MPLX LP

Welcome to the NPLX second quarter 2020 earnings call. My name is Missy 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. Press star 1 on your touchtone phone to enter the queue. Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian. Kristina, you may begin.

Good morning and welcome to the MPLX Second Quarter 2020 Earnings Webcast and Conference Call. The synchronized slides that accompany this call can be found on MPLX.com under the Investor tab. On the call today are Mike Hennigan, President and CEO, Pam Beal, CFO, and other members of the management team. We invite you to read the Safe Harbor Statements and non-DAF 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. Now, I will turn the call over to Mike Hennigan for opening remarks.

Thanks, Kristina. Good morning. Thank you for joining our call. As we expected, impacts from the COVID-19 pandemic continued to create challenges across our business during the second quarter. Specifically, significantly lower levels of demand for crude and refined products decrease the need for our logistics and storage services, while production curtailments in response to lower prices pressure the gathering and processing systems we operate. In response to this challenging business environment, on our last quarter call, we announced proactive steps to reduce our forecasted 2020 capital spending target by over $700 million to Thank you very much. Turning to slide four, our performance during the second quarter highlights the stability of our underlying businesses, the quality of our contracts, and the execution on our identified steps to help offset what we knew would be a challenging environment. Earlier today, we reported adjusted EBITDA for the second quarter of 2020 of $1.2 billion, relatively flat versus our first quarter 2020 EBITDA. Our second quarter EBITDA exhibited less volatility than we estimated, primarily due to operating expense reductions that we realized earlier than anticipated in the L&S business, whereas our G&P segment performed roughly as expected. Turning to slide five, the other key element of our path to positive free cash flow is continued capital spending discipline. The process of high grading our capital portfolio has been underway since the combination with A&DX last year. with the growth capital target progressively reduced from about $2.6 billion when the combination closed to our latest 2020 target of about $900 million announced last quarter. We are on track to achieve our 2020 reduction of over $700 million as we continue to focus on opportunities with the most attractive returns. Overall, we continue to target about 75% of our growth capital target towards the L&S side of the business, and this growth capital spend target remains primarily related to L&S projects that were already underway, including the Wink to Webster crude oil pipeline and the Whistler natural gas pipeline. Capital spend on the GMP side continues to be adjusted dynamically to ensure we are bringing infrastructure online just in time to meet our producer customer needs, especially in the current environment. Turning to slide six, I want to take a moment to comment on sustainability and our role as an industry leader. We recently published our 2019 sustainability report, highlights of which can be found on slide 20 in the appendix. The report is greatly expanded this year in terms of content and disclosure and outlines our commitment to provide information consistent with the many reporting frameworks that are influential in the investment community. As such, the report expands upon our recent efforts in environmental, social, and governance aspects of our business. I wanted to take a moment to touch on recent events that have impacted many places where we live and work. We are committed to promoting diversity and inclusion in our workplace and in the communities in which we operate. I firmly believe that we all have a role and a responsibility in creating shared value in our communities. Understanding each other starts with meaningful dialogue, and ultimately that's how we'll make progress together. Now let me turn the call over to Pam to discuss our quarterly results.