Mplx NYSE: MPLX reported second-quarter adjusted EBITDA of $1.8 billion, up 5% from a year earlier, as higher volumes and rates across its operations more than offset the late-2025 divestiture of its Rockies assets. The partnership returned more than $1.1 billion to unitholders during the quarter and said it remains on track for mid-single-digit adjusted EBITDA growth in 2026.
President and CEO Maryann Mannen said the company expects growth to accelerate during the second half as several natural gas, natural gas liquids and pipeline projects enter service or ramp up operations. “The sequencing of projects entering service gives us confidence in a meaningful increase in EBITDA in the second half of 2026 and next year,” Mannen said.
Processing Utilization and Volume Growth
MPLX placed its Secretariat I processing plant in the Delaware Basin into service in April and exited the second quarter with its Delaware Basin processing system operating at 86% utilization. The company said Harmon Creek III, another processing plant, began operations in August.
The additions increase MPLX’s total processing capacity to 8.1 billion cubic feet per day and its de-ethanization capacity to more than 800,000 barrels per day. Management said the facilities, along with related gathering and compression expansions, are designed to meet producer demand in liquids-rich regions and support longer-term throughput growth.
In the Northeast, Marcellus processing utilization reached 96% during the quarter, supporting record system volumes, while Utica processing utilization was 73%. In the Permian Basin, sour-gas treating volumes at the Titan facility exceeded 150 million cubic feet per day for the second consecutive quarter.
Chief Financial Officer Kris Hagedorn said gathering volumes rose 15% year over year, led by production growth in the Utica, Permian and Marcellus basins. Processing volumes increased 5%, while total fractionation volumes grew 8%, primarily due to higher Marcellus production.
- Crude oil and products logistics segment adjusted EBITDA increased $23 million from the prior-year quarter.
- Gathering and processing segment adjusted EBITDA increased $62 million year over year, or $99 million excluding the impact of the Rockies divestiture.
- Pipeline volumes increased 4% year over year, primarily due to Marathon Petroleum’s planned MidCon refining turnaround activity.
- Butane blending generated more than $20 million of additional benefit compared with the prior year, aided by commodity prices and prior investments in blending systems.
Capital Spending Raised as Gulf Coast Work Advances
MPLX increased its 2026 capital spending outlook by $500 million to $2.9 billion. Mannen said the increase largely reflects accelerated work on the company’s Gulf Coast fractionation project, shifting spending that had been expected in early 2027 into the second half of 2026.
The company said the first 150,000-barrel-per-day fractionator, a 400,000-barrel-per-day joint-venture LPG export terminal and an associated purity pipeline remain scheduled to begin service in 2028. A second 150,000-barrel-per-day fractionator is expected to follow in 2029.
Responding to an analyst question, Mannen said the Gulf Coast project remains on budget. She said MPLX expects the first fractionator and export dock to begin service at the same time and does not expect the fractionator to enter service ahead of the dock. Shawn Lyon, senior vice president of logistics and storage, said construction of 60,000-barrel spheres and 600,000-barrel refrigerated tanks reinforced the company’s confidence in an early-2028 startup.
Second-Half Projects Expected to Support Growth
Mannen said third-quarter results should be stronger than the second quarter, and the fourth quarter should be stronger than the third, as the company brings additional assets online and ramps recently completed projects.
The BANGL NGL pipeline is currently operating at 250,000 barrels per day and is expected to expand to 300,000 barrels per day by the end of 2026. MPLX also expects the Blackcomb Natural Gas Pipeline to achieve full commercial service in the fourth quarter.
In the Delaware Basin, MPLX is expanding its sour-gas treating system to more than 400 million cubic feet per day, with service expected by the end of the fourth quarter. The company is also constructing about 100 miles of pipeline and expanding compression capacity to support the Titan expansion, according to Executive Vice President and Chief Operating Officer Greg Floerke.
Floerke said MPLX is building a connection that will move sweet gas from Titan to the Secretariat I processing plant. Management said the integration is intended to support processing volumes and add NGL supply to the BANGL system.
Distribution and Capital Allocation Outlook
Mannen said MPLX has increased its quarterly distribution by 12.5% in each of the past two years and expects to grow the distribution at the same rate in 2026 and 2027. Hagedorn said the company continues to target a distribution coverage ratio of 1.3 times for both years and beyond.
Management said its existing organic project portfolio provides confidence in meeting that coverage target, without requiring acquisitions. The company said it will nevertheless continue to evaluate inorganic opportunities that fit its strategy, particularly investments connected to its natural gas, NGL and “wellhead-to-water” value chains.
When asked about its relationship with Marathon Petroleum, Mannen said MPLX sees no reason to change the current structure. She said the relationship creates value for both MPLX unitholders and Marathon Petroleum shareholders through distribution cash flows and strategic alignment.
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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