       24       -  
Total gross capital expenditures   167       32       288       79  
Joint venture partner contributions   (8 )     -       (8 )     -  
Total gross capital expenditures, net   159       32       280       79  
Less: Maintenance capital   14       11       31       28  
Total growth capital expenditures   145       21       249       51  
Acquisition, net of cash acquired   1,218       -       1,218       -  
Total growth capital and acquisition $ 1,363     $ 21     $ 1,467     $ 51  
                       

(a)    Excludes acquisition of an additional interest in MPLX Pipe Line Holdings LP.
(b)    Capital expenditures includes amounts related to unconsolidated, partnership operated subsidiaries.





This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MPLX LP via Globenewswire

HUG#1983242

Source: Thomson Reuters ONE (February 3, 2016 - 6:56 AM EST)

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