MPLX - Earnings call transcript Q4 2017

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Operator

Welcome to the MPLX Fourth Quarter 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 being recorded. the to turn Wilson. now will call Lisa over I Lisa begin. you may

Lisa Wilson

that to morning conference fourth slides Center can tab. Good the you. mplx.com the found call. this on be and synchronized and Thank Investor webcast welcome MPLX under call earnings quarter The accompany XXXX

be statements CEO; We statements we differ in the there as may Officer making On members and differ we cause today and of Heminger, today. no-GAAP invite Pam call read President; our and will our our results session Gary are included call filings Hennigan, Slide what from could forward-looking Harbor Beall, to is expect and question-and-answer during team. results you on other as Safe to the SEC. reminder materially Actual well the a Chairman management X. are Factors Mike disclaimer Chief the the follows. with that Financial It that during actual that

the Gary will I Slide Heminger over on remarks turn X. Now, opening for call to

Gary Heminger

pleased gathered as sequential well assets. storage of processed another as record outstanding our year and earnings good to our our our and report record everyone. in performance today, two releases volumes earnings plant XXXX. driven from press quarter actions. quarters fourth utilization delivered of continuing usual announcing Lisa morning was strategic I'm fractionated all four logistics announced the MPLX for completion by one Thanks previously growth exceptional We The of quarter issued and to in track and announcement the quarter contributions high and resulting

addition Utica per day. cubic by per additional growth the over nearly plants as partnership's increase will capacity XX% incremental organic the day Marcellus, nearly Permian billion feet processing prolific capacity per capacity day X.X fractionation barrels as announced the billion These and a basins. to We additions plan and of processing X.X for feet robust representing XXXX XXX,XXX processing well of cubic eight also of including

the Before and XX additional its The Early today. Mike over quarterly over XX.X% base natural and formation. expanded the recognize increased X take to the quarters fourth the in initial midstream strategic quarter year, consecutive I been distributions last at Since full unit which profile want MarkWest. late year over cash holders partnership to with to the offering the for call partnership's earnings we delivered In has shareholder partnerships a of minimum representing the of announced public to cover MPL plan turn XXXX, anniversary. five year, time we this into moment established addition annual distribution has transformed period. to a of value I MPLX's growth completed also XXXX, highlights business, gas asset enhance compound for action a rate

Standard the master very cost to credit among actions, with the BBB of partnership's cost GP of partnerships are capital. largest the to competitive nearly a of contributes transformed of common and the high in credit of drop sector by eliminating The annual executed approximately addition earnings $X.X revenue improving now partnership's energy future capital MPCs week, the we and partnership's distributable earnings by base transformation We're enthusiastic pleased strong limited MPLX's Poor's this corporate our is and These to MPLX issued interest generate newly for of base burden. were flow and diversifies further exchanged we and EBITDA have the MPLX fee-based MPLX part permanently MPLX's Earlier projected rating flat. the IDR about of well units. diversified the transactions upgrading As as downs streams assets quality as profile IDRs strategic MPLX. services including the see partnership. substantially to economic that recognize cash billion to doubling the

our and and Permian logistics in most shale STACK portfolio are which the Marcellus, plays Given among prolific or the of Utica, diversified the economic assets. suite getting in country robust projects and a

deliver With call positioned over growth that, and well for long-term extraordinarily turn a quarterly to the investors. operational on me our Slide to let sustainable to our review highlights X. are Mike? We financial Mike

Mike Hennigan

Gary. Thanks

fastest future. buying creates positions and and the let First the to IDR GP We be actions XXXX. by well to me for year out are holders in partnership common for expected the saying MPC. the path how compared accretion the one full third to we excited complete with this accretive The is unit start transactions the believe strategic to of similar quarter extraordinarily buying

flow Turning to Full fourth EBITDA coverage financial pleased quarter $X.X distributable million. results billion. $XXX distributable quarter was of $XXX quarterly of with ended of distribution and cash record flow and X.XXx report year. year to and million partnership adjusted over were full year strong full cash billion highlights. and The $X EBITDA the for We was the X.XXx with adjusted

this our XXth increase our targeted distribution XX% to for unit our XX.X% per quarter With we fourth announced mentioned consecutive delivered we last distribution growth rate growth Gary distribution As meeting in increase, XXXX over year. $X.XXXX a common quarterly the increase year. in

with profile. of We within levels investment for an the for distribution our credit leverage grade guidance also XXXX. of X.Xx The reaffirm partnership appropriate growth XX% year ended comfortably

logistics and Slide on our an storage to segment. X. Turning update We provide

for is continue MPC. projects, Work on quarter. mid-XXXX. expected completion and a Patoka is systems the on and progress Robinson nearing to win make cavern on is butane in be and are in complete MPLX to crude second of capital expected in both pipeline expansions the This River-to-Patoka our Ozark service and cushing be to deliver schedule several We source to which Wood

companies. arrangement provided for MPLX services and is MPC by third MPC storage a for are has revenue midstream and more previously party We to optimize partnership storage the able its incremental replacing effectively handling. capacity to garnered fee butane providing

and Utica in shales. Moving Marcellus segment. X Slide the of to our gathering and overview our an processing provides operations

new day partnership. the record gathered billion nearly the fourth averages X.X For quarter feet for volumes cubic per a

XXXX. growth with X.X for significant and the third experience gathered Utica over volumes per averaged approximately to XX%. day quarter fourth strong very XX% Process utilization XXXX was volumes quarter continue quarter partnership. Plant our a record in cubic the also new up fourth over at volumes XX% in We feet up million quarter

encouraged continue with growth the to volume We our at be Sherwood complex.

X completing Sherwood For We plants process is of basis. per in X.X a the year-end. quarter volumes the startup just our average plants with in first of XXXX. Sherwood billion feet of strategy cubic on at that plan on This over at consistent time day we Sherwood three at initiated constructing

Marcellus other production records new also the complex the facilities with set are fourth pleased as We each growth the volume in quarter. of in

XXX beyond basin, a nearly in scheduled regions. Creek year. XX,XXX fourth To Used day we quarter we strengthening increased these For Higher XX% Full a XXX,XXX increased the quarter utilization XX% considering the of and increase our X increased half Harmon additional operations largest in in produced a we followed in activity day same under year notable and Sherwood in feet have drove of day year summary barrels over in Slide of Utica capacity year barrels of three in this to a we process XX% heavier XX% representing commenced XX%. over Further added volumes quarter one the year. provides the cubic XXXX. as full and We growth Majorsville A in the plants complete position gathered the plant volumes over a achievement and plants increased northeast, to over the by NGLs processing to grow processing million the record Majorsville last the in ethane increase the is per of year Utica expect XXXX. XXXX. Full volumes at first fractionated construction. volumes de-ethenization volumes seven second in XXXX this support Marcellus continued our XXXX. and plant gathering full plant November. fractionator

XXXX, expect plus to our capacity ethane day propane capacity barrels XX,XXX we barrels fractionation of day at in per and Creek of add complex. fractionation XX,XXX Sherwood Hopedale Additionally and Harmon both at per

feet last new nearly for partnership. X. billion day the feet also for day a increase nearly and per quarter new X.X the our billion same a volumes cubic Process year representing southwest Moving Slide record X.X quarter a operations X% to the the cubic over for averaged on record. volumes quarter average setting per Gathered fourth

Our utilization rate for the quarter was at strong XX%.

averaged rise billion online our double prolific economic feet plant X.X Argo in total representing over increase of per over come addition Delaware to The the processing set cubic quarter. plant the complex volumes full For will X% of first and anticipate process highly continuing the We this XXXX. year capacity at quarter. our volumes in really our With during the an day year full Hidalgo to Basin. the commissioning

mid-XXXX. to our processing processing plant Omega STACK plant the in of these The XXXX. addition of We two of cubic play Southwest expected by also continue million by This increase is will construction day the shale feet XXX per in nearly Oklahoma. complete capacity plants

and to in We will million are Tupelo to the expected central also natural feet of capacity venture Hills earnings add the processing are through cubic plants Hickory and contribute Target Resources. into Oklahoma processing fourth of These investment southeast our venture per with home announce our joint and pleased gas joint quarter for plants, XXXX. day XXX

and Utica organic organic and of We primarily expanded growth On a We of the of Slide the outlook. our X, XX% $X processing spend segment for joint targeted Basin. in our approximately majority billion we the Marcellus, venture. for million maintenance is capital will Permian $XXX XXXX. of summary our ownership in forecast provide approximately capital maintain and capital The gathering

year barrels eight logistics our one supports capacity. remainder will processing and in this additions complete fractionators to day adding day the These United fractionation The of capacity expect States. cubic processing We capital of segment. organic of the XXX,XXX growth and the nearly billion of per our position plants of gas storage and enhance X.X processors per largest feet

complete earlier Wood systems Ozark mid-XXXX in cavern mentioned I is second pipeline quarter. River-to-Patoka the the completion the are butane to the for while Robinson expansions and expected targeted of in As

as barges marine farm solutions fee logistic fleet of currently while the MPC in and revenue Texas and third Texas market expected projects These utilized providing participants. by MPC. create Illinois to well which for to are City, partnership expansions include projects an based Patoka, expansion party Additional displace additional will tank other as our

summarize me financial let over our to Before I strategy. the turn cover to Pam highlights call

a over of to positioned well runway take into next investment and growth Demand providing the growth. for the our grow years the diverse relationships Our of a have Several GMP guided in of in set some by supported assets United located most double-digit prolific customers. of are to production economic of we NGLs is advantage producers States natural of are producer the gas and well and long expected us and largest are couple with long-term basins opportunities. to future that

quality the On high L&S that extensive are of MPC. operations side, the integral we have to maintained well assets

is Our to strategy opportunities service business to also industry deliver and continue expand solutions. MPAC great while a incremental infrastructure third provider being party to identifying

looking are NGL side as in on natural We side at our the of the portfolio. as crude also to opportunities both long-haul invest gas pipelines and well

plan intend do public not plan organic level cash XXXX an investment our and capital. our while grade and with coverage fund set fund where have to growth strong issue We to retained to capital at maintain We growth equity we organic a debt profile.

year and we to our at long-term have only time in a one should MPLX value. create guidance Although, confidence investors give ability

the MPLX and partnerships financial most strong believe using targeting now to growth long-term highlights. are offerings the We I while Pam and all rate the cover fund done distribution will the of call space. for attractive the attractive Pam? to in the MPL one levers appropriate turn growth. is We sustainable to over coverage

Pam Beall

you, Thank Mike.

million Full We $XXX over to billion. cash and distributable reported record XX. $XXX adjusted financial for year Turning flow of adjusted was our flow $X was and fourth cash on quarter. million EBITDA of highlights the Slide billion $X.X distributable

the by joint to The $XXX EBITDA the XXXX acquired interest drop in slide, pipeline bottom storage bridge operating $XXX million prior year change of with XXXX. the adjusted in XXXX. full Since over increased assets be of contributed $XX the total MPC logistics million. assets of Pipeline EBITDA. generated the as approximately segment. the the gathered, the of assets million increased was the billion XXXX quarter, X.XXX we and segment XX% the year Total the this XXXX terminal The downs increase share storage in additional of half for income by slide fourth first the year and The EBITDA generated the the the first EBITDA assets investment adjusted adjusted adjusted quarter of full pipeline segment logistics adjusted primarily over quarter gathering of third of quarter our million the as EBITDA pipeline. in for segment Access The the Higher in quarter, of storage well drops fractionated from from on of Focusing the volumes and Ozark EBITDA of MPC from XXXX the in and an processing $XXX the XXXX Dakota accounted the contributed After processed from Marine EBITDA generated quarter $XX adjusted terminal full in by driven of and acquired an of majority earnings million from also additional processing On prices fourth acquisition million benefited storage XXXX. was $XX year and the income the Slide and shows impact adjusted last the XX. slide segment. by were quarter with to change fourth the XXXX. increase the of in while dollars expect first we the the and XXXX. which largest XXXX and quarter pipelines the in versus quarter of by shows segment MPC generated from storage in for in the higher gathering year. acquired change commodity XX dropped

joint in adjusted an XXXX additional of dropped pipelines the the quarter interest storage third contributed $XX assets of EBITDA. million While and

XXXX with approximately available cash revolver no in in strategy million available retained and increased and with the the bank facility higher below safely our not Consistent ratio fund we need primarily segment our organic on by Again intercompany MPC. the On financial to primarily credit Pipeline and segment actions increase and from XXXX. on Our Based provide and logistics to the the maintaining $XXX of and approximately results billion and strategic by growth committed driven with Dakota flows select fours investment equity gathered MPC, issue grade sheet investments believe quarter. volumes. balance levels with public highlights information. And diversity following Ozark And had versus processing $X.X of organic pipeline. as $XX segment and ended from a we we again in credit ratio in by billion. comfortably sheet leverage rating. to cash prices processed XX, gathering adjusted the Slide can solid Mike of strong year issued million capital debt. the to a was we At summary in with for fourth the the profile. of equity also earnings storage record million XXXX benefited fund balance Access anticipate of ratio end capital investment an $XXX We're key fractionated and on public the appropriate and X.Xx year $X target the a EBITDA mentioned driven grade maintain scale partnership commodity our leverage -- do low We

to holders. growth of declared prior With directors the $X.XX unit. expect lower the IDR XXXX. distributions XX.X% our and of opportunities, unit common last strong long-term approximately holders. And our common calendar partner attractive general strong is $X.XXXX a well Consistent robust of of our were of board guidance organic deliver year and have for partnership cost XX%. sheet exchange distributions distribution distribution with increase a balance to we growth year positioned from per week per capital XXXX a unit We returns of growing nearly unit over record Full the

Lisa let me questions. to call your for back the turn So now over

Lisa Wilson

Thanks Pam.

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

additional open call time for reprompt will if the now questions. permits. that may we With to You questions

Operator

Thank you.

Instructions] Justin We question from begin question-and-answer Raymond Jenkins will the session. James. from now [Operator Our first today is

Justin Jenkins

STACK Permian out, reaching Hi. think growth it Good thinking clear. like with the a opportunities are morning, side the everybody. we J.V. I bigger should starting on on to the or activities very the about Marcellus crude mass guess processing Coast. has venturing and southwest the maybe just how the crude with But more opportunities, and or seems refining MPC out side on both the system Gulf NGL on haul into the long whether transportation there that gathering side integrate maybe it's other in

Mike Hennigan

that of have a is still the lot Hey, Permian. we of in what you it's question. We're great a I Justin. position This concentrating there. of the have But think activity discussed And in the big get very one opportunities exactly front active Mike. as we on. more Northeast is had It's of the on us and to we hit we're proud the we've head, already in

also hit natural pipelines long and strategic to going competitive of or And be the and other whether highly effort put those on. cry try be try obviously as get be presence. to two but that other to area get plant lot do it's need gas going second area lot grow a as one other want we're very focus transport up and to that to So It's going so highly an of we we're areas competitive, It's trying to is it area starting STACK penetration. ,we of concentrate we initiatives are haul a into our NGLs. our you well but our better or in an crude to

us So have Northeast. in we expanding Permian as the going buildout well growth our presence as the up for a on is priority of that continuing

Justin Jenkins

the or quarterly color if just I or that just Is fixed one Mike. component that appreciate volume seasonal question a any clarification fuel contract to is payment? And could. Perfect there quick distribution

Mike Hennigan

have around numbers that It's to It's but $XXX pretty on think million I in overall. previously. based general, volume pretty we that steady guided see steady going you're

Justin Jenkins

the Perfect. color guys. Appreciate

Operator

you. Thank

from is JPMorgan. question next Our Jeremy Tonet from

Jeremy Tonet

talked and about to you I far on your for GMP you want across the could where trying models wondering shake volumes double-digit is for a about our in out if the growth fill your talked the out footprint from of and I is Mike, for some to versus up business you're could areas hearing kind morning. color more little potential that XXXX? that producers. greater bit just was that pick others Good how there as as it for provide

Mike Hennigan

Yes.

Jeremy. has for XX% growth question, public. have guidance of looking far with next be couple So some an in Range good the numbers going been digit for also a they're growth been the two you'll there's about large talked couple previously customers see area. public with as double our a the up is and producers area been concentration of of area also that Overall, of strong in Antero years. well. doing of at Utica out gas dry that for came they're pretty couple years. And We've type results largest over in that what our as as to Marcellus that the

that activity for STACK. on Permian one bullish northeast encouraging at pretty occurring as the well that's in six why natural one overall up us. and Obviously, as So plants gas the in we're the side the in pretty that's is looking the we're

Jeremy Tonet

just where project. Thanks timing, going to expand more that. the that of little would Ozark color the That bit if And want the a just flows commitment for helpful. on are kind Okay. be the with you then, provide size, bit could a little there, on

Mike Hennigan

originally on base the Yes. of had that in roughly we're when expansion expansion at is looking about it. year acquired This top XXX,XXX the timing. business for Ozark, that of mid we about barrels we

in well. building an expansion Patoka as Patoka continuing on as to our So the Ozark area of L&S Wood side River into in tanks it's concentration from also well. We're addition we're

we mid upgrading about So it we're and to expanding that year. system online entire and be expect

Jeremy Tonet

Great. Thanks.

far building long more if as side, that just pipes, you're referencing that you could or when is sorry when And about haul the side were talking buying on as the earlier? I clarify

Mike Hennigan

plan at on M&A. sale evaluate. we're We always we obviously going any doesn't some think be to Well, both. have going will that that to count come Absent for there's a look that assets that

internal our organically. is So own plan on based growth always

more. from look we feed the that get to in going to as some as a side well-head business assets. like well. of at but MarkWest are are we're also opportunities get should expand we the that projects And then, takeaway both, think we little to applicable this just to have but we well our MPC system would assets bit where to has The involved looking terrific system in crude third as on legacy growth plan, been party to we So

Jeremy Tonet

it That's much. me. for Thank very you

Mike Hennigan

You're welcome.

Operator

Thank you.

next is from Our from Kazarian question Kristina Credit Suisse.

Kristina Kazarian

fracs first thinking Northeast, so existing of about in a more on Good you're that of and how year? are production talk the as bit Bcf cash asset about that and about you ramp operating be thinking as XXX,XXX afternoon, the the can processing uplift guys. coming little the both from how capacity flow on X.X volume should a barrels well cadence leverage kind question Mike, we quick of base online or this the of

Mike Hennigan

our the Yes. Kristina. in our we of Well, our we've do best you morning, Good this best give estimate to materials put see. timing tried when we that

XXXX and So knows, Sherwood back in we everybody rather quickly. up as filled X it's started

in We up last so Sherwood have and mid-year towards we or the X and year. XX just month of then scheduled XX end the started have and then this

Majorsville have So and we'll that. on production in thing Northeast, Harman that the we how assets see the Creek. ramps Same up other behind the

online. our and see timing. for month try as have in the materials more right But -- is you our billion exact see materials best as timing the we plan to in those year that's is tried we'll do X.X throughout And for year. you and those have up plants capacity. give what to about better what X.X public as estimate Once we've now So our color of the our give of are additional it coming progresses plants timing the best all we'll can or we public

Kristina Kazarian

as was like plant? for on more year things maybe maybe southwest another the Perfect. Omega the And a earlier, then can question little asked you opportunities little JV bit earlier just that got announced target turning well I back to as the additional have around this expansion expanded

Mike Hennigan

Yes.

on. that X in going we area, have initiatives down So

then looked a was with So have And Target a which in coming Target where the two XX% plant XXX% we we're Tupelo owner. XX% with opportunity mid-year. Target and Omega will by on There's is owner separate partner an plants, the owned at where be Targa JV, plant we're we a negotiated them will so we've deal in a our Hughes plant. Target, with pick And we being plant XX% the It's and a we up ownership into into Hickory JV up where is Target actually the Hills with area that Hickory contribute new plant will there. relocated then, that had Hills county.

those together So expand presence we plant we additions are as large but have going JV Targa, both meant of all that with to well. what put have in in area with that on our our Oklahoma this Omega it's compliment to we the

Kristina Kazarian

Perfect. Thanks on job nice the quarter today. guys. A

Mike Hennigan

welcome Kristina. you. Thank You're

Operator

Thank you.

next question Mizuho. from Brian Our Zarahn from is

Brian Zarahn

Good morning.

Mike Hennigan

Brian. morning, Good

Brian Zarahn

continued pressures the from players attractiveness rising the obviously up on investments competition following in increasingly how returns. against basin you is Permian And for robust production the midstream do Permian a of and the on Just growth. poised view the potential

Mike Hennigan

mentioned to like our out Yes. one It's a good initiatives. as would very of really area. strategic Brian. presence highly question, you It's our But, We strategically that competitive enhance in Permian. is the in

as disciplined I going presence different own side or with our as both opportunities GMP the approach. the whether look the So business or pipeline us we'll of lot But well on you're be hope the it's We'll on ultimately side there of some at our JV our grow to partners. business. see capacity key in in on

Brian Zarahn

third little new for or it fuel a going $XXX up and any MPLX, business as you expected then, the behind to give to EBITDA of color distribution, on follow MPC since all more is million and a parties? the volumes can the volume structure a fee And

Mike Hennigan

Yes.

related think volume fuel stable. pretty is So distribution, it's a we Overall, it metric.

So end the volume easily, we expect volume to tough. the higher pretty hit would pretty minimum MPC the of be

yes. think pretty whether the bit we be and seasonality? of maintenance There's a distribution, with course normal important not be will comes it's seasonality that in picked the capital. hit. contract, most think think so some to a market the everybody service little I going that there's to stable was thing asked of it's sweet overall, But that easy is in fuels no in it just up, year. the about very has I spot So earlier I it

So million billion, that it. about we've capital it a no just fuel of maintenance drop of this which $XXX has occurred distribution often talked $X is to

it's it much DCF obviously closer to So to EBITDA. than is

about that very source think excited pretty of interest. flow. with cash Obviously, MPCs We it's stable. aligned it's we're So

excited that pretty about we're million. So $XXX

Brian Zarahn

Mike. Thanks

Mike Hennigan

You're welcome Brian.

Operator

Thank you.

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

Eric Genco

something of morning. good to the update talked that system there to that want there just sort us third follow-up. out everything's opportunities in revenue for expand to opportunities? party of about or now Hey, you We trying that have I can legacy the past the into on you're portfolio kind that is you seeing anything maybe

Mike Hennigan

Nothing specific yet at this point Eric.

looking going we know you were to As we at just that. did the but today, drop be

for participation. we're And terminals. for about can concentrated real serve MPC look as L&S picking to how looking pretty opportunities some on the well look pipe, XX,XXX effort as of party there team we're things poised do excited with hope a specifics things; miles whole at we to XX to we two is good some give any you focused side. But third Our better for obviously too early but up some logistics

So we're find to excited able some that we've got be opportunities. to

Eric Genco

of those DEP any might or the actions Okay. in come some follow through given up, there guess of option the do if I plants that. that of plants latest occur. appreciate are in push what XXXX How hypothetically Midway the that If two to some Northeast for the of of another sensitive out separately kind six bit sort would sort of to month Pennsylvania was you event. by where scheduled you year. of delay with see be NGL And takeaway the the on Is were something then, a that to

Mike Hennigan

base confident to very obviously Ohio. we we're rail and clear Now, can with a we're the large it in doing continue facility

online We see short-term. in that have it plant impact be line we and system. to mean your were be love keen interest in to coming that another we I so to if don't MEX delayed coming But or months the pipeline successful. any successful six it point would our on see absent

So a we're where our we be trying plant to path processing have in to situation do stay not contingency. growth. want we're ahead of of own and able that to Obviously, continue this not

it online feeling MEX it pretty as we're will come as also but about we're can. that hopeful So soon good

Eric Genco

your for Thanks time. Awesome.

Mike Hennigan

welcome. You're

Operator

Thank you.

question Our Holder is from Sachs. next Goldman Jerren from

Jerren Holder

morning. good Hi,

you wanted were Just are gas expect programs acreage given see acreage to customers producer here? to dry would to gas NGL prices, strengthening you to just or commodity wet prices if higher from more seeing we check versus happen drilling that

Mike Hennigan

NGL the are very lot know we're a development. prices both sides. switching. Jerren, wet just seeing lot don't I on supportive for growth We're of Obviously a seeing of that gas

Utica Jefferson So we're has side pleased in dry that up picked the throughout County year. particularly the gas

If X quarter the of now and the on at first and gathering plant big on. full of processing our side, side that most the coming gotten fourth was Sherwood recent versus business, amount west quarter Sherwood that's we've results you on occurring a And pretty which X, there. increase the then, look in through we're

now. So wet sides of a the just say for opportunity good and that I is dry growth the right there I think both on

Jerren Holder

like you utilization seen follow expect assets of in project already uplift that just of or on? is some your now new And Topia online, earnings we a an up, should have increase that an from there

Mike Hennigan

No.

XXX,XX supply system a our through that's Cadiz and have an Northeast but day. future. incremental up that will One things two us barrels is, be in that impact do Canada opportunity we in have Seneca in We a of ethane de-ethanizers existing our into relatively on XXXX, going plant small of I volume little for bit system to the for a the about short-term think the

relatively a XXs increase a it's we small of de-ethenization you'll day in capacity. our XX,XXX but So on see two bring barrel number, when DS

Jerren Holder

Okay. Thank you.

Mike Hennigan

You're welcome.

Operator

Thank you.

Our from Fargo. Michael question is next from Blum Wells

Michael Blum

Hey thanks.

on just adding up volume as following this incremental Just the ethane question that where going? capacity is curious de-ethenization you're

Gary Floerke

incremental going --this Greg I is mean volume locations. the to several Floerke to -- is going

Topia to mentioned East the pipeline -- ties we Mariner to access access line, West one have which have have to And the East you the was access Gulf; East We ATEX Mariner our now the as plant. into to we At Mariner Ontario. Ohio to on Coast. Cadiz, to

but X well as moving as production as moving Mariner when start capacity we as the to up. to there'll be more ethane lines on on East capacity East line other more Topia fill it The also Topia, are the has those still some Coast. to we -- onto incremental comes the take So incremental are to the well

term was Shell So the longer within of plant, other potential next years plant and growth drivers within region. then course the couple the of and primary cracker

Michael Blum

forward XXXX. Thanks. I of And you. going on beyond about to not is either those distribution clarify, forward? my comment guess other providing a year was I think to so two? wondering little talk guidance going you're least then, you be growth could to Thank related Okay. like question And if just started then, bit that, I you now at to

Mike Hennigan

models kind in Yes. Michael, obviously, of of get think you I given know me But their a quite bit do that I'm from not guidance. we fan guidance line. can the a of everybody a past. EBITDA giving

are XX% We growth. showing distribution

that. on to of growth that the and X can estimates our on. we're So guided when for our coverage. of of than on estimate approximately billion organic given And We've targeting maintenance on we the side XXX those best come X.X plants greater the capital We've we've timing side. that given guided we've also

as So together it. have I as think help do package model can we best you can that a your

is have obviously I investors. offering strong large think providing we're cap investors finished compelling as and billion offering with to We considerable time I for good months be six guidance stability, also X.X company. other distribution coverage. there in X.XX and last over mean good approximately the market transaction As two sheet. We at going and is we're of we're shown room a compared the have fan that or we large cap of long-term Pam so balance especially as EBITDA $XX we're a today's year interest one We're rate far think One mentioned. year growth through at to finished doing an we're do two venues. MLPs. I things we evaluating feel And the stability attractive to at year more debt market. the showing a that

are for strong to supports debt profile we going to coverage. low fours credit EBITDA target Our and the on

show given timing comes in have we'll thinking attractive So pretty you a capital what a the it growth. year. can we've try the I think to we're as and good our offering and both And and you on we best stability as guidance of update the view we during amount of online

Michael Blum

right. Thank All you.

Mike Hennigan

You are welcome.

Operator

Thank you. Coleman Bank from And of our next question Dennis is America. from

Dennis Coleman

side funding equity debt think wonder talking little issuance we've but or financing if could corporate growth say growth. and Good clear very on of I mine A something inorganic equity be maybe about about balance that asked there? lot you're a bigger thanks. for the do it's How of no M&A been organic you the and some about have between driven. And Great morning. Yes. already, been

Mike Hennigan

That's case if project issue to along us a program, was a attractive for that we we Obviously, in we could question. to or or were for we M&A great would able any thought equity. that something have find we don't large But organic issue create value Yes. equity. plan said those new lines and

our why M&A include self we're funding and participate But we doesn't assets activity are plan organic. base in that told available. to everybody want in that's for So a we model the any

continue disciplined few to and and a then something that's we look. a accordingly. Obviously We'll that ourselves if ideas investor. for have work mantra we'll We it finance can our us we'll find be

Dennis Coleman

have some of marine oriented adding scale kind been questions more talked of there Okay. And a but about about? what think asked, just lot of the vessels you larger growth assets one-off we are that talking then, I

Mike Hennigan

a That's great for opportunity Yes. us.

MPC opportunities XX% roughly our and provides predominately at looking for using team outside So increase point contract we're there. we're roughly equipment to Services contract to Marine in-house equipment, this XX% John and Swearingen's

it's up. are move fleet. our with in-house onto to that can that and his first a our for bring and goals made to look So of at the move recently we are We that to continue assets team one price percentage targeted done take we've that good going John and announcement the

Dennis Coleman

you. Thank

Mike Hennigan

welcome. You're

Operator

Thank you. And we do have time for one final question.

Our from Jefferies. last question today is from Goldman Corey

Corey Goldman

guys. Hey

sourcing one rate of Can Just and MPLX rail in changing additional frac at ME to process kind post truck MEX. in we MEX? local will to or one quick X MPLX demand on expect from be service trains

Mike Hennigan

is, supportive project that the of region. as additional our we're goal takeaway there think I in

their that same net backs opportunities time, we we're can. in to So assets provides anything At to our to supportive we're of. any participate the for look going that enhance producers of logistics the

continue a a that matter which any takeaway natural One you to other if such of Marcellus to in will stream It the part strong continue area. logistics consultant as we'll equation. it's the doesn't the very up MEX earnings forward is whether used. into our look at at enhance to me the basis on that opportunities things of doing gas all Utica But, to be projections or you've assets look pipe the go be future,

area going try we're service industry. and active So a very the provider be to stay continue to and good in that to

Corey Goldman

do Maybe and because to into processing be expect didn't I additional now you or trains rail fill already will processing, right sourcing MEX come you MEX when add you're moving Sorry. and and frac when MPLX and frac then need MEX? the announced service. -- have you ask I making volumes truck Do does for it through just projects that perfectly those don't that for it you

Mike Hennigan

to continue grow to and expect frac processing. our we Now, our

question Sorry, continues there's there's material your producer's process frac it that growth if yes, that plan to if gas and goals. to there. outlets I But, and additional the to additional support we misinterpreted continue and

Corey Goldman

Got you.

you see provide in that know sensitivities prices into gas coming didn't XXXX? projects these it. NGL No, guys really NGL expected presentation. in in I not certainly one. the don't and And if post just the being the more. netback it's quick and -- enhancement But, disclosed answered some one run I this it any Okay. the given really, of service. Can

Pam Beall

That Yes. changed. hasn't haven't. We really

historically So about what NGL is million in the move a $XX year. a basket, be we've said $X.XX would

Corey Goldman

Okay. we That's you have. much. all very Thank

Pam Beall

Okay. Thank you.

Lisa Wilson

we questions interest the Doug feel you would any MPLX. for in or Wendt, Denise have Should a you you. give your free and Thank additional on today myself topics like to and call. clarification Myers today, of Thank your questions discussed

Operator

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

may disconnect time. this at You

MPLX (MPLX) 1 Feb 182017 Q4 Earnings call transcript