MPLX - Earnings call transcript Q3 2017

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Operator

Welcome to the MPLX Third Quarter Earnings Call. My name is Ellan 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 being recorded. the to turn Wilson. now will call Lisa over I Lisa, begin. you may

Lisa Wilson

that to morning, Conference Third slides tab. can Good the you. mplx.com the found Call. this on be and synchronized and Thank Investors Webcast welcome MPLX under call Earnings Quarter The accompany XXXX

disclaimer call be President; members Actual to making call the in non-GAAP of our we forward-looking there a statements team. and from Factors statements invite during the differ you results Hennigan, the the with may filings It’s Gary Chief Safe cause Financial and and question-and-answer CEO; Heminger, today management what Slide On follows. included Beall, during to Chairman that Officer; read could well expect are reminder Harbor today. are the that as session will as Mike today X. materially Pam on SEC. we and the results actual other We differ that

for to Now I will Heminger turn over the Gary opening call remarks.

Gary Heminger

Lisa, of Thank was in record report Storage exceptional track its and pleased by strong performance and results. volumes Gathering quarter and operations, driven from Processing contributions our continuing This delivered Logistics to record everyone. that financial outstanding MPLX I’m excellence our another you, solid assets. and operational morning to good and

review to fields that logistic by dropdown MPLX, certain quarter. distribution dropdown committee. includes and EBITDA. year, which in also under in projected refining in the generate with ownership our $X.XX we offered the the the partnership the and currently are together services this joint total This has the progress announced complex from also pleased billion annual MPC, interest MPC identified earlier consistent is of last to with $X strategic remaining plans, We’re board’s assets making storage third are related actions independent offer consideration to acquired assets the pipelines

its dropdown of of GP first this of terms Once immediately initiate the partnership IDR will to close offer exchange XXXX. These support in in transactions the intended rate are the acquisition to interest, strategic Both finalized, the units. rights attractive for expect its including cost quarter and MPC We long-term. over capital distribution then first are quarter. the the to growth newly issued closed reduce of LP an in our common actions economic were

requisite All of subject these regulatory and conditions transactions and are including market to tax other approvals clearances.

we’ve review complete portfolio visibility growth IDR will our long-term credit With know value partnership long-term, one coverage. executed grade and dropdowns we choose. MPLX positioned distribution robust the be their maintaining that, highlights. to an significant a once you between growing distribution With opportunities is for to to of environment our many we growth are attractive or their a over in but the we The are don’t and where is that us profile have of will coverage. also maintain not it competitors to already support to shortly only having position an strong distributions organic because situation, in As our different to turn obligation let to the the The is over quarterly profile. projects, enhanced coverage of Mike? which investors further will me to Mike strong distribution strong a source call investment eliminated. financial operational be well and choose

Mike Hennigan

Gary. Thanks

to year ended distribution and In strong our per the common $XX.XX target cash approximately to adjusted The we flow XXXX. XXXX basis consecutive on growth partnership previous XX% of double-digit expect of the distribution mentioned, with of guidance quarter unit. quarterly continue our line distribution deliver we calendar we increase Yesterday distribution EBITDA to times. $XXX As XXth with in million. with growth $XXX and a Gary in for announced reported our of X.XX coverage million financial results record we distributable

our Access on storage update September an we provide we from Oil The expected in are to assets the further EBITDA X, pipeline the the ownership Xst. Storage These low MPC or of Logistics segment. include scale and Offshore the Port pipeline, a and certain interest completed assets adjusted Southern cap million pipeline. and joint mentioned, Pipeline Louisiana Gary Loop, interest explore SAX, Slide and adding diversity and generate on acquisition to Extension $XXX annual or assets approximately partnership. Turning in ownership to

which third includes first of earnings Pipeline. indirect Pipeline Bakken from full the quarter marked Dakota The quarter our interest Access System

pleased are our the receive first quarter. also cash distribution to We during

the the this make to Both with finding expected continue of our System projects mid for we expansion open Wood on announced successful season in progress Pipeline. are our of to expansion, expansion expansion and XXXX. connection We complete Ozark Pipeline River-to-Patoka

and Gathering overview Utica Slide of Moving in and the our an provides operation segment, Processing our through Shales. X Marcellus

third second sustain For over the We quarter, partnership. XX% the significant Higher fourth billion Utica to gathered increase over X.X the volumes a quarter. averaged new expect experienced gathering this feet per quarter in XX% and in third over quarter XXXX day, activity volumes we record these for increase drove our gathered at cubic volumes XXXX. increase and growth

Moving cubic per to new quarter, process a partnership. feet record for volumes, in we the also averaged approximately day the X billion

raising complexes day in reported complex processing to States. largest cubic second billion United among X.X the call, the in per Sherwood the the gas feet we plant size quarter of As service placed approximately July the in this

up be within out. utilization start to encouraged with full near the we to continue how as quickly three the the for operate volumes We at complex, months quarter have ramped

we Over the scheduled our on to at were Creek, have plants volumes Houston, growing we in Shales needs all just In for the and be Marcellus see for Farming addition Utica in to basis, XXXX. time are to utilization complexes. customers Houston Majorsville and at Sherwood, construction Majorsville, service strong that a of X% and Sherwood, support in continue under quarter. producer The

provides barrels a third a maintain Marcellus the and and summary the and again over heavier record XXX,XXX X, of the last year. ethane day in quarter We Slide XX% NGLs this representing anticipation of a the in same Utica regions. increase We for quarter balance on the fractionated a coming produced expect rate plants volumes of new utilization online. to the high year

The new plant full first Bluestone. de-ethanization at barrel quarter that of third quarter are XX,XXX operations the per marked day

the to strong largest Northeast this in are scale position. fractionated further the We add and plant

and provide by our our overview position region. We provider the takeaway ethane. large are scale also the purity demand by of expanding Southwest under opportunity growing of leveraging capture current choice projects de-ethanization partnership encouraged development in and well this an global X, we On service and basin is for in Slide and the system remain The to operations.

STACK the in play Basin Delaware we in plant XXXX, on in expect quarter new come the service of the shale of Southwest, mid well Argo construction to is plant expected We continue to in progress XXXX. by make and online Oklahoma Omega enter first plant the the the

I for refinery by employees for our our it of with XX%. cubic planted For the per to employees some was rate X.X to Harvey and system the from or the and area. at the Christi condition have day did related were during were the quarter every our utilization report of billion feet teamwork Corpus exhibit are to heavily Hurricane in strong hurricane. commend caused to applaud Southwest and testaments their fortunate pleased The to day. We want and volumes challenging dedication focus limited solid minimal damage outages care downtime the

we strategically. move summarize Before financials, me to we the are where let

IDR XXXX. previously, XXXX level and deliver guidance XX% following remain As dropdown distribution investors we coverage the growth I forecast digit plan year at to growth. growth high distribution and in on mentioned to with double of plan calendar elimination our year-over-year distribution provide We stated a and

mentioned, an unique distribution significant coverage long-term, rate to attractive a As and sustainable target the opportunity growth done utilizing the for transactions with Gary the maintaining growth. the combination high our sponsor partnerships partnership provides fund of for all while while to appropriate of distribution leverage level a

growing to Additionally we capital through organic expenditures. expect the partnership to continue

and MLP $X the of partnership offerings has distribution most we fund XXXX, for believe equity. value summary financial to and and equity issue growth will any elimination committed the with highlights. driving XXXX, this and capital we a organic growth, I public position of to approximately public not In with We organic the cost MPLX cover capital. Pam cash to capital growth, strong Pam? double-digit intend coverage debt to For the competitive plan remain retain capital of call billion investors. attractive our over now turn issue and IDR our to not space some for in fund one to forecast

Pam Beall

third third X, partnership. XXXX. The EBITDA some cash segment. income Mike. several highlights quarter. And, change Processing we partnership Thanks $XXX On to approximately adjusted shows generated $XXX Total of $XXX quarter EBITDA driven in by Slide from reported indicated which the and for EBITDA was XXXX and distributable are of operating the of quarterly Adjusted in Mike adjusted of by million Gathering as the both records items. million flow XX, from with we Slide for on third the of the by it million the quarter the million third of quarter segment the $XXX financial XX% provide XXXX increased bridge

First, the $XX Ozark for our well recently Storage EBITDA. Logistic the from accounted the as investment Pipeline our Access acquired earnings distributions in and million approximately related to of segment Dakota in change as Pipeline

the this acquired generated Second, quarter the EBITDA an of storage assets additional terminal pipeline from first in million MPC and $XX quarter.

of leverage dropped on And, segment did provides quarter on experience quarter, September of a forecast. pipeline At provided revolver key balance sponsored the of we our our versus commentary the contributed remain Next, on the financial and the the higher an strong approach grade committed We during available XX, benefit With and EBITDA. intercompany sheet and end ended Slide ratio additional a available is which comfortably appropriate discipline of had $XXX our volumes and $X.X also on gathered levels some quarter and commodity and remaining, the approximately to we sheet the profile. which million lastly On prices earnings facility the quarter flow change fractionated delivered the and higher we summary capital balance interest accounted of investment to quarter year, year. assets Xst joint X.X strong credit XX, third for Gathering we’ve financial XXXX bank process within $XX the MPC. the second our billion the forecast with the and last and call. Slide highlights storage update third times of investments. demonstrated provide this majority with of information. we not for earnings cash million one We select Processing an

result the expenditures. capital the a performance above guidance we this to of high provided exception finish the year previously end of the of ranges now As expect with

come to expenditures, capital provided capital previously guidance the expect to in growth range the our finish previous organic below and well. of For we anticipate we as below year maintenance

a current issuances there second retain growth cash result no increased looking this capacity retain of approximate we’ve fund of into XXXX grade our our strong to quarter profile. as plan a cash, other to and debt than during were although settlement sheet new public mentioned, fund performance credit ATM commitments with As organic and organic debt with equity, $X third the quarter. and maintaining And, Mike of billion capital balance no investment our growth is and the

And, the forecast unit. have XX%. We of calendar XXXX. guidance, prior distribution growth per to unitholders, yesterday for XXXX a common year growing growth $XX.XX the our distribution our record distribution calendar Board to expect declared of with general we strong partner distributions of a we double-digit Directors year of of approximately continue Consistent and

near to back the our for like proposition growth of turn strong opportunity, strategic in remain and sheet now balance long-term call attractive to the As initiative completion I’d investors. confident Lisa. we And, the value are we

Lisa Wilson

Thanks Pam.

one ask As limit follow-up. the questions, yourself for the we call open question to plus we that you

the for re-prompt permits. With questions. open we may that, questions will additional You time to now as call

Operator

you. Thank

will begin is our question-and-answer Instructions] first the session. question [Operator from from UBS. And, now Shneur Gershuni today We

Shneur Gershuni

guys. Hi, good morning

appreciate Just some the questions, just earlier had discussion before pewit call confirm I starting on your ask off, obviously you today. towards I to I MPC my wanted self-funding. just But

and on the and imply is can you if if flows purposes IDRs IDR implied. it’s just is whatever just cash value You wondering and for of function sort illustrative I really a stock was of the and will price the case about the just multiple premium that correct? talked it’s a MPLX multiple; and that’s confirm

Mike Hennigan

find the of goal it we a that’s said example goal is the for previous we an out. very very What for the past what be goal MPC Yes is where and MPC here Shneur, market calls for when brought I both that where and in think correctly are place And, Tim for Mike. on the there before the that pointed happy partnership the this is was consistent said will out out partnership. first the the was to the multiple back and illustrative parties

things the so is is best they approximately accomplished, of once the partnership, in of One XX% obviously accomplished, it’s MPC transaction in partnership. this will is have with interest in really the the most success the this own important the units

So, forward future. the transaction near to and I look think completed are aligned in in we really that get

Shneur Gershuni

are Right, the function but the price confirm, of had talked where just multiple number just that really premium it’s a it’s IDR just MPLX of to time? on so in sort an the about trading cash you implied a what flows how is at and and is more stock

Mike Hennigan

correct Yes, that’s Shneur.

taken itself sponsor The and party sides, this, spot process be the independent an and is all at is to end hit factors account all the in that feels the between both to come the sponsors, you entitled find a good flows, stock so will everybody transaction. cash think I directors and everybody premium where knows those the it’s head. the into the of be process. will will engagement So, the process goal And, into the into as well play with committee that the as the price from those come to day MPLX on on

Gary Heminge

other it’s Shneur, into to the illustration the would as the we provided have be. And, profile, this look profile, not multiples But only time, the it is growth unit we going Gary. you on well, the price at the that or are at earlier growth think gives level I get to the confidence you not think the factors a framework. we

Shneur Gershuni

few questions. a follow just up And, Perfect.

discussion, exports. product potentially refined Given that towards the flow of trend envision being to United Do instead we moving refined sort of the seems of States when the look of hydrocarbons line sort cap at be products pipeline you crude? in

Mike Henningan

crude. will No, be we expect this

Gulf advantage there’s X.X, would barrels that are tremendous out it that, at mechanically, a - go the really pipeline make across turn supply that of that have refined in of the If capacity transportation products Coast, crude day Coast because and it heavy look service, products, refineries and will Coast refining can that sense. heavy the sense into refining at supplied be nothing, over the are certainly of in the into technically, but too, Gulf from all time, coming this you could users capacity refiners but Eastern from the light in certainly the dotted product the that refined would X crude keep Gulf, heavy of certainly be stable not there’s that refiners distinct million entire to pipeline need Gulf a a it Canadian

Shneur Gershuni

MPLX tracker road MPLX, some for final at question, unlock this has Great. MPLX? IPO do sort of step up with both one the final And, expectation the see just you to discussed, kind of of MPC of create for down of and of its an [indiscernible] this next holding in value is envision what of boards MPCs entities sort is point

Gary Heminge

have Shneur outlined. now business as we the as right Mike tremendous growth just look at opportunities we

We strong coverage. have very

we shape So, have, we at time could we’re put growth we understand as further, what pretty certainly today. take the that place, that. not potential in certainly how in but we understand that a but be that to But necessary any it’s think good this we

Shneur Gershuni

guys. Perfect. you much jump Thank in back very I’ll queue.

Operator

you. Thank

is Genco Citi Investment Eric question next Our Research. from from

Eric Genco

exchange, lot that is handled? that IDRs be third-party consolidator come on require what the one a and your morning. talk sort that on the you and it different do good very, a investors I I the call, midstream desire transaction third-party the I probability MPC to possibility very the will would a before your the was just MPLX might at think amongst IDR you are transaction in level way space execute within past absolute of concern large ask issuance ask, up little is about of a in has ahead the wanted touched Hi, of to a but can

Gary Heminge

difficult given that, the complex already IDR on going find to next exchange, that are that and committee are with would our right first of dropdown are that stated the now. we’ve transaction, process closing to, we the I simultaneous and do, yes, now, been in the we is Eric all right to plan so that we goal get has our

Eric Genco

illustration on that, this of of push is more But this of you’re is to if IDR MPC what evidence have too it the is short-term of ahead feel both noticed I the I I I the spirit it but worth you, appreciate was growth I it pretty But to horse. to that appears exchange those XX% as go like thank just from I wouldn’t of I as again of to because along making entities? this and think sort saying, dead going guess MPC release for kind really yet asking XX% could to not that to case, I people it’s the beat was just MPLX the figure lines, covered like XX%, high its decision opposed MPLX, maximize am And, and of from this gain you do. XXXX perhaps work or MPLX an in to go once twice continuing and far and heard to in the long I term because people. you then looking before as perspective. sort from perspective sort the were MPC once you who committed for of strong sort incented prudent know felt isn’t going that distribution

Gary Heminge

this day said this MPLX think has has to Well, transaction the Eric has the there many work to the trade if for equation, income IDR yourself. by long-term. in the balance long-term, those it stream times after they of you be trade with question exchange well to I will detrimental after answered We’ve day MPC largest the many, being because owner MPCs to well far the doesn’t units,

to answered some do as you kind sides. a question, I for dialogue both And, think own going has you said fine as this I balanced balance, be good thread but and say, of it’s there be but you So, needle the have. a it’s to analysis, your to

Mike Henningan

growth to really Mike. Hey as rewarding it’s it’s market is as right stability. also today just I want rewarding much add Eric, the that coverage and not

of for the very that end we public that quarter at And, a organic that towards showing fact. have equity investors was into is the very part or think the for of level. plans program. of coverage, program of we this remainder previous think what the stated moved finished year And, target So, believe to we X.XX for publically looking which for, range we’ve lower the reason actually I we’re we’ve partnership issue that also we the strong we no XXXX for are

attractive partnership positioning a investors. we So, I think for are provide we’ll in place the place a very

Eric Genco

the sounds And, It for apologize leading I right doing [indiscernible]. are questions, like but things. all you

keep So, thanks up and work. your with

Gary Heminge

you. Thank

Mike Henningan

welcome. You’re

Operator

Thank you.

Markets. TJ Capital is from question from next Schultz Our RBC

TJ Schultz

Great, thanks.

that to and obviously internally market, to or the cash or think long-term well for you longer say setup want least? and you you business finance are find the to views growth how to way completely need right your at retain on to CapEx to have any here way to a for So, change now equity XXXX next do for sell from ability intimidating first, you generally take flow the view allows growth another you out want the growth you manage that just to really really that as distribution growth year funding term model, still growth don’t would level you and coverage turning distribution your just longer slow for or but term distribution

Mike Henningan

TJ, are for short-term the for for the long-term; Yes we’ve not run anything we doing gain. activating we the long term, partnership are just

you looking call we sector for activity it. So, that the as believe is

do. solid those rewarded, we all we being growth So, want do would sheet, rewarded, is we being isn’t coverage said to stability, balance do our things view but whereas are what

honor believe that to stated, as long-term guided at growth very the as be because the you to in commitment. that’s level double-digit will in going But previously time we coming real we of probably and the the us same are well. for we level we growth down strong for strong over future XXXX, going So, be sector, to distribution very a else, I we are think differentiate for ourselves important a everybody growth growth do from of have at

Pam Beall

just earnings to I be of in are we in It’s to and cash amount flow significant. and the substantial our Pam will generate and cash partnership, scale flow would of size diversification add, Beall like going

retained So, needs will still when we to with talk significant capacity about our as well self-funding, as fund a we debt cash. have our

we public being not equity. really just So, are of serial focused on that issuer

TJ Schultz

we on I for producer volumes, me expand into expect we gathered could just XQ large last it, the there increase the there and to Got guess just activity. if relates increase on expand large what in you may just may XXXX operations the as it what one on

Greg Floerke

I would we had mentioned Floerke. lot with regard I rig Utica the quarters, This to Utica, a the prior activities of in dry but into moved the is are is Greg say rich that pipelines is dry that area. facility driver, still and areas other to caddice gather coming the Rover online seeing activity which into connected as well. our is A in big

continue we're activity time. So, growth at and Utica. think in variation though we Marcelles this be to I and areas Drilling between seeing both there

TJ Schultz

thanks everybody. Okay,

Operator

Thank you.

question is from Stanley. next Our from Tom Abrams Morgan

Tom Abrams

compare. operating GMP Thanks.

was I said a commodity the that volume. say Does margins? mean of that think million majority you XX roughly that from

Pam Beall

But million the did said sum commodity strong in we on XX in that $X.XX year-over-year. real that about is we tax, lot not what is move there's that the that every that given of business. a prices is move we after see No. tax commodity margins

kind map did a So, it seem of that. on

Tom Abrams

in earnings was majority changes then Dapple. that the of and The And that? increase right. primarily distribution equity All the vast

Pam Beall

year this acquired both pipeline the say we we the wouldn’t of And year. throughout we have code course the I Well, those and drops we combination, access earlier that Dapple majority. It mention had that vast then the are a as made certainly well. pipeline is

Tom Abrams

the for the All right. then And maintenance CapEx and year? lower driving CapEx what's the growth

Mike Hennigan

this Tom, to employ maintenance side, our One the Hey trying as on in we a We will we're capital little as to organic stated factors Both bit side year. timing. is lower for together we of is two impacting things. Mike. discipline environment organic. this well in those capital is are and that Two those same come numbers the and X.XX timing, discipline bit factors guided in of have previously project of little than of capital this

Tom Abrams

Right. and And potential at lastly, from any implications delays Rover Mariner systems?

Mike Hennigan

we point. so. but of any both our we're up of supportive No, to like short see at those get don’t term we'll impact the projects system believe Obviously, don’t this them and to we in see

Tom Abrams

Great. a All guys. right, thanks lot,

Mike Hennigan

welcome. You're

Operator

Thank you.

next is from from Fargo. question Michael Blum Wells Our

Michael Blum

good morning, Hi, you. thank

been I any in leverage? fast thoughts updated the updated that's talked market, I term? the do in your you think either or what thoughts long guess question, you've XXXX Do in any or long is First term can pivot you about the you given in that just there, a where have obviously but be range target XXXX have put out think

Pam Beall

is this Pam. Yes,

I should in the I was do an that credit that will when of capacity maintaining have investment profile. leverage context So, earlier be talking added we about great everything

have we more I the little around capacity will a do to past. So, we But than focused we're we do think that's probably the EBITDA. bit the low burrow Four fours. in times, have

Michael Blum

I that line, cap asked think on call. was question on one just then prior the don’t And it. Got

to I capacity day takes the out the this as for line three It of in significantly barrels earlier, out owners a Just and there stated larger? cover open that XXX,XXX it three did season when I are why tango. to of is before, Michael. comes Yes, really go

a timing to barrels have around open all commercial to season. that the aspects We opportunity an is agree XXX,XXX partners the this an of for the out and agreement day put

So, that's more it that, than you're absolutely flow correct, will that. we derived how much

X.X opportunity I But barrels product on just viscosity flow in lot a end getting of here because the that's front the XXX heavy But won't road. commercial interest that of say Now crew that down more road. this that than made. much through. flow was a it of certainly million decision we're But moving will the day, will a down

Michael Blum

you. thank Great,

Gary Heminger

welcome. You're

Operator

Thank you.

is from question Tonet next from Our Jeremy JPMorgan.

Unidentified Analyst

Yes, this Jeremy. is for Troy

I most then in basis have rates giving more consistently current been gross, any the commentary out build broadly take the I looking any of And interest guess I at Argo there, addressed. mean of that is anything at high too, utilization interest think looking or maybe that away nature? Permian in there. questions on projects just part

Mike Hennigan

Obviously getting our next excited we're Yes. in early up XXXX. about plan

to and at participate could a the in And operations we growth. in that an Because we to look that's going provided plans the on focus. that continue emphasis to to growth of West for opportunities and the South area continue it's has opportunity So, And yes, be I look put we to in downstream head, more our we'll we're Permian those. an that still general. primary quite believe you bit yes, think hit on a other

Unidentified Analyst

All Thank right, you. great.

Mike Hennigan

welcome. You're

Operator

you. Thank

Our next from Jefferies. question from is Corey Goldman

Corey Goldman

guys. Hey

current in need spend, to Just just that XXXX understand too. it guys the more I you your and lower to CapEx fact I time just targeted least how at system one the but impact does explain given startup? doesn't

Mike Hennigan

impact our spend up soon possible Now on it it on it point. the situation. doesn't like our project as have impact support doesn't at Corey, and this direct Obviously have a as any to we but we see

Corey Goldman

then And just great. follow-up. Okay, a last

was ever in before I think the your included down, asset want drop just next you Is it open on discussed line. and the, is to interest the confirm I season? cap the on basically

Mike Hennigan

is No. and still MPC resized cap an it line with will for time. some

Corey Goldman

don’t that other could we suggested, drop be And view assets are know here candidate down there that the Okay. to any that just been about? potential

Mike Hennigan

drop we billion. Once $X we down, a complete have this big left

things include venture to assets be we of think drop majority aren’t in to drop joint we some down. that to million yet EBITDA of will shipping some considered that maybe have could they the some or ripe But over it's but would the and able done. I that time quite XX so be be

Corey Goldman

line reversal? cap XX okay. you, I million pretty And that's Got the assume

Mike Hennigan

be would correct. That

Corey Goldman

Got you.

Okay, thanks guys.

Operator

Thank you.

next from Our Justin Raymond is from James. Jenkins question

Justin Jenkins

guess your maybe with and progressing into note exacerbated question. the TJ's side things North someone more how by of East thanks. to customers detail guess the curious maybe one heading that from Great, commentary like was the seems a maybe some with maybe 'XX? on discussions in a on follow-up I next producers little year I'm EMP It yesterday. starting are I on your just into

Mike Hennigan

Yes, continues very constructive. be to

as what producer As natural a for important totally you their the think part high point and a on Marcellus the a roll sync gas know in the very customer. remain this of of customers, North in Utica area East to best in is this are And should we the development. you're that at believe out be with that we of the It side. plans point. area our majority one spend referring that development We're capital continue to and I

complex We our have of our and also our expansion Houston two come major plan the activities will Creek complex that development Harmon occurring, of online.

come it'll backend second towards first The the XXXX. come the 'XX online online in will early of and

potential continue good good feel to really the about continue about the feel in Marcellus the really Utica. term to area, So, long

very So, position. I good think we're still in a

Justin Jenkins

of coming might to stab system color maybe us see of the at that terms level partial in Perfect, give but a Pipeline Bakken full? distribution I sense in here. can of that Mike a taking versus you a cash appreciate Great been thinking and distribution have what

Pam Beall

Mike doesn't I'll information. sure make that reveal No,

pipe the minority you disclose owner as separately. know but of we're we don’t a that Now indirect we're

Justin Jenkins

had Fair Thanks, guys. enough, try. to

Mike Hennigan

welcome. You're

Operator

you. Thank

is question from Zarahn Mizuho. Brian next from Our

Brian Zarahn

morning. Good

Mike Hennigan

Brian. morning, Good

Brian Zarahn

financing for think equity. color have a on Just that next equity mix about how little we year. be the helpful, And drop time self-running the down should then of more

And should you've price mean keep that are amount assumptions, for how which year. only this unit the coverage? significant excess is take drop that any also, in the inner is of won't market and about got You downs ourselves we to how in impacts got the next more think the a here price equity where sensitive of volume to CapEx. fairly out And MPC equity

Mike Hennigan

Yes. things Couple of there Brian.

unique spend the in a a of be unique a equity in with we're peers sponsor, are. on positioning going ourselves a are model to and plan CX+ growth we're coverage fact DF about it capital. distribution because of high where XX,XXX put public capacity frac to in year, not mentioned is to a believe put XX,XXX that. First going to capacity. we of we exactly where X.X able strategic actions BCF where our $X we to of all, and to processing for next in are very growth looking about to position compared the on we're and we're investors solid of We're the position And organic summary just us billion have Gary issue position the of and predicated that's in that going quick self-funding

So, do we to in be able to unique that, it we're in position. a very believe

MLP that question and your very that So, good the about feeling was? second to offering think very spaces And strong. is

Pam Beall

on up it. The mix

Mike Hennigan

Yes.

Pam Beall

Yes.

when at So that beginning on all about on a XX/XX. it other around these drops of Brian, moved been of in composite. of XX/XX strike that aligned roughly the would And MPC of it's we drops But when transactions see on the you'll get the either from actions. be will the have the look still and we you side strategic that discussion XX/XX. the MPLX roughly balance side

Brian Zarahn

And no expected confirm MPC to, on not MPC to equity, is year to self-funding issued then units for? next the for expected are just

Pam Beall

for going and the no No, we're the drop not opportunity fund has growth saying at no. to of has No, to spending fields spending, think capital that where issue MPC unique equity partnership, queue capital. into maintenance trying distribution been we're $X billion then as we our said, the already on that's program. not our they capital just this the be

slug to the still all use it's high a partnership. for fund coverage that can business a and capital we free and distribution have the of maintain flow rate. significant attractive all So, cash It's at growth an

Brian Zarahn

get expectations XXXX to I appreciate since can maintenance to on next you expansion refine outlook CapEx what's your CapEx Want CapEx? question for on sideway range maintenance preliminary for but reasonable and XXXX the a 'XX CapEx for my maintenance

Mike Hennigan

haven’t given absolute number. we XXXX an on Brian, Hey

we're discipline Don's market done The things, in the come focus has that team, done and two team telling great Just $XXX job. going nice that million very a due capital team a below nice has we're the who who've to timing. to job.

a so And yet capital full to number. either, well going this Looking XXXX, to program disclose but in there below reasonably we come a as at at we're guided and we we our it don’t haven’t through number process that our gotten have point. far to haven’t

Brian Zarahn

Mike. Okay, Thanks, enough. fair

Mike Hennigan

welcome, You're Brian.

Operator

you. Thank

question Holder Our is Jerren from next from Goldman Sachs.

Jerren Holder

good Hi, morning.

Just terms this and Can wanted have remind to point. restructuring opportunities? how midstream just like you third of will us be to IDR more aggressive you some start guys believe in maybe event on you that at would a to that needs be commented of be more party post in active obviously M&A that and consolidated guys is you you exploring

Mike Hennigan

will that is It's excuse think Jarren I me, consolidating. not Jeremy it the that -- midstream

some accomplish IDR has already any up our done. that that very committee We that and us get set close to active nothing such well. they're at dropdown has simultaneous come have turned expect been But to looking assessing opportunities we've as exchange will yet earlier, size but in of over and the the we'd that stated or

in is that first So, mind and foremost now. our right

So, get us then opportunities done what to might we'll see there you're be. that see away, straight going

Jerren Holder

Thanks.

a result you we doing as update have obviously of where acres a terms as prices British terms guys dry acres from to any in you hedging. particular shift think are will also been a in how is about prices propane bit higher as more given then of wet prices? your any and As this Have customers, customers, follow-up, seen NGL far NGO of concerned XXXX see didn’t a higher you from there

Greg Floerke

This is again. Greg Floerke

drilling about Marcelles We growth robust. you our see is the rich here is as of in are seeing can

oil first see crude to for Marcelles. started disconnect prices see the are percent the propane We as $X.XX. happy in propane since shale above time of We the revolution a

by So, signs exports and driven really all and good storage.

So, I not curve it's the think yet. forward as curve, look reflected the we forward in at necessarily

pricing $X.XX or there In not yet. pricing we're terms $X.XX seeing of

a our does an really And impact fee that rich to moves. good a sign based. future. on will positive believe It's the the hedging. out provide for near most towards primarily benefit it's strategy being to your But really into obviously So, side move of have the customers we economics who pricing the get

Mike Hennigan

of I a as And The Mike. wet Greg lot add the thing constructive only on signs would mentioned robust seeing Jerren, we're is activity it's side.

that also which which dry the is We in commodity your strong Utica from mentioned picked our remarks activity us. last up has encouraging to in point, is as to the price And producers prepared well. we're for getting support the

factors So, seeing. constructive for looking and that activity we're all the the are positive

Jerren Holder

you. thank right, All

Greg Floerke

Yes, that's good had reasons.

Mike Hennigan

Welcome.

Operator

MS today our MUFG. Blaschke question Barrett final from is Thank And from you.

Barrett Blaschke

of guess Hey the been out mine see answered. you list. I have But already of on just NGL's looking lot a to what's Do through vertically guys for chain beyond sort more growth in particular? guys, for the desire supply any

Mike Hennigan

our to think one diversify the of portfolio. do Yes, is I going we're things

both L&S We GMP look the And opportunities have to a that. a about the goes business investigate to would we be is side. general different the downstream on to We're to side great that way In of GMP ahead I say our terrific going well and a of plan. things. I have we're foundation to lot open it think the

a try terrific to advantage diversify So, from foundation and of we're and a unique is have the our in and assets position now we there. opportunity take with

Barrett Blaschke

be preference let a a for be like of there maybe side? long Is it would you. more of be the for haul kind on, it what type you'd thank the product or NGL's more for would looking Okay, system to for

Mike Hennigan

we to at this really But be to point where to We're NGL the are. anything with systems closer honest we're open you. from

there things is in that able the this to we that be a haven’t our and be at do out thought service the provider to services we point. process other are of in some participated expand that want One of

Barrett Blaschke

you. Thank

Mike Hennigan

You're welcome.

Pam Beall

like you Myers and discussed Should Thank take have morning, interest you topic clarification Doug for joining to be on of this Denise call. in will us any and MPLX. today I your Wendt, the available or for additional your questions

Operator

And today's you. this conference. does Thank conclude

You may this disconnect time. at

MPLX (MPLX) 26 Oct 172017 Q3 Earnings call transcript