ONEOK (OKE) 6 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the ONEOK Second 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, Dave, and good morning, and welcome to ONEOK's Second Quarter 2024 Earnings Call. We issued our earnings release and presentation after the markets closed yesterday, and those materials are on our website. management available remarks, questions. take prepared our will to be your After

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

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

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

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

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

refined crude growth attractive liquids segments natural and guidance, pipeline of the confidence earnings second across gas region synergies and announced provide strategic second in the across performance quarter with and we second services volumes our XXXX long-term natural Rocky and demand into drove on affirmed products solid and our momentum oil half returns volumes, our demand strong and the services, quarter our record gathering XXXX and the our full-year business. for highly our to and financial our continued Yesterday, progress acquisition-related provide segments continue with in Mountain processing and combined gas opportunities XXXX. Increasing on our products

from natural that for This extend Magellan tied opportunities gas pipelines the specifically value NGL synergy-driven of growth ability and with to opportunities our and acquisition Easton We our expand system June, Mont made in and fractionation products was sense crude we refined to to a our and continue the commercial of assets. our the identify of segments. In Belvieu systems acquisition liquids to and recent unique capture announcements acquisition Energy. to because of downstream ONEOK even of before it completed

legacy is Now even potential and adding creation return the Magellan value greater. and assets, the

Also provide for In significant the pipeline expansion our continue to addition the products and to growth various substantial In in aviation refined area. fuel the of increasing with we Houston, in acquisitions, see growth July, Greater fuel first fuels, organic Denver to opportunities. July, including aviation transportation at capacity of we Park received additional our needed the International Marina project will aviation support demand Denver to shipment This of announced Airport. in fuels facilitating this expansion Galena sustainable from market. terminal sustainable future our we sustainable

either a provide will us supporting a company seeing we're alongside timing These operating Elk Sheridan fractionation opportunities previously investing the more to our track projects, West And of its to those announced our MB-X that growth with proven acquisition, Magellan customers. possible performance explanation already and addition projects and including strong our detailed of commitments, after to for record capacity and and Texas a our NGL synergies our growth all discovering that and more shortly. Long-term new our NGL-related wouldn't reliable of growth. have year and we committed on Creek gives own. are significant customers volume than remain in confidence expansions future been pipelines. the opportunities in Less

to Walt. are additional remains. With the growth for assets that, call potential I'll our turn proving their integrated over Our value and

million share, with the or prior and second $XXX Thank you, XX% representing share of income compared earnings compared per an Pierce. XXXX ONEOK's $X.XX a second of the increase with net per quarter quarter. totaled quarter XX% XXXX

natural Second volumes processing segment, the natural EBITDA by quarter increased in services contributions crude Mountain Rocky the segment. products adjusted totaled region, the transportation $X.X the and higher were in driven Results gas and refined gas billion. primarily pipeline from NGL

the and The million benefit in sale approximately of a nonstrategic of gathering Kansas processing contributed $XX to assets pretax net during quarter.

through the net the the We sale the assets year. earnings million have considering expect remainder the $XX from when benefit would of approximately of to the be full-year provided

EBITDA billion, $X.XXX range billion. mentioned, adjusted our our we it high quarter financial XXXX an of That after affirmed Pierce with included the guidance $X.XXX with guidance increasing As announcement. increased midpoint expected first at earnings end

continue expect in synergies million in $XXX $XXX meet annual or additional commercial in cost or our exceed meet XXXX and to exceed to million to We midpoint expect XXXX. synergies and of

of our XX, billion had As we June borrowings outstanding no under agreement. credit $X.X

the of our June we facility quarter, maturity extended of the During revolving XXXX. credit to

X.XXx with of second the line of at in In the long-term net rate was ratio leverage our addition, end quarter, our run target X.Xx. debt-to-EBITDA

have million further. balance September, even strengthening approximately in maturity We due sheet we with to expect an cash, our pay $XXX which

our position and capital strategic will approach. to balanced through well continue This allocation us investors returning value to a

Our approach and utilizing above all remains of and repurchases. high-return capital reduction dividend strategy, share projects, of growth, combination a the debt

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

respectively, as overall also growth propane saw ethane ethane contributions first Mid-Continent volume, Rocky the plus Mountain second XXXX incentivized primarily liquids growth Mid-Continent Beginning and the increased of segment. the Mountain Rocky was Volume higher in recovery you, the from as higher with compared regions NGL Thank quarter. drove with and gas region with with growth more first earnings the Walt. contributing. compared XX%, XX% sequentially. The natural from quarter from quarter, well

since of capacity for Basin, short XXXX the than committed term the In had We and much volumes quarter XXXX. the recontracted volumes in of Permian longer quarter the XXXX terms. second we first that the with of quarter committed second higher in

through expansion the depend to guidance. We've the year our to on NGL We natural by significant gas assumptions the West to ethane Dynamics Texas continue in to Favorable a recover progress continue tailwind ethane XXXX. at modest to demand expect end construction of see and provide fractionator capital recovery ethane made will pipeline and be our growth ethane values remainder our our service the system. on opportunities could and MB-X petrochemical now facilities. and across of economics projects,

Our estimates previous in-service XXXX were quarter the projects. both first for

completed a barrels Texas track full pipeline completion. remains On to capacity per looping get XXX,XXX pipeline expansion, expansion the West for remaining stations NGL expected of the XXXX quarter by barrels day the full of pump year-end, few Elk providing capacity first be is to Creek a on XXX,XXX to per The day. with the

at cost the our capacity, in first first phase two NGL approximately XXXX. Rebuilding quarter second the are barrels of and will million production. our the is ONEOK's number for will will the location Mid-Continent. capabilities Mid-Continent. cost butane we benefits. to Mid-Continent project in fractionator be be provides a phases, lowest fractionation of completed to to of need per option completed in Oklahoma. growth expected Permian, rebuild in our [ $XXX produce Additionally, expanding with and accommodate address Medford, barrel the strategic announcing blending for It expected additional the NGL also allow Bakken fractionator Medford the the XXXX in a project to expected Its XXX,XXX gasoline in opportunities natural fourth increase the and fractionation and resiliency and delivering today, of Medford The reliability with increase quarter in integrated system the per and The refined day expansion to is further ONEOK help and for volume from ] products incremental

from Energy committed with fill customers As and the refined project and the Pierce very provide on existing area. from completed recently we acquisition These in capacity the our earnings connectivity Easton key return of with associated the product acquisition additional and between this Houston assets to came we in mentioned, system, a volumes assets NGL systems we will strategic volumes, attractive providing The control. area. of through a expect NGL

our refined to tariff to value products acquisition in to expect proximity primarily our considerable area to synergy Houston opportunities refiners fractionation presents we terminals connectivity close of The assets. downstream to also of our major opportunities now the addition In the on improved commercial and NGL and earnings accelerate system, blending. the related capture

We expect to through our asset the legacy from connections in Houston-based mid-XXXX year-end beginning XXXX. Houston assets the to complete

the supported by refined quarter, crude the segment. beginning a on the products to and and Moving Gasoline summer second in strong travel jet robust was of demand season.

activity. As to our able forward it relates were to liquids margins optimization, on we optimize to and through marketing blending capture assets our higher sales

as of mentioned, barrels As demand with opportunities area, Airport. Denver the in Kansas Denver will International announced pipeline day, expansion available low-cost grow the from with direct including system we an expansion Total these increase markets. our refined additional capacity per connection XX,XXX to Pierce system continues greater the to recently by products

and fully season, a the The completed expected cost subscribed. project $XXX is Following is open million in to be successful mid-XXXX. capacity additional approximately

Moving the on more record Rocky gas Basin during increased X.X quarter. There the to region averaging gathering more natural and processing currently per Williston a dedicated are rigs the processing of Bcf Mountain than acreage. day year-over-year, XX% volumes our than XX segment. in XX with on

With natural guidance year, due laterals rates the the and our seeing see for for of connects. In The gassier year, higher the second higher longer gas the acreage. pipelines reaffirming concentrating many and the storage natural look traditional high. Oklahoma, in commodity increase remains Progress region. region seeing segment, benefits of from firm rigs remainder activity volume current areas interruptible from we prices continue could Mid-Continent demand completed XX X to the well the well the drilling we the in gas without quarter. we in continues to to in transportation Texas we in expect currently Texas Oklahoma, be are on made the as performance we benefited have the which projects have to beyond In need rig on on As X as and remainder we of expansion -- our prices, Bcf extending laterals be oilier in the operating XXXX. current towards second to the firm region, we're we next expect natural service gas both of activity strengthen the our with we which the are the producers project contracts and -- remaining NGL-rich in month. six And quarter, and Bcf both regions. In

quarter second be Our the of to XXXX. in completed Oklahoma is project expected

Pierce, that concludes remarks. my

for you, Sheridan updates. those Walt, and Thank

Many we ensuring they homes, to Hurricane impacts reliable dedication I'd my weather challenging Beryl area. aftermath. Before their operations to our assets for remain appreciation in power and the faced persistent resilience also to they its committed the of continue and professionalism. to demonstrate like Despite their our yet safe conditions and deep own and employees Houston-based conclude, to outages, incredible through express

aftermath this want this I of to employees So during to dedication personally efforts and way. dedication your in and you for that you operations demonstrated right consistently responsible doing thank event. the things ONEOK the showed have

and our has our we one our XXXX being program has commitment with have by As recognized Workplaces business company-wide to practices. as the MSCI been Greatest dedication Newsweek. AAA This rating grown, named America's continued in of and sustainability

XXth we Group week, prepared details governance efforts innovating the environmental areas the energy close remarks, highlighting our published we As deliver needs for world our last as our to future. safety, This report our while and Corporate crucial progress we and continue the Sustainability programs. Report these in

we're questions. Operator, for now ready

Dounis Our comes Spiro Instructions] Citi. [Operator with question from first

like the of some but Walt, go the high comments range, to half back Sheridan's and here. if some the year, First and I the your comments make that the a with over bit year, think ethane for below I of just combine if midpoint start you guide end more suggest is maintain to in guidance. coming tailwind you back mainly with seems in just that midpoint getting comments the there, being little a reference seem to one, you of your the maybe to around remote

the midpoint? to So I if those go beat of kind some comments kind of reading correctly? what right through that you the second of one, half here think about year, And am of to needs

confidence call. first quarter And this Walt mentioned back Pierce. did we in guidance where that we analyst of the in it raise trending of Personally, likes are comments team during where Spiro, does I half the his us a the like, the give So we're in that year. and is lot to.

the So you in come this going at with as additional take guys a we information again we're look guidance some quarter. to third to

way the that's question. answer I'd So your

problem, one. patient that be No we'll on

Second one, maybe just double-ish. to going

announced of has peers Bakken, pipeline sort your of one NGL in course, an Of enjoyed conversion you've of the the share to where there. a the market up lot

actually And OPPL point? into at So where and ONEOK your assessing curious see flow a risk how on you you're scenario this some of to is Bakken frac? volumes a maybe the there position these

be would pipeline impact say What expect an And this is region. is this NGL were alternative a of aware takeaway of don't as Sheridan. our Spiro, for the to is we out business. Well, I material on considered

a contracts for X contract small years. We basin We amount in today with our NGLs years. renewal life up Williston service, provide superior a with long-term our of system Belvieu Basin through overall think are the a is system. the in have our in market average next The very the X Williston offerings, the one on the Mont reliability over we redundancy in pipeline with both contracts seamless and value integrated Bakken centers service And on dual to the customers. in from and Conway to best

volume on OPPL, Creek be we of over Elk is volumes on control volume of you that think OPPL, that full on could to move about allocation. today, we conclusion. and a is people And we if As must when OPPL -- is complete on talk coming about not OPPL foregone We will on and think currently off XX% the move allocation. volumes pipeline, I moving assuming that

And JPMorgan. Tonet Jeremy the next question from with comes

is This JPMorgan. with Tonet Jeremy

with pick if up could. Just wanted I synergies, to

a acquisition, acquisition? what on you more for bit a this if the be your especially Magellan Following could accomplished. could Just provide if see provide Easton post wondering wondering color specifically could you what unlocking more bit platform, you color on

a we period the is we on had through to time to go a Sure, way our Easton of move that for saw end Sheridan. our Easton you of as directly the because This acquisition back Jeremy. to product continue eyes downstream users. our When acquisition, -- pipelines frac

of today on complex product In from to our which fact, a opportunity Magellan Mont through builds longer. products up, acquisition we what Easton and buy came our with an more Belvieu. But the would comes take fractionation this capital thus NGL doing create to was a faster of way saw that's to efficient acquisition refined Easton systems, instead accelerating lot synergies connect commercial and our the in new

So to it synergies just going faster. thought really, cost at a the lower before. and we're going capture capture we capital that We're to

on producer then there. out, guide. activity, see things how That's very could given you it. are I wonder just a And connects color year-to-date Got along, as helpful more it moving shaking Bakken if particularly now, you with right provide your guess, bit well versus

Just could share thoughts wondering there. you any

seeing about, on the volume Well, we talked reaffirmed side, as I on that laterals. we are volume. would earlier -- just guidance still say our is, What longer we have are

wells And so more producing and more the efficient. are

it, we don't volume connects our that pleasant been a year. even We that's as we'd to we so some more need And reach many there, see this have knew surprise and well see that it's we in of but guidance surprise. pleasant a

going down. remainder year We're XXXX. and into well So in even this you little bit volumes confident in our our the that to see a still connects of be seem very

with The next question comes Barclays. from Theresa Chen

products get crude love strength on thoughts refined segment. I'd in the the and your to

that spike area as out? you it we margins year increase in the the takes second it seasonal? driving segment, in realizing as we of the of would puts to above well you Is as largely budget of year Chicago what's land kind your the regional and look reasonable spreads earnings typically downtime as within see on as half this year and broader to discussion guidance, would where schedule? And result, product segment the the touching and product that? ahead on of within Are to in your a what going think synergies you're the and Just

is this Theresa, Sheridan.

start if think all of you kind of the off, above. it's I

very that remainder accelerate coming very in will capture nicely the the and through and synergy strong, our seeing of are year. We

$XXX very we that have as So and synergies be the at million or said, are confident, we that commercial will the cost we outlined. we it above

back quarter We activity of into get little third as more are a bit ramp But will summer the -- blending a we seasonality, will the seeing remember, the months. our up. little in bit volume half,

of growth see throughout And little we in now. for will are as always we will some anticipate have we a the us a bit in that So see well. year. tailwinds refinery Chicago turnarounds But creating time issues we right the

we feel we're at. year the refined and products where very -- the our today end segment where crude sitting synergies on comfortable we're at to So is both and going

And opportunities to the assess helpful. as That's then to the think inland your segment committed project Denver, on into help additional through within expansion? premium landscape expansion related there are can the us based markets? economics you if on that volumes expand additional And your infrastructure you to

continue on this a a very a Denver, barrels Theresa, pipeline Well, open say laid -- to XX-inch anticipate demand I project that multiple a we we on as expansion, we if Xx go XX-inch -- that system, why season. more expansion that's grow. let's and out is volume on continues say, volume capability we we on for And to cheap we're line we the to laying XX,XXX have need grow will Obviously, -- continued subsequent pipeline volume a day. into on mean and if

next question Tristan with from comes The Scotiabank. Richardson

you you were the the is strong thinking Mid-Con Could than you ethane bit seemingly see But half maybe the then looking? recovery talk at the the beginning year? little ethane basin, a trending and across And this the of in better Rockies? about just second in how

have be be That's this put at to ethane down, time through in quarter forward. Tristan, dependent fourth full and we have seeing this is The volatile. recovery Permian third is we are in ethane to the now, the always we've into as the Sheridan. our natural guidance we quarter. locked into incentivized Right it's on do very and rejection. We why up of as already gas be said, Ethane Mid-Continent prices. modest amount going recovery. -- It's a is to look some going in going just is

going, the now. see see just it the spread petrochemicals very evolves and we market ethylene, right So it's and ethane ethane as we'll changes. that to are and We wide wide a watch see very -- that having have how do

to run at high wanting they're rates. So utilization

so recovery we year. the as the we finish And that in the ethane some of we anticipate remainder will see markets

expect maybe, 'XX forward, with in amplified maybe that CapEx it, offered projects 'XX? we some given on the just Curious said haven't see But yet. if you pulled into a past, you anything the And some pulled Walt, forward of that you've Sheridan. 'XX CapEx. then really in downtrend you've Appreciate should and versus projects 'XX curious

were we in going Tristan, Well, finishing to 'XX. those projects be up

clearly, that the and to associated We've added couple to project So that forward with really was capital those going in will positive Denver capital. tag-in for that move the projects over a be a of material the of years a isn't CapEx 'XX, our spread into our 'XX. is increase

continue past line. the talked think going I into have getting true. And point, to as we the the operating about So to see enjoy going And that to drop we're trends fill be demand, we're to system. built bottom we've the that to in we we're that our leverage

Next from Keith question comes Stanley with Research. Wolfe

your of you and that thoughts have mean could Several Any Devon Bakken in and business on Bakken for think what Conoco and mergers, Grayson customers Marathon, your the producer over time? production announced Mill.

also them have thing -- There better cadence on the go good in the is the that to some well. to a Sheridan. their up going there. as them, little with what's not in sides this to impact it's or going Bakken, talked acquisition bit upsizing the And as we bit, we on going areas those we to not drill I'd right think they all have relationships more other that in areas may be they the more One They're the areas of only do core as those little even and producers, will as drilling. all very tell of up those on continue a to Bakken, you we've is, faster. they but think both Keith, in an

want long good the very and period strength, are there up producing feeling the of about we that's they into up consolidation there of to will the hands be time. for going So happened

I follow the to just Great. up project. wanted Denver And on

the capital the mean, as viewed the I high been business Denver business. Magellan think is about on when you're project material across other it. areas system you inflection? So more kind has But products on are of could Are lower there of pretty capacity, that whole getting historically pursue material a refined besides that Denver you tight opportunities seeing return a demand other growth, of

Absolutely.

look are for think those well. opportunities. to other some We We as continue areas there

fully We a one had full. have showed completed is can El as our there continue continue we on Paso an We've well El we strength smaller running as running to and season subscribed. expansion think expansion some Paso, into actually open to is -- it -- that on little was

to in we're So encouraged little different system our can we're continuing to as growth more a our And are or areas, well. seeing already for about that then grow. teams we area. that look bit expand that And continuing growth synergies

we So system has we typically will higher a at than rate we refined think are it products business. in that seen that the been the excited see about in growth and

with The comes Michael from next Wells Fargo. question Blum

-- if Wondering data on updates center-related the segment? have projects the potential in on you pipeline gas AI any

XX Of since Since are I is number across that projects, potential we've last our in plants, footprint. Bcf X are about Michael, of Chuck. up stated spoke day. footprint, projects which had to a Yes, mentioned the -- specifically this XX then, the neighborhood those, we quarter, is potential right were X then, our power as X Approximately these specifically. and of across on last our we demand AI. per there AI

but early more come. again, stages, to So

and kind FID the of conversations thinking looking update to Okay. timing Saguaro. latest there Any I what's of Got on that's if just an then it. going And -- was on for recent happen?

markets. pull is commercially mean world-class is great remind would I to and with Yes. the competitively commercial strong advantaged it this sense. really everyone, customers, project a just LNG got supplies. demand Asian I you've makes Permian

their do financing XXXX. MPL time, working And in any our investment spend capital behalf So this here on anticipate at material make final not to we on project is the decision.

And the UBS. from Gupta question next comes with Manav

blending you talk My in ethane? point Can first system time? bit any about this about talk is, little a of opportunities butane question can at you your also

Yes, opportunities have opportunity the we that continue we it -- I NGL is refined refined into to and -- party. a Manav, instead as are take of this we the Sheridan. our to to butane mean, together have integrate products and we buy And having products obviously, systems put from third our

opportunity. continue butane savings, So more system. just and automation volumes from sourcing our find we directing and into a to we're through And also, seeing by logistics refined that our ways more system to blend across our understanding, products

too projects are we'll see So takes We'll we capital on service. next where opportunities see we And Easton small being of capital very have into at these projects, greater blending but we're pleased time. strategy projects blending year. more with capital in that be will this some next one found sitting of some some we as obviously, our them, put that year

is 'XX you earlier obviously of follow-up would mentioned to than be quick that 'XX. My now hinted Perfect. CapEx it kind or lower

growth your in kicking projects and So CapEx lower. is the are

next year uses going we of there I'm is about to plan extra be out to think cash and a trying cash XXXX? just the So higher. free how should the would understand is in preliminary those come if that flow

our of level Board the to $X allocation. before, worth to capital buy committed stated back to did of up authorization an billion us January, as stock. We give in Well, remain we

over to we quarter are we stock time that have billion that that first just today, through as want excess that we've expect does we complete program very strong program to had coming goal have that out maturity as clearly on accretive free get mentioned going maintained up we we we balance and coming $X grow. always maintain through Then any difficult dividend opportunity to to time very continue that, And time a focus allocate repurchases. We provide cash, cash and in -- high-growth that projects call, And extremely will because the times announced. we this our some haven't in shareholders. do to then first appropriate is demonstrated flow September the that for on Our sheet. have find bought over we to if frame we as our the quarters. that we We've were the fully

And the question Truist. next comes with Neal from Dingmann

this I downward I the to angle, change any would Or question the And the new at conversations might their month of parties some be there real not market different forecast early, been side in data the approach have step everything of take but all? want just they're a conversation in to demand or want changing is activity pauses has in assume really last kind maybe center a do not goes? on steady projects. from back? she this time, but as

Neal, You sorry, part repeat you I'm could first the of the past... that question? said something about

Yes.

conversations that still maybe the in long Or past has impacted everyone looking at term kind of all? activity the over month, last the the downward just is that activity is market Just blip? the a over downward month so

No.

hasn't discussions impacted matter the at a fact, of it As all.

we next here fact, in this months. see As a matter more of month several the and then even activity

markets, And when facilities commissions to these you're that by the term. long to serve add takes to. having looking That's are markets generators at power that they both understood the looking So and answer the time.

So no impacts at this time.

And on and of and GORs you Slide really the how of Williston maybe off relationship tailed do job Basin has helpful. showing then that kind XX, second good a That's one, flaring -- is just there with any plateaued But that Or related. GOR? more higher trend? on do other or this continuing? that drifting Is inventory of an a of you is kind see

GOR wells goes know age, up. the I would say we on that GOR the as question,

if drilling lower on those see area bit. a in started But a bit GOR more at the continue So pull even is based starts GOR wells have for to little that down movement overall an it the GOR, will drill little may as you we lower in the activity -- wells, a grow.

So we as in overall, the general we -- increasing -- in trend, see bottom. the a increasing GORs

Bank question Mehta And Neil next from comes of with America. the

on repurchase. touch to wanted share the I

months debt Or start XX waiting factors after been on pointed there I out. think other has $X criteria buy X.XXx, the shares to back the to million over for September that last leverage executing program? you are Are looking which you're maturity? the which you level or

I think remainder quarter the of through the plan from third program. capital is to as the allocate appropriate the the

So it's other it expect allocated each in projects capital But will flow to to be then that spend will in quarter, years. executed have of and we several opportunities go quarters, forward. obviously those in that we it be directions. going a over years on will as other ebb high-growth particular there. And And

So with committed the coming think program period to -- time with but plans our I we we over maturity September. completing in and this have said, are track on up the that

second the acquisition. Perfect. the My there was up about batch to Mont that NGLs up rebuild. so an Magellan Belvieu question was with with Could merger, talk with sending to Okay. Medford move then pipes, My able and understanding you're ability forward you the to decision with the replicate Easton maybe also Medford that? volumes the relates Conway to to refined

me the you what's of So kind ONEOK? educate on -- how or benefits where that, and connecting not on can wrong maybe I'm Medford

per for a you on if first very day do Well, thing ONEOK capacity a million, the of math just capacity on cost $XXX XXX,XXX that for is Medford fractionation is low I the barrels think benefits fractionation. barrel

volumes around that Mid-Continent to you're then ship and to And that, back into fractionate way have variable able take could them and be all travel. into to Gulf much take is a fractionate back the be way to the The and and we the feed down more raw is -- that second them is Coast. our to and do move in still mid-continent have need it, the This up put we them consume make the could possibility. is all Belvieu efficient what turn those cost them but to to a them all into will ability the Mid-Continent. Mid-Continent, down all That certain it the way thing products not Mont as the deliver have alluding to

more up, Mont we system move The Mont system. are fractionally all to it our to by feed actually to the having all way -- that our Arbuckle down it be capacity does creating able into raw also source third on down thing to not even the raw into bring to Belvieu feed is Belvieu

that of system. it burden net on and Sterling volume system, the moving fractionating we're Arbuckle off in the So putting

way our go much system better to we So balance it's as a forward.

system more our it really is, designed way. runs it where to So and Medford have was that efficiently

pretty we're So facility excited bringing about back up. this

And the Bros. Tuohy with from comes Shere Craig next question

a it in apart originally the strong return contracting relates asymmetric increasing year, the return, purely one Y-grade but than transport finding with that Easton wrong? more dime I from or you're thinking opportunities and very MMP But it's not on that what have upside kind was guided you this opportunities asked. stable, and more nickel growth about questions mean, high is with Congratulations obvious acquisition that down, But It's ways to to your and at to NGL optimization any been that high contracted stable increased seems just I given go of year. between -- acquisition. lending question. have that that of I growth already given very that asymmetric performance. Am the beyond the going in have with some

customers NGLs No, we have products, blending blending with that to both increase are with us into as refined chain blending create volume Craig, we'll whole looking that value to put Easton on I locations that going continue had capital our to at supply opportunities, those -- We're terminals this are blending going our in into there. do. now these able to But really thinking and we even their acquisition, the that our about volumes And also into the low be correct. at Especially into projects into allow mentioned attract I down a also we more terminals about service bundled place gasoline that those our are think Coast that Gulf the butane of some there. we you is to earlier, facilities. our

been grow to think is we seeing I this it's with and been continue area that we when will and bought this, how very playing pleased saw an -- the we you acquisition Magellan yes, So out. we've has are that

down, This it more to as diversified, harder you're has that downside picture as our past. is alluding what to drive there's as that add company is, what which is had comment maybe says to as maybe I that not thing a Pierce. point much gotten numbers thing is think will Sheridan maybe is I kind in we've this one to to of one big the want

So that's comment I one I think would to make your question.

Sheridan's stable once opportunities, cake it's bolt-on the returns be these and attractive take optimization not with mentioned I bundled very get even that optimization in That's which of happening more increasing you seem icing to the potential helpful. would all long-term just on at the that as expansion And opportunities. the it's but Great. point,

from next Sibal The question comes Global. with Sunil Seaport

this, missed the if the talk returns think on that on about project? should project? Medford about a economics I'm little could not we you sure How but bit I

the contracted -- this on still Medford coming up Well, -- with the already are need need for on here end even online more the we incrementally we of year, -- MB-X at project, capacity. have fractionation

the is we we could look into also capacity much already today, So fit the of contracted project, what And a very that best lot. system. get is fractionation idea nice a have have a and our on we we what we with with was the bringing and do cheapest at this took where where

into a back And to we customers' be they across capacity. our our as We able to to of very capacity volume demands as grow to grow upside fractionation see this will able have that have going well. to timely a continue be to able their with systems, project that meet online we're continue system why Medford we nice that's grow as this be lot on at

allows basins we're our putting we're putting -- that once a basically, saying across all compete option in footprint. very again, to in us we're low-cost in So

it commentary should it in capacity, Okay. to in How like opportunities we seems that in think And we processing getting like of XX%, region? Bakken it running close seems then about And at lot the is XX% a ratios gas was there QX. least system your on processing, oil to but is higher. hear terms of processing

still our up today. at our running think the good understand I have Bcf running Bakken -- question. we mean, your a we we're at Yes, continue X.X in about but I facilities are utilization, pretty -- I

Bcf capacity. We have X.X

basically able our be into system plan a as to be or have on still able grow well. we turnarounds So to to handle

the growth we very at monitor there reliable that time. we'd the out to, they And We region time, in be our as make to NGLs need -- will alternative the to just that can that's to to produce sure to and that Because continue their need customers capacity service gas both the able at right have production can to well a move we'll put and very outlet and sure the after. sure they're NGLs. their make they gas crude make resilient their a have reliable and really they production after of what oil. They're crude they for oil, more

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

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

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

now may disconnect. You