This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk06: Welcome to the MPLX Second Quarter 2024 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 one 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.
spk07: Good morning, and welcome to MPLX's Second Quarter 2024 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 Mary Ann Mannin, President and CEO, Chris 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 Mary Ann. Thanks, Christina. Good morning, and
spk09: thank you for joining our call. I wanna 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 a billion dollars, 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 unit holders, reflecting our commitment to return a 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 NGOs. In the second quarter, MPLX closed the Whistler transaction. Last week, MPLX and its partners reached 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. This is another step in leveraging this platform for growth. MPLX has also acquired additional interest in the Bangle NGL pipeline, bringing our ownership to 45%. Bangle is a strategic asset within our NGL value chain. Progress continues on its expansion to 250,000 barrels per day which is expected to be completed in the first quarter of 2025. We believe this transaction is immediately accretive and should generate a mid-teens return consistent with our capital deployment objectives. We are confident in the future growth potential of this value chain. We also acquired an additional interest in the Wing to Webster crude oil pipeline. These recent transactions are a continuation of our strategic approach to growing cash flows. Over the last three years, MPLX has led peers on return on invested capital, distributions remain our primary method of return, and we are a return on and a return of capital business. Now let me turn the call over to Chris to discuss our growth as well as operational and financial results for the quarter.
spk05: Thanks, Mary Ann. MPLX is progressing its 2024 capital program with spending expected at $1.1 billion. Anchored in the Permian and Marcellus basins, our integrated footprint positions the partnership with opportunities to grow our natural gas and NGL assets. In the Permian, we are delivering growth through organic projects, investments in our Permian joint ventures, and bolt-on opportunities. In the L&S segment, the ADCC natural gas pipeline is placed in service early in the third quarter. In the G&P segment, we're bringing new gas processing plants online to meet increasing customer demand. The Preakness 2 gas processing plant began operations in July, and we are progressing the Secretariat processing plant, which is expected to be online in the second half of 2025. Once operational, our total processing capacity in the Delaware basin will be approximately 1.4 billion cubic feet per day. The remainder of our capital plan is mostly comprised of smaller, higher return investments, targeted expansion or de-bottlenecking of existing assets, and projects related to planned increases in producer activity. Slide five outlines the second quarter operational and financial performance highlights for logistics and storage segments. Segment adjusted EBIT increased $107 million when compared to second quarter 2023, primarily driven by higher rates, including growth from equity affiliates. High plane volumes were up year over year, primarily due to the effects of refinery maintenance in the prior year and growth projects contributing additional volumes in the current year. Moving to our gathering and processing segment highlights on slide six. The G&P segment adjusted EBIT increased $15 million compared to second quarter 2023. The second quarter of 2023 included a $13 million gain on sale of assets. Taking this into account, G&P segment EBIT increased 6% year over year. This is driven by increased volumes, including contributions from recent acquisitions, largely offset by higher operating expenses in the second quarter of 2024. Total gathered volumes were up 7% year over year, primarily due to increased drilling and production in the Marcellus and the addition of dry gas volumes from our recently acquired Utica assets. Processing volumes were up 7% year over year, primarily from higher volumes in the Marcellus and Utica, as well as the Rockies. Southwest volumes declined as growth in the Permian was more than offset by lower volumes in Oklahoma due to recent producer activity. In the Utica, processing volumes have increased 285 million cubic feet per day on 52% since the second quarter of 2023. Highly the value producers are seeing in the liquids rich acreage. Volumes on the Harmon Creek II and Preakness II processing plants are increasing, with an expected ramp profile of up to 12 months. Focusing on the Marcellus, by far our largest basin of G&P operations, we saw year over year volume increases of 15% for gathering and 5% for processing, driven by increased drilling and production growth. Fractionation volumes grew 10% due to higher ethane recoveries and higher processed volumes. We are encouraged by strong end basin demand for ethane, as well as the startup of the Mountain Valley pipeline. As the origin of MVP is connected to our mobility processing plant, its operations are positive for MPLX and its producer customers. We continue to monitor the development of data centers in the Northeast and Southwest. As demand increases for natural gas powered electricity, we will support the development plans of our producer customers. Moving to our second quarter financial highlights on slide 7, total adjusted EBIT of $1.65 billion and distributable cash flow of $1.4 billion increased 8% and 7% respectively from the prior year. Similar to prior years, in the second quarter, project related expenses were up approximately $30 million compared to the first quarter, due to the seasonality of this spend. MPLX returned $949 million to unit holders through $874 million in distributions and $75 million in unit repurchases. During the second quarter, MPLX issued $1.65 billion in 10-year senior notes, the proceeds of which we expect to use the retired senior notes due in December 2024 and February 2025. MPLX ended the quarter with a cash balance of $2.5 billion and leverage was 3.4 times. Net of cash leverage was 3.1 times. Now let me hand it back to Mary Ann for some final thoughts.
spk09: Thanks, Chris. We have delivered over 7% DCF growth on a three-year compound annual basis. We are executing our strategy and advancing growth opportunities across our value chains. In the Permian, we continue to see growth opportunities on our natural gas, NGL, and crude value chains. In the Marcellus and Utica, producer activity remains robust, supporting growth of our gathering and processing footprint. By advancing these high-return growth projects, we expect to continue to grow our cash flow. MPLX is a strategic investment for MPC. As they each pursue growth opportunities, the value of this strategic relationship is further enhanced. Based on the growth of our cash flows, we have been able to increase our distribution by 10% in each of the last two years. Strong coverage, low leverage, and growing cash flows provides MPLX financial flexibility, placing us in an excellent position to grow our distribution in the future. Now let me turn the call back over to Christina.
spk07: Thanks, Mary Ann. As we open the call for questions, we ask that you limit yourself to one question plus a follow-up. We may re-prompt for additional questions as time permits. With that, Sheila, we're ready for the questions.
spk06: Thank you. We will now begin the question and answer session. If you have a question, please press star then one on your touchtone phone. If you wish to be removed from the queue, please press star then two. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star then one on your touchtone phone. Our first question will come from John McKay with Goldman Sachs. Your line is open.
spk04: Hey, thanks, team. Good morning, and congrats again, Mary Ann. I wanted to start maybe high level on the strategic front. Done a lot of bolt-ons over the last year. I just think if you put this in the context of a billion dollars of organic spend you do on average, how should we think about that level of inorganic spend going forward and how that fits into your general mid-single digit growth pace?
spk09: Yeah, good morning, John, thanks. So a couple of things as we think about our strategy going forward and as you shared here, about a billion dollars annually in our capital programs, but for the last few years, we've also been filling out underutilized capacity and investing in our JVs as well. We continue to see these as inorganic opportunities and organic opportunities for us to meet our goal of mid-single digit growth. If you look over the last year or so, we've done transactions in the Permian with our tornado transaction or Tonado, excuse me, Utica, the Summit JV, buyout or increased bangle ownership, expansion of the Whistler platform with Rio Bravo. So we continue to execute the growth strategy, reinvest in the business in what we think to be a capital-efficient manner. We'll ensure that we are employing strict capital discipline regardless of whether it's organic, inorganic, or focused on our JVs with the full intent of being able to return capital to unit holders.
spk04: All right, thanks for that. Maybe pivoting, you guys touched on this a little bit in the prayer remarks, but wondering if we can just go around the horn, maybe you guys touched a bunch of different basins on the GNP side. Would love to hear how volumes are trending maybe versus your expectations earlier in the year, and if we look across the footprint more broadly in a maybe better gas macro in 25, when you'd expect to see that more fulsome inflection start to pick up.
spk12: Good morning, John, this is Greg. You know, if you look at the gas prices, low gas price environment versus liquids, particularly crude and NGL, and that has led to some announced curtailments, particularly the dry lane areas, Northeast, Marcellus in particular, and the Hainesville. The areas that we're in, we're really focused on processing in rich gas areas with some dry gas, but in the areas where dry and lean gas production is in our footprint, in the Utica, for example, producers tend to have takeaway commitments on the residue gas pipelines, and also, in some cases, hedging strategies continue to drive production. So we're really in our footprint not seeing that impact, but we are continuing to see as more rigs move from the dry gas areas into the rich gas and crude areas. And the crude production comes with associated gas, it's particularly rich in NGLs, so we really see high NGL content with that gas, and we're taking advantage in places like the Permian, though as Chris mentioned with growth, and Marianne with Preakness II coming online, and also in the Marcellus super rich area, which is by far our largest, almost 6 BCF a day of processing there, and we just added another plant. So we're seeing growth in those liquid rich areas, and that's great, but one area that's, it's not new because we built it out over 10 years ago, but it has been overlooked a bit is the Utica, and we're really excited about what's going on there now. Not only are we seeing existing customers move rigs over into the condensate rich gas, and even now the light oil window, and that is unique to the Utica, beyond other areas with rich gases, that light oil window. So we're not only seeing existing customers move in there, but we're also seeing some new, a handful of new producers move in and buy up acreage. So you have an untapped resource there, which is really a light crude oil resource. So it is, it's unique to the Northeast, and it's really driving a lot of activity, and we're positioned with surplus pre-built processing, gathering, and fractionation capacity, both de-ethanization and C3 plus fractionation capacity. So we're really excited about this opportunity to use that existing capacity. And overall now we're seeing increasing rig counts in the Utica.
spk04: All right, I appreciate all the details, Greg. Thanks
spk12: everyone.
spk06: Thanks,
spk09: John.
spk06: Thank you. Next we will hear from Manav Gupta with UBS. You may proceed.
spk01: Congrats, Manav, on a very strong start on both MPLEX and MPC side. My first question is, can we get a little more details on the Blanco pipeline? It looks like a very interesting project, so what are the benefits of it? How do you see this as developing? If you can, I'm sure you can. Can you give us some more details on this project?
spk09: Good morning, Manav, thank you. Yes, happy to do that. I'll give Dave the opportunity to share some of the specifics around Black Home, but as you know, our well-headed water strategy continues to be an important piece of the long-term growth of MPLEX. Over the last several quarters, we've been taking steps. You know the Whistler transaction, it gave us the access through the JV for the Rio Bravo pipeline. Black Home just announced FID. We think this is another important piece, as it connects the Permian Basin, Taguadolce in South Texas. So again, hopefully what we're demonstrating here is we are able to continue to put together key elements of this strategy that will allow us to continue this -single-digit growth that we've done over the last few years and give us an outstanding platform for that well-headed water strategy. I'm going to pass it to Dave and let him give you a little more color, specifically on Black Home.
spk13: Thanks, Mary Ann. When you think of Black Home, and Mary Ann touched on it, you know, I think the best way to think about Black Home, it's just the continued evolution of our NatGas well-headed water strategy. And it's all foundationally built on the Whistler relationship. So you think of the Whistler, the first of the pipes coming out of the basin. And as you can see with the continued growth in the Permian, which we believe, along with everybody else, it's got a lot of runway, incremental capacity to come out of the basin was necessary, which is the Black Home. But Black Home's also just a foundation to get to the Gulf Coast. So whether you think the remaining links of those value chains, ADCC, which just came in service, the Rio Bravo pipeline, getting the LNG facilities, it's all part of our long-term strategy of that integrated value chain. And we're excited about Black Home because of not only the capacity and the value chain buildup, but the partners that we have in there. And so I think you'll continue to see those value chains grow as the basins continues as a capacity to export and the demand down in the Gulf Coast. So look forward to continue to give you updates.
spk01: Perfect. My quick follow-up here is, adjusted free cash flow after distribution was $5.74. So the cash is building. Any thing you want to say on the uses of this cash as it continues to grow? And then I'll turn it over. Thank you.
spk09: Thanks, Manav. Yeah, so one of the things that we think we've continued to build over the last several quarters is our financial flexibility. I talk about a return on and a return of capital business. As I mentioned, we increased our distribution 10% in the last two years, and that continues to be a primary source of our ability to return capital. Second, you've seen we did do share repurchase again this quarter. We believe this equity is undervalued and certainly another mechanism for the return of capital. Growth, as we've been talking about here, putting that capital to work in these high return projects particularly anchored in the Marcellus and the Permian with the intent of growing those cash distributions in the future, and that's certainly another use there. So that financial flexibility we think is critically important to allow us to do that. I'm going to pass it to Chris and allow him to share a little bit more on some of the specifics of the cash balance.
spk05: Thanks, Mary Ann. Yeah, Manav, what I would highlight to folks at the end of the quarter, as you've seen, we have about $2.5 billion of cash on the balance sheet. So just reminding of that big number, we have maturities coming up in December of 2024 and February of 2025 that will pay off with that cash balance or some of that cash balance. As Mary Ann articulated, we are excited about the continued growth in our adjusted free cash flow after distributions. And as that cash builds, it is again returning it to our capital allocation framework of return of and return on capital.
spk01: Thank you.
spk06: Our next question will come from Jeremy Tenet with JP Morgan. Your line is open.
spk10: Hey, good morning. This is Rothen Redion for Jeremy. I wanted to follow up on some of the previous comments and appreciate that that historical mid-single digit EBITDA growth is not future guidance, but given a number of the smaller creative deals MPLEX has participated in, could you frame up how we might think about future growth above that figure and just any potential there?
spk09: Certainly, good morning. So as you know, we've targeted and you said that it is never necessarily been indicative of guidance, but if you look over the last three years, compound annual growth in our adjusted EBITDA in excess of 6%, distributable cash flows almost 8%, and our quarterly distribution growth, 7%. So it has certainly been our target, but if we are able to execute in similar fashion, I mentioned earlier some of the key transactions that we have worked on in the last year. So our goal obviously would be to continue to target that with the intent of seeing EBITDA growth beyond that as we put our capital to work and execute some of these key projects that we've been sharing with you. So again, a goal which we think we've been able to achieve, but certainly opportunity that we see given the number of projects, and again, our commitment to executing the growth strategy and ensuring that we return capital to unit holders in the manner in which we just shared.
spk10: Got it, and then on that Permian to Wellhead to Water strategy, how do you think about, I guess, additional capital investment as you see it at this point where you might need to invest, whether that be upstream or downstream?
spk09: Yeah, so there's a few areas, obviously, when we think about continuing to build that out that we are evaluating, and I'll let Dave give you a few thoughts there, but certainly over the next few years, given the strength of that basin, given the opportunities that we see in particular, getting that takeaway capacity and getting it to water, and then you look at the assets in particular on the MPC side as well, we think there are opportunities for us to continue to effectively put capital to work.
spk13: Yes, maybe I'll touch on two of the value chains. Go back to NatGas. We think of the NatGas side, I kind of laid out that roadmap or the footprint. We think that what we're building out not only achieves our strategy of that Wellhead to Water, but also provides Permian shippers with optimal flexibility. So I think as you think about incremental capital investment, you can think about how we continue to ensure that flexibility for those potential shippers. When you think about the NGO value chain, especially with our Bangle expansion that we talked about and also our incremental ownership in Bangle, and we've talked about our Texas City Frac project and the opportunities there. So I think when you think about capital and you think about how we evaluate that last leg of the value chain, all the way from the gathering processing, the Bangle long haul pipe, into fractionation and the export terminal and tankage, we'll continue to evaluate that project through the lens of strict capital discipline. We'll evaluate versus other alternatives and options that are out there for us to achieve that strategy long term. So those are just a couple ways, I think, as you look forward and we think about capital investments, whether it be at the MPLX level or down at the JV level, that we'll continue to build out those value chains.
spk10: Got it, thanks for the time.
spk06: Next, we will hear from Teresa Chen with Barclays. Please go ahead.
spk08: Morning, first, wanted to also express congratulations to both Marianne and Mike. Following up on the Permian Wellhead to Water NGL strategy, would you be able to provide a little bit more detail on the economics related to your 20% incremental interest in Bangle? Not sure if you could share the purchase price and then also just the current progress on the Texas City Frac. And as we think about that last piece to water, to Dave's earlier comments, in terms of speech market, the timeline to bring online export infrastructure, assuming that it would be a brownfield build.
spk09: Good morning, Teresa, and thank you for your comment. So on Bangle first, look, we think that Bangle has been and continues to be a key strategic asset as we build out that NGL value chain. And again, longer term, we're really confident in the growth profile of Bangle and more importantly, our ability to compete effectively in that basin. The transaction gives us a total of 45% ownership and again, an important piece of the Wellhead to Water strategy. Also, that transaction we believe is immediately accretive and we expected to generate mid-teens return. We had a ROFO on that transaction. As it relates to your question on Texas City, we're trying to ensure that we maintain optionality in our Wellhead to Water strategy there. We have evaluated other alternatives as well, continue to do so. And as we have any further conclusions around how we'll build that out, we'll continue to bring that to you as well.
spk08: Got it. And then on Black Coma, are you able to share any economics related to the project either in build multiples or anticipated returns?
spk09: No, we've not shared any of the anticipated returns at this point, early stages as we're continuing to put that together. But we've not at this point yet, Teresa. Again, confident in the pipeline itself and in its critical contribution really to our strategy, but have not shared that at this point.
spk08: Understood. Thank you.
spk06: Our next question comes from Keith Stanley with Wolf Research. Your line is open.
spk03: Hi, good morning. Wanted to follow up first on the $2.5 billion of cash on the balance sheet. So leverage is well below your four times target. EBITDA is growing nicely. You're generating a lot of excess free cash flow. So why use cash to repay, I think it's $1.6 billion of maturing debt in December and February instead of refinancing? And at what point would you view a level of cash on the balance sheet as inefficient from a capital structure perspective?
spk05: No, thank you, Keith, for the question. As we mentioned, we continually look to manage our liability towers. That's something that we do continually and try to make sure that we do that in an effective way. What I'd tell you about the $2.5, as you noted, cash is fungible. But indeed, we do, as we've earmarked that, we have earmarked it for the December and the February notes. I will tell you, as we sat at a net leverage ratio of 3.1, we do see tremendous strength in our balance sheet. So we think that as we've communicated in the past, we have room up to 4.0 in our leverage. So as we evaluate our opportunities going forward, we've talked about the wellhead to water strategy for NGLs. We've talked about the expansion we're doing with Whistler. We'll continue to evaluate where our balance sheet sits and how we put that cash and potential cash to work.
spk09: Keith, it's Mary Ann. I just wanted to maybe follow up on a few of Chris's comments as well. One of the reasons why, as you appropriately state, that we've seen the improvement in our leverage, frankly, is because what we've seen is the growth in our EBITDA. So take your point. That financial flexibility, we think, is important. We're not stepping away from our commitment, if you will, or our belief around the leverage target. That's an important piece of our financial flexibility going forward. So no change in that whatsoever.
spk03: Thank you both for that. Second, just a follow-up question on the integrated NGL strategy and possibly moving into frac and exports. Some of your competitors have some chunky export capacity additions that they're working on, and then we've had the night time restrictions lifted too. So how does that factor into your thinking on potentially entering the export business? It seems like your competitors are kind of building pretty aggressively there.
spk13: Keith, this is Dave. Let me kind of expand on that a little bit. So yeah, you're exactly right. And I think the competitors that you're referencing, they're building out the export capacity is a signal, and we're aligned with it, that we need more export capacity to be able to clear the volume to the international market. That's a little bit back to Teresa's question too on timing. As we're going through our strategy of finalizing the remaining links to that value chain from fractionation export facilities, I don't say time of us in essence, but it's something that's top of our radar as we continue to evaluate that and other options to do it. So very similar, I'll also compare it a little bit to the NatGas value chain strategy, the LNG facilities, and the build out of the LNG to support the capacity of NatGas coming out of the Permian. So it's a little bit of a chicken the egg, what part of the value chain do you build out first? And I think we've taken the approach of start with the GMP, move down the long haul pipes into the fracks and the dock versus going backwards. So I think it's a little bit of the market supports it and a little bit of how you want to build out your well head to water strategy. Hope that helps. Thank you very much.
spk06: Once again, if you would like to ask a question at this time, you can press star one and record your name when prompted. Next, we will hear from Michael Bloom with Wells Fargo. You may proceed.
spk11: Thanks. Good morning, everyone. I wanted to drill down on one of the comments and prepare the marks. Now that Mountain Valley pipeline has been in service for a little bit of time here, I'm curious if you're seeing any change in producer behavior as a result around your system, and do you see this potentially providing any additional investment opportunities for you kind of upstream of the pipeline?
spk12: This is Greg again, Michael. I think that if you look at current production out of the northeast and the Marcellus Utica, it's like 34 billion cubic feet a day of the 100 billion total. And we're really excited about MVP and the incremental takeaway capacity that that will provide from the basin as it ramps towards I believe the stated nameplate of 2 BCF. So it does make an incremental difference in terms of takeaway, and that's very much a positive, particularly as that ramps over the next few years. We already have 90% a little over 90% utilization of our Marcellus plants, and so there's a little bit more room to grow, and we're focused on filling out that remaining piece up to 100 and also growing, as is the case with Harman Creek, too. So I think there's a lot of factors that go into how that capacity out of the basin is filled. One of the things I mentioned earlier was some of the dry lean gas production maybe being curtailed or dropped down. That opens up capacity out of the basin, too. So in summary, any capacity helps anytime you look at a constrained basin, but there is room for us to grow, and we're still very bullish on the Marcellus and now the Utica.
spk11: Got it. Thanks for that. And then maybe just one other question on Blackcomb. I know you're not providing much, but maybe you could tell us, would you expect there to be project-level debt financing for this project?
spk05: Yeah, Michael, thank you. We will continue to evaluate that, but with a project like this, project-level financing usually makes sense.
spk11: Perfect. Thank you.
spk06: Thank you. And our last question will come from Neil Dingman with Truist Security.
spk02: Morning. Thanks for getting me in. My first question just on the Freakness II Processing Plan. Can you just remind me how quickly capacity will ramp there and the potential for maybe additional upsides?
spk12: Yeah, Neil, this is Greg. We expect, you know, we continue to build out new capacity, and we expect Secretariat, our next plant after Freakness II, to come into service in the second half of next year. So we try to pace these plants to where, as we run out of capacity with one plant, we're sort of there with the next plant to move into. So hopefully that gives you some feel for, you know, the ramp timing of Freakness II. It does.
spk02: Some lovely upside there. And then my second question, maybe just broader on your Marcellus gathering volumes after some earlier comments you made on the UNIC. I'm just wondering, could you all talk about just, you know, it looked like volumes continue to notably increase there. I think you all show that 15 percent -over-year second quarter volumes. I'm just wondering, can we assume that volumes can continue to improve there, that's like continue to expand, as one of the other students operated to suggest?
spk12: Yeah, that's a great question. The Marcellus is one of the areas where we only gather, you know, not even 50 percent of the gas that we actually process. There are other third parties gather the majority of the gas. In the particular area where we're growing, which in this case is the Harmon Creek II plant that's come online and is ramping up, that happens to be an area where we're also gathering the production. So that's why you're seeing, that's actually rich gas production growth that you're seeing. So we expect that to, we'd expect that continue to grow along with the volume ramp up in Harmon Creek II. Thanks, Mike. Okay.
spk07: All right, Sheila, if we don't have any other further questions, thank you for joining us today and thank you for your interest in MPLX. Should you have additional questions or would you like clarifications on any of the topics discussed today, the Investor Relations team is available at any time to take your calls. Thank you.
spk06: Thank you. That does conclude today's conference. Thank you for participating. You may disconnect at this time.
Disclaimer