MPLX - Earnings call transcript Q2 2021

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Operator

Welcome to the MPLX Second Quarter 2021 Earnings Call. My name is Amber, 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]. conference recorded. this that note is being Please I Kazarian. turn the to Kristina call over will now may you Kristina, begin.

Kristina Kazarian

slides call Good the website XXXX The MPLX Amber. at second accompany Thanks, morning Investor quarter earnings and mplx.com, under conference tab. on be found may welcome the to that our this call.

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

Mike Hennigan

counsel a of appointment. Good that growth of value the financial John congratulate like retirement. Thanks, The deserved announced our to creation under I role This continued service. transitioned John hit been excellent strategic an her joining also missed. years, and he's call. and solid CFO, thank strategic $X.X wish XXXX year I the after much adjusted forward understated has for many her partnership and been by than be you part billion. will distributions has running generating and Quaid team and we will today his let on Board look in of With as to have to opportunity. Pam cash played the quarter guidance, his ground to leadership. We and and well be in XX input that, after that, Beall been of we she many free and of capital. saying morning, second very Directors reported more EBITDA me for for financial start our Her of of will and Pam deserving earlier this Marathon milestones morning as retiring critical would Kristina. we

unit continued processing represented environment. Marcellus. performance results demand operating our the beyond In our EBITDA of year product highlights of cash the flow utilization in resiliency quarter a irrespective this in from quarter of consecutive second Furthermore, for return XX% L&S rebound XX% to to from generated at MPC's company requirements high the continue increase increased of Our and of last excess quarter, the the the utilization fractionation increase This XXXX. and and unitholders second the challenging third volumes capital and in EBITDA to macroeconomic the capital business our our the G&P see segment, higher enabling distribution with through repurchases. throughput continued we refineries. segment In quarter

Smithburg portfolio X and service the are July. efficiently gas pipeline our in the Permian began the Whistler Marcellus strict plans return in natural investments. processing in discipline capital high on Both We maintaining growth and of plant the executing

G&P both Looking incremental the the XXXX. Basin anticipated support to takeaway on track the to plant the Wink from Permian natural remains systems forward the of from Gulf crude the to producer in segment, the processing year, and crude the logistics Delaware pipeline Preakness U.S. to and which we the remainder customers gas expect Coast. completion Webster system, continue half are integrated of of NGL In volume our in part to

for will projects MPLX. focus executing Our efficiently and support identifying continued growth on return high further

footprint. complementary low list to we advance The with the MPLX we evaluate. evaluating are business, and spans especially engaged opportunities opportunities for new of As opportunities, technologies where large robust asset continue a portfolio actively work of creating we assets to footprint our see of part carbon our a in expertise

opportunities identify our expenses, were lower drive look costs to lower compared more XXXX than continue to controllable our also we $XXX to our costs the structurally We at and operating business. efficiencies When million in XXXX.

to improve lower expected We XXXX million to XXXX. on performance with total continue a in for this a incrementally costs lower $XXX compared controllable in be to $XXX million XXXX than of

program. discipline Our EBITDA prioritizing committed return to cash focus business unit this and growing self-funding quarter distribution with excess enable through and the on returned with generate $XXX strict nearly to the capital the repurchases. combined unitholders of distributions capital continues to We our capital million to after remain

the excess previously, generate And well market stated environment. we expect As repurchases execute 'XX, flow, second into we free as the to of as we cash of capital the after investments all as we on plan to half current and look distributions. based needs to cash the business continue anticipated and

our reports. Finally, Scenarios Climate-Related this and commitments publication annual quarter, both we disclosures on continued our to recent Perspectives with of enhance and Sustainability the ESG

X, moment Looking to take to detail. reports more these at in Slide discuss a I want

social, Climate sustainable annually Sustainability including our and the Climate a of and the we've Sustainability the latest and IEA's sustainability scenarios the Report, and relevant new approach our that scenario Our case. our included Report most midstream emissions our our supplement, metrics maintain specific development business. are to topics you impactful aspects environmental, the with adjust governance Within to specific that to highlighting industry. highlights spans net-zero by and will this Report, climate we year's consistency XXXX projections, IEA In see

levels. we've business. We enhances progress move low-carbon that growing continue profile of on a further of from XX% natural gas XXXX, midstream targets target, to this to the methane XX% our intensity our make achieved emissions XXXX XXXX reduce by Through

of withdrawal all In our for today in diverse future challenging meeting shared in XX% achieved of the target reduce needs sustainable XXXX XXXX intensity lead our by stakeholders. are investing we've XX% of addition, to freshwater creates energy In we levels. an ourselves to while by from that short, value energy

results Pam quarter. Now, our and the let me over financial the call to turn operational for to discuss

Pam Beall

the performance outlines segment. X and operational Storage financial Slide Mike. for quarter second Logistics highlights the and Thanks,

headwinds Our reductions certain Logistics for fees quarter and decreases Storage year-over-year, investments. terminal and well equity marine business efficiencies. pipeline $XXX from method quarter and on throughputs, focus from despite team’s in operating on second as increased decreases expense transportation segment benefited as The EBITDA million and the increased the

Our second pipeline volumes XXXX. returned to and pre-pandemic levels of higher quarter than were the

focus NGL to to We to XX% oil the continue oil MPLX segments The to crude we service, progress towards service crude ownership Gulf in On to systems throughout to to and long Xst, which the which a our volume backed finally, lower logistics activity capacity Gulf we Wink return we commitments. Webster gas from volume to And to of Basin. haul throughout continue Coast. the quarter Texas in remainder cubic an expect risk, day and make the takeaway Gathering for the Texas. feet And has expect our into provide play will the incremental integrated Processing natural contractable Wink solution, Consistent and business, the natural on from have Whistler date XXX% Slide projects placed Sweeney, with approximately service On transport segment. volumes with good per on NGL quarter for Pipeline a July X and billion moving the financial its has and to work Wink EBITDA interest Permian the committed with Coast continues Permian by pipeline pipeline the which pipeline the interest ownership Permian from the markets was Webster we gas up commitments. continue long-term is XXXX. highlights U.S. Similar -- in-service the minimum year. provide in year Whistler capacity our XX% this fourth minimum providing gas to long-term system second of of into natural X, ramp project, we contributions this operational to the the

volumes Processing The and the increased of in relative volumes of second of increased segment NGLs, were expenses. continued focus impact global demand second inventories driving With from and and and lower while benefited Overall same to expect operating of $XX $X.XX year, prices was higher the were could second strong NGL than than the volumes million NGL offset the the we XXXX. higher also quarter per gallon of Marcellus exports period on XXXX. lowering low quarter from quarter This For last XXXX. continue. X% more X% volumes quarter lower the second EBITDA increased by process XXXX fractionated processed that gathered of than prices Gathering

X July X. of plant processing into and quarter, the Smithburg During was in cubic the feet per we Marcellus, the the XXX placed on second service day facility completed million commissioning

into to be Preakness continue service We the to Basin in plant next the Delaware processing placed year. expect

impacts XXXX Our remains outlook footprint. for across our cautiously differing the of with rest optimistic

which quarter, half increased we the the to experienced of in activity we year. in example, Bakken continue the second the in second expect For

growth other our our and volume the also strengthening to prioritize generate the flow We assets free with and to expect deployed plans their flow focus to producers’ allows drilling in over basins cash cash on continue generating Permian. activity volume and In balance are sheets This growth. free us utilized financial to increased highly Marcellus, add be in flexibility.

EBITDA quarter. MPLX our flow $X.X cash on quarter for to billion quarter X. $X.X cash to compared the Total distributable and of adjusted and grew the EBITDA second flow Slide was financial second was Moving highlights billion distributable both XXXX.

in within non-core our non-cash include This portfolio. in related G&P of optimization is the of ongoing $XX quarter minor impairment results segment our approximately XXXX evaluation basins. to assets second our changes of The and of million part charges

opportunity. continue for assets evaluate been operations, improved where basins creation really value not or trends have non-core to compelling. And We and there's Processing, such venture a while macro valuations sell will for have joint in Gathering opportunities to

$XXX flow to and coverage common million unitholders. distributions times generated provided distribution we paid X.XX for the distributable cash of quarter, and in strong preferred Our

the the Board unit $XXX December second brings our up During quarter, total million through third XX repurchase work $XXX second million million of quarter, estimated and for returned launched now the was program This common quarter of million in we We of up XXXX. of fourth in to each Last $XXX month capital an additional by repurchase have since to held related current the we the public. through common the of of increase to expenses an the project units. remaining units under ramping authorization repurchase the in quarters.

we strategic spend, project the the both expenses quarter. lowering third maintenance to of that our fourth do influenced remain While approximately there million compared still our first many structure. committed are of timing in quarters of $XX project the and We initiatives higher anticipate and to factors cost

retirement is delivered dependent low-carbon we timing ended and in renewable a XXXX we for the costs is due balance strict X of notes our the higher in callable September of operating made the capital least we ratio an these announced on floating the billion senior business It leverage at and future XXXX approximately Slide notes our of also Today, capital $XXX compared stated million times. a $XXX quarter lower as intention capital refinance core to lower to compared with evaluating. run of on redemption XXXX. professional for market X.X for rate into sometime began, the traditional expect the reductions spending, $XXX XXXX, we focus we expected confident to know We sense some does we million me and business provides my over information. now in additional timing in at I $XXX before not our our the we rate cash flexibility, Those want unitholders. call Because to anticipate half total a half of reflect of next number as my for year, enjoyed first Marathon, continue key multiple career. in to my comments career those of know prefer a year. add be of return to will lower increasing are XXXX. And guided XXXX. the some that incremental of spending structural on million investment of flow second excess that But a to continue And controllable $XXX our our total originally call, As the financial summary opportunities fit XXXX, is who X costs total to including our free look turn And Q&A, as we're still reductions the chapter capital with growth to roles costs, million than the me. I retirement dependent to This other ability financial I costs from our sheet enhance few Since generate Kristina of I've on last spending from well with the conditions. when since XXXX. the will the and the million lowering which discipline, in to ongoing call expect we industries. to cost across lastly, about XXXX capital

energy role results the Marathon future. you'll shareholder We've in Mike's I of as years XX will under look we and investors support my energy-diverse begin to a assist assume been have Kristina, the CEO. John XXth our Mike's my year this to like advisory continue industry with that, with leadership effective the a her with will doubt, amazing the seen for Officer Q&A. And as as the However, also of our working And MPC, MPLX September Xst. thanks they rewarding. the the will for and results Quaid, most forward November Kristina unfold. unitholder all can in Chief executives. I to give company know the And seeing who company team an leader way I the to capacity all remain MPLX a Financial an No transition. enjoy embraces and vision of I'd through with

Kristina Kazarian

great. Sounds Operator?

Operator

you. Thank

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

Our with from Goldman first question John comes Mackay Sachs.

ahead. go Please open. is line Your

John Mackay

for chapter, and Good your Pam, to on John the Hey, and morning. Thanks role. congrats the you, everyone. new next time on

so Just flow relative retained it wanted the of it’s of kind than cash to than a basis. kind expect consumed buyback, on start a we'd expected share lower we but of actually on better

the whether dollar represents that amount priorities was that for guys, coincidence the the same of if and don't capital I it curious, a was first Thanks. kind know, Just as quarter? you allocation in shift any it

Mike Hennigan

This is John. Hey, Mike.

things the Right other You read to probably is which we cash than seems believe still into vulnerabilities we've bit, a Tesoro protect. to situation. it we've we was sense had lower the a little point bit that now, little played that High a be some retained of the much past, itself to of we're a that happy was mentioned one being your what to said in quarters, an wanted this what out another. Plains for than we At couple have sure I've time shouldn't is, cash lot that of in a where buybacks we're couple there, out us. excess trading That's make Pipeline make about same to flow

here. of keeping some So dry goal powder part was our

in. a So again, to good position be it's

to it a going real flexibility. believe I time. want in have to We of we're lot evaluate that continue constantly to

of then word dynamic. I So we time together about know a I momentum, as decide the have base bit up mainly like and excess with powder goes to we'll same ended use a the put because that we of little we plan by. kind dry

a in we're good So position.

creation best point us forward, what's Debt point powder anything going for main along financial the distribution, dry to to our that flexibility, avenues lines see all those think ability the with value open us generating all and us. buybacks, the a For additional are at open to we is having being we're is reduction, of unitholders.

John Mackay

Maybe bit ask outages? expected. about than operating you little more maybe a weaker one of Thanks. broadly outlook from impact bit helpful. little Sherwood as That's potential just and we weaker side. more then little the G&P maybe right. the a the a talk overall? about Utica that's well. And Because All Can also the Mobley I'll

Mike Hennigan

Greg one. let take I'll John, that

Greg Floerke

did July to It which valve we referring I West that X. of to that leak. XX-inch have just was release leak the Greg to to XX, did had isolate a y-grade June plant. John, pressure afternoon repair on that on completed Floerke and to XX-inch turned reduce right. and of and Sherwood facilities at June the made early Sherwood, environment we days pipeline, on XX, on we Mobley be several safe sure here. and the release upstream. we the product minor a line. -- the our to took around serves Virginia That that Mobley to detected outage, a had With We our And Majorsville, the line make on de-inventory believe regard repair our upstream out a All outage --

the from upstream and the returned then The site was service XX the the fairly plant July shut day So about range. repair determined $X to period. of after The quickly we we impact were was on X the was Majorsville the the down. through was impact million estimate those safe. the plants of Both in half opportunity cost period itself of approximately

So next quarter probably a a little split that bit few more the over days. falling over to into of for

think I outage. Mobley and really that Utica Utica, addresses Sherwood, as More broadly Marcellus look So the we at interconnected. they're regarding

than Marcellus, current -- in a I The and there, drilling will opportunity higher be Utica are -- matter NGL positive, utilization of XX% It's plenty expensive a prioritization little really Wells of prices. is Utica still there this are they're bit economics little the that for of drilling at think producers pipelines. in or long-term, of but the and in one and point. gathering over ethane has probably on are CX in our just at in the the a purely focus you've the expense interconnected XX% focus accelerated continued at complex. as utilization still that the ridge. deeper. and area particularly think and and bit y-grade the rich And our at the fractionation drilling That's shifted we've well ridge. past our as third side. -- high -- we're also pipeline to years on lean focus to just as we straight an have processing more plus of as few We dry decline Marcellus have Utica, Utica time gas had our the seen, And quarter drilling in gas continued little more is the a bit We

good at at balance. in Northeast look outgoing are growth offset really to that overall the the Marcella. we any is residue would utilization, growth but sort gas high in only pipelines need full. are fact Not the and NGL also the in nearly And the We of Utica

So part But some of really is area. timing and that's really, balanced we also program gathering, focus it last decline pretty and results to is drilling. of delay strong which driven good flow Utica as particularly destruction matter wells did shale in dry a That in year-over-year these situation. a some in quarter see decline by demand area, is think still long-term, replaced and a more and we preservation the of gas in one know, related drilling in and to pricing we fairly cash one rapidly maintenance the in of the all the decline. year. of Even And with be of COVID quarter need

issue, we timing look a hopefully So will -- that at think and recover. we which as

Operator

Our next JPMorgan. from comes Go question with Jeremy please. ahead Tonet

Jeremy Tonet

to able as be might I nature. wanted of the far mentioned guess more follow was kind today. we of Hi, kind there onion commentary back on just just near what specific opportunity slides low-carbon peel your you of a in term in if I wondering, little good morning. the as some I to initiatives up, bit, of be and the that kind could

now to later think your in what's of versus trying Just real mind?

Mike Hennigan

Jeremy, I'll let on Tim give some that. color

Timothy Aydt

Tim. So good Jeremy, this morning, is

indicated Obviously, many opportunities the RNG, looking CCUS course actively there, LNG. over range to I are support we're we engaged opening SAF new of in time. think and they in Mike addition and CNG, may the to diesel to in renewable what certainly from

indeed spans I a over the important taking but that energy place. believe be yet take not the view. the it assets. will a robust mentioned. without I look that this these at of you portfolio opportunities sacrificing to list may flexibility. strategic have our turn in we energy is economical, a of when Mike believe footprint, we create think us projects But really certainly understand longer evolution our time this think term evolution projects really lot And many be time, We multi-decade a of that that's same does it's of nationwide energy returns. And space developed We that I at large think for evolve

to so. As remain you here know, disciplined we're we're very going capital and

MPC I converted, two opportunities. think has certainly renewable shorter refineries provide that you of when the will the term, look support at diesel

drop these Our in fuels. assets are well-positioned to run

I think shorter that's So the term.

is to future around project a exist sequestration. things medium the longer carbon CCS at We're revolve to given point think some Coast, I the in that fact and along there'll the that capture term be the the like bullish going Gulf down emitters probably there. on

some addresses longer-term I So stuff. of think maybe the that

leave I'll So at that. it

Jeremy Tonet

Thanks. very service online. come entering it. And see Good helpful. Got Whistler here. to that That's

supply the Just even Basin I wondering, next thoughts over if you supply couple side. the could these of a couple your possibility with seems your like as there? far as And just new provide natural possibly on being Permian years taking gas takeaway demand, Mexico, of late needed guess, the pipe there. of a the could what into wondering on maybe 'XX balance still are for thoughts gas 'XX be demand takeaway

Timothy Aydt

the well. Okay. consider, the of production. I I'll prices energy improved take the that certainly shale has commodity an as driven, would U.S. for Certainly, return outlook

witnessed on additional especially require discipline, and that's which thoughtful haul existing think think to time back I our to But production the bringing strategy willing really that the or resulted a around will long at same pipes. producer they're within some of the in fill very support past think we the suggest remaining to also over starting not whether is capital additional I of market capacity I the year, midstream customers focused existing the many fact space.

But timing balancing constrained. as of it's I I I think think midstreamers. the the and once the in industry at will maybe day, capacity will producers act a think that again 'XX it market for to the the mentioned, lot you've always the the the out I be 'XX- does. end think that there outcome timeframe And there's chatter relative a that of suggests dictate takeaway

Jeremy Tonet

helpful. retirement Thanks. That's in of Got And there. best luck it. Pam,

Operator

go Shneur with we'll Gershuni UBS. to Next

Shneur Gershuni

you just these a will few forward up to working to hear -- stay pivot you you to opening all are questions Pam, here. been it’s a and be missed please touch. looking years Maybe off, pleasure but enjoying be definitely that to Please new First that with in a excited you chapter. and

with as there's refined but and the -- on has over just year your through volumes in worked of not guess product coming half of uneven system been you the the kind we've has I terms a recovery COVID, the also an through as volumes system, XXX% now and where at the the get see have that the can -- the we that Are from we MVCs. see added as we’re your volume this fully EBITDA stage going at of forward? stage last a MVC protected across through back -- With a recovery we downside a but MVCs translation we

Pam Beall

Shneur, for first and have the the returned comments. But there pipeline volume we've of volumes we provisions are that The one -- that with minimum a of the recaptured. robust kind commitments, some thanks are to Marathon’s can systems utilization some say all, somewhat pretty be the that that thing they those happens with I on is would refining volumes now. correlated

volume But you'll the cannot so But of commitments able in time much as back to that that side. -- in crude levels products nice uptick been changes would and revenue. we're If returning then we've overall, a the lumpy kind the there pre-COVID quite quarter-to-quarter also robust But see seen revenue to, it that so as system. lumpiness side some reached And to see yes, through the we'll a has not on pretty work say terminals. minimum be the the refined period see. -- when you'll sometimes -- that some quarter. you'll be of as there's deferred But recognize there's we recognize I

Shneur Gershuni

the of investors. maybe, been think buyback about But appreciated much 'XX, sort by realize Definitely I as on guidance. think which out you've And of we been getting fairly program, has active your we've stages that. appreciate of been

quite of talked balance? it 'XX getting you're impact thinking CapEx materially sort to 'XX, with projects it's could of toggling you could that Just Or any FID, kind sit that FID we of haven't you're to CapEx. kind about here that there change can of 'XX. thinking late as about respect how for how in Are August thinking that permitting 'XX, stage of yet, that a something about that between in sort about you're

you're on Just right that kind kind about thoughts stage wondering now? at of noodling this what your and of

Mike Hennigan

second. answer Shneur, comment in you one it's But make to a Mike, going on pipeline me what asked other that previously volumes. I'm let just

that’s benefiting is a the U.S. it's inside more of at system that major the is, U.S. in it impact sustainable moment the virus we long-term One things outside probably the from not the is are than the still and

So and benefits that system down used gets as the the were in Marathon as from used export a volumes result pipeline system more. MPLX inside domestic

on probably that'll once To we on comment said I little is, continue it I change that’s the give itself to that But pandemic. wanted pretty through second you a mean, battle this well Tim So Jeremy's one just bit to that. your pipelines question to yes. question.

bunch at. that a and projects of looking have we're watching We

that As very very, high on is to my DNA everybody we gets know more I'm to make sure returns. really strict capital. I get want

I'll really with projects. say, we deploy capital feel very cautious be, comfortable going we're unless the to to So

watching. energy a mentioned we're space. have in a that We Tim alternative couple bunch the

reaching like. today, return those to a would are some that but projects evolve as We our evolves, we just of not going that portfolio hurdle they're of

get time. So there I think over they'll

$XXX million said, will return that. we're under figured mature, comfortable these And returns, stay things We've becomes delays the return it kind deploy capital year opportunity largely time. out via of rule, and of business trending set out play And buybacks. next of that we if the some a distribution. capital of because as We're then business. thing we're the is than meantime, bad Shneur, And Pam more capital, cautious. In I we've remarks become why, into million with prepared doing been think large a capital about we'll lower going $XXX her the don't for think general to to the I we as at least over in probably of view that. I return via of the itself a year, a more that's capital. added as But we that

continues to to So need time, big I on very though, but fund that's am want capital that the well, the return that way. a believer we mean, At a it in just growth, important disciplined as do part. an you same I

that So we thinking about. stuff we're have

We point. haven't disclosed your to anything

We haven't to till as return. FIDed point return or on it's as off capital. we're return of checking going really disclosed is anything we good capital think that a at a off we're wait because that strongly that checking helps? then Hope way we're And

Shneur Gershuni

Really update does. it. much it again appreciate the Thank you very for No, today.

Operator

Our with comes question Dounis Credit from next Spiro Suisse.

open. ahead line Go is Your please.

Spiro Dounis

maybe the of Pam, you, remainder just on question the for First year. to the over CapEx

to as lower kind going noted what's struggling curious, it of than I that, these service with $XXX half up lot even you of projects build make million. of Just kind that back trending that entering But up to in with a still now. the sort capital with spending think of

that So what curious, build like up? just comprises

Pam Beall

Well, on business, of half expect the side a Gathering the the to some we and spend Processing little second certainly see going year. of we're the -- Yes. and would higher in

We And very the across extremely we spending. as have we first system strict. been capital entire on were our constrained the entered quarter,

and material. didn't see bit expected quarter, that had higher up little Second really we ramp a

the have There XXXX, variety bit. to But a put teams some of of think that the little longer, on have producers of service. core Definitely just Those was have more I basins bit little thing talked quarter are coming the Permian, operating the be -- the putting growth. The there some debottlenecking, back up seeing second the projects a are we've some work. some things little to that as do Bakken and we of in a we been drilling projects up pipeline but own -- a delay in in other like we only you ramp in a hold know, different is that lot terms into have we nicely about. might have not Bakken certainly producers, start through taking spending. it's some them our But activities. now some having

have part are and so well the debottlenecking our and and to just the connects, in in compression, of be then Logistics some spend, the core certainly Storage And pipeline that Bakken business. we assets and work of side of in the some and ongoing going Permian that

projects also we tank So at have Toca. some we have the --

that substantial. there's out, are say project can't one I -- very or they a that particular of kind two it's really So stand

to require then that you projects all we we're here that of lower the evaluating, or could some. capital of opportunities in the have bit could a third given one come we to see of little quarter. two And highlight, carbon noted, we As fourth just the fruition as nature completed these different tried or

Spiro Dounis

does already to $XXX And sort then -- my a of question. that or sorry, is million up as hopefully that $XXX But doesn't it million? back the count in contemplated million, skew $XXX that second

Pam Beall

in million contemplated that's No, the reduced... $XXX

Spiro Dounis

sense. makes That Pam. Okay. Thanks,

Pam. you, for The second maybe one also

assets sales You for the mentioned your of right want It sounds be. to not quite maybe they're underutilized time or valuation. you here them that non-core not where some asset like

assets is and of curious optimization better? utilize new sense evaluated on guys at of So And to to in to which those the terms I'm being what's make to, ventures, joint that those efforts assets. front rates incentive curious point something sort uplift value not are could you if you maybe some of

Pam Beall

Yes.

you until for discussions so And we of premature if announce. ongoing, discuss typically, we're to daylight about a do don't ready to little complete those to But talk Greg, of that we different I kinds have want and negotiations that. but activities on some a put it's bit And know, more? with us number don't

Operator

question Research. next from with Our Stanley comes Wolfe Keith

Keith Stanley

operating volumes I just and for questions the clarification some expenses had quarter. on the

and noted Pam, higher than you be, OpEx QX million to expect QX, think QX. $XX you I So

got expense out just pushed case? QX? year, then similar or So the the not still was the that second very is And second low half to basically, to quarter and operating so of

Pam Beall

will this projects, related with expenses that I spend that go capital Keith, say, is, and there's we but lot of do also profile. it's when what's along a capitalized, projects Yes, driving

year. spend assets mentioned tends So Certainly, of the is quarter given we CapEx spending geography typically -- fourth the that, is half are to spend sometimes probably to thought third quarter, quarter highest more more going we to it's were in of to earlier, as one favorable our of I the than where and And what the third we did. some our back what just second of second happen push located, half quarters. that

we little to first quarter, kind last quarter the second And quarter from place so expected. really some increase costs in to of We did lower reductions expense of a that then, bit headcount year. that related of also And see about we as but the benefit the much the of in more the as not an Keith. it's fourth timing, saw took

continues here And so that XXXX. into the -- first into

that to some mute tended So of that the increases saw. we

at to and some costs contracts contracts. then operating items have of proceeds we the costs are you for of see And increasing costs. to the look different the in related in where the certainly line related that to items of variable definitely purchased Gathering product some Processing percent when partnership, line Now, going you're

talk So you Is by see those expenses, move to changes expenses million, about over we we're about reducing talking we that $XXX volumes. operating are control, that operating flex which helpful, don't operating now with when in have operating expenses going Keith? around. some our But volumes,

Keith Stanley

you. thank is, That

well pipeline of And to wanted volumes. I sort sorry questions here. circle as the on detailed have to back

So QX you they're assets? volumes, the even above to Is volumes look sort recovering what from in actually referring almost And correct? with pandemic. volumes is When that is causing second MPLX levels the pipeline commentary on export U.S. pre-pandemic that quarter you're back to XX% better at I before outsized of levels. of pre-pandemic dynamics of some demand pipeline the that that some the pipeline the versus were 'XX Mike,

Mike Hennigan

now. Keith, is Yes, right think I exactly what that's happening

as and better But some domestic the the a in time, a I we're that of is pandemic think opposed to than even the benefiting U.S. our the still the in news is term to transition with assets we're run getting to globe. is keeping position as extent, little rest So, that'll In MPLX we're obviously export. good for mean, over itself more I harder, out. MPC volumes, short

So I think overall. that is tailwind a for us of little bit a

Operator

Cho Our next Barclays. from with question comes Christine

open. Your is Go line ahead.

Christine Cho

about the mentioned someone that Pam? think team’s color end of there year through I else of and sort of some the be just how sort is should provided the Marcellus work. on outlook. Utica again, timing would who this driving is a helpful? volumes on the some anything thing, held -- any one the sequentially, or we color processed team the this decline, are down But cadence on was some there like But Tim think were you

Pam Beall

Yes, think one. Greg that to Floerke I take wants

Greg Floerke

until would don't I certain if Yes. steady not a no, quarter-to-quarter variation. do location say, on new and Christine, a or there's have gets they up one on increase made and in the we a comes wells producer get add or you'll you'll -- volume. decline get pad there's Again, cadence, an volume, the always even in having then you’re another, wells, in that

or that the So any processing issue. you our see year-over-year quarters we overall, and term I there. had on the look But depending mean, volume things we variation our long if events will have growth Marcellus, at in we don't you other -- happen, see weather

over In that fact, we're day maintaining XX we're utilization that so or percent -- a plus around and X.X Bcf processing. X

better over pricing seen So strong producers are reporting this Hook to clearly and gas of of be both our a continues Marcus than pricing NGLs. area -- some in is terms and there. favorable, Bellevue differential,

in there. Marcellus see spot the don't good really So issue any and

Christine Cho

here that, that well bring to think there I about of out it's would connected we kind higher? from be think going we cadence But should flattens additional as are end, through pads or guess it year

Greg Floerke

that our lot NGL growth. as well a The for -- quarter-to-quarter. will level depend utilization Yes, it as producer. of of headroom not again, lot and some I lot reporting producers depending out on a really gas own there capacity of news think at good high We're pads existing infrastructure a off the headroom and maintenance a type drilling growth there of using low on there. it utilization, there's drilling schedule, is existing But are such is maybe pipeline outflow isn't a and

we would prices stay moderate of with bit growth little a maybe maintenance see to it if So expect level good. yes,

Christine Cho

Okay. over the how that CapEx you And side, on And any for willing sense units would Got L&S make guys participate could in logistics, so, role have to MPLX MLP? to? pretreatment addition then a to the if in and it. would side? to to be pay in or conversion it moving And the then the much Martinez translate logistics processing

Mike Hennigan

it’s Christine, Mike.

MLP, the really already logistics not required are First assets the off, in there's on so there. Martinez, capital

So that'll be that part of project.

processing doing the but enjoy the MPC will So for [RD], opportunity. is obviously MPLX logistics

case. So the already that's base in

thing As far question, have that's structure. optionality, our second a as we about yes, your nice

we'd pretreatment our said, best at for what's move MPC about do we like to create else, something both forward, the goal. that's Obviously, always been whether or time, opportunities we'll to you MPLX. like the it's As discussion both value have same and/or

what the is to the come those time. obviously, question. as at think that. And we'll with So come table, your definitely it up, solution the is out then But debate best we on

Operator

last Blum with question Michael our Wells And Fargo. comes from

Michael Blum

congratulations your I Thank you. luck to wish chapter. you want Pam, add just and the in of my next best

obviously as that couple ability NGLs? impact or my a by of to running that in think any end it going how system year. are One, Mariner up marketers And questions. your just get positive to Is about Just the negative and question takes, will looks puts to of NGL curious fully up is mean, And to market the I that either largest I'm there your this it's like of relates business? your you and guys the Northeast. one the

Greg Floerke

here Floerke Michael, again. Greg

over and -- East come We have there's taken Mariner of. on past years it's XX, our X customers seen and or X, the we producer East others incremental incremental Mariner been and growth advantage we've whether capacity few that have

there I also piece one as well of terms residue one but -- that goes go controlling how dictates factor, in processing pipelines, as capacity. it's Obviously, think capacity -- NGL is much that gas to out. that is

utilization range. in high operating we're that So

additional to it's overall that coming because running really capacity high hard anytime from Mariner so Clearly, thing pipes And whether at say there's you have online. a are it's good any of a from of the perspective. but you’re because capacity, potentially systems expectation interconnected adding all utilization sort those stepwise of not capacity, additional takes bottleneck. But on away one our uplift high

Michael Blum

system contracted project. costs any question guess then associated there Got the it. is this And NGL question the And Texas capacity, my is XXX,XXX Gas. takeaways are JV? by I that. with WhiteWater West second a for to Thanks JV and with day the the is, of is that on fully

to how about understand I sure think make to want this? just I So

Timothy Aydt

I'll this in. chime and Michael, So, can that others Tim. is take

capacity think it the course then this up ramp start of I year, the the initial capacity, would in when the quarter system. the of course the It's to you and over expected of look -- fourth at that's time. X of phase

so the the system, think that. significantly is, on And that it some recall, from order is as scope we just phase. the that But important current project the And we meet back obviously there you -- initial to commitments have demands. its part original the back are in I scaled is

So solutions, this or efficient continues approach I think recover. into capital leg really allows the the expansions as basin to to partners any

example another strict discipline. I our capital think it's of

with our so happy XX% ownership. we're And

of As to basis but the on we over guidance don't a project course required. time, specific far evolve it'll CapEx, the by the give continue as on project capital

So helpful? hopefully that's

Michael Blum

so Great. Thank much. you

Kristina Kazarian

please any us no operator, to thank questions the and if in All team we'd out joining of or you your of for on Have we topics available would be and you day. great right. have a additional discussed interest further to like for clarification help. today, MPLX. today everyone Well, thank our members have questions, will like Should reach

MPLX (MPLX) 4 Aug 212021 Q2 Earnings call transcript