MPLX's third-quarter earnings rise as pipeline rates, throughputs increase

Nov 06, 2024

HOUSTON, Nov 5 (Reuters) - U.S. midstream company MPLX reported stronger year-over-year net income for the third quarter of 2024 on Tuesday as it transported greater volumes of energy products through its pipeline systems at higher rates.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.7 billion in the period, compared with $1.6 billion for the same time a year ago.

Advertisement:

The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business.

ngc.co.tt

Adjusted EBITDA in MPLX's logistics and storage segment rose to $1.16 billion, compared with $1.09 billion for the third quarter of 2023.

The company's average pipeline tariff rate rose 2% to $1.01 per barrel.

Total pipeline throughputs were 6 million barrels per day (bpd), a 1% uptick, while terminal throughput also rose 1% to 3.3 million bpd.

Adjusted EBITDA in MPLX's gathering and processing segment rose to $557 million, compared with $505 million for the third quarter of 2023.

Gathered volumes averaged 6.7 billion cubic feet per day (bcf/d), an 8% increase.

The BANGL joint venture natural gas liquids pipeline, between White Water, MPLX, WTG, and Rattler, is being expanded to increase capacity to 250,000 bpd, with expected completion in the first quarter of 2025.

MPLX and its partners are progressing natural gas pipelines, Blackcomb and Rio Bravo, which will move gas from the Permian to the Gulf Coast. Both pipelines are expected in service in the second half of 2026.

Meanwhile, MPLX is ramping up its gathering and processing segment in the Permian and Marcellus as producer demand grows.

In the Permian, new plants will bring MPLX gas processing capacity in the Delaware basin to 1.4 bcf/d in the second half of 2025.

MPLX brought Preakness II online in July, a 200 million cubic feet per day (mmcf/d) processing plant, and it expects Secretariat, a 200 mmcf/d processing plant, to start operations in the second half of next year.

In the Marcellus, new plants will bring MPLX gas processing capacity in the Northeast to 8.1 bcf/d and total fractionation capacity to 800,000 bpd.

Harmon Creek III, a 300 mmcf/d processing plant and 40,000 bpd de-ethanizer, is expected online in the second half of 2026.

In the Utica basin, MPLX is ramping up use of its existing capacity, with gas processing volumes up 50% year to date versus the same period of 2023.

(Reporting by Georgina McCartney in Houston, Editing by Alexandra Hudson, Kirsten Donovan)