Mplx NYSE: MPLX executives said the partnership’s 2026 growth story remains weighted toward the second half of the year, as several natural gas and natural gas liquids projects move from construction into service.
On the company’s first-quarter earnings call, Chairman, President and CEO Maryann T. Mannen said MPLX delivered more than $1.7 billion of adjusted EBITDA and returned more than $1.1 billion to unitholders during the quarter. She characterized 2026 as “a year of execution,” with multiple projects expected to begin contributing to EBITDA.
“This gives us confidence that year-over-year growth in 2026 will exceed that of 2025,” Mannen said.
Growth expected to build in the back half of 2026
Responding to a question from Goldman Sachs analyst John Mackay about the company’s flattish first-quarter EBITDA and full-year growth expectations, Mannen said MPLX continues to expect its 2025-to-2026 growth rate to be stronger than its 2024-to-2025 growth rate. She noted that growth is “more back half weighted” in 2026.
Mannen cited the 200 million cubic feet per day Secretariat I processing plant, which entered service in April, as one of the contributors expected to strengthen results later in the year. She said MPLX typically sees a nine- to 12-month ramp for projects, though Secretariat I could ramp in a narrower window.
The company also expects Harmon Creek III, a 300 million cubic feet per day gas processing plant in the Marcellus, to enter service in the third quarter. Mannen said the project includes construction of a second 40,000 barrel per day fractionation-related facility and will increase total Northeast gas processing and fractionation capacity to 8.1 billion cubic feet per day and 800,000 barrels per day, respectively.
Longer term, Mannen pointed to additional fractionation capacity and an export dock under construction on the Gulf Coast, saying those projects remain on track and on budget, with in-service timing in 2028 and 2029.
Natural gas and NGL projects remain central to capital plan
Mannen said underlying fundamentals in natural gas and NGLs remain strong, and MPLX is allocating 90% of its $2.4 billion organic growth capital plan toward those opportunities. She said the projects are expected to support continued mid-single-digit growth.
In the Delaware Basin, MPLX treated more than 150 million cubic feet per day of committed producer sour gas at the recently acquired Titan facility during the first quarter. Mannen said the expansion of the Titan complex remains on schedule, with treating capacity expected to reach more than 400 million cubic feet per day in the fourth quarter.
Gregory S. Floerke, executive vice president and chief operating officer, said the company is focused on integrating the Titan system, improving reliability and bringing on more volume. He said MPLX remains encouraged by drilling activity in the relevant portion of Lea County in the Delaware Basin and the need to treat associated sour gas containing CO2 and H2S.
“The demand is definitely there,” Floerke said.
MPLX also said the Blackcomb natural gas pipeline continues to progress as planned and is expected to enter service later this year. In NGLs, the expansion of the Bengal pipeline to 300,000 barrels per day is expected online in the fourth quarter. Mannen said construction across Gulf Coast fractionation and export facilities continues to advance on time and on budget.
Segment results reflect mixed volume trends
C. Kristopher Hagedorn, executive vice president and chief financial officer, said adjusted EBITDA in MPLX’s crude oil and products logistics segment increased $14 million from the first quarter of 2025. He said the gain was primarily driven by higher rates across business units, partially offset by lower crude pipeline throughputs.
Pipeline volumes decreased 4% year over year, mainly due to Marathon’s refining turnaround and maintenance activities in the Midwest and Gulf Coast regions. Terminal volumes also fell 4%, which Hagedorn attributed to less favorable market dynamics and refining industry turnaround activity in the quarter.
In the gathering and processing segment, adjusted EBITDA decreased $42 million compared with the prior-year quarter. Hagedorn noted that the 2025 quarter included a one-time $37 million benefit tied to a customer agreement. The decline was also driven by a $45 million impact from the divestiture of non-core gathering and processing assets in 2025, lower NGL prices and higher operating expenses, partially offset by growth from equity affiliates and increased volumes including acquisitions.
Excluding the non-core Rockies divestiture, gathering volumes rose 10% year over year on production growth in the Utica and Permian, including acquisitions. Processing volumes increased 2%, driven mainly by production growth in the Marcellus and Permian. Marcellus processing utilization was 94% for the quarter, which Hagedorn said demonstrated the need for Harmon Creek III to come online “on a just-in-time basis” in the third quarter.
Total fractionation volumes decreased 3% year over year, primarily due to lower ethane recovery in the Marcellus as elevated regional gas prices affected first-quarter activity.
Weather, hedging and capital returns discussed
Hagedorn said Winter Storm Fern in January created an approximately $13 million headwind to first-quarter results by affecting crude oil and natural gas production volumes. He thanked field teams for maintaining safe and reliable operations during the storm.
He also said MPLX expects about a $20 million annual impact to gathering and processing adjusted EBITDA for every $0.05 change in weighted average NGL prices. During the first quarter, MPLX executed an economic hedge on 80% of that exposure and recognized a negative mark-to-market impact of $56 million. Hagedorn said the impact will be offset by physical gains over the course of 2026.
On capital returns, Mannen reiterated confidence in MPLX’s plan for 12.5% distribution growth in both 2026 and 2027. In response to a question about distribution coverage, she said the company has set financial metrics around that plan, including a commitment that coverage not fall below 1.3 times on an annual basis.
Asked why unit repurchases fell to $50 million in the first quarter after a recent cadence of about $100 million per quarter, Mannen said there was no change in the overall capital allocation strategy. Hagedorn said distributions remain the primary tool for returning capital to unitholders, while repurchases are a more flexible method. He added that MPLX continues to believe its units trade at a discount.
Mannen closed by saying MPLX continues to evaluate both organic and inorganic opportunities while maintaining focus on safe operations, high-return investments, value chain optimization and a strong financial foundation.
About Mplx NYSE: MPLX
MPLX LP NYSE: MPLX is a midstream master limited partnership that owns, operates and develops energy infrastructure primarily across the United States. The company provides a range of midstream services including the gathering, transportation, storage and distribution of crude oil, refined petroleum products, natural gas and natural gas liquids (NGLs). MPLX also operates processing and fractionation facilities and supplies logistics services that connect producers, refiners and end-use markets.
The partnership's asset base includes pipelines, storage terminals, rail and marine facilities, natural gas processing plants and NGL fractionators.
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