Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 4, 2026 · Beat 3 of last 6 quarters
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MPLX's continued expansion of natural gas processing, fractionation, and export capacity directly supports the growing demand for U.S. natural gas and NGLs, which is increasingly driven by LNG exports and data center power needs. The company's investments in Permian takeaway and Gulf Coast export infrastructure position it to benefit from the ongoing buildout of energy infrastructure to meet AI-driven electricity demand.
MPLX delivered $1.8 billion of adjusted EBITDA in Q2 2026, a 5% increase year-over-year, despite the Rockies divestiture. The Crude Oil and Products Logistics segment grew EBITDA by $23 million, driven by higher rates and butane blending, while the Natural Gas and NGL Services segment grew by $62 million, or $99 million excluding the Rockies divestiture. Gathering volumes rose 15% and processing volumes rose 5% year-over-year, with Marcellus utilization at 96%. Secretariat I processing plant came online in April, and Harmon Creek III began operations in August, increasing total processing capacity to 8.1 Bcf/d. The company returned over $1.1 billion to unitholders during the quarter.
Management reaffirmed mid-single-digit adjusted EBITDA growth for 2026, with growth back-half weighted and sequential improvement expected through Q3 and Q4. They raised 2026 capital spending by $500 million to $2.9 billion, primarily to accelerate the Gulf Coast fractionation project, pulling forward spend from early 2027. Key projects entering service in Q4 include Blackcomb pipeline, BANGL expansion to 300,000 bpd, and Titan sour gas treating expansion to over 400 MMcf/d. Management expects these to support strong 2027 growth and reiterated plans to grow the distribution by 12.5% in both 2026 and 2027, maintaining 1.3x coverage without needing M&A. They also noted continued evaluation of inorganic opportunities, particularly in natural gas and NGL value chains.
“Our second quarter results reflect the consistent execution of our strategic priorities. MPLX delivered $1.8 billion of adjusted EBITDA in the second quarter, a 5% increase versus the same period last year, more than overcoming the divestiture of the Rockies assets in late 2025.”
on Q2 results
“With multiple investments transitioning from construction to operation this year, we are on track to deliver mid-single-digit adjusted EBITDA growth in 2026. While the year-over-year growth from '25 to '26 is more back half weighted, it also positions MPLX for strong adjusted EBITDA growth in 2027.”
on Growth outlook
“We anticipate growing our distribution at this rate again in 2026 and in 2027. We expect to continue growing the distribution supported by durable cash flows, a strong balance sheet and visible growth.”
on Distribution growth
I wanted to talk about the growth cadence for the year. I appreciate the color on the project ramp for second half and the comments around mid-single-digit EBITDA growth for the year. I think your original kind of comments for the year had been a little higher relative to the '25 growth rate. So I was just wondering if you can kind of talk through some of the puts and takes for the year overall and how to maybe bridge us to our exit rate into fourth quarter of this year.
Maryann walked through the project ramp: BANGL at 250, going to 300 by year-end; Harmon Creek III ramping through Q3/Q4; Bay Runner; Blackcomb in Q4; and Titan ramping to over 400 MMcf/d. She reiterated that Q3 should be stronger than Q2 and Q4 stronger than Q3, and that '26 growth will exceed '25.
I'm trying to get a little more details about the ramp and the completion at Titan and how the overall Permian gas situation is moving ahead with these new pipes opening up. If the Waha remains in the positive territory, you could see more NGLs come out of Permian, more gas come out of Permian. And if you could, that way, highlight your leverage to the entire Permian gas situation, especially the Titan project.
Management highlighted continued strong performance at Titan, with volumes exceeding 150 MMcf/d for a second consecutive quarter. They detailed the Titan 2 expansion, including 100 miles of pipeline and compression, and a new pipeline to Secretariat to integrate systems. Dave Heppner noted Permian gas growth to 35 Bcf/d by 2030 and said incremental takeaway capacity will be needed, with MPLX evaluating opportunities.
Are you still targeting at least 1.3x coverage with the 2026 and '27 distribution growth plans? And can this be met solely with organic growth? Or is M&A required to get there?
Chris Hagedorn confirmed the 1.3x coverage target for '26 and '27 and beyond, stating that the current organic plan gives confidence in maintaining that coverage. Maryann added that 2027 growth is 'in hand' with existing projects and that inorganic M&A is not needed to meet the 1.3x coverage goal.