MPLX (MPLX) 31 Jan 232022 Q4 Earnings call transcript

Company Profile

Participants

Mike Hennigan	Chairman, President and CEO
John Quaid	EVP and CFO
Greg Floerke	EVP and COO
Shawn Lyon	SVP, Logistics and Storage
Dave Heppner	SVP, Strategy and Business Development
Kristina Kazarian	VP, Finance and IR
Brian Reynolds	UBS
John Mackay	Goldman Sachs
Keith Stanley	Wolfe Research
Theresa Chen	Barclays
Jeremy Tonet	JPMorgan
Neal Dingmann	Truist Securities
Spiro Dounis	Citi
Neel Mitra	Bank of America

Call transcript

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Operator

Welcome to the MPLX Fourth 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-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]. conference recorded. this that note is being Please

I Kazarian. Kristina, turn the to Kristina call over you will now may begin.

Kristina Kazarian

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

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

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

Mike Hennigan

Thanks, our Kristina. Good morning. joining call. Thank you for

I our want Breves, who DCF First strong we Christy year was on Director Steel, for was as CFO Director. new MPLX served EBITDA was billion Full of XXXX successfully November, to U.S. the $X.X as Independent new off, all and a as In recently strategic a Board. recognize priorities. year a appointed adjusted executed on was billion. $X

the each of pipeline increasing Gathering and quarter throughputs and and annual fractionation performance record operational and throughputs drove Strong with demand customer Processing year.

remain on efforts in adjusted resulted also DCF EBITDA year-over-year realized from our Overall, We cost a management. investments growth capital growth. focused EBITDA recent X% and and

to year, repurchases. of MPLX return distribution to commitment billion for unitholders returned back through $X.X over unit our our full the and capital with line In capital,

of through towards at ENERGY leading our terminals. EPA's several improvements with also our STAR receipt the goal energy of We reduction for award efficiency program made energy and methane sustainable in progress

capital million. our for XXXX expenditure announced we Today, outlook of $XXX

$XXX capital approximately capital. of million million of maintenance includes $XXX growth plan and Our

Permian Marcellus, and the in anchored is plan Bakken capital growth Our basins.

is new on remainder In investments Marcellus to of at in demand. Permian, targeted to mostly assets focused processing gas plants debottlenecking the and plan other existing or customer meet the addition capital our of expansion

our on we are will leverage our G&P low focused footprint to we carbon and can our footprint, continue While where asset complementary evaluate technologies is outlook current opportunities and with capital primarily L&S that expertise.

allocation Moving our to capital framework.

First, maintenance in the operate communities our in health safely employees, commitment safety our We capital. operate. of remain steadfast assets, we to protect and and support our the which

a remain focused distribution. secure Second, on we delivering

while strict after fourth, are maintaining Third, commitments these will And return capital excess capital we also discipline. met, intend to grow to unitholders. invest we to

said in I've capital the return is As of business. this believe return on a past, and a both we

per we the coverage flows, an Last distribution would to while to $X.XX growth capital tool be expect November, similarly XX% of return and ratio based strength unit, increased rate of on strong of on cash as our primary unitholders. distribution our to to annual our In distribution a maintaining X.Xx. by our we focused XXXX,

fostering focused a and about the foundational cost optimizing which are strategic MPLX's strict discipline, low executing the of opportunities optimistic are We priorities flows. portfolio, XXXX remain of culture, capital asset cash our our in growth on to

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

John Quaid

$XX Terminal the in project-related X%. tariffs both associated volumes expenses flat fourth quarter The segment. from L&S the by were and year-over-year, with outlines results offset highlights fourth due adjusted XXXX. quarter. to when Storage in X higher up for segment turnarounds performance by driven Marathon's pipeline Slide contributions Mike. million our maintenance and were Thanks, pipeline increased primarily volumes increased Logistics partially primarily equity impacts and quarter operational to quarters. compared Pipeline higher financial EBITDA were affiliates, the refinery

total EBITDA decreased were compared prices, more lower adjusted Processing and gas averaged Gathering as to benefits our higher quarter gallon quarter, the and which XXXX, fourth volumes in to for by Moving quarter $XX the year-over-year gathered per to on natural offset Southwest operations. up were our our quarter the as $X.XX XX% volumes production due G&P compared which In million of in segment than increased the to for Permian segment liquids X, of includes the $X.XX fourth Slide Utica region, XXXX.

Permian. the up and the in were increased our higher demand Processing investments volumes in volumes Marcellus, from in Gathering customer were capacity slightly and while driven Processing X% the by year-over-year, In expectations Southwest, the did processing volumes in primarily back year-over-year, see year. activity were increased basin. of for with we half lower activity increases levels sequential in producer the the our fractionation for line These volumes and processing gathering, in

on quarter to our flow billion same fourth their efforts. while the of total increased roughly the in employees flat expense X, the financial prior provided this that Slide in not was highlights were impacted $X.X special year, impact costs. cash recognition in period of future Results will do of billion EBITDA X%. quarter We adjusted million compensation our Moving to $X.X distributable structurally by versus anticipate $XX award

a we $XXX million MPLX of $XXX the X.Xx and repurchase the unitholders ratio of of the In Last a in by of million unit its distribution quarter, per to distributions fourth under for repurchases ended million returned available remaining resulting quarter quarter. fourth units week, X.XXX public. declared authorizations. common fourth million unit, in coverage the $XXX distribution $XXX year with through held approximately MPLX nearly

total X.Xx, a with of year debt $XX EBITDA target around Xx. to of the of billion ratio debt below and our approximately comfortably ended MPLX

the to level of leverage has the we While reduce our has in do our levels, not constant, absolute our And need debt debt. business. decreased these our see to at of absolute level growth leverage remained due relatively

of redeem the units value, Earlier to debt. B mid while to refinance conditions, unitholders. par these MPLX to grow Series in In closing, business market us announced we flows million performance $XXX units expect growth capital intent long-term cash return and to our to preferred continue to we invest we and the operating outstanding Subject our our the February. today, supporting of the enable into solid in of will preferred also expect

Kristina. call Now over me back let turn to the

Kristina Kazarian

John. Thanks,

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

With we're questions ready Sheila, that, for today.

Operator

Thank you.

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

Reynolds will first with from come question Our Brian UBS.

line open. is Your

Brian Reynolds

Hi. everyone. unit Good morning, the on Perhaps continued and announcement redemption commitments, off repurchases on to we allocation, saw start the preferreds. capital

are maturities was and With you the and curious discuss 'XX, the that of and opine preferred how upcoming just redemption 'XX up via to in some going you that buybacks in change announcement just could if maturities on debt or any expect special like in given we've the path expect debt as and well? return the cash Thanks. forward, seen refinance you distribution the of coming past

John Quaid

question. and We'll of pick Brian. Good that pieces. a couple Hi, for in morning. apart Great. the try Thanks

First, the notice as said February. Series redeem to and to I my holders in to that going we're those right, we comments just B provided reiterate, in

you and also debt, of past, to our we've likely As to given senior as we done conditions. refinance leverage July. market long-term where billion in subject we have note, the in those are of X and notes maturing into And we'll both look

of to from then about think saw framework. Bs around the that's thinking on first structure lots as feedback prefer some the us unit our that and investors; we've distribution, So you gotten return prefer about notes. capital, And We've senior the tried some year, to last piece repurchases.

sheet As been balance as X.Xx, towards Mike distribution increased at effective commented, distribution, strong you distribution, you at more coverage leverage. third quarter we with like -- tilted XX% strong it's a know, seems the the it here as recently, really the and still X.Xx

quarter, XXX XXXX. So when little look then area And program, we think I In began will to in opportunistic, done continue we we'll the X unit perhaps we'll you If right? an the on more repurchases, we've I also think that to about unit. did a focus to about billion opportunistic million. XX be and back a over around be continue fourth

somewhere think XX.XX, ballpark. in I that

So it'll something you a want And, add to think a our more opportunistic. Mike, little but to well? I be as do framework, perhaps part of continue

Mike Hennigan

just Brian, add Yes, little let it. me to bit a

billion of distributable generating about X cash EBITDA, roughly on We've after of X simple been flow Just basis, billion. a that. spending around X we're billion about

$X which all our $X billion through after we that. of cash free billion and distribution, cash X about been of billion about distributing So leaving base has have flow

lot the continue buyback on the think we And flexibility. to is and that side. try opportunistic to I So a as we show have of We'll continue this market John key partnership. be try said, and we'll the grow

continue distributions you'll time. to So see us over increase

real But overall, think cash the I that So a standpoint, in financial hopefully, position for us we're be. sheet, but to we'll market returns. staying where excess strong talk strict from wants deploy good opportunities on to balance flow, a some looking at And that's point. about

Brian Reynolds

could refinery the faring better It color. extra just operational expectations that touch 'XX into run year? siding all any Great. 'XX. in volumes [ph] runs quickly much of peers. Thanks. Really if nuances and after MPC the opine be side to 'XX seeing appreciate maybe by Thanks. if to management you're curious And And really on house, versus than strong could just and seems seeing products, product on support products refinery volumes 'XX perhaps resiliency that for just last

Mike Hennigan

ran our question, house, reliable at key really utilization. XX% color. more year. that good I Safe, you we I'm MPC the side. But a going Shawn Brian. on side had business It's is say, We let little of a to a to will the strong give operations

followed a year. some half the the we utilization. of had activity some of deferred overall, you've to it If But very strong year, the the during activity back turnaround was

the little L&S So I'll a on let Shawn bit comment side.

Shawn Lyon

Brian. Hi, is This Shawn.

others refinery habits. We the out 'XX, the our another on some And MPC then strong year. year Mike continuing we'll rates pipeline and the a of strong we're to see that in the be terminal Permian. had said, about pipelines the 'XX. matching growth in across And Permian coming excited out and side. had As several of we records of we're also the assets And

another like So, year as again, again volumes solid 'XX we're 'XX, far growth. to as in see and just excited

Brian Reynolds

rest it leave Great. I'll the day. of Thanks. your Enjoy there.

Shawn Lyon

Thanks, Brian.

Mike Hennigan

Thanks, Brian.

Operator

you. Thank

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

Your line is open.

John Mackay

Maybe up on CapEx Thanks the Hi. guide. for the Good morning, time. everyone. pick I'll

Permian kind on you've any side, like be of one-offs and opportunities processing guide of towards of on pieces. how I smaller But down of some guess suppose. break curious breakdown of the But interesting? loose, the named it would versus of could trend versus what we're there bucket be more kind even just -- kind the touched little I'm if a to going of these I plants, moving can it of just sort year-over-year us the next you. about, going in maybe the is projects You Thank the much for talked terms emerging transmission just calling or you

Mike Hennigan

I'll some Hi, color. add let start Good John I'll John. morning. and then

we'll in what in the but to bottlenecking at G&P So program producers grow, smaller see people big returns in call flashy the most to the general, targeted the best the know get side it's actually or whether of capital side is like the L&S of business. projects. I expansion as projects, we

bolt-on a bit little production a expand As return have system we higher here and get where can pretty that to we increases, our add to we projects. It's continue big to there.

we're Now, platform. still the to add going to

continue growth, couple we you pretty base, mentioned, a and processing coming I story EBITDA. back, will large, as step some allows you real our to are increase then X we got the cetera. about billion which behind As plants But support of our that, of just to add gathering to et mentioned, if on, us which

growth as There's going to we in of the of so rhetoric a you EBITDA, we're around the plan other mid for There return to a have like So looking digit projects, in involved been in be involved are develop hasn't lot our cetera. at are add a carbon. lot system, be low going those yet. CCUS. continue high down is talk there We're day discipline hitting They'll more advances, that a opportunities been end have at it. have lot there's opportunities And single obviously We're in there. the a but today. I going earnings that's and am things. our get to different not good profile lot of for face mentioned about in look of that stuff a over the to believer time, technology road, XXXX strong just us projects et to way

year returning capital we a every that we term line and grow big to bottom the discipline. hit to partnership to continued our going of want So because a our the strict outcome year-after-year really good a -- of we've obviously concentration capital that It's we in consistently, lot to this investors. is get high sure of make way the meantime, saying nice are returns use

Shawn Lyon

Shawn. It's John. Hi,

of a Just things couple add comments. to to Mike's

maybe kind one of is example expansion So an debottleneck. an of in

we're got is existing looking the plants. in item we've at processing space some Marcellus our other on The

mainly opportunity monies we an then a we've there space level. those projects of ready projects some that JV number on there, gathering systems are we've Permian So et given And fill shipper at those at plants go. the around those got invest up to support, and and those slide financing to our there's also sitting remember look on and opportunities, the where the cetera, listed been have

So there's outlook getting a just to amount the going in joint not our growth of that's financed at EBITDA good down drive capital that's venture. because capital of that's

wanted just highlight So well. to that as

John Mackay

the And Is the you give there kind $XX if million? number to million be some to the I award. stuff. maybe XXXX higher look there you any that won't turning Maybe adding a rate mentioned you of $XX back that's the of also or the more John, base able going side of quarter. on mentioned million that as in two run for kind in of at all representative That's there business. trying run And $XX helpful. it we're comp quarter, maybe I the quarter appreciate the to might expenses then us simple think kind forward? as special things. L&S a maybe be Is total rate

John Quaid

Thanks John. question. Yes. the for

that item compensation expense the pieces to was The So of decided using and for there. items. a here a that's there, the by couple it's the in we're kind term of quarter do entire special award one-time we

So efforts our the XXXX effort that employees' That to we really in quarter, award and know our another recognize I in first at results our having was employees, kind don't look anticipate that. non-executive right? wanting to achieving level of

unique. a that's So little

back discussion be expenses. of et loaded, can gets to sometimes cetera. project a half we other MPC's tend our frequent more maintenance around around The piece schedules, move kind with that turnaround Certainly, little

move see we number that to same we're number. year-over-year of management. that will amount on I focus John, I So but quarter-to-quarter, expenses cost continue know today the that as we think provide being don't it roughly going to But

as our activity tend the lowest to Just that be quarter past, quarter flag a you, other for due first to spend weather does just items. in and around

So that's hopefully, helpful.

John Mackay

it. I very Thank appreciate Great. you much.

John Quaid

You're welcome.

Operator

Wolfe Our Research. next question Stanley Keith comes with from

is line open. Your

Keith Stanley

any how recent you're is very [ph] start I commentary unplanned point, just hearing that given Utica data know from prices Hi. might expectations we've I as Good to be morning. wanted Marcellus -- and producers this rapid gas a activity, impacting seen very just but your that updated well? and the decline in

Mike Hennigan

good to I'm take Greg let that's Keith, a one. that going question.

Greg Floerke

been Certainly, were that. in over It and so of the the But Thanks, for off kind some by was volume prices high when on prices, there Marcellus. the crude in is benefits activity across producers price, the drilling seen to higher and not of Keith. crude the all into driven. NGL in this we're 'XX Really has very a which, Permian, be normal mean and condensate come the MMBtu really activity, seen outlook completions, and even NGLs per see of And at the basins. 'XX. and XXXX of volatility. supportive price Bakken, like or we that summer, more and in increased places then $XX We've level. is it increased XXXX drilling We've gas to Delaware, related associated price Utica back completions or even in the gas, a now drilling just increased crude whether Permian the is of the

right of in activity we that up activity set much as drilling So short-term because price the by expect lot impact now will was a volume really, XXXX. don't swings

Keith Stanley

it. Got Thanks.

wanted Second question, just the on follow I up distribution. to

the are growth the the it potentially see Do had think excess about pretty couple that. the business? you growth grow thinking So that before last cushion XX% for the How flows in years cash you next you to distribution in so the about distribution Just company? I your some overall investors should years excess few in was and how several over Does hike over think and head quarter. could of Growth years? faster? the next tie distribution of small flow, the cash

John Quaid

I Hi, really Again, I We've And have Michael comments well. of Keith. sure on XX% I'm cash you've last slowed up I'll built distribution moved cost. then confidence as strong few will the have driven may coverage we our ratio right? essentially noted, flows, partnership. coverage. And continued some highlighted off It's the the a John. quarter part really focused still But on grow in as distribution said, and as start for We've while of to we a increase. been you X.Xx. the think our our of we years, strength it, to

heard capacity target mid growth. So Ultimately, But later sort this towards think the getting Mike we of was partly here of have to that some up that talk you -- probably we the year. built at our about run rate. how about you of kind distribution look would single distribution see might digit

Mike Hennigan

I'm mind to large said add EBITDA. numbers. of a roughly to just law I little in bit -- of earlier, what billion a X bit going We're of of little the got keep repeat

or cash distribution billion a even is more base distribution, we EBITDA, mid amount nice million thing mid add for that digit, whether $X our significant financial which single of flexibility today is system digit enough $XXX that's about at about increase single So flow translate do a we grow additional if that But roughly. the growth more we're us, to whatever. will that would buybacks large the to

of of of And COVID. a math to And little your I things still for of even house we the provides to point, think earnings make does was flexibility the where this space year, with bit during everybody hoped tough translate? about during us on year It refining the paused moves. in though grew think recognized, et kind you I the one the side if that it cetera. even demand, market that more a So reduced that

good be. it's I to problem is you and then, financial of keep part recognize that to return a our part will And are of said is. the the you kind best can reward to of overall where go good efficient I to saying think have. and simple it's all try it and growth So the total in if get where an try where in math, the we way investors like start we is potential We'll is And recognize can place try our financially, at a be. it to of to at we It's manner flexibility approach. to look We've most the above traditionally time. that an said,

As as just we for John a last leaned strong the as harder point We made, coverage. got We sight that well mentioned, on in for got little what line continued growth. you year distribution John made. of

good So continue I the grow partnership. to position think in a to really we're

Keith Stanley

Thank you.

Mike Hennigan

welcome. You're

Operator

Theresa with Our next Barclays. from question will come Chen

Your line open. is

Theresa Chen

matter renewable volition to do space, investments, on point in its at get to given the a And renewable thoughts something that there have MPC ability financial the As down hurdles? and a I'd is now? has to beyond there slate far carbon potential in of willingness significant together invest C-Corp? of low progress opportunities in as growth low with line Good made the technology, Mike, are this hurdles some the and love your you morning. your generally what expansion carbon right

Mike Hennigan

is Theresa, at short our geared low the activity of high side house. most Yes. carbon in MPC at the the term so of level, a

mentioned little continue is But o'clock that on gathering about will that are a XX now example and I aware advance. sequestering less the it. the believer technology side. we little more at call. earlier, talk A One as to a MPLX we'll So bit everybody's carbon that right of

MPLX So going impact earnings XXXX happen projects, house. on projects. to not year. We're not that's to -- active side going they're to in profile a are the not They're the great but opportunity this several of

have to that you're area. MPC overall, couple be of of more the renewable a in plants. house, So diesel we aware There's growth very going as on side the

a far more So on listen this think just call happening ask I'll for on in you that. just primetime to the give MPC ready We'll on coming. get a at what's not color little on detail. little the we carbon, to MPLX time. They're And more as as then things side, low are so

John Quaid

in Theresa, John. then, might it’s I quick. jump real just And

MPC Just move renewable as to think around MPLX assets a is reminder, that of the fuels and a you remain were don't assets. liquids. about like logistics those we lot the different And if have that investments around Martinez facility doing, project

degree, those some to the extends minimal life facilities. it have with So maybe around investments of the we assets

Mike Hennigan

of areas, Theresa, those what's invest. your it’s last Mike I The the technologies what and not that on to thing are can meeting that will time, get think to to be returns whatever, But limiting the us one will opportunities a we again. or evolve question we quite implement. the an would on area for technology in like lot over

call, we of mentioned, house. on talking As side been billion the year the excess of beyond $X we're generating throughout cash flexibility sheet, the of financial this growing on X.Xx balance have a John distribution. a we've we're lot

So we the financial flexibility. have

be on and returns. are ready are strict but going we We able, to

the matter a there. I'll that of us just held the of think point. part what level investable not some discussions just of are we is time. they're call a from It's returns think back we what But at splashier to this has So that get at going

Theresa Chen

Northeast Thank thorough on you re-contracting to the John, a that logistics agree, the I look second. and forward Martinez for Maybe for to assets. the definitely we response that XXXX turning

doing support delivery is the for in as to given outlook take the the and how as volatility? cracker that well ramp to feedstock price of deethanizer, your the general Monaca your Following to Northeast, would your startup recent up on love get economics facility

Greg Floerke

several I'll question -- there's on is this Greg. Theresa, several it. to answer that layers

actually our deethanization capacity across of fleet processing all fleet We unique have within our in of our MPLX -- our day deethanizer plants. is We're a over is and barrels then XXX,XXX spread fleet.

definitely the Utopia, and plant. ability but by Marina ethane or deliver we East, ATEX have by purity the Shell plants are almost connected well customer, for fleet. to we recover production Falcon our a deethanizer West, as line for those reject All the by to ethane Mariner as a So XX,XXX mentioned fleet, capability I day. is our Monaca. little It of which pipeline line a ethane is to over The barrels over latest XXX,XXX day to adds Smithburg purity addition barrels

that our of Coast, the So plant and operating along in fleet takeaway ramping of supply It's Coast Gulf operation. It's rest well. not even is only to up with Canadian all Monaca points. but the also East

terms than ethane spread natural prices recently drop In the of whether little fractionation natural ethane at gas, economics, rate or gas the between drop. a and rejected seen price it's the we've higher not,

the producer of the But more whether for terms So reject. really to in recover improved. recovery it's have up we or economics

to do ability the have both. We

producers have of by We it. is and already pipelines to the tied made in takeaway frankly, plant. And to capacity those the the commitments do are that the the for to Northeast, Shell most recovery

as ramp to up our utilization we continue increase we So towards there.

Theresa Chen

Thank you very much.

Mike Hennigan

welcome, You're Theresa.

Operator

Instructions]. [Operator you. Thank

Our next Tonet JPMorgan. Jeremy from question comes with

Your line is open.

Jeremy Tonet

Good morning. Hi.

Mike Hennigan

Hi, Jeremy.

Jeremy Tonet

of kind feel was prices egress I Permian MPLX you far of guess recently, any negative touch a might that over to said, as level relates egress. willing Matterhorn, little tightness. as Waha or high for to trying how to And the that get bit to expansion do want just the long Whistler to start I seen shift if service ago, and ahead Just natural unfolding ability partial not curious you've could there? to too just you any what and tightness is wondering be dates Permian as see it a We've gas just with thoughts takeaway there the share could,

Shawn Lyon

out is This Shawn. Hi, there. takeaway Permian of on the gas Jeremy. touch I'll

out the on anticipate [ph] you there, of said, showing for As again on here. we're half then small got needed there. commitments That a expectations we're volumes into for really volume and that needs we third our gas in really top we And Pipeline. the coming continue -- in quarter of again, B 'XX 'XX have coming in And the Matterhorn of meeting matches pleased that as will of producer ramp coming that online and that out got again, up committed expansion participant know, takeaway as and that really the Permian. Whistler got on the seeing we're strong, the to you there. those We've by continued that, be Whistler, we've customers' those volume last and of quarter,

So think, Permian. going see earlier, the and takeaway up again, natural the of out you're I there's as on Greg for down again, said demand But volatility volume gas. strong gas to

Jeremy Tonet

I for if that your for just Thanks they did across weather, it conditions would that. it. freezing there quantify was Got And any there's I if us curious some guess all, operations materialize? as country. if weather to was headwinds the relates quarter to during at Wondering impacted you that willing be

John Quaid

chime start I'll ops. the Shawn if question. as the and for Greg Thanks want can on John. in and to they It's Jeremy. well Hi,

obviously, producers some run platform, on lost probably some our of the had side, mostly the across we in profit mainly they that issues. opportunity when So gets as cold, our into it fourth quarter, G&P

as And on think EBITDA. we MPC's impacts side, adjusted this QX joint for our $XX And operations in there give XX distributions. our really a lost 'XX, XX take, I'm when we So across different fourth the or That partly reduced million the of remember opportunity basins about on was partly quarter, quarter. G&P probably days, to that the that in to somewhere look quarter. the is talking around operations, ventures

lower QX effect shows QX the that as well. as in of part up there's So in distributions

million probably of XX and lost So opportunity in both QX. QX

Jeremy Tonet

That's Thank helpful. Got it. you.

Mike Hennigan

welcome. You're

Operator

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

is Your line open.

Neal Dingmann

E&Ps, much I as suggested from specifically week morning, some bit for that provider I of G&P, your hear fracking but question you activity all. did could flag next see activity Good change number from in of My plan heard or far in any last them Appalachia. a the months is Marcellus slowdown a on yet longer as too that haven't few for

little year-over-year. a Slide did hear, would lot looking there -- know the at down versus to I just bit, was love not So X, a whole I you're it

the So I'm the your of for in curious area the more thoughts year. just overall on remainder

Greg Floerke

point, forecasts some been well with do forecast activity, the availability, in weather, I Neal, that 'XX we those is close we that in drive over But depending mentioned pricing, obviously, 'XX can and track underway. this a things, into pads depending in At completion communication rig still this of -- Greg. depending time on based And we are producer before, then -- customers we and and activity we're is volume drilled on on activity as rates. lot on completion those has and still drilling already the change. that activity being

be pads bullish year. But we about a this delayed, always point, of aware possibility. So could this those, volume at feel not but there that's still

Neal Dingmann

agree. Yes, Mike. ahead, Go I

Sorry.

Mike Hennigan

Yes.

me add, everybody a Marcellus, lot outside think there's structural gas in the of just a now I realizes even change Let of from perspective.

in So seen some to Marcellus not other of as see Greg mentioned starting haven't activity, the areas you're had a earlier, outside activity. that of had that of of lot lot in 'XX, in a the rigs basins

while, used of being in I structural But if relative there change short coming people structural up going rigs a that a winter. overall, shows I term, been potential it's level pull in a to that change, So gas Very to are forward. you not expectation higher change a in recognizing think now. a for has been into activity, activity back basins little gas the warm think more there's

Neal Dingmann

side, then talked gather of you on have non-Marcellus. continue on the make on just And think to remind me clarification, other think one on there what still again want what sure Shawn, earlier can I you the Yes. Well just want capacity? about on is Permian I I gathering on gathering, this -- nice bit capacity a still just side increase the there. the today. Mike. said, is at clear all. to you make I'm just to you have wondering I the the available

Shawn Lyon

need processing the and we capacity, to basically and compression of the terms have. In add wells the connect Permian new it capacity that build out we as Delaware, fill we

John Quaid

John. it's Neal,

about we've Specifically a building million right, in about, that's got sixth. our we're what five asking if They're you're each Permian, our day. XXX plants, the

scale show. that numbers, heading that which Southwest part specifically the X.XB. that you B to and at We're to we I in And operation, asked of believe size the So gathering it's which, of that's capacity. the match a we for region our

Neal Dingmann

That's right.

Okay. guys. Great details. Thanks,

Operator

Thank you.

Our Citi. next Dounis question from will with come Spiro

open. Your line is

Spiro Dounis

morning, run whole, go and up a we team. look And back to to be of just maintenance it's about out as on Good a kind follow of questions one this heavier just operator. supposed think bit I industry the refinery refinery believe 'XX. a as year Brian's Thanks, and for we year. zoom Wanted at if rates

about the thinking overall, or curious internally, you're on side about to your So export net you're impact that there? ship the negative whether or all system curious benefit flows or not the thinking how how just

Mike Hennigan

it's Spiro, Mike.

turnaround success weighted taking activities turnaround had despite backend 'XX. frontend keep MPC been the about talk things is out our one 'XX. off. way safe, even side But I with for our a to going weighted needed a MPC to our high, start I'll So operation. there, that part year think our in We're to utilizations of of has activity reliable on figure a the

back for the activity first side. half pretty year. Shawn we the other strong year activity, this a if even time, heavier mentioned same you the as off us, with of the still more we in strong the had on that with record and pretty last the one a though the think expecting L&S So side, earlier, the utilization quarter. a But is expect -- especially even year of still XX% on year we're We in start expecting ran year. we're half it 'XX. MPC It'll At front year a still year of

Spiro Dounis

Got Mike. it. helpful. That's Thanks,

-- have thinking last ventures over guys pretty look I effectively And question, few utilizing you assess and forward, joint I'm guess of you the going Second years. been just CapEx curious and strategy. back that about sort

with how that think any I be I'm going of see using on on curious you of forward. But ventures plan thinking ventures these partners it over here it. pathway a about time? strategy to sort joint you're from these you a current Is assets something larger joint you'd just do satisfied some venture of as And projects? maybe joint own these more or even multiyear ultimately, doing

John Quaid

John. let It's Mike I'll start Spiro. chime Hi, in. then and

those a our you're pleased considerations, started in entering your we certainly, et investments financial that commercial been point, I when very we aspect first sharing have think opportunity, don't definitely know Permian. joint from to the venture as of I right, well other with relationship, cetera. a risks, as

situation, you depends So as on a of it have think because strong balance the I bit good know, we certainly generating sheet and a cash.

have us. well for worked those really So

JV operational, that strength leverage given opportunities. don't where can know financially look balance and think we in of financial that to the opportunities we both I sheet, perhaps need there's I them But the would regard. at commercial, reasons, have that

Mike Hennigan

other makes side house, of that's capital, live I of to opportunity as comes it. these to doing tell finance we capability But with that, said. to partner, earlier, it for John to we pretty and partners. that the And would Yes. add on But opposed fine going capital and are. those additional us. the in the is When desire at a if it John to couple financial it project said, mentioned It's typically instances, specific all We're it. a try had then just level at with project gets our it's partners We that's what that of partnership, from and I who members not to the we're the that project was we quote there to we're Spiro, ourselves. when John that be itself okay the you, good and for and the do to can better financed a capital projects our level. want specific the the

to point. question than specific answer hard it's it's So to John's other your

obviously, in been We it well. where level, intent in we okay goal, that the project, fortunate good We're happy we've have we've them. aligned. the project aligned finance et our is been with any And of been with partners. at had have The And JV with partners. cetera. as alignment usually already the good We've to

Spiro Dounis

always. guys. for the Thanks Helpful as time,

Mike Hennigan

welcome. You're

Operator

with question last Mitra from our of America. Neel Bank come will And

line Your is open.

Neel Mitra

Hi. Good on was morning. have completed? would wondering I impact wanted to the touch on once the MPC any L&S Galveston that's I Bay segment that if upgrades.

Mike Hennigan

more project is lot about I'll to [indiscernible] strategic I'll more in. specifics pretty general, the start a But a on us. and let going call. MPC in It's We're upgrading. lot crude that for Shawn and in processing that probably jump just talk

Bay, on via have So as bring pipeline in down barrels you and/or obviously water. flexibility we Galveston know, to

So well. or our on other depending tends on outcome the specifics of pipes some of could where to come side. obviously, the the on system waterborne move that best could it crude it the crude as opportunity the products, But hit is,

an So it MPLX MPC more of project is it's an impacting much than project.

Neel Mitra

some And portfolio? the to portfolio you some want feel with Okay, you with Are go? like just And assets? Thank intermediate in about on do do you got side, at term. then downstream bit scale thinking NGL wondering you to need can the Permian the you. my takeaway gas question pipelines? have like how you downstream far you on to side envision I'm of G&P a feed up more how it. second How look looking processing, good this longer then Whistler the sum gathering and and natural You little the G&P Matterhorn. you

Mike Hennigan

or I'll there. Shawn yes, we Yes. footprint Greg But and Dave. continue to would At like a to touch high expand let level, our

Dave Heppner

Neel, this Dave. is

existing export at the strategies to long as other down pipelines or it, place leverage you think in in to assets infrastructure processing have the I out from gathering one haul opportunities infrastructure of to and there. our is the we look the

see, our the strict opportunities, returns. going you and that inorganic whether capital really the in discipline Again, it back we as think of get by or to all I anchored ensuring mind. keep acceptable it's growth be So organic that

Neel Mitra

the follow possibly And capacity gas given lack some the takeaway if win Are seeing synergies bundling natural contracts to and your that. I and up between between just gathering to there, G&P? able a and processing being possibly having could Whistler ask you of and pipelines contracts by

Greg Floerke

they're Yes, definitely synergies.

side, we we're some wells gas put comes that. There's assets as building units in. On operating example, for the of and crude new new and in with the that associated gathering G&P tie [indiscernible]

operate reliant to to NGLs. bring gathering So and wells then and Whistler the we coming residue and that the plants. operates system from then, downstream the we NOL, processing gas on well, connect operated as the L&S bangle But as handing pads well. off gas gas crude the is the to then of pipelines the G&P the And course, we're going gas,

operate we So there. seamlessly

John Quaid

about value chain. Definitely that's solution want and that John. point further those can right to we built producer and continue look it's the downstream question, of that we'll to we've Neel, to think how customers product your the move to the across coast,

Mike Hennigan

add. full I'll effort It's just or make We to provider. be service Mike. try every a

gas. gather will we crude, gather will We

We will process the gas.

transport will the We crude.

producers be them. logistics for to or to the is intent them work make or to infrastructure Our needs partner work a whoever for

them? are we So into provider win-win needs and hopefully contracts on how full to service they like can And or try a and be discussions conversations, into we turn said get you to what as help their situations.

Neel Mitra

Great. I Thank all color. very the appreciate you much.

Mike Hennigan

welcome. You're

Kristina Kazarian

any to of our us your your you guys available clarification in the additional reach team call, like take just you, you'd have you on for if IR so MPLX. All that, or of and morning, Thank please will right. thank for topics thank interest joining members be discussed questions out. you Should today this With we everybody.

Operator

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

this may time. at You disconnect

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