MPLX LP
For the period ended Sep 30, 2024. Filed Nov 5, 2024.
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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.
Sep 30, 2024 · Filed Nov 5, 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 2024-06-30; filed 2024-08-06.
0001552000-24-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0001552000-24-000033
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 192 previous paragraphs and 205 current paragraphs.
122 unchanged; 45 reworded; 36 added; 22 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 17 previous and 20 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 (36)
Current report
•Announced a third quarter 2024 distribution of $0.9565 per common unit, representing a 12.5% increase over the prior quarter’s distribution.
Current report
•Executing our growth strategy in the Northeast with the addition of Harmon Creek III, a 300 MMcf/d processing plant and 40 mbpd de-ethanizer; expected to bring total Northeast processing and fractionation capacity to 8.1 billion cubic feet per day and 800 mbpd, respectively, in the second half of 2026.
Current report
(1) In August 2023, a naphtha release and resulting fire occurred at our Garyville Tank Farm resulting in the loss of four storage tanks with a combined shell capacity of 894 thousand barrels (“Garyville Incident”). We incurred $63 million of incident response costs during the three and nine months ended September 30, 2023.
Current report
(2) We incurred $63 million of Garyville Incident response costs during the three and nine months ended September 30, 2023.
Current report
Cost of revenues increased $37 million in the third quarter of 2024 compared to the same period of 2023. The increase is primarily due to higher volumes and is attributable to costs that are largely offset in revenues. The third quarter of 2024 also includes an increase of $9 million as a result of the consolidation of Torñado in December 2023 as well as higher project-related spending.
Current report
Purchases - related parties decreased $40 million in the third quarter of 2024 compared to the same period of 2023. The decrease was driven by $63 million of Garyville Incident response costs recognized in the third quarter of 2023. The decrease was partially offset by changes in presentation driven by modification of an agreement with MPC in the first quarter of 2024 and higher employee costs from MPC.
Current report
Cost of revenues increased $136 million in the first nine months of 2024 compared to the same period of 2023. The increase is primarily due to higher volumes and is attributable to costs that are largely offset in revenues. The increase also includes $33 million as a result of the consolidation of Torñado in December 2023 as well as higher project-related spending.
Current report
Purchased product costs decreased $86 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes of $87 million and lower NGL prices of $8 million, partially offset by a change of $9 million due to changes in the fair value of an embedded derivative in a natural gas purchase commitment.
Current report
Purchases - related parties increased $2 million in the first nine months of 2024 compared to the same period of 2023. Higher costs in the first nine months of 2024 related to changes in presentation driven by the modification of an agreement with MPC in the first quarter of 2024 and higher costs from MPC, including employee costs, were largely offset by a decrease related to $63 million of Garyville Incident response costs recognized in the 2023 period.
Current report
Depreciation and amortization increased $52 million in the first nine 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 third quarter of 2023.
Current report
Service revenue increased $28 million in the third quarter of 2024 compared to the same period of 2023. This was primarily driven by $18 million of higher pipeline tariff rates and other fee escalations, in addition to changes in presentation driven by agreement modifications.
Current report
Sales-type lease revenue decreased $11 million in the third quarter of 2024 compared to the same period of 2023. This was primarily due to changes in the presentation of lease income between service revenue, rental income and sales-type lease revenue due to modifications of lease contracts.
Current report
Income from equity method investments decreased $15 million in the third quarter of 2024 compared to the same period of 2023. This was primarily driven by financing costs incurred at the joint venture level. See Supplemental Information on Equity Method Investments for additional information regarding the results of our equity method investments.
Current report
Purchases - related parties decreased $50 million in the third quarter of 2024 compared to the same period of 2023, primarily due to Garyville Incident response costs of $63 million recognized in the third quarter of 2023, partially offset by changes in presentation driven by modification of an agreement with MPC in the first quarter of 2024 and higher employee costs from MPC.
Current report
Service revenue increased $144 million in the first nine months of 2024 compared to the same period of 2023. This was primarily driven by $150 million of higher pipeline tariff rates and other fee escalations, changes in presentation driven by agreement modifications and additional marine equipment, partially offset by $12 million due to lower throughput.
Current report
Sales-type lease revenue decreased $20 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to changes in the presentation of lease income between service revenue, rental income and sales-type lease revenue due to modifications of lease contracts.
Current report
Cost of revenues increased $15 million in the first nine months of 2024 compared to the same period of 2023. This is primarily due to higher project-related spending. The increase was partially offset by changes in presentation driven by agreement modifications of $10 million.
Current report
Purchases - related parties decreased $8 million in the first nine months of 2024 compared to the same period of 2023, primarily due to Garyville Incident response costs of $63 million recognized in the 2023 period, partially offset by changes in presentation driven by agreement modifications and $15 million of higher employee costs from MPC.
Current report
Cost of revenues increased $27 million in the third quarter of 2024 compared to the same period of 2023. This increase is primarily due to higher volumes across all regions and is attributable to costs that are largely offset in Service revenue and Product related revenue. Cost of revenues also increased $9 million as a result of the consolidation of Torñado in December 2023 and increased $5 million from the Utica Midstream acquisition that was completed in the first quarter of 2024.
Current report
Purchased product costs decreased $71 million in the third quarter of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes in the Southwest of $40 million, lower NGL prices in the Southwest of $24 million and a $7 million decrease in the fair value of an embedded derivative in a natural gas purchase commitment.
Current report
Cost of revenues increased $112 million in the first nine months of 2024 compared to the same period of 2023. This increase is primarily due to higher volumes in the Rockies, Bakken and Marcellus and is attributable to costs that are largely offset in Service revenue and Product related revenue. Cost of revenues also increased $33 million as a result of the consolidation of Torñado in December 2023 and increased $8 million from the Utica Midstream Acquisition that was completed in the first quarter of 2024.
Current report
Purchased product costs decreased $86 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes in the Southwest of $87 million and lower NGL prices in the Southwest of $8 million, partially offset by an increase of $9 million due to changes in the fair value of an embedded derivative in a natural gas purchase commitment.
Current report
Depreciation and amortization increased $58 million in the first nine 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 third quarter of 2023.
Current report
Supplemental Information on Equity Method Investments
Current report
The following table presents MPLX’s income (loss) from equity method investments for the three and nine months ended September 30, 2024 and September 30, 2023:
Current report
(1) In May 2024, MPLX completed the Whistler Joint Venture Transaction, which resulted in the formation of a new entity, WPC Parent, LLC. Results include the equity method investment income of our interest in Whistler Pipeline, LLC, prior to the transaction date, and results of the equity method investment income of our ownership in WPC Parent, LLC, subsequent to the transaction date. The nine months ended September 30, 2024 include a gain of $151 million related to the dilution of our ownership interest in connection with the Whistler Joint Venture Transaction.
Current report
The following table presents the impact of equity method investment distributions and other adjustments included in MPLX’s EBITDA for the three and nine months ended September 30, 2024 and September 30, 2023:
Current report
(1) In May 2024, MPLX completed the Whistler Joint Venture Transaction, which resulted in the formation of a new entity, WPC Parent, LLC. Results include the equity method investment distributions and adjustments of our interest in Whistler Pipeline, LLC, prior to the transaction date, and results of the equity method investment distributions and adjustments of our ownership in WPC Parent, LLC, subsequent to the transaction date.
Current report
We participate in joint ventures, which, in turn, also invest in capital projects. Certain joint ventures require that we fund our proportionate share of capital expenditures through contributions to the joint venture, while others finance the projects at the joint venture level. Capital contributions will depend upon the joint ventures’ capital requirements, including funding capital projects or repayment of long-term obligations.
Current report
Growth capital projects funded through debt at the joint venture level or through cash from operations of the joint venture do not require contributions by us. Our pro-rata share of these growth capital projects for our equity method investments are shown in the table below.
Current report
(1) Includes growth capital for Matterhorn Express Pipeline.
Current report
(2) Disclosed amounts include growth capital related to WPC Parent, LLC, including the ADCC Pipeline lateral, Rio Bravo Pipeline, Whistler Pipeline, and Blackcomb Pipeline, in addition to MPLX’s 12.5 percent direct ownership interest in the Blackcomb Pipeline.
Current report
Debt at the joint venture level is typically secured by the assets owned by the joint venture and, unless otherwise noted, is non-recourse to MPLX other than with respect to our equity method investment. At September 30, 2024, debt held by our unconsolidated joint ventures based on our equity ownership percentage was $1.6 billion.
Current report
Cash Commitments
Current report
Tax Matters
Current report
Our U.S. federal income tax returns for the years 2019 through 2022 are currently under examination by the Internal Revenue Service.
Removed paragraphs (22)
Previous 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.
Previous 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.
Previous report
•Announced a second quarter 2024 distribution of $0.850 per common unit.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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 with MPC and increased costs from MPC, primarily higher employee costs.
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
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 report
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 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.
Previous report
The six months ended June 30, 2024 and June 30, 2023 include working capital draws of$95 million and $123 million, respectively.
Previous report
Contractual Cash Obligations
Reworded paragraphs (45)
Previous wording
•the imposition of windfall profit taxes or maximum margin penalties on companies operating in the energy industry in California or other jurisdictions; and
Current wording
•the imposition of windfall profit taxes, maximum margin penalties or minimum inventory requirements on companies operating in the energy industry in California or other jurisdictions; and
Previous 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.
Current wording
•Returned $949 million and $2,849 million of capital to unitholders in the three and nine months ended September 30, 2024, via distributions and unit repurchases.
Previous wording
•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 wording
•Acquired an additional 20 percent interest in the BANGL natural gas liquids pipeline, bringing our interest in the pipeline to 45 percent.
Previous wording
•Our 200 MMcf/d Preakness ll processing plant began operations in July.
Current wording
•Our 200 MMcf/d Preakness II processing plant began operations in July.
Previous 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.
Current wording
Total revenues and other income increased $60 million in the third quarter of 2024 compared to the same period of 2023. The increase was driven by higher pipeline tariff rates and other fee escalations, as well as 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 increases were partially offset with a $33 million decrease in product related revenue as a result of lower NGL prices and sales volumes within the G&P segment.
Previous 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.
Current wording
Purchased product costs decreased $71 million in the third quarter of 2024 compared to the same period of 2023. This was primarily due to lower NGL volumes of $40 million, lower NGL prices of $24 million and a $7 million decrease in the fair value of an embedded derivative in a natural gas purchase commitment.
Previous wording
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 wording
Total revenues and other income increased $555 million in the first nine 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 throughput fee rates within the G&P segment, and incremental revenues from the consolidation of Torñado in December 2023 and the Utica Midstream Acquisition that was completed in the first quarter of 2024. The increase also includes a $151 million gain related to the strategic transaction combining the Whistler and Rio Bravo natural gas assets that was completed in the second quarter of 2024 (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.
Previous 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.
Current wording
General and administrative expenses increased $43 million in the first nine months of 2024 compared to the same period of 2023, due to increased contractor service 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 and six months ended June 30, 2024 and June 30, 2023.
Current wording
The tables below present information about Segment Adjusted EBITDA for the reported segments for the three and nine months ended September 30, 2024 and September 30, 2023.
Previous wording
Second Quarter L&S Segment Financial Highlights (in millions)
Current wording
Third Quarter L&S Segment Financial Highlights (in millions)
Previous 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.
Current wording
(1) The nine months ended September 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 to fund our share of a debt repayment by the joint venture.
Previous 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.
Current wording
Other income increased $18 million in the third 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
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 wording
Rental income increased $28 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to $29 million of fee escalations related to our refining logistics assets, partially offset by changes in presentation driven by agreement modifications.
Previous wording
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 wording
Income from equity methods investments increased $181 million in the first nine 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. These increases were partially offset by higher financing costs incurred at the joint venture level. See Supplemental Information on Equity Method Investments for additional information regarding the results of our equity method investments.
Previous 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.
Current wording
Other income increased $66 million in the first nine months 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 and business interruption insurance proceeds.
Previous wording
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 wording
General and administrative expenses increased $29 million in the first nine months of 2024 compared to the same period of 2023, primarily due to increased contractor service costs and higher employee costs, including those from MPC.
Previous wording
Second Quarter G&P Segment Financial Highlights (in millions)
Current wording
Third Quarter G&P Segment Financial Highlights (in millions)
Previous wording
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 wording
Service revenue increased $68 million in the third quarter of 2024 compared to the same period of 2023. This was primarily due to $39 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 $21 million. The increases were partially offset by lower volumes in the STACK Shale basin in the Southwest.
Previous wording
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 wording
Product related revenue decreased $33 million in the third quarter of 2024 compared to the same period of 2023. This was primarily due to lower NGL prices in the Southwest of $31 million and lower NGL sales volumes in the Southwest of $20 million, partially offset by changes in the fair value of our propane contracts of $11 million and higher NGL sales volumes in the Rockies of $7 million.
Previous wording
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 wording
Depreciation and amortization increased $19 million in the third quarter of 2024 compared to the same period of 2023. This was primarily due to incremental depreciation associated with assets acquired in 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 third quarter of 2023.
Previous wording
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 wording
Service revenue increased $165 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to $93 million of incremental revenues from the consolidation of Torñado in December 2023, an increase of $30 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 $78 million. The increases were partially offset by lower volumes in the STACK Shale basin in the Southwest.
Previous 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.
Current wording
Product related revenue decreased $23 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to lower NGL sales volumes in the Southwest of $51 million and lower NGL prices in the Southwest and Rockies of $33 million, partially offset by higher NGL volumes in the Rockies and Bakken of $63 million.
Previous 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.
Current wording
Income from equity method investments increased $12 million in the first nine 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 $22 million in addition to incremental income from the Utica Midstream Acquisition that was completed in the first quarter of 2024, partially offset by a $26 million decrease from the consolidation of Torñado in December 2023. See Supplemental Information on Equity Method Investments for additional information regarding the results of our equity method investments.
Previous 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.
Current wording
Purchases - related parties increased $10 million in the first nine months of 2024 compared to the same period of 2023. This was primarily due to increased employee costs from MPC and higher transportation costs in the Southwest.
Previous 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.
Current wording
(4) Purity ethane makes up approximately 246 mbpd of MPLX LP consolidated total fractionated products for both of the three months ended September 30, 2024 and September 30, 2023, and approximately 258 mbpd and 240 mbpd of total fractionated products for the nine months ended September 30, 2024 and September 30, 2023, respectively. Purity ethane makes up approximately 262 mbpd and 254 mbpd of MPLX LP Operated total fractionated products for the three months ended September 30, 2024 and September 30, 2023, respectively, and approximately 273 mbpd and 246 mbpd of total fractionated products for the nine months ended September 30, 2024 and September 30, 2023, respectively.
Previous 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:
Current wording
Our cash and cash equivalents were $2,426 million at September 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 $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.
Current wording
Net cash provided by operating activities increased $363 million in the first nine months of 2024 compared to the same period of 2023, primarily due to improved results from operations during the first nine months of 2024 compared to the same period of 2023.
Previous 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.
Current wording
Net cash used in investing activities increased $919 million in the first nine months of 2024 compared to the same period of 2023, primarily due to the Utica Midstream Acquisition in the first quarter of 2024 and higher capital spending. The first nine months of 2024 also reflects the acquisition of additional interest in BANGL, LLC in the third quarter of 2024 as well as 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 in the second quarter of 2024, recorded as a return of capital, in connection with the Whistler Joint Venture Transaction.
Previous 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.
Current wording
Net cash used in financing activities decreased $1,212 million in the first nine 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 nine months of 2024. This decrease was partially offset by the return of capital to unitholders through unit repurchases of $226 million, as well as higher distributions paid to unitholders of $204 million during the first nine 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 and six months ended June 30, 2024 and June 30, 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 nine months ended September 30, 2024 and September 30, 2023.
Previous wording
(1) Thethree months ended June 30, 2024 and June 30, 2023 include working capital draws of$166 million and $156 million, respectively.
Current wording
(1) Thethree months ended September 30, 2024 and September 30, 2023 include working capital builds of$40 million and $47 million, respectively. The nine months ended September 30, 2024 and September 30, 2023 include working capital draws of$55 million and $76 million, respectively.
Previous 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.
Current wording
(2) Thethree and nine months ended September 30, 2024 include $210 million and $18 million related to the acquisition of additional interests in BANGL, LLC and Wink to Webster Pipeline LLC, respectively. Thenine months ended September 30, 2024 include a $134 million cash distribution received in connection with the Whistler Joint Venture Transaction,$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 $6.0 billion at June 30, 2024 consisting of:
Current wording
Our liquidity totaled $5.9 billion at September 30, 2024 consisting of:
Previous wording
As of June 30, 2024, we had $696 million remaining under the unit repurchase authorization.
Current wording
As of September 30, 2024, we had $620 million remaining under the unit repurchase authorization.
Previous 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.
Current wording
During the nine months ended September 30, 2024, certain Series A preferred unitholders exercised their rights to convert their Series A preferred units into approximately 21 million common units. Approximately 6 million Series A preferred units remain outstanding as of September 30, 2024.
Previous 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.
Current wording
On October 29, 2024, MPLX declared a cash distribution for the third quarter of 2024, totaling $974 million, or $0.9565 per common unit. This distribution will be paid on November 15, 2024, to common unitholders of record on November 8, 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 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.
Current wording
The allocation of total cash distributions is as follows for the three and nine months ended September 30, 2024 and September 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 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.
Current wording
(1) The nine months ended September 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
Our operations are capital intensive, requiring investments to expand, upgrade, enhance or maintain existing operations and to meet environmental and operational regulations. Our capital requirements consist of growth capital expenditures and maintenance capital expenditures. Growth capital expenditures are those incurred for acquisitions or capital improvements that we expect will increase our operating capacity for volumes gathered, processed, transported or fractionated, decrease operating expenses within our facilities or increase operating income over the long term. Examples of growth capital expenditures include costs to develop or acquire additional pipeline, terminal, processing or storage capacity. In general, growth capital includes costs that are expected to generate additional or new cash flow for MPLX. In contrast, maintenance capital expenditures are those made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets and to extend their useful lives, or other capital expenditures that are incurred in maintaining existing system volumes and related cash flows.
Current wording
Our operations are capital intensive, requiring investments to expand, upgrade, enhance or maintain existing operations and to meet environmental and operational regulations. Our capital requirements consist of growth capital expenditures and maintenance capital expenditures. Growth capital expenditures are those incurred for acquisitions or capital improvements that we expect will increase our operating capacity for volumes gathered, processed, transported or fractionated or decrease operating expenses within our facilities or increase operating income over the long term. Examples of growth capital expenditures include costs to develop or acquire additional pipeline, terminal, processing or storage capacity. In general, growth capital includes costs that are expected to generate additional or new cash flow for MPLX. In contrast, maintenance capital expenditures are those made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets and to extend their useful lives, or other capital expenditures that are incurred in maintaining existing system volumes and related cash flows.
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, 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.
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 nine months ended September 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.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Depreciation and amortization increased $21 million in the third 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 third quarter of 2023.
Current report — wording carried from elsewhere
Purchases - related parties increased $10 million in the third quarter of 2024 compared to the same period of 2023. The increase includes higher transportation costs in the Southwest and increased employee costs from MPC.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.