ONEOK (OKE) 28 Feb 232022 Q4 Earnings call transcript

Hello, and welcome to the ONEOK Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Andrew Ziola. ahead. go Please

materials and take Year-end MJ, release to Fourth will and ONEOK's presentation our website. Thank remarks, questions. prepared Earnings welcome, Call. and management those yesterday, closed XXXX the available earnings on We Quarter our after After to you, be markets everyone, are your issued and our

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

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

Executive With turn that, over to I'll call Pearce? Chief Officer. the and Pierce President Norton,

Officer. answer Thanks, Vice Relations you Officer morning, and Chief available and Vice and Corporate Gas Natural Gas morning. Hulse, Gas Senior President, Andrew, us this is thank Investor Pipelines. your Swords, today's Sheridan Financial Natural Kevin Processing, President our Senior Executive Chief everyone, Gathering Vice Commercial questions President, joining and and On Natural Chuck Vice for Liquids call Walter are Kelley, Development, Burdick, President, Executive good and Also and and and to

incident. Yesterday, We and guidance operational we and announced financial full strong fourth performance. our met events significant quarter a XXXX year 'XX expectations weather-related despite

delivering the efforts have workforce growth continue for achieved year we growth have stakeholders value positioned our consecutive of XXXX. ninth of We XXXX. our ONEOK Through our the EBITDA our exceptional also resiliency adjusted and in provided assets, of to and in

of going to a term forward. resiliency focus is of descriptor XXXX will and continue operations the be I our a great believe description

for as financial opportunities. stability. to and expected growing prove and volume on focus and XXXX their volumes and we NGL processing earnings both also earnings With innovating guidance strong XXXX business provided continue higher and are our to fee-based Our people, earnings contribute Higher continue expectations. gas announcement, to future core assets natural we yesterday's in flexibility and resiliency to earnings

differentiators our growth. offer are provide confidence These business and ONEOK's for opportunities have that and future. in success differentiators critical the to There unique us key stability, of proven resiliency past

base positioned some First, most connected features with and growing the U.S. assets stable U.S. which of and producers and systems. our business, in shale supply strategically productive of most in growing our some the the provide largest who solid to well-capitalized basins

approximately investment-grade strong Our financial for proactive because margins price XX% significant significant to credit are X.Xx and exposure and reduced in us. our our direct our -- which a balance core of sheet provides ratings, our below milestone leverage minimum second, strategy; businesses commodity We've significant with fee-based hedging flexibility.

XX of recently challenge the provided a increase. dividend and years with dividend We dividend investors years more growth our COVID stability during cutting not than and announced

track record disciplined our and Third, of intentional growth. proven

We producer continue high-return to enabling operations. us our continue our focusing across support to to growth capital, from benefit significant lower and systems, investments operating projects across on leverage

management's team invested a pride our annually. metric a performance ONEOK for strong of capital and return for is on Our key is evaluating source

continue. investments, Our this and the projects in growth our that the the ROIC approaches place disciplined and nearly also we of our earnings, quality XX% on and capital of scrutiny high XXXX highlights will efficiency

will of Finally, provide will energy continue abundant we the national our continued demand gas vital that to gas transforming and believe future. and which security of which we play to life, the U.S. much we move reliable. domestically are important in remain an and energy and services a and quality that products globally. in provide, energy needed The role products the natural natural liquids

optimistic reasons year for financial of strength about why driven ONEOK's there performance. And performance. as confident With operational see, discussion from position of enter a solid many you I'll Walt and our to turn can and the over of call XXXX future. by are a We a we that, financial are

Pierce. you, Thank

in income respectively, detailed $XXX we even net million totaled ONEOK's yesterday's our continued in year and for XXXX same some fourth challenging quarter with expect achieving XX% quarter the representing year fourth for we release, of XXXX. the and increases billion, $X.XX financial As events. full in growth with XXXX the press compared guidance XXXX and our in XX% after full businesses period

for totaling Adjusted year. $XXX fourth increased and XXXX million billion year-over-year, in also EBITDA the the quarter $X.XX full

performance by transportation fee and higher increased driven average services. commodity financial prices, producer was activity, higher natural and strong storage Our rates gas realized higher

to a used return dividend million of to our per generating in $XXX following short-term of was annualized XXXX, quarterly dividend X growth $X.XX repay share or In million, November which dividend on senior we In an January, a stability. due to XXXX, offering primarily $X.XX per notes we share proceeds $XXX marking net increased completed basis, debt. years

with cash on just million due notes redeemed And senior yesterday, we hand. XX of $XXX September X%

was run net basis in previously less. discussed an X.Xx target X.XXx, our year-end debt-to-EBITDA rate with on Our aspirational annualized or of line

January total in As $XXX claims it payments relates to our insurance agreement an to Medford, related of we million, included in which to was all early million settle the with that XXXX. $XXX reached insurers paid incident for

XXXX operating of showing outstanding applied earnings to table our a We million XXXX, receivable. the the The remaining million in an million release a be first remaining provided income the received details. approximately quarter $XXX in and XXXX. line-by-line in insurance gain recorded We as $XXX our will quarter the of in first $XX

share of yesterday's EPS with guidance, including $X.XX provided and mentioned, Pierce financial per As a XXXX of midpoint announcement, we share. income an net billion diluted earnings midpoint $X.XX

EBITDA billion. We $X.XXX midpoint adjusted provided of and also

and million the gain we related which insurance includes future method third-party net primarily $XXX onetime fractionation, settlement of costs, of effect will guidance XXXX. $XXX estimate total Our the million in

you that in has fractionator $XXX compared our third-party settlement expect the in fully related to $XXX assumed guidance midpoint MB-X billion third-party substantially taking costs XXXX the $XXX We EBITDA adjusted the of By be been the full million of settlement lower due XXXX. with reduce our related fractionation to significantly get XXXX, Medford million utilize less total to to ability costs $X.XXX million, to costs XXXX. for approximately in expected a

the effect and more $XXX last we of costs $X double-digit call. our to than growth this of referenced Excluding billion, on third-party settlement which earnings the amounts still earnings the million,

We higher double-digit earnings for at our also liquids and gas operations. and growth expectations expect the segments gathering midpoint by gas across natural both driven natural processing volume

each the more provide segments in moment. will on a Kevin of detail operating

producer assumes with currently activity what crude oil the prices market. range Our are WTI XXXX guidance in the we of in associated seeing

$XXX to the related expenditures the the includes in this capital also which up $X.XX of We in This investments maintenance expected increase million activity, keep of with MDX quarter second billion, year. necessary expect MDX early more growth capital. completion producer total and to midpoint of reflects XXXX than in

expenditures, Excluding total would MDX the have CapEx been our than lower XXXX.

reached Our the or have XXXX projects not decision. include pipeline does other Connector Saro any final CapEx that guidance a investment not

routine pump accounts of meet such and needs. Our projects well stations storage compression as higher gas number expansions capital for growth to our expansions, higher natural connects and return customer

AMT an with our Finally, alternative we as XX% expect the it the on taxes have the Reduction relates XXXX year. with to beginning minimum impact inflation associated tax the Act, to cash tax

in will Kevin turn later our commercial details today. -K over to call now is the XX I a You update. can when for find it filed

the opportunities XXXX the gas increased NGL activity Thank due full fee-based higher providing volumes strong and NGL despite you, in volumes levels region, Mountain particularly Walt. events in XX% during continued weather We to our increasing were our gathering in to the system earnings. region. natural several year, and saw ethane on from year strong primarily growth year-over-year recover Rocky

ramp. with and XXXX, continue processing solid increase in Well on a XXXX connects return volumes natural the gas compared across as see a Mid-Continent and region the our XX% driving well in we system. increased activity higher throughout activity We'll our of the this in of benefits connections to operations saw significant volumes

guidance Natural earnings Gas in on XXXX higher Pipelines continue higher contracts and its renegotiated segment Our these the storage customers to see financial to storage our and value services assets, long-term to rates we opportunities exceeded expand continue evaluate services. from from range

XXXX and includes to continued and expected levels price our compared Key higher realized for natural XXXX. stable with placed A hedges due our activity, prices earnings commodity drivers across in volumes NGL rates producer Turning systems, to at higher and higher providing higher XXXX. strength fee-based gas guidance

midpoints, an XX% strong the the we and NGL would guidance from the in operations, volume a increase natural XXXX we levels, producers to across producer our our in driven At momentum result natural continuing by processing volumes be in in total a volumes segment, producer gas gas expect increase XXXX. total X% In saw a volume growth XXXX. activity liquids with compared

a toward pet be China with U.S. will also chems. contribute continued escalators the demand rates gas the global in NGL year. contract in fee attractive natural to an dynamics as average reopening segment's prices, market for point environment Higher earnings realized throughout resulting improvement and lower with continue to

We to U.S. the expect the while position pet on lowest the increased to position chems the from the being one cost this global global market U.S. with being petrochemical current of industry activity drive U.S. curve. relative

Basin natural we high to in and in stay fluctuate recovery On gas partial be our seasonally. system, Permian prices expect to XXXX recovery for as the Mid-Continent ethane in the

expect to Rocky year. the opportunities continue in also region recovery ethane Mountain We see to this incentivize to

MB-X of track Mont on in are quarter Belvieu second complete day early per barrel XXX,XXX fractionator We the our to in XXXX.

to be complete MB-X the And quarter which we XXXX. announced expect in recently of we first

gathering gas and processing natural the segment. to on Moving

expect feet X.XX X.X producer we've the growth well high midpoint process XXXX. new levels, grow year for with XX% the both Mountain day feet record regions, volume day year, the more activity Already XXXX. weather, reached in processed segment. compared We cubic per as nearly in expect despite we resulting per by XXXX the In as this billion volumes again in Rocky Mid-Continent Mountain averaged a a than region, and this at volumes cubic in in February, driven billion winter and to connections Rocky

operational month, cubic We on the Basin remains Lake than are construction compared capacity plant and per are completion at with just levels XX the the in processing crews million over particularly time XXX this considering last in Williston basin crews strong, currently we and Activity completion just March. III Demicks providing XX as There as more XX day feet customers our rigs entering operating well year. with needed rigs redundancy. XX this completed

as have with We've wells guidance already we region we dedicated increase Producers and acreage. At a into operating connect remain rigs return more move we spring. will through February XX more our connected our a than the committed this midpoint, XX% nearly expect the year XXXX. on in XXX nearly remained and wells region, rigs steady to to at compared XX few anticipate

largest -- customers of in Keep in are remains producer oil acreage. our half DUCs our by the on and levels there the a are crude prices that XXX on capitalized of around some an customers activity acreage. economics inventory our mind recent natural specifically This Additionally, in prices fluctuations Bakken, on have in commodity not and gas means and large country. approximately with impact most basin-wide the driven well lower had producer

future, remain rigs the on also our volume We activity. gas-to-oil trend to increased expect across which see region. the more continue acreage even activity in to we can XX strong without to than producer drive ratios XX continue approximately the our In Mid-Continent and currently higher operating and region, positive systems with on

the to demand volumes feet XXXX. the we NGLs and in average than activity basin compared million for transportation Rig our XXXX. gas strong continue process storage expect in guidance system. XXXX across our will grow expect We gas at to cubic XXX also continue with to drive In and pipeline XX% day segment, midpoint natural to additional natural per more services

natural At agreements, our of and pipeline XXXX, XX% storage XX% end transportation of long-term gas was the under contracted. capacity capacity contracted was our nearly nearly

that reactivating our evaluating levels are in We X billion in previously storage Texas. we expect cubic a in project continues similar feet will Oklahoma facilities idled on storage capabilities Oklahoma XXXX. and and Work by expand currently

expansion Construction also Oklahoma continues project. and slated year. on for project electrification this compression our Viking both pipeline The Viking completion storage are

facilities crossing and XXXX, presidential permit December to a the the late ONEOK Mexico a with operate FERC filed new and international in construct at application border U.S. border. subsidiary Additionally,

Pearce, for with The proposed pipeline to final of the a would that a on related ultimate have on potential is intrastate ONEOK expected delivery with Coast there and connect facility LNG pipeline border new remarks. mid-XXXX. upstream the the Mexico positive project. Swaro pipeline export a Since pipeline potential the gas called developments in an under facilities Connector And several natural the West announcement, been export decision ONEOK my to investment Mexico. concludes in development

guidance to reasons lot you, year. differentiators thank Thank from our performance. that our performance future have We Everything Kevin, growth by and growth we've about confident and and safety and this many XXXX we in Walt. covered commitment all talked on expectations underscored and our expectations and to XXXX more are you, focus environmental a feel today, for key our today, for our

to and our health made our perspective, our to we company of greenhouse we've target. approximately improve aren't and and occur employees safety communities operate. of focusing reduction do going how we that incidents, industry progress achieving Our but proud reductions challenges how From environmental our the to of immune reduction toward have continue where the performance near when gas XXXX XX% significant our emissions I'm target, and forward, equate working responded our on total we

performance to financial drive growth questions. operating year are assets operator, year, With while strong now that, in Our reliable well customers' for and environmentally growth continues set responsible we're and after operational safe, we for a employees' to and manner up our ready XXXX. continued in dedication our meeting needs

[Operator is with Instructions]. Today's from Brian first Reynolds question UBS.

off guidance. a start year, still offline, guidance capacity we to come on had achieved. was but couple the Last frac weather amount and material Maybe a of events of

yearly gotten have 'XX to to from the guidance. base to guide XXXX seems original XX% similar pushed seems activity some While 'XX,

takes perhaps or base we a some this you moved talk So out and is about guide just for could into get performance whether and from year if puts G&P last the this NGLs and 'XX. volumes year saw

yes, this is Kevin. Brian,

events volume and came connects of as not that just only which some the back in historic saw I online, Dakota, into mentioned in the April, we just of volume getting the into is our the had 'XX. we weather just North kind the severe you was it primarily that thing delayed probably when 'XX. back push off-line we hurt delayed well But the think offline big delays like volume when really

our guide. So we that's why about good feel 'XX really

wells. you built in which a G&P volumetrically of we've perspective. out Bakken. where momentum well really of already from some We've exited got about to lower Yes, our significant the But as connected and good we in kind at connect you when look well date, we connects. both is at and months step-up of a the we look at feel the NGL we're 'XX, historically

in Great. ratios the already raise follow-up the met the point, just excess seems just And cash like targets few should allocation. years with as stable on leverage we next build-out. we It MB-X how at forward? capital dividend a and pretty payout And this given think have CapEx of and announced should about use going

good really question Brian, kind of a strategies up what this clear are for capital allocation. is on to focus and key our

is organic to we existing The adjacent that want in high-return one invest our first are to projects footprint. that

dividend. to want The to what we and sustainable a maintain second thing refer grow we that -- as a is

XX% and And growth that what approximately we also mean growth say ratio, dividend lower. are EPS we which then is I our by on to percentage keep that want focus our payout that below would somewhere

got So want keep number a that XXX% strong below our with investment-grade to in And we three, of were credit debt-to-EBITDA. down it ratings we above XXXX XXX%. guidance. X.Xx our target We've

key those capital And what capital that we of are we could share out have of cash it allocation we've buybacks. if kind assuming But achieved or strategies, priorities standpoint. to a that's of as excess laying all kind from consider our do allocation whatever,

with Dounis Spiro is next Citi. The from question

First fees. question, third-party I frac wanted to touch on the

well or coming benefiting come You XXXX the of any in guys online on that frac sounds you've leverage I does given X, there early to the frac guidance? as frac X the second perspective. fact ability And any of it and Belvieu extent quarter, third-party XXXX? in like from the just considered to 'XX highlighted that guess X it come and Mont really But it on could sort is

Spiro, this is Sheridan.

frac So to we in come thought into the went secured And going already that going we Medford right we up had incident, was into out when and that account we 'XX. MB-X away April. capacity needed we took

all we So off. -- until heavier in comes the for the obviously part first accounted we in of on what year that capacity drops frac and had was the settlement contracted is insurance our company. with And the then for that MB-X

that already frac that's will third-party if there's volume on 'XX. to not baked we in, movement that expectation, help our be So us and MB-X the able why MB-X we have. use have much we Obviously, that exceeds for in that will

Got it.

Second question, pipeline. multipart one on Sao the

pipeline, that on of just to the if of JV FID item? on X.X just expect And any to any ultimate there? CapEx then a guess, on cost then So if impact design is that about you one, comes budget? the of a just sense imagine could that finally, extent pipe. And of big or Or in that, pretty does XXXX Should the maybe the it's how maybe you day take of reach a you the phases Bcf Obviously, mid-'XX. would in more on willing we to give partners? capacity. think I kind us cadence 'XX plus

Still we're Kevin. to if spent -- We're Spiro, capital your what going be There through But that questions a had we not of provide lot a this get it year. FID guide. pushed the capital would of be pushed be now. to a that's is the little is the anticipation come with were would money -- on. right XXXX time is this on, going bulk most frame, coming And out. going obviously, to working

from question with The Wells next Michael Blum comes Fargo.

ask ethane about recovery. So wanted to I

Bakken your But to stay guidance? like about pretty actually what and a broad for recovery for just Can some you prices expectations going reflected gas the are recovery, gave while. talk opportunities there across You specifically seems footprint. they're ethane in for It in ethane is weak.

is this Sheridan. Michael, Yes,

already spread. the little ethane guidance, modest amount down and already very locked incentivized a that we ethane in our bit a have have contracted We of

any than done not have that. more We

As Kevin a opportunity pet very do a you of said, in chem advantaged which this 'XX feedstock making is United the gas mentioned price ethane in we lot States with see as using remarks, his going low forward. on

have we in will more especially as recovery up us and the ethane incentivize Mid-Continent the which recovery year to spreads go than later in see we be demand done as more wider pull will that to out will year, And of more we today. allow to on continue we through the ethane ethane at think what internationally, more comes this Bakken we

then And everyone It the capacity. like adding I wanted Great. seems frac Okay. is frac about also question ask to another market. just

And going you to be pressuring at of third wondering with contracted if account? that parties how think we so Mont versus that going I'm is over think held-on context, time be within frac that's how to Belvieu much rates X, should and about

into. The -- we as the capacity that are fracs Michael, the fracs that volume building contract what those build about In be to to I'd online. grow coming people frac able us, say NGL world, and our

fracs went fracs probably than as So weaker you'd and the bit when that. our be come it these will spot as down. on, little are contracted volume on, long see But they term, fill those was comes a market frac

replacing remember, just MB-X, is of terms MB-X Medford. In really

so is was MB-X contracted. And completely contracted as Medford completely

So at is fleet only we're we had contracted looking the to really frac Medford add MB-X substantially before incident. that the really our our

softening little spot rates. But think you'll I long rates So of you in I not will see bit softening think of market. see the do term, a in

Mateer from Barclays. comes Harry question next The with

with you've spoken and some more about aspirational being at given than your this guidance, target, for out aspirational. leverage the But as 'XX it X.Xx point, seems 'XX Walt, reality it On time.

level pretty that Or Sahara So Is to to of commit the thinking And is it good oil environment? how ready to you? plan forward? are price still are not now? you hold about what a with ahead going this you

flexibility back cash fact through years, we've the capital over Pierce's come settlement, million And as obviously future. course forward. We're just look MB-X. not think our But we of definitely allocation. bit will Well, I the the achieved spot it We But today, out of sit capital here couple the about I to allocation into give we a discussion we goal we the Harry, down going had earlier. $XXX the to little to from build like infusion an expect would as some think us or for if peers utilize that our thoughts go to projects. I that concerned walk back that given of below insurance XX% the lower would that in trails next not-too-distant a as that we

your Okay. guys And just then maturities my of recently is -- I year. this know follow-up you redeemed later one

another debt and can guidance capital have to potential You markets you Any planning you are plans give on manage financing needs. how potential year us for the one.

you're that it do call because Sure. at May. the Well, could on right, actually we the for X.XX% yes, did make par we

we other have coupon is year that the The later in X.X%.

hall So doesn't make the work.

we is which call think contractual So until May. that the do we'll wait date, first the actual can early I time

our I infusion time. the we will issuance. take assess cover can any that that assume think our have -- as needs we there need that cash will is through point further And at we'll year for sit cash today, had on given with that we maturities just cash we off you we fact hand. as this go for out in a But if that the

Next question with Sachs. from [ph] Caleres Goldman is Jackie

the thoughts backing gas the egress further, on out River, for add a are like of ways bit you there? capacity any to front. level I'd little Bison are your focus First, on to comfort other macro need basin? And on What just seeing the

this Jackie, is Kevin.

before that to on a we do XXX will continue cubic believe a price Just Border takeaway kind that XXX feet basin still day perspective. out. capacity of gas Bakken Northern talked We've there's macro the million, from related million of

we've kind that's gas market Cheyenne WBI on displaced southwest words, that moved flowing million for. into -- other in XXX over day down a been to roughly and signed gets currently a up Canada, and of down south there from So project has a

that results Bison in they're Northern actively with on we project Border pleased and Express have involved open the season that been so working are the said that TC far. There's has Energy

opportunity. an there's So

next get perspective, feel the good, years solid that with growth. even will we several obviously, out egress you So for some -- an from

is our to we expand a relative we've by stations, obviously, the got we've not lot of capital which if got system, we're time And about. to some to it the projects and then of on take does not other of pump adding NGL need expand lot talking ability a just

good So the macro about environment. very Basin overall, feel

need rigs do show in The the more our really you see to in they've some the finishing liquids to when up at We meet basin rigs up there basin. the not we're good achieve as today, got guidance. look to we are and the about also segments shape both in -- that DUCs guidance the think the volume G&P

And Great. that or goes that components downside one bit spend to? upside, follow-up. segment-level spend? the What's could CapEx color quick specifically of are range? is there? for just the into some you provide little potentially Okay. the on What's What A And more allocated CapEx. majority into

going step-up MB occur pretty are going deaths and of and some generate some little those strong highly, but capital very here the highly needs Mid-Continent types efficient to his connect typically horsepower, will the in We've NGL MB-X. capital those a segment. drive in the not and And remarks, segment, We're get both or 'XX. of you in that Bakken, got the amount that's finishing MB-X into But well a the we're then when think activity connects by in in significant Walt segment about uptick up things, there mentioned in spend the well like from pumps additional returns. many to

seeing things projects we've we've then the those gas seen. storage we're And up the when in are also, as our finishing -- other that some got of some that talked segment type pipeline and opportunities. those expansion we're well types So we of about

with Dingmann from Securities. comes question next The Truth Neal

of up the pace gobble the of companies At down. a kind and seen some E&Ps their slow activity of higher then private level, some we've public of

of public So with maybe one any you I exposure about assets? observations seen any could or was have talk these deals you you've your versus happened if private just that wondering if maybe

the acreage X, way seen where it, more of really Neil, may of that start that we've shed drilling. Tier in some seen this some go publics and the it impact. companies a some considering the other and is seen they bit acquired Tier cases, X, Kevin. larger We we've little be And ahead have go the maybe haven't

So seen in especially -- the a in we've kind that's been little consistent with have, consistent have capital the Mid-Continent, Bakken, the that they've who, phenomenon. from very we incredibly of we to also bit allocated large we've of publics got But the a that's those basins. but been who's the been investment and been

more the said were just and so right. point growth? assumes on then has the in a is to my growth Or the That's Bakken -- maybe kind PRB large All guidance the you the of kind that. side of check operators a higher Mowry, and comes seeing for one you're if much see is the for -- And to the what are moderate gas Rockies great that you wanted about I Or follow-up, PRB, flip of brings they shifting what the cut. seeing? is that you're of for? planning which just

in nice operators G&P segment. way capital. a Yes. out large We in There's think have the The last what that have got talked spending NGL several is We've about more position been nice it. do about and very our a we the position is there the Powder business.

to we the driver modest So some is going from the come of Bakken. Rockies built the growth in. volumes have do But

America. [indiscernible] next The question of comes Bank with from

an volumes sterling to to Arbuckle. latent Medford. for consider on going increased purity expansion Y-grade transition I flow you're on capacity to down of assuming to And to to runway to MB-X less Bellevue before wanted the on on essentially replace I'm Arbuckle have know and more that building the volumes? the you'd touch for wanted implications I

you're Neil, right. this Yes, is Sheridan.

we, on as to put put feed we products it in and did on comes much a to it as stations, of we're thousands we pipes, today, more expanding not as we or need hundreds MB-X easy purity barrels a we large II, it's moving capacity get diameter other we're Sterling the very in But that Arbuckle of of put As pipeline. system. moving pipeline with of couple as raw that pump if more capacity, more

very are we we obviously, watching that, And react can and quickly.

So to Mid-Continent. Mont of will out it's from fair not to say Belvieu the raw we feed run capacity

have How the get you send it. ability you're less the -- Got And optimization be second short obviously, to at you opportunities, when then Conway up revenues And it higher and to proceeds? Canada. going the capacity natural Great. Conway forward value impact you in gasoline the to sometimes question the capacity versus insurance propane optimization in market. that related does that have will in after look

at it's we looked Neil, were it's on an we going bit, MB-X, of financial or average. from to as to we look know don't going that noticed big impact, I do back at Belvieu -- going the we of we as to We flows Medford build have back a that as or little a that, impact. went but most determined to and whether volume Medford from already not Mont it change

down think fractionator And in way position back we this ONEOK. MB-X put in did by were I so the the us we a going as moving put at I there to also is look in before Busan it

a transitioned the be satisfy anyway. more market has there. Busan has our volume Bellevue mid-continent to to little fractionator what We've bit The today deployment the enough business

system advantage as little of down optimize a Belvieu. be to I Mont in able we to the feed the past, overall the market, and more we'll -- in take be to have in So think the spikes able move we'll fractionators probably than Convoy bit

optimization in to that don't it's impact an business. think going of be big I all, So on our all

The Reddy from question JPMorgan. next [ph] with is Robin

second 'XX assumption you off XX% I G&P volumes about the the think inlet kind if years. of between could was And what's way provide of EBITDA your on Mid-Con the in if part X kind the in you was growth Bakken. to acreage of of and a outlook. 'XX right have that question To start guys volume X-parter and breakdown X rigs to a growth XX-plus on wondering that for

Mid-Continent for breakdown did range by I provide guidance think materials Rockies versus 'XX. we the the for the and

that's in materials. the So

flat. it our roughly we XX think growth, to that the mentioned we've As rigs hold volumes about acreage takes on

acreage our of sitting we're stay and those going to rigs So clearly, north on experience if growth. rigs we're there, XX

of 'XX if would to true And the kind rising well as You've 'XX that got levels the at the in oil ratios. growing today that hold also would they're gas Mid-Continent And remain activity Bakken. for where also the include over

ratios So tailwind these through which levels. gas-to-oil as is going activity time, to if a also the as to up, keeping be growth have we're trend move continued volume -- especially we we for

frac volume quarter 'XX? then Got 'XX appreciate then look like earlier, million frac what given well in maybe fees you a wondering just on in range could spoke it. bit but could of you and provide third-party XXXX guys think guys like the maybe Appreciate for growth fees if third-party $XXX the for a fees incremental about frac as per we sense rough that. that And maybe I

cover company what Yes. But -- break is not going say pay just down fracs to I to to got to going and what 'XX. through in very from on don't we're reasons going go our we're 'XX. third-party for insurance 'XX it's how the competitive factories to we we've that

last Sibal comes Global Sunil Today's Seaport with question Securities. from

regard your fractionator. just Medford thing the on with confirm I one comments to to wanted

leads of I -- all think fair at point you be that frac fully your to contracted contracted third-party it of mentioned that assume XXXX are and that kind is you to time? for considered XXXX this so

Yes, that's Yes. assumption. a good

for JV And would partnership look And if you ahead you gas move what or items on finance. a kind a all ways I sheet then approval, to lastly, could FERC of balance were that, addition pipeline? on finance to then at other some other your And are or at curious that to that look in to a Saguado you the was pipeline, the could getting for that of kind look of Okay. project?

in Sunil, still, I Kevin. the from perspective. It again, mean this process an early be is we're pipeline intrastate pipeline. would the

approvals So -- need FERC FID. it it as actually did to the if pipeline we reach wouldn't other building relates

But there's looking a far but economic and partner, this that. partnerships reason gas as again, at at excuse gas consider point, the would our just to Gulf that a would like Coast to get or it this West entire going me, of we're Coast pipeline point, we're Mexico. get as strategic would have would the we go, for own to anything, if we As are as us pipeline that be it with -- to approaching we service the of pipeline part at

the Got it. or... And balance all side, then on sheet the financing on

mean. I Yes.

always in do CapEx, eyes thing. the that built our was of just going than to efficient be on normal that open sort a capital an years context our We for course over is pipeline it our this keeping found we would of So the are several normal unless more of we balance source sheet way. attractive of

CapEx forward. don't a in But our change I would it going think significant have program

course. So our to not would ordinary have we one that change

I Ziola remarks. question-and-answer any turn the to concludes to Andrew This session. now over conference our like back would for closing

All you right. all. Thank

earnings we later a Our starts early quiet that details in April first and and We'll our for you good until have period conference again, call when release date. day. extends books in a provide for May. quarter we close at Thank the

concluded. you Thank today's The conference attending has for presentation. now

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