MPLX LP 2026 Q2 Earnings Call

Bryan, you may begin. Welcome to MPLX's second quarter 2026 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 Mary Anne 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. I will turn the call over to Mary Anne.

Thanks, Bryan. Good morning, and thank you for joining our call. Our second quarter results reflect the consistent execution of our strategic priorities. MPLX delivered $1.8 billion of adjusted EBITDA in the second quarter, a 5% increase versus the same period last year, more than overcoming the divestiture of the Rockies assets in late 2025. This enabled the return of over $1.1 billion to our unit holders. 2026 is also a year of execution. We continue to advance high-return projects across our integrated natural gas and NGL value chains. The sequencing of projects entering service gives us confidence in a meaningful increase in EBITDA in the second half of 2026 and next year.

In the Delaware Basin, we placed the Secretariat I processing plant into service in April and exited the quarter at 86% utilization of our Delaware Basin processing system, demonstrating strong producer demand and operational excellence from our teams. In August, the Harmon Creek III processing plant is beginning operations in line with our strategy to add processing capacity on a just-in-time basis. This increases our total processing capacity to 8.1 billion cubic feet per day and de-ethanization capacity to over 800,000 barrels per day. This plant, along with our associated gathering and compression expansions, extends our ability to meet producer needs in liquids-rich areas and supports long-term throughput growth. As we expand MPLX's core value chains, we are also focused on maximizing utilization of existing assets and optimizing operations.

In the Northeast, Marcellus processing utilization of 96% in the quarter led to record volumes across our system, while strong production activity in the Utica supported processing utilization of 73%. In the Permian, sour gas treating volumes exceeded 150 million cubic feet per day for the second consecutive quarter as we continue to optimize operations at our Titan treating facility. As throughputs increase across our gathering and processing assets and additional projects enter service in the second half of the year, MPLX remains positioned to deliver mid-single-digit adjusted EBITDA growth. Natural gas and NGL fundamentals remain robust, creating compelling opportunities to support growing global demand for U.S. energy. When we allocate capital, we remain disciplined. There must be strong strategic fit, durable demand, and compelling returns.

MPLX is investing over 90% of its organic growth capital toward opportunities to meet growing natural gas and NGL infrastructure needs, leveraging our advantage value chains. MPLX is increasing its 2026 capital spending outlook by $500 million to $2.9 billion. The increase primarily reflects the accelerated execution of our ongoing Gulf Coast fractionation project, pulling forward capital we previously expected to deploy in early 2027. In July, the Blackcomb Natural Gas Pipeline began commissioning activities. The JV partners continue to progress the pipeline as planned, with Blackcomb expected to achieve full commercial service in the fourth quarter. Within our NGL value chain, the expansion of our BANGL pipeline to 300,000 barrels per day is also expected online in the fourth quarter, providing critical takeaway capacity as in-basin NGL volumes grow.

In the Permian's Delaware Basin, which continues to attract strong producer interest, our teams are working to complete the expansion of our sour gas treating system to over 400 million cubic feet per day. The expansion of this strategic growth platform remains on track to enter service at the end of the fourth quarter, and we anticipate volumes to ramp quickly, supporting our run rate expectations for 2027. With multiple investments transitioning from construction to operation this year, we are on track to deliver mid-single-digit adjusted EBITDA growth in 2026. While the year-over-year growth from 2025 to 2026 is more back-half weighted, it also positions MPLX for strong adjusted EBITDA growth in 2027. Against the backdrop of geopolitical uncertainty, the strategic importance of U.S. energy infrastructure remains clear. Domestic and global demand for secure, reliable energy continues to grow.

International customers are increasingly turning to the United States as a preferred supplier. MPLX is well positioned to respond to our customers' requirements in this growing market. The construction of our Gulf Coast fractionation and export facilities continues to advance on schedule. We expect the first 150,000 barrel per day fractionator, the 400,000 barrel per day JV LPG export terminal, and the associated purity pipeline to be in service in 2028, followed by the second 150,000 barrel per day fractionation in 2029. Our confidence in the volumes and utilization of our assets reinforces our expectation for durable cash flows that will support MPLX's continued growth. This positions MPLX to continue reinvesting in the business while supporting the annual distribution increases to unit holders. Let me turn the call over to Chris to discuss our operational and financial results for the quarter.

Thank you, Mary Mannen. Slide eight outlines the second quarter operational and financial performance highlights for our crude oil and products logistics segment. Segment adjusted EBITDA increased $23 million when compared to the second quarter of 2025. The increase was primarily driven by higher rates across the business units and increased butane blending, partially offset by lower crude pipeline throughputs from planned MPC turnaround activity and the seasonality of planned maintenance and project spending, resulting in higher operating expenses. MPLX has been strategically investing in butane blending systems throughout our terminal and pipeline network over the past few years. These investments allowed MPLX to blend additional butane volumes and take advantage of strong commodity prices in the quarter, generating over $20 million of additional benefit versus the prior year. Pipeline volumes increased 4% year-over-year, primarily due to Marathon Petroleum Corporation's planned refining turnaround activities in the MidCon region.

Moving on to slide nine. Segment adjusted EBITDA increased $62 million compared to the second quarter of 2025. The increase was primarily driven by increased volumes, including growth from equity affiliates and acquisitions, partially offset by the divestiture of our Rockies assets in 2025. Excluding the impact of the Rockies divestiture, segment adjusted EBITDA increased $99 million year-over-year. Gathering volumes were up 15% year-over-year, primarily from production growth in the Utica, Permian, and Marcellus basins. Processing volumes increased 5% year-over-year, primarily due to increased production in the Marcellus and Permian basins. Marcellus processing utilization was 96% for the quarter, demonstrating the need for incremental capacity as Harmon Creek III is beginning operations in August. Total fractionation volumes increased 8% year-over-year, primarily due to increased production in the Marcellus.

With the startup of Secretariat I in April, volumes on the BANGL NGL pipeline increased over 200,000 barrels per day in the second quarter, illustrating the strategic value of our integrated wellhead to water strategy. Our gas treating volumes in the second quarter exceeded 150 million cubic feet per day as we continue to optimize operations at our Titan treating facility and expand its capacity to handle over 400 million cubic feet per day by the end of the fourth quarter. We are progressing construction of a natural gas pipeline connection to allow sweet gas from our Titan facility to feed into the Secretariat I processing plant. This highlights the value of our recently acquired Delaware Basin system. Beyond an increasing rig count in the U.S., MPLX is strategically positioned to support additional drilling activity by producer customers.

In the Permian Basin, undeveloped acreage in Lea and Eddy counties in New Mexico was recently leased by current producer customers. Roughly 40% of this acreage has volumes dedicated to our sour gas treating system, highlighting the geographic advantage of the Titan Complex with the Delaware Basin. Excuse me. The state of Ohio recently awarded leases for undeveloped acreage in Belmont County. Nearly half of this land is also dedicated to MPLX, and we anticipate additional production in the wet gas window of the Utica will add to higher utilization of our gathering and processing assets in the region with limited capital outlay. Growing production from the Utica has supported recent investments and expansions of MPLX pipeline and Ohio River terminals to serve increasing regional demand. This positions MPLX to continue reinvesting in the business while supporting annual distribution increases to unit holders.

Now let me hand it back to Mary Ann for some concluding thoughts.