Burke Sansiviero

Burke Sansiviero inquired about MPLX's assumptions for in-basin demand growth and incremental takeaway capacity supporting 10% Marcellus and Utica gas growth through 2030, specifically regarding new greenfield pipelines. He also asked about the visibility of filling the Bangle pipeline's full 300,000 barrels per day capacity with NGLs from MPLX's own plants.

Answer

Greg Floerke (EVP and COO, MPLX) attributed Marcellus and Utica growth to incremental plant construction (e.g., Harmon Creek 3) and filling existing Utica capacity (over 70% utilization). He cited in-basin demand growth from power generation and increased takeaway capacity from MVP. Floerke confirmed confidence in filling Bangle's capacity with NGLs from MPLX's current and upcoming plants (Secretariat) and third-party production.

Burke Sansiviero inquired about MPLX's assumptions for in-basin demand growth and incremental takeaway capacity to support the projected 10% Marcellus and Utica gas growth through 2030, specifically asking about new greenfield pipelines out of Appalachia. He also asked about MPLX's visibility on filling the full 300,000 barrels per day capacity on BANGL with NGLs from its own plants.

Answer

Greg Floerke, EVP and COO, MPLX, highlighted growth in Marcellus (Harmon Creek III) and Utica (filling existing capacity, 70% utilization), supported by customer contracts and in-basin demand for power generation. He noted MVP's contribution to takeaway capacity and continued increases. Floerke also confirmed confidence in filling BANGL's capacity with NGLs from Secretariat and other third-party production.

Burke Sansiviero of Wolfe Research, LLC asked about the expected capital cost per ton for the next round of expansions at Sabine Pass and Corpus Christi, noting the cost of recent projects and peer comparisons.

Answer

EVP & CFO Zach Davis responded that it is too early to provide a specific cost for projects that would reach FID in late 2026 or 2027. He stressed that the primary focus is achieving a 6-7x CapEx-to-EBITDA multiple, and expressed confidence that Cheniere's brownfield advantages will result in highly competitive costs compared to greenfield projects.

Burke Sansiviero from Wolfe Research, LLC inquired about the perceived delay in the third-party root cause analysis for the Milepost 171 incident and asked for any early takeaways on how the process might proceed.

Answer

SVP & COO Richard Prior clarified that any delay was minimal and primarily occurred at the start of the process. He confirmed the full analysis is expected in September and that, in parallel, the company is already executing remedial actions like in-line inspections and integrity digs. A more detailed remedial plan will be developed with PHMSA once the final root cause analysis is complete.

Burke Sansiviero of Wolfe Research asked for the next steps and approval timeline for the NESE project to meet a Q4 2027 in-service date. He also requested an update on the Transco rate case and the potential for an emissions reduction tracker.

Answer

President & CEO Chad Zamarin outlined the NESE path: filing with FERC, awaiting certificate reinstatement, and securing the New York water permit, which would allow for a 2027 in-service. EVP & COO Larry Larsen reported that Transco rate case settlement discussions are getting 'really close' but he is not optimistic that a modernization tracker will be included in the final agreement at this time.

Burke Sansiviero of Wolfe Research asked for the next steps and timeline for the NESE project and for an update on the Transco rate case settlement discussions, including the potential for an emissions reduction tracker.

Answer

President & CEO Chad Zamarin outlined that the next steps for NESE are filing with FERC and securing the New York water permit, targeting a 2027 in-service date. EVP & COO Larry Larsen reported that Transco rate case settlement discussions are getting 'really close' but he is not optimistic that a modernization tracker for emissions spending will be included in the final settlement this time.

Burke Sansiviero of Wolfe Research, LLC asked for an update on discussions with S&P Global Ratings regarding the company's long-standing negative outlook, especially after the Southeast Gateway pipeline came into service.

Answer

EVP & CFO Sean O’Donnell confirmed they are in constant contact with all rating agencies. He noted that S&P had previously highlighted the importance of bringing Southeast Gateway online and maintaining capital discipline, both of which TC Energy has achieved. While he could not comment on the specific timing, he indicated agency review cycles typically occur in the fall.

Burke Sansiviero asked for Kinetik's perspective on potential New Mexico setback rules and their impact on Durango assets, as well as the outlook for future dividend growth given higher 2025 CapEx.

Answer

President and CEO Jamie Welch dismissed concerns about New Mexico regulations, clarifying it is an 'economic study,' not proposed legislation, and is unlikely to pass due to the oil and gas industry's economic importance to the state. Regarding the dividend, Welch reaffirmed a commitment to 'annual ratable dividend growth,' balancing shareholder returns with a larger capital budget next year.