MPLX LP (NYSE:MPLX) Q4 2018 Earnings Conference Call Transcript
Feb 07, 2019 • 11:00 am ET
Welcome to the MPLX Fourth Quarter 2018 Earnings Call. My name is Elan, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) Please note that this conference is now being recorded.
I would now like to turn the call over to Kristina Kazarian. Kristina, you may begin.
Kristina A. Kazarian
Morning, everyone, and welcome to the MPLX Fourth Quarter 2018 Earnings Webcast and Conference Call. The synchronized slides that accompany this call can be found on mplx.com under the Investor tab. On the call today are Gary Heminger, Chairman and CEO; Mike Hennigan, President; Pam Beall, CFO; and other members of the management team.
We invite you to read the safe harbor statements and non-GAAP disclaimer on Slide 2. It's a reminder that we will be making forward-looking statements during the call and during the question-and-answer session that follows. Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there, as well as in our filings with the SEC.
Now, I will turn the call over to Gary Heminger for opening remarks.
Gary R. Heminger
Thanks, Kristina. Good morning, and thank you for joining our call. 2018 was a transformational year for MPLX. At the beginning of -- at the beginning of the year, we outlined a number of strategic objectives and we finished the year executing these initial plans and much more. We expanded our business through multiple new projects, enhanced the stability of our cash flow and simplified our financial structure.
2018 marked the single largest increase in annual EBITDA since we became a public Company. We reported 2018 adjusted EBITDA of $3.5 billion, which increased $1.5 billion over the prior year and nearly $400 million of this increase was driven by organic investments. This magnitude of annual organic growth highlights the success of our commercial and operational teams. Their ability to develop and execute strategic projects not only provides industry solutions in the areas we operate, but also showcases our effective deployment of capital.
In our Logistics and Storage segment, we acquired an export terminal, expanded our Ozark and Wood River pipeline systems, added strategic tankage at Texas City and Patoka, and increased the size of our marine fleet. In the Gathering and Processing segment, we added 11 new plants, which expanded our processing capacity by nearly 1.5 billion cubic feet per day, and our fractionation capacity by 100,000 barrels per day.
Lastly, we delivered on our commitment of enhancing the financial strength of our business. The Company generated $2.8 billion in distributable cash flow during the year, was able to fund its organic growth program without issuing any public equity and returned nearly $2.1 billion to unit holders. We ended the year with coverage of 1.36 times, and a prudent leverage of less than 4 times.
Looking forward, we continue to focus on increasing our presence throughout the midstream value chain and developing assets