Q2 2024 MPLX LP Earnings Call

Sheila: Welcome to the MPLX second quarter 2024 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. Press star 1 on your touchtone phone to enter the queue.

Operator: Welcome to the MPOX second quarter 2020-24 earnings call.

Sheila: Welcome to the MPLX second quarter 2024 earnings call. My name is Sheila and I will be your operator for today's call.

Operator: 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.

Operator: Later, we will conduct a question-and-answer session. Press star one on your touchtone phone to enter the queue.

At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Press star 1 on your touch-tone phone to enter the queue. Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Sheila: Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Operator: Please note that this conference is being recorded.

Kristina Kazarian: I will now turn the call over to Kristina Kazarian. Kristina, you may begin. Good morning and welcome to MPOX's second quarter 2020-24 earnings conference call.

Kristina Kazarian: Good morning, and welcome to MPLX's second quarter 2024 earnings conference call. The slides that accompany this call can be found on our website at MPLX.com under the Investor tab. Joining me on the call today are Maryann Mannen, President and CEO; Chris Hagedorn, CFO, and other members of the executive team.

Kristina Kazarian: Good morning and welcome to MPLX's second quarter 2024 earnings conference call. The slides that accompany this call can be found on our website at MPLX.com under the Investor tab.

Kristina Kazarian: The slide that a company is called can be found on our website at MPOX.com, under the Investor tab. Joining me on the call today are Marianne Mannen, President and CEO, Chris Haggenhorn, CFO, and other members of the executive team.

Speaker Change: Joining me on the call today are Mary Ann Manin, President and CEO , Chris Hagedorn, CFO , and other members of the executive team.

Kristina Kazarian: We invite you to read the safe harbor statements and non-GAAP disclaimer on slide two. It's a reminder that we will be making forward-looking statements during the call and during the question and answer session that follows. Factors that could cause actual results to differ are included there as well as in our filings with the SEC.

Kristina Kazarian: We invite you to read the say-parber statements and non-GAAP disclaimer on slide two. It's a reminder that we will be making forward-looking statements during the call and during the question-and-answer session that follows. Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there, as well as in our filing for the SEC.

We invite you to read the Safe Harbor Statements and non-GAAP disclaimer on slide 2. It's a reminder that we will be making forward-looking statements during the call and during the question-and-answer session that follows.

Speaker Change: Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there as well as in our filings with the SEC. With that, I will turn the call over to Mary Ann.

Kristina Kazarian: With that, I will turn the call over to Maryann. Thanks, Kristina.

Maryann Mannen: With that, I will turn the call over to Marianne. Thanks, Kristina. Good morning, and thank you for joining our call.

Maryann Mannen: Thanks, Kristina, good morning, and thank you for joining our call. I want to take a moment to recognize Mike Hennigan's leadership as CEO of MPLX for nearly five years. Mike's record of accomplishment in both the midstream and downstream industries has been a tremendous value to the partnership. During his tenure, we have delivered annual EBITDA and DCF growth of over a billion dollars, positioning us with financial flexibility to execute our growth strategies and deliver on our commitment to return capital.

Mary Ann: Thanks, Kristina, good morning, and thank you for joining our call.

Maryann Mannen: I want to take a moment to recognize Mike Henigan's leadership as CEO of MPLX for nearly five years. Mike's record of accomplishment in both a midstream and downstream industries has been a tremendous value to the partnership. During his tenure, we have delivered annual EBITDA and DCF growth of over $1 billion, positioning us with financial flexibility to execute our growth strategies and deliver on our commitment to return capital. We are fortunate to have Mike as our executive chairman of the MPLX for. In the second quarter, adjusted EBITDA grew 8% and distributable cash flow grew 7% year over year.

Speaker Change: I want to take a moment to recognize Mike Hennigan's leadership as CEO of MPLX for nearly five years.

Speaker Change: Mike's record of accomplishment in both the midstream and downstream industries has been a tremendous value to the partnership.

Mary Ann: During his tenure, we have delivered annual EBITDA and DCF growth of over a billion dollars, positioning us with financial flexibility to execute our growth strategies and deliver on our commitment to return capital.

Maryann Mannen: We are fortunate to have Mike as our Executive Chairman of the MPLX Board. Last week, MPLX and its partners reached FID on the Blackcomb Natural Gas Pipeline, a 2.5 BCF pipeline connecting supply in the Permian to domestic and export markets along the Gulf Coast. This project offers a compelling value proposition while providing shippers with flexible market access. Blackcomb is expected to be in service in the second half of 2026.

Speaker Change: We are fortunate to have Mike as our Executive Chairman of the MPLX Board.

Speaker Change: In the second quarter, adjusted EBITDA grew 8% and distributable cash flow grew 7% year-over-year.

Maryann Mannen: The growth of MPLX is cash flow supported. The return of $949 million to unit holders reflects our commitment to return a capital. Producer activity remains robust across the Marcellus, Utica, and Permian Basins. In the Northeast, longer lateral are resulting in higher volumes. Volume growth continues in both the Marcellus and Utica, where producers are targeting economically advantaged liquids-rich acreage. The Permian Basin has some of the lowest crude break-evens in the country. Production growth in the region continues to create opportunities for our well-head to water strategy across crude natural gas and NGOs. In the second quarter, MPLX closed the Whiplier transactions.

Speaker Change: The growth of MPLX's cash flow supported the return of $949 million to unit holders, reflecting our commitment to return to capital. Producer activity remains robust across the Marcellus, Utica, and Permian basins.

Speaker Change: In the Northeast, longer laterals are resulting in higher volumes.

Speaker Change: Volume growth continues in both the Marcellus and Utica where producers are targeting economically advantaged liquids rich acreage.

Speaker Change: The Permian Basin has some of the lowest crude break-evens in the country.

Speaker Change: Production growth in the region continues to create opportunities for our wellhead-to-water strategy across crude, natural gas, and NGLs. In the second quarter, MPLX closed the Whistler transaction.

Maryann Mannen: Last week, MPLX and its partners reached FID of the black comb natural gas pipeline, a 2.5 BCF pipeline connecting supply and the Permian to domestic and export markets along the Gulf Coast. This project offers a compelling value proposition while providing shippers with flexible market access. Black Comb is expected to be in service in the second half of 2026. This is another step in leveraging this platform for growth. MPLX has also acquired additional interest in the Bangle NGO pipeline, bringing our ownership to 45%. Bangle is a strategic asset within our NGO value chain. Progress continues on its expanse into 250,000 barrels per day, which has expected to be completed in the first quarter of 2025.

Speaker Change: Last week, MPLX and its partners reached FID of the Blackcomb Natural Gas Pipeline, a 2.5 BCF pipeline connecting supply in the Permian to domestic and export markets along the Gulf Coast.

Speaker Change: This project offers a compelling value proposition while providing shippers with flexible market access. Blackcomb is expected to be in service in the second half of 2026.

Speaker Change: This is another step in leveraging this platform for growth.

Speaker Change: MPLX has also acquired additional interest in the Bangal NGL pipeline, bringing our ownership to 45%.

Speaker Change: Bangle is a strategic asset within our NGL value chain. Progress continues on its expansion to 250,000 barrels per day, which is expected to be completed in the first quarter of 2025.

Maryann Mannen: We believe this transaction is immediately accretive and should generate a mid-teens return consistent with our capital deployment objectives. We are confident in the future growth potential of this value chain. We also acquired an additional interest in the Wing to Webster crude oil pipeline. These recent transactions are a continuation of our strategic approach to growing cash flows. Over the last three years, MPLX has led peers on return on invested capital. Distributions remain our primary method of return, and we are a return on and a return of capital business.

Speaker Change: We believe this transaction is immediately accretive and should generate a mid-teens return consistent with our capital deployment objectives.

Speaker Change: We are confident in the future growth potential of this value chain. We also acquired an additional interest in the Wing-to-Webster crude oil pipeline. These recent transactions are a continuation of our strategic approach to growing cash flows.

Speaker Change: Over the last three years, MPLX has led peers on return on invested capital, distributions remain our primary method of return, and we are a return on and a return of capital business. Now let me turn the call over to Chris to discuss our growth as well as operational and financial results for the quarter.

Chris Haggenhorn: Now let me turn the call over to Chris to discuss our growth as well as operational and financial results for the quarter. Thanks, Maryann. MPLX is progressing its 2024 capital program, with spending expected at $1.1 billion. Anchored in the Permian and Marcellus Basins, our integrated footprint positions the partnership with opportunities to grow our natural gas and NGL assets. In the Permian, we are delivering growth to organic projects, investments in our Permian joint ventures, and bolt-on opportunities. In the L&S segment, the ADCC natural gas pipeline is placed in the service early in the third quarter. In the GMP segment, we are bringing new gas processing plants online to meet increasing customer demand.

Chris: Thanks Marianne. MPLX is progressing its 2024 capital program with spending expected at 1.1 billion dollars. Anchored in the Permian and Marcellus basins, our integrated footprint positions the partnership with opportunities to grow our natural gas and NGL assets.

Maryann Mannen: Anchored in the Permian and Marcellus basins, our integrated footprint positions the partnership with opportunities to grow our natural gas and NGL assets. The Preakness 2 gas processing plant began operations in July, and we are progressing the Secretariat processing plant, which is expected to be online in the second half of 2025.

Chris Hagedorn: In the Permian, we are delivering growth through organic projects, investments in our Permian joint ventures, and bolt-on opportunities.

Speaker Change: In the L&S segment, the ADCC natural gas pipeline was placed into service early in the third quarter.

Speaker Change: In the GMP segment, we are bringing new gas processing plants online to meet increasing customer demand.

Chris Haggenhorn: The Precness 2 gas processing plant began operations in July, and we are progressing the Secretariat Processing Plant, which you can expect it to be online in the second half of 2025. One operational, our total processing capacity in the Delaware Basin will be approximately 1.4 billion cubic feet per day.

Speaker Change: The Preakness 2 gas processing plant began operations in July , and we are progressing the Secretariat processing plant, which is expected to be online in the second half of 2025. Once operational, our total processing capacity in the Delaware Basin will be approximately 1.4 billion cubic feet per day.

Chris Haggenhorn: The remainder of our capital plant is mostly comprised of smaller, higher return investments, targeted expansion or debottling of existing assets, and projects related to planned increases in producer activity.

Chris: The remainder of our capital plan is mostly comprised of smaller, higher-return investments targeted at expansion or debottlenecking of existing assets, and projects related to planned increases in producer activity.

Chris Haggenhorn: Slide 5 outlines the second quarter operational and financial performance highlights for a logistics and storage segment. Segment adjusted EBIT increased $107 million when compared to second quarter 2023, primarily driven by higher rates, including growth from equity affiliates. Pipeline volumes were up year-to-year, primarily due to the effects of refinery maintenance in the prior year and growth projects contributing additional volumes in the current year.

Speaker Change: Slide 5 outlines the second quarter operational and financial performance highlights for logistics and storage segment.

Maryann Mannen: Segment-adjusted EBIT increased $107 million when compared to second quarter 2023, primarily driven by higher rates, including growth from equity affiliates. Processing volumes were up 7% year-over-year, primarily from higher volumes in the Marcellus and Utica, as well as the Rocky. Moving to our second quarter financial highlights, on slide seven, total adjusted EBIT of $1.65 billion and distributable cash flow of $1.4 billion increased 8% and 7%, respectively, from the prior year. MPLX returned $949 million to unit holders through $874 million in distributions and $75 million in unit repurchase.

Speaker Change: Segment-adjusted EBIT increased $107 million when compared to second quarter 2023, primarily driven by higher rates, including growth from equity affiliates.

Speaker Change: Pipeline volumes were up year over year, primarily due to the effects of refinery maintenance in the prior year and growth projects contributing additional volumes in the current year.

Chris Haggenhorn: Moving to our gathering and processing segment highlights on slide 6, the GMP segment adjusted EBIT increased $15 million compared to second quarter 2023. The second quarter 2023 included a $13 million gain on sale of assets. Taking this into account, GMP segment EBIT increased 6% year-over-year. This is driven by increased volumes, including contributions from recent acquisitions, largely offset by higher operating expenses in the second quarter of 2024. Total gathered volumes were up 7% year-over-year, primarily due to increased drilling and production in the Marcellus, and the addition of dry gas volumes from our recently acquired Utica assets.

Speaker Change: Moving to our gathering and processing segment highlights on slide six.

Speaker Change: The GMP segment adjusted EBIT to increase $15 million compared to second quarter 2023. The second quarter of 2023 included a $13 million gain on sale of assets.

Speaker Change: Taking this into account, GMP segment EBITDA increased 6% year-over-year. This is driven by increased volumes, including contributions from recent acquisitions, largely offset by higher operating expenses in the second quarter of 2024.

Speaker Change: Total gathered volumes were up 7% year over year, primarily due to increased drilling and production in the Marcellus, and the addition of dry gas volumes from our recently acquired Utica assets.

Chris Haggenhorn: Processing volumes were up 7% year-over-year, primarily from higher volumes in the Marcellus and Utica, as well as the Rockies. Southwest volumes declined, as growth in the Permian was more than offset by lower volumes in Oklahoma due to recent reduced producer activity. In the Utica, processing volumes have increased 285 million cubic feet per day, on 52% or 52%. Since the second quarter of 2023, highlighting the value producers are seeing in the liquid's rich acreage. Volumes on the Harman Creek 2 and Precness 2 processing plants are increasing, with an expected ramp profile of up to 12 months.

Speaker Change: Processing volumes were up 7% year-over-year, primarily from higher volumes in the Marcellus and Utica, as well as the Rockies.

Speaker Change: Southwest volumes declined as growth in the Permian was more than offset by lower volumes in Oklahoma due to recent reduced producer activity.

Speaker Change: In the Utica, processing volumes have increased 285 million cubic feet per day, or 52%.

Speaker Change: since the second quarter of 2023. Highlighting the value producers are seeing in the liquids-rich acreage.

Speaker Change: Volumes on the Harmon Creek 2 and Preakness 2 processing plants are increasing, with an expected ramp profile of up to 12 months.

Chris Haggenhorn: Focusing on the Marcellus, by far our largest basin of GMP operations, we saw year-a-year volume increases of 15% for gathering and 5% for processing, driven by increased drilling and production growth. Fractionation volumes grew 10% due to higher ethane recoveries and higher processed volumes. We are encouraged by strong in-basin demand for ethane, as well as the start of the Mountain Valley Pipeline. As the origin of MVP is connected to our mobility processing plant, its operations are positive for MPLX and its producer customers.

Speaker Change: Focusing on the Marcellus, by far our largest basin of GMP operations, we saw year-over-year volume increases of 15% for gathering and 5% for processing, driven by increased drilling and production growth.

Speaker Change: Fractionation volumes grew 10% due to higher ethane recoveries and higher processed volumes.

Speaker Change: We are encouraged by strong in-basin demand for ethane, as well as the start-up of the Mountain Valley pipeline. As the origin of MVP is connected to our Mobley processing plant, its operations are positive for MPLX and its producer customers.

Chris Haggenhorn: We continue to monitor the development of data centers in the Northeast and Southwest. As demand increases for natural gas-powered electricity, we will support the development plans of our producer customers.

Speaker Change: We continue to monitor the development of data centers in the Northeast and Southwest. As demand increases for natural gas powered electricity, we will support the development plans of our producer customers.

Chris Haggenhorn: Moving to our second quarter financial highlights on slide 7, total adjustity a bit of $1.65 billion and distributable cash flow of $1.4 billion increased 8% and 7%, respectively, from the prior year. Some water prior years in the second quarter project-related expenses were up approximately $30 million compared to the first quarter due to the seasonality of the spend. MPLX returned to $940 million to unit holders through $874 million in distributions and $75 million in unit repurchases. During the second quarter of MPLX, issued $1.65 billion in 10-year senior notes, the proceeds of which we expect to use to retire senior notes due in December 2024 and February 2025.

Speaker Change: Moving to our second quarter financial highlights on slide 7, total adjusted EBIT of $1.65 billion and distributable cash flow of $1.4 billion increased 8% and 7% respectively from the prior year.

Speaker Change: Similar to prior years, in the second quarter, project-related expenses were up approximately $30 million compared to the first quarter due to the seasonality of this spend.

Speaker Change: MPLX returned $949 million to unit holders through $874 million in distributions and $75 million in unit repurchases.

Speaker Change: During the second quarter, MPLX issued $1.65 billion in 10-year senior notes, the proceeds of which we expect to use to retire senior notes due in December 2024 and February 2025.

Chris Haggenhorn: MPLX ended the quarter with a cash balance of $2.5 billion, and leverage was 3.4 times. Net of cash leverage was 3.1 times.

Speaker Change: MPLX ended the quarter with a cash balance of $2.5 billion, and leverage was 3.4 times.

Maryann Mannen: Now let me hand it back to Marianne for some final thoughts. Thanks, Chris. We have delivered over 7% DCF growth on a three-year compound annual basis. We are executing our strategy in advancing growth opportunities across our value chains. In the Permian, we continue to see growth opportunities on our natural gas, NGL, and crude value chains. In the Marcellus in Udica, producer activity remains robust, supporting growth of our gathering and processing footprint. By advancing these high return growth projects, we expect to continue to grow our cash flow. MPLX is a strategic investment for MPC. As they each pursue growth opportunities, the value of this strategic relationship is further enhanced.

Speaker Change: Net of cash leveraged was 3.1 times.

Speaker Change: Now let me hand it back to Mary Ann for some final thoughts.

Mary Ann: Thanks, Chris.

Mary Ann: We have delivered over 7% DCF growth on a three-year compound annual basis.

Mary Ann: We are executing our strategy and advancing growth opportunities across our value chains.

Mary Ann: By advancing these high return growth projects, we expect to continue to grow our cash flow.

Speaker Change: MPLX is a strategic investment for MPC. As they each pursue growth opportunities, the value of this strategic relationship is further enhanced.

Maryann Mannen: Based on the growth of our cash flows, we have been able to increase our distribution by 10% in each of the last two years. Strong coverage, low leverage, and growing cash flows provide MPLX financial flexibility, placing us in an excellent position to grow our distribution in the future.

Maryann Mannen: Based on the growth of our cash flows, we have been able to increase our distribution by 10% in each of the last two years. Now, let me turn the call back over to Kristina.

Kristina Kazarian: Now let me turn the call back over to Christina. Thanks, Marianne. As we open the call for questions, we ask that you limit yourself to one question plus a follow-up. We may reprompt for additional questions as time permits. With that, Sheila, we're ready for the question.

Kristina Kazarian: Now let me turn the call back over to Kristina. Thanks, Mary Ann. As we open the call for questions, we ask that you limit yourself to one question plus a follow-up. We may re-prompt for additional questions as time permits. With that, Sheila, we're ready for the questions.

Operator: Thank you.

Operator: We will now begin the question and answer session. If you have a question, please press star, then one on your touchtone phone. If you wish to be removed from the queue, please press star, then too. If you are using a speaker phone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star, then one on your touchtone phone.

Sheila: Thank you. We will now begin the question and answer session. If you have a question, please press star then 1 on your touchtone phone.

Speaker Change: If you wish to be removed from the queue, please press star then 2. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star then 1 on your touchtone phone.

John Mackay: Our first question will come from John Mackay with Goldman Sachs. Your line is open. Hey, thanks, Team. Good morning, and thanks again, Maryann.

Speaker Change: Our first question will come from John Mackay with Goldman Sachs. Your line is open.

Maryann Mannen: I want to start maybe high level on the strategic front. I don't know a lot of bolt-ons over the last year. I should think if you put this in the context of a billion dollars of organic spend you do on average. How should we think about that level of inorganic spend going forward and how that fits into your general mid-single digit growth pace?

John McKay: Hey, thanks team. Good morning and congrats again, Marianne. I wanted to start maybe high level on the strategic front. Done a lot of bolt-ons over the last year.

Maryann Mannen: Yeah, good morning, John. Thanks. So, you know, a couple of things that we think about our strategy going forward, and as you shared here, about a billion dollars annually in our capital programs. But, you know, for the last few years, we've also been filling out underutilized capacity and investing in our JVs as well. We continue to see these as inorganic opportunities and organic opportunities for us to meet our goal of mid-single digit growth. You know, if you look over the last year or so, we've done transactions in the Permian with our Tornado transaction or Tornado, excuse me.

Marianne: Yeah, good morning, John . Thanks.

Speaker Change: So, you know, a couple of things as we think about our strategy going forward, and as you shared here, about a billion dollars annually, you know, in our capital programs.

Speaker Change: But, you know, for the last few years, we've also been filling out underutilized capacity and investing in our JVs as well. We continue to see these as inorganic opportunities and organic opportunities.

Maryann Mannen: Utica, the Summit JV, by-out, are increased bangle ownership, expansion of the Whistler platform with Rio Bravo. So, you know, we continue to execute the growth strategy, reinvest in the business. You know, what we think to be a capital efficient manner, you know, will ensure that we are employing strict capital discipline, regardless of whether it's organic, inorganic, or focused on our JVs, with the full intent of being able to return capital to unit holders.

Speaker Change: of the Whistler platform with Rio Bravo.

Speaker Change: Reinvest in the business in what we think to be a capital-efficient manner. We'll ensure that we are employing strict capital discipline regardless of whether it's organic, inorganic, or focused on our JVs.

Speaker Change: with the full intent of being able to return capital to unit holders.

John Mackay: All right, thanks for that. Maybe pivoting. You got to touch on this a little bit in the prepared remarks.

Speaker Change: All right, thanks for that. Maybe pivoting, you guys touched on this a little bit in the prepared remarks, but.

John Mackay: But, what are we going to go around the forward and maybe you got to touch a bunch of different basins on the TNP side? Would love to see here how volumes are trending, maybe versus your expectations earlier in the year.

Speaker Change: I'm wondering if we can just go around the board and maybe you guys touch a bunch of different basins on the GNP side. We'd love just to hear how volumes are trending maybe versus your expectations earlier in the year, and if we look across the footprint more broadly in a maybe better gas macro in 2025.

John Mackay: And if we look across the footprint more broadly, and maybe better gas macro in 25, when you'd expect to see that more fulfillment functions start to pick up.

John Mackay: Thank you.

Speaker Change: when you'd expect to see that more fulsome inflection start to pick up. Thanks.

Gregory Floerke: Good morning, John. This is Greg. You know, if you look at the gas prices, low gas price environment versus liquids, particularly crude in jail. And that is, has led to some announced curtailments, particularly the dry lean areas, northeast, Marcellus, in particular in the Haynesville. You know, the areas that we're in, we're really focused on processing in rich gas areas. With some dry gas, but in the areas where we're dry and lean gas production is an our footprint in the unit. For example, you know, producers tend to have takeaway commitments on the risk of gas pipelines and also, you know, in some cases, hedging strategies; these contributed to drive production.

Greg: Good morning, John . This is Greg.

Speaker Change: You know, if you look at the gas prices, low gas price environment versus liquids, particularly crude and NGL, and that has led to some announced curtailments, particularly in the dry lean areas northeast.

Speaker Change: commitments on the residue gas pipelines and also, you know, in some cases, hedging strategies

Gregory Floerke: So we're really in our footprint, not seeing that impact. What we are continuing to see is more rigs move from the dry gas areas into the rich gas and crude areas. And the crude production comes with associated gas that's particularly rich in gels. So we really see high in gels content with that gas, and we're taking advantage in places like the Permian. Those Chris mentioned with growth, and Marianne with Prickness 2 coming online and also in the Marcellus super rich area, which is by far our largest, almost six BC F a day of processing there.

Speaker Change: Really in our footprint not seeing that impact. What we are continuing to see is more rigs move from the dry gas areas into the rich gas and crude areas.

Speaker Change: And the crude production comes with associated gas, it's particularly rich in NGLs.

Chris Hagedorn: So we really see high NGL content with that gas, and we're taking advantage in places like the Permian, as Chris mentioned, with growth, and Marianne with Preakness 2 coming online, and also in the Marcellus super-rich area.

Gregory Floerke: And we just added another plant. So we're seeing growth in those in those liquid rich areas. And that's great, but you know, one area that's not new because we built it out over 10 years ago.

Speaker Change: which is by far our largest, almost 6 BCF a day of processing there, and we just added another plant. So, we're seeing growth in those liquid-rich areas.

Gregory Floerke: But it has been overlooked a bit; it is the Utica, and we're really excited about what's going on there now. Not only are we seeing existing customers move rigs over into the condensate rich gas and even now the light the light oil window. And that is unique to the Utica beyond other areas with rich gases that light oil window. So we're not only seeing existing customers move in there, but we're also seeing some new handful of new producers move in and buy up acreage. So you have an untapped resource there, which is really a light crude oil resource.

Speaker Change: Not only are we seeing existing customers move rigs over into the condensate...

Speaker Change: rich gas, and even now the light oil window, and that is unique to the Utica.

Speaker Change: beyond other areas with rich gases, that light oil window. So we're not only seeing existing customers move in there, but we're also seeing a handful of new producers move in and buy up acreage.

Speaker Change: So you have an untapped

Gregory Floerke: So it is unique to the northeast and it's really driving a lot of activity, and we're positioned with surplus pre-built. Processing gathering and fractionation capacity both deepinization and C3 plus fractionation capacity. So we're really excited about this opportunity to use that existing capacity. And overall now we're seeing increasing rig counts in the Utica.

Speaker Change: So, it's unique to the Northeast, and it's really driving a lot of activity, and we're positioned with surplus, pre-built.

Speaker Change: processing, gathering, and fractionation capacity, both deethanization and C3 plus fractionation capacity. So we're really excited about this opportunity to use that existing capacity. And overall now we're seeing increasing rig counts in the Utica.

Jeremy Tonet: Thank you very much, Jeremy Tonet. Thanks, John.

Speaker Change: I appreciate the details, Greg. Thanks, everyone.

Operator: Thank you.

Manav Gupta: Next, we will hear from Manav Gupta with UBS. You may proceed. Comrades, many are on a very strong start on both MPLX and MPC side. My first question is, can we get a little more detailed on the blank comb pipeline? It looks like a very interesting project. So, what are the benefits of it? How do you see this as developing if you could give us some more details on this project?

John McKay: Thanks, John .

Speaker Change: Congrats, Manav, on a very strong start on both MPLX and MPC side. My first question is, can we get a little more details on the Blanco pipeline? It looks like a very interesting project, so what are the benefits of it? How do you see this as developing? If you could give us some more details on this project.

Manav Gupta: Good morning, Manav. Thank you. Yes. Happy to do that.

Maryann Mannen: I'll give Dave the opportunity to share some of the specifics around Black Home. But, you know, as you know, our well-head water strategy continues to be an important piece of the long-term growth of MPLX. Over the last several quarters, we've been taking steps. You know the Whistler transaction gave us the access through the JV for the Rio Bravo pipeline. Black Home just announced FID. We think this is another important piece that connects the Permian Basin to Aguadolche in South Texas. So, again, hopefully what we're demonstrating here is we are able to continue to put together key elements of the strategy that will allow us to continue this mid-single digit growth that we've done over the last few years and give us an outstanding platform for that well-head to water strategy.

Speaker Change: Good morning, Manav. Thank you. Yes, happy to do that. I'll give Dave the opportunity to share some of the specifics around Black Home, but...

Dave: You know, as you know, our wellhead to water strategy continues to be an important piece of the long-term growth of MPLX.

Speaker Change: Over the last several quarters, we've been taking steps.

Speaker Change: You know the Whistler transaction. It gave us the...

Speaker Change: access through the JV for the Rio Bravo pipeline. Blackcomb just announced FID. We think this is another important piece as it connects the Permian Basin to Agua Dulce in South Texas. So again, hopefully what we're demonstrating here is we are able to continue to put together

Speaker Change: key elements of the strategy that will allow us to continue this mid-single-digit growth that we've done over the last few years.

David Heppner: I'm going to pass it to Dave and let him give you a little more color specifically on Black Home. Thanks, Marianne. When you think of Black Home and Marianne touched on it, you know, I think the best way to think about Black Home is just the continued evolution of our Nat Gas well-head water strategy. And it's all, you know, foundationally built on the Whistler relationship. So, I think of the Whistler that the first of the pipes coming out of the basin. And, you know, as you can see with the continued growth in the Permian, which we believe, along with everybody else, has got a lot of runway incremental capacity to come out of basin, was necessary, which is the Black Home.

Speaker Change: and give us an outstanding platform for that wellhead-to-water strategy. I'm going to pass it to Dave and let him give you a little more color specifically on Blackcomb.

Kristina Kazarian: Thanks, Maryann. When you think of black comb, and Maryann touched on it, you know... I think the best way to think about Blackcomb is just the continued evolution of our NATGAS wellhead to water strategy, and it's all foundationally built on the Whistler relationship. So you think of Whistler, the first of the pipes coming out of the basin, and as you can see with the continued growth in the Permian, which we believe, along with everybody else, it's got a lot of runway, incremental capacity to come out of the basin was necessary, which is Blackcomb.

Dave: Thanks Marianne. When you think of Blackcomb, and Marianne touched on it, you know...

Dave: I think the best way to think about Blackcomb, it's just the continued evolution of our NatGas.

Dave: you know, wellhead to water strategy, and it's all...

Dave: You know, foundationally built on the Whistler relationship, so you think of the Whistler.

Dave: the first of the pipes coming out of the basin.

Dave: and...

Dave: You know, as you can see, with the continued growth in the Permian, which we believe, along with everybody else, has got a lot of runway, incremental capacity to come out of the basin was necessary, which is the blackcomb.

David Heppner: But Black Home is also, you know, just a foundation to get to the Gulf Coast. So, whether you think of the remaining links of those value chains, ADCC, which was came in service, the real Bravo pipeline, getting the LNG facilities. It's all part of our, you know, long-term strategy of that integrated value chain. And we're excited about Black Home because of not only, you know, the capacity and the value chain build up, but the partners that we have in there. And so, I think you'll continue to see those value chains grow as the basins continues as capacity, the export, and the demand down on the Gulf Coast.

Kristina Kazarian: But Blackcomb's also just a foundation to get to the Gulf Coast. So whether you think the remaining links of those value chains, ADCC, which just came into service, the Rio Bravo pipeline, getting the LNG facilities, it's all part of our long-term strategy of that integrated value chain. And we're excited about Blackcomb because of not only the capacity and the value chain buildup, but the partners that we have there. And so I think you'll continue to see those value chains grow as the basins continue to have capacity to export and the demand down in the Gulf Coast. So I look forward to continuing to give you updates.

David Heppner: So, look forward to continuing to give you updates.

Dave: Continued has capacity to export and the demand down in the Gulf Coast, so look forward to continue to give you updates.

Manav Gupta: Perfect. My quick follow-up here is, you know, adjusted free cash law after distribution was 574.

Maryann Mannen: So, the cash is building. Any thing you want to say on the uses of this cash as it continues to grow. And then I'll turn it over. Thank you.

Maryann Mannen: Thanks, Manav. Yeah, so, you know, one of the things that we think we've continued to build over the last several quarters is our financial flexibility. You know, I talk about a return on and a return of capital business. As I mentioned, we increased our distribution 10% in the last two years, and that continues to be a primary source of our ability to return capital.

Dave: is our financial flexibility, you know, I talk about a return on and a return of capital business.

Dave: As I mentioned, we increased our distribution 10% in the last two years, and that continues to be a primary source of our ability to return capital.

Chris Haggenhorn: Second, you know, you've seen we did do share repurchase again this quarter when we believe this equity is undervalued and certainly another mechanism for the return of capital growth. As I, you know, as we've been talking about here, putting that capital to work in these high return projects, particularly anchored in the Marcellus and the Permian with the intent of growing those cash distribution. In the future, and that's certainly another use there, so that financial flexibility we think is critically important to allow us to do that.

Dave: Second, you know, you've seen we did do share repurchase again this quarter. We believe this equity is undervalued and certainly another mechanism for the return of capital.

Dave: Growth, as we've been talking about here, putting that capital to work in these high-return projects, particularly anchored in the Marcellus and the Permian.

Chris Haggenhorn: I'm going to pass it to Chris and allow him to share a little bit more on some of the specifics of the cash balance. Thanks, Maryann. Yeah, Manav, what I would highlight to folks is, at the end of the quarter, as you've seen, we have about $2.5 billion of cash on the balance sheet.

Marianne: Thanks Marianne.

Chris Haggenhorn: So just reminding of that, you know, that big number we have, maturities coming up in December of 2024 and February of 2025 that we'll pay off with that cash balance or some of that cash balance. As Maryann articulated, we are excited about the continued growth in our adjusted free cash flow after distributions. And as that cash builds, it is, again, returning it to our capital allocation framework of return of and return on capital.

Speaker Change: So just reminding of that big number, we have maturities coming up in December of 2024 and February of 2025 that will pay off with that cash balance or some of that cash balance.

Speaker Change: As Marianne articulated, we are excited about the continued growth in our adjusted free cash flow after distributions. And as that cash builds, it is, again, returning it to our capital allocation framework of return of and return on capital.

Jeremy Tonet: Our next question will come from Jeremy Taneth with JP Morgan. Your line is open. Hey, good morning.

Speaker Change: Our next question will come from Jeremy Tonet with J.P. Morgan. Your line is open.

Jeremy Tonet: This is Rothen Readyon for Jeremy. I wanted to follow up on some of the previous comments and appreciate that that historical mid single digit EBIT of growth is not future guidance. But given a number of the smaller, creative deals that MPLX has participated in, could you frame up how we might think about future growth above that figure and just any potential there?

Jeremy Tenet: I wanted to follow up on some of the previous comments and appreciate that that historical mid-single-digit EBITDA growth is not future guidance, but given a number of the smaller creative deals that MPLX has participated in, could you frame up how we might think about future growth above that figure and just any potential there?

Maryann Mannen: Certainly, good morning. So, as you know, we've targeted, and you said that it is never necessarily been indicative of guidance. But you know, if you look over the last three years, compound annual growth in our adjusted EBIT, you know, in excess of 6%, you know, distributed cash flows almost 8% in our quarterly distribution growth 7. So, you know, it has certainly been our target. But if we are able to execute in a similar fashion, you know, I mentioned earlier some of the key transactions that we have worked on in the, you know, in the last year.

Speaker Change: Certainly, good morning.

Maryann Mannen: So our goal obviously would be to continue to target that with the intent of seeing EBIT growth beyond that as we put our capital to work and execute some of these key projects that that we've been sharing with you. So again, a goal, which we think we've been able to achieve, but certainly opportunity that we see given the number of projects and again our commitment to executing the growth strategy and ensuring that we return capital to unit holders in the manner in which we just shared.

Speaker Change: Our goal, obviously, would be to continue to target that with the intent of...

Speaker Change: Seeing EBITDA growth beyond that as we put our...

Speaker Change: Capital to Work and execute some of these key projects that that we've been sharing with you. So again a goal Which we think we've been able to achieve but but certainly opportunity that we see given the number of projects

Speaker Change: And again, our commitment to executing the growth strategy and ensuring that we return capital to unit holders in the manner in which we just shared.

Maryann Mannen: and then on that permeant to Wellhead to Water Strategy, how do you think about, I guess, additional capital investment as you see at this point where you might need to invest, whether that be upstream or downstream? Yeah, so there's a few areas, obviously, when we think about continuing to build that out, that we are evaluating, and I'll let Dave give you a few thoughts there. But certainly, over the next few years, given the strength of that basin, given the opportunities that we see in particular, getting that takeaway capacity and getting it to Water, and then you look at the assets in particular, you know, on the MPC side as well, we think there are opportunities for us to continue to effectively put capital to work.

Speaker Change: Got it. And then on that Permian to wellhead to water strategy, how do you think about, I guess, additional capital investment, as you see it at this point, where you might need to invest, whether that be upstream or downstream?

Speaker Change: Yeah, so there's a few areas obviously when we think about continuing to build that out that we are evaluating and I'll let Dave give you a few thoughts there but

Speaker Change: You know, certainly over the next few years, given the strength of that basin, given the opportunities that we see, in particular getting that takeaway capacity and getting it to water, and then you look at the assets in particular, you know, on the MPC side as well.

Dave: We think there are opportunities for us to continue to effectively put capital to work.

David Heppner: Yes, maybe I'll touch on two of the value chains. Go back to that gas. We think of that gas side, a kind of laid out that roadmap or the footprint. We think that what we're building out, not only achieves our strategy of that Wellhead to Water, but also provides permanent shippers with optimal flexibility. So I think, as you think about incremental capital investment, you can think about how we continue to ensure that flexibility for those potential shippers.

Dave: Yes, maybe I'll touch on two of the value chains. Go back to NatGas.

Dave: When we think of the NatGas side, I kind of laid out that roadmap or the footprint. We think that what we're building out not only achieves our strategy.

Dave: of that wellhead to water, but also provides Permian shippers

Dave: you know, optimal flexibility. So I think as you think about incremental capital investment, you can think about how we continue to

David Heppner: When you think about the NGL value chain, especially with our, you know, Bangle expansion that we talked about and also our incremental ownership and Bangle, and we've, you know, talked about our Texas City Frack project and the opportunities there. So I think when you think about capital and you think about how we evaluate, you know, that last leg of the value chain, all the way from the gathering and processing, the Bangle long haul pipe into fractionation and the export terminal and tankage, you know, will continue to evaluate that project through the lines of strict capital discipline and, you know, will evaluate versus other alternatives and options that are out there for us to achieve that strategy long-term.

Dave: the NGL value chain, especially with our...

Dave: You know, Bengal expansion that we talked about and also our incremental ownership in Bengal.

Dave: And we've, you know...

Dave: talked about our Texas City FRAC project and the opportunities there.

Dave: terminal and tankage.

David Heppner: So those are just a couple ways, I think, as you look forward, and we think about capital investments, whether it be at the MPLX level or down at the JV level, that will continue to build out those value chains.

Jeremy Tonet: Yeah, thanks for the time.

Teresa Chen: Next we will hear from Teresa Chen with Barclays. Please go ahead. Morning. First, I wanted to also express congratulations to both Marion and Mike. Following up on the Permian wellhead to water NGL strategy, would you be able to provide a little bit more detail on the economics related to your 20 percent incremental interest in Bangle? Not sure if you could share the purchase price and then also just the, you know, current progress on the Texas City Frag and as we think about that last piece to water today's earlier comments, in terms of speech market, the timeline to bring online export infrastructure assuming that it would be a problem.

Speaker Change: Morning. First, I wanted to also express congratulations to both Marian and Mike.

Speaker Change: Following up on the Permian wellhead-to-water NGL strategy, would you be able to provide a little bit more detail on the economics related to your 20% incremental interest in Bengal? I'm not sure if you could share the purchase price.

Maryann Mannen: Good morning, Theresa. And thank you for your comment. So on Bangal first, look, we think that Bangal has been and continues to be a key strategic asset as we build out that NGL value chain. And again, you know, long term, we're really confident in the growth profile of Bangal and, more importantly, our ability to compete effectively in that basin. The transaction gives us a total of 45% ownership. And again, an important piece of the well head to water strategy. Also, that transaction, we believe, is immediately accretive. And we expected to generate mid-teens return. We had a rofo on that transaction.

Speaker Change: Good morning, Theresa, and thank you for your comment. So, on Bangle first,

Speaker Change: Look, we think that Bangal has been and continues to be a key strategic asset as we build out that NGL value chain and again, longer term, we're really confident in the growth profile of Bangal and more importantly, our ability to compete effectively in that basin. The transaction gives us a total of 45% ownership.

Speaker Change: And again, an important piece of the wellhead to water strategy. Also, that transaction, we believe, is immediately accretive, and we expected to generate a mid-teens return. We had a ROFO on that transaction.

Maryann Mannen: As it relates to your question on Texas City, we're trying to ensure that we maintain optionality in our well head to water strategy there. We have evaluated other alternatives as well; continue to do so. And as we have any further conclusions around how we'll build that out, we'll continue to bring that to you as well.

Speaker Change: As it relates to your question on Texas City, we're trying to ensure that we maintain optionality in our wellhead-to-water strategy there.

Speaker Change: We have evaluated other alternatives as well, continue to do so. And as we have any further conclusions around how we'll build that out, we'll continue to bring that to you as well.

Teresa Chen: Got it.

Teresa Chen: And then on black comba, are you able to share any economics related to the project, either in build multiples or anticipated returns? No, we've not shared any of the anticipated returns at this point. Early stages as we're continuing to put that together. But we've not at this point yet, Theresa. Again, confident in the pipeline itself in its critical contribution, really, to our strategy, but have not shared that at this point.

Speaker Change: Got it. And then on Black Coma, are you able to share any economics related to the project, either in billed multiples or anticipated returns?

Speaker Change: and John Hennigan, Kristina Kazarian, Carl Hagedorn, John Quaid

Speaker Change: No, we've not shared any of the anticipated returns at this point. Early stages as we're continuing to put that together.

Speaker Change: But we've not, at this point yet, Theresa. Again, confident in the pipeline itself and in its critical contribution, really, to our strategy, but have not shared that at this point.

Teresa Chen: Understood. Thank you.

Unnamed: understood. Thank you.

Keith Stanley: Our next question comes from Keith Stanley with Well. For research, your line is open. Hi, good morning. I wanted to follow up first on the two and a half billion of cash on the balance sheet. So leverage is well below your four times target. EBITDA is growing nicely. You're generating a lot of excess free cash flow. So why use cash to repay, I think it's a billion six of maturing debt in December and February instead of refinancing.

Teresa: Understood, thank you.

Speaker Change: Our next question comes from Keith Stanley with Wolf Research. Your line is open.

Keith Stanley: Hi, good morning. I wanted to follow up first on the two and a half billion of cash on the balance sheet. So

Keith Stanley: Leverage is well below your four times target. EBITDA is growing nicely, you're generating a lot of excess free cash flow. So why use cash to repay, I think it's a billion six of maturing debt in December and February , instead of refinancing?

Chris Haggenhorn: And at what point would you view a level of cash on the balance sheet as inefficient from a capital structure perspective?

Speaker Change: At what point would you view a level of cash on the balance sheet as inefficient from a capital structure perspective?

Chris Haggenhorn: No, thank you, Keith, for the question. As we mentioned, we continually look to manage our liability towers. That's something that we do continually and try to make sure that we do that in an effective way. What I'd tell you about the two five, as you noted, cash is fungible. But indeed, we do, as we've earmarked that; we have earmarked it for the December and the February notes. I will tell you, as we sat at a net leverage ratio of 3.1, we do see tremendous strength in our balance sheet. So we think that, as we've communicated in the past, we have room up to 4.0 in our leverage.

Speaker Change: Thank you, Keith, for the question.

Speaker Change: As we mentioned, you know, we continually, you know, look to manage our liability towers. That's something that we do continually and try to make sure that we do that in an effective way.

Speaker Change: What I'd tell you about the 2-5, as you noted, cash is fungible.

Speaker Change: But indeed we do, you know, as we've earmarked that, we have earmarked it for the December and the February notes.

Speaker Change: I will tell you, as we sat at a net leverage ratio of 3.1, we do see, you know, tremendous strength in our balance sheet.

Speaker Change: So we think that, you know, as we've communicated in the past, we have room up to 4-0 in our leverage.

Chris Haggenhorn: So, as we evaluate our opportunities going forward, we've talked about the well head to water strategy for NGLs. We've talked about the expansion we're doing with Whistler. We'll continue to evaluate where our balance sheet sits and how we put that cash, you know, potential cash to work.

Speaker Change: So, as we evaluate our opportunities going forward, we've talked about the wellhead to water strategy for NGLs, we've talked about the expansion we're doing with Whistler, we'll continue to evaluate where our balance sheet sits and how we put that cash, you know, potential cash to work.

Maryann Mannen: Keith, it's Maryann. I just wanted to maybe follow up on a few of Chris' comments as well. One of the reasons why, as you appropriately state, that we've seen the improvement in our leverage, frankly, is because what we've seen is the growth in our EBITDA. So take your point. That financial flexibility, we think, is important. We're not stepping away from our commitment, if you will, or our belief around the leveraged target. That's an important piece of our financial flexibility going forward. So, no change in that whatsoever.

Speaker Change: Keith, it's Marianne. I just wanted to maybe follow up on a few of Chris's comments as well. You know, one of the reasons why, as you appropriately state,

Keith Stanley: You know, that we've seen the improvement in our leverage, frankly, is because what we've seen is the growth in our EBITDA.

Speaker Change: You know, take your point. That financial flexibility we think is important. We're not stepping away from our commitment, if you will, or our belief around the leveraged target.

Speaker Change: That's an important piece of our financial flexibility going forward, so no change in that whatsoever.

Keith Stanley: Thank you both for that.

David Heppner: Second, I just follow up question on the integrated NGL strategy, and possibly moving into FRAC and exports. Some of your competitors have some chunky export capacity additions that they're working on, and then we've had the nighttime restrictions lifted too. So, how does that factor into your thinking on potentially entering the export business? It seems like your competitors are kind of building pretty aggressively there.

Speaker Change: Thank you both for that. Second, just follow-up question on the integrated NGL strategy and possibly moving into FRAC and exports.

Speaker Change: Some of your competitors have some chunky export capacity additions that they're working on and then we've had the nighttime restrictions lifted too, so

Speaker Change: How does that factor into your thinking on potentially entering the export business? It seems like your competitors are kind of building pretty aggressively there.

David Heppner: Yeah, Keith, this is Dave. Let me kind of expand on that a little bit. So, yeah, you're exactly right. And I think the competitors that you're referencing, they're building out the export capacity; is a signal. And we're aligned with it that we need more export capacity to be able to clear the volume to the international market. So, that's a little bit back to Teresa's question, too, on timing. So, as we're going through our strategy of finalizing the remaining links to that value chain from fractionation export facilities. I don't say time of us in the essence, but it's something that's top of our radar as we continue to evaluate that and other options to do it.

Speaker Change: Yeah, Keith, this is Dave. Let me kind of expand on that a little bit. So yeah, you're exactly right, and I think the

Speaker Change: The competitors that you're referencing, they're billing out the export capacity, is a signal, and we're aligned with it, that we need more export capacity to be able to, you know, clear.

Speaker Change: clear the volume to the international market. So that's a little bit back to Theresa's question, too, on timing.

Speaker Change: You know, as we're going through our strategy of finalizing the remaining links of that value chain from fractionation to export facilities,

Speaker Change: I won't say time of us in essence, but it's something that's top of our radar as we continue to evaluate that and other options to do it.

David Heppner: So, very similar. I also compared a little bit to the NACS value chain strategy. The LNG facility is in the build out of the LNG to support the capacity of NACS coming out of the Permian. So, you know, it's a little bit of a chick in the egg. What part of the value chain do you build out first? And I think we've taken the approach of start with the GMP, move down the long haul pipes into the Forax and the dock. So, versus going backwards. So, I think it's a little bit of the market supports it and a little bit of how you want to build out your well-hood of water strategy.

Speaker Change: Very similar. I'll also compare it a little bit to, you know, the NatGas value chain strategy and the LNG facilities and the build-out of the LNG to support the...

Speaker Change: the capacity of NatGas coming out of the Permian, so...

Speaker Change: It's a little bit of a chick in the egg, what part of the value

Speaker Change: Start with the GMP, move down the long-haul pipes into the fracs and the docks versus going backwards. I think it's a little bit of the market supports it and a little bit of how you want to build out your wellhead-to-water strategy. Hope that helps.

David Heppner: Hope that helps.

Keith Stanley: Thank you very much.

Operator: Once again, if you would like to ask a question at this time, you can press star one and record your new wind prompted.

Speaker Change: Thank you very much.

Speaker Change: Once again, if you would like to ask a question at this time, you can press star 1 and record your name when prompted. Next, we will hear from Michael Blum with Wells Fargo. You may proceed.

Michael Bloom: Next, we will hear from Michael Bloom with Wells Fargo. You may proceed. Thanks, everyone. I wanted to drill down on one of the comments from your pair of remarks. Now that the Mountain Valley Pipeline has been in service for a little bit of time here, I'm curious if you're seeing any change in the producer behavior as a result around your system. And do you see this potentially providing an additional investment opportunities for you? Kind of an opportunity to move the pipe.

Michael Bloom: Thanks. Good morning, everyone.

Michael Bloom: I wanted to drill down on one of the comments and a pair of remarks.

Speaker Change: Now that Mountain Valley Pipeline has been in service for a little bit of time here,

Speaker Change: I'm curious if you're seeing any change in producer behavior as a result around your system and

Speaker Change: Do you see this potentially providing any additional investment opportunities for you kind of upstream of the pipeline?

Gregory Floerke: Good morning. This is Greg again, Michael. I think that, you know, if you look at current production of the Northeast and the Marcellus Utica, it's like 34 billion cubic feet a day of the 100 billion total. And we're really excited about MVP and the incremental take-away capacity that that will provide from the basin as it ramps towards, I believe, the state of nameplate of two BCF. So it does make, it does make an incremental difference in terms of take-away, and that's very much a positive, particularly as that ramps over the next few years. You know, we already had 90 percent, the lower 90 percent utilization of our Marcellus plants.

Speaker Change: This is Greg again, Michael. I think that, you know, if you look at current production out of the Northeast and the Marcellus Utica, it's like 34 billion cubic feet a day of the hundred billion total.

Speaker Change: And we're really excited about MVP and the incremental takeaway capacity that that will provide from the basin as it ramps towards, I believe, the stated nameplate of 2bcf.

Speaker Change: It does make an incremental difference in terms of takeaway, and that's very much a positive, particularly as that ramps.

Speaker Change: over the next few years.

Speaker Change: You know, we already have 90%, a little over 90% utilization of our Marcellus plants.

Gregory Floerke: And so there's a little bit more room to grow, and we're focused on filling out that remaining piece up to 100 and also growing, as is the case arm of Creek 2. So, you know, I think there's a lot of factors that go into how that capacity, how the basin is filled. One of the things I mentioned earlier was some of the dry lean gas production, maybe being curtailed or dropped down; that opens up capacity out of the basin too.

Speaker Change: And so there's a little bit more room to grow, and we're focused on filling out that remaining piece, up to 100, and also growing, as is the case with Harmon Creek, too.

Speaker Change: Thank you.

Speaker Change: You know, I think there's a lot of factors that go into how that capacity out of the basin is filled. One of the things I mentioned earlier was some of the dry lean gas production maybe being curtailed or dropped down. That opens up capacity out of the basin, too. So, in summary, any capacity helps.

Gregory Floerke: So, in summary, any capacity helps; anytime you look at a constrained basin, but there is room for us to grow, and we're still very bullish on the Marcellus and now the Utica.

Michael Bloom: Got it, thanks for that.

Michael Bloom: And then maybe just one other question on Blackcomb. I know you're not providing much, but maybe you could tell us, would you expect there to be project-level financing for this project? Yeah, Michael, thank you. We will continue to evaluate that, but with a project like this, project-level financing usually makes sense.

Neal Dingmann: Thank you. And our last question will come from Neil Dingman with Truace Secure. Morning, thanks for getting me in.

Speaker Change: Perfect. Thank you.

Neal Dingmann: My first question is all in the process, the greatness to processing plan. Can you remind me how quickly to pass people ramp there in the potential for further, maybe additional websites? Yeah, Neil, this is Greg. We expect, you know, we continue to build out new capacity, and we expect Secretary, our next plan after Precness 2, to come into service the second half of next year. So we try to, we try to pace these plans to where, as we run out of capacity with one plant, we're sort of there with the next plan to move into.

Speaker Change: Morning, thanks for getting me in. My first question is just on the Frequency II processing plant. Can you just remind me how quickly capacity will ramp there and the potential for further maybe additional upsides?

Speaker Change: Yeah, Neal, this is Greg. We expect, you know, we've continued to build out new capacity and we expect Secretariat

Gregory Floerke: So hopefully that gives you some feel for, you know, the ramp timing of Precness 2. It does. Lovely upside there.

Unnamed: you know, the rap timing in Preakness 2.

Gregory Floerke: And then my second question, maybe just broader on your Marcel, if we add their volumes after some earlier comments you made on the unit, I've just wondered, could you all talk about just, you know, look like volumes continue to be increased there. I think you all show that 50% year of a year and quarter volumes. I'm just wondering, can we assume that volumes can continue to improve there? Is that slight continue to expand? Is one of the extreme operator suggests? Yeah, that's, that's a great question. The Marcel is one of the areas where we only gather, you know, not even 50% of the gas that we actually process.

Speaker Change: It does. It's a lovely upside there. And then my second question, maybe just broader.

Unnamed: Yeah, that's a great question.

Speaker Change: Yeah, that's that's great question the Marcellus is one of the areas where we only gather

Gregory Floerke: There are other third parties gather the majority of the gas. In the particular where we're growing, which in this case is the Harman Creek 2 plant that's come online and is ramping up, that happens to be an area where we're also gathering the production. So that's why you're seeing; that's actually rich gas production growth that you're seeing. So we expect that to, we'd expect that continue to grow along with the volume ramp up into Harman Creek 2. Thanks much.

Kristina Kazarian: All right, Sheila, if we don't have any other further questions, thank you for joining us today, and thank you for your interest in MPLX. Should you have additional questions or would you like clarifications on any of the topics discussed today, the Investor Relations team is available at any time to take your call. Thank you.

Operator: The disc conclude today's conference. Thank you for participating. You may disconnect at this time.

Speaker Change: and many more. Thank you. Thank you. Thank you. Thank you. Thank you.