MPLX LP Elects New Director with Oil and Gas Industry Expertise

MPLX LP has elected Ray N. Walker Jr. to its board of directors, effective immediately. Walker has extensive experience in the oil and gas industry, particularly in the Marcellus and Utica basins. He previously served as chief operating officer of Encino Energy and executive vice president and chief operating officer of Range Resources Corporation. Walker will bring operating and technical expertise to MPLX as it progresses its natural gas and natural gas liquids growth strategy.

MPLX LP (NYSE: MPLX) has announced the election of Ray N. Walker Jr. to its board of directors, effective immediately. Walker brings extensive experience in the oil and gas industry, particularly in the Marcellus and Utica basins. He previously served as the chief operating officer of Encino Energy and executive vice president and chief operating officer of Range Resources Corporation.

Michael J. Hennigan, executive chairman of the MPLX board, stated, "Ray is a highly respected executive in the oil and gas industry with extensive experience in the Marcellus and Utica basins. The board and leadership team look forward to Ray's operating and technical expertise as we continue to progress our natural gas and natural gas liquids growth strategy" [1].

Walker also serves on the board of directors of Solaris Energy Infrastructure, Inc. He holds a Bachelor of Science degree in Agricultural Engineering with honors from Texas A&M University. His appointment is a significant addition to MPLX's leadership team, given his background and experience in the industry.

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. The company's assets include a network of crude oil and refined product pipelines, an inland marine business, light-product terminals, storage caverns, refinery tanks, docks, loading racks, and associated piping, as well as crude oil and natural gas gathering systems and pipelines, and natural gas and NGL processing and fractionation facilities in key U.S. supply basins [1].

MPLX's recent acquisition of Northwind Midstream is a strategic move to further enhance its integrated NGL value chain. This acquisition is expected to connect the Permian region to the Gulf Coast, as part of MPLX's "wellhead-to-water" strategy. This strategy will provide a pivotal competitive advantage and a major long-term cash flow source for the company [2].

MPLX has been capturing growth potential in the Permian Basin and has maintained consistent gross margins in the low-40% range over the last five years. The company's EBITDA and net margins have also shown significant growth during this period [2].

MPLX currently has about $1.386 billion in cash and cash equivalents and holds nearly $21.713 billion in total debt. The company's debt-to-equity ratio is 1.546, which is below the industry average of about 2.424. MPLX's interest coverage ratio is about 4.763, and its net debt-to-EBITDA ratio is approximately 3.447. Fitch has assigned an investment grade rating (BBB) to the company [2].

MPLX's expansion into overseas markets, particularly in the global NGL market, is expected to be a significant growth catalyst for the company. According to Grand View Research, the global NGL market size is set to expand by nearly 6% annually over the next five years [2].

References:
[1] https://www.prnewswire.com/news-releases/mplx-lp-announces-election-of-new-director-302537345.html
[2] https://seekingalpha.com/article/4815605-mplx-smart-acquisition-of-northwind-midstream-key-for-long-term-growth