MPLX LP. (NYSE:MPLX) Q2 2024 Earnings Conference Call August 6, 2024 9:30 AM ET
Company Participants
Kristina Kazarian - VP, Finance & IR
Maryann Mannen - Chairman, President and CEO
Kris Hagedorn - CFO
Greg Floerke - EVP and COO
Dave Heppner - SVP, Strategy and Business Development
Conference Call Participants
John Mackay - Goldman Sachs
Manav Gupta - UBS
Theresa Chen - Barclays
Keith Stanley - Wolfe Research
Michael Bloom - Wells Fargo
Neal Dingmann - Truist Securities.
Kristina Kazarian
Good morning and welcome to the MPLX’s Second Quarter 2024 Earnings Conference Call. The slides that accompany this call can be found on our website@mplx.com. under the investor tab.
Joining me on the call today are Maryann Mannen, President and CEO; Kris Hagedorn, CFO and other members of the executive team. We invite you to read the Safe Harbor statements and non-GAAP disclaimer on Slide two. 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 will turn the call over to Maryann.
Maryann Mannen
Thanks, Kristina. Good morning and thank you for joining our call. I want to take a moment to recognize Mike Hennigan's leadership as CEO of MPLX for nearly five years.
Mike's record of accomplishment in both the midstream and downstream industries has been a tremendous value to the partnership. During his tenure, we have delivered annual EBITDA and DCF growth of over $1 billion, positioning us with financial flexibility to execute our growth strategies and deliver on our commitment to return capital. We are fortunate to have Mike as our Executive Chairman of the MPLX board.
In the second quarter, adjusted EBITDA grew 8% and distributable cash flow grew 7% year-over-year. The growth of MPLX's cash flow supported the return of $949 million to unitholders, reflecting our commitment to return to capital. Producer activity remains robust across the Marcellus, Utica and Permian basins.
In the Northeast, longer laterals are resulting in higher volumes. Volume growth continues in both the Marcellus and Utica, where producers are targeting economically advantaged liquids rich acreage. The Permian basin has some of the lowest crude break evens in the country.
Production growth in the region continues to create opportunities for our well head to water strategy across crude, Natural gas and NGLs. In the second quarter MPLX closed the Whistler Transaction. Last week, MPLX and its partners reach FID of the Blackcomb Natural gas pipeline, a 2.5 bcf pipeline connecting supply in the Permian to domestic and export markets along the Gulf Coast. This project offers a compelling value proposition while providing shippers with flexible market access. Blackcomb is expected to be in service in the second half of 2026.