MPLX - Earnings call transcript Q3 2018

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Operator

Welcome to the MPLX Third Quarter Earnings Call. My name is Elan [ph], and I will be your operator for today's call. And 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. to call like Kazarian. to now would turn over the Kristina I you begin. Kristina, may

Kristina Kazarian

and MPLX that Good earnings to ww.mplx.com welcome morning, the tab. Investors conference can found The under call the webcast third call. synchronized this slides accompany be on and XXXX quarter

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

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

Gary Heminger

am our morning Thanks, for and Good flow I of exceptional quarter delivered once the Kristina. report $XXX for third results distributable million. adjusted thank joining that of and cash again EBITDA MPLX call. pleased million you $XXX to

flow sequentially, a distribution which of up distributable strong was X.XXx. provided Our coverage cash XX%

with quarter We also ratio of X.Xx. solid ended the a leverage

the cash and by continues and in driven as Processing growth logistics in Our segment. earnings and results Gathering strong well volumes flow record in to be storage as segment

quarter. We also the investments announced during strategic acquisitions several and

Coast construct to be plan we oil Permian-to-Gulf in jointly crude operational is pipeline, First, to long-haul which mid-XXXX. expected

-- trends infrastructure to planned to our global These sources several large ability Airy, respond demonstrate Coast to Terminal growing supply several Mt. to in that strategically team's to Louisiana, close Gulf located Second, domestic to demands. investments proximity build market and serve demand. regional a and connects Export we acquired other refineries in

leverage. value. that equity call We to higher self-funding, projects As we lower focus maintain positions turn approach our coverage emphasis with believe review to an on opportunities, our drive the our over we With operational business growth to let of sustainable and partnership Mike our needs well highlights. shareholder me on intend to our assess this organic long-term the

Mike Hennigan

X are transporting third X% L&S EBITDA Ozark Total million, million Thanks, for recently year-over-year, dropdowns. by day over adjusted an barrels after driven our a X.XX per of the The segment. XXX,XXX reported quarter, which segment throughput on Slide provides River-to-Patoka the Logistics higher and increase third overview impact and of XXXX. The expanded increased quarter increased Storage averaged level $XXX and pipeline crude barrels of Gary. was XX% now of per volumes adjusting capable throughput systems, which oil Wood approximately pipeline primarily of day.

service placed support are These During MPC and opportunity into to XXX,XXX quarter. to investments City, highlights planned barrel logistics the quarter, expected two we Permian two Texas participants. tanks Texas. long-haul announced the in during other and that we market tanks crude X also pipeline export Slide

Coast is Houston and or crude their and to to Gulf which First, the calling we Wink, Pipeline respective pipeline The Energy operational Permian capability Transfer oil notable construct ultimate Gulf the jointly the Crane and be have is to terminal XXX-mile for Delek, strategic Pipeline PGC through Midland. expected terminal Magellan's East distribution including will running in Nederland Permian Midstream margins mid-XXXX. to systems. Pipeline Texas a to transport we with to Transfer's have both Magellan delivery plan to Energy expected from Pipeline. PGC Coast Texas Basin crude are the

the We diameter of expect the to level potential has on during open that be pipeline XX-inch depending the expanded season. interest

the for Pipeline, cubic Permian increased pipeline. Basin Whistler provide gas a production growing developing to is to participate feet per in the outlook along to direct will plan Energy from Pipeline the in connections expected a natural and Coast. in Whistler Texas We completed Gulf Whistler to day an the is Basins expected billion X natural markets also Targa begin the Resources. Delaware pipeline, venture fourth WPX upstream multiple to and XXXX. including Midland both have Agua the quarter recently operations with Midstream, joint of gas Blanca pipeline connection WhiteWater our

barrel including Slide River to is dock XXX,XXX quarter. fully the export to secured second currently of storage. Gulf to the refinery. X proximity per has the third XX expand in been per X, Turning Permits day Airy has in XXX,XXX already barrels ability MPC's on close million also of announced terminal and a facility we to million acquisition have day and Facility barrel several dock a Mississippi located the construct Mt. to terminal strategically Coast leased of refineries, party Garyville The the storage. barrels

can the is makes would additional of XXX,XXX million barrels to to LOOP The large assets south of would lightering. than for have Gulf Offshore X, enable to oil X to project projects. early North refiners from crude pipeline American day By VLCC only would ability proposed the a Swordfish Midstream, the competitive season crude. distributor Airy Moving open exports meet The option needs. for the a regional Port binding reverse commencement October exporters market a to which up XX, needed St. Slide volumes transport on to and existing for oil. Leveraging provide using storage alternatively existing Coast announced changing barrels of refineries point Louisiana that Oil with sell about Pipeline. key via supply we a connection flow Crimson or of without Clovelly also This project per capacity all the more to pipeline the is crude proposed crude XXXX, this James infrastructure is LOOP. crude hub, for Swordfish port

reverse an crude a sour In and been have in the to that to the addition, frequently crude. solution the could include sweet WTI to Capline reverse provide The we market heavy pipeline. project continue meeting progress effort owners with Capline

overview some last a highlights and record over EBITDA of same fractionated operations processed Gathering provides quarter. of volumes. the for The Slide our gathered, by was and Within increased our year. EBITDA Moving increase the segment quarter third we to period XX% reported and Processing X driven G&P, $XXX an segment, adjusted million,

We October, segment. processing to the our on growth have by plan approximately commissioned six GMP billion capacity we our feet of robust end organic processing Through increasing the capital execute cubic for continue new X.X per day. plants,

feet of by day the our year over the dry billion end Complex Marcellus at capacity at X.X overview In quarter barrels day, operations cubic last near driven volumes. X.X that approximately expect per end we was addition, year. pleased year. additional XXX% million the quarter, the the of X billion we was With representing year. processing XXX,XXX provides volumes Gathered volumes to placed The Processed increase day fractionation in and XXX wet per capacity October. average add averaged of quarter, by an last Houston Sherwood utilization of by a cubic X record Majorsville plant of service volumes feet of commence increase earlier the the ramping in per gas were gas the up the the primarily for third Utica for same partnership. same operations Sherwood X to we XX% Marcellus to XX% and Slide an and Utica at feet a shale during primarily in our the day this the quarter. XX quarter cubic over per and increase Sherwood a increased The driven setting of plants X,

as up the service play track with all of growing new Smithburg as on Southwest and disclosed production XX which to remain Sherwood the by of X.X development to feet gas In the of XX bring will as quarter, which we and West in support this Antero continue cubic Complex, Sherwood also Pennsylvania, complex per end XX in last the of plant billion wet the year, plants We of Virginia. XX area day the we well Resources ethane year-over-year. customers in the of heavier one XX% the Marcellus volumes will Utica in the needs expect basin. produced quarter. our at the and serve XXX,XXX This a our another record the in into provides a fourth Range and plant help regions. place Resources, We Creek plant quarter, of to our up barrels in of NGLs of day service Slide summary the top fractionated producer Complex Marcellus Harmon a first capability

day barrels to new fractionation at in per Sherwood add mid-November. of XX,XXX expect ethane We capacity

Complex Harmon These in day the We the plan strengthen barrel in Hopedale quarter. also on fractionator MPLX's completing barrels day Creek a in unit XX,XXX fourth and fourth will our at position Northeast. propane further additions capacity plus XX,XXX a per

billion million the to venture volumes Processed a the Southeast billion Delaware Targa In Oklahoma Centrahoma Hills plants XX% will production Moving averaged on quarter. add from XXXX. natural support cubic for an will XX our Basin. increase same plants to Slide of and Processing as STACK play our Oklahoma. Basin the Omega Southwest called with our in in part the Argo the averaged processing increase expect quarter, the feet quarter, of Tupelo Much cubic volumes recently Hickory growing approximately These third that in additional Gathered that and over XX% Arkoma increase plant quarter, representing last of over volumes XXX X.X capacity we X.X feet quarter the Woodford per per driven shale plant the fourth day joint was year. of gas add day feet cubic Resources, two this completed for third operations by the the

in maintain the will expanded our venture. XX% We ownership joint

goal call period repeated to for I our duration $X and team capital cover grade an and importantly growth including the the coverage. toward call our Most focus on profile approximately that long-haul facilities. turn financial a to model toward been new Before made growth, have want results, opportunity in execute though return We've our self-funding best to of continue I we strong credit focused base. past and record export of selective project Pam great base distribution strides take where so our year, earnings seeing announcements has that our highlights. high-grading Pam, pipelines to longer we the without projects, are organic over throughout In our our business any accomplishing will being growing the to time, strategically. a can short we a equity, to are minute and finance year over ratable set and I investment the and maintaining communicating issuing billion effect is now to while on exciting this desire turn strong summarize we this

Pamela Beall

Thank Mike. you, Yeah.

reported in to million on quarter and EBITDA while same the the we EBITDA last adjusted both XXX financial XXX of Turning and Storage XX, of Total of distributable third and Slide Logistics was EBITDA months the $X.X substantially XXX million year. segment cash first of segment million XXX adjusted versus our Processing XXXX, flow quarter, EBITDA reported adjusted of for we adjusted increased .Through highlights million the nearly Gathering billion. contributed which nine

EBITDA that performance strong as EBITDA puts million without of $XXX billion, considering quarter the Our investments, highlighted, XXXX, mind to to but Mike current consensus estimates $X.X us consensus $X.XXX over on also you quarter. expect during in higher the for highlight processing cubic just in million XXX feet XXX quarter feet Investor cubic for at higher December, for than ongoing you arrive growth that's -- XXXX the I that XXXX. plan includes the capacity give is street and to a for capacity adjusted which of street guidance barrels over The annualized third third which EBITDA the run the would sorry, which day from incremental our keep a estimate. total year, if capital adjusted quarter. rate addition fractionation which proxy, Day million again than million of And we current We a an XXX,XXX reach pace early nearly $XXX of of is use fourth want day per billion approximately

in quarter of bridge assets EBITDA, So prior separately in the The million. adjusted now of the $XXX increase change acquired contributions I'll each an EBITDA turn the the in the EBITDA EBITDA to quarter broken third from quarter with in of adjusted XXXX 'XX. of adjusted adjusted increased XXXX third Since XXXX and quarter the dropdowns the by out Slide the shows million, third waterfall. quarter, and we services MPC on third $XXX year it XX, first over quarter of generated to

And in lastly, and as Marine volumes. Processing increase by expansion as Excluding primarily cavern. the segment butane impact the Storage record earnings of Gathering the investments, dropdowns, was from the driven by the was the expanded Robinson the Logistics EBITDA other pipeline Ozark the and recently as and primarily increase from completed driven segment such well in

of commodity I the provides the billion $X.X highlight sheet higher The revolver from acquisition for approximately liquidity and the investments quarter. during X.Xx growth terminal a -- highlights we flow that billion debt-to-EBITDA of funded million cash benefited We at intercompany XX and available equity, billion same the on key of end information. want we quarter. X the is any with of and MPC. which distributable using maintain to EBITDA and significant quarter $XXX issuing Slide quarter, also in Mt. without Xx. below and bank approximately the coverage capital facility the summary balance time financial during organic selected prices without the completed Airy had we the supported We at on X.XX available our

Processing returning a and track of performance per unit. maintaining general quarter record levels Kristina. in the let holders grow strategic opportunities to an our strong a segment segment growth located of organic X.Xx, is execute profile. comfortably base sheet back unit ratio partner a distribution appropriate strong leverage Logistics committed And with long-term common week, Board credit call very to a of sheet balance check we of very both ended the to business asset balance strong me and value across our robust our investment and for over $X.XXXX for a our turn to to in MPLX confident strong last our the of and remain ability investors. and the the with capital had we broad within Storage the A Gathering are declared which now the the and grade We proposition strategy demonstrates in Directors markets,

Kristina Kazarian

Thanks, Pam.

the to time questions. to plus questions, As one as ask permits. Elan, open now reprompt we we're open question, ready. With that, for you questions for limit follow-up, that you call may we call additional a yourself we'll the

Operator

session. we JPMorgan. today And question will the from Tonet is first now question-and-answer Instructions] Our from Jeremy [Operator begin

Jeremy Tonet

Hi, good morning.

-- Just wanted growth to in with G&P. XQ Northeast the the is off start of particularly robust quite

is the a you're should if -- bit think in there you as wondering one-time as Just about? as there dive of are far and this over to were quarter any alluding more drivers quarter little we could items kind kind what of there, should ratable we

Pamela Beall

sequential well, say to the was it in would the nothing really, one-time and reaping of attributed but producer the through higher really year Yes, to a Processing item significant year the last on, as earnings we brought Gathering investments customers that this throughout Jeremy. benefits I volumes. year, commodity capacity fruits that that we've area. throughout largely get was segment, in made was really the significant prices the it's the from in we're increase in Again continue we benefit the and support to the of

in increase quarter. driving So what was that's the really the

Jeremy Tonet

Swordfish, kind and this downstream platform. you Whistler, the it out to think see opportunities going Pin recently, That's like that? between how announced really I helpful, do of you of acquisition, initiatives about your you and upstream Oak building you your about thanks. seems actions integration more for And some as forward, think Do the do PGC

Mike Hennigan

Jeremy, it's Mike.

You're right on.

the trying to the our along Permian, purposely little flow and as are all cash as put We well more Coast. in concentration Gulf base diversify a

Gulf the PGC solid strong strong and refining on to growing Northeast the with trying Basin with out at we along and down way Pipeline, value really concentrating up -- all So that we're and the exports. starting in the foundation add chain support Delaware our the is a Coast, have to in the look it we're we way network in we're

we're you you further tank launching grow just terminal. we're that continue farm Swordfish. the starting as we as east to City the Season out, Open We have mentioned Mt. a Airy purchased Texas And also on

diversify to standpoint flow long-haul and trying facilities. as are in a we from concentrate both as cash So pipes ourselves export well

Gary Heminger

to years This the Gulf into way and is be St. put used efficient permitting Oil entire capital all for Louisiana it manifold -- and has down already export in Jeremy, and the operational, goes that move And be at is Swordfish look oil up Gary. done big facility, system James to down it. thing this the export When the running. the XX LOOP, Eastern or it's able Eastern place, ago. you most to you with to This Eastern Gulf, was the within through Gulf Port is all crude is the the way refining can take then been either Offshore all

the other The that Eastern hub the thing Gulf. production LOOP in of is of the most is offshore

into in, eventually So down Capline, barrels the from flexibility to to refineries way production the take the think we Cushing all that up bring bring of either way the you the that all and shortly it have tremendous coming, will to Canadian Patoka, which bring or be barrels reversal in.

provides Export Refining Gulf just well Swordfish a So the Eastern Complex. tremendous option Complex for as as

Operator

Thank you.

next Our from from UBS. Shneur is question Gershuni

Shneur Gershuni

good morning Hi, guys.

those any a you today quick do to you potential months I talk coverage if be if need you distributions question on [ph] had out. there can't be my at realized I off, some metrics one, does of sort sort fall you next understand on going the path metrics, when acceptable? could can side interesting take, you need if to guess the Just to from a financial on combine, want is that immediately -- day which but you're you the with perspective? did the potentially months, question language of cuts it the to there for to day that? of is was the have two ANDX start it is about how leverage a within to wondering them, path dip -- the XX and I comment outline MPLX can the Although does you or to formally that when get context to to goal on XX in respect it to to metrics on Just is both trying -- be metrics it is comment there entities one to and if on to --

Mike Hennigan

and analysis ANDX little our may look just comment MPLX have that buy on right, time. analysis. choose it's buying vice did determined and that and can't ANDX versa we whether we we on we MPLX, We've when be carefully this very will over at Shneur, today, words or but this, embarked that you're of

set be that to at And -- line be not any that we a makes one time, have it this it in and MPC on but and matters bright We going sense but path. efficiency. go calendar that of this of a test time, period a morning to business of to any discuss done and down in of just MLPs has call, scale spoke space, type leads -- all. to in done period now the have the we biggest -- as being certain the don't I of cutting MPLX not in I'm that certain scale has so distributions

the We about ANDX anything last in release didn't in to decrease. say have announcement It distribution put were keep the out week distribution flat. the that we going that

in we to depending normal, the that the we on doing we'll And us. this opportunities is. just I But our both the and are where think operate acquirer so on takes meantime it -- do see but who table as and are analysis analysis continue

Shneur Gershuni

with Swordfish export with I'm Is forth? it numerous and about I fruition? up over X there, so to to been finding part of the ability know announcement capital, [ph], reversal? question to are the when but the years, so what's this finally forth, follow it And we and probably question, the for prior has asked your past comes outlook as especially that for answer the a times

Mike Hennigan

Yes Shneur, it's Mike.

remarks what longer. standpoint. the that at with overall from in we as not the involved desire market it's an said it I obviously sour the sweet owners strategy any three both crudes is meeting been from the that are well the we So move the North There deployed South of interest is, in looking to light the to get speak to activity market frequently we've Swordfish as a have as got heavy owners the market infrastructure for prepared says, to because Eastern and be Gulf and to part in Pipeline, that is

ongoing the for market I out develops, an but is can and that it has North from as color -- market we'll the tell evolved. it So discussion, is there more to you South is give not interest to as South North

Operator

Thank you.

Our Dounis from next Spiro question from Suisse. Credit is

Spiro Dounis

Hey, you just then everyone. you question Range, call I'm hearing disparity, and from consensus start that the like of growth the seeing two-part tell just sort get conversely, a good Utica. Marcellus, maybe just Northeast, with And sustainability on and around Processing tried some aren't estimates. you're the [ph] us customers 'XX? in off AR of you as the upstream saw color what just that around through And morning

I the quarter? think seeing wasn't be that to this one laggard of bias your competitors more today said seemed if there, bottoming to a we be less segment upside or should and

Mike Hennigan

Yes, comment so also you Greg let comment. and I'll give let a

So overall, up strongly really I you, potential tell the feel growth in Northeast. the we about would

two growth know you them opportunity kind the base, look but actual of and let Antero's, over the at asset segment seeing our we're year-on-year. XX%. Marcellus to comment. but Greg producers to well to If pretty try We're we other dry. strong kind optimize people the and them, is that in I holistically bifurcate the Ranges set I in sometimes look producers data in Utica very bullish both as as seeing about at that think look G&P strong as continues add of wet up the around be there you're disclosures I'll year-over-year,

Gregory Floerke

and to add fill and had what build anchors those to we've growth continue To in terms we growth. Mike our Floerke. of said Marcellus customers, Greg in steady This the is on plants

crossover. do perspective. NGL the over think have pricing of we've from systems has We sort integrated that together that don't are and pricing and of and our the bullishness NGL look we and record customers likewise proven back levels -- terms And track is Utica. we that's only Utica, years Utica and some more I in with the opportunity, Marcellus been high the over rigs in driving the how excellent at driving

we seeing well. processing as Utica bullish about the and we that future are So are on

Mike Hennigan

XXXX want put six Northeast, a comment we through Yes, add processing place the have like. We've we and what Investor we year the I area. doing for more December But to look to in just you at already plants, early were -- considerable the give as we in for other couple can tell that Day one in this process I we'll of that. that up still color in disclosed anticipating ahead up growth of time in

Spiro Dounis

strong Got interest James. obviously then on of which Capline, so it. back approaching to Seahorse, just the FID I peers appreciate pretty gets down you that. one in potentially going announced next your St. and to And customer quarter

reason view so fact you that got point move you that? Capline And Brownfield the partners data will for Wood you and of faster on Do totally reversal. on equation Seahorse as have you very are on the that and you? And to FID curious guys your if any do the competitive, and changes or Capline to obviously but math ability

Mike Hennigan

we believe infrastructure don't tell could you, the be other to competitive projects competitive market Yes, right yet, than projects will nature. the is there's talk these today for many to Capline on existing of in it comment competitive the there ground, ground, the is assets this assets are Swordfish enhance mentioned also most opportunity. about -- existing that in We about going that so, competing I that assets connectivity I the projects that as Gary inside we want existing can't earlier. think the some is

that a we offering, and pretty strong we a in presented well confident assets, will feel Obviously, just projects market well pretty strongly the be marketplace. ours with existing competitive offering. be the feel offering strong we alternative So that is received that have a as the to should

Operator

you. Thank

from next Sachs. Jerren Our question Holder Goldman from is

Jerren Holder

and they morning. NGL fractionation MPLX? good I you love long last on this get to mean and do Thanks, How constraints. for views think pipeline what the your does Mike, would ongoing

Mike Hennigan

you're Sure, if about Is you're in referring what the Northeast, talking up to? Jerren. that

Jerren Holder

that impacts, how going and Midwest on Coast, Northeast well? in as Gulf what's

Mike Hennigan

the up start-up, anticipating market starting shortly. believe the MEX coming is It's is in Northeast, we which

Transfer communication term some start-up constant system getting for with in are point near there. there. Energy the The in process Northeast in at need the this We bottled ready up is and there and relief of we're pretty we

market is builds is also capacity areas, situation, know, new deployed. available in not excess in a are similar As you the of so being the most rest

We are be part there. lot areas. marketing project to announced comment we and and can't active but the looking we're our of the that a everything, project. projects a the to on say in a attentive will natural crude I are I we situation different solutions In of Permian, gas have

lines as to need we a are it's We well. NGL gas that we crude us markets along on you we continue say project as have but all attentive and are or activity of then on And to a that continuing the the not announced NGLs capability, that an focus date, export export work as put these potential for is or future heard earlier whether to well. as

Jerren Holder

quarter is street how maybe the missing a bit think the that consensus and XXXX, And has us on a third into strong bit low Great. that implies what probably comment follow-up, you low? my that recognizing do

Pamela Beall

Yes, it's Pam.

So not that, quarter sequential strong compared a I and the growth we think and earlier, that question have but we only do ago, a sustainable year asked that's growing. to was strong see

side well the the so on the Processing we growing the Gathering in Storage And that of business. and are is think some the and street as market the as segments many Logistics of strength of fact we missing the maybe the within

but not more escalations in out lowest focused of and form rates, was we that the assets, to also and existing on ways those been return improvement. which we've of have, in that So utilization through volume just place your the assets get looking are assets higher for capital drive

seen Storage and we've the growth Logistics Gathering both Logistics pipeline opportunities the the further of business and future. Processing well good and really propel will and into So Storage in that and highlighted long-haul some Mike

Operator

Thank you.

from Blum Michael Wells Our is Fargo. question from next

Michael Blum

good Thanks, morning everyone.

Pipeline question clarification. First of fully a forward? is that Is Whistler project, we just FID more consider now the a that sanction going is should project,

Mike Hennigan

haven't We announced that Michael. yet

by so that, order where we're Our or won't quarter much online to hard obviously not. in decide to is goal whether at we working we've to FID of be longer, have be fourth XXXX, too that reached meet it

in disclosed pretty we that but we're confident to yet, interest we haven't as project in continuing the try the and but fully So that meet a discussed. go timeline work we've are the it,

Michael Blum

so don't at that the then I And deferred the that great. -- recognize have dropped level upstairs kind what and so so soon, organic to were then dropped actually, dropdowns really me ANDX after the slate, is or available we -- still still to those could at MPLX until least assume merge you about question should what or assets need and I'm a be think B of the is be still are there that companies? B dropdowns will correct down if A Okay, but question MLPs, I assets assets just get would you wrong, robust clearly anytime you there a the

Gary Heminger

company's. I analysts Yes, to we should until deferred be -- the that's going around really say our analysis, done get

We that that's will part -- ongoing. we the analysis have of

But meeting, the by work have to -- when ANDV. we're the -- time say lot that won't ANDX get by would does, let on it direction to, going at is what a questions that time. the not detour you are inventory dropdown the the of get We Day Analyst we complete yet we and MPLX completed know to because we and the will by around really time have we I

projects outstanding it's the and MPC, issue we so have and all at think that cost. his of have guess the have Mike developing Swordfish organic dropdown high-grade We like to absolutely been the sense have best many limited but transportation still a just I is producers team for with I project inventory projects kind because yes, lowest makes the the

out see what time. So, we'll plays over

Operator

Thank you.

Tom from is question Abrams Morgan next from Our Stanley.

Thomas Abrams

actually by every today? vice on last is parent, of sponsor choice choice versa. remainder by a bring asset there had some because one follow-up with Is there it you into structured not ANDX in I that other assets MPLX just and to the as the those question somewhere third the ANDX fits into really Could MPLX? a up the

Gary Heminger

but we'll the the of assets any part own where that go really at that's are look that may be equation. there think you a into up them. When assets really any probably we Well, -- see, parent I small

that So don't know aren't else anything I those about along no, we lines. -- we at anything are today else looking

Thomas Abrams

the is portion say reversal, is Capline Patoka there that to on then a portion bidirectional? the it, and a chance Memphis of Okay,

Mike Hennigan

and around. at looking there guess, at point. we're is Tom that at we I options meeting mentioned the and connectivity, that still we're we're Yes, have this some I everything kicking possibilities looking

on think important than know more much for South I less move was South thing the the and it North. the before, is concentrating we're much, much to to point obviously, movements is to South North to North to at market interest this than

Operator

you. Thank

Merrill next Our question from America is Bank Dennis of from Coleman Lynch.

Dennis Coleman

the the sure Airy terminal morning. the Mt. Thanks of questions. of my purchase good some I and there questions a and on for make taking Yes, to focus opportunity. understand like couple just I'd just

the that suggesting you XX actually the that there, -- works? leased up its don't tanks Is you how you own tanks, you're that, that so but storage So correct? third to is could don't capacity party million, expand

Mike Hennigan

site Dennis the No, barrels all were site the it's the parties, is facility, is the third are own it's but there. own to we commenting is that about we on leased X tank to is on what tankage today just third the -- tank existing today We and parties. we leased million the saying it's fully

for amount makes of the facility we with the Family. pointing on of recently, the this we're storage because million is third the about what close ability closed we to already also going within that XX it's same Marathon plan the MPC party dock barrels be time, excited opportunity but grow. to us And up considerable this it's So barrels. it synergize we're some so opportunity permitted that just is for there's out to with to million Garyville, business second opportunity vicinity we have there we bought also grow to out to At know pointing an X #X, and obviously, us is a that

with this occurring at we developing and growth will at point. lot both we're and others the a we're trying it out have this that to pretty MPC both be upside there's it, point. excited The with business of just about So obviously additional point to

Dennis Coleman

that defined position Okay, or barrels the so permitting? is XX by million land

Mike Hennigan

what the And another now for the million quite X XX a ourselves to further barrels from is dock now, try have million. but phases of with to we X Yes, up acreage to storage. so of disclosing take there. million this and at a opportunities, in the and we right Phase is Obviously, bit we're we million we're XX have area look can that X project of

Operator

our is Phillips And from Guggenheim Partners. Instructions] [Operator next from Matthew question

Matthew Phillips

up project Clearly, -- Swordfish on Hey, just indicates LOOP. LOOP. will around around guys. to Gary's wanted the I the comments pick the

You there growing to the owners think LOOP terms reconfiguration fully a the do CapEx compared with you'll of expect you be need what And sort on to port? LOOP to is be process? Capline major to exports. configured in export the of other materially process What timeline say the

Gary Heminger

Swearingen, the of John about ask talk me to that. let who Yes, is Chairman LOOP

John Swearingen

Yes, line LOOP they've their there they the very load of existing use fantastic is the done to -- to how positioned. well good can They main have out obviously job assets existing trying VLCCs. and oil morning. figure a

Gary just to One, also line, more, that has oil they've movements very add oil talked So really these the main road just is plans. crude about, Mike a and LOOP with into down got there then have that investments of the number but tremendous some capability so to of figure existing exciting. potential

Gary Heminger

can export there already from we capital we operational in today. that -- But already it's is the

don't right, to have much additional do work John. So we

John Swearingen

cargos market correct. and to to made movements out. That's They've on already to get continue that respond moved looking are the some

utilizing the -- a facilities So and they've existing done job capital just fantastic there. again the of are that

Matthew Phillips

vote Got it. for a mean That's huge like you preliminary, if get something mean, area? expect present Newfield This do switching STACK. for or bit, this featured the a is -- pretty that confidence how acquired, area I pretty does for all, but of increased you in I helpful. strong that's growth been necessarily opportunities a hasn't plans that to your change topics

Gregory Floerke

had gather they STACK are continue great with and -- we relationship gas is This for relationship Newfield, We and great anchor us. Omega for to oil great actually have we've them. a them Floerke our process for but with plant, customer in Greg again. We crude only the not rich a also gather

continue see there growth regardless we continue. we to to expect side moves forward would So of M&A what growth on that the see and

Operator

no this you. at questions further showing I time. Thank am

Kristina Kazarian

today your turn us for be MPLX. Should or on topics clarification available back you thank interest with the Elan, discussed we to to that, take the calls. you questions you your you. thank joining Well, will of Great. this for and in like I would additional have call any will morning

Operator

today's conclude does This you. Thank conference.

You may time. this at disconnect

MPLX (MPLX) 1 Nov 182018 Q3 Earnings call transcript