MPLX - Earnings call 3 2023

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Operator

Welcome to the MPLX Third Quarter 2023 Earnings Call. My name is Sheila, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Kristina Kazarian

Sheila. you, Thank welcome Conference and MPLX Quarter Third Good to Earnings Call. XXXX morning, the that can The our this accompany slides call mplx.com the website be under Investors tab. at on found

Hennigan, the today CFO on other the of team. members CEO; me Joining and are Mike John Chairman call Quaid, executive and

We differ question-and-answer materially that may the filings what reminder and be we that disclaimer results invite making the that session call differ Slide Factors results follows. on forward-looking SEC. there our statements from to expect today. as harbor read could to during and we'll the Actual during with X. you statements the in safe non-GAAP It's actual cause as are included a well

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

Michael Hennigan

everyone. for X% increasing cash distributable new set Earlier Good quarter quarterly you MPLX third reported record Kristina. each our both we of EBITDA joining of over billion Thanks, adjusted for a year-over-year. $X.X billion, today, morning, $X.X call. flow and Thank with

set MPC. strong with terminal Our L&S the saw throughput relationship demonstrating our a pipeline crude business of value throughputs, and for record new

In driven our assets by we G&P the in in mainly basins. and Permian Marcellus our and fractionation record our throughput processing business, operations, saw

of our prices. for cost long-term commodity production end in largest basins our curve key largely current producer Our outlook and below unchanged. the the the G&P at cost low remains the customers Marcellus, remains still basin, our In to develop

maintenance level to see continue. We activity expect drilling

significantly and producer for While activity. Permian, in associated gas remained the impact do not prices prices crude strong

growth position source opportunities. the Our partnership integrated with of basins footprint steady in these a

basis. with repurchases. flows, tool, increase week, growth and committed on partnership's distribution to capital capital at unitholders expect based which in of of now our per an we a returning announced opportunistic For our the primary year in return supplemented XX% annualized the on strength unit second be and $X.XX stands We're to distribution, to the the a continued last cash row,

are of of return our given capital strength positioned We well and the business sheet. the to optimize balance

its for expects is cash MPLX for shareholders billion that not plan and position distribution. investment in structure and unchanged. allocation which are a now MPLX capital the via optimal current priorities strategic roll believes is its Our MPC flows to on its up to MPC receive annual does $X.X MPC, MPLX.

our executing asset confident foundational of our the on grow strict remain to low-cost We discipline, a cash and growth focus in MPLX's which of fostering ability our all strategic are of partnership priorities the flows. to and capital culture the optimizing portfolio, continued

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

John Quaid

Mike. Thanks,

you see has Slide can a of flows growing MPLX the executing strong its strategic on X, cash highlighted. As priorities history just Mike by

comes we our you months this the Looking growth back years, that develop see through the last year, over projects stair flow bring can cash steps as year. versus grown first prior over online. X of has X% distributable And and X in the

maintenance which We million, million capital. growth $XXX forecasted of and $XXX progressing capital of $XXX including XXXX capital program, million our are remains at

in L&S is completed was for in third venture per Dulce Corpus demand gas are the joint pipeline strong NGL the of is service Whistler's of pipeline the In in at progressing. to gas, Agua segment, end the feet seeing progressing Christi Construction day, we're and billion expected projects on the our associated XXXX. quarter quarter which the the natural be the pipeline. lateral, and cubic crude X.X natural expansion, third Permian

service. pipeline, over crude On to segments expect years X next volumes the continues the to play Wink-to-Webster we as pipeline ramp the into

the in participation our to chain. Turning value NGL

is hub capital-efficient about Delaware the Basins day, Sweeny, expansion completed in supported of be fractionation of pipeline BANGL and the half pipeline Midland by expansion which XXX,XXX is existing the The demand Permian's to to the long-haul for first the from in NGL takeaway to barrels progressing expected and Texas. XXXX. per are of growing this We

of All finance JV spending projects and of in capital capital not is these are reflected our largely portion therefore, the outlook. JV at the financed level, our

segment, In focused growth remain Permian Marcellus the producer response in and to in we G&P on investments demand. basins

strict are in new online while bringing gas strong We Permian Delaware to returns demand plants targeting meet processing Basin the increasing discipline. with capital

our would seventh Delaware these which expected construction is day. Basin be processing operational, half in II, plant first processing gas to which in up the online of quarter, the last will building XXXX. capacity announced of X.X expect of be bring total in to per progressing to And the plants Preakness online Basin our in be XXXX. We're Once the Secretariat, we we second half Bcf

advancing In processing Harmon of the half gas Basin, the are in we Creek also XXXX. be Marcellus we expect which the plant, will construction of II online first

reported third 'XX, and operational our The of driven segment billion when quarter higher $X rates quarter outlines highlights million Slide primarily L&S third adjusted equity to the Logistics its affiliates. segment X adjusted throughputs, consecutive segment. and from third EBITDA quarter $XXX growth financial L&S by performance EBITDA. compared Storage increased with and for including

Product Marathon's a segment market pipeline dynamics Garyville the partnership grew volumes down quarter new we million. downtime. crude through quarterly expansion XXXX EBITDA $XX adjusted by incident X%, throughputs excludes response activities. refinery Crude volumes from debottlenecking were were Third less X% pipeline and as driven record and and effects up of cost oil represent for favorable

from X% higher quarters. due to Terminal Marathon's were turnarounds volumes infects customer refinery both in including demand, up

segment planned turnaround higher to to ahead operating due expenses a Looking the $XX some timing we result sequential as maintenance activity of of headwinds the $XX fourth do volumes to expect million lower MPC's to as quarter, million throughput L&S from well as projects. results approximately of

$X of XXXX Processing and X. segment compared benefits offset Moving NGL to the Gathering to lower third prices. fees increased were volumes and our quarter million segment Slide G&P adjusted as higher EBITDA throughput on by

business, natural fee-based largely do have we to sensitivity direct segment a liquids G&P While prices. some is our gas

compared averaged quarter as third gallon prices $XX the to per million For the in effect. XXXX, $X.XX NGL unfavorable of in a resulting quarter, $X.XX

Processing in Permian in capacity. year-over-year, by and driven processing Permian, due Marcellus the the gathered customer higher in Total up the and volumes increased from up to demand were Marcellus. volumes primarily increased volumes investment and Permian X% were production X% our year-over-year

the Focusing our by ethane. to in-basin fractionation Marcellus, saw demand to fractionation XX%, of demand driven gathering in largest to grew and processing, capacity due by for volumes basin of on increases for our primarily meet far, increases and X% operations, volume increased for customer we X% year-over-year

Moving adjusted increased flow year. $X.X distributable cash X.X%, billion from to financial of and Total the and prior on X. Slide respectively, our $X.X EBITDA billion third quarter X.X% highlights of

maintaining confidence As our coverage our the XX% Mike based increased growth the common on of base per distribution discussed, continued X.Xx. unit we while in cash $X.XX of strong to flows,

committed unitholders and to capital have are distributions. returning year-to-date, returned we through We $X.X to billion our

of distribution tool Our unchanged, to financial allocation. capital a balance balance of a continue cash our our sheet, to capital Opportunistic the return expect will allocation our with also strong primary held of be optimize we including and to provides and remain flows supplement returns. repurchases quarter public capital. us of units to tool remains $XXX framework capital leverage by X.Xx and the flexibility The growth million end cash

for thoughts. let back some Mike to me Now it final hand

Michael Hennigan

closing, grow return our the capital cash commitment growth enable business of and In Thanks, to John. in our to while unitholders. to us flows invest supporting continues the to

part primary distribution, be as MPLX's our tool. announced its capital distribution value to recently base illustrating strategic billion the portfolio. to continue with to XX% from We of now receives the expect the distributions, of $X.X return increase And partnership's MPC annually MPC's

will As to believe continue MPLX growth relationship be the we strategic enhanced. pursues its of this opportunities, value

in Permian the our to cash reinvest us portfolio on We to Basins capital our to unitholders. growth along cash the with to return growth generate focus flows, confident cost are advancing and and and opportunities high-return our we allowing ability and our flows Marcellus in anchored business optimization, in projects intend strong grow by

Now let call back me over Kristina. to the turn

Kristina Kazarian

Thanks, Mike. for ready that, And we're Instructions] questions [Operator with today. the Sheila,

Operator

first question John Mackay comes Sachs. [Operator Goldman from Instructions] with Our

John Mackay

kind week. start you about were now that level, to going just us means increase leverage distribution XX% thinking maybe [ frame about on if the for the ] how X [ context kind X X wanted ceiling. the forward? versus on in X could that if ] at of you you down cadence I of the touch up touch could for being And last of Maybe what --

John Quaid

the thanks John, question. for Yes.

I here. think got all gets it a flexibility we've to of down significant financial amount

can making sure you see growth, around capital we as to returning think very unitholders. we're I our also been as allocation we've capital focused but where to stand

capacity As we've talked digging with X.Xx. you Certainly where here on stay our there. that, coverage comfortable very focused past, very this at some the and in is increase staying into we know,

about, invest think drive balance Again, is, also return very that's where I of have well, I'm Michael comments just the and think on I as some well. sheet mean, for looking I sure but opportunities as to capital not as but return happy

I a comfortable year the growing in XX% and we're do driving a for So the returns to to continue think on second spot. both in be row unitholders. Happy partnership to focused and very also

Michael Hennigan

CAGR the think stair-stepy. digit. we're -- earnings think a saying the going the trading to mid-single investor that we've I'll results, end a to at perspective market day, at be our been our But Mike. I demonstrated it's John, of is north since we're little been XXXX, you it way just to a X% it's add we've roughly, of little around continue and we yield that look grow if about and around in somewhere an from the will It X%.

opportunity for about the we're the as for opportunity a strong invest think think So it, give about equity. this our pretty thinking about growth the the we as is yield people said, way over should plus term. just longer I John investment to people, And in

We have a now. financial flexibility right lot of

on red blue cash which sheet, bar balance have We and is bar. both the

So growth we have capable. more distribution

changes. bit We time, which volatility have back seen see we'll that we a come but the into opportunistic haven't for more little we see if how of capabilities equity,

interested type But trying investment are position overall, generating. of the a in that people we're we're good for flows cash that ourselves to as

it to perspective investor gives angle. So you hopefully, from that some think the an as way about

John Mackay

about here, that. the we than a spending And you've in the of the growth continuing expected. I came than seen guidance little announced opportunities at cadence backlog maybe reiterated growth just CapEx look year. we up the beyond We've from project can talk would also in of might think quarter, growth so on Obviously, themes where Maybe for I we sit third have you lighter to appreciate if business. invest CapEx picking far. been the

John Quaid

John. I'll in that on one. jump Thanks, Yes.

too, to I move said doesn't -- quarter-to-quarter. right, capital we've before our think it as tends

the this $XXX million that amounts around capital still And So to morning. not this looking of towards. the We We've the first stated X see of projects kind on again, of going remarks Marcellus, summarize to you're in in year. tried ratable next online again Permian kind in year. major again, my we're in growth and we're here for we've processing X, half plants, Slide X of got the X working coming

We on spend some that we're probably in last will progressing we've another right? be start a as JV projects see So to announced us And of XXXX, in quarter the the Permian, pipeline number plant which processing out got you'll money that. then different well.

and a plus remain you've of CapEx kind comfortable basins. said, So before the of $X probably rate zone or is in opportunities billion think minus us. again, for of asked think And kind I main that I run hey, those we've

where us large And opportunities we midstream create asset MPC operate for there MPC, around also find for a look our value support we too, acquisitions also, continue of opportunities are L&S around smaller to and that. bolt-on commercially can where can to footprint in then

Operator

from Barclays. with will next Our question Chen come Theresa

Theresa Chen

acquisitions, there attractive that as as Are later a market out along level. to about at invest what's well given can I bolt-on on? assets more from disperse value touch areas to especially chain announcements some in, your market. your point piece multiple your last asset from We've companies into if today on potentially particular and peers in find maybe the of the the about infrastructure John, TMX competitors received wanting potential you of

John Quaid

one. that ask Theresa, chime Dave I'll to on maybe in

David Heppner

is this Dave. Theresa,

yes, a great that's So question.

opportunities return around capital high-quality that aligned along assets return to have provide also value gas give nat to NGLs appropriate a sorry. always number the at our capture acceptable into to -- with us and synergies always look we I'm the and ability look our we pursue, mainly returns. finally, integrate as capital, of risk-adjusted is So and one, chains, long-term are crude, and of They course, on strategies also

-- So through it's there, think you I of as stated. M&A lot think that, as you there's really out a

on discipline we're looking at continue strict key and those synergies of We lens integration them, through but look the and tenants, to capital assets high-quality value.

it. of through that's how So kind thinking we're

John Quaid

barges But And we to on John call these to acquire And marine just our had Maybe we singles, Dickinson to some Last this our able move and what MPLX bunts. boats kind a refinery flexibility on some provide fleet expand to maybe examples. increased year, add to year, product are facility to to product. again, of Dickinson near MPCs, moving that to with MPC too. able were acquire they're earlier Theresa, that to again. there it's like even rail we was

that's the value of or find sponsor So with of kind piece interacting we that our those. can again,

it's know we've to Dave chain value said, a I'd that as So -- and are across, and got where assets them operate, we whole say those we that customer too. do needs how run

want examples well. those kind around Mike, you to... did it's I'd So of say as

Michael Hennigan

to going add I'm John's to on comment there. Theresa, Yes.

calls, to where sexy return we investing in no people hear big little for been been on and a our good So get a But projects, smaller -- obviously, like forte. to not have the really that's we capital.

people think the As can come say, And something example, lines, really team asset part out growth, the all large size good say, you deployment. getting assets returns of our us. amounts to along and Shawn's come though where of small getting had and throughputs. returns, it are out Greg's of deploy here opportunities It's of really to magnitude of we sexy added enables pump capital even those to are this base capital record how And look back. number we're we a great is you or an the throughout seems that because of get well, not we and for but some total our and some team to crude those

pattern game the comes down get possible we're And confident the cash of more day, at of flows. is detail. in trying to question end very lowest consistent flow to feel cash we to are of capital generating still little you investors end think appealing. that that's And the your highest generation the at the And that that part out do to me, we of the that's a find Hopefully, the me, deployment. a returns our should day, is answering it bit showing

Theresa Chen

want continues keep cash we over JV to nearly Can It on within build? assume And how ample allocation, medium a the balance on sheet to projects remind and much that the ratable and on is you of of a uses the you your cash just does. to the context sheet, balance finance capital basis? sheet billion. just coverage, Should you have that healthy cash near building the cash best balance us the term? $X What's

John Quaid

we've of right, about question. entity. Theresa, level talked really great kind targeted not I kind of think MPLX, for don't a cash as a stable we've midstream focused something on. It's been

opportunities on grow well. opportunities focused us, for continue cash that other maintain both grow to of flows capital think invest our of and we to how optimize do been flexibility do How that we've and allocation. partnership to the return the as capital for I we in

So a I but we those us are, X flexibility been for levers. like that where of Mike? think it that just spot it's we gives

Michael Hennigan

from the little the price. volatility Yes, add of to on up We wasn't it Theresa, the billion with in a market cash end has our bit I'll let's the What that disappeared out sheet. didn't desire. balance unit is set say, $X

decent red a targeted repurchase have that I We cash amount units. call that's to bar that of

prices up it if just that getting suboptimal? how to interest You the that decent at we've on traded. sometimes, the moment haven't but much we equity deploy, they're been a have tighter that that. argue as ready right we But little here. a not we're time. on Now is for could of rate It's We bit done given surprised it at sit

real us for looking hurting not we're it's And that just So bad. opportunity.

cash call it's have pushed there the ready distribution could of portion back asked see was I term. there's And could. we we we deployed to the same blue what bar, is At a be for opportunistic. if earlier, time, the more? question the that So that long which we that to what Yes, call that's

mean, we're since to show consistently. going We people I financial over going midstream heard to do and it -- just flexibility very come That's And mid-single-digit last me bang We've that. we're that a opinion, then have good not growth. But been it's to we're doing of investors cash going kind of out our do to disappear. really what that that generate do quarters, why it's in to the flows couple not convince XXXX. aspirational. longer-term you've say play. trying is and the high We want We're to

that's you understand, to that manage you of in to financial a we us, the We if good number. to convince do And the see the if trying By deploy we're just more little you growing return, get equity, think a repurchasing want over as your we to that you can row, we'll want capability XX% get we in well. a and to and part what that more that good question, of try market couple in some So decide volatility a distribution. we is long is a term. have invest a power years know

Operator

question come with UBS. Reynolds from will Brian Our next

Brian Reynolds

is to the of follow up large the expectations some on MPLX for which Maybe driver. growth of Permian

outlook as to barrels today kind While 'XX. forecast million we've Permian seen than in from activity of of the the of X year-end through some some late, remains the of pointing Permian day medium-term with per the for weaken intact greater growth

Permian talk the trends over MPLX some if bit but level. and from a can be maybe outlook seeing multiyear it fundamentals you're at MPLX similar would a just macro, could more if whether of little curious kind perspective, you growth talk So great you an

Michael Hennigan

Shawn to good a got little area. and were it's talk BANGL, bit a a or I'm in let let talk we going I'll bit going going the it's Greg question. pipes, whether little him on then I'll in let what about go processing what about in the Wink-to-Webster Brian,

of there's all just ability invest lot you competitors there a for cash trying is Permian, are of same. it own with generate flows It's and that the area us. to an get and to in our in along focus other As we're no secret enable trying do the know, prudently growth the to and

more color give going Shawn, little why a got we So don't on what there? you

Shawn Lyon

Sure. Brian, talked did pipeline BANGL. first expansion as about quarter. that we last that capital-efficient volume we announce that's available, our expansion, the touch And quarter, been this is And the a Really, on come Shawn. on pipeline Last NGL I'll pipeline. for really, has and we've we said would us.

pleased So in we're Sweeny, to really and there hub Sweeny will with that that, the take us Texas.

next Wink-to-Webster, up couple to of as if up. ramp there, at that we're continues And pipeline per to as continue commitments you other the flows cash plan. look years those it ramp over really, the increase seeing The

really again, with those again, strategic we measured, and expectations pleased So it's thought but cash long-haul the to meeting they're partnership. the to they're both steady return And pipelines.

Brian Reynolds

Permian to on gas Great. maybe natural touch And takeaway.

through has larger a but work unique that, balance year. its step relationships available more all processing months than capacity given beyond years to today X there, sheet. MPLX brownfield some is position position MPLX continue different We much few in in call it the But here needed. was a just existing a a is over much ago, to greenfield it, next,

LNG gas of participation now supply or it made year how a in different participated X in takeaway curious from Permian cycles. kind or natural So prior future versus how MPLX's

John Quaid

as team let I'll of start John. and in it's the Brian, well. jump some

right, lines relationship building the Mattehorn you right, the markets. to small resulted the 'XX, project. a is player. to to work, it, pipeline, to Dulce you quarter in with way with been get the expanding online I volume bring really loved Agua coming you the our As that in participation from line, the We're end project, driven there producer -- Whistler a again, the third know, know, have heading your would player think But excited have in to by bigger as those

we've on where it now got expand look continue markets So those base, of end that end or get also a to tail again, there But off well to to more optimize we makes we'll I'd for to other end opportunities customer us platform there. whether, opportunities sense. that the it's say, to continue right and as front pipe look, the more other on can

the So again, remain Permian. really we bullish

Operator

question Jeremy from JPMorgan. next with Tonet Our come will

Unknown Analyst

on This for is [ Ratan ] Jeremy. Reddy

processing think regional renewed flows I have the in Utica and past, guys pipes discussed the potential you plant as improve for Cornerstone. utilization to activity such on

thoughts if just you So updated could any wondering here. provide

Michael Hennigan

Utica excess and in is I'll second. deployed about comment and earlier, a capacity. we have let Like there area, already were we talking an we have Yes. Greg capital do

earlier, there? So don't to a going present you Theresa to the opportunity give Greg, when question asked back we why that little love itself. starts update

Gregory Floerke

an Yes. for rigs Greg. for that western on, the of with good some moved crude of is prices the and window. the the growth levels. light with prices early Utica This condensate to That's better in Utica and sustainable is strong And had more The Marcellus. oil driven the now the area along then portion Marcellus from there

we and are activity acreage starting even there. to the plans. and And leasing area more seeing make producers into new moving So

volumes that have capacity Mike we said, by the the to up processing growth capacity now as in and to pads there So the handle gathering got there already pick see connecting to we're we and some we've system excited essentially grow Utica into start again that. and and can

Unknown Analyst

potential I MPC previously it. midstream a could be discussed Got kind within asset helpful. And That's down. that Capline dropped as of portfolio think the

on just how in drop thoughts So assets. curious could MPC logistics on down remaining interest updated

John Quaid

assets that said, take Oak sheet. I'll whether some sponsor's Capline, other the up We've that. kind John. are on assets, it's we've of look, Gray balance it's got as midstream-type some Yes,

really optionality for now, future. the gives I those we for something some us. burner the can on a it front of that's day, But not save we're kind -- us right out think looking rainy certainly into

Operator

come will with Research. Keith from question next Stanley Our Wolfe

Keith Stanley

follow-up questions. Two

will the considering your value focused you you pipelines? further on Or expand chain think do to First, larger stay plants at strategy and opportunities downstream? all the Permian, processing in are

John Quaid

it. I chain. processing down Keith. participate able question, that, and Great where to there's that to the value said, to been it's be something look, that's might in date, we look takeaway But we'll capacity. on appreciate continue along We've touch side molecule Certainly, to whole more at right, up can and we a and then participating consider take look at. we chain, certainly opportunities the if the like that and

Keith Stanley

Great.

one, flow just of distribution, in growth that the multiyear Second distribution ultimate Is coverage kind cash at underlying to on growth clarify. could the an of long-term to would expect look about just you there metric investors you level business? you think think or help any relative the other

John Quaid

framework. No, talked I -- it's it's I about mean, appreciate it. a haven't great a question, one conceptually it. given we more Keith. We've

You talk cash about a little heard blue flows. and bar Mike bar bit red

where year dig capacity to we again, out results at kind So about we is got distribution an would I look opportunity there which to that to might digits cash really where that want to growing we what's we've head. we in and well, the plus flow continue minus flows cash I And stable and growth. that. the think of should when our or forward keep we that drive ample as as around want mid-single to manage call into understand just think distribution blue year we say, bar

Michael Hennigan

where of yield, in we our think a Keith, ourselves personally or somewhere I we at earlier So the in it's and a and X% getting return offer a is Mike. we should in the from look around opportunity. think kept little if lower as said market what I total a repeat And growth type we're put return us? I going standpoint. they the market but an little look that so, good the invest try standpoint, us range. bit in investor trade around we Again, that yield about I'll then to from trade has a that what investor position it at

So that's term. think it about I way long the

as in of We is be, kind one evaluate cash how to We us. then time be to trade out We the kind distribution of market the to And to need of to going equation. much part where we it time, equation. part that where kind think billion has of that sense grow stated flows sheet. to of manage That of think needs market to we didn't that set not We're the to asked on way out if It's to kind And have of played you. the like of the wasn't cash a for across people out have it. earlier, us. goal. makes $X opposed be balance

sure it's that we is a not repurchasing liked we make flexibility capacity haven't Financial that want on out of just up point. It's bad the deploy as some side, gotten the better the have thing. way more we this we to And said, played I to see have would investors blue until it but like a long-term investment.

Operator

from come Instructions] Wells Fargo. Michael next will with question Our [Operator Blum

Michael Blum

I'm aware NGL announcements out One, I many there's X questions of the you're had been really. pipeline sure quick Permian. just expansion

your second you the can remind the L&S if us is just contracted? expansion segment. question is And -- in So BANGL

XX%. in other the factors big are the a increase big to had really just by driven of there escalators? that increase? that year-over-year You was How tariff average Or inflation pipeline contributing much

John Quaid

questions. over Michael, it to the I'll for Shawn. maybe the and then take thanks pass X first

when you those lines. have same and example, takeaway So look a about that certainly gas see, commitments you're imply of producers liquids to dedications think do have but on gas BANGL, for we not commitments, we natural going can you But line. on to do line, kind natural have right,

leave some It NGL it volume And gives But typical flow question. know turn how to us the commitments. comfort not -- on it Shawn So there. with lines, BANGL. through might committed they're dedications we the for I'll right, it's

Shawn Lyon

happens the so the for Shawn. average tariff, that our at we that's pipeline pipeline question. Michael, due announced helped announced, we rate average just is that look it's that, happens Thanks XX%. It around tariff the if this Really, you FERC that. throughput FERC exactly that most tariff but pipelines on our July use same It's happens to the mix that really the on to just just drive the there. it right be increased X. that the that

to directly directed NPL to The of that FERC something other our FERC are FERC tied EBITDA aware only sure that assets. overall that try piece I is is our of people we tied about the XX% say to there. -- would make It's index

So rate gives the there question a as color as on your hopefully, there. that more far FERC you little

Michael Hennigan

for it's is obviously, costs got And got do those at run opportunities average. do us in as that move to of we and trying is. that the average well. that what it lower is all hitting our Michael, add is little look around I'll than We've we compared we But a costs create us And at where those of impacts Mike. as bit try to that raising say they're industry FERC a way, and definitely value. to we'll for just what impacts, optimize that a and with up are that. look better the we team to to can where to cost be

Operator

Our next question with Citi. from Doug comes Irwin

Douglas Irwin

sheet. balance the on another Just

XX the years. Looking of of at looks earnings like debt couple $X billion in maturing the Slide over It have presentation. you next almost

below on the context the target? the of balance could talk have thinking if you're how already your particularly in securities about about high rate all environment, new curious Just and you here cash the sheet being you leverage in

John Quaid

next so. Thanks John. years $X December the at Doug, about $X.X minus then several the due year got, Yes, billion, for $X.XXX billion what, billion or we've and question. it's plus or next

how to thoughtful we got last do rates spot our refinancing we we've the seen flexibility some I'd the as thoughtful you've we'll refinance. the time where the versus gives not about but to past, there. which say And be on our about on, are today think did. that. be balance flexibility some in recent we've as financial got to Certainly, given with I us cash right Again, you're well, to look us it's only parent revolver sheet, look

Douglas Irwin

Got and funding kind selected the about for was hydrogen just potential see being talk And that talked last potential it. MPC I with And And think at came of was X hydrogen. in that could is here Wondering MPLX's negotiations. that about I up quarter you involved you X least hubs opportunity. of then opportunities think MPC. growth just role what maybe help frame you if

David Heppner

this is Dave. Doug, Yes,

are $X in one So X you the of involved Heartland. billion, Appalachia MPC/MPLX received hubs of funding in Actually, yes, X that X in DOE at and is those, correct. the hydrogen

would around it's rather the constructing around hydrogen and storage hydrogen facilities. of transportation COX That MPLX be going specifically more more production so be side to involvement, than MPC the the equation. on and And of

journey leave project. I'll funds secure But these big projects the piece last agreements DOE, just DOE. to The secure design construct and down have a long you with the and get It's DOE with, a of first the milestone, It's good that's while step. step all. the from first funding, to received first the narrowed the in that's

excited of So the year. about we'll talk more projects. up. these first on we're say, I into I funding bringing X those that step you But like next And appreciate on receiving

Operator

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

Neal Dingmann

you as be thought you on this like my thoughts. good today initially outlook around at long-term the of your talked You've the as would even or just G&P customers, the slightly production all just would first around it better is for activity you expected. maybe beginning it that maybe year it general than would sounds consider producer be question, wondering I'm

Just wondering sort of thoughts. general

Gregory Floerke

about that this prices a NGLs. at say built I of around were were, lot gas And some and Greg. that. forecast on of Neal, they is where ago the expectation a would you if was year double look

As growth we pads of see rig slowing terms came on. new of the some did and bringing in activity down, prices

maybe would plants what where come that online still expected shows of yes, LNG So think growth are still have next beyond bullish expect. think but on producers very I -- the the even to we I going going years. that with are you the over changes, is was based couple are that, people pricing pricing seeing on been that that And

have prices even are drilling prices drilling And it more supportive. -- volume in lower costs NGL been longer have level some really, That laterals. production the keeps are. the come faster below brings cost and the producers where of the down as production and

to low most single-digit, been So across the basins, to good yes, seen single-digit really of that's and medium have growth we see.

Neal Dingmann

maybe maybe [ specifically, efficiencies current that sounds would you capital just program, that ] expect my detail. you from level? like around declined then the capital given going maintenance slightly just all just XXX great forward, That's And second, it your see, continuous

John Quaid

in is capital, of Neal, assets. it's that I'd we don't and step John. I our about maintenance to right? maintain change capital the the safety first allocation making that of think sure investing kind framework, expect know When we're our reliability

expect don't know a I'd that I So change there.

Kristina Kazarian

All clarification additional right, us would to take have Thank nobody any discussed or the questions members in of Sheila. you you. your the will Relations you your if today, else Well, today, and Should you Investor for in interest on available there's you like call. of the team queue, thank be joining thank topics MPLX. for

Operator

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

may time. disconnect You this at

MPLX (MPLX) 31 Oct 232023 Q3 Earnings call transcript