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MPLX LP - Quarter Report: 2023 March (Form 10-Q)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _____________________________________________
FORM 10-Q
 ____________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-35714
_____________________________________________ 
MPLX LP
(Exact name of registrant as specified in its charter)
 _____________________________________________
Delaware27-0005456
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
200 E. Hardin Street,Findlay,Ohio 45840
(Address of principal executive offices)(Zip code)
(419) 421-2414
(Registrant’s telephone number, including area code)
 _____________________________________________
Securities Registered pursuant to Section 12(b) of the Act
Title of each class Trading symbol(s)Name of each exchange on which registered
Common Units Representing Limited Partnership InterestsMPLXNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x     No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filerNon-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes      No  x

MPLX LP had 1,001,168,883 common units outstanding as of April 26, 2023.


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Item 1.   
Item 2.   
Item 3.   
Item 4.   
Item 1.   
Item 1A.
Item 6.

Unless otherwise stated or the context otherwise indicates, all references in this Form 10-Q to “MPLX LP,” “MPLX,” “the Partnership,” “we,” “our,” “us,” or like terms refer to MPLX LP and its consolidated subsidiaries.

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Glossary of Terms

The abbreviations, acronyms and industry technology used in this report are defined as follows:

ASCAccounting Standards Codification
ASUAccounting Standards Update
BarrelOne stock tank barrel, or 42 U.S. gallons of liquid volume, used in reference to crude oil or other liquid hydrocarbons
BtuOne British thermal unit, an energy measurement
DCF (a non-GAAP financial measure)Distributable Cash Flow
EBITDA (a non-GAAP financial measure)Earnings Before Interest, Taxes, Depreciation and Amortization
FASBFinancial Accounting Standards Board
FCF (a non-GAAP financial measure)Free Cash Flow
GAAPAccounting principles generally accepted in the United States of America
G&PGathering and Processing segment
L&SLogistics and Storage segment
mbpdThousand barrels per day
MMBtuOne million British thermal units, an energy measurement
MMcf/dOne million cubic feet of natural gas per day
NGLNatural gas liquids, such as ethane, propane, butanes and natural gasoline
SECU.S. Securities and Exchange Commission
SOFRSecured Overnight Financing Rate
VIEVariable interest entity

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Part I—Financial Information
Item 1. Financial Statements
MPLX LP
Consolidated Statements of Income (Unaudited)
Three Months Ended 
March 31,
(In millions, except per unit data)20232022
Revenues and other income:
Service revenue$605 $554 
Service revenue - related parties953 915 
Service revenue - product related79 123 
Rental income61 91 
Rental income - related parties202 165 
Product sales420 497 
Product sales - related parties70 45 
Sales-type lease revenue34 — 
Sales-type lease revenue - related parties125 111 
Income from equity method investments134 99 
Other income (loss)(17)
Other income - related parties27 27 
Total revenues and other income2,713 2,610 
Costs and expenses:
Cost of revenues (excludes items below)308 287 
Purchased product costs406 467 
Rental cost of sales20 37 
Rental cost of sales - related parties15 
Purchases - related parties361 319 
Depreciation and amortization296 313 
General and administrative expenses89 78 
Other taxes30 34 
Total costs and expenses1,517 1,550 
Income from operations1,196 1,060 
Related-party interest and other financial costs— 
Interest expense, net of amounts capitalized 224 198 
Other financial costs19 20 
Income before income taxes953 838 
Provision for income taxes
Net income952 833 
Less: Net income attributable to noncontrolling interests
Net income attributable to MPLX LP943 825 
Less: Series A preferred unitholders interest in net income23 21 
Less: Series B preferred unitholders interest in net income11 
Limited partners' interest in net income attributable to MPLX LP$915 $793 
Per Unit Data (See Note 6)
Net income attributable to MPLX LP per limited partner unit:
Common - basic$0.91 $0.78 
Common - diluted$0.91 $0.78 
Weighted average limited partner units outstanding:
Common - basic1,001 1,015 
Common - diluted1,001 1,015 

The accompanying notes are an integral part of these consolidated financial statements.
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MPLX LP
Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended 
March 31,
(In millions)20232022
Net income$952 $833 
Other comprehensive income, net of tax:
Remeasurements of pension and other postretirement benefits related to equity method investments, net of tax
Comprehensive income956 842 
Less comprehensive income attributable to:
Noncontrolling interests
Comprehensive income attributable to MPLX LP$947 $834 

The accompanying notes are an integral part of these consolidated financial statements.
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MPLX LP
Consolidated Balance Sheets (Unaudited)
 
(In millions)March 31,
2023
December 31,
2022
Assets
Cash and cash equivalents$393 $238 
Receivables, net714 737 
Current assets - related parties701 729 
Inventories141 148 
Other current assets63 53 
Total current assets2,012 1,905 
Equity method investments4,144 4,095 
Property, plant and equipment, net18,758 18,848 
Intangibles, net673 705 
Goodwill7,645 7,645 
Right of use assets, net274 283 
Noncurrent assets - related parties1,212 1,225 
Other noncurrent assets954 959 
Total assets35,672 35,665 
Liabilities
Accounts payable139 224 
Accrued liabilities266 269 
Current liabilities - related parties327 343 
Accrued property, plant and equipment158 128 
Long-term debt due within one year988 
Accrued interest payable192 237 
Operating lease liabilities45 46 
Other current liabilities184 166 
Total current liabilities1,312 2,401 
Long-term deferred revenue233 219 
Long-term liabilities - related parties338 338 
Long-term debt20,393 18,808 
Deferred income taxes13 13 
Long-term operating lease liabilities221 230 
Other long-term liabilities114 142 
Total liabilities22,624 22,151 
Commitments and contingencies (see Note 14)
Series A preferred units (30 million and 30 million units issued and outstanding)
968 968 
Equity
Common unitholders - public (354 million and 354 million units issued and outstanding)
8,459 8,413 
Common unitholders - MPC (647 million and 647 million units issued and outstanding)
3,388 3,293 
Series B preferred units (0.0 million and 0.6 million units issued and outstanding)
— 611 
Accumulated other comprehensive loss(4)(8)
Total MPLX LP partners’ capital11,843 12,309 
Noncontrolling interests237 237 
Total equity12,080 12,546 
Total liabilities, preferred units and equity$35,672 $35,665 

The accompanying notes are an integral part of these consolidated financial statements.
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MPLX LP
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended 
March 31,
(In millions)20232022
Operating activities:
Net income$952 $833 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs17 18 
Depreciation and amortization296 313 
Deferred income taxes— 
Loss on disposal of assets— 18 
Income from equity method investments(134)(99)
Distributions from unconsolidated affiliates140 120 
Change in fair value of derivatives(5)(9)
Changes in:
Receivables38 (87)
Inventories(2)(7)
Accounts payable and accrued liabilities(130)73 
Assets/liabilities - related parties44 (112)
Right of use assets/operating lease liabilities(1)(1)
Deferred revenue16 
All other, net45 
Net cash provided by operating activities1,227 1,125 
Investing activities:
Additions to property, plant and equipment(169)(169)
Disposal of assets— 
Investments in unconsolidated affiliates(51)(110)
Net cash used in investing activities(220)(276)
Financing activities:
Long-term debt borrowings1,589 2,385 
Long-term debt repayments(1,000)(1,201)
Related party debt borrowings— 1,849 
Related party debt repayments— (2,976)
Debt issuance costs(15)(16)
Unit repurchases— (100)
Redemption of Series B preferred units(600)— 
Distributions to noncontrolling interests(10)(9)
Distributions to Series A preferred unitholders(23)(21)
Distributions to Series B preferred unitholders(21)(21)
Distributions to unitholders and general partner(777)(716)
Contributions from MPC10 
All other, net(3)(4)
Net cash used in financing activities(852)(820)
Net change in cash, cash equivalents and restricted cash155 29 
Cash, cash equivalents and restricted cash at beginning of period238 13 
Cash, cash equivalents and restricted cash at end of period$393 $42 

The accompanying notes are an integral part of these consolidated financial statements.
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MPLX LP
Consolidated Statements of Equity and Series A Preferred Units (Unaudited)

 Partnership  
(In millions)Common
Unit-holders
Public
Common
Unit-holder
MPC
Series B Preferred Unit-holdersAccumulated Other Comprehensive LossNon-controlling
Interests
TotalSeries A Preferred Unit-holders
Balance at December 31, 2021$8,579 $2,638 $611 $(17)$241 $12,052 $965 
Net income287 506 11 — 812 21 
Unit repurchases(100)— — — — (100)— 
Distributions(260)(456)(21)— (9)(746)(21)
Contributions— 10 — — — 10 — 
Other(1)— — — — 
Balance at March 31, 2022$8,505 $2,698 $601 $(8)$240 $12,036 $965 
Balance at December 31, 2022$8,413 $3,293 $611 $(8)$237 $12,546 $968 
Net income323 592 — 929 23 
Redemption of Series B preferred units(2)(3)(595)— — (600)— 
Distributions(275)(502)(21)— (10)(808)(23)
Contributions— — — — — 
Other— — — — 
Balance at March 31, 2023$8,459 $3,388 $— $(4)$237 $12,080 $968 

The accompanying notes are an integral part of these consolidated financial statements.
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Notes to Consolidated Financial Statements (Unaudited)

1. Description of the Business and Basis of Presentation

Description of the Business

MPLX LP is a diversified, large-cap master limited partnership formed by Marathon Petroleum Corporation that owns and operates midstream energy infrastructure and logistics assets, and provides fuels distribution services. References in this report to “MPLX LP,” “MPLX,” “the Partnership,” “we,” “ours,” “us,” or like terms refer to MPLX LP and its subsidiaries. References to our sponsor and customer, “MPC,” refer collectively to Marathon Petroleum Corporation and its subsidiaries, other than the Partnership. We are engaged in the gathering, transportation, storage and distribution of crude oil, refined products, other hydrocarbon-based products and renewables; the gathering, processing and transportation of natural gas; and the transportation, fractionation, storage and marketing of NGLs. MPLX’s principal executive office is located in Findlay, Ohio. MPLX was formed on March 27, 2012 as a Delaware limited partnership and completed its initial public offering on October 31, 2012.

MPLX’s business consists of two segments based on the nature of services it offers: Logistics and Storage (“L&S”), which relates primarily to crude oil, refined products, other hydrocarbon-based products and renewables; and Gathering and Processing (“G&P”), which relates primarily to natural gas and NGLs. See Note 7 for additional information regarding the operations and results of these segments.

Basis of Presentation

These interim consolidated financial statements are unaudited; however, in the opinion of MPLX’s management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules and regulations of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements. Certain information derived from our audited annual financial statements, prepared in accordance with GAAP, has been condensed or omitted from these interim financial statements.

These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year.

MPLX’s consolidated financial statements include all majority-owned and controlled subsidiaries. For non-wholly owned consolidated subsidiaries, the interests owned by third parties have been recorded as Noncontrolling interests on the accompanying Consolidated Balance Sheets. Intercompany accounts and transactions have been eliminated. MPLX’s investments in which MPLX exercises significant influence but does not control and does not have a controlling financial interest are accounted for using the equity method. MPLX’s investments in VIEs in which MPLX exercises significant influence but does not control and is not the primary beneficiary are also accounted for using the equity method.

Certain prior period financial statement amounts have been reclassified to conform to current period presentation.

2. Accounting Standards

Not Yet Adopted
ASU 2023-01, Leases (Topic 842): Common Control Arrangements
In March 2023, the FASB issued an ASU to amend certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU amends the accounting for the amortization period of leasehold improvements in common-control leases for all entities and requires certain disclosures when the lease term is shorter than the useful life of the asset. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the application of this ASU to have a material impact on our consolidated financial statements or financial disclosures.

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3. Investments and Noncontrolling Interests

The following table presents MPLX’s equity method investments at the dates indicated:

Ownership as ofCarrying value at
March 31,March 31,December 31,
(In millions, except ownership percentages)VIE202320232022
L&S
Andeavor Logistics Rio Pipeline LLCX67%$176 $177 
Illinois Extension Pipeline Company, L.L.C.35%243 236 
LOOP LLC41%292 287 
MarEn Bakken Company LLC(1)
25%466 475 
Minnesota Pipe Line Company, LLC17%177 178 
Whistler Pipeline LLC38%217 211 
Other(2)
X289 269 
Total L&S1,860 1,833 
G&P
Centrahoma Processing LLC40%129 131 
MarkWest EMG Jefferson Dry Gas Gathering Company, L.L.CX67%336 335 
MarkWest Torñado GP, L.L.C.X60%312 306 
MarkWest Utica EMG, L.L.C.X58%692 669 
Rendezvous Gas Services, L.L.C.X78%135 137 
Sherwood Midstream Holdings LLCX51%122 125 
Sherwood Midstream LLCX50%509 512 
Other(2)
X49 47 
Total G&P2,284 2,262 
Total$4,144 $4,095 
(1)    The investment in MarEn Bakken Company LLC includes our 9.19 percent indirect interest in a joint venture (“Dakota Access”) that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, collectively referred to as the Bakken Pipeline system or DAPL.    
(2)    Some investments included within Other have also been deemed to be VIEs.

For those entities that have been deemed to be VIEs, neither MPLX nor any of its subsidiaries have been deemed to be the primary beneficiary due to voting rights on significant matters. While we have the ability to exercise influence through participation in the management committees which make all significant decisions, we have equal influence over each committee as a joint interest partner and all significant decisions require the consent of the other investors without regard to economic interest. As such, we have determined that these entities should not be consolidated and applied the equity method of accounting with respect to our investments in each entity.

Sherwood Midstream LLC (“Sherwood Midstream”) has been deemed the primary beneficiary of Sherwood Midstream Holdings LLC (“Sherwood Midstream Holdings”) due to its controlling financial interest through its authority to manage the joint venture. As a result, Sherwood Midstream consolidates Sherwood Midstream Holdings. Therefore, MPLX also reports its portion of Sherwood Midstream Holdings’ net assets as a component of its investment in Sherwood Midstream. As of March 31, 2023, MPLX had a 24.54 percent indirect ownership interest in Sherwood Midstream Holdings through Sherwood Midstream.

MPLX’s maximum exposure to loss as a result of its involvement with equity method investments includes its equity investment, any additional capital contribution commitments and any operating expenses incurred by the subsidiary operator in excess of its compensation received for the performance of the operating services. MPLX did not provide any financial support to equity method investments that it was not contractually obligated to provide during the three months ended March 31, 2023. See Note 14 for information on our Guarantees related to indebtedness of equity method investees.

4. Related Party Agreements and Transactions

MPLX engages in transactions with both MPC and certain of its equity method investments as part of its normal business; however, transactions with MPC make up the majority of MPLX’s related party transactions. Transactions with related parties are further described below.

MPLX has various long-term, fee-based commercial agreements with MPC. Under these agreements, MPLX provides transportation, gathering, terminal, fuels distribution, marketing, storage, management, operational and other services to MPC. MPC has committed to provide MPLX with minimum quarterly throughput volumes on crude oil and refined products and other
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fees for storage capacity; operating and management fees; as well as reimbursements for certain direct and indirect costs. MPC has also committed to provide a fixed fee for 100 percent of available capacity for boats, barges and third-party chartered equipment under the marine transportation service agreement. MPLX also has a keep-whole commodity agreement with MPC under which MPC pays us a processing fee for NGLs related to keep-whole agreements and delivers shrink gas to the producers on our behalf. We pay MPC a marketing fee in exchange for assuming the commodity risk. Additionally, MPLX has obligations to MPC for services provided to MPLX by MPC under omnibus and employee services-type agreements as well as other agreements.

Related Party Loan

MPLX is party to a loan agreement (the “MPC Loan Agreement”) with MPC. Under the terms of the MPC Loan Agreement, MPC extends loans to MPLX on a revolving basis as requested by MPLX and as agreed to by MPC. The borrowing capacity of the MPC Loan Agreement is $1.5 billion aggregate principal amount of all loans outstanding at any one time. The MPC Loan Agreement is scheduled to expire, and borrowings under the loan agreement are scheduled to mature and become due and payable on July 31, 2024, provided that MPC may demand payment of all or any portion of the outstanding principal amount of the loan, together with all accrued and unpaid interest and other amounts (if any), at any time prior to maturity. Borrowings under the MPC Loan Agreement bear interest at one-month term SOFR adjusted upward by 0.10 percent plus 1.25 percent or such lower rate as would be applicable to such loans under the MPLX Credit Agreement as discussed in Note 11.

There was no activity on the MPC Loan Agreement for the three months ended March 31, 2023.

Related Party Revenue

Related party sales to MPC primarily consist of crude oil and refined products pipeline and trucking transportation services based on tariff or contracted rates; storage, terminal and fuels distribution services based on contracted rates; and marine transportation services. Related party sales to MPC also consist of revenue related to volume deficiency credits.

MPLX also has operating agreements with MPC under which it receives a fee for operating MPC’s retained pipeline assets and a fixed annual fee for providing oversight and management services required to run the marine business. MPLX also receives management fee revenue for engineering, construction and administrative services for operating certain of its equity method investments. Amounts earned under these agreements are classified as Other income - related parties in the Consolidated Statements of Income.

Certain product sales to MPC net to zero within the consolidated financial statements as the transactions are recorded net due to the terms of the agreements under which such product was sold. For the three months ended March 31, 2023 and March 31, 2022, these sales totaled $198 million and $293 million, respectively.

Related Party Expenses

MPC charges MPLX for executive management services and certain general and administrative services provided to MPLX under the terms of our omnibus agreements (“Omnibus charges”) and for certain employee services provided to MPLX under employee services agreements (“ESA charges”). Omnibus charges and ESA charges are classified as Rental cost of sales - related parties, Purchases - related parties, or General and administrative expenses depending on the nature of the asset or activity with which the costs are associated. In addition to these agreements, MPLX purchases products from MPC, makes payments to MPC in its capacity as general contractor to MPLX, and has certain rent and lease agreements with MPC.

For the three months ended March 31, 2023 and March 31, 2022, General and administrative expenses incurred from MPC totaled $64 million and $55 million, respectively.

Some charges incurred under the omnibus and employee service agreements are related to engineering services and are associated with assets under construction. These charges are added to Property, plant and equipment, net on the Consolidated Balance Sheets. For the three months ended March 31, 2023 and March 31, 2022, these charges totaled $10 million and $19 million, respectively.

Related Party Assets and Liabilities

Assets and liabilities with related parties appearing in the Consolidated Balance Sheets are detailed in the table below. This table identifies the various components of related party assets and liabilities, including those associated with leases and deferred revenue on minimum volume commitments. If MPC fails to meet its minimum committed volumes, MPC will pay MPLX a deficiency payment based on the terms of the agreement. The deficiency amounts received under these agreements (excluding payments received under agreements classified as sales-type leases) are recorded as Current liabilities - related parties. In many cases, MPC may then apply the amount of any such deficiency payments as a credit for volumes in excess of its minimum volume commitment in future periods under the terms of the applicable agreements. MPLX recognizes related party revenues for the deficiency payments when credits are used for volumes in excess of minimum quarterly volume commitments, where it is probable the customer will not use the credit in future periods or upon the expiration of the credits. The use or expiration of the
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credits is a decrease in Current liabilities - related parties. Deficiency payments under agreements that have been classified as sales-type leases are recorded as a reduction against the corresponding lease receivable. In addition, capital projects MPLX undertakes at the request of MPC are reimbursed in cash and recognized as revenue over the remaining term of the applicable agreements or in some cases, as a contribution from MPC.

(In millions)March 31,
2023
December 31,
2022
Current assets - related parties
Receivables$559 $610 
Lease receivables121 111 
Prepaid17 
Other
Total701 729 
Noncurrent assets - related parties
Long-term lease receivables865 883 
Right of use assets228 228 
Unguaranteed residual asset95 87 
Long-term receivables24 27 
Total1,212 1,225 
Current liabilities - related parties
MPC loan agreement and other payables(1)
239 262 
Deferred revenue87 80 
Operating lease liabilities
Total327 343 
Long-term liabilities - related parties
Long-term operating lease liabilities227 228 
Long-term deferred revenue111 110 
Total$338 $338 
(1)    There were no borrowings outstanding on the MPC Loan Agreement as of March 31, 2023 or December 31, 2022.

Other Related Party Transactions

From time to time, MPLX may also sell to or purchase from related parties, assets and inventory at the lesser of average unit cost or net realizable value. Sales to related parties for the three months ended March 31, 2023 and March 31, 2022 were $5 million and $8 million, respectively.

5. Equity

The changes in the number of common units during the three months ended March 31, 2023 are summarized below:
(In units)Common Units
Balance at December 31, 20221,001,020,616 
Unit-based compensation awards142,742 
Balance at March 31, 20231,001,163,358 

Unit Repurchase Program

On August 2, 2022, we announced the board authorization for the repurchase of up to an additional $1 billion of MPLX common units held by the public. This unit repurchase authorization has no expiration date. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated unit repurchases, tender offers or open market solicitations for units, some of which may be effected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be discontinued at any time.

No units were repurchased during the three months ended March 31, 2023. As of March 31, 2023, we had $846 million remaining under the unit repurchase authorization.

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Redemption of the Series B Preferred Units

On February 15, 2023, MPLX exercised its right to redeem all 600,000 outstanding units of 6.875 percent Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Series B preferred units”). MPLX paid unitholders the Series B preferred unit redemption price of $1,000 per unit.

Distributions on the Series B preferred units were payable semi-annually in arrears on the 15th day, or the first business day thereafter, of February and August of each year up to and including February 15, 2023. In accordance with these terms, MPLX made a final cash distribution of $21 million to Series B preferred unitholders on February 15, 2023, in conjunction with the redemption.

The changes in the Series B preferred unit balance during the three months ended March 31, 2023 and March 31, 2022 are included in the Consolidated Statements of Equity within Series B preferred units.

Distributions

On April 25, 2023, MPLX declared a cash distribution for the first quarter of 2023, totaling $776 million, or $0.775 per common unit. This distribution will be paid on May 15, 2023 to common unitholders of record on May 5, 2023. This rate will also be received by Series A preferred unitholders.

Quarterly distributions for 2023 and 2022 are summarized below:
(Per common unit)20232022
March 31,$0.775 $0.705 

The allocation of total quarterly cash distributions to limited and preferred unitholders is as follows for the three months ended March 31, 2023 and March 31, 2022. Distributions, although earned, are not accrued until declared. MPLX’s distributions are declared subsequent to quarter end; therefore, the following table represents total cash distributions applicable to the period in which the distributions were earned.
Three Months Ended 
March 31,
(In millions)20232022
Common and preferred unit distributions:
Common unitholders, includes common units of general partner$776 $713 
Series A preferred unit distributions23 21 
Series B preferred unit distributions(1)
11 
Total cash distributions declared$804 $745 
(1) Represents the portion of the $21 million distribution paid to the Series B preferred unitholders on February 15, 2023 that was earned during the three months ended March 31, 2023.

6. Net Income Per Limited Partner Unit

Net income per unit applicable to common units is computed by dividing net income attributable to MPLX LP less income allocated to participating securities by the weighted average number of common units outstanding.

During the three months ended March 31, 2023 and March 31, 2022, MPLX had participating securities consisting of common units, certain equity-based compensation awards, Series A preferred units and Series B preferred units and had dilutive potential common units consisting of certain equity-based compensation awards. Potential common units omitted from the diluted earnings per unit calculation for the three months ended March 31, 2023 and March 31, 2022 were less than 1 million.
Three Months Ended 
March 31,
(In millions)20232022
Net income attributable to MPLX LP$943 $825 
Less: Distributions declared on Series A preferred units23 21 
Distributions declared on Series B preferred units11 
Limited partners’ distributions declared on MPLX common units (including common units of general partner)776 713 
Undistributed net gain attributable to MPLX LP$139 $80 

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Three Months Ended March 31, 2023
(In millions, except per unit data)Limited Partners’
Common Units
Series A Preferred UnitsSeries B Preferred UnitsTotal
Basic and diluted net income attributable to MPLX LP per unit
Net income attributable to MPLX LP:
Distributions declared$776 $23 $$804 
Undistributed net gain attributable to MPLX LP135 — 139 
Net income attributable to MPLX LP(1)
911 $27 $943 
Impact of redemption of Series B preferred units(5)(5)
Income available to common unitholders$906 $938 
Weighted average units outstanding:
Basic1,001 
Diluted1,001 
Net income attributable to MPLX LP per limited partner unit:
Basic$0.91 
Diluted$0.91 
(1)    Allocation of net income attributable to MPLX LP assumes all earnings for the period had been distributed based on the distribution priorities applicable to the period.
Three Months Ended March 31, 2022
(In millions, except per unit data)Limited Partners’
Common Units
Series A Preferred UnitsSeries B Preferred UnitsTotal
Basic and diluted net income attributable to MPLX LP per unit
Net income attributable to MPLX LP:
Distributions declared$713 $21 $11 $745 
Undistributed net gain attributable to MPLX LP78 — 80 
Net income attributable to MPLX LP(1)
$791 $23 $11 $825 
Weighted average units outstanding:
Basic1,015 
Diluted1,015 
Net income attributable to MPLX LP per limited partner unit:
Basic$0.78 
Diluted$0.78 
(1)    Allocation of net income attributable to MPLX LP assumes all earnings for the period had been distributed based on the distribution priorities applicable to the period.

7. Segment Information

MPLX’s chief operating decision maker (“CODM”) is the chief executive officer of its general partner. The CODM reviews MPLX’s discrete financial information, makes operating decisions, assesses financial performance and allocates resources on a type of service basis. MPLX has two reportable segments: L&S and G&P. Each of these segments is organized and managed based upon the nature of the products and services it offers.

L&S – gathers, transports, stores and distributes crude oil, refined products, other hydrocarbon-based products and renewables. Also includes the operation of refining logistics, fuels distribution and inland marine businesses, terminals, rail facilities, and storage caverns.
G&P – gathers, processes and transports natural gas; and transports, fractionates, stores and markets NGLs.

Our CODM evaluates the performance of our segments using Segment Adjusted EBITDA. Amounts included in net income and excluded from Segment Adjusted EBITDA include: (i) depreciation and amortization; (ii) interest and other financial costs; (iii) income/(loss) from equity method investments; (iv) distributions and adjustments related to equity method investments; (v) gain on sales-type leases; (vi) impairment expense; (vii) noncontrolling interests; and (viii) other adjustments, as applicable. These items are either: (i) believed to be non-recurring in nature; (ii) not believed to be allocable or controlled by the segment; or (iii) are
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not tied to the operational performance of the segment. Assets by segment are not a measure used to assess the performance of the Partnership by our CODM and thus are not reported in our disclosures.

The tables below present information about revenues and other income, Segment Adjusted EBITDA, capital expenditures and investments in unconsolidated affiliates for our reportable segments:
Three Months Ended 
March 31,
(In millions)20232022
L&S
Service revenue$1,033 $983 
Rental income212 175 
Product related revenue
Sales-type lease revenue125 111 
Income from equity method investments71 52 
Other income14 12 
Total segment revenues and other income(1)
1,460 1,337 
Segment Adjusted EBITDA(2)
1,026 904 
Capital expenditures68 77 
Investments in unconsolidated affiliates15 68 
G&P
Service revenue525 486 
Rental income51 81 
Product related revenue564 661 
Sales-type lease revenue 34 — 
Income from equity method investments63 47 
Other income (loss)16 (2)
Total segment revenues and other income(1)
1,253 1,273 
Segment Adjusted EBITDA(2)
493 489 
Capital expenditures123 95 
Investments in unconsolidated affiliates$36 $42 
(1)    Within the total segment revenues and other income amounts presented above, third party revenues for the L&S segment were $170 million and $135 million for the three months ended March 31, 2023 and March 31, 2022, respectively. Third party revenues for the G&P segment were $1,166 million and $1,212 million for the three months ended March 31, 2023 and March 31, 2022, respectively.
(2)    See below for the reconciliation from Segment Adjusted EBITDA to Net income.

The table below provides a reconciliation between Net income and Segment Adjusted EBITDA.
Three Months Ended 
March 31,
(In millions)20232022
Reconciliation to Net income:
L&S Segment Adjusted EBITDA$1,026 $904 
G&P Segment Adjusted EBITDA493 489 
Total reportable segments1,519 1,393 
Depreciation and amortization(1)
(296)(313)
Interest and other financial costs(243)(222)
Income from equity method investments134 99 
Distributions/adjustments related to equity method investments(153)(132)
Adjusted EBITDA attributable to noncontrolling interests10 
Other(2)
(19)(1)
Net income$952 $833 
(1)    Depreciation and amortization attributable to L&S was $129 million and $130 million for the three months ended March 31, 2023 and March 31, 2022 , respectively. Depreciation and amortization attributable to G&P was $167 million and $183 million for the three months ended March 31, 2023 and March 31, 2022, respectively.
(2)    Includes unrealized derivative gain/(loss), non-cash equity-based compensation, provision for income taxes, and other miscellaneous items.

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8. Property, Plant and Equipment
 
Property, plant and equipment with associated accumulated depreciation is shown below:

March 31, 2023December 31, 2022
(In millions)Gross PP&EAccumulated DepreciationNet PP&EGross PP&EAccumulated DepreciationNet PP&E
L&S $12,476 $3,673 $8,803 $12,416 $3,554 $8,862 
G&P 13,607 3,652 9,955 13,495 3,509 9,986 
Total$26,083 $7,325 $18,758 $25,911 $7,063 $18,848 

We capitalize interest as part of the cost of major projects during the construction period. Capitalized interest totaled $3 million and $2 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

9. Fair Value Measurements

Fair Values – Recurring

The following table presents the impact on the Consolidated Balance Sheets of MPLX’s financial instruments carried at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 by fair value hierarchy level.

March 31, 2023December 31, 2022
(In millions)AssetLiabilityAssetLiability
Commodity contracts (Level 2)
Other current assets / Other current liabilities$$— $— $— 
Embedded derivatives in commodity contracts (Level 3)
Other current assets / Other current liabilities— 11 — 10 
Other noncurrent assets / Other long-term liabilities— 47 — 51 
Total carrying value in Consolidated Balance Sheets$$58 $— $61 

Level 2 instruments include over-the-counter fixed swaps to mitigate the price risk from our sales of propane. The swap valuations are based on observable inputs in the form of forward prices based on Mont Belvieu propane forward spot prices and contain no significant unobservable inputs.

Level 3 instruments relate to an embedded derivative liability for a natural gas purchase commitment embedded in a keep-whole processing agreement. The fair value calculation for these Level 3 instruments used significant unobservable inputs including: (1) NGL prices interpolated and extrapolated due to inactive markets ranging from $0.58 to $1.55 per gallon with a weighted average of $0.77 per gallon and (2) the probability of renewal of 100 percent for the five-year renewal term of the gas purchase commitment and related keep-whole processing agreement. Increases or decreases in the fractionation spread result in an increase or decrease in the fair value of the embedded derivative liability, respectively.
Changes in Level 3 Fair Value Measurements

The following table is a reconciliation of the net beginning and ending balances recorded for net liabilities classified as Level 3 in the fair value hierarchy.
Three Months Ended 
March 31,
(In millions)20232022
Beginning balance $(61)$(108)
Unrealized and realized gain included in Net Income(1)
— 
Settlements
Ending balance$(58)$(99)
The amount of total gain/(loss) for the period included in earnings attributable to the change in unrealized gain/(loss) relating to liabilities still held at end of period$— $
(1)     Gain/(loss) on derivatives embedded in commodity contracts are recorded in Purchased product costs in the Consolidated Statements of Income.

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Fair Values – Reported

We believe the carrying value of our other financial instruments, including cash and cash equivalents, receivables, receivables from related parties, lease receivables, lease receivables from related parties, accounts payable, and payables to related parties, approximate fair value. MPLX’s fair value assessment incorporates a variety of considerations, including the duration of the instruments, MPC’s investment-grade credit rating, and the historical incurrence of and expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. The recorded value of the amounts outstanding under the bank revolving credit facility, if any, approximates fair value due to the variable interest rate that approximates current market rates. Derivative instruments are recorded at fair value, based on available market information (see Note 10).

The fair value of MPLX’s debt is estimated based on prices from recent trade activity and is categorized in Level 3 of the fair value hierarchy. The following table summarizes the fair value and carrying value of our third-party debt, excluding finance leases and unamortized debt issuance costs:

March 31, 2023December 31, 2022
(In millions)Fair ValueCarrying ValueFair ValueCarrying Value
Outstanding debt(1)
$19,167 $20,517 $18,095 $19,905 
(1)    Any amounts outstanding under the MPC Loan Agreement are not included in the table above, as the carrying value approximates fair value. This balance is reflected in Current liabilities - related parties in the Consolidated Balance Sheets.

10. Derivatives

As of March 31, 2023, MPLX had the following outstanding commodity contracts that were executed to manage the price risk associated with sales of propane during 2023:

Derivative contracts not designated as hedging instrumentsFinancial PositionNotional Quantity
Propane (gal)Short33,970,000 

Embedded Derivative - MPLX has a natural gas purchase commitment embedded in a keep-whole processing agreement with a producer customer in the Southern Appalachian region expiring in December 2027. The customer has the unilateral option to extend the agreement for one five-year term through December 2032. For accounting purposes, the natural gas purchase commitment and the term extending option have been aggregated into a single compound embedded derivative. The probability of the customer exercising its option is determined based on assumptions about the customer’s potential business strategy decision points that may exist at the time they would elect whether to renew the contract. The changes in fair value of this compound embedded derivative are based on the difference between the contractual and index pricing, the probability of the producer customer exercising its option to extend, and the estimated favorability of these contracts compared to current market conditions. The changes in fair value are recorded in earnings through Purchased product costs in the Consolidated Statements of Income. For further information regarding the fair value measurement of derivative instruments, see Note 9. As of March 31, 2023 and December 31, 2022, the estimated fair value of this contract was a liability of $58 million and $61 million, respectively.

Certain derivative positions are subject to master netting agreements, therefore, MPLX has elected to offset derivative assets and liabilities that are legally permissible to be offset. As of March 31, 2023 and December 31, 2022, there were no derivative assets or liabilities that were offset in the Consolidated Balance Sheets.

We make a distinction between realized or unrealized gains and losses on derivatives. During the period when a derivative contract is outstanding, changes in the fair value of the derivative are recorded as an unrealized gain or loss. When a derivative contract matures or is settled, the previously recorded unrealized gain or loss is reversed, and the realized gain or loss of the contract is recorded. The impact of MPLX’s derivative contracts not designated as hedging instruments and the location of gains and losses recognized in the Consolidated Statements of Income is summarized below:
Three Months Ended 
March 31,
(In millions)20232022
Product sales:
Unrealized gain$$— 
Product sales derivative gain— 
Purchased product costs:
Realized loss(3)(5)
Unrealized gain
Purchased product cost derivative gain— 
Total derivative gain included in Net income$2 $4 

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11. Debt

MPLX’s outstanding borrowings consist of the following:

(In millions)March 31,
2023
December 31,
2022
MPLX LP:
MPLX Credit Agreement$— $— 
Fixed rate senior notes20,657 20,046 
Consolidated subsidiaries:
MarkWest12 23 
ANDX31 31 
Financing lease obligations
Total20,707 20,108 
Unamortized debt issuance costs(130)(117)
Unamortized discount(183)(195)
Amounts due within one year(1)(988)
Total long-term debt due after one year$20,393 $18,808 

Credit Agreement

MPLX’s credit agreement (the “MPLX Credit Agreement”) matures in July 2027 and, among other things, provides for a $2 billion unsecured revolving credit facility and letter of credit issuing capacity under the facility of up to $150 million. Letter of credit issuing capacity is included in, not in addition to, the $2 billion borrowing capacity. Borrowings under the MPLX Credit Agreement bear interest, at MPLX’s election, at either the Adjusted Term SOFR or the Alternate Base Rate, both as defined in the MPLX Credit Agreement, plus an applicable margin.

There was no activity on the MPLX Credit Agreement during the three months ended March 31, 2023.

Fixed Rate Senior Notes

MPLX’s senior notes, including those issued by consolidated subsidiaries, consist of various series of senior notes maturing between 2024 and 2058 with interest rates ranging from 1.750 percent to 5.650 percent. Interest on each series of notes is payable semi-annually in arrears on various dates depending on the series of the notes.

On February 9, 2023, MPLX issued $1.6 billion aggregate principal amount of notes, consisting of $1.1 billion principal amount of 5.00 percent senior notes due 2033 (the “2033 Senior Notes”) and $500 million principal amount of 5.65 percent senior notes due 2053 (the “2053 Senior Notes”). The 2033 Senior Notes were offered at a price to the public of 99.170 percent of par with interest payable semi-annually in arrears, commencing on September 1, 2023. The 2053 Senior Notes were offered at a price to the public of 99.536 percent of par with interest payable semi-annually in arrears, commencing on September 1, 2023.

On February 15, 2023, MPLX used $600 million of the net proceeds to redeem all of the outstanding Series B preferred units. On March 13, 2023, MPLX used the remaining proceeds from the issuance of the 2033 Senior Notes and 2053 Senior Notes discussed above, and cash on hand, to redeem all of MPLX’s and MarkWest’s $1.0 billion aggregate principal amount of 4.50 percent senior notes due July 2023, at par, plus accrued and unpaid interest. The redemption resulted in a loss of $9 million due to the immediate expense recognition of unamortized debt discount and issuance costs for the three months ended March 31, 2023, which is included on the Consolidated Statements of Income as Other financial costs.

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12. Revenue

Disaggregation of Revenue

The following tables represent a disaggregation of revenue for each reportable segment for the three months ended March 31, 2023 and March 31, 2022:

Three Months Ended March 31, 2023
(In millions)L&SG&PTotal
Revenues and other income:
Service revenue$83 $522 $605 
Service revenue - related parties950 953 
Service revenue - product related— 79 79 
Product sales418 420 
Product sales - related parties67 70 
Total revenues from contracts with customers$1,038 $1,089 2,127 
Non-ASC 606 revenue(1)
586 
Total revenues and other income$2,713 

Three Months Ended March 31, 2022
(In millions)L&SG&PTotal
Revenues and other income:
Service revenue$72 $482 $554 
Service revenue - related parties911 915 
Service revenue - product related— 123 123 
Product sales496 497 
Product sales - related parties42 45 
Total revenues from contracts with customers$987 $1,147 2,134 
Non-ASC 606 revenue(1)
476 
Total revenues and other income$2,610 
(1)    Non-ASC 606 Revenue includes rental income, sales-type lease revenue, income from equity method investments, and other income.

Contract Balances

Our receivables are primarily associated with customer contracts. Payment terms vary by product or service type, however the period between invoicing and payment is not significant. Included within the receivables are balances related to commodity sales on behalf of our producer customers, for which we remit the net sales price back to the producer customers upon completion of the sale. These balances are included in Receivables, net on the Consolidated Balance Sheets.

Under certain of our contracts, we recognize revenues in excess of billings which we present as contract assets. Contract assets typically relate to deficiency payments related to minimum volume commitments and aid in construction agreements where the revenue recognized and MPLX’s rights to consideration for work completed exceeds the amount billed to the customer. Contract assets are included in Other current assets and Other noncurrent assets on the Consolidated Balance Sheets.

Under certain of our contracts, we receive payments in advance of satisfying our performance obligations, which are recorded as contract liabilities. Contract liabilities, which we present as Deferred revenue and Long-term deferred revenue, typically relate to advance payments for aid in construction agreements and deferred customer credits associated with makeup rights and minimum volume commitments. Related to minimum volume commitments, breakage is estimated and recognized into service revenue in instances where it is probable the customer will not use the credit in future periods. We classify contract liabilities as current or long-term based on the timing of when we expect to recognize revenue.

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The tables below reflect the changes in ASC 606 contract balances for the three-month periods ended March 31, 2023 and March 31, 2022:

(In millions)Balance at December 31, 2022Additions/ (Deletions)
Revenue Recognized(1)
Balance at
March 31, 2023
Contract assets$21 $(5)$— $16 
Long-term contract assets(1)— — 
Deferred revenue57 (14)45 
Deferred revenue - related parties63 32 (26)69 
Long-term deferred revenue216 15 — 231 
Long-term deferred revenue - related parties25 — 26 
Contract liabilities— — 
Long-term contract liabilities$$(2)$— $— 

(In millions)Balance at December 31, 2021Additions/ (Deletions)
Revenue Recognized(1)
Balance at
March 31, 2022
Contract assets$25 $(18)$— $
Long-term contract assets— — 
Deferred revenue56 11 (9)58 
Deferred revenue - related parties60 34 (26)68 
Long-term deferred revenue135 — 137 
Long-term deferred revenue - related parties31 — — 31 
Long-term contract liabilities$$— $— $
(1)     No significant revenue was recognized related to past performance obligations in the current periods.

Remaining Performance Obligations

The table below includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

As of March 31, 2023, unsatisfied performance obligations included in the Consolidated Balance Sheets are $370 million and will be recognized as revenue as the obligations are satisfied, which is expected to occur over the next 21 years. A portion of this amount is not disclosed in the table below as it is deemed variable consideration due to volume variability. Additionally, we do not disclose information on the future performance obligations for any contract with an original expected duration of one year or less.

(In millions)
2023$1,346 
20241,680 
20251,589 
20261,433 
20271,312 
2028 and thereafter708 
Total revenue on remaining performance obligations(1)(2)(3)
$8,068 
(1)    All fixed consideration from contracts with customers is included in the amounts presented above. Variable consideration that is constrained or not required to be estimated as it reflects our efforts to perform is excluded.
(2)    Revenues classified as Rental income and Sales-type lease revenue are excluded from this table.
(3)    Only minimum volume commitments that are deemed fixed are included in the table above. MPLX has various minimum volume commitments in processing arrangements that vary based on the actual Btu content of the gas received. These amounts are deemed variable consideration and are excluded from the table above.

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13. Supplemental Cash Flow Information
 Three Months Ended 
March 31,
(In millions)20232022
Net cash provided by operating activities included:
Interest paid (net of amounts capitalized)$270 $213 
Income taxes paid— 
Non-cash investing and financing activities:
Net transfers of property, plant and equipment (to)/from materials and supplies inventories— 
Net transfers of property, plant and equipment to lease receivable$28 $10 

The Consolidated Statements of Cash Flows exclude changes to the Consolidated Balance Sheets that do not affect cash. The following is a reconciliation of additions to property, plant and equipment to total capital expenditures:
 Three Months Ended 
March 31,
(In millions)20232022
Additions to property, plant and equipment$169 $169 
Increase in capital accruals22 
Total capital expenditures$191 $172 

14. Commitments and Contingencies

MPLX is the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. Some of these matters are discussed below. For matters for which MPLX has not recorded a liability, MPLX is unable to estimate a range of possible loss because the issues involved have not been fully developed through pleadings, discovery or court proceedings. However, the ultimate resolution of some of these contingencies could, individually or in the aggregate, be material.

Environmental Matters

MPLX is subject to federal, state and local laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for non-compliance.

Accrued liabilities for remediation totaled $17 million at both March 31, 2023 and December 31, 2022. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties, if any, that may be imposed.

MPLX is involved in environmental enforcement matters arising in the ordinary course of business. While the outcome and impact to MPLX cannot be predicted with certainty, management believes the resolution of these environmental matters will not, individually or collectively, have a material adverse effect on its consolidated results of operations, financial position or cash flows.

Other Legal Proceedings

In July 2020, Tesoro High Plains Pipeline Company, LLC (“THPP”), a subsidiary of MPLX, received a Notification of Trespass Determination from the Bureau of Indian Affairs (“BIA”) relating to a portion of the Tesoro High Plains Pipeline that crosses the Fort Berthold Reservation in North Dakota. The notification demanded the immediate cessation of pipeline operations and assessed trespass damages of approximately $187 million. After subsequent appeal proceedings and in compliance with a new order issued by the BIA, in December 2020, THPP paid approximately $4 million in assessed trespass damages and ceased use of the portion of the pipeline that crosses the property at issue. In March 2021, the BIA issued an order purporting to vacate the BIA's prior orders related to THPP’s alleged trespass and direct the Regional Director of the BIA to reconsider the issue of THPP’s alleged trespass and issue a new order. In April 2021, THPP filed a lawsuit in the District of North Dakota against the United States of America, the U.S. Department of the Interior and the BIA (together, the “U.S. Government Parties”) challenging the March 2021 order purporting to vacate all previous orders related to THPP’s alleged trespass. On February 8, 2022, the U.S. Government Parties filed their answer and counterclaims to THPP’s suit claiming THPP is in continued trespass with respect to the pipeline and seek disgorgement of pipeline profits from June 1, 2013 to present, removal of the pipeline and remediation. We intend to vigorously defend ourselves against these counterclaims.

MPLX is also a party to a number of other lawsuits and other proceedings arising in the ordinary course of business. While the ultimate outcome and impact to MPLX cannot be predicted with certainty, management believes the resolution of these other
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lawsuits and proceedings will not, individually or collectively, have a material adverse effect on its consolidated financial position, results of operations or cash flows.

Guarantees related to indebtedness of equity method investees

We hold a 9.19 percent indirect interest in a joint venture that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, collectively referred to as the Bakken Pipeline system or DAPL. In 2020, the U.S. District Court for the District of Columbia (the “D.D.C.”) ordered the U.S. Army Corps of Engineers (“Army Corps”), which granted permits and an easement for the Bakken Pipeline system, to prepare an environmental impact statement (“EIS”) relating to an easement under Lake Oahe in North Dakota. The D.D.C. later vacated the easement. The EIS has been delayed and the Army Corps currently expects to release a draft EIS in 2023.

In May 2021, the D.D.C. denied a renewed request for an injunction to shut down the pipeline while the EIS is being prepared. In June 2021, the D.D.C. issued an order dismissing without prejudice the tribes’ claims against the Dakota Access Pipeline. The litigation could be reopened or new litigation challenging the EIS, once completed, could be filed. The pipeline remains operational.

We have entered into a Contingent Equity Contribution Agreement whereby MPLX LP, along with the other joint venture owners in the Bakken Pipeline system, has agreed to make equity contributions to the joint venture upon certain events occurring to allow the entities that own and operate the Bakken Pipeline system to satisfy their senior note payment obligations. The senior notes were issued to repay amounts owed by the pipeline companies to fund the cost of construction of the Bakken Pipeline system.

If the pipeline were temporarily shut down, MPLX would have to contribute its 9.19 percent pro rata share of funds required to pay interest accruing on the notes and any portion of the principal that matures while the pipeline is shutdown. MPLX also expects to contribute its 9.19 percent pro rata share of any costs to remediate any deficiencies to reinstate the permit and/or return the pipeline into operation. If the vacatur of the easement permit results in a permanent shutdown of the pipeline, MPLX would have to contribute its 9.19 percent pro rata share of the cost to redeem the bonds (including the one percent redemption premium required pursuant to the indenture governing the notes) and any accrued and unpaid interest. As of March 31, 2023, our maximum potential undiscounted payments under the Contingent Equity Contribution Agreement were approximately $170 million.

Contractual Commitments and Contingencies

From time to time and in the ordinary course of business, MPLX and its affiliates provide guarantees of MPLX’s subsidiaries payment and performance obligations in the G&P segment. Certain natural gas processing and gathering arrangements require MPLX to construct new natural gas processing plants, natural gas gathering pipelines and NGL pipelines and contain certain fees and charges if specified construction milestones are not achieved for reasons other than force majeure. In certain cases, certain producers may have the right to cancel the processing arrangements if there are significant delays that are not due to force majeure. As of March 31, 2023, management does not believe there are any indications that MPLX will not be able to meet the construction milestones, that force majeure does not apply or that such fees and charges will otherwise be triggered.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations should also be read in conjunction with the unaudited consolidated financial statements and accompanying footnotes included under Item 1. Financial Statements and in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022.

Disclosures Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, particularly Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market Risk, includes forward-looking statements that are subject to risks, contingencies or uncertainties. You can identify forward-looking statements by words such as “anticipate,” “believe,” “commitment,” “could,” “design,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “opportunity,” “outlook,” “plan,” “policy,” “position,” “potential,” “predict,” “priority,” “project,” “prospective,” “pursue,” “seek,” “should,” “strategy,” “target,” “will,” “would” or other similar expressions that convey the uncertainty of future events or outcomes.

Forward-looking statements include, among other things, statements regarding:

future financial and operating results;
environmental, social and governance (“ESG”) plans and goals, including those related to greenhouse gas emissions, diversity and inclusion and ESG reporting;
future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses;
the success or timing of completion of ongoing or anticipated capital or maintenance projects;
business strategies, growth opportunities and expected investments;
the timing and amount of future distributions or unit repurchases; and
the anticipated effects of actions of third parties such as competitors, activist investors, federal, foreign, state or local regulatory authorities, or plaintiffs in litigation.

Our forward-looking statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties and assumptions. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Material differences between actual results and any future performance suggested in our forward-looking statements could result from a variety of factors, including the following:

general economic, political or regulatory developments, including inflation, interest rates, changes in governmental policies relating to refined petroleum products, crude oil, natural gas, NGLs, renewables, or taxation;
the ability of MPC to achieve its strategic objectives and the effects of those strategic decisions on us;
further impairments;
negative capital market conditions, including an increase of the current yield on common units;
the ability to achieve strategic and financial objectives, including with respect to distribution coverage, future distribution levels, proposed projects and completed transactions;
the success of MPC’s portfolio optimization, including the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on our business, financial condition, results of operations and cash flows;
the adequacy of capital resources and liquidity, including the availability of sufficient cash flow to pay distributions and access to debt on commercially reasonable terms, and the ability to successfully execute business plans, growth strategies and self-funding models;
the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products, or renewables;
volatility in or degradation of general economic, market, industry or business conditions as a result of the COVID-19 pandemic, other infectious disease outbreaks, natural hazards, extreme weather events, the military conflict between Russia and Ukraine, other conflicts, inflation, rising interest rates or otherwise;
changes to the expected construction costs and timing of projects and planned investments, and the ability to obtain regulatory and other approvals with respect thereto;
completion of midstream infrastructure by competitors;
disruptions due to equipment interruption or failure, including electrical shortages and power grid failures;
the suspension, reduction or termination of MPC’s obligations under MPLX’s commercial agreements;
modifications to financial policies, capital budgets, and earnings and distributions;
the ability to manage disruptions in credit markets or changes to credit ratings;
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compliance with federal and state environmental, economic, health and safety, energy and other policies and regulations or enforcement actions initiated thereunder;
adverse results in litigation;
the effect of restructuring or reorganization of business components;
the potential effects of changes in tariff rates on our business, financial condition, results of operations and cash flows;
foreign imports and exports of crude oil, refined products, natural gas and NGLs;
changes in producer customers’ drilling plans or in volumes of throughput of crude oil, natural gas, NGLs, refined products, other hydrocarbon-based products, or renewables;
changes in the cost or availability of third-party vessels, pipelines, railcars and other means of transportation for crude oil, natural gas, NGLs, feedstocks, refined products, or renewables;
the price, availability and acceptance of alternative fuels and alternative-fuel vehicles and laws mandating such fuels or vehicles;
actions taken by our competitors, including pricing adjustments and the expansion and retirement of pipeline capacity, processing, fractionation and treating facilities in response to market conditions;
expectations regarding joint venture arrangements and other acquisitions or divestitures of assets;
midstream and refining industry overcapacity or undercapacity;
accidents or other unscheduled shutdowns affecting our machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers;
acts of war, terrorism or civil unrest that could impair our ability to gather, process, fractionate or transport crude oil, natural gas, NGLs, refined products, or renewables;
political pressure and influence of environmental groups upon policies and decisions related to the production, gathering, refining, processing, fractionation, transportation and marketing of crude oil or other feedstocks, refined products, natural gas, NGLs, other hydrocarbon-based products, or renewables;
the imposition of windfall profit taxes or maximum refining margin penalties on companies operating in the energy industry in California or other jurisdictions; and
our ability to successfully achieve our ESG goals and targets within the expected timeframe, if at all.

For additional risk factors affecting our business, see the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2022. We undertake no obligation to update any forward-looking statements except to the extent required by applicable law.

MPLX Overview

We are a diversified, large-cap master limited partnership formed by MPC in 2012 that owns and operates midstream energy infrastructure and logistics assets, and provides fuels distribution services. The business consists of two segments based on the nature of services it offers: Logistics and Storage (“L&S”) and Gathering and Processing (“G&P”). The L&S segment primarily engages in the gathering, transportation, storage and distribution of crude oil, refined products, other hydrocarbon-based products, and renewables. The L&S segment also includes the operation of our refining logistics, fuels distribution and inland marine businesses, terminals, rail facilities and storage caverns. The G&P segment provides gathering, processing and transportation of natural gas as well as the transportation, fractionation, storage and marketing of NGLs.

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Significant Financial and Other Highlights

Significant financial highlights for the three months ended March 31, 2023 and March 31, 2022 are shown in the chart below. Refer to the Results of Operations, the Liquidity and Capital Resources, and Non-GAAP Financial Information sections for further information.
9341
(1)    Non-GAAP measure. See reconciliations that follow for the most directly comparable GAAP measures.

Other Highlights

Generated $1,227 million of net cash provided by operating activities, $1,268 million of distributable cash flow attributable to MPLX, and $1,005 million of adjusted free cash flow in the first quarter of 2023.
Returned $821 million of capital to unitholders in the three months ended March 31, 2023, in the form of distributions.
Announced a first quarter 2023 distribution of $0.7750 per common unit.
Issued $1.6 billion of senior notes and used the proceeds to redeem all of the $0.6 billion outstanding Series B preferred units and $1.0 billion of senior notes due July 2023.

Current Economic Environment

In 2023, data indicates a slowed increase in inflation in the U.S. and globally. We cannot predict the effect of rising interest rates, the concern of a recession, and inflation and fuel prices on demand for our products and services. In response to this business environment, MPLX remains focused on executing its strategic priorities of strict capital discipline, fostering a low-cost culture, and portfolio optimization. To the extent permitted by competition, regulation and our existing agreements, many of which provide for inflation-based adjustments, we have passed along a portion of our increased costs to our customers in the form of higher fees and expect to continue to do so in the future.

Non-GAAP Financial Information

Our management uses a variety of financial and operating metrics to analyze our performance. These metrics are significant factors in assessing our operating results and profitability and include the non-GAAP financial measures of Adjusted EBITDA, DCF, adjusted free cash flow (“Adjusted FCF”), and Adjusted FCF after distributions. The amount of Adjusted EBITDA and DCF generated is considered by the board of directors of our general partner in approving MPLX’s cash distributions.

We define Adjusted EBITDA as net income adjusted for: (i) provision for income taxes; (ii) interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) gain on sales-type leases; (vii) impairment expense; (viii) noncontrolling interests; and (ix) other adjustments, as applicable. We also use DCF, which we define as Adjusted EBITDA adjusted for: (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment capital expenditures paid out; and (vi) other adjustments as deemed necessary.

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We define Adjusted FCF as net cash provided by operating activities adjusted for: (i) net cash used in investing activities; (ii) cash contributions from MPC; and (iii) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders.

We believe that the presentation of Adjusted EBITDA, DCF, Adjusted FCF and Adjusted FCF after distributions provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and DCF are net income and net cash provided by operating activities while the GAAP measure most directly comparable to Adjusted FCF and Adjusted FCF after distributions is net cash provided by operating activities. These non-GAAP financial measures should not be considered alternatives to GAAP net income or net cash provided by operating activities as they have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because non-GAAP financial measures may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of Adjusted EBITDA and DCF to their most directly comparable measures calculated and presented in accordance with GAAP, see Results of Operations. For a reconciliation of Adjusted FCF and Adjusted FCF after distributions to their most directly comparable measure calculated and presented in accordance with GAAP, see Liquidity and Capital Resources.

Comparability of our Financial Results

During the normal course of business, we amend or modify our contractual agreements with customers. These amendments or modifications require the agreements to be reassessed under ASU No. 2016-02, Leases (“ASC 842”), which can impact the classification of revenues or costs associated with the agreement. These reassessments may impact the comparability of our financial results.

Results of Operations

The following tables and discussion summarize our results of operations, including a reconciliation of Adjusted EBITDA and DCF from Net income and Net cash provided by operating activities, to the most directly comparable GAAP financial measures. This discussion should be read in conjunction with Item 1. Financial Statements and is intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance.
 Three Months Ended March 31,
(In millions)20232022Variance
Revenues and other income:
Total revenues and other income$2,713 $2,610 $103 
Costs and expenses:
Cost of revenues (excludes items below)308 287 21 
Purchased product costs406 467 (61)
Rental cost of sales20 37 (17)
Rental cost of sales - related parties15 (8)
Purchases - related parties361 319 42 
Depreciation and amortization296 313 (17)
General and administrative expenses89 78 11 
Other taxes30 34 (4)
Total costs and expenses1,517 1,550 (33)
Income from operations1,196 1,060 136 
Related-party interest and other financial costs— (4)
Interest expense, net of amounts capitalized224 198 26 
Other financial costs19 20 (1)
Income before income taxes953 838 115 
Provision for income taxes(4)
Net income952 833 119 
Less: Net income attributable to noncontrolling interests
Net income attributable to MPLX LP943 825 118 
Adjusted EBITDA attributable to MPLX LP(1)
1,519 1,393 126 
DCF attributable to MPLX(1)
$1,268 $1,210 $58 
(1)    Non-GAAP measure. See reconciliation below to the most directly comparable GAAP measures.
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 Three Months Ended March 31,
(In millions)20232022Variance
Reconciliation of Adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders from Net income:
Net income$952 $833 $119 
Provision for income taxes(4)
Interest and other financial costs243 222 21 
Income from operations1,196 1,060 136 
Depreciation and amortization296 313 (17)
Income from equity method investments(134)(99)(35)
Distributions/adjustments related to equity method investments153 132 21 
Other(1)
18 (4)22 
Adjusted EBITDA1,529 1,402 127 
Adjusted EBITDA attributable to noncontrolling interests(10)(9)(1)
Adjusted EBITDA attributable to MPLX LP1,519 1,393 126 
Deferred revenue impacts12 24 (12)
Sales-type lease payments, net of income(1)
Net interest and other financial costs(2)
(217)(204)(13)
Maintenance capital expenditures, net of reimbursements(44)(14)(30)
Equity method investment maintenance capital expenditures paid out(5)(3)(2)
Other(1)(10)
DCF attributable to MPLX LP1,268 1,210 58 
Preferred unit distributions(28)(32)
DCF attributable to GP and LP unitholders$1,240 $1,178 $62 
(1)    Includes unrealized derivative gain/(loss), non-cash equity-based compensation and other miscellaneous items.
(2)    Excludes gain/loss on extinguishment of debt and amortization of deferred financing costs.

 Three Months Ended March 31,
(In millions)20232022Variance
Reconciliation of Adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders from Net cash provided by operating activities:
Net cash provided by operating activities$1,227 $1,125 $102 
Changes in working capital items48 118 (70)
All other, net(9)(45)36 
Loss on extinguishment of debt— 
Net interest and other financial costs(1)
217 204 13 
Other adjustments to equity method investment distributions13 12 
Other24 (12)36 
Adjusted EBITDA1,529 1,402 127 
Adjusted EBITDA attributable to noncontrolling interests(10)(9)(1)
Adjusted EBITDA attributable to MPLX LP1,519 1,393 126 
Deferred revenue impacts12 24 (12)
Sales-type lease payments, net of income(1)
Net interest and other financial costs(1)
(217)(204)(13)
Maintenance capital expenditures, net of reimbursements(44)(14)(30)
Equity method investment maintenance capital expenditures paid out(5)(3)(2)
Other(1)(10)
DCF attributable to MPLX LP1,268 1,210 58 
Preferred unit distributions(28)(32)
DCF attributable to GP and LP unitholders$1,240 $1,178 $62 
(1)    Excludes gain/loss on extinguishment of debt and amortization of deferred financing costs.

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Three months ended March 31, 2023 compared to three months ended March 31, 2022

Total revenues and other income increased $103 million in the first quarter of 2023 compared to the same period of 2022. The increase was driven by higher throughput and rate escalations across the business and a $35 million increase in income from equity method investments. The increases were partially offset by a decrease in product sales revenue as a result of lower NGL prices during the first quarter of 2023 as compared to the same period of 2022.

Cost of revenues increased $21 million and rental cost of sales (including related party) decreased $25 million in the first quarter of 2023 compared to the same period of 2022. These offsetting variances reflect the modification of a gathering and compression agreement in the third quarter of 2022 (“Third-Party Lease Modification”) which resulted in a change in the presentation of expenses from rental cost of sales to cost of revenues.

Purchased product costs decreased $61 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to lower prices of $157 million in the Southwest and Southern Appalachia, partially offset by higher volumes in the Southwest of $82 million and increase of $6 million due to changes in the fair value of our embedded derivative.

Purchases - related parties increased $42 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to higher related-party purchased product costs and higher transportation costs.

Depreciation and amortization decreased $17 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to lower depreciation as a result of the derecognition of fixed assets in connection with the Third-Party Lease Modification in the third quarter of 2022. This decrease was partially offset by depreciation on new assets placed in service after the first quarter of 2022.

Interest expense, net of amounts capitalized increased $26 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to refinancing debt with fixed rate debt at higher interest rates in 2022 and 2023. These increases were partially offset by lower variable rate interest in 2023. Refer to the Liquidity and Capital Resources section for further information.


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Segment Results

We classify our business in the following reportable segments: L&S and G&P. We evaluate the performance of our segments using Segment Adjusted EBITDA. Segment Adjusted EBITDA represents Adjusted EBITDA attributable to the reportable segments. Amounts included in net income and excluded from Segment Adjusted EBITDA include: (i) depreciation and amortization; (ii) interest and other financial costs; (iii) income/(loss) from equity method investments; (iv) distributions and adjustments related to equity method investments; (v) gain on sales-type leases; (vi) impairment expense; (vii) noncontrolling interests; and (viii) other adjustments, as applicable. These items are either: (i) believed to be non-recurring in nature; (ii) not believed to be allocable or controlled by the segment; or (iii) are not tied to the operational performance of the segment.

The tables below present information about Segment Adjusted EBITDA for the reported segments for the three months ended March 31, 2023 and March 31, 2022.

L&S Segment
First Quarter L&S Segment Financial Highlights (in millions)
7780
Three Months Ended March 31,
(In millions)20232022Variance
Service revenue$1,033 $983 $50 
Rental income212 175 37 
Product related revenue
Sales-type lease revenue125 111 14 
Income from equity method investments71 52 19 
Other income14 12 
Total segment revenues and other income1,460 1,337 123 
Cost of revenues135 141 (6)
Purchases - related parties244 239 
Depreciation and amortization129 130 (1)
General and administrative expenses49 43 
Other taxes19 21 (2)
Total costs and expenses576 574 
Segment Adjusted EBITDA1,026 904 122 
Capital expenditures68 77 (9)
Investments in unconsolidated affiliates(1)
$15 $68 $(53)
(1)    The three months ended March 31, 2022 includes a contribution of $60 million to our Bakken Pipeline joint venture to fund our share of a debt repayment by the joint venture.

Three months ended March 31, 2023 compared to three months ended March 31, 2022

Service revenue increased $50 million in the first quarter of 2023 compared to the same period of 2022. This was primarily driven by increased pipeline and terminal throughput, higher pipeline tariff rates and $5 million from refining logistics fee escalations. These increases were partially offset by a decrease of $31 million from changes in the presentation of revenue between service revenue, rental income and sales-type lease revenue driven by modifications to agreements with MPC.

Rental income increased $37 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to an increase of $20 million from changes in the presentation of revenue between service revenue, rental income and sales-type
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lease revenue driven by modifications to agreements with MPC after the first quarter of 2022. There was also increased revenue of $9 million from refining logistics primarily due to fee escalations.

Sales-type lease revenue - related parties increased $14 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to an increase of $11 million from changes in the presentation of revenue between service revenue, rental income and sales-type lease revenue as a result of modifications to agreements with MPC, as well as from fee escalations.

Income from equity methods investments increased $19 million in the first quarter of 2023 compared to the same period of 2022. This was primarily driven by increased throughput on equity method investment pipeline systems.

Cost of revenues decreased $6 million due to environmental response and remediation costs incurred in the first quarter of 2022. This decrease was partially offset by pipeline imbalance losses and increased energy costs.

L&S Operating Data
24
Three Months Ended 
March 31,
20232022
L&S
Pipeline throughput (mbpd)
Crude oil pipelines3,642 3,380 
Product pipelines1,988 1,956 
Total pipelines5,630 5,336 
Average tariff rates ($ per barrel)(1)
Crude oil pipelines$0.93 $0.93 
Product pipelines0.85 0.82 
Total pipelines$0.90 $0.89 
Terminal throughput (mbpd)3,091 2,941 
Marine Assets (number in operation)(2)
Barges298 296 
Towboats23 23 
(1)     Average tariff rates calculated using pipeline transportation revenues divided by pipeline throughput barrels. Transportation revenues include tariff and other fees, which may vary by region and nature of services provided.
(2)     Represents total at end of period.
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G&P Segment
First Quarter G&P Segment Financial Highlights (in millions)
77 80
Three Months Ended March 31,
(In millions)20232022Variance
Service revenue$525 $486 $39 
Rental income51 81 (30)
Product related revenue564 661 (97)
Sales-type lease revenue 34 — 34 
Income from equity method investments63 47 16 
Other income/(loss)16 (2)18 
Total segment revenues and other income1,253 1,273 (20)
Cost of revenues200 198 
Purchased product costs406 467 (61)
Purchases - related parties117 80 37 
Depreciation and amortization167 183 (16)
General and administrative expenses40 35 
Other taxes11 13 (2)
Total costs and expenses941 976 (35)
Segment Adjusted EBITDA493 489 
Capital expenditures123 95 28 
Investments in unconsolidated affiliates$36 $42 $(6)

Three months ended March 31, 2023 compared to three months ended March 31, 2022

Service revenue increased $39 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to higher throughput fee rates in the Marcellus and Rockies, increased revenue from minimum volume commitments, and higher volumes.

Rental income decreased $30 million and sales-type lease revenue increased $34 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to changes in the presentation of revenue between rental income and sales-type lease revenue as a result of the Third-Party Lease Modification in the third quarter of 2022.

Product related revenue decreased $97 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to lower prices across all regions of $197 million, partially offset by higher volumes in the Southwest of $100 million.

Income from equity methods investments increased $16 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to higher volumes associated with several of our joint ventures in the Utica. Additionally, new capacity came online in the Southwest region in the fourth quarter of 2022 driving higher volumes over the prior period.

Other income increased $18 million in the first quarter of 2023 compared to the same period of 2022 due to a loss on disposal of assets recognized in the first quarter of 2022.

Purchased product costs decreased $61 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to lower prices of $157 million in the Southwest and Southern Appalachia, partially offset by higher volumes in the Southwest of $82 million, an increase of $6 million due to changes in the fair value of our embedded derivative.

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Purchases - related parties increased $37 million in the first quarter of 2023 compared to the same period of 2022. The increase is attributable to higher volumes and associated related-party purchased product costs in the Rockies and higher transportation costs from increased throughput in the Southwest.

Depreciation and amortization decreased $16 million in the first quarter of 2023 compared to the same period of 2022. This was primarily due to lower depreciation as a result of the derecognition of fixed assets in connection with the Third-Party Lease Modification in the third quarter of 2022. This decrease was partially offset by depreciation on new assets placed in service after the first quarter of 2022.

G&P Operating Data
23        24
(1)     Other includes Southern Appalachia, Bakken and Rockies Operations.

MPLX LP(1)
MPLX LP Operated(2)
Three Months Ended 
March 31,
Three Months Ended 
March 31,
2023202220232022
G&P
Gathering Throughput (MMcf/d)
Marcellus Operations1,363 1,314 1,363 1,314 
Utica Operations— — 2,460 1,813 
Southwest Operations1,381 1,307 1,816 1,476 
Bakken Operations156 147 156 147 
Rockies Operations442 394 564 526 
Total gathering throughput3,342 3,162 6,359 5,276 
Natural Gas Processed (MMcf/d)
Marcellus Operations4,045 4,015 5,553 5,529 
Utica Operations— — 494 423 
Southwest Operations1,401 1,384 1,720 1,541 
Southern Appalachian Operations230 224 230 224 
Bakken Operations154 143 154 143 
Rockies Operations454 407 454 407 
Total natural gas processed6,284 6,173 8,605 8,267 
C2 + NGLs Fractionated (mbpd)
Marcellus Operations(3)
533 468 533 468 
Utica Operations(3)
— — 28 23 
Southern Appalachian Operations10 10 10 10 
Bakken Operations19 21 19 21 
Rockies Operations
Total C2 + NGLs fractionated(4)
565 503 593 526 

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Three Months Ended 
March 31,
20232022
Pricing Information
Natural Gas NYMEX HH ($ per MMBtu)$2.77 $4.57 
C2 + NGL Pricing ($ per gallon)(5)
$0.77 $1.15 
(1)     This column represents operating data for entities that have been consolidated into the MPLX financial statements.
(2)     This column represents operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for MPLX-operated equity method investments.
(3)     Entities within the Marcellus and Utica Operations jointly own the Hopedale fractionation complex. Hopedale throughput is included in the Marcellus and Utica Operations and represent each region’s utilization of the complex.
(4)     Purity ethane makes up approximately 246 mbpd and 184 mbpd of MPLX LP consolidated total fractionated products for the three months ended March 31, 2023 and March 31, 2022, respectively. Purity ethane makes up approximately 253 mbpd and 188 mbpd of MPLX Operated total fractionated products for the three months ended March 31, 2023 and March 31, 2022, respectively.
(5)    C2 + NGL pricing based on Mont Belvieu prices assuming an NGL barrel of approximately 35 percent ethane, 35 percent propane, six percent Iso-Butane, 12 percent normal butane and 12 percent natural gasoline.

Seasonality

The volume of crude oil and refined products transported and stored utilizing our assets is affected by the level of supply and demand for crude oil and refined products in the markets served directly or indirectly by our assets. The majority of effects of seasonality on the L&S segment’s revenues will be mitigated through the use of our fee-based transportation and storage services agreements with MPC that include minimum volume commitments.

In our G&P segment, we experience minimal impacts from seasonal fluctuations which impact the demand for natural gas and NGLs and the related commodity prices caused by various factors including variations in weather patterns from year to year. We are able to manage the seasonality impacts through the execution of our marketing strategy. Overall, our exposure to the seasonality fluctuations is limited due to the nature of our fee-based business.

Liquidity and Capital Resources

Cash Flows

Our cash and cash equivalents were $393 million at March 31, 2023 and $238 million at December 31, 2022. The change in cash and cash equivalents was due to the factors discussed below. Net cash provided by (used in) operating activities, investing activities and financing activities were as follows:

 Three Months Ended 
March 31,
(In millions)20232022
Net cash provided by (used in):
Operating activities$1,227 $1,125 
Investing activities(220)(276)
Financing activities(852)(820)
Total$155 $29 

Net cash provided by operating activities increased $102 million in the first quarter of 2023 compared to the first quarter of 2022, primarily due to improved results from operations and decreased working capital requirements in the first quarter of 2023 compared to the first quarter of 2022.

Net cash used in investing activities decreased $56 million in the first quarter of 2023 compared to the first quarter of 2022, due to lower contributions to equity method investments. Contributions to equity method investments for the 2022 quarter included a $60 million contribution to our Bakken Pipeline joint venture to fund our share of a scheduled debt repayment by the joint venture.

Net cash used in financing activities increased $32 million in the first quarter of 2023 compared to the first quarter of 2022. The increase in the use of cash was due to $63 million of higher distributions paid to unitholders during the first quarter of 2023 as compared to the same period of 2022, as a result of the 10 percent increase in our base distribution effective for the third quarter of 2022. Net repayments, including the redemption of the Series B preferred units, in the first quarter of 2023 as compared to net borrowings in the first quarter of 2022 resulted in an increased use of cash of $68 million. These increases were offset by decreased spending on the unit repurchase program of $100 million in the first quarter of 2023 compared to the first quarter of 2022.

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Adjusted Free Cash Flow

The following table provides a reconciliation of Adjusted FCF and Adjusted FCF after distributions from net cash provided by operating activities for the three months ended March 31, 2023 and March 31, 2022.

Three Months Ended 
March 31,
(In millions)20232022
Net cash provided by operating activities(1)
$1,227 $1,125 
Adjustments to reconcile net cash provided by operating activities to adjusted free cash flow
Net cash used in investing activities(220)(276)
Contributions from MPC10 
Distributions to noncontrolling interests(10)(9)
Adjusted free cash flow1,005 850 
Distributions paid to common and preferred unitholders(821)(758)
Adjusted free cash flow after distributions$184 $92 
(1)    The three months ended March 31, 2023 and March 31, 2022 include working capital builds of $48 million and $118 million, respectively.

Debt and Liquidity Overview

On February 9, 2023, MPLX issued $1.6 billion aggregate principal amount of notes, consisting of $1.1 billion principal amount of 5.00 percent senior notes due 2033 (the “2033 Senior Notes”) and $500 million principal amount of 5.65 percent senior notes due 2053 (the “2053 Senior Notes”). The 2033 Senior Notes were offered at a price to the public of 99.170 percent of par with interest payable semi-annually in arrears, commencing on September 1, 2023. The 2053 Senior Notes were offered at a price to the public of 99.536 percent of par with interest payable semi-annually in arrears, commencing on September 1, 2023.

On February 15, 2023, MPLX used $600 million of the net proceeds to redeem all of the outstanding Series B preferred units. On March 13, 2023, MPLX used the remaining proceeds from the issuance of the 2033 Senior Notes and 2053 Senior Notes discussed above, and cash on hand, to redeem all of MPLX’s and MarkWest’s $1.0 billion aggregate principal amount of 4.50 percent senior notes due July 2023, at par, plus accrued and unpaid interest. The redemption resulted in a loss of $9 million due to the immediate expense recognition of unamortized debt discount and issuance costs for the three months ended March 31, 2023, which is included on the Consolidated Statements of Income as Other financial costs.

Our intention is to maintain an investment-grade credit profile. As of March 31, 2023, the credit ratings on our senior unsecured debt were as follows:
Rating AgencyRating
Moody’sBaa2 (stable outlook)
Standard & Poor’sBBB (stable outlook)
FitchBBB (stable outlook)

The ratings reflect the respective views of the rating agencies. Although it is our intention to maintain a credit profile that supports an investment grade rating, there is no assurance that these ratings will continue for any given period of time. The ratings may be revised or withdrawn entirely by the rating agencies if, in their respective judgments, circumstances so warrant.

The agreements governing our debt obligations do not contain credit rating triggers that would result in the acceleration of interest, principal or other payments solely in the event that our credit ratings are downgraded. However, any downgrades in the credit ratings of our senior unsecured debt ratings to below investment grade ratings could, among other things, increase the applicable interest rates and other fees payable under the MPLX Credit Agreement and may limit our ability to obtain future financing, including refinancing existing indebtedness.

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Our liquidity totaled $3.9 billion at March 31, 2023 consisting of:
March 31, 2023
(In millions)Total CapacityOutstanding BorrowingsAvailable
Capacity
MPLX Credit Agreement(1)
$2,000 $— $2,000 
MPC Loan Agreement1,500 — 1,500 
Total$3,500 $— 3,500 
Cash and cash equivalents393 
Total liquidity$3,893 
(1)     Outstanding borrowings include less than $1 million in letters of credit outstanding under this facility.

We expect our ongoing sources of liquidity to include cash generated from operations and borrowings under our revolving credit facilities and access to capital markets. We believe that cash generated from these sources will be sufficient to meet our short-term and long-term funding requirements, including working capital requirements, capital expenditure requirements, contractual obligations, and quarterly cash distributions. Our material future obligations include interest on debt, payments of debt principal, purchase obligations including contracts to acquire plant, property and equipment, and our operating leases and service agreements. We may also, from time to time, repurchase our senior notes or preferred units in the open market, in tender offers, in privately negotiated transactions or otherwise in such volumes, at market prices and upon such other terms as we deem appropriate and execute unit repurchases under our unit repurchase program. MPC manages our cash and cash equivalents on our behalf directly with third-party institutions as part of the treasury services that it provides to us under our omnibus agreement. From time to time, we may also consider utilizing other sources of liquidity, including the formation of joint ventures or sales of non-strategic assets.

The MPLX Credit Agreement contains certain representations and warranties, affirmative and restrictive covenants and events of default that we consider to be usual and customary for an agreement of this type. The financial covenant requires MPLX to maintain a ratio of Consolidated Total Debt as of the end of each fiscal quarter to Consolidated EBITDA (both as defined in the MPLX Credit Agreement) for the prior four fiscal quarters of no greater than 5.0 to 1.0 (or 5.5 to 1.0 during the six-month period following certain acquisitions). Consolidated EBITDA is subject to adjustments for certain acquisitions completed and capital projects undertaken during the relevant period. Other covenants restrict us and/or certain of our subsidiaries from incurring debt, creating liens on assets and entering into transactions with affiliates. As of March 31, 2023, we were in compliance with this financial covenant with a ratio of Consolidated Total Debt to Consolidated EBITDA of 3.52 to 1.0, as well as all other covenants contained in the MPLX Credit Agreement.

Equity and Preferred Units Overview

Unit Repurchase Program

On August 2, 2022 we announced the board authorization for the repurchase of up to an additional $1.0 billion of MPLX common units held by the public. The authorization has no expiration date. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated unit repurchases, tender offers or open market solicitations for units, some of which may be effected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be discontinued at any time.

No units were repurchased during the three months ended March 31, 2023. As of March 31, 2023, we had $846 million remaining under the repurchase authorization.

Redemption of the Series B Preferred Units

On February 15, 2023, MPLX exercised its right to redeem all 600,000 outstanding units of 6.875 percent Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Series B preferred units”). MPLX paid unitholders the Series B preferred unit redemption price of $1,000 per unit. See Note 5 to the unaudited consolidated financial statements for more information.

Distributions on the Series B preferred units were payable semi-annually in arrears on the 15th day, or the first business day thereafter, of February and August of each year up to and including February 15, 2023. In accordance with these terms, MPLX made a final cash distribution of $21 million to Series B preferred unitholders on February 15, 2023, in conjunction with the redemption.

Distributions

We intend to pay a minimum quarterly distribution to the holders of our common units of $0.2625 per unit, or $1.05 per unit on an annualized basis, to the extent we have sufficient cash from our operations after the establishment of cash reserves and the payment of costs and expenses, including reimbursements of expenses to our general partner. The amount of distributions paid
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under our policy and the decision to make any distributions is determined by our general partner, taking into consideration the terms of our partnership agreement. Such minimum distribution would equate to $263 million per quarter, or $1,051 million per year, based on the number of common units outstanding at March 31, 2023.

On April 25, 2023, MPLX declared a cash distribution for the first quarter of 2023, totaling $776 million, or $0.775 per common unit. This distribution will be paid on May 15, 2023 to common unitholders of record on May 5, 2023. Although our partnership agreement requires that we distribute all of our available cash each quarter, we do not otherwise have a legal obligation to distribute any particular amount per common unit. This rate will also be received by Series A preferred unitholders.

The allocation of total cash distributions is as follows for the three months ended March 31, 2023 and March 31, 2022. MPLX’s distributions are declared subsequent to quarter end; therefore, the following table represents total cash distributions applicable to the period in which the distributions were earned.
Three Months Ended 
March 31,
(In millions, except per unit data)20232022
Distribution declared:
Limited partner units - public$274 $257 
Limited partner units - MPC502 456 
Total LP distribution declared776 713 
Series A preferred units23 21 
Series B preferred units11 
Total distribution declared$804 $745 
Quarterly cash distributions declared per limited partner common unit$0.775 $0.705 

Capital Expenditures

Our operations are capital intensive, requiring investments to expand, upgrade, enhance or maintain existing operations and to meet environmental and operational regulations. Our capital requirements consist of growth capital expenditures and maintenance capital expenditures. Growth capital expenditures are those incurred for acquisitions or capital improvements that we expect will increase our operating capacity for volumes gathered, processed, transported or fractionated, decrease operating expenses within our facilities or increase operating income over the long term. Examples of growth capital expenditures include costs to develop or acquire additional pipeline, terminal, processing or storage capacity. In general, growth capital includes costs that are expected to generate additional or new cash flow for MPLX. In contrast, maintenance capital expenditures are those made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets and to extend their useful lives, or other capital expenditures that are incurred in maintaining existing system volumes and related cash flows.

MPLX’s initial capital investment plan for 2023 is $950 million, net of reimbursements, which includes growth capital of $800 million and maintenance capital of $150 million. Growth capital expenditures and investments in affiliates during the three months ended March 31, 2023 were primarily for gas processing plants and gathering projects in the Marcellus and Permian basins. We continuously evaluate our capital plan and make changes as conditions warrant.

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Our capital expenditures are shown in the table below:

 Three Months Ended 
March 31,
(In millions)20232022
Capital expenditures:
Growth capital expenditures$139 $148 
Growth capital reimbursements(1)
(33)(11)
Investments in unconsolidated affiliates51 110 
Capitalized interest(3)(2)
Total growth capital expenditures154 245 
Maintenance capital expenditures52 24 
Maintenance capital reimbursements(8)(10)
Total maintenance capital expenditures44 14 
Total growth and maintenance capital expenditures198 259 
Investments in unconsolidated affiliates(2)
(51)(110)
Growth and maintenance capital reimbursements(3)
41 21 
Increase in capital accruals(22)(3)
Capitalized interest
Additions to property, plant and equipment(2)
$169 $169 
(1)    Growth capital reimbursements include reimbursements from customers and our Sponsor. Prior periods have been updated to reflect these reimbursements to conform to the current period presentation.
(2)    Investments in unconsolidated affiliates and additions to property, plant and equipment are shown as separate lines within investing activities in the Consolidated Statements of Cash Flows.
(3)    Growth capital reimbursements are included in changes in deferred revenue within operating activities in the Consolidated Statements of Cash Flows. Maintenance capital reimbursements are included in the Contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows.

Contractual Cash Obligations

As of March 31, 2023, our contractual cash obligations included debt, finance and operating lease obligations, purchase obligations for services and to acquire property, plant and equipment, and other liabilities. During the three months ended March 31, 2023, our debt obligations increased by $600 million due to the issuance of Senior Notes and use of proceeds described above in Liquidity and Capital Resources-Debt and Liquidity Overview. There were no other material changes to our contractual obligations outside the ordinary course of business since December 31, 2022.

Off-Balance Sheet Arrangements

Off-balance sheet arrangements comprise those arrangements that may potentially impact our liquidity, capital resources and results of operations, even though such arrangements are not recorded as liabilities under GAAP. Our off-balance sheet arrangements are limited to guarantees that are described in Note 14 of the unaudited consolidated financial statements and indemnities as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Although these arrangements serve a variety of our business purposes, we are not dependent on them to maintain our liquidity and capital resources, and we are not aware of any circumstances that are reasonably likely to cause the off-balance sheet arrangements to have a material adverse effect on our liquidity and capital resources.

Transactions with Related Parties

At March 31, 2023, MPC owned our non-economic general partnership interest and held approximately 65 percent of our outstanding common units.

We provide MPC with crude oil, product pipeline, and trucking transportation services based on regulated tariff/contracted rates, as well as storage, terminal, fuels distribution, and inland marine transportation services based on contracted rates. We also have agreements with MPC under which we receive fees for operating MPC’s retained pipeline assets, providing management services for the marine business, and operating certain of MPC’s equity method investments. MPC provides us with certain services related to information technology, engineering, legal, accounting, treasury, human resources and other administrative services under employee services and omnibus services agreements.

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The below table shows the percentage of Total revenues and other income as well as Total costs and expenses with MPC:

Three Months Ended 
March 31,
20232022
Total revenues and other income50 %48 %
Total costs and expenses27 %24 %

For further discussion of agreements and activity with MPC and related parties see Item 1. Business in our Annual Report on Form 10-K for the year ended December 31, 2022 and Note 4 to the unaudited consolidated financial statements in this report.

Environmental Matters and Compliance Costs

We have incurred and may continue to incur substantial capital, operating and maintenance, and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately reflected in the prices of our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including, but not limited to, the age and location of its operating facilities.

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, actual expenditures may vary as the number and scope of environmental projects are revised as a result of improved technology or changes in regulatory requirements. There have been no significant changes to our environmental matters and compliance costs during the three months ended March 31, 2023.

Critical Accounting Estimates

As of March 31, 2023, there have been no significant changes to our critical accounting estimates since our Annual Report on Form 10-K for the year ended December 31, 2022.

Accounting Standards Not Yet Adopted

We have not identified any recent accounting pronouncements that are expected to have a material impact on our financial condition, results of operations or cash flows upon adoption. Accounting standards are discussed in Note 2 of the unaudited consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks related to the volatility of commodity prices. We employ various strategies, including the use of commodity derivative instruments, to economically hedge the risks related to these price fluctuations. We are also exposed to market risks related to changes in interest rates. As of March 31, 2023, we did not have any open financial derivative instruments to hedge the economic risks related to interest rate fluctuations; however, we continually monitor the market and our exposure and may enter into these arrangements in the future.

Commodity Price Risk

The information about commodity price risk for the three months ended March 31, 2023 does not differ materially from that discussed in Item 7A. Quantitative and Qualitative Disclosures about Market Risk of our Annual Report on Form 10-K for the year ended December 31, 2022.

Outstanding Derivative Contracts and Sensitivity Analysis

See Notes 9 and 10 to the unaudited consolidated financial statements for more information about the fair value measurement of our derivative instruments, including the natural gas embedded derivative, as well as the amounts recorded in our consolidated balance sheets and statements of income. We do not designate any of our commodity derivative instruments as hedges for accounting purposes.

Our open derivative positions at March 31, 2023 will expire at various times through 2023. We prepared a sensitivity analysis to estimate our exposure to market risk associated with our derivative instruments. Based on our open net positions at March 31, 2023, a 10 percent change in quoted market prices of our derivative instruments, assuming all other factors remain constant, could change the fair value of our derivative instruments and pre-tax operating income by $2.8 million. This analysis may differ from actual results.

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Interest Rate Risk and Sensitivity Analysis

Sensitivity analysis of the effect of a hypothetical 100-basis-point change in interest rates on outstanding third-party debt, excluding finance leases, is provided in the following table. Fair value of cash and cash equivalents, receivables, accounts payable and accrued interest approximate carrying value and are relatively insensitive to changes in interest rates due to the short-term maturity of the instruments. Accordingly, these instruments are excluded from the table.

(In millions)
Fair Value as of March 31, 2023(1)
Change in Fair Value(2)
Change in Income Before Income Taxes for the Three Months Ended March 31, 2023(3)
Outstanding debt
Fixed-rate$19,167 $1,626 N/A
Variable-rate(4)
$— $— $— 
(1)    Fair value was based on market prices, where available, or current borrowing rates for financings with similar terms and maturities.
(2)    Assumes a 100-basis-point decrease in the weighted average yield-to-maturity at March 31, 2023.
(3)    Assumes a 100-basis-point change in interest rates. The change to income before income taxes was based on the weighted average balance of all outstanding variable-rate debt for the three months ended March 31, 2023.
(4)    MPLX had no outstanding borrowings on the MPLX Credit Agreement as of March 31, 2023.

At March 31, 2023, our portfolio of third‑party debt consisted of fixed-rate instruments and outstanding borrowings, if any, under the MPLX Credit Agreement. The fair value of our fixed-rate debt is relatively sensitive to interest rate fluctuations. Our sensitivity to interest rate declines and corresponding increases in the fair value of our debt portfolio unfavorably affects our results of operations and cash flows only when we elect to repurchase or otherwise retire fixed-rate debt at prices above carrying value. Interest rate fluctuations generally do not impact the fair value of borrowings under our MPLX Credit Agreement, but may affect our results of operations and cash flows.

See Note 9 in the unaudited consolidated financial statements for additional information on the fair value of our debt.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) was carried out under the supervision and with the participation of management, including the chief executive officer and chief financial officer of our general partner. Based upon that evaluation, the chief executive officer and chief financial officer of our general partner concluded that the design and operation of these disclosure controls and procedures were effective as of March 31, 2023, the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

During the quarter ended March 31, 2023, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – Other Information

Item 1. Legal Proceedings

We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. While it is possible that an adverse result in one or more of the lawsuits or proceedings in which we are a defendant could be material to us, based upon current information and our experience as a defendant in other matters, we believe that these lawsuits and proceedings, individually or in the aggregate, will not have a material adverse effect on our consolidated results of operations, financial position or cash flows.

Item 103 of Regulation S-K promulgated by the SEC requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions, unless we reasonably believe that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than a specified threshold. We use a threshold of $1 million for this purpose.

Except as described below, there have been no material changes to the legal matters previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, MPLX has been negotiating a consent decree with the EPA with respect to multiple alleged violations of the National Emission Standards for Hazardous Air Pollutants by the Chapita, Coyote Wash, Island, River Bend and Wonsits Valley Compressor Stations in Utah as well as the Robinson Lake Gas Plant in North Dakota. On April 18, 2023 we entered into a consent decree with the EPA pursuant to which MPLX will pay a cash penalty of $2 million, incorporate additional remedial measures, and mitigate excess emissions associated with events covering MPLX gas plants and compressor stations located in Utah, North Dakota and Wyoming. The consent decree was lodged with the United States District Court of Utah on April 20, 2023 for court approval.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

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Item 6. Exhibits  
  Incorporated by Reference From  
Exhibit
Number
Exhibit DescriptionFormExhibitFiling DateSEC File No.Filed
Herewith
Furnished
Herewith
3.1S-13.1 7/2/2012333-182500
3.2S-1/A3.2 10/9/2012333-182500
3.38-K3.1 2/3/2021001-35714
10.1X
10.210-K10.45 2/23/2023001-35714
31.1X
31.2X
32.1X
32.2X
101.INSXBRL Instance Document: The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema Document.X
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.X
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.X
101.LABInline XBRL Taxonomy Extension Label Linkbase Document.X
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.X
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
MPLX LP
By:MPLX GP LLC
Its general partner
Date: May 2, 2023By:/s/ Kelly D. Wright
Kelly D. Wright
Vice President and Controller of MPLX GP LLC (the general partner of MPLX LP)

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