ONEOK (OKE) 31 Jul 192019 Q2 Earnings call transcript

Ladies and gentlemen thank you for your patience and holding. We now have our speakers in conference. Please be aware that each of your lines is in a listen-only mode. At the conclusion of our presentation, we will open the floor for questions. Instructions will be given at that time on the procedure to follow up if you would like to ask a question.

pleasure this my Andrew over now Ziola. is to conference turn to It

may You begin.

and ONEOK's and welcome Conference Shantel to our you, Thank to be we'll call be available. available being prepared will remarks, Call. your Second is webcast replay live questions. a take made After This Earnings Quarter

of predictions of by made forward-looking statements considered and statements that that the reminder results materially be Harbor this call could Acts might from in are should covered the include XXXX. Actual A those during ONEOK's XXXX forward-looking Safe provision expectations Securities or differ and statements. projected

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

Terry first Chief President and Terry? Our is Executive this speaker Spencer, morning Officer.

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

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

today's your are Joining Natural and Corporate and Walt and Chief Operating Gas. available is Strategic Gas Vice Natural Financial Officer. Vice and Chuck Hulse, Senior Affairs; President, Vice Liquids; Kelley, Officer, President, President questions call Senior Also me Sheridan answer on Swords, Executive Vice Planning President, Kevin Executive Burdick, Chief to

service. an time It's we largest into capital ONEOK begin growth exciting projects as history our of some in placing for the

budget. Our ahead schedule projects of remain and on on or

completed southern be XX in The NGLs on the the with Elk quarter. region began into Mid-Continent, to on pipeline fourth from employing of section Creek July the Rockies still the northern target section

gas our with will to in fractionation system, and capacity. help Last week, address our producers NGL will continue we projects incrementally added Dakota low of with and announced These address which additional needs across ONEOK's projects natural North flaring customers. processing ability expansion demonstrate cost to further grow transportation

customers by are these of including meet are recent long-term backed projects, and to needs built our All expansions, the contracts. our

in-line where year. We NGL operate so our with natural see growth producer basins the we strong this activity and continue gas that with across volume expectations is levels to far

XXXX and financial reinvest expect earnings beyond strengthened business, With confidence reduce accelerated our year, to or to and earnings our in growth value significantly. our continue on XXXX Now, to return projects we expectations halfway our into the through schedule, than flow remaining in and outlook cash leading more shareholders. XXXX has of leverage additional and ahead

the I that, Walt results. second to turn will on call for over With quarter comments our

Thank you, Terry.

Our quarter quarter $X.XX second adjusted $XXX income XXXX share, XX% year-over-year. net million increase second increase $XXX a totaled totaled per And million, X% EBITDA an year-over-year. or

Distributable times. $XXX healthy XXXX, cash second flow the XX% quarter a million from XXXX was with X.XX of in coverage second the quarter up dividend

of excess generated than in distributable million in We XXXX. paid cash of quarter also flow $XXX more dividends second the

we dividend the to During flow generate record coming The increase $X.XX per in confidence share. the further our have a payable projects we of second will $X.XX August increasing shareholders dividend And share per recently from annualized increase to quarter, we completed in or last basis. we on paid the months. per expect share, XX cash week, announced underscores $X.XXX to August X. an on is a This or of on dividend complete

trailing a was month on EBITDA XX X.X to debt net XX times. June Our basis

With or XXXX to in quarter fourth with quarters deleveraging first the quarter projects times XXXX, the EBITDA expected continuing be follow. rate in to these expect to X from debt of we earnings of run at the

on second $XXX Our on hand. with million $X.X our than we facility cash quarter the the of ended liquidity more full strong available and remains credit as billion

our We $X.X minimal capital billion projects year We attractive in invested. returns an Because towards announced some do of expansion capital to anticipate on impact additional XXXX that these range of NGL natural week spending our projects we expect to of guidance guidance most expect of to the range. not $X.X growth the will of end projects, for we as capital timing the happen our gas accelerated ending provide XXXX. and the XXXX higher last billion,

down we large year, projects than on our pipeline spending lower winds expect early XXXX capital As XXXX. next to expenditures be in

additional up ONEOK's volumes growth. project to on system, committed backdrop timing all for impressive add our an Producer and activity,

even As we will our more confident our guidance our greater the sit EBITDA XX% in today, an that increase when adjusted compared emphasis with on we XXXX XXXX are outlook than than with midpoint. greater

performance. the Kevin turn to at operating call look over our now for closer a I'll

Thank you, Walt.

year-over-year, in to XX% activity barrels feed or compared Natural than volumes XXXX. quarter or per or per more increased day both million volumes raw feet processed, see Total barrels operations XX,XXX the in than increased of per second nearly or compared X%, gas continue NGL X% with We natural producer XX our across XXX,XXX day day and cubic year-over-year, NGL with per throughput increases strong feet and driving increased quarter. cubic day first the Gas million XXXX. first increased and X% more the XXX volume quarter

timing natural a and our producer in Williston per inventory. each of drilled basins is XXX there project be gas growth more continues feet operating billion XX in Starting around North Powder region, X.X day strong being volume operate. nearly Rockies cubic per and uncompleted flared, take basins. more than in feet to wells XXXX and River natural day million we rigs the Dakota at and closer remain than production with cubic look and Let's where the results of the gas

factors liquids an gas natural these gas inventory growth and our segments. of of for natural provide All

day XX,XXX southern from we completed the currently barrels NGLs. pipeline Elk Basin River the of As to Mid-Continent, Terry mentioned, per more is Creek Powder and it of the section flowing than

higher southern the be costs. growth previously freed capacity, rail the to fourth service fully on have the up in eliminating railed volumes rail used section which Elk This pipelines, quarter. Creek in our transportation With continued address until can also Williston moved NGL has basin is service to we in in

including to low need growth potential for cost and further increase are on can Elk projects will to growth, Creek needed These expected, incrementally is As recovery. be ethane we pumps volume additional completed the add as capacity. address

With million the which and when of XXX,XXX these first feet is and to gas confident barrels wide on throughput full. of per in approximately more than of plants to day of XXX XXXX, approximately dedicated day cubic flowing those that remain Approximately new the end the ONEOK basin plants are Creek day XX,XXX plus reach production the will between capacity barrels all of day propane We first NGL the quarter NGLs online already processing XXXX. per XXX,XXX per natural coming per now translates barrels from on pipeline. quarter Elk

the processing a and cubic online million total basin, XXX has per additional capacity day to come now Williston XXXX. expected announced in ONEOK feet of early between of natural now gas

was area our well Our latest some per the has in announcement to plant yet runway County, highest feet a an be day XXX the of decades-long expansion production Creek experienced has in of recently drilled. Dunn that increases North inventory million and of cubic Dakota, Bear

expansion day once Mountain We over in NGL This day. per on Bear natural the a service. barrels volumes per up expect region increases volumes XXX,XXX contracted XX in expansion to for our month from Creek ramp also gas to period the Rocky barrels XXX,XXX plants XX to processing

section in schedule Our quarter the in Demicks open conjunction early in northern Lake of to fourth is full of Elk Demicks remains the to first I Lake quarter with Creek. be II XXXX XXXX. expected on the completion plant complete the

XXXX. expectations the quarter saw in Mid-Continent region In quarter second in volumes the with the Mid-Continent, the in for remains and with producer raw to compared line activity year. on first both processed the feed increases natural the gas Moving NGL volumes throughput our we in

new completions third well totals first is on Large of quarter to XXXX, the pad its gas early capacity the plant drove barrels and party contributed in connections quarter and natural increase schedule contracted completion NGL increase Arbuckle in processed previously. XXX,XXX in in compared two per for with volumes. day now XXX,XXX the volumes the II

XX,XXX XX,XXX facility barrels will we These to week, the plus remaining day help heavier our per XXXX. from in the the quarter Mid-Continent. be announced barrels quarter increase day the of NGL capacity completed barrels NGL projects with barrels per Last per completed to capacity in Williston fractionation expected day fractionation basin. totaling propane the first XX,XXX is in address third expansions, XXXX the

than types with natural increase pipeline in drive going to continue the projects completed gas compared These Recently substantially basin Permian both capacities the XXXX. the quarter second will earnings second can and contracted These our capacity XXXX at the quarter first construction. firm of and systems firm transportation projects completed forward. lower to higher of and projects Mid-Continent our quarter be in provide cost continue pipeline segment expansion efficiently new increased

LPG quickly pipeline, region Permian driven average first growth volumes operations. Gulf higher take legacy and continued roll off in feed fee track expect in online, quarter increased market-based volume to West it as XX% is look per raw basin trend in be quarters system let's rates. of primarily expansion up in region Now day of this are West throughput in as which after at NGL to our the on Texas at a and come are volumes placed rate by XX,XXX volumes Texas compared to with the our replaced this XXXX, our we expansion Coast with West future transportation remains and contracted The fractionation the LPG barrel ramping volumes Texas XXXX with market LPG on service. and first completed quarter

supported of to barrels capacity which dedicated long-term expected system. in to And NGL Permian a from plants by third quarter first expansion will per completed last XXXX. the processing expansion week in be The is we and is basin announced the the XX,XXX day production add

approximately available will earlier XX% capacity to second per MB-X the this expected and XXX,XXX product in provide originally XXX,XXX approximately NGL capacity of fractionator in and barrel planned. in Our utilized day than per phases. of now is is day fractionation barrels the X year XX,XXX current fourth quarter, day to composition approximately per complete be Phase quarter was our we given barrels expect

XXXX X the XXXX. first day to be on Phase in first completed as and the for barrels will expected of the in of per announced. is track completion remaining remains quarter quarter MB-X XX,XXX originally consist

remarks. Terry, that concludes my

our growth for a XXXX. is uplift significant up Thank earnings in progress volume The Kevin. on us you, this year capital projects well in setting

As in greater guidance adjusted we're EBITDA Walt XXXX growth even outlook compared of more emphasized, confident midpoint. XX% our with our XXXX than

have there. results our well-capitalized growth visibility of processing we and discussed production basins the and and natural highlight our for today widespread operations quality and ready across waiting impressive high gas NGL operating transportation volume operating The experienced are volumes both producers The now. and

products to operations specifically to and our and field both their budget at looking ONEOK who our so. our we provide growth equipped locations and the to ready our like pipeline on their working service located to customers. to and keep they need to southern our project in teams for headquarters grow do infrastructure on and efficiently are critical to order those Creek to connect able with recognize and demand I'd large of our to our in benefiting markets time personnel Producers well operations are work place early at various Elk the hard section projects many on are

ONEOK. for to you Thank all customers our to to dedication employees your our and dedication

responsible continued focus Your operations operational on and to continued led success. safe reliability and our has

operator, that now we are With questions. for ready

Thank [Operator come first instructions] will Capital. Danilo you question Our very from much. Juvane, BMO

morning. good and Thanks

XXXX press you in You Where to XXXX see between upside you as the and EBITDA in still was Creek and that do start to midpoint? having And the to of early mentioned see the relative of added high do second year it extent midpoint XXXX? the a other number release growth XX% the the half projects Elk from significant was well. rate the

any we're that. which our we the to year whether the on today of basis think going don't on let about on it. have guidance as a giving call. do to XXXX to expect of get off that adjust that midpoint But we changed and haven't evaluate will people Obviously, right we're we now continue to through No, to this outlook

for pretty Walt. quarter. from Border, strong was anything it came during it DCF And that Thanks going Northern looked potentially there? like the on

of out out of to off quarterly second made quarter, our ordinary in nothing, business. distribution, in of an cycle addition normal the distribution really Border ordinary the but Northern course Nothing nothing the

We going shouldn't to forward? expect that continue

again? you say that I'm sorry, can

expect for the more We any year? should off-cycle balance of distributions the

Now, excess in up. it's of and quarter, a for earnings the that distribution catches us

track will have they forward past. the going as distributions in earnings So with

to of Bakken question on production potential to a you strong liquids, Got thoughts continue for you. takeaway that solution? the gas Last residue for out me, the any extent see

we're But across at, think when Canada. those we it's basin mean, will to, coming I you there, there capacity paying on, absolutely, getting you of looking gas the all different clearly displace and know, I a And, we're you we participating continue outlooks and know, you that's at the in conversations. to, can the to to do we're basin. attention something know, we are come ready believe look continue from online going conversations variety

questions. Thanks, Kevin. are my Those

Thanks.

you much. Thank very

from question next come will Our Chris Sighinolfi, Jeffries.

Nice morning. just to for question questions. had Danilo in want execution. good back about circle guys, taking to you Thanks asked my Well, Hey, that Border. Northern see on I

own and partner decision my cash to your out then guess, is, for the basis? JV that? edification for periodic Just that mechanism the I This a the make on build to at and what's pay you understand

basis. to to Committee a what They more believes that's the do time the to quarterly And here. extent to happened have that, that regular the overtime, Yes, capacity ability make and a there's extent it Management we than the one do distribution, in that.

Is this correct? that of year. And as to, that was fall pertains anticipated also it things to and this guidance DCF nature,

say Well, of the this develops know, year. as that, I it's to the the to fair kind course you throughout we think -- do that of plans

on going in with So, you distributions forward where basis. basis, line would quarter-by-quarter know, I on think a a expect have we been more they

comes Okay. I contract get up of from then barrels had? thumb the as Mid-Con is you myself I I base, touch guys just point from I could day there volume have Creek to what job what for and now And or seemingly we to And that just wanted all to you review just, Kevin it parties, the to All to better really there. have will understand between I that wanted XX,XXX a remind pipeline Arbuckle great. switch nice of this be every to comes continuing or a then from Elk plants incremental a what sourced where if commitments said and guess, contracts rule rough third and guess done quarter given another XX,XXX slate at the right,

II as going you're way go we both you all as new included barrels to if to tied, plant those plants. be Arbuckle Elk Arbuckle varies new Creek to we directly will and plant all get know a that it contract Obviously to Bakken mean, new and a contracted I in that's Well, going Mid-Continent are Belvieu then in II. the plant if getting the be

So that's down. I you in it how... how general we mean, on other thoughts any just share break

a is contracted difference II and definitely I and what very think that's sense right of that difference for the That so we've macro see definitely coming Creek. contracted you on Elk Arbuckle it. they between out we've for can what call

volume but subsequently appropriate sure on and want counting to just provided the Okay. making fair long And II. table is it then have feed doing if these like is giving careful I what guys your double that looks not credit at of I -- I'm If each I for down be guess enough Arbuckle credit bundled on two assets, I you that Creek that's at the of Elk moving rock service. that look rates you NGL moves

to the fair Mid-Continent the volume credit the fair see thumb rule that on incremental above give volume you Bakken do think would rate. then rate bundled to I portion it is that with just would me or Creek and Is different? so of advise something about to that And that it the Elk way

that's about it. to No, I think a think fair way

my Okay. Alright. Great. for question, taking guys. Thanks

Chris. Sure. Thanks,

you. Thank

come will question next from SunTrust. Tristan Richardson, Our

guys. Good morning,

Mid-Con on capacity. the frac project expansion for Just

to heavier there talk purely of just the the barrel. need in Belvieu? projects sort have of just capacity about just for what really the you on relative kind you optionality guys comments prepared in you the for that could or about about talked at You Is new curious going this customer

came those our capacity, looked lot teams for cost we the to fractionation and how had we more low a just clearly that a is the have it With move the think purity provide II ability drive option Williston would products just we'll return. other as of pipes, down once Arbuckle Belvieu best our up. came down was at ability to I but it to down,

optionality. most look where provide to capacity. we really So the we get efficient cost, we at that where could But do frac down came lowest it

appreciate on just range. as contemplate where does on that about that that might yet? you then commentary other on at just up haven't the to looking think greenlit up been CapEx to projects XXXX -- you sanctioned have Should might directionally stack XXXX And of we that or today your your be relative follow sort projects Great. necessarily

No, I in it CapEx we have think we that been both that announce. we're in XXXX. And then able XXXX, what be will our everything going expectation to thinking given, see forward, lower we've

Appreciate it. Thank much. you guys very

Thanks.

Thank you.

Our from Cho, will come Barclays. next question Christine

the all benefit party provide you quarter Great But financial off? and could now third it's year everyone. as assets I'm your frac roll What when roll Hi, next by between and going costs off rail are of to first all the be when is well? quarter. then the off cadence online. assuming

what transportation the about guess is we that previously, the barrels have already costs. we $X.XX of way gallon said I about Well, save per I rail, that we think off talked rolled about to think

as rail the when rest question, the more of pipeline is along from year, then put another comes next the that see other So in pipe be we online. those when volumes put move Christie? capacity barrels uplift full that to will rail out the step barrels through coming processing Did plants the you'll on and the flare point, place processing then this getting all start at when answer with your

guess. I Yeah,

rail. But now still but you've with on. moved you're continuing barrels XX,XXX southern off Okay, the to portion per coming right day

So going the I of is increase the guess end to this throughout year. rail and I'm still guessing

between expect you to So and does and much rail much you how at are peak, that what like point peak the year-end? do how now at today railing

went at southern rail volume we nearly zero. when the volume point in on section, the that Well time the to rail brought

And have that volume pretty down. then online comes Creek in now between gets much we everything -- rail plants So pulled and when coming and you service. Elk

back rail, those So start as it we building volumes start from plants use online. will up will coming

and build obviously So up will once move it the then it to pipe. back the place, will full of is back all in pipeline over

Christine. Okay, it. got

be is Sheridan. we we We when of Creek of this time XX,XXX Christine day the section back bring think a upwards Elk Northern again. we off will get completed, the by Creek barrels Elk railing

to you then And expand is long so. capacity. you if helpful. approaching remind Elk pipeline, Creek contracted would Super bubbles discuss too And it's that extraction, numbers Okay. low how probably ethane on your the might you Can would us, to what just not cost also decide I'm at point take do at and and do given that change? point is minimal your what it sure

continually. years. of at like and go can aren't also do a things to lead and And like to measured the not building [ph] terms of -- Clearly prepare long have it projects those long we the ordering Thompson of lead things ahead that. look We two-year time ability months, pipe. They're projects the in for lot other engineering we do and equipment

drives done that months. required to it just that matter the again get a time of So

Okay. an was there that? increase but volume, in your What reason volumes for was me processing Bakken And remained for the then last one flat. pipeline NGL

drove continued We drive ethane and our deeper. to just deeper rejection just

takeaway remain throughput was the to the get plants the So capacity. more at through and NGL pipe,

able plants as drive So through much but to, liquids. our produce and deeper rejection run more we inlet not were

to rails are you then? quarter the to max doing So,

much that yes, year, we were rail. max but at the towards pretty mean I

Thank you. Okay.

Thank you.

Fargo. Our next Michael from come Blum, question Wells will

then you I'm latest of on for trending I everyone. pretty have prices the you related into just the how curious, XXXX. have of rest your trend you to to see updated the views if little obviously things bit, morning, can how going or Belvieu for rest kind that, curious is a on volatile. any the different for spread the if comment Good here Hi. year? was Conway year of been and And views NGL to

Michael, this is Sheridan.

overall I in some propane come see Obviously it keep at a for you'll should crude uptick create think we're see XXXX. seeing of Not at price, capacity today, and prices. here the the demand online, as more the export little strength. more That you year we in but is look crackers which level should if into see you'll the end some I come spike online. absolute more and a you uptick price you're think seeing through huge

quarter to where this it's Conway spread the the Belvieu as and issues fourth get today that we the historically, in once into we spread spread is On is where probably than think Then going before, into tighter we we much it start more in it Arbuckle is some now, have to that that course, is will quarter. bring range which that or than a bring we've have be you'll right seasonality through third go what narrower little today. to said back online, of seen II today. Then will

I you Okay, recent announced. just And this that. great. that of appreciate just then slate projects

So those those think that? those their course bolt-on of are or profile consider in some return of would kind just because of nature? about the Would we Thanks. of think of to normal your them within be you projects. kind How on returns do we typical be better,

Michael it -- Kevin. Yeah, I think is

better think kind new about to I X our be we've in to than but of just frac lower projects can times, at are that plant are to costs expansions some constructions our be other that. be and standard going talked the the expansions done and X of going

Thank you.

much. you very Thank

from will Tonet, question next come Our Jeremy JP Morgan.

put that in the half out high-end or of kind or high-end, like temper trajectory above be those? year versus is that are this ranges point. the just segments. there Hi, seems it of that within gas like curious at there. the seems morning. anything It could possible the the for the are the appreciate kind updating you pipeline trending guys you good guidance quite and this not strong you But G&P I guys Is of back could like

is We first talk can about this Chuck. G&P. Jeremy,

one could of pipeline down come facilities think our trend come to we going on. our field some I through higher. infrastructure, It's

you we kind services necessarily -- volumes, our think interoperable which very and for on. a do it's as short-term storage balancing about not some year. business, the only good timing, we are And services, our seen our our planned pipe matter but of end earnings of So demand driving that hadn't incremental towards as we've of gas the

demands So doing well both up care very point. we're taking now, just and of at this the of right segments customers are

Great. seems all think leverage the at it That's the about peak, is thinking to before of like beginning projects helpful. And here, with the coming online. balance think XXXX the then, I going sheet I

You've added XXXX? how more you and you're still some on more all I any how backlog see the to the comes did that color provide across what there to that going And into wondering broad guess, or that do? just Is moving you you leverage, same peak together? or could

heaviest Well, and spending in 'XX. Jeremy, fourth definitely third our the is quarter of

when and in And our we've the is quarter first going it to volume volumetric how that's as that Creek XXXX. the EBITDA Creek with guidance barrels, the XXXX relates on our put that we're So in said quarter, build a coming expectations throughout in XXX,XXX going to you Elk of of to from enter we've its quarter in and around disclosed, right fourth quickly the Elk get deliver see uplift out that that, the going first in go to us significant there XXXX.

thoughts over announced down in already and So, towards to peak. we prepared XXXX of on date XXXX you the end end projects to will that'll from year. that well back as be be we might cross The my spend the will where CapEx and into a some our delivering and road be we've I our gave remarks, year, the

significant the trajectory going looking and some still to going for delivering same forward. in we're see So

That's it helpful. me. That's for Thanks.

Thank you.

will Coleman, of question from come Our Bank next America. Dennis

talk just really sort right. of you don't for Good fracs interested or One Hi. have of I'm of sort everyone. with just morning, regard frac understand bringing in Can on how to if little this a I the in me stages. I on phasing it, concept fracs, you -- a of bring

about So a you just little happening? could bit if how that's talk maybe

Kevin. we long Yeah, with call somewhat utilities, are time lead had heaters it's case equipment, spare typically it items. of this down that refrigeration, equipment some some our some lead Well, Dennis I'd there, type in capacity kind long for complex

so the mode. equipment, we'll to leverage partial that 'XX. in frac to we've kind as up spare what of capacity, the that's installed a And to have we're full some of we then able And up and capacity existing it get rest bring

that -- so on expect there, that model capacity, just using to be as the question -- is, if and you're itself should guess is for Okay, so, the X would frac then the I well? a vessel follow up we

it. not the have same we'll spare take for But We'll expect utilities, do look you the obviously a type evaluate to for We things that but that's something may of frac to if happen of at wouldn't I will different X. variety a MB-X.

this it onetime it, Thanks just in okay. and Okay, sort to guidance for on this use think back of should that payment we not both this, should use onetime this go -- and Chris then but we so just distribution, but that and about wasn't to included of the that. And hit guidance, -- sorry Border payment, correct? the way. I'm Northern Danilo And

the going is, guidance? if add the about you're think in, So we to guidance above should that we be

not It's in fair to say that guidance. original the included that was

That's Perfect. I what need.

me. for it that's Thanks. Okay,

you. Thank

from come Dounis, question Credit next Spiro Suisse. will Our

Good everyone. morning Hey.

the not back that year. highlight in going maybe while expectation guidance XX% not a next I'm seen since you for Just growth was guys to provided. we've the here. sure Maybe original

the you're means So that of confident getting pretty getting figure. of sense that

the and some business curious, around assumptions are about get growth. So commodity the base thinking there underlying of maybe differentials of to some you how just

just just that context some expand growth of you the year? the if differential there made in earlier comments XX% next You outlook. But around

about the talked is first huge quarter. about think on to inventory think we the the when gas you this XXX,XXX I Creek the the of we up that in I the math Yeah, and driver, Kevin. backlog mean, day a just the put obviously kind And Bakken. by there flared barrels expect is of Elk the to

But that's year, now go growth that course you've cubic the back and first put feet that online you when then capacity full Bakken that's is basin, then up in got quarter coming out you II the ramping year, which Demicks the for well. processing day got XXX on NGLs, and Mid-Continent significant across between amount of the the 'XX a And you over number. the full Demicks you've and a the Permian Lake million a running the of as generates just got to flaring and entire primary driver the the and the just II plant for

Got it.

Is sounds so I'm of being on call hearing no or And it any differential if commodity of here [indiscernible] right, move. made real that or that major sort fair? that, there's outside like

That's fair.

expect and back In fact, we've XX% in shared XX%. in are is narrower as And than we than with that Arbuckle-II much spreads been they that openly included assumption is mentioned, that included greater to talking in that, very today. come

it. Got it. Got

Okay, area. your Mid-Con appreciate commentary, the your term? clearly most you're more maybe focused been really somewhat broadly, how guess thinking that. footprint growth producer just of is has And, And longer that there and outside lukewarm. And lately, then about I

be So point? you you offset fair just the sort volume what that even curious, pass-XXXX Mid-Con some at have do or of to of around cautious this if optionality headwinds, that's on sort footprint, think maybe potential

been line little you've that in with given we some own of we've our a the -- seen I And think, a Mid-Continent, is footprint have our things the had remarks, then in in in size were side. volumes like there been outperformed remind think our to producers written and the prepared the NGL been off we but Yeah, that expectations. G&P general our both one of our continue may expectations. some just have I we expectations, remarked system, you've and the the that people the bit, have things couple have

set in all So that we're as we there, forecasts information. out our factoring

do it, about expect move growth the as guys? Mid-Continent mean, forward. we I good we feel we out So and of

hooking on planning in another, the two half second plants more year. still of up this We're Mid-Continent

capacity. So seeing we're need still some for

And this what I as probably that would think that, I standpoint gave, add we year. well from and to model well we're be, think I would G&P connect exceed were trending our going we guidance though

Got it. I appreciate that.

factors into exports, your made if sorry has on considerable one imagine outlook. I Just guys one you and new capacity could announcements last amount LPG just it, market that touched around recently. quick I of obviously if been

you So about just that how thinking now?

I market to there. we're project about continue an say what's do is think do go market on something there going what terminal. going to engage or just to LPG going what out to exports, we're export uneconomic to understand when and think we build the have not is But and the we

disciplined, time we're will want that, forward exports. we continuing to we market with have on see but go that in time. we to we always then an the go the we be will as project capital that that use get we forward we economic So that And and involved our we when engaging evaluate to will

Thanks, guys. it. all Appreciate Got color. the

you much. Thank very

Our question next Weston, James. will JR Raymond come from

Hey, good morning.

Just on wanted ask real Bakken quick G&P volumes. to

to the got you're like pretty the of but looks the this still far half like kind XX% guidance almost you've of year well connects tracking relative So second of looks it well year. expected

So just above kind moving if of or in guidance are pieces there. that it curious you're expectations like other if seems maybe tracking there

there only and weather QX cold the there's in early lag to but a did we snow. think due not face of was it, let's lot I Well,

So wells. it there get connect and difficult was to out

quite obviously quarter a Second few. connected and we strengthened

the guidance the just waiting stations. we'll our capacity of our that well is remainder hit compressor certain on that connects think I year on some some

shape to in well and we're the our So, for volume I guidance. good year numbers guidance our on connects hit think

Thanks. That’s it for me.

Thank you.

UBS. Our next from come will question Shneur Gershuni,

in ethane days few a tailwind two Until correctly, reversal under Maybe guidance, kind years. of maintaining comment. respect with if last just a follow a couple severe mean ethane I the you Hi, the ups guys. greater morning, rejection prepared here, been to quick big your the of was had remember the XX%. I And sort in you remarks, XX%, has emphasized pressure. good you than But ago

sit it moving some when Creek positive it set today. plus you the originally the saying Elk of wondering what out and better have of been includes rejection. some ethane just XX%, is that did versus parts reversal said kind that negative Your expectations, being offset by what you guidance the you and time from And the

would when we say our growth the that has in look in expectations. XXXX What at NGL I volume exceeded

not much in as ethane we ethane we have growth than seen is we seeing come thought of other from that we're quite areas. on the our For out thought probably as system more rejection but

than dividing big growth bit. offset this we the more we seeing we little volume So a we are that seeing would time. is are thing But thought see at

third rig look Williston, in-service on trend if respect out day it plants, sort recently sort the there in moving just and date, spend plant not of looks dip XXX the take sort I out the around was of around sort the your do your with of care flaring date announcing the flexibility of growth. when spend what secondly, a in-service some like two to the just We've flaring for slides a I that MMCF seen flexibility have at then wondering big have third this Williston in was some plus And acreage, your count, at to you push a plant? on Okay. of look in around of that's that their it numbers continues, would you

you flexibility. right is that. this But us that to would that do Shneur, I Kevin. would technically, mean, now nothing yeah, have we cause see

customers just it's seen down plants the fact, capacity out are area. some the blocks, County they've more now well-capitalized to need more only this In in there of -- opposite, not is they drill area acreage Dunn and large and with this the full. right our are these reason producers And capital results The capacity. deploying they're want large, they because

a from at smaller to we us. we off we growth plans, looking is day color to for producers, it we put their more a And expansion in. XXX a clearly a million decided started continue about this and and immediate So got see, expansion the push up area

that Appreciate very sounds great. color Thank much. you the guys. All right,

Thank you.

Jean Our come Bernstein. next will question from Salisbury,

estimate us into of can Border is Good it what you morning. Could maximum and how being think an much today, ethane the projected give Northern you handle it?

to time as website their it gas day barrels Yes, over about has North XXX,XXX see just into looked With ethane. We Chuck. at this ethane filling mix Northern on some going the this Dakota is XXX,XXX barrels day much information the Border. forecasts depending the it. there's about pipe, authority out as between and of pipeline Today of actually Canadian you Bakken XXX,XXX other at roughly could that a and gas

Great. obviously, of out pipelines then lot open of there's And That's create a really helpful. seasons that are Thank you. the running Bakken.

do they up question, expect for NGL with you find signed crude, contract usually a other be tend Just if new takeaway to sign them for you match year that? parent as when crude a takeaway with the takeaway looking to general to XX they would [indiscernible] for like example, for

see we need is when a you're come takeaway up building don't NGL see where we Typically, that, people capacity plant. new at looking

they it. when it the and secure that they'll new then -- grow they build NGL So side for they'll capacity into new on takeaway of the crude on complete when plant, the plants that as

for So signed they to they're necessarily term NGLs up doesn't just mean crude and versa. vice deal because long for going sign a up

got really sign look start are have when seeing up or takeaway. plants more going to signed NGL you the But to either NGLs at announced they up being have for you already for

Really all me. you. That’s helpful, for thank

you. Thank

Our will question next come Baird. Bellamy, Ethan from

for longer-term? to may investors volumes all. concern your There decline next Bakken in years by morning, Dakota is some acreage five that expectation North your what's on the the Hey, three good

Kevin. is this Ethan, Again

track see for in basin. you record the just to XX rigs with XX at the continue look growth, when to that for range We

seen than there. production growing significant at is gas faster of crude gas the clip a and growth increases production production that just have We and because remember the GLR

look forecast horizon you positives about growth beyond there. some mentioned. believe We gas you a is of there at out is So that lot there of the definitely production,

Okay. My next… That’s thing. a good

Well beyond that.

ahead. go Sorry,

just said I beyond well that. No,

I is getting? do you're pipe Thank we project a a you like agree handle need that just with going it to Okay. you. that might was new export to volume gas ask looks that and

Yes.

discussed to residue discussed need to three, are is again, a on there basin years. we variety next out, as capacity get being four growth clearly think I definitely two, of in avenues some if different a the And we were over more agree earlier, trend, you stay projects but we the with additional -- that. going takeaway

Okay.

decline all Moving the has for down prices at if the capacity? customers and the rates negotiations with How in frac impacted, south. NGL

all. at them impacted not has It

needs also byproduct, reprice marketplace capacity, We what to taken it are are away services they off what our NGLs are alternatives, is. going with be And people that in the to remember say. get of can't flaring they areas the

So price charge the on not what for does NGL the we of services. impact have an can our absolute

fairly market's And still tight?

well. tight tight, there is capacity lot a is because obviously new as come as still capacity pipeline we're ones coming fractionation we Market's pretty building on. And on,

is all fairly tight in market the still yeah areas. So

the last for a whole what's then on and And your of partnership, lot are here? assets There M&A Okay. market question. a few appetite

candidly, an high, opportunities dollars we very that over you the laid can to We about next forward. strategic look Not the of accretion at going have a Company the from Terry. think is really this Ethan, talking we earnings from get to and that are you additional standpoint, gross it share several come when When years. M&A.

or to make think you when organically. buy really assets have valuations, now, anything that's the makes Now invest to that be sense. particularly some about with don't that could could cash we alternative right there some there compelling from sense may that we But out time we time in see particular that

you Thanks all. Okay. Much appreciated.

Thank you.

Shere, will question Craig next from come Tuohy Our Brothers.

on Congratulations morning. another great Good quarter.

Thanks.

Thanks Craig.

the record based quarter. that to look On the margins, fee be G&P second unit in a

what's and driving sustainable that Is that?

our $X.XX $X.XX, guided Bakken coming Chuck. more part to today. to higher of $X.XX Obviously, Craig, business this out, are is with at so We we Mid-Con that’s the gas to margin it's relative driver.

different in In producers different to have get that contract addition you mix, the we fees.

is it there are And range. so we I solid think sustainable? in

have And could and takes I day. coming out XXX,XXX it gives a if your and relates X,XXX are system, of of that to of describe way, great. you want to just all Okay, possible understand the and as increase modularity then I system an you it currently Arbuckle II integration

and have wind You would West into been putting if Leg you but product, Arbuckle may contracted excess II. you LPG growth [ph], the of II, to wide then in switched to thing Texas grade this fractionated the that Sterling XXX hasn't III Arbuckle purity up any Southern go all

to trying think up? quickly the through So how I'm can entire just fill system

that a good Well, is question.

right, optionality But on we we're, today, as continue will system we up a Sterling put purities on why quickly that spreads III's and royalty is is, us I start through can and you're we our fast one original take come if feed, we the to to as we open go And you Sterling Arbuckle have go we up we they'll fairly said, is believe modularity together. can III how forward. the come be will the lot for flexibility. gives of first that's of when and the add all actually at raw back We question, the -- your pumps look it we fill and can

full if pipelines that kind still are to upper today. thing. because all million of And see another comes breach we'll will come that then contracted think we pumps not end online another still pipeline. we build quickly But II will volume as we X And we that the take see But to up the that have need if a have the we barrels X some million for and very We hopefully to to going in of into to Arbuckle barrels barrels. online out, come we it's should take capacity will and think future. headroom go million the we -- we above put pipeline build Arbuckle be we -- we will think good

So couple right? So X shared to the million isn't northern section capacity Northern West of section, volumes Canton Texas section as barrels the the [ph] do right? and in take if Arbuckle a questions same southern you go II the the

the Northern million section can barrels do X and barrels. section The XXX,XXX Southern can do

going So Arbuckle or inch come II a XX pipeline that where XX in XXX,XXX barrels inch Texas to million is leads or -- and West barrels. from X to transitions a right

was how That for XXX,XXX coming the leads And system does open that's volume the plan that in impact not Texas the beginning. that's from sale designed. day was north. the West that down our barrels a to So

West can you to -- could Arbuckle So on come go of and II. we Texas upwards anticipating we XXX,XXX off are see barrels

for free I if of it then And that service? West Texas understand crude southern would section potential the

service, That's correct. to going continue new II to the -- from a Gulf have a the West the on Texas free to of XXX,XXX Permian Or up to system West which line us Permian out to would would Texas, from we're crude. the for as Permian get to Coast to the barrels which have day complete we Arbuckle some legacy other include West Texas

extra. moving that's And up. contract And do to advantage with today, what just from product III II purity a nothing then to moving is got it The range wide is see. Sterling to the you Texas, the I of a all right? I'm have take Arbuckle sorry, of [ph] XXX West over XXX day to incremental capacity to

That The correct. volume Sterling is XXX -- is not does that's include III today. the on moving

you very Right. much. Thank

you. Thank

from next Seaport Sunil Sibal, Securities. will Our come Global question

Yes, hi, good all call. morning, the the guys, and on for clarity thanks

going I'm on G&P or the commodity quick up your anything OpEx just year I despite segment know the sometimes prices that one impact that -- well, and question especially as in prices, segment. Obviously, gas were there strong Just curious fairly is there last fell results a as I pick OpEx. much decent volumes. the kind as in noticed that actually sequentially on of

So I bit that. clarity just little on a find

pretty lower is, between are just this quarters. million Chuck. to -- timing and we $X No, Yes, the due the about sequentially much

might pretty be run that's towards numbers quarters Demicks rate those if we a little year. bit and but much So good -- more as employees more cost, we progress on average together, and for higher you two I bringing as those field II, are the

prices don't impact that costs through pass a number, that really like more is gas And Okay. natural correct? gas

it not No, that impact does number.

just an so to been the number understand customers, been LPG out is volumes view like those and a of have then the in which the talking export little online, that. that? was also, coming And expansions that way hearing, you -- of on moving on taken end to if get And maybe constraints obviously, From bit trying LPG you for seems a way ultimately. better on in side, some you're curious customers who there that. of guys opportunity I for there've some some to side dock a thanks what things. Okay, I've LPG

as have some term kind capacity of that's question. rates on going announcements again, mean, to or there But term, project. dock been been there's spot looking Sheridan be economically it. And the talk we're customers, think see we're have key mentioned, to alluded the approach Yeah, we short announced. way justify we'll of I the is, as are longer that's do a pushed We looking to like Sheridan rates more the to rates the out going down. I there, for

it. Thanks, Okay, guys. got

Thank you.

last Our from come will Goldman question Lapides, Sachs. Michael

trying a I step got versus XXXX? And How in XXXX a you XXXX captures versus to step guys. XX% you've what for like that up that think come up? guys lot thinking of what how plus a online about Hey, ‘XX projects ‘XX. that mean much drives about looks

an XXXX going little than I Michael, XXXX. and out we're outlook that further a and to think we're definitely do give give usually to you on stepping you not guidance, we

do going here. better that you work you're capital some XXXX even if good take just But multiple to have same investing your and recognize we're multiples, So that the pretty is looking the projects in of to own we're too. or at incremental in these

can Do these Got to of that think even a on times most run once X it. X full get you some multiple a you projects, assume do be you than rate? better still or

the think of about price build than a putting adding Well, half better is at perfect example multiple. to capacity definitely is X the I a frac -- of X

it. Got

appreciated. thank guys, you. Okay, Much

Sure.

time, at further Speakers, in no questions much. the very have queue. you Thank this we

everyone. All thank you, right. Well,

our close in release quarter until we period late quiet and early extends books we Our the earnings when for October, starts in third October.

later date. your for throughout joining team for be for us details the Thank will at a Have you that available call provide day conference good questions. will We week. the IR and a

gentlemen concludes Thank now this at you time, conference. our very much. Ladies this and

Thank You rest may disconnect your week. great phone lines of and a have you.