ONEOK (OKE) 2 May 182018 Q1 Earnings call transcript

Good day and welcome to the First Quarter 2018 ONEOK Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Andrew Ziola. Please go ahead, sir.

good and Mindy, you, morning. Thank ONEOK’s And call. XXXX conference quarter welcome to earnings first This a live made webcast call being is and available. replay be will include Acts are covered A call the Safe should made statements of by and considered ONEOK’s the XXXX. provision might Securities be and reminder predictions, XXXX expectations statements during forward-looking Harbor or of that that this projected Actual results statements. could differ in materially forward-looking from those

to discussion factors filings. that differ, results please of actual SEC refer a For cause our to could

Spencer, Terry President CEO Our first is speaker morning Terry? ONEOK. and this of

Thanks, today. morning and joining Andrew. thank Good you for all us

and As always, we investment appreciate in your continued interest ONEOK.

Joining available call, Planning Hulse, Kelley, Chief and to Gas. provide operating are Sheridan announced answer on call, Chief our Vice Executive on growth gas Financial first Strategic focus start and and call Natural On Affairs; this and President, Burdick, your Natural Chuck Kevin questions Vice me and is Senior Gas quarter Liquids; projects. we Corporate Vice Senior to Swords, pipelines. today’s Also related Officer, FERC and our off President, will about dive billion results NGL natural President, $X like left our Officer. But on Walt quarter and Vice the where we I’d President Executive is of to announcements before fourth recent performance our which in, plus financial we perspective organic Operating

couple and be of far. As you we’re so will may progress growth was recall, good years I next executing the making on that about clear these projects,

Creek year both agencies and later pipeline along natural to and landowners, work side, and On routes and local on with this we II, the gas construction expect continue to stakeholders Arbuckle begin liquids projects. the for Elk we other state

to part of barrels would closer actual southern Powder Within weeks, from delivered, construction Elk capacity Basin The flow would service big before the as on in third this quarter Creek the for We a the XXXX. free is southern for action Creek Creek the up allow step entire as NGL on from being quarter with Elk Pipeline as line third in could construction. of plan to the the start Basin. be barrels of River first pipe the Bakken Elk to Williston section started couple complete, which last early additional the

is MB-X month. we our Additionally, to this fractionator permitted begin construction and expect

the schedule. ethane more progressing gas gathering are natural the processing remained Creek recovery our expansions Increased Bear of and of discuss On of Canadian Mid-Continent detail side, XXXX Kevin shortly. Demicks and drivers volume in projects plant on and plants and these guidance. growth Valley will Lake construction our key

additional far on with seen turn and the so call this crackers year, up on to ethane SCOOP our or continues exceed With for to I’ll line of to over system STACK ramp our both. quarter. this expectations, And continue demand and Walt. we’ve volumes coming that, meet ethane now

XX% quarter first Terry. you, Thank the XXXX. operating a increase ONEOK’s X% with totaled compared nearly year-over-year million, increase and $XXX fourth income a quarter

compared increase million, quarter increase year-over-year XXXX. First a was X% a fourth with EBITDA XX% $XXX adjusted quarter and

X.X in annualized March than growth million times. times. on flow During we the on $X trailing basis share times. $X.X announced excess $X.XX and annualized portion debt-to-EBITDA On $X.XX dividend paid quarter. X.X dividends in X% At $XXX more which first X.X first another billion an than share $XXX program. our in distributable In of coverage paid of with basis, to XX, cash of or run-rate per cash per million, offering, quarter, a generated of nearly XX-month a an is the our completed was Total on per dividend billion we capital basis, distributable the quarter share equity successfully significant XXth. $X.XXX of we in are January, pre-funding increase was payable our We than more April May a flow healthy a more

said construction cycle growth view for announced we the we we’ve capital leverage projects of an As long previously, leverage important the less on we the But move as times through expect this year. larger modestly over to as or continue our increase to ONEOK X target we term.

flexibility commercial and fund capacity borrowing on credit our ended quarter through repay markets. nearly facility. Since credit metrics. flow operations financial strong or growth December no We outstanding debt liquidity paper short-term the strong to billion to and projects and expect we’ve with XX, decreased cash offers ability We full access debt capital ONEOK’s the $X.X from debt maturities maintaining with ample to our total our excess current while by from us long-term outstanding billion. the opportunistically the $X available debt cash and operations

maintaining are continue equity all. XXXX XXXX, issue to need and guidance in into We expect no our expectations if at for financial and to well XXXX

FERC Kevin March the and impact an let’s ONEOK. update, to for Before briefly I over to turn operational the announcements potential call discuss

First, EBITDA. of demand XXXX calculations. pipelines, cost natural couple related our gas of on charge have shipper-specific contracts key only been gas negotiated slightly are and not based adjusted A X% total than Most settlements which points. interstate to of pipeline service rates represent and natural established transportation ONEOK’s through more of

is a corporation, Additionally, taxable ONEOK entity. as a

new the any From of a cost an on not X negotiated outcome materially rates couple January has not And part including FERC-initiated of as do these of service changes in ultimate any any results. have rate, only. adjustment approved Viking, an Midwestern, prospective all place upcoming XXXX. capacity the rates routine Guardian is Section negotiated undergoing being rates rate currently for perspective, with the is firm corporate regulatory recently to of review, reflect rates which virtually which a XXXX. pipelines a to financial elimination rate rate required with So, interstate in its its cases, tax Border through previously impact FERC lower settlement timeline put of tax by of rates. matters do we allowance new settlement Northern implemented newer of expect Pipeline of We to our taxable would adjustments allowance.

gas quite five-year pipelines majority to regulated that some change as liquids indexing. our our adjustments to There to pipelines. to A of a made natural very from at item impact potentially FERC on Moving review. in NGL at pipelines volumes on could is changes key rates, that policy see may about see which indexing expect transported how what the of from indexing during we NGL ONEOK FERC’s negotiated a related adjustments. would or taken are We’ve understand still impact little next be is applied tax bit close related uncertainty be may to a look vast

million. for feel I’ll that could have be to look call Kevin a happen a this scenario. good we an expect at basis-point turn provides our a impact revenue less over closer index what in hypothetical We each We downside to immaterial. to FERC XXX now impact the business of change rate the of annualized at than the $X.X look And will a would expect ONEOK’s segments.

Starting gas performance Thank Walt. you, with natural the of liquids our segment.

to in LPG primarily trend days in of begin Mid-Continent on compared are but the reached month. capacity and we per NGL day the to volumes quarter. XXXX Ethane fractionated our quarter areas XX% or XXXX. volumes NGL NGL STACK Elk to to first our point April, day rail until year In to compared during same EBITDA barrels with continue occasions we STACK Creek in more with compared multiple day, expect Winter system XXXX. NGL is our XXX,XXX increased our and with quarter with day takeaway period barrels producer April. volumes additional Williston the the the expectations expect quarter, XX% XXX,XXX first the pick on flat relatively in volumes remains SCOOP. full, fourth compared XXXX. the Texas last several a XXXX. quarter Year-over-year that continue relative Pipeline impacted First and this per provide strong NGL quarter a quarter since in same by the seen at West at the XXXX the weather more increase and last increased in quarter Volumes by day driven year, above volumes quarter, throughout have by and volumes XX% averaged in transporting XX% system-wide in volumes quarter XXX,XXX per with than during fourth per per compared first quarter Bakken XX,XXX gathered first XXX,XXX barrels volumes and than averaged the volumes in the increased more on increase the the increase barrels period in and a results service. system year-over-year second XXXX reached gathered SCOOP than growth Mid-Continent, compared first driven Basin, barrels materializing the with volumes was we’ve in fourth interim up the adjusted on X% NGL the a approximately the

relatively rejection look Our reported levels ethane unchanged year-over-year. may

However, volume first in attributable the quarter this XXXX. our volumes of since this by is A comparison recovery. is XX% gathered ethane affected NGL increase increased portion to

million segment’s increases, also adjusted and the continue demand contributed increased facilities ramp inventory seeing through EBITDA and Mont at year. completed contributed rates year-over-year and crackers and the both Wider activities completed previously remainder facilities additional location sequential up held the $XX to are increases, marketing resulting exports, of Belvieu year and are in expect NGL increases. demand between of in we later operate optimization the price the approximately We quarter recently newly sale quarter-over-quarter. as full the in to the Conway and to first Higher differentials from operational NGL and to petrochemical

new to growing transportation Arbuckle Conway market production available spreads wider the service expect between volumes from our two We between centers. Belvieu II until goes into continue consume capacity Mont as and

and growth. impacts in growth X.X and third-party compared regions, costs first to volume gas XXXX growth were fourth cubic first expected the quarter STACK the Moving XX% per our Volume the areas. the EBITDA SCOOP driven compared compared was processed and wells driven increase more day, decreased are to-date processed segment. in X% were segment in gathering year-over-year, the the our increased processing approximately system volumes with and processing by a quarter Mid-Continent averaged volume not XXXX. constraints temporary processed EBITDA XX% the from the in where by quarter on the in quarter Basin isolated per costs, and higher with in metric weather-related fourth volume with the volumes, primarily gas Williston the continue. of volumes the fourth highest Basin Adjusted We weather and for the to A to XXX both Average during X% due feet the XX Oklahoma and XXX X% billion increased increase than increase key primarily Williston to natural volume a Mid-Continent. feet quarter growth. natural for These the XXXX the XXXX fourth wells our SCOOP higher STACK the Adjusted day and than due and with million quarter, more cubic connected was compared during quarter. a first quarter quarter in

continue expect XXXX. connections well XXX total We in approximately to

day We feet of of available well XXXX cubic per the per million have currently, connections. capacity Basin offload XXX in processing Williston day approximately fully weather day XXX is be capacity Available capacity reduced of per Oklahoma, the is feet XX additional this additional completion cubic cubic will the of service. our approximately add will fourth in plant quarter that return million per processing And feet with an we Canadian but day XXX in cubic and in warmer million including million Valley the expansion. feet with the

and XX Bear cubic quarter infrastructure, capital and XXXX. We’re no This be complete initial related in Creek expansion require day minimal the additional plant million expanding the our cubic per expansion will per day third XXX at process in expect from to for additional capital feet of and field plant million the the to of feet compression.

its quarter adjusted million quarter Lake in year-over-year quarter natural transportation is the given discussions gas fourth In to segment, be Additionally, plant STACK our XXXX, producers completed higher EBITDA expected and to we the growth XXX per interruptible primarily fourth with completed gas The Basin increased expansion westbound Permian cubic XXXX. feet our plays. have those XX% from accommodate strong and the Demicks month storage increased segment ONEOK areas to Gas day expectations additional X% and compared volumes SCOOP system, feet day first and cubic capacity, of Transportation pipelines per natural takeaway with benefiting and continue million services. XXX in the in this the

operating our dedications in improvements, counties. best our of outlook contracted committed footprint Elk our producers per this volumes producer further various projects in for ONEOK our remarks. are II, point. activity substantial for more drilling on with In north on increase have expectations additional continue also As strong Williams the than strong. a market activity it experience results. County. extremely gives XXX,XXX processors remains and on Terry in February. this barrels determine since we’re our per it’s production of different completion an STACK SCOOP commitments general exceeded our resulting additional seeing We’ve Terry, This addition, west Creek and In contracted. to Arbuckle STACK already our in and touched of Producers on progress. the was XX% concludes and across what day similar continue seen positive the drilling growth story. have Basin, XX% County the has more project increases contracted far and and a on McKenzie which areas, us is continued conditions, XX,XXX Williston play discussions and customers and from to volumes the acreage we from met formations our that announced, specifically and techniques year since in construction active in both test system to causing was and projects. with my increase The across the these south growth a at announced provides the now completion so But day SCOOP We’ve announced confidence areas further economics, volumes continue to volume operations. our barrels or in

and update. good Thanks Kevin really that thorough for

questions, Before we Western think it’s the important I to Oklahoma your take mention wildfires.

had affect hardship impact Although and our fires employees. to caused the minimal fires several facilities, of our the a for did

and homes, or their their employees to to Some experienced lands. significant buildings damage farm ranch

charred recover firefighters and dedication and environmentally Fortunately, fires. the square help assets Much last assistance. hard for the in know for contain To soaked they by those operating have And support them our to you those of thinking work and almost to lies which investors, impacted resources them miles. week, available rainfall I making And wildfires, ahead you about ONEOK employees the continued and to region want we’re helped that need our of as rebuild. for by always, your is XXX thank your to as here ONEOK. employees thank continued to our safely responsibly. work

So, with that, operator, we’re now ready for questions.

go [Operator Eric Genco first Instructions] We to will with Citi.

guys. morning, Good

about that if thumb to rejection. Mid-Con you You’ve we of day Can NGLs. assume even talked past produces what’s remind XX,XXX to the a and rule in processing me ethane for each roughly Bakken, a plant just of decent full barrels the were XXX, XX,XXX

Eric, it’s Kevin.

rejection, you’re If that full ethane you probably assume range. in talking same

Okay.

at I a XXX ago. you to February, -- mean, statewide look the day now. So, it’s a a day I’m if just year ago, full a pipeline February was basically almost increase this year year-over-year, about looking think Mcf a increase. the I And back, was Bakken data

simple basically, of XX,XXX that math is there the barrels another a suggest would So, day. that

just the trying So, context. this put to in I’m

there you a returns? now? basically If way of being to basically get on are need your Are day Creek, what must targeted with railed to basin half Elk you out with the XXX,XXX you be

First, railing we’re today. not

little a run pipeline’s been to above So, able the nameplate.

-- for So, if The additional spec included numbers year issues to some those did you that’s due some specification in last ethane have out there. our had additional remember, downstream. barrels

the long plant meet we’ve you ways to Demicks replace of assets math a where that to the got the on yes, and flowing the capacity assets. as able be are look those since additional commitments Lake up out ethane But, as Creek. been down road we provided to look we’ve we’ve meet adding, that for available you we’ll continue numbers and CX with, to doing if at other and Mid-Continent other the expansion, Elk come are on we’ve you’re we Bear as and with rail had the in parts the Creek that, going it back from frac Plus ethane fill start So, to that at some you the

know maybe and switching but the I around to want guess, ask, exports I question just NGL a you regular more broadly. I ethane bit. fairly have

largest for you be aggressively pursuing be saw be would or If after there would We a an announced Is can export are might your the another without terminal the recognizing terminal? in at in How you player be something still JV, look someone probably that And in-house. molecules opportunity. today, your potential an structure a what player other asset could terminal? margin portfolio, export that on ethane still get are you interesting? you came that that docks

Yes. Eric, Terry. this is

So, we’ve exports years. been many thinking for about

actively And close have developing so, JV as very involved came We in economics It years an engaged few we’ve a eroded materialize opportunity real opportunities. been partner. would with significantly. ago the didn’t the third-party that

did Most to if it of are in facilities would It work a existing already and JV. grassroots involve put facility. export to modified, an could new the could it potential project just probably continue But exports side. be a very -- added have we that that would good exports a we place point, capabilities. a bolt-on do today. essential We absolutely to likely export market consist we together, But international service not our completely need that markets in and and having we interested capability. fee-based it’s It’s your have be that to relationships continue it solid, to remain access in nice business because involve

interested So, very be we regard. continue continue remain to in active and to yes, highly that

UBS. to will We next with go Gershuni Shneur

ethane out recovery more the whole Permian the basin, tightness a ethane the sort of a Is thesis for a out for number. of the the thesis evacuate in You basins. natural could recoveries? lower the incentivize I’m capacity that at There on you circle your got of broader is of but about to stick still gas incorporated to maybe bigger to Permian number bit. other into there into expense quarter, square Just trying had this here. ethane just a

this is Shneur, Kevin.

As we the yes, -- ethane we the majority downward out premisses recovered Permian. look haven’t coming of by the you But, gas ethane we when in on seeing being are at basis already are still recovery, we pressure on numbers the is basis, of And Permian. some see in believe out, our confident large, is already and vast changed.

continue -- expect ethane demand our we of much think the we’ve the on year. line, don’t seeing, the are So, line we seen don’t I the Sheridan? point demand to come to how Mid-Continent, the see given can are we incremental out? that to still on that know out changes come remainder going in ethane come that of and I view come

well, thing be which we’re Mid-Con prices gas One making also extracted I’ll add some is on as very and seeing competitive with Permian. ethane pressure Mid-Con is and to

the Okay, flip option a going on you of fair response enough. that in of that then, And what’s sort can something gas continuing or guys to an is kind theme. with Permian Roadrunner, do on is the Permian?

Yes.

active gas WesTex to there in system and We’re potentially out bidirectionally. move our also utilize the with system several companies discussions to Roadrunner

system, back Waha hub north, to the and Oklahoma. bidirectional at Mexico to out up with Panhandle East, west to of interstate potentially around capabilities back to Similarly, to and to and on conversations gas to the services the connections gas looking back the the lot other Paso markets some market to Waha in the move So, WesTex El intrastate potentially Western of Waha Texas the markets or also the of Roadrunner. take

with side. team activity of a announcements. pipeline some up we gas make going as and our some may the And of we those obviously inked lot commercial So, on get on

looking given FID Let’s take the various at, execute? how to you’re a long say actually you, options would that decision

part. sorry. I’m first I the didn’t catch

How long. low very These are capital, quick very projects timeframes.

This We’re we’re install compression, not done. and maybe talking you is piping have weeks years. some or little months, to install

Christine Barclays. Cho with

utilized. [ph] proprietary your about capacity to spread wide, Belvieu-Conway you Sterling XX% for guys amount Last time decent XX% said you Last quarter, had was the use. a of was

per some rejection fall of that ethane the that expecting Oklahoma extraction just that XXX, mean and out barrels XX,XXX for the year-end, is barrels think If ethane that’s I some for spread wider general impact Just per should to barrels we XXX,XXX production. how open. leaves doesn’t use optimization? you day day of from does have XXX,XXX essentially by for you. expected could a for about day figure you I’m think that trying So, of that XX,XXX growth to guessing you’re in

the come leave you’re think, optimization. at ethane To for opportunity does more that looking right. us I out, not does that it extent

today growth we wide onto if pushing probably then, our today We’re capacity. that’s we’re the line XX more are also, all also the Sterling III the Sterling line we thing seeing XX% moving system volume is to range. seeing one can’t bigger utilize to And the grade

So, we a get little bit degradation there. of a

spreads wide, is there will optimization staying that So, ethane come are doesn’t the shortfall. If these doubt. no out, than cover more

line there going cost line likely from Okay. come that more is And be in a volumes their to off be the a their in an and currently is plants building volume down line? to that plants will going potential your to that competitors Mid-Con. then, it’s is future we the building or also a that for who future, opportunity connect this of your Taxes, pipeline Should think in of announced to one

into Yes. that’s on will That our connected currently a connect is -- plant pipeline system. into

be So, day of the our XX,XXX a we off about probably But, will this extent come will think barrels see it. I system that year. later

commitments we that As us part continuing the that contracted in [ph] So, Kevin not more is of that we will area. in prevent statements see we’ve mentioned that and secure to the did in in earlier volumes his from plant already -- Mid-Continent Arkoma.

change G&P front? do all, the in impact rules at to guys flaring the the you you expect then, Bakken in And on

been been below Historically, the we No, statewide at below the or Christine, and it’s we’ve has below -- been averages. our don’t. the well has flaring state flaring Kevin. targets capture

we have a available that capacity talking And and targets. new now good the about. we plant we be necessarily the right expansions timely we the get are those still the feel will to in think and impact on new manner regulations ahead us. to with don’t Chuck? stay any will have able the We of wells So, we

XX Kevin these I is impact already. said, wells rules connected that to it and only that not going there us the with the days, to thing out days think, even pads we XX I’d because flaring typically for to very these as add extra producer, XX it’s an from we tied quickly

remember share then, the you I And all lastly, to guys awarding an basically time one hits of your employees high. stock every all-time

that You The next from time high. off on impact G&A? this the happens, guys aren’t far what’s

I that don’t provided in estimate think actually past. we’ve the

I’m not a provide I’m So, to going problem. that’s now. But it hoping

next We Praneeth to Fargo. with will Satish go Wells

margins aware are you declined. sure I’m that ethylene have

curious temporary a a your on longer-term just or whether this thoughts risk see on And this. you issue? Just as

broadly, think can color. Sheridan I Praneeth, you temporary some And give it’s issue. more a

the correctors if what significantly look look heard are year thing same think, you to big than other I thing now ethane that’s they is the say polyethylene you at looking you these companies they And really ago. at need wider fundamentals are at -- to what the a the and are. spreads, were is

out are we for it like great So, looks great there. demand seeing still is there -- polyethylene

think phenomenon you is this talking about at really I time. So, are temporary

And excess ethylene you have some inventory?

to the hit this in, they need we just to heard excess little at out. came We inventory, with the we ramped derivative point last and in came up to units came in crackers get

couple cleaned months next next you the the to So, of months, going to up couple of seeing are think I quarters. it’s be

see you out of And could if recovery then, the talk takeaway that to the hitting Creek? can question, Bakken gas I are Elk Bakken to with Border? where then, so we you stand just tied on guess the limits, about respect we ethane Northern BTU on limits, to in start meaningful And

We with feel Border. going residue is This still the right where Kevin. into good at we’re Northern about now

downstream We are impacts. any not seeing

from some impacts. see to we yes, could into you years. then see to that, in or you Bakken dryer gas, would where But, happens Northern the talked driven in we be you happening and lower going Canadian the growth there. point continue get if BTU next push as Border have don’t downstream Canadian content But, that Now, about what the it’s BTU the volume displacing more to and that’s couple higher

is opportunity not it’s us, immediate keeping we’re it eye problem clearly So, an something for that our on. and/or but

We Jeremy with Morgan. Tonet will go JP next to

This for is Sterling [ph] Jeremy.

it’s appears On this your $X.XX if the at is larger it than G&P you I average But it. to a impact. pretty still shift right curious were can high mix understand segment, quarter. way look the expand

the into expected average we obviously the fee there. be in Going $X.XX fact quarter, to rate

we through yes, As the up. volumes the Mid-Continent ultimately were and our exited quarter, went quarter

have bit expect $X.XX would fee declined that you So, rate or would the in range.

However, Bakken contracts. our fee-based fee from XXX% certain due large rate volume to increased

kinds the segment’s level. fee rate XXX%, bit fee-based a you were XXX% to the $X.XX recall, increase some If little contracts, overall several we with But, of have really caused to pop. these some ultimately large XXX% contracts that

The add… I’d thing only

driven to going say, in what’s about weather both just a on think that the when by of was Williston and I you Oklahoma. lot is the going

contracts. have off-line more certain wells and have different where areas you You impact did

that to the see So, weather rate little due it’s not for related uncommon noise of impacts. bit to a fee us to

kind the during what Thanks. quarter. That’s curious marketing optimization on you’re optimizing of just and helpful. products your And results, Okay. NGL

range; now, Right seeing the in EP normal $X.XX. butane we’re spreads in propane the in the $X.XX and $X.XX

So, can. as we’re much that all that pumping as we

I it. and cost you higher last I one missed apologize promptings constraints. discuss then, segment, for But can system G&P And if third-party the me.

is of quarter. was This kind isolated first the an in That really phenomenon Kevin.

were what as volumes third-party we XXX that on the third-party we from startup worked we as about offload into through we service similarly, just do through saw third-party, to volume transitioned trying day third-party to we we we move attractive we is long-term some ensure and that fully as longer volumes million that. the the our long-term offload as on But we going offload, worked a talked growth the more that, term plant, transitioning were as we to from in as incurred to additional that process continue the we that bridge not constraints was. were expect offload. those we That’s other of that As were have it costs have, rates. to kind using around processing And much costs and had got we at some other transition. of It’s really a

anything then? in shouldn’t up So, show see XQ

No.

Zarahn go next Mizuho. with Brian will We to

discussed update you’re the system expansion on that evaluating. in You projects of NGL gas Permian? Permian Any your takeaway potential

is Sheridan. This

with discussions We other continue, we’re in advanced in processors couple producers and there. a

we done West will in talk announce we the -- the the to until expecting past, expansions usually we in Texas short-term more are something secured behind. so, on And have to we system. we about contracts the have as hopefully have don’t But,

Permian, any on guess, on steel overall, impact the In higher your projects costs? I

No.

As had talked pipe and steel we months the several we before, actually. ago in the prices locked procured have for

in So, perspective. from shape steel we a great are

And a if on have elaborate in additions expectation, then, marketing equity XXXX. your flow bit or more a Is the you you potential key project more, backlog to it no cash on and your could financing, driver is so contributions? ramp

debt going first ratio, we pretty business moving that quarter are X the good we a EBITDA X.X but little there appropriate. would debt we got think to fact put reason for we were I harder as we about today if then EBITDA the hey, a the add the today attractive as some that at capacity room forward some an equity annualize and have if all, see needed you was position bit starting to saw where that project we we qualifier expands. at But, to in the think and we’ve whether

Ted with Sachs. to will Goldman We go Durbin

rejection the ethane the you barrels XXX,XXX split give Just day Mid-Continent? Williston the the between and a the us system, across of can

a XX,XXX barrels Mid-Continent. day and XX,XXX Yes, XXX,XXX day it’s XX,XXX in a barrels to to in Williston about the about

Okay, realized and changes got it. on based process economic. I the that

you’re the So, about volume the that if Elk you Bakken Creek, doing, pipeline we expansion Elk Creek much early get out are you think early can that construction doing? how with

probably out will pipeline, to I another we had barrels day the also volume; down XX,XXX that XX,XXX think XX,XXX that rail could to of barrels our terminal. a to coming get we more a to rail, day can go of of out release XX,XXX Bakken it go increase another but the rail on

us could about a us give a XX,XXX will that overall think I give barrels XX,XXX So, barrel day. day,

you would same sort that be $X.XX before? that the of about economics at talked And

bit. that in little high little Probably have seen bit to it’s less before Elk a when Creek said that a that XXs. $X.XX going contracted than we was we We be it but

that then, low-end, to commitments, this with Elk times just Arbuckle us about the Creek X commitments? we pushing with close of additional to returns now to the the and contracting think you’ve X how multiple range, new both do the the the midpoint additional on done, And that build is closer

these towards if with we the times. X will So, will think push even have to the the than to more X end quicker. turns how And coming the faster is commitments of I on because X new lower get -- we the will the lower we new is more ramp-up not

weather volumes result? the of impact I impact the did on then, the and how this if quantify NGL the you Can your segment it? of that And quarter guess impact by inventory you revenues, much and have fell,

not. we’re no a weather standpoint, From

not in given necessarily haven’t at It’s kind And our of G&P QX. quantified was for again. We you to volumes from where to It -- uncommon process, a slightly perspective, that from volumes. off relative be we’re normal April. we’ve

So, of the optimization standpoint. the of optimization then, from the fact and And weather go think that details or NGLs out in I was a going up inventory. a don’t signal positive we’re down to the an from marketing on very splitting held we -- the were our path

Next is with Craig Shere Tuohy Brothers.

continued questions on of congratulations answered. great execution have and and here. my morning Most asked Good been

marketing. about question you do that? we headwind that inventory Ted’s the think it, is should then that the periods, rebuild, quantifying on NGL a you to with aren’t To about up -- we in future the need picking Just how can degree

headwind And it And at a offset spreads view the if Again, all. we previous even but about with the shows don’t up, doesn’t, for opportunity talked spreads also talked we’re now. great, right there. the seeing an Sheridan if have it capacity a as optimization. we the I see question will ethane there’s about

forward going believe it So do spreads will that’s think we the strong. remain is I about how

you expect to so strong. see And bucket that would stay optimization

OpEx that temporary. a G&P for the addressed lot that you the And of higher quarter is

there think the How we lower about NGL segment. I some that? think was in expense should

a both had in of little kind those. You of bit

lower But these of what the rate. segment, costs. than in of quarter the think trying little about as some GMP If -- volume a might run we I get you’ve we’re be because also rate growth. to you run think saw got In first

So, a as op -- cost for you’ll volume growth. just in that with see year, the you up go through step little to deal

it On we fourth artificially probably the the you quarter maintenance saw We had and NGL side, little a that fourth we saw a step projects did then, And projects expense high. in higher down. that quarter. work op cost was several in and a the

maybe run there as be little growth there towards you uptick rate above closer Again, rest the little the year, as through might you’re see So, going well. volume a see to of that. a QX, probably

to Capital We Rebecca next Advisors. with U.S will Followill go

morning. Good

following go the the year? $X.XX $X.XX. guidance of fee up to rate you $X.XX number at the Are for is the saying rest Just of good versus on that the probably

the Yes. depend the saw anomalies use we drove will it do back believe of volume that we’ve up That’s contracts. little and quarter it a our down But volumes how programs, will get -- some back point. bit. you and this customers on -- at Again, tick down see what it little weather will first the come do -- the out would I on in gets think bit got which growth. a drilling some you’ll that and as on, We that to the come we see

market there, gas capacity you how intrastate additional evacuate and can quantify back add do Texas what to then north? you to can And you much can

we -- are not talking It’s Bcf not type day a projects.

million in got XXX probably the two range. three day XXX a million, or type projects You different

a existing we low projects I’d are those off types our low little talking projects. capital, building but more asset that tactical footprint, are about. think of these multiple, that’s how So, about Again,

Bellamy with Baird. will go Ethan to next We

Just a follow-up that on Brian’s couple question on in questions prices, the steel area. a

are the maintenance finally, unannounced, And we CapEx exposed the will viability? that steel economics going projects meaningful on Creek? current backlog, Separately, see changed maintain or either prices then, in moved forward has can if Elk you First, or your there, announced other in cost levels? confirm not you any movement

the Elk locked showing a are exposed up. we take perspective. are already bought no, not there. price we first And I’ll pipe; in we Creek, it’s from that one. Again,

there. nothing So,

and look have ancillary point we that other cost we as escalation think projects about things, -- other at our feel and we’ve at we any those this As about already good not backlog seen announced.

As we think about obviously, our to evolve. tariffs continues mean backlog, stuff the I

will there evaluate economics. move economics as we So, through we we get it, we’ll as our in the include -- anything

might you steel… the mention Arbuckle of terms Kevin, in

right. That’s Yes.

as is on also from Elk in price steel focused Arbuckle but standpoint. II well Creek locked the We’re

So, prices are we in, locked have good there. go in, to in, got the schedules vendors locked we locked and

delay the And does going on it in be? is terms project plants negotiated cost of with agreements anything you if you know what might to negotiating customers, potential don’t be of new

No.

And warnings, small concerned then, seen a item, a to anything for QX? about housekeeping of we’ve be kind Dakota but just few North flood

that? No. I -- we mean, what’s

outside Not the ordinary.

normal Again, May, April, spring. as we normal a me; would we through we’ve consider to what seen moved

this That concludes or today’s any I’ll closing additional for Ziola Mr. question-and-answer it session. back time, At turn to remarks.

late early close until when of quarter in we starts our Our second XXXX quiet July we earnings we will for July. in extend books period the release and

and Thank you joining provide the date. We for have on day. conference details good again later all us a call a will at

Thank call. you today’s concludes participation. your for This

now may You disconnect.