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    MPLX
    Earnings call· Mar 2026(Q1 FY26)

    MPLX Q1 FY26 earnings call MPLX

    May 5, 2026 Source

    Executive summary

    MPLX Q1 FY26 — Strong EBITDA and Project Execution Drive Confidence in Future Growth

    MPLX delivered robust Q1 FY26 adjusted EBITDA and significant unitholder returns, underpinned by strong project execution and strategic investments in natural gas and NGL infrastructure. The company is confident in its back-half weighted growth trajectory for 2026, driven by key projects coming online, and remains committed to its mid-single-digit growth target and distribution increase framework.

    Highlights

    5

    • Adjusted EBITDA exceeded $1.7 billion in Q1 FY26, enabling over $1.1 billion in unitholder returns.

    • Secretary at ONE processing plant (200 MMcf/d capacity) entered service in April, with Harmon Creek III and Titan complex expansion on track for later in 2026.

    • Gathering volumes increased 10% year-over-year (excluding divestitures) due to production growth in the Utica and Permian basins.

    • Processing volumes increased 2% year-over-year, driven by Marcellus and Permian production.

    • Marcellus processing utilization was 94% for the quarter, demonstrating strong demand for new capacity.

    Concerns

    5

    • Segment adjusted EBITDA for Gathering & Processing decreased $42 million year-over-year, primarily due to a $45 million impact from 2025 asset divestitures and lower NGL prices.

    • Crude pipeline throughputs decreased 4% year-over-year due to Marathon's refining turnaround and maintenance activities.

    • Terminal volumes decreased 4% year-over-year due to less favorable market dynamics and refining industry turnaround activity.

    • A Winter Storm in January resulted in a roughly $13 million headwind to Q1 results.

    • A negative mark-to-market of $56 million was recognized from NGL price hedging, though expected to be offset by physical gains.

    Guidance & targets

    9
    CategoryTargetConfidence
    Year-over-year EBITDA growth
    Exceed that of 2025
    high materiality
    High
    Secretary at TWO processing plant capacity
    300 million cubic feet per day
    medium materiality
    High
    Blackcomb natural gas pipeline in-service
    Fourth quarter
    medium materiality
    High
    BANGL pipeline expansion capacity
    300,000 barrels per day
    medium materiality
    High
    Organic growth capital plan deployment
    90% toward natural gas and NGL opportunities
    high materiality
    High
    Harmon Creek III in-service date
    Third quarter
    medium materiality
    High
    Distribution increase
    12.5%
    high materiality
    High
    Titan II completion
    End of this year, 2026
    medium materiality
    High
    Iger pipeline online
    Second half of 2028
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Crude Oil & Products Logistics
    Segment adjusted EBITDA increased primarily due to higher rates across business units, partially offset by lower crude pipeline throughputs and terminal volumes. Lower throughputs were driven by Marathon's refining turnaround and maintenance activities in the Midwest and Gulf Coast regions, and less favorable market dynamics.
    Crude pipeline throughputs: decreased 4% YoYTerminal volumes: decreased 4% YoY
    		———increased $14 million
    Gathering & Processing
    Segment adjusted EBITDA decreased primarily due to a $37 million one-time benefit in Q1 2025, a $45 million impact from 2025 noncore asset divestitures, lower natural gas liquids prices, and higher operating expenses. These factors offset growth from equity affiliates and increased volumes inclusive of acquisitions. Gathering volume growth was driven by production in the Utica and Permian, while processing volume growth was from Marcellus and Permian. Fractionation volumes decreased due to lower ethane recovery in the Marcellus from elevated regional gas prices.
    Gathering volumes (excluding Rockies divestiture): up 10% YoYProcessing volumes: increased 2% YoYMarcellus processing utilization: 94%Total fractionation volumes: decreased 3% YoY
    		———decreased $42 million

    Operational metrics

    10
    Adjusted EBITDA
    $1.7 billion
    Q1 FY26

    Enabled return of over $1.1 billion to unitholders.

    Return to unitholders
    $1.1 billion
    Q1 FY26

    Enabled by adjusted EBITDA of over $1.7 billion.

    Mid-single-digit growth trend
    7.5%
    3-year period

    Historical trend for mid-single-digit growth.

    NGL price sensitivity
    $20 million
    Annual

    Expected annual impact to segment adjusted EBITDA for every $0.05 change in weighted average NGL price.

    NGL price risk hedge coverage
    80%
    Q1 FY26

    Economic hedge executed to manage NGL price exposure.

    Negative mark-to-market (NGL hedge)
    $56 million
    Q1 FY26

    Recognized during the quarter, expected to be offset by physical gains over the course of 2026.

    Project-related expenses sequential increase
    $50 millionsequential increase
    Q2 FY26

    Reflects seasonality of project-related work; Q1 is typically the lowest quarter for these expenses.

    Share buyback
    $50 million
    Q1 FY26

    Part of the flexible method of returning capital; management believes MPLX units trade at a discount.

    One-time benefit from customer agreement
    $37 million
    Q1 FY25

    Included in Q1 2025 segment adjusted EBITDA for Gathering & Processing, impacting year-over-year comparison.

    Secretary at ONE processing plant capacity
    200 million cubic feet per day
    Q2 FY26

    Processing plant in the Delaware Basin that has entered service.

    Industry KPIs

    5
    MetricValueDetails
    Pipeline throughput storagedecreased 4%%
    Sanctioned expansion backlog$2.4 billionUSD
    Basin level production volumeup 10%%
    FCF shareholder distributions12.5%%
    Weather event volume earnings impact$13 millionUSD

    Deals & partnerships

    2
    Previous owner (not named)acquisition

    Acquisition of the Titan facility in the Delaware Basin, which is now undergoing expansion.

    Not nameddivestiture

    Divestiture of noncore gathering and processing assets in 2025, impacting year-over-year segment results.

    Capital programs

    8
    Secretary at ONE processing plantcompleted

    Benefit: 200 million cubic feet per day

    Processing plant in the Delaware Basin that has entered service.

    Harmon Creek III processing planton track

    Benefit: 300 million cubic feet per day gas processing; second 40,000 barrels per day DS; total Northeast processing capacity to 8.1 billion cubic feet per day; total Northeast fractionation capacity to 800,000 barrels per day

    Located in the Marcellus, this project enhances ability to meet producer needs in liquids-rich areas and supports long-term throughput growth.

    Titan gas treating complex expansionon schedule

    Benefit: Expansion to over 400 million cubic feet per day treating capacity

    Supports activity in low-cost sour gas windows of the Delaware Basin. Includes completion of a third acid gas injection well in Q3 FY26 and multiple associated pipeline projects.

    Secretary at TWO processing plantannounced

    Benefit: 300 million cubic feet per day capacity

    Further expansion of gas processing footprint in the Delaware Basin, bringing total basin processing capacity to approximately 1.7 billion cubic feet per day.

    Blackcomb natural gas pipelineprogressing as planned

    Benefit: Firm takeaway capacity

    Addresses demand for firm takeaway capacity and underscores the long-term durability of the natural gas system.

    BANGL pipeline expansionexpected online

    Benefit: Expansion to 300,000 barrels per day

    Provides critical takeaway capacity as in-basin NGL volumes grow.

    Gulf Coast fractionation and export facilitiesadvancing on time and on budget

    Part of a fully integrated NGL value chain, expected to provide high confidence in volumes, utilization, and durable cash flow.

    Iger pipelinecoming online

    Long-haul pipeline into the Katy market, part of the overall nat gas strategy.

    Risks & headwinds

    2
    Winter Storm impact on production volumesQ1 FY26

    Roughly $13 million headwind

    Mitigation: Teams in the field ensured continuous safe and reliable operations at MPLX assets during the storm.

    NGL price volatilityAnnual

    $0.05 change in weighted average NGL price results in approximately $20 million annual impact to segment adjusted EBITDA.

    Mitigation: Executed an economic hedge on 80% of this risk, recognizing a negative mark-to-market of $56 million in Q1, which is expected to be offset by physical gains over the course of 2026.

    Q&A highlights

    6

    Asked for more detail on how MPLX expects to achieve its higher EBITDA growth target for 2026 (stronger than 2025) given a flattish Q1, and how the ramp-up of projects will contribute.

    Management confirmed the 2026 growth would be stronger than 2025, but back-half weighted. They cited Secretary at ONE (now in service), Harmon Creek III (Q3 in-service), and Titan complex expansion (Q4 completion) as key drivers. They also mentioned confidence in maintaining the 12.5% distribution increase for 2026 and 2027.

    “The back half of the year, we expect to be stronger clearly than the first half of the year. And we see good line of sight to that, which also continues to give us confidence, frankly, in our 12.5% distribution increase.”

    asked by John Mackay · answered by Maryann Mannen

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Investments in Natural Gas & NGLs

    MPLX is heavily investing in natural gas and NGL infrastructure, with 90% of its $2.4 billion organic growth capital plan directed towards these opportunities. Key projects like Secretary at ONE (200 MMcf/d processing), Secretary at TWO (300 MMcf/d processing), Harmon Creek III (300 MMcf/d processing), and the Titan complex expansion (to over 400 MMcf/d treating capacity) are central to this strategy. These investments aim to strengthen the company's position in the Delaware Basin and Marcellus, supporting activity in low-cost sour gas windows and enhancing the competitiveness of its value chain.

    02

    Integrated NGL Value Chain

    The company is advancing construction across its Gulf Coast fractionation and export facilities, which are on time and on budget. This fully integrated NGL value chain, including the BANGL pipeline expansion to 300,000 bbl/d, is expected to provide high confidence in future volumes, utilization, and durable cash flow, capitalizing on increasing global demand for secure U.S. energy exports.

    03

    Permian Basin Expansion

    In the Delaware Basin, the Titan facility successfully treated over 150 MMcf/d of committed producer sour gas in Q1, with March seeing the strongest performance. A third acid gas injection well is expected to be completed in Q3. The Titan complex expansion is on schedule to reach over 400 MMcf/d treating capacity by Q4. The Secretary at ONE processing plant entered service in April, and Secretary at TWO (300 MMcf/d) is planned for H2 2028, bringing total basin processing capacity to approximately 1.7 Bcf/d.

    04

    Northeast and Long-Haul Pipeline Growth

    Construction of Harmon Creek III in the Marcellus is on track for a Q3 in-service date, increasing total Northeast processing capacity to 8.1 Bcf/d. The Blackcomb natural gas pipeline is progressing for a Q4 in-service, and the BANGL pipeline expansion is also expected online in Q4. These projects, along with others like Iger (H2 2028), underscore the demand for firm takeaway capacity and the long-term durability of MPLX's natural gas system, providing flexibility to markets like Agua Dulce and Katy.

    05

    Capital Allocation Strategy

    MPLX maintains a disciplined capital allocation strategy, prioritizing distributions to unitholders and utilizing unit repurchases as a flexible method for returning capital. The company is committed to its 12.5% distribution growth for 2026 and 2027, ensuring coverage remains at or above 1.3x, supported by expected cash flow growth from its project pipeline. Management believes MPLX units trade at a discount, which is reflected in its current buyback program.

    AI-generated summary of the company’s earnings call. Not investment advice.