MPLX Completes Whistler Pipeline Expansion, Advances Permian Gas Processing Plant
(Reuters) — Midstream energy company MPLX transported 2% more products including natural gas and crude oil in the third quarter of 2023 versus the same time the year prior, and reported higher earnings on Tuesday.
Total pipeline throughputs were 5.9 million barrels per day (bpd) in the third quarter, while the average pipeline tariff rate was $0.99 per barrel for the quarter, an increase of 13% versus the same quarter of 2022, the company said in an earnings release.
MPLX's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was nearly $1.6 billion, compared with $1.47 billion for the third quarter of 2022.
Adjusted EBITDA for the company's logistics and storage segment increased by $122 million compared to the same period in 2022, in part driven by higher rates and higher total throughputs.
During the quarter, MPLX returned $799 million to unitholders and announced a third-quarter 2023 distribution of $0.85 per common unit.
"We announced a 10% increase to our distribution, and through the first nine months of the year we have grown distributable cash flow over 6% compared to the same period in 2022," said Michael J. Hennigan, MPLX chairman, president and chief executive officer.
Adjusted EBITDA for the company's gathering and processing segment increased by $3 million compared to the same time the year prior, as lower natural gas liquids prices offset higher volumes and throughput fees, the company said.
In the Permian basin, MPLX completed its Whistler pipeline expansion from 2.0 billion cubic feet per day (Bcf/d) to 2.5 Bcf/d at the end of the third quarter, the company said.
Construction is progressing on the associated Agua Dulce Corpus Christi Pipeline lateral, expected to be in service in the third quarter of 2024.
It expects to complete in the first half of 2025 its expansion of the BANGL joint venture pipeline to a capacity of 200 thousand barrels per day (bpd).
In the Permian's Delaware basin, MPLX is progressing construction of its sixth natural gas processing plant, Preakness ll, expected online in the first half of 2024, the company said.
MPLX is also planning to build Secretariat, its seventh processing plant in the basin, expected online in the second half of 2025. These new plants will bring MPLX processing capacity in the Delaware basin to 1.4 Bcf/d.
In the Marcellus, MPLX is progressing construction of the Harmon Creek ll processing plant, which is expected online in the first half of 2024.
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