Delek Logistics Partners operates as a master limited partnership, with pipeline networks and midstream infrastructure serving oil, gas, and water producers in the Permian Basin and related regions. Its core business revolves around gathering, processing, storing, transporting, and marketing hydrocarbons and water to both affiliate and third-party customers. Recently, the company has focused on expanding its asset footprint in the Delaware and Midland Basins, investing in new gas processing plants and integ ...

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]

Core Insights - Archrock Inc. (AROC) reported second-quarter 2025 earnings per share of 39 cents, exceeding the Zacks Consensus Estimate of 37 cents, and improved from 25 cents in the same quarter last year [1] - Total quarterly revenues reached $383 million, up from $271 million year-over-year, and also surpassed the Zacks Consensus Estimate of $360 million [1] Operational Performance - The company operates through two segments: Contract Operations and Aftermarket Services - Contract Operations segment revenues were $318.3 million, compared to $225.4 million in the prior year, with total operating horsepower increasing to 4.65 million from 3.6 million, achieving a record utilization level of 96% [3][4] - Aftermarket Services segment revenues totaled $64.8 million, up from $45.1 million in the second quarter of 2024 [4] Costs & Expenses - Total cost of sales for the quarter was $146 million, an increase from $114.4 million in the previous year [5] - Depreciation and amortization expenses were reported at $63 million for the quarter [5] Liquidity Position & Capital Expenditure - As of June 30, 2025, Archrock had long-term debt of $2.6 billion and total available liquidity of $675 million [6] - Net capital expenditures for the second quarter amounted to $82.9 million [6] Dividend Payment - Archrock declared a quarterly dividend of 21 cents per share, equating to an annualized rate of $0.84, with a dividend coverage ratio of 3.4x [7] Guidance - The company expects net income for 2025 to be in the range of $249.6 million to $289.6 million, with growth capital expenditures projected between $340 million and $360 million [8]

You are taking a higher risk with Energy Transfer Energy Transfer has a diversified midstream business and a high yield, but is it worth buying? I recognize that there are good reasons for investors to buy Energy Transfer (ET -0.42%) today. I can even appreciate that the master limited partnership (MLP) has taken important steps to strengthen its business in ways that should appease the concerns I have about the investment. Yet, I still think alternatives like Enterprise Products Partners (EPD 0.43%) and En ...

MPLX LP Common Units (NYSE:MPLX) Q2 2025 Earnings Call August 5, 2025 9:30 AM ET Company Participants Carl Kristopher Hagedorn - Executive VP, CFO & Director of MPLX GP LLC David R. Heppner - Senior Vice President of MPLX GP LLC Gregory Scott Floerke - Executive VP & COO of MPLX GP LLC Kristina Anna Kazarian - Vice President of Finance & Investor Relations Maryann T. Mannen - President, CEO & Director of MPLX GP LLC Shawn M. Lyon - Senior Vice President of Storage Conference Call Participants Theresa Chen - ...

Financial Data and Key Metrics Changes - The second quarter adjusted EBITDA increased by 12% compared to the first quarter, totaling $1,980,000,000, with a net income attributable to ONEOK of $841,000,000 or $1.34 per share, representing a more than 30% increase compared to the first quarter [5][8] - The company ended the second quarter with $97,000,000 in cash and no borrowings under its $3,500,000,000 credit facility, having reduced senior notes by nearly $600,000,000 during the quarter [8][9] - The 2025 financial guidance was affirmed, with net income expected to be between $3,100,000,000 and $3,600,000, and adjusted EBITDA projected between $8,000,000,000 and $8,450,000,000 [9][10] Business Line Data and Key Metrics Changes - Natural Gas Liquids (NGL) raw feed throughput volumes increased by 18% compared to the first quarter, with the Rocky Mountain Region achieving record volumes of nearly 470,000 barrels per day [15] - Refined product volumes increased sequentially due to seasonal demand, with diesel and aviation fuel volumes remaining strong [19] - Natural gas processing volumes increased by 9% in the Mid Continent region compared to the first quarter, with the Permian Basin seeing a 4% growth in volumes [21][23] Market Data and Key Metrics Changes - The company noted strong domestic and global demand for U.S. energy, with producers executing their 2025 drilling plans effectively [5][6] - The Permian Basin continues to be a key area for strategic growth, with a new natural gas processing plant announced to enhance operations in the Delaware Basin [6][22] - The overall decrease in crude volumes was attributed to low-margin exchange volumes, while wellhead gathering volumes on Medallion assets increased approximately 20% year over year [20] Company Strategy and Development Direction - ONEOK is focused on high-return organic projects, including pipeline expansions and fractionation facilities, to capture incremental growth across its assets [6][7] - The company is committed to disciplined capital allocation and is actively monitoring market dynamics to support its growth strategy [7][10] - The integration of acquired assets is expected to deliver significant synergies, with approximately $250,000,000 of synergies anticipated in 2025 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the energy sector despite evolving macroeconomic conditions, with expectations for mid to upper single-digit EBITDA growth in 2026 [10][11] - The company is tempering its 2026 outlook based on current commodity prices, adjusting expectations downward by approximately 2% or $200,000,000 [10] - Management highlighted the importance of safety, integrity, and responsibility in operations, with a commitment to sustainability [25][26] Other Important Information - The company expects to benefit from over $1,300,000,000 in lower cash taxes over the next five years due to recent tax legislation [11] - The new Bighorn plant in the Delaware Basin is expected to have a capacity of 300,000,000 cubic feet per day and is projected to be completed by mid-2027 [22] Q&A Session Summary Question: 2026 outlook and growth drivers - Management acknowledged the change in market conditions since February and noted that the 2026 outlook was adjusted downward by 2% due to tightened spread differentials [29][31] Question: Natural gas business performance - Management indicated ongoing discussions with over 30 potential customers in the AI and data center sectors, with some contracts expected to materialize in the coming years [33][35] Question: Synergy capture and guidance confidence - Management highlighted specific projects, including connections between NGL and refined products assets, as key drivers for synergy capture and guidance confidence [42][44] Question: BridgeTex performance and outlook - Management confirmed that increasing volumes on the BridgeTex pipeline are expected, benefiting from integrated assets and strategic decisions [60][61] Question: LPG export facility and market pricing - Management stated that the location of the Texas City terminal provides a competitive advantage, with rates in line with estimated economics [50][52] Question: Hedging strategy and margins - Management noted that hedging activity is in line with previous years, allowing for opportunistic decisions based on market conditions [97][99] Question: New processing plant economics - Management discussed the integrated value of the new processing plant investment, emphasizing the benefits of having an integrated footprint [101][105]

Financial Performance - Adjusted EBITDA was $3286 million[16], with Refining & Marketing contributing $1890 million[21], and Midstream contributing $1641 million[67] - Cash Flow from Operations, excluding changes in working capital, reached $2605 million[10, 16] - Share repurchases amounted to $692 million[8, 16] - Dividends paid out totaled $279 million[16] Strategic Initiatives - Announced the Northwind Midstream acquisition for $2375 million[7, 11], expecting a mid-teen return on investment[13] - The Northwind Midstream acquisition supports MPLX's Permian wellhead-to-water strategy, covering over 200,000 dedicated acres and 200+ miles of gathering pipelines[11] Segment Performance - Refining & Marketing segment Adjusted EBITDA per Barrel was $6.79[16] - Refining & Marketing margin reached $4895 million[24] - Year-to-date Midstream Segment Adjusted EBITDA increased by 5% year-over-year to $3361 million[27, 28] Sustainability - The company is targeting a 30% reduction in Scope 1 & 2 GHG Emissions Intensity by 2030 and a 38% reduction by 2035 from 2014 levels[38] - The company is targeting a 20% reduction in Freshwater Withdrawal Intensity by 2030 from 2016 levels[39]

Financial Data and Key Metrics Changes - The company increased its 2025 adjusted EBITDA guidance midpoint by $50 million to $7.75 billion, representing a cumulative increase of $350 million since the original guidance was set in 2024 [11][18] - Adjusted EBITDA for the second quarter was $1.808 billion, an 8% increase from $1.667 billion in the previous year [13][17] - The company achieved a five-year EBITDA annual growth rate of 9% from 2020 through 2025 [11][18] Business Line Data and Key Metrics Changes - The transmission and Gulf business improved by $91 million or 11%, setting an all-time record due to higher revenues from expansion projects [13][15] - The Gulf gathering volumes increased over 17% year-over-year, and NGL production rose about 77% [15] - The Northeast G and P business improved by $22 million or 5%, primarily due to higher revenues from gathering and processing rates [15][16] Market Data and Key Metrics Changes - The company set an all-time record for summer demand on Transco, delivering 16.1 Bcf of natural gas on July 29 [7][10] - Overall volumes grew about 13% driven by growth in the Haynesville, including volumes from the Sabre acquisition [16] - The company noted that lower natural gas prices reaffirm the demand for natural gas, which is currently about a quarter of the cost of oil [64] Company Strategy and Development Direction - The company is focused on expanding its backlog of fully contracted projects, which now extends beyond 2030, to meet the growing demand for natural gas [22][24] - The strategy is aligned with the world's increasing demand for clean, affordable, and reliable energy, as well as the need for speed in energy infrastructure development [25][24] - The company is investing in infrastructure that will power America's future, with a strong emphasis on natural gas as the backbone of the energy system [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to exceed historical growth rates, citing a stronger balance sheet and favorable tailwinds [29][30] - The company anticipates continued growth in demand for natural gas, driven by LNG exports and power generation [66][82] - Management highlighted the importance of permitting reform to lower infrastructure costs and improve energy reliability [76][104] Other Important Information - The company completed six major projects in the past quarter, including significant expansions in the Gulf and deepwater sectors [8][9] - The company is optimistic about settling its Transco rate case and expects contributions from several transmission projects recently placed in service [18] - The company is actively pursuing additional storage opportunities in response to growing LNG demand [84][85] Q&A Session Summary Question: Is there an upward bias to the 5% to 7% EBITDA CAGR guidance? - Management indicated that there are no significant headwinds and that the company is positioned to exceed historical growth rates [28][29] Question: Update on long lead time equipment for additional projects? - Management expects to deliver commercial agreements for the next couple of projects in the second half of the year, with potential capacity of up to a gigawatt by 2027 [32][33] Question: FIDs on pipeline expansions? - Management noted ongoing opportunities across various regions, including the Pacific Northwest, and highlighted the importance of the Rockies Columbia Connector project [40][41] Question: Thoughts on M&A strategy? - Management emphasized a disciplined approach to M&A, focusing on strategic opportunities that align with the company's footprint [56][58] Question: Update on the Rockies Columbia Connector project? - Management highlighted increased demand for natural gas in the Pacific Northwest and expressed optimism about progressing towards an FID [97][99] Question: Impact of tariffs on CapEx and project costs? - Management indicated that steel tariffs could have a minor impact on project costs, but emphasized effective supply chain management [72][74] Question: Outlook for LNG infrastructure build-out? - Management noted significant growth in LNG demand and ongoing expansions in the Haynesville gathering system to support this demand [81][82]

Financial Data and Key Metrics Changes - In Q2 2025, MPLX reported adjusted EBITDA of $1,700,000,000, a 2% increase year over year, and a 5% growth for the first half of the year compared to 2024 [10][21] - Distributable cash flow increased by 21% year over year to $1,400,000,000 [21] - The company returned nearly $1,000,000,000 to unitholders in distributions and $100,000,000 in unit repurchases [21] Business Line Data and Key Metrics Changes - In the Crude Oil and Products Logistics segment, adjusted EBITDA increased by $39,000,000 year over year, driven by higher rates and throughputs [18] - The Natural Gas and NGL Services segment saw a decrease in adjusted EBITDA by $2,000,000 due to higher operating expenses and project spending [19] - Processing volumes in the Utica increased by 13% year over year, reflecting strong producer activity [20] Market Data and Key Metrics Changes - The Marcellus and Utica regions maintained steady rig counts and strong volumes, with expectations for growth in the second half of the year [10] - In the Permian, steady drilling activity and rising gas-oil ratios are expected to support growth opportunities [11] - The company anticipates increased natural gas demand driven by electricity generation needs for data centers and overall grid demand [11] Company Strategy and Development Direction - MPLX announced the strategic acquisition of Northwind Midstream for just under $2,400,000,000, which is expected to be immediately accretive to distributable cash flow [5][6] - The company is focused on expanding its core business by constructing processing facilities and optimizing value chains [11][12] - MPLX aims for mid-single-digit adjusted EBITDA growth and has a robust pipeline of growth opportunities [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of mid-single-digit adjusted EBITDA growth outlook for 2025 and beyond [9] - The company highlighted strong financial flexibility and the ability to pursue strategic acquisitions while maintaining leverage below four times [17] - Management emphasized the importance of capital discipline and operational optimization to support consistent annual distribution increases [16][24] Other Important Information - MPLX's seventh processing plant, Secretariat, is expected to be online by the end of 2025, increasing total Permian processing capacity to 1,400,000,000 cubic feet per day [12] - The company has announced $3,500,000,000 in bolt-on transactions in 2025 and is on track to invest $1,700,000,000 in organic growth plans [14][24] Q&A Session Summary Question: Can you talk about the ramp on Northwind from here through 2026? - Management indicated that by the end of 2026, they expect to reach the run rate EBITDA that supports the seven times EBITDA multiple [31] Question: What are your thoughts on the distribution growth for this year and beyond? - Management believes the 12.5% distribution increase is durable and supported by the growth they are delivering [36] Question: How do you see the Permian growth strategy evolving over the next few years? - Management stated that they have been working on the Permian growth strategy for years and see continued opportunities for growth [45] Question: Can you clarify the contract duration on processing for Northwind? - Management mentioned that processing contracts are typically in the range of two to three years, with an average contract life of thirteen years for MVCs [53] Question: What are the logical strategic next steps to augment exposure to gas? - Management highlighted the importance of long-haul pipelines and the growing demand for gas, particularly in the Gulf Coast and data center markets [64]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the second quarter was $1,700,000,000, representing a 2% increase year over year, and a 5% growth for the first half of the year compared to 2024 [8][19] - Distributable cash flow increased by 21% year over year to $1,400,000,000 [19] - The company returned nearly $1,000,000,000 to unitholders in distributions and $100,000,000 in unit repurchases [19] Business Line Data and Key Metrics Changes - In the Crude Oil and Products Logistics segment, adjusted EBITDA increased by $39,000,000 compared to 2024, driven by higher rates and throughputs [15] - The Natural Gas and NGL Services segment saw a decrease in adjusted EBITDA by $2,000,000 due to higher operating expenses and project spending [16] - Processing volumes in the Utica increased by 13% year over year, while total fractionation volumes declined by 5% due to lower ethane recoveries [18] Market Data and Key Metrics Changes - In the Marcellus and Utica regions, rig counts remained steady, and production volumes are expected to grow in the second half of the year [8] - The Permian Basin is experiencing steady drilling activity, which supports growth opportunities for the company [9] - The company anticipates that natural gas demand will accelerate over the next few years, driven by increased electricity generation needs [9] Company Strategy and Development Direction - The company announced a strategic acquisition of Northwind Midstream for just under $2,400,000,000, which is expected to be immediately accretive to distributable cash flow [4][5] - MPLX is focused on expanding its core business by constructing processing facilities and optimizing value chains [9][12] - The company aims for mid single-digit adjusted EBITDA growth and has a strong pipeline of growth opportunities [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of mid single-digit adjusted EBITDA growth outlook for 2025 and beyond [7][22] - The company is committed to maintaining a strong balance sheet and keeping leverage below four times [14][19] - Management highlighted the importance of strategic acquisitions and organic growth in achieving long-term value for unitholders [21][22] Other Important Information - The company plans to invest $1,700,000,000 in organic growth in 2025, with over 90% allocated to natural gas and NGL services [12] - The anticipated completion of the Secretariat processing plant will increase total Permian processing capacity to 1,400,000,000 cubic feet per day [10] - The company has announced $3,500,000,000 in bolt-on transactions in 2025, enhancing its growth platform [21] Q&A Session Summary Question: Can you talk about the ramp on Northwind from here through 2026? - Management indicated that by the end of 2026, they expect to reach the run rate EBITDA that supports the seven times EBITDA multiple [28] Question: What are your thoughts on the distribution growth moving forward? - Management believes the 12.5% distribution increase is durable and supported by the growth in EBITDA and distributable cash flows [32] Question: Can you clarify your confidence in LPG exports given the bearish market sentiment? - Management expressed confidence in their ability to fill the fracs and see the economics in the export model despite market concerns [38] Question: How do you view your Permian growth strategy over the next few years? - Management stated that they have been working on their Permian growth strategy for years and see significant opportunities for further growth [42] Question: What is the contract duration on processing for Northwind? - Management mentioned that the processing contracts are typically in the range of two to three years, with an average contract life of thirteen years for MVCs [50] Question: How much incremental CapEx is needed to achieve full capacity for Northwind? - Management estimated about $500,000,000 will be necessary to complete the expansion to 440 million cubic feet per day [58] Question: What are the logical strategic next steps for gas exposure? - Management highlighted the importance of long-haul pipelines and the growing demand for gas, particularly in relation to LNG and data centers [62]