Q1 2025 MPLX LP Earnings Call
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Welcome to the MPLX First Quarter Earnings Call.
Welcome to Mplx's first quarter 'twenty 25 earnings conference call. The slides that accompany this call can be found on our website at MPLX Dot com under the Investor Tab, joining me on the call today are Maryann Mannen, President and CEO, Chris Hagadorn, CFO and other members of the executive team. We invite you to read the Safe Harbor statement.
Speaker Change: On slide two we will be making forward looking statements today actual results may differ 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 Marianne.
Maryann Mannen: Thanks, Kristina good morning, and thank you for joining our call in the first quarter adjusted EBITDA was $1.8 billion, a 7% increase year over year.
Speaker Change: Distributable cash flow was $1 $5 billion, which supported nearly $1 billion of distribution to our unit holders and $100 million in unit repurchases.
Speaker Change: Since the start of the year MPLX has announced over $1 billion of strategic acquisitions first with our NGL value chain MPLX will be acquiring the remaining 55% interest in the bangle NGL pipeline system.
Speaker Change: Full ownership of Bangalore, and its expansion opportunities enhance our Permian platform as we connect growing NGL production from the wellhead to our recently announced Gulf Coast fractionation facilities. The bangle transaction is anticipated to close in July subject to the satisfaction of closing conditions.
Speaker Change: Second MPLX expanded its crude oil value chain by acquiring gathering businesses from whiptail midstream in March.
Speaker Change: San Juan Basin assets in the four corners region enhance our strategic relationship with M. P C.
Speaker Change: And third MPLX has entered into an agreement to double its stake in the Matterhorn Express pipeline from 5% to 10%.
Speaker Change: The transaction is expected to close in the second quarter of 2025 subject to the satisfaction of closing conditions.
Speaker Change: These acquisitions are expected to be immediately accretive.
Speaker Change: We're all well aware of the volatility in the commodity markets. However, we continue to see robust production across our Marcellus Utica and Permian operating regions. These basins have some of the lowest breakeven prices in the U S offering economically advantaged in development opportunities.
Speaker Change: Based on feedback from our producer customers, we continue to expect year over year volume growth in the Marcellus and Utica basins longer lateral are resulting in higher volumes with less incremental capital in.
Speaker Change: In the Permian Basin production growth continues to create growth opportunities across our crude natural gas and NGL businesses.
Speaker Change: The U S is a low cost producer of energy fuels needed across the globe.
Speaker Change: Notwithstanding current market volatility the outlook for hydrocarbons remains robust grid electrification onshoring near shoring and data center development are driving natural gas demand growth forecast through the end of the decade.
Speaker Change: As demand increases for natural gas powered electricity, we are all well, we are well positioned to support the development plans of our producer customers.
Speaker Change: MPLX is growing the base business by developing processing plants on a just in time basis, increasing the utilization of our existing assets optimizing of our asset footprint and enhancing our strategic relationship with M. P. C. At the same time global demand for transportation fuels is expect.
Speaker Change: To grow the U S refining industry is expected to remain structurally advantage over the rest of the world. The accessibility of nearby crude the availability of low cost natural gas and overall system flexibility provide U S. Refiners are competitive advantage over international sources of supply. Furthermore.
Speaker Change: We believe the MPC you were finding assets are the most competitive in each region, where N. P. C operates.
Speaker Change: Our strategic relationship with MPC positions us well to food to facilitate crude and products logistics solutions, which optimize the value chain supporting their operations, we have a very high degree of confidence in our investments as the macroeconomic environment for energy remains favorable.
Speaker Change: And we believe we have significant opportunities to grow the business leveraging our existing value chain platforms within the Permian MPLX advanced its strategic growth objectives. As we are strengthening our N G O integrated value chain M.
Speaker Change: MPLX is completing construction of its seventh processing plant secretary at a 200 million cubic feet per day processing plant expected online in the fourth quarter of 2025, bringing our processing capacity in the Permian basin to 1.4 billion cubic feet per day.
Speaker Change: In the first quarter, the bangle pipeline completed its expansion to a capacity of 250000 barrels a day the mainline expansion to 300000 barrels per day is progressing and expected to be operational in the second half of 2020 six.
Speaker Change: We are progressing that 2025 portion of our two and a half billion dollar investment in our two golf coast Fractionator and joint venture export terminal.
Speaker Change: Frac, one and the export terminal are expected to be in service in 2028, well Frac two is expected to be in service in late 2029.
Speaker Change: Our current customer commitments support this project.
Speaker Change: Volumes from our plants are currently fractionated at third party facilities and in the future. These volumes will move through our fractionation facilities.
Speaker Change: Upon completion of MPLX is fully integrated NGL value chain.
Speaker Change: Angled pipeline will connect the Permian to the Gulf Coast, Fractionator and supply L. P g's to a growing global market. Additionally.
Speaker Change: Additionally, we believe the expansion of our Gulf Coast NGL value chain will create a platform for optimization and incremental growth opportunities.
Speaker Change: Within natural gas last month, we announced another step in the advancement of our natural gas value chain MPLX and its partners announced they will construct the traverse natural gas pipeline following the receipt of sufficient volume volume commitments.
Speaker Change: Traverse will be a 1.7 billion cubic feet per day pipeline and connects supply between Agua adult Jay and Houston area.
Speaker Change: The project offers a compelling value proposition and complements the previously announced black home and Rio Bravo pipeline.
Speaker Change: MPLX will be a 34% partner in the project traverse is expected to be in service in the second half of 2027 and the continued build out of this natural gas system enhances our ability to provide Permian basin shippers with premium market access and superior flexibility, while enhancing MPLX as natural gas value chain.
Speaker Change: Through additional growth opportunities too.
Speaker Change: To execute our mid single digit growth strategy. Our plans include spending $1.7 billion of capital on growth projects in 2025.
Speaker Change: 85% of our growth capital will be allocated to opportunities within our natural gas and NGL services segment, driving third party cash flows to MPLX.
Speaker Change: In the Marcellus our largest operating region construction of our Harmon Creek, III processing plant and fractionation capacity aligned with producer drilling plans with strong commitments to our system in the northeast. This complex will include a 300 million cubic feet per day processing plant and 40000.
Speaker Change: Barrel per day death, a nicer M.
Speaker Change: MPLX anticipates that by the second half of 2026 gas processing capacity in the northeast will reach $8 1 billion cubic feet per day, and fractionation capacity will reach 800000 barrels per day within the crude oil and products logistics segment, we are expanding crude gathering pipelines.
Speaker Change: Porting, the Permian and Bakken basins undertaking butane blending projects at our product terminals and investing in other high returns targeted at the expansion or debottlenecking of assets.
Speaker Change: We expect mid teens returns on our investments and believe our execution of these projects will extend the durability of our mid single digit growth profile, allowing us to invest in our business and support annual distribution increases in the future.
Speaker Change: We have the financial flexibility to execute strategic acquisitions that complement our organic capital deployment plans and we'll continue to evaluate opportunities as they arise we have ample capacity to undertake additional strategic acquisitions, while maintaining leverage below four times, we are committed.
Speaker Change: To growing the partnership through Ireland's of capital discipline and are confident in our growth opportunities to generate durable cash flow for MPLX supporting our commitment to return capital to unit holders now.
Chris Hagadorn: Now, let me turn the call over to Chris to discuss our operational and financial results for the quarter.
Chris Hagadorn: Thanks Marianne.
Chris Hagadorn: Slide nine outlines the first quarter operational and financial performance highlights for our crude oil and products logistics segment.
Chris Hagadorn: Segment, adjusted EBITDA increased $38 million when compared to the first quarter of 2024.
Chris Hagadorn: The increase was driven by higher throughput across our systems, partially offset by higher operating expenses.
Chris Hagadorn: With those increased throughput.
Chris Hagadorn: <unk> volumes were up year over year, primarily due to less refinery maintenance impact and increased volumes in the Permian.
Chris Hagadorn: Terminal volumes were also up year over year, primarily due to the west coast.
Chris Hagadorn: Moving to our natural gas and NGL services segment on Slide 10, the segment establish a new record segment adjusted EBITDA increased $84 million compared to the first quarter of 2024.
Chris Hagadorn: The increase was driven by $37 million in nonrecurring benefit in volumes in the Permian and Utica basins, including growth from equity affiliates.
Chris Hagadorn: Gather volumes increased 5% year over year, primarily due to increased drilling and production in the Permian and the addition of dry gas volumes from Utica assets acquired in 2024.
Chris Hagadorn: Processing volumes increased 4% year over year, primarily in the Permian and Utica basins.
Chris Hagadorn: Processing in the Utica alone have increased by 24% year over year, demonstrating the value of our liquids rich acreage.
Chris Hagadorn: Marcellus processing utilization was 92% in the quarter, reflecting continued strong producer activity in the region.
Chris Hagadorn: Total fractionation volumes grew 4% year over year, primarily due to higher processed volumes in ethane recoveries in the Marcellus and Utica basins.
Chris Hagadorn: Moving to our first quarter financial highlights on slide 11, total adjusted EBITDA of $1 $8 billion and distributable cash flow of $1 $5 billion increased 7% and 8% respectively from the prior year.
Chris Hagadorn: MPLX returned $1 billion to unit holders and distributions and $100 million and unit repurchases during the quarter.
Chris Hagadorn: We repaid $500 million of maturing debt in February and also issued $2 billion of senior notes a portion of the proceeds were used to retire $1 2 billion of senior notes maturing in June.
And we ended the quarter with a cash balance of $2 $5 billion.
Chris Hagadorn: As a reminder, the first quarter's typically our lowest quarter for project related expenses like prior years. We anticipate these expenses will increase nearly $40 million in the second quarter, reflecting more favorable weather to undertake project related work.
Chris Hagadorn: MPLX maintained strong financial flexibility and we expect to continue growing the partnerships cash flows, enabling and the return of capital to unit holders well.
Maryann Mannen: Now, let me hand, it back to maryann for some concluding thoughts.
Maryann Mannen: Thanks, Chris Mpls.
Maryann Mannen: MPLX has a strong history of growing the partnerships cash flows and its distributions to unitholders by executing its strategic priorities, all while maintaining capital discipline.
Maryann Mannen: While year to year growth may not be linear we are targeting a mid single digit growth rate over multi year periods.
Maryann Mannen: And as you can see from our historical results we have achieved this growth.
Maryann Mannen: By deploying capital wisely controlling our cost and optimizing operations to get the most out of our assets. We have delivered 7% growth for both adjusted EBITDA and DCF on a four year compound annual basis.
Maryann Mannen: Similarly, the growth and durability of our cash flows combined with strong coverage of one five times Angelo leverage has allowed MPLX to consistently increase its quarterly distribution. Most recently by 12, 5%.
Maryann Mannen: And our growing portfolio is expected to support this level of annual distribution increases in the future.
Maryann Mannen: In summary, the opportunities ahead of MPLX in 2025 remain compelling as we execute our mid single digit adjusted EBITDA growth strategy.
Maryann Mannen: MPLX is a strategic investment for marathon and as both pursue value enhancing opportunities the value of this strategic relationship is further strengthened.
Maryann Mannen: Our commitment to operational excellence, our growth opportunities and our financial flexibility position us to generate durable cash flow for MPLX.
Maryann Mannen: Supporting our commitment to peer leading capital returns to unitholders now I'll turn the call over to Christina. Thanks, Maryann as we open the call for questions. The courtesy to all participants we ask that you limit yourself to one question and a follow up if time permits we will re prompt for additional questions. Operator, we are ready for the questions.
Speaker Change: Thank you 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 two 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 one on your <unk>.
Maryann Mannen: Touchtone phone.
Speaker Change: Our first question will come from John Mackay with Goldman Sachs. Your line is open.
John Mackay: Hey, good morning. Thank you for the time, so Marianne I appreciate the comments on the kind of more positive tone in the macro backdrop, but I do want to go back to something we probably haven't talked about in a while.
John Mackay: Do you and the team mind, just kind of running through and reminding us what the business looks like right now in terms of kind of contract mix take or pay et cetera, any comments on both sides of the business would be helpful, particularly as a partnership has grown over the last couple of years. Thanks.
John Mackay: Yeah. Good morning, John Thanks for the question look first and foremost if we take sort of step back and try to look at the business. Overall, you know look we're obviously seeing a little bit of volatility we're watching a few of our producer customers very closely obviously some of them having announced in that in the last few days, but we think our strat.
John Mackay: <unk> truly positions US well you know we believe that the strategy is durable and.
John Mackay: And we can succeed really in generating the kinds of returns and growth.
John Mackay: Through most of these macroeconomic environment the strategic relationship with MPC is a key part of that I mentioned, it as well I think keep in mind that notwithstanding this volatility we're seeing that most of the earnings you know we now are in our business are coming from Nat gas in the N. G S L or excuse me in the NGL segment.
John Mackay: In the northeast those natural gas prices are remaining strong and in the producers are relatively less sensitive to that so in general I think you also saw the announcements that we made in the quarter are the incremental purchase of a 200% to 55% and bangle.
Speaker Change: All our announcement and increasing matterhorn, 5% to 10% as well and so these things continue to be supportive. The other comment that I'd make and then I'll pass it to Chris to talk a little bit more about the contract mix is much of our business is not back right. We are building just in time. So our projects. If you look at what we are.
Chris Hagadorn: Doing in the Permian seventh gas processing plant there that brings us to 1.4 Bcf is really just in time. So that project will continue and again, we expect that to be accretive and meet our goals. Let me pass it to Chris to talk about the mix there.
Chris Hagadorn: Yeah, John just to get maybe a little more granular into the mix will start with crude and products logistics.
Chris Hagadorn: That's about if you recall two thirds of our EBITDA for MPLX in total and about 90% of that segment revenue is generated from marathon petroleum.
Chris Hagadorn: When you think about those arrangements with MPC, they provide significant protection during loader lower refinery utilization.
Chris Hagadorn: I just would have you think back to the 2020 COVID-19 year, when we're actually we're able to grow distributions and EBITDA.
Chris Hagadorn: And then when you think about our natural gas and NGL segments.
Chris Hagadorn: Roughly two thirds of that EBITDA is still being driven by the Marcellus basin and when you think about the Marcellus basin those contracts are fee based and have over 75% MVC protection.
Chris Hagadorn: Maybe a general overview.
Chris Hagadorn: Okay. That's helpful. I appreciate the detail that's one more and again acknowledging the comments on kind of a just in time project focus, but if we're looking at our capital budget and its kind of spending from here I guess, what's the sensitivity on that to the macro backdrop I'd say, if you know Permian production starts to slow a little bit.
Chris Hagadorn: More.
Chris Hagadorn: Can you kind of be flexible on some of these projects and maybe even particular since a lot of these are our jv's, maybe even like the export dock, how do we think about kind of.
Chris Hagadorn: Governance with your partners on choosing or being able to flex some of that spend.
Speaker Change: Thanks, John Let me just remind you that if I might as we look at our capital plan for 2025, we said about 1.7 billion that was focused on growth about 85% of that is really NGL and Nat gas related Secretariat is in that mix.
Speaker Change: We do not anticipate slowing that that project or that.
Speaker Change: Processing facility is expected to be complete at the end of the year. We've also talked about Harmon Creek three Marcellus that project again expected in it and on its way one where we are in the early stages, but we're spending you know this year's portion is for the Fracs and the export terminal.
Speaker Change: 2028, and 2029 I would say the rest of that we can obviously continue to evaluate and have the ability to flex some of that as needed but for the most part that's really how we're seeing capital for this year I'm going to pass it to Greg and let him give you a little more color there.
Greg: Yeah, Thanks, Jon I think that.
Speaker Change: Marion's points were all just add a little bit to that.
Speaker Change: We do have strong customers, a solid customer base in the Permian and all across the regions and the secretary of plant that we are constructing now.
Speaker Change: As under.
Speaker Change: It is being built to spec, but under contract. So we take a long term approach and our customers are too obviously volatility right now and some fluidity in terms of crude pricing but.
Speaker Change: The gas and gas processing side.
Speaker Change: Still bullish on and.
Speaker Change: The gas oil ratio goes up on uneven the producing wells, regardless of the pace of new crude crude drilling.
Speaker Change: That also drives volume in the Permian Delaware Basin.
Maryann Mannen: And John It's Maryann I want to make sure I think you also asked a question about whether or not we would consider slowing or halting the project when the on the export business I think that was your question and I would say at this juncture right. Now look we continue to think that LPG exports will continue they need to.
Maryann Mannen: They need to find a home placement in Europe Southeast Asia, Japan, We saw just the other day frankly, the tariffs get lifted on ethane. So at this juncture. We continue to believe it's an appropriate course for us to proceed.
Maryann Mannen: Alright, that's great really appreciate the color. Thank you.
Speaker Change: Thank you. Our next question comes from Manav Gupta with UBS. Your line is open.
Manav Gupta: Good morning.
Manav Gupta: Strong M&A to drive growth. My quick question here is can you give some more details around this.
Manav Gupta: <unk> of gathering business from BPL midstream how did this come about the benefits to our midstream portfolio and it looks like it might actually be a little bit of synergy to your refining business also if you could talk about that.
Manav Gupta: Good morning, Manav. Thanks for the question, yes, so whiptail, it's a crude oil natural gas and water gathering business and it's really supports production in the four corners region. I think you said it well you know as we have continued to try to talk about the strategic relationship and our ability to optimize.
Manav Gupta: Across our full value chain this asset really complements mplx's existing presence in the region as well as enhances our strategic relationship with M. P. C, particularly when you think about its connectivity to the El Paso refinery. So about a 237 million dollar transaction.
Manav Gupta: I think it really supports our requirements when we think about putting capital to work we expect it to be immediately accretive deliver mid teens returns and really complement the strategic relationship in the value chain between MPC and MPLX.
Manav Gupta: Perfect. My quick follow up here is can you talk about the WPC JV. Please strong partners looks like you guys are moving ahead with the traveler pipeline. So how does the strategic benefit to our portfolio and hopefully you know how do you see this JV developing.
Speaker Change: Tree partners coming together it was trying to do all on alone on yourselves like can you talk about those benefits.
Manav Gupta: Sure Manav I think I'm, you know as we talk about our Nat gas wellhead to water strategy, we're really always looking to optimize those value chains, whether it's natural gas Ngls crude.
Manav Gupta: We don't think this is static right, we're going to continue to adapt as we see the market and I think this is an example of an opportunity here as we're.
Manav Gupta: Looking for the longer term growth in our natural gas value chains, but let me pass it to Dave and he can give you some of the specifics around our traverse.
Dave: Hey, Thanks Maryann.
Dave: Manav, So let me give a little more color.
About our.
Dave: Permian Nat gas to Gulf Coast strategy.
Dave: And how traverse fits into that because I think it's real important. So first of all let me set the stage that we have and continue to see strong Permian growth.
Dave: Long with a strong customer demand and we're always looking to.
Dave: To participate in the opportunities along that value chain. So that's kind of the backdrop and so first first was all around egress out of the Permian basin to the Gulf Coast. So what I want you to think about there is whistler and black home Permian to the Agua Dulce, a market and then matterhorn from the Permian to the Katy market.
Dave: So those are the long haul pipes are clear the clear the barrels out of the out of the Permian Basin second is what is the connectivity the final connectivity to the demand hub.
Dave: Which is the LNG facilities on the Gulf Coast. So there think about ADC sea.
Dave: From Agua Dulce say to Corpus Christi, and then Rio Bravo, most recently from Agua Dulce say to the Brownsville, Texas market. So that's kind of that last mile to the to the demand hub. The LNG facilities and then third is where traverse comes in and that's providing optionality and flexibility to our shippers.
Dave: And access to premium markets. So to reverse is a bi directional pipeline between Agua Dulce and Kt to give them that gave our shippers that that optionality and flexibility. So that's really how it all fits together so going forward back to your question are we will continue as always to evaluate opportunities.
Dave: Optimizing evaluate and enhance our Permian to Gulf coast value chain to meet this continued growth that we see and the continued customer demand and the flexibility that they're looking for so.
Dave: Hopefully that gives you a little more color on our overall strategy.
Speaker Change: Thank you and congrats on a very strong quarter.
Manav Gupta: Thank you Manav.
Speaker Change: Thank you. Our next question comes from the Burgh <unk> with Wolfe Research. Your line is open.
Speaker Change: Hi, good morning.
Speaker Change: With the buyout of your partners interest in Bangle, two new Fracs in the export project would you say the company now has sufficient scale to compete in the integrated NGL value chain or there were pieces you'd like to increase the size and scale of the platform.
Speaker Change: Good morning Brook and thanks for the question you know as we think about bangle. When we started with about 25% ownership last year, we bought incremental ownership to get us to a 45 and now this year. We're announcing that you know final 55% that gives us 100% ownership of bangle.
Speaker Change: We think this transaction and the level of ownership there right. The 100% ownership is a really critical link in our integrated NGL value chain and it strengthens our control there.
Speaker Change: Plus we think it positions us to support our producer customers well I would say as you know and have heard us say that we continue to see opportunities. This strategy is critically important to us.
Speaker Change: And we'll look for opportunities to put capital to work that meet our requirements that is growth EBITDA mid single digit over the long term.
Speaker Change: Being able to generate mid teens returns and ultimately then support the 12.5% distributions. So we'll continue to evaluate those opportunities. In addition to this transaction I'm going to ask Sean to give you a bit of color on bangles as well.
Sean: Good morning, Burke and thanks, Maryann, Hey, Barry we continue to see really strong volumes and growth profile in the Permian basin and the bank of pipeline.
Speaker Change: What we call segment, B, which is garden Dow to Sweeny expansion was completed this first quarter of 250000 barrels per day and then the additional expansion to 300000 barrels per day is expected to be completed in the second half of 'twenty six so in summary, we're confident in the growth profile of bangle, especially as we.
Speaker Change: As Maryann mentioned, our wellhead to water strategy continuing forward.
Speaker Change: Thanks, Thanks for the color there.
Speaker Change: For my second one contracted or the <unk>.
Speaker Change: And export projects with MPC and.
Speaker Change: It was only the ethane is it only the ethane that MPLX will need to sell to third parties.
Speaker Change: Yeah Brook Marianne we talked about are the fact that ethane is what MPLX would be marketing last quarter, and then MPC and MPLX will enter into a contract for a all of the C. Three but I'll pass it to Greg and let him give you additional color.
Speaker Change: Okay.
Speaker Change: Thanks Maria.
Speaker Change: We have a mirror we have facilities very near our plan, Texas City cracks.
Speaker Change: But.
Speaker Change: And other options in that area that we don't plan to have at this point to export ethane, but we do have plenty of off take options and we're working those but that will be as you mentioned the MPLX in charge of.
Speaker Change: Of closing those deals.
Speaker Change: Thanks I appreciate it.
Speaker Change: Thanks for the questions Bart.
Speaker Change: Thank you as a reminder, if you would like to ask a question. Please press star one to be entered into the queue. Our next question comes from Michael Blum with Wells Fargo. Your line is open.
Michael Blum: Thanks. Good morning, everyone can you speak to the level of buybacks executed in the first quarter.
Michael Blum: In light of the fact stepped up the level of Capex.
Michael Blum: There's less excess free cash flow after distributions than you've had in the past in the macro environment is obviously, a little more uncertain. So how do we think about buybacks going forward.
Michael Blum: Yeah. Good morning, Michael Thanks for the question.
Michael Blum: First and foremost I would say as we think about our capital allocation priorities. They they really haven't changed and so we want to be sure that we are deploying capital to.
Michael Blum: To meet that mid single digit growth over the period of time as I said, you know, we don't necessarily expect it to be linear but over a long period of time, we're saying mid single digit growth at the same time, we want to be able to generate mid teens returns on that capital that we put to work.
Michael Blum: Because we think maintaining that 12.5% distribution as we have been talking about is critically important at the same time you know when we look at the valuation of the equity when we look at our growth plans and we look at the opportunities are those that were here talking about today and those that you know we continue to evaluate.
Michael Blum: Wait.
Michael Blum: We we think the equity is undervalued and so we are using that as the ability right amongst all the rest of the capital allocation priorities are to lean in there as well I think you said it well right, where we're looking at the volatility.
In the short term, but overall this year, we are expecting year over year volume growth.
Michael Blum: As you know as I shared so hopefully that's helpful. Michael.
Michael Blum: Yeah.
Speaker Change: Thanks for that appreciate it and then I just wanted to ask a broad question on tariffs Hasnt really come up much on on this call.
Speaker Change: Is there just any impacts we should think about for MPLX maybe to <unk>.
Speaker Change: Incremental project costs returns or any other.
Speaker Change: Elements, we should be thinking of.
Speaker Change: Yeah sure Michael I would say at this juncture for what we know about the tariffs and the intention notwithstanding sort of what may happen within this.
Speaker Change: Less than 90 day window, that's remaining here for resolution, but really has very minimal impact on MPLX as you know, particularly as we think about the operations certainly some of the projects that we talked about you know, particularly our fracs et cetera, we've tried to get in very early and ensure that we don't have cost creep et cetera.
Speaker Change: So what I would tell you is you know we are controlling as you know we try to do we're controlling the things that we absolutely can we're trying to stay ahead of those curves and ensuring that we can bring those those projects in as expected so minimal impact as we as we sit here today for what we know.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: You are welcome.
Kristina: Thank you and at this time, we have no further questions I'll now turn the call over back to Kristina.
Speaker Change: Thank you for your interest in MPLX should.
Speaker Change: You have more questions or would you like clarification on topics discussed. This morning, please contact us and our team will be available to help with your question. Thank you for joining us today.
Speaker Change: Thank you that concludes today's conference. Thank you for participating you may disconnect at this time.