UPDATE 2-MPLX net income rises in fourth qtr, pipeline throughputs flat

(Adds details from earnings conference call)

By Stephanie Kelly

NEW YORK, Jan 31 (Reuters) - Midstream energy company MPLX LP reported a higher net income for the fourth quarter of 2022 on Tuesday, while its total pipeline throughputs were flat compared to a year earlier.

MPLX reported a net income of $816 million, compared with $830 million for the fourth quarter of 2021. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $1.454 billion, compared with $1.445 billion for the fourth quarter of 2021.

In the company's logistics and storage segment, income from operations rose by $62 million compared to the same period in 2021, driven by higher pipeline tariff rates and contributions from joint ventures. However, higher project-related expenses partially offset those gains.

The average tariff rate was $0.89 per barrel for the quarter, an increase of 2% versus the same quarter of 2021.

Income from its gathering and processing segment decreased by $58 million compared to the fourth quarter of 2021. Higher volumes were offset largely by lower natural gas liquids prices.

Gathered volumes averaged 6.2 billion cubic feet per day (bcfd), a 14% increase from the fourth quarter of 2021. However, in the Marcellus, gathered volumes averaged 1.4 bcfd in the fourth quarter, a 1% decrease from a year earlier.

MPLX's capital spending outlook for 2023 is $950 million. The company will focus on expansions and de-bottlenecking of existing logistics and storage assets, while increasing gathering and processing capacity.

MPLX will expand natural gas long-haul and crude gathering pipelines supporting the Permian and Bakken basins, it said. Specifically in the Permian, MPLX is progressing its natural gas strategy with the expansion of the Whistler pipeline.

Also in the Permian, the 200 million cubic feet per day (mmcfd) Tornado ll processing plant began operating in the fourth quarter. MPLX is progressing its sixth 200 mmcfd processing plant in the basin, Preakness ll, which is expected online in the first half of 2024.

In the Marcellus, MPLX is progressing Harmon Creek ll, a 200 mmcfd processing plant expected online in the first half of 2024.

MPLX expects 2023 to be a strong year for product volumes, which would be a continuation from 2022, Shawn Lyon, a senior key executive at MPLX, said during the company's earnings call.

The company also expects that short-term natural gas price swings will not affect producer volumes in 2023, said Gregory Floerke, MPLX's chief operational officer. (Reporting by Stephanie Kelly; Editing by Bernadette Baum and Jonathan Oatis)