MPLX - Earnings call transcript Q2 2020

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Operator

Welcome to the MPLX Second Quarter 2020 Earnings Call. My name is Missy and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the to turn Kazarian. now will call Kristina over I Kristina, begin. you may

Kristina Kazarian

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

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

Hennigan Now, to over I’ll remarks. Mike opening over this turn for call

Mike Hennigan

call. thank Thanks and Kristina. Good morning joining you our for

goal response some taken on to May to As lower the pandemic We and the the offset systems of for us for XXXX coupled to steps services, investments of quarter achieving generate faced our our specifically, steps million. capital of and decreased to and forecast believe capital progress need curtailments pressure production and call, prices, we we Logistics on create Processing continue quarter The have our distributions positive $XXX to last while EBITDA of business in that the to with challenging business proactive Gathering our to challenges for crude cash we free to quarter. during over $XXX after steps demand the impacts challenges we the support underlying our flow the levels we positioned business refined significantly across reduce stable Storage's the products level second expected, COVID-XX XXXX. to have and response million In on in we operate. lower this announced by operating expenses environment, the target announced approximately proactive by during spending we made helped continue

Turning X. to Slide

Our contracts quality first execution environment. identified adjusted quarter second knew offset challenging the second EBITDA what stability reported on businesses, our quarter steps XXXX XXXX $X.X EBITDA. of of relatively the performance would of our highlights be the the and to underlying we flat our our Earlier during help the versus for quarter of we billion, today, a

second in reductions primarily Our earlier than expected. that business, roughly expense than as less G&P whereas segment realized quarter due estimated EBITDA exhibited performed to we we operating anticipated volatility the L&S our

X. Turning to Slide

combination discipline. element the our from been last about free $X.X portfolio our million underway quarter. other $XXX target billion cash process when since about of last of capital capital progressively year, with grading continued ANDX The combination The a growth our XXXX to announced latest has of has closed key to positive path capital spending target high with the reduced

Whistler our capital focus to to the track customer towards ensure just the continue L&S over to attractive million to dynamically related meet to be already G&P pipeline the in natural on side continue the Overall, Wink-to-Webster opportunities pipeline. continues crude underway current including are the bringing returns. side to L&S this spend especially our XX% that projects in producer the the time needs on we on of about are reduction Capital of oil infrastructure environment. gas were we and online adjusted our as achieve primarily to and XXXX $XXX We target capital target of with business growth we most remains growth target spend

in sustainability report leader. outlines Turning on in information are to commitment content sustainability on as industry and and the year disclosure, community. our reporting this terms which expanded our and frameworks be of comment the We an moment of provide investment is take that a highlights report role XXXX consistent to can to influential I greatly X. Slide Slide with recently want our in found to The appendix. XX the published many

such, our efforts that recent places governance our As to and and take work. I aspects environmental, where upon impacted social the of and touch report expands many live on business. moment to we want events recent a have

communities operate. that's committed all have how diversity firmly to other progress Understanding and starts believe meaningful communities. we'll make I and that creating role in together. workplace, shared promoting the in value a and dialogue we We inclusion are our our in responsibility each with in in we which ultimately a and

discuss Now call our to results. over quarterly the turn let Pam to me

Pam Beall

Thanks Mike.

report coverage Turning of second MPLX to provided leverage of EBITDA X. delivered pleased $X I'm quarter X.X to X.XX and strong distribution of flow Slide and distributable billion, billion, $X.X cash times. that continued adjusted times of which

business Slide by in second at pipeline decrease of primarily to was made versus the helped terminal flow May MPC's both refinery some highlights. the the us we we steps allowing quarter we to X cash continue during XXXX on refineries. second quarter, previously and shows throughput lower strong quarter announced Mike for generate quarter adjusted EBITDA. the headwinds As proactive driven the progress Logistics segment and offset Storage the the faced to A utilization and of mentioned, in

respectively. oil continued of have on second the Whistler pipeline we progress gas interest. in expected the in are be crude to Wink-to-Webster the natural equity Permian During service and long-haul second half pipeline projects pipeline which the and first placed half The quarter, XXXX in the

Texas its reduced the And we construction our the noted we for while we ways to Whistler support processing in factored Texas Permian MPLX, equipment the existing West laterals venture already Midstream end, out-years. Gas Texas. to with Sweeny, new approach which pipeline look existing infrastructure growth differs XXXX and financing to WhiteWater the was utilizes our the producer were initial the which last construction. customers. did To largely During to project to indicate contributing continued MPLX NGL with into along This limited pursuing MPLX longer we West from quarter, and is capital we pipeline capacity partners formed joint provide BANGL plants for a the capital Gas optimized pipeline, with that targets. takeaway to no that joint quarter secured and of venture

joint of LP joint capacity venture Texas has Pipeline EPIC from As solution, own to part EPIC's interest pipeline Eagle with to Orla basin. this an from West in the entered Sweeny, Ford an the existing Y-Grade arrangements XX-inch agreement including NGL to undivided into

entered MPC. that allows a we with distribution MPC to of exchange in the MPLX by result distribution ANDX Western business acquired from wholesale fuel one wholesale distribution agreement us quite Additionally, acquisition million our for distribution The simplify on a MPC MPLX of XXXX. Western we agreed fuels redemption $XXX the business And business as dropped XX, to into down this we common July in redemption in different transfer to MPC units the was the from transaction to held model. MPLX only which

are of Pipeline I legal some challenges. and the System. wanted Bakken share DAPL Both these around X% systems High assets Plains interest and ownership to full roughly Finally, comments pipeline currently including interest Tesoro indirect some our our our of in regulatory facing of

High owners Bureau indirect pipeline, we the regards automatic Indian the the small in which to transfer, situation. the Pipeline determination, representing Affairs owner have MPLX Plains With not stay. DAPL of energy this combined appealed trespass triggers is of System, a the an of As interests

than we of would During this time, million. impacted $XXX to were the event any to the period less of pipeline stay, for In both annual of impact maximum remain estimate be operational. EBITDA pipelines of these MPLX a

As we these processes, we work of the groups. are committed rights indigenous to the through respecting

volumes Marcellus highlights. new where which fourth shifted came the processing the Slide X%. the in quarter volumes decreased year. with discussion the strong last volumes in same period X% volumes versus to primarily prices. year. of second second last Fractionated Gathered quarter some as gas. same to and needs, weakness in business dry production the fractionator driven low the Process production their versus on the needs. just increased to quarter year, expectations relatively online XXXX, producers versus higher that time second provide we their producer of gathered decreased their shut-ins, assets quarter and due production volumes we Gathering have the than last to gathered goal Now about bringing turning and primarily Throughout over Marcellus, Sherwood producer curtailments due the gas gathering due last second increased of year, volumes processed by to as Processed customers increased with In XXXX, by the in a Processing meet remained commodity driven year, primarily X% well our primarily X, Marcellus, to quarter increased and Utica as Utica, wet In customer the Overall, segment X% quarter

adjusted As completion quarter this XXXX a both and is and to the still respectively quarter, Smithburg year. XXXX. the EBITDA. G&P L&S moving XX, contributed quarter million billion EBITDA to in adjusted Adjusted financial while slide. highlights from to Preakness processing second result, placed of basins Slide expected second Marcellus be during segment EBITDA the $XXX segment $X.X plants The in service in third quarter of XXXX. Total Delaware the $XXX the X of for fractionator our the shifted the Hopedale was we X million, in was

to quarter cash Logistics of from in return approximately unitholders. for of million segment flow. increased times MPLX retained The distributable shows quarter, resulted generated For the Storage XXXX the $X $XXX slide in provides will XXXX. of the we EBITDA adjusted and year-over-year. $XXX second XX million coverage quarter, million $XX This bridge our on the and The cash distribution flow of change X.XX the to quarter and second distributable billion of

both key quarter demand provides curtailments, commodity pandemic down and respectively. we Processing for Slide MPC Processing producer weighted of on well shut-ins. and of impact additional as curtailments liquidity quarter Gathering a primarily prices from refineries, by ample an MPC. expenses, segments The second gathered $XX with in ended utilization XX with information. Storage, due and million, and our sheet this service. in approximately lower production lower average to our on leverage While balance and and due increase at more Logistics was segment by $X.X resulting lower in volumes, the billion volumes, sequential decreased summary lower pipeline lower X.X prices intercompany select terminal Gathering available marine and revolver NGL lower processed with by and and offset times highlights financial a basis, caused and and equipment than $X.X On and to earnings COVID experienced bank EBITDA resulting driven was as We billion operating placed facility lower project and available from

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

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

Kristina Kazarian

Thanks, Pam.

open permits. questions as We we we limit will call plus yourself may open operator? for a re-prompt As additional that, call question, one the to ask that the questions, you for to now follow-up. time With we questions,

Operator

Thank you.

session. Instructions] begin will We the [Operator now question-and-answer

Kristina Kazarian

Operator, ready first our we're for question.

Operator

UBS. First question comes from Shneur Gershuni from

is open. line Your

Shneur Gershuni

if with can wondering maybe distribution the was little I a off bit. start we

basis. the improved Your to the how the distribution if Speedway, around counterparty. with two a of your quarter expected. questions a clearly investors which COVID, has was sold on profile as There At about, impacts results level, recently. due was second can you talk you've MPC credit MPC this stronger quarter I difficult supposed to be go-forward thoughts than wondering, the a were all been

so views, Thank you're sort your wondering, us just forth. give about if you I and thinking it how you. So could of

Mike Hennigan

of the Mike is There try and of I the little This question. last on bit one to a and thanks clear a after asking Because was little some quarter Shneur. Thanks, wanted my of comments. up for that things bit. confusion

I you appreciate So that. asking

get the remind let So in style, we've state people, at part then the distribution to first own of of work those all, my And me who the obviously, just me reaffirmed with for level. current and one-on-ones or then meetings perspectives a When that our past to of individual from feedback market. is, and we back the have I'd try and lot ask like to people. feed I and

lens the things. view to in we're everybody So which see gets

of So, to is more clear part that distribution value today important be I proposition. the an MPLX's want

refining the when facing important also on demand that capital period relies it's well. a very a is as of in MPC source business So challenges, significant

pressures their external have the our So we of had who not have have who peers had - that - distribution. made have changes some had to

So I especially EBITDA quarter how and has think this shows profile. its MPLX stability

capital announced to the again return to we in the through regard, of unitholders our that support And so decision distribution.

had. return high despite So that very staying for of others strongly have distribution capital and challenges the us feel of that that the some same we a is priority

I of think is some think is business. we that hopefully in the showing you stability our

But said, was that distribution feel it it people confusing at to So with we have about sorry, reaffirmed the current and last obviously, strongly our time. level.

Greg Floerke

or Maybe Mike, like that current changed, in a environment The is but perspective was today things there. wondering a I from is confirmation and volume is the today, have May. I've above to given are how and appreciate were Now, I minimum early levels? running in few utilizations back really follow-ups they MPLX where obviously where - quick definitely think be uncertain, here. where close refinery at congestion April pipeline commitment to

Pam Beall

I'll Pam It's question. that and Shneur. Yes, take

pipelines, formed we have payments and had few earnings that So we below Qs our obviously where that some we MPLX, deficiency reflected and systems in candidly, were minimums. you see running we that the there were And in deferred a the Ks. we revenue since and systems have in can report had a second quarter during our

So would. volumes overall, But would we've probably of we I the systems be would demand run in expect little a that some had from haven't reflecting bit that trough we that, up expected picking as always the would experienced in back originally quarter, the we third here all around April. they say rebound a

protection the fewer high business, there side at be So minimum terminal I have levels. to we the that, say will pretty running would at MPLX commitments. a volume expect we of a volumes on legacy

So, did MVCs, hit not pipelines, - quarter in But protection the if we majority MVCs. good there. of to second even we continue below run have the run the did the

Shneur Gershuni

in one clarification. just If little I slide can

or strategy where of that With swaps kind a the today, is And see going or the that may swap of forward, to months entities? announced EBITDA between MPC trailing asset have that see two do level XX asset you multiple. kind asset you you some you

Pam Beall

really Shneur, didn't of and committee ANDX pending close with of Yes, kind this review. that we once a a is we contemplated combination the because as cleanup matter had something it, that midstream we pursue

run be business just Western this XXXX, that a $XX was from may about million into those familiar business. Western dropped refresh It with Logistics annual who rate. So, for it Refining to as was in was not down EBITDA of

you run for That that growth in use how so if your MPLX. rate, that estimates so there that, much And wasn't would any impact about business. was the what that's should

Operator

Next question Tonet Jeremy comes from from JPMorgan.

is Your line open.

Jeremy Tonet

start Just wondering to of…

Mike Hennigan

Good morning, Jeremy.

Jeremy Tonet

helpful. and MPLX, you future certain Good morning, to with we the could would Martinez and impacts or Gallup kind refinery modernize any of think any be there a the to thoughts to there opportunities needs to level kind of closures should here assets handle provide are is here of here about MVCs or

Pam Beall

Yes, Jeremy. This is Pam.

operate of the Gallup impact refinery. the to as no So we in the MPLX to assets respect and we'll continue the around with refinery, expect terms to in EBITDA

MPLX going and that pipeline down that from Tex to portion system come is of on refinery, extent to go earnings crude So will Gallup to it the crude refinery. system But the fed Midland. Mex for to the New logistics not related significant a Gallup the gathering

that refinery, So no for MPC out And it continue we of diesel with with running the expect as be period meantime, means MPC assets over the be continue EBITDA relates be in how continuation refinery time. really might the assets do agreements to supply than - that impact could there as idea used and place support have commitments utilized. refinery. the Martinez to volume refined that to to obviously are could over around to But of products evaluating in see then there other much market long will of term, we'll that the it's minimum in call an the those that renewable extended conversion logistics a valuating better asset continue

of contracts. them dropped times, But of So are volume times commitment some these to different different at assets were XXXX. in there out minimum length extend for

expect and cash earnings MPLX. no term, impact So near again we would on the the flows in for

Jeremy Tonet

a you that are provide to far of Gathering could you July. and was as what then color seeing if wondering, and Thanks for I in bit Processing. guys pivoting over as

curtailments what trends into to might or the for a of be trying sense get here? online quarter type heading seeing, Just feeling coming you recovery any back of third

Mike Hennigan

Greg, do to you one? want handle that

Greg Floerke

me? Mike. Thanks, Can you hear Yes.

Mike Hennigan

Yes.

Greg Floerke

July. have improved, Yes, areas prices seen we some out back some come much gas Okay. the the of as We in utilization still to in online with moved wells second we've - quarter we and through XX% wells curtailed close in have did come the quarter, actually associated of but crude second along the more into back as the and curtailment West, those and shut-in online producing we and not probably as Marcellus of we're But gas. crude seen there, it. were

dip the gradually into was it's on in generally April then. yes, So May and improved since

Jeremy Tonet

How July clarification, to that kind it Is of to it trends. possible way? first just that Maybe quarter? frame does compare

Greg Floerke

quarter. first Well,

there to but think that completely and it's yet, a not probably back all direction. generally I were areas getting levels in positive on

Operator

comes question Barclays. from from Next Cho Christine

is line open. Your

Christine Cho

into going up, paid out not of the preference have As a then parent, MPLX, enable retain how a at it parent, you MPC rates you the cetera. will role the view parent to wants that's unitholder, which guys How to to Whether play do use to the position enable tax from being the to what it's corporate assets Speedway tax - guys about, the thinks public et would factors sale. other G&P cash decision? proceeds which of could in potentially potential the

how thinking all guys are about that? Just you

Mike Hennigan

Mike. this is Christine,

sale. use metrics for and So is and back of have is shareholders. that we previous second call, with MPC priorities capital of the proceeds the to investors sheet leverage Speedway return the balance on we One two our told

there. what others receives as lines. didn't I'll that, remind getting stream asked to question ownership we with cash as our or And that did midstream far the the its back because up those questions pretty MPLX asking And a sense MPC were anything flow with the I LFT roll conclusion came a $X.X same along a you robust in via a buy of percentage very just that, So distribution to or it got space we make lot study really already a that at we exhaustive you're and similar distribution. in bring on in billion,

So our was, to either of knowing we Marathon such think transaction shareholders. MPC for at capital served a level would returning by that that billion value conclusion at that that creator midstream didn't parent the it north $XX be study, that, entity was the that would much be better and

to our whatever proceeds. X, and it, to it that's months, to next get now right a also priority what's Hopefully deal to the doing that get Once helps. the So exhaustive best of pretty X that use disclosed as we means and effective we with through be study that close. the efficient going we're over takes of

Christine Cho

of X.X then can you to X.X what past gallons and billion what this years. year per agreement contemplate? done don't of you add if sort has pie Speedway in just do they And happens how on Meaning, contract how does the take the work. fuel billion opportunities And gallons more if compared upside what color some

Mike Hennigan

good Christine. Yes, question,

So on the and traditional years. is XX for XX% X.X Speedway based that's entire of volumes

have commitment the but growth agreement, provide for of flexibility, lot slight supply a their we then there, a to on a got with for And we volume profile. XX% X-Eleven separate also separate MPLX agreement So security a sure.

own. they XX,XXX they stores a of that position stated want So to have

growth lot X-Eleven. a So of we know potential there's with

to comes translates that all two cetera, value be transportation et MPC One supplier and trucking will assets, that, for have that to integration want also for we up We're I as agreements. open MPLX et so directly to comment the the cetera. using base we together. logistics, going separate to sees, of forward. potential two MPLX is So going be increased to MPLX to pipes, value supply actually is Speedway terminals, that the continue maintain of

that upside an discussions parameter going to we in forward it and as to hopefully relationship grows. wanted our then maintain So there X-Eleven is that was important that commercial

Christine Cho

I more just if could And question. clarification have one

how redemption, selling of the sort were units On to cancelled, MPC? asset many type that back

Pam Beall

this Kristina Pam. Yes, is

units redeemed XX,XXX,XXX. the So of was number

Christine Cho

you. Thank

Mike Hennigan

to that estimate is for see? How an

Pam Beall

XX And on just that, days trading how arrived so on at you close ending was based the it July know market at we XX.

Operator

from comes Credit question Suisse. Next Dounis from Spiro

open. is line Your

Spiro Dounis

reduction I'd like of question, with of up refinery follow on There the topics and revisit cost was also lot just beyond up portfolio Gallup. the but that some optimizing a further the came MPC to Martinez Jeremy's call. focus around

contribute wondering it's main one cuts, or its own So what forward that for going even of cuts, given I MPLX way just just asset the initiative providers MPC. does to to by closures, of service that degree cost tariff

with there like at be MPC there seems just future So is for MPLX. potential a actions disrupt to

on you're color that weighing - helpful. there any interest stakeholder would the be So, how with various

Mike Hennigan

directly sure. at MPLX. Spiro, off, so apply at first initiatives MPC, of some Yes, the are them

reduction to And of are at I entities, now of that very change. our more know last time, of deferral. can some MPLX we is forward. count We trying in going in lower as on last both our said said, competitive that some that's be structural it cost may a and expense that to And we feel the about million for talk quarter, since more $XXX confident way had of we But we be XXXX. last a planned structure quarter things

for So we are long-term that's going a be believe XXXX, to committing we impact. that

cost similarly areas, structure. going those I to you're in think heavily trying lower So us on to concentrate see

entities, going better try discussion MPC as in a believer the position both both and and a big far As achieve than for we into coming in entities between MPLX the it. I'm win-wins and out

do want to continue want capture only So integration another for we entities. to on And that we to that, take that a there set is to strong provides opportunities both value not level.

two We going from last job is is, such to to one entities. anything better a obviously, have months So that very for entity do couple it's and an separate my a what's respectful we're standalone. takeaways of we In of the each try best that counter for between were integrating the where relationship two win-win the if of ability there do views. I mean, of both. areas the

Martinez that's know So asset part together a a pretty still is for that that logistics as have terminaling confident we'll assets that to have plays on see making We're but could Pam on impact and the decision how an an said, out. MPLX, is MPC of separately important we achieves go so But Martinez, win valuation good both an the forward with trying evaluate try we out and for Martinez. that, outcome and and constantly both. for the that to come

Spiro Dounis

I the And the are respect you then understood. pipeline sense historical returns announcements. a helpful. guess That's I with us like to to give expected new look Can target. returns to NGL of, compared what your there

terms and And current the guidance it, in I in-service here? sorry your the fund that UJI, of required just already for guess I considered if to CapEx is missed but what's in timing

Mike Hennigan

Yes.

don't So comments return. comments or then we first let individual the Tim, a little give couple I'll I'll give obviously few is, capital and of a detail. go But into more

and in data it date So it been. has is our given we've that to

And point us. all last of said to we to got I quarter is. this, where but for throughout ahead So total some and the known trying best where time, kind we disclose we finally quarter our we is the last had capital of our market always think of as are

outlay for capital the to was going So we Bango. weren't originally contemplated big do that

producers for way. team going this. for diligently efficient we do to that And very a ultimately, So, Tim, capital have in us and solution to to takeaway, get solution continue win-win have worked can I good see to to a that you're hope his us really

very Our our return we're on metrics, returns that going to making strict projects. on we be where get sure good

understand bit a detail, - more there. us why happened you give they it's can then So don't little so what's

Timothy Griffith

it's the As program - very capital efficient we're here. together putting was stated, that

off the your and from laterals the fourth by expected processing think first plants Their pipeline construction to timing. question initial the I was and are the complete be of MPLX about construction XXXX. other quarter WTG of

portion little time, joint NGL a bit the have basin as ownership do about We XX% undivided the a grow JV in own the will itself, venture the the Epic initially of that the to over recovers. ability interest Now pipeline. joint

will of So from Texas. the JV the XX-inch specifically, Epic to a share Gardendale, own Benedum

of some the the points then get that various the and the have us construction various pipeline complex. Epic follow other the fractionation that we that on that laterals to up Beyond up with we connect Sweeny capacity arrangements to

win-win our deal. - JV So and partners the other the all, all in and in a for the

Mike Hennigan

to did project just has the being a needed rest the the for partners on I that way that creative add, staying and Tim was good providing customer and producers and job very service the want of of innovative really the in the focused evolved.

outcome the capital providing of Permian. proud pretty for the pretty the So here, at in efficient, growth good same service time pretty

Operator

of comes question next from Bank Our Ujjwal Pradhan from America.

Ujjwal Pradhan

my Thanks for question. taking

wanted for to with also decision that pipeline the be with to system alone. Pam. the you shut the the really would and I to overall? Thanks both First can impact one clarify plains run expect what and Tesoro, the would Really earlier million scenario the fashion on Plains what situation, number and impact that high that color believe, being respect High for Tesoro a is upheld. the XXX be, Do some adverse on in in to potential just impact you get DAPL around mentioned

Pam Beall

in Yes, Ujjwal. The that from large the could itself, of system a and to the we system aside enjoy from very dispute, continue we could EBITDA today. that continue area run share maintain to

So we - itself. potential particular think from that would impact, just we very potentially a it have situation is minimal that there is

Ujjwal Pradhan

ahead. - sorry, the clarify to So go

Mike Hennigan

remarks, clear. you're add just to Pam's I to wanted so just

appeal, So file did an stay. and which we triggers automatic so

for whatever is, and stays So still on situation were likelihood the it if we're to the XX% about system. for to Pam current low, is trying but maintain reason exactly down, we way reason was to of we think EBITDA the What going it state is. shut that the whatever

is, pretty confident it we that ourselves we're So and that resolution get the can - low time, as the the a same is downside for but to well at counterparties. works as

Ujjwal Pradhan

you already your thanks are project helps, Would the agreement? on with - provided. you entity. under you on And about thanks to the what But that. couple a loans here NGL And takeaway. recourse agreement also both that of Pam Mike of your talk this be can for Epic? That there returns on and that at The follow-up details

Mike Hennigan

Ujjwal. So, we're detail though pretty is say That where a a is think Epic ended is, a partner as to in in ended I spot we level going What WhiteWater would think disclose. But wouldn't type of that of go up that something up all typically we've partner, a detail into. we've spot. good I to we you not

Ujjwal Pradhan

if last have one, Would you you longer given today, year, market this a that short-term floating-rate it September notes makes is a maturity if billion them may. year? two totaling beginning in consider rolling and I $X callable to Do the to of sense? last over a And where issued

Pam Beall

its Ujjwal, Pam. Yes,

we opportunities facility. refinance evaluate continuously maturities term near credit and revolving the market reloading our to in So

So to look we and of opportunities themselves. time look take closely at that when all advantage they the present

Operator

Richardson Our Truist Securities. next from Tristan question from comes

Your line is open, sir.

Tristan Richardson

follow-up Really just commentary that previous on, is the quick question we the a at just and agreement. new necessarily fuel not MPLX $X.X thoughts think changed supply maybe on appreciate all a a X-Eleven question I all on supply on moving to guess the parts. by with that clarification or those Does any terms there? fuel supply should agreement that billion of agreement sit RLFT roughly

Pam Beall

Tristan, Yes. this Pam. is

fuel Speedway. MPLX. MPLX agreements So agreements no all has and MPC between directly for with the distribution exist

X-Eleven. highly for that to potential MPLX. to between MPC expand will to would opportunity is again, and assets for the Mike between volumes an additional MPC utilized. agreements and even MPLX the we could to more in supply to there be - be today, continue highlighted extent the that be But all MPLX. are place of And be earlier, So that There locations as a -

Tristan Richardson

And on a Really question then just just G&P. a follow-up.

you logistics think Mike. long-term mentioned call, I parent G&P the on with around initiatives and

I Is you there? comment? reference protections? talk an think could initiatives that getting could of a that expanded G&P in volume some it protections Can be relates what it kind there Are maybe to that be downside. to volume just G&P portfolio you about context specific a protects or as to made on that to existing emphasis adding

Mike Hennigan

would asked generation? to mean position pretty that, be cash we our the to about test, whether we they COVID, just were we of or assets, for these go it's G&P was slight and at, I deliberate our The assets believe every whether we want refining, that, context can contribute I L&S evaluation be we growth. would et think you, Hi stress will sustaining particularly long get a tell through all to and/or area to G&P, the Tristan. G&P. Northeast And free for that really meeting and the portfolio cetera. where applies of prior term question flow the It's

to I've a that producers. similar area and assets I point. of Now hasn't heard basins the and we're other changed post We lot post X so just we're our you've on so a divest us, the our from some gas we all think and the think been And thorough that outlook. lot a in a in assets do probably pressure said COVID of are pre this we're with at that same typically something environment is of the very But to this lot, very where answer et look assets, today. G&P conducive time, going At asked they And to prices at people those. divesting have current not is pretty want cetera. all the

if assets assets that put other the that see give off of it, our I is, values So not kicking the the cash. wise portfolio we're ourselves I've going off of used free tried will will be players. to position other kicking have many we're cash. mean, meantime, they capital a times in free In going we've be to line all to away, to the

a we issues. in that must any are So environment for do not

time, hope So this see especially all applies I is to well And have. stable, quarter. as sheet the L&S pretty got going G&P the we all forward earnings to the at continue profile, in the strong, other tough people the assets and balance same we're going as evaluate assets is and to to that

Operator

last our from Barclays. And Harry question comes Mateer from

is open. line Your

Harry Mateer

at pulling migrating may as way lower partnership? right profile over lower, that partnership EBITDA are targeted leverage thinking long just being First when to around the Or parent perhaps grade times your as the the with anything has X you to know even for the be on target generally investment consolidated changed number maintain debt that metrics. wondering of I'm one industry, one times. at just the time, the broader in leverage X mind help a midstream I you leverage, about company, about look

Pam Beall

we right Pam. this been And we times think a is and Harry, have have also yes, Yes, we target long-term, be around X would times for over indicated that us. the X.X

capital a and into flow cash after funding both move we generation free distributions. as situation so, And

opportunities increased be the of have, financial would debt. to we would reduce One flexibility

the clearly and So flexibility debt mind. financial we we're provide have directionally that would lowering more it's what across something in midstream that's to so seeing space,

Mike Hennigan

which whether we're capital or to in just ourselves priority optionality I'll decision Mike. or the priority as generating flow, and and we other it's make distribution Pam position, beyond Harry, gives buyback us so need. the whether the stated, to that our to - sure unit But And cash a beyond debt our it's it's to choices. add, the make that where is free cash get get flexibility, is

Harry Mateer

Thanks just for that. my And then as follow-up.

So mean, I it or envision should more that a it's be about be could more durable? is to around corporate objective, on flexibility something the Is there that positive or something cash some free be and year? cash a you after free flow flow. next short-term think year-after-year being as target to of more that how we just target distributions going the

Mike Hennigan

mentioned, in will the think flow, the end what market I And as I not of cash durable. are evolve that the today's nice At position. flexibility put generating now, myself repeat to has more just continue marketplace I for. to would free say us a looking and Right in it's day, is investors

of of entity, thinking midstream as structural not the it occurred we're so is change a yes, in a it we're short-term So longer-term that's a, thinking space.

Kristina Kazarian

Great. And with that, more Mike, questions. have we no

for on after members the you be this thank for in will it you our much Thank MPLX. of discussed morning, to So I'll like additional available you operator, this interest and team questions you back you thank Should you. so or your today of any topics joining clarification have out call. turn us would and to help

Operator

concluded. call ma'am. Yes, Today's has

time have a You may disconnect at and and day. joining thank for wonderful you this

MPLX (MPLX) 3 Aug 202020 Q2 Earnings call transcript