Business Context and Reporting Period
This Form 8-K filing by MPLX LP reports a material definitive agreement entered into on December 28, 2015. The filing was signed on January 4, 2016, by Nancy K. Buese, Executive Vice President and Chief Financial Officer.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on the terms of a new contractual agreement.
Material Changes and Agreements
MPLX LP entered into an Employee Services Agreement with MW Logistics Services LLC ("MW Logistics"), an indirect wholly-owned subsidiary of Marathon Petroleum Corporation ("MPC").
- Service Scope: MW Logistics provides operational and management services supporting assets owned or operated by MarkWest Energy Partners, L.P. (an indirect wholly-owned subsidiary of MPLX) and other MPLX business services.
- Compensation: MPLX pays a monthly fee covering total employee-based salary, wage, benefits costs, and other expenses incurred by MW Logistics.
- Term: The agreement is effective until December 28, 2020, with automatic renewal for two additional terms of up to five years each, unless terminated earlier.
Related Party and Ownership Structure
The agreement involves related parties within the MPC corporate family:
- MPLX GP LLC, the general partner managing MPLX, is an indirect wholly-owned subsidiary of MPC.
- Certain individuals serve as officers and directors of both MPLX GP and MPC.
- As of the filing date, MPC holds 56,932,134 MPLX Common Units (19.2% of outstanding units) and 6,800,475 general partner units (2% general partner interest).
Investor Verification Checklist
- Review the full text of the Employee Services Agreement attached as Exhibit 10.1 for specific termination provisions and fee calculation details.
- Verify the extent of shared personnel and potential conflicts of interest between MPLX GP and MPC.
- Monitor future filings for any amendments to the agreement or changes in the ownership percentage held by MPC.