MPLX LP's (MPLX) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 2, 2022 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the MPLX Second Quarter 2022 Earnings Call. My name is Sheila and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Kristina Kazarian

Good morning, and welcome to the MPLX second quarter 2022 earnings conference call. The slides that accompany this call can be found on our website at mplx.com, under the Investor tab. Joining me on the call today are Mike Hennigan, Chairman and CEO; John Quaid, CFO; and other members of the executive team. We invite you to read the safe harbor statements and non-GAAP disclaimer on Slide 2. It's a reminder that we will be making forward-looking statements during the call and during the question-and-answer session that follows. Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there as well as in our filings with the SEC.

With that, I'll turn the call over to Mike.

Mike Hennigan

Thanks Kristina. Good morning, everyone. Thank you for joining our call. Earlier today, we reported second quarter adjusted EBITDA of $1.5 billion. Our operating results this quarter represented 6% increase from the second quarter of last year. This performance highlights the continued resiliency of our base business, tailwinds from higher NGL prices, as well as the growth coming from recent capital investments.

In late June, we've renewed several pipeline contracts with MPC. These pipeline systems are fit for purpose and integral to MPC’s refining and marketing system. The renewal and extension of these contracts make economic and financial sense for both entities. Contracts now have extended terms to 2032 and have two automatic renewal provisions, which will allow for an additional 10 years of extensions, which could take them out to 2042.

We continue to view the business as a return on as well as a return of capital business. And this quarter, we advance several organic growth projects. In the L&S segment, we continue to expand long haul natural gas and crude gathering pipeline supporting the growing Permian and Bakken regions. Specifically in the Permian, working with our partners, we continue to progress our natural gas strategy with the expansion of the Whistler pipeline from 2 bcf per day to 2.5 bcf per day, along with laterals into the Midland basin and Corpus Christi markets.