Core Viewpoint - MPLX LP has completed a $2.375 billion acquisition of Northwind Delaware Holdings LLC, enhancing its natural gas and NGL value chains in the Permian Basin [1][2]. Financial Summary - The acquisition is expected to be immediately accretive to distributable cash flow and involves an estimated incremental capital of $500 million, representing a 7x multiple on forecast 2027 EBITDA and an estimated mid-teen unlevered return [2]. - The acquisition was financed through net proceeds from MPLX's $4.5 billion senior notes issued in August 2025 [2]. Operational Details - The acquired business complements MPLX's existing Delaware basin natural gas system, consisting of over 200,000 dedicated acres, 200+ miles of gathering pipelines, and two in-service acid gas injection wells with a capacity of 20 million cubic feet per day (MMcf/d), with a third well permitted to increase total capacity to 37 MMcf/d [3]. - The system currently has a sour gas treating capacity of 150 MMcf/d, with expansion projects expected to increase this capacity to 440 MMcf/d by the second half of 2026 [3]. - The system is supported by minimum volume commitments from top regional producers [3]. Company Overview - MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets, including crude oil and refined product pipelines, storage caverns, and natural gas processing facilities [4].

Core Viewpoint - South Bow Corp. reported its second-quarter 2025 financial and operational results, highlighting stable performance despite challenges in the market and ongoing projects related to its spinoff from TC Energy [1]. Financial Performance - Revenue for Q2 2025 was $524 million, with a net income of $96 million, translating to $0.46 per share [8]. - Normalized EBITDA for Q2 2025 was $250 million, a 6% decrease from Q1 2025, primarily due to lower contributions from the Marketing segment [5][8]. - Distributable cash flow reached $167 million in Q2 2025 [5]. - The company maintained total long-term debt of $5.8 billion and net debt of $4.9 billion, with a net debt-to-normalized EBITDA ratio of 4.6 times as of June 30, 2025 [5][8]. Operational Performance - Average throughput on the Keystone Pipeline was approximately 544,000 barrels per day (bbl/d) in Q2 2025, with the U.S. Gulf Coast segment averaging about 760,000 bbl/d [5]. - The company completed construction of a 150,000-barrel crude oil storage tank as part of the Blackrod Connection Project, which is expected to be operational in early 2026 [5]. - South Bow successfully completed cleanup and reclamation of the Milepost 171 incident site, with costs estimated at $58 million, largely recoverable through insurance [5][12]. Returns to Shareholders - The company declared dividends totaling $104 million, or $0.50 per share, during Q2 2025, with the next dividend payment scheduled for October 15, 2025 [5][8]. - South Bow's capital allocation priorities include paying a sustainable base dividend and strengthening its investment-grade financial position [23]. Outlook - The demand for uncommitted capacity on the Keystone Pipeline is expected to remain low in the near term due to excess pipeline egress capacity in the Western Canadian Sedimentary Basin [13]. - South Bow anticipates a modest increase in its net debt-to-normalized EBITDA ratio through 2025, with expectations to begin reducing leverage once the Blackrod Connection Project starts generating cash flow in 2026 [14].

Core Insights - Delek Logistics Partners reported solid GAAP earnings per share of $0.83, exceeding consensus estimates by a penny, while GAAP revenue fell to $246.4 million, missing expectations by $6.9 million [1][2] - Adjusted EBITDA surged to $120.9 million, an 18.1% increase year-over-year, driven by recent acquisitions and facility expansions [1][6] - The company achieved its 50th consecutive quarterly distribution increase, raising the distribution per unit to $1.115, up 2.3% from the previous year [1][7] Financial Performance - Q2 2025 EPS was $0.83, slightly down from $0.87 in Q2 2024, reflecting a 4.6% year-over-year decline [2] - Revenue for Q2 2025 was $246.4 million, down 6.9% from $264.6 million in Q2 2024 [2] - Adjusted EBITDA reached $120.9 million, up from $102.4 million in Q2 2024, marking an 18.1% increase [2][6] - Distributable cash flow, as adjusted, rose to $72.5 million, a 7.0% increase from $67.8 million in Q2 2024 [2][7] Business Operations - Delek Logistics operates as a master limited partnership, focusing on midstream infrastructure for oil, gas, and water producers in the Permian Basin [3] - Recent focus has been on expanding asset footprint in the Delaware and Midland Basins, including investments in new gas processing plants [4] - The completion of the Libby 2 gas processing plant enhances the company's processing capacity, addressing strong regional demand [5] Revenue Sources - Affiliate revenues dropped to $114.1 million from $156.8 million in Q2 2024, indicating a shift towards increasing third-party contributions [8][10] - Third-party revenues rose by 22.7% year-over-year, reaching $132.3 million, highlighting a strategic move to reduce dependence on Delek Holdings [10] Capital Expenditures and Debt - Capital expenditures increased significantly to $119.2 million, primarily for growth projects, compared to $10.2 million in Q2 2024 [11] - Total debt rose to $2.2 billion as of June 30, 2025, with a leverage ratio of approximately 4.32x [12] Future Outlook - The company reaffirmed its FY2025 Adjusted EBITDA guidance at $480 million to $520 million, indicating confidence in operational execution [14] - Management expressed intentions to continue increasing distributions in the future, with a focus on third-party revenue growth and asset integration [15]

Core Insights - MPLX LP reported a net income of $1,048 million for Q2 2025, a decrease from $1,176 million in Q2 2024, and a total net income of $2,174 million for the first half of 2025, slightly down from $2,181 million in the same period of 2024 [1][5][10] Financial Performance - Adjusted EBITDA for Q2 2025 was $1,690 million, up from $1,653 million in Q2 2024, with the Crude Oil and Products Logistics segment contributing $1,138 million and the Natural Gas and NGL Services segment contributing $552 million [2][5][10] - Net cash provided by operating activities was $1,736 million for Q2 2025, with distributable cash flow of $1,420 million and adjusted free cash flow of $1,130 million [3][5][10] - The distribution per common unit for Q2 2025 was $0.9565, resulting in a distribution coverage ratio of 1.5x [3][5][10] Segment Performance - The Crude Oil and Products Logistics segment saw a 4% increase in adjusted EBITDA to $1,138 million, driven by higher rates and throughputs, despite increased operating expenses [7][10] - The Natural Gas and NGL Services segment experienced a slight decrease in adjusted EBITDA to $552 million, attributed to higher operating expenses and project spending [9][10] Strategic Developments - MPLX announced the acquisition of Northwind Midstream for $2.375 billion, aimed at enhancing its Natural Gas and NGL growth strategies in the Permian basin [4][12][10] - The company reported a 5% year-over-year adjusted EBITDA growth in the first half of 2025, supporting its mid-single digit growth strategy [4][10] Financial Position and Liquidity - As of June 30, 2025, MPLX had $1.4 billion in cash and a leverage ratio of 3.1x, indicating stable cash flows [15][10] - The company repurchased $100 million of common units in Q2 2025 and has an additional $320 million remaining under its unit repurchase authorization [16][10]