- Earnings call transcript Q3 2022

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Operator

Welcome to the MPLX Third Quarter 2022 Earnings Call. My name is Sheila and I will be your operator for today's call. At this time, all participants are in a listen [Audio Gap].

Kristina Kazarian

Good morning, and welcome to the MPLX third quarter 2022 earnings conference call. The slides that accompany this call can be found on our website at mplx.com, under the Investor tab.

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

Mike Hennigan

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

also First over will President He as will Logistics expanded in the over Lyon has Most roles our of off, to President new experience and Senior our Shawn with organization. of downstream Development a leadership years Dave recently be has calls XX Shawn midstream. Dave's across of Strategy was focus our Marathon has joining role as of be been and our Shawn include company. Vice Heppner calls. Senior years Business experience of Vice and joining and XX midstream Pipeline. on engineering Storage. President

business first capital of recent distribution today completed strength year. the the base results Earlier increase nine the on the from Now $X.X our results These million to and of cash of Based third both of performance the of our growth quarter represent billion a announced the and unit updates. of X% to MPLX today, flows, distributable flow third we $XXX billion, investments. XX% which last year. of adjusted and our addition months turning repurchases growth a and cash EBITDA record reported $X.X quarter from our highlight increase the through businesses in of partnership's continued in

which and has in demand. progressing processing day. generating X.X although capacity focus with we segment, fully the other plant, we this this and growing per been basins In supporting return we to the plant segment, to per day operations laterals on the Smithburg to growth II are Christi We're of third continue been flow. and Permian. In as first X to quarter Basin gas with the began our our expect And then it gas partners, the strategy long XXXX. increasing processing haul gathering of several return feet cubic line in-basin and Marcellus, a year. well bringing In pipelines our XXXX, pipeline we expand the the as we Whistler's by of online the our feet processing crude along the are the to will of Permian, and the capacity all gas advanced organic expansion capital L&S G&P business. continue In projects. mainly with Whistler positive in natural of for middle Tornado billion by driven has Marcellus interest our feet progressing per be through de-ethanizer additional a Preakness ramping is online the in expected as growth quarter, this billion natural come and come our half We Working natural remains next X.X high, expect ramping cubic million Permian markets, to total facility Permian cash with production, Basin, online our cubic into quarter year-end continue view the Corpus Permian to Midland day, in XXX

X.X acquire flows continue structure will will questions units. partnership's Switching to which of MPLX the is whether are II growing on support Creek additions in in processing to expected processing half portfolio. II bringing cash and XXXX, We total asset plant, the received billion Harmon MPC Harmon progressing These Marcellus our of the to online topics, come outstanding first Creek day. per our public cubic -- feet we've capacity

restate past. to said want the what we in So we've

public $XX with demonstrate MPLX a grown substantially entity of strategic receive billion MPLX float we've earnings continued MPC's MPC is the approximately expects an distributions distribution MPLX portfolio. billion, has part which recent into to from of growth, larger. to First, increased announced annually. of is a with MLP compared roll-ups $X today, to MPLX

of shareholders does current expect MPLX As plan opportunities, will we capital to not that optimal its roll-up MPC allocation its continue its to relationship growth priorities pursues believes and value the MPC this enhanced. be are MPLX. strategic for

our to optimizing a cash of fostering strict we flows, of asset remain priorities quarter, stakeholders. making creates ESG and both culture commitments and in executing value strategic perspectives of Shifting meeting We're continue for sustainability and to climate-related Slide disclosures our on X. energy with scenarios shared the we annual grow enhanced our that on portfolio. targets investing we diverse the in challenging publication As sustainable Last and our future low-cost an all while the discipline, by discussed needs progress reports. lead capital June energy also today, ourselves focused to on our

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

John Quaid

expenses higher by were MPC's X%, quarter volumes the fuel due at primarily million and including X while the second financial quarter refineries, utilization XXXX. quarter power results to segment. when increased Pipeline compared are up to costs. higher were third partially Thanks, operational higher Storage outlines throughput project costs, and due by performance several product L&S X%, of down segment primarily terminal rates EBITDA and tariff Logistics and adjusted XXXX sale our offset increased increased The to pipeline Slide highlights Mike. terminals. for and driven volumes light primarily $XX third

tariff quarter. third expected, have our increased pipeline would in you the rates As

you to will note year-over-year. of lower due our the throughputs, mix changes average were in rates reported However,

the segment benefited higher quarter Gathered primarily operations. gathering also XX% Slide the and in lower In slightly increased increased activity processing were from EBITDA Moving NGL to processing increased of with and volumes, to to up Utica were in increased XXXX, production we volumes half which in for Processing the prior segment due for quarter and average volumes while Permian our $X.XX Southwest, third primarily higher year-over-year, volumes did year. operating regions. Gathering Southwest up to adjusted line Marcellus, the gallon NGL year-over-year, million volumes fractionation offset in year-over-year and year. our Processing producer increases increased X. see gathering, than our $XX on prices higher compared X% G&P due costs, the by prices were the includes sequential volumes back the with expectations per

$XXX $X.X cash X. prior also the highlights of record to to third in both Moving public. returned financial and Total billion flow of which EBITDA million results, represent common by billion, increased of year. We X% quarter of Slide unitholders repurchases $XXX from distributions units of on both $X.X quarterly adjusted million and our million distributable held $XXX through the

XX, our over available remaining under $X repurchase As had of just billion authorizations. September unit we

our XX% As based per X.X to in Mike strong coverage maintaining times. we unit, $X.XXX discussed, business, the base common on of distribution while confidence by increased the

and approximately ended in XX-year During and quarter, net issued a the billion redeem X.X expect low-cost times. near-term unitholders. and to capital strict We the financial and of capital March debt-to-EBITDA of while XXXX. total continue MPLX closing, comfortably the given We ratio times, our flow, and were of refinanced of that year we've invest notes to cash proceeds of senior continued In enhancing of commitment to also our generating we $XX leverage quarter with culture, our notes to four flexibility this return the below debt business, December discipline of our due target adoption a strong to grow maturities. $X supporting of the used notes billion

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

Kristina Kazarian

Thanks, John.

one the We may as plus one yourself questions? Session time re-prompt we questions, for Sheila, with With you that As we you help for additional open follow-up. Question-and-Answer limit permits. call that, ask us would question to questions

Operator

Absolutely. Thank you.

come [Operator session. with question-and-answer Brian Our Reynolds the Instructions] from will begin now will first UBS. question We

Kristina Kazarian

Hi, there mind asked, is being question Brian? re-prompting, Would Sheila. can't we you If hear. a

Operator

feature able this hear Reynolds conference, if questions time. We're to you phone. take UBS able your at on not Brian, un-mute the please to we're in your Brian with you

Kristina Kazarian

to want queue? callers to Shelia, in next do the you move the

Brian Reynolds

Oh, sorry, sorry on on I was I mute. – was

Kristina Kazarian

hear you. No, Brian. Good no to worries,

Brian Reynolds

read about positive recent great Good Sorry Mike, your Hi. And to that. morning, it's update. everyone. about

Mike Hennigan

Thank you, Brian.

Brian Reynolds

process, on below permanence, how particularly versus about of around continuance we should the buybacks ultimate to leverage allocation given think that about the the special, the we going target? target capital leverage be should times how distribution well rates that think to First start-off And forward? looks four

John Quaid

in jump it's then Hey, can with that good as Mike morning, I'll well. Brian, John. start and

of about records really by driven both first cash, confidence the the our at and on billion comments, our in business and million flows. all, we it's of our talking $X.X capital adjusted year-to-date. business of distribution. EBITDA to our and in distributable $XXX excess cash DCF, said as the So also our distribution the continues Quarterly strength generate flow cash and of running about year-to-date in Look,

So all leverage point of coverage a and X.X after of of well, sheet gets X.X kind us to distribution. at with this that we're of looking as a balance strong maintaining times the

look So the changed, as allocation and want are. we -- the at to to optimize we our right? of and ensure we safety that the business We grow then hasn't continue around look capital. our capital overall well distribution, rate our where to business return And assets,

pace. return return continue we right? carrying want well, with we too, that at cash We that right? there's the capital, but dynamic, to It's you the to buybacks. don't for our as did but overall, of million capital, which an confident repurchases about opportunistic on the strength to comfort seen sheet a certainly, the I maybe know but pace on, in if balance of of partly you've So us to avenue necessarily think this quarter-to-quarter. I business, us be about be opportunities some know from certainly will drives we'll that increase, is as quarter, asked look $XXX other XX%

I hasn't changed. our So think framework

the I see that to see about continue unit supplemental, year, just our probably that to calling use via distribution, look, going since you but a asked capital we're think as continue certainly tool to actually once year. remains can doing a forward. something us is look optimize to the dynamic this it, special, go We'll think that in We'll of approval going while that to us And right? us at the about now be available we repurchases. around you'll return we're subject forward, we We Board's how that. And not

to of levers, capital. to lots work return we're So that of around trying and that optimize

Mike Hennigan

Hey, Brian, it's Mike.

a comments. just me couple Let add of

an into to put to the us have to cash the that have in than At said a Growing little this partnership. the different At MPLX but corp, the is market First C time, MPC, At off, way. and are flows of we're earnings to the is get we way MPC. us going distributions tax debate MPLX return. situation we are grow times position an the best key -- preferred couple for that about distributions efficient, good continuing to we for which at the show of bit we've before above all the approach. how different a return capital, what's it's a are a same

started we've around little we $XX somewhere since executed program, unit. a the So a buyback under

whether But John we more are not the tricky. year, these the blue permanent, feel Last some conditions, was a going we're that's you and says, of as starts try very dynamic. look Right it of calls to market it, inside makes and my way way term confident the helps describe confident because all we used we lot thinking but debated in it to the generating we the best what's of increase permanent, with I return to way bar describe So bar or We conditions, the and all the that above, the about then flows. as to cash be little said as cash permanent use flows we've one as the still hope distributions. bit. And the increase so to partnership debating John sense. market red we at them, best and growing a said, the is as a we're other. lean and given that now, I may little flow, because capital. cash

see we As allow market buy going us units, to back do we're the that well. conditions to as

a the but is really where little around I little know you we So with hard been do people Brian. bit, helps, time flows. bounced to gives hopefully, to at the understand hope and market it's I it's flavor. about for since how feel it the a more has that that cash

Brian Reynolds

Could for as there opportunities that's more these general helpful, a you just I around the No, maybe extra opportunities? Marathon little and appreciate there. carbon low depth I the super appreciate quarter change MPLX and the between that supporting Thanks. pure just Midwest. Kind remarks things? potential bit a the a Maybe family. as has remarks IRA in in about follow-up, talk how cetera? refiner something pipeline maybe does the the Is in a changed also what participating in MPC, And et prior quarters, carbon participate of this that could is

Mike Hennigan

good another really it's question. Brian,

Let capital, at a me think shot let Dave we investing how take cetera. et about

Dave Heppner

This appreciate is Hey Dave. question. the Brian, I

a that So, energy couple look at relative impact lot MPC of IRA the some evolution. before make you MPLX, of decisions. things that say and we country will to those IRA, needs numerous the fruition to as stated being the Still there's will clarification industry to low-carbon footprint as we and of you can pretty would that. evolves a are I driven between of in forward-looking lot expect early, and a evaluate recent relative the have come in to as with as And the opportunities we announcement them strategic opportunities. the the

return Second on, you is, -- touched or business those other in the for enterprise. MPLX, as capital. for leave And that the achieve if I'll in our wouldn't proceed we can Thank between it's this a base about whether on which that more all on alternatives evolution, with those projects. low-carbon with this you along those we for all our versus you. lot capital, capital the chain, energy return opportunities growth integration opportunities overall value of these viable there's make opportunities and But be MPC

Brian Reynolds

Great. appreciate color. I really the

Sorry day. about great of Mike. doing Have your really a hiccup, you great better, mute, and hear the rest to

Mike Hennigan

Thanks again, Brian. Appreciate it.

Operator

Thank you.

Our question with from come Goldman will next Mackay John Sachs.

Your line is open.

John Mackay

from Utica about how I'll time. you side, in gains what on the everyone. recent basin about particularly, a talk given share little something that going some don't really say, constrained? seen think of kind there, out We've volumes I or Hey whether are you're Just bit the volumes know, from others? Northeast Good the Maybe still operating can just others I results for not -- since the was, mixed overall think Thanks these a strong. we morning. do something or record are little Northeast, XXXX sustainable, forward whether you're taking seeing do let's

Greg Floerke

growth customers. Marcellus but are distributed John, take question. this Greg, the room is I'll there. certain processing utilization around And high, is there that gas Utica The our the Northeast, facilities for and the remains across

quarter. we may plant so one actually be Creek announced X of full example and we're that, And Harmon which at expanding. last is a good we

growth So, lines Northeast have for NGL is, and we're Other still flat actually good expanding And to -- there. well be growth. do in a are more more on prices as continue room certain The as we growth. is for that supportive potentially the decline production makes there. it gas bit, or think plants news for sustainable remain takeaway it's room the residue elsewhere as NGL producers lines and

general, So, we in remain bullish.

activity the Utica and side. side a anticipate on growth rich gathering area. We We future. and are gas the the on there lot process of in see growth in the seeing also more

John Mackay

you turning could for Matterhorn And Maybe an incremental follow-up, your like? the update Thanks Thanks. looking position just of Whistler just supposed going on us on quarter. that extension? then update if to Permian. you that. I come as think out maybe online basin? allow us what to give to Is this the that's egress a is in give Can an

Shawn Lyon

Shawn. out Permian. gas that. really about takeaway take position of the excited is this John, Hey, We're our I'll for

original matched to will expectations from the of As we've there. Waha before, and capacity, We've us Waha capacity Agua that we've widen then at Dulce takeaway on we've in Whistler, really online near for differentials expansion help as for we've to it's announced that and again seen the expand Houston. seen had that an had come will -- September XXXX, that gas the and

Martin coming called go in to excited liquid will in had that end that we one some the the Cheniere County with there. we have have in partnership we're laterals the on we coming in our coast one to faction again, about lateral Whistler. the on really As prepared facility And remarks,

of participate we take it the earlier where help So moving there. Matterhorn, there. that gas announced decided Kind in that's will stand and have to And Matterhorn. to away we again, we

Mike Hennigan

We've was the don't to bring think to volume going want X% volume our on indication driven really I right? of a just there. to driven we Yes, by just you the project. just were some Matterhorn, of that's It's Again, in. able producer I to the project, got to right? remind interest we're in the able confidence folks by bring

you point, project, we for question, XX%, may which one X% in at were well. on been pushing at So bit but have your is a out were we're as recalling coming we that

John Mackay

time Thanks All Appreciate a today. right. the lot.

Mike Hennigan

Thanks, John

Operator

you. Thank

with will from question next James. Our Justin Raymond come Jenkins

Your open. line is

Justin Jenkins

everyone. echo your morning, update. health to That's great see. Brian's Good Thanks. to Mike, I want comments on

Mike Hennigan

Appreciate it. Thanks, Justin.

Justin Jenkins

I if you upside in my part and first lower – you were came the that on But year-over-year your quarter that guess than can just mentioned up here? of the ask item maybe in into in been remarks. your project I costs question have John, XQ the itself quarter outlook in fourth line and expected

John Quaid

projects Justin, Good the up and managing for Yes, team for do the just continues looking outstanding still Yes. an to efficiencies. question. risk while job year-over-year, morning, of and thanks managing

other that is quarter were or talk in the the They of kind a to seen of ramp we driven off program. lowest expecting. up, the ratable things we in And did and the programs So never good maintenance we projects kind of going to these again, be one we less came quarter-by-quarter-by-quarter. weather These about first the And sequential timing of larger of then just probably bit do. changes to quarters the really are -- guiding right? either had is probably typically than are we've been total,

say, those So up still sequentially, some would of job yes, But I quarter. managing last expected we year-over-year. that good expenses, would the a really we versus of is what have driving variance probably did probably

Justin Jenkins

And starting a become John, That's that $XX four now. coincidental, for here? or to a billion I Okay. it we $XX as well. to helpful. of while in been guess, turn the you range of is one that for should into billion leverage gross we've think second target And starting to the to my I related On Is level a like target debt, seems just think more ceiling, maybe? times

John Quaid

Great question, Justin.

So $XX.X guidepost. where we've debt of yes. I because with comfortable it our and mean the kind our is times just been of kind four of million we've gross been leverage under has been,

So year would that. out see notes to expect maturities. to earlier seen twice us I And upcoming you've do issue go refinance continue new us this and to you'd

next time. a we've look Looking year, that out to July maturity right to at address $X about got we'll the of billion

We a February, would and B maybe offer Series we to too, just units. morning be They're some well, just X.X%. also of up a fixed which, -- they moved floating have now. I'll rate as But this in preferred rate this as at

be something look we'll will to that So address as well.

not radar our well. got that that's we've notes. Now on because as the just But is that's the senior $XX.X million, in XX.X% something

the see comfortable paying as financial those. see leverage, down us think I us we don't to to continue continue I us think but refinance you'll about you'll see the you'll with provide business, some debt. us flexibility running So think to be

Mike Hennigan

want the said through it's partnership. Justin, program business models obviously, distributions need to our to the have cash is we with our earlier to And, capital want generated what support I access. Mike. flow we add and just I

some bouncing in been up. reason increased to earnings the has we level. because level same come gone your debt is main our around So down the that have leverage it's haven't quite point, The time

have and going to generate for distribution our that continue up, our run constant way that. the to cash leverage what's look So debt is a our excess. at in self-sustain enough partnership down driving we But for program, relatively capital earnings flows such us numbers that's the a we'll and key

So hope we obviously increase program that helps. a levels. have not I and good debt return our

Justin Jenkins

all. Thanks Perfect. Yeah.

Operator

you. Thank

will from Blum question next Fargo. come Wells Michael with Our

Your line is open.

Michael Blum

everyone. Thanks. Good morning,

MPLX? for me. if Northeast. ones I'm opportunities that I'm you've investment sure diesel are seen prices quick the two potential spiking One, in for Just just curious And presents really any

Mike Hennigan

take do want one? that to Dave, you

Dave Heppner

things market with Yeah, on far earlier, touched achieve that keep back long-term a in Michael. and is these those no opportunities and to point there's long-term the pop commercial the and as keeping bit. Hey, getting return changes on to logistics on Sure. investments stated quite an have of the we we for long-term. be MPLX, expensive as capital that. earlier, And a those we're the look to up -- But it's again, I key footprint a return as eye everything at investment MPC about mind justify of question sure opportunities investment I and a can acceptable all and to fundamental capital making on couple

Michael Blum

pretty I could wanted guys dynamics you Thanks you Thanks. coming how the the Great. you I change shell Northeast? service then to that have for And that. operation in wonder into ask, if in And for might marketing NGL here, Northeast. just the speak extensive marketing, soon cracker to

Greg Floerke

to up Michael, Shells and Greg. the Yeah, question that quarter. question. commission third Monaca is We're answer late start to in that excited to see cracker ramp address or ethane this glad

calls, expect producers, the and plant. we recover supply flow before our As I've previous into of to through supply to in mentioned that XX% XX%

growth -- of in de-ethanizer a me, now terms to supporting our Smithburg online So -- it's recovery Smithburg that. ethane excuse that's or fully driving is

Northeast as ethane the and we ultimately, continues we or of Shell. driven the recover up. user ramp arrangements But growth plant do that yes, producers. we that But end So we ethane with in the this amount the by see terms is case, -- to recovery in have recover the in of where the producers

Mike Hennigan

to some mentioned, say it's still you short-term, going In like the the to And up start Marcellus. just ethane Mike. just us Shell been very constrained, processing add, plant. I little has a heard gas we're want earlier, Greg to the out, going another pull Michael, bullish we're but as so is

the it's execute an for great in the So Obviously, will we part the important still strategies a supply gas it long-term. low-cost a as resource up long-term, Northeast, over be natural It's US producers a think in Marcellus constraints to the happen, and some resource. good the overall, different their process. bullish of of that a or pipelines be. place out. think it's But that is to on that others we're whether pretty sorted We need get will MVP are still

We Greg you strong mentioned, about position, the have and a has as past. in talked

it's our we think grow. to positioning So like to we believe and We good going there. area, a continue it's

Michael Blum

Thank you. Appreciate it.

Mike Hennigan

You're welcome.

Operator

Thank you.

Our next question will come from Theresa Chen with Barclays.

Your line open. is

Theresa Chen

everyone. coming I Mike, third is in great expansion ask to again morning Good first to want it your hear the quarter year. on the next voice. online Whistler of

or So is of during capability ramp And sort initial it or period, that contract immediate? you to be for initially, third-party be of in to set involving the will start-up? have customers, any sort initial this any the completely will would that be and going any the belong of period marketing

Shawn Lyon

expansion the think Hey, expectations interest be Permian very there. expectations expect in be the seen fill were. what with the we seen on of We differentials to And again, or our high. the that Theresa, is between we've coming out along it, We've basically Shawn. up fairly capacity quickly at exceed going this that's our to based

Mike Hennigan

Hey, thank of for Theresa, help. it's say, you words I'll the on Mike. first my all, kind

in market goes, we that, we transporters as that producers and players the The the not of do area. are far marketing are it. in As the

area part ramp at day, profile, trying grow. of growth we be the of away continuing excited the business to very believe will end the the of that quickly. pretty take Shawn to Shawn We're as as mentioned. said, needs it is And So to we're

Theresa Chen

as facility it Got will of in on your online, pull to just it. I'm to as now utilization these in globally And comes curtailments of chem the in the dynamics that existing light across utilization in and have problematic system as plants pet relation netbacks? curious of ethane a view right challenging dynamics result [indiscernible] the your and recovery the

Greg Floerke

gas obviously, is in as The impact petrochemical a ethane. we thing companies I This is to a that that versus ultimately, residue has the an reject the made Shell. the commitments supply determined price recover that. prices And again. ethane big on downstream region Greg were mentioned ethane or and producers for companies But prior whether like impact has before, other

that's So seven when that we'll continue on for more, expectation were FID true recover There's Gulf that of phase. And the years Coast, plant. an the or Monaca or ethane commitments made it's other connection. the Europe to, five, plant crackers to to CX Marcus whether downstream our markets ago six, delivers the pipeline was based Hook a Canada in to supply, example, that through

would expect the de-ethanizer Smithburg barrels over with day a XXX,XXX now with we in So our region. online

our climb of we – there. have an We capacity. in utilization see have We clearly But the the will Monaca still near-term plant. with ramp-up Smithburg issue with don't

Theresa Chen

you. Thank helpful. very That's

Operator

[Operator Wolfe Our from question you. Thank Instructions] next come will Keith Stanley with Research.

Your line is open.

Keith Stanley

Hi. Thank first. you. I wanted follow-up to

take debt just you would Is cash if would little to also excess you target, or come take below B up repay more preps, the likely the variable in those and from target. that one the being flows? bit options preferreds a below to since and the just you're out actually rate it issue to preferred's consider leverage February Series that You cited go the of

John Quaid

that those notes for it, Certainly, the Hey, and turn different about move to in preferreds, think capital to I Yeah. John. about question. be those certainly X.X%. structure. not we've look Thanks they've it's not the So, a Keith, face you have got on may million, when of got right? $XXX leverage, mentioned big that would for over of to part thinking rate It where just a might some of relative strong be us a possibility capacity floating a

Keith Stanley

Great.

growth more about into XXXX, a and cost Second definitely had it some optimistic you quarter, question, of inflation the quarters. think last felt couple companies past just the talked I tone like on

from any projects that if wondering, sense next and of Thank major year potential So any plants CapEx you'd versus Whistler And into XXXX? expansion aside any processing thinking about can – highlight building? give you're directional the how you you're you.

Shawn Lyon

those Keith, we've and Hey, will roll we've some about the that I to we've year. mean, again, one of projects I think take talk that announced I'll again. Shawn. next had tried into it's and

to and we're we'll be gas to next on the our will mentioning level. interesting Marcellus about recall the what's you in takeaway areas capital the might Greg too, But largely But opportunities plants think Permian lines. the talk some the call. Permian. as think of before, with Again, we've XXXX JV lot of those we've about quarter's I I on talked be financed highlighted around got at us ready focused you a those

going to those the draw as not capital budget much that's forward. too So move against

got producer next we'll we've and but – quarter like. what our activities, a XXXX be So with of back price looks favorable supports some to deck that you

Mike Hennigan

Hey, Keith, it's Mike.

to add. Just

above We I'll a it, allocation. on all of of the capital, bit capital as as well approach little call have

On side, on down other you refining investing L&S Permian. the business, We're heard the the Northeast. have capital today. investing investing up in activities business as in some gas some we're we In and the pipes long-haul the we're the that in to business, support

So it's typically returns big not major to these personally, not than project. better that projects. have projects really have But a as large sexy, like I organic smaller

mentioned position a of we our main and that's cash the grow that. and for happy after way best that's earnings. all and within we in capital chug continues along optimize the why cash But starts with then can debate flows that's And it the return that I the the about the at generate to is, have. to it day, and puts flows. focus noticing that, It growing us growing where So and the continue And earnings program thanks what to you have with we're earnings earlier, partnership end we capital. what's to pretty and think

Keith Stanley

you. Thank

Mike Hennigan

welcome. You're

Operator

Thank you.

Dingmann Neal last Our question come Truist from with Securities. will

Your line is open.

Neal Dingmann

for Thanks in. all. morning, me Good getting

one question. Just

just great cash cash flow maybe you growth a bit, bit comfortable I'm to you're How talked strong just on go you for just more comes forward? done sort -- allocation but -- a wondering of that a itself. little obviously, I’m it on wondering, are flow, thinking I capital that about given flow, around could cash allocating you've versus a when job, returns? more shareholder all how you've speaks towards So,

John Quaid

across maybe this but is things as noticed it's are of I'm we well. Hey, one this part we've I'll John. its focused and about outlook doing, about, the got other and maintenance million. on in folks a total year chime track remain and this And of Again, flows, have partnership Neal, $XXX start will We've we and cash for the spend. that Mike and in still growing items, sure total, right? maybe on it, of earnings quarter, in then growth been some capital

sure to tools, that. option, of to a whether as the and we've we do also flexibility we So to about growing focus it's we're we're still financial Again, an might optimize of repurchases. across a our the sense. the different growing return on in distribution we're when certainly a partnership. that got look right, capital flows where supplemental business. make number permanent, it's cash position as the we at want whether earnings and the try well And But just and continue losing have if of and that make sight of not But

Mike Hennigan

of in cash the priority to capital higher good It's that same John as what said. we're Yes, grow the time, and Dave just add couple certainly the unitholders. a capital, have that current to that earnings beyond advancing opportunities, then, Neal, where the base to clearly at additional return discipline, capital. have. we're make getting to in investing allocation. to it assets discipline a our But we'll And when cash we We of your still capital maintain And if strict we point, those the we there's But it a against we that, also we time. have such like say wisely. on want some test billion if John that, capital trying a to ball. times, that add good excess we good under we returns, position have program. little robust mentioned flows I'll to we're mentioned, over we're good, $X sure have the That's spending

delivering still there's buybacks. it's distribution good hopefully, win-win. have we'll that capital we're via if And And we'll mind, we'll our in or opportunity, investors a not, investment we If good return think returns. and the whether it's So that debate confidence a way. go

Kristina Kazarian

Q&A it? of Sheila, was that End

Operator

Thank you. Yes.

no We questions. are further showing

Kristina Kazarian

team us of on Sounds discussed any topics you be your will you you Should great. questions you everybody. would additional available Well, thank like take today MPLX. interest our in to this Thank and of clarification you, the have call. or members morning, thank for for joining your

Operator

you today's conclude That for participating. you. conference. Thank Thank does

at may this You disconnect time.

MPLX (MPLX) 1 Nov 222022 Q3 Earnings call transcript