ONEOK (OKE) 8 Aug 232023 Q2 Earnings call transcript

Good morning, everyone, and welcome to the ONEOK Second Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions].

I would now like to turn the conference over to Andrew Ziola, Vice President of Investor Relations. Please go ahead.

Thank you, MJ, and welcome to ONEOK's Second Quarter 2023 Earnings Call.

release materials after are earnings yesterday, markets our those and on issued and the presentation closed We our website. remarks, prepared your our management available be After to questions. will take

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

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

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

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

announced Permian second higher quarter year particularly in second the results the increased positive XXXX. operations, our region across XXXX financial in guidance. Yesterday, we Strength earnings XXXX volumes Mountain Rocky entering momentum in Basin, our quarter resulted and and full and second half of

driving assets. for of pipeline we legacy existing pending economically with NGL is the Magellan transaction The our growth of activities while on merger projects. working on these across continue are our successful focused the a need our projects. attractive We growth closing toward have operations expansion remaining seeing X Initial begun

liquids that natural about doing more talk Creek the are will we gas and on West Kevin the early Elk and work Texas toplines. Walt

the of are Proxy transaction, the and investors' our Magellan already milestones period of mailboxes. completing materials with in accomplished of toward We've July. the mailings the SEC critical the in proxy expiration the including June waiting filing definitive Midstream. pending recently HSR X acquisition Regarding hitting

we the these on immediate and the ahead value the see unitholder companies. confident we're incremental financial that of X look with investors companies transaction long-term and to of benefits will votes through As growth brings this compelling combination shareholder both proposition September XX, the

Today, a targeted you micro a and our explanations. X macro will we've presentation, see we've provided assumptions. takeaways the the we our the Slide Kevin into yesterday our combined you through with both as macro will walk macro more earnings in I organized synergy with of and will go identified cover was detail to On summary realize news company. how have and which date release, the opportunities of will to synergy

opportunities. opportunities commercial see categories X we have near-term have for for commercial provided the the assumed and slided incremental a can potential scenario You in into breakdown proxy our these and both

from X So now I'd macro the like takeaways referenced. previously to Page cover

First, as companies. companies that have combined, these will stand-alone opportunities were not possible

value blending batching these by company's blending can today. done on But scale. is new. be both Second, companies. by are operational difference assets the not are techniques Therefore, batching direction, are larger and understood these with a one well under They realized both and companies

factors bundling, commercial the make they Third, categories decision if of instead commercial on to means opportunities the with of the of our outside that economical our control. exception within X make This we are relying of sense pursue XXX% remaining and control.

collaboration find post date. will that bases close, employee and on we even can identified X the integrate we widespread more to opportunities not believe we focus as Fourth,

returning believe many X course value services next that there our the our Magellan's of we our to together our and opportunities X case our is to company's and near in team, investors. commercial offer history, improving the with proxy. we years, continue to term, the customers have creativity companies to finally, our the significant in the potential proven And ONEOK above assumed value has over transformative

recent performance increase. call our With discussion the the of Hulse, that, over guidance turn Walt and to for financial I'll

Thank expect billion you, a an of earnings adjusted These to provided our XXXX merger-related Pierce. yesterday's midpoint million With merger with now exclude be our any a February. original comparison of $XXX apples-to-apples Magellan expectations. in announcement, an midpoint and the $X.XX with and from in of income adjusted net the EBITDA original specific provided guidance we ONEOK February. $X.XXX midpoints guidance our EBITDA XXXX order impact midpoint increased financial billion, increase in are future and pending costs We

fee in and recorded guidance the second our $XX with operations, expectations fractionation of million first compared rates fractionation volume $XX NGL costs. third-party across Higher were In third-party driven growth, quarter. million volume lower-than-expected higher the we strength by average costs quarter,

$XX We a expect third-party as fractionation operational. be of the the per costs quarter million rate run for remainder approximately MB-X fully good to year is of

pipeline of pipeline to related in our detail included more time Texas Kevin expect activity Elk capital the total volume and of drove capital, are on purchase lead to complete maintenance and growth the constructive guidance. the will the Strong billion XXXX. long NGL expenditure a capital in decision components provide increase West approximately including producer expenditures, full Initial outlook the these projects Creek expansion including in looping updated also the $X.XXX of of shortly. guidance. now activities, and We our

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

EBITDA Second million, XX% year-over-year. totaled $XXX quarter adjusted a increase

XXXX and due $X on increased third-party exceed If nearly our quarter senior and XXXX, second with $XXX hand. XX% costs, merger-related we adjusted would fractionation cash of In EBITDA June redeemed million billion. notes exclude September you X.X%

had below Our and and of as net X.Xx, than equivalents target of long-term more $XXX June million well EBITDA we XX. remains cash of our to debt

BaaX. Moody's second the quarter, in Early ONEOK's credit BaaX from to upgraded rating

agencies, opportunities pro our As acquisition the that Magellan, note ratings Fitch, Moody's, growth and it credit relates provides. to showing rating of our for S&P pending recognition acquisition scale, and increased earnings this I'd diversity reaffirmed a all investment-grade forma X acquisition of

a the close to prior to to transaction. notes of we relates offering As the it merger transaction expect complete financing,

monitoring We of in will timing are markets the be and offering. our opportunistic that

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

Walt. Thanks,

Natural segment. Liquids our Gas with start Let's

increased and of quarter XX% from volume NGL in compared connection a compared Higher with Both first by with saw year-over-year, plant the particularly volumes volume Rocky Basin year-over-year Permian activity, double-digit quarter XX% from XXXX. increase, first Permian were plants saw the the regions Second first Mountain driven quarter Basin. volumes and largest the region growth increased XXXX XXXX. producer increases and year-over-year the new by in quarter XXXX. up continued volumes driven existing and

quarter same compared XXXX, region Mid-Continent volume with increased by compared with Mountain last XX% increased Rocky first XXXX with quarter driven by of plus period slightly year higher volumes ethane region the increased the in driven incentivized the the of and propane increased compared partially recovery. and Volumes XX% X% first ethane.

recent driving we've a basins. the seen prices recently dynamics July demand pricing in market in We with tightening in and overall While the ethane short-term is decrease think balance. supply the general level along recovery remain some responding the they most ethane from at volatility highs, to

in Given near these to The the our in recovery Permian opportunities market in updated the conditions, we Williston. recovery, included remain in assumptions incent in recovery Mid-Continent and partial our ethane full confident guidance. recovery

the NGL we've X underway pipeline time service mentioned, the which is begun to components Activities NGL are NGL Basin. projects. more Walt expansion West Permian pipeline, initial for which The full in XXXX, be ONEOK's the complete of will our including looping first capacity of As loop long expected aligns purchasing than Texas customers' out in with needs. double to work, lead of quarter

in Elk Creek expanding the also taking provide are Williston. the to day per pipeline growing towards volumes steps for We XXX,XXX barrels to capacity

In July. bcf have Mountain averaged the gathering the the and feet day X.X in and region, half connected than increase. processing a region processed volumes averaged In natural per the in day, nearly day XXXX, with the nearly billion half wells connections compared first XXX of volumes approximately the per of of a cubic cubic than XXX the more first Rocky segment, second through XX% more averaged We've billion in quarter feet X.X year year-over-year. month per during the X.X second increase XX% quarter gas processed

As we crews with acreage. XX more rigs rigs in range acreage operating completion half which well-connect there XX the end are Currently, pace our approximately grow to sit XXX high year. today, remains guidance reach the than basin we're and to and completion our crews activity XX XXX of approximately to on dedicated the on of enough our the for on production

Mid-Continent on rigs year. primarily and focusing XX past producing due recent region, year-over-year have quarter in our but few slightly decreases Western timing quarter the in the continue of the the the We've and in coming SCOOP areas. months activity new crude We to XX% some acreage in half increased in online. compared XXXX, to on In STACK first pads higher the have Oklahoma second with are and the decreased region currently the seen X of processed of see first activity producers dedicated through connected wells increased Mid-Continent as volumes

gas storage gas X billion guidance capabilities us an an in We segment end services, the gas high from of now and to capacity. and natural transportation earnings additional our allowing our natural we the year-to-date Oklahoma, natural cubic of the strong range. pipeline continue to expansion In for storage results recently to demand segment, of utilize expect original benefit completed subscribe and existing feet exceed its

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

pipeline, to to a pipeline connector LNG There export Coast potential continues gas provide delivery the customers project transportation well-known for developments U.S. an that the of export with to intrastate potential support on continue project natural ultimate multiple and evaluate large, We related project. the to border Mexico the from to West Saguaro positive would Mexico. be the anchoring facility

make decision later expect the a ONEOK pipeline investment on We this final to year.

left the of overall The the we micro example potential Magellan synergies. our and the on shown Pierce our of where assumed the each case X categories. with between end discuss I risk on sensitivities all define near-term X at dollar a presentation and opportunity, to comments the are Page for will transaction how ranges want I Now category, off look an investor weighting.

gas NGLs capture refined $X.XX result liquid gallon this combined product capacity pipelines. a provide products average batching. to any or ship natural XXX,XXX at as pipelines in same This or million annually. refer liquids to move annualized per higher a value. Liquids refined would the product utilizes a refined center companies opportunities and to barrels $XXX of more to available Both operational products day combination per to in natural demand and of technique through connectivity gas than An

million $XX butane The day gallon a annually uplift ability barrels well to at NGLs in on an increasing unleaded mix combined The XX,XXX value per as additional opportunities, higher to or will as any increase per blending would products of result blending given other annually. approximately $X.XX blending. incremental assets products obtain a is called slate

is volumes This or to bundled As combined and wider can gallon to or of at and optimizing on be $X.XX $XX utilization to category provide time one up by decisions, connectivity the expire, realize million per key to an will a grow customers barrels services incremental market focuses greater day a centers. where contracts offer needed jointly variety XX,XXX Picking this from synergy. and be and year. customers, primarily system This approximately value per would customers.

be to within can that time and optimization crude X-year oil and opportunities NGL, include Additional refined frame activities. X- incremental the storage product, realized

We opportunities expertise. export also proven and Magellan's marine leverage value see to

We have in case, of reduction million. $XXX cost, would often be in acquisitions XX% this G&A this which, result in size consistently said that a

potential the in near-term assumed However, only case case. and we have both the assumed million $XXX

expectations also assumptions the This to than we've to assumptions, level potential $XXX we to our was of important come could synergies our drive total conservatism transaction which applied out It's upside million. the significantly assumed highlight $XXX with point and financial million synergies. our up to should more the our risk-weighted we announced, think also to of when

of assumed As confidence a $XXX million synergies. near-term the said previously, we of we've level high achieving have in

commercial not to provide reasons, level time. obvious at For specific details we're going this project

will potential X provide have systems services blend on to value as as years. ability over by increase pipeline products we bundled outcomes batch However, significant realistic well next X for synergy categories. provided the combined opportunities to to and our We customers our believe

remarks. my concludes that Pierce,

of Thank you, us. Walt. We've a of Kevin, and had promising with a thank still ahead strong second half the year you, first half

service, on We focus innovation include These fundamentals focus our the a that importantly, today. customer have most continue us and where responsibly. safely are of business on we fundamentals operating to reliability, and, gotten

doing business XXX-year our have future of long We have successful change while advancements transforming and record things a employees and track been opportunities and to even through way. right for history, our in ONEOK dedication innovating the growing consistent more over their but than

of we'll to updates environmental, review our economically related accomplishments, related be to energy many performance, and weeks, transformation. coming also and participating safety publishing initiatives our and we report how to our of there. share encourage future efforts and you stop In XXth employee We're the examples I'd in health our Report. targets, we're the can't we Annual proud know see Sustainability but the

As change remain growth, our our and company continues progress, of sustainably. operating on responsibly committed journey to and we

As and and with value. to also that of proud on want excited more working to all expertise have a stakeholder company both on a operations, that a all operations. integration we safety to We workforce X look larger, Magellan. to diversified to from while plans forward our the commitment building daily continuing creating We're both companies companies run with thank are forward to companies increasing combined. shared accomplished, histories more look promising future I merger join the employees with through

we're With that, questions. operator, for now ready

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

synergies if was that the have? And I assumptions curious the $XXX opportunities. the million $XXX just not, we given -- and we remarks integrated we opportunity any slide could be the of when prepared And could upside second, you'll to should we commercial growth then there that was the if synergies versus if scope view size just framework how I appreciate around million details are announced? opportunities? the and you those should original Slide talked talk think deal larger view around if the about synergy X, of about around about on

Pierce. in start I'll share So some out this fill with I'll Kevin in either let one. and comments, or Brian. is

So certain be volume million fairly could and that as that's of pricing list far time. the based the assumptions, opportunities a $XXX is as we have potential assumptions, lengthy on what

can and to your first, be back you as done. And what and realistically weight those go up have think list come so you to then with risk you

that of get comprehensive most not list I you possible think in you any these want to them all. with realizing transactions, the come up may

So million. that very million $XXX in comfortable we're of range to $XXX

the And to add that color weighted show into kind so both -- but we of to we risk wanted assumption. how

scope opportunities, -- And follow is size Great. I up, it's a just guess downstream, and of about you I the synergy potential that. talk can Appreciate guess? whether those there growth

for at the a -- we we capital. Kevin. No, details time it's these to of much we're will time. to Again, I competitive going provided we've reasons, not Brian, of mean going this kind at not -- with provide prefer as as lot into of this not to that. just we're of of get don't some A lot happen

a require as get closed get we work bit, may once Some it. into and but we'll little those details

to It's any there's -- Pierce one that's one only those is The Brian of -- add in opportunities. not it. thing I'd driving is this large multiple opportunity buckets that,

if company too you And could Fair I bit final if kind know enough. integrated recent may as number. of I larger -- just the a talk it's We've announcements like a what to take to just for will little post-merger but discuss leverage look seen we've leverage spin curious company. Xx peers about co right Xx. And some being about the talk just seen NGL early

of combined So curious what you target ONEOK Magellan? entity, just right a do for think kind leverage the and is as

us. we from changed out thought was a good to Well, view long-term benchmark that definitely for heard there be We've a where standpoint. haven't we on we X.Xx, our want

puts we think going over lower said are if that as the down with a a take have of come position pretty We road we And to advantage us in they in issue that bit direction we little we trend time. good X.Xx. than no this quickly opportunities transaction. that past, But trend as to the

with from JPMorgan. Tonet Jeremy comes The next question

Just business business wanted with the the underlying -- the -- start fundamentals fundamental here. of underlying to

you the into with to any to a With and not you're in there but the prospectus that are see operational the How provide talk on is forth knowing and wondering can see 'XX number? guidance momentum that the you've that just specifically is more results of numbers right extent just there's the if the far wondering results in 'XX into had reference raising shaping trending as how regards as put up you comment versus potentially business could frame that able if to you we now. guidance, that bit you

Kevin. Jeremy, it's

to I the forward announcing volume's the well. that would about to all Permian or activity we're the think And in we continuing really we activity it's that projects me footprint activity we're 'XX. our in and The in but X across shaping would we're that now the expansion up coming signals levels Powder, very and be right the Permian grow levels absolutely major and areas. a the little seeing through Bakken seeing primarily talking as of Williston these pushing dictate move the even

what stated board 'XX our little of we September focus were where of process. proxy. a The might were goes XXXX. that the were in you our of board a as in if that of made numbers our full our XXXX Jeremy, numbers. conversations, looked you'll for of those XXXX, They good remember, XXXX proxy not that forward view the do a Those pretty approved. we planning It in would numbers numbers for it using we've context outer were years. September using these we were view at the plan back on you numbers were primary we those projection in thing to same as of one was is of give and that for do I the in got the developed bit in the meeting November we But -- were

'XX and in for get So February periods. beyond as and will we grow, future see we opportunities when these to guidance give we business

on I were as at for any count numbers, And Maybe saw the into time? there Is it. or you XXXX what color -- to Bakken that at in point rig way, provide they this. inputs cut trend versus driven Got guess, now how what other? one just more such

I count said, forward is the team something about XXXX. into that think numbers and about look up with months the XXXX head rig try do. that I a and actively the those We XX freshen typically as Like that is focus we primary should for that to we to usually you fall to on think don't try give thinking

it. Got

one, Just if last quick could. real I

Creek, economics If you project investments? what the and Elk of see Texas provide updated West could for type thoughts loop those on LPG you

the Sheridan. completing Jeremy, West start that is this I'll loop. Texas with

finishing loop of be well the started adding of barrels. per XXX,XXX over be low barrel capacity we're in completing the will the It's Permian just we that So pipeline loop, XXXX. very coming a we'll out cost done it's and capacity when

in have go still of contracts to a return We be left give with forward. project that a place us capacity that as on very contracted nice we lot

very we're that excited So about project.

return. I think projects done, we're multiple be to very that's very, high low going a when

up we coming volumes our what grow we -- see don't Elk Creek we've pipeline short. of the that from Elk already sure large opportunity need the see now obviously, in out we to that Creek of the continue grow majority, make this parties the G&P third caught share have see off we out XX% a up On as and presence get to market there, where there then we the We on contracted. of volume to of

the project on bit on it's there our going of pipeline in to high-return, So just just that. with low-multiple see putting and capacity, last very be the pumps we and another margins on

very continue to So excited as grow forward. obviously we

short Just the we Bakken. coming get out of another caught volume will said, example, we not as of

Theresa with from comes question next Barclays. The Chen

And per see bit in get what seeing interest you batching more for have you to Do estimate. like examples commercial detail which I'd underlies this? little a most $X.XX on opportunities. you just are that First, gallon the upside And already batching? of do types the

as we with again. X refined runs what I to that think you on that Sheridan is Mid-Continent pipeline Coast we, we are locations obviously as that I'll on well. the region. X the those Gulf in products can it a Sterling this do give NGLs on can We as put products pipeline pipeline example in opportunity of the between between move is and batching our moving safe refined

So That's that's NGL example forth be of an we products of between back where area and on refined on pipeline. an an could the two example batching. moving areas

And for what underlies estimate the illustrative estimate? the $X.XX

estimates, the we overall the areas illustrated depending reason The then be see products kind more that, forward, we see as could use obviously, go X of pipeline on between we as there be tariff markets that's to to where tend $X.XX are. from what upside on refined we the in those that

that we what we But to the out in that's that's number and -- see there a wanted was market, today. use

piece, Got to pool? by barrels blending looking example, it. And per butane Or incremental margins per blend you the on to expand into you $X.XX barrels are you illustrative day? of the day within -- this are XX,XXX are for looking XX,XXX gasoline

be what a give see of notionally thinking we're could that be for more of about opportunity could increased trying both be we could We -- an think a going opportunities in impact think We're you areas. I to margin. the of where both. you on there's lot we that. idea give It and

there's That's increased you. numbers But around think we're that impact be to the and gave an with also little could volume. the we for give what how up idea a sensitivities We bit came of that. we of trying opportunity an you

question comes The from Michael Wells next Blum with Fargo.

to to than the back specifically it's go this CapEx in for morning. a proxy minute here higher revised for want your the on the proxy XXXX, I again guidance CapEx

the more does higher And for the of there? explain if that So projects could just if go the I'm year? variance you imply 'XX wondering could FID that CapEx then balance you

we time, the the the we now between think again, expect along we be timing of of -- said further end it. We've process. pipeline now when September thought of you did its in is would that This point the year. year. if back last and At FID Saguaro Michael, in that

other some some And is that of we of standpoint, out, of that will the projects. and shifting that actually a that there timing realized it, moving see some The our from fully and be So assumed included. and we just be for may today it revisited do pipeline look that with we that at the projects, you opportunities is won't XXXX. on as analysis gave was expectation other continually the capital, kind commercial Saguaro we number that timing

Elk Okay. expansion, will that I brought the wanted assuming Perfect. on I'm And this be in Creek then just on to ask phases.

is anything what can when that of So of correct? the And you terms for be you'll capacity? timeline then a the provide adding And project? is in cost

it's Michael, Kevin.

timing, we're going not On -- -- to we're caught just the we're short. not going get to

customers, sure on given As in here's what as at be got the as NGL be we're we with look We're there. our through. we're forward those we've cost, included we working decided capacity to that and in going make -- still to will the expansion we provide well, 'XX we And consistent to to 'XX, there is then impact move numbers it well. as get the give we'll going

from Citi. with next Spiro comes question Dounis The

are added to with stand-alone us on up starting of CapEx on pipeline questions sounds Belvieu into trajectory a pretty off sense CapEx. Obviously, just like But you capital Mont have dropping going on pipeline follow maybe to Mont expansions these give X, 'XX of you could X these It general going a expansions. still the just be Belvieu basis. you've Maybe these and some efficient.

let's it's Saguaro, without And direction seem like doesn't any particular versus trending so 'XX. in it directionally, say,

we've the from routine our seeing, yet, to we're think at that of 'XX guiding I we're the mean, going stuff. kind Kevin. just activity levels projects, about -- be just start but it'd you this relatively to got notionally, consistent is Again, not

other projects. So to again, Walt to projects said, some don't and But and point execute the the ballpark. would extent announce don't. looking and get others than larger We're we're like projects pop be constantly any we in we at it the where evaluating

So there's It's it's type Saguaro. don't say. we're seeing hard than -- pipeline more other kind stuff. nothing to expansion of we But

second any the actually FID that know working curious project if partners you're you're interest LNG And any Saguaro. I it. beyond downstream an towards from Got I also incremental you've potential seen of if But And sort yet? guess still I'm question of JV feeling there. just pipeline? on interest is

on have U.S. to and focused I we to right drive timelines the said -- developments, get focus our the we But presidential been there we're refine some need and mean, now ensure focus we Our like continuing is our on positive the the of is -- estimates, that side remarks, continuing Saguaro out that that's in pipeline. permit on and and great.

comes Richardson next Scotiabank. Tristan from question The with

Kevin, way you we tighter talked seeing market June around July little bit can a a north saw you're maybe volatility But about ethane. in about with obviously, dynamic the talk the and curious what the obviously, June? able on into you the in relief then incentivized in, with there. Belvieu quarter? at third and the impact come in weather's you're And ethane just see Were some we to seeing then maybe

That's Once and have again, why at incentivize north with Canada a environment the around. we'll about up on opportunities we ethane. does got what's to on prices look Just -- at in in you've talk high I'll gas start. going with bounce general, level, just ethane. going Belvieu And what's to

I volumes. those to the We're opportunity for again, But be specific It's So we've moved Sheridan, an us. had to continues to around. mean add? provide not going it opportunities. anything

part that add full off the later is in into still that has with is came -- big prices, recovery. first run-up One a part with of this in for June, ethane the it overall be and in thing July higher Mid-Continent to which and than we I'd August June, and of was had ethane it allowed

in maybe of just we're I time lead Walt, talk then point. project 'XX even or a about that procurement And CapEx not this proportion 'XX the at what long you a can maybe, generally yet identifying be? little cost helpful. just That's bit talking projects understand But might of and about maybe specific

way, would Kevin as I it forward, we're looking look from whether think as mentioned, build-outs this is kind what that at or of that. that -- add-ons existing our think Well, of most to you expansions I system about it's

potential we looming we've we the of about that other So there at than sized the out project don't have obviously any the have pipeline. significant moment, Saguaro talked

the always game. times. environment, In on lead be And long that to you have this

so as to are and be can at projects to all And relates of there going of that looking our the we forward. needs it customers meet our we how

a just that's reality So in and this day age.

question next with from Bernstein. The comes Salisbury Jean

renegotiating gas give detail segment why It doing bit lot much on is it higher can guidance? storage better little of up seems a Kevin, so than a is you rates. like to from the pipeline more

current be So renegotiated been storage that helpful kind much to has how well. up any as come, would yet if your of direction the can rates give of on much to you might how already? capacity be And

opportunity, Jean, really, I and the That's Uri, on again, that with all to storage retained an some after handled of mean, has was increase some a it's and to forth how sales were strong. segment us. there. rates benefit. market benefit getting just variety bit a dynamics opportunistic amount so fuel from and segment contracted in There's a through here seen of they've we up loans cylinders. The hitting its both be and the storage, absolutely, things. recently been a of gas an been parking And little has

whether other not we done So other storage Oklahoma. as really, the segments We're or be continue opportunities, find to opportunities, as it just well. in it relates performed expansion Texas looking outstanding, at to and projects

great a provided. So again, market are the opportunities job doing is just segment capturing that

your more one like bit. And a can. expectations volumes are I It if seems Bakken Great. for you, outpacing

more of would just you forecast primarily more or of higher a you just or than you whether oil function kind ethane recovery all be growth say overall, than that GOR If forecast that's helpful. X, been can

recovery, the Well, those. go. techniques, both when it but QX, have activity to of of their that as it relates drilling the of length better techniques, Producers a it's things to of when levels where we're about expanded areas. their combination has completion All the us, gas wouldn't we going think we better of again, the just production, continue where some as much and laterals certain go definitely seeing, gas, it's as and the -- exit get we ethane we're productivity, think into those at lot to giving really a it's strength in

in we we're and strength, see a do position. We right. you're think great So

America. of Bank with Mehta Neil from comes question Next

on how hit I the that of towards you behind sustainable whether wells I of the inflation, rate into rate the wondering commodity it And factors was and if of G&P more top was play is going Bakken? then forward? sensitivity $X.XX noticed the Mcf. that, driven that any kind at your kind side, would end

Neil, on is to the Sheridan. rates the A coming obviously, there. contracts. -- We've where renegotiated in of that, in lot contract be Depends in increase this we had is what factors contracts inflationary -- there. going mix

the biggest impact. is we I those probably So more the we move the contracts, having one it's to But to go as overall, escalators ones of through, continue biggest inflationary of forward. think improve

serving And just of commercial of kind general How Okay. kind bundling. based a then question versus spread with and these where centers synergies are the blending, demand opportunistic baseload synergies a demand much of on finding on batching, new basis.

it's be a opportunities is going are be this get But Sheridan and I'll again, And earlier, going it's mix think of rate. not If to those going it, details. that's the can project-specific going both. higher volume, great. Neil, Kevin. to volumetric, -- into great, to and to take the I It's more we're opportunities going to find we too. extent mentioned be for it's rates, to be

about of it. So we're how kind thinking that's

comes Stanley question from next The with Research. Wolfe Keith

there Is business quick activities Or asked butane $XXX are synergies, product First, $XX with just is the follow-up butane just today blending. on you blending on about of types the $XXX predominantly the other blending I see million year million a to that merger? because blending? Magellan's a million.

just synergy pretty the is large. number So

Keith, opportunities blending be do and is butane, expand blending other to that also this but blending, the NGLs able be other just some in not in see on products. able butane butane -- opportunities being into to actually different as but that today is We see Sheridan. We see cheaper. well, we done

it. of Saguaro. Got question, want second components to And better understand just the

to in seems Mexico? heard it a progressing progress well for much about the the and Pacific's needs on that's have on move your first being just timeline? things X really good your as to forward? pipeline well Can that. you consistent Or an commercialized see not as be Is the So that understanding done lot with made there's anyway. that I trains give with Mexico connecting like fully update you where

of at sure the have earlier, going there I making Keith, said. again, in we're working been is with needs of to the focused are remarks -- U.S. side Well, on day, the positive and those. the end Kevin. We're the developments, But stick line this to we're made and some like timing you projects. we overall the

really So that's our the now side. on focus is U.S. right

comes The Truist. Dingmann with next Neal from question

This is Jake on Nivasch Neal. for

me. for one Just

I near part get general? that sense, opportunity bundling you're the that in in lumpy we I but the that X- X-year guess, dynamics the, synergy just that on control, this -- to is of evenly synergies like wanted or there. potential back going a seeing the the Just said potentially? a the just like different to guys should is just your time segment, here, term be to be the to synergies, assume knowing Or to spread would throughout is trying entirely sense but -- not get you touching Going

some near is there's opportunities a Neal, it lumpy. term, Yes, this there's is I but going Sheridan. bit to think -- little Yes, some be

said the dependent the a see remarks, on is be together continue points we these multiple to opportunities. X customer up lot create contracts touch work how As and and assets going with come is to going it's as same we to when in

going X-year then and off, see some period. in we're be time the will So beginning contract the as roll lumpy throughout to

with Shere question comes next The Craig Brothers. Tuohy from

relating all synergies, Xx to in understand opportunities. Brian's optimization it business don't manner, commercially But growth to want kinds build at sensitive $X areas your billion to the of into Xx project asset you to historical combined produce on more I different other combined $X would commodity things. billion crude transport, by dig surprise just You to maybe project normal exports and I perhaps add decade. into question growth aggregate a incremental and opportunities late see get multiple little existing more to you want

leave or our assets of Craig, are existing opportunities I incremental with off lot you thought a would these the of that think I Magellan's assets.

So -- high very in most multiple opportunities. cases, we're expecting low very return return, low

an hit. that make of not is enormous capital amount necessary those to So

We of that better will expect think to are than that would evaluate Xx lower if significantly be I that if there other opportunities to the and not we end that. to Xx, up. see that But come continue at growth

because but maybe follow-up, on on once intend an synergies got to this you've Got to -- break we basis? you. commercial a And other finish the merger, over do the little that, out you ongoing one skis get past

Pierce. is This

going are make going way we report these we're the by But segments. all of how decision, move then to we're reporting the We we our that forward. when business. deciding we're exactly report And that in process to segment on

without possibly have far give as we As advantage compromising from standpoint. you detail -- can a as anything we'll as competitive much we

with next comes Sibal Global from The Seaport Sunil question Securities.

synergies. details regard things the transaction, just the OK for seems so all beyond to MMD now of where are there the Thanks it like which transactions curious, some on was control. this aspects transaction, are I use with stand

growth I years? was if OK plan, the weren't to levers other the in to So the are of this accelerate forward kind that could some per curious of go what pull

collaborating combined, to for are to get ONEOK, in these believe right unitholders answer see the focused to voted scratching both I'm the our going because something now, deal, people I'd Magellan on their that of our on Well, really this think both And the yes going to way I turn companies together, we're is ONEOK Magellan vote are surface out I I the be we're that going think vote. be companies we're and in question deal. think proud there that and when that combined We focused get the that very this the on innovation vote. shareholders and they is employees is companies. confident X we focused value the the companies

seems for one ONEOK a filed shelf It last additional equity. like week clarification question. And then

just provide context some curious if could you So that? was around I

Sure. that tool I'm really within for is is to no plan X ATM just nice asked That we expectation have last going be utilized have had X in -- to place have X we have years. the that do our don't that think or in But on glad of it's had that basis. we have not and utilize part renewing there you forward. we expectation to years actually the question. any We've better using to going-forward it liquidity a available ATM would but a us, -- the

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

have at in when starts that third you call We'll us, for provide until good October Our October. day. books and our Thank a a details date. quiet earnings the period close release for extends later late all we quarter in we and conference joining for

for your participation. conference you The Thank concluded. has now

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