MPLX(US:MPLX)2023-01-31 18:50Financial Data and Key Metrics Changes - Full year adjusted EBITDA for 2022 was $5.8 billion, and distributable cash flow (DCF) was $5 billion, reflecting a 4% year-over-year growth in both metrics [3][7]. - Total adjusted EBITDA for the fourth quarter was approximately $1.5 billion, roughly flat compared to the same period in the prior year, while DCF increased by 5% to $1.3 billion [24]. Business Line Data and Key Metrics Changes - In the Gathering and Processing (G&P) segment, adjusted EBITDA decreased by $36 million year-over-year due to lower natural gas liquids prices, despite a 14% increase in gathered volumes [11]. - The Logistics and Storage (L&S) segment saw adjusted EBITDA increase by $45 million compared to the fourth quarter of 2021, driven by higher pipeline tariffs and contributions from pipeline equity affiliates [23]. Market Data and Key Metrics Changes - Pipeline volumes in the L&S segment were flat year-over-year, primarily due to impacts from Marathon's refinery turnarounds, while terminal volumes increased by 4% [23]. - Processing volumes in the G&P segment were up 1% year-over-year, primarily from increased activity in the Southwest [43]. Company Strategy and Development Direction - The company announced a capital expenditure outlook for 2023 of $950 million, with a focus on growth capital in the Marcellus, Permian, and Bakken basins [8]. - The company aims to maintain strict capital discipline while investing in growth opportunities and returning excess capital to unitholders [9][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about opportunities in 2023, focusing on executing strategic priorities and maintaining a strong distribution coverage ratio of 1.6x [22]. - The company noted that while there may be short-term price volatility, the overall outlook for volume growth remains positive due to increased drilling activity in 2022 [66][81]. Other Important Information - The company returned over $3.5 billion of capital to unitholders in 2022 through distributions and unit repurchases [20]. - The company plans to redeem $600 million of outstanding Series B preferred units and refinance them into long-term debt [13]. Q&A Session Summary Question: Discussion on capital allocation and future distributions - Management indicated that they are generating about $6 billion of EBITDA and have flexibility in capital allocation, with a focus on increasing distributions over time [16][22]. Question: Breakdown of capital expenditure guidance - Most of the capital program is targeted at smaller expansion and debottlenecking projects, with some funds allocated to new processing plants [57][59]. Question: Impact of weather on operations - The company experienced lost profit opportunities due to freezing conditions, estimating a loss of around $10 million in both Q4 and Q1 [76]. Question: Outlook for Marcellus and Utica activity - Management remains optimistic about volume growth in 2023, despite potential slowdowns in fracking activity [81]. Question: Low carbon expansion opportunities - Management acknowledged that while there are opportunities in low carbon investments, current returns do not meet their investment criteria, but they expect technology to evolve [70][72].