Financial Data and Key Metrics Changes - The company reported a second quarter net income of $3.96 per share and returned approximately $1 billion to shareholders through dividends and repurchases [14] - Adjusted EBITDA for the quarter was approximately $3.3 billion, an increase of $1.3 billion sequentially, primarily due to increased results in the Refining and Marketing segment [14][17] - Operating cash flow excluding changes in working capital was $2.6 billion for the quarter, with capital expenditures just over $1 billion [19] Business Line Data and Key Metrics Changes - The Refining and Marketing segment achieved 97% utilization, processing 2.9 million barrels of crude per day, with adjusted EBITDA of $6.79 per barrel [15][17] - The Midstream segment delivered a year-to-date adjusted EBITDA growth of 5% over the previous year, with distributions from MPLX increasing by 12.5% year-over-year [17][18] - The Renewable Diesel segment operated at 76% capacity, with improved margins due to incremental production tax credits [18] Market Data and Key Metrics Changes - U.S. gasoline inventories are in line with five-year averages, while diesel inventories are at historically low levels, supporting strong margins [6][8] - The company expects crude differentials to widen later in the year due to higher OPEC plus production and increased Canadian supply [7][32] Company Strategy and Development Direction - The company is committed to optimizing its portfolio through strategic investments and divestitures, including the $425 million divestiture of its partial interest in ethanol production facilities [10][22] - MPLX's strategic acquisition of Northwind Midstream for under $2.4 billion is expected to enhance its growth platform in the natural gas and NGL value chain [11][12] - The company aims to maintain industry-leading capital returns through its integrated value chain and diversified assets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the refining industry, expecting demand growth to exceed the impact of capacity additions through the end of the decade [7][21] - The company anticipates continued strong diesel demand and tight inventory levels to support margins [6][100] - Management highlighted the importance of operational excellence and commercial performance in delivering peer-leading profitability [21][68] Other Important Information - The company plans to execute a $1.25 billion standalone capital plan for 2025, with 70% targeted at high-return projects [22] - The company has a strong balance sheet with cash of nearly $300 million and MPLX cash of approximately $1.4 billion [20] Q&A Session Summary Question: Can you discuss the 105% capture achieved in the second quarter? - Management emphasized the focus on commercial performance and structural improvements that support sustainable results [26][28] Question: What is the outlook for quality discounts as OPEC increases production? - Management expects differentials to widen in the second half of the year due to increased OPEC production and bullish Canadian production [32][35] Question: How will the California refinery closures impact the company? - Management sees opportunities in accessing local California crudes and believes their integrated system provides a competitive advantage [42][46] Question: What is the expected turnaround expense for the coming years? - Management indicated that the current turnaround expenses may be at a peak, with expectations for a decrease in future years [50][51] Question: How does the company view return of capital and share buybacks? - Management reiterated their commitment to returning all free cash flow in the form of share buybacks, supported by MPLX's growing distribution [58][60] Question: What are the factors behind the recent strength in diesel cracks? - Management cited low U.S. inventories and strong demand as key drivers for the sustainability of diesel cracks [99][101] Question: Can you elaborate on the decision to divest the ethanol stake? - Management stated that the divestiture was based on a compelling offer and the opportunity to optimize the portfolio for future growth [102][105] Question: What opportunities exist in the midstream build-out? - Management highlighted ongoing optimization strategies in both NGL and natural gas sectors, with a focus on integration and growth in the Permian [110][113]

SECOND QUARTER 2025 Earnings Conference Call August 5, 2025 M P L X | 2 Q 2 0 2 5 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX's expectations, estimates and projections concerning its business and operations, financial priorities, including with respect to positive free cash flow and distribution coverage, strategic plans, capital return plans, capital expenditure plans, ope ...

Core Insights - Enbridge Inc. reported second-quarter 2025 adjusted earnings per share of 47 cents, exceeding the Zacks Consensus Estimate of 41 cents and improving from 42 cents per share in the prior year [1] - Total quarterly revenues reached $10.8 billion, up from $8.3 billion in the same quarter last year, also surpassing the Zacks Consensus Estimate of $9.1 billion [1] Financial Performance - The strong quarterly results were driven by higher Adjusted EBITDA contributions from the Gas Transmission and Gas Distribution and Storage segments [2] - Enbridge's Distributable Cash Flow (DCF) was reported at C$2.9 billion, an increase from C$2.86 billion a year ago [8] Segment Analysis - **Liquids Pipelines**: Adjusted EBITDA totaled C$2.34 billion, down from C$2.46 billion in the prior year, primarily due to lower contributions from the Gulf Coast and Mid-Continent systems [4] - **Gas Transmission**: Adjusted earnings increased to C$1.38 billion from C$1.08 billion in the second quarter of 2024, aided by higher contributions from the U.S. gas transmission segment and rate case settlements [5] - **Gas Distribution and Storage**: This segment generated a profit of C$840 million, up from C$567 million in the prior year, driven by increased contributions from U.S. Gas Utilities [6] - **Renewable Power Generation**: Earnings decreased to C$120 million from C$147 million in the prior year [6] - **Eliminations and Other**: This segment recorded a negative adjusted EBITDA of C$36 million, compared to earnings of C$83 million in the second quarter of 2024 [7] Balance Sheet - At the end of the second quarter, Enbridge reported long-term debt of C$97 billion, with cash and cash equivalents of C$1.2 billion and a current portion of long-term debt of C$3.2 billion [9] Outlook - Enbridge reaffirmed its 2025 guidance, projecting adjusted EBITDA between $19.4 billion and $20.0 billion and DCF per share between $5.50 and $5.90 [12] - The company also reaffirmed a near-term growth outlook (2023-2026) of 7-9% for adjusted EBITDA and 3% for DCF per share [12]

Analyst's Disclosure:I/we have a beneficial long position in the shares of CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working ...

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Company Overview - Enbridge is one of the largest midstream companies globally, with a market capitalization exceeding $100 billion [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Financial Data and Key Metrics Changes - In the second quarter, the company generated $284 million of EBITDA, an 11% year-over-year increase driven by higher gathering and processing volumes, which set new company records [6] - Free cash flow after dividends reached $82 million, representing a nearly 90% increase compared to the previous year [7] - The company reduced its leverage to 2.8 times as of June 30 [7] Business Line Data and Key Metrics Changes - The company invested $45 million in gathering, compression, water, and joint venture projects during the second quarter, bringing year-to-date capital investment to $82 million, which is 45% of the updated 2025 capital budget [4] - The compression reuse program has realized over $50 million in savings, with future savings estimates increased from $60 million to over $85 million [5] Market Data and Key Metrics Changes - The company is uniquely positioned to connect low-cost production to LNG facilities along the Gulf Coast, while also maintaining optionality to connect to local markets [10] - The company expects project announcements in Appalachia to accelerate due to regulatory support, particularly in West Virginia [10] Company Strategy and Development Direction - The company continues to execute its organic growth plan, focusing on predictable earnings and capital efficiency, which allows for attractive dividends, debt reduction, and share repurchases [11] - The company is exploring opportunities to build infrastructure to meet growing demand in the Northeast, particularly in West Virginia [25] Management's Comments on Operating Environment and Future Outlook - Management does not expect to be a material cash taxpayer through at least 2028, benefiting from recent tax legislation [9][32] - The company is actively looking for opportunities in the asset market, particularly bolt-on acquisitions around its current asset base [37] Other Important Information - The company has made significant progress on its capital projects and is focusing on low-pressure gathering and water connections to set up the 2026 development plan [4] Q&A Session Summary Question: Opportunities for AM in basin demand - Management indicated that AM could build infrastructure to meet growing demand, leveraging its large footprint in West Virginia and Ohio [14] Question: Capital allocation strategy - Management stated that the 50% allocation to buybacks is a long-term target, with flexibility based on market conditions [16][18] Question: In-basin demand opportunities related to recent announcements - Management noted that West Virginia's microgrid bill could create significant opportunities for AM, particularly in data center supply [24] Question: Clearwater facility lawsuit update - Management stated there is no new information regarding the lawsuit, which is pending a decision from the Colorado Supreme Court [27] Question: Processing capacity and potential new plant - Management indicated that there is still room to run processing plants above nameplate capacity, with no immediate need for additional processing capacity [30] Question: Long-term cash tax expectations - Management reiterated that they do not expect to be a full cash taxpayer for at least five years, benefiting from recent tax legislation [32] Question: Inorganic opportunities in the asset market - Management confirmed they are continuously looking for bolt-on acquisition opportunities but have no immediate plans to announce [37]

Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently. Analyst's Disclosure:I/we have no stock, opt ...

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]. - The article suggests that investment recommendations are built upon a comprehensive understanding of the investment landscape [1].

Financial Data and Key Metrics Changes - The company reported a second quarter net income attributable to shareholders of $208 million or $1.1 per diluted share, with adjusted net income of $322 million or $1.7 per diluted share compared to $150 million or $0.78 per diluted share in the same period of 2024 [15][16] - Adjusted EBITDA for the second quarter was $665 million compared to $406 million in 2024 [16] - The company returned $145 million in cash to shareholders, consisting of $50 million in share repurchases and $95 million in regular dividends [13] Business Line Data and Key Metrics Changes - In the refining segment, adjusted EBITDA was $476 million compared to $187 million in 2024, driven by higher adjusted refinery gross margins [16] - The Renewables segment reported adjusted EBITDA of negative $2 million, impacted by lower sales volumes and margins, with total sales volumes of 55 million gallons compared to 64 million gallons in 2024 [17][18] - The Marketing segment delivered $25 million in EBITDA, up from $15 million in 2024, driven by higher margins [18] - The Lubricants and Specialties segment reported EBITDA of $55 million, down from $97 million in 2024, primarily due to lower base oil margins and sales volumes [19] - The Midstream segment reported adjusted EBITDA of $112 million, slightly up from $110 million in the same period last year [19] Market Data and Key Metrics Changes - The company achieved an operating expense per throughput barrel of $7.32, nearing its goal of $7.25 per barrel [10] - The refining throughput averaged 616,000 barrels per day for the second quarter, down from 635,000 barrels per day in 2024 due to turnaround activities [16] Company Strategy and Development Direction - The company is focused on improving reliability, optimization, and integration, with a commitment to return excess cash to shareholders [8][14] - The company plans to continue executing its strategy with one remaining turnaround scheduled at the Puget Sound refinery [10] - The company is optimistic about refining margins, particularly in distillates, and believes its overall strategy is delivering organic growth [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of each business, including refining, and noted improvements in reliability and operational performance [104][105] - The company anticipates continued strength in refining margins and is positioned well to take advantage of market opportunities [13][40] Other Important Information - The company has approximately $750 million remaining on its share repurchase authorization and has reduced its share count by over 58 million shares since the Sinclair acquisition [13] - The Board of Directors declared a regular quarterly dividend of $0.50 per share, payable on September 4, 2025 [13] Q&A Session Summary Question: Understanding strong performance in refining and capture rates - Management highlighted improvements in crude performance and flexibility in crude slate, contributing to strong capture rates despite market headwinds [24][26] Question: Balancing shareholder returns and bolt-on opportunities - Management reiterated commitment to shareholder returns while also pursuing organic growth opportunities, indicating a balance can be achieved [30][31] Question: Renewable diesel credits and market structure - Management confirmed recognition of producers' tax credits and expressed optimism about future market structure improvements for renewable diesel [35][40] Question: Operational performance and turnaround improvements - Management noted significant improvements in turnaround performance and reliability, indicating a successful operational excellence journey [42][45] Question: M&A perspective and market opportunities - Management stated a focus on bolt-on opportunities in marketing and lubricants, while being cautious about the current M&A landscape [72][74] Question: Renewable diesel sustainable EBITDA and SREs - Management expressed confidence in renewable diesel positioning and acknowledged potential impacts of SREs on RIN prices, indicating ongoing monitoring of the situation [96][100]