MPLX LP Q4 FY2024 earnings call

• In 2024, MPLX achieved full year adjusted EBITDA of $6.8 billion, an 8% year-over-year increase. - The company invested $1.7 billion in organic growth projects and strategic acquisitions in 2024. - In November 2024, MPLX increased its quarterly distribution by 12.5%, marking the third consecutive year of a 10% or more distribution increase. - For 2025, MPLX has a capital expenditure outlook of $2 billion, with 85% of this growth capital allocated to opportunities within the Natural Gas and NGL Services segment. - MPLX announced a $2.5 billion investment in a Gulf Coast Fractionation Complex and export terminal as part of its NGL wellhead to water chain strategy. - The company is progressing various projects in different basins, such as constructing the Harmon Creek III processing plant in the Marcellus Basin, expanding crude gathering pipelines in the Crude Oil and Products Logistics segment, and advancing pipelines like Blackcomb and Rio Bravo in the Permian Basin.

In the Crude Oil and Products Logistics segment, the segment adjusted EBITDA reached a new record, increasing $60 million compared to the fourth quarter of 2023, driven by higher rates and throughputs. For the Natural Gas and NGL Services segment, it also established a new record, with adjusted EBITDA rising $79 million year-over-year. This was due to increased volumes, including contributions from existing joint ventures in the Utica and Permian basins, and growth from equity affiliates. Gathered volumes in the Natural Gas and NGL Services segment grew 8% year-over-year, processing volumes increased 6% year-over-year, and total fractionation volumes saw a 14% year-over-year growth.

• MPLX anticipates mid-teens returns on its 2025 capital investments in the Natural Gas and NGL Services segment. - The company expects to maintain a mid-single digit EBITDA growth profile over multi-year periods. - The $2 billion capital expenditure planned for 2025, with 85% allocated to Natural Gas and NGL Services, is aimed at driving growth and mid-teens returns. - The $2.5 billion investment in the Gulf Coast Fractionation Complex and export terminal is expected to support MPLX's NGL value chain and supply growing global demand for LPGs.

No specific, detailed risks were prominently discussed in the transcript; general energy market uncertainties and regulatory changes could potentially impact operations, but no in-depth risk analysis was provided.

Q: Could you elaborate on the strategic rationale behind the NGL value chain expansion and the partnership with ONEOK?

A: The Gulf Coast NGL value chain expansion complements MPLX's existing asset base and leverages existing infrastructure. The joint venture with ONEOK for the export terminal and a bidirectional purity pipeline provides marketing support and storage connectivity, enhancing the terminal's competitiveness and creating value for customers.

Q: Will MPLX continue to achieve double-digit distribution growth?

A: MPLX is optimistic about mid-single digit EBITDA growth, which supports durable distribution increases. The 12.5% distribution increase in 2024 was based on the belief in durable cash flows from ongoing projects, and the company expects similar growth to support future distribution increases.

Q: How does the BANGL pipeline expansion fit into MPLX's wellhead to water strategy?

A: The BANGL pipeline is being expanded to 300,000 barrels per day by the second half of 2026, which supports the transport of NGLs from the wellhead to the water, aligning with MPLX's strategy to integrate the NGL value chain from wellhead to export.