Dave Heppner: So, let me dig a little deeper. So, as Mike stated, the Permian is, in addition to our other basins, one of our key focus basins. And this JV partnership, which is with MPLX along with Whitewater and I2 as part of the existing Whistler JV, entered in that definitive agreement with Enbridge. So strategically combine that JV with the Rio Bravo pipeline project into this newly formed JV. So that’s step number 1. And the justification for that, while we monetize a small portion of our equity ownership in Whistler at a low-double-digit multiple. The real key, it enabled us to build out continue to build out our wellhead to water growth strategy and enhancing our value chain from the Permian to the U.S. Gulf Coast. So think of it this way that the Rio Bravo Pipeline project provides Whistler with that value chain connectivity to the Rio Grande LNG export facility in Brownsville, Texas, which is not a lot different to the strategy around the ADCC pipeline project that is under construction right now at the Cheniere’s LNG facility in Corpus Christi.
So it’s that last mile connectivity to the LNG pole. So as we look forward, both from a Permian supply that Mike touched on earlier and the U.S. Gulf Coast LNG demand, which we all anticipate to grow, this strategic partnership provides a strong platform and positions Whistler under the new JV to participate in this growth and the development of incremental pipeline projects, which again, of course, will further enhance MPL’s wellhead to water strategy. And let me be clear with that, that any potential projects that we look at going forward must provide 2 things, acceptable financial returns and the right commercial terms through our lens of strict capital discipline as we look at all projects, whether it be bolt on organic or these growth projects.
So hopefully, it gives you a little more color.
Mike Hennigan: Since Dave gave you a little bit of detail on that project, why don’t you talk a little bit about NGLs as well? And so we’re talking about natural gas and what we’re doing in the Permian.
Dave Heppner: So very similar to that gas, we’ve been pretty public about our plans to expand our value chains in the NGL platform. And again, it’s all about strengthening our competitive position through Ford integration. So think of it from wellhead to the consumers. So back on the wellhead, Greg and his team with all our gas processing plants, we got our BANGL pipeline expansion project going. And so whether we extend these value chains independently or with partners extend to the water and have an export optionality as part of that strategy. At this time, we don’t have any major updates to provide on the Texas City NGL frac and storage projects, but that is a project we continue to evaluate. So if you recall, on that project back in December of last year, we submitted our air permit application to the TCEQ for the NGL frac and storage facility in Texas City, Texas.
I want to be clear that filing these permits is one of the many steps we take in evaluation of the potential projects, and we’ll continue to evaluate any commercial framework around those. Again, very similar to our nat gas strategy, except the returns, the right commercial terms through the lines of strict capital discipline, it will help us determine if we go that alone or do the business partners going forward. So hopefully, that gives you a little more color on our NGL strategy, which I would say very similar to our nat gas strategy is through for MPLX is wellhead to water, participate in whole value chain, both from equity and from commercial optionality.
Operator: Our next question comes from Jeremy Tonet with JPMorgan.
Jeremy Tonet: I want to come back to the banks of the river, if I could, and just how MPLX seems to have achieved mid-single-digit EBITDA growth historically and seems like the prospects are there for continued growth. And if I think about the Summit acquisition, kind of these bolt-on acquisitions, I think of it as kind of one of the components of staying in that range and it would be larger acquisitions that would drive you above the range. And is that a fair way of thinking about things here and how do you think about, I guess, other the potential acquisition environment out there?
Mike Hennigan: First off, let me correct you. The M&A activity that we do, even if it’s on the smaller side, is not included or would be additive to our goal of driving for mid-single-digit growth. So we think of the mid-single-digit growth as our organic program in general and then when these other opportunities come up through inorganic opportunities like we just talked about, that would be additive. So our base is always things that we can control, trying to compete for growth, Harmon Creek II, Preakness II, Secretariat, you just heard Dave talk about our natural gas pipeline strategy down in the Permian and NGL growth, all those things come into our base feeling about growing the partnership at least mid-single-digit cash flows. When we do something like the acquisition of the JV partner in Utica that Greg talked about, we think of that as additive to our goal.
Jeremy Tonet: And maybe just digging in on that acquisition, I think the seller put out certain numbers around there with that implied certain EBITDA for the asset. And I was just wondering if you could provide any thoughts with regards to how what type of economics you’re seeing with this deal and how that could maybe improve over time?
Greg Floerke: Yes, we really look at the Utica story as I mentioned, we’re very bullish about it. The rigs are there, the activity is coming up, we’re already seeing growth and we think this is a volume story, utilizing facilities that have existing capacity. So in an ideal situation, you would see new drilling off of even off of existing pads with no new investment, but even in the case of new pads, it’s essentially well connects into our system and then we take advantage of existing, truck pipelines compression and our processing and fractionation facilities that are already there with capacity. So we think there’s upside in value related primarily to volume and not having to spend a lot of additional capital to capture that volume.
Mike Hennigan: Just to add on to what Greg said, obviously, we think the multiple is going to be better than what was put out there earlier. We’re just cognizant of not putting our data out too soon. We just want to show it in the results and then we can talk about it later.
