MPLX LP
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
MPLX$55.91-1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-30.
0001552000-24-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001552000-24-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 170 previous paragraphs and 192 current paragraphs.
117 unchanged; 43 reworded; 32 added; 10 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
•the inability or failure of our joint venture partners to fund their share of operations and development activities;
Current report
•the financing and distribution decisions of joint ventures we do not control;
Current report
•Issued $1.65 billion of aggregate principal amount of 5.50 percent senior notes due 2034 (the “2034 Senior Notes”) to be used to repay, redeem, or otherwise retire some or all of certain series of existing senior notes coming due within the next twelve months, and in the interim for general partnership purposes.
Current report
•Created a newly formed joint venture to strategically combine the Whistler Pipeline and the Rio Bravo Pipeline project (the “Whistler Joint Venture Transaction”). The combined platform connects Permian supply to incremental LNG export markets and supports the development of additional pipeline projects.
Current report
•Our 200 MMcf/d Preakness ll processing plant began operations in July.
Current report
•Announced the acquisition of an additional 20 percent interest in the BANGL natural gas liquids pipeline, bringing our total interest in the pipeline to 45 percent.
Current report
Cost of revenues increased $36 million in the second quarter of 2024 compared to the same period of 2023. The increase is attributable to higher operating costs and repairs and maintenance costs and an increase of $10 million as a result of the consolidation of Torñado in December 2023.
Current report
Purchases - related parties increased $31 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to increased transportation costs in the G&P segment and changes in presentation driven by modification of an agreement with MPC.
Current report
Total revenues and other income increased $495 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to higher pipeline tariff rates within in the L&S segment, higher volumes and higher throughput fee rates within the G&P segment, and incremental revenues from the consolidation of Torñado in December 2023 and the Utica
Current report
Midstream Acquisition that was completed in the first quarter of 2024. The increase also includes a $151 million gain related to the Whistler Joint Venture Transaction, a $25 million benefit from business interruption insurance proceeds and a $20 million gain related to an equity method investment acquisition in the first quarter of 2024. Income from equity method investments also benefited from increased throughput on equity method investment pipeline systems in the 2024 period.
Current report
Cost of revenues increased $99 million in the first six months of 2024 compared to the same period of 2023. This was primarily attributable to higher operating costs and repairs and maintenance costs and an increase of $24 million as a result of the consolidation of Torñado in December 2023.
Current report
Purchased product costs decreased $15 million in the first six months of 2024 compared to the same period of 2023. The decrease was due to lower NGL volumes of $36 million, partially offset by higher NGL prices of $16 million.
Current report
Purchases - related parties increased $42 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to changes in presentation driven by modification of agreements and increased costs from MPC, primarily higher employee costs.
Current report
Depreciation and amortization increased $31 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to incremental depreciation associated with assets acquired in conjunction with the Torñado Acquisition in December 2023 and the Utica Midstream Acquisition in the first quarter of 2024, as well as other assets placed in service subsequent to the second quarter of 2023.
Current report
Service revenue increased $82 million in the second quarter of 2024 compared to the same period of 2023. This was primarily driven by $51 million of higher pipeline tariff rates, as well as other fee escalations and higher pipeline throughput.
Current report
Income from equity method investments increased $178 million in the second quarter of 2024 compared to the same period of 2023. This was primarily driven by a $151 million gain related to the dilution of our ownership interest in connection with the Whistler Joint Venture Transaction, as well as increased throughput on equity method investment pipeline systems.
Current report
Purchases - related parties increased $19 million in the second quarter of 2024 compared to the same period of 2023, primarily due to changes in presentation driven by modification of agreements with MPC.
Current report
Rental income increased $21 million in the first six months of 2024 compared to the same period of 2023. This was primarily driven by fee escalations related to our refining logistics assets.
Current report
Income from equity methods investments increased $196 million in the first six months of 2024 compared to the same period of 2023. This was primarily driven by a $151 million gain related to the dilution of our ownership interest in connection with the Whistler Joint Venture Transaction, as well as increased throughput on equity method investment pipeline systems.
Current report
General and administrative expenses increased $27 million in the first six months of 2024 compared to the same period of 2023, primarily due to increased contractor services costs and higher employee costs, including those from MPC.
Current report
Service revenue increased $45 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to $31 million of incremental revenues from the consolidation of Torñado in December 2023 and an increase of $15 million from the Utica Midstream Acquisition that was completed in the first quarter of 2024.
Current report
Cost of revenues increased $32 million in the second quarter of 2024 compared to the same period of 2023. This increase is attributable to higher operating costs and repairs and maintenance costs in the Rockies and Southwest of $28 million in addition to an increase of $10 million as a result of the consolidation of Torñado in December 2023. The increase was partially offset by lower operating costs and repairs and maintenance costs in the Marcellus during the second quarter of 2024.
Current report
Purchased product costs increased $22 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to higher NGL prices in the Southwest of $34 million partially offset by lower NGL volumes in the Southwest of $15 million.
Current report
Purchases - related parties increased $12 million in the second quarter of 2024 compared to the same period of 2023. The increase is attributable to higher transportation costs in the Southwest.
Current report
Depreciation and amortization increased $19 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to incremental depreciation associated with assets acquired in conjunction with the Torñado Acquisition in December 2023 and the Utica Midstream Acquisition in the first quarter of 2024, as well as other assets placed in service subsequent to the second quarter of 2023.
Current report
Service revenue increased $97 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to $54 million of incremental revenues from the consolidation of Torñado in December 2023 and an increase of $15 million from the Utica Midstream Acquisition that was completed in the first quarter of 2024, as well as higher volumes and higher throughput fee rates across the Marcellus, Rockies and Bakken of $58 million. The increases were partially offset by lower volumes in the Southwest.
Current report
Product related revenue increased $10 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to higher NGL sales volumes in the Rockies and Bakken of $56 million, partially offset by lower NGL sales volumes in the Southwest of $31 million, lower NGL prices across all regions and changes in the fair value of our propane contracts of $12 million.
Current report
Depreciation and amortization increased $39 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to incremental depreciation associated with assets acquired in conjunction with the Torñado Acquisition in December 2023 and the Utica Midstream Acquisition in the first quarter of 2024, as well as other assets placed in service subsequent to the second quarter of 2023.
Current report
The six months ended June 30, 2024 and June 30, 2023 include working capital draws of$95 million and $123 million, respectively.
Current report
On May 20, 2024, MPLX issued $1.65 billion aggregate principal amount of the 2034 Senior Notes in an underwritten public offering. The 2034 Senior Notes were offered at a price to the public of 98.778 percent of par, with interest payable semi-annually in arrears, commencing on December 1, 2024. MPLX intends to use the net proceeds from the issuance of the 2034 Senior Notes to repay, redeem, or otherwise retire some or all of (i) MPLX’s outstanding $1,149 million aggregate principal amount of 4.875 percent senior notes due December 2024, (ii) MarkWest’s outstanding $1 million aggregate principal amount of 4.875 percent senior notes due December 2024 and (iii) MPLX’s outstanding $500 million aggregate principal amount of 4.000 percent senior notes due February 2025, and in the interim may use such net proceeds for general partnership purposes.
Current report
MPLX is party to a loan agreement with MPC (the “MPC Loan Agreement”), which was renewed on July 31, 2024. The MPC Loan Agreement is now scheduled to expire, and borrowings under the loan agreement are scheduled to mature and become due and payable, on July 31, 2029, provided that MPC may demand payment of all or any portion of the outstanding principal amount of the loan, together with all accrued and unpaid interest and other amounts (if any), at any time prior to maturity.
Current report
(1) 2024 periods exclude gain on dilution of ownership interest related to the Whistler Joint Venture Transaction.
Removed paragraphs (10)
Previous report
•Brought our 200 mmcf/d Harmon Creek ll processing plant online in the Marcellus in response to producer demand.
Previous report
•Additionally, on March 26, 2024, we entered into a definitive agreement to strategically combine the Whistler Pipeline and Rio Bravo Pipeline project in a newly formed joint venture. This will expand our Permian natural gas value chain, increasing our footprint in the region for future growth. The transaction is expected to close in the second quarter of 2024, subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions.
Previous report
Succession Planning
Previous report
As previously disclosed, MPC maintains a mandatory retirement policy that, absent a waiver or extension, requires an executive officer to retire from service to the company coincident with, or immediately following, the first of the month after such executive officer reaches age 65 (the "Policy"). Michael J. Hennigan, President and Chief Executive Officer of our general partner, as well as the Chief Executive Officer of MPC, will reach mandatory retirement on August 1, 2024. Accordingly, the MPC Board of Directors, with a focus on the long-term strategic direction of the company, is engaged in appropriate succession planning activities, including, among other customary steps, the review of succession candidates, as well as consideration of any waiver or extension of the Policy respecting Mr. Hennigan.
Previous report
Total revenues and other income increased $133 million in the first quarter of 2024 compared to the same period of 2023. The increase was driven by rate escalations, increased income due to higher throughput from our equity method investments, an increase of $23 million as a result of the consolidation of MarkWest Torñado GP, L.L.C. (“Torñado”) in December 2023 (the “Torñado Acquisition”), and a $43 million increase in Other Income related to business interruption insurance proceeds and a gain related to an equity method investment acquisition. Offsetting these increases were decreases in product sales revenue of $41 million, primarily related to lower NGL prices, and lower pipeline throughput during the first quarter of 2024.
Previous report
Cost of revenues increased $63 million in the first quarter of 2024 compared to the same period of 2023. This increase is attributable to higher operating costs and repairs and maintenance costs of $42 million in addition to $14 million of incremental costs related to the consolidation of Torñado in December 2023.
Previous report
Depreciation and amortization increased $21 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to incremental depreciation associated with assets acquired in conjunction with the Torñado Acquisition, as well as other assets placed in service subsequent to the first quarter of 2023.
Previous report
Income from equity method investments increased $18 million in the first quarter of 2024 compared to the same period of 2023. This was primarily driven by increased throughput on equity method investment pipeline systems.
Previous report
Service revenue increased $52 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to higher volumes and higher throughput fee rates across all regions of $46 million in addition to an increase of $23 million driven by incremental revenues from the consolidation of Torñado in December 2023.
Previous report
Depreciation and amortization increased $20 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to incremental depreciation associated with assets acquired in conjunction with the Torñado Acquisition in December 2023, as well as other assets placed in service subsequent to the first quarter of 2023.
Reworded paragraphs (43)
Previous wording
•environmental, social and governance, which we refer to as “ESG,” plans and goals, including those related to greenhouse gas emissions and intensity, biodiversity, diversity, equity and inclusion and ESG reporting;
Current wording
•environmental, social and governance (“ESG”),” plans and goals, including those related to greenhouse gas emissions and intensity, biodiversity, diversity, equity and inclusion and ESG reporting;
Previous wording
Significant financial highlights for the three months ended March 31, 2024 and March 31, 2023 are shown in the chart below. Refer to the Results of Operations, the Liquidity and Capital Resources, and Non-GAAP Financial Information sections for further information.
Current wording
Significant financial highlights for the three months ended June 30, 2024 and June 30, 2023 are shown in the chart below. Refer to the Non-GAAP Financial Information, the Results of Operations and the Liquidity and Capital Resources sections for further information.
Previous wording
•Returned $951 million of capital to unitholders in the three months ended March 31, 2024, via distributions and unit repurchases.
Current wording
•Returned $949 million and $1,900 million of capital to unitholders in the three and six months ended June 30, 2024, via distributions and unit repurchases.
Previous wording
•Announced a first quarter 2024 distribution of $0.850 per common unit.
Current wording
•Announced a second quarter 2024 distribution of $0.850 per common unit.
Previous wording
We believe that the presentation of Adjusted EBITDA, DCF, Adjusted FCF and Adjusted FCF after distributions provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and DCF are net income and net cash provided by operating activities while the GAAP measure most directly comparable to Adjusted FCF and Adjusted FCF after distributions is net cash provided by operating activities. These non-GAAP financial measures should not be considered alternatives to GAAP net income or net cash provided by operating activities as they have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because non-GAAP financial measures may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of Adjusted EBITDA and DCF to their most directly comparable measures calculated and presented in accordance with GAAP, see Results of Operations. For a reconciliation of Adjusted FCF and Adjusted FCF after distributions to their most directly comparable measure calculated and presented in accordance with GAAP, see Liquidity and Capital Resources.
Current wording
We believe that the presentation of Adjusted EBITDA, DCF, Adjusted FCF and Adjusted FCF after distributions provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and DCF are net income and net cash provided by operating activities while the GAAP measure most directly comparable to Adjusted FCF and Adjusted FCF after distributions is net cash provided by operating activities. These non-GAAP financial measures should not be considered alternatives to net income or net cash provided by operating activities as they have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because non-GAAP financial measures may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of Adjusted EBITDA and DCF to their most directly comparable measures calculated and presented in accordance with GAAP, see Results of Operations. For a reconciliation of Adjusted FCF and Adjusted FCF after distributions to their most directly comparable measure calculated and presented in accordance with GAAP, see Liquidity and Capital Resources.
Previous wording
•Progressed our long-term growth strategy through the acquisition of additional ownership interest in existing joint ventures and gathering assets in the Utica basin (“Utica Midstream Acquisition”).
Current wording
Total revenues and other income increased $362 million in the second quarter of 2024 compared to the same period of 2023. The increase was driven by higher pipeline tariffs and higher throughput from equity method investments in the L&S segment, higher NGL prices and volumes within the G&P segment, and incremental revenues from the consolidation of MarkWest Torñado GP, L.L.C. (“Torñado”) in December 2023 (the “Torñado Acquisition”) and the acquisition of additional ownership interest in existing joint ventures and gathering assets in the Utica basin (the “Utica Midstream Acquisition”) that was completed in the first quarter of 2024. The 2024 increase also includes a $151 million gain related to the dilution of our ownership interest in connection with the Whistler Joint Venture Transaction.
Previous wording
Purchased product costs decreased $37 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes of $23 million and lower NGL prices of $18 million.
Current wording
Purchased product costs increased $22 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to higher NGL prices of $34 million partially offset by lower NGL volumes of $15 million.
Previous wording
General and administrative expenses increased $17 million in the first three months of 2024 compared to the same period of 2023, due to increased contractor services costs and increased costs from MPC, primarily higher employee costs.
Current wording
General and administrative expenses increased $18 million in the second quarter of 2024 compared to the same period of 2023, due to increased contractor services costs and higher employee costs from MPC.
Previous wording
General and administrative expenses increased $20 million in the first three months of 2024 compared to the same period of 2023, due to increased contractor services costs and higher employee costs from MPC.
Current wording
General and administrative expenses increased $38 million in the first six months of 2024 compared to the same period of 2023, due to increased contractor services costs and higher employee costs from MPC.
Previous wording
The tables below present information about Segment Adjusted EBITDA for the reported segments for the three months ended March 31, 2024 and March 31, 2023.
Current wording
The tables below present information about Segment Adjusted EBITDA for the reported segments for the three and six months ended June 30, 2024 and June 30, 2023.
Previous wording
First Quarter L&S Segment Financial Highlights (in millions)
Current wording
Second Quarter L&S Segment Financial Highlights (in millions)
Previous wording
(1) The three months ended March 31, 2024 includes a contribution of $92 million to a joint venture (“Dakota Access”) that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, collectively referred to as the Bakken Pipeline system or DAPL, to fund our share of a debt repayment by the joint venture.
Current wording
(1) The six months ended June 30, 2024 includes a contribution of $92 million to a joint venture (“Dakota Access”) that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects (collectively the “Bakken Pipeline system”) to fund our share of a debt repayment by the joint venture.
Previous wording
Rental income increased $12 million in the first quarter of 2024 compared to the same period of 2023. This was primarily driven by refining logistics fee escalations.
Current wording
Other income increased $12 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to changes in presentation driven by modification of an agreement with MPC in the first quarter of 2024.
Previous wording
Service revenue increased $34 million in the first quarter of 2024 compared to the same period of 2023. This was primarily driven by $58 million of higher pipeline tariff rates, partially offset by a $22 million decrease related to lower pipeline throughput.
Current wording
Service revenue increased $116 million in the first six months of 2024 compared to the same period of 2023. This was primarily driven by $109 million of higher pipeline tariff rates and other fee escalations, partially offset by a $16 million decrease related to lower pipeline throughput.
Previous wording
Other income increased $36 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to business interruption insurance proceeds and changes in presentation driven by modification of an agreement with MPC in the first quarter of 2024.
Current wording
Other income increased $48 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to business interruption insurance proceeds and changes in presentation driven by modification of an agreement with MPC in the first quarter of 2024.
Previous wording
Purchases - related parties increased $23 million in the first quarter of 2024 compared to the same period of 2023, primarily due to changes in presentation driven by modification of an agreement with MPC and increased employee costs from MPC.
Current wording
Purchases - related parties increased $42 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to changes in presentation driven by modification of agreements with MPC and increased costs from MPC, primarily higher employee costs.
Previous wording
First Quarter G&P Segment Financial Highlights (in millions)
Current wording
Second Quarter G&P Segment Financial Highlights (in millions)
Previous wording
Product related revenue decreased $41 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to lower NGL prices across all regions of $45 million and lower NGL volumes in the Southwest of $20 million, partially offset by higher NGL volumes in the Rockies and Bakken of $26 million.
Current wording
Product related revenue increased $51 million in the second quarter of 2024 compared to the same period of 2023. This was primarily due to higher NGL prices across all regions of $42 million and higher NGL sales volumes in the Rockies and Bakken of $30 million, partially offset by lower NGL sales volumes in the Southwest of $11 million.
Previous wording
Other income increased $19 million in the first quarter of 2024 compared to the same period of 2023 primarily due to a gain on an equity method investment in the first quarter of 2024.
Current wording
Other income decreased $18 million in the second quarter of 2024 compared to the same period of 2023 primarily due to a gain on disposal of assets recognized in the second quarter of 2023.
Previous wording
Income from equity method investments increased $5 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to higher volumes and higher throughput fee rates in the Utica and Marcellus of $13 million, partially offset by a $10 million decrease from the consolidation of operations as a result of the consolidation of Torñado in December 2023.
Current wording
Income from equity method investments increased $7 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to higher volumes and higher throughput fee rates in the Utica and Marcellus of $20 million in addition to incremental income from the Utica Midstream Acquisition that was completed in the first quarter of 2024, partially offset by a $19 million decrease from the consolidation of Torñado in December 2023.
Previous wording
Cost of revenues increased $53 million in the first quarter of 2024 compared to the same period of 2023. This increase is attributable to higher operating costs and repairs and maintenance costs in the Marcellus, Rockies and Southwest of $42 million in addition to an increase of $14 million as a result of the consolidation of Torñado in December 2023.
Current wording
Cost of revenues increased $85 million in the first six months of 2024 compared to the same period of 2023. This increase is primarily attributable to higher operating costs and repairs and maintenance costs in the Marcellus, Rockies and Southwest of $64 million in addition to an increase of $24 million as a result of the consolidation of Torñado in December 2023.
Previous wording
Purchased product costs decreased $37 million in the first quarter of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes in the Southwest of $23 million and lower NGL prices in the Southwest of $18 million.
Current wording
Purchased product costs decreased $15 million in the first six months of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes in the Southwest of $36 million partially offset by higher NGL prices in the Southwest of $16 million.
Previous wording
Purchases - related parties decreased $12 million in the first quarter of 2024 compared to the same period of 2023. The decrease is attributable to lower pricing in the Rockies partially offset by increased employee costs from MPC.
Current wording
Purchases - related parties was flat in the first six months of 2024 compared to the same period of 2023. Lower pricing in the Rockies was offset by higher transportation costs in the Southwest and increased employee costs from MPC.
Previous wording
(4) Purity ethane makes up approximately 255 mbpd and 246 mbpd of MPLX LP consolidated total fractionated products for the three months ended March 31, 2024 and March 31, 2023, respectively. Purity ethane makes up approximately 264 mbpd and 253 mbpd of MPLX LP Operated total fractionated products for the three months ended March 31, 2024 and March 31, 2023, respectively.
Current wording
(4) Purity ethane makes up approximately 272 mbpd and 226 mbpd of MPLX LP consolidated total fractionated products for the three months ended June 30, 2024 and June 30, 2023, respectively, and approximately 264 mbpd and 236 mbpd of total fractionated products for the six months ended June 30, 2024 and June 30, 2023, respectively. Purity ethane makes up approximately 293 mbpd and 232 mbpd of MPLX LP Operated total fractionated products for the three months ended June 30, 2024 and June 30, 2023, respectively, and approximately 278 mbpd and 242 mbpd of total fractionated products for the six months ended June 30, 2024 and June 30, 2023, respectively.
Previous wording
Our cash and cash equivalents were $385 million at March 31, 2024 and $1,048 million at December 31, 2023. The change in cash and cash equivalents was due to the factors discussed below. Net cash provided by (used in) operating activities, investing activities and financing activities were as follows:
Current wording
Our cash and cash equivalents were $2,501 million at June 30, 2024 and $1,048 million at December 31, 2023. The change in cash and cash equivalents was due to the factors discussed below. Net cash provided by (used in) operating activities, investing activities and financing activities were as follows:
Previous wording
Net cash provided by operating activities increased $64 million in the first three months of 2024 compared to the same period of 2023, primarily due to improved results from operations during the first three months of 2024 compared to the same period of 2023.
Current wording
Net cash provided by operating activities increased $192 million in the first six months of 2024 compared to the same period of 2023, primarily due to improved results from operations during the first six months of 2024 compared to the same period of 2023.
Previous wording
Net cash used in investing activities increased $776 million in the first three months of 2024 compared to the same period of 2023, primarily due to the Utica Midstream Acquisition in the first quarter of 2024, as well as higher capital spending. The first quarter of 2024 also reflects higher contributions to equity method investments including a $92 million contribution to Dakota Access to fund our share of a scheduled debt repayment by the joint venture.
Current wording
Net cash used in investing activities increased $619 million in the first six months of 2024 compared to the same period of 2023, primarily due to the Utica Midstream Acquisition in the first quarter of 2024, as well as higher capital spending. The first six months of 2024 also reflects higher contributions to equity method investments, including a $92 million contribution to Dakota Access to fund our share of a scheduled debt repayment by the joint venture. The increases were partially offset by a $134 million cash distribution received, recorded as a return of capital, in connection with the Whistler Joint Venture Transaction.
Previous wording
Net cash used in financing activities increased $106 million in the first three months of 2024 compared to the same period of 2023. The increase was primarily due to the return of capital to unitholders through the unit repurchase program during the first three months of 2024, as well as higher distributions paid to unitholders of $55 million during the first three months of 2024 compared to the same period of 2023, as a result of the 10 percent increase in our base distribution effective for the third quarter of 2023.
Current wording
Net cash used in financing activities decreased $1,363 million in the first six months of 2024 compared to the same period of 2023. The decrease was primarily due to proceeds from the issuance of $1.65 billion aggregate principal amount of 2034 Senior Notes during the first six months of 2024. This decrease was partially offset by the return of capital to unitholders through the unit repurchase program, as well as higher distributions paid to unitholders of $130 million during the first six months of 2024 compared to the same period of 2023, as a result of the 10 percent increase in our base distribution effective for the third quarter of 2023.
Previous wording
The following table provides a reconciliation of Adjusted FCF and Adjusted FCF after distributions from net cash provided by operating activities for the three months ended March 31, 2024 and March 31, 2023.
Current wording
The following table provides a reconciliation of Adjusted FCF and Adjusted FCF after distributions from net cash provided by operating activities for the three and six months ended June 30, 2024 and June 30, 2023.
Previous wording
(1) Thethree months ended March 31, 2024 and March 31, 2023 include working capital builds of$62 million and $48 million, respectively.
Current wording
(1) Thethree months ended June 30, 2024 and June 30, 2023 include working capital draws of$166 million and $156 million, respectively.
Previous wording
(2) The three months ended March 31, 2024 includes the impact of $622 million, net of cash acquired, related to the Utica Midstream Acquisition anda contribution of $92 million to Dakota Access to fund our share of a debt repayment by the joint venture.
Current wording
(2) Thethree and six months ended June 30, 2024 include the impact of a $134 million cash distribution received in connection with the Whistler Joint Venture Transaction. Thesix months ended June 30, 2024 includes the impact of $622 million, net of cash acquired, related to the Utica Midstream Acquisition anda contribution of $92 million to Dakota Access to fund our share of a debt repayment by the joint venture.
Previous wording
Our liquidity totaled $3.9 billion at March 31, 2024 consisting of:
Current wording
Our liquidity totaled $6.0 billion at June 30, 2024 consisting of:
Previous wording
On August 2, 2022, we announced the board authorization for the repurchase of up to $1.0 billion of MPLX common units held by the public. The authorization has no expiration date. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, tender offers, accelerated unit repurchases or open market solicitations for units, some of which may be effected through Rule 10b5-1 plans. The timing and amount of repurchases depends upon several factors, including market and business conditions, and repurchases may be suspended, discontinued, or restarted at any time.
Current wording
On August 2, 2022, we announced the board authorization for the repurchase of up to $1.0 billion of MPLX common units held by the public. The authorization has no expiration date. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated unit repurchases, tender offers or open market solicitations for units, some of which may be effected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be suspended, discontinued, or restarted at any time.
Previous wording
As of March 31, 2024, we had $771 million remaining under the unit repurchase authorization.
Current wording
As of June 30, 2024, we had $696 million remaining under the unit repurchase authorization.
Previous wording
During the three months ended March 31, 2024, certain Series A preferred unitholders exercised their rights to convert their Series A preferred units into approximately 10 million common units. Approximately 17 million Series A preferred units remain outstanding as of March 31, 2024. Series A preferred unitholders exercised their rights to convert an additional 5 million Series A preferred units into common units subsequent to March 31, 2024, but prior to the date the financial statements were filed.
Current wording
During the three and six months ended June 30, 2024, certain Series A preferred unitholders exercised their rights to convert their Series A preferred units into approximately 11 million common units and 21 million common units, respectively. Approximately 6 million Series A preferred units remain outstanding as of June 30, 2024.
Previous wording
On April 23, 2024, MPLX declared a cash distribution for the first quarter of 2024, totaling $864 million, or $0.850 per common unit. This distribution will be paid on May 13, 2024 to common unitholders of record on May 3, 2024. Although our partnership agreement requires that we distribute all of our available cash (as defined in the partnership agreement) each quarter, we do not otherwise have a legal obligation to distribute any particular amount per common unit. This rate will also be received by Series A preferred unitholders.
Current wording
On July 30, 2024, MPLX declared a cash distribution for the second quarter of 2024, totaling $868 million, or $0.850 per common unit. This distribution will be paid on August 16, 2024 to common unitholders of record on August 9, 2024. Although our partnership agreement requires that we distribute all of our available cash (as defined in the partnership agreement) each quarter, we do not otherwise have a legal obligation to distribute any particular amount per common unit. This rate will also be received by Series A preferred unitholders.
Previous wording
The allocation of total cash distributions is as follows for the three months ended March 31, 2024 and March 31, 2023. MPLX’s distributions are declared subsequent to quarter end; therefore, the following table represents total cash distributions applicable to the period in which the distributions were earned.
Current wording
The allocation of total cash distributions is as follows for the three and six months ended June 30, 2024 and June 30, 2023. MPLX’s distributions are declared subsequent to quarter end; therefore, the following table represents total cash distributions applicable to the period in which the distributions were earned.
Previous wording
(1) The three months ended March 31, 2023 includes the portion of the $21 million distribution paid to the Series B preferred unitholders on February 15, 2023 that was earned during the period prior to redemption.
Current wording
(1) The six months ended June 30, 2023 includes the portion of the $21 million distribution paid to the Series B preferred unitholders on February 15, 2023 that was earned during the period prior to redemption.
Previous wording
MPLX’s initial capital investment plan for 2024 is $1.1 billion, net of reimbursements, which includes growth capital of $950 million and maintenance capital of $150 million. The capital outlook excludes a $92 million equity method investment contribution made in March 2024 for the repayment of MPLX’s share of the Dakota Access joint venture’s debt. The contribution reduced our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement on April 1, 2024 when Dakota Access made its scheduled debt payment. Growth capital expenditures and investments in affiliates during the three months ended March 31, 2024 were primarily for gas processing plants in the Marcellus and Permian basins and gathering projects in the Marcellus, Utica and Permian basins. We continuously evaluate our capital plan and make changes as conditions warrant.
Current wording
MPLX’s initial capital investment plan for 2024 is $1.1 billion, net of reimbursements, which includes growth capital of $950 million and maintenance capital of $150 million. The capital outlook excludes a $92 million equity method investment contribution made in March 2024 for the repayment of MPLX’s share of the Dakota Access joint venture’s debt, which reduced our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement. Growth capital expenditures and investments in affiliates during the six months ended June 30, 2024 were primarily for gas processing plants in the Marcellus and Permian basins and gathering projects in the Marcellus, Utica and Permian basins. We continuously evaluate our capital plan and make changes as conditions warrant.
Previous wording
(1) Total growth capital expenditures exclude $622 million of acquisitions, net of cash acquired, for the three months ended March 31, 2024.
Current wording
(1) Total growth capital expenditures for the six months ended June 30, 2024 exclude $622 million of acquisitions, net of cash acquired, and a $134 million cash distribution received in connection with the Whistler Joint Venture Transaction.
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