ONEOK (OKE) 28 Apr 212021 Q1 Earnings call transcript

Good day and welcome to the First Quarter 2021 ONEOK Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Andrew Ziola. Please go ahead sir.

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

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

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

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

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

to yesterday. our on guidance, to storm improve want to year our base which outlook did continues in and the weather-related President, Swords, Corporate we I first increase today's Senior Joining Gas. provide Executive we the Financial President, Walt Burdick, Sheridan Natural quarter, compared the and significant system Senior fourth winter are Operating providing Affairs; questions Vice the momentum challenges supporting earnings call the with our Gas were our are for President Chief Vice Kelley, and Chuck and Even announced months. Liquids; Volumes Also business Vice warmer that positive, Uri increased operating results Hulse, your and positive is answer solid impact quarter's me available to first Chief us earnings quarter. But and ONEOK's Kevin without Natural financial Executive results quarter on Officer Officer. enter while as Strategy operational with the highlight. Vice President,

assets running. of work at enabled the and the employees faced weatherized our to with assets event were to were our necessary and to our during our challenges needed on-site or of provide for the extraordinary most. homes, Many their Operations limited gas utilities interruptions. continued Our employees' when own, we electric were operate meet still of but extreme critical teams conditions including extreme with essential adjustments conditions, natural that weather electricity to ONEOK and ensured keep our preparation and it before needs very few no running prepared worked us customers, weather power employees natural hard NGLs to gas make Despite these and water their -- winter own or including plants. heat, help

quarter. assets increased reliable natural to segment's were Our needs was Despite more quarter. natural natural to the in will solid meet for gas and provide EBITDA operations, stable and The particularly region volumes address volume during earnings. strength in storage during demand service gas. helps a and Basin gas our gas and base Kevin us continues providing to Mountain the our details Williston evident continue to weather-related outperform expectations pipeline the adjusted across in natural contributed and moment. well-positioned our ability impacts NGL business provide Rocky The higher with

commodity yesterday's prices. drilled, and to As rising assets a XXXX. oil XXXX growth to well opportunities activity compared and now more raised expectations on from and increasing inventory, gas The natural dependent rig in said gas XXXX with increasing areas. unique to not I've ratios ethane robust demand. increased earnings the and With earnings or available investment for uncompleted ONEOK The operating the XX% adjusted Williston EBITDA earnings is ONEOK's in opportunity increased key than are we significant us announcement, Basin growth strategic in capture is growth without for before, need but expect our of for

higher positive Dakota producer XXXX to setting as latest commodity access potential prices shutdown provide range plans impact producer strengthening from our are includes the also expectations include and the a markets of activity, up view have and guidance further our momentum drilling enhanced the and exit higher of we year. and Our forecasts pipeline. energy earnings Increasing the

As growth when appears EBITDA we to in barrel you high $XX per revised impact price the to for range, to approximately look guidance. in million $XX single reasonable low adjust XXXX, the double-digit toward XXXX weather $XX

for also our of We continue drivers look businesses. to our opportunities traditional growth outside to enhance

create, while expect role under sourcing research longer carbon Opportunities continue complement operations They're as investments and to evaluation and projects, our we and transport events our we'll extensive potential Demand have as further of helping weather pandemic renewable role in on the end-use remain other strengthening lead capital for include sustainability gas these we opportunities in safer NGLs enhancing opportunities we focusing us assets, And further and transportation as healthier further assets a approach disciplined storage highlighted always, energy midstream products in lives. for renewables play economy. such Our to they teams remain and low-carbon natural greenhouse vital to products capture and The help which will compression recent a many the all play electrification our expertise. importance and the hydrogen develop opportunities. of storage. and actively emissions, strong. gas lower vital profitability, to the that term the

to to to transport products ultimate key responsibly markets use. is their ability these Our end and safely

in Walt will the once I guidance. proved that, our again conditions. our call updated XXXX the discuss most and to to performance that turn financial With over extreme quarter even This do ability to

the $XXX to Total and Uri. gas slightly, guidance $X.X and first capital segment we ethane Bear late includes our activity fourth gas incorporating to $XXX the the to gathering natural more a decrease maintenance expectations this the in commodity plant of due midpoint with this to increased to expansion At segment income pipeline increasing income expenditures liquids and capital demand for range volumes XXXX primarily for EBITDA and yesterday's quarter Creek quarter. natural we Storm EBITDA XX% earnings the of low-cost the year. primarily the quarter now announcement, of the provided unchanged or than II higher level, complete $X.XX We including producer an adjusted XX% guidance of of $X.XX remain field compared midpoint capital Terry. share adjusted lower segments, Winter and X% adjusted growth and billion the prices you, in and per Arbuckle This XXXX compared EBITDA and from gas processing results million, decreased in expectations first a reduced the from XXXX. million Thank net natural second original increased billion and for earnings in a Adjusted quarter. per due related our EBITDA guidance associated guidance and share net pipeline XXXX year February. expansion of our With expect with original infrastructure

quarter performance. ONEOK's income $XXX first XXXX our million of overview brief totaled first or $X.XX per a net financial quarter share. Now

a First quarter a more increase quarter the a with flow year-over-year adjusted increase Distributable the increase with $XXX increase compared than was XXXX. EBITDA of totaled and fourth quarter, year-over-year XX% million XX% and first $XXX compared XXXX. the a XX% million, fourth XX% cash in quarter

coverage dividend flow distributable we nearly cash quarter of during of more quarter. $XXX paid excess than million generated First and in times the dividends was X.X

the end X.XX more on than our was at no facility debt the previous net -- ended accelerate a provided Directors first Board to rate of Earlier billion per basis on and of of the the the the quarter XXXX unchanged this of Our million an compared $X.X cash. on credit XXXX. basis to borrowings March $XXX times helped X.X declared quarter with We EBITDA share $X.XXX our quarter earnings for Healthy $X.XX and an run momentum annualized XX, month, in times dividend with annualized or from quarter. efforts. deleveraging first

expectations Terry to flared oil Basin capture our and the and turn ratios closer mentioned, the call strong ethane continue this look year. now operations. over business increase I'll gas and support activity, capacity ample As systems our our in producer the for at increasing opportunity and to increasing demand continued for base a to gas Kevin on Williston financial

Uri freeze-offs, Gulf increased business volumes February. Thank regions presented Mid-Continent Coast all our cost segments of in to challenges the and quarter. across impacted three facility Winter Storm electricity outages customer the you, especially Permian well during in operations and Reduced due Walt.

and to quarter volume Volumes in weather returned with helped gas in impacts. meet processing However, NGL natural extreme Mountain our the gas and raw feed the volumes following ability the during to operations quickly increased region than the period offset NGLs first our natural across our more for Rocky exceeding XXXX demand throughput March, averages.

The storm customers. provided take our closer assets of critical at each for Gas the and and starting withdrawals storage Let's segment. safe transportation Pipelines operations reliable our with services storage the look and our through of pipeline Natural businesses, a

meet help into X.X we inventory we sold the previously in compares X.X the the of This first of we demand. in in addition, XXXX. XXXX which Bcf natural first quarter to In gas, the market quarter increased that sold with Bcf held

conditions extreme day average incremental Texas the the we've Bcf ability Our of volumes the by Winter more additional the the quarter and services. during our long-term XXXX quarter these Uri. XX,XXX impacts to storage West weather vital received This increased market-connected System-wide with assets. an pipelines volume largest Since highlights Coast Natural quarter regions. despite barrels capacity open season of earnings transportation and initiated from morning storage storage the Gulf one and interest at storage capacity approximately on of impact of Permian Mid-Continent reliable our increased value system. reduced with assets in per our first customers XXXX, Liquids and firm storm, In seeking the than provide of segment, an service compared fourth the from for throughout importance Storm Gas the were we

first and commodity meet wider opportunities primarily impacts. and optimization and related activities higher NGL Belvieu pipeline prices utilize in marketing market cost-related integrated our During needs, presented assets Mont quarter, Conway prices, segment spreads the and increased helping partially storage volume offset to to to between the and to

despite quarter from increased the fourth impact First Uri. and quarter an X% Winter Mountain raw with throughput XXXX of year-over-year, region barrel compared from Storm the day XX% per Rocky XX,XXX feed

more per volumes today, we XXX,XXX have As region than from the day. sit barrels reached

Rocky and the at in Belvieu basis, the talked we increased system producer to while recovery some On were incented premium incent into market XXXX to compared collecting netbacks on ethane our ethane we a During quarter, quarter difference a gas plants as short-term increasing several purchasing the natural volumes in we Mont system. with volumes our and about ethane selling ethane the gas, it by value past. have the able recovery, region on NGL fourth which Mountain at the

region saw to in the expect to continue recovery incentivize we Economics the ethane region recovery included ethane in facility increased Basin, ethane year, Overall, is not provided guidance. region throughout for regional to quarter. Uri, also which Mid-Continent in the the partial gas in the our the remainder related the In petrochemical from quarter. Continued demand during will of is and outages Winter and we the ethane opportunity included and natural rejection ethane in pricing Storm our reduced Permian on the updated recovery depend guidance. first

remains petrochemical EBITDA for recovered the regions with XXX,XXX region, at $XXX recovery impacts, We storm February an that in Mountain half in our provide expect be both to an in ethane the second on full a annual Rockies return in In XXXX. full back per system adjusted Permian rates. opportunity can would barrels the continue day. and demand Rocky recovery recovery full Mid-Continent approximately million Discretionary the returns, following ramping of near ethane up, Basin as to

fluctuate, gas incentivized will Our at time natural ethane potential recovery regional and given on either opportunity for based in pricing, recovery. region economics any

segment. feet the a level increased the in volumes Moving we exceeded gas In per weather activity. to increased quarter year-over-year, Rocky without Mountain March, processing region, processed can even cubic gathering February. maintain volumes first colder-than-normal In despite day, X.X billion and on natural producer X%

acreage to able of additional near in Our our wells new in expect to a currently this, the first ability inventory the and second been in will XX activity producers we to plant there to increase. activity guidance. guidance Basin XXXX, producers our a indications on XXX resumed producer expansion the basin, half this natural needed fourth the very particularly M&A now the gas Creek on be in in XXXX uncompleted our continues year. second levels Bcf operating and flat the Mountain are large Williston basin, volume significant completion dedicated crews to uncompleted capture the have in XXX of are construction on acreage, of for crews expectations. some And completion rigs with activity processing as complete in be currently our processing year. in and and of region present and our and or approximately weather. point completion the completion of this on the with upside large will in term, cases production quarter, gas X.X XXX to our have likely rising in eight additional oil developed third hold eight in to quarter, highlighted approximately Dunn the In crews not year. our the recent to our activity key from plans our be basin of increase Rocky additional response on it volumes the of day XX drilled, no basin, connect in more dedicated There drilling but be. to capacity up but than has increasing with the capital, with expect inventory minimal acreage may drivers connected picks connects drilled, well producer activity than are per flared we've wells Based Bear to more complete, we'll in acreage. well Once or on our several acreage County. we as we grow a quarter and Any that Recent wells but ratios gas, schedules, connect reach expect improved With would operating In on basin-wide

inventory inventory into producers rigs gets to tailwinds we DUC bring to we the current providing down, the As move worked to expect replenish XXXX. as basin the levels, back

XXX approximately assume segment's rate. and quarter, the per rate remained cubic the guidance fee flaring day our XX fee Mid-Continent feet mix driving rate average from Mountain high to per remained during continued quarter per Winter XXXX. a opportunity River day does per close now end the Rocky $X to region expect for We towards to volumes, February, average acreage, approximately $X.XX our of by or fourth for million more on for natural feet shift reduce this not quarter, causing increasing XXXX The the system guidance in as activity reduced bring the and rate the help us Basin. of cubic XXXX segment's presenting of range. to in to flaring higher our million processing $X.XX volumes Uri The the the Powder gas gathering Storm basin. fee Mid-Continent average Additionally, the the onto average unchanged dedicated volume further producer MMBtu levels the MMBtu

in attention, added However, commodity increasing both as areas those an and XXXX. prices areas concludes our activity have have my into received momentum that volume to Terry be Any provide remarks. expectations tailwind would strengthened. XXXX

in stability, and to necessary responsibly trending well our in challenging, business, for Enhancing us needs participating Thanks strength overview customers' transition disciplined Good low-carbon remain XXXX. quarter has outlook a a of financial our economy upward and to for on focus serving encouraging of rest our for the and matters But safely the positioned our we but Kevin. business. With be volumes that our approach a in of continues the base our and continue sustainability to long-term what most focus. our innovation improve.

operating over and the past showcased our quarter first the these many ready done we focus look that this many to more we in and areas quarter Thank of beyond. for and on now have this and Operator, and have for great forward employees focus are you safely year all to things remainder questions. to customer The of to needs you continue responsibly. year

Thank comes Blum, you. from Instructions] first question Fargo. Michael [Operator Our Wells

everyone. morning, Good Thanks.

Michael. morning, Good

but I out it A to $X.XX quarter of Bakken not a last the big fall T&F did $X.XX. versus it's couple by the rate $X.XX me. mean questions for of from deal, One,

that ethane there Just to the that know is there that -- recovery wanted we else if was about? incentivization incentivized be should to -- has anything thinking do Or with something program?

Michael, this is Sheridan.

we of of received incentivized The the that right. the those ethane You're rate amount was out barrels. the in that lower Bakken for to was due the average tick down and to come rate

on question Bakken? then in missed today I acreage rigs I are apologize this, And how many running your Great. second the if

Michael our this We've XX of is today. acreage on the got basin the eight in rigs Chuck.

you much. Thank Great. very

comes question from next Our JPMorgan. Jeremy Tonet,

morning This on the Bakken here outlook. on is guys. to Maybe [ph] for start just James Hey, Jeremy. good wanted

You the and mentioned the here. unchanged guidance acreage completion XXX DUCs the on G&P

into you and looking year-end? expect to just maybe XQ mentioned So of for in out where year, the inventory the see you cadence by completion meet safe to DUC also XQ just for you completion out quarters And it activity remainder but of kind with maybe first completed assume average remaining an ramp, only a the well the here is the see guide? XX to quarter wells in the

here the we're in a significant literally yes -- having absolutely. remarks, Kevin these And old. increase we XXX producers days but with just team QX conversations a completions. feel on we dependent our the still always Chuck in and The in step-up is about really you said the his that, James. sizable Like This little guidance. are QX we a and weeks we good of weather think couple and anticipate expect as is pretty QX. a about

yes see need So it would -- in pickup summer. the a we'll

the still crude said pricing do. this to DAPL What is of lot James we QX XX back in had and a to what in completed that would done planning some add what going but QX of over lot was Kevin Chuck. uncertainty was the And producers stability I a is, of

we're are and good as QX here So QX extremely Kevin these starting in into anticipate we strong. the and didn't said, QX, conversations. it already ramp recent certainly will But is be seeing

if pipeline just maybe there looking dollar set set? there? a have kind to looked still are I you emissions what the have ESG initial across you days. obviously, then -- your is, allocated there. color stages maybe reduce good. And guys Or is opportunities appreciate gas guys amount in you nat you And these footprint, emissions? carbon Sounds that have at And there yet? And the with of topical project

James, Yes, is Terry. this

remained in footprint in certainly, years have last focused So across of in in particular impact gas, our our asset as over reducing very not the the couple we liquids well. natural but and years emissions just

focus terms being things emissions, gas-fired remains looking renewable needle compression, types be compression that us. consume that That's gas of can to greenhouse position or in can big key then electrics, The electrification be And movers our consume we're that focus. a like -- of in to a so of power. things converted reducing key at natural a for which

got have We've of operating big We the Oklahoma. Williston of Basin. compression units down have also done that. particularly, some a in today, lot some electric But in we

know and to our continue of how do compression. expect So to we we steadily it electric increase to fleet

of And So team key on on is taking set that's skill obviously we advantage or things pipeline focus. front lot our the have. working processing and a of transition advantage other the energy the of that expertise capability taking a renewables

can it kind Kevin, So nutshell. to that's of that? a in anything add you

No.

we I on work some guess just not on also capital as have as front, sequestration as the some doing the front capital, compression carbon but allocated we're yes, far well.

So we've started amount as in we're capital we forward, just to a But up. allocated as capital capital not getting that some It's move we expect meaningful huge pick there. this. of

that sense. that generate They've reasonable on make economic is -- sustainable we emphasis area key return. of in a the or got sustainability return a to the got we're think to they've considering projects I work that

Got appreciate that. makes That it. sense. I

XXXX? you in. you trending sneak but have I you can any if Just guys share you higher, on color Do ratios for gas/oil or is see detail a there? mentioned can just last share where post more share know, you I you there one can can number one me

No.

off. the is that's years four no the I the percent -- I information believe provide to something XX-plus that. the have think is over trend the of what do thing go over We it happened last back just going that's the like over time. to to or And taper we reason last

the over year. Yes, here just XX% it's past in increased

in that see can You chart. our

Got it. it there. I will Thanks for leave questions.

James. Thanks,

comes question next from Gershuni, Our Shneur Instructions] UBS. [Operator

Hi. our Thanks everyone. for today. Good taking morning, questions

envelope single-digits was made focus completions on of, you're, and the that that around previous And kind back by Just talked have of wanted I intimating questions about grow $X.X remarks answers of of can your towards I momentum towards -- the momentum ex-storm wondering some guess, bit. like you just about low billion. if end talk the sounds Terry prepared kind can about year of, of building your the in a the double-digit. the high to to of the that forth. sort the end you little or so And year. I that you XXXX

with since conversations time? the coming the XXs the respect to oil related NGL some they So is But recoveries gas/oil in with and kind it understand strictly the momentum how Is changed from? recoveries? some XXXX. how that evolve for of producers cadence Like with Or have is now to where of February?

He word. Well, he Because Shneur, answer I'm his momentum. that Kevin him remarks, going in that he question. uses mentions that let to word used

at customers, it's not with No, customers Terry. Shneur our Thanks, work just gives and increasing basin just us as to but we in more anticipate with prices seen The that up. to volumes the a Conversations generate to ratio nice those continue oil that in basins. all you're the across tick the stabilize see activity. G&P their returns team mentioned. We've most going appear It's all every increasing gas Bakken his confidence we're things Clearly, you that fantastic in. Sheridan level. customers can that here

come them. going down rate and Well, we then rigs see expect inventory back and well that producers lot it have work their And declines rigs? see factors they're and a DUC conversations of we'll the going particularly inventory, the as to of into a as Bakken, we go in lot's then conversations to I a gets So with probably the is just key DUC know think the our as first, they're that. been to normalized written more I the -- that note are work where based a there's about back to with on

increase back a provide reasons think So the year, that see rigs. And the all go and in necessarily not XXXX. but as are in half of an will momentum we up we crews you into the completion in tick why those will

in The to the providing it And it seeing add commodity the just recovery in got see Gulf of -- a And we just space here from worldwide prices the certainly and strong, that pet in Kevin's plants is lot only about new weather. not operation's chem when petrochemical thing, due got are think we're built we've seen Coast, momentum restore. but pandemic demand. us. remarks hammered across seeing just I'd the to you But obviously, the pet those also we've the that's relatively also chem hammered being that global pick back up space. We're to

chem part of So, signs big of story part as it's our why letting ethane pet a showing that's certainly, XXXX story. we of demand certainly think and our up and is big a beyond. And no about

the I about the remarks recovery in we expand conversation also from prepared Rocky on really Mountains. color if there. I the can wondering, ethane was the appreciate

nature? on in Or or whether three, there potential, are are nine, more you you it day-to-day signing purchasing kind you smaller I is outlined million is And not as that currently Obviously, some how us incentives through some the kind described premium XX-month your the of six, selling occurring? I'm decision just would of you potential that I term it smaller day-to-day stated you you like contracts this can the today. be momentum type guidance is less in walk this be upside could you're of just wondering, it's from a XXX or term sort in deals? You some contract -- the was if providing trying Belvieu. this? understand, were think to but so Mont than where a in

Shneur, this is Sheridan.

this markets. are to doing to spread between most able be day-to-day We the capture the

really that we period shut the ethane out buy in time. down February, incentive program during that and gas we So spiked of of where the not did high then price saw

day-to-day So that, it we can really is a make. decision

Bakken XXX,XXX. price and of Mont price brought regional time. We this make looking in both ethane the during we the of the the out gas of small to a ethane didn't only we're And at those So whole out portion decisions. Belvieu period bring in

the decision? any doing all? to going at deals in this just producers to is interested of Or be Are a smaller Okay. day-to-day continue some term

gas the and right Really get capture of spread the widen. in that to get better instead full lock longer lock sell -- it the as for we we'd -- that term, by we served doing now to we to going we buy see capture what are it because price think we we we think have day-to-day ethane. on we it spread for what continue to that it and is a spread we If in to

we'd on a at this do day-to-day So rather basis it time.

very Really All appreciate right. much Perfect. the today. Thank you color guys.

you. Thank

comes Cho, question from Our next Barclays. Christine

kind to you're $XX what how your XXXX in $XX about Mid-Con in what you guys on the different to for Thank Like, versus can in in a -- XXXX the Permian you. I XXXX more price increased of that and curious color you're thinking the context the Permian? looks environment? Just versus actually wanted also you activity touch the especially not say basins? Bakken how anticipating growth upon of comments. Mid-Con Is but an in any results, there provide that

don't Christine, this think going We've the there's feel We've is -- of well. we -- But basin. Kevin. it's -- a no not we when pretty an going have lot but at growth We there Bakken. pick levels seen going you a because to from I footprint, a be more outlook. mean, I there. that Permian. we're as baked up in this good perspective, growth our to great point about strong at look to And -- activity don't got it's think, in position a Mid-Continent provide to lot the clearly, it's color

prepared DUC also know that, able a you your the McKenzie your then, wells Or that a to is seeing a Bear And to plants sure there. but if wanted there remarks in talked were I And County necessary? upon currently lot building you flaring already? in processed Dunn been I volumes producers you or inventory? I are of I activity. Okay. know big know about those have I And have move plant touch Creek. there other the be gas at to full just wasn't there if some

Christine, built talked more When there, that one the No. We've first than Kevin. that our plan. isolated about this is geographically other facilities. was we

our So But this closely ability that of of point. full infrastructure also field to when their timing near timing move the amount get gas we to to to the to necessary plants. have are But align around gas but infrastructure just at to gather is producers it us a some of the other working not plant to with small the plant. effectively the plant

the ConocoPhillips and So gas they the extremely and there closely Continental are coordinating mentioned down large positions we've in us down timing, flare XTO, so in on in don't large we that acreage producers four with there. Marathon

be So when should volumes we comes on? still in stair-step, that slow expect like kind Or of a to more plant is going a it ramp?

on concerned way again, reduce to the the day as yes, mean little possible. you're nowadays the bring be massive plant see as as not are think I we But step Because a to I comes producers it occurring up. they some the and a want pads. will extremely lot is flaring of much all lumpy, going change developments

of and us be And is tight our among capacity coordination so timing available. the will very the the customers on when

Got you. it. Thank

Crédit Dounis, next question comes Our Suisse. from Spiro

Creek just being II about Two first official now. guys. CapEx, Bear on thinking questions morning for you Hey, one

already think I the that original range. in CapEx contemplated was

that if end towards curious push what get higher of just high that actually the you up sort of are the you that drivers And would range? the not, does point? to So,

The CapEx, which pretty that got segments. things routine maintenance look the Kevin. more small in field the infrastructure would in mean of the things growth, that static. our the projects really activity. Bear and you've cap you Yes. well is is that included is if Creek this I II The it And get and is Creek some which is are facility Bear end and to then, higher connects forecast. Spiro, other rest related like at you

high-return is well The connect need the That's higher of extent, as some kind the increased far is capital over it rest to activity would end. And be that comes so as see take the of we going course And and capital. just more the to of the towards year. standard we timing you sooner. what spent how that would

like like you Got sounds trends seeing lot XXXX, continuation are growth won't you're require it. the XXXX. of guys in the helpful. in CapEx. It CapEx a sounds it lot a of with Sticking contemplating of That's much a very

below these trajectory to is So it as with CapEx, I we more for next not or line think maybe fair the in levels? year less if XXXX about even assume into guess,

We thing expansion about have capacity talked on about Elk perspective. processing an in to key to day. our the we about The the NGL a is Creek from remarks, got legacy capacity look West we'll assets. combined expansion or the We on the minor the our II. we've with that forward Texas. me Bakken always to bring XXX,XXX spend got available line, a could our have in capacity Arbuckle we We up barrels the we use. OPPL We've capital recently it still as Yes. Bakken completed referenced leverage, operating across in And

So we in grow can EBITDA our significant uptick capital. a without

you're add like XXXX, or of talking more lines it So going line if that. something long-haul more XXXX about we're you're in of that yes, versus to not have in of another probably to going think pipeline to

the an point sort place that's hang of this you that have available excess or this for with let's Spiro, second. this good point. expend Kevin type number think with project in could a EBITDA I four segues business lot perspective that the we see a fact of is a me next make billion heck built in on $X space. any to backbone to infrastructure for NGL I without in type that all to mean from major without well hit be the mean transmission three the into an environment right of of needing I pricing having that years a capital. capacity a of pretty important

So trying rest this that think of to to or that mean I that built that lot is to I major headroom of concept on stuff place we in -- that about already is and that keep the routine understand expands our market available a we the infrastructure capacity smaller growth. express concept business

we position. in kind In $X right -- a see and environment, of puts mean a here. EBITDA the that's pricing billion us what could levels, So I right number activity

Okay, appreciate Terry. those comments Thanks Kevin.

Sure.

Richardson, question Tristan Trust from comes next Our Securities.

completion appreciate Hey, commentary good on -- thinking the about all really I guys. you're seeing morning activity and what XXXX. for

XXX an as XXXX? Just well -- as rig the about that could kind well see year, Or for this talking the should a year as rig on type of connects you're mark potential type that more that early having a accelerate this noted event? XXXX, see on of throughout is half? you're is as above additions. of for something start you second exiting the to of we of additions you well Are see -- XXXX And connects we think based conversations

the activity. Tristan spring you the showing this of to would to It's activity half rigs second rig start here I'd anticipate certainly is a and start summer. of that see beginning end say -- Chuck. toward we definitely would up the

As producers to Kevin there year, We've referenced good going they we're their than the work up. told that obviously. our do less -- crews rigs about connects got gone inventory completion through the into about we as DUC number. of that in And XXX-plus see that we've hitting completion to And the the pretty one excited well then indicator eight basin. think bring ramp have look the and earlier, And and we next up for right that you certainly they're crews year; balance in like from no midyear now. traditionally first two with have us that

behind into and going getting tailwinds really of specifics, next this us think have without XXXX a we're to into year. we going So, year lot

That's helpful. recovery $XXX recovery? to question. at to opportunity ethane. where sort a sort Or to full today moving rejection Kevin million full comment go your scenario? wanted respect of to the I a in to of And that with just then you're EBITDA full is potential Is that clarification in

just the worth that's No, XX,XXX $XXX of -- coming we million of Rockies provided volume ever barrels the out is about day of that information a EBITDA. previously

if just at it worth ethane online of million a XXX,XXX the $XXX year. rates all that's barrels there EBITDA full of came math So, day be a of would doing

guys Okay, it. great. Appreciate Super helpful. much. very you Thank

You bet.

Bernstein. Salisbury, Our next question comes Jean from Ann

that Hi, morning. the is prior flaring ticked the that up gas suggest bit actually other some same the I about like trend one more? may could due a first does questions on we it be from declining a have slide had hitting good somewhere that question. two But XX, looks February a weather constraint in flaring creep that to we're and or reason? months. Was one-off that Or seen up it

and much That to this is was now, then of hard areas little bit that of indication but it get pretty it's Jean are Yes, flaring increased Ann, to not to weather in not little in is due drilling the a some forthcoming basin. an -- right a Chuck.

Cool. gas basin questions like something Okay. second widening the the there? My about ethane from sort guess basis like gas the quarter. there Then are more that I temporary or my of incented It's were structural question gradually also Was some was in different. first hard is blowouts fact But it's from gas of in structural and changing limited? before getting the northern you because do the Canada. it this sort to of wasn't for that some takes some is from to takeaway border terms Bakken now money the suggest of tell something is in kind and that

takeaway. do think strength Sheridan. anything continue in a for of. seeing want we're down the to the and on we Coast between with there, last Gulf going is we in from head in seeing the spread four assets Gulf strong as and ethane Coast years ethane Gulf with has prices don't Coast it probably has May, the the seen is gas lot that on this grow limited What as that or now we've Bakken advantage to to do a No, demand see take demand we're May. Jean-Ann, saw especially ethane to we we I And in into our into as of three increased gas

Perfect. That's all for me. Thanks.

Craig question from Tuohy comes next Brothers. Our Shere,

Good the morning. Congratulations quarter. good on

Craig. Thanks,

anything correctly, frac for to shutdown. XX% What if are Trying in incorporating updated $XX then an increasing And while you're your correct? in XXXX I is there the uplift the Is of deployment. rig better assuming crew recovery understand to EBITDA you assumption DAPL? I no includes uplift roughly the to to correctly XX% outlook. adaptable roughly XXXX XXXX XXXX counts Tristan's year-over-year outlook into DUCs, the if that a guidance in fill answer question, maybe million for understand say up you when on If headwind understand

there's a One couple think things in I you referenced Craig, of there. DAPL.

and DAPL the about think you talking is impact we've to about believe customers point this previously If we our talked small. to at quite

to passed, think, complete that's clear still The year, EIS Given is pipeline now and well there's March the into it. path the still time is to of be of and operating, we're I what's not a the going by supposed the, happen to XXXX.

permit. impact know process where believes to ultimately So get get the XXXX scenario that is that much don't there's I everybody will to even the it in down, as -- shut that would going

standpoint that from we're So that's how thinking DAPL. about

of activity uptick -- we half be there levels Just will like XXXX the into to kind that as that be move looks to remains absolutely of in the year, that rig believe as in exactly second an rigs what range why seen answered and we previously we and the this counts, and is that's on that provided.

if wouldn't we we have said it. visibility Craig, And didn't have it to

us know too well. You

talking But counts frac Absolutely. that XXX that correct? I you least we sound assuming about. three Is healthy uptick crews. kind at that saying could guess, you're fill at next it's crews if I'm trying the or DUCs, to what get -- to yes. expect like in doesn't add to if get maybe any year another connects two frac Rig that you're in that well comments of

Yes.

NGL Great. bundled Permian with other And you to pricing prospects ramp services? question. increasing one on Can for elaborate realized

here. Craig, could you didn't it repeat get that? We

more NGL the pricing lot trying switch rate. only, there's integrated lower, because will still to and higher realized is to being to able get a and for more just sense bundled give services a that Permian outlook transport your of a Just of legacy

One average is what uplift on is that's a of out seeing I Well, that the pressure I there would new that I whole a that's rate. putting we rates lot this in out now of are What say that. -- pressure in right don't for lot volume is see on Permian Sheridan.

rate. contracts. on be think at because they're they're as going legacy lower are I volumes So volumes our new be they But bring long-term a on to will where at, we

the So I a average don't on in the West of lot see whole rate system. uptick Texas

What about with West fractionation combine to all-in Texas on the the higher to ability pricing? transport get

today sometimes for we've there's average rates basically been transportation seen some both now is done, Well, and our rate right at new that fractionation.

Really.

Okay. much. Thank you very

Our next Securities. Global Sunil question Seaport Sibal, comes from

morning, regarding was your comments clean at And thanks investments. all question to looking you're the Hi. Yes. how Good energy previously first related My for color. guys.

to referred you're kind to you I of think going hold same those returns. projects that economic

Xx of projects most EBITDA the more recent et were multiples. Now did on like Xx you to NGL cetera, pipelines,

kind look investments I of you think at was that of area, how risk new and when versus any So should kind we in CCS just thinking about you these investments be especially incremental if all curious reward, technologies? those about

they have. as I probably Does thinking it's four will. earlier, Kevin. But that standards a times that Terry return of return? we others, we the it a as discipline, economic earn mentioned our believe maintain like some is mean, to our is evaluate going to not. mean we This these and are project going financial our reasonable projects, we Yes,

So, spending on return capital, we're a that be we're for we definitely will to looking -- going if capital.

time on evaluations? line on those decisions on those clarity Any Understood.

mean, team the the evaluating see to involved we and our there opportunities are working and for get our -- to our are footprint, it and is I fit with out they and is of hard. them We a lot capabilities look how us opportunities. need with there

we're fit we've financial working rush the not say going We're it, us. going to at it's us. a project. going to we're It's to but sure, to for to just got again We're So, something right it. strategic make hard and important do it's not

had of then on kind I one to regard And recovery. book-keeping question Understood. the act with

little uptick, does G&P NGL that in segment I show up bit. moved guidance update the this we down EBITDA I ask G&P expect guidance So, with up a moved NGL or reason noticed that segment segment? gas should the the segment the guidance margin those The that has mainly is, in whereas you EBITDA

Sheridan. This is

will any up forecast incentivized in from You forecast in year, NGL incentivized do we not -- remainder for uptick that showing of segment. ethane the forecast. the the the But did in our ethane we see not

So that be opportunity ethane more will to bring upside if find the the all out of Bakken. we

Okay, got it. Thank you.

Kania, Our next question comes Research. Alex Wolfe from

just better for a another value-add make Thanks maybe lower conversion on you? investment a kind really it matters? you ultimately the Does something existing maybe for want ultimately like of be, and where how kind renewals. cost -- renewable the the Or is that question of like return customers term the very to investment of that what of from lack a Maybe even would renewables that a standpoint facilities? about investment, electric some you these much. upcharge of well and does could you economics and is can investment basis as in kind or thinking trying it think mean the that contract? to is even of really something of ESG-related Just Or a to

have where -- those may for we get power can power renewable we It benefit mean have along. those a our energy, that do -- the all in of a we and of passed business And cost situations to cleaner In if opportunity that. that. above. we or be we'd absolutely may secure -- parts of gets other I may any the lower and it's costs

help to assets. We in So may a provide power we the the our we can out situation would customers. be where

not we're to assets. providing other how and or the thinking ourselves about one we're for constraining -- power way our renewable So

anyway. as can that an basis, machines I I ongoing replace become to as other as need out, they have in to compression antiquated -- Kevin we thing, needing on think add to the we're our is we that or footprint compression that replace wear

-- opportunities base. some to be the that additions sometimes So rate can of those

that guaranteed -- return. compression we field as they or things some difference we're fossil to in or So the a assets electric they compression be we'll opposed our by can The only regulated put of that can is earn -- can compression where in considering. fuel

form So take it as that well. could

just then sense. a follow-up. Makes maybe And

relative the to the it is but diversify potential a kind given backdrop isn't M&A, of big Just just to maybe growth geography probably of with to bit respect that any that there desire of priority, balance kind the Or there more little a it Are to tough it the of is Permian? interesting? what's be compare Bakken any internal? just might assets kind to relative

but tell M&A better. about I standpoint high, could appetite bolt-on could that can the those types you out that we opportunities Well always asset not to a is footprint what are now thinking we things. right thinking are from very always large-scale I we're mean, there make about the of it

be about those to they've But sense. got So accretive of from we're to lot standpoint. strategic make credit an always earnings certainly They've be to got and thinking got things. a

of things will far those to of But tell be you candidly, front. between, the are kind All the required are I few always going on M&A and looking. prospects we're but

so Thanks Great. much.

You bet.

comes Schneider, from Timm Citi. Our next question

Hey, guys.

Just quarter. was initial rate release, segment guidance, $X. $X.XX a the in your see in quick I But to $X.XX missed G&P in I this Came one. at think the this I for maybe the in didn't it. --

year? we So the of rate assuming down imply that does that be to the should rest directionally go throughout

$X. past the I it. you so probably $X Chuck. It's is going we're I'd $X.XX is good think this there and might average two have would guidance on number. we a on below the it. $X.XX this quarters. we're And quarters I hat being say $X above be gave your to hang just to where or But Timm, been -- earlier could year just fee $X.XX

a throughout year. might couple You the of that see cents above

And ask get what to on fixed follow-up going I Okay. cost system answer do variable down Gulf it. if the want you to is, main that? how your ethane the to Coast, for the at from way? you variable the I'm Bakken? does if are as down and Got vary But to assume the big fixed costs all ethane to And you costs that coming the kind that think Bakken, about a of think to to of and Mid-Con in

it say it is cost But and is. run to to just what the from would going this it I'm pump yes not the variable through Timm, answer a frac. cost you're Bakken top the I is to right. Sheridan.

closer Mont electricity have to there. -- Bakken less Bakken get of is Just to That's it have the versus than you is just run difference less The Mid-Continent that to and bringing between gas the do out that. Belvieu the is to the pumping it so you the Mid-Continent capacity difference. down only pumps

So a big cost. not variable that

for No. you. that's Okay. that And it Got it. that Thank -- make is me. sense.

next Our comes question Sachs. from Michael Goldman Lapides,

my guys. Hey, Thank or you One for easy taking two question. ones.

all First call out of any? of due Was the to That's Storm there kind see all, the impact in quarter, Winter first didn't G&P any in Uri. you volumetric the question. I segment

up question now efforts up second sparked happened several gas that some with your cash caught their in in actually or try of of a lot benefited litigation peers has what February your peers recover to of the are and The customers tied from or which already. from

didn't all for door in it? of the Just I balance you curious, accounts do big the a have see receivable buildup. cash

So just see and to check wanted those maybe items? two on

Michael, this is Yes. Chuck.

No paid sales question in we've been February. Second gas for made we the first. that

So there that. receivable for there are no out accounts

impact it was volume your Secondly, primarily for Storm Uri, Winter on question of us. a impact Mid-Continent

so it remarks, XX As a in Bcf. the was mentioned Kevin his XX, for x quarter, million day XX X.X

our essentially, plants days, a XXX had obviously issues. producers event those our -- XX-day the for freeze-offs. million Plants a plants behind had XX have well so you in So power Mid-Con, if some day

in but always bit issue little an a Bakken. G&P. us Had primarily tough impact in February Mid-Continent for is Bakken, a was of it So, the the in

not that? may think all with industry And you going -- on infrastructure? the now the Permian the peers. and couple a in do so about concept Got How two months your two last you the the months this almost -- weeks having it. your And legislature of Terry, over just with little debate of now, really be last how weatherizing over or you're do conversation does Texas

the done where as is even I speak I Well, in back from production. difficult Texas of field, Bakken. in impact in It's in to It's of the bulk problem severe we can robustly mean okay? ONEOK. wellhead don't I right. think Bakken down the the we Obviously, had weatherized, the don't do conditions. a been and But difficult. very it's we weatherize it was Oklahoma, in Williston. as where We've parts -- for quite -- do marginal

mean a to production you're So from wellhead getting shut in of to the you're time. -- all there's stem froze in I it and electric is especially, you're and the think a -- if that and requires difficult producers shut power from environment fact heat electric got -- how you've it's And off learned terms if lot with trying be too to down power shared who getting be insulation can But hostile producers, on weatherize. off to issues then, that your the a of is up. and you power producer lot weatherize. a makes tracing I lot operate in A Texas

continued how freezing operate. storage to to just to can up the speak go continue going off. that's had very was deliveries. I due And deliveries to weatherizing We job make of facilities out and We that we volumes few large for made wellhead supply of a the gas and those So, and for We demand froze able up down had we ONEOK. did that great dramatically. coming were market

able XX this But did we a roll deliveries. the And and anyway, face sure rock challenging in make can speak to it's because demand -- are of even lasted weatherized. for of temperatures, undertaking We that's snap great ONEOK. fortunately, everything cold is days. So I the and a about maintain rising to cold job. only

guys. appreciated. Much Got you, Thank it.

you. Thank

Kad, from comes Morgan question Robert Stanley. last Our

Thanks and so ask Border quickly spec just could discussion. the wondering on I limit I was much. Btu if Northern

FERC Now, last you technical year. of from the have and bit from conference a distance response

I where it's this next FERC? just stood point. steps discussions you. wondering the producers with with of was So, kind any or Thank process at Whether

the pipelines is Midwest on downstream TC a customers Energy the interconnect Upper Yes. Border. concerns the they into from with still Robert, with, them, the we develop And addresses of the discussions Bakken up they're that the solution as understand the well with Northern operational Chicago. as this interest in of is operator in Chuck. tariff that looking parties balances and to working

to more So come.

Thank you. Great.

over time, to Andrew call At like the back I'd this to Ziola. turn

joining All Well you everyone thank right. us. for

available July you for Thank second we will and team Investor Our quiet week. in the release starts Relations close be our later a period August. day. until conference date details great for we the us and earnings in call early for throughout joining at books quarter and extends We'll have the when provide the a

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