ONEOK (OKE) 23 Feb 212020 Q4 Earnings call transcript

Good day, everyone and welcome to today’s Fourth Quarter 2020 ONEOK Earnings Call. A quick reminder that today’s program is being recorded. And at this time I’d like to turn the floor to Andrew Ziola. Please go ahead, sir.

Thank you, Greg, and welcome to ONEOK’s fourth quarter year-end 2020 earnings call. release materials after are earnings yesterday, markets our those and on issued and the presentation closed We our website. remarks, prepared questions. our we’ll to available After take be your include during A statements and and the are safe be this Securities ONEOK’s the statements expectations by provision call considered reminder forward-looking or made XXXX. that harbor that covered Acts should predictions XXXX might of of materially differ could from results in statements. those Actual forward-looking projected

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

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

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

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

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

personal customer grew year-over-year, reduced challenging XXXX. accomplishments on service several ESG amazed focus despite understandable ONEOK’s a by highlight After demand to very we U.S. But the and losing of adjusted continue discuss want it’s exceptional depressed far to year worldwide my extreme to They Dakota XXXX to XXXX for results with weather they ahead. deep through continued and Before first, under and I our to North provide employees the the have in tirelessly markets. that been their first of what’s name and winter so be energy appreciation Coast. like to related our recent working XXXX, freezing express from like pandemic in all financial achieved faced to while own during have do I’d a needs financial homes, pipes, water, power customers, circumstances. global I without meet you our XXXX, Gulf the challenging who want challenges to X% EBITDA guidance, it. operating

energy Our ESG created never opportunities the transportation critical health that electrification include integrated is for in evaluation team gas under keeping of Equality charged safety and accelerated standalone such assets natural of hydrogen XXXX but and compression recover products play critical our the and capture who a extensive to received gas stewardship natural the to goes Oklahoma-based to from including S&P Index. Jones for order assets or in employees a our industry storage perspective, and has being team only fellow more with XXX XXXX complexities flowing resilient expect these year, we actively enhance assets, a systems. the collaboration only of not vital been carbon low gas an role liquids the recently will our From potential home, help The pandemic. score group and to complement and and commercial We storage. employees carbon Dow Human economy. systems continuing carbon operations and ongoing a on recently advantages juggling site company future and energy monitor perfect the was of opportunities, with credit formed quickly families economy our employees and business, prioritize continued to longer-term environmental our in their those expertise, our And in efforts, also employees. emissions, evident. are included all energy the projects. to researching lower Sustainability an have report efforts. back this the named and sustainability mover awards dedication sourcing renewable in we in of the that further of working In are the on our ONEOK Opportunities opportunities those midstream of also communities, the World renewable Rights of to other from recognitions North Corporate numerous Global Campaign only as Sustainability greenhouse American this transition environmental assets and in receive to we company Index. The development the low the mid energy a Whether

and solid balance projects. a XXXX and As for company is billion, fit, approach, earnings year-over-year return the our a deal and great we We project Yesterday, financially, decisions our in XXXX just announced of remain on terms adjusted EBITDA disciplined and capital billion as commitments started we we similar year compared in performance with ended of it, improved with develop has we of range sheet. financial XXXX. operating $X.X growth these to which midpoint. operational Strategic we more strong than $X.X guidance year leverage contractual increase XX% a in opportunities, we’ll another positioned the threshold, in applying do criteria other the stronger accomplished

enables of the projects likely from our to although from to more business on Kevin continuing we’re of end environment seen months. producer commodity we even more sustained dependent accordingly. fundamentals our guidance we’ll both talk our higher the completed XXXX. the shortly. an assets end likely upward our guidance guidance range, significant increases in growth key about prices, continue Earnings in higher capacity on isn’t The the have drivers adjust XXXX at and growth, and year As earnings improve, power activity will of or rebound in in recent to operational earnings available of

the potential We decreased. Producers transportation, making secure believe in believe me alternative transportation the in crew the these the of shut We Let resiliency challenging was briefly times. original ruling Since seen DAPL would Dakota is down feasible. of earnings that had in oil have the has pipeline crude we we’ve business assuming if July, remain down are employees on assets XXXX down even Access integrated DAPL $XX less and in of Pipeline. we ONEOK, confident significantly ONEOK especially that and increase EBITDA, touch for after impact more long-term quickly were than the outlook in if the to shut year. in time April, to to our prices a our well-positioned shut impact be our even provided rail million remainder

times, to natural will businesses come I events in have continue and needed services remain resilient the to natural world to resulted much ONEOK’s With volatile call and delivering decades customers. will While provide our gas essential over Walt. liquids that, gas turn to for

the ONEOK’s adjusted flow Distributable the nearly Terry. and cash year. quarter totaled in you, year compared XX% for was full million fourth $X.XX X% year-over-year of full $XXX for quarter, million a XXXX. increases fourth and and EBITDA Thank fourth representing $XXX billion the respectively, with quarter increase XXXX X%

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

taken XX challenging XXXX. the contributions on an steps to our Proactive December financial rate market us end net with from XXXX projects Our annualized improve and basis times run at times conditions. earnings of debt completed leverage was metrics, EBITDA X.X despite X.X through compared to enabled

by outstanding We ONEOK $X.X and credit ended times rating no X major term less XXXX times approximately continue leverage agencies. our credit is toward our We X.X manage to of $XXX borrowings facility with grade or three as cash. goal. longer and million rated on aspirational investment billion now a maintain

maturities original proactively upcoming investment in Fitch additionally, November, We maturities ended XXXX. an $XXX Directors stable into XXXX. up off grade a with both a dividend in We our due As $X.XXX before rating savings $X.XX good of last have no achieving basis, million market more expect open Board currently debt of XXXX. declared opportunistic ONEOK’s and of We than and Last in in debt time Moody’s or the repurchases that a portion carry million of plan BBB quarter. reaffirmed $XXX would and the ratings paid we’re issued repurchasing first of year, unchanged month, previous to with outlook nearly from on debt annualized S&P compared cost XXXX. a through of over

are income a billion with compared to in and gas producer XX% supported efficiency ample completed including capacity a financial the EBITDA ratios than projects As of from and XXXX. provided increase adjusted activity, midpoint the an expectations gas XXXX Williston of Basin. with Earnings capture more guidance, and mentioned, Terry continued announcement, earnings recently midpoint billion, flared $X.XX yesterday’s net for by we and strong oil $X.X increasing gains opportunity

extreme Additionally, from to and Pipelines our due by to areas needs driven the gas over critical meet to weather increased Gas a benefited demand two past supply propane and across prices time. during Liquid higher natural segments our ability Natural operating our Natural weeks, this Gas

guidance partially We freeze short-term offs, natural midpoints. expect represent from these upside opportunities by liquid to will still that natural offset from to our well volumes and benefits be gas gas decreased

referenced and infrastructure this levels a Creek needing Basin lower. rage. Williston with levels and expectations, XXXX. assumes correspond this later XXXX, expected for and more and of range volume Our County the the much high. Dunn current WTI field prices capital million producer with hooker the including our third we project ramp a crude The capital on decrease to year. XXXX growth XX% this positive. our year Bear capital EBITDA earnings holds than to we expenditures activity the end including of remainder six remain being guidance original of range lead for year, the the range still Sustained $XX $XXX WTI this a the activity that capital producer a for to higher and quarter towards And the $XX adjusted times volume $XX extremely higher likelihood multiple crude could drive improved and range. prices and quarter is producers capital guidance a incremental compared complete the $XXX also four Total remaining to reflects are Conversations maintenance are strip of expansion call. at of which to This assuming of to volume area between additional plant million, $XX with From standpoint, first associated with in assumes multiple

In expenditures, pipeline our terms completed capital of Creek December. of expansion an we in Elk XXXX

capacity our day, capital and barrels most leverage a on capacity system, Basin. Another of efficient pipeline out million increased provides Williston our operating example the by $XXX XX,XXX on of transportation added low expansion per

remain focus investing contributes like million annual from a the for call look EBITDA our barrels primary operations. ONEOK. of at our I’ll XXXX on over now unchanged and debt closer As to customers. priorities in with XX,XXX we remind of our people alongside the approximately to per every turn reduction region $XXX our day Financially, largely Kevin to NGLs

to day were Gulf volumes per quarter with in third ethane start quarter, a XX% region Natural from feed that quarter In Liquids then the In I’ll drivers. quarter raw region, due plus throughput fourth due from rolled Gas as the year-over-year. typical outages Walt. decreased only a the propane our ethane Mid-Continent petrochemical barrels quarter of winter lower our well fractionation from the third our as third on the average, growth related from outage you, challenges. nearly with system quarter contract the compared Rockies reduced In the third-party fourth compared high quick hurricane region our inventories despite segment, volume discuss of to Thank ethane XX,XXX and in increased feed XXXX off in plant the and exceeded Permian recap January, fourth In on short-term the quarter, with raw third operations weather system. XXXX quarter XX% fourth quarter. fourth region, and Coast a throughput the primarily

quarter In volumes return the the reported percentage with in we fourth all demand. fee in pipeline stable volumes Moving compared year-over-year end-use the with third Rockies quarter. quarter continues rate by of on another to quarter segments. with and with came online. gas mountain Mid-Continent In MMBtu MMBtu driven to drove per segments the Rocky XX% fee-based gas The third to XX% in the quarter the of strong $X.XX earnings contracted. processing with $X.XX XX% – per the processed back lower from fee-based volume curtailed high fee earnings a region, natural ONEOK natural average combined the segment compared capacity with strong nearly segment, provide as and volume increased volume The gathering fourth

more try and can on and quarter our materials. XXXX results in You our full detailed information fourth earnings year

environment seeing and remain operating operations. producer months Now from moving today, a even our we’re our Conversations much with few on to XXXX, customers improved the as we activity increasing positive sit across ago. is

reduces XXX,XXX this Creek capacity, result ample needed. Pass the capacity Overland from paid The year, to which at Elk X% guidance the increase and volume Basin available in ethane a in beginning our NGL natural day natural and result at total gas with for midpoint NGL cost had to expect on ramp the XXX,XXX Elk XXXX. segment, in a and added expansion, volume XXXX total our be pipeline Pipeline XXXX would low earnings provides expansion costs is In gas the also River in transportation barrels Williston to $XX is new its XXXX. Basin, barrels increase total additional expansions region recovery the pipeline of Our liquid to million continued of compared we volumes increased which per XXXX Williston potential exclusively completions volumes the million and X% day. in volume With the to driven completed our well and Creek completed Creek from in Powder and growth per increased we if $XX In to XXXX, projects recent of capacity to in growth by capacity Elk the this plant and XXXX. expansion connections in processing the and expected transport

does assume of and partial Williston ethane current NGL does Williston ethane recovery. the opportunity per Basin Mid-Continent both incremental recovery, barrels Our in Basin. volume approximately guidance not XXX,XXX day but currently ethane Mid-Continent have assume We

system for per we expected and the available two of we but petrochemical between to our capacity international historical Mont strong, look export look Belvieu, to Conway differential As $X.XX be continue ethane between volumes market to to With dynamics domestic and the is XXXX. and centers expect pipeline fluctuate near demand the average ethane. gallon $X.XX throughout forward on

the seen as region, additional needs. Mid-Continent our expired In the NGL NGL increase our barrels the in on day and for than the our lands, eliminating our optimization market And less of resulting From pipelines system, our end weather, volumes that prices outside fluctuate the on in Basin. so of However, we’ve the for we at in firm to we offload contract per Gulf prices business, perspective, coast this in opportunities XXXX. assets the XX,XXX extreme several winter of of these products XXXX, Permian to on recent range, federal estimate utilized is and far costs. propane and pipeline are the meet storage both Permian marketing lands federal flowing primarily acreage volume third-party NGL from now XX% transportation created

the acreage. basin volumes rigs operating Basin. are to the expected There Higher gas segments. currently dedicated gathering our on to Moving come natural from on are and eight processing XX XXXX the with Williston in

per of cubic half The North spring. that with producers oil basin activity, per capture, showed in acreage. large million current still conversations of the than they a rig gas the XX% day the with gas indicate to ONEOK’s bring and in more basin the the increasing gas with capture. opportunity. This more XXX record region of that continually wells gas a remains the and approximately Increasing provide our feet dedicated ratios region dedicated leaves is price flaring drilled, in environment, on additional DUCs once capture Our approximately for in which XXX solid data, wide day. flared XXX than state to latest result average tailwinds our acreage. The processed billion weather increase achieving on XXXX, than the flared natural Dakota At more compared X.X we December of volume an in inventory volume which basin region. cubic midpoint feet with a month for remains expect the an uncompleted also expect the rigs back guidance, would in the in growth of greater but XXXX of in to volumes XX% There improves

year. at which in wells the region expected average is based to year, XX completions rate this our per the assumptions expect midpoint, $X between fee be connect mix and segments XXX between the to volume the would $X.XX XXX in We range month and on XXXX for

amounts As are cooled we in Mid-Continent was outside declines expected. production is our dedicated connect to of region, XXXX. we portion our on Basin acreage in private The XXXX. Williston the rig year. guidance and where region wells primarily natural said to for the activity in Flat In volume previously, lands. activity the XX% land nearly connected The little smaller acreage, the XX the no is federal into on expect basin factored in same of

indicated XXXX. the was natural they we However, natural particularly have in be prices, and capacity adding contracted stack are and commodity strengthening that areas. NGL, segment, producers rigs In in XX% the gas pipeline evaluating expect transportation scoop approximately gas to

continued the our areas, need recent it pipeline systems transport across experienced temperatures we’ve natural we’ve on As gas operating that to extreme our cold natural markets most. extensive to gas

provide feet have the Permian freeze-offs assets, to these billion this services natural significant time. needs. a gas shortfall bridge assets pipelines on cubic to customers demand gas When more ONEOKs to Mid-Continent due higher by to primarily experiencing to XX Our critical able during are which were well-positioned and connectivity the than meet enabled areas us storage critical natural within well and providing in of both reduction supply our meet located of the supply were Mid-Continent

Some storage we which through of operations. our transportation ONEOK, of from sell and of provided as normal contracts our is the by course owned gas retain part

remarks. adjust short-term were stable these preparedness events, segment. highlights in financial react financially to that upside and customers Terry, ability our quickly operational an While already services and and flexibility for our concludes weather my

you, Kevin. Thank

and in We’re is the And we’ve environment increasing increased and for products. position, demand good of market a signs positive activity financially operationally current both showing our XXXX. as begun producer

in now did shareholders ready on again responsible work a of for and we XXXX. you times our all many us delivering our the to employees before, focused for prepare profitable, said Operator, growth safe, for XXXX we’re environmentally questions. you will in to Thank remain we way. As value in to

have Michael Fargo, [Operator Instructions] we first And Blum. from Wells

everybody. morning, Good Great.

made want leading the understood you Are about guidance? you the sure there based other maybe Is of to Just I the your that’s correctly. year-to-date end baked that make conclusion? comment go versus the thought, on that perhaps what’s you to is trend towards range. factors’ just pricing back wanted guidance guidance earlier into to high I just that that just

Yes.

primary – good to given to producers of they’d they’re us that to right us think the for backdrop things in and now do are that I stronger bit XXXX? take we’re your in going in is little well, the going you’re what pretty for the prices providing response – they’re indications it’s And I think what price, commodity like do but rigs commit them prices. good the and to a giving seeing, signals, do to those looking time

let’s So and good these now, comments, really a it. six on Right with handle But the little his see language in of take as as now body very got a we we’ve Kevin bit is looks it crude indicated time. positive. prices,

going Our increase producers of that little their even take further to got going think And activity. they a sort will. it’s through that. Kevin, we to. But bit time to you to anything

No.

think hearing. that’s strengthening activity, from prices. be given what to I continues The about positive that, we’re producers these feedback

So that play we’ll just watch out.

comment. Michael, a make just So I’ll

at where pandemic. we time. and You issued We weeks we were this last with remember global a year later, guidance two in hit got February

a you So conservatism we’re the continue lane wait going forward. put bit to see jump guidance we’re in adjust XXXX. We’ll quick, it year we But we seeing giving and that we’ll might the today. think the is if what the to to we strength you accordingly. the of here of till adjust guidance. on that a understand, We won’t good happen it in end And pretty body pretty certainly

like year, probably following historically guidance the the this then kind little I this that. Great. for think question, I And year. but have greedy a a soft at you given directional of with of point appreciate

year. just XXXX, So kind haven’t on this can some the year you your But own in slides, you said you’ve obviously of would done this – based provide that back in think you some I into of be that. that data

low-XXs XXXX. of flat count to rig kind production in need you keep think I

backend. we’re think in now, the I XX So were about right rigs we

sure heading that’s still based you that, right on direction, sounds math, comments like So if think but yet? it you’re you’re in and prior just that not the your

let Kevin question. take I’ll that

less that little probably gas oil probably to the capture number, rejuvenate. again, guess little that – than the I Michael, think ability with continue rising ratios of of to I our I XX is counts on gas is and XX –– more crude hold think the more somewhere and flat, that high but me, based may now to to a a that bit

Great. very much. Thank you

Shneur Gershuni UBS. with

Good morning guys.

of wanted two-part impacts, a follow-up a Just hypothetical kind here. question get to on XXXX kind of the

the terms equal, when it standing versus the situation how So hitting assume Creek plant, given that on up be realize finish that building Elk going think about the to Creek Is recovery else then the the at heat you’re EBITDA kind Border, that incremental it will you Elk fair of Bear respect through goes to exists And limits or plan scenario. and result of a on into of rate to the where all in Northern I then Northern X ethane of think hypothetical we to plant, XXXX possibility but Border? there ends XXXX? then, incremental Creek we with about as a does also get in

Yes.

Bear year, the of were the that finish I incremental the by probably XXXX absolutely forward by it EBITDA paused it thinking So into it we now Creek looking would we and year. of originally we thinking end that add at right. in that, XXXX, I a like if mean, more end timeframe, think first, and when about yes, go general, but we’re you’re this of the

absolutely that were an XXXX thinking is how about we So upside previously. to

As exist increase it yes, for potential that Northern to ethane, as and the continue potential still volumes relates you see basin. in to Border

go going is gas Border. the Northern into high to side gas that the On BTU

stakeholders back which point. conversations the at that back heat are work with that, that go little Those going and the and bit. to those to time understanding underway content Northern go in other – are pull to need Border kinds to continues content the and to just this And over proposed of blended going him so drive is map work producers region. up, a down forecast the the shippers tariffs, is

for we’ll filed, watch that might process continue that that the months. tariff to would coming over get So expect official an that I

Is And little a can then asked. think just as more if in divide your sensitivities around bit answering one of EBITDA my or question. terms percent to you two, by us wondering XX us stay wells like rig Michael’s to first around NGL there thinking maybe an the wondering we was question with to that of Okay. I about the and give those that XX. I’m modeling? you per rigs, clarify when you share how should the you about needed about I If just said questions it’s XX follow-up flat if of can you month, be XX you responses I points. it about that per rates. was were just we do wells a that below clarify in math, that should I two bring And can just think to

your again? was Okay. Sorry. What question first

versus X prices Just yourself and EBITDA, flat need to second wondering, and about growing. about NGL they’re to change XX rigs even of guidance range. NGL many when sort I changes, a dollars think And then part equal your changes of would X, keep impact like we in at was as about the amount think how specifically in unless you

You said be low would sounds it teens of correctly. do XX, the sort math my like if below it I but

Okay.

going hundreds it’s we’re given as with significant millions pricing, really an of commodity point. pick with a are, we’re at talking to just fee-based a you there’s are not we backdrop, we not about heavy not the – much our massive or – fee-based on so in are get and Yes, – of bit, move improving, up first how there. but pricing dollars this commodity and hedged how just the on little So

is On we that is mid-teens-ish, and that different our second key. material, is do number question, at – over look shows that’s more the different agree I production we’ve rigs believe have that it’s the we’re rates I kind what of in completion we there do of would – time. of what made in the to it thinking I our And owns do a believe, think gas we that

production number But quite So much that and ratio mid-teens. we’ve the oil-based in that. crude needs is the to hold put hold oil that of the a production flat with to written to about, All again, flat. number bit gas rigs strengthening basin less gas is the we is need is what than typically

Great. If one last That prepared remarks, the green makes in can that on sense. the that in. investments were slip The mentioned happen perfect timeline I one something that relatively can the soon, you three-year like it Is months? can tax sort happen passed. to incentives of be need or the do of next or some a kind XX this view in is something is that

larger But thinking I more that appropriate scale, be we’ve a and worth thresholds. present got them consider It’d mentioned. we’ll on the as Terry Yes. is the in themselves some mean, with that near term. about opportunities of smaller return investments these that projects

appreciate I color Perfect. Thank much. very today. you the really

It’s We’ll Barclays. move Cho on to the Christine next with question.

in rate the guidance Thanks I start to could fee-based for $X.XX question. cents $X. taking my for assumed with if Maybe G&P is

production increases only while year. that You Bakken think I in above Mid-Con this decreases and came would XQ in

what in support not better. a that fee-based saw similar shouldn’t So to we rates if XQ

rate conservatism, is that and just this there point? So cap a is at on fee-based some

Christine, this breakdown, by what’s volumes and forecast is contract. I’d Chuck. put when go producer ahead together, say we our mix of our the we we

did So have as total fee levels value. a as varying of that, we these contracts component of different

QX. originally $X.XX mix quarters what seen may So in to that in be have the we’ve We some exceeds different mix volumes, we in we And here $X assumed. on of range. the projected this because than word obviously fact, based a feel comfortable may that of little bit

above pretty $X confident could you in So range. see but dollar, to some feel $X.XX upside the we the the to

also which retaining some of Okay. on first you talked you NGL Bcf opportunity materialize operations. tailwinds, in some if move of selling of going spreads, for half, segment, first part the And about prepared I providing sounds some And then that remarks like about, have talk least of storage at or to of it quarter, also XX talked to about NGL normal course could it’s as the the you and Mid-Con. but your talk the that about then you

clarify, Just you deliverability on, selling of on also into are some how gas max storage each And gas can take you mean grid? that the what’s Like the the rate does storage? give much color out to day? you us the if could

question. that handle Chuck let I Christine,

So, remaining XX it, Christine, or Kansas, in up of about referring Oklahoma, call Oklahoma and the in five the Bcf fields are storage another the in largest XX is Kansas. to four are in located Texas, that in with we’re Bcf, balance Texas

yes, we for gas. have that So and We we becomes us. ongoing retain transport fuel as gas, go business. we’ll normal we ahead store some do of that an course And equity

have where We sales anyone forward strip as And would. how – look in that to relative weight choose cogs we our the program we a want equity monetize to portfolio gas.

obviously some each unexpected this what available, market movements – we and each And keep way also gas have situations, setup you. for We year way.

So and event it year, occurred. setup happens this this we

we’ll here call. that may have in were able QX about Oklahoma more seen these that prices the and Texas. we And to talk in sure you earnings So market participate I’m in

any And rates? max on color withdrawal

pressurized Bcf, in past, fully see withdrawing publicly provided X.X we generally a as if as Oklahoma, have us don’t that you we’re Bcf I in could but know high the just day. X.X when

million the numbers, Texas in more they’re obviously Our smaller, again, that day pressurized. $XXX million so a you’re to caverns when $XXX are

much. Great. Thank you so

with Securities. Truist come question Tristan from Richardson Next will

morning. appreciate for the the I around all Good XXXX. assumptions commentary

Do ranges, the think any on race the just range? in range we to Just respect with for I think that’s of today? rigs wanted have about range a outcomes seen to Rockies, a of the should improvement previous question rigs to in guys follow-up we talked of Or you completions from state your need year. the just on current customers or the about directionally achieve to

of I way a $XX activity. the as as kind think levels the strip, at conversations were conversations crude and conversations taking have the talked we’ve it as the to activity Very that the in. again, customers original That’s to get environment. look stronger the are of we lot the with back amount recent with these place strengthening far of to to we of in starting commodity our baked in those remarks, $XX

this I way, because we comments around think will end, about upper environment current range the guess price current environment, in that’s the more if and us the trending if activity would do customers see holds. commodity believe that towards our we remarks bring at we So hold about it Terry’s the

you. Thank just the Sure. And then CapEx. on

talked incremental the potential rate. gap purely I million that Should current that. $XXX about of at least expansion? Creek you run bridge is spend guys Or can that and have the maybe think you to guide Bear talked have that new as the And previous guys range in million about kind talk in between a you just year think we a hypothetically? of you previous what’s embedded about $XXX quarters,

Sure.

the we million of just summer, that discussion in crude $XXX if million back put was the kind to made use, in So $XXs. when back $XXX was initially when in context the crude

which activity, more you assumption, a So a $XX lot $XX expect even to in. is built at level

there’s Creek you’re the million compression one X, think going footprint. So million capacity, pipes. and That’s a reduce part. Bear expansion that rest, you found not to only project example and $XXX emissions our little where $XXX probably over on interstate And another right, additional of provide that’s then we’ve that’s of opportunities, more yet if for number. reliability one replacement our

Belvieu down project. expand storage position. our That’s work a on Mont some doing to good We’re

also distribution direct We’re in to to expand few some our more customers. doing work network and a Belvieu connected get

is, each by themselves, are million. three there’s $XX them another So but of million, together those and $XXX million, them things, four had you of million, none $XX or $XX again, one

they’re So found opportunities. they’re projects, strong those we good projects. And return all

on So it. execute go to we’re going

Thank it. guys. you, appreciate I

with we Tonet on, Jeremy JPMorgan. moving have And

morning. Good

have that’s if forecast? curious time, ratio you any as far continues as your to who the there. little commodity dig the is over for wanted a prices guide to bit, that of more on – some kind be the that or thoughts or just you ratio quantify these might at side is of buildup here? in activity trying the kind do private GOR you of the into to improve least kind producers about potential feeling over improves if the current time, public When for increased how – activity, increasing how Just Just a think talked And hold side? get of

I those Chuck for both will let handle it question.

Yes, Jeremy.

GOR me So was mind. question to Give about don’t first question, thinking if more sorry, question. I your your the you one I’m time, first

Yes.

holding, far for here? trying as up. feel Just activity a increasing to just tick as who public the price or the is activity commodity more from there’s a be Is it get smaller, larger private, could or

a they hold some going couple said, the at time, it its a dapple, position to that obviously, that they’re No, crude XXXX you’ve mean, the say $XX combination. they I but of $XX for that run that of a Sure. of environment. we seen CapEx the public to some it’s said pending,

of – XX% rethinking question, So publics increased XXXX. year, of privates just it’s there. I in our up think in obviously. the far that the And in capitalized the year-over-year. a But GOR out large then the combination past they’re GOR And since as some the plus a little bit, has a slide, past point XX% as we

last significant pretty increases, So seeing particularly this XX%. year, that

So they’re it, pressures over think decline. about when rising as time you

So released it’s I to is well. implied producers more relative But as confirmed will rising. that say, trap XX% they And crude and rise. GOR for gas the us but year-over-year, it’s continue definitely to have at can’t this think of

Pretty significant for us. tailwind

as current opportunities, kind if CapEx here, outlined expect helpful. the Creek outlined the That’s things come to think you that Bear there’s of or these price Thanks. and holds Does if just, upside there. it. I fruition, Got would where these now, fall right about And you as out? guys CapEx If to include you commodity

included the number, is in of that of CapEx midpoint $XXX Creek Bear million.

Bear about about a The cost. to this that complete it. of it’s way labor is Jeremy, to of I’ll that and And the comment you Creek make The lot Bear incurred is we have Terry. Creek it’s capital equipment, it’s on that’s material, think two-thirds it’s only stuck, Xs

returns amount are investment And huge. to that small an the so incremental on Kevin is referring this

the seeing lot it. this address given makes of sense, it a activity, so it sense makes And specifically we’re in Dunn to County where

can’t just are, stress that I the so in completing economics compelling outstanding the are how project. how And economics enough

it. Got

opportunity up of that covers the that now a the higher you more And so it kind to said, budgeted being or of from CapEx as if as upside emerges, here maybe kind little production, that to cover able to clarify, just would move service CapEx bit you activity level?

just is It would the we spend most bit, efficient portfolio. talking capital which only move just that about move at in up. up just It point, a capital you’re the because well little connect would

Understood. That’s helpful.

you. Thank great. Okay,

bet. You

right. All

& Next Co., from Holt Bean. Pickering have the we Colton Tudor

morning. Good

levels. frame the just on to of that for differently, like declines below back or asked bit of a XXXX assume exit trajectory So to exit expected It the course thereafter? comments at does the circling some midpoint looks the Or the the just of and over QX guide year Can then you throughput. softer gathering rebounding the we’re year? falls, that entering

Up in very a we at the X.X% exited at good range. Bakken, right, level, XXXX

course, you and of in and QX, weather back-half February February. throughout effects here weather we’ve Of January, typically the see seen of primarily

of strong kind and throughout about equally the weather. the X QX again been for at of volumes dicey have think beginning QX So of is for the shape year, December always strong you very if the us

wider you anything process just and guide, on that in during to? GMP closed more else then Got gathered volumes a looks side, the XXXX. the it in volumes there’s in quarter Based on little actually offloading bit it. And the or between QX. like point gap to sticking Rockies Where

I missed I sorry. that. understand last the part. couldn’t I’m

Yes.

processing offloading Just third-party And that that the course some what then why exactly XXXX? interested of drove potentially over if gap were would the volumes in to Bakken? close or you

No. We weren’t offloading.

because on. was from can’t just I business what there didn’t – gap not frankly perspective, going you’re a see I it. I’m answer referencing So There nothing was nothing

normal gathered could have going just protect process. mean, I on, in versus fluctuation of be of course it it. kind So it would impacted the

Yes, just a than so was Understood. wider of one historical, it Appreciate the follow-up. it. bit little

right. All

Mizuho, come Moreen. question we Next will from Gabe have

can I’m everyone. so customers well from I your much two. just terms you be winterizing the last kind you here, week perspective, to about liability. it’s you then there’ll at just of for on overall, gas morning, there’s Canada, out some but look of And whether early charge clear of guys Good of gas in terms it’s assets, of conversations capacity pipeline days events storage think And portfolio the there’d on only kind of be or want wondering I do wondering those can with assets, think some whether your of pressure, freeze know offs, follow-up the just upper coming it’s or of rates in where you do processing some services. plant as the maybe the you

winterize the we’ve compression. in plants, packages for is packages purchased this Williston, tracing got our mean, Chuck. equipment I for we’ve Arctic Gabe, we obviously our everything. In heat purchased

business utilization, don’t It’s and and is amazing and a the and for the So just there still high freezes very down frankly value to wellheads very course rarely proposition in out have are frankly, seen and this our a Bakken. assets. XX normal of Oklahoma we running We’ve people Texas, incredible. minus is that’s And come pipelines. offline. What producers on processors these

and that service. willing spend is are going somebody small see winterize say really a pay forward, look extra people might event, to to costs for ahead percentage and and you for whatever that be in and I’d If fact if go those going at

keeping whether entire time available did equipment a field all folks and needed that job, Gabe, fantastic this think ran to is is would I ran reliable, last compression, you when mean, well. they pipeline, they were the it assets several incredibly Kevin. was our the thing they run, The add and dehydration, virtually and only our we uninterrupted. up the I weeks, pipeline about virtually performed assets those

respond we lot availability should mid-continent. – really, – pipeline was had having which a Our processing do of plants been having the about even only think, extremely the the disruptions conversation too, with there’s power, ran that. when do was – that the could obviously lost assets. and how we and power market Really there was in But about assets all and I storage when well we

services need them. assets, integrated We’re to always that our provide we opportunities if be those those can of looking for And some additional – expand some footprint. there can the expand we with we’ll customers

sort follow-up on – appreciate in just could comments I if DAPL remarks. of the maybe then And the opening I initial the you. Thank Great.

having or warm Creek put Elk out Just a to be willing I I was on producers. is warm follow-up CapEx would at? conversion, conversations ever take kind a not be don’t on wondering converting you’d something potentially to a figure you as that, of stab And with that recall how that

Gabe think this I is you referred – Yes, Sheridan.

I see think I think oil to on don’t Elk the at you really good Creek crude Creek referring to the system. system a Right this in time. are a to cards that continue Elk volumes on we now conversion is NGLs conversion

through the pre-winter the already out performed of this Bakken system, NGL amount. dropped it’s volume time. Basin level best back this their on whole February, almost or least that regions as all the fact, the And said, In Chuck to pre-storm at

as customers, time. we we case a of don’t don’t oil going to producers and them think convert crude I see down if really this the DAPL to talking DAPL anticipation are And go pipelines with other see volumes going at rail right their they down a securing in would on impact Elk terminals. talked to an of where So we’re space the then on a system, Creek now and lot up to there,

they’re And long-term capacity Sheridan, crude then and line conversion. is underwrite the crude or to up this for to hesitant sign

So I a as think that’s well. factor

a for outs that’s up today. viable already system long-term Yes, sign mean, when the I they main this factor. they have to want convert to deal don’t

it. Got Thanks, everyone.

Salisbury will come Jean from with Bernstein. Next question Ann

flared the happen that did all? see needing morning. gas to on wedge you’re it you to is of as acreage get the you represent Good it On capture to all? Slide And your it? do it level would capture that Hi. XX, what you What calling opportunity, if for capture realistic flaring

more lot customers that a to the into lower. gas larger capture zero. with they’d our some that gas conversations of number We’ve that the having we the single we’re drive A digits, percentages of to even ones, we that we capture Even still well there’s Clearly, room be flaring. think Kevin. of more now, this especially lot. like think some that’s can down then gotten Jean, the coming question – with

in total, structured. done of ultimately we’re again, – customers. to that kind many from going the to of the can as some with but us, that perspective Probably, some got wanting now low capture, emissions and as customers zero? a perspective, go way, not. on way it conversations and Now changes some In of it working just those with disruptions, operational et variety But from from number the in bringing encountering the equipment cetera, would is we’ve require we the just be – wellhead is does value possibly require work together a With an we can.

Great. Can how It some the medium your one suggesting try up some dominant of Thank erode it could to of you. like you see to here challenges system. mid-con own Bluestem system. to connect may much kind business? seems comment pressure transfer you and NGL on may the term energy production be and they then of And their there starting enables NGL that

about now the about energy right years our well tied are is we transfer say volumes the the under which volumes would them. We left on very system for – or secured. contract up contracts in immediate system I had the what our on many long-term that contracts, our enabled are specifically future on talk Mid-Continent, think Well, terminations the deal don’t that

you. Thank Okay.

All right.

we Global Securities. Next have Seaport Sunil Sibal with

today. thanks a can I call hear Yes. Hi. Good you on had all the guys. clarity morning, And just the for – yes, me? clarification

Yes.

remain WTI in case in was were XXXX, to XXXX. to the and sensitivity million sometime $XX on we the environment. shut you if were in characterize would was say down $XX how DAPL down question April at that I my price DAPL was impact curious, $XX shut So for you provided in

be in going down But haven’t a not because what very think this that speculate you dependent commodity little it to – approvals. to gets we could into ultimately price do you’re if mean, it’s about EIS maybe They’re wanted at even But it’s that’s be into type these I rail well of trying that believe again, number again, I to they’ll big would going proper successful, is the the gotten going beyond be to a prices. process. environment get and to if continues if you we be again, easements Well, would happen on think that. extrapolation XXXX. shut they to be attractive permit

the Got of quarter. question you kind expansion there for original to it’s a Creek season second it. on the – MVC sorry, in fourth was that ahead. And any completed on the curious, my tied was or go hole Then capacity also? Elk I MVC expanded the is the then was just commitments

a calls Creek of us. when things can think the XXX,XXX on all move to that our answer we preemptive able ample volume expansion Bakken that to as we Elk is did Elk well, ethane on stuff, capacity Creek. for if Elk is ensures the And I OBDL bring Creek is and that mentioned still of to we the did be have needed the why expanding that as out off was of our couple to

Thanks. it. Got Okay.

then Michael on, And All right. have Lapides moving we with Goldman Sachs.

guys, question. you Hey thank my for taking

between are dividend seems. cash Just cash end of you real it after flow new high about quick kind at or thinking growth de-leveraging the dividend the after between guidance, to positive flows allocating you’re thinking growth incremental How and the free your high projects and the of between level. flow about paying balance the cash down between using path How your debt.

that want customer’s that is that going project a is – we that we I that sure make we to would if make Well, to our good serve what we’re about have needs, investment. going say that Mike, always have to

here smaller kind have existing adding additive any really system in horizon plans got capital the near the we’re larger As to our on our more don’t Kevin mentioned, around. It’s of to We projects that we’ve future. system.

free the to it’s the in and And nothing level of to these commodity reduction at track. do you’re debt go this here accelerate. hold to So near-term prices going on that plan but see de-leveraging bulk is right our flow cash

Got it. Thank you, guys. Much appreciated.

Mike. Thanks,

right. going Bank our everyone from last of Walker America. to is come with Derek like question And looks All

Hi, guys. Can you hear me?

Yes.

one. the on just levered Yes, it. Got

– that what’s projects? incremental Is times Is your systems? it kind any growth Just more just hitting times, to leverage existing growth wanted the color provide your going – of operating it get in the you X.X have in can to X be into the you Just confidence was number. there kind of X.X versus helpful. would I

Well, our X cash us see from is take X.X standpoint. us is be reduction the going debt that growth flow going I to we that on definitely that to think obviously system and to and produce going to help what’s continued a

it that And But we’ve over we we’ll continued going fact within both of system that capacity, leverage time. growth great the So lots forward. much base, got our on our it’s so the operating do from pipes we the these to coin. that try of sides have so see asset headroom have

plateauing on kind Got of about, you of adding I mid-continent or pretty think potential, one year with And then of Do maybe do connected XXXX the mid-continent kind you the this of that XXXX? actually think out about think some you talks into it. activity. well coming talked I just about see kind customers’ how

had move XXXX, we’ve through we think conversation of From lot that. a a as activity and well and connect I about perspective

sustain. in through will going see As believe then and going of still up you I still to that move a you’ll of I activity drilling million a this, $XX locations And mean, we’re a you’re activity. XXXX. see you’re inventory environment sitting to debt price. XXXX, into a increase of think an to sustained There’s commodity that in lot I there if it’s sitting million type left, be function lot $XX in if

obviously particularly about and is you’ve the up come – driver mean, are of NGLs for liquid. thing, going nat gas gas we the Kevin, we crude values big and seen for there. I all activity come prices, And fundamentally a for other natural think price. it’s as vortex fundamental not just side natural certainly out as polar the stronger higher to see backdrop a the this I we’re gas through

in those for Oklahoma. So important will drivers be particularly also producers,

then mid-con, for I Yes, [indiscernible] last I in of Williston, kind definitely think recovery, mentioned think in could I some And there but volatility. it. think be maybe me. guide Got some one

think you throughout year? recovery the do about the guess, So ethane I how

in feel facilities second a the we’ll of and recovery for gas. year a we of recovery to bit mid-continent the we do gone offline we what lot see petrochemical in in year. is some loss of little what February, Well, the this see the half more the now probably see have maybe due Obviously, ethane ethane power

But half of a the and of starting lot out little system. across are the ethylene fundamentals lumpy, petrochemical very gas a it industry back, this back an as very our it see amount we price we did come and run as more of year, the be other propylene we of The are we do the now, February, Ironically, ethane which very rates. high. even to side weighted get we in these the ethane see in the drop today, at throughout come back think for to So recovery will good plants on, year. of going towards right mid-continent. they’re see high the And as rejection prices increased

which upside the more more we’ll the to first our guidance. ethane think of us of we So would year, recovery potentially see in half the drive

we’re hurricane the all recovery complete that. So through last from like year, impact

We’re up just them storm. through now after all that get to back the piece and got

the I Great. guys. time. it, for appreciate Thanks

or like turn looks session like that’ll to back everyone to Q&A additional I’d today. that conclude right. any All closing for remarks. Andrew our And floor the

Thank Greg. Okay. you,

in conference at Our April. We’ll good us provide in a we have details you XXXX the week. April later Thank we for quiet period of for extends release and when close earnings quarter until a books joining later the and call first our starts date. for

folks, And for us. conclude appreciate once again, our do you joining call today. that does We

You may now disconnect.