Boston, MA 05/20/2014 (wallstreetpr) – MPLX LP (NYSE:MPLX) today reported its first quarter 2014 results with net income of $34.2 million with and $0.41 per common limited partner unit versus $17.6 million and $0.26 per common limited partner unit a year’s ego.
Top line growth
MPLX’s total revenues in the first quarter of 2014 (1Q2014) increased by ~20% to $137.3 million, from $114.7 million in the first quarter of 2013 (1Q2013). The rise was due to increase pipeline tariff rates and revenue recognized as a result of volume deficiency credits that partly offset the decrease in throughput volumes to 1.8 million barrels per day (1Q2013: ~2 million barrels per day). Marathon Petroleum (MPC) and related parties shipped under the joint tariff plan.
Improved bottom line and distributable cash flow
The increasing revenues drove the Company’s adjusted EBITDA considerably to $43.8 million from $25.1 million in 1Q2013. It also increased the distributable cash flow for a period to $37.7 million (1Q2013: $28 million). The Directors declared a distribution of $0.3275 per unit, up by 20.2% over prior year period.
In March, MPLX LP (NYSE:MPLX) increased its interest to 69% in Pipe Line Holdings while acquiring additional 13% stake for $310 million, including $40 million of cash and $270 million of borrowing.
So, higher revenue coupled with the ownership over Pipe Line Holdings improved the net income to $34.2 million (1Q2013: $17.6 million).
In 1Q2014, the Company reported lower capital expenditure of $5.1 million versus $9.2 million in 1Q2013.
Financially sound to support future growth
MPLX LP (NYSE:MPLX) is financially flexible to manage and grow its asset base. As of march 31, 2014, MPLX has total assets of $1.2 billion including cash and cash equivalents of $40.6 million, $821.1 million as total equity and long-term debt of $280.4 million. MPLX has a leverage ratio of 2.2x as of March 31, 2014.
Strong liquidity position supports the Company to pursue growth opportunities that will help to expand its base of distributable cash flow.
