MPLX's second quarter earnings rise as throughputs rise
By Stephanie Kelly
NEW YORK, Aug 1 (Reuters) - MPLX reported slightly higher earnings for the second quarter of 2023 on Tuesday as the U.S. midstream company transported greater volumes of energy products through its pipeline systems.
Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.53 billion in the period, compared with $1.46 billion for the same time a year ago.
Adjusted EBITDA in MPLX's logistics and storage segment rose to $1.02 billion, compared with $966 million for the second quarter of 2022. The company's average tariff rate gained to $0.89 per barrel, 9% higher than from the same time last year.
Total pipeline throughputs were 6 million barrels per day (bpd), an increase of 1% versus the same quarter of 2022, while terminal throughput was 3.2 million bpd, an increase of 3%.
Adjusted EBITDA in MPLX's gathering and processing segment rose to $509 million, compared with $491 million for the second quarter of 2022. Higher volumes and throughput fees offset lower natural gas liquids prices, it said.
Gathered volumes averaged 6.2 billion cubic feet per day (bcf/d), a 9% increase from the second quarter of 2022.
MPLX is expanding its natural gas and natural gas liquids long-haul and crude gathering pipelines supporting the Permian and Bakken basins.
In the Permian, it is expanding its Whistler pipeline from 2.0 bcf/d to 2.5 bcf/d, and the Agua Dulce Corpus Christi (ADCC) Pipeline lateral.
It expects to complete the expansion of the BANGL joint venture pipeline to 200,000 bpd in the first half of 2025.
In the Permian's Delaware basin, MPLX expects its sixth natural gas processing plant, Preakness ll, to come online in the first half of 2024, with the same timeline for its Harmon Creek ll facility in the Marcellus.
MPLX also plans to build Secretariat, its seventh processing plant in the basin, expected online in the second half of 2025. (Reporting by Stephanie Kelly; Editing by Alexander Smith)
