NEW YORK (Reuters) – MPLX LP on Tuesday reported total pipeline volume of about 5.1 million barrels per day (bpd) in the first quarter, stable from a year ago, but segment profits increased due to lower operating expenses.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the logistics and storage segment, the company’s largest, increased $ 24 million to $ 896 million in the first quarter compared to the same period in 2020.
MPLX said it had a $ 16 million impact on winter storm profits in the first quarter, due to lower volumes and higher energy costs.
A deep freeze that swept parts of the United States in February destroyed a third of oil refining capacity in the United States and sent natural gas and electricity prices to record highs.
Overall adjusted EBITDA attributable to MPLX was $ 1.4 billion, compared to $ 1.3 billion in the first quarter of 2020.
The company said it was evaluating opportunities to expand its logistical support to renewable fuels in order to participate in the energy transition, which has gained momentum in recent months.
Carbon capture and renewable diesel projects are among those being considered, a company executive said on a call for results, without providing further details.
The more than one million bpd Wink to Webster crude oil pipeline, in which MPLX has a stake, continues to grow, with segments and assets expected to be commissioned throughout 2021.
Pipeline companies rushed to increase capacity in the Permian Basin, the country’s largest, as shale production boomed. But a collapse in global demand for oil due to the COVID-19 pandemic and slow growth in shale production in the United States has left some middleman companies scrambling to fill pipelines to capacity.
Shares of MPLX rose about 1.2% in morning trading.
Reporting by Devika Krishna Kumar in New York; Editing by Bernadette Baum