Business Context and Reporting Period
This Form 8-K, dated May 1, 2017, is filed by MPLX LP to provide supplemental information regarding its 2016 Unaudited Quarterly Recasted Statements of Income. The filing addresses the acquisition of Hardin Street Transportation LLC ("HST"), Woodhaven Cavern LLC ("WHC"), and MPLX Terminals LLC ("MPLXT") from Marathon Petroleum Corporation ("MPC") on March 1, 2017.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it references the "2016 Unaudited Quarterly Recasted Statements of Income" contained in Exhibit 99.1, which are incorporated by reference. The recasting adjusts historical results to include HST, WHC, and MPLXT as if they were part of the Partnership for the periods presented, utilizing MPC's historical basis for assets due to the common control nature of the transaction.
Material Changes
- Acquisition and Recasting: MPLX LP retrospectively adjusted historical financial results for all periods to include HST, WHC, and MPLXT.
- Accounting Treatment: Because the acquisition was a transfer between entities under common control, assets were recorded at MPC's historical basis rather than fair value.
- Scope of Recast: MPLXT results are recast effective April 1, 2016. Prior to this date, MPLXT was not considered a business for accounting purposes, and no financial results were available for recasting.
Guidance, Outlook, and Risks
Management states that the recasted statements are presented for illustrative purposes only based on available information and reasonable assumptions. The filing explicitly notes that these figures do not purport to represent what actual consolidated results would have been if the acquisitions had occurred on January 1, 2016, nor are they indicative of future consolidated results. Actual results may differ significantly from the amounts reflected in the recasted statements.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific numerical data in the 2016 Unaudited Quarterly Recasted Statements of Income.
- Verify the impact of the April 1, 2016 start date for MPLXT recasting on year-over-year comparisons.
- Confirm the historical basis of assets acquired from MPC versus fair value implications.
- Compare the recasted figures against the original 2016 Form 10-Q and Form 10-K filings to understand the magnitude of the adjustments.