ONEOK (OKE) 27 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to the ONEOK Fourth Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Andrew Ziola, Vice President, Investor Relations. Please go ahead.

Thank you, Drew, and welcome to ONEOK's Fourth Quarter and Year-end 2023 Earnings Call. We issued our earnings release and presentation after the markets closed yesterday, and those materials are on our website. forward-looking management this available ONEOK's provision call predictions be remarks, questions. Statements take expectations of prepared covered should during are of made that considered XXXX. the our Securities will safe XXXX to be your or by Acts After the and and harbor statements might include Actual results those from materially projected in could differ forward-looking statements.

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

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

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

Natural solidified of Vice transformation Chief good morning. our is the and and and of Executive Financial in joining morning, and and Natural who thank President and ONEOK. Vice Burdick, the our us additional volumes, President, is Andrew, Investor Gathering a available Senior On you Chuck Development; as in Magellan operations Kevin who and questions and is Momentum Vice is to growth Gas XXXX. Enterprise this the call acquisition financial stage of Commercial Swords, Relations and Sheridan XXXX for President, Liquids are Pipelines; performance Gas the answer Also your Officer, Thanks, for today's Corporate Executive closing our Services. Record Treasurer strong significant and growth everyone, Hulse, the Vice XXXX year Chief from Kelley, for Executive President, Processing. Walt setting

business earnings of growth reported processing growth year-over-year fee-based double-digit continued With NGL segments. our legacy and volume we X earnings in our all gas release and yesterday, natural

an and double-digit with into XXXX expectation EBITDA in guidance some XXXX growth along beyond, provided also XXXX. for We adjusted insight including

initial oil year realization by our the fundamentals, synergies. crude and refined products full solid Walt guidance, and more for is that products deliver on our demand a segments earnings business we contribution of the detail underscored of which and acquisition-related will provide from

turn help the over Walt, call recent ONEOK I points share to up that want exceptional sum in I growth to data experienced Before the years. a few has

to accomplished. of to the to been more. just to While future, I'll a our already reflect and it's but important share what on there has are handful business continues still highlights, many look transform

First, commodity of consecutive marked XXXX ONEOK's year EBITDA adjusted throughout tenth growth various cycles.

the $X.XX per from $X.XX same dividends than to share, Board increase. increase. another Over per the a period, we've time in And paid increased XXX% January, more approved share

volumes asset last have a growth miles from rate of grown XX,XXX our XX% Mountain X have X have alone, XXXX years Our adding NGL the rate. XX% XX,XXX the We've volumes our nearly more processing X and over volumes Rocky increasing from and grown region fractionators. annual region processing natural approximately expand gas the portfolio, capacity annual to out numerous miles of continued than per a at and network Bcf growth set records at day than pipeline extensive gas to in natural more

our and growth, MSCI. of continued our safety, ranking the of all performance, towards both this group, top acquisition, internally peer by to and a sustainability through we've finally, and prioritize from rating including ESG-related AAA And consistently industry

the are and in company's great a course even our recent we opportunities. of of and now over portfolio of years assets, positioned most deal diversified better a achieved the history more make future We've with to

to turn call the over I'll Walt. that, With

Pierce. Thank you,

fourth totaled full billion full fourth more quarter $X.X to brief financial the the and more performance. for than in get I guidance, and Adjusted year of full a fourth income overview billion year. with Before billion, totaled and $X.X $XXX respectively. net and XXXX ONEOK's XXXX than I'll million quarter our $X.X year quarter start EBITDA

results in items these unique unique of year-over-year excluding than adjusted business acquisition, increase Medford settlement Even as increased the continued. such strong XX% would more onetime While number there ONEOK's legacy from the were segments performance a year-over-year. to our the items, contributing Magellan and significant EBITDA the have

an December $X.X no than debt, fourth per our previously billion our increased to annualized ratio of share XXXX, in borrowings share run quarter our XX, and billion X.X% under or cash of XXXX had extinguished January, target hand. more had rate facility $X.XX with net $X.XX we dividend we of line credit of debt-to-EBITDA on quarterly a discussed ONEOK $X.X per outstanding $XXX X.Xx. In As on to contributing In long-term basis. million

X% an between to annual rate X%. dividend forward, growth expects target Going ranging to ONEOK

share We when a the rate thinking the next program in return target over is future. years. shareholder This X which repurchase to to we authorization, growth about dividend billion the $X also announced largely use complementary

Over of the share of combination repurchases to trend expected expenditures. ONEOK's from approximately next cash to XX% forecasted target X dividends a XX% capital is operations after towards identified years, of and flow

flexibility on capital create our opportunities our maintaining of growth This commitment to larger financial and support priority one value attractive continues strategy. our complement now the leaders allocation position continue to footprint capital return, that operating our investors invested as more of will the ONEOK's highest diverse midstream in capital. and taking advantage commitment of and for be return Our to

than net per EBITDA $X.X midpoint adjusted of share provided XXXX to midpoint $X.X a an diluted of $X.XX guidance. billion, an and EPS midpoint on moving more of Now income We billion.

guidance over in couple to synergies realize expect include the related of to also We years. next the we

detail will in Medford from higher year the of and provide moment. each reflects a earnings of products insurance excluding contribution and guidance business settlement, more operating segment. the refined full a segments segments, on This all the crude Sheridan

and of total additional synergies an million synergies, initial commercial followed assumed XXXX, XXXX. $XXX by of midpoint in realized a million for annual $XXX in As we've cost

our completed. and in as expenditure are refined NGL synergies businesses additional expect connect We to XXXX beyond the capital products projects crude to and

of in reflects capital. attractive and investment projects, to return relates expenditures, of levels with $X.XX expansions assumed MB-X the guidance producer fractionator and keep of completed our pipelines, As Once and necessary expect including West includes activity first NGL be billion, XXXX, of This capital growth trend expenditures in to of a growth Creek be early to are decreasing up to it the completed near quarter term. medium expected over we've Elk total projects XXXX. the Texas a to the capital we and expected NGL which maintenance these the on all

have Our the capital yet any include other financial does expected decision. projects or XXXX not Connector guidance not Saguaro investment reached project that

the call to turn a for commercial Sheridan now I'll update. over

nearly were natural processing connects, XX% barrels double-digit NGL fourth nearly growth strong gas-to-oil you, activity and compared region in producer ratios year-over-year. and volumes XXXX gas year-over-year NGL processed Higher levels, of record strong volumes in well totaling drove volumes growth with volumes gas quarter saw NGLs Thank with and particularly XX% X.X We day per with strong per both processing Walt. Rocky XXX,XXX volume. Mountain Bcf day up volumes increased and continued up volume natural XXXX. of

Mid-Continent process volume XX% our in than from increased Basin XX% XXXX. those the more both producer operations increased increased with Permian regions. throughout year-over-year activity XX% year NGL year-over-year, solid Well compared and benefiting connects across

see connections volumes of to the those as continue throughout XXXX We benefit ramp.

from exceeded its long-term higher fee-based XXXX financial natural on gas significantly guidance contracts. negotiated pipeline Our earnings from higher storage rates segment services and range

by totaled increases, quarter This acquisition of segment's oil haul and tariff driven of and crude million operations Our shipments full refined $XXX EBITDA Magellan. than first segment transportation refined since was performance midyear in product steady adjusted segment's volumes. the products crude longer more the

activities, marketing from and also strong optimization blending volumes. Our liquids which includes benefited margins and

across activity stable our drivers Turning XXXX to Key natural producer systems. our strong providing improvements, includes NGL higher for volumes and and guidance production efficiency XXXX. continued gas

Solid and annualized full in demand, strength our refined fee-based earnings and synergies. continued products year rates first of

contract rate year-over-year XXXX. low-margin gas natural out we and driven Overland feed ethane to in of primarily by of higher The our Rocky expiration with ramping incentivized region. lower from year-over-year we barrels through adjusted expired is raw assumptions volumes be expect XXXX expect throughput volume November recovery In still and being XXXX, liquids the Mountain EBITDA Pass replaced volumes. in for segment, Despite pipeline higher NGL higher contracts growth a

petrochemical system, the from in assumed levels oil and XXXX partial are markets in of why ethane Permian NGL the continue for gas recovery ethane and demand up Mid-Continent. setting industry backdrop we've in recovery Healthy for Basin in high the our On a positive ratios to XXXX.

Mountain expect also to opportunities We Rocky see region. continued ethane the recovery to in incentivize

per Walt increasing mentioned, day, moving Elk the officially and the we've total our additional of future barrels growth increased This will per the with recovery. capacity As out day. Creek forward region expanding XXX,XXX ethane XXX,XXX barrels to capacity pipeline Rocky Mountain support NGL to

the to segment. on and processing gathering gas Moving natural

producer in expect in Mountain driven activity regions XXXX XXXX. expected growth by consistent levels Rocky in Mid-Continent We the and higher-than-anticipated connections well volume and

Bcf impact grow the to when and volumes XXXX. the average with Mountain below day per in an region, the than this more wind freeze-offs XX negative processing well from we expect we the degrees. midpoint far In at outlook This chills X.X mid-January compared includes so year, the including XXXX experienced Rocky dropped in weather X%

drove North recovered cold. latest XXXX end several trend record levels Bcf Strong in ratios record of prior Dakota extreme had January, in of producer of the By day X.XX per months gas-to-oil the December. volumes the achieved set with gas levels to production high natural activity and to continued of the

on months, into additional as rigs there XXXX. Williston in the expect we March, carried we Producer with rigs as winter XX return Through customers, into the XX sessions planning our to spring. dedicated detailed acreage. with has activity Basin over Even through we are enter our move

longer connections length at as grow drive the more laterals These longer well in continue Additionally, X opposed and needed in historical result efficiencies see or the fewer production drilling to we continue to laterals to trend volumes. laterals. basin. gathered X-mile improved producers miles a in to

As expect compared on only XXXX the seeing are in acreage. approximately X% rigs the X-mile In in to earnings mid-continent Oklahoma XX XX% years we region, presentation, operating approximately our account our for currently laterals wells of detailed ago. we on with our X with acreage X in drilled

X% feet continue volumes XXX activity with to across and processing average Rig grow XXXX to drive additional approximately NGLs per in system. day cubic expect approximately basin our guidance at midpoint XXXX. our compared will We the to million

our contracted our and natural in At natural gas the to was of demand more was of under nearly gas and long-term In gas capacity than XX% storage continue the pipelines XXXX. capacity segment, pipeline contracted. transportation expect we XX% agreements, storage services transportation strong XXXX, natural end for

similar levels XXXX. in expect We

natural we focus projects. to continue on gas From expansion perspective, a storage

X working on decision reactivate currently on February approved Bcf a further In the we are Oklahoma. Saguaro investment Connector injection Permit, expanding XXXX, are in FERC in of expect capabilities pipeline to We the idle XXXX. Presidential by and storage the previously project Pipeline's final and our the Texas midyear

products Moving on refined and the segment. to crude

than in more we year products segment's continue business additional expect the increase of We effect fee-based higher midyear drive of to healthy earnings by We'll see the July expect to driven mid-single-digit And performance. increases rates, XX.X%. full XX% the XXXX. and fundamentals consistent XXXX refined tariff

We an expansion volumes, in also expect products Paso. from including a the benefit increase to El of our completion refined

benefits related margins blending favorable are and to market and driven from synergy-related higher XXXX, opportunities. by volumes liquids conditions Additional expected in

Walt earnings. synergies segment's crude which to discussed our we and show primarily expect up commercial earlier, in refined products

Pierce, my that concludes remarks.

and you, and I many possible Walt. call transformation. listening year employees, those been that dedicated a today. by None have Sheridan started saying this of this with employees actually of this without growth XXXX our call of to Thank would significant was

prioritize all have XXXX. With focus closing if continued past at expected for to this service I Everything publicly year quality in now and post the I on did safely we ONEOK. accomplished acquisition, months in them nothing and they our integration efforts we the So high reliable assets want our sure our of don't it to the employees that make us do of of means operations that have X responsibly. thank

communities our perspective, reduction we've the environmental will leading gas safety and perspective, we continue of reductions toward focus approximately emissions we And employees health safety XXXX an progress brought from And reduction cultures target. achieving to performance. target, X From that greenhouse our we made on equate total combined, companies XX% of together the that safety significant our to operate. a and in with

providing We've provides value that created us increased already to generate diversification. and exceptional It's opportunities is an our enabling operational stakeholders. scope scale, for and a platform which platform,

now year growth we're well of for opportunity. ahead, that, XXXX and another positioned questions. operator, is ONEOK Looking With significant ready for in

The question Reynolds first Instructions] comes UBS. Brian from with [Operator

XX. We've million synergies Maybe to start off from $XXX Slide on on original risk-weighted synergies increase roughly the of the expectation $XXX seen to million.

X-part a just perhaps question. So

risk-adjusted $XXX provided like at update specific? that a Just to synergy First you perhaps quarter? are there's us the And synergies then anything that million, part of bit that to little seems on upside provide could some commercial range revision? like second, this that is, based can million concrete It these of range examples last you what's $XXX up million point. initial you driving upward roughly $XXX

Well, by right, upside of bring we've as we amount cost the a and in we a you're we're bring in say which to thought we as to of and is going -- product synergies systems. to We full of crude many 'XX. opportunities of in which XX is And some in the by our we'll our our multiple and a be driven prioritization to together, already really, as areas oil driven lot we can of have do synergies really, see forward. year we refined said it NGL through able our $XXX 'XX forward, and And going to going being 'XX, we ones systems saving and million. different substantial be, continue reached through that 'XX, started before, be to wells going work be see

Kevin this is Burdick. Brian,

we about The if the the cost savings, of on already. you other thing, vast have the majority just those realized -- think

impact full are our examples 'XX. activities the couple of see design restructuring be to and would we'll A in So complete. that organizational

in. be So factored that will

Magellan Another example, have for cost eliminated company. been public the company

So others. many that's as another well example as

as So savings in role the a will big cost side play XXXX well.

switch Maybe return framework. capital updated the to to just on

XX% but and buybacks ratio it the outlined X% to dividends. You XX% kind of X% updated a dividend payout with to updated of growth, with

potentially So that the are clear 'XX, into this and conclusion. it cash at should when that have kind you of at going looking on you come trends that X.Xx, some can FID-ed to like on look below with But at seems bucket. existing pretty it's excess XXXX that model, point I projects based 'XX Saguaro leverage

Could us or an 'XX can buybacks? maybe how capital should you in Or in come return return to of of increase maybe look M&A that or 'XX, maybe we kind unchanged. on we capital 'XX we keep framework the in may how of as should think framework. about So about we update on think maybe interest maybe projects other and 'XX, see that fruition

debt, as open some to in want and during point paying including to start billion market. came again, off by, due that Sure. continuing Well, debt I out extinguish able we XXXX, maturities to were out the they over repurchases $X.X making of market

produce significant amounts So free of we to flow. obviously are cash continuing

share As ramp period we to we've correct that gone the that debt-to-EBITDA getting we into out XXXX, We our repurchase metrics go that still I think as you're X.Xx. program. expect that the X-year expect goal to with of over we're begin our through do

do will to we we in begin But expect that have here So intention an over XXXX. ramp time. that program to

for cash XX capital shareholders high-return we're meaningful think forward cash -- additional retaining not those set returns while to to XX% I we flow have flow, identified. XX% So yet free that unallocated in that of up make our capital to still projects

Mitra from of America. with next question Bank comes The Neel

what costs? and of how any would MB-X frac I wondering XXXX impact that and the third-party assuming for timing in those was costs you're

as our frac. Well, we remarks barrel in up first of prepared in XXXX, release, in and and the our MB-X, come day earnings it's quarter in a XXX,XXX said

it costs. to have frac impact our So third-party will significant a

think, I be estimated Our so of will quarter, a about third-party million costs frac XXXX on $XX in that piece. we've what

frac costs the already through of which we'll we've be So third-party needing that, contracted. of remainder most

second butane Got it. synergies. blending And specifically on then the question, the

Can us of give but to as can from the expand into a it of gasoline of and the you Magellan I you a that think the type in opportunity. total operations because you how together, butane can there much like of gasoline Magellan much landed able percentage how terms blend into the you of butane the opportunity operations? Or legacy you're can gasoline seems the butane sense a stream about that X% legacy basis? lot expand

it, blending get won't driven the of by regulations we reasons, of commercial too but gasoline. into For much RVP into is butane

due is sensitivities get commercial what that, want into to other to it we're too there on we a much So limit. than But don't doing.

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

wanted even the the seems some of It and the start picking off side. upstream on on consolidation I more, up side on So to kind on both theme. midstream that's the like

as was of avenue, in think I that growth we the about So at? you corporations kind about thinking be guardrails look or major that a curious, you as should terms of any assets

mergers continue to acquisition on in and to see maximum bucket Magellan really I I That primary falls Pierce. create the of think. we that the of integrating value opportunities shareholders. is focus is acquisitions, this just for that executing the to the to Sunil, question want and reemphasize be and synergies our kind our

going disciplined M&A. have our approach position. at will to they -- context going we're say we So in be other of that and intentional we're look continue and strengthen we be I'd to also competitive how do the acquisitions But our in to to to and mergers continue

in is Okay. forward mentioned your in CapEx the about grow And you good was needs then CapEx and further a to of I I volumes if now. XXXX to prepared comments, there years. the kind combined maintain down curious you could think us think at on the think or CapEx growth help and growth to And that way come then total to needed growth volumes? likely ONEOK is CapEx through

XX%. But take on, don't actually thing but some up and Sheridan cash XX% to cut you this. ask excess to have So one about I a picked just I'll then that, Walt or we Walt I'll at in chime of kind that of that on high-level mentioned either if know

we or this on identified out or projects at not point. for money -- these potentially either that working even there is there So high-return

of turn to I'll far Walt over Sheridan. as and as kind the it So specifics go,

here we as XXXX, we've identified midpoint in of mentioned think a billion. $X.XX I Well,

largest LPG the We the and are pretty of is for have the identified which Texas FID-ed being early then then done, large don't we've large here Bakken completion there projects some in XXXX. market. expansion, projects expansion projects we MB-X completion to sure the with other of in make done that and have those want the West Once the the we any

of So peel they've come as you into kind can away XXXX. those

free can are growth that looking and expenditures opportunities the and just probably will be accelerating achieve that and ones and really Our find out do flow continue of and type that more will bite-sized 'XX be we that routine facilitating we going synergies to of more will in to ones cash 'XX. we're

The next Wells Fargo. Blum with question comes from Michael

Question on Saguaro.

If of you that most CapEx Saguaro 'XX? expectation first in And 'XX come much? would that down? mid-'XX, all, 'XX 'XX that change the number that FID of would change into fall CapEx would your Or the and would

permit LNG the approved I'm note strong to the CapEx one And Michael. indicated worked Walt the the to to call in is but backing a there's we on And things who of reach to been of kind look the multiple least I markets. want by on major by sure that most as take I players for at Saguaro, going or there. is the economic employees it commercial really question, And those to all pertains route and it interest that thank make that that's this getting this let actually Saguaro, at I process. the markets couple want

project the far of see fill as our the be in financial we kind our the to then involve portion I'll we building our of will kind the across let here's clear the that this the the And brings noted with all details commitment is to as of versus U.S. procuring the in this pipe, risk the value and to really Permit, said it pipe that's make border script, which operation that commensurate the of Presidential project. U.S. in getting as to shareholders of with want that involvement, along complete, pipe. And there. the of some going I that our we where the Walt

about FID you'll in the to Michael, I see midyear, Yes, material of forward. in program. be -- that reduction Projects fit our the not and as before associated beyond, would would not And XXXX seeing to it change capital change the level construct comment given and XXXX a we'll with anything years of XXXX. that timing, gets there's capital my we think right go couple don't CapEx a takes if over a within

on we of -- kind little wanted highly Creek just Great. you to you ramp bit this utilized this more a announced. Should volumes could ramp? be of expect Maybe start-up, [indiscernible] help gradual just or will at to us And maybe the Elk like then look could expansion ask highly a in what be understand the like?

we we're in Well, the pipeline to out Bakken. about Michael, XXXX. [indiscernible] always run want comes of out to as of And capacity of going make we've expansion, we up that quarter not first said that's Creek think the Elk coming sure the this why

expecting So -- ramp the the we lot oil on grow basin volume seen we increase one in activity volumes continuing growth increases right other we've And to we'll into as of things now affected continue how the to and out basin. seeing much drilling overall is the if as we're a ratios up. there. incentivized coming of we And that is One XXXX. move conducive and the in gas have to and is we ethane are that the need then there's

growth think backdrops. move see bit those So XXXX into pipeline as of X we a I we on this with will quite

The comes Vrathan Reddy next from question JPMorgan. with

slides guys prepared on I and the seems pretty producer appreciate 'XX. like in up even X-mile in provided you share of laterals the step the it efficiency significant in in a remarks, there color the

at volumes be up of frame other reducing point? kind we greatly to could about maintain thoughts thinking in should So X-mile you required there would thinking if the any increase Or be this the CapEx laterals, current just appreciated.

and more then growing X-mile Absolutely Sheridan. with is This Yes. laterals. efficiency

production is more well each going to that. have So on

need drop X.X X.X the a bit to guiding we And Bcf that are off we a of throughput, over spend Bakken, processing capital to our we also see have that and in volume. are in area going little Bcf previous up to So remember of there. capacity from we maintain cadence the on

have a in leverage to of So grow working we lot that area.

will capital So down. see we come our

second I the could how once playing guys for the hit you any just thoughts see on any share service wanted volume pipeline starts the GasLink year. Northern there one, Border. could LNG we throughout flowing then And to Mainly, see relief on And dynamics Canada? Great. you if Coastal to on on out

Vrathan, Well, is this Chuck.

As Northern appreciably see goes, There's think I a that down impacted will day there volumes the flow far that's of as Border we long-term volumes the will coming Canadian don't Border. million by be a XXX Canada. today, continue held stronghold diverted producers by about down to that LNG Northern to

relief So our full some in there's headed with toward a Cheyenne And deal relief Chicago. the Hub, Ventura that's down WBI guests and valve. nice been business, working to to been a some remain pipe G&P move will in

call some million Bison it, You've of XXXX of relief. Express, XXX another, about that of probably day be offer seen information which will a coming in should upwards QX on

for couple So the well I think pipe the years. is of next positioned

The next Citi. question with Dounis comes from Spiro

focused online you've go the major quarter just follow-up of the of a back on to kind X Maybe question, 'XX. really but projects Michael's in first got to coming

'XX? on starting return the give sense the As about how capital us of X can billion kind initial over to projects quarter, for was up multiple $X.X curious if that and EBITDA what just think ramp for up about of you those all to a

the that. first of part take I'll Well,

the at full. going one up think MB-X projects, As and of come to we about is look those ramp-up, each we

will -- having We frac today. we're because third-party capacity

to a high going be rate. it's very So operating at

on going be So very to nice multiple we that. it's have a

contract a upside that going have said we've of contracting As are the West and acceptable Texas to on return amount an with forward. volume that with to continue expansion more significant we

So on on as to Elk grow lowest whole we're Creek probably don't be need as the expansion down we we a going that to continuing multiple that be able multiple projects one to we're is drive that. would have a rate, to high will lot if to very that utilization of well a at the below low that X. point volume get we And multiple. be The

XXXX Okay. And sounds to infrastructure helpful. develop to the maybe to it those plus, achieve That's for going synergies, going back to have you're new some synergies. like

curious, you're for a that sense sense looks Are what give out you a what building us Just Just the these systems? within storage tanks? these can connections of there. Are like?

Yes.

I small going be capital. here, down be be that our of system. some all -- tanks connections think and small to depending it's kind here, all stuff. some It's going to relatively up going to It's

So it -- of into to before to forward that come be time as we head it some we'll will But the of frame. that, we look most 'XX 'XX. achieving as continue

Salisbury Next Bernstein. with question Ann Jean from comes

Border think XXX it XXX out? Do discussion on we've contracted. how about you at understanding you have a already Just follow-up directly plays is comes here Bison actually on the of in XXXX? a at And takeaway hit Northern earlier. that think they limit do My on Bakken gas mmcfd the until the rest from of looking is Canada scrapes the that sort to

Border will is to really I million I a Jean said. Northern I come Ann, what this think continue Canadian the from Chuck. legacy XXX producers. day the stand by down

Bison and Express the out So through absorbed will growth coming WBI expansion. Bakken the be the of

Pierce. this There I well. is So Ann, today. what Based I capacity seen, mean, at this I've Jean on as is look actually

the So you there's gas-fired no Dakota going some North restrictions facilities look there's in generation that you be are and built be kind if be natural the future also you to takeaway. restrictions in there's anywhere also gas in anything and the look area going not if today. the Bison to any And at at look going at of on that to fact seeing then near we're WBI, Express

remember on we create need ethane the we to, and of plenty we the that that it think to have that if we NGL takeaway, And pipe for capacity Yes. natural extract while gas. do always lever more there's can put

of on looking ethane some That's talking about then was kind a follow-up was I earlier. that Sheridan exactly what the And of for. outlooks

in does the I think your of for demand on And have of outlook, Bakken the still years? a now, associated the be gas Mid-Con next from or there's a risk ethane new exports over that could likely And ton couple not domestically rejection of that drag or will grow. EBITDA? few increasing but years a

a get Potentially, a then recovery capability depends lot depends of I ethane on when chems running we a we see in across as the rejection online. ethane bit and area export footprint, And think utilization A coming price out XXXX, really what on big impact are little natural is. as we'll in lot more hard how about the that pet is think our on gas well.

very good from feel of we Bakken see opportunity be more those our as but coming where swing a rate. see big and than NGL Mid-Continent And bit we're operating of swing, system out continue of levels. is the utilization in bit just ethane is at We little thing be they're as out recovery, a at pretty chems have the the that I we G&P ethane going think to seeing, into fully lower to could move the maybe are, little much rates how we incentivized Bakken. But XXXX, system integrated hard a high bring well. pet we the to are

Keith Stanley with Research. The next question Wolfe comes from

How your an around project? are risks if I and I for relates thinking you Saguaro FID, it you to and as start deadline of Mexico think DOE about project need to extension exports. for wanted their on risk mitigate and contracts? so your they in-service Pacific non-FTA how that issue follow up declares that that do

countries. XXXX state, Yes, DOE both time start MPL FID ahead adequate for first this the And and is is and for Chuck. post received they X where FTA approval that have in this Keith, export go to back project as trains, non-FTA approval. you

second trains how So this going which their X, balance exactly X don't I now And about requested train know, obviously, out we're of the approval, seeing you that be right we feel for know play would as and impacts X. pause pretty the to year. this is good,

trains So as post-FID, X today. and feel here sit good volumes we X about we those

Pass. of to weighing at Magellan just you're Okay. a that versus to potential looking greenfield export the and any there's use on early option facilities Sabine stages thoughts how business I LPG potential enter the the think, or sites updated And second in you're question, at the to other

updated thoughts there? any Just

is This Sheridan.

exports, we period alternatives you're LP we same the the time a all have we been that can what we're publicly, look think On to we of right, share where continue have. for as I at spotter

from site could understand their greenfield from physical We something a if have standpoint put the if assets, a we to on some there sites. there's trying Magellan synergies

So enhance able export I've barrels we our LPG right that. absolutely our the But think to other we through it's capabilities continue need do to see now, the integration, as at could the continue that something said, export as facilities. has something today we market to be we not as we that move but

a there Mr. that to Stanley? Was follow-up

No, that's all.

Chen next question The Theresa with Barclays. from comes

year, On of widening refined opportunities more Coast, refined the product rising for Magellan Sterling there legacy being system significant quarter software long-haul the after was earlier from price the incremental result? Coast as and Mid-Con the in Gulf products and versus a discounted product ship thus created outage. movements for the the swings heavily also side, beginning this then Gulf product when to the with far the [indiscernible] you the assets use is roughly Mid-Con into opportunities earnings prices, product Mid-Con on first year, the of to the Has towards in

group. What on I'd the quarter. movement comment specifically moved mechanisms any not first movements I right and the now, to NGL do we're pipelines the products X We in the is, here specific can on the refined with What going pricing in between Gulf fourth quarter tell pipeline. see is say that have products, and refined

opportunity haul our seen refined have tariffs on longer system. We for product

the going the Okay. to butane RVP blending your And about Sheridan, requirements. comment and back synergies

So of that even opportunities heavier differently, the some from of alkylate? the Magellan downstream come some your of and the octane have in in feedstock components that this gasoline said NGL happens, acquired of for than create gasoline that pool and some volumes gasoline the assets more comments a time your the customers lend blending that barrels? refined to uplift exposure out frame, your for to the to can now getting does isobutane for the just pool lack flows as mid-April after given switch butane does Or products before,

could barrel, into looked potential look we've unleaded the gasoline there at. the of at pool for Yes, be some the component that some we as blending natural

in big through their The how run whether as well. refiner to long high alkylate, a they're know, to in going been very of going going time butane propylene difference NGL terms grade not for pretty grade isobutane strong. that or is a specifically RGBs, stay in through business. the they runs that we've those unit those quite alkylate are is priced alkylate some into servicing units and as run As alkylate refinery unit typically, or you or usually, legacy those they And

steady. little So see used. run run we if we a propylene more unit, through see But pretty alkylate bit they typically, an more isobutane being will

Next question with comes from Tristan Richardson Scotiabank.

a Just the on maybe WesTex question expansion.

or make you optionality maybe complete. your the just a readily progress the timing crude you decision that on [indiscernible] what talked a bit is of product can service into just and final NGLs? And once about how that pipe then while the about legacy to And now little have and You've deal quickly put transition?

Well, option. is -- right we an it now,

that We option. haven't exercise decided to

on the We continue growth see NGL good to side.

a is there it big work going decide it we service a some that continue possibility other product, because to be on If which the more Mont So to area. want to take bit we a do good have will side. in to we'll header downstream would time on be it. we Texas, little assets bit from want able determined run if Belvieu keep to little it Mont the to run out of service West thing shift Obviously, on to to us it way NGL have systems is to to to our we in Belvieu

moment right coming it see we now, side or of we're good feed probably to is it product because of gas to another leaning area, direction. up want the Houston from are be raw would growth Texas Belvieu we liquids of side moving into as in Permian. this going the But Mont more towards continue pumps the already West of the If quicker that out natural set it the

talked Sheridan. And implies future you 'XX X and for end this percent, you gets a here. think Can Appreciate -- 'XX, as talk it, off that as CapEx what flow. then as or major you maybe about capital XX% for what the for we of certainly questions higher end in in about couple But that about implies free that Walt, and just what a about projects of the the thinking coming 'XX future cash that to lower return and maybe to XX%. curious,

what return identified would from CapEx that ramp clearly, throughout that I Well, as before, we standpoint, capital that expect today we to have said period. a with

I of we think be increase amount when Obviously, it cash goes will our number that flow. producing meaningful a CapEx free will down.

just availability So to XX% going a bigger CapEx, we'll after in stay it's be XX% still number. to that

opportunity So for give it us shareholder more will return.

Kind in EBITDA implication lower there end your what the kind of Tristan, our end. the question Pierce. this versus of drives the of is embedded higher is to

And out crude activity. think more it's these products volume, our the might to be And quarter But in by that then the of is quicker execute recognition that and I synergies. between also up. probably our and pipe movement of first course, user systems across of Bakken. make the want the forecasted then assets that's refined worth -- those existing things we've connectivities to which we there. on impact that capacity our filling third, clearly to sure that than to footprint. downside we additional prioritize would oil this those mentioning And those XXXX across and NGL weather already is make going of get continue And the mentioned

those just kind that into and might above be far All Walt below the of go you we or that of midpoint impacts about. how talked what

from Truist Securities. comes The next Dingmann with question Neal

the there it we there? on My just all key just Midland in Delaware NGL from wondering share I'm expansion? at or if first you should Permian NGL pure are notable seeing basic Is And specific other -- areas Permian is mostly this question that are market are demand pipes where specifically, then be off, contracts or areas? all NGL rolling you looking more wondering taking is service.

customers seeing some we more and about Yes. Midland the and based have When Delaware-specific. aligned, more look out and we growth specific, have the more there and the our we to system, that who ones we it's at more are Delaware, on some are as look Midland that we're it's

overall, opportunity bit that see of some to on source be kind able coming we to a little an depends basins us at that. we system roll a forward. us seen rides both different of more So into in that We of bit really our kind little is bringing to of from as taking in drilling What terms volume But we've customers we've off, NGLs who's going forward. go those time. -- contracts or to seen

lot depends depends customer. a on really -- lot A it the

makes that Yes, sense.

just out and slide, Slide then areas And you'd on the upside? upside that just the follow-up you wondered batching seeing -- just on the that quick thinking, are Okay. like there opportunities. XX laid majority a are just key quickly, that that wondering this synergy I'm batching that anticipate of I'm shows how here wondering on you timing-wise,

to going see really we're think lot system. I batching, that on Well, throughout a of it our

already today. of it happening is Some

have continue we central But happen 'XX Coast. and to system we to connectivity are and lines opportunity see we the to already we where out even Texas. opportunities as then will we system, Those through together. Gulf that 'XX opportunity see continue throughout it the see of assets XXXX. that We opportunity on some that will Some that the much these that between the as as West in bring see grow on

The with next Craig question Shere Tuohy comes from Brothers.

opportunities, site? opine frac for Medford accretively acquisition rebuilding the meeting the could you XXXX? CapEx prospects does repurposing and/or legacy possibility MMP On on another And by of frac increase

at think really we I what don't Medford all is there. This MMP the affects have Sheridan. -- affects

look through fracs. what could our existing as And about the needs of throughout frac right we now and think really what only to whole low-cost bringing cost is in by or that can and looking very at facility bottlenecks our we expansions system very of get back by continue Medford get our As of type we're low wasn't Medford damaged out there, increased we capacity at up. we a portions fire certain parts. The at capacity

a at of capacity have there little very dollar is to less So an per low think bit capacity. a opportunity we barrel there

we really MMP growth impact next don't to that's capacity really coming fractionation have the acquisition a So see big that. and where from, our we see in

or question benefits commercial in which you be the almost conservative would so expect It you Is in fair G&A that last on full a million being sounds $XXX And that side. Great. on like assessment? synergies. XXXX, the suggest might

side. mean, Kevin. it's progress I said, we we Craig, obviously, savings feel Like we've made feel really our cost about we good the on --

just many of kind than I those think quicker synergies of commercial. naturally, the come

of side. add did for to plus prioritize those. the We continue kind savings XXX upside We cost to the

continue good particularly there is that synergies to to trying going that, be 'XX, of the to those. the we'll just chunk are savings. message a But cost in we're work So send

comes from Zack Van Everen And the last question with TPH.

kind overall the back up Just are NGL recovery? ethane Rockies for Is like you put noted lower it Or of that numbers than XXXX, you the Just growth those looks to year-over-year the a trying majority the contract is year. less that to but going growth, expecting X% just together. X rolls Overland? in on bit of

We be coming -- upside could The some ethane think less in less there of Yes. expecting guidance incentivized the put or definitely we growth, on there. NGL have Bakken. our out we the are

that has forward we impact. knew margin, off to then that be And when up. contract high-volume that an Overland be longer been moving will not of very contract renewing the we contract no were came going contract has We've or to volume of an that we getting very Pass is that expecting a impact. So low it kind

been So plan this time. a period that's our is in for of something

G&P what's bit difference versus the NGLs. at growth So that's when kind a of on you driving look growth the of on little

to Got over July, you. shifting digits. you noted in mid-single makes adjustments And then rate sense. That the

higher regulated overall? pushback market-based or at the of any trending just how X.X% if that customers going on towards hints had at looking you from calculation conversations adjustments. kind Just FERC that Curious

have understand that we digit there marketplace, we single do rate we've be. -- kind do rate those to very on not and but the But market-based of what We we're haven't do. a varied adjustments, that's appropriate locations. look given yet at one the make are it Mid-single-digit to we're we our we will look market But understand we And just those the at conversation going before do have of think in customers, decided is each determined what and adjustments. extensive dynamics extensive why with mid locations going do it exactly what's what at

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

All right. Well, perfect everybody. timing,

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

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

You disconnect. may now