MPLX LP : Q4 2022 Investor Relations Packet

Fourth Quarter 2022
Table of Contents:		Investor Relations
Condensed Consolidated Statements of Income	2	200 East Hardin Street
Consolidated Statements of Comprehensive Income	3	Findlay, OH 45840
Consolidated Balance Sheets	4	[e-mail]
Consolidated Statements of Cash Flows	5	419/421-2071
Financial Statistics	6
L&S Selected Operating Data	7
G&P Selected Operating Data	8
Reconciliation of Segment Adjusted EBITDA attributable to MPLX LP to Net Income	9
Reconciliation of Adjusted EBITDA attributable to MPLX LP and Distributable Cash Flow attributable to GP and LP Unitholders from Net Income	10
Reconciliation of Adjusted EBITDA attributable to GP and LP Unitholders and Distributable Cash Flow attributable to MPLX LP from Net Cash Provided by Operating Activities	11
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions	12
Reconciliation of Capital Expenditures	13

MPLX LP is a diversified, large-cap master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC).

In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes additional non-GAAP measures to facilitate comparisons of past performance and future periods. This press release and supporting schedules include the non-GAAP measures adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA); consolidated debt to last twelve months pro forma adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); distribution coverage ratio; adjusted distribution coverage ratio; adjusted free cash flow (Adjusted FCF) and Adjusted FCF after distributions. The amount of adjusted EBITDA and DCF generated is considered by the board of directors of our general partner in approving the Partnership's cash distribution. Adjusted EBITDA and DCF should not be considered separately from or as a substitute for net income, income from operations, or cash flow as reflected in our financial statements. The GAAP measures most directly comparable to adjusted EBITDA and DCF are net income and net cash provided by operating activities. We define Adjusted EBITDA as net income adjusted for (i) depreciation and amortization; (ii) provision/benefit for income taxes; (iii) interest and other financial costs; (iv) impairment expense; (v) income/loss from equity method investments; (vi) distributions and adjustments related to equity method investments; (vii) gain on sales- type leases; (viii) noncontrolling interests; and (ix) other adjustments as deemed necessary. In general, we define DCF as adjusted EBITDA adjusted for (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment maintenance capital expenditures paid out; and (vi) other adjustments as deemed necessary. The Partnership makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is outstanding, changes in the fair value of the derivative are recorded as an unrealized gain or loss. When a derivative contract matures or is settled, the previously recorded unrealized gain or loss is reversed and the realized gain or loss of the contract is recorded. Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. DCF is a financial performance measure used by management as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders. Adjusted FCF and Adjusted FCF after distributions are financial performance measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define Adjusted FCF as net cash provided by operating activities adjusted for (i) net cash used in investing activities; (ii) cash contributions from MPC; (iii) cash contributions from noncontrolling interests and (iv) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders. Distribution coverage ratio is a financial performance measure used by management to reflect the relationship between the partnership's financial operating performance and cash distribution capability. We define the distribution coverage ratio as the ratio of DCF attributable to GP and LP unitholders to total GP and LP distributions declared. The adjusted distribution coverage ratio represents the distribution coverage ratio excluding the effects of any supplemental distribution amounts. Leverage ratio is a liquidity measure used by management, industry analysts, investors, lenders and rating agencies to analyze our ability to incur and service debt and fund capital expenditures.

Additional information regarding Investor Relations, Financial Highlights, and News Releases can be reviewed on our website at: www.mplx.com

January 31, 2023

1

				CONDENSED CONSOLIDATED STATEMENTS OF INCOME
								MPLX LP
			Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	(In millions, except per unit data)		2020			2021		2021		2021		2021		2021
	Revenues and other income:
1	Operating revenue	$	3,586		$	1,047	$	1,057	$	1,218	$	1,302	$	4,624
2	Operating revenue - related parties		4,812			1,193		1,242		1,224		1,292		4,951
3	(Loss) income from equity method investments(1)		(936)			70		66		92		93		321
4	Other income(2)		107			29		30		25		47		131
5	Total revenues and other income		7,569			2,339		2,395		2,559		2,734		10,027
	Costs and expenses:
6	Operating expenses		2,000			581		663		752		909		2,905
7	Operating expenses - related parties		1,276			337		320		331		340		1,328
8	Depreciation and amortization		1,377			329		318		324		316		1,287
9	Impairment expense		2,165			-		42		-		-		42
10	General and administrative expenses		378			86		87		94		86		353
11	Restructuring expenses		37			-		-		-		-		-
12	Other taxes		125			32		34		27		27		120
13	Total costs and expenses		7,358			1,365		1,464		1,528		1,678		6,035
14	Income from operations		211			974		931		1,031		1,056		3,992
15	Interest and other financial costs		896			225		216		220		218		879
16	(Loss) income before income taxes		(685)			749		715		811		838		3,113
17	Provision for income taxes		2			1		-		-		-		1
18	Net (loss) income		(687)			748		715		811		838		3,112
19	Less: Net income attributable to noncontrolling interests		33			9		9		9		8		35
20	Net (loss) income attributable to MPLX LP		(720)			739		706		802		830		3,077
21	Less: Series A preferred unit distributions		81			20		21		38		21		100
22	Less: Series B preferred unit distributions		41			11		10		10		10		41
23	Limited partners' interest in net (loss) income attributable to MPLX LP	$	(842)		$	708	$	675	$	754	$	799	$	2,936
	Per Unit Data
24	Net (loss) income attributable to MPLX LP per limited partner unit:
Common - basic	$	(0.80)		$	0.68	$	0.66	$	0.74	$	0.78	$	2.86
25	Common - diluted	$	(0.80)		$	0.68	$	0.66	$	0.74	$	0.78	$	2.86
26	Weighted average limited partner units outstanding:
Common - basic		1,051			1,037		1,029		1,024		1,019		1,027
27	Common - diluted		1,051			1,037		1,029		1,025		1,019		1,027

1. Income (loss) from equity method investments include impairment charges of $6 million for the second quarter of 2021 and $1,264 million in 2020.
2. The third quarter of 2022 includes a $509 million non-cash gain on a lease reclassification.

							Preliminary		Preliminary
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	2022		2022		2022		2022		2022
$	1,265	$	1,495	$	1,430	$	1,137		5,327
	1,236		1,301		1,313		1,364		5,214
	99		111		125		141		476
	10		33		533		20		596
	2,610		2,940		3,401		2,662		11,613
	791		1,028		933		803		3,555
	334		370		374		389		1,467
	313		310		302		305		1,230
	-		-		-		-		-
	78		82		88		87		335
	-		-		-		-		-
	34		33		30		18		115
	1,550		1,823		1,727		1,602		6,702
	1,060		1,117		1,674		1,060		4,911
	222		233		236		234		925
	838		884		1,438		826		3,986
	5		-		1		2		8
	833		884		1,437		824		3,978
	8		9		9		8		34
	825		875		1,428		816		3,944
	21		21		23		23		88
	11		10		10		10		41
$	793	$	844	$	1,395	$	783	$	3,815

$	0.78	$	0.83	$	1.36	$	0.78	$	3.75
$	0.78	$	0.83	$	1.36	$	0.78	$	3.75
	1,015		1,012		1,010		1,003		1,010
	1,015		1,012		1,011		1,003		1,010

2

			CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
								MPLX LP
			Year			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	(In millions)		2020			2021		2021		2021		2021		2021
1	Net (loss) income	$	(687)		$	748	$	715	$	811	$	838	$	3,112
	Other comprehensive (loss) income, net of tax:
2	Remeasurement of pension and other postretirement benefits related to equity		-			(2)		-		-		-		(2)
method investments, net of tax
3	Comprehensive (loss) income		(687)			746		715		811		838		3,110
	Less comprehensive income attributable to:
4	Noncontrolling interests		33			9		9		9		8		35
5	Comprehensive (loss) income attributable to MPLX LP	$	(720)		$	737	$	706	$	802	$	830	$	3,075

							Preliminary		Preliminary
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year
	2022		2022		2022		2022		2022
$	833	$	884	$	1,437	$	824	$	3,978
	9		-		-		0		9
	842		884		1,437		824		3987
	8		9		9		8		34
$	834	$	875	$	1,428		816		3953

3

CONSOLIDATED BALANCE SHEETS

MPLX LP

													Preliminary
	(In millions, except ratio data)		December 31, 2020		December 31, 2021		March 31, 2022		June 30, 2022		September 30, 2022		December 31, 2022
	Assets
1	Cash and cash equivalents	$	15	$	13	$	42	$	298	$	121	$	238
2	Receivables, net		452		654		741		789		941		737
3	Current assets - related parties		677		644		813		731		698		729
4	Inventories		118		142		149		157		151		148
5	Other current assets(1)		253		54		53		43		40		53
6	Total current assets		1,515		1,507		1,798		2,018		1,951		1905
7	Equity method investments		4,036		3,981		4,079		4,099		4,108		4095
8	Property, plant and equipment, net		21,218		20,042		19,912		19,767		18,910		18848
9	Intangibles, net		959		831		800		768		736		705
10	Goodwill		7,657		7,657		7,657		7,645		7,645		7645
11	Right of use assets, net		309		268		280		300		288		283
12	Noncurrent assets - related parties		672		1,161		1,151		1,142		1,222		1225
13	Other noncurrent assets		48		60		50		49		952		959
14	Total assets		36,414		35,507		35,727		35,788		35,812		35,665
	Liabilities
15	Accounts payable		152		172		214		352		289		224
16	Accrued liabilities		194		363		396		415		300		269
17	Current liabilities - related parties		356		1,780		687		403		364		343
18	Accrued property, plant and equipment		84		97		91		104		111		128
19	Long-term debt due within one year		764		499		999		1,000		982		988
20	Accrued interest payable		222		202		192		224		192		237
21	Operating lease liabilities		63		59		47		45		44		46
22	Other current liabilities(2)		251		176		232		198		217		166
23	Total current liabilities		2,086		3,348		2,858		2,741		2,499		2401
24	Long-term deferred revenue		314		383		405		429		170		219
25	Long-term liabilities - related parties		283		302		305		303		318		338
26	Long-term debt		19,375		18,072		18,757		18,775		18,797		18808
27	Deferred income taxes		12		10		14		14		14		13
28	Long-term operating lease liabilities		244		205		228		250		241		230
29	Other long-term liabilities		115		170		159		167		130		142
30	Total liabilities		22,429		22,490		22,726		22,679		22,169		22151
31	Series A preferred units		968		965		965		965		967		968
	Equity
32	Common unitholders - public		9,384		8,579		8,505		8,518		8,569		8413
33	Common unitholder - MPC		2,792		2,638		2,698		2,784		3,276		3293
34	Series B preferred units		611		611		601		611		601		611
35	Accumulated other comprehensive loss		(15)		(17)		(8)		(8)		(8)		-8
36	Total MPLX LP partners' capital		12,772		11,811		11,796		11,905		12,438		12309
37	Noncontrolling interests		245		241		240		239		238		237
38	Total equity		13,017		12,052		12,036		12,144		12,676		12,546
39	Total liabilities, preferred units and equity	$	36,414	$	35,507	$	35,727	$	35,788	$	35,812		35665
40	Consolidated total debt to LTM adjusted EBITDA(3)		3.9x		3.7x		3.7x		3.5x		3.5x		3.5x

1. The December 31, 2020 Other current assets includes $188 million of assets held for sale.
2. The December 31, 2020 Other current liabilities includes $101 million of liabilities held for sale.
3. Calculated using face value total debt and adjusted EBITDA.

4

CONSOLIDATED STATEMENTS OF CASH FLOWS (YTD)

MPLX LP

			Dec. 31
	(In millions)		2020
	Operating activities:
1	Net (loss) income	$	(687)
	Adjustments to reconcile net income to net cash provided by operating activities:
2	Amortization of deferred financing costs		61
3	Depreciation and amortization		1,377
4	Impairment expense		2,165
5	Deferred income taxes		(1)
6	Gain on sales-type leases		-
7	Loss (gain) on disposal of assets		4
8	Loss (income) loss from equity method investments(1)		936
9	Distributions from unconsolidated affiliates		459
10	Change in fair value of derivatives		3
	Changes in:
11	Receivables		62
12	Inventories		(12)
13	Accounts payable and accrued liabilities		36
14	Assets/liabilities - related parties		8
15	Right of use assets/operating lease liabilities		(5)
16	Deferred revenue		112
17	All other, net		3
18	Net cash provided by operating activities		4,521
	Investing activities:
19	Additions to property, plant and equipment		(1,183)
20	Acquisitions, net of cash acquired		-
21	Disposal of assets		56
22	Investments in unconsolidated affiliates		(266)
23	Distributions from unconsolidated affiliates - return of capital		123
24	All other, net		8
25	Net cash used in investing activities		(1,262)
	Financing activities:
26	Long-term debt - borrowings		6,810
27	Long-term debt - repayments		(6,414)
28	Related party debt - borrowings		6,264
29	Related party debt - repayments		(6,858)
30	Debt issuance costs		(25)
31	Unit repurchases		(33)
32	Distributions to noncontrolling interests		(37)
33	Distributions to Series A preferred unitholders		(81)
34	Distributions to Series B preferred unitholders		(41)
35	Distributions to unitholders and general partner		(2,884)
36	Contributions from MPC		50
37	All other, net		(10)
38	Net cash used in financing activities		(3,259)
39	Net change in cash and cash equivalents and restricted cash		-
40	Cash and cash equivalents and restricted cash at beginning of period		15
41	Cash and cash equivalents and restricted cash at end of period	$	15

	Mar. 31		Jun. 30		Sep. 30		Dec. 31
	2021		2021		2021		2021
$	748	$	1,463	$	2,274	$	3,112
	17		35		53		70
	329		647		971		1,287
	-		42		42		42
	-		(1)		(1)		(2)
	-		-		-		-
	-		1		4		(13)
	(70)		(136)		(228)		(321)
	119		239		361		508
	3		39		41		45
	(67)		(83)		(162)		(199)
	(11)		(8)		(22)		(24)
	26		77		166		193
	(8)		101		94		101
	(1)		1		2		(2)
	24		43		65		88
	15		29		11		26
	1,124		2,489		3,671		4,911
	(126)		(235)		(374)		(529)
	-		-		-		-
	70		74		77		126
	(35)		(84)		(116)		(151)
	-		-		36		36
	1		-		-		-
	(90)		(245)		(377)		(518)
	1,910		2,800		3,000		4,175
	(2,020)		(3,746)		(4,946)		(5,821)
	2,241		4,435		6,571		8,493
	(2,241)		(3,942)		(5,201)		(7,043)
	-		-		-		-
	(155)		(310)		(465)		(630)
	(10)		(20)		(29)		(39)
	(20)		(41)		(61)		(100)
	(21)		(21)		(41)		(41)
	(713)		(1,421)		(2,126)		(3,432)
	7		17		31		45
	(3)		(2)		(3)		(2)
	(1,025)		(2,251)		(3,270)		(4,395)
	9		(7)		24		(2)
	15		15		15		15
$	24	$	8	$	39	$	13

							Preliminary
	Mar. 31		Jun. 30		Sep. 30		Dec. 31
	2022		2022		2022		2022
$	833	$	1,717	$	3,154	$	3,978
	18		36		55		73
	313		623		925		1,230
	-		-		-		-
	4		4		4		3
	-		-		(509)		-509
	18		16		23		34
	(99)		(210)		(335)		(476)
	120		258		405		578
	(9)		(16)		(62)		-47
	(87)		(131)		(219)		14
	(7)		(15)		(7)		-5
	73		253		49		-33
	(112)		-		52		40
	(1)		-		1		-3
	16		41		64		108
	45		36		51		34
	1,125		2,612		3,651		5,019
	(169)		(294)		(535)		(806)
	-		(28)		(28)		-28
	3		67		74		84
	(110)		(156)		(198)		(217)
	-		-		11		11
	-		-		-		0
	(276)		(411)		(676)		(956)
	2,385		2,385		3,379		3379
	(1,201)		(1,201)		(2,202)		-2202
	1,849		2,824		2,824		2989
	(2,976)		(4,274)		(4,274)		-4439
	(16)		(16)		(29)		-29
	(100)		(135)		(315)		(491)
	(9)		(19)		(29)		(38)
	(21)		(42)		(63)		-85
	(21)		(21)		(41)		-41
	(716)		(1,430)		(2,144)		-2921
	10		17		30		44
	(4)		(4)		(3)		-4
	(820)		(1,916)		(2,867)		(3,838)
	29		285		108		225
	13		13		13		13
$	42	$	298	$	121		238

(1) Loss (income) from equity method investments include impairment charges of $6 million for the second quarter of 2021 and $1,264 million in 2020.

5