MPLX (MPLX) 2 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Kristina Kazarian	Vice President of Investor Relations
Mike Hennigan	Chairman, President & Chief Executive Officer
John Quaid	Chief Financial Officer
Greg Floerke	Executive Vice President & Chief Operating Officer
Tim Aydt	Executive Vice President & Chief Commercial Officer
John Mackay	Goldman Sachs
Michael Blum	Wells Fargo
Jeremy Tonet	JPMorgan Chase
Spiro Dounis	Credit Suisse
Theresa Chen	Barclays
Keith Stanley	Wolfe Research
Brian Reynolds	UBS
Chase Mulvehill	Bank of America
Tristan Richardson	Truist Securities
James Carreker	U.S. Capital Advisors
Timm Schneider	Citi

Call transcript

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Operator

Welcome to the MPLX Fourth Quarter 2021 Earnings Call. My name is Kristen 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

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

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

with I'll Mike. turn the call to over Now that,

Mike Hennigan

morning we XXXX our billion and quarter joining of the thank and for EBITDA Thanks, for fourth billion year. full adjusted Kristina. $X.X for reported Good the you today, $X.X Earlier call. of

we've as year, levels. made past annual cost the over significant expenses our in years. our each $XXX target, on exceeded XXXX our the Over initial three priorities. reduction approximately by area this operating compared reducing of to million We executed progress We've last two

how being projects last in capital is by multiple the embraced over embedded the reduction conduct organization We being what low-cost maintaining so year initiative a a culture as strict service And is cost began our discipline. into now while brought we business.

project, natural we and gas, three into Permian our oil projects, across were Wink-to-Webster NGL systems expect these ramp volumes all crude for and to over placed L&S for Whistler service our the segment, time. Within takeaway

in and operation. have the the segment, Preakness plant plant in one Permian both the the started the processing Marcellus G&P processing Within Smithburg

assets minor Texas our and Javelina continued in We completed portfolio in some of million. plant sale approximately proceeds for also and of Southern processing gathering $XXX the efforts Wyoming optimization the

return efforts, XXXX to to and In addition product us our tailwinds the from strong the cost enabled strong in over repurchases. demand. prices unit U.S. you have All resulted benefited of to assets, also and On and flow in cash distributions been refined recovery portfolio to Alaskan optimization back and we process last we unitholders these be items exceptionally reduction NGL through working billion details $X.X and communicated. more can share. storage our sales that since we we've We'll when logistics

our outlook Slide DAPL the $XXX for Turning pipeline in our capital, to announced capital deck. capital and of approximately million joint of share due for of repayment $XXX million. of we That XXXX plan $XXX XXXX. X million Today, includes debt $XX growth in your million maintenance venture the of

such to investments projects the related is activity. of expansions XXXX directed and plan expected towards Our high capital to existing expected producer our debottlenecking as capital returns deliver assets and increased

are low fuels complementary can that outlook expertise primarily G&P we competitive capital and and our our in to with we as on supported assets likely L&S opportunities current our opportunities term, also our our While where through in advantage our MPC's continue asset evaluate to be logistics leverage be focused are supporting of is carbon footprint, such technologies investment renewable footprint. these Martinez to Near efforts MPC's - support renewable or project.

allocation I'd last this strong on strategy on I our to capital as quarter's like of some sheet. X. framework, Moving provide balance is call. executing foundation The mentioned to a Slide comments

health to of communities support assets, around we remain and leverage ratio a and remains which the protect safely our and our target investment-grade safety steadfast committed to capital of to the continue operate. Xx profile, while We commitment in credit an and maintenance our operating employees

declared XXXX, a are to met, on recently a have to distribution on the X. to these quarterly In business. we capital distribution base We focuses and the Permian expected be continue debottleneck focused X.X% very return investing on plan projects November commitments are our is and Marcellus, capital increase assets. most our of that Bakken, the with grow high coverage opportunities to and majority where in After strong directed the expand at existing

use As flow stated we or of additional free on it a believe distributions. dollars, and growth after in I've Each a capital, for our distributions past, we quarter, both the this be the cash evaluate return business. determine and will return is optimal buybacks those capital

and about the As was a end our performance these prices achieve innovative to on capital, position return energy technologies initiatives the do we'll reminder, later progress which our opportunity And XXXX. targets remain believe reaching we including XXXX incremental optimistic asset both by in for the X. the decisions our while had setting Through well achieve XXXX capital. we many MPLX strong We're needs of operational how on And and to all improving using evaluate as plan We targets. future. one-off business the nearly methane energy our drove we NGL resources, return to and Slide quarter, plan sales. this to intensity us reduction carbon we and natural we conserving the halfway efficiency Shifting focused to these our tailwinds sustainable solid targets disclosures it. and to in of are made of 'XX, and operations we of transparent products, freshwater on make the report lowering leading and intensity of on

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

John Quaid

Storage rebounded higher with were up MPC. Slide these of and and XXXX segment up pipeline financial $XX comparing when from for highlights quarter lower Mike. million and the terminal performance the throughputs and segment. to X fourth adjusted Logistics by volumes contracted our L&S Thanks, volumes marine rates transportation Pipeline quarter were year-over-year partially our The from increased operational were EBITDA the joint pandemic. XXXX. fourth XX% industry outlines higher as XX% distributions benefits ventures offset

capital a expansions smaller Turning More Permian half NGL to and directed L&S gas such XXXX debottlenecking planned systems. than projects growth our of of is our capital number natural outlook. segment, as and takeaway expanding to the our including

Moving EBITDA on segment segment's segment. G&P and to $XX financial due the prices. million compared XXXX, and increased to adjusted Slide X performance the provides quarter highlights. quarter fourth Processing largely higher our Gathering NGL of operational to fourth

X% gallon NGL quarter, compared prices quarter to sale volumes higher fourth the XXXX. per gain $X.XX and gathered lower $XX of in than million offset more of NGL the X%, the this Overall, of volumes. volumes processing double quarter's $X.XX For These were prices per X%, gallon, averaged up and the XXXX. quarter average more respectively, fourth down the of while effects were and than fractionation asset

to partially were processing in lower our and early Our volumes the plant divestiture XXXX. processing Javelina fractionation of due

X% processing Focusing X%, and decreased on region, Marcellus, our the XXXX. fractionation decreased compared largest fourth in while volumes volumes volumes of quarter were X% to the up as gathered

During half Preakness in to the fourth plant of quarter, through expected The XXX commissioning the Delaware processing in as December volumes the cubic Mike continue ramp ramp Basin. per completed mentioned, day of and facility first the million feet operations up the up is to year. to we began

capital both largely Smithburg the per X projects in for plant processing the XXXX. growth basins directed capital; as and which Bakken Marcellus Gathering the the XX,XXX to Marcellus in segment in cubic Permian, and day Basin, the to to such planned Turning and XXXX are Tornado per come Processing second half is feet day in of Delaware of XXX,XXX the the de-ethanizer expected online barrel

X% was was adjusted highlights fourth quarter Slide financial to of year distributions $XXX EBITDA billion, $X.X of public. common prior In the the through units from from Total cash in increase the repurchases quarter, on Moving flow prior billion MPLX unitholders almost returned held $X.X distributable by X. year. to billion an $X.X million up fourth X% our of and $X.X billion, and the

million leverage $XXX XX, quarter. and of debt fourth repurchase X.Xx. billion of with distribution MPLX current ended a of coverage of We unit, of under distribution per year the around $X a As for resulting authorization. unit December in total We quarter billion ratio X.XXx $XX remaining available the had the fourth declared $X.XXX over

As about with under and of you cash we XXXX, loan availability recall, repaid MPC. intercompany billion debt $X.XX with maturing long-term during our

billion long-term agreement MPC to to incremental we subject our had on discipline enhancing with a flow, strict refinance capital ongoing which, to and conditions, we year-end, low-cost expect financial our $X.X capital and the debt. of unitholders. to expect In loan our grow adoption to drawn into culture, commitment given invest business closing, return strong of generate As our while opportunistically we intercompany market supporting conditions, of about continue also to cash the business flexibility current to

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

Kristina Kazarian

questions? Thanks, you John. open can Operator? the [Operator for Instructions] that, With call operator,

Operator

Thank question comes you. [Operator Mackay. first from John Our Instructions]

Sachs. now is line open. Your Goldman

John Mackay

into the Appreciated time. growth the for of Thanks color looking and everyone. morning, on CapEx the good Hey, context some 'XX.

'XX could you below where more spending us of give in that little we terms Just 'XX any initially a of saw of bit way And related number? if if Would guided, maybe kind that, this wondering so shifting on bucket is to incremental you'd Just in then be Martinez? energy 'XX. transition context there also on anything that side, just is into too. to the that any -

Mike Hennigan

point, 'XX is bit little makes spending a its first of yes, there 'XX. John, way on into your that

bit little that. a there's of So

to any a smaller would we're headline, here, you big that you general, general, of have about don't bolt-on it Tim would too. the pretty And be tell let me a So like return. - as let we little that time, to But at comments Obviously, so Tim, and actually general. why it's same set Greg, a which tend we was excited to examples would tell of Greg lot some you observation. give headline in some projects what for don't we going tougher in little this In think don't in that about guys talk I But I'm you, debottlenecking capital. now. to - large good have I better about. have talking guys we expansion about projects a I have give we're you year the But

Tim Aydt

I'll over couple is just give this then to it Greg. Tim maybe Well, a and Okay. Aydt. turn

spending modify are And assets the capital refinery in conversion the You fuels. right, to at of Martinez. money really, spending to support that's MPC's are of we renewable

Midland that's another Basin. to recently, further of into we is, So point I maybe up example then, chunk XX-inch the Basin, the think announced money the Midland Whistler I'll a of And expansion there.

the And basically will fill see it's to I result, we're customer we're those input. essentially to Whistler X.X being And takeaway the gas think the that given to expansion producer lot on Whistler. consider a a tightening of of potential starting - Bcf. as situation faced, capacity volumes starting

other a that's focus. just and So But lot couple those said, of as opportunities so a for a there's forth and examples. of Mike are bolt-ons

Greg Floerke

then now are With the is de-ethanizer project two capital, this projects And Yes, midyear. we and Floerke. underway that increase Processing the our plant it Smithburg capital online Greg come when and Gathering day to which regard one next have will plant to largest capacity that late our other West scheduled per to comes large year. online processing for is Tornado X Bcf Texas

the The in in Marcellus other capital the Bakken gathering Utica on some growth dry and and around lines is area.

Mike Hennigan

really people I think John, I So understand to going try that. a good are know question to and it's

Greg Tim was we're What Complex. we're is, project, example. what saying So hey, adding the is was Smithburg our adding as Whistler an to saying to

it's really enhance those. year, that we capital to debottleneck a nice a going of already the and are in small a can expand because it assets little of we're list for they're and good. our side That's but have So that this side projects is what on program existing the pretty tweak revenue bit. long really relatively And lot

John Quaid

in beginning John, year from just a right it's we're item look John other seen debt little maybe have probably one to fund capital, say, some that there know you to is at what while talking plan the abnormal the And as - again, make happen that's just where from the first in well We've now, might to prior towards partner to we other nuance front-end matures. years. the than our got loaded this maturing just Quaid. be on when JV. and going years, payment us based would prior quarter One equity the there's I thinking got more bit this debt as we've the about, about we at of

year a another context, past. in It's too. you've this little bit seen what more the loaded So probably front-end than little

John Mackay

Definitely That just was quarter pretty follow-up board. my here. across appreciate the Super clear looked that. great. and Overall Maybe good. thorough

takes, products. and a again. good. Some kind looks puts was of G&P look processing weak good. little Volumes Utica

watching. drivers Just could for the just EBITDA we on curious if downside us out context be you looking - should that give into some some upside, you're general of XXXX,

John Quaid

one called John, the Yes. largely affected we be to certainly, in say impact. way the the do to And may $XX has on red bars I XXXX. maybe year, mean, some a million tailwinds think as annual them is think business to that past, moved fee-based the G&P about roughly or, on an throughout which we're sensitivity have about that a while significantly side, the year $X.XX NGL we up NGLs right? prices roughly Mike is of

So year, we The That's know. for that when, of $X.XX. going $X.XX. fourth go be the $X.XX we see all quarter to start it to was don't 'XX? for from What's something we to

So that drive That, results I think, to understand in watching. 'XX but it's certainly something how we'll 'XX that's be early drove might 'XX.

as referred sales, to, also million have proceeds. of $XXX over some We had Mike would asset

opportunities we may may Again, but for review we're So portfolio look continue not. have to going again. and those those our come, those to

also of had wood, favorable that focus on around discipline on as but count Again, uncertainty was wouldn't capital capital concerning too, spending. well. some working cases on reduced year, activity our maybe a to and just capital continuing repeating that We to And on that their of some we maybe of that some as necessarily had knock we're strict that start come we kind the little less down Omicron. seeing, COVID producer certainly maybe last look

So I want if you add Mike, know there's something to to that. don't

Mike Hennigan

explain we just that bar bit I one necessarily they flows. and think very markets. terms referred a refer code on etcetera, I I on to I in a all John Yes, probably all use more not the would could in themselves, call repeat of flows there prior And use things cash going want used little as - thought flows onetime I are blue or to be They little to John, count I is our markets, explain that that life. that, add and to as used it's cash the should don't my I are term that internally put then stable in just I one cash I much. that bit. that I And John to red

knows, think about we cash and cash going hopeful bars, flows. are stay strong John the or the we think our as mentioned NGL we're And about some on Maybe prices. pricing. count right? way bar try red goes full So, to that. flows bar not year, there on market through blue it'll to who That's red the I other commodity year, be the but

red clearly those So are that's to got Like element sales a it. said, little evaluate We'll as bit along. red. come of those John

which So it's blue and red of we determinations general allocation etcetera. kind capital to about get allocation on versus of distributions capital back the as way part us in we our are are helps the the buybacks, make which think

hopefully, So helps. that

John Mackay

No, that's Thank you. great. Appreciate the time.

Mike Hennigan

You're welcome.

Operator

Thank you.

Blum, Wells next comes Our question Michael from Fargo.

Your line open. is now

Michael Blum

Thanks. Good everybody. morning,

Mike Hennigan

Good morning, Michael.

Michael Blum

is in you're timing Or it that the budget something on the details helpful. up any or clarify, to that plan would I to XXXX? considering? day. want be really the Bcf that's is wanted in Whistler something for still follow if expansion and just about that budget, a And I to just cost X.X is comment on actually

Tim Aydt

and Whistler attention looking so up the grow to to is and out there. to So take was draw is trying on Midland extend It that forth, I'll of partners overall. be a being in contemplated expansion that What forth. tapped we'll existing as that Currently, is to this some that into is we that item by and the one. currently continue essentially capacity budget capacity so Basin we've I the is Tim. not JV

timing, be that as seen. far remains as to So

come more So later. to

Mike Hennigan

was Tim's. at Mike. is of he end What the it's beyond to referring this partners lateral. Michael, add to of the January, the little this extension I'll MVC bit a of have made announcement commitments. That we And capacity just -

Permian is some step some we extension the more continues to up as additional to that of next to little area more. geographic capacity then can the project. another assets So grow add the kind the us And take into to gives us put

what announced kind was January in, thing just So committed. two-pronged that. Tim is - in what doing a We're with we of describing, near

expect part The this is happen. we second it to of

it'll the expansion that good able and a we'll have be be that makes sense. to We asset if to economics beat provide, tough

Michael Blum

that. Appreciate Absolutely. Yes.

meaning distribution you've I a ratable your The after you had do of pressures in do inflationary to the second other allocation for light to increases the know seeing I all need In distribution mix wanted buybacks the Or all sort question investors? the to thinking growth of was in guess, impacts year see options been the offset capital continue XXXX, really, question. that just raise you if we're distribution year? the of inflation market, on your versus and doing faster just

John Quaid

John it's Michael, Quaid.

looking securing to want around Again, and I assets, that balance that growth distribution, buybacks think comments, we payout our and Xx. as about look the where at kind is of ratio we right, opportunity the maintaining right? or to looking focus at on more now, you got at where growth We're at we around that we've X.Xx go back then left. distribution, opportunities as And we're are is and think pretty a know. We distributions. capital strong comfortable We'll very Mike's sheet. be

one we So look avenues it's about of think we at of certainly capital. the as return

Michael Blum

you. Thank Great.

Operator

you. Thank

question Tonet, comes Chase. from next Our Jeremy JPMorgan

Your line now is open.

Jeremy Tonet

Hi, morning. good

Mike Hennigan

Good morning, Jeremy.

Jeremy Tonet

evaluate or up Just a catch I call asset the your was some with seeing in you are approach you? wanted with that just the rotation? a this And assets there? there the if to just was of that starting that And just they Wyoming. value assets to G&P the at the wondering and close $XXX on be that, your more of what out that sales check there I to in appetite guess, wanted market beginning the of sales. you're did million see out of to there valuation maybe you in over else for general, how there, on someone to comments is Are pick could continuing the regard bit process kind

John Quaid

start first Jeremy, part the with it's Quaid. John I'll of that.

just to sales. So two $XXX the proceeds clarify, year the the for million is from

that of the and Southern million million those in then of the sale assets in gathering Javelina from about Wyoming. earlier includes sale from $XX the So $XX XXXX

those for the of sale Wyoming gathering two was pieces kind million both make So there's kind of of to our resulted the else's. and numbers. just gain And optimize our at assets them actually $XX review that. in a rack I'd say it Again, just our just continuing might in of about and sense $XX million, someone quarter, in look those portfolio what versus of assets of about to from to the sense what in makes portfolio proceeds

in on of and as where, spot same - cash well. I'll I talk others some flow. our generate think of every I I'll - maybe the question in start the Again, while to these continuing we're in we're still chime basins, think basin kind quarter. we about let some

not starts on in think but significant we're the market updates And sell compress to review we'll moves, and - certainly, here that I if those. right ask see bit now. don't that the we something bid any have we'll rush So actively as but to a little

Jeremy Tonet

to helpful is anyone that's And there. going it, jump Got in there. else unless

John Quaid

getting I'm around the up thumbs room.

another that, I Jeremy, if good that got think think the is you question. I with everybody So was -

Jeremy Tonet

Northeast wanted the to on activity there. just I great. Yes, producer more bit a touch in

completed incremental it's in takeaway the same realizations of the year At there's price which looking would the capacity then this additions needed NGL incentivized coming challenged NGL here middle could has for in basin this like time, getting really Shell add here. and East and drilling. help although over been You the you basin time, been the have egress. in have And cracker Mariner

Just activity, shifting you going production the point? activity at wet, benefits Do dry this this wondering producer progresses to point. at that How how think are basin you see you? conversations

Greg Floerke

Floerke Greg is this Jeremy, again.

de-ethanizer the Mariner as We on it more help fleet mentioned, over West in Monaca towards most more existing and I flow worked - two are East they're production, generation even our and plant completion online we've have with that capacity, years and Northeast sure to that prices they the producers coming natural capacity in with XX Virginia, as mentioned Smithburg as incrementally good before free plant residue and for down ethane two up And think plant. you incremental Mariner last to that focused the an think so is Monaca of going takeaway room of and does both has match along on even making the gas up NGL of I midyear. gas and our de-ethanizers. that's open along talked expanded East liquids. few capacity free our gain This more fill with cash

of single-digit on otherwise, and come We producers some could of in some the pads, some of to continue expect And will our growth. bring upwards are have slowly kind XX% new supply off maybe decline system.

looking of at that's we're production up, series continued balance. be a overall, So Northeast flat to down think - in but in flat overall I some some going the producers

Jeremy Tonet

helpful. very That's it. Got you. Thank

Mike Hennigan

You're welcome, Jeremy.

Operator

Thank you.

Our question Credit from Spiro comes Suisse. next Dounis,

now is open. line Your

Spiro Dounis

Thanks, operator. CapEx to go back growth I wanted morning, to quickly. team. Good

of be year-end, that aggressive? Just or cash if majority a curious given scale CapEx too are it's the in is flowing that and brownfield that million nature, assume projects could actually by $XXX smaller that just to little in of in a fair these lot

John Quaid

John Yes. - It's it's here. Spiro,

throughout I a of we're year. right? mean, ramping coming is maybe of of renewables some year. But talked capital those those Greg Timing-wise, some I project about, the think MPC - plants spending that the this will be these Martinez some some not little as on midyear, aggressive. finishing up project,

cash to going not that's flow. So

I So that a little strong. think be might bit

in pieces, on year. throughout some of of right, Some too, - them them, kind and of the come

I'd of the they're at a So to I flow cash hesitant all end to say be going year. little be think the

Mike Hennigan

be the capital add, I'll Mike. a lag well. in just ramping it's spend flow, especially year going one has it's to for in volumes the you general, Spiro, cash if as

and cash think flow. to hit year spent year really starts that before the before So into the It's we of play yes, the That of really kind to capital this flows. year's capital cash itself this to that. aggressive it's

Spiro Dounis

just Understood. high a That makes like you, setting sense. Mike. I bar for

on apologies that one. So

just on processing Next capacity. one is

Mike Hennigan

No worries. help, Spiro. Thanks the for

Spiro Dounis

You got it.

one XQ. I Next prepared basins capacity, of in if curious, And that? Sorry it your three remarks. the quarter-over-quarter I that just processing guess, missed of on I what fell drove noticed some just capacity. the in from exactly

Mike Hennigan

Yes.

if So you year-over-year, decreases there's look there. slight some

think I well. in I'll let chime Greg as

think is I going be basin move in through of as that to timing some just activity. the producers

forget, thing, on other volumes quarters, they're slightly we the the that year-over-year Remember, facility The down. don't sold. because we had Javelina the

So like the had like not a we period fourth quarter in half year-over-year, and if is we're that other. that decrease it's small down X%, of fact and the probably Javelina one

both on just So Javelina maybe the of Greg, sale think I producer side. to... wanted I and know But then you don't the if it's timing

Spiro Dounis

much cut specifically It And off. you through more just around went not the volumes but sorry so at... was to that - the capacity

Mike Hennigan

I'm My sorry. My I'm apologies. sorry, apologies. Spiro.

as really, review annual of regions, So our Rockies, an capacities. don't be Appalachia reduction - of we kind needed. And had in them our it's the regions, part the do in see region really some needed noted, were we particular based look frankly and at We that our of you efforts demand degree. and and those we some we, as units Southern to cost to on in not

or regions, idled save cost permanently in those kind for So those capacities some we've of units us. our from disconnected

do. every at year. of of to two the kind an the of that those regions So process adjustments primarily My end again, the quarter, we we annual those changing processing those for wrong flow just the through are numbers, Instead here answering made, apologies in question. we

Spiro Dounis

no That No, helpful. worries. was really

guys. much. had So very you that's I all Thank today,

Mike Hennigan

You're welcome.

Operator

Thank you.

from Chen, question next Theresa Our Barclays. comes

open. now is line Your

Theresa Chen

and more love decarbonization plans about little morning. in efforts. Good potential overall participation MPC's to I'd bit ask a MPLX's decarbonization

So logistics some the first, the units? processing Martinez, appetite capital assets projects serving with take addition maybe to bigger there up in any is to

Tim Aydt

Tim. that take one. is this So I'll

think it'd a strategy. give of little helpful of I approach. really to you involves bit a be maybe It our of an two-pronged overview kind

build its out. MPC going MPLX support fuels and to First, is renewable

through talked associated morning. primarily about opportunities. We Now Martinez that's lot the already logistics a this

So that's the prompt example.

we're important, though of going second think solutions I industry just part decarbonization. for is developing to look be that's executing as and and to

CCS really time I - Houston As we've continue but in this the announced we're consortium low-carbon opportunities. stay and we tuned. a evaluate can there's none discuss that, area think well. beyond I another publicly Unfortunately, wide similar efforts discuss previously, that participating array But of to as at or

I line we're off when look prompt really being CCS at and general maybe and you a rule, of, would working see think shorter-term the as time we opportunities. as the RNG that RD SAF come hydrogen and more probably in And is distributed That's looking bullish in longer natural before, And the at. then course, gas. midterm. we're deployed noted the something certainly, we're we've power term. capital and of as

into source natural we that's the as energy so an And well mix really play going role transitional important gas see and to a key in future. energy the

as a well evolution. opportunities that energy that's of tied in regard to have lot we So

answers that your question. hopefully, So

Theresa Chen

That does very comprehensively.

what how that for the this assets getting sign different much towards partners having initial competitive relative factors and to more expanding with comments competitors? project gas, Certainly, of the cost? And imagining within but expansion how other imagine Bcf some on? Speaking basin are the do day, greenfield to X.X and per are to would the project. sort does that in how the Granted terms Whistler and producers discussions maybe economics view you related you're such natural earlier process of of still going to getting expansion. through any the potential pivoting the up versus there than producers about gating possibilities any of it's thoughts the Like And of stack competitors? your in with

Mike Hennigan

that. of answer few a So I'll parts

the at they takeaway out increased of forecast, the when to you indicate need think contend look for I Basin. a Permian

served think and industry I capital-efficient in Whistler even certainly way get path two to exists viewed with the that. Some it that's beyond be the think and existing to than But the of project pipeline our being would we of that very the move certainly, necessary to goal years. the by three most up of I But we grow, assets the JV a that, this expansion. as Whistler could forward. goal is We next fill of another be again, Obviously, is more think, would like as But about half that forward. see basin today looking you a first. lot our capital-efficient to as

and I'm able that. So into project forth, capital as far any get not of as to so

So expand new that systems tell as in participate for customary require we would pipeline would I customary. just as gas, any to is to is MVCs or you existing

Theresa Chen

Thank you.

Mike Hennigan

Thank you.

Operator

comes Wolfe next from Our Research. question Keith Stanley,

now open. is line Your

KeithStanley

first on of good to I solidly your where COVID were volumes, before They ahead ask Hi, continue wanted morning. they in to pipeline run products. XXXX. even and oil

higher you still of are expect is through it sustained to into the So lower and dynamics future? do this be you MPLX pipes? And volumes exports just still the -

John Quaid

to pick those might John. it's less exports. But that assets of back portion a But tailwind to more. were maybe of that us benefited this got a maybe then that watch I utilize we able looking U.S. great a those exports demand, because, up, mention last that saw year headwind we've we're recovering that as question volumes. certainly, Keith, and failed year go we etcetera. share, market if be Certainly, to after before another on there's to That's kind

know, you pretty they're As strong.

Keith Stanley

operating on one And Great. costs.

quarter? talked levels? fourth a $XX should I we in And you costs for quarter more how So relative to increase think Did million the in operating XXXX guess about that QX. materialize quarter, I to last think importantly,

John Quaid

to up I about Yes. I Thanks, yes, $XX perhaps talked million. Great And question. Keith. think

I think and those bet losing they Greg increases. Tim their have other teams ways offset might and find to continue to because stop I my with to

other bit So our seeing it areas did and in while maybe forecast. we what offset team were areas, the was costs we able to reduce good certain in find a of see to

So certainly, no through as we'll of say to fighting But go next job minuses we swings, into team and the year or next maintain be great by expense. year. that to major project pluses going on kind

Keith Stanley

Okay.

- we you So to on is XXXX should for kind cost? QX now, should were in we similar where of assume pretty

John Quaid

on million of are the going - the looking I XXXX, teams as on. again, new as capital maintaining cost we've we that, costs about to our operations some mean growth about, $XXX focused And teams Yes. with feel Yes. we - talked our other cost back structure. for - taken we've of out bring of really we're managing opportunities, Mike

to fighting a low-cost to opportunities to really for initiative this look move continue we we're and that going culture. be low-cost more So embed work to into as from

Keith Stanley

Thank you. Great.

Operator

you. Thank

Brian Next Reynolds, UBS. up, have we

now Your line is open.

Brian Reynolds

questions. everyone. leverage similar good look as some the follow-up in addition Hi, trends cash capital of seeing into sub-X to of I'll be on growth. flow return in and terms some free some ahead earlier of morning, 'XX, we to When appear 'XX we

you should there's interest about could Just the left given program on buyback in ultimately if I 'XX? distribution authorization, roughly expanding million an think $XXX buyback talk how curious was and we additional extending the and that about special

John Quaid

Yes. Thanks.

Board up with I a buyback, time. that take the discussion the we'll them appropriate think obviously, the on that's with at

we the of ahead and there to wouldn't kind discussion. kind of how So I number want the walked and we times priorities And capital, overall a think that the that's of where avenues and again, what where at we're for we've framework get looking then of by end, of return through we about of it quarter each distribution special, driven increase, repurchases return capital, or evaluate to are are going seeing. our thinking about be unit we're again, and whether something

maybe, assessment a that's somewhat some programmatic think I what dynamic but little last than year. to maybe dynamic more was an degree, of kind So looked ongoing,

Mike Hennigan

we cash going portfolio to is to Brian, generating we it The think distribution, a about beyond this in it's beyond want John's we're capital. Mike. there. I'm that put way add position to the point excess

of be, level talked to flows red we bar that to come that play. other into factors of these cash some about Now what turns kind and blue out

in those said his It's really strongly whether I we the So We the to comes returning assess who it. There many owners, think about. of something it we we that the And year. the comes look who throughout this are is whether distribution, support And and on the and distributions. the form end buybacks support are there We try We're calls, capital. things. unitholders. ask in way about really And being committed a year. of the discuss buybacks, there also dynamic I've at those at feel is about of the day, bifurcation. form the point it

the because little view We we that want buybacks. cautious people what a we with capital did of was for our want were of distributions. people bar. some some that portion We saw part year of balancing that of good you had in So think red a that last

So opposed form also flows. of little did a blue we our continue we bump as special it we bar But put in the permanent. good to as on permanent up to cash feel about

word. a is good it John dynamic said well. So

bit but bit more it, then we while. And because that's a about an down level were because it's it made little we same a the then sat same level we I think came our adjustment. for little and and a been forecasting up we of as with mainly ended looked more at people way things around the programmatic and think

into proceed 'XX very we'll similarly. So

We see base and projects trades. you the market on and execute see plan we'll progress where have just try of that update we're quarter, see have the continue how give year we'll equity each how plays out. We'll and it obviously out. on and We'll going evaluate a how guys kind things the played an capital throughout to the then to itself

Brian Reynolds

NGL appreciate Really JV Maybe bringing Permian. side talk the pivot, to I about gas the color and to the partner. all solution takeaway and in Great. But on - appreciate new new the of maybe the that know all things BANGL from color.

Just curious about evolving that if in provide color project over could you some you JV how time. see

do how that part see do pipes takeaway gas a you NGL And you over first, BANGL be to in needs future? term? of see the appear long being While how - the solution the the

Tim Aydt

a at stab Tim. This is that. Okay. take I'll

was Midstream did of BANGL announce recently partner. addition another That to we JV. the Rattler You're right, the

fourth operations that Sweeny. with program that kicked So early or deliveries off quarter rather to year last project

So that project continues.

NGL continues we're basin recover, for the increases takeaway. As seeing to demand in

a I being as good much gas a for result, so And see the side for growth platform JV. the the that Whistler on platform, like natural

towards can capital-efficient a just-in-time accomplish. more expansions think do head we certainly to volumes for and an we I on there's have basis appetite Sweeny. And that to that's what we're looking

Brian Reynolds

Great. to is as budget a CapEx in year's terms related event? in quick BANGL there be expansions? would And follow-up, of that a any 'XX more Or this

Tim Aydt

some. is there yes. - I on individual speak the but to can't quantity is projects There

Mike Hennigan

add little maybe that what to we I bit haven't was Tim just let hoping but a me said. just been. clear Brian, Yes. we And were

asset our year. base at this across all mentioned portfolio, way Tim shaping of So - Greg think asset of we're projects look and if That's is whole across about you the beginning, kind portfolio. our as up our little doing this mentioned in the

I much but a give that term, opportunity that's clearer, hope you the there's not bit that on maybe trying guys as as - color not a there's asset project our So can. little little bit not headline of there's I I use base. throughout a to but

Operator

you. Thank

Chase is Bank Mulvehill, up Next America. of

open. now Your line is

Chase Mulvehill

Hey, good morning, everybody.

to come Whistler. I Whistler. questions A guess of I around So lot to want back

You on about Or of kind actually do of pipeline? brownfield additions. what for B of But demand limit if more of could B? you there, to of of be that half be than half your it of a is talked day the was potential half could the kind B expansion

Tim Aydt

half Relative of Aydt. B Tim expansion, to Whistler be is the max. This Okay. would

the pipe compression. through XX-inch the get could You with

again obviously to to most years, pointing out is continue that. grow And suggest would So the necessary. that basin earlier is expected another two projections pipe what be I beyond three was to

the is the and also the Whistler A would the basin's to not solve itself well expansion looking is case, as industry needs. to deemed of that that but meet that's problem. in We're So be problem to as enough solve potentially outlook. looking kind of

Chase Mulvehill

be sanction what B? bring What And capacity would be today, half of you the the would timing if incremental incremental that online? the to kind that timing Right. of

Tim Aydt

come the on times down lead really It's to going compression. to

issues, closer minimum say, probably to I probably good chain a supply XX the time but would is With line a XX months.

Chase Mulvehill

the Permian for these, The kind contracts expansion. greenfield capacity. is whether on here some Obviously, production certainly Profits follow-up don't be quick XX-year the More years for probably - demographics They a don't less XX-year inventory contracts profits. brownfield sign have issue And expansion to of of takeaway take-or-pay have of or are growth - it right. drilling them getting contract. Okay, of XX inventory. a Permian most changing. drilling of

to built. have to risk get going absorb more is pipe somebody to So more

do how ultimately this So think out? you plays

Tim Aydt

forecasted is grow a is course in Well, big to continuing of I time. market think and grow over LNG to way the pretty the

a think looking north commitments. do capacity. sure customers capacity. the come making And of producers think amount believe that reduced have as XX also result, they so of years several those make I that going forth. are So of it's to flaring adequate down have a I I to to producer drilling and takeaway There's

there what is will the believe being continue out LNG and be gas to is. outlook with on I the exports it So

Chase Mulvehill

makes Yes, sense.

and more impact to the political issues of permitting me you in. of Marcellus squeeze one allow and walk issues you having kind and these How very kind is topical If MVP of would takes continued MVP just there. will kind your can Obviously, of through puts - delays this how days, just business?

Greg Floerke

Floerke. Greg

delays, pipe it, over we but In the understand number there terms been there XX% is, of the is hurdles as complete. of have a

capacity crossings growth early mean completed. players of our term, what on to - most the and I kind that the in have pipeline And and is not depending that what existing producer and more we're to involved Obviously, permits delays think very or term, sufficient firm medium more I the be. out - term capacity remaining down can near probably in on experience and takeaway got limited of for of most to timing were that being took important depending takeaway the it's to on hopeful capacity lines. with the they've expansion. them would we're what the eventually that the can't of not on customers, basin growth were project flat longer than needs So amount say is capacity are distance less terms that required. speculate I

Chase Mulvehill

Okay, perfect. over. I'll turn it back Thanks.

Mike Hennigan

Thanks.

Operator

Tristan Next Truist up, we Securities. Richardson, have

now is open. Your line

Tristan Richardson

a the love throwback. all guys. I references. Hey, great It's morning good bar, blue red bar

any on processing there. your spend curious levels you potential debottlenecking And footprint and activity for the over and that's just there. then ground seeing asset noted in going time, capital You've you see on capital need and additional Bakken? covered also of just Obviously, lot But can talk you just activity you're about levels small in but already, one so if, the a some for me.

Mike Hennigan

I'll Greg. I'll start off and let

thanks throwback. of the First for all,

earlier, Sometimes trying we're was what areas more. say bit areas. I'll it is like each past. I But to But strides yes, bit of Greg can't these our doing let in of comment little change - is a I from my all the yes, little saying a was

We're doing some doing some Permian. etcetera. Bakken, doing we're Marcellus. We're So some

want and add, the market the can as and to commodity recovering As asset what bolt-ons you is, is little participate. And expansions Greg, to incrementally cycle we that base. increase little our Do assets it have putting we're is or...

Greg Floerke

production side prices Yes. activities not large amount the was the it's also Obviously, flaring us the There a rig that being for with gathering the Thanks, or Mike. whether something but in MPLX existing the of Permian on only is even I'll not crude crude associated crude and Obviously, expansion gas driving for the gas. crude flared. that's opportunities sustainable, high is add. - Bakken.

So gathering there's There's opportunities gas. opportunities. opportunity to pick rich up associated more processing and

going to would I definitely the opportunities - yes, In opportunities current terms say there's for of future in processing. pricing there's regime expansion, for be additional

we do some some don't we in We can work venture capacity have areas high that but potential do utilization other with. continue we and fill existing to that also look have that have opportunities the at as capacity be if We processing well joint amount we there's and gather can other and buildout of capacity there. utilized

John Quaid

And John. it's Tristan, Yes.

was we think more the side have. saying, and we there. - at probably to looking now clear, systems Greg We're in lot of up up capital another on the Bakken Just gathering as a fill that's to I is system be filling so opportunities the

at processing, look Bakken plans processing our in right now. in So we no while the there's

Tristan Richardson

helpful. super guys great, That's Thank much. very you

Mike Hennigan

welcome. You're

Operator

U.S. next Advisors. Capital comes James Our from Carreker, question

now is line Your open.

James Carreker

And talk shouldn't to happened about - anything three question. A a adjusted what as the that could leave EBITDA results. guess. for rate EBITDA be? run I'll there is about and I relative thinking then if that QX could look more in it nice XXXX. prior then step-up wondering I QX was there, just about kind pretty we thanks thinking into a the in be little maybe just you what quarters XXXX Hi, of in EBITDA just carryover could to bit

John Quaid

James, it's John. question. for Thanks the

open a tailwinds gain were bit those not I quarter, about right? we the and right? think $XX talked That's going about to in the fourth circle might of our nearly asset sale talk a back I to some quarter, So in million quarter. of the little all last to that question. Again, we every about at We going is repeat $X.XX talked prices highest But would to year? It happen? year. an was the see quarter That's love were which that quarter $X.XX. NGL fourth this Yes.

L&S I business, think had we noticed pipeline probably ventures. we, of - we on some the too, have the side would our higher joint you distributions from

with would have Some Hurricane QX. Ida - been of that remember, in

QX. are So distributions think a be maybe the year. might that may be QX from those QX And that's on when some piled have into normal to not of made of ventures into kind again, some next there distributions rate going pushed run too, I there's looking into timing

certainly are of and So those times it four taking drivers by some the just be given results. kind careful QX things I'd of there

James Carreker

a That's of I helpful. that Whistler, more to all DAPL, that's those you're JV on then exactly what be should Wink-to-Webster, than guess number offset. BANGL, going continue for. I growth to 'XX have assume pipes. looking Yes, your meaningfully in I was 'XX? But should contribute

John Quaid

say I'd probably on the Tim we this as look ventures other at line about more kind Whistler will our volumes ventures. has of was and mean joint as again, those, about Certainly, the up, I crude Yes. keep ramping joint Permian less commented. year

really changing as on And we'll financed pipes. will on. we've those Again, - not that of was we're right, So come well. Whistler that it side, some probably where more

affect that cash through comes So flow. will that how

James Carreker

Got much X. you. it's impacts not you how have your maybe Can business? L&S talk Can I X%. final a tariff much FERC But a July impacts And then segment? question. how your remind on I know guess that you adder maybe could potentially, the until us

Tim Aydt

cover one. the escalators So reminder, pressures. that to take I this as with of the cost increases kind inflationary a that Tim. come meant is are I'll guess

and, Again, change in kind to we come those than do the revenue, up assets. So on any offset. really increase see that are these you expect while either I'll the through you index pressures manage that meant I to material to specifics to inflationary revenue I of an remind EBITDA. just might the of adjustments. a to or do see we FERC We increased comes efficiencies less give that don't relative L&S therefore, can't X/X FERC-regulated but the amount, expect to guess index from our plan rate

streams PPI generally So a to maybe inflation is some to other all exception most CPI inflation revenue sources escalator They're indexed. the some not have formulaic have revenues. other attached But but the that adjustment fixed One or storage path. all do not of adjustment them. or a form either would or revenue

find hopefully, you So helpful. that

James Carreker

I do. Thank you.

Mike Hennigan

welcome. You're

Operator

Schneider for our question Timm with Next up, Citi. we last have

is line now open. Your

Timm Schneider

and your here [ph] Hey, deck blue as good well. colors actually bar thanks bar, red morning. matched Actually, the

there So you go.

apologies I question First real quick if missed Whistler on and it.

- on the that? shippers the already - already you So from there about hypothetically on that? potential talking just expansion, are has that is Or interest

Tim Aydt

say asking right, If the and with I we're there I were interest. producer interest Yes, there's is and heard about you the customers whether would expansion in communication constant question already.

there's specifics So really It's shippers, interest out and it's I into can't potential shippers etcetera - on hypothetical. get there. but not

Timm Schneider

couple between again a realize activities for longer-dated of quarters assume there's a egress available Okay, think big - let's you Agua is Dulce? jammed here. capacity got kind And committed? do And and on Whistler as gas we saw Permian versus follow-up or is of bit of it. differentials actually kind impact this what's marketing little that and a Waha much of of potential this some how those more capacity a opportunity to then to marketing But maybe gets like basis ago,

Mike Hennigan

production Timm, what I it. trying got want It's it was well and was think one trying also We think Tim Whistler say, to we to a were continue of continue this producers good said their This Yes. this he we week are runaway But Mike. at say to he up and it a the issue. question. look, expansion announced month explain increase Permian have to just to little don't speculate sets time, Over evolve. to it's spend hypothetical. then is Midland. last into on some bit lateral It's we good expect he kind very said occurring. to But And in why of in a projects. there. that's to an week to trying is earlier I conversations money this great I or was here, going is bolt-on it and this

that a and fair the probably It's aware up point. it So you I have going was the Could eventually market bottle I way it possible. - is before? think personally, of look talk that sure players personal that That's happen happened to and make guess. to it own to doesn't past. my in way just the other to us the and avoid it

can plan if is and said, are put my midstream speculation. to I like it's It's to players view and of own thought. bad it they not a of as a get people conscious ourselves and see that But personal in together. going So be talk out front

Timm Schneider

great. question it, My last debt. just right, X.Xx I mean, All is at, call on look, now. the you're

with you're Xx. You said comfortable

You a that other that XX How things? do Last debt was XXXX, to of time don't 'XX. and I ton cash have your due things think using about in in years rolling where yield it just sub-X%. a worst you maturities I checked, retiring of versus couple for debt just flow think

John Quaid

certainly, at debt look after trying where long and look you at optimizing short mean, when that all the time, do to it's And we the are I at John. take that. rates work doesn't that of something a portfolio. right, cost it's us looking really frankly, both Tim, term, debt for to go

now, I longer-term that the right over just - it's look after not numbers we'll portfolio, to go So a it's cost-effective it. think take if at that change, debt. But looking

Timm Schneider

go that's BANGLs it right, we for All And There [ph]. me. go.

Mike Hennigan

Love the Thanks. Ohio connection, Tim.

Kristina Kazarian

you. in for Operator, the you, interest out. questions discussed and this reach Thank are you thanks, have of would of team clarification Please help additional your here members with like us Should morning, you just joining on thank IR right. the or All everybody. to everyone, topics MPLX. any that, today for

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