Already the largest processor in the Northeast, MPLX LP (NYSE: MPLX) is set to make a much larger impact in the Permian Basin. This growth strategy will be supported by the recently-announced merger of MPLX’s general partner, Marathon Petroleum Corp. (NYSE: MPC), with Andeavor (NYSE: ANDV) in the second-half 2018.

This deal will help to create a company with a large and geographically diverse foothold in the refining, marketing and midstream sectors. Once the merger is completed, Marathon will become the largest refiner in the country by throughput capacity with more than 3 million barrels per day (bbl/d) by adding Andeavor’s refineries in California, the midcontinent and the Pacific Northwest to its refineries along the Gulf Coast and in the Midwest.

Marathon’s marketing and retail division also stands to benefit from the merger by creating a national platform through the combination of its portfolio on the East Coast and Midwest with Andeavor’s assets in the western half of the U.S.

Just as important is the impact the agreement will have on Marathon’s midstream arm as it will continue to grow its presence in the Permian and Stack and combine them with its large footprint in the Marcellus and Utica.

During a conference call to discuss first-quarter earnings, Gary Heminger, chairman and CEO of MPLX, said that while the merger will help MPLX, he stressed that Andeavor’s MLP, Andeavor Logistics LP (NYSE: ANDX) will remain a separate partnership.

“We believe this combination and expansion of MPC’s footprint will provide additional strategic and organic growth opportunities for MPLX. At the closing of the transaction, MPC will own the general partner of MPLX and Andeavor Logistics as well as the majority of the limited partner units of both partnerships,” he said.

Even before the announcement of the Andeavor agreement, MPLX was focused on increasing its presence in the Permian. In the first quarter, the company brought the 200,000 cubic feet per day (MMcf/d) Argo processing plant online. This plant doubled its processing capacity in the Permian.

“We’re putting a lot of emphasis on growth in the Permian … we’re hoping to announce in time another plant [in the region],” said Michael Hennigan, president of MPLX, during the call. Hennigan added that in addition to adding processing in the Permian, MPLX plans on adding long-haul pipelines for gas, NGL and crude in the area.

The Permian isn’t the only area that MPLX is focused on expanding as Oklahoma’s Stack play and the Northeast’s Marcellus and Utica shales are also major growth areas for the company. Indeed, MPLX anticipates bringing the 75 MMcf/d Omega processing plant in the Stack online by mid-2018.

While the company is looking to grow in other areas, the Marcellus-Utica remains MPLX’s bread and butter. During the first quarter, the partnership increased processing capacity and is set for further growth in 2018. The company completed the 200 MMcf/d Sherwood 9 processing plant during the quarter and expanded processing capacity at the Houston, Pa., complex by 200 MMcf/d. Company officials anticipate adding a further 800 MMcf/d of incremental processing capacity at its Sherwood, Majorsville, and Harmon Creek complexes in second-half 2018, along with 100,000 bbl/d of fractionation capacity in the region.

Though the region had some headwinds this winter, Hennigan said the production growth trend in the region is expected to ramp back up throughout the rest of the year. During the first quarter, producers temporarily shut in some producing wells to frack and complete newer wells, combined with a harsh winter in the region caused a production decrease.

The company also remains committed to crude oil logistics as it completed the first phase of expansion of its Ozark and Wood River-to-Patoka crude pipeline systems. These 360,000 bbl/d pipelines deliver Cushing, Okla., crude to Patoka, Ill., and are expected to be complete by mid-2018.

“We remain bullish on U.S. crude and natural gas production, are enthusiastic about the long runway of investment opportunities for MPLX,” Hennigan said. “With the support of MPC as our sponsor we have the ability to develop incremental infrastructure to support growth across the hydrocarbon value chain, importantly, including export opportunities. We’re executing a self-funding model and intend to finance our approximate $2 billion of organic growth without issuing public equity. Our plan is to fund the growth with retained cash and debt while maintaining an investment-grade credit profile and strong distribution coverage. The future for MPLX is bright.”