MPLX - Earnings call transcript Q3 2019

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Operator

Welcome to the MPLX Third Quarter 2019 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. And 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

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

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

that call be operational all metrics Please quarter and Logistics. will Andeavor full of include that financial note this on discussed results

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

Gary Heminger

joining and Thank for Thank you call. to everyone. Kristina, good morning you, our

led enhance you Mike to business. seen earlier today, Directors, a special to MPC Stice, As value to committee across of may its evaluate Board of the alternatives formation continue its announced have of by midstream

a turn go Mike. to take let to I Pam further special will before then unitholders valuation continue financial The into moment go keep we aspects. will forward. to into focus the details, structures, analyzing And our leverage on over other and updated committee call we as well to congratulate to me details And as go the as Mike

space, very And is will Mike as but over downstream also tomorrow we record the midstream track record Mike’s entire CEO industry. in of with this this within MPLX. As hands the track tremendous taking his in announced be company good morning,

you, you. Mike, turn it and So congratulations to I’ll over to

Michael Hennigan

adjusted quarter strong MPLX I’m from third with including full quarter billion, to results results report the EBITDA Gary. pleased of that you, ANDX. delivered $X.X Thank

provided flow we of strong cash distributable quarter and of for X coverage the leverage distribution Our times. X.X of times $X billion reported

last midstream allowing closed our on MPC’s opportunities one we As acquisition structure public noted simplified July fee-based call, large-scale, of to by Logistics into and This flows. XX. high-grade acquisition our cash diversified company, in our company, Andeavor a us create midstream commercial anchored successfully earnings

systems Gulf the slate projects. to our advanced our oil strategy progressed crude We integrated We’ve logistics of of Coast. from Permian U.S. high-return and natural creating the gas

XXXX capital We growth growth also high-graded our and target. CapEx our projected announced portfolio

projects of growing demonstrates growing our and in focus continued L&S leveraging shale well export as Our of projects market. as in the the refineries expected support side U.S. key on to portfolio areas downstream MPC’s the the business

optimize we our to your Turning update like to MPLX’s X, Slide introduced to attention on provide quarter. growth initiatives CapEx last that an I’d

As with high-grade was mentioned the priority, our combined to I previously, ANDX, portfolio. first following the capital combination

have our most to We returns. the on expenditures focusing capital plans growth completed streamline attractive

companies had to is in the than will highest selected our value deliver $XXX we the In midstream doing in Virtually, the best the of available For approximately projected targeting we reduced growth projects G&P our to us, so, believe to we position return segment unitholders. business. have which us spending billion. of XXXX, approximately two CapEx of million is $X total. all less what This prior are long-term

remains our especially G&P can positive deployed L&S Permian. cash our flow, of be to in important of same growth in to in to years. our investments, spend strategic Northeast CapEx Slowing premier in the part shift strategic allows our to the region portfolio assets portfolio. of G&P which deliver last continues our of XX% the business segment direction time, At couple over the target an Our the approximately growth

a its across forming Additionally, committee enhance Board continue as midstream evaluate Directors its Gary to of value of special mentioned, to to segment. that is MPC it alternatives announced

create oil strategy X, Moving to our integrated an Slide Permian crude highlight Gulf and natural systems we the to Coast. to from gas the logistics

quarter, gas third construction of pipeline been construction and Deal design purchase purchase have orders, Whistler progressed. natural the has compression orders signed. the agreements During all and

us designed XX-inch this per joint to you pipe the approximately venture Texas of billion Waha, natural from Let gas cubic miles day remind Agua transport market project South that Dulce X of to in approximately been is to feet Texas. XXX

refinery. to gas natural deliver ultimately to MPC’s Bay expect We Galveston

Whistler pipeline. Basin, Midland XX-mile a Supply the per day Basin as the approximately to Blanca be connections X.X Permian will XX-inch Agua as sourced in to an pipeline from lateral connection multiple billion the cubic through to direct pipeline in well the including plants upstream connections direct feet

points to MPC’s Galveston Whistler expect diameter market, quarter, in quarter Permian the Wink origination have Bay of we crude the participation Last XX-inch will destination in points be our including announced XXXX. Houston Texas. The third project, in pipeline pipeline Midland, planned in refinery. the We in Wink-to-Webster service with and oil

in We ownership have in be project joint targeted And continues Wink-to-Webster in a venture. XXXX. to the early service be the to equity XX%

on quarter, of grow new acquisition, the records, system, X% system second day per averaging Mexico barrel a Loving continue Conan County, business day XXX,XXX Lea up XXX,XXX the to the Permian ANDX gathering over third a part the and our capacity quarter approximately of system New barrels crude As the to now XXXX. Texas. in County, in includes Volumes

pipeline BANGL, ensure continue lastly, by Permian Gulf to FID NGL called year-end progress startup. to targeting XXXX And we our a Coast to

same of increase Logistics ANDX. the and by primarily day, quarter combined acquisition the our over second barrels in Storage driven L&S new the for provides business. highlights increase throughput averaged year is throughputs year-on-year X Total last pipeline per Slide million quarter and XX% X.X

provide apples-to-apples a increased owned also of quarter-over-quarter volume pipeline providing versus sequential of as our On if information the help quarter throughputs to business, X% an are basis, ANDX We view XXXX. had second last quarter. we

primarily quarter addition of of versus XXXX. Terminal driven third per was for The day assets. the increase throughput for throughput averaged the terminalling X.X in million an of year-on-year by quarter, increase ANDX barrels our terminals the XXX%

On the October. of crudes to connection will a at mainline with Capline second supplying project quarter reversed, of refinery. throughputs in Capline flat direct Louisiana, were reversal MPC’s versus Mid-Continent James, St. Canadian sequential the be a has discounted Garyville MPC’s which of and initiated basis, purge terminal the progressed capable XXXX. Once

Capline expected with is now service to of crude in expected XXXX, crude heavy XXXX. begin first the half light service in

segment. day, provides X increased sequentially Processing our Gathering Gathering business over Slide quarter of XX% XXXX volumes billion volumes over a increase second third quarter XXXX, representing highlights second basins. the business Utica XXXX, in Marcellus, X.X acquisition. in year-over-year X% by MPLX averaged new and of G&P the Processing XX% Total driven of the gathered and second the quarter the for primarily a versus and and combined legacy Gathered X% primarily ANDX the feet increase cubic per quarter

year-over-year Processed increased volume quarter complexes. over to volumes in and primarily the at X% growth significant XXXX, Processing of our XX% second Creek our and Harmon legacy sequentially and business MPLX Gathering due Sherwood

in XX% the same second month, ANDX Total to Sherwood driven processed day feet year the per XX per cubic billion volumes in Marcellus XXX and the total capacity. bringing feet to This in placed X.X billion sequentially the adding quarter X% service, of capacity plan volumes to last feet of Tornado cubic the the increased X.X the over day. plant XX quarter XXXX, processing of fourth the increased million commission processed We quarter the complex acquisition, XXXX. day this incremental in versus primarily later of Permian we and cubic processing by plant Sherwood per

capacity. billion Permian, operations, in under cubic X additional which processing stages natural Permian from per plants also barrels feet gas the completed, feed XXX,XXX and Once our cubic more capacity our BANGL Processing pipelines. X of feet million approximately development of liquids. bring our various We with incremental total planned which to day of Volumes Gathering and proposed per they’ll add XXX day, have NGL our day would Whistler Permian per

Fractionated primarily basins. the a by quarter our the in the and legacy ANDX increase over in last XX% the XXX,XXX in Gathering fractionation X% X% capacity and year-over-year third and volumes XXXX, quarter, per Utica acquisition. X% increase year averaged day added of barrels to driven and a versus and second quarter XXXX Processing in Marcellus business due representing the volumes increased second fractionated CX Total CX sequentially MPLX

Dakota unit fractionation are products second manifest trains mixed for from NGLs transport the these segment purity G&P on Hub The fully includes XXXX of rail our and to part our to including in in in rail the now processing pipeline, processing a project was fractionation Fryburg NGL to services, and all and completed quarter Logistics terminal. and of hub Belfield plant then loading North logistics the operational. built ship third-party acquisition, NGL NGL the from plant our As project North was gas This Dakota County, Bakken. McKenzie

related Let conclude strategic summarizing me by spending. our comments direction capital my to

less to side G&P. continue portfolio the towards of business the shift we and First, towards more L&S the

of plan to had XXXX growth targeted Our XX% processing the G&P roughly area. capital our

XXXX capital approximately and the spend segment. L&S we XX% anticipate target our plan growth Our in will XXXX XX-XX, was of the approximately

particularly business, investing business less in the Northeast to growth, Permian. diversify by G&P G&P other related in Northeast the of Second, portfolio our to continue we the areas and the in more

represents MarkWest for to projected approximately cash XX% acquisition. XXXX first the be G&P Northeast business year our positive Our is since EBITDA of and flow the expected

will anticipate Permian. that our Permian target in G&P earlier, the in the high-graded Third, we we operate, positive investments capital basins, of to year be cash next flow support the with which XXXX we discussed outside all of our

over cover our turn will Pam to call the I to highlights. now financial

Pamela Beall

Mike. Thanks,

the in full to and while quarter. financial highlights adjusted EBITDA million for Turning EBITDA ANDX segment Processing Adjusted adjusted including and Total $X.X quarter, Gathering X. $XXX Slide million, on $XXX was of billion results EBITDA. for Logistics contributed segment the the was Storage our third

X.X we million resulted billion for will retained and our quarter, approximately of the the This distributable $XXX to distributable cash provided of distribution and For coverage quarter times return $XXX of million flow. $X cash in generated unitholders. flow

to billion, first XXXX, of distributable flow $X.X X in portion our of retained cash capital billion a investments. the months flow was distributable cash which of For resulted fund $X

by quarter acquisition new prices third and the growth from through average of gathered, into crude lower change strong by volumes our of million, from to in ANDX driven primarily and million of last The shows EBITDA. contributed impact and were Logistics weighted primarily adjusted XXXX. $XX the driven NGL on segment service Slide of growth partially The X product the fractionated in bridge $XXX that approximately The increased offset terminals. was year. placed of oil year-over-year. year-over-year, the the Gathering This pipelines processed assets The XX% by and quarter Storage decreased Processing $XX adjusted XXXX volumes million segment over in EBITDA and third

ANDX Gathering and lower contributed second attributable change from primarily XX this increased sequential adjusted to, Logistics partially was the The prices from The The increased EBITDA in a and driven the XX% to primarily and growth in that million the gathered, average XXXX. million, in oil segment second of adjusted $XXX bridge third XXXX on shows to of Storage million, product again, volumes, basis. quarter. processed segment Slide weighted $XX fractionated were of the sequential third and of acquisition quarter Processing on by EBITDA quarter and by quarter crude the NGL growth offset $XX volumes.

XX a balance highlights and information. of Slide key provides summary financial sheet select

were shortly billion release. our of the a facility after These of the facility. financing several continued loan of in on billion billion ratio $X.X $XXX amount including earnings X available with fair and steps new approximately we million bank intercompany liquidity. on leverage term and with in available our the provide We quarter revolver, available undertook sheet strength MPC enhanced our ended and times through balance a activities $X.X During quarter, detail liquidity, bank and our to in $X.X outlined

As to Processing months XXXX, and you the meeting. XXXX year your to should that the important The provided up December volume update I inform that us to look a your Day based highlight last forward guidance was models best in wanted at considerations our few leading estimates. for on and Analyst XXXX available Gathering information

XXXX about slower you our and know, talking growth Gathering for customers shortly and Day, production after XXXX. Processing our As Investor began

next we has we strong, slower XXXX expect relatively While do drilling finalize in volume in for early not XXXX programs the XXXX to expect assumed we year-to-date for their until And growth December customers than the remained Day. our XXXX year-over-year growth year. do Analyst

prices December NGL the Day gallon. for of XXXX addition, In a assumed $X.XX Analyst XXXX guidance

would $X.XX was prices, our while I’ll the basket NGL $XXX expect point gasket we in remind And prices you, per the year year in believe quarter – for NGL to some annual impact. price results that about that do in this earnings a change be third NGL the might we you million this $X.XX from a remind to recent want there every estimate And gallon. $XX low we some the guidance imply million impact. of are improvement and last of

high XXXX at guidance As is the Mike project target our and now mentioned, for we’re Investor million lower grading growth backlog, $XXX the focusing combined on capital for and that XXXX our December than ANDX. was Day provided XXXX MPLX

the to policies And that MPC the note new capitalization MPLX finally, projects. it’s related accounting major important of and planned company combined to maintenance and of adopted

continue expense $XXX impact to an million expect per million to EBITDA maintenance this per $XX capital. We to to in additional approximately year quarter approximately result offsetting or with of reduction

approach long-term with our investment and an focus. profile. expect approach our maintain coverage to As allow to look disciplined investments increase to allocating disciplined to forward, we This financial investment-grade we flexibility, the flow credit cash capital should free strong projects, through capital to us continue strategic highest-return distribution grow

me let to over Kristina. Now, the call back turn

Kristina Kazarian

Thanks, Pam.

the for time for open one the plus you As yourself one And questions, call us with questions question let permits. ask additional we we that, re-prompt limit open that as for We call now may to questions. follow-up.

Operator

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

Jeremy Tonet

good Hi, morning.

Gary Heminger

Good morning, Jeremy.

Jeremy Tonet

Hey, thanks.

maybe of portfolio want a strategic portfolio merger and seems the of that on review all thoughts off I is and with the share now in optimization. able the dried quite ongoing the yet But and know there’s Just it you’re not touches integrated. hasn’t still on to there. ink is start it like lot to stuff any

any So know I there. there can are G&P if sales you share thoughts don’t on

logistics think in said G&P portfolio you maybe Or give another what’s versus thoughts us way, between on right could the any you mix longer-term? the

Gary Heminger

asset Yeah, Jeremy. don’t sure, this quarter. to report We have optimization anything on

earlier, a business. move mentioned to L&S we standpoint strategy towards from capital I to continue look As would the our

environment and generating free interested gas with the at don’t natural But plan is if business, any we time current point. away. are around to correct all the We assets are valuations macro right portfolio. the They’re the optimize giving on cash the this

activity in deploy So we’ll the think the L&S of say prepared there, And you’ve capital that call on absent towards more mentioned heard any continue the I side the us to the time, is about business. our of remarks G&P cash. XX% of business. side will the L&S the off of go the kicking towards side capital the lot XXXX at of same And business a I

Our growth slower portfolio. Northeast and good a be generating lot it’s to little part past. we’ve little very to a a had which outlay Permian portfolio, solid in going – is in exposure the of have kick continue as our bit diversify to of to down is a off to cash the continue invest cash But the as going we that than us we enables

Jeremy Tonet

to to distress It market a Thanks the regards just of turning for on that. high-level capital. lot Maybe return evolve. midstream market a continues with and today like in question to there’s the seems

you that thoughts latest sense your of all share could between or make you capital if with or think any if growth regards distributions, returning buybacks, any that context kind together? how wondering plays there, just about So in to how

Pamela Beall

Yeah, Jeremy, Pam. it’s

capital big on return part thesis. for will companies. very be a big think been midstream part to has And very it I of a continue the So

We have distribution a this growth $X.XX quarter been year. returning

part we going for a that’s year. We of going to be But a investors important for guidance haven’t provided continue proposition value very to believe next the forward.

can our investment-grade focus with the that our profile appropriate credit greater high-grading we’re to fund our business leverage. we that on of so to balance on is is importance the with generate capital free highlighted, cash, investments keeping obviously, operations. Mike focus as And generating the us. an shrinking investing portfolio, business, the amount in the in we cash from Maintaining paramount of have the portion with And we

strengthening really our Returning prospect. those focus on important of financial shareholders capital things. going it’s balancing But is is So be flexibility. an to our to part that

Operator

UBS. Thank you. from Gershuni And is from Shneur next our question

Shneur Gershuni

MPC I’m to to put and to is create or wanted the morning, of to by seemed think I when led going start from an be that’s this that, MPLX Is that value. value be It can a word what in Hi, they’re committee interesting MPLX. it some the perspective? options understand on going that creating used good extracting wondering, Stice. us midstream we give [indiscernible]. And terms are committee expect mission of What an to to going I timeline can off from it options and trying just the Just the everyone. be a looking not on at? Mr. together, perspective? was with you Is if different color been

Gary Heminger

look a as with chose we MPLX. Yes, maybe we Shneur. word wrong synonymous But midstream being This there. at

have think why that’s that within we a really the midstream use term few We will, other assets and midstream. I

going We the have be be still into into to MPLX dropped down they some are considered whether assets to future.

anything But I our assets. type MPLX. it’s or It’s read into wouldn’t all whether logistics midstream of it’s

Shneur Gershuni

you Are options what talk it mission to different you’re be of to going to looking able at? the and

Gary Heminger

go Mike into have I’ll look, the details. Yeah,

Michael Hennigan

remind is and We’ve people looked C-Corp, in had synergies, transaction ratings, Shneur, asset well and I’d XX-plus of it’s had we’ve considerations, I consistently, different MPC. we’ve as XX in that as realignment. at MPLX team external we for mean quite costs, impacts, a advisers both the balance cases. We’ve said one the midstream portfolio to the at I impacts, different cases. optimization, earlier C-Corp, we’ve credit looked over everything, outcomes analyzed liquidity cash analyzed dis-synergies, structures. sheet tax not and And flow everybody engaged stated publicly that for told ways some unlock time things, our value just with on back summer been we internal multiple

announced is bullet value, act that’s not The create to the and haven’t regard. that to activity on would in line long-term silver why bottom this we have any we found date, though,

to we the to continue going committee point. are to we’re evaluate that options to ourselves. to obviously We this where that’s Board’s support continue and So special do

ourselves there’s to and that bullet can act ways if at that we engaging this all up we the on. see going up until not come to We’re different But we to silver value. multiple to with permutations can that continue have point, found after challenge create looking advisers,

Operator

Thank you.

Spiro Credit from Suisse. Our is from next question Dounis

Spiro Dounis

everyone, and Hey, good morning, congrats, Mike.

with and the off midstream timing. review starting the thinking about Just

EBITDA mentioned I guidance some you next that. April before year. guys to well that XXXX degree, had should And think were conclude maybe I expecting think we around all,

So just those now? separated? review to guidance be that get curious Or tethered X can the XXXX

Michael Hennigan

things of December time one it the in had the producing we is that out Spiro, last So then guidance XXXX, profile came we learned in the XXXX. early community in given lower and growth a with of

dynamics we of of and look their them So is together, public the until the year. next they producers one don’t come have their with that plans early but portfolio over the part get really

best So side. MPLX I look synergies at as this was you to our did thought market ANDX and one point, that are both we as share at trying on commercially thing our a it together well the the to good realization for capital capital. understand we was wanted with the find optimizing And to

from don’t So to we happy that have we’re information program what this the But at year. until for very down we’ve any gotten have additional and to $X.X next billion the early that’s producers, capital time. of part we from expect billion, $X.X guided that

time. that this So learned that’s from the last one we of dynamics

And Mike to unitholders regards and continue continue where as going we’re the said, continue to committee, to it ourselves said, they’re Gary frustrated, as all to ways challenge like traded. as well, and because leading internally, and with I to for both is engage you to then like have very equities look ourselves we’ll support mentioned. it as Stice And the

we opportunities. we a continue for that like high is priority we found us, and is action. I But to said, haven’t look it for of think So worthy something

Spiro Dounis

mentioned that Yeah. provide which but may of mentioned detail That’s you know most just kind the little into of color. appreciate question that G&P, you maybe be does a In sales other budget? fair. of any MPC? balance I XXXX or out here. mostly has I the fat with would more assets trimmed more segues dropdowns where does sales then been around, And MPC? and kind regionally, CapEx, could lower? figure of next you asset And take then asset just it that in from words, out color – contemplate you from the that And sort try could

Michael Hennigan

Yeah.

any and kind as been your So question included we was, to I sales analysis. the not it’s where to segment. have portfolio, in asset the directed that it across in G&P of mentioned mostly And

cash a happy We’re with from our standpoint. G&P portfolio

We’re we’re cash mentioned, I now off Northeast. in kicking kicking cash lot a as up off and of the

in there. a good position So real we’re

bit of the we’ve a segment segment, kind over the capital doing and years. directed broaden because been larger into L&S couple to little of of what we’ve more little And kind diversify the our And L&S of bit a we more a the extent. last portfolio want that’s to

Just will repeating in capital L&S. into And in XXXX, in XX% of was targeted be targeted it the XX% XXXX, G&P. of

So our we’ve towards generation in portfolio kind of incurring continued L&S to strategically that’s cash reposition the enjoy G&P and the business.

Operator

you. Thank

next from Securities. of Our from America Ujjwal question Pradhan Bank is

Ujjwal Pradhan

everyone. morning, Good

Gary and into for all both thoughts and thanks Thanks but little dig on First, for my your G&P, color I around the a further to wanted taking question. that. congratulations to Mike,

future strategic fair optimization, garnering G&P of value. longer priority a also business market for the the mentioned market some review So entirety CapEx your call of G&P Gary your that regaining not assets earlier still MPC? asset portfolio in your your And base, as you thinking a MPC regarding you term, and continue – is of a are high-grade and current

was So how share and G&P some on you thoughts I in terms can plan going if of managing wondering you your of priority forward.

Michael Hennigan

to basins support myself. don’t down was to that our want business make Permian. growth repeat have help priority cash G&P in the that in to of all sure But coming I we generation out the Yeah. the

capital that down a generation very we’ve happy deployed particularly of the flow the cash from out of that’s the to But area, the quite $X.X Northeast. what So we capital billion. $X into bit We’ve these trimmed with going in from are budget assets. billion

grow. G&P. the on a lot we Northeast of continue down that to as Northeast I’ve that far as believe is Northeast fact do will public to trying We’ve we’ve bit going is said slowing a that statements, we get occasions that do make few of far Pam questions off the is we I’m but recent continue many know what a to around a the gotten data as believe grow. to deployed little lot of some fits Northeast And to comments capital we��re cash. the going I And diversification, let on as the there kicking

right high-grade now, path we’re to well. So and us G&P, area. see enjoy more that last off as I towards from close of now in $X billion we’ve year, continuing We’ve And between that on to and see to cash the that’s going billion portfolio. for little other been the business to move that we’re future to continue think that less as X the us MLPs our the we spent on, you’re high-grade, L&S, to the $X I generation then which continue bringing the portfolio is you’ll that growth down coming support in think towards more

Pamela Beall

Yeah.

Just pipelines. on and and Permian. about And capital, these in Gathering Mike that to to Processing into be long-haul invest leveraging focused elaborate it there large Permian so on the very will spending in where we’ll Processing downstream Gathering is business are we said the we continue the the

pipeline, So the gas pipeline. which is Wink-to-Webster an that then Whistler. for the natural pipeline, pipelines BANGL And we’re pipeline advancing, on NGL the crude the still project

that to own day XXX,XXX we the on would an of X a generate have move plants barrels least and of in liquids. of Permian be gas will about about a gas, will pipeline NGL be but plants. quite our bit from So available at in-flight the bcf That

into continue and that leverage gathering that an we crude capital Conan continue allocate be. those Also, has the some can of downstream important so to So that Permian will in to the we projects. been element,

So Greg?

Gregory Floerke

want Greg one Northeast. make Floerke. comment the regarding is I This Yeah. just to

an and capital amount we capacity cryogenic de-ethanization basis, fractionation Hopedale it’s customer in our and Northeast, and as and facility deployed we’ve individual capacity time in on have We processing been a large just then well. as traditionally of grow capacity added

utilization numbers, we’re in right you If at look XX% Marcellus, our at now. the

deployed able we growing X MVCs, just And that’s drilling now the and And up X to deployed a been incrementally, And of demand or cracker day being used. also have fractionation a off down of XX Shell so year and system to or that dial fill the from gradually, the we’re capital sort ethanization where is coming that to X, we’ve significant with preparing capacity we’re majority for the Monaca that. And is of XXX,XXX-plus our a soon. plants

Pamela Beall

the of are year-to-date, very to were outlook are up volumes so just I’ll up despite in strong And market processed give I our XX%, in an add growth XX% gathering just XX% the growth more bearish XXXX. earlier said fractionated there, volumes has that this year, some relatively mentioned been and Greg that that’s up the today. combined, Utica volumes a for strong to But and what volume Marcellus basins here you XXXX, idea, the in

growth, value expect of to components wet have the might growth do But the expect have and that And, we NGLs especially areas there again, be bottomed. continue volume down we expect that gas will we some. do come the in to

for And there some we’re potential looking improvement so well. as

Ujjwal Pradhan

Got That’s helpful. it.

plan? are on you can fractionators a Just two BANGL, on gating And that were give one, some us feature in have some on FID that quick you color the what discussed items there? of

Michael Hennigan

still we’re project. the about Yeah, so BANGL excited

is occurring of that a One mentioned couple the of speak and paper things we occurring as I’ve documentation times. parties, between that’s

not that strong going a go have We unless forward, make we we’re to that lot of sure discipline we to now, right support. support. believe have a So we have do

point. documentation of in engaged this at We’re lot a

there, go said specific of a in not next the the going have are are I’m here. of out, months. remarks to still point so to details critical looking it we Some to our in we’re worked FID prepared further because coming being that into details coming I

critical project. at right So the for the determine point that basis go-forward to we’re

Operator

you. Thank

Our next question UBS. is from Shneur Gershuni from

Shneur Gershuni

And so MPLX counterparty the Hi, go-forward Speedway customer my that ask is become there any spin, with I earlier wanted basis? a being follow-up Speedway of respect risk spin? was contracts to on part as to material does or renegotiated to any question that to a

Gary Heminger

expect No, Shneur. supply don’t the all Gary, is of MPC and – This that, Speedway. between we agreement

really assets ties don’t whatsoever. today Speedway any So We and of MLP standpoint it’d upstream MPC. have between between any be even from logistics an Speedway

Shneur Gershuni

much. it. you right, appreciate All perfect. very Thank I

Operator

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

today Tonet from question JP is last Our Morgan. from Jeremy

Jeremy Tonet

Thanks Hi, – taking morning. in me fit me for here. good

touch-base. a that some looking Antero to about on contracts There about bit. midstream producers talk been side. to Just want has renegotiate has the been talking

that for you’re if So I just could able at MPLX? all, mean wondering comment was to on what that

Michael Hennigan

Yeah, we’re Jeremy. our our competitive offer always fees. we with fee. related always Obviously, customers to customers to having a discussions want And

if there’s it for happy parties. discussion. needs situation, have a current the that’s arrangement we’re both is philosophy work different to to obviously, win-win than Our a But

we’re to point. end anything had both we as parties. discussions that the day feel win-win a than long But haven’t open we the I at of those this would it’s So on comment as for at other that,

Jeremy Tonet

sense. That That’s it for you. makes me. Thank

Michael Hennigan

Yeah, welcome. you’re

Kristina Kazarian

be And with like joining your you, MPLX. you interest this that calls. additional Thank you today on any question. and will you – us operator. take the is in topics you Thank discussed thank clarification or have for to Should morning, available questions we your the for last would of

Operator

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

You may time. this at disconnect

MPLX (MPLX) 31 Oct 192019 Q3 Earnings call transcript