MPLX Lp (MPLX) Earnings

Management highlights

- Overall Financial and Capital Return Performance * MPLX delivered $1.8 billion of adjusted EBITDA in Q2 2026, a 5% increase versus Q2 2025, outpacing the impact of the late 2025 Rockies assets divestiture * The company returned over $1.1 billion to unit holders in the quarter, and has increased quarterly distributions by 12.5% in each of the last two years * Capital allocation remains disciplined: over 90% of organic growth capital is allocated to natural gas and NGL infrastructure opportunities that meet requirements for strong strategic fit, durable demand, and compelling returns - Operational Project Milestones and Expansion * In the Delaware Basin, the Secretariat One processing plant was placed into service in April 2026, and the quarter ended with 86% utilization of the basin's processing system, demonstrating strong producer demand * The Harmon Creek III processing plant began operations in August 2026, increasing total processing capacity to 8.1 billion cubic feet per day and de-ethanization capacity to over 800,000 barrels per day, added in line with the company's just-in-time capacity addition strategy * In the Northeast, Marcellus processing hit 96% utilization in the quarter with record system volumes, while Utica processing reached 73% utilization supported by strong regional production activity * The Blackcomb natural gas pipeline began commissioning activities in July 2026, and is on track to achieve full commercial service in Q4 2026 * The expansion of the Bengal NGL pipeline to 300,000 barrels per day is expected to come online in Q4 2026, providing additional takeaway capacity for growing in-basin NGL volumes * The expansion of the Delaware Basin sour gas treating system to over 400 million cubic feet per day remains on track to enter service at the end of Q4 2026, with volumes expected to ramp quickly into 2027 * Gulf Coast fractionation and export facilities remain on schedule: the first 150,000 barrel per day fractionator, 400,000 barrel per day JV LPG export terminal, and associated purity pipeline are expected to enter service in 2028, with a second 150,000 barrel per day fractionator entering service in 2029 - Strategic Market Positioning * Robust natural gas and NGL fundamentals support growing global demand for U.S. energy, and MPLX's integrated well-head-to-water value chain positions the company to capture this growth * Newly leased undeveloped acreage in the Delaware Basin (40% dedicated to MPLX's sour gas treating system) and Utica region (nearly half dedicated to MPLX assets) supports long-term throughput growth with limited additional capital outlay

Guidance

- Adjusted EBITDA growth: MPLX reaffirms expectations for mid-single digit adjusted EBITDA growth in 2026, with growth heavily back-half weighted: third quarter 2026 EBITDA is expected to be higher than Q2, and fourth quarter 2026 EBITDA higher than Q3. This project sequencing positions the company for strong adjusted EBITDA growth in 2027. - Capital spending: 2026 capital spending guidance was increased by $500 million to $2.9 billion, reflecting accelerated execution of the Gulf Coast Fractionation Project that pulls forward capital previously planned for deployment in early 2027; the project remains on budget and on schedule for 2028 in-service date. - Distribution growth: Management confirms that MPLX expects to grow its annual distribution by 12.5% again in 2026 and 2027, supported by durable cash flows, a strong balance sheet, and visible growth. - Coverage ratio: Management reaffirms that MPLX will maintain a target 1.3x distributable cash flow coverage ratio for both 2026 and 2027. The current organic project pipeline is sufficient to meet this target without requiring inorganic M&A, though the company will continue to evaluate attractive acquisition opportunities. - Capital allocation priorities: The priority order for capital allocation remains unchanged: 1) maintenance of existing assets, 2) distribution growth, 3) organic and inorganic growth investment.

Segment performance

1. Crude Oil and Products Logistics Segment: Segment adjusted EBITDA increased by $23 million year-over-year compared to Q2 2025. The growth was driven by higher business unit rates and increased butane blending, which generated over $20 million in additional benefit versus the prior year. This gain was partially offset by lower crude pipeline throughputs from planned MPC turnaround activity and seasonally higher operating expenses from planned maintenance and project spending. Pipeline volumes increased 4% year-over-year. No separate revenue contribution percentage was provided for this segment in the call. 2. Natural Gas and NGL Gathering, Processing and Logistics Segment: Segment adjusted EBITDA increased $62 million year-over-year compared to Q2 2025. Excluding the impact of the 2025 Rockies assets divestiture, segment adjusted EBITDA increased $99 million year-over-year. Gathering volumes were up 15% year-over-year, driven by production growth in the Utica, Permian, and Marcellus basins. Processing volumes increased 5% year-over-year, with Marcellus processing utilization hitting 96% for the quarter. Total fractionation volumes increased 8% year-over-year, primarily from Marcellus production growth. Sour gas treating volumes exceeded 150 million cubic feet per day for the second consecutive quarter. No separate revenue contribution percentage was provided for this segment in the call.

Risks & headwinds

Management did not explicitly discuss material operational failures or new standalone risks during the call. A standard safe harbor disclosure was provided at the opening of the call, noting that all forward-looking statements carry inherent uncertainty, and actual results may differ from projections due to unstated factors outlined in MPLX's SEC filings. No additional specific operational, financial, or market risks were detailed in the prepared remarks or question-and-answer session.

Analyst Q&A

• Q: Analyst asked about 2026 growth cadence, noting original growth guidance for 2026 was slightly higher than the current mid-single digit projection, and requested clarification on exit EBITDA run-rate entering Q4 2026, plus details on the updated Gulf Coast fractionation project timing and capital pull-forward. /

  A: Management confirmed the growth sequence: multiple major projects will ramp through the second half of 2026, with Q3 stronger than Q2 and Q4 stronger than Q3, and reaffirmed that 2026 full-year growth will exceed 2025's growth rate, aligning with prior guidance. For the Gulf Coast project, only pre-planned 2027 capital is pulled forward to 2026; the project remains on budget and on schedule for 2028 in-service date, with fractionation and export terminal facilities coming online at the same time as originally planned. Construction is progressing smoothly with strong safety performance from the on-site team.

• Q: Analyst requested details on the Titan sour gas expansion project in the Permian, MPLX's leverage to growing Permian natural gas output, and an update on the Bay Runner pipeline projects. /

  A: Management confirmed the Titan facility exceeded 150 million cubic feet per day of throughput for the second consecutive quarter, and the expansion to 400 million cubic feet per day remains on schedule and on budget for Q4 2026 in-service, with full systems integration with MPLX's existing Delaware Basin processing network. Management noted Permian natural gas output is forecast to grow to 35 Bcf per day by 2030, and incremental long-haul takeaway capacity will be needed even after current planned projects come online; MPLX will continue to evaluate and invest in additional takeaway solutions. For Bay Runner, both the original project and Bay Runner Twin (a conversion of the existing Rio Bravo pipeline) are progressing on a just-in-time schedule to support upcoming LNG facility expansion on the Gulf Coast, with optimized capital and construction efficiency.

• Q: Analyst asked to characterize MPLX's current inorganic opportunity set, and whether M&A will be bolt-on acquisitions or a larger strategic shift. /

  A: Management confirmed all inorganic opportunities must fit MPLX's existing well-head-to-water integrated natural gas and NGL strategy, which is focused on capturing growing demand for U.S. energy, and must meet the company's return hurdles to support continued mid-single digit annual growth. Inorganic opportunities are primarily expected to be bolt-on acquisitions of assets that deepen MPLX's position in core basins, such as the company's prior increase in ownership of the Bengal pipeline.

• Q: Analyst asked if the 1.3x distribution coverage target will hold for 2026 and 2027, whether M&A is required to meet the target, and if recent relative performance between MPC and MPLX has changed the company's view of the current affiliate structure. /

  A: Management reaffirmed the 1.3x coverage target for 2026 and 2027, and confirmed the existing organic project pipeline is sufficient to meet the target in 2027 without inorganic M&A, while the company will still continue to evaluate attractive opportunities. Management noted the current affiliate relationship with MPC creates value for both MPLX unitholders and MPC shareholders, and there is no plan to change the structure at this time despite recent relative performance differences.