ONEOK (OKE) 3 May 232023 Q1 Earnings call transcript

Good day. And welcome to the ONEOK First Quarter 2023 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]

is event this note, being recorded. Please now Andrew Ziola, would like to to over conference the VP turn I of Relations. Investor ahead. go Please

Thank After earnings take to call. welcome and available those the you, to quarter on yesterday remarks, Chad. earnings our management are XXXX be website. markets ONEOK’s closed We prepared and your release first our questions. materials presentation our after issued And will

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

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

we one ask yourself in Q&A, limit of as follow-up quick for question one to as you to fit order in you many that reminder a can. and we Just

to Officer. President that, call Norton, and I’ll Pierce Executive over Chief you. the turn With Thank

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

providing start Natural Natural and first of and year. earnings affirmed each first XXXX earnings growth the full Gas Processed continued higher Liquids solid quarter results Gas businesses, guidance. announced by to quarter XXXX with our Yesterday, supported we Strong our a financial were volumes, year in

Crude for and with for and volume where well constructive strong additional outlook to prices support, we Basins U.S. to point Producer year. operate above XXXX. remainder the our new to activity of economics breakeven energy the recent the a drive in conversations assets activity through continued customers continues demand

to stability some helping services well-capitalized midstream earnings in prices. provide the largest, to growth most and producers commodity of We of the contribute despite history U.S., our

the to We with capacity continue these needs or that we of provide evaluate infrastructure customers added services aligned and their can growth. so

completion successful and plant MB-X gas continued examples provide focus of additional and and projects fractionator III Lake capacity processing our natural system The customers’ are aligned our growth on Demicks needs. of resiliency, our with organic

positioned significant flexibility and sheet We to with well growth. remain strength support financially balance continued

identify opportunities apart. capital organic Our priorities ONEOK’s and remain return us allocation unique to on setting consistent, growth high with ability execute

a of With that, I’ll for discussion turn performance. our Walt financial the to call over

billion net Pierce. first ONEOK’s XXXX and totaled $X.XX or period you, quarter totaled share billion. income adjusted Thank for $X.XX $X.XX EBITDA per the

income call, in settlement our related As adjusted operating $XXX we a the to million. we net on and in increase discussed the the in first of last EBITDA gain Medford resulting quarter, booked insurance

the $XXX reflects incurred gain quarter. third-party partially of first of insurance This fractionation costs million, during settlement offset million by $XX the

the fractionator third-party We potential MB-X to the decrease around with level as through this expect costs our up. the of remainder ramps remain fractionation year to

EBITDA increased rates. adjusted over natural higher benefiting rates Medford natural and increased income from XX% higher and NGL fee storage volumes, and increased processed XX% same the net the Excluding average year-over-year gas impact, period, gas

due $XX that as service and to the million in to NGLs ended with and inventory quarters first third placed inventory the being approximately and fractionated is quarters unfractionated higher MB-X second quarter over We of timing the a primarily fractionator the expect sold. of recognize

financial significant Moody’s deleveraging, from BaaX, ONEOK’s consistent conservative recognizing and credit governance. to our In April, rating financial strong and policy operating BaaX upgraded

had March million and $XXX net equivalents times Our our of target of cash debt-to-EBITDA as long-term X.X remains we XXst. below of and

the is primarily made by FDIC. and and deposit treasury government liquid money Our market fully funds insured up cash balance highly of

than we with million $X announced more cash XXXX We’ve redeemed and the XXXX. debt September X% XXXX, February quarter $XXX of reduced of first $XXX due notes September of due hand. our total with billion on recently both In we notes debt June compared a by net X.X% XXXX, million of -- redemption

release. financial As and our the Pierce quarter guidance for mentioned, expectations remainder the affirmed achieving in we strong yesterday’s in our our With remains confidence our of financial year, earnings outlook positive first performance guidance. high

call update. commercial for the turn a now I’ll over Kevin to

Thank you, Walt.

start segment. our Gas Natural Let’s Liquids with

with increased levels plus volumes XXXX increased activity both CX+ with driving NGL or our quarter fourth year-over-year XXXX, volumes on system. and quarter First compared higher the of propane producer

XX% the Permian Basin the and fourth of volumes first quarter saw the XXXX up of XX% with with quarter compared XXXX. compared largest increase

in have to processing our new continue quarter. third-party strong remains consider plant We during continue West incremental one activity on producer connected system first volumes. the success the gas we volumes and contracting expansions increasing Permian Basin NGL and to to additional accommodate Texas natural

Mountain slightly compared Rocky the last decrease the The propane sequentially. XXXX. fourth region increased our quarter entirely increased reduced volumes and year decreased by in was the Volumes with ethane first as compared period same driven plus during recovery quarter the with

in summer continue to months. to and volumes grow the expect spring We

STACK In primarily drive compared recovery. volumes to the XXXX, quarter volumes producer our NGL higher SCOOP the region, fourth Mid-Continent on consistent system. by with Raw throughput driven increased activity and in the feed continues ethane

and will With and expect the to Basin year, the of Permian through for be that Mountain gas opportunities ethane XXXX. region. remainder Rocky system. our to recovery, improved domestic environment, will will improve lower the the ethane at continue expect natural stay we recovery volumes partial inventory the Mid-Continent we levels ethane high in rates that petrochemical continue have we Through of macro the incentivized in recovery as across to we levels utilization lower pricing economics sustained driving move and Regarding ethane

We our Belvieu. in needs. remain fractionation now of XXX,XXX completed barrels we first per is XXXX. fractionator our will The volume April, capacity In nearly system-wide to track used per the added quarter our fractionation on be operational, complete reduce day in day. to Mont fractionator accommodate barrel fully and MB-X With MB-X capacity growth XXX,XXX third-party MB-X

the XX% the with Processing and Gas first first volumes per XXXX. billion averaged quarter segment, of more Gathering compared X.X quarter processed increase than In day, cubic feet Natural an

$XXX averaged In the the recently exceed quarter, day day. XXX year. have processed Mountain during compared nearly to more with first in feet and region nearly more during the for Bcf quarter XX Rocky guidance approximately We connections XX% a the connections on midpoint are Well X.X XXXX, per connected currently the than billion the per wells of the increase. in region, first region reached pace than X.X cubic quarter of million our volumes in

with operating of the half currently crews and Basin in XX There approximately and on XX rigs approximately rigs completion are XX dedicated acreage. completion our crews the

continue winter. to we the We expect region entering exit additional rigs as

million In XX compared in volumes We first cubic per the quarter XX% first with Mid-Continent increase on guidance more year-over-year. be to XXXX the than within region feet track XX averaged processed XX region, connections. XXX day, a and to six the wells are quarter, in connected first quarter of during the our

focusing than of we crude activity There and rigs and drilling. on the rigs operating NGL producing are prices, more areas weakness the see XX in acreage. natural to in crews completion our gas are the strong their region, in Despite continue higher XX where currently producers dedicated rich region, with XX

Gas the storage. demand quarter Natural benefit for strong and segment, the Pipeline services first to natural from results transportation gas continue In firm

an in storage complete in on quarter, of cubic and track gas utilize the Oklahoma feet expansion to additional allowing are to our capabilities storage subscribe X We of our natural an existing second billion us capacity.

XXXX. capacity XXX% this through XX% We XXXX incremental have through and of subscribed

export the Saguaro we Pipeline, investment potential expect the the evaluate transportation for on make to still pipeline Mexico. of Connector to continue to and provide a decision ultimate Coast continue We would potential border a project developments There related ONEOK project an delivery facility be the and West to in positive U.S. Mexico that natural final to export pipeline to gas mid-XXXX. the intrastate LNG on

my concludes remarks. that Pierce,

Walt and you, Kevin. Thank

As you and for ONEOK well positioned performance. strong operational highlighted, year both another financial have of is

return for disciplined opportunities for continue our and and in projects business add intentional, and stakeholders. organic remain We high on execute our value looking growth additional to to

robust services enhance continually vital and looking products opportunities and customers. our for we for services Demand our we’re the provide for remains to

our safety on in focus pride position a as our midstream reliability, maintaining take environmental operator, employees responsibility. operational and Our leading

culture. our not key areas. these is values, is focus we’re to but commitment at of continued a core year financial safety and operations, on built responsible and environmental incident also our our we’ve progress, core only projects continue to performance of a of zero and As around business a cultures a XXXX our the reduction part continued pursuit proud emissions of of the year

we’re Operator, that, questions. for ready With now

Instructions] be Reynolds you. first ahead. from Thank Please go UBS. And Brian [Operator will question from the

in MB-X on billion how XQ than up curious on see next forward morning, The running, the XXXX, view roughly Maybe if fees. everyone. costs of kind $X.XX we you stipulates and Good and off Hi. trended into going updated original third-party for can fees start year? should guidance of but and frac third-party trending us frac expected, Thanks. with now an better give all to

us we in level of potential of to forward as to as the the better bring Brian, said million we kind be for with balance do we So, $XX going expect the MB-X as the remarks, throughout up viewed a that rate year. run

Rockies XQ, year going continue or third activity as its given out we we Thanks. XQ. activity a should activity a with has in Great. off And Bakken a roughly this if expect see are producers a on the start maybe well helping levels if touch similar I -- just to to similar connects Thanks. in wondering of in forward? going was from completed follow-up, ONEOK strong weather slowdown activities

Kevin. Yeah, Brian, it’s

stronger. I if bit think not levels, similar see little we a activity

and you of a Now slipped on little remember into so were we did the part. said those as first had light we fourth that if some quarter, the just that our in quarter, was connections -- timing

activity -- not looking now But moving and to our well there rigs right of to don’t I why the levels consistent, with XX-plus tailwinds of connects. That’s forward. down. our for those on -- guidance looking we’d that be we XX if that the with the level activity slowing we’re be think, midpoint see growing the acreage ahead

will leave I it. it Appreciate Thanks. there. Great.

And from question Please the go JPMorgan. next Tonet from Jeremy be will ahead.

Hi. Good morning.

morning, Good Jeremy.

Jeremy. morning, Good

on just if the was with but itself. day just the helpful I That little more, there, I a to provided wondering you Bcf bit X.X into volume side that NGL number could. want dial Bakken per the

saw bit quarter-over-quarter. little the I we little up went Bakken quarter-over-quarter, tick down rates NGLs but think the a bit a

volumes I How NGL you like where that economics extraction you at of now? think guess, point? wondering, Just about trending in this kind see ethane the

NGL the Sheridan. that versus was quarter-over-quarter. is in the incentivized due was quarter volume actually, would and tell to the system remarks, fourth we first we I that, volume ethane the Jeremy, in So, our decrease quarter, CX+ you in on What as this said up quarter-over-quarter is less the

So will feedstock really we going with the -- incentivize still through XXXX, as ethane right gas see Bakken trajectory the good growth now in have and other think petrochemicals, preferred low we and of we well. forward growth is good of ethane going plenty opportunity to prices that

insurance or LPG Ship buybacks just That’s such of growth be the or export as value updated helpful. And as other Houston could extensions as you. pivot deployed looping guess, and just with going any far the have Thanks. on what where sheet about LPG kind of Texas to wanted balance in of incremental Got thoughts, And between that the a capacity or obviously, facility it. lot West the Channel. I thinking proceeds, forward chain

it part first Texas over the the with it Jeremy, right. of out kick you’re to the absolutely of. start for West other and I’ll part guys Well,

sheet Our us point this of at and give does bit in flexibility. shape is a quite a stellar balance it

at changed all. haven’t priorities Our

that can priority Our to we projects first business. our find high is grow return very

over has create and segue achieved debt looking stock good West Our that they’re we is a priorities, reduction even our kind return time. that’s as at and flexibility that LPG. further that list projects I list and potentially dividend of and our of said, high the buybacks goals But does growth Texas top were for that into the of for increases the

we with for like us. in -- nice The been Jeremy, strong as growth about, We’ve the said Kevin. Permian have it’s the we seen Yeah. volumes there. -- remarks, think

through So, evaluate to our West by had LPG. Texas clearly, and any of we’re stay looping we’ll ahead capacity of continuing needs we

capacity. we’ll top So on short won’t that stay caught get and of

you. Got it. That’s Thank helpful.

will be Blum Michael ahead. from Fargo. go And the question Please Wells next from

do forward length I morning, move Saguaro Pipeline be you’re contracting. the wanted ask Thanks. and sort you percent average that everyone. on looking around contracted the Good what’s pipeline of project What to contract to for? of need of an to

Kevin. Well, Michael, it’s

got you’ve project pipeline our pipeline. that potential I we at look facility, an mean As about integrated potential Mexico perspective. contracts with we’ll the the think LNG from Saguaro, in and the

related. So are all those

for ones will the of be out offtakers At the the the end that of looking transportation are Waha. day, the

thinking or So that’s about any forward the early and we’re Still Not way anything process. to steps terms talk in that. continue forward. are that the we like ready But contract to about yet. taking or rates move it the

be we’ll in announce position midyear. hopefully, So, to something a

Okay. Great.

just a midyear since follow-up approaching maybe here. So on is that, fast

go XXXX just, increase in generally, in with forward that project and for the result some you do spent? If be then project, the when CapEx would CapEx be would

something. unsure when it will hit, we’re because specific talk that But on it announce Well, FID. again, not to all might about we ready be depend any still capital -- would might that when

you. Thank right. All

Richardson from question next is go our Tristan from ahead. Please Scotiabank. And

Can medium-, about as talk Permian. that you’ve looks and environment, kind as are comments a plant. third-party Just on what your there, Hey. first got about a quarter? -- adding morning, also plant that to long-term contracting these new that Good talked how like have growth you volumes. appreciate Kevin, contributed the environment But kind well deals? guys. the of production whether I of additional Obviously, you may

things may of of new we think, several I to on on also volumes. place ago, opportunities you pre-COVID. volumes that are that system seen when want our some in And back Well, lot have about seen growing there? even But the seen do contract been to volumes years put we’ve Sheridan, go talk the contracts we’ve a have

more and volume in And that’s we Basin. as mean, the to there able lot that with of get obviously, share, growing little Permian if not come is relationship have bit a out well we’ve up. of I fair processors volume our been producers the Yeah. a

system So seeing into that But we’ve and compelling on a some new look luck new a be are existing good for potential plants story a we’re there out we or is lot the in area coming our highly competitive the had contracting through have success. we of think competitive as plants to -- Board. very we volume,

it, Appreciate the question. results maybe high first Sheridan. in obligatory And Obviously, level the quarter. then just strong

end happen thinking high some necessary the to hit about full the the versus conditions of to occur? might see outlook, the Just low to what year end need

Hey, Tristan. This Pierce. is

now actually first some we our of times really us, think I first quarter really, move and come. all trajectories to the we’re to stay of trying explain the the during kind up for trajectory the coming is picked positive quarters on we’re and quarter different for strong the have guidance of we’re the like a you really that really, out affirmed we’ve fact tailwinds that, on with have, but range that that and lot a tuned we very

Appreciate it. you, Thank guys.

from And ahead. Barclays. the is Theresa question Chen next Please from go

for you Hi. Thank my taking questions.

and it, steps escalation Within now a fee how just can that change within second that segment, wholly fee gets of the in that’s through guidance your G&P how about think the we’re talk to you month now range? quarter the and the that trending kind up I

Kevin. it’s Theresa,

fee rate, volume and on to on just around a then that’s the of the factors. as is various again, in. contract others One escalators system move kick the On contract that is couple new comes quarter every mix the going

the said, that previously segment, historically, we’ve that in typically in and occurs spring. So G&P

moving mix around minor So just moves or from the that you’re contract just just like seeing quarter-to-quarter.

some expect capacity extent. in would and understand MB-X. also weaken year then terms that as are of from frac on you fee, third-party you will half some of spot space per the of also quarter as I that But the $XX your some of the next into utilize to frac And fee second downsized Okay. competitors bringing million year, additional have you the so on this

is in further So you use even there downside to MB-X? able to addition being

we get or into think is potential a what would were and spot definitely lot out will XXXX, as XXXX. need lot that ago that continue the I But are we’re have of lower predict into a it look we we seeing six as they in certain XXXX, will more XXXX we A frac rates some a -- did into rate. reason contracted bit months that for in we we at than XXXX. little

upside see fees. third-party or additional some it downside would we So lower frac us be on as could for

Thank you.

Dounis Citi. question is next go The from from Please Spiro ahead.

Hi, guys. Thanks, Operator.

increasing just Creek. connect about First on one you Elk breathing pace is customer sort the recovery, over and into that? outlook, probably go start about timing for not question early this about of about with thinking will capital potential acknowledge guys to given Curious, well I question and actually next expansion? When is GOR of or But the talked some is that side. bit the thinking year keeping are needs the so. How time a needs you it

throw we’ve I But we’re level to short get not thing, of Kevin give think on said kind short tell high that can I a capacity. here. cost I’ll -- that it you going to before

thinking So start of thinking when time about to it, as about we’re does it it. your question

Kevin the there. So blanks I’ll let fill kind of in

Yeah.

We are need year we now particularly and even the and to with seen were the the last recently from that seeing activity the steps going to move and levels strength But -- back with the as have QX necessary steps taking definitely rigs we’ve capacity are into there. we’ve producers, that producer, ensure already it. the taking got that we’re when we we what seen

color. helpful That’s Great.

sort should stability earnings more now you into can other grow take-or-pay to years as or style. think new even the of to question a platform Saguaro kind Second two part that Is continue so, seen of more where maybe over how there? more about expansions, and Pipeline, we introduce more businesses, plan outside avenues larger we’ve before lean quarter even storage the of you potential some that well, utility-like the but of kind the last in

that Well, demands is our opportunities. in part the footprint. diversification short by yes. driven That’s answer of But Pierce. are stable into are for definitely looking earnings those as of areas to well, is type things those This we the intentionality customer but those really more the

short the So is answer yes.

Thank Understood. color, Appreciate you. guys. the

next question Bernstein. be Ann will And the ahead. from from Jean Salisbury go Please

Hi. build so Good that of but confidence Mexico get Connector. do time? just been one on one have very, ONEOK very this don’t I my -- not I border have successful. on pipelines understanding have generally that be think I will guess it and disaster, and rest the is another morning. a Saguaro -- far you does the How delayed pipeline investors if that to how another inside

Jean, Okay. this Kevin. is

I think I to with that mean, risk in aspect the not, obviously, of safe contractual a we’re possibly be to decision that mitigate do it’s the would way I answer as I -- things that is, what’s or on to the we to we’ll do you pipeline. to as full say -- FID will from much be we know come going us think as we our the And need can. we position factoring

for Okay. questions. taking That you sense. my makes Thank

next from thank from The Please is question Dingmann you. ahead. Truist. And go Neal

is the changed this. the all you these question just don’t all. tapered remainder My on to it’s the contracts the of have maybe I’m for morning, I Thanks you this got I’m any in do much, them of to What of just commodity just but don’t fee I’ve time. I wondering, could know think percent valid availability. remind and you I want year? year’s Good wondering potentially up earnings expect walk me, first contract to of just type sure the be based make structure. now,

commodity contracts fee-based the POP business XX% the XX% overall, And said Just, about then think we’re you some commodity and exposure occurs. G&P where of direct exposed. our with we

XXXX. We’re well in hedged

exposure further. So commodity that that even reduces

perspective, it’s a it when earnings we small commodity look a it’s really, just So on you at percentage that have direct -- an exposure.

Perfect.

just my Rocky Mountain Okay. And G&P. second on then Nat Gas the

side, on the pretty you the still, I good see should cadence slide guide the already we but just You you’ve there. but we wondering year I’m a year? last good what I about? for how pretty we’re how did step-ups forget about I’m the for looking now have me, the just if expected a you’ve at got range. that quarter at remainder of got think nice the step here, wondering remind up should -- the is low obviously, think I’m total

Processing and Gathering the the about talking You’re volumes...

Correct. Correct.

Rocky …from Mountain region.

Yeah.

low the referenced, had I quarter, -- we you yeah, reached Okay. we and Bcf. were recently -- end, mean, to if X.X first the the here you go at we

Pierce So we mentioned definitely Rockies sit there’s ramp we where and Bakken good that’s or a in volume a think one there’s we’re shape. tailwinds perspective, -- really from today some of the is

hear. to Great all. you Thank

is Please next America. Mitra the Bank ahead. from question Neel go And of from

Hi. my taking Good been morning. lot has Thanks answered. A for question.

XXXX, seems go So target. a the the to below and bit it kind and little are trending your leverage with I beyond a well quarter X.X the what proceeds to levels wanted of like seems Medford times be strong

terms when about longer think about So of mix? and or you some more are think about possible in you plan do bit plan or you term, peers just you like thinking the that to your how lower little dividend a increases, to stay of acquisitions repurchases

is Sure. you X.X out times. we gain settlement, Well, from the Neel, Walt. this at X Medford back around we’re are the -- if

we’re point. it this So, yes, times, below through we’re X.X meaningfully not but at

-- we like opportunities, we the if if lower that is have We trend would We in short-term. lower. it investment not don’t trend are concerned would probably

opportunities. expansion need to like. the in But a at to look spoken the of attractive we seeing some and pipes we might do and little plans the various we’re about the that continue basins increases the of on bit We’ve some

very, are then of where projects first. have that’s we these return for down we and capital we’re other to flexibility achieve now those So be types that like return And goals. very and high

below environment seen you’ve year. crude seen over to a term? around of twice your just of that fall budgeted now -- rigs producer see publics in this the activity do lot How have the given this intermediate $XX know you $XX on longer but if lot I question, of stay stickiness we activity, second terms the a in then And it. Got we’ve

last that of of had and over is sticky. time this customers haven’t couple what like I word. right, Neel, would been Well, I rigs have I to talk lot But, to the you’re the say, days. a our very Kevin,

we when prices move prices rigs we seeing you -- back the in coming to As started -- through as $XX. $XX, Bakken start earnest the as if really rewind, stickiness. That’s

up necessarily rigs $XXX, then as the didn’t prices Now follow. either. to back go they But ran came when it away down, didn’t

So we still on It’s not above Producers feel right that’s of a tremendous are flow still the tape of good. make generating matter very cash amount even -- at well still a breakeven. -- seeing the prices now. we’re

So me type confidence that lot this we’re of that that see stickiness going in to environment. to would a give even continue of

the and I’d take -- around companies, they with long-term production I to Pierce of heads and the these many And this that get a only really thing of opportunity these go view. is, exploration add is meet to and

what just is do there. has do there, think going what view they the wells because to over they’re the they of you a price taking So whatever until rigs capture long-term of last it today, the it’s don’t crude the But days. out not opportunity out price yes, to fallen is producing, improved couple the is drill drilled time, get off, price have

really be that of now as down. long-term or go they as really at very a prices emotional either take and a don’t they it view that they path and They range seems up stay very wide So a look get steady. to far

color. I Great. appreciate Okay. the

from Sibal Please Sunil go ahead. Global from come Securities. will question next Seaport the And

on for Yes. the call. Hi. and everybody, clarity morning, the Good thanks

Bakken. to on start So off I wanted

productivity. some has there in E&P about been think chatter the well community I

view So of the close has could some was if seems ratio I about -- your it to per gas have volumes. recently? talked past your in that was I you like changed curious you’ve talk year results recent XXX down also if curious about on the number to wells trended in and based maintain gas-to-oil

bit is the in on a in been has There well of the a degradation there seen with Kevin. well questions we -- productivity. movement and all little at strong play. really a One areas prices was there. the to productivity have not couple of We’ve of This different is

ratio, So potentially concern we’ve but seen a are wells changes in us less getting bit to would that gas-to-oil cause some that little think the productive. nothing

anything, same in the the technology to areas, they’re if drilling If strong and we’ve improve producers, results. seen continues

So on well any don’t with concerns what’s on have at this or going point productivity the we GORs.

then Okay. if Pipeline the out last on the Natural year. like year remainder turns pretty was my to QX to seems your follow-up a be And of and even strong similar It Gas segment.

you think guidance. that I would exceed

So I one-time was QX, the helped just if curious items any pipelines? there gas are which in

quarter this Sunil, QX is us all in was regards. Chuck. a No. solid for

revenues were the up able were quarter. some we we sales gas had that higher. like storage pick Our Obviously, in to typically quarter we do first

there a wasn’t debt performance. single that generated So outlier

to at the of what balance midpoint year, forward looking see our be about So opportunities we expect above to or and come this summer.

Thanks Got it. for that.

Holt. Tudor, Thank ahead. you. And from Pickering the Bean Please next go question will Colton be from &

Hi.

It offer LNG over looks would proposed above XX-inch plenty Saguaro. of like Just in exports capacity that. proposed follow-up a and diameter on the the quick

you So apart and can from tracking downstream LNG? might that you speak scope be what to project opportunities how you

up on Colton, again facility. with this is with Kevin. Well, we’re lining the possible export what’s just going

to plans looking talk for. what of talking what trains back would kind facility LNG we That’s crossing. about and they’re build about So there not at for to we’re what and what were they and the from looking any need other potential Mexico building right pipe now. for so scoped But in we opportunities as the just forth. and border we up -- so for ready or what the there’s additional But

you. Understood. Thank

go from Tuohy is from next Please question Shere Brothers. the And Craig ahead.

morning. Good

Just ones. a couple quick of

us quarter. increase increments were there’s Elk any pumping you could Creek run? roughly So Permian with trending what rates Wondering the and unit can detail incrementally kind or you that CapEx over of the remind shown that in NGL at about would if $X.XX $X.XX there? And on fourth the additional versus

-- talk I’ll Sheridan the about and the rates. the fee last take let take then first Craig, I’ll one

On Creek we’re Pierce and expansion, up pipe. as the Yes, Elk pumps the down alluded adding to, -- it’s

that the So project. scope be of the that’s would --

to going would specifics on -- talked what to caught but, not necessary bring steps to forward. haven’t we’re taking capacity get hopefully and that We already we’re that and cost any short of the again,

is Sheridan here. Craig. This

you. Thank

Sorry. can be or can I do efficient out? elaborate that soon right? quickly that you stuff, Could decision you or just made can am how sorry. So is the it done. you It’s a how once quickly roll under year pretty quickly well

be we’re providers understand through. that. still to things with working exactly working the would power and -- like steps That with what is pump companies, That’s taking we’re again, that working

come steps brand-new But, might So start like The of it’s ultimately to up are not building yeah, we how it those types we’re pipeline take. taking to -- the finish. steps. with long a

is This Hi. Pierce.

All right. you. Thank

The I’d that is, to projects. these that relates very the thing on only as high are to return remember it capital is, to add thing

we to So whatever this, high that the going return very announced number just be is, a when project. assured do it’s we’re that today

those And unit Permian Understood. rates? NGL

noise. seeing kind that little of is contract bit I transport-only it’s or a mix. play TNF is little Craig, immaterial. drives and up is little rates. we’re see biggest I Yeah. we mean a from. to if volume always just It’s this the on down the with and bit, slight depends where getting from Sheridan. is changing versus in contract one just just thing really just little our of is more it’s a contract of slightly It fee a bit or all change. the a you’re that just rate mean that bit going that mix coming It’s of escalation volume a And

Got it.

just going no So trend around. bouncing on there,

trends. No going trends on. no There’s

Thanks.

to gentlemen, I like and question-and-answer conference the Andrew remarks. our session. turn would Ziola to concludes ladies closing this for any back over And

all Well, joining for us thank today. you

provide August. books a date. starts until release in that quarter you details conference July Our our earnings for later good We’ll quiet extends second have a at early period when for and day. Thank call all close the and in we we

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

You disconnect. may now