MPLX - Earnings call transcript Q4 2018

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Operator

Welcome to the MPLX Fourth Quarter 2018 Earnings Call. My name is Elan, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is now being recorded. like the now Kristina over would Kazarian. I to call turn to And begin. you Kristina, may

Kristina Kazarian

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

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

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

Gary Heminger

This tankage XXXX our solutions deployment to growth of organic annual investments. by flow, over terminal, nearly of $XXX of but the commercial Thanks, We effective Their highlights of simplified EBITDA provides we billion also we showcases In Kristina. in strategic year, we teams. became was year, our & export was the these through At cash and this magnitude and systems, since City the you & of not pipeline plants In only feet we our billion by capacity and EBITDA operational by marked increased acquired Good size objectives River added ability Patoka, Storage We and of the Texas the new XXX,XXX beginning processing adjusted and annual Ozark at the increase of business added more. for driven increase per Logistics and segment, execute our initial which joining thank transformational enhanced and strategic largest we our projects our executing year a the much we stability reported our day finished morning Wood the capital. a MPLX. expanded number X.X public expanded the segment, prior capacity an and in of the financial outlined our develop structure. million areas our year industry new of and call. XXXX and XX operate multiple Processing success plans $X.X for organic strategic projects, single XXXX cubic expanded and the our $X.X nearly a billion, which our marine per Gathering fleet. barrels increased day. fractionation company.

the we during distributable billion times. growth prudent nearly coverage unitholders. billion enhancing fund than year, able delivered to less We program flow on X of ended to generated of strength a without and was Lastly, cash of leverage financial with any Company in public issuing year our $X.X organic The X.XX this $X.X business. our commitment the times equity of and the returned

third-party presence that our value the increasing on assets throughout chain focus to continue we and revenue. forward, developing generate Looking midstream

me Our projects beyond. upcoming returns attractive call turn success for in deliver With growth program position the to and XXXX of are over expected that, organic to Mike. Company long-term and let the

Mike Hennigan

as pipeline systems, last as throughput quarter Wood The year. fourth increase barrels of product million. million over X.X overview averaged increased a higher and Total Thanks, expanded Storage quarter $XXX was Logistics throughput movements. adjusted an four Ozark day our in driven pipeline reported the provides of same primarily higher level on Gary. Slide our XX% EBITDA by & the segment segment. per well volumes an L&S quarter, recently River-to-Patoka fourth record

expected is tanks in crude storage a other capacity the opportunities Reversal. MPC market Capline we participants, to added During of the logistics also future including Illinois. increased support to quarter, provide Patoka, and This

XXXX, of multiple commissioning ties and projects highlights Capline marine Texas fleet. planned we completed our expansion other addition, our into during tank the of including Slide Swordfish the Robinson In our City five farm, the Pipeline. expansion Reversal, the butane of which announced cavern,

at a A Patoka, St. is Capline operator barrels late The of services, with crude oil day to Capline, has Louisiana, access designed storage flow James, Pipeline. initiated on this a St. reversal a the it Capline, storage to James to expectation the is to to they shippers XXX,XXX to of the to hub, being carriers from Tennessee. and Both binding Swordfish in vessels Diamond James, the and point which providing can attractive other Clovelly up which commonly Cushing to existing the transport for includes make is to barrels As a which owners options per the sponsor for would expected Swordfish St. making from Oil as existing pipeline, through of to commence Swordfish utilize Illinois connectivity on originates largely transports in systems in Louisiana these reverse open pipe loading Collierville, the region. to LOOP. ground, of MPLX Offshore is to Port, operations of have Capline MPC. subsidiary Clovelly to in referred which Pipeline crude the September connection the behalf the connection in season oil January and of line XXXX. the our Once

feet per day three Slide highlights versus ability quarter prior X.X would we existing Coast The over VLCC in which Capline be and in fourth LOOP for needs. Pipeline without operating in Swordfish averaged a increased the the seven XX% cubic commissioned X increase in primarily was the course for barrels billion We loaded XXX,XXX some fractionated our XX% feet normal Basin. year nearly fractionation an versus per X.X have and by billion Quarterly Fractionated has cubic that XXXX. feet the systems XX% volumes. cubic driven only provides billion volume averaged while a processed, day. day, increase a the fourth increase processing increased In processing feeder per Slide lightering. strategic by quarter. over increases billion billion development, highlights operation. at Processed per fractionation over higher day the X.X a Full-year export Reversal, Houston of per in volumes million feet barrels representing of offshore reverse Gathered planned cubic significant over plants $X.X X the quarter, Volume export volumes for complex, X% the been a representing LOOP, year, VLCCs facilities connectivity day was the for to by day growth operations. provides highlights volumes XXXX. value record averaged same the MPLX since capacity. a overview volumes to quarter feet In can last The adding EBITDA X increase XXX,XXX LOOP with & of barrels this XX% day total, the if port’s these create. Marcellus X% averaged X.X over which XXXX. direct of barrels capacity over into eight period, cubic Gulf not the year. Gathered per to XXXX million port billion. downtime also adjusted volumes our resumed XXXX, also and would driven Gathering Processing sell December, processed increased XX% can six gathered, our to X per The a growing meet Importantly, seven-day XXXX, increase largely XXXX. increase unplanned

billion at cubic and Sherwood of XX We also the during XX per plants feet completed day. capacity total quarter, to increasing complex X.X the this

to operations December. pleased Mariner in are We X East see begin late

we On segment. selective in start-up segments fourth balance very weighted head This being due We of the projects. historically focused to the unveiled two production of positions grading a between is start-up Investor the MEX the with towards capacity summary of delayed On XXXX at curtail eight, to we the December our the fractionation was forced Hopedale our and into XXXX, were & our best capital there more XXXX. L&S at opportunity on well program high the year, Capital we of significant our we as as site, complex capital amount us outlook slide the combined the quarter a provide we segment. end return Processing added the our In at towards Day. set heavily shift to Gathering remain that pipeline.

XXXX, export capital significant in We affording the line have and construction of in the and is pipelines abundant expenditure of in XXXX. our basin growth Permian approximately Gulf the Coast. segment to facilities opportunities Majority in the capital both planned capital continued of deployment along the for with segments long-haul our billion development in to strategic $X.X forecasted deliver of business, options L&S

a in participating on discussions project. advance crude to continue We Permian pipeline

Wink-to-Webster options PGC at combining the we structure. in As are JV Pipeline Day, Plains, we pursuing the mentioned our several Lotus a includes Pipeline and UJI Investor with which Exxon,

continue the We engineering details takeaway gas the of a merits from we these Delaware on expect shortly. reach basin resolution is to Whistler additional to a natural path and would evaluate phase. in capacity definitive project, support pipeline and the detailed

which and We storage. leased to we In of issuing addition, the about on systems. XXXX. day support is and equipped We In XXX & the came maintaining model plan butane, to facility from segment, We is and total XXXX. has other develop the facility grade capacity to plan reiterate outlet barrels area. engineering up In the equity, to continue to anticipate and storage. our expect to second per XXX,XXX our any currently continue fractionation another processing to Terminal, quarter our Gulf fully is this increased both handle per profile per remain that feet without organic our we of in project benefit cubic Coast recently distribution barrel an the is to condensate to of export credit while projects. construct Gathering This in growth of and day capacity the a volumes the normal BANGL day NGL pipelines per production we barrels also next XXX,XXX strong fourth liquids capacity incremental processing Louisiana Utica Cornerstone self-funding acquired million line XXXX, export million we commitment help capacity these providing strategy X in investment region. buildout the XX on excited and barrels Airy million pipeline, day in This in we add the dock Mt. approximately The detailed for for the the phase that gas production of and dock growth fractionation as of and natural facility to with coverage. Northeast, another equip in growing will Processing capital finance

over summarize Pam, want call to strategically. the turn I are I to Before we where

we in time, engage we same regions to disciplined our on committed Utica basins. continue In are attractive investment Marcellus core opportunities. the the the is Our in many the real-time these with are deployment. producer profile actively growth customers We Northeast, capital and to provide planning regions, our process dynamic. optimistic remaining At and on and production

XXXX, add in We the addition per day day XXX expect feet which feet on million million capacity the is of cubic quarter. per in to fourth brought line processing cubic XXX in to

capacity have We in beyond. further planned expansions XXXX and

these facilities complete producer basis to needs. to a is new customer goal meet our just-in-time on Our

netbacks East We similar both and Delaware in the enhanced the we to in Mariner service. that optionality fully now takeaway super capacity in business. region. growth on have NGLs. the Atlantic natural to for pipelines Northeast. placed These on gas to production pipeline, and Sunrise system, producers our Northeast our similar the clearly NEXUS, pipelines is the very for have recently developing such the basin, are what enhanced and a provide gas as profile which be X side been Natural NGL benefits investments expect further producers by in operational, solution positive we focused growth expected region the are of the In increase while provides to Rover, The a in

cubic of currently of Coast. pipelines two plants forward Preakness. under Delaware plant are processing feet gives expected XXX,XXX basin additional billion to per production along on the per development, plants, the have to liquids completed. approximately us now day and move and long-haul called in once We’re in demand operating these processing moving markets barrels construction, provide fifth plans Gulf Apollo day the to this gas two This plants, are Torñado and we These and have capacity for the supply liquids X

the our in provide cover I opportunities demand and out remain growth and core centers. to the our now about in building identified We’re also We've to turn excited Louisiana call regions Texas focused Day. locations intently domestic Coast to five on guidance the export Pam the Gulf we financial our increased to are growth that Investor global connect expected capabilities. over opportunities growing confident along at We're highlights. our provided supply will to

Pam Beall

in and a our quarter. Net were third The accrual interest for cash reported guidance impact costs the extinguishment fourth was for for notable at which reduced reflected cash adjustments. start-up EBITDA concluded wanted to $X.X impacts. our not million production the Adjusted income unplanned that the the slides I approximately of million, delayed of Thanks, XXXX approximately due these million wanted we numbers and few just was a fourth EBITDA were $XX of $XXX the with million, flow do mentioned, MPLX. Mike. million the for release in impact, fourth line quarter. The provided for quarter press paid. MEX that reported reduced on in in reduced the was to very contract-related $XX the of events to well was year for as events quarter was $XX a I by million for by quarter highlight. $XX were curtailments by quarter. There costs $XX The because complex downtime the these approximately $XX premium costs million had approximately and Debt highlight due distributable the strong implied Mike Houston the earnings as quarter and call. guidance these for adjust to EBITDA billion

EBITDA Logistics $X.X reported slide segment. billion slide highlights the $XXX of adjusted million nine. $XXX in Storage for which financial Storage was Gathering of Full-year EBITDA million Processing & with $XXX We on adjusted was quarter, XX% our nearly segment, was Logistics the & the & to in and million generated approximately Turning segment. by

of unitholders. $X.X returned distributable For billion our $X.X flow billion organic The and approximately supported generated remainder $X.X the growth program. year, we to our billion cash capital

adjusted adjusted we XXXX, processed by slide these Processing increased gathered, oil XX, fourth shows and fourth EBITDA EBITDA the the the Storage shows the adjusted as MPC bridge and XXXX in quarter Remaining of record in well benefits from for lower increase million million $XXX in full-year The were generated billion completed EBITDA change Logistics first slide quarter throughput, the fractionated segment Turning in offset driven the Since were XXXX quarter, Gathering of for EBITDA the million. by EBITDA increase recently crude and was driven from by XXXX. dropdowns volumes, XXXX. to of the contributions dropdowns investments. margins. increase year. of by to segment $X.X & increased change nearly the in of primarily increase. year for was the The over bridge partially $XXX the primarily product higher product On an The & in quarter adjusted XX, the billion approximately and prior $X.X which XXXX $XX other as by

increase throughputs on & increased from primarily well that and benefited as contributions XX% and investments. record Ozark million business, segment by & base driven Segment on was storage and volumes. our systems, more the by the significant driven pipeline Logistics $XXX record segment River-to-Patoka pipeline year-over-year. increase also Excluding gathered, results in Gathering fractionated volume processed average as $X.XX price compared fee-based change while from primarily Processing outlook. cash other net higher a again The our expanded NGL commodity was to than volumes dropdowns, is XX% our Storage of the annual Wood higher sensitivity. I'd approximately our based is million remind like and distributable on almost subject our by prices to weighted price approximately driven operating $XX XXXX. portion current that's NGL is business, of to flow, equal with in in Every XXXX or revenue of margin everyone XX%

$XXX were MPLX in a which senior provide we interest key In -- of In slide select nine, costs principal sheet you. XX. slide redeemed financial extinguishment to balance million X.X% $XX reflected December, information. of notes highlights in in Thank all which Turning aggregate quarter. costs resulted amount debt summary due December the with some the sorry, XXXX, for million and

on was made with facility with We extended As with payback. premium billion at approximately approximately our paid a an and I issued which intercompany new maturity on revolver bank with $X.X billion sponsor. an $XX date of ended billion our redemption, notes this mentioned, on million cash from lower coupon was the proceeds attractive XXXX liquidity, $X.X including with available available $X

a times. of balance X.XX ratio coverage year strong to we and the record and X.X leverage ended distribution the a maintaining year committed of has MPLX of a for We’re strong with sheet times the returning capital we provides per ratio a declared XXXX XXXX, unit. our in Since distribution January, Slide outlook unitholders. and financial XX $X.X And we've returned XXXX. billion late of unitholders. in our common IPO to for $X.XXXX to our track

outlined growth remain without billion balance organic program need back sheet a long-term And proposition credit opportunities, growing on Based strong turn EBITDA XX% for billion equity. return a to approximately XXXX, profile. any me we flow. In $X.X to our billion maintaining billion per investors. at focused issue of we’ve and will approximately adjusted we’re now, let to on $X.X year. growth public solid to As and distributable with $X.X capital our committed in our the Kristina. We call provided, grade at our Investor of by investment to our to unitholders, we’re value $X.X robust least support guidance And our the guided Day, EBITDA expect remainder and the confident the cash organic

Kristina Kazarian

Thanks, Pam.

additional one we'll plus follow-up now line And we yourself questions, as .You one that the we may for the Elan. questions. call open ask limit permits. that, question for for reprompt time open questions to As with you

Operator

Morgan. Tonet JP Our from is Instructions] Jeremy first today question from [Operator

Jeremy Tonet

I just the Good off Appalachian to want & Processing, Gathering there. morning. with Northeast start

You happening segment? there coming line were in normalizing But, on seemed called else the that items was million how for was $XX out quarter. there many in light facilities I It the bit new wondering, of PR. when onetime during anything that, just given a

wondering how in much forecast they reigning moreover, was I seems producers for And So, are it the production XXXX. contributed. Appalachian like

seeing on in and here? your you ‘XX what your provide and guide ‘XX hitting color in you're could what confidence underpins more So, Appalachia

Mike Hennigan

of it there, So, a try break down. let in question me lot but and

quarter and pretty downtime the the not plant in was And was the year, One with second to when we face MEX unplanned for on there then actually So, was of that if some line. the some But, Houston being was several headwinds we headwinds I our end good you we is there. time, two plant recall, get Houston mentioned. saying you because did down conference actually as needed MEX shape until for which come up. curtailed the were towards we we of calls, and

So, led bit X% a Houston of had in the that. in actually to unplanned about our processing to downtime, a had to that. as bit X% we it quarter volumes us quarter. curtail of reduction in We have of little to Roughly, a was little complex the was the off due which result capacity

that normal onetime be operations this as expect of in to We point. we’re and

point. XX with plants brought Antero on XX, also plants good forward feel your about largest pretty to of and two those some about that's have and we latter two of one onshore on part we’re players So, mentioning our But, the guidance. feeling towards since our Antero, quarter. very came producers the differently, the point, that came To slightly We your good region. in for guided going still

‘XX. part seeing the steam So, first in in you’re really them full of

planned for the in a We XXXX we in as Northeast. I and stack in also the a as plant XXXX, have that also XX planned in in XXXX. the Permian well would Sherwood have plant add XX

we feeling fact we’re our pretty still good guidance, So, loss had volume about some of despite the the quarter. in

Jeremy Tonet

more the for XQ real what Capline in-service oil volumes for of do much to talk in-service timeline that touch for in-service the leave about these guys XXXX and to in you kind a leverage for quick reach you how synergies? dates kind your early and when of turning see And can these see light operating for the movement. date Capline, Patoka. oil heavy downstream to of -- here. and think Point ‘XX you do heavy system And Are that oil a get

Mike Hennigan

Yes.

So, there. a things couple

light to expect we September So, XXXX. service in begin of

and and start will in line, the right are evacuating the couple work. in work of takes we the process XX about of months we months, now So, to still it the of next ready be

of is evacuation. The us So, gets that crude to XXXX. the expectation mostly need market light or September

talk So, because about start. out the a into now heavy Canada. as Patoka little getting bit right is we later talking about there of crude, early that limitations Heavy of we’re crude

some by changes limitations We’re to well be relieved time. expecting there. to need those contractual is pipeline about There occur that that some as as

leverage, our To should So, feed ultimately into the is, down LOOP. point reach to into feed crude light will into your able be system. Capline will operating expectation on which Swordfish

into export ability well of light Marathon's a also is system that as So, the the over as refinery having capability, some getting light we’ll beneficiary there. crude refining the Garyville crude to into have get of

Operator

you. Thank

Our next Shneur UBS. Gershuni from from is question

Shneur Gershuni

how I it your little Are I a about and rigs give bit to I place, given the coming your assets, the drop in numbers. line. little was NBCs about you you a Jeremy in And the so what to out Sherwood about around on little the a new there if bit can confidence, in the guidance talking think, more on November. forth? docks cuts your plants the was wondering wondering, confidence about are that gives that coming sort more can Are can if in of response in little your incremental you reflected gave you us guidance, of able are expand is just capital? the you to you in given on drop expectations. expand a talk delineate Northeast sort bit you because were

Mike Hennigan

bit asking. try will more I exactly I comment little said what I'll you Jeremy you're details Shneur, but give for and just what Yes.

work I the philosophy remarks, prepared So, be dynamic to in with real-time a said basis. my is and and on of real-time there, producers our as

deploy to So, we think we’re region gas process unless capital looking the in there. not to we're going

real-time going consistent, I meetings staying Antero -- Without adjusted communication at. XXXX. area, obligations growth that's anything look that through of part said customers that is as contact. we're in having or and the feel some up or the some protection up But, line still NBC our the then other very getting our we’re a That's in point at of and pretty we have an very numbers lot in as that are on. if the do to the is conversations still of complex, about looking I And And mentioned growth you important them, have we going big we XX% into what strong the them. Range large or in whether still there, bottom details, have good so region. what's such our is So, Southwestern as just or on. player but XX% EQT in with we're contractual a in guidance Ascent they there showing with growth Sherwood Marcellus the at point, has it's this they Utica. their year-on-year, at look guidance we also mean, for I

I continues understand very As development I in people look strong, be concerned cutbacks. about at area, to potential despite some are the the

I gas as liquid then that, side it. seeing better prepared Northeast in getting and takeaways the a of the the result also up addition change operating. netback MEX pipeline in residue remarks that in pointed not in we are the takeaways areas out will We’re of netbacks that that all to are the liquid the these on And

two good the confident the plant XXXX. plants in our feel plant still development about Permian X the Northeast, we’re X and in in stack, So, program. pretty up It's pretty for

Shneur Gershuni

just Okay. to a potential talk And about wanted as of CapEx. kind follow-up question,

there Exxon? of to PGC as PGC, And on be well executing don’t you us Capline? gross commitments sense give as the a of firm well would are PGC get cost too. you Can deal if already You've a what of to as Capline got with the reversal enough a proceed pipe

Mike Hennigan

Yes.

individual So, I Capline I to won't capital open the important season. give one that What what obviously things tell the on the see is of very is, in you you happens will is costs.

put So, us a the on will yes, into your question play in that's pipeline. could that sense April scenario, on do the volumes with is Lotus how good that a out of evaluate itself support Plains, get on is where join PGC, continue position end project. much the going to we to and we go of that project. we But, committed Exxon, which to have forces On

to As they know, also go committed volumes forward. have you

efficiency. combine So, UJI. the If carrot there is we capital a in

So, we the have on separate commercial arrangements pipelines. each of

it would Absent combine. if that, well. as be progress we to UJI So, situation PGC a continue we

Operator

Thank you.

from Dounis Suisse. Our next Spiro from is question Credit

Spiro Dounis

dropping it now believe that you don't I just on you call down to comments want I Oak. ANDX. to some follow-up on from MPC plan the with Gray respect to mentioned

guess, that think And to MPLX? does I about funding me that the for then, next how so, And we question is, going apply logical forward? should

Gary Heminger

get we funded investors by there is questions met with and endeavor. and several this by to had see since being on prior how we that's the as We fact wanted it out MPC it, just

ANDX, let timing our the path conflicts work, we’ll We down the Sachs were the road the and their we be for Jefferies and we to determination, make have when if we've determined a let Gray their future. will do for that -- as them mentioned Oak. the will then, and we're might the down MPC drop focus timing going Right on to call, in in now, MPLX, forward Goldman committees for we work, do advisors,

Spiro Dounis

mentioned, out as call potential Second factor you I know just that MEX, one and in is you on XQ.

with MEX any are surface sub similar now impact issues? Just the seeing if curious, you temporarily down on

Mike Hennigan

No, not this point. at

mainly service in ethane outlets ethane that in that moving the the other is area. through MEX we we’re processed and the So, are

Operator

Thank you.

Blum from Fargo. from is Michael Wells next Our question

Michael Blum

first comments is just sound to PGC PGC I is made second back clarify, and question, were I just commented as a to on meant is X FIDed wanted to you I on the you wanted wanted is, the Exxon-Plains, And that. some on own? is wasn’t get to go That's made the sure moving to whole a earlier, and combining versus its PGC -- the the moving confirm kind or then, two? Mike, you maybe forward or I to it type. my at pipeline those impression, on first to of looking company the that’s combining looking as on Webster like and just if clarification your leaving the at guess,

Mike Hennigan

Yes.

not though reached first the question, FID we was commitments What on Michael, was one I for saying PGC we the has on table the received that's of so that So, that’s us. options evaluating. still enough because are

second the one main Exxon, the to is pipeline, conversation and capital industrial comment, in Lotus whole the with carrot, as far efficiency. the PGC and Plains into logic it's there group As is combine

saw with as work conversations they're through that So, of Exxon and that you we going are . and them, forward the we to details announced in continue

participants. the As you can structure would lot And of that there is such imagine, would a UJI. be be it

doing we better the best the would parallel construction, for to right passes carrot So, a types commercially, cetera, utilizing et But at our we’re moment, of project. is one pipe, still getting be one et self. the see think return, But is which do the option real there two to set cetera.

Michael Blum

UJI capacity equals Okay. structure, if just the it combine one be did rationalize in then -- total would two? the you plus one And so if or with yet

Mike Hennigan

the yet. details, details, level that's other Those needs participants, of But, detail talking the with we of the details, of towards some that speak. capacity site of for that that capacity types into we’re as the as about, construction need the discussing we the we the are discussion what publicly not are governance and operating commercially our of those as well we're more things some are latter. side It's Again, that all details, commercially.

Operator

Thank you.

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

TJ Schultz

I guess, proposed that on just volumes more the consider for still frac a project? the maybe export on into the question and project. fractionators BANGL bring additional that partners two Does

Mike Hennigan

mentioned, pieces fractionation, on as in export in portion. the we remarks, Yes. terminal. TJ, that down detailed There in actually prepared development is And as well mentioned pipeline you The three that. engineering. still doing a area, are BANGL Sweeney the the we’re is to project. There as I as

through we’re portions it, as So, different well partnering. section engineering as much discussions phases. commitments all we on how well having as about relationships volume partnering as has go there is the detailed the And doing different each as of

in play. that's all So, still

continue lot We imagine, about be is you that those. out, development. we’re can get to working But, through excited the a there worked you as to and details of need

TJ Schultz

Okay.

considering a Just the export. well? as you follow-up on or you are ethane consider Would exports

Mike Hennigan

of The be plan, something and That time. on as as propanes heavier, the part to be ethane part comes long-term will will but NGLs that be yes, in getting market. the far concentrated early will

Operator

you. Thank

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

Dennis Coleman

were X five Mike, But, you a that we locations total here, bit little I but consider is this. about, lot some at using about what think that looking you are or a covered would that missed you’re as of products missed identified this these while parts wonder talked you your I there export been different options I giving maybe and talking is moving of you -- you and I comments? that has

Mike Hennigan

Marathon strategically, I LOOP, The only the I forward. with a has which talking mentioned, large we across the Capline involved been the the about exports that emphasis what Gulf but Dennis, have on Swordfish, talk VLCC and family Yes. are which Coast. in we're capable about five

purchased, also Eastern Gulf Texas today. is in We've terminal We also City, which is on tank development. farm, City MPLX, storage crude added Louisiana. have that the Texas the which to in have the we we Mt. tank Airy

then, to terminal in related family. Christi. part will Corpus be is Gateway It which the down other South asked.; marathon The City fifth BANGL as the is ANDX so point, sits in And that NGLs Texas at of this just is the was project,

area, the we to lot molecule So, both two Eastern outside Were export MPC has in two U.S. evolve on mention the Garyville Texas demand that facilities to are because exports, one facilities in continue Bay. exports, of the are of of that City Gulf, just part Investor export attended centers all to chains on world-class big Day, Not base. the as if hydrocarbon believers putting midstream as and in asset a the Christi Galveston at our of emphasis exports all Corpus part you the what

Dennis Coleman

plants those specifics give, new seemed bit you a prices? sort about, Can where can that those about little of and I structures these -- just -- if POP and talked perhaps more sensitivity, stand guess, little can you to maybe sensitivity also any they talk bit and than contracting guess contract have any a I it’s -- ask mean I price to NGL about a or those exposure of then, the processing by your to been regions, structures. to commodity contain And exposure any you had thinking. Pam, recontracting the as you’re of -- contracts little I I new

Pam Beall

Yes.

existing some not really, So, signing it's have that that been contract under for simply the we’re that expect new the significant a have in is time, that exposure. we contracts that are volumes increasing change POP place

you the change, X% price when is mentioned, commodity that every to is I for say and we million. $XX this impact moved of exposed I look said a mean, upto I really total million As sensitivity. used -- at was it $X.XX annual know, $XX our that was enterprise, huge business only we’ve the a year it to not

So, not reflecting but volumes. huge a higher change just

Operator

you. Thank

is Payne Our Ross Wells from question from Fargo. next

Ross Payne

ANDX. I equity is MPLX for both guess, and question of cost biggest capital my

so You’re obviously inside. cost how self the on is they and your right capital to their MLP people first at hold But, important not looking equity mind funding, C-corps probably while now. obviously your it’s obviously are

walk or thoughts down sense make your avenues it would to what So, are there? similar

Pam Beall

there tax. companies to to much pass-through entity structure the valuation MLP of respect that from ay at evidence that believe with versus with we to back just wrapper. the start structure discuss the of We continue about we a I'll C-Corp a C-Corp the potential the the conversion. of haven't merits are have MLP Investor no little the in We Well, in And and is December. nature did MLP seen different converted the an midstream federal fact staying the this that any bit talk instead sustained income benefits with

just change the in know these have with So, afforded in place. you the don’t congress that what tax been will and over cuts remain corporations time

And So, distributions C-Corp. that and It's we is distributable that to that's different of want certainly access reasons important to of Valuation clearly, cash and on have our and ways. returning think I pools to create wider some lot moving a is cash one mean, certainly a to value operations us. capital, comes consideration. for I unitholders, the big of cash of through a about considered couple deeper, in distributing from XX% flow. our of which we’re

conversations time Over not year, had maybe year as Mike financial but of not I one the and units. flexibility more about potentially would a next pretty in a could we way position some I payout. profile, that financial certainly buyback that's build So, lot of partnership in high can and thing next two, a or the the in we in we their our is, that

So, think we the deploying opportunities. it's have really today. But, evaluate. emphasis where our that to some we continue growth good should We capital place we organic where we're that's something will

Ross Payne

generally And it make the to doesn’t sense just MPC into speaking structure or currently, rolling happy that something with is consider MLP MPC is it the box?

Gary Heminger

I'd CFO, rather our have that. Griffith, Tim have Tim cover I

Tim Griffith

it. still our change nothing term. the as I dependent that is several benefits fund continue -- compelled I it's anything as go Well, that's exactly that don’t we Pam And at mean, some frustrated structure tax evaluate There something akin been go the we is business the I we're forward, do. this mean, there not and to what the is equity markets there we the evaluate on fantastic compel of continue can But lot will to think options. certainly to point. would what news to or last a quarters. equity we've said. us. is to It's Ross, over longer with But, we’ll think has that I think we I valuations

Operator

JP follow-up have Jeremy And we from you. from Morgan. Tonet Thank a do

Jeremy Tonet

in gas see, envision Whistler I some just projects is combining the some like projects you those crude oil make about with were there. turn here. of you out natural a the there think just or Permian kind and way is as it Whistler it towards takeaway of best clearly is Would option? other there and projects combining seems really to want to the sense want to talking side possibly gas It

Mike Hennigan

about to we optimize continue similar develop and can always better that stated its project. we So, in and crude, if as to own. We return, on But, a you do we’re that. looking feel Whistler very still get you seeing are as good

the about standalone doing if project to detailed always the of the move emphasize others. we're understand looking to I with was we we we’re that So, well along on in things make project, we of good we trying sure feel some engineering the also that as partners as have conversations going of as one we project, see cost And is, but optimize a really continue to the basis, it forward. can to

Operator

final is from our from Gershuni Shneur Thank you. And question today UBS.

Shneur Gershuni

the about a wondering bit Just talk if elephant we can in room little the simplification here.

You attractive talk support forth. so look and to standalone on about without ANDX basis a to MPLX needing

simplification Is so review? higher go through ratio MPLX. of the thinking to in higher cut coverage forth significantly backdoor about would simplification part that do with mentioned and and coverage need a about a the be You in earlier you the today press you're MPLX that thought enhancing be to and were release If a forth. and so your for also process possibly that ANDX, theory, would as

Tim Griffith

aspects. at Again, I we're think, looking all

want is both should in coverage what the So, managed priority way that than funding should of more the to model. that they we a been be highlighted the for historically. consistent make that is have clear terms partnership self be partnerships We've

underway. is as process it. think we So, in morning, at us elements potential combined for But we I think that's all inappropriate It's a very would we’re -- for MLP. looking front that I to this are for outcome out again, a this said the of get make of good

we're combination get We potential in to what report will underway the to that’s terms going a in But, like when not currently. of could back process that of certainly time at we’re back. appropriate able out look front

Kristina Kazarian

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

Operator

you. This conclude does conference. Thank today's

this disconnect time. may You at

MPLX (MPLX) 7 Feb 192018 Q4 Earnings call transcript