MPLX LP

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. 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 Christina Kazarian. Christina, you may begin.

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-gap disclaimer on slide two. 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.

Thanks, Christina. 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 represent a 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 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 extension, 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 advanced several organic growth projects. In the L&S segment, we continue to expand long-haul natural gas and crude gathering pipelines 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. In the GMP segment, we remain focused on the Permian and Marsalis basins in response to producer demand. In the Permian, construction advanced on our Tornado 2 processing plant which is expected to come online in the second half of 2022. We're also planning to build our sixth processing plant in the basin, Preakness 2, which is expected to be online in the first half of 2024. This will bring our total permanent processing capacity up to 1.2 BCF per day. And in Marcellus, our Smithburg deethanizer is expected to come online to meet incremental in-basin demand in the third quarter of 2022. Additionally, we plan to add the Harbin Creek 2 processing plant, which you'll expect to come online in the first half of 2024. This will bring total processing capacity up to 6.5 DCF per day in the Marcellus. Our capital allocation framework remains unchanged, and year to date we have returned slightly over $1.6 billion to our unit holders through distributions and unit repurchases. Today, as part of our long-term commitment to capital return, we announced an incremental $1 billion unit repurchase authorization. And with the strength and stability of the business, we will evaluate an increase to our base distribution later in the year. Shifting to slide four, this quarter we continue to enhance our ESG commitments and disclosures with the recent publication of both our annual sustainability and perspectives on climate-related scenarios report. We continue to make progress on our 2030 target to reduce methane emissions intensity 75 percent from 2016 levels. Through last year, we've achieved a 47, I'm sorry, 46 percent reduction, further enhancing the lower carbon profile of our natural gas business. We've also added a biodiversity target to develop sustainable landscapes across 50 percent of our MPL-compatible right-of-ways, or about 10,000 acres, by the end of 2025. Through the end of last year, we've already achieved nearly 10 percent of this target. We're challenging ourselves to lead in sustainable energy by meeting the needs of today while investing in an energy-diverse future that creates shared value for all of our stakeholders. Now, let me turn the call over to John to discuss our operational and financial results for the quarter.