ONEOK (OKE) 1 May 242024 Q1 Earnings call transcript

Good day, and welcome to the ONEOK First Quarter 2024 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 of Investor Relations. Please go ahead.

Thank you, Megan, and welcome to ONEOK's first quarter 2024 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 to turn factors results Chief Pierce? to Norton, refer to For the and actual differ, I'll that, over cause a SEC that discussion Executive Instructions] With could Pierce of President call filings. [Operator please Officer.

Commercial to XXXX joining and answer morning, Burdick, today's and Chief and Pipelines; Gathering Thanks, questions Enterprise and Services announced Executive your and Natural Executive guidance. Andrew. financial Kelley, Good Liquids Officer. Yesterday, President everyone, Chief Treasurer are full Kevin President, of President Senior and and Officer, is earnings thank Vice Also the and you Hulse, we Processing. Natural increased Development; quarter for Investor Relations available our Swords, Corporate Vice us. On year Gas Walt Gas President, and call, Sheridan XXXX Financial our Vice Executive Chuck first Vice

our the we confidence expectations were continuing acute that the during volumes the from a were operations. trends manage degree the the caused in once highlighted than Heating volume days rebounded Volumes Mountain were normal actually to supported in first wind additional by systems, we remainder able in excessive for The contributions and providing winter higher are temporary effectively quarter. the through our region year-over-year cold and Crude deviation Products and the higher were and normal employees quarter of our Rocky see Refined the weather across segment. it results year. but to of higher, January, Solid from efforts again during as was have

supply confidence remainder XXXX and XXXX growth the significant factors: fundamentals to contributing our last has synergies. We demand, in key XXXX. is volume financial Magellan for into meeting our integration and our first, remain management year, And of efforts operations. commercial driven visiting that focused the the by our and guidance the and with meaningful across of following past acquisition several Our assets the systems, team and increase realize industrial ability all second, favorable on and spent employees which are across to was providing X months primary continued of cost momentum to

innovation Our the first. segments combined safety of business excited the employees exceed collaboration employees, most while we our are are pace on and between and our of businesses the value putting see synergy ahead. importantly, our Through about opportunities goals, XXXX to

favorable and We also and from see operators increase of fundamentals. significant gas mentioned, role. will demand natural ONEOK growth for a required source commodity as other products industrial favorable we continued or previously in systems producer demand potential power play productivity, AI-driven One centers. pipeline natural data like future across to gas our expected prices to serve services our is generation

customers and generation conversations developers, transportation need additional gas power demand. power for have center-related future data natural this of our address with had anticipate large We who already AI several power electric the to

and numerous looking and going general across generation projected others are those our natural system, domestic is of demand This midstream to serve to natural power for increase. positioned demand. we many chain, to Today, the gas-fired increases, ONEOK power power need to the to expand, gas and is AI entire a As future is affect related value to some customers role. address meaningful plants play

that agriculture remains product across systems NGL a NGLs petrochemical feedstock is our the with focused demand, continue, will refined export the in on in travel contribute continue a our We nation extending energy in our security maintain market's Ethane to picking to and continue and and the demand long-term also and up. facilities, the to to I'll the now energy and system. strengths and for to scale, needs. support domestic see expanding seasonal larger transformation. With supportive of products We Walt. preferred ONEOK our help for customers highly remain fundamentals address our international that, turn align critical refined and demand call the for and over ways our role energy efforts

Pierce. you, Thank

net $X.XX synergy strong mentioned, EBITDA midpoint fundamentals increased and guidance end businesses. expectations. the our of increased confident our original up across our billion increased our This $XX income We we new Pierce XXXX financial guidance by million range, to As We in expectations. brings XXXX also remain $X.XXX low our billion. our adjusted midpoint the to reflecting

updated Our in meet commercial of in will exceed $XXX and midpoint we or our cost XXXX. still guidance million assumes synergies

to continue or will XXXX. in additional We $XXX million expect annual synergies that meet exceed

total expenditure our capital at billion XXXX Additionally, to unchanged guidance $X.XX $X.XX billion. remains

related quarter $XXX driven segment by XXXX first We saw premiums Rocky gas primarily property totaled and first increased costs. maintenance region, crude planned transportation performance. income the were operating the period consolidated brief the adjusted the quarter or allocated primarily in financial products Of and Now share, for a $X.XX million segment NGL and from for Mountain gas and was insurance first refined note, full of $X.XX natural in EBITDA crude ONEOK's was contributions growth. its share the higher net volumes pipeline of Results corporate billion. and operational refined to products our services quarter per higher the the in natural timing overview this higher totaled the costs and of turnarounds, quarter, segment. processing

costs fourth that as corporate with decrease segments other allocation in operating for saw and a an a received in business costs. operating we lower for costs increase the XXXX, Therefore, segment they the quarter of compared

borrowings rate agreement As credit was run debt-to-EBITDA of March our we outstanding under ratio $X.X X.Xx. no our had and XX, net billion

share a balanced As combination of repurchases. through remain and stakeholders allocation, long-term we it growth, relates dividend to projects, our on value high-return delivering capital capital debt reduction focused for

see share the over of we important committed part next repurchases our share remain X an as years. to capital program As previously continue strategy repurchase allocation our $X and to utilizing discussed, billion

We have while projects acquisition. years, significantly capital and completing transformational still our successfully business growth high-return in closing recent a delevered

positioned value the and now continue to through over capital to well Sheridan call strategic allocation returning are approach. I'll a We update. to balanced investors turn a for commercial

you, gas with segment. liquids Thank Beginning the Walt. natural

system First quarter by region, fully record to averaged been year-over-year, barrels April NGL region the more have volumes propane increased Rocky levels. Volumes accelerate. winter and our modest weather. plus recovery ethane volumes XXX,XXX of Mountain the in continuing volumes driven from the XX% mid-January February in the than effect recovered day a and including on

expiring NGL enabling Creek volumes an total volume without completion, first NGL volumes the contract remains NGL for track expansion barrels pipeline quarter Elk on takeaway from XXX,XXX Mid-Continent from The XXXX and the per effects the needed in day, November capacity. capacity early reflect to growth of of full increasing continued basin the quarter winter XXXX. low-margin providing first region quarter a in weather ONEOK's

the the ethane exports These to expired ramping market-based dynamics ethane of and contracts crude tailwinds could expect replacing for feedstock recovery through making remain most at barrels XXXX. Y-grade volume the rates with the of highly year. We industry, preferred continue to utilized. the ethane ratios remainder petrochemical provide throughout gas remain,

the modest guidance incentivized current region. Mountain in ethane recovery includes Our Rocky

to on segment. Refined Moving the Products Crude and

fundamentals consistent healthy performance. business We continue and see to

coming in first and ramp blending increased also quarter, per under First months quarter as we of expansion quarter expectations and volumes expect compared volume agriculture see from volumes majority volumes our the activity contracted perspective, to a from will diesel were with quarter. benefit our in pipeline barrels we complete. a the The XXXX. to driving refined expansion which El to for in is now long-term summer From Paso, and With liquids day demand XX,XXX product firm first the pull typically is margins the Refined of demand. lower gasoline agreements. product line the fully

nearly Basin dedicated continued our day Bcf are Gas Processing XX By Moving XX had of segment. to extreme Rocky levels increase, the our the volumes averaging end the with January, increased There X% the of the to quarter. to Gathering on then, Mountain acreage. and processing volumes April. cold. the currently effect prior in achieved rigs per Since year-over-year, region recovered weather Williston during Natural including have on volumes X.X process in winter to

now continue. rigs We as and spring return drilling to additional expect are for we into the to laterals trend longer of

higher the laterals longer Oklahoma and provide Mid-Continent a XX growth XXXX. activity in with volume our we the the Gas more currently equity oil and region. In firm storage region, producers to on continue concentrating our Pipelines Natural acreage. ratios significant and in with first gas seeing we in rig continued in gas benefited region gas segment, to rigs transportation gas be were from prices, In producer high areas in additional expect coupled and for current NGL-rich sales Rocky Mountain the quarter. Natural Stable in interruptible than the in operating X increased With strength compelling we natural oilier continues efficiencies to demand. activity and backdrop

of extending in third concludes XXXX. remarks. the capabilities project current to Bcf in Both storage the beyond The be completed in Oklahoma have that an capacity. firm enabling Texas X and quarter in idled market XXXX. Pierce, of and including previously our of Oklahoma, quarter expanding will will second contracts Bcf Our projects, working in XXXX, expansion be service projects the of fully my reactivating additional further Texas injection us X expansion

Sheridan. and Walt you, Thank

heard, As businesses you XXXX into across already and strength our solid have momentum a indicating is XXXX. providing

for I we in acknowledge the and once exceptional Before first employees questions, your again quarter. to our performance dedication want take continued

across in in to who and January affected of those or fire weather employees to personally I'd Texas late Smokehouse panhandle the Specifically, and like who recognize Texas operations the [indiscernible] and our February were March. Creek early responded to winter our you Oklahoma, in

Our ready during individuals focus teams our with who these. work supporting by rise to events willing we is rest We're on to to highlighted and forward like beyond. And challenge. the that, questions. on ready now service the are mentality responsible operations and of communities with I'm particularly XXXX demonstrate proud and the and operator, looking being a for to reliable and

question Tonet JPMorgan. with comes Instructions] [Operator The first Jeremy from

could, off there. stronger. guidance component rebounded start you're like increase, if When volumes, I to seemed it they into want in I to want talking pieces the with Just dig the about

better-than-expected better Just about portfolio, And more time, system the And in break the expected on is, detail bit where seeing the synergy realization that a across or strength. to you drivers component or are the of you at well? wondering Bakken same parts could other the the talked if being what you're just dig that's you confidence. down really more could than little that if maybe wondering if as

Sheridan is this Swords. Jeremy,

that rigs system volume out we first lot the is a Bakken. with We're of out The year. we coming strongly strong that of running, a think is we have about we winter increasing throughout across and it thing the come seeing as our of volume see

So and that a confidence higher us of end drains gives the we'll be lot that. on expectation our volume on of more

in also, volume completed refined product seeing our and the also good was into our El Paso expansion we're segment, market online. We came as

And expansion allocation. for that on is May, already

we see to through year. that, complete that continue of feel remainder and the expansion go So that the

those X increase. seeing really where we're So volume areas are

As and of time company more the momentum finding we the XXXX out see line. people us together the as in think which we remainder are that more and this even got working into through we give about to synergies growth we execute will there synergies, more on, we've continue and move synergies can year, together, that we

the had really in the on also one the other quarter we up won't other see terminal products in large that event a The crude Corpus in first first planned at fractionator. operating X at our quarter, was remainder Christi turnarounds, our we for that MB-X that the is in of segment we NGL thing pushed the and cost our refined one going the the This onetime segment year. have

give a raising lot are confidence that on those things guidance. our So us of the

general have that you or for gas see Texas, there just it. do there. thing the potential what pivoting on kind time, the be opportunities? then footprint centers materializing a That's remarks, a unpack potential, touched as for in Got that see think overall, more, business to in where your guess, I guess, and of could Oklahoma, little direct to want bit data for proximate helps where you be helpful the Do over you, a tailwind demand And more. that data I you natural I West your to centers

So Jeremy, Pierce. this is

versus from -- were XX There's things, of think last I as the if years, go back kind So the far generation you kind devices it's got all above. charge one another. LED much of those we we that added between you load to of as efficiencies electrical offset pipes that things the have pretty -- that and

last the the to centers. flat for lot it's more solution really in needing quick been So momentum couple a these of first XX decades, energy time gas. a of we're natural a of Kind for for seeing that years. is data natural And for

demand So we here even decade to increase do here next going see specifically more. half over natural that, that's and the probably

AI facility, the load, gas-fired to, When to you put data actually center. say, at the the to where putting is data more, it, seen can pipeline or you enough got they've to generation a it's be and developed electricity look which to that there, electricity over center close located already a natural you generate means is you a generate center switch a area from where beside yet literally data which right this next capacity

how different to We've that exactly system. that we're But it's on focus to to is above. our continue comes. seen just all the going And of of of see of what the think that be interest to it's areas yet seen going be. to and kind in pace some something So I

That's helpful.

be make sure potential on current customers your that could have that just So to conversations point, last assets, proximate I you're I right. that want to in with

it's Yes, we or proximate utilities. our are. a not And few we assets, serve quite whether to

It's going had what a to as infrastructure yet cases. calls utilities well. both needed is lot in be exactly we've seen So be kind from of to of

Dounis next Our Spiro Citi. comes from question with

we comments you talked the you're sounds you in when even that million. to if with synergies $XXX saying to sort if of could. there, wanted like your $XXX by. upside your you're go more I goes was tie about time back finding I as of wondering it million to And some of synergies prior Sheridan, to targets quickly, back could

think that of probability-weighted. lot was a of sort I

surprised? you maybe are you provide to could getting just $XXX examples curious, you've most million I'm that If of where So some of closer sort number? been

across moving we as it out up as come more Yes. all more kind there. in of business. seeing we our parts confident getting of from seeing are opportunities Spiro, the And We're we're seeing systems see how it X storage, we combining pull better, in refined our we're are the products. how how it seeing we we're it logistics to can savings the we optimize NGLs make assets we demand together, as the tie ladder

that about. we've it aspects of across all seeing our So we're business talked

sorry. helpful That's Great. Oh, color.

Spiro, this is Kevin.

in opportunities in what on not you what continue comment pull reduction measure, are get measuring timing, you just that -- synergies. people these at as it's cost, value of thing standpoint. them. is we about, cost our to that this that and assigned what those only any a we the continue The is there confidence Sheridan we When the the transparency get get add accountability in, other also pull the all there, and improve. it's thing I Spiro, we talked then well identify I'd think help understand us And them. from is we're of side but only we We all is, we internally that numbers looking and to to opportunities and a prioritize the G&A

Got Got it. it. Helpful.

turning just Walt. to maybe question, CapEx, for maybe Second you,

the ONEOK, Some should have sort that especially It for the to of like to online. guess CapEx got we figure seem that coming head of think with peers major in maybe down. [indiscernible] started CapEx we curious this your first just that keep you've projects XXXX normalized how I'm would growing about X allows into basin. provide I them coming as quarter,

CapEx curious just like what normal side? how you about the think looks So guys on

that identified will guidance that down fair to I going route the Spiro, I'm in roll early not it's directly X got go yet. projects But you've off decent-sized XXXX we've XXXX. say all think to

that look So at as forward, capital, very opportunities we are high more CapEx much presenting lower manageable, going we themselves. have return

sustainable a probably it's trend where think were it lower to XXXX. And we than term would that look I see level, are we for kind you So for that fair of say down. longer if to is CapEx

Next Richardson Tristan with question from Scotiabank. comes

part Saddlehorn we one if acquisition proportion the expectations of what that we just of year? kind Maybe increase. for the of increase so, increase think attribute the to as Should minor on small guidance maybe could of acquisition? a And guidance the the in

put it's little increase that Yes, Saddlehorn did But the our of a was small of bit a guidance, we it. into part portion.

You that could see by probably we and increased from about we'll Saddlehorn X/X. get

Appreciate it.

We've known of was bit coming that for a little time.

seeing driver it's -- like business. our of Saddlehorn across It's that the entire doesn't it's So was across that, And little the course, really primary of hurt. not a strength more expansion.

think think Or maybe the total cost moving housekeeping full Should it. about How $XX just refined allocated corporate appreciate more of And a corporate to we we products there is a about as guys what and maybe million We all context. one. to maybe of about corporate noted You way then products of within refined the that maybe crude a just think 'XX, should costs of we around? is think segment the attributable the change for allocation? Helpful to year modeling? costs get crude. percent

over we I of to couple to do first a a corporate would that. quarters that. this costs was trend look -- as We're see there that allocated quarter the we

bit. surely, first corporate other might could costs be the So but look some quarter it, took in skew a at there that a we little

its but of would next look kind of on over I So based share it quarters to contribution. will get the couple proportionately carry a fair trend, EBITDA

Blum Fargo. with Michael from Wells comes question next Our

bit. increase higher benefits to that see? pipeline were then are AI wanted pipe? room via how to there your data at there gas also expand network, to When to serve I having center gas versus little back is compression you'd capacity load much growth, to the a discussion pipeline to look go you upstream you power actually new build any And if capacity

is this Chuck. Michael,

we As our look as capacity along far footprint. adds that at could

our to will systems As -- connected or XX about more the gas-fired Pierce think on folks are the ongoing conversations from couple projects all than those with our center. X the today, existing We're generation derived of to mentioned saying a of working come we is there's on fruition, I we're number of potential is -- those in customers little XX times X probably data XX, here facilities of pipes conversations today. Not seeing are demand the but today. and the

that where on So we projects systems, upper in of it's are in compression would but as looping we [indiscernible] the compression depending interstate which Midwest our as at whether some some several well are looking looping rather necessarily projects. add Oklahoma, the not up

So it's kind an part second the recall And the don't additions. of question. above of capacity your all of I

was part Second upstream about any benefits.

Upstream.

take you what it's don't it came look a center were like. that Dakota, plant. to a of you Michael, in the you which answer you from But there a very if one capacity longer North along question in area. here. it's data put more my from is But what's far cold So It's be an demand line, of scenario, to of does the anything centers, just say, connected and I to I'll and going what weather and the of it, a would this. it, comments we're a existing for at say on little bit that tailgate put of the data advantageous paint

do that facility or future whether a or have and space to elsewhere generation. WBI, that's tamper some maybe power Northern on natural transmission goes of basin. of Dakota be that loaded, one but way down Border, gas electric of We hours generated area gas transportation that's that, the kind for do up day, taking you're lines, load that not out whether other Then on or frees it to XX not a actually out of North the that expansion

So see and way example benefit long of see gathering the kind but your that's of the way just would answering that could to question, what I processing it's I one a of business. that's a

of to scheme realize grand I wanted a back I the that on to a go just things, can acquisition for it? for and second. in wonder terms capital if in to then And And but why also Saddlehorn it's you sense? asset that allocation strategic Perfect. rationale want why just of of small talk you a Okay. own just from makes more perspective,

Sheridan. is this Michael,

out on see growth I thing think area the it. pipeline. of an that operate We in won't It's coming we why first that crude. we own

Saddlehorn this more In own the kind as instigated seeing been that the has as by benefit connectivity has of. asset up confidence fact, of the they're fully last a is allocated. third lot a good in is, us And couple which of was more [indiscernible] of this well, that and a to gives months, area,

Chen next Our comes Barclays. with question from Theresa

market for a maintenance terms of BridgeTex a to across be and a Webster, Longhorn the source to are upcoming would in the additional synergies In to given term, be excess volatile categories is within from this looking using and that upside? significant Wink capacity activity the just or general, of a small room synergy you fit additional on this does your [indiscernible] a in oil maybe temporary near X likely perspective of outlook, marketing there have a could capture your that what realize at commodities backdrop neatly crude synergy not buckets, extent. I of you but assets

in to always, the Sheridan. beginning, marketing saw see crude is this bring from we volume opportunity our to -- do Theresa, oil Yes, we've system.

about with [indiscernible] more Specifically, come kind differential naturally X as volume on of we're think the seeing what's going right now, next out, months, in BridgeTex. the blowing we to

reason get will a that's confidence And longer more but that, Permian be add as That coming we're that the continue system. will more in it's volume the probably is of bit Marketing and see more guidance that the even with our we is little in we yet, some strong on coming haven't gives maintenance quite year. forward. And some crude out we'll volumes, a up that even our term but us on later to the that go to part increasing of up of factored certain that confidence going as we pipelines, on bit. confident

up just in Got weeks theme, recent EBITDA gas this or back related much ONEOK? to AI the size natural far on as And quantitatively, if assets. transmission what early I'm come this have any thoughts going but and for storage months, wondering you mean And opportunity just the as could has of and the it. so indications to

we all, think are Well, I in to billion at pace what got I first making to you've currently that And think EBITDA. look size at. $X.XXX of got of to the it's kind look you've see

I tell. think really to it's just early too

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

line, X So a back so the I little on bit environment versus how would the the on have, in which in of curious the in put wanted had projects, interest understand couple prospects. and rates any, in growth just years beyond changed, et was how current then the we have to buckets same rates, environment you business terms if first XXXX, that When a are the the hurdle half your you get of that cetera? beyond think your completed opportunity about I of you kind growth of

growth that our they're would that relates but it of [indiscernible] about get them factored plan growth together. different more we overall continuing synergy But again. They're growth capture excited projects, the Sheridan, more as see low them, capital we time. This we to this. already. kind baking continue side, get to is we that synergies growth and On to, go we as continuing see that in projects into type are and to to bringing all of projects more forward. are we We coming continue multiple the on capital/high

Okay.

think asking, as what you about you're I I rates. asking the were think interest

that relies We heavily on aren't debt. a short-term company

termed expect year go will probably last down All the would debt And that of we've path. case we that X that said out. be we our we have we this cash bonds had the later called has that, matured. that that And

So to occasionally, so type be higher rates going market and real self-contained, of our don't the see generating cash things. to of any we CP business flow is impact from and we're out But in forward. cover month-to-month

weak a then And Okay. It weather I volumes like terms Understood. And update if [indiscernible] the curious for bit end [indiscernible] of NGL then there? little on one the in there. sequentially. were of you issues was operational contracting seems toward Permian, kind And us me. could expansion, one in

Yes, used bit weather, really we in Permian Permian, going. more and We up little thing And is had time they to impact the get to not it any kind weather. in on of weather noticed out sequential back takes get weather. the one them Permian of the And there. any they're [indiscernible] a the

So impact it was we and decrease. saw first the weather big quarter reason some for the a volume

As think had pipeline on expansion, West going as we going contracting our about forward Texas it planned. we is

We continue contract volume on that. to more

are We to continue as we think where be we need to we right forward. go

continue that to business. plant going fractionation are leverage to and We future to the feed into for more transportation or and connects

have plants this coming As will we that have on contracted already said be year. earlier, we X

We more have system. another that's we've bring recently, to well volume onto some the one expanding. And up actually signed more people as

on comfortable expansion very the quarter system in So expansion. XXXX. where like coming we are budget, contracting on on is are time, of the that up with that today we said, And the first I on

America. comes from Neil next question of Our Bank Mehta with

the I increase. had a of couple guidance questions on

was of So little end we Bakken? occurred budgeting? Or kind downturn part, XQ that with your terms quarter. first the linear [indiscernible] guidance. the a the that should should in in on $X.XX which that of higher than of in high expect should increase which then weather in Mcf, [indiscernible] Or range another in bit we it like second something the seemed rate expect that $X.XX the roll the we a of $X.XX, an Is was is volumes something maybe first, forward? that to is And

Neil, this is Sheridan.

fee we extent, yes, continue that customers our going And fee volume in will by inflationary to earnings the on that rate. increase lesser your certain of that escalators think driven do A coming on forward, first that from fee may that rate. The have And coming thing a different the lot is in. on there. are structure a

the the everything else. of on and as volume little lumpy compressor On cadence coming out bring can a we be units Bakken, it bit

in in weather did have all the do the quarter. coming we weather you But first have across but will the or and doesn't We'll We showed up out it weather as fourth quarter 'XX, in in. other. a some the quarters usually up sometimes standpoint, quarter in concentrates fourth X the those volume saw any budgeting in and always It winter not quarter for But the all first evenly quarters. over big budget spread quarter. the show know X we it

I to opportunity the Dakota theme. on I seeing Are of wanted Got the cetera. kind And wanted see wellhead kind opportunities Permian CCGTs North clarify this And temperatures, of in But the there follow up of data to you in Bakken the the centers? are so very et Or as and well? CCGTs you your early move with advantageous I the or outside with lines opportunities concentrated still things you footprint it. from innings. then on seeing geographically know curious, AI is the Bakken? within weather to your to this Mid-Con and back more to from NGL is perhaps

tie well you're that there. take of thousand gas that's the the hit just of liquids GPM or out back is all, it too of high first the because going in to per it Well, to gallons with not associated

this where a of things really that I get natural And some of we'll at plant. more one be would the you just to you get that's multiple gas going in scenario with in lower happen little one downstream It's of tell basins. our you're need where future that's can So and that theoretical players. that locate these good kind you of a It to exploring different also a prices. point, advantageous any could it's something

of more a actually is days. have the heating natural lot degree you got you of colder, gas supply and kind And weather

So lessens that you're meeting AI on the facilities. cooling therefore, these it load

I thing coming probably more don't say the the to again to in have We'll AI, I about on the more going be So these updates it's material short necessarily But would come. in term. again, think quarters.

Keith Stanley next comes with Our Research. question Wolfe from

that up the to the but What NGL rate, First, good follow-up that just And nicely for bundled $X.XX is of year? to drove Rocky's a was question, the balance Neil's on higher? QX. run rate a in that

how even rate. that maybe we than we ramp higher depend we're is that be you rate going drove CX+, volume it's capacity $X.XX ethane rate this a there, at go a is going less Keith, that, up Creek but we manage see for have out much and -- a through higher a going if -- could to that to is be to that incentivized incentivized in out, out of drove little to obviously, lower $X.XX ethane on out lot depending What to Sheridan. Elk came that bit What continue But that because come so bringing range. is it backing little get ethane to that on

Great. Okay.

one-off Second back over are a of question find allocation on that acquisitions capital could course in you just the remarks? going to next the list optimistic of type more that opportunities like of but you was priorities the I you didn't process? with other bolt-on Western's as year, Saddlehorn, that or part noticed your

our look footprint looking opportunities the tell we for of So to this is That's is expand you one What out there. I we're at. things that always Pierce. would

far As to and as with we to related be goes, the it's very M&A Magellan. actually pleased integration focused continue as

that intentional our time, what about M&A disciplined I'd integration always -- of ONEOK. we this just on We're that acquired and say is is our going at same will year. future be has be as the organization's So at. focus look to here primary last been it at what we the

Our next from with Truist question Securities. Neil comes Dingmann

just just of for I'm year-to-date little Thanks time. drivers sort behind is some looking so run. and first [indiscernible] morning. it the throughput discuss Could you range looks volumes that far? there. is shaping Good a the up this how your like at this wondering, in on NGL raw My question, wider the

more that one you Neil, repeat time? question could

that -- side it's Just that of at just what but Y, and looking not to sort specifically would of NGL X looking the Slide [indiscernible] around the looking I'm at looking year-to-date? wondering 'XX. And throughput higher just that's expectations trend and behind on towards cause volumes sort terribly how

On our volumes. NGL raw

said incentivize we're the on the to be raw of NGL capacity volumes up we've going the be opportunities that. -- out going rejection, in the you things going ethane recovery. to big feed its on, that's our to have we're manage naturally expansion in more have going rockies come said One to until out And have going going Then but of is get to also that to is to go have in it to of the at and we is we're make Elk Mid-Continent, our pipeline Creek where end said I and capacity. high of we up that's recovery. the kind And ethane

stay more up, throughput ethane raw come as -- the the see we'll have up. wide of they out, prices -- spreads are more will your to which throughout that that fleet opportunity drive like kind year we today, is So

that's full then out the Permian, always And here we've said now. ethane on be to of recovery going from in

we're biggest to about Mid-Continent ethane seeing talked high of the recovery. as in GPM optimistic that growth volume Bakken this in cautiously are we've of be rigs areas, looks areas, really really the good different good. areas some there well. drilling We're that through go going is also really, in some we year, the that oil-rich one we in seeing the very So plentiful as going we're to Obviously, see

some are we biggest to the the those ethane recoveries, XXXX. push see could here end, swing the So areas it but definitely of in high

inventory. associated to pipeline just from come, more mean sales anticipate earnings, then what in Very with see other volumes increase your around I that just we that gas there natural continue a driven of I'm volumes -- saw driven volumes you on that? upside to part the earnings something around wondering, held And previously to by that was second helpful. about I is is these think question incremental is inventory? potential or should natural sequential wondering, just I'm was the by in gas higher

the in is Neil, Seasonality, prices QX. Yes, are this Chuck. higher obviously,

we our and calendar So portfolio going we're -- our at in when we that our up look optimize Town year, where months gas sell to and what set there. each Bridge choose and try value we're going to equity of

prices work. our was you've part QX, here seen gas so Obviously, fall QX. that plan going in at of into So you've got seasonality

still spike, year. be may pick months summer, just to back seasonal then electric and some we'll So winter we prices the up, we throughout that. into may of next generation sell the see -- be we into again, And we'll see

ethane comes $X.XX see less question incented than to spread history, that and Shere an Craig recovery this with the Tuohy you $X.XX from rates we historical of question incent ethane. Brothers. Sheridan, impact? degree having recovery. to up to that less Do to that of relative issue next bundled to ramp seeing of Our the you ethane Are Williston back NGL discounts required

is we what or done, far we ethane you'd so that what Craig, now incentivized of right the what run in in the Coast, on A say on has good more it little which is depends -- the natural Gulf the of Bakken. I'd we've what say a for this demand past. rate but as in price maybe at just the not a lot ethane gas the year, done been bit also have ethane, we've above price

in got so spread to incentivized ethane pleased you been And we with been very have far, able But the between to it. look we've X. at those so what

contracted ethane spreads, finish around see in the seems And being a to to basis off, just the of couple while? prospects Do And do separately quarters. doldrums tailwinds Belvieu you. see Got stuck that you that even to you Conway Mont have last XXXX? year-over-year into for for

the last take one. I Well,

to actually, has had On have Belvieu we opportunities. That Conway the -- spread.

spreads. to some have be them. advantage our Conway. this happy we in or we'd like can the a by time. but forward. of can in we've go If is lock We've month, system at take to both to as those look been you Obviously, at Conway We [indiscernible] we've them wider, of lock in little opportunities bit where some to the the had up always component Belvieu spreads may lock be it been we average able set Belvieu to And fairly been through that good

what guidance going were they're range between think I or They're able the saw be acceptable our going are capacity an that meet be get expectations move in plenty where even they are X wide we going there's in exceed still as a time long we to to it. get to not there as digits, But product in to going of ago not double because to at basins. our to

about you ethane year? say And I'm next sorry, thoughts about what did into

as year, to we doing to think have continuing grow recover continues -- all in is you to you're the ethane I production into we're go as what ability more next basins.

year the for that. of in we're the some that You 'XX coming we'll exports year will next kind -- ethane on see and incremental waiting online coming after

the now, a run this as them scale you're ethane, United And at to on see so try crackers advantage with a huge ratio seeing petrochemical they right continue crude-to-gas puts we're Y And that that hard [indiscernible] running. as States are to that global can. to ethane going

at you'll our due as to will So stack see or more little to harder, out able is [indiscernible] Bakken we going bit a area Bakken we see can out fit be in incentivize even the Permian, rate Mid-Continent it I more to you that coming bring a we we at we volume rate. We the think will have the think stack that into out strength ethane nice be system, going set we will up the running the a an there still, we wherever still production. that nice if able ethane to be of to the see to but more still get be how coming

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

everyone. right. All Well, you, thank

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

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