Q2 2025 MPLX LP Earnings Call

Kristina Kazarian: Welcome to the MPLX second quarter 2025 earnings call. My name is Ted, and I'll 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 one on your touch-toned phone to enter the queue. Please note that this conference is being recorded. I'll now turn the call over to Kristina Kazarian. Kristina, you may begin.

Maryann Mannen: Welcome to MPLX's second quarter 2025 earnings conference call. The slides that accompany this call can be found on our website at MPLX.com under the Investors tab. Joining me on the call today are Maryann Mannen, President and CEO, Chris Hagedorn, CFO, and other members of the executive team. We invite you to read the safe harbor statements 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 Maryann.

Welcome to the mlx, second quarter, 2025 earnings call. My name is Ted, and I'll be your operator for today's call at this time. All participants are in a listen-only mode. Later, we will conduct a question. Answer session, press star 1 on your touchtone phone to enter the queue. Please note that this conference is being recorded, I'll now turn the call over to Christina. Kazarian Christina. You may begin.

Maryann Mannen: Thanks, Kristina. Good morning, and thank you for joining our call. Last week, we announced the strategic acquisition of North Wind Midstream for just under $2.4 billion. North Wind provides sour gas gathering and treating services in Lee County, New Mexico. The system adds over 200,000 dedicated acres in the Delaware Basin, 200 plus miles of gathering pipelines, two operating acid gas injection wells, and a third permitted. The system currently has 150 million cubic feet per day of sour gas treating capacity. We will be completing the expansion to 440 million cubic feet per day, expected to be online in the second half of next year. The system is supported by minimum volume commitments by top regional producers. The transaction is expected to be immediately accretive to MPLX's distributable cash flow and represents a seven times multiple on forecasted 2027 EBITDA after the treating system reaches full capacity.

Call over to Marianne.

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

Last week, we announced the strategic acquisition of North Wind Midstream for just under $2.4 billion.

Northwind provides sour gas Gathering and treating services in Lee County, New Mexico.

The system adds over 200,000 dedicated acres in the Delaware Basin.

200, plus miles of gathering pipelines, 2, operating acid, gas, injection, Wells, and a third permitted,

Maryann Mannen: The anticipated mid-teen unlevered return is inclusive of incremental capital spend associated within process expansion activity. Increased crude drilling activity in the eastern edge of the Northern Delaware Basin has been enabled by increased sour gas treating and AGI well capacity provided by these assets. The assets will provide prompt treatment solutions for existing and new producer customers. Our fee structure comprises gathering, compression, processing, as well as more extensive CO2 and H2S treating. The higher levels of CO2 and H2S merit a higher fee structure compared to other regions. On average, this gets to an aggregated rate significantly above other regions. These assets are complementary and adjacent to our existing Delaware Basin natural gas system and will expand MPLX's treating and blending operations. The addition of 200,000 dedicated acres will increase MPLX's access to natural gas and NGL volumes.

The system currently has 150 million cubic feet per day of sour gas. Treating capacity, we will be completing the expansion to 40040 million cubic feet per day. Expected to be online in the second half of next year. The system is supported by minimum volume, commitments. By top Regional producers, the transaction is expected to be immediately, accretive to mplx distributable, cash flow and represents a 7 times multiple on forecasted 2027 ibida after the treating system reaches full capacity.

The anticipated mid-teen unlevered return is inclusive of incremental Capital spend Associated within process expansion, activity increased crew drilling activity in the Eastern edge of the northern Delaware Basin has been enabled by increased sour gas treating and AGI, well capacity, provided by these assets.

The assets will provide prompt treatment solutions for existing and new producers. Our feast structure comprises gathering, compression, processing, as well as more extensive CO2 and H2S treating.

The higher levels of CO2 and H2S Merit a higher fee, structure compared to other regions.

On average, this gets to an aggregated rate significantly above other regions.

These assets are complimentary and adjacent to our existing Delaware bass in natural gas system and will expand mplx as treating and blending operations.

Maryann Mannen: The optionality to direct these new volumes through our integrated system will accelerate our growth opportunities in the Permian. MPLX has also completed two previously announced Permian-based acquisitions. In June, we closed on the acquisition of an incremental 5% stake in the Matterhorn Express pipeline, further enhancing our integrated natural gas value chain in the Permian Basin. In July, we closed on the remaining 55% interest in the Bangle NGL pipeline system. Full ownership of Bangle 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 progress and execution of our strategic initiatives give us conviction in the sustainability of our mid-single-digit adjusted EBITDA growth outlook for 2025 and beyond. In the second quarter, we reported adjusted EBITDA of $1.7 billion, a 2% increase year over year.

The addition of 200,000 dedicated Acres will increase. Mplx access to natural gas and NGL volumes, the optionality to direct these new volumes through our integrated system will accelerate our growth opportunities in the puran.

Mplx has also completed 2 previously announced puran base acquisitions.

In June, we closed on the acquisition of an incremental 5% stake in the Matterhorn Express pipeline, further enhancing our integrated natural gas value chain in the Permian Basin.

In July, we closed on the remaining 55% interest in the Bengal NGL pipeline system.

Full ownership of Bengal and its expansion opportunities enhance our Puran platform as we connect growing NGL production from the wellhead to our recently announced Gulf Coast fractionation facilities.

The progress and execution of our strategic initiatives give us conviction in the sustainability of our mid-single-digit adjusted EBITDA growth outlook for 2025 and beyond.

Maryann Mannen: For the first half of the year, we achieved 5% adjusted EBITDA growth versus the first half of 2024. In the Marcellus and Utica, rig counts remain steady and volumes remain strong. Longer laterals are resulting in higher production volumes, and we expect volumes to grow in the second half of the year. Producer consolidation further illustrates the value seen in the liquids-rich acreage of the Utica, where condensate development activity continues to increase. In the Permian, steady drilling activity, rising gas-oil ratios, and the progression of export projects will support growth opportunities for our business. More broadly, we expect natural gas demand will accelerate over the next few years to provide increased electricity generation required for data centers and overall electric grid demand. As demand for natural gas-powered electricity rises, MPLX is well-positioned to support the development plans of its producer customers.

In the second quarter, we reported adjusted EBITDA of $1.7 billion, a 2% increase year-over-year for the first half of the year. We achieved 5% adjusted EBITDA growth versus the first half of 2024, and the Marcellus and Utica rig counts remain steady, with volumes remaining strong. Longer laterals are resulting in higher production volumes, and we expect volumes to grow in the second half of the year.

Producer consolidation further illustrates the values seen in the liquids Rich acreage of the Utica where condensate development activity continues to increase.

In the puran.

Steady drilling activity, Rising gas oil, ratios and the progression of export projects will support growth opportunities for our business.

More broadly, we expect natural gas demand will accelerate over the next few years to provide increased electricity generation required for data centers and overall electric grid demand.

Maryann Mannen: MPLX is expanding its core business by constructing processing facilities on a just-in-time basis, maximizing the utilization of existing assets, optimizing value chains, and strengthening its strategic partnership with MPC. MPLX is advancing its strategic growth objectives within the Permian. Our seventh processing plant, Secretariat, is expected to be online by the end of 2025. Secretariat's 200 million cubic feet per day of processing capacity will increase MPLX's total Permian processing capacity to 1.4 billion cubic feet per day. We are progressing the expansion of Bangle's main line from 250 to 300,000 barrels per day, which we expect to enter service in the second half of next year. Bangle is an instrumental piece of MPLX's integrated Permian NGL value chain, and it will deliver volumes to MPLX's two Gulf Coast fractionation facilities, which are being constructed near the Galveston Bay refinery.

as demand for natural gas, powered electricity Rises mplx is well positioned to support the development plans of its producer customers

I think value chains and strengthening its strategic partnership with MPC.

Mplx is advancing its strategic growth objectives within the puran. Our seventh processing plant Secretariat is expected to be online by the end of 2025.

Secretariats, 200 million cubic feet per day of processing. Capacity will increase mplx is total permanent processing capacity to 1.4 billion cubic feet per day.

We are progressing the expansion of bangalore's mainline from 250 to 300,000 barrels per day.

Which we expect to enter service in the second half of next year.

Maryann Mannen: The first fract, as well as our joint venture export terminal, is expected to enter service in 2028, and we anticipate the second fract will enter service in late 2029. Once complete, MPLX's fully integrated NGL value chain will stretch from the wellhead to water on the Gulf Coast and will supply LPGs to a growing global market. Within natural gas, we are advancing our value chain strategy. MPLX and its partners recently upsized the traverse natural gas pipeline from 1.75 to 2.5 BCF per day, following strong customer demand. The additional capacity for bidirectional service between Agua Dulce and Houston area highlights the value shippers ascribe to assessing multiple premium markets on the Gulf Coast.

Bangal is an instrumental piece of mx's. Integrated permanent NGO value chain and it will deliver volumes to mplx 2 Gulf Coast fractionation facilities which are being constructed near the Galveston Bay refinery.

The first rock, as well as our joint venture export terminal is expected to enter service in 2028.

And we anticipate the second fact we'll enter service in late 2029.

Once complete, MPLX is fully integrated with NGL value. The chain will stretch from the wellhead to water on the Gulf Coast and will supply LPGs to a growing global market.

Within natural gas. We are advancing our value chain strategy, mplx and its Partners. Recently upsize the Traverse natural gas pipeline from 1.75 to 2.5 BCF per day. Following strong customer demand.

Maryann Mannen: The continued build-out of our Permian to Gulf Coast natural gas system enhances our ability to provide shippers with premium market access and superior flexibility while enhancing MPLX's natural gas value chain through additional growth opportunities. MPLX has announced $3.5 billion of bolt-on transactions in 2025, and we remain on track to invest $1.7 billion on our organic growth plans in 2025. We have already deployed 40% of this capital in the first half of the year. Over 90% of MPLX's total growth capital is being allocated to opportunities within our natural gas and NGL services segment. In the Marcellus, our largest operating region, construction of our Harmon Creek 3 processing plant and fractionation capacity aligns with producer drilling plans. This new complex will feature a 300 million cubic feet per day gas processing plant and a 40,000-barrel per day de-ethanizer supported by strong producer commitments.

The additional capacity for bidirectional service between Aguadulce and the Houston area highlights the value shippers ascribe to assessing multiple premium markets on the Gulf Coast.

The continued buildout of our permanent to Gulf Coast natural gas system. Enhances our ability to provide shippers with premium Market access and Superior flexibility while enhancing mplx is natural gas value chain through additional growth opportunities.

MPLX has announced $3.5 billion of bolt-on transactions in 2025, and we remain on track to invest $1.7 billion in our organic growth plans. In 2025, we have already deployed 40% of this capital in the first half of the year.

Over 90% of MPLX's total growth capital is being allocated to opportunities within our Natural Gas and NGL Services segment.

In the Marcellus, our largest operating region, construction of our Harmon Creek processing plant and fractionation capacity aligned with producer drilling plants.

Maryann Mannen: By the second half of next year, we anticipate MPLX's gas processing capacity in the Northeast will reach 8.1 billion cubic feet per day, and fractionation capacity will reach 800,000 barrels per day. In our crude oil and products logistics segment, we are expanding crude gathering infrastructure in the Permian and Bakken basins, advancing butane blending initiatives at our product terminals, developing new market outlets, driving organic volume growth through our integrated network, and pursuing other high-return projects aimed at maximizing the utilization of our assets. We are firmly committed to growing the partnership through our lens of strict capital discipline. We expect mid-teen returns on our investments and are confident that successful execution of these projects will extend the durability of our mid-single-digit growth trajectory. This positions us to continue reinvesting in the business while supporting consistent annual distribution increases.

This new complex will feature a 300 million, cubic feet per day, gas, processing, plant, and a 40,000 Barrel per day, dethroner supported by strong producer, commitments,

By the second half of next year, we anticipate MPLX's gas processing capacity in the Northeast will reach 8.1 billion cubic feet per day, and fractionation capacity will reach 800,000 barrels per day.

In our crude oil and products logistic segment. We are expanding crude Gathering infrastructure in the puran and Bach. In basins advancing, butane blending initiatives at our product terminals, developing New Market, Outlets driving organic, volume growth, through our Integrated Network and pursuing other high return projects, aimed at maximizing the utilization of our assets.

We are firmly committed to Growing the partnership through our lens of strict Capital discipline.

We expect mid-teens returns on our investments, and our confidence that successful execution of these projects will extend the durability of our mid single-digit growth trajectory.

Maryann Mannen: Our strong financial flexibility enables us to pursue strategic acquisitions that complement our organic growth plans. We stay disciplined in our approach and have ample capacity to pursue more opportunities while maintaining leverage below four times. With a pipeline of growth opportunities, we are well-positioned to generate resilient cash flows that underpin our commitment to deliver long-term value and return capital to unit holders. Now, let me turn the call over to Chris to discuss our operational and financial results for the quarter.

This positions us to continue reinvesting in the business while supporting consistent annual distribution increases.

Our strong financial flexibility enables us to pursue strategic acquisitions that complement our organic growth plans. We stay disciplined in our approach and have ample capacity to pursue more opportunities while maintaining leverage below 4 times.

With a pipeline of growth opportunities.

We are well, positioned to generate resilient cash flows. That underpin our commitment to deliver long-term value and return Capital to unit holders.

Kristina Kazarian: Thanks, Maryann. Slide 10 outlines the second quarter operational and financial performance highlights for our crude oil and products logistics segment. Segment-adjusted EBITDA increased $39 million when compared to the second quarter of 2024. The increase was driven by higher rates and throughputs across our systems, partially offset by higher variable operating expenses. Pipeline volumes were up year over year, primarily due to increased refinery demand and incremental gathering volumes in the Permian. Terminal volumes were flat year over year. Moving to our natural gas and NGL services segment on slide 11, segment-adjusted EBITDA decreased by $2 million compared to the second quarter of 2024, as growth from equity affiliates was offset by higher operating expenses and project spending.

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

Thanks Marianne.

Slide, 10 outlines the second quarter, operational and financial performance highlights for our crude oil and products Logistics segment.

24.

The increase was driven by higher rates and throughputs across our systems, partially offset by higher.

Variable operating expenses.

Pipeline volumes are up year-over-year primarily due to increased Refinery demand and incremental Gathering volumes in the Permian.

Terminal volumes were flat year-over-year.

To our Natural Gas and NGL Services segment on slide 11.

Segments adjusted ebita decreased by 2 million compared to the second quarter of 2024.

Kristina Kazarian: Higher project spending in the second quarter included significant planned maintenance at 13 plants in the Marcellus, Bakken, and Rockies regions, all of which were safely and successfully executed by our operations teams. Gathered volumes decreased 1% year over year, as growth in the Southwest was primarily offset by less dry gas production in the Utica and declining production in the Rockies. Processing volumes increased 2% year over year, primarily from increased throughput in the Utica and Permian basins. Processing volumes in the Utica have increased 13% year over year, showing the value of the liquids-rich acreage. Marcellus processing utilization was 92% for the quarter, reflecting strong producer activity in the region. Total fractionation volumes declined 5% year over year, primarily due to lower ethane recoveries in the Marcellus due to downstream third-party maintenance and outage time.

as growth from Equity, Affiliates was offset by higher operating expenses and projects spending

Higher projects spending in the second quarter included, significant plan maintenance at 13 plants in the Marcellus Balkan and Rocky's regions.

All of which were safely and successfully executed by our operations teams.

Gather volumes decreased, 1% year-over-year as growth in the southwest was primarily offset by less dry gas production in the udica and declining production in the Rockies.

Processing volumes increased 2% year-over-year primarily from increased throughput and the udica and Permian basins.

Processing volumes in the udica have increased 13% year-over-year showing the value of the liquids Rich acreage.

Marcellus processing. Utilization was 92% for the quarter reflecting strong producer activity in the region.

Kristina Kazarian: Moving to our second quarter financial highlights on slide 12, adjusted EBITDA of $1.7 billion and distributable cash flow of $1.4 billion increased 2% and 1% respectively from the prior year. Project-related expense increased over $30 million in the quarter, and we anticipate an incremental $40 million increase from second quarter to third quarter, primarily due to some planned tank maintenance within refinery logistics. MPLX returned nearly $1 billion to unit holders and distributions and $100 million in unit repurchases. We retired $1.2 billion of senior notes scheduled to mature in June and ended the quarter with a cash balance of $1.4 billion. Looking forward, MPLX intends to finance its recently completed acquisition of the remaining 55% of the Bangle pipeline system and its announced acquisition of North Wind Midstream with debt.

Total fractionation volumes declined 5% year-over-year, primarily due to lower ethane recovery and some issues in the Marcellus region resulting from downstream third-party maintenance and outage time.

Moving to our second quarter financial highlights on slide 12, adjust the eida of 1.7 billion and distributable cash flow of 1.4 billion increase 2% and 1% respectively from the prior year.

Project related expense increased over 30 million in the quarter.

And we anticipate an incremental $40 million increase from second quarter to third quarter, primarily due to some planned tank maintenance within Refinery Logistics.

Mplx returned nearly 1 billion dollars to unit holders in distributions and 100 million dollars in unit repurchases.

We retired 1.2 billion dollars of senior notes, scheduled to mature in June and into the quarter with a cash balance of 1.4 billion.

Kristina Kazarian: MPLX maintains a strong balance sheet and the ability to keep leverage below our comfort level of four times. Now, let me hand it back to Maryann for some concluding thoughts.

Looking forward mplx intensive to finance. Its recently completed acquisition of the remaining 55% of the Bengal pipeline system and it's announced acquisition of Northwind Midstream with debt.

Maryann Mannen: Thanks, Chris. MPLX has demonstrated its ability to grow both cash flows and unit holder distributions by executing on its strategic priorities. Year to date, we have returned $2.2 billion to unit holders, inclusive of $200 million in unit repurchases, as the value proposition for our units remains strong. Through prudent capital allocation, cost control, and operational optimization, we've achieved a 7% compound annual growth rate in both adjusted EBITDA and distributable cash flows over the past four years. Year to date, MPLX has announced $3.5 billion of bolt-on transactions. These assets create immediate value for unit holders and enhance MPLX's growth platform in a capital-disciplined manner. We believe the integration of these assets will further strengthen MPLX's ability to deliver mid-single-digit adjusted EBITDA growth.

Mplx maintains a strong balance sheet, and the ability to keep leverage below our comfort level of 4 times. Now, let me hand it back to Marianne for some concluding thoughts.

Thanks Chris.

MPLX has demonstrated its ability to grow both cash flows and unit holder distributions by executing on its strategic priorities.

Year to date. We have returned 2.2 billion dollars to unit holders, inclusive of 200 million in unit repurchases, as the value proposition for our units remain strong.

Through prudent capital allocation, cost control, and operational optimization, we've achieved a 7% compound annual growth rate in both adjusted EBITDA and distributable cash flows over the past 4 years.

Year to date. Mplx has announced 3 and a half billion dollars of bolt-on transactions.

These assets create immediate value for unit holders and enhance mplx growth platform in a capital disciplined manner.

Maryann Mannen: Our strong and growing cash flow profile, supported by a robust 1.5 times distribution coverage and low leverage, has enabled us to support our quarterly distribution, which most recently increased by 12.5% in the third quarter of last year. Looking ahead, our growing portfolio is well-positioned to sustain this pace of annual distribution growth. In summary, MPLX is well-positioned to capitalize on opportunities that fit our strategic roadmap as we execute our strategy targeting mid-single-digit adjusted EBITDA growth. As a strategic asset for Marathon, MPLX currently provides $2.5 billion annually in cash to MPC through its growing distribution. MPLX plays a vital role in advancing shared value creation initiatives, further reinforcing the strength of our partnership. Our unwavering focus on safety and operational excellence, strategic growth opportunities, and strong financial flexibility enable us to generate resilient cash flows.

We believe the integration of these assets will further strengthen mplx ability to deliver mid single digit adjusted ibida growth.

Our strong and growing cash flow. Profile supported by a robust 1.5 times distribution coverage and low. Leverage has been able to support our quarterly distribution which most recently increased by 12 and a half percent in the third quarter of last year.

Looking ahead. Our growing portfolio is. Well, positioned to sustain this pace of annual distribution growth,

In summary mplx is well, positioned to capitalize on opportunities that fit our strategic roadmap. As we execute our strategy targeting, mid single digit adjusted ibida growth

As a strategic asset for Marathon. Mplx currently provides 2.5 billion dollars annually in cash to NPC through its growing distribution.

Mplx plays a vital role in advancing shared value creation initiatives. Further reinforcing the strength of our partnership.

Our unwavering focus on safety and operational excellence.

Maryann Mannen: This, in turn, supports our commitment to delivering peer-leading capital returns to unit holders. Now, let me turn the call over to Kristina.

Strong financial flexibility, enable us to generate resilient cash flows.

Maryann Mannen: Thanks, Maryann. As we open the call for your questions, as a courtesy to all participants, we ask that you limit yourself to one question and one follow-up. If time permits, we'll re-prompt for additional questions. Operator, we're now ready for questions.

Kristina Kazarian: Thank you. We will now begin the question-and-answer session. If you have a question, please press star, then one on your touch-tone phone. If you wish to be removed from the queue, please press star, then two. If you're 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 touch-tone phone. The first question in the queue is from John Mackai with Goldman Sachs. Your line is open.

This, in turn, supports our commitment to delivering peer-leading capital returns to unitholders. Now, let me turn the call over to Christina. Thanks, Marianne. As we open the call for your questions, as a courtesy to all participants, we ask that you limit yourself to one question and one follow-up. If time permits, we will re-prompt for additional questions. The operator is now ready for questions.

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.

If you wish to be removed from the queue, please press star, then 2. If you're 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: Hey, good morning. Thank you for the time. Can you talk about the ramp on North Wind from here through the second half of '26? And then after that, how to think about some of the downstream processing and NGL growth opportunities? And maybe as part of that, just clarify whether or not those downstream opportunities are reflected in the seven times 27 multiple. Thanks.

The first question is from John, mmmkay, with Goldman Sachs. Your line is open.

Maryann Mannen: Hey, good morning, John. Thanks for the question. So first of all, I just want to say we think the economics in this transaction are extremely compelling, as you can see. And any incremental capital, and I'll share with you how that should unfold here, any of the incremental capital that we have assumed is already embedded in those economics as well. But to answer your question, when we look at the completion by 2026, so by the end of next year, we should be at the run rate EBITDA that we are referencing that supports our roughly seven times EBITDA multiple, which means by 2027, we will have reached that EBITDA that will be ongoing. So throughout this time period, 2026, these projects to complete to get us to the 440, as well as the permitted third AGI well, all of those activities are well in hand.

Hey, good morning. Thank you for the time. Can you talk about the ramp on Northwind from here, through the second half of '26? And then after that, how to think about some of the downstream processing and NGL growth opportunities? And maybe as part of that, just clarify whether or not those downstream opportunities are reflected in the '7' time slot.

Maryann Mannen: I'm going to ask Dave to address your second question, sort of, which is, you know, the opportunities on further beyond that.

Hey, good morning John. Thanks for the question. So first of all, just want to say, we think the economics in this transaction are extremely compelling, as you can see and any incremental capital and I'll I'll share with you. How that should unfold here. Any of the incremental Capital that we have assumed is already embedded in those economics as well. But to answer your question when we look at um the completion by 2026, so by the end of next year, we should be at the Run rate ibida that we are referencing that supports our roughly 7 times ibida. Multiple, which means by 2027, we will have reached that ibida, that's that will be ongoing. So uh, throughout this time, period 2026, these projects uh to complete to get us to the 440 as well as the permitted third AGI. Well uh all of those activities uh are are well enhanced.

John Mackay: Yeah, thank you, Maryann. And so, John, just to touch on that, let me be first clear that those incremental growth opportunities are not in our base economics and our base assumptions of North Wind. With that being said, it does provide the platform for a lot of incremental growth opportunities that we are currently evaluating. And not only just growth, but also incremental, you know, optimization and commercial optionality as we go forward with the North Wind. So I think over, you know, the next year or so, as we continue to build out and ramp up the North Wind volume, we'll continue to evaluate those commercial and growth opportunities. And I think those will be all accreted to the base investment. All right. That's great. I appreciate that. Maybe looking a little wider, you've announced a lot of bolt-ons and projects over the last year.

Uh, I'm going to ask Dave to, um, address your second question, sort of, which is, you know, the opportunities further beyond that.

Yeah, thank you Marianne. And so, John just to touch on that. Let me be first clear, um, that those incremental growth opportunities are not in our base economics, uh, and our, and our base assumptions of Northwind, with that being said, uh, it does provide the platform for a lot of incremental growth opportunities that, uh, we are currently evaluating

And not only, uh, just growth, but also incremental, uh, you know, optimization and commercial optionality as we go forward, uh, with the Northwind. So I think over, you know, the next year or so, as we continue to build out and ramp up the Northwind volume, we'll continue to evaluate those, uh, commercial and growth opportunities. And, uh, I think those will be all accretive to the base, uh, base investment.

John Mackay: It's given some longer-term visibility on EBITDA growth. Can you talk a little bit about the distribution one, kind of what you're thinking for this year? And then looking forward, kind of how many years of 12.5% growth could we expect from here?

All right, that's great. I appreciate that. Maybe looking a little wider, even down to a lot of bolt-ons and projects over the last year. It's given some longer-term visibility on EBITDA growth.

Maryann Mannen: Yeah, sure, John. Thank you. So, you know, look, we believe our 12.5% distribution increase is supported very durable by the growth that we are trying to deliver. I mentioned 7% growth. You know, we've seen that over the last few years, both in EBITDA and in distributable cash flows. So certainly, as we've been committing, we think that 12.5% 2026 and beyond, certainly for the next few years, is very durable. So most definitely 12.5% well within our sights. And you can continue to see the opportunities. Dave mentioned a few of them here. You know, the work that we're putting together both on our capital plan. We've got assets in the Permian coming online. I mentioned Secretariat that will be completed by the end of this year. All of these commitments support our durable cash flows and therefore the 12.5% distribution increase that we've been committing to.

Could you talk a little bit about the distribution? I'm kind of curious what you're thinking for this year. And then looking forward, how many years of 12.5 percent growth could we expect from here?

Yeah, sure John. Thank you. So, you know, look we believe our 12 and 1/2% distribution increase is supported very durable by the growth that we are trying to deliver. I mentioned 7% growth. You know, we've seen that over the last few years both in ibida and the industry. Distributable cash flows. So certainly as we've been committing, we think that 12 and a half 2026, uh, and and Beyond certainly, for the next few years is very durable. So, most definitely 12 and a half percent well within our sites and you can continue to see the opportunities. Dave mentioned, a few of them here, you know, the work that we're putting putting together both,

John Mackay: That's great. Thank you.

On our Capital plan. Uh, we've got, um, Assets in the puran coming online. I mentioned Secretariat that will be completed by the end of this year. All of these commitments support our adorable cash flows and therefore the 12 and a half percent uh distribution increase uh that we've been committing to

Maryann Mannen: You're welcome, John.

That's great. Thank you.

Kristina Kazarian: The next question in the queue is from Manav Gupta with UBS. Your line is open.

You're welcome, John.

Manav Gupta: Congrats on the good deal. My first question is, Maryann, there were some recent comments made about, you know, LPG exports being in the bear market and why it probably is not good to invest in these. You are obviously building your fracs, and then your partner is going to export some of the stuff. So just trying to understand what gives you the confidence that you and your partner can make the economics work on the new fracs, as well as exporting them, given some of the bearish market sentiment on LPG exports.

The next question, the queue is from manav Gupta with UBS. Your line is open.

Maryann Mannen: Yeah, good morning, Manav. Thank you for the question. You know, we are very confident in our ability to fill those fracs. As you know, we've committed to completion frac one 2028, frac two 2029. You know, one of the other elements that we've been sharing is, in addition to that, we've got third-party contracts that will also expire that will obviously come across our system. We continue to believe the economics will be there. We recognize sort of some of those comments as well. But we're highly confident in our ability both to fill those fracs and see the economics in that export model.

What's being in the bare market? And why it probably is not good to invest in these, you are obviously building your tracks and then your partner is going to export some of the stuff. So just trying to understand what gives you the confidence that you and your partner can make the economics work on the new tracks, as well as exporting them given some of the bearish market sentiment on LPG exports.

Manav Gupta: Perfect. Thank you. And in a quick follow-up, the overall Permian growth strategy, you're pursuing multiple ways to grow your Permian alone with JV partners. Can you just talk about, you know, how you're looking at this Permian growth strategy for over the next two or three years? Thank you so much.

Yeah. Good morning, ma'am. Thank you for the question. You know, we are very confident in our ability to fill those fracs. As you know, we've committed to completion: Frac 1 in 2028 and Frac 2 in 2029. One of the other elements that we've been sharing is, in addition to that, we've got third-party contracts that will also expire, which will obviously come across our system. We continue to believe the economics will be there. We recognize sort of some of those comments as well, but we're highly confident in our ability both to fill those fracs and see the economics in that export model.

Maryann Mannen: You're welcome. Thank you. You know, as you know, we've been working on our Permian growth strategy for the last few years. We think this acquisition that we've talked about, North Winds, one, both adjacent and complementary to our current system. You know, we have completed other acquisitions, the completion of Bangle as an example. We just closed that, giving us 100%. We've talked about moving that from 250 to 300. That's well on its way. You know, when you look at our capabilities in this region, obviously, you know, this particular northern edge of the Delaware has some of the best rock, we think, in the Permian, lower gas-to-oil ratios. Obviously, it comes with some complexity given the H2S and CO2 content. But we can provide the processing and treating capabilities here and work extremely nicely with the rest of the commitments we've made in the Permian.

Perfect, thank you. And, and, and the quick follow-up. The overall permanent growth strategy. We're pursuing multiple ways to grow your permanent alone with JV partners. Can you just talk about how you're looking at this permanent growth strategy for over the next 2 or 3 years? Thank you so much.

You're, you're welcome. Thank you. You know, as you know, we've been working on our puran growth strategy for the last few years. We think this acquisition that we've talked about, North winds 1, um, both adjacent and complimentary to our current system. You know, we have completed, um, other, um, Acquisitions the completion of Bengal as an example. Uh, we just closed that giving us 100%. Uh, we've talked about moving that from 20050 to 300, uh, that's that's well on its way. You know, when you look at our capabilities in this region, obviously, you know, this particular, um, northern edge of the Delaware, has some of the best rock we think in the puran lower gas to oil ratios. Um, obviously, it comes with some complexity given, uh, the H2S and CO2 content. Um, but we can provide the processing and treating cap.

Maryann Mannen: So we think for the next few years, we can continue to look for other opportunities. And as we build out this comprehensive system, we should be able to demonstrate our commitment and our ability to deliver on this Permian strategy.

Manav Gupta: Thank you.

Abilities here and works extremely nicely with the rest of the commitments. We've made in the puran. So we, we think for the next few years, we can continue to look for other opportunities. And as we build out this comprehensive system, we should be able to demonstrate our commitment and our ability to deliver on this permanent strategy.

Thank you.

Kristina Kazarian: And the next question in the queue comes from Keith Stanley with Wolf Research. Your line is open.

Shawn Lyon: Hi, good morning. Maryann, you said at the end of your prepared remarks that acquisitions will strengthen the ability to generate mid-single-digit growth. As you get larger, should we think of acquisitions as a component of getting to the mid-single-digit growth, or should we think of that as incremental to the growth rate?

And the next question, the queue comes from Keith Stanley with wolf research, your line is open.

Hi, good morning. Marianne you said at the end of your prepared, remarks that Acquisitions will strengthen the ability to generate mid mid single-digit growth.

Maryann Mannen: Yeah, good morning, Keith. You know, when we think about our strategy, we've said we'll put capital to work organically. This year, it's in a range of about 1.7. As you know, we've got Secretariat. We've got the first phase of our frac. We've got Harmon Creek well on its way. So we clearly see opportunities for organic growth. And then when we look at M&A, we also believe there are opportunities there. So it isn't as if we start out the year with an allocation of how much is M&A and how much is capital. We look at all of those opportunities. They must meet our strategic rationale. Obviously, our commitment to mid-single-digit growth is a critical component. And then lastly, we want to be sure that they can generate mid-teens returns.

As you get larger, should we think of acquisitions as a component of getting to the mid-single-digit growth, or should we think of that as incremental to the growth rate?

Maryann Mannen: All of those, I mean, the way we put capital to work should continue to support our ability to grow EBITDA and then therefore support our distribution. Hope that answers your question.

Yeah, good morning. Keith you know when we think about our strategy we've said we'll put Capital to work organically this year. It's in a range of about 1.7. As you know we've got Secretariat, we've got the first phase of our uh Frac. Uh we've got Harman Creek well on its way. So we clearly see opportunities for organic growth. And then, when we look at m&a, we also believe there are opportunities there. So it it isn't as if we start out the year with a, you know, an allocation of how much is m&a and how much is capital? We look at all of those opportunities. They must meet our strategic rationale. Um, obviously our commitment to Mid single digit. Growth is a critical component and then, lastly, we want to be sure that they can generate mid- teens returns all of those. I mean, the way we put Capital to work should continue to support our ability to grow ibida and then therefore support our

Shawn Lyon: It does. Thank you. Second one, on North Wind, can you say any sense of how long the existing processing and transportation contracts are for those assets? And maybe walk through the mechanics of how you would eventually control the NGLs as the gatherer and treater. Would you need to add processing to the footprint or any details you can provide?

Distribution. Hope that hope that answers your question.

Maryann Mannen: Sure. So first, I think your first question was kind of what is the contract duration on processing? And we're probably somewhere, those contracts today, somewhere in the range of two to three years on those processing contracts. Keep in mind, you know, overall, and I think I mentioned this, you know, in the prepared remarks as well, you know, these contracts that we have for these MVCs are average contract life of 13 years. You know, so 80% of this revenue is MVC, just, you know, to be sure that I was clear on that. And then, you know, some of the top producer customers that I mentioned there are actually customers that are operating today on our system. But let me look at Dave, and I'm going to ask him to give you a little more color on your question.

It does. Thank you. Second, um, on Northwind, can you say any sense of how long the existing processing and transportation contracts are for those assets? And maybe walk through the mechanics of how you would eventually control the NGLs as the gatherer and treater. Would you need to add processing to the footprint? Um, or any details you can provide?

Shawn Lyon: Thank you, Maryann. So, Keith, I touched on a little bit earlier. So as these contracts roll off and we have control and access to the NGLs, why we don't need that volume in our announced Bangle acquisition and our Gulf Coast fractionation and export project. This incremental volume, as I tried to touch on a little bit earlier, gives us flexibility and optionality on how and where and when we want to move those volumes. And that's probably the most exciting part about this. So as we look forward, not only this opportunity, but as we think about some of the growth opportunities that Maryann touched on, it's not just grow to grow, but it's grow to increase the integration, the optionality, and flexibility of our entire value chains. Hopefully, that helps a little bit. That helps. And I missed the 13-year commentary, so thanks for that as well.

Mind, you know overall and I think I mentioned this, you know, um in the prepared remarks as well, you know, these contracts that we have for these mvcs are average contract life of 13 years you know. So 80% of this revenue is is MVC just you know to be sure that I was clear um, on that. And then, you know, some of the top producer customers that we I mentioned there are actually customers that are operating today on our system. But let me look at Dave and I'm going to ask him to give you a little more color on on, on your questions.

Thank you Marianne. So Keith. I I touched on a little bit earlier. Um, so as these, uh, contracts roll off and we have, uh, control and access to the ngls, why we don't need that that volume, uh, in, you know, in our announced, uh, you know, Bangla acquisition and our Gulf Coast fractionation and Export, uh, project this incremental, volume, as I tried to touch on a little bit earlier gives us, uh,

Flexibility and optionality on how and where and when we want to move those volumes and and that's probably the the the most exciting part about this. So so as we look forward, not only this this opportunity, but as we think about some of the growth opportunities that Marian touched on, it's not just grow to grow, but his growth to increase the integration, the optionality and flexibility of our entire value chains. Hopefully that helps a little bit.

Maryann Mannen: Oh, you're most welcome. Thank you.

That helps and I missed the uh 13 year commentary. So thanks for that as well.

Oh, you're most welcome. Thank you.

Kristina Kazarian: And the next question in the queue is from Teresa Chen with Barclays. Your line is open.

Teresa Chen: Good morning. Following up on the commentary related to North Wind, just a question of clarification on the CAPEX. From here, the current capacity to the full 440 MMCF per day, how much incremental CAPEX do you think would be necessary to achieve that?

The next question, the queue is from. Teresa Chen with Barclays, your line is open.

Maryann Mannen: Yeah, good morning, Teresa. So we estimate in a range of about $500 million between now and the next 12 months that we'll complete the 440 million, as well as the third already permitted AGI well. So, you know, two of them currently operating, third's permitted. So within the next 12 months, just under $500 million, and most of that's already been started.

Good morning. Um, following up on the commentary related to Northwind. Uh, just a question of clarification on the capex. Um, from here, the current capacity to the full 440 MMcf per day, how much incremental capex do you think would be necessary to achieve that?

Teresa Chen: Thank you. And then turning to the residue gas side of things, in addition to your NGL infrastructure build-out, you've made significant progress in growing this asset base via your JVs. Looking at the long-term visible demand drivers for gas, Maryann, what do you think are the logical strategic next steps to augment your exposure here? Is it a matter of more gas transmission? Is it something more direct on the gas-to-power side of things? Is it liquefaction? What are your thoughts here?

Yeah, good morning, Teresa. So we estimate in a range of about $500 million, um, between now and the next 12 months that will complete the $4440 million, as well as the third already permitted AGI. Well, so, you know, two of them currently operating, the third's permitted. Uh, so within the next 12 months, just under $500 million, and most of that has already been started.

Thank you. And then turning to the residue gas side of things. In addition to your NGL infrastructure build-out, you've made significant progress in growing this asset base via your joint ventures. Looking at the long-term visible demand drivers for gas, Maryann, what do you think are the logical strategic next steps to augment your exposure here? Is it a matter of more gas transmission? Is it something more direct on the gas?

Maryann Mannen: Yeah, thanks, Teresa. I'm going to pass it to Dave, and he'll take your question.

The power side of things. Is it liquefaction? What are your thoughts here?

Shawn Lyon: Hey, Teresa, I'll kick it off, and maybe I can ask some of my peers if they want to add on to it when you think about data centers and some of the other growth. But yeah, you touched on it. And you know, as we think about the Permian and specifically, and as you know, our strategy, a lot of long-haul pipelines out of there, we do not think that there's an overbuild situation on long-haul pipes. Let me start with that. So, you know, whether it be Whistler, Blackcomb, you know, Matterhorn, and our increased equity ownership in that, you could see that we have a lot of confidence in the growth, not only the growth profile of the Permian on the gas side, but also the demand side of it.

Yeah, thanks, Theresa. I'm going to pass it to Dave, and he'll take your question.

Hey, Teresa. I'll kick it off, and maybe I can ask some of my peers if they want to add on to it. When you think about data centers and some of the other growth, yeah, you touched on it.

You know, as we think about the Parian, and specifically as you know our strategy, a lot of long-haul pipelines out of there.

Shawn Lyon: So, you know, as you know, down in the Gulf Coast with a lot of the LNG activity, but also with the increased growing activity around data centers, we believe not only from a supply, but also from a demand perspective, there's a lot of opportunity. And I think we've proven that with the project we've announced most recently. So the one we haven't touched on is traverse. So not only just the long-haul pipes out of the basin, but giving our shipping customers the utmost flexibility to get those premium markets, in addition to getting out of the basin, we think is a key part of our strategy. So as we go forward, it's an increase, you know, growth, optionality, flexibility, and access to those premium markets for the gas coming out of the Permian.

We do not think that, um, there there there is, an overbuild situation, Long Haul pipes. Let me start with that. So, you know whether it be Whistler blackcomb, uh, you know, matter horn and or increase Equity ownership and that you could see that we have the a lot of confidence in the growth, not only the growth profile of the Permian on the gas side but also the demand side of it. So you know as you know down in the Gulf Coast with the with a lot of the LNG activity, but also with with the uh,

Increased growing activity around data centers. We believe not only from a supply, but also from a demand perspective, there there's a lot of opportunity. Um, and I think we've proven that with the the project we've announced most recently. So, uh, the 1 we'd haven't touched on is, is Traverse. So, not only just the Long Haul pipes out of the, out of the Basin. But giving our, our our shipping customers, uh, the utmost flexibility, uh, to get those premium markets. In addition to getting out of the base. And, uh,

We think this is a key part of our strategy. So as we go forward, it's an increase, uh, you know, um, growth.

Shawn Lyon: So hopefully, that gives you a little bit of color how we're thinking about that strategy.

Optionality, flexibility, and access to those premium markets for the gas coming out of the Parian. So, hope that gives you a little bit of color on how we're thinking about that strategy.

Maryann Mannen: Thank you. You're welcome, Teresa.

Thank you.

Kristina Kazarian: Next question in the queue is from Jeremy Tennet with JP Morgan. Your line is open.

You're welcome, Theresa.

Jeremy Tennet: Hi, good morning.

It was from Jeremy tinette with JP Morgan. Your line is open.

Maryann Mannen: Morning, Jeremy?

Hi, good morning.

Jeremy Tennet: I was just wondering if you could expand a bit post the acquisition on your New Mexico strategy here. It's a bit more difficult to operate in the state given the regulatory framework and the handling that's needed with this production. But the growth is very, you know, strong, as noted. And it seems like this toehold, you know, gives you even more opportunity there. And there's not too many players right now. So just wondering if you could talk a bit more on your New Mexico strategy and competitive backdrop.

good morning, Jeremy

Maryann Mannen: Yeah, Jeremy, we'd be happy to, because I think you characterize it well. And I think it's consistent really with the way that we think about growth. I'm going to ask Greg to give you some incremental thoughts here.

I was just wondering uh if you could expand a bit uh, post the acquisition on your New Mexico strategy here, it's a bit more difficult to operate in the state given uh, the regulatory framework uh, in in the handling that's needed with this production. But the growth is very, uh, you know, strong as noted in it. It seems like this toehold, uh, you know, gives you even more opportunity there. Uh, and there's not too many players right now. So just wondering if you could talk a bit more on your New Mexico, strategy and competitive backdrop,

Yeah, Jeremy, we'd be happy to because I think you characterized it well. I think it's consistent, really, with the way that we think about growth. I'm going to ask Greg to give you some incremental thoughts here.

Gregory Floerke: Thanks, Maryann. Yeah, this is Jeremy. This is a really exciting area for us. We have been growing this base organically in terms of our processing plants and producer customers, acreage dedication, starting on the Texas side of the line, but it's gradually, you know, expanded into Leonetti County, New Mexico. And that, even though our plants are right on the Texas side of that line, a lot of our growth has continued to be on the Leonetti County, New Mexico side. The growth is also in terms of crude oil production moved to the north and east towards that north-south New Mexico-Texas border. And that's because it's some of the best crude oil rock in the whole basin, particularly the Avalon Formation, which is shallower. It's about 8,500 feet depth instead of 1,200 or 12,000, excuse me. So it is more economic produce. It's higher IPs.

Thanks Marianne. Yeah, uh, this is Jeremy, this is a really, um, exciting area for us. Uh, we have been growing this space organically in terms of our processing plants, and producer, customers acreage dedication of starting on the, on the Texas side of the line. But it's gradually, you know, expanded into Lee and Eddy County New Mexico. And that, even though our plants are are right on the uh, Texas side of that line, a lot of our growth has continued to be on the uh on the leonetti County, New Mexico side. Um the the growth is also uh in terms of crude oil production, moved to the north and east.

Gregory Floerke: It's lower gas-to-oil ratios. So it's the most attractive economic crude production area. The issue is that that gas comes with more CO2 and H2S. It's much more sour. And that really is what the North Wind developers recognized when they built that system. Some of our existing base customers have moved further to that side. And we've deployed treating throughout our system, particularly on the New Mexico side of our gathering system. This acquisition is really going to augment our ability to treat even more sour gas and also provide blending opportunities because of the proximity and potential connectivity here. This system, if you look on a map, it wraps around the north and east side of our existing gathering system. So it really is adjacent and complementary, as Maryann's mentioned.

Towards that, that North South New Mexico, Texas, border. And that's because it's some of the best crude oil Rock in the whole Basin. Um, particularly the Avalon formation which is is shallower. It's about 8,500 ft depth of 1,200 or 12,000, excuse me. So uh, it is more economic produce its higher IPS it's lower gas oil ratio so it's the most attractive economic crude production area. The the issue is is that that gas comes with more CO2 and H2S it's much more sour and and that really, uh, is what the north wind developers recognize when they built that system. Some of our existing base customers are have moved further to that side. And we've deployed, treating throughout our our system, particularly on the North uh on the New Mexico side of our gathering system. Uh, this acquisition is really going to, uh, augment our ability to treat even more sour gas and also provide blending opportunities because of the proximity,

Gregory Floerke: So we think there'll be more organic opportunities that can take advantage of this expanded treating capability and gathering that we have in one of the most attractive areas to drill in the basin.

The um, and and potential connectivity here this system. If if you look on a map, is it wraps around the north and east side of our existing Gathering system? So it it really is adjacent. Complimentary is is MaryAnn's mentioned. So we think there'll be more organic opportunities.

That can take advantage of, uh, of this expanded treating capability and Gathering that we have in, in 1 of the, uh, the most attractive areas to drill in in the basin.

Jeremy Tennet: Got it. That's helpful there. Maybe just continuing, do you see more bolt-on opportunities adjacent to your footprint that could offer the types of benefits that you see with North Winds?

Got it. That's a helpful there. Um maybe just uh continuing. Do you see more bolt-on opportunities at Jason to your footprint that could offer uh the types of benefits that you see with northlandz.

Gregory Floerke: I think we looked at, if we were to build a system organically, the North Wind system would be one that we would have built. So in terms of looking for bolt-ons, you know, I don't necessarily say that there's opportunities there. We'll always look for those if they're a strategic fit and make sense. But this one would have made sense as an organic build-out just as much as a bolt-on. And it happens to be that it's right next to our system, and it's right in the area where we see a lot of growth. So this accelerates our plans that probably organically we would have looked at anyway.

Maryann Mannen: Jeremy, it's Maryann. I would say Greg, they already said it. But you know, at the risk of repeating, I'll say, you know, we've said it's adjacent and it's complementary. I like to say it's about as perfectly as one could expect. And then you have the economics that I think we've tried to share with you. We think they're pretty compelling, you know, supported by the average contract life of 13 years, over 200,000 dedicated acres in the Delaware. And none of the economics, when we talk about that roughly seven times multiple, reflect any upside from that. So we're pretty pleased with this. And we think it will continue to give us opportunities to grow beyond what we've been sharing with you here.

I, I think we looked at if, if we were to build a system organically the north 1 System would be 1, that we would have built. Uh, so in terms of looking for bold owns, uh, you know, I don't necessarily, uh, would say that there's, there's opportunities there. We'll always look for those if there are strategic fit and, and, uh, make sense, but this 1 would have made sense as an organic buildout. Uh, just as much as a, uh, uh, you know, a bold on and and it, it happens to be that it's, it's it's right next to our system, and it's right in the area where we see a lot of growth. So this accelerates our plans that probably, uh, organically. We would have looked at, at any way.

Jeremy. It's, it's Marianne. I would say, Greg Greg's already said it. But you know what? They're at the risk of repeating. I'll say, you know, we've said it's adjacent and it's complimentary I like to say it's about as perfectly as 1 could expect. And then you have the economics that I think we've tried to share with you. We think they're pretty compelling, you know?

Jeremy Tennet: Got it. I'll leave it there. Thank you.

Supported by the average contract life of 13 years. Uh, over 200,000 dedicated acres in the Delaware and none of the economics. When we talk about that roughly 7 times, multiple reflect any upside from that. So, um, we're pretty pleased with this. Um, and, um, we think it will continue to give us opportunities to grow, uh, beyond what we've been sharing with you here.

Got it. I'll leave it there. Thank you.

Kristina Kazarian: And the final question in the queue is from Michael Bloom with Wells Fargo. Your line is open.

Michael Bloom: Thanks. Good morning, everyone. Apologies. One more clarification question on the North Wind deal. I guess as it relates to the gas and liquids that you'll gain access to eventually, can you just clarify, will you be able to accommodate those incremental volumes on your existing planned NGL pipes, fracs, export docks, etc.? Or would you need to add capacity? And if so, what type of investment will we be looking at?

And the final question in the queue is from Michael Bloom with Wells Fargo. Your line is open.

Maryann Mannen: Good morning, Michael, and no problem. I'm going to ask Chris to share his thoughts to your question.

1 uh apologies 1 more uh clarification question on on the Northwind deal. Um I guess as it relates to the the gas and liquids uh that you you'll gain access to eventually, can you just clarify, will you be able to accommodate those incremental volumes on your existing planned NGL, pipe fracks export docs Etc? Or would you need to add capacity? And if so what type of investment will we be looking at?

Michael Bloom: Yeah, Michael, what I would remind you of is that when we announced the Gulf Coast fractionators and related NGL value chain, we actually had a full line of sight to filling those fracs and Bangle. So as we sit today, that value chain is full. So when we think about the 70 of liquids that come with this, and I will say that the liquid side of this comes immediately. When I say this, the North Wind liquids, so we'll call it between 50 and 70 a day of liquids. Those are incremental to the liquids that we already have access to. So we'll be looking to explore other opportunities of how to drive economic value out of those. It does provide optionality, right, as we think about our existing NGL value chain as to how we do most economically utilize that value chain.

Good morning, Michael. And no problem. Uh, I'm going to ask Chris to uh share his thoughts to your questions.

Yeah, Michael. What I would remind you of is that when we announced the Gulf Coast fractionators and and related NGL value chain, we actually had full line of sight to filling those cracks and bangle.

So as we sit today, those, those uh, that value chains full. Uh, so when we think about the 70 of liquids that comes with this, and I will say the, the liquid side of this come immediately. Uh, when I say this, the the The North Wind liquids, so it's we'll call it between 50 and 70 a day uh, of of liquids.

Those are incremental to the liquids that we already have access to.

so we'll be you know, looking to explore other opportunities how to to drive economic value out of those

Michael Bloom: So that's something I know the team has been looking at. And Sean, I don't know if there was anything you might want to add.

Shawn Lyon: Yeah, Michael, this is Sean. You know, on top of what Chris just mentioned, as you know, earlier this year, Maryann mentioned earlier that we're at 250,000 barrels per day on Bangle already this year with expansion in the second half of '26 to go to 300,000. As Chris mentioned, that optionality beyond that will give us tremendous flexibility to continue to execute in our strategy. So we've got, we feel really good at the spot we're in, and we'll continue looking to maximize the organic that now North Wind will bring options to us.

It does provide optionality, right as we think about our existing NGL value chain is to how we do most economically utilize that value chain. So that's something. I know the team is, has been looking at and Sean, I don't know if there was anything, you might want to add

Yeah, um, Michael just, this is Sean. You know, on top of what Chris just mentioned as you know earlier this year Miriam mentioned earlier that we're at um, 250,000 barrels per day on Bengal um already this year with um expansion in the second half of 26 to go to 300,000 is Chris mentioned that optionality beyond that will give us tremendous flexibility to continue to execute in our strategy. So we've got we feel really good at the spot. We're in and we'll continue looking to maximize the organic that now Northwind will bring uh, options to us.

Kristina Kazarian: Got it. Thanks for that. That's all I had today.

Maryann Mannen: You're welcome, Michael. Thank you.

Got it. Thanks for that. That's all I had today.

Kristina Kazarian: With no further questions, I'll turn the call back over to Kristina.

You're welcome. Michael. Thank you.

Maryann Mannen: Thank you for your interest in MPLX. Should you have more questions or if you'd like clarification on topics discussed this morning, please contact us, and our team will be available to take your calls. Thank you for joining us today.

With no further questions, I'll turn the call back over to Christina.

Kristina Kazarian: This concludes today's call. Thank you for your participation. You may disconnect at this time.

Thank you for your interest in MPX. Should you have more questions? Or if you'd like clarification on topics discussed this morning. Please contact us and our team will be available to take your calls. Thank you for joining us today.

This concludes today's call, thank you for your participation. You may disconnect at this time.