MPLX LP (NYSE:MPLX) Q3 2023 Earnings Conference Call October 31, 2023 9:30 AM ET

Company Participants

Kristina Kazarian - VP, Finance & IR

Michael Hennigan - Chairman, President and Chief Executive Officer

John Quaid - Executive Vice President and Chief Financial Officer

David Heppner - Senior Vice President of MPLX GP LLC

Shawn Lyon - SVP, Logistics & Storage

Gregory Floerke - Executive Vice President and Chief Operating Officer

Conference Call Participants

John Mackay - Goldman Sachs

Theresa Chen - Barclays

Brian Reynolds - UBS

Bharath Reddy - JPMorgan

Keith Stanley - Wolfe Research

Michael Blum - Wells Fargo

Doug Irwin - Citi

Neal Dingmann - Truist Securities

Operator

Welcome to the MPLX Third Quarter 2023 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

Thank you, Sheila. Good morning, and welcome to the MPLX third quarter 2023 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 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'll 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.

Michael Hennigan

Thanks, Kristina. Good morning, everyone. Thank you for joining our call. Earlier today, we reported third quarter adjusted EBITDA of $1.6 billion and distributable cash flow of $1.4 billion, each set a new quarterly record for MPLX with both increasing over 8% year-over-year.

Our L&S business set a new record for crude pipeline throughput and saw strong terminal throughputs, demonstrating the value of our relationship with MPC. In our G&P business, we saw record throughput in our processing and fractionation operations driven mainly by our assets in the Permian and Marcellus basins.

Our long-term production outlook for our G&P producer customers in our key basins remains largely unchanged. In our largest basin, the Marcellus, the cost to develop remains at the low end of the cost curve and still below current commodity prices, we expect to see maintenance level drilling activity continue. While in the Permian, crude prices remained strong and prices for associated gas do not significantly impact producer activity. Our integrated footprint in these basins position the partnership with a steady source of growth opportunities.