ONEOK (OKE) 1 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the ONEOK Third Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] Please note, today's event is being recorded.

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

welcome Third and Call. XXXX Rocco, you, to Quarter ONEOK's Earnings Thank

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

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

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

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

realize Kevin of commercial continue the synergies Magellan. we includes Hulse, President, the business, is thank for answer following Vice and as crude assumed morning, Andrew. and vital the responsibility for company experience technology, Officer, lead we of the and commercial Chief Investor position continue and for one everyone, Financial and Processing, Gathering and identify, Walt Natural questions Thanks, you innovation Executive optimization, company. Gas are liquids position integrate cybersecurity, NGL your the Corporate the Commercial Vice information Also which of enterprise Officer, businesses. be Vice Enterprise acquisition Executive to Relations information Chuck who Executive qualified Kelley, Pipelines; our to Treasurer Swords, with technologies us. Development; President, Gas has Sheridan Burdick, President, On and value Senior newly Vice prioritize and created of joining Commercial Services technology, Natural as Good for and to our integration available activities. This workforces and products responsibilities and Kevin will refined to Chief President, today's operations his is in call systems, uniquely integration corporate processes, as

I then, from has stakeholders just exploring integrated the commercial, commercial we've What point, opportunities XX And companies, the acquisition months. engineering the getting responsible September importance prioritization, and coming integration time, collaboration going is at opportunities, to full and a of that opportunities synergies been of fully And month and and over on evident since after of additional synergies both engaging value in expect this based is the activities, come maintaining significant. us. ago. and the say are teams. combining presenting and potential on at companies, and focused operational the access by customers this become can forward the of commercial combined reliable our the completed employees the our We optimization on number More same the the possibilities. But to already our operations

to already XXXX XXXX combined legacy value operations expect new free a a scope the solid synergies, strong operations and tax businesses for ONEOK's to our which expected products fee-based and up We've added finish primarily create for are significant performance. and refined setting diversified crude cash through and exceptional with foundation increased scale, stakeholders. us enabling a is earnings ONEOK's and flow

announced second third the we time for this XXXX Yesterday, pre-acquisition a our full basis and financial guidance earnings year on quarter year. XXXX increased

better portfolio double-digit with all-time in which with of the also and growth production our is volumes operations. guidance our Dakota more August. impact even North will across reaching NGL make Magellan a healthy, our strong positioned robust third the little our across and now across activity volumes expectations. We in new underscored saw provided gas see consolidated a most are gas favorable of natural that a and landscape The continuing conditions drive market confidence guidance new includes is in to opportunities provide Walt the detail in and systems, quarter producer We later, continue in diversified more processing of operations acquisition. our by high to industry assets, to the natural we our bit

call performance the turn and Walt to I'll update. that, the guidance financial over a for with So

Pierce. our with start a Thank $X.XX brief $XXX I'll totaled net quarter third you, XXXX third financial million quarter of overview or share. per income performance. ONEOK's

quarter a days Magellan of third-party in Third million part X quarter X have those on and mark-to-market fourth billion earnings blending noting, an aren't excluding fractionation year-over-year. worth more settling an necessarily gain full products butane earnings of business. in the from earnings of the due partial close derivative to than XXXX. from million XX% following crude days $X the EBITDA EBITDA of refined third It the indicator totaled adjusted includes transaction seasonal the earnings XXXX, of million and acquisition, adjusted the crude totaled commodity $XX increase EBITDA our uptick quarter costs, would quarter is segment million Products $XXX in Adjusted for positions $X.X segment which billion, third $XX the $X exceeded of segment. Refined and costs

borrowings $X.X we of than of billion on hand. cash As agreement and our million XX, no outstanding $XXX had under more credit September had

X.Xx look we debt rate basis. transaction on an to excluding we XXXX fourth costs, As adjusted be ahead, net expect annualized to quarter EBITDA, approximately run

$X.X announcement that Magellan ONEOK we've by to a impacts original original EBITDA the operations accurate our adjusted billion guidance. expect August. in midpoint in increased of in than higher more order $X.XX exclude On These legacy midpoints million. our XXXX specific and February, Moving guidance EBITDA $XXX is which basis, a now guidance. midpoint comparison increased preacquisition with provide from net increase to our income $XXX we guidance and are acquisition of billion, our adjusted XXXX midpoint million last on to Since

costs expectations Our are our rates, natural sustained higher pipeline operations, higher strength across our segment. lower-than-expected guidance volume and by gas driven fractionation fee strength third-party NGL average in

XXXX Moving on the announced which consolidated financial impacts to from our newly guidance, acquisition. Magellan includes

adjusted products crude $XX crude also the inventory following in the include segment at and of billion higher the being segment of an EBITDA close a of and of also to on the value. expect million September XX midpoint $X.X includes the $XXX from earnings consolidated balances guidance We Consolidated $X.X of in valued refined midpoint commodity includes acquisition billion. products related Earnings net earnings refined the costs. approximately million XXXX time transaction pre-acquisition acquisition assumptions unfavorable and impact than for income

of with inventory impact reflects the crude these segment refined the previously inventory will As increased have in million is in to the to adjustment. The solid expected recognize would pre-acquisition the which additional we the valuation. recognized $XX sold, same inventory. perform valuation XXXX fundamentals value smaller are inventories related at margin than despite line impact its unfavorable a expectations, products in of been expected segment is An

legacy Creek We total This initial activities related Texas fully Elk the to Magellan and of continue of billion including in capital XXXX. looping and CapEx maintenance growth expect assumptions expansion to excluding approximately activity includes the for continued pipeline $X.XXX capital West strong and expenditures, pipeline. producer and NGL

we remains outlook growing announced May, EBITDA look in across combined As When acquisition financial operations. we our and billion supported adjusted volumes total strong. our ahead, by to expected the in $X stable we XXXX, approach

to for exceed that we believe those today, outlook stand and over Sheridan commercial has is to increased a the further, call we potential update. there expectations. I'll a in our now turn only As confidence

Walt. Thank you,

start Let's liquids segment. gas our with natural

the the driven September. all ONEOK in XX% ethane levels. higher these Elk Third and into have XXXX resulting slightly initial quarter day raw increased volume propane long NGL third regions in both volumes time recovery operates higher strong continued throughput and for where XXX,XXX Compared from volumes with pipeline plus activity than with Mountain in of why XXXX. quarter increases production feed Rocky with started Rocky lead averaged and X%, basins, compared supports activities Mid-Continent Mountain XXXX the provides quarter second NGL volumes continued Rocky seeing The growth increased more barrels year-over-year expansion. Mountain XXXX, further in region an Creek by per region we momentum

continue maintain the ethane the We year. of assumptions our recovery to for remainder

With processed incent the more volumes billion the partial recovery and to per Mid-Continent recovery feet year-over-year. X.X averaged gathering increase processing opportunity gas recovery, than segment, a the and in the near XX% in quarter third day, in Permian Williston. In natural cubic full

of have feet production cubic North mentioned, gas levels billion X.X Dakota than Pierce day August. As volumes in more per reached record

region XXX dedicated wells. and completion there in with XXX crews increased year-over-year also our through of Mountain feet pace X.X to per with of activity process in third remains during period than XX connect Rocky to compared for the completion XXXX. our connected to We've the guidance September. volumes quarter completions compared approximately previous Mid-Continent and wells the grow averaged volumes year more with well third region, region more XXXX the rigs a of the XX% operating to first our the XXX now approximately X% months second billion and connect wells XXX approximately and more on cubic quarter increased the the reached and process acreage, increased approximately than than XXX more expect X per XX the day with rigs guidance of quarter during of strong increase. We've in last are XX% half Our the which connections day than the compared Bcf -- XX crews basin due production. In to XXX year, same Currently, for X.X enough

acreage currently have region. in higher areas our see continue and focus We on producers on to crude producing dedicated rigs the X

through the XX months We first have with in compared the connected region of X period in XX the year same last year. wells the

of end to the well high be to expect Mid-Continent at wells our of in We XX XX XXXX. connect guidance

fundamentals operation new timing perform consistent segment acquisition crude the year. expectations blending closing, of we're continue third to the currently product drive already segment. to strong seasonal X butane to in with Healthy have business on and were due increased seeing this earlier continues segment that refined but in from of this margins. and We Moving to days the only line performance, the the quarter

with and through results opportunities, we ahead, will seeing year-to-date to demand drive benefit transportation services. electric even additional for spend long-term continue for growing Texas in with legacy employees, in storage demand and saw as and Gas this Magellan demand in which -- remaining of segment, We're heat opportunities list interruptible expansion drove from for in increased more strong we're the segment storage growth assets And to Oklahoma quarter generation more synergies. and Texas continue a capacity opportunities. In Pipelines we the demand natural The Oklahoma from Texas and we the expansion gas time increased Natural see with during the and Looking extreme storage strong. services seeing additional pricing. third

facility the the producers west and the in reported to FID Permian There presidential pipeline export Connector permit continue customers export expect has anchoring gas shipping remarks. fourth project. Pierce, toward multi-large, the interest relative concludes the in from Basin this end before and from the the Saguaro well-known support quarter. work of to significant We receive potential been to LNG to my

for very XXXX, Thank legacy employees both Walt, and with employees. for service months color the that X only With you, our left a for place. time be employees vision Thank still and Sheridan all there's I for was adding progress strong made teams to what our the the a for our investors seen to ONEOK And lot you certainty much quarter. in level your to already field the our about. incredible continue and Since of energized privilege excited you're visiting can of through sites. and closing, an support I've the ONEOK. doing be say visit of the you what office to we many reliable Magellan to thank high additional to that I'm in locations, of safe collaboration by future and enthusiasm in I've and trust had of and to and have we'll operations. our continue between

play future ahead. With is of years the now companies long-term will operator, the together we're value for and ready questions. that, out bright in Our our bringing

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

growth to to off into only take talk synergies. commercialize that had on and I X projects some know ONEOK the about. and you've start the time pro forma CapEx weeks Maybe larger likely will

just and last few you just low-hanging And blending synergies talk bundling. you've can particularly seen can of some discussions around over some see Have you if there? some batching, we when around commercial initial weeks, curious the that smaller the seen about commercial realizations So success? fruit

I'm your seeing is you part start then it and the off, are Kevin to what this. of the of of start I'll I'm some of going kind with kind kick over to things. on to of smaller question immediately with going kind So

that we from place. closing, and after synergies insurance, was that know, day basically design immediate have credit in put facility you the which As do realized X, board are then renewals, organizational have costs, audit been executive cyber fees

things of it the to the primarily to bit little annualized turn to the large that year. I'm a over kind process, of kind more up all next things. some be So those added on of talk Kevin will to small and immediate going savings both in things about

kind all had how more lot in Brian, process May, documenting we're of went you we announcement synergy back lot back Yes, go tracking, access the integration and as through we were think we work we we the doing. if about started to immediately the how through of kind we a the Once then information, got more closed, a planning data. to opportunities really

on to And it in XXX continue as as talk are got we've has worked opportunities many time prioritizing been and we're to like right now are And point, well plans opportunities, then company Pierce speak. we've of existing we the found those there is ones refine some this We got got that, estimates cases, through teams going those of we've in capital Several captured. as achieve, identifying, like based others mentioned, go more now around others developing still, required, to place that and new value, have identified. capture. we things to different that closely. At being

results. we our captured, is in the for accountable how estimates mechanisms that to forward. what's held each that the identified relates tracking of tracking as we're have think that these are status, been owners go and we've the opportunities, place got I we forecast for key And

yes, and the place to some as kind commercial working may in that's we drive some value. And guidance February this forward. have most be guidance of and lead be Sheridan So 'XX all then high-priority will But that about, you longer team, be have general time. all -- as teams kind our guidance it overview are to those factored synergies go think of and asked his a little year. that in with the factored opportunity I'll kind of probably in move the are that of of be included in relates about a these question of process that just will the of with next we out the will This in as close items

that. relative seems West growth like type to further. has And expansion. Great. Elk it is the outlook it towards initial Maybe just to Appreciate more Creek of some which forward related ONEOK Texas to CapEx capital the could seems trending pulled Saguaro pivot like relationship, and CapEx all JV forward S-X, defer LPG towards a

perhaps And on Just you if just us cash ONEOK recent a outlook for lower? free So imply could CapEx to kind that of it of could trends? flow some CapEx given XX% maybe be update beyond? closer a forward does 'XX these yield trends and trading

you going to today. Brian, aren't Well, give we CapEx XXXX guidance

opportunity we we're And all that look of the opportunities disclosed think announce. of bit as significant XXXX without and any we towards to this material projects have point. we projects the that have, I that been ready capital quite at material a see

the XXXX, for well very up firm set to but guidance we're up. we'll that February number think we in So give you

from question JPMorgan. Jeremy And comes Tonet with today our next

pick there's remainder for for little the then to of Just back but 'XX now. it quarter, kind then million you so up this clear, guidance. normalized transaction that looking adjustment million I what's over a guess, a or bit on of fourth $XX $X.X to just a of billion, fully appreciate out inventory on I'm of the And at right state if be wanted a think of to most $XX implied the basis, way, if year just costs. and guidance on the giving maybe today, stands I And not as question get affairs last trying and right I but one

the close like might XQ. seems be the to billion it rate run $X.X for at business looking So

these to synergies Now there's at should that seasonality would I'm encapsulate any just set 'XX. then have also over throughout of thinking a should have projects from we be you $XXX moving is that base can granted impact Magellan that work and helpful. increasing you time wise, good points year, but color to that be Or realized on and Is be off on pieces different come GOR pieces in other other about? the an what of? wondering, that there's million

you've expect EBITDA that X.Xx would run Well, -- the of at the after favorable merger debt had transaction. that to a I like, this the Jeremy, there. done parts good be job we ahead direction. rate the when of all And summarizing those and at in the basis that you prepared think expectations to some we take a quarter, in say, fourth which I we announced moving is In approximately my moving the mentioned point, of I out expenses are on a remarks,

So going into relates flexibility to on that update capital materializing, got we've that's to as as that's we season. cash XXXX. XXXX get give showing that allocation go the we'll flow obviously more and favorable into all even we as it us free And you

Got wasn't it. And analyst, share ink anything be dry what can you're a agreement, that asking on I going guess Magellan very is if forward? wouldn't I now Street on the Wall working I That's helpful. the you now on

expected. Well, metrics the things to quicker flexible down which is said, like always we and is strategy with at Walt just our post same that We thing debt-to-EBITDA what going forward a with we allocation the Jeremy, out than continue there. Pierce. lot Magellan this more capital we coming have, different we've especially And it's look do done,

get now. So much about right color probably I as as can it's

Michael next today comes Fargo. from Blum Our question with Wells

that wondering time? get if think a any NGL slide, on West products there kind In way Is system NGLs you how expansion. of will optionality that? to you split over the for expand legacy of sense the could use or just I'm on ask Texas to pipeline wanted you to mentioned I refined crude. the

Sheridan. is this Michael,

more I think talking out gives the to can loop the that from move it to in into Permian, forward. different we go Gulf of which is we in that before, more to we're system been going opportunity of way into bought be Chevron synergy we looking completed, probably to the that, move look be that back as that where Texas we evaluate to is synergies, That's a at pipeline we're we Coast that tie Arbuckle that leave one a longer-term from do as service. that system from Texas to NGL West of segregate our streams the forward and refined liquid or for. II use it products, product that opportunity continue now an pipeline, is And X is type things an that out Chevron, legacy explained When But area product. is right gives think as able about that. pipeline. in for what in use all we we've us and where into continue project, to Worth we opportunity the crude the the we be there our West what the Permian into it we'll whether looping the we have But us system it the leverage at system, legacy we able bought Fort

question on Okay. just Got it. And one the then Bakken.

pipeline the seems project is ahead. moving Bison Express it So like

it should which the to potential wanted think for opens in as production? would up you? sort just more lead of reduce because project. thoughts associated of volumes ultimately I recoveries this get So this we natural basin, for a ultimately, more on to production tailwind NGL gas obviously Does the Or ethane your that

what this a that not had our has think enough that is want program the because impact going be the takeaway enough well, of have producers does we think the we've wouldn't there out I basin. production gas basin, make big up a natural that incentivized project of do on on coming there gas we constraint sure on Michael, I out to there's today, it ethane natural

gas producers grow to today. it's benefits that continue recovery takeaway I hurting ethane a have natural without allow to going think to surety the of and So we our have

Spiro from with our question today comes next Citi. Dounis And

think question you just you the when the export to maybe but announced been synergy post a don't that on positioned was opportunity. better First Magellan. something necessarily may've deal, I do

kind on things into that Just now then curious the close? do post expanding stands high is and priority to exports of list of where

we've across and to the products And believe Pierce. is the marketing I'll necessarily expect Sheridan docs. crude docs and this operate is in than to docs Magellan of along docks we in currently But they're We understand gas here. both that and into to some dynamics global in Spiro, to the brings all what that said build expertise and doing. turn demand of of just grow fill probably let kind what petroleum details any to continue those anything will us to But liquefied of do don't other refined both and propane. really

then we're we producing space going at at and if continue stock, to to that that. look look as continue to market more, we're takeaway learn take customers on side that to or wants as that. dictates And either the the across So to and going some get the we side

you got Sheridan, to add? anything So

The what confidence built with that table engineering to bring operating we Pierce, are is is addition and only the docks. in they much and capability the our marine that, already they to thing since the Magellan marine operation would I both add since of more employees, have docs that

color. Got it. That's great

for Second develop we're guess looking the question region, peers, I in hearing to increased LNG talk going just infrastructure maybe too. of Bakken. the

curious how assessing new the you're pretty a the kind just of forward? got there. in But going good risk basin obviously of stronghold You've competition

of the Sheridan and feeds pipeline. is What NGL our side, say coming again. the we've I what for is basin said I market XX% What on the is we that times many share, G&P would that have -- in on competition this

capture our that forward. and we them, of -- long-term us secure volume. And NGL and the growth to surety about with have Bakken then also contracts very customers, to coming that the third-party the going maintain that volume be able very able feel a we So on will we out gives be

Scotiabank. question Tristan next with comes today from Richardson our And

Appreciate comments merger. seeing early you're the what so in on far the

circle telescope, about about dividend the free peers. the high-single-digit replaced we've and a but about opportunities with closed that talked telescope, like to allocating now competitive to for cash curious, in growth and Just repurchases concentric balancing thinking allocation dividend is you mid- capital with with that merger be growth. project Curious

mentioned, debt Tristan, metrics line well, even our than had in are just coming I quicker expected. we as Yes,

We give going continue metrics think returning and of that's our we continue. out flexibility give debt advantage we we'll about ways we're clarity going -- about lay February. greater are think see value move will we going to us that as plenty you to to direction headed into available into 'XX significantly they as to It's get capital we and And us And forward become shareholders. allocation. give forward as take where of as high-return as more to think of capital that to projects get we

producer Bakken Appreciate from term, but do going theme, maybe, end where producers it, as see in long consolidation particularly the of efficiency, Walt. you And Sheridan, just we of top consolidate where this long what's term? or particularly out -- GOR GOR drives the game in then a terms sort do perspective where operator --

as do good as that well. that to our continues age, to talk don't Tristan, know producers end continue the the where What top And had we've they we it to know grow is GOR up -- of that's is. about a wells grow. And question.

the they of GOR. may depending come down they where higher or the new and basin because overall lower in a come on, up for a on do on, have we starting see GOR as point Now rigs some

it continue overall, up it it But to there as every well to rise. around. So the makes continues GORs move decline,

crude in that flat growth gives a in but going right in confidence are gas flat the we some good volume us see growing a basin. lot of environment, still in that which so environment, And the now, a even crude pretty crude to is

And today comes question our Bernstein. Salisbury Jean from with next

those even on NGL You any Can plants to duration the heading severe on contracts overbuild aware, of you're and towards the LPG to give kind the more qualitatively? detail Texas referenced As Permian of I'm in you underpin we X XXXX. Permian West contracting seem in be looping. pipe sure

long-term contracts important. having So seems

That's that with long-term I contracts. for or the expansion long-term have now the contracts. we both have we are NGL and that would contracted say the people expansion LPG

to to very that So as return grow. volume we do have that favorable we to We be way as a think cost-effective we to continue and of upside feel it, a be going pipelines online. a compete on that behind the lot very -- able new forward it's even comfortable with we can project have come to

may combined That's pipelines liquids helpful. do can on? think And what you roughly for remind this before, portion us the you of said but indexation full can company the the have take PPI you you generally

that there's -- can contracts liquids of portion are on the system on the XX% lot but to. market rate we at pipelines, more On individual by And as refined on it that want refined as product that our not about on a larger do move pipeline, is then the product we our NGL contain a of system of driven we new as as tariffs that much the itself. tariff

a would And rate. tariff be FERC on so XX% more

comes question today Barclays. Mateer next from And with our Harry

Walt, on annualized up for Jeremy's leverage I a X.Xx mentioned question number ex XQ run the you guess rate transaction following bit. costs,

is that previously still thought? it to And Just leverage goal curious sounds And how than you just that much seasonality you out? level bring confirm the laid to more like you previously X.Xx in quickly number? can your

and Harry, pretty on Well, we're positive headed. are things where 'XX

on problem X.X%, throughout little that we If we've That's think all below got I We've a go be. our debt-to-EBITDA as significant aspirationally bit. X.X% below that's progress it expect care our leverage we fine. we it We metrics go that earnings make have. drives don't along, XXXX. to to said a continue good if to is So spot to a and good

to and no very pleased going it's trajectory to have we're change the any direction. reason that So with credit metric of think

have bond should market Okay. And put when do about maybe think differently, refinancing? reduction You year. things follow-up balance take EBITDA about a growth the think more then you out ONEOK think flow you care how that currently Do bond debt that maybe of is my as likely maturities free that will stand? that while cash some of puts the market being we for target, and small ONEOK next and and go in between about it's you the

not or but the the won't say we've I of lot say a majorities bond market, We're for just will Well, had, cash. several last going to that cash. we that in called I'm be would generating we've we

flexibility. credit sense debt markets it makes can manner. that done flexibility may think we've or probably I the we've in the But for see very the But us for a our comfortable flexibility. reason, portfolio that. do size, to got given going So last a not go we're the to we're If may to keep manage we And maintain to our to in several. going what you

Truist our question And today from comes with Neal next Dingmann Securities.

is on question first talked you that about the My X. Slide just around ops synergy

Specifically, too the if I for realizing if interesting. all about don't you know early, batching quite comment could but wondering are potential which could of on that I'm yet, it's looks some quickly how start maybe you all comment just upside, you thinking

play going at to I they're out. to mean, just in there's the obviously, of be general, -- a variety as scenarios we that synergies, look going

to by like of other end of to will span put may in take potentially pipeline ways. There activities and effort Some ground the year. out get be may the going are that the the that, capital in others may that quickly, some that or very things some

here But things we level that be confidence get it continues So achieving to these as again, focus in will our grow is more information. think, the I a blend.

That ahead, sorry. makes And I'm then go sense. --

is what tell the What tag Well, come in, on just they that that it that saying opportunities are we you is these I I is of Kevin year we'll to matter when am kind confident to Pierce. as you a to -- said this of know there. are is give to that going timing It's we and guidance let of our year. from

you question and but second like -- little just is then just seemed touched this And last bit solid. on Okay. was Rocky quarter activity. Mid-Con my earlier, on a It

number a there, about especially the Rocky. talked connects You in of

could you Just there? add of So activities? similar I'm currently just are sort wondering color type you seeing any

we're to to are Bakken. that's increased count or we Neal, our continue well going we Bakken. this into show Yes, activity going We've Sheridan. activity, know to you the is that's XXXX think and And seeing good continue in still the that's seeing. in what

moving the that's region, continue that. Elk Mid-Continent, upside surprising with gas. also more especially us liquids lead And the items as high not on time expansion. Creek really said to And high NGL is excited been producer why there very the with we're the oil-driven continue we for long more So or times, more activity about then -- the has to that multiple gas liquid pipeline. that really but producing That's producing only rigs in GPM out we content

very -- XXXX. about and going the very continue see optimistic So we're into growth we growth being to quarter fourth through

comes Theresa today next And our Barclays. question Chen from with

there with light and the during million levels wanted think are in summer? line to commercial natural winter for during specifically, had year. I million ask related your us outside that are versus help how crude of blending past spreads in still marketing the and guidance XXXX coupled products this butane locked the commentary just much this butane, of what to refined Can incremental capabilities? Just and around length MMP about $XXX in to historical your synergies. optimization EBITDA you $XXX And elevated opportunities of synergies and XQ in octane

think we this do little quarter. yes, bit a Theresa, there's

seeing hedged, As that, you are at been this it, time. above but has we said or wider lot of have it some locked do we a down spreads been and

So have going availability can a butane we'll position. little our and come legacy is we'll see available, that's into normal opportunity we butane as logistics position, the where think we there. bit on much the work in there, cost. We year next And for synergies opportunity also blending bigger There's frame. of to butane really with XXXX a come the most in time

at And today from comes question our next Research. Stanley Wolfe Keith

would strategic you Texas of rationale that leverage just follow-up or you'd building long-term to a It XXX. lot buying operating capacity seem LPG. position? a your day to as supply lot bolster step-up have a on big of fill First, Permian Do to see and the pipeline. any in XXX a a plants West It's you NGL synergies like from doing

tell is a to about we've you day. lot and we us can look opportunities at barrels of a expanding, looked just continue that, What at out Keith, I there. off XXX,XXX different at started by we

into XXX,XXX get NGLs be into to get to areas. up contract we that. been pipeline. going very many think lot us a to it is, we been that It we're will a far, if as that But day. about out lot it value it, an space. there have for And to sense, different do the makes so on to And you of a without look barrels expand come pipeline if to contract not that A has Now having in we impediment presence. touch. continue the G&P chain able producers will we But in as of need G&P we've and able at and opportunities integrated a

coming we So attractive if across system. look very system, incentivize program West Texas and to can holistically on offer to a we create barrels them our to our

is Keith, this Pierce.

the that future I going I in and point is about where call tell think be intentional any opportunities. the this disciplined M&A to you we're

it. Got

do SWRO, Second looking with you the I on in forward on yourself? or this, by project? on discussions move but Or that you would can missed more and potential are say, likely question think partners working sorry you -- it's you at if

the time. to lay in presidential We're the in out towards the where we're when we we'll program and year. if by right working get a of position FID that And now here permit expecting and FID end the point full

comes our question next Sibal from And with Securities. Sunil Global Seaport

QX, is a apologize a volumes. like if now? missed indicate Texas what I So my I LPG system right to in could this, running and It at the step you had was of bit you little down first seems that West related question

-- Texas volumes throughput, at I'm are sorry, throughput looking on can Texas your we LPG yes, as our West like the -- West about how today? as question soon what

Yes ballpark.

over Coast, capacities we we running to day. online. Gulf we to system Coast Yes, XXX,XXX completed, get of barrels the grow whole right now, And But these on -- plants be we continue coming for we're day to is a some we'll especially our bring our that Gulf as continue when volume, through capacity and volumes have this have able about Permian XXX,XXX LPG. a barrels

broader. We've question seen Okay. few over the impacting had a any second announced And customers? if last how E&P customers the of your And dialogue my then deals with E&P producer months. a course with number was with of And that? bit is you to little dialogues regard more that I curious your was

take its think question. big -- that's a So I'll of kind I picture

done most companies. all, of way with production, I of did in what think domestic most as has are reinvesting with We kind of Chevron. with what that view to fast those recently, all Anadarko then First Oxy because very -- to actually the Exxon go and the and back they very positive forward companies large

So that we United a domestic for positive States. production as here see the in

that's say. So thing the first I'd

into refined there's opportunities businesses The more get second and these you've thing that be we a like have in only in businesses all crude going as do pipelines, this with different and to concept bundle natural that companies. in more products added deals people. gas of you areas, processing, and going forward. goes as those we that now NGL but business of one together We to when was business, not feel just And to more different even with producer, larger where are gathering the bundling your

Bank comes Neil America. from of with next our today And question [indiscernible]

to as in Is shareholders a how do cash think is for how XXXX this the you're we How program to Xx looking be and shareholder leverage return about going are that? we now? seems can repurchase you pretty in returns look and table, So guidance below XXXX just to right conservative. $X after it for to at on seems well, merger when the going like billion we're easily everything going

say, would capital our And going flexibility tools increasing. is considered I available allocation that and are forward. all to the are clearly, us available, Well, financial be of will

plenty So flexibility of and stay tuned.

Coast. then the LPG on Great. And terminal second building on Gulf an Okay. question

new et about bundling, exports consider the they priority and of that a Some try talked initially with you existing priced that how entrants. this barriers they than kind terminal to list pricing new or right combat for Does of the batching, will -- when everything entry at at price make space now? players lower brownfield your cetera, in to the LPG to on now peers the have greenfield are are just

have we export this to the new at have X to are person Sheridan. disposal of project Neil, customers to a volume of seeing built. We're support have to do is -- our LPG But doc aspirational not dock, amount interested We still uneconomical. and do a terminal. a have do the going being new we be has that that only that's able or in

there's So we there opportunity think as an well.

how much at that it to to think synergy at resources relates category. we're it Kevin which to conversations. other opportunities, to than it some the that determine of We said, ones as have that to are where we a it going the we're from look market we How As that with make don't look prioritize our money export get and how on other we quick is going work we on. I the capital. our But continuing going -- project and But before. things in we're on much can projects LPG to is have still that moved in have list dock has down still the to longer-term

question final comes our from Brothers. And Shere Craig today Tuohy with

and thanks on taking closing the Congratulations for the quarter, question. and

pursue a once? me. opportunities and or And at at of this of this if to for more the management start you better wood about little than mostly close all one responded to identified chopping despite are around bandwidth this Q&A post a to of given call. accretive expected Just opportunities kind commercial Pierce, prioritizing some capital kind And I'm you it. little mentioned prepared deleveraging, you unclear, But commentary, you're see talked all starting bit or is than the deployment on incremental

you of contracts, people, two are commercial to with we these go as on is discussions in are can September prior we and -- both these put reminder, what seeing have Well how -- a limited as discussion opportunities. far XX, how you much with just some

gotten and have we and the information, access all more just the together, and people is opportunities. the more contracts people seeing as are we're what working we're all to So our seeing

those we're something that It's so we prioritize the now are kind the if of to we that. prioritize we've going tell enough in -- that's can things, some going highest that shortest we're to make time. the amount of to going but overrun to right that have things And definitely of hard we're impact

managing opportunity and we're So not resources, get -- of are those. those lose we're we resources don't going focusing because an have on, through to we'll we're ones feel it. the the to with deal that we're But rest like we

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

everybody. you, right. All Thank

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

thank We for Thank you you, today's call. all This sir. concludes today's conference attending presentation.

day. wonderful a have and lines, your disconnect now may You