Group 1 - The midstream/pipeline industry is viewed as a stable sector that generates significant cash flows, making it attractive for investors [1] - Crude Value Insights focuses on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] - Subscribers have access to a stock model account with over 50 stocks, in-depth cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Company Overview - MPLX LP is a master limited partnership (MLP) based in Findlay, OH, providing a wide range of midstream energy services, including fuel distribution solutions [11] - The partnership was established in 2012 to own, operate, and develop midstream energy infrastructures and logistics assets primarily for its parent company, Marathon Petroleum Corporation, which holds approximately 64% of MPLX's outstanding common units [11] Investment Ratings - MPLX is currently rated as a 3 (Hold) on the Zacks Rank, with a VGM Score of B [12] - The company is considered a potential top pick for growth investors, with a Growth Style Score of B, indicating a forecasted year-over-year earnings growth of 5% for the current fiscal year [12] Earnings Estimates - In the last 60 days, two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.03 to $4.42 per share [12] - MPLX has an average earnings surprise of 4.8%, suggesting a positive trend in earnings performance [12] Conclusion - With a solid Zacks Rank and strong Growth and VGM Style Scores, MPLX is recommended for investors' consideration [13]

Group 1: Market Reactions and Stock Performance - April's "Liberation Day" led to significant market volatility, creating opportunities for both bullish and bearish investors [1][2] - Deckers Outdoor Corp. (DECK) experienced a 20% decline due to tariff cost absorption, highlighting the impact of trade policies on specific companies [2] - Notable stock performances included Papa John's International Inc. (PZZA) up 29%, Coupang Inc. (CPNG) up 26%, and JBT Marel Corp. (JBTM) up 18% [7] Group 2: Tax Legislation and Economic Impact - The U.S. House of Representatives passed a comprehensive tax bill aimed at extending the 2017 tax cuts, which is expected to increase consumer demand [6] - Intuit Inc. (INTU) is recommended as a beneficiary of potential tax changes, regardless of Congressional actions [4] - Analysts predict a surge in revenues for Sezzle Inc. (SEZL) by 62% this year, benefiting from increased consumer spending [9] Group 3: Technology Sector Developments - The tech sector is poised for growth as regulations are expected to be relaxed, particularly benefiting chipmakers like Monolithic Power Systems Inc. (MPWR) which has seen a 20% increase [12] - Interactive Brokers Group Inc. (IBKR) is positioned to capitalize on the relaxation of tech regulations, offering a platform that integrates various trading assets [13][15] - The potential for growth in prediction markets and cryptocurrencies is highlighted as new areas of opportunity for Interactive Brokers [16] Group 4: Energy Sector Opportunities - The energy sector is set to benefit from accelerated permit approvals for fossil fuel production, with MPLX LP (MPLX) identified as a strong player in the natural gas pipeline industry [18][20] - MPLX is expected to see a 7% increase in revenues and profits this year, with a favorable risk-reward profile due to its conservative asset base [21] - The stock trades at a discount compared to competitors, offering a high dividend yield of 7.6% [21]

Core Viewpoint - The midstream energy sector presents high-yield stock opportunities for income-focused investors, with a $1,000 investment being a suitable starting point [1] Group 1: Midstream Energy Sector Overview - Pipeline companies are likened to energy toll roads, having minimal exposure to energy prices, but lower energy prices can lead to reduced volumes and potential contract renegotiations [2] - The midstream business is capital intensive, resulting in companies carrying debt, indicating that these stocks are not risk-free investments [2] Group 2: Energy Transfer - Energy Transfer offers a high yield of 7.3% and a low forward EV-to-EBITDA multiple of 8.1 times, significantly below the historical average of 13.7x for midstream MLPs [4] - The company has improved its leverage post-pandemic and currently has its highest percentage of take-or-pay contracts, ensuring revenue regardless of customer usage [5] - Energy Transfer is increasing its growth capex from $3 billion to $5 billion, with growth projects expected to come online late this year or next [6] Group 3: Enterprise Products Partners - Enterprise Products Partners has consistently increased its distribution for 26 years, supported by a fee-based business model and take-or-pay contracts [8] - The company plans to increase its growth capex to between $4 billion and $4.5 billion, with $6 billion in projects expected to come online this year [9] - The stock trades at a forward EV-to-EBITDA multiple of 10 times, with a yield of 6.6%, making it a stable option for long-term investors [10] Group 4: MPLX - MPLX has a strong balance sheet with a leverage ratio of 3.3 times and a distribution coverage ratio of 1.5 times, having grown its distribution by over 10% annually for the past three years [11] - The company operates in natural gas and NGL services, as well as crude oil logistics, with growth opportunities primarily in the natural gas segment [12] - MPLX is expanding through acquisitions, including the purchase of the remaining 55% interest in the BANGL pipeline system, enhancing its strategic position [13] - The stock has a yield of 7.4% and a forward EV-to-EBITDA multiple of 10.3 times, indicating reasonable valuation [14]

Core Insights - MPLX LP reported first-quarter 2025 earnings of $1.10 per unit, exceeding the Zacks Consensus Estimate of $1.06, and improved from $0.98 in the same quarter last year [1] - Total quarterly revenues reached $3.12 billion, falling short of the Zacks Consensus Estimate of $3.21 billion, but increased from $2.85 billion year-over-year [1] Segment Performance - The Crude Oil and Products Logistics segment's adjusted EBITDA rose to $1.1 billion from $1.06 billion a year ago, driven by increased rates and higher pipeline throughputs, which averaged 5.93 million barrels per day (mbpd), a 12% increase from 5.29 mbpd in the prior year [3] - Adjusted EBITDA from the Natural Gas and NGL Services segment increased to $660 million from $576 million, supported by higher volumes from the Utica and Permian Basins and a non-recurring benefit of $37 million from a customer agreement [4] Operational Metrics - Gathering throughput volumes averaged 6.5 billion cubic feet per day (Bcf/d), reflecting a 5% increase year-over-year, while natural gas processed volumes totaled 9.8 Bcf/d, indicating a 4% improvement [5] - Total costs and expenses rose to $1.76 billion from $1.6 billion, primarily due to higher operating expenses and increased depreciation and amortization [6] Cash Flow and Financial Position - Distributable cash flow for the quarter was $1.49 billion, providing 1.5X distribution coverage, up from $1.37 billion in the previous year [7] - Adjusted free cash flow increased to $641 million from $294 million year-over-year [7] - As of March 31, 2025, the partnership held $2.5 billion in cash and cash equivalents, with total debt at $22.4 billion [8]

Acquisitions and Investments - The company entered into a definitive agreement to acquire the remaining 55 percent interest in BANGL, LLC for $715 million, with an additional earnout provision of up to $275 million based on targeted EBITDA growth from 2026 to 2029[140]. - The company expanded its crude oil value chain by acquiring gathering businesses from Whiptail Midstream, LLC for $237 million, enhancing its strategic relationship with MPC[140]. - The company increased its stake in the joint venture that owns and operates the Matterhorn Express pipeline by 5 percent for $151 million, bringing its total interest to 10 percent[140]. - The company plans to acquire the remaining 55% interest in BANGL, LLC, as part of its strategic growth initiatives[208]. Financial Performance - Net income attributable to MPLX increased by $121 million in Q1 2025 compared to Q1 2024, reaching $1,126 million[148]. - Total revenues and other income rose by $278 million in Q1 2025, totaling $3,124 million, primarily driven by increased service and product-related revenues[143]. - Service revenue increased by $129 million, attributed to higher pipeline throughput and tariff escalations[152]. - Product-related revenue grew by $159 million, mainly due to higher NGL sales volumes and prices[152]. - Adjusted EBITDA attributable to MPLX LP was $1,757 million in Q1 2025, an increase of $122 million from Q1 2024[143]. - DCF attributable to MPLX LP increased by $116 million, reaching $1,486 million in Q1 2025[143]. Capital Expenditures and Cash Flow - Total costs and expenses increased by $163 million, totaling $1,758 million, primarily due to higher purchased product costs and project-related spending[148]. - Capital expenditures for the Crude Oil and Products Logistics segment rose by $31 million, totaling $115 million in Q1 2025[155]. - Total capital expenditures for Q1 2025 were $341 million, with growth capital expenditures at $307 million, up from $259 million in Q1 2024[204]. - The initial capital investment plan for 2025 is set at $2.0 billion, with $1.7 billion allocated for growth capital and $300 million for maintenance capital[203]. - Adjusted Free Cash Flow (FCF) increased to $641 million in Q1 2025 from $294 million in Q1 2024[186]. - Net cash provided by operating activities decreased by $45 million to $1,246 million in Q1 2025 compared to Q1 2024[182]. Distributions and Share Repurchases - The company returned $1,078 million of capital to unitholders in the three months ended March 31, 2025, via distributions and unit repurchases[140]. - The company announced a first quarter 2025 distribution of $0.9565 per common unit[140]. - The company repurchased 2 million common units in Q1 2025 for $100 million, with an average cost per unit of $52.48, compared to $75 million for the same number of units in Q1 2024[196]. - The company declared a cash distribution of $976 million for Q1 2025, equating to $0.9565 per common unit, an increase from $874 million in Q1 2024[199][201]. - As of March 31, 2025, the company has $420 million remaining under the unit repurchase authorization[197]. Segment Performance - The profitability of the Crude Oil and Products Logistics segment primarily depends on tariff rates and the volumes shipped through the pipelines[124]. - The Natural Gas and NGL Services segment profitability is affected by prevailing commodity prices and the cost of third-party transportation and fractionation services[127]. - Pipeline throughput for crude oil pipelines increased to 3,908 mbpd in Q1 2025, up from 3,462 mbpd in Q1 2024[160]. - Average tariff rates for product pipelines increased to $1.11 per barrel in Q1 2025, compared to $1.00 per barrel in Q1 2024[160]. - Total segment revenues and other income increased by $217 million to $1,532 million in Q1 2025 compared to Q1 2024[165]. - Segment Adjusted EBITDA rose by $84 million to $660 million in Q1 2025, driven by a $37 million non-recurring benefit from a customer agreement[167]. Liquidity and Financing - As of March 31, 2025, the company's liquidity totaled $6.0 billion, consisting of $3.5 billion in credit agreements and $2.5 billion in cash and cash equivalents[191]. - MPLX issued $2.0 billion in senior notes in Q1 2025, contributing to a net cash source of $370 million[184]. - The company experienced a $395 million decrease in net cash used in investing activities, primarily due to lower acquisition costs in Q1 2025[183]. - The company's credit ratings as of March 31, 2025, were BBB from Fitch, Baa2 from Moody's, and BBB from Standard & Poor's, all with stable outlooks[189]. Market Conditions and Economic Environment - The U.S. refining industry is expected to remain structurally advantaged over the rest of the world, with robust production across key operating regions[134]. - The current economic environment shows robust production across key operating regions, with low break-even prices in the U.S. offering economically advantaged development opportunities[134]. - The profitability of the Natural Gas and NGL Services segment is affected by prevailing commodity prices and the level of natural gas drilling by producer customers[127]. Environmental Compliance and Accounting - The company incurred capital expenditures related to environmental compliance, which may impact future operating results[213]. - As of March 31, 2025, there have been no significant changes to critical accounting estimates since the Annual Report for the year ended December 31, 2024[216]. - Certain new financial accounting pronouncements will be effective for the financial statements in the future[217].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $1,800,000,000, representing a 7% increase year over year [4] - Distributable cash flow was $1,500,000,000, supporting nearly $1,000,000,000 in distributions to unitholders and $100,000,000 in unit repurchases [4][20] - Total adjusted EBITDA and distributable cash flow increased by 78% compared to the prior year [20] Business Line Data and Key Metrics Changes - In the Crude Oil and Products Logistics segment, adjusted EBITDA increased by $38,000,000 year over year, driven by higher throughputs [17] - The Natural Gas and NGL Services segment set a new record with adjusted EBITDA increasing by $84,000,000 year over year, supported by increased drilling and production in the Permian and Utica basins [19] - Gather volumes in the Natural Gas and NGL segment increased by 5% year over year, while processing volumes rose by 4% [19] Market Data and Key Metrics Changes - The Marcellus processing utilization was 92% in the quarter, reflecting strong producer activity [19] - The company anticipates that gas processing capacity in the Northeast will reach 8,100,000,000 cubic feet per day by the second half of 2026 [15] Company Strategy and Development Direction - MPLX is focused on strategic acquisitions, having announced over $1,000,000,000 in acquisitions since the start of the year [4] - The company is committed to a mid single-digit growth strategy, with plans to spend $1,700,000,000 on growth projects in 2025, primarily in natural gas and NGL services [14] - The strategic relationship with Marathon Petroleum (MPC) is emphasized as a key component for optimizing value chains and supporting growth [10][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macroeconomic environment for energy, stating that the outlook for hydrocarbons remains robust despite market volatility [7][10] - The company expects continued year-over-year volume growth based on feedback from producer customers [6] - Management highlighted the importance of maintaining capital discipline while pursuing growth opportunities [16] Other Important Information - MPLX is completing the construction of its seventh processing plant, expected to be operational in Q4 2025, increasing processing capacity in the Permian Basin to 1,400,000,000 cubic feet per day [11] - The company is progressing with significant investments in Gulf Coast fractionators and a joint venture export terminal, with completion expected in 2028 and 2029 [11][12] Q&A Session Summary Question: Overview of contract mix and take-or-pay arrangements - Management noted that most earnings come from natural gas and NGL segments in the Northeast, with strong natural gas prices and a durable strategy [30][32] Question: Sensitivity of capital budget to macro backdrop - Management confirmed that the capital plan for 2025 is focused on growth, with flexibility to evaluate and adjust spending as needed [37][38] Question: Details on the acquisition from Whiptail Midstream - The acquisition supports production in the 4 Corners region and enhances the strategic relationship with MPC, expected to be immediately accretive [46][48] Question: Benefits of the Traverse pipeline project - The Traverse pipeline provides optionality and flexibility for shippers, enhancing the overall strategy for natural gas from the Permian to the Gulf Coast [51][52] Question: Level of buybacks executed in Q1 - Management stated that capital allocation priorities remain unchanged, focusing on growth while also considering equity valuation for buybacks [66][68] Question: Impact of tariffs on project costs - Management indicated minimal impact from tariffs on operations and projects, emphasizing control over project costs [70][72]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $1,800,000,000, representing a 7% increase year over year [5] - Distributable cash flow was $1,500,000,000, supporting nearly $1,000,000,000 in distributions to unitholders and $100,000,000 in unit repurchases [5][20] - Total adjusted EBITDA and distributable cash flow increased by 78% respectively from the prior year [20] Business Line Data and Key Metrics Changes - In the Crude Oil and Products Logistics segment, adjusted EBITDA increased by $38,000,000 compared to Q1 2024, driven by higher throughputs [18] - The Natural Gas and NGL Services segment set a new record with adjusted EBITDA increasing by $84,000,000 year over year, supported by increased drilling and production in the Permian and Utica basins [19] - Gather volumes increased by 5% year over year, while processing volumes rose by 4% year over year, particularly in the Permian and Utica basins [19] Market Data and Key Metrics Changes - The company noted robust production across the Marcellus, Utica, and Permian basins, which have some of the lowest breakeven prices in the U.S. [7] - The U.S. refining industry is expected to remain structurally advantaged over the rest of the world due to accessibility of nearby crude and low-cost natural gas [10] Company Strategy and Development Direction - MPLX is focused on strategic acquisitions, having announced over $1,000,000,000 in acquisitions since the start of the year [5] - The company is developing processing plants on a just-in-time basis and optimizing its asset footprint to enhance its strategic relationship with Marathon Petroleum [9][11] - MPLX plans to spend $1,700,000,000 on growth projects in 2025, with 85% allocated to natural gas and NGL services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macroeconomic environment for energy, anticipating year-over-year volume growth despite market volatility [8][11] - The company expects to maintain a mid-single-digit growth rate over multi-year periods, supported by strong cash flow and low leverage [23][24] - Management highlighted the importance of their strategic relationship with Marathon Petroleum in navigating market challenges [30] Other Important Information - MPLX is completing construction of its seventh processing plant, expected to be operational in Q4 2025, increasing processing capacity in the Permian Basin [12] - The company is advancing its natural gas value chain with the construction of the Traverse natural gas pipeline, expected to be in service in the second half of 2027 [14] Q&A Session Summary Question: Can you provide details on the current contract mix and take-or-pay arrangements? - Management noted that most earnings come from the natural gas and NGL segment in the Northeast, with strong natural gas prices and a significant portion of contracts being fee-based with over 75% volume commitment protection [31][34] Question: How flexible is the capital budget in response to macroeconomic changes? - Management indicated that while they can evaluate and flex some capital spending, key projects like the Secretariat processing plant are expected to proceed as planned [38][42] Question: Can you elaborate on the acquisition of the gathering business from Whiptail Midstream? - The acquisition supports production in the 4 Corners region and enhances the strategic relationship with Marathon Petroleum, expected to be immediately accretive [48] Question: How does the Traverse pipeline fit into the overall strategy? - The Traverse pipeline provides optionality and flexibility for shippers, enhancing the overall value chain from the Permian to the Gulf Coast [52] Question: What is the level of buybacks executed in Q1 and future plans? - Management stated that capital allocation priorities remain unchanged, focusing on growth while also considering equity valuation for buybacks [66] Question: Are there any impacts from tariffs on project costs? - Management indicated minimal impact from tariffs on operations and projects, emphasizing control over project costs [70]

Financial Performance - Adjusted EBITDA increased by 7% year-over-year to $1.8 billion[7,9] - Distributable cash flow (DCF) increased by 8% year-over-year[31] - Distributions to unitholders totaled $978 million[7] - Unit repurchases amounted to $100 million[7] - Adjusted free cash flow was $641 million[31] - Total capital returned to unitholders was $1.078 billion[31] Strategic Investments and Growth - Over $1 billion of bolt-on acquisitions were announced[9] - MPLX acquired the remaining 55% interest in BANGL, LLC for $715 million[7] - A crude gathering system was acquired for $237 million[7] - An additional 5% interest in the Matterhorn Express Pipeline joint venture was acquired for $151 million[7] - The company plans to expand the BANGL pipeline to 300 thousand barrels per day (MBPD)[15] Operational Highlights - Crude oil pipeline volume was 3.9 million barrels per day (MMBPD), a 13% increase[26] - Product pipeline volume was 2.0 MMBPD, a 10% increase[26] - Terminal volume was 3.1 MMBPD, a 6% increase[26] - Natural gas gathering volume was 6.5 billion cubic feet per day (Bcf/d), a 5% increase[27] - Natural gas processing volume was 9.8 Bcf/d, a 4% increase[27] - Fractionation volume was 660 MBPD, a 4% increase[27]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) MPLX LP delivered strong Q1 2025 financial results with significant growth in net income and adjusted EBITDA, supported by strategic project execution and substantial capital returns to unitholders [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) MPLX LP reported strong first-quarter 2025 financial results, with significant year-over-year growth in net income and adjusted EBITDA, driven by effective execution of its value chain growth strategy. The company also generated substantial cash flow, enabling capital returns to unitholders Overall Financial Performance Metrics | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change ($ millions) | % Change | | :----------------------------------------- | :------------------- | :------------------- | :------------------ | :------- | | Net income attributable to MPLX LP | 1,126 | 1,005 | 121 | 12.0% | | Adjusted EBITDA attributable to MPLX LP | 1,757 | 1,635 | 122 | 7.5% | | Net cash provided by operating activities | 1,246 | - | - | - | | Distributable cash flow | 1,486 | - | - | - | | Adjusted free cash flow | 641 | - | - | - | - MPLX achieved **7% adjusted EBITDA growth** year over year, supported by growth projects in the Permian and Marcellus basins[6](index=6&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) The first quarter of 2025 saw an increase in distribution per common unit and a stable leverage ratio, reflecting the company's commitment to returning capital to unitholders while maintaining financial discipline Key Financial Metrics Overview | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :-------------------------------------- | :------- | :------- | :------- | :------- | | Distribution per common unit | $0.9565 | $0.8500 | $0.1065 | 12.5% | | Distribution coverage | 1.5x | 1.6x | (0.1x) | (6.3%) | | Consolidated total debt to LTM adjusted EBITDA (Leverage ratio) | 3.3x | 3.2x | 0.1x | 3.1% | | Cash paid for common unit repurchases | $100 M | $75 M | $25 M | 33.3% | [First-Quarter Achievements](index=1&type=section&id=First-Quarter%20Achievements) MPLX made strategic advancements in its Natural Gas & NGL growth strategy, including significant acquisitions and project FIDs, alongside robust financial performance that enabled substantial capital returns - Executed Natural Gas & NGL growth strategy with an agreement to acquire **100% ownership in BANGL, LLC** and **Final Investment Decision (FID) of the Traverse natural gas pipeline**[8](index=8&type=chunk)[13](index=13&type=chunk) - Reported first-quarter **$1.1 billion net income** attributable to MPLX and **$1.2 billion net cash provided by operating activities**[8](index=8&type=chunk) - Achieved **$1.8 billion adjusted EBITDA** attributable to MPLX, reflecting the execution of its value chain growth strategy[8](index=8&type=chunk) - Generated **$1.5 billion distributable cash flow**, facilitating the return of **$1.1 billion of capital**[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) MPLX's segments showed varied performance, with Crude Oil and Products Logistics seeing modest EBITDA growth and Natural Gas and NGL Services achieving significant EBITDA increases driven by strategic factors [Crude Oil and Products Logistics](index=2&type=section&id=Crude%20Oil%20and%20Products%20Logistics) The Crude Oil and Products Logistics segment experienced a modest increase in adjusted EBITDA, primarily driven by higher throughputs and improved tariff rates, despite an offset from increased operating expenses Crude Oil and Products Logistics Performance | Metric | Q1 2025 | Q1 2024 | % Change | | :-------------------------- | :------- | :------- | :------- | | Segment adjusted EBITDA | $1,097 M | $1,059 M | 4% | | Pipeline throughput (mbpd) | 5,928 | 5,293 | 12% | | Terminal throughput (mbpd) | 3,095 | 2,930 | 6% | | Average tariff rates ($/bbl)| $1.06 | $1.02 | 4% | - The **adjusted EBITDA increase** was primarily driven by **higher throughputs and rates**, partially offset by higher operating expenses[9](index=9&type=chunk) [Natural Gas and NGL Services](index=2&type=section&id=Natural%20Gas%20and%20NGL%20Services) The Natural Gas and NGL Services segment demonstrated significant adjusted EBITDA growth, boosted by a non-recurring benefit and increased volumes from key basins, including contributions from equity affiliates Natural Gas and NGL Services Performance | Metric | Q1 2025 | Q1 2024 | % Change | | :------------------------------ | :------- | :------- | :------- | | Segment adjusted EBITDA | $660 M | $576 M | 15% | | Gathering throughput (MMcf/d) | 6,516 | 6,226 | 5% | | Natural gas processed (MMcf/d) | 9,781 | 9,371 | 4% | | C2 + NGLs fractionated (mbpd) | 660 | 632 | 4% | - **Adjusted EBITDA increase** was primarily due to a **$37 million non-recurring benefit** from a customer agreement and **increased volumes** in the Permian and Utica basins, including growth from equity affiliates[11](index=11&type=chunk) [Strategic Updates and Growth Projects](index=2&type=section&id=Strategic%20Updates%20and%20Growth%20Projects) MPLX is strategically expanding its Natural Gas & NGL and Crude Oil & Products Logistics segments through acquisitions, new pipeline developments, and ongoing major projects to enhance capacity and market reach [Natural Gas and NGL Services Projects](index=2&type=section&id=Natural%20Gas%20and%20NGL%20Services%20Projects) MPLX is actively expanding its Permian to Gulf Coast integrated value chain through strategic acquisitions and new pipeline developments, aiming to enhance market access and processing capacity - Acquired the **remaining 55% of BANGL, LLC** for **$715 million**, achieving **100% ownership**; the system transports NGLs from the Permian basin to the Gulf Coast and will connect to MPLX's announced Gulf Coast fractionation facilities, expected to close in July[13](index=13&type=chunk) - Announced **Final Investment Decision (FID) for the Traverse Pipeline**, a bi-directional pipeline designed to transport **1.75 bcf/d** of natural gas along the Gulf Coast, expected in service in 2027[13](index=13&type=chunk) - Increased stake in the Matterhorn Express pipeline joint venture by **5%** for **$151 million**, bringing **10% total interest**; the pipeline transports up to **2.5 bcf/d** of natural gas from the Permian basin to the Katy area, expected to close in Q2 2025[14](index=14&type=chunk) [Crude Oil and Products Logistics Projects](index=3&type=section&id=Crude%20Oil%20and%20Products%20Logistics%20Projects) The Crude Oil and Products Logistics segment is expanding its crude gathering infrastructure and investing in asset optimization projects, including a recent acquisition in the San Juan basin - Expanded crude oil value chain by a **$237 million acquisition** of gathering businesses from Whiptail Midstream, LLC, primarily consisting of crude and natural gas gathering systems in the Four Corners region[17](index=17&type=chunk) - Ongoing **expansion of crude gathering pipelines** in the Permian and Bakken basins, and **investments in projects for asset expansion or de-bottlenecking**[16](index=16&type=chunk) [Ongoing Major Projects](index=3&type=section&id=Ongoing%20Major%20Projects) MPLX continues to advance several large-scale projects across its value chain, including new fractionation facilities, an LPG export terminal, pipeline expansions, and gas processing plants, with anticipated in-service dates ranging from late 2025 to 2029 - Gulf Coast Fractionators: **Two 150 thousand bpd facilities** near Marathon Petroleum's Galveston Bay refinery, **expected in service in 2028 and 2029**[21](index=21&type=chunk) - LPG Export Terminal: Strategic partnership with ONEOK, Inc. to develop a **400 thousand bpd terminal** and associated pipeline, **anticipated in service in 2028**[21](index=21&type=chunk) - BANGL Pipeline: **Expanding from 250 thousand bpd to 300 thousand bpd**, **anticipated online in the second half of 2026**[21](index=21&type=chunk) - Secretariat: A **200 mmcf/d processing plant** **expected online in Q4 2025**, increasing Permian basin gas processing capacity to **1.4 bcf/d**[21](index=21&type=chunk) - Harmon Creek III: A **300 mmcf/d processing plant** and **40 thousand bpd de-ethanizer**, **expected online in H2 2026**, increasing Northeast processing capacity to **8.1 bcf/d** and fractionation capacity to **800 thousand bpd**[21](index=21&type=chunk) [Financial Position and Liquidity](index=3&type=section&id=Financial%20Position%20and%20Liquidity) MPLX maintains a robust financial position with strong liquidity, active debt management, and a commitment to capital allocation strategies that enhance unitholder value [Liquidity Overview](index=3&type=section&id=Liquidity%20Overview) MPLX maintains a strong liquidity position with substantial cash reserves and available credit facilities, supporting its operational and strategic needs while keeping its leverage ratio within a healthy range Liquidity Position | Metric | As of March 31, 2025 ($ millions) | | :-------------------------------------- | :-------------------------------- | | Cash and cash equivalents | $2,500 | | Available bank revolving credit facility| $2,000 | | Available intercompany loan with MPC | $1,500 | | Leverage ratio | 3.3x | - The stability of cash flows supports a **leverage ratio in the range of 4.0x**[18](index=18&type=chunk) [Debt Management](index=3&type=section&id=Debt%20Management) MPLX actively managed its debt portfolio during the quarter, including the repayment of maturing senior notes and the issuance of new unsecured senior notes to optimize its capital structure - On February 18, 2025, MPLX **repaid $0.5 billion** aggregate principal amount of 4.000% senior notes due February 2025[19](index=19&type=chunk) - On March 10, 2025, MPLX **issued $2.0 billion unsecured senior notes**, consisting of $1.0 billion of 5.400% senior notes due 2035 and $1.0 billion of 5.950% senior notes due 2055[19](index=19&type=chunk) - Subsequent to quarter-end, on April 9, 2025, MPLX **repaid all outstanding $1.2 billion senior notes** due June 2025[20](index=20&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) MPLX continued its capital allocation strategy by repurchasing common units and converting preferred units, demonstrating its commitment to enhancing unitholder value - The partnership **repurchased $100 million of common units** held by the public in the first quarter of 2025[22](index=22&type=chunk) - As of March 31, 2025, approximately **$420 million remained available** under its unit repurchase authorization[22](index=22&type=chunk) - On February 11, 2025, MPLX exercised its right to **converted the remaining 6 million outstanding Series A preferred units** into common units[18](index=18&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of MPLX LP's diversified midstream operations, along with essential contact and conference call information for investors and media [About MPLX LP](index=4&type=section&id=About%20MPLX%20LP) MPLX LP is a diversified master limited partnership operating extensive midstream energy infrastructure and logistics assets across key U.S. supply basins, providing a wide range of services from crude oil and refined product transportation to natural gas and NGL processing - MPLX is a **diversified, large-cap master limited partnership** that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services[24](index=24&type=chunk) - Assets include a **network of crude oil and refined product pipelines**, an **inland marine business**, **light-product terminals**, **storage caverns**, **refinery tanks**, **docks, loading racks, and associated piping**, and **crude and light-product marine terminals**[24](index=24&type=chunk) - The company also owns **crude oil and natural gas gathering systems and pipelines** as well as **natural gas and NGL processing and fractionation facilities** in key U.S. supply basins[24](index=24&type=chunk) [Investor Relations & Media](index=4&type=section&id=Investor%20Relations%20%26%20Media) Contact information for investor relations and media inquiries is provided for stakeholders seeking further information about MPLX LP - **Investor Relations Contact: (419) 421-2071**, with key personnel listed[25](index=25&type=chunk) - **Media Contact: (419) 421-3577, Jamal Kheiry**, Communications Manager[25](index=25&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Details for accessing the conference call and webcast to discuss the reported results and operations update are provided, along with information on where to find financial materials - MPLX held a **conference call and webcast at 9:30 a.m. ET on May 6, 2025**, to discuss results and provide an operations update[23](index=23&type=chunk) - Interested parties can listen by visiting **MPLX's website at www.mplx.com**, where a replay will be available for two weeks[23](index=23&type=chunk) - Financial information, including the earnings release and other investor-related materials, is available online at **www.mplx.com**[23](index=23&type=chunk) [Non-GAAP Financial Measures Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines key non-GAAP financial measures, including Adjusted EBITDA, DCF, Adjusted FCF, and Leverage Ratio, outlining their purpose and limitations, along with the necessity for GAAP reconciliations [Adjusted EBITDA](index=4&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a key non-GAAP financial performance measure used by management and the investment community to assess the financial performance and operating results of MPLX's ongoing business operations, providing a comparable view across periods and companies - **Adjusted EBITDA** is used by management, industry analysts, investors, lenders, and rating agencies to assess financial performance and operating results[26](index=26&type=chunk) - Defined as **net income adjusted for provision for income taxes, net interest and other financial costs, depreciation and amortization, income/(loss) from equity method investments, distributions and adjustments related to equity method investments, impairment expense, noncontrolling interests, and other adjustments**[26](index=26&type=chunk) [Distributable Cash Flow (DCF)](index=4&type=section&id=Distributable%20Cash%20Flow%20(DCF)) Distributable Cash Flow (DCF) is a crucial non-GAAP measure for management and unitholders, indicating the cash available for distributions and evaluating the partnership's ability to support quarterly payouts, which is also a key factor for market valuation - **DCF** is a financial performance and liquidity measure used by management and the board of directors to determine cash distributions to unitholders[27](index=27&type=chunk) - It indicates **cash return on investment** and evaluates if **sufficient cash flow** is generated to support quarterly distributions[28](index=28&type=chunk) - Defined as **Adjusted EBITDA adjusted for deferred revenue impacts, sales-type lease payments, adjusted net interest and other financial costs, net maintenance capital expenditures, equity method investment capital expenditures paid out, and other adjustments**[28](index=28&type=chunk) [Adjusted Free Cash Flow (Adjusted FCF)](index=5&type=section&id=Adjusted%20Free%20Cash%20Flow%20(Adjusted%20FCF)) Adjusted Free Cash Flow (Adjusted FCF) and Adjusted FCF after distributions are liquidity measures utilized by management for capital allocation and performance assessment, providing insights into the company's ability to manage leverage and return capital to unitholders - **Adjusted FCF** and **Adjusted FCF after distributions** are liquidity measures used by management for capital allocation and assessing financial performance[29](index=29&type=chunk) - Unitholders may use these metrics to analyze the ability to **manage leverage and return capital**[29](index=29&type=chunk) - Adjusted FCF is defined as **net cash provided by operating activities adjusted for net cash used in investing activities, cash contributions from MPC, and cash distributions to noncontrolling interests**[29](index=29&type=chunk) [Leverage Ratio](index=5&type=section&id=Leverage%20Ratio) The leverage ratio is a critical liquidity measure employed by various stakeholders to evaluate MPLX's capacity to manage and service its debt obligations and fund capital expenditures - **Leverage ratio** is a liquidity measure used by management, industry analysts, investors, lenders, and rating agencies[30](index=30&type=chunk) - It analyzes the company's ability to **incur and service debt and fund capital expenditures**[30](index=30&type=chunk) [Limitations and Reconciliations](index=5&type=section&id=Limitations%20and%20Reconciliations) MPLX acknowledges the limitations of non-GAAP financial measures, emphasizing that they should not be considered substitutes for GAAP results and provides reconciliations to their most directly comparable GAAP measures - **Non-GAAP measures** should not be considered alternatives to **GAAP net income** or **net cash provided by operating activities** due to inherent limitations[31](index=31&type=chunk) - These measures should **not be considered in isolation or as substitutes** for analysis of results reported under GAAP[31](index=31&type=chunk) - **Reconciliations of Adjusted EBITDA, DCF, Adjusted FCF, Adjusted FCF after distributions, and the leverage ratio** to their most directly comparable GAAP measures are provided in the tables[32](index=32&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines MPLX's forward-looking statements regarding its business, financial priorities, strategic plans, and ESG goals, cautioning that these are based on current expectations and subject to various risks and uncertainties that could cause actual results to differ materially [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines MPLX's forward-looking statements regarding its business, financial priorities, strategic plans, and ESG goals, cautioning that these are based on current expectations and subject to various risks and uncertainties that could cause actual results to differ materially - Forward-looking statements relate to MPLX's **expectations, estimates, and projections** concerning its business, financial priorities, strategic plans, capital return plans, capital expenditure plans, operating cost reduction objectives, and ESG goals[33](index=33&type=chunk) - MPLX cautions that these statements are based on management's current knowledge and expectations and are **subject to certain risks and uncertainties**, many of which are outside of MPLX's control[33](index=33&type=chunk)[34](index=34&type=chunk) - Factors that could cause actual results to differ materially include **political or regulatory developments, volatility in economic conditions, adequacy of capital resources, changes in commodity prices, project construction costs and in-service dates, and the ability to realize expected returns on projects**[34](index=34&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents MPLX's condensed consolidated financial statements, including results of operations, key financial statistics, and balance sheet data, highlighting overall financial performance and position [Condensed Consolidated Results of Operations](index=7&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) The condensed consolidated results of operations show an increase in total revenues and other income, leading to higher net income attributable to MPLX LP for the first quarter of 2025 compared to 2024 Condensed Consolidated Results of Operations | (In millions, except per unit data) | March 31, 2025 | March 31, 2024 | Change | % Change | | :---------------------------------- | :------------- | :------------- | :----- | :------- | | Operating revenue | $1,420 | $1,217 | $203 | 16.7% | | Operating revenue - related parties | $1,467 | $1,387 | $80 | 5.8% | | Income from equity method investments | $186 | $157 | $29 | 18.5% | | Total revenues and other income | $3,124 | $2,846 | $278 | 9.8% | | Total costs and expenses | $1,758 | $1,595 | $163 | 10.2% | | Income from operations | $1,366 | $1,251 | $115 | 9.2% | | Net income attributable to MPLX LP | $1,126 | $1,005 | $121 | 12.0% | | Limited partners' interest in net income attributable to MPLX LP | $1,126 | $995 | $131 | 13.2% | | Common – basic (per unit) | $1.10 | $0.98 | $0.12 | 12.2% | [Select Financial Statistics](index=8&type=section&id=Select%20Financial%20Statistics) Key financial statistics highlight increased common unit distributions and distributable cash flow, alongside a slight decrease in distribution coverage, reflecting the company's capital return strategy Select Financial Statistics | (In millions, except ratio data) | March 31, 2025 | March 31, 2024 | Change | % Change | | :------------------------------- | :------------- | :------------- | :----- | :------- | | Common units (LP) – public | $357 | $314 | $43 | 13.7% | | Common units – MPC | $619 | $550 | $69 | 12.5% | | Total LP distribution declared | $976 | $864 | $112 | 13.0% | | Adjusted EBITDA attributable to MPLX LP | $1,757 | $1,635 | $122 | 7.5% | | DCF attributable to LP unitholders | $1,486 | $1,360 | $126 | 9.3% | | Distribution coverage | 1.5x | 1.6x | (0.1x) | (6.3%) | | Net cash flow provided by operating activities | $1,246 | $1,291 | ($45) | (3.5%) | | Net cash flow used in investing activities | ($601) | ($996) | $395 | (39.7%) | | Net cash flow provided by (used in) financing activities | $370 | ($958) | $1,328 | 138.6% | [Financial Data (Balance Sheet)](index=9&type=section&id=Financial%20Data%20(Balance%20Sheet)) MPLX's balance sheet reflects a stronger cash position and increased total assets, with a slight rise in total debt and leverage ratio, while total equity also grew Condensed Consolidated Balance Sheet Data | (In millions, except ratio data) | March 31, 2025 | December 31, 2024 | Change | % Change | | :------------------------------- | :------------- | :---------------- | :----- | :------- | | Cash and cash equivalents | $2,534 | $1,519 | $1,015 | 66.8% | | Total assets | $38,972 | $37,511 | $1,461 | 3.9% | | Total debt | $22,418 | $20,948 | $1,470 | 7.0% | | Redeemable preferred units | — | $203 | ($203) | (100.0%) | | Total equity | $14,068 | $13,807 | $261 | 1.9% | | Consolidated debt to LTM adjusted EBITDA | 3.3x | 3.1x | 0.2x | 6.5% | [Detailed Operating Statistics](index=9&type=section&id=Detailed%20Operating%20Statistics) This section provides detailed operating statistics for MPLX's Crude Oil and Products Logistics and Natural Gas and NGL Services segments, highlighting throughput volumes and tariff rates [Crude Oil and Products Logistics Operating Statistics](index=9&type=section&id=Crude%20Oil%20and%20Products%20Logistics%20Operating%20Statistics) The Crude Oil and Products Logistics segment demonstrated robust growth in pipeline and terminal throughput, with an overall increase in average tariff rates, indicating strong operational performance Crude Oil and Products Logistics Operating Statistics | Metric | Q1 2025 | Q1 2024 | % Change | | :------------------------------ | :------- | :------- | :------- | | Crude oil pipelines throughput (mbpd) | 3,908 | 3,462 | 13% | | Product pipelines throughput (mbpd) | 2,020 | 1,831 | 10% | | Total pipelines throughput (mbpd) | 5,928 | 5,293 | 12% | | Crude oil pipelines average tariff rates ($/bbl) | $1.03 | $1.03 | — % | | Product pipelines average tariff rates ($/bbl) | $1.11 | $1.00 | 11% | | Total pipelines average tariff rates ($/bbl) | $1.06 | $1.02 | 4% | | Terminal throughput (mbpd) | 3,095 | 2,930 | 6% | [Natural Gas and NGL Services Operating Statistics - Consolidated](index=10&type=section&id=Natural%20Gas%20and%20NGL%20Services%20Operating%20Statistics%20-%20Consolidated) Consolidated operating statistics for Natural Gas and NGL Services show significant growth in total gathering throughput, driven by Southwest Operations, and a modest increase in natural gas processed and NGLs fractionated Natural Gas and NGL Services Operating Statistics - Consolidated | Metric | Q1 2025 | Q1 2024 | % Change | | :------------------------------ | :------- | :------- | :------- | | Marcellus Operations gathering throughput (MMcf/d) | 1,500 | 1,493 | — % | | Southwest Operations gathering throughput (MMcf/d) | 1,785 | 1,601 | 11% | | Total gathering throughput (MMcf/d) | 4,276 | 3,839 | 11% | | Marcellus Operations natural gas processed (MMcf/d) | 4,325 | 4,325 | — % | | Southwest Operations natural gas processed (MMcf/d) | 1,879 | 1,629 | 15% | | Total natural gas processed (MMcf/d) | 7,166 | 6,993 | 2% | | Total C2 + NGLs fractionated (mbpd) | 596 | 588 | 1% | [Natural Gas and NGL Services Operating Statistics - Operated](index=11&type=section&id=Natural%20Gas%20and%20NGL%20Services%20Operating%20Statistics%20-%20Operated) Operated statistics for Natural Gas and NGL Services reveal strong growth in total gathering throughput and natural gas processed, particularly in Utica and Southwest Operations, and a significant increase in NGLs fractionated in Utica Natural Gas and NGL Services Operating Statistics - Operated | Metric | Q1 2025 | Q1 2024 | % Change | | :------------------------------ | :------- | :------- | :------- | | Utica Operations gathering throughput (MMcf/d) | 2,438 | 2,286 | 7% | | Southwest Operations gathering throughput (MMcf/d) | 1,785 | 1,601 | 11% | | Total gathering throughput (MMcf/d) | 6,516 | 6,226 | 5% | | Utica Operations natural gas processed (MMcf/d) | 965 | 777 | 24% | | Southwest Operations natural gas processed (MMcf/d) | 1,879 | 1,629 | 15% | | Total natural gas processed (MMcf/d) | 9,781 | 9,371 | 4% | | Utica Operations C2 + NGLs fractionated (mbpd) | 64 | 44 | 45% | | Total C2 + NGLs fractionated (mbpd) | 660 | 632 | 4% | [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) This section provides comprehensive reconciliations of various non-GAAP financial measures, including Adjusted EBITDA, DCF, and Adjusted Free Cash Flow, to their most directly comparable GAAP measures [Reconciliation of Segment Adjusted EBITDA to Net Income](index=12&type=section&id=Reconciliation%20of%20Segment%20Adjusted%20EBITDA%20to%20Net%20Income) This reconciliation details the adjustments made from segment-level Adjusted EBITDA to arrive at the consolidated net income attributable to MPLX LP, highlighting the impact of depreciation, interest, equity method investments, and noncontrolling interests Reconciliation of Segment Adjusted EBITDA to Net Income | (In millions) | March 31, 2025 | March 31, 2024 | | :------------------------------------------------ | :------------- | :------------- | | Crude Oil and Products Logistics segment adjusted EBITDA attributable to MPLX LP | $1,097 | $1,059 | | Natural Gas and NGL Services segment adjusted EBITDA attributable to MPLX LP | $660 | $576 | | Adjusted EBITDA attributable to MPLX LP | $1,757 | $1,635 | | Depreciation and amortization | ($326) | ($317) | | Net interest and other financial costs | ($229) | ($235) | | Income from equity method investments | $186 | $157 | | Net income | $1,136 | $1,015 | [Reconciliation of Segment Adjusted EBITDA to Income from Operations](index=12&type=section&id=Reconciliation%20of%20Segment%20Adjusted%20EBITDA%20to%20Income%20from%20Operations) This reconciliation provides a breakdown of how segment-specific Adjusted EBITDA is adjusted for depreciation, equity method investments, and other items to derive the income from operations for each segment and consolidated Reconciliation of Segment Adjusted EBITDA to Income from Operations | (In millions) | March 31, 2025 | March 31, 2024 | | :------------------------------------------------ | :------------- | :------------- | | Crude Oil and Products Logistics Segment adjusted EBITDA | $1,097 | $1,059 | | Crude Oil and Products Logistics Depreciation and amortization | ($133) | ($130) | | Natural Gas and NGL Services Segment adjusted EBITDA | $660 | $576 | | Natural Gas and NGL Services Depreciation and amortization | ($193) | ($187) | | Income from operations | $1,366 | $1,251 | [Reconciliation of Adjusted EBITDA and DCF from Net Income](index=13&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20DCF%20from%20Net%20Income) This reconciliation illustrates the detailed adjustments from net income to Adjusted EBITDA and subsequently to Distributable Cash Flow (DCF) attributable to LP unitholders, providing transparency on the calculation of these key non-GAAP metrics Reconciliation of Adjusted EBITDA and DCF from Net Income | (In millions) | March 31, 2025 | March 31, 2024 | | :------------------------------------------------ | :------------- | :------------- | | Net income | $1,136 | $1,015 | | Provision for income taxes | $1 | $1 | | Net interest and other financial costs | $229 | $235 | | Income from operations | $1,366 | $1,251 | | Depreciation and amortization | $326 | $317 | | Adjusted EBITDA attributable to MPLX LP | $1,757 | $1,635 | | Deferred revenue impacts | ($18) | $13 | | Adjusted net interest and other financial costs | ($219) | ($222) | | Maintenance capital expenditures, net of reimbursements | ($35) | ($35) | | DCF attributable to LP unitholders | $1,486 | $1,360 | [Reconciliation of Net Income to LTM Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20LTM%20Adjusted%20EBITDA) This reconciliation details the adjustments from net income to Last Twelve Month (LTM) Adjusted EBITDA, providing a trailing twelve-month view of the company's operational performance and its leverage ratio Reconciliation of Net Income to LTM Adjusted EBITDA | (In millions) | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :------------------------------------------------ | :------------- | :------------- | :---------------- | | LTM Net income | $4,478 | $4,029 | $4,357 | | Provision for income taxes | $10 | $11 | $10 | | Net interest and other financial costs | $915 | $915 | $921 | | LTM income from operations | $5,403 | $4,955 | $5,288 | | Depreciation and amortization | $1,292 | $1,234 | $1,283 | | LTM Adjusted EBITDA attributable to MPLX LP | $6,886 | $6,385 | $6,764 | | Consolidated total debt | $22,708 | $20,706 | $21,206 | | Consolidated total debt to LTM adjusted EBITDA | 3.3x | 3.2x | 3.1x | [Reconciliation of Adjusted EBITDA and DCF from Net Cash Provided by Operating Activities](index=15&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20DCF%20from%20Net%20Cash%20Provided%20by%20Operating%20Activities) This reconciliation provides an alternative view of deriving Adjusted EBITDA and DCF, starting from net cash provided by operating activities and adjusting for working capital changes, interest costs, and capital expenditures Reconciliation of Adjusted EBITDA and DCF from Net Cash Provided by Operating Activities | (In millions) | March 31, 2025 | March 31, 2024 | | :------------------------------------------------ | :------------- | :------------- | | Net cash provided by operating activities | $1,246 | $1,291 | | Changes in working capital items | $230 | $71 | | Adjusted net interest and other financial costs | $219 | $222 | | Adjusted EBITDA attributable to MPLX LP | $1,757 | $1,635 | | Deferred revenue impacts | ($18) | $13 | | Maintenance capital expenditures, net of reimbursements | ($35) | ($35) | | DCF attributable to LP unitholders | $1,486 | $1,360 | [Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Adjusted%20Free%20Cash%20Flow) This reconciliation details the calculation of Adjusted Free Cash Flow and Adjusted Free Cash Flow after distributions, starting from net cash provided by operating activities and accounting for investing activities, contributions, and distributions Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow | (In millions) | March 31, 2025 | March 31, 2024 | | :------------------------------------------------ | :------------- | :------------- | | Net cash provided by operating activities | $1,246 | $1,291 | | Net cash used in investing activities | ($601) | ($996) | | Contributions from MPC | $7 | $10 | | Distributions to noncontrolling interests | ($11) | ($11) | | Adjusted free cash flow | $641 | $294 | | Distributions paid to common and preferred unitholders | ($978) | ($876) | | Adjusted free cash flow after distributions | ($337) | ($582) | - Net cash provided by operating activities for Q1 2025 and Q1 2024 included **working capital builds of $230 million and $71 million**, respectively[56](index=56&type=chunk) - Net cash used in investing activities for Q1 2025 and Q1 2024 included **acquisitions of $237 million and $622 million**, respectively[57](index=57&type=chunk) [Capital Expenditures](index=16&type=section&id=Capital%20Expenditures) MPLX increased its growth capital expenditures in Q1 2025, reflecting ongoing investments in expansion projects, while maintenance capital expenditures remained stable, demonstrating a balanced approach to growth and asset upkeep [Capital Expenditures](index=16&type=section&id=Capital%20Expenditures) MPLX increased its growth capital expenditures in Q1 2025, reflecting ongoing investments in expansion projects, while maintenance capital expenditures remained stable, demonstrating a balanced approach to growth and asset upkeep Capital Expenditures Summary | (In millions) | March 31, 2025 | March 31, 2024 | Change | % Change | | :------------------------------------------------ | :------------- | :------------- | :----- | :------- | | Growth capital expenditures | $220 | $165 | $55 | 33.3% | | Growth capital reimbursements | ($27) | ($21) | ($6) | 28.6% | | Investments in unconsolidated affiliates | $119 | $119 | $0 | 0.0% | | Total growth capital expenditures | $307 | $259 | $48 | 18.5% | | Maintenance capital expenditures | $48 | $45 | $3 | 6.7% | | Total maintenance capital expenditures | $34 | $35 | ($1) | (2.9%) | | Total growth and maintenance capital expenditures | $341 | $294 | $47 | 16.0% | - Total growth capital expenditures for Q1 2025 and Q1 2024 exclude **acquisitions of $237 million and $622 million**, respectively[59](index=59&type=chunk)