MPLX LP

Later, we will conduct a question-answer session. Press star 1 on your touch-tone 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.

Welcome to MPLX's second quarter 2025 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 Marianne Manin, President and CEO, Chris Hagedorn, CFO, and other members of the executive team. We invite you to read the Safe Harbor Statements on slide two. We will be making forward-looking statements today. Actual results may differ. 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 thank you for joining our call. Last week, we announced the strategic acquisition of North Wind Midstream for just under $2.4 billion. Northwind provides sour gas gathering and treating services in Lee County, New Mexico. The system adds over 200,000 dedicated acres in the Delaware Basin, 200 plus miles of gathering pipelines, two operating acid gas injection wells, and a third permitted. The system currently has 150 million cubic feet per day of sour gas treating capacity. we will be completing the expansion to 440 million cubic feet per day, expected to be online in the second half of next year. The system is supported by minimum volume commitments by top regional producers. The transaction is expected to be immediately accretive to MPLX's distributable cash flow and represents a seven times multiple on forecasted 2027 EBITDA after the treating system reaches full capacity. The anticipated mid-teen unlevered return is inclusive of incremental capital spend associated within process expansion activity. Increased crew drilling activity in the eastern edge of the northern Delaware basin has been enabled by increased sour gas treating and AGI well capacity provided by these assets. The assets will provide prompt treatment solutions for existing and new producer customers. Our fee structure comprises gathering, compression, processing, as well as more extensive CO2 and H2S treating. The higher levels of CO2 and H2S merit a higher fee structure compared to other regions. On average, this gets to an aggregated rate significantly above other regions, These assets are complementary and adjacent to our existing Delaware Basin natural gas system and will expand MPLX's treating and blending operations. The addition of 200,000 dedicated acres will increase MPLX's access to natural gas and NGL volumes. The optionality to direct these new volumes through our integrated system will accelerate our growth opportunities in the Permian. MPLX. has also completed two previously announced Permian-based acquisitions. In June, we closed on the acquisition of an incremental 5% stake in the Matterhorn Express pipeline, further enhancing our integrated natural gas value chain in the Permian Basin. In July, we closed on the remaining 55% interest in the Bengal NGL pipeline system. Full ownership of Bengal and its expansion opportunities enhance our Permian platform as we connect growing NGL production from the wellhead to our recently announced Gulf Coast fractionation facilities. The progress and execution of our strategic initiatives give us conviction in the sustainability of our mid single digit adjusted EBITDA growth outlook for 2025 and beyond. In the second quarter, We reported adjusted EBITDA of $1.7 billion, a 2% increase year over year. For the first half of the year, we achieved 5% adjusted EBITDA growth versus the first half of 2024. In the Marcellus and Utica, rig counts remain steady and volumes remain strong. Longer laterals are resulting in higher production volumes, and we expect volumes to grow in the second half of the year. Producer consolidation further illustrates the value seen in the liquids-rich acreage of the Utica, where condensate development activity continues to increase. In the Permian, steady drilling activity, rising gas-oil ratios, and the progression of export projects will support growth opportunities for our business. More broadly, we expect natural gas demand will accelerate over the next few years to provide increased electricity generation required for data centers and overall electric grid demand. As demand for natural gas-powered electricity rises, MPLX is well positioned to support the development plans of its producer customers. MPLX is expanding its core business by constructing processing facilities on a just-in-time basis, maximizing the utilization of existing assets, optimizing value chains, and strengthening its strategic partnership with MPC. MPLX is advancing its strategic growth objectives within the Permian. Our seventh processing plant, Secretariat, is expected to be online by the end of 2025. Secretariat's 200 million cubic feet per day of processing capacity will increase MPLX's total Permian processing capacity to 1.4 billion cubic feet per day. we are progressing the expansion of Bangle's main line from 250 to 300,000 barrels per day, which we expect to enter service in the second half of next year. Bangle is an instrumental piece of MPLX's integrated Permian and GL value chain, and it will deliver volumes to MPLX's two Gulf Coast fractionation facilities, which are being constructed near the Galveston Bay refinery. The first frack. as well as our joint venture export terminal, is expected to enter service in 2028. And we anticipate the second PRACT will enter service in late 2029. Once complete, MPLX's fully integrated NGL value chain will stretch from the wellhead to water on the Gulf Coast and will supply LPGs to a growing global market. Within natural gas, we are advancing our value chain strategy MPLX and its partners recently upsized the Traverse natural gas pipeline from 1.75 to 2.5 BCF per day following strong customer demand. The additional capacity for bi-directional service between Agua Dulce and Houston area highlights the value shippers ascribe to assessing multiple premium markets on the Gulf Coast. The continued build-out of our Permian to Gulf Coast natural gas system enhances our ability to provide shippers with premium market access and superior flexibility while enhancing MPLX's natural gas value chain through additional growth opportunities. MPLX has announced $3.5 billion of bolt-on transactions in 2025, and we remain on track to invest $1.7 billion on our organic growth plans in 2025, have already deployed 40% of this capital in the first half of the year. Over 90% of MPLX's total growth capital is being allocated to opportunities within our natural gas and NGL services segment. In the Marcellus, our largest operating region, construction of our Harmon Creek III processing plant and fractionation capacity align with producer drilling plants. This new complex will feature a 300 million cubic feet per day gas processing plant, and a 40,000-barrel-per-day de-ethanizer supported by strong producer commitments. By the second half of next year, we anticipate MPLX's gas processing capacity in the northeast will reach 8.1 billion cubic feet per day, and fractionation capacity will reach 800,000 barrels per day. In our crude oil and products logistic segment, we are expanding crude gathering infrastructure in the Permian and Bakken Basins. advancing butane blending initiatives at our product terminals, developing new market outlets, driving organic volume growth through our integrated network, and pursuing other high-return projects aimed at maximizing the utilization of our assets. We are firmly committed to growing the partnership through our lens of strict capital discipline. We expect mid-teen returns on our investments and are confident that successful execution of these projects will extend the durability of our mid single-digit growth trajectory. This positions us to continue reinvesting in the business while supporting consistent annual distribution increases. Our strong financial flexibility enables us to pursue strategic acquisitions that complement our organic growth plans. We stay disciplined in our approach and have ample capacity to pursue more opportunities while maintaining leverage below four times. With a pipeline of growth opportunities, we are well positioned to generate resilient cash flows that underpin our commitment to deliver long-term value and return capital to unit holders. Now let me turn the call over to Chris to discuss our operational and financial results for the quarter.