MPLX Q2 Results - Aug 3

[dan_s]

Highlights for Q2
Reported net income attributable to MPLX of $648 million and adjusted EBITDA attributable to MPLX of $1.2 billion < My forecast was net income of $494 million.
Generated $1.1 billion in net cash provided by operating activities and reported distribution coverage of 1.39x < My forecast was $857 million cash flow from operations.
Maintained quarterly distribution of $0.6875 per common unit < Annual yield of ~14.5%.
On-track to reduce forecasted 2020 capital spending by over $700 million and operating expense by approximately $200 million
Maintaining goal to achieve positive free cash flow, after capital investments and distributions, for 2021

MPLX LP (NYSE: MPLX) today reported second-quarter 2020 net income attributable to MPLX of $648 million , compared with net income of $482 million for the second quarter of 2019. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1.2 billion , compared with $1.2 billion in the second quarter of 2019.

The Logistics and Storage (L&S) segment reported segment income from operations of $681 million and adjusted EBITDA of $839 million for the quarter, up $6 million and $18 million , respectively, versus the second quarter of last year. The Gathering and Processing (G&P) segment reported segment income from operations of $197 million and adjusted EBITDA of $388 million for the quarter, down $13 million and $40 million , respectively, versus the second quarter of last year.

During the quarter, MPLX generated $1.1 billion in net cash provided by operating activities and $1.0 billion of distributable cash flow. Distribution coverage was 1.39x for the second quarter of 2020. MPLX also announced a second-quarter 2020 distribution of $0.6875 per common unit, consistent with the prior quarter.

"The challenges created by the COVID pandemic continued during our second quarter," said Michael J. Hennigan , president and chief executive officer. "Significantly lower levels of demand for crude and refined products decreased the need for our logistics and storage services, while production curtailments in response to lower prices pressured the gathering and processing systems we operate. However, the progress we made on the proactive steps we announced last quarter helped offset some of these challenges. We continue to believe we will be able to generate a stable level of EBITDA to support our goal of achieving positive free cash flow, after capital investments and distributions, for 2021."

My valuation was $23.00 prior to this release.