MPLX reports Q1 profits rise on higher volume, but expects minimal tariff impact
MPLX, a U.S. midstream firm, reported on Tuesday a quarterly profit increase aided by higher volumes and transport rates. It also said that it expected minimal impact of tariffs on its operation.
Maryann Mannen, CEO of MPLX, said that tariffs have a minimal impact at this point.
The U.S. Energy Sector is bracing itself for the possible fallout from President Donald Trump's sweeping trade tariffs, and an intense war of words with China. This could affect oil and gas production and demand.
The company, headquartered in Findlay, Ohio, said that it continued to see production in all of its operating basins.
Mannen stated that based on feedback from producers, we expect volume growth year-over-year in the Marcellus basin and Utica Basin.
MPLX has acquired an additional 5% stake in the joint-venture that owns the Matterhorn Express Pipeline. The acquisition will cost $151 million. This is to increase scale, and gain access to lucrative oil and natural gas producing regions and export facilities.
The company has "ample capability" to make additional strategic acquisitions. It has made over $1 billion in strategic acquisitions from the beginning of 2025.
MPLX will spend $1.7 billion in growth projects by 2025. 85% of the money will be spent on infrastructure for natural gas and NGLs.
The outlook for hydrocarbons is robust, despite the current volatility in the market. Grid electrification and the development of data centres, as well as onshoring and nearshoring are the main drivers for the growth in natural gas demand forecast. We are well-positioned to meet the demand for natgas powered electricity as it increases," Mannen said.
The total liquids pipeline output was 5.9 million barrels a day (bpd), a 12% increase, and the terminal throughput increased 6%, to 3.1 millions bpd.
The volume of natural gas collected on the company's lines was 6.5 billion cubic foot per day (bcf/d), an increase of 5% from the previous year.
The company's net profit for the third quarter was $1.13 billion, a significant increase from $1.00 billion just a year ago.
(source: Reuters)
