Welcome to the MPLX third quarter 2021 earnings call. My name is Ivy, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Press star one on your touchtone phone to enter the queue. Please note that this conference is being recorded. I will now turn the conference over to Kristina Kazarian. Kristina, you may begin. Good morning, and welcome to the MPLX third quarter 2021 earnings conference call. The slides that accompany this call can be found on our website at mplx.com under the Investor tab. Joining me today on the call are Mike Hennigan, Chairman and CEO, John Quaid, CFO, and other members of the executive team. We invite you to read the safe harbor statements and non-GAAP disclaimer on slide two. It's a reminder that we will be making forward-looking statements during the call and during the question-and-answer session that follows. Actual results may differ materially from what we expect today. Factors that could cause actual results to differ are included there, as well as in our filings with the SEC. With that, I'll turn the call over to Mike. Thanks, Kristina. Good morning, everyone, and thank you for joining our call. Earlier today, we reported adjusted EBITDA for the quarter of $1.4 billion and total return of capital of $900 million through $745 million of distributions and $155 million of unit repurchases. Looking at our year-to-date results, a number of factors have aligned to allow us to generate very strong cash flow. We have benefited from lower capital spending, strong NGL prices, and proceeds from asset optimization efforts. These tailwinds, along with solid business performance and cost reduction efforts, have combined to result in just over $1 billion of cash flow available for deployment above our current capital spending and distribution requirements. We've returned $465 million of this capital to unitholders through year-to-date unit repurchases. We believe some investors prefer unit repurchases while others prefer cash return. After several quarters of employing unit repurchases for incremental return of capital, today we announced an increased third quarter distribution of $1.34 billion. The increased distribution includes a special distribution amount of about $600 million and a 2.5% increase in the partnership's base distribution amount, reflecting our confidence in the business. Special distribution amount is one way to allow all unit holders to immediately recognize the benefit of our strong cash flow this year. We also believe that distributions can be a more tax-efficient way to return capital to unit holders versus unit repurchases, sorry. For 2021, we have now announced a total of $2.8 billion of distribution to unit holders on top of $465 million of unit repurchases. Moving to business updates, we're making progress in our portfolio optimization efforts with our announcement this morning that we are pursuing strategic alternatives for our Alaskan logistics and storage operations, which could include a sale. We also advanced our key growth projects in the Permian related to crude, natural gas, and NGL transportation out of the basin. The Wink to Webster Pipeline, in which MPLX has a 15% ownership interest, continues to place segments into service, and we expect this activity to continue through the remainder of the year. Consistent with our focus on projects with lower return risk, the pipeline system has 100% of its contractible capacity committed with long-term minimum volume commitments. Last quarter, we announced that the Whistler Pipeline, in which we have a 38% ownership interest, was placed in service and it will continue to ramp up through 2022. This pipeline will provide approximately two billion cubic feet per day of incremental natural gas transport capacity to the Gulf Coast markets from the Permian Basin. The Whistler Pipeline is also backed by long-term minimum volume commitments, and we expect volumes to increase throughout 2022. Finally, the NGL Takeaway Solution, which will provide 125,000 barrels per day of long-haul NGL service from the Permian to Sweeny, Texas, was placed into service in October. We continue to pursue opportunities to grow our base business, including expansion of our integrated natural gas and NGL value chains in certain strategic regions and opportunities in support of MPC's expansion in liquid renewable fuels. We also continue to evaluate a number of other low-carbon energy growth opportunities and are especially focused on those where we can leverage our competitive advantage through technologies that are complementary with our expertise and our asset footprint. For example, MPLX, along with MPC, is among the companies supporting large-scale deployment of carbon capture and storage to help decarbonize industrial facilities in the Houston area. These collective efforts could safely capture and store approximately 50 million metric tons of CO2 per year by 2030 and about 100 million metric tons by 2040. Working with our industrial companies and regulators in this energy-rich region is a critical component of assuring long-term, reliable fuel supplies for a sustainable, energy-diverse future. Overall, we continue to focus on identifying and efficiently executing high-return projects to drive further growth for MPLX, and we expect our growth capital spending to be higher in 2022 than 2021. Shifting to slide four. Last quarter, we discussed the publication of our Sustainability and Climate Reports that highlight the environmental, social, and governance aspects of our business. Our focus on leading in sustainable energy positions us to deliver strong results in this space from lowering the carbon intensity of our operations and products to improving energy efficiency and conserving natural resources while using innovative technologies to do it. We believe the targets we are setting and our transparent disclosures on how we plan to achieve these targets position us well for the future. On our website, we have recently published our 2020 Sustainability Highlights. MPLX is focused on our methane reduction target through tangible pathways such as implementing robust LDAR monitoring programs, replacing gas-driven pneumatic control valves, replacing compressor rod packing, minimizing emissions from pipeline launchers and receivers, and optimizing maintenance venting. In short, we continue to challenge ourselves to lead in sustainable energy by meeting the needs of today while investing in an energy diverse future that creates shared value for all of our stakeholders. Now let me turn the call over to John to discuss our operational and financial results for the quarter. Thanks, Mike, and good morning everyone. Slide five outlines the third quarter operational and financial performance highlights for our logistics and storage segment. L&S segment adjusted EBITDA increased by $11 million comparing third quarter 2021 to 2020. Pipeline volumes were up 17% and terminal volumes were up 13% year-over-year as the industry rebounded from the pandemic. The benefits of these higher throughputs were somewhat offset by the effects of lower marine transportation rates. Moving on to our gathering and processing segment. Slide six provides its third quarter operational and financial performance highlights. G&P segment adjusted EBITDA increased by $43 million comparing third quarter 2021 to 2020, largely driven by higher NGL prices. For the third quarter, NGL prices averaged $0.96 per gallon, more than double the $0.45 per gallon average for the third quarter of last year. As a reminder, every five-cent change in the NGL basket is worth roughly $20 million to our annual results. Overall, gathered volumes are roughly consistent year-over-year, while processing and fractionated volumes were each down 2%. In the Marcellus, gathering volumes were up 5%, processing volumes decreased 1%, and fractionated volumes increased 2% relative to the third quarter of last year. Across the basins where we operate, we are seeing different levels of activity in response to current market conditions. In the Northeast, despite higher natural gas and NGL prices, producers continue to focus on strengthening their balance sheets and prioritizing free cash flow over volume growth. Additionally, takeaway capacity constraints have continued to limit production. However, we are seeing increased activity and volume growth in the Permian and in the Bakken. Moving to our third quarter financial highlights on slide seven. Total adjusted EBITDA was $1.4 billion, up 4% from the prior year for the reasons Mike discussed earlier or I discussed earlier. Distributable cash flow was $1.2 billion, an increase of almost 12% from the prior year. We returned $900 million to unit holders with $745 million of distributions paid and $155 million in repurchases of common units held by the public. As of September 30, we had about $500 million remaining available under the current $1 billion repurchase authorization. As Mike discussed, today we declared a quarterly cash distribution of $1.28 per common unit for the third quarter, including a base distribution amount of 70.5 cents per common unit and a special distribution amount of 57.5 cents per common unit. Based on our confidence in the business, we increased the base distribution amount by 2.5% over the second quarter 2021 distribution. The distribution will be paid on November 19 to common unit holders of record as of November 12. The adjusted distribution coverage ratio for the third quarter, excluding the effects of the special distribution amount, was 1.61 times. As we stated on our last call, our commitment to lowering our cost structure has resulted in a $300 million structural reduction in our annual operating costs when compared to 2019. Looking forward, we do expect higher project-related expenses in the fourth quarter. Last quarter, we estimated an increase in project-related expenses in the second half of the year of approximately $75 million as compared to our quarterly run rate in the first half of the year. We experienced some of these higher expenses in our L&S segment results in the third quarter, and based on the expected timing for completion of certain project and maintenance work, we currently expect increased costs of up to $40 million to affect fourth quarter results as compared to the third quarter. Lastly, as we approach the end of the year, we are lowering our growth capital spending guidance for 2021 by an additional $150 million, down to $550 million. With expected maintenance capital of about $100 million for the year, our total capital spending and investments for 2021 is expected to be about $650 million. With our reduced 2021 capital spending forecast, we do anticipate a higher run rate for capital spending in the fourth quarter as compared to the first three quarters of the year. Looking forward, we continue to pursue growth opportunities in our core business as well as opportunities in Energy Evolution, which is likely to require greater capital spending and investments in 2022 than 2021. We will not be commenting on next year's planned capital spending on today's call. We'll share guidance for 2022 on next quarter's call. Slide 8 provides a summary of key financial and balance sheet information. We ended the quarter with total debt of just under $20 billion and a leverage ratio of 3.7x. During the quarter, we redeemed the $1 billion floating rate senior notes due September 2022 with cash and available liquidity, including our intercompany loan with MPC. We currently have $1.4 billion outstanding on our intercompany loan agreement. Our intent is to refinance these borrowings sometime in the future with timing dependent on market and other conditions. In closing, given current business conditions and our commitment to strict capital discipline and a low-cost structure, we expect to continue to generate strong cash flow, enhancing our financial flexibility to invest and grow the business while also providing the opportunity for incremental return of capital to unitholders. Now let me turn the call back over to Kristina. Thanks, John. As we open the call for questions, we ask that you limit yourself to one question plus a follow-up. We may re-prompt for additional questions as time permits. With that, we'll now open the call to questions. Operator? Thank you. We would now like to begin the question and answer session. If you have a question, please press star then one on your touch-tone phone. If you wish to be removed from the queue, please press star then two. If you're using a speakerphone, you may need to pick up the handset before pressing the numbers. Once again, if you have a question, please press star then one on your touch-tone phone. Our first question is gonna come from Brian Reynolds with UBS. Please go ahead. Good morning. My first question is around the capital allocation thought process. Should we view the special distribution as a faster method of return of capital versus buybacks given ADV limitations? I'm kind of curious where leverage is headed, given where leverage is headed in 2022, can we see an all-of-the-above return of capital situation similar to what we have seen in 2021? Thanks. Thanks, Brian. This is Mike. Let me give you the long-winded answer, and hopefully this will give everybody a little bit more color as to what, you know, why we came out with the return of capital that we did this quarter. First of all, you know, at a high level, you know, we still believe, you know, that our balance sheet and our commitment to an investment-grade rating, you know, is paramount. The way we think of capital allocation is, you know, we're gonna take care of our assets, so we're gonna have sustaining capital as a high priority. We've had a base distribution amount for quite some time here, and I just wanna point out that base distribution, you know, is a pretty high payout ratio and we've never cut despite, you know, some of the troubles that others have run into. Once we get through that, you know, then we have capital available for deployment. It can be in growth capital, and John talked a little bit about that, buybacks, you know, an additional distribution amount, which we'd call a special distribution. We could increase the base, which we've also done this quarter. We'll talk about that in a second and debt reduction. You know, I'll start first back with debt. We're very comfortable. We've said for many, you know, many, many quarters that we're comfortable that we have stable cash flows and that a leverage ratio of around four times works for us. You know, currently we're a little below that. We're running around 3.7 times. So we think the balance sheet is in terrific shape, and we generated a lot of cash. The way that I'd like you guys to have the takeaway is that capital that's available for deployment is a dynamic decision that we're gonna make quarter to quarter, and it's depending on market conditions, our business needs, and what we see, you know, in the current environment. Obviously, you know, we've been through a lot over the last year and a half, you know, with the pandemic and coming out of it. Hopefully, the market has seen, you know, something that we've been trying to say for a while, that we have stable cash flows in this business. We're generating cash beyond our distribution and sustaining capital needs and now beyond our growth capital needs. We just have an amount that was available for deployment. Our view that all unitholders, to your point, Brian, all unitholders would immediately benefit from, you know, this special distribution amount as well as us continuing to buy back units as well. We've continued that pace now for several quarters in a row, so we're doing a little bit of both. We've also bumped up our base distribution by 2.5% as well. All of those factors come into play, but I guess the biggest takeaway that I'd like you to think about is we wanna be in a position of financial flexibility which we've achieved. Going forward, it'll be a dynamic decision based on market conditions, business needs, and what we're feeling at the time is the best deployment, you know, for all of our unitholders. Great. Thanks for all that color. Really helpful. For my follow-up, I was wondering if you could just give some additional color around, you know, potential impacts from PPI across the organization from, like, a revenue generation perspective. You know, how can the business see an uplift, and does it spread across both segments, both L&S and G&P? Thanks. Yeah, Brian, I'm gonna let Tim give you some background on that whole PPI situation. This is Tim Aydt. Thanks for the question. Take my mask off here. While it's true that there is an increase in the index, that would increase revenue on the FERC-regulated assets. I think it's really important to understand that this is not a direct flow through to the bottom line. You know, the whole purpose of the index is to offset higher costs that we incur during these inflationary periods. For FERC pipelines, we've historically adjusted rates that are in line with what is allowed by FERC as a means to cover these higher costs. Now, most of our non-FERC regulated pipelines and storage assets, they also have built-in escalators to help offset some of these inflationary costs. Now these are not always based on CPI and PPI. Sometimes they're flat rate adjustments. That's a little bit of the background on those. I would say for reference, only about a third of our Logistics and Storage EBITDA is generated from FERC regulated assets. It's really a mix of a lot of different things, PPI, flat rate adjustments, et cetera. Great. Appreciate all the color. Have a great day. Thank you. Thank you. Our next question comes from John Mackay from Goldman Sachs. Please go ahead. Hey, everyone. Good morning. I know you're gonna get a couple of these follow-ups, but I do need to ask one on the special. Just curious, if you could think about kind of the size of the special this quarter, and just to clarify, you know, your comments earlier that this is something that we, you know, it might move around, but we could still see kind of ratably in the future. This isn't necessarily a one-off. Thanks. Yeah, John, thanks for that question. You know, additional follow-up, but what I was trying to say to the previous question is it gonna be a dynamic situation. I don't think you should take this as a one-off. You know, that's an important point that you're bringing up. You know, we plan to continue to have that financial flexibility, and we'll ebb and flow a little bit on buybacks, you know, distribution amounts, whether we call them special or whatever term you wanna use. You know, we're also gonna be very conscious of what's happening in the business. You know, as we mentioned in our prepared remarks, you know, the capital this year is a little lighter than we would normally think for this business. We said, you know, we'll give a little bit more guidance next quarter on where our capital expectation is. But at least for this quarter, we're trying to tell you it's gonna be a little higher than where we are this quarter for a lot of reasons. Some of it's timing, some of it's capital discipline that we've employed. I guess the important point that I'm trying to emphasize, and hopefully everybody gets this, is that, you know, we're gonna continue in a commodity business that has a lot of ups and downs and variabilities. We're gonna continue, you know, each and every quarter to evaluate the situation, examine where the business needs are, look at the market conditions, and try and make a determination as to what is the best return of capital. I should add that you've heard me say this in the past. I'm a huge believer that there's two parts to this business. There's a return on capital, and we very much believe in growing our earnings, and this is a growth vehicle for us. That's an area of emphasis that I don't wanna get lost in this whole return of capital. Both return on and return of capital are very important to us, and we're trying to maximize, you know, the impacts of both of those. You know, when it comes to return of, you know, we're gonna look at our base. We're gonna look at whether that should, you know, get an incremental adjustment, which we did this quarter. We'll continue to evaluate that. We'll continue to evaluate how much cash flows that we're generating. You know, as John mentioned in his prepared remarks, you know, it's been a strong year from a lot of perspectives. From that standpoint, we've generated over $1 billion of cash flow through three quarters. Obviously, without you know guiding to the fourth, we expect to have a little more on top of that as we progress. It's been a very strong cash flow year. We've returned $455 million in unit repurchases. We're gonna continue to you know engage in that program as well, but we thought it was appropriate to have an immediate return to the unitholders as well. Hey, good morning, John. That's really helpful, Mike. I just wanted to emphasize some of Mike's comments there as well, right? There were some, you know, a number of items that kind of aligned for us this year that, you know, again, are things we're gonna have to take a look and understand what those look like in the future. Certainly a broader approach to kind of incremental return of capital when it's available. Again, that'll be dependent on, you know, what the market conditions are at the time, what kind of cash flow we're generating, et cetera. Certainly something we'll continue to look at. You know, there may be some quarters where, you know, we are not, you know, talking about having the same conversation, other quarters where we are. Okay, that's great. Thank you. My follow-up is, you know, kind of makes sense with 2022 CapEx essentially being higher than 2021, just given how far 2021 has come down. Would it be a fair assumption to say that, you know, given you're not taking this cash to kind of start pre-funding 2022 CapEx, that while it might be higher, it's not gonna be, you know, a dramatically larger number? I know you're not giving specific guidance here, but just trying to think relative basis and how to think about funding for it. Yeah. No, John, you might have answered it with your last comment, right? We'll have guidance for next year on next quarter's call. Certainly, you know, trying to make sure you guys understand the number is gonna be higher next year. If you kind of take the guidance we gave for this year. You know, $550 million on growth and $100 for maintenance, right? That applies about $200, $210 of growth in the fourth quarter and about $50 of maintenance. You know, again, some of that's driven by the timing of projects as we roll into next year. You know, certainly higher, but not. You know, we'll share those numbers on next quarter's call because part of what happened to us this year, in addition to really taking a much stricter look around capital discipline, you know, we would have had some projects that were just deferred as we were coming out of COVID that, you know, kind of pushed things later in the year and into next year. Again, looking for higher capital next year, and we'll talk about that on next quarter's call. Great. Thank you. Thank you. Our next question comes from Michael Blum from Wells Fargo. Please go ahead. Thanks. Good morning, everyone. I wanted to talk a little about the G&P business. Wondering if you're hearing anything in the Northeast from your producers. I know you mentioned capital being constrained from a pipeline takeaway perspective. Do you think the dynamic will change at all when Mountain Valley comes into service, and there's a little more takeaway in the region? Would that change the drilling activity, or do you think the producers are just gonna continue to return cash to shareholders? Michael, this is Greg Floerke. I think that the producers, you know, have been in free cash flow positive mode and maintenance drilling mode. As you know, there has been constraints as we operate at high levels of utilization, both in processing and in terms of takeaway pipe. Certainly as more residue gas pipeline takeaway capacity becomes available, there is, you know, that opportunity to increase drilling and volume. The processing capacity is fairly tight, but there is still potential there for growth. The other thing that you know, I would mention is that the Shell cracker in Monaca, Pennsylvania, scheduled to come online mid-next year, will drive increased recovery of ethane from gas. That also will free up capacity in the residue lines and will increase utilization of, you know, of our deethanizer plant as well. Those things clearly could drive production. Gas prices and NGL prices are obviously supportive of more rich gas production, but, you know, that's still open to what the producers decide to do. Thanks. Appreciate that. Second question, staying on G&P. I know you've had sort of an ongoing desire to divest some of your maybe non-core G&P assets. I'm wondering, in light of commodities moving much higher the last few months, if you're seeing any change in interest there. Thanks. Yeah, Michael, we still have an overall strategic plan to, you know, consider where we think core assets are versus not. You know, I've said many calls that the bid-ask has been too wide for us to consider. You know, I would tell you that, you know, that bid-ask is narrowing. At the same time, you know, we are very comfortable still with the assets that we have in place. We don't have anything, you know, I use the term on the front burner. If we maintain this type of activity and the commodity prices stay where they are and there's a little bit of a renewed interest, you know, then maybe there is a transaction that could occur at some point. Nothing right now on the horizon. You know, we're interested, but we're also very happy with where our assets are. You know, my philosophy has been, you know, all of our assets need to generate free cash. You know, we're in that mode. We continue to be in that mode throughout all the basins that we're in. I think overall, we're still happy with the situation we have, but we'd like to optimize the portfolio for the long term if the situation arises, but it's not something that we have to do. Great. Thank you very much, Mike. You're welcome, Michael. Thank you. Our next question comes from Theresa Chen. Please go ahead. Morning. I wanted to ask about the cost cadence, actually, understanding that fourth quarter, we're gonna see another quarter-over-quarter bump in expenses. Just, you know, going to the quarterly run rate in 2022, should we expect some of that to normalize, or how should we think about that? Good morning, Theresa, it's John. Yeah, that's definitely similar to some of our maintenance capital. It can be a little bit lumpy, right? In how that kind of happens over the year, which is why we were trying to flag that earlier in the year as well. Definitely a higher level in Q4, but that wouldn't imply that we'd be on that run rate going forward. Understood. Related to the announcement of seeking strategic alternatives for Kenai, both in the refinery and the logistics assets at the partnership, can you remind us how much EBITDA contribution the logistics assets actually generate for MPLX currently? Actually, Theresa, that's not a number we've disclosed. Okay, thank you. Thank you. Our next question comes from Keith Stanley from Wolfe Research. Please go ahead. Hi, good morning. First, just on the Permian strategy, are there next steps that you're looking at now that Whistler, Wink to Webster, and the NGL project are complete. I guess, are there other capabilities that are important for the company to add at this point? Or do you feel like you're in a pretty good place in the Permian? This is Tim Aydt. I'll take that one. We continue to be really bullish on the natural gas and the NGL growth. I do believe that we're well-positioned in, you know, in the Permian in particular, to take advantage of the investments as we've made thus far. When you look at our Agua Blanca system, when you look at the Waha gas storage, when you look at Whistler and of course, the NGL solution, I think these are all really solid platforms for growth and really to expand off of. I think you can kind of look further down the value chain. You know, it could be as far as exports and other stuff that may provide some additional opportunities. Again, pretty bullish on natural gas and NGLs in particular. There's also Energy Evolution ideas as well that could provide growth opportunities. Okay, thanks. Different, maybe a little bit of a silly question, but the buyback pace has been just almost exceptionally programmatic with the $155 million a quarter for three quarters in a row now. Is it fair to think that that's sort of your target, I would think, at this point, with the stock at these levels and if the business is steady? Is there any technical reason you've been kind of shooting for around that level for three quarters? Keith, it's Mike. No, it's you know, more coincidence. To be honest with you know, we were on that pace, and we were gonna change the number just so it wouldn't be the exact same number. Pretty much we had said to ourselves, "We're gonna deploy about this much in that arena." You know, we obviously did not do distribution for a couple quarters, and now we decided to pull that trigger. You know, overall, like I said, it's dynamic. We're thinking about it, you know, quarter to quarter. We're obviously also looking a little bit into the future. The fact that it turned out to be the exact same number is more coincidence than I'll say, designed to be exactly that. Got it. Thank you. You're welcome. Thank you. again, that is star one if you have a question on the phone. I am actually showing no more questions in queue. Great. Well, thank you for joining us, and thank you for your interest in MPLX. Should you have additional questions or would you like clarification on any of the topics discussed this morning, members of our investor relations team will be available to take your calls. Thank you, everybody. Thank you all for participating in today's conference. You may disconnect your line and enjoy the rest of your day.