MPLX Reports Strong Financial Performance for Third Quarter 2024
FINDLAY, Ohio—MPLX LP (NYSE: MPLX), a diversified master limited partnership, has reported its financial results for the third quarter of 2024 on November 5th. The report highlights the company's strong performance across various metrics.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Income Attributable to MPLX | $1.037 billion | $918 million | +13% |
| Adjusted EBITDA | $1.714 billion | $1.596 billion | +7% |
MPLX reported a third-quarter net income of $1.037 billion, an increase of 13% compared to the same period last year. Adjusted EBITDA rose by 7% year-over-year, demonstrating robust performance amid challenging industry conditions.
Revenue Performance by Segment
| Segment | Q3 2024 Adjusted EBITDA | Q3 2023 Adjusted EBITDA | YoY Change |
|---|---|---|---|
| Logistics & Storage (L&S) | $1.157 billion | $1.091 billion | +6% |
| Gathering & Processing (G&P) | $557 million | $505 million | +10% |
The Logistics & Storage segment saw a 6% increase in adjusted EBITDA, primarily driven by higher rates and throughputs. The Gathering & Processing segment performed even better, with a 10% increase attributed to increased volumes and contributions from newly acquired assets in the Utica and Permian basins.
Key Developments and Operational Highlights
- Returned $949 million to unitholders.
- Increased quarterly distribution by 12.5% to $3.83 per unit annualized.
- Commenced the Preakness II gas processing plant, adding 200 mmcf/d capacity in the Permian.
- Expanded the BANGL joint venture pipeline, targeting a capacity of 250,000 bpd by Q1 2025.
Comments from Company Officers
Maryann Mannen, MPLX’s president and CEO, emphasized the growth in adjusted EBITDA and the company's strategic project in the Northeast that is set to deliver incremental EBITDA. She reaffirmed MPLX's commitment to distribution flow stability, supporting future annual distribution increases.
Dividends and Share Repurchase Program
The company increased its quarterly distribution to $0.9565 per common unit, achieving a distribution coverage of 1.5x. During the quarter, MPLX repurchased $76 million in common units.
Forward Guidance
MPLX has not provided specific forward guidance in the earnings release but highlighted ongoing expansions and projects expected to boost future earnings, such as the Blackcomb and Rio Bravo pipelines.
Stock Price Movement
Following the earnings release, MPLX's stock price experienced a minor increase of approximately 0.25%.
In summary, MPLX LP has showcased a strong financial performance in the third quarter, driven by strategic investments and operational efficiencies. The company remains focused on growth through its diversified portfolio and strategic capital returns to unitholders.
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