MPLX LP Advances Gulf Coast NGL Strategy, Reports Strong 2024 Results

MPLX LP (NYSE: MPLX) has made significant strides in its Gulf Coast NGL strategy, announcing the construction of a fractionation complex and export terminal. The company also reported robust full-year 2024 results, with net income attributable to MPLX of $4.3 billion and adjusted EBITDA of $6.8 billion, up 10% and 8% year over year, respectively. MPLX returned $3.9 billion to unitholders in 2024 through a 12.5% quarterly distribution increase and $326 million of unit repurchases.

The Gulf Coast NGL strategy is a key driver of MPLX's growth objectives, with the company anticipating mid-teen returns on these projects. The fractionation complex and export terminal, located in Texas City, will have a capacity of 400,000 barrels per day (bpd), with each partner securing 200,000 bpd for their customers. The project is expected to be completed in early 2028, with a total investment of $1.4 billion split equally between MPLX and ONEOK (NYSE: OKE).

The strategic location of the export terminal in Texas City capitalizes on growing global LPG demand, particularly from Asia and Europe. The project's economics are compelling, with the Texas City location leveraging Marathon's existing infrastructure to reduce construction risks and provide cost efficiencies. The partnership with MPLX also contributes to the expected mid-teen returns on these projects.



In addition to the Gulf Coast NGL strategy, MPLX's strong 2024 results were driven by increased rates and throughputs in the Crude Oil and Products Logistics segment, as well as growth in the Natural Gas and NGL Services segment. The company's capital allocation strategy, which focuses on reinvesting in growth projects and returning capital to unitholders, has contributed to its success.



For the full year 2024, MPLX generated $5.9 billion in net cash provided by operating activities, $5.7 billion of distributable cash flow, and $3.9 billion of adjusted free cash flow, compared to $5.4 billion, $5.3 billion, and $4.1 billion, respectively, in 2023. The company's leverage ratio was 3.1x at the end of the quarter, reflecting its strong financial position.

In conclusion, MPLX LP's progress in its Gulf Coast NGL strategy, combined with its strong 2024 results, demonstrates the company's commitment to shareholder value and capital allocation strategy. The company's focus on reinvesting in growth projects and returning capital to unitholders has contributed to its success, and investors can expect continued growth and value creation in the future.