Adjusted EBITDA was reported at $1.6 billion, showing an 8% increase year over year.
Distributable cash flow came in at $1.4 billion, also reflecting an 8% increase from the previous year.
Total return of $951 million to unitholders, which includes $876 million in distributions and $75 million in unit repurchases.
Capital expenditure outlook for 2024 remains unchanged at $1.1 billion, with $950 million dedicated to growth and $150 million for maintenance.
Future Guidance
MPLX projects continued demand growth for oil, with a global demand forecast increasing by 1.2 to 2 million barrels per day over 2023.
Volume growth is expected in the Marcellus and Utica shale regions, attributed to longer laterals resulting in higher volumes.
Growth capital expenditure for 2024 is steadfast at $950 million, with investments focused in the Marcellus and Permian basins.
The partnership aims to maintain a mid-single-digit growth rate over multiple years.
Trends, Market Conditions, Sentiment
The United States continues to be a low-cost producer of energy, with oil demand reaching record highs globally. This trend is expected to persist, driving incremental demand for transportation fuels.
Strategic transactions, such as acquisitions and partnerships in key basins (e.g., Utica and Permian), underscore MPLX’s growth strategy and commitment to expanding its asset portfolio.
MPLX is focused on strategic growth through strict capital discipline, low-cost culture, and optimizing asset portfolio, which are foundational to the growth of the partnership’s cash flows.
The sentiment is positive, with confidence in the ability to grow through capital efficiency, controlling costs, and optimizing operations to maximize assets.
Notable Quotes
On growth and capital allocation: “We continue to aim for mid-single-digit growth rate over multiple year periods… By deploying capital wisely, controlling our costs, and optimizing operations to get the most out of our assets, we’ve grown DCF by nearly 8% on a 3-year compound annual basis.” - Michael Hennigan, CEO
On acquisition strategy: “The previously mentioned strategic transactions are a continuation of our approach as we seek to grow the cash flows of the partnership.” - Michael Hennigan, CEO
On market conditions and demand: “Oil demand is at a record high globally. We expect oil demand to continue to set records into the foreseeable future.” - Michael Hennigan, CEO
On the capital expenditure outlook: “Our 2024 growth capital outlook is anchored in the Marcellus and Permian basins…” - Carl Hagedorn, CFO
On returning capital to unitholders: “We believe this is a return on and a return of capital business, and we’ll continue to use our capital allocation framework to evaluate and optimize capital allocation decisions.” - Michael Hennigan, CEO
