Core Insights - MPLX reported third-quarter 2025 financial results that met market expectations, including a 12.5% increase in unitholder distribution and a strategic opportunity to support data centers in Texas [1][2] Financial Performance Overview - Adjusted EBITDA for the third quarter was $1.77 billion, aligning with the consensus estimate of $1.75 billion [2] - The quarterly distribution was increased by 12.5% to $1.0765 per unit, effective in late October [2] - The company aims to sustain annual distribution growth while maintaining distribution coverage at or above 1.3x [3] Growth Outlook - MPLX reaffirmed its outlook for mid-single-digit adjusted EBITDA growth for 2025 and beyond, with stronger growth expected in 2026 [4] - Key projects, such as the Secretariat processing plant, are anticipated to support these growth expectations [4] Strategic Developments - A significant development was the letter of intent (LOI) with MARA to supply natural gas for power generation and data centers in West Texas, starting at 400 megawatts with potential scaling to 1.5 gigawatts [4][5] - This opportunity demonstrates that lucrative data center sector prospects can align with existing gathering and processing assets [5] Market Position - MPLX is the top holding in the Alerian MLP ETF (AMLP), which has a yield of 8.34% as of November 4 [5]

Financial Data and Key Metrics Changes - Adjusted EPS for Q3 2025 was $2.78, a 32% increase from Q3 2024, while adjusted EBITDA reached $1.205 billion, a 14% increase year-over-year [13] - Year-to-date adjusted EPS is $7.17, reflecting a 36% increase compared to the same period last year, with adjusted EBITDA exceeding $3.2 billion, a 12% increase [13][16] - Free cash flow before growth for Q3 was $828 million, and year-to-date free cash flow before growth was $2.035 billion, a 42% increase year-over-year [15][16] Business Line Data and Key Metrics Changes - The Texas segment reported adjusted EBITDA of $807 million for Q3 and $1.618 billion year-to-date, representing improvements of 38% and 29% respectively [14] - The East segment contributed adjusted EBITDA of $107 million in Q3 and $680 million year-to-date, reflecting a modest decline due to higher supply costs [14] - The Smart Home business achieved adjusted EBITDA of $272 million in Q3 and $803 million year-to-date, supported by record customer additions and retention rates [15] Market Data and Key Metrics Changes - Total power consumption in Texas has increased nearly 30% over the past five years, driven by residential, commercial, and industrial demand [8] - Power demand is projected to outpace new supply, maintaining a structurally tight market, which reinforces the need for reliable generation [8] - The company is expanding its portfolio to add 15 GW of natural gas and 7 GW of Virtual Power Plant capacity to meet rising customer demand [9] Company Strategy and Development Direction - The company raised its 2025 financial guidance by $100 million, marking the third consecutive year of increased full-year outlook [5] - The LS Power acquisition is on track for a Q1 2026 close, which is expected to broaden the earnings base and enhance long-term growth potential [8][12] - The company is focusing on expanding its data center power agreements and has increased its target for new long-term data center agreements to above $80 per MWh [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting timelines for data center agreements and highlighted the importance of flexibility in meeting customer needs [36][38] - The company is optimistic about the ongoing demand for new power infrastructure and the potential for growth in the data center market [77] - Management emphasized a disciplined approach to growth and capital allocation, aiming to return at least $1.3 billion to shareholders [28] Other Important Information - The company is initiating 2026 standalone financial guidance with adjusted EBITDA ranges of $3.925 billion to $4.175 billion [21] - A new $3 billion share purchase authorization has been approved to be executed through 2028 [25] - The company is on track to complete $1.3 billion in share repurchases for 2025, having executed $1.084 billion by the end of October [18] Q&A Session Summary Question: Will 2026 be the year for new data center agreements? - Management indicated that while timelines are complex, they are excited about the process and confident in meeting requirements [36] Question: What is the scale of the GEV-Kiewit partnership? - Management confirmed a focus on 5.4 GW and is exploring opportunities to increase that scale [45] Question: How does the company view competition in the market? - Management expressed confidence in their position, emphasizing the importance of actual project execution over announcements [58] Question: What is the outlook for retail margins? - Management noted strong margins in Texas but acknowledged some erosion in the East due to competitive dynamics [96] Question: What is the expected impact of the LS Power acquisition on cash flow? - Management confirmed that the acquisition will enhance cash flow benefits due to additional tax shields [62]

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2025, total revenues were $19 million, an increase from $16.7 million in the prior year quarter, marking a year-over-year growth [27] - The loss from operations improved to $32.9 million compared to $42.5 million in the first quarter of fiscal year 2024 [27] - Net loss attributable to common stockholders was $29.1 million, compared to $20.6 million in the first quarter of fiscal year 2024, resulting in a net loss per share of $1.42 [27][28] - Adjusted EBITDA totaled negative $21.1 million, an improvement from negative $29.1 million in the prior year quarter [28] Business Line Data and Key Metrics Changes - Product revenues were $100,000, compared to no product revenue recognized in the prior year [29] - Service agreement revenues increased to $1.8 million from $1.6 million, driven by the Long Term Service Agreement with GGE [30] - Generation revenues increased by 8.1% to $11.3 million from $10.5 million [31] - Advanced Technology contract revenues rose to $5.7 million from $4.6 million [31] Market Data and Key Metrics Changes - Backlog increased to $1.31 billion as of January 31, 2025, compared to $1.03 billion a year earlier, reflecting new agreements and projects [33] - The company expects to recognize revenue from 30 replacement fuel cell modules throughout calendar year 2025 [34] Company Strategy and Development Direction - The company launched a global restructuring plan aimed at reducing operating costs by approximately 15% in fiscal year 2025 compared to fiscal year 2024 [26] - A partnership with Diversified Energy and Tesiac was announced to address energy demands of AI and high-performance computing data centers, aiming to deliver up to 360 megawatts of electricity [10] - A joint development agreement with Malaysia Marine and Heavy Engineering was signed to co-develop large-scale hydrogen production systems across Asia, New Zealand, and Australia [11] - The company is focused on cost discipline and moving toward profitability, with a commitment to clean energy solutions [7][16] Management's Comments on Operating Environment and Future Outlook - Management believes the first fiscal quarter of 2025 marks the low watermark for revenue, setting the stage for growth as module deliveries increase [8] - The company is optimistic about the future, citing strong customer engagement and the potential for increased revenue from data center opportunities [62] - Management acknowledged some uncertainty in the market due to tax credit discussions but remains confident in the company's positioning and capabilities [62] Other Important Information - The company reported a significant reduction in gross loss, decreasing to $5.2 million from $11.7 million in the prior year quarter, primarily due to lower construction costs [31] - Operating expenses decreased to $27.6 million from $30.8 million, reflecting cost control measures [32] - The company had cash, restricted cash, cash equivalents, and short-term investments of over $270 million as of January 31, 2025 [34] Q&A Session Summary Question: Details about the Diversified Energy deal - The partnership focuses on leveraging existing gas assets and includes both greenfield and brownfield opportunities, with a financing structure involving project financing and tax equity [38][39] Question: Updates on the Trigent project and customer interest - There are ongoing discussions about clean hydrogen opportunities, but uncertainty around tax credits has slowed progress domestically [52] Question: Timeline for the Hartford project - The Hartford project is expected to be constructed in the 2026 timeframe, with a firm twenty-year power purchase agreement [60][61] Question: Impact of the new U.S. Administration on market development - There is some uncertainty affecting project development, but the company is well-positioned to leverage its fuel flexibility in the current market [62] Question: Compensation structure for the JDA projects - The company expects product sales, long-term service opportunities, and potential cash flows from the joint venture arrangement [66] Question: Technology for net zero power and emissions capture - The company can leverage coal mine methane for net zero solutions and has the capability to recover carbon for various applications [68][70]