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MPLX completes merger with MarkWest, ends Q4 with $43 million of cash
By Lisa Kerner
Charlotte, N.C., Feb. 3 – MPLX LP ended its fourth quarter on Dec. 31 with $43 million of cash on hand and $1.1 billion of availability under its $2 billion revolving credit facility, according to executive vice president and chief financial officer Nancy Buese.
The company held its earnings conference call on Wednesday.
On Dec. 4, MPLX and MarkWest Energy Partners completed their previously announced merger under which MarkWest became a wholly owned subsidiary of MPLX. In connection with the combination, MPLX assumed $4.1 billion of senior notes issued by MarkWest and MarkWest Energy Finance Corp.
MPLX amended its credit agreement on Dec. 4, increasing the bank revolving credit capacity to $2 billion from $1 billion.
Also in December, MPLX completed offers to exchange any and all outstanding MarkWest senior notes for up to $4.1 billion of new notes issued by MPLX having the same maturity and interest rates as the MarkWest senior notes. The exchange was completed for 98.4%, or $4 billion, of MarkWest senior notes, according to the earnings release.
The company reported a leverage ratio of 4.7 times on a covenant basis. MPLX said it remains committed to maintaining an investment-grade credit profile and is targeting a leverage ratio of four times by the end of 2016.
For the fourth quarter, MPLX had adjusted EBITDA of $286 million and distributable cash flow of $227 million.
MPLX is a master limited partnership formed in 2012 by Marathon Petroleum Corp. to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon-based products. The company is based in Findlay, Ohio.
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