Core Insights - MPLX LP reported Q2 2025 earnings of $1.03 per unit, missing the Zacks Consensus Estimate of $1.07, and down from $1.15 in the prior year [2] - Total quarterly revenues were $3 billion, below the Zacks Consensus Estimate of $3.2 billion, and decreased from $3.1 billion year-over-year [2] - The weak results were primarily due to decreased gathering throughput volumes and increased operating expenses [2] Segmental Highlights - MPLX has redefined its reporting segments to Crude Oil and Products Logistics and Natural Gas and NGL Services [3] - Adjusted EBITDA from the Crude Oil and Products Logistics segment increased to $1.14 billion, up from $1.1 billion a year ago, driven by higher rates and increased throughputs [4] - Total pipeline throughputs were 6.1 million barrels per day, a 1% increase from 6.02 million barrels per day in the prior year [4] - Adjusted EBITDA from the Natural Gas and NGL Services segment was $552 million, slightly below $554 million in the year-ago quarter, impacted by higher operating expenses and project spending [5] - Gathering throughput volumes averaged 6.56 billion cubic feet per day, a 1% decrease from the prior year, while natural gas processed volumes totaled 9.7 Bcf/d, indicating a 2% improvement [5] Costs and Expenses - Total costs and expenses were $1.71 billion, up from $1.63 billion in the previous year, primarily due to higher operating expenses [6] Cash Flow - Distributable cash flow totaled $1.42 billion, providing 1.5x distribution coverage, an increase from $1.4 billion in the year-ago quarter [7] - Adjusted free cash flow declined to $1.13 billion from $1.45 billion in Q2 2024 [7] Balance Sheet - As of June 30, 2025, MPLX had cash and cash equivalents of $1.4 billion and total debt of $21.2 billion [8]

Financial Data and Key Metrics Changes - The company reported a net loss of $7.1 million for Q1 2025, an improvement from a net loss of $17.5 million in Q1 2024, driven by ongoing class of trade conversions and real estate rationalization efforts [24] - Adjusted EBITDA for Q1 2025 was $24.3 million, a 3% increase from $23.6 million in Q1 2024 [25] - Distributable cash flow decreased to $9.1 million in Q1 2025 from $11.7 million in Q1 2024, primarily due to higher cash interest expenses and sustaining capital expenditures [25][26] - Distribution coverage for the trailing twelve months was 1.04 times, down from 1.37 times in the previous year [26] Business Line Data and Key Metrics Changes - Retail segment gross profit increased by 16% to $63.2 million in Q1 2025 from $54.4 million in Q1 2024, driven by higher motor fuel and merchandise gross profit [8] - Inside sales on a same-site basis were down approximately 1.5% year over year, while inside sales excluding cigarettes declined by 1% [14] - Wholesale segment gross profit declined by 1% to $26.7 million, primarily due to a decrease in fuel volume and rental income [18] Market Data and Key Metrics Changes - Retail same store fuel volume was approximately in line with the overall market, while same store merchandise sales, excluding cigarettes, outperformed the market but were still below prior year results [7] - National gasoline demand was down approximately 4% for the quarter, reflecting broader market trends [11][20] - The company experienced a decline in overall retail volume of 4%, which adjusted for leap year effects would be approximately 3% [10] Company Strategy and Development Direction - The company continues to focus on converting lessee dealer sites to company-operated retail sites to increase exposure to retail fuel margins [17] - Strategic efforts include optimizing class of trade operations and ongoing real estate rationalization to generate additional capital for investment [32] - The company is actively evaluating its portfolio for opportunities to divest non-core properties, having divested seven sites for $8.6 million in proceeds during the quarter [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to the year due to weather impacts, inflationary pressures, and economic uncertainty from tariffs [22][23] - Despite these challenges, management remains optimistic about the execution of their retail strategy and the potential for improved performance in the upcoming summer driving season [23][32] Other Important Information - The company increased its company-operated site count by 33 from the prior year and 11 from the end of the previous quarter [15] - Operating expenses for the retail segment increased by approximately 20% year over year, primarily due to a rise in average site count [27] - Capital expenditures totaled $10.1 million, with $7.4 million allocated to growth-related projects [30] Q&A Session Summary Question: Are there any questions from the audience? - There were no questions from the audience during the Q&A session [35]