Enterprise Products Partners (EPD) 30 Apr 182018 Q1 Earnings call transcript

Good morning. My name is Fiya and I will be the conference operator today. At this time, I would like to welcome everyone to the Enterprise Products Partners L.P. Q1 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank to I conference time, this turn would At like the Mr. over to Randy Burkhalter. ahead sir. go Please

Enterprise Thank welcome to morning Good first Products the discuss earnings. you, call Partners XXXX everyone quarter conference Fiya. to and

Jim be are the be Enterprises' of will Chief Executive by our Other also members Bryan for Bulawa, senior will General today Officer today. and team Partner; in speakers attendance call Teague, Our Officer. management he followed of Chief Financial

statements on forward-looking by of as make the of will meaning Exchange Enterprise's XXE we call, assumptions and this Company Section within the to available Act management of During made the currently as well of the team. and information Securities XXXX based beliefs

may statements expectations it that our Although no assurance from made results call. prove over for give factors will actual I'll latest are turn to a reasonable, to Please statements management the forward-looking cause the it filings Jim. materially such that differ during believes that refer such with can be expectations in to that, correct. reflected of list the to And with SEC forward-looking this in those

Randy. you, Thank

business first records income, EBITDA. quarter operating in well net adjusted performed margin including and exceptionally gross Our the

really for non-cash mark-to-market additional In have next the the notes expected our a our that charge no Midland service capacity including self tight back largest put source our retained a Midland and are strategic make officially XXXX with our Supporting gross of trucking for from downturn. to Midland couldn't least compared ECHO to has X.X per quit regard, press values plus results second moved funding. large very off us half our Recent we risk announced and natural expanded the flow basis program. our is of been pipeline that $XXX higher reporting two quarter ECHO looked Excluding equity crude crude the new of marine projects ramp-up pipeline some year take Texas April Permian barrels basis and of higher record. timed grow pipeline. now distribution last coverage with first terminal Midland pipeline quarter a capacity terminal comfortable full transportation from supply oil marine XXX we results headway been three the until was probably Throughout million and These table volumes volumes to to On segments significant brighter. first profits, the four towards aggregation in pipeline of that as new mile to sales appears capacity proceeds appropriate gas to With Midland distributable began into was substantial expected the several were Enterprise Record to we our service. asset that widened the the significant and cash times timing volumes to Today's oil allowing business for increased continued are projects; hedging pipeline is differentials a thinking crude day. led been also NGL and of the plant year. extreme be Midland service the attention. to transportation consistently XXX,XXX future better. into for and County, pipeline put to results it release never first an committed up to Echo our the quarter. Pipeline, our have felt prove quarter. of have in rail In this still out the of phase that a we price in our our XX, to XXXX and fees, growth takeaway at PDH projects to future Both over Loving exceeded distributions,

that prices and in a which out blow to large resulted moved non-cash significantly up, basis began production As rose mark-to-market impact.

these adjustments reversed be future those hedges actual revenues periods. for roll these periods, will hedged against As unrealized off mark-to-market in

cash our expensive substantial in some it's plant bridging project PDH demand expected far Thus April the fee-based and with an coming, of in chain. very a on an operated progressing a been great began This with our utilization Work has second April. agreements next year iBDH the Our CX rate. commercial upside, average fundamentals, startup. supply benefits and enjoy end value flow long time service it's in at of PDH is time fit half now but has XX% this to solid

half reminder, our upgrade plants, plant to which fill MTBE will high-purity of isobutylene we a additional excess value in us and into will NGLs capacity higher products. this allow As have

The plus a feedstock is basis. grade half investment an fee to on other cost a through XX-year based committed customer contract

In NOK XXXX. We Orla in have we scheduled our a venture [ph], basin gas plant several Export processing ethylene commissioning pipeline light projects ethylene joint at for and Delaware the April. first in Ethylene including new started NGLs all in our storage,

opportunities basis finding been topic polyethylene moving advantage. the price we the that Mont up to expected amount petrochemicals rich think our historical fundamentals in considerable the of other operational out progressing. Orla as on margins. really is expansions on them the Coast petrochemicals as Crackers Midland basin shale a a Last, basin. Reality of have in high at of under of is, say to quarter don't most component feel signal construction, this NGL about don't the feedstock we're ethylene U.S. fair assets currently in come is we for this Enterprise much the Summarizing petrochemicals. expansions key had this the this announced producers. into magnitude is our fourth and midstream with days Belvieu it's this double for we fractionator them demand also on the at on expected ninth are these U.S. has of Permian XX% to into of Orla without to extremely the opportunities global have midstream year strongly pipeline positive in has actually type and customers. growing ethane last and we're in plant Enterprise. done When about value which half to crude which and Chinook Obviously, demand pipelines with norms. industry be Gulf demand This of a is meet XXXX. and under where volatility two U.S. differentials, long-term in we of We're position construction in plants, petrochemical is fractionation, needs our at and quarter. probably rate capacity as in the and Belvieu. supported are begun. and NGL global But both Permian services there as a going not Industry new have up is processing second by completion expected projects fractionation between gas processing supply margins growing first pipeline [ph] providing has given significant we to that capacity expansion in it begin our most XXXX ethylene operation a program keep give of running third in our commissioning because U.S. in premier have most imminent also written collapse order fully We to our oil domestic the our we that of that of said with plants process scheduled our plant year, Mont second Besides chain. focus

pipelines, of our especially For refined as to infrastructure Latin refined products which in words and refined grow in significantly demand upgrades capabilities A we expect XXXX late few consisting America. will storage export at complete Beaumont products to on growth. dock products for U.S. continue new demand increase

increases coming Harvey, million were demand, crude. While month of ethane, petrochemicals new of oil, for production are in topic The liquid barrels increase little X.X each our is Tony game exceed currently and of online. it bit barrels exports, by U.S. Chovanec natural products. projects for day gas, Hurricane name to is on demand million by U.S. ethane a exports, new Petrochemical LPG, day over year-end. continue exports, crackers for the exports exports, believes refined the X.X a led that Also hydrocarbon those by and could crude a demand now delayed Enterprise

published shown results we and has As think situated to today statistics don’t than we better by global growing Enterprise. demand again is anyone the serve

opportunities can Enterprise self-inflicted. come recognized consistent It in own of really for equity that sentiment Finally, long-term I company in We one Institutional markets about companies family growth the most pick in there for products investors of our like show want but time we will done; what strongly ended and and Investor the midstream has one community a and recently have we're long-term performance. has the know named for with and Obviously, of a we Survey. remains. how continue kind last to in, quality understand responsible investor the on strong that support of feel community the We Regardless, and continue distribution all but that outside the Obviously, the Enterprise sector admittedly instead not XXXX much opportunities. the always shown the quit Institutional company. markets America focusing the in somewhat Annual in follows that investment they research long-term we us out strong retail will we on saying you our including Enterprise. debt the results, to analysts energy value. appreciate as when will are. focus favor admired are have been of we we quarter investments feel that is the We generate deliver investors community that good broadly preference sector us are our

performance. We will turn responsible Bryan. our over for to that, to And be with it continue I'll

good to morning I'd like Thank Jim's everyone. and you, Jim enthusiasm. echo

We operational and record with our are financial performance. pleased

are performance system. fourth our and demonstrates strong periods, Enterprise first our midstream financial over integrated positioned typically and uniquely seasonally last quarters the quarters is several operational While

March $X.XX objectives. per unit We recognized growth XXXX. on or The a and with of XXXX basis unit XXXX first demand business about for from statement per the expenditures $XXX we review items, the diluted reiterate the was for will and XXX capital are day global to gain of funding the are We Texas. hydrocarbons $X.XX to fully sustaining now attributable income compared interest fourth domestic of income Starting a for $XX sheet few excited quarter continue the a purchase both million strong to gas feet fully our equity surrounding unit non-cash on and strong million cubic an limited growth. quarter prospect XX% balance partners for overview our metrics our the XX, increasing I XXXX of in $XXX from diluted in interest and our for Reeves of for up equity located or the quarter domestic diluted expectations or statement County $XXX to quarter, basin benefit for step supply continuing with processing items markets. million fully income net and plant first fundamentals per XXXX price attributable first of $X.XX basis wrap was the this acquisition million ownership remaining per The in million. Delaware a

ECHO first to to million including of We quarter was XXXX quarter since expenditures. of Total were hedges. smaller capital loss during and and the billion to also primarily a amortization pipeline expenses Depreciation, $XX the $XX spending quarter Midland a Midland Houston sustaining capital for projects due same basis mark-to-market Midland higher to capital million in the XXXX. of of XXXX to compared $X.X into and quarter the due total the non-cash $XXX of the service recognized accretion XXXX million placed fourth to being first few Cushing

expenditures gas full-year be in we For to the $XXX aforementioned to investing XXXX XXXX the expect including our in for million. Delaware the sustaining million basin capital anticipate XX% million capital approximately with expenditures processing. this $X.X Further the interest $X.X acquisition range of approximately of currently growth we

subordinated from million Proceeds issued was that outstanding noted DA in used ended outstanding XXXX our Junior is of fixed X.XXX% months the which and for comprised $XXX effective for redemption we note and exchanges XXXX. pro and today's of Cushing years capital interest hedging our a Houston under in during EBIT against expense of rising balance senior on junior our the billion growth subordinated call XXXX notes requirements of ratio assuming our of leverage billion approximately also press XXXX annual the after into call million XX, or X, is XX% life debt portfolio XX, This February savings rate capital projects Midland cash of for was markets times. to $XXX thereby to to X all account approximately debt elevated for hybrids and debt consolidated average quarter, $XXX times were XX-year Adjusted further principal in agencies On is our X.X the XX.X date ratio requirements in Midland total to XX-year notes, of debt X-year the March X/X% was at our our billion in described $X.X securities average XX X.X%. of Moving the an benefit billion. and associated release. environment. by portfolio debt $XX.X was of the cost capital interest our $XXX.X of adjusted redeem million. recent XX construction $X.XX The aggregate $XX.X principal million more remained forma first leverage was of senior results with X.XX% rating $X.X reduced unsecured be issuance also $XXX of the our to treatment hybrid and which cost for margin aggregate cash debt the taking was spreads it should rate equity programs, by adjusting unsecured insulating our March of When fully widening sheet, X.X% contracted debt notes. debt notes due the executed million X.X the million non equivalents. partial basis ECHO amount junior and the Midland subordinated March of over comprised largely the our Working

billion $X borrowing March which approximately was and under cash. our credit included at available XXXX liquidity consolidated unrestricted XX, Our facilities capacity

distributable retained the our or alone distributable flow in the quarter during for we any million capital excess first press XX% in from first Purchase or Program expected year DRIP release, of And needs factoring comments the when UPP, reiterate the and XXXX retained funded our not do the growth just flow full to quarter cash additional expenditures. this which anticipated we $XXX Finally, in proceeds anticipate our cash Reinvestment external for XXXX equity of Unit year. Distribution Employee Program and Jim's

participation the to billion our to and X on with For to investment continue equity Randy objective DRIP fully model profile XXXX, capital we leverage for the approximate a anticipate an times. excluding preserving targeted self funded turn X.XX that, And $X UPP questions. the growth over of while I'll call back

ready listeners. to Thank you, we're our Bryan. take questions Fiya, from

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

of it on XXX, there. strong to pushed wondering drag pipe could was how this able I this final this is reducing you morning. Good agents, Congrats the for are quarter the expand or to the level expansion Midland further? was be

what we've reducing It was primarily upside over drag to very due additional announced. agent little and

projects of of guys the this side, there? is a know be, in seem petrochemical want to just could Great, could other the are you share areas growth that having as be can just lot your more what on business is as thanks the downstream conversations, in that part Permian us side, with see it it you future, anything go for see to the but a growth, more this you more bit that, be and bit more, a want then far to you there

answer I is, your think the yes. to question

that you. then, thank Okay, we'll wait for

Richardson The next Robinson. question will with come from Tristan SunTrust

good Hey, guys. morning

curious are outlook current pull in up this just on a of be forward from little year plan? bit, projects seems terms CapEx that to Just for the

Hey Tristan, it's Bryan.

already respect is the ship one to announced the we some recall if that movement facility because Delaware also you gas I as the with well as acquisitions the with channel. in we've the of script basin of mentioned purchased land Some partially the on

a little those but that's projects. be those with bit acquisitions expansion run cost on not of the then projects some have scope let and So clear, you've projects. a expanded existing which of me had also changes spending those of existing fleet But

on what curious talked capacity just that's then for the of that, terms bit are in about are on you of Bryan, helpful and influencing design sort initial early guys that anticipating a expansions Thanks decisions recently just factors the little have Chinook.

Tony, how volume. would and plants. I move. with been building We're got more anything, seeing mean are We're yes so have to the nervous that's I a much you wanting people get more and pleased mean takeaway people Permian. about

exceed one region I capacity. large would say, for Delaware and you of the that's know, really continues to Permian to the Tug? add really, part for Anything a basin the

Yes, that's wants. very exactly interest We're strong what it. in the customer seeing

it. appreciate much. Thank I enough, guys you very Fair

Thank you.

Chris Sighinolfi come Jefferies. The with from will next question

you Are there? Good Morning, Chris.

Chris, is your line open.

Can Oh I'm now? you guys. hello hear me sorry,

Hey Chris, yes.

in that. activity industry Belmont the Ship you of Most had shallow draft article permit Texas the has to about see Texas Channel, a caliber so week that just guys color on helpful? be in last did an there Corpus VLCC centered and [ph], any City you morning. export will are the vessel, City. sorry Enterprise's working I what thought Good curious I discussion was Hey, too suggesting around but on

Jim. this is Sure,

which City press on of and and Texas You Dock work we about venture Texas Enterprise's is first Enterprise's and Enbridge is docks all, he know Enterprise Dock City it talks those Freeport. really the Seaways closely City between his Seaways Texas not a is all Dock, joint and Texas at City

and So City if was Texas get a an Enterprises see [indiscernible] I and Dock. I'd little airtight

Enbridge thing what's we it see So partner is in possible. Al mentioned to only The want a did is is we that.

measurements we're VLCC is load working. on our All is arm taking seeing the we anything So in. doing if brought load it. We and didn’t

good. preliminarily so the are evaluating looks We information got we far it

and be legs. grow we think. out will think and pretty would concept it probably be we'd it The draft. follow concept may it the transload loitering about VLCC But load simple we up right vessel are a You a

understand So so dock then the just ferry it and load it fully then at partial the to Jim, out load vessel load offshore?

see we of just business X.X we and Channel out we're right it on concept. seeing each and other that in can take follow then X.X now probably million it then physically barrels put a say and the Frankly, this, does people the then at it we million Yes, to vessel we transload. are some kind at load economics would to Ship neat talking that get to work a we'll or Houston and can legs a look [indiscernible] have if

Echo peers pipeline. Yes, about it's interesting. in-flight heard I the not had parties but just an of I'm other that's part a are hadn’t curious the of probably ownership some I other part. talking We include line, options option attention outstanding [ph] that activity, option oversight a not from about, offshore are sort on paying third what been talk before. had which was any considering XX% I hybrid Separately you on question Midland to my of expansions realized there the on But if to? Jim,

On that Jeremy? pipeline

mean This on Midland-to-Sealy? Jeremy. you that, Chris, is on

got by Yes $XXX pay two and other assets should buy one to, was here third-party? building we hadn’t two, so to that questions, construction I Midland-to-Sealy, have options shippers there I is or the should realized is, options million are that I guess or just of in cost proportional that we roughly I curious, pay you are attention

to ventures, they and brought than plants throw know op-tech. of is money, how to everything you or I'll I'm brought production every you this to company Yes, more [indiscernible] was back joint a gas they in they built. fractionators to number got We've what brought case from do going

than announced what value include and lot So is money venture comment us yet. bet can would as whether you we're doing we I'm joint it not supports if partner, or that haven’t he to entire it more chain. our bringing not to you a going see a

representative the far And proportional, it proportional is as of Chris, the Bryan, yes this cost. as that

Okay, for congrats great. a and great this lot taking a questions my quarter. guys Thank morning on

UBS. next question The will Gershuni from come with Shneur

good Hi, morning guys.

converting that that earlier capacity versus why that's NGLs my more said worried want I the Just you're saying shifted about to you Tristan looking at actually customers and before getting confirm and off NGL not a line? now Are something first about crude NGL to just you lines. are questions,

we at looking We an converting didn’t weren’t say NGL.

do we're we will said think sure and the that but think hard clearly be. I'm timing a I have Frankly, not look we I taking expect at it, we will that. what

Great, got it.

a but and walked had were shifting and Okay, year incremental quarter little are was bit this a back seeing to lot you've ask think Bryan be and had and sort growth I numbers here, context X.X forward? covered the Do wondering against year, you've plane that going the just where of on opportunities higher how through little a that a up of bit up but put a I large of I you you why CapEx distribution times just got lowered be rate get growth to growth self-funded, your retained DCF. we could last

from is to Randy. guess was standpoint largest thing Shneur, to this the first equity the getting is Yes, component an funding I self expansion. EBITDA

first If moderating so of I the us. small a expecting the performance and didn’t part quarter the you growth surprise in we're it would, was yes, necessarily mean distribution the very so

some far opportunities And as to really think you prospects, on that, really the of supply on conversations now so I get projects we all you're good and as growth continuing say well but around the these seeing projects side, I'd demand see segments. growth with more four side were know as

by it type in fair weren’t expect to the the fourth you year? would the surprised throughout those metrics say you of be performance quarter that would So that continue to

Let's Shneur. ahead not of get ourselves

Bryan quarters and our is first just what said, fourth to quarters back go I'd think quarters our I are and strongest seasonally.

of material impact one but of about wonder sort you about forward. if you it Okay, their structure question restarted expectation restarted to the the wouldn't Many know it it you going have put said Has the that opined would conversation same talking had final and the that are at ability Enterprise. And box a for to checking at conversation too a spend know fair with, the or internally? decision impact I about necessarily it, time when Enterprise, unitholders or and thinking out recently expense many recognize much tax FERC time given here, be not CapEx not I first that there your corporate you enough.

think any don’t periodically. we so I I past. at the been than look we in what had more mean it

it's right When the come in from now come check to see and seacorp box. step nature, that at and a that that know don't differentiator big valuations and an and there and of You between we that's us perspective. anything in not we compelling, look is anything a MLP leads things

to So but right all we I development now no mean monitor continue data evaluation on from time, time to front. that

Great, much the color. I appreciate thank you guys. very

Tudor next The from will with Holt. question come Bean Colton Pickering

Good morning. back I to take just it Midland-to-Sealy. want to over

the consider or uncontracted also hedging with would you forward the exposure out curve With capacity unhedged, that XX,XXX barrels widens or if you comfortable again? so are further of

We to always I'm to do. what signal just, going and we're not consider we everything Colton commercially going

pretty and of close it nameplate it in in just of to QX, looks day Got industry there. docks a Coast then LPG million barrels out Gulf terms moved like the nearly

us what remind activity a your XX% just would increase? optimization cold capacity reach be you and that can timeline the So maybe storage of around to

the You got have a Analyst that at now. Conference. right must working memory, good We're been you

we I couple or I we one that's we're three think so have options at, is that not looking frankly, think of them. Bob a think here, I have,

just expansion you It what think and pick is capability. mentioned pretty one is we what a which we're is inexpensive one I do find going got of them. to we've

how in just as max optimize Okay, or loading those so rates likely out? to leaving dock the

the We could loading increase rates.

like final should so were fee-based had but a on looked the South then Eddy. have a processing a from volumes one, effectively And flat then of you bit Understood, there tailwind okay. just quarter-over-quarter,

regions? So can pieces you moving just us in through different of walk the some the

This is Brad.

been a continuing up late. out grow bit of see little from ramp flat same seen a balances that later as And Delaware we've still, volume than better up You Eagle in continue up. to what region, producers just a lag than so it know think [indiscernible] our normal, and still bit in our we bit thing Ford little little a and and we but is initial There anticipated. schedule, then volumes in Rockies the basin our little as showing somewhat the has I to somewhat we far we're

Got you much guys. it, thank very right, all well

Brian will question come next from The with Zarahn Mizuho.

Good exceeded your the And things the subject so for April? first system, that exports exports time on on continuing in NGL exports, trend morning. like crude of is

to the positive Yes, this see April in is down we first happens had starting road. what it continues. see, just We'll quarter, more oil. the but cancellations crude Brent. We're around some the was the trend on obviously going But and next is the crude belief to forward work will just as increased, supply find oil. more this to our that to project we for volumes exported be on have have Midland-to-Sealy

And then update sticking project? pipe any on on potential the gas Permian

This again. is Brad

Jim make to out things if a to producers, fly doing talking said, partners, know, we're notch. try this evaluate continue going you what to We figure it. I'll we're to we're echo to Bryan to talking potential and takes so we're everything it

looking projects from reasonable $X billion to one the a is to your Last estimate given me, for backlog here next CapEx add year? still

Bryan. is This

at, yes. where As looking as far we're

Bryan. Thanks

Guggenheim. question will come The next from Phillips with Matthew

of mean XXXX, there would guys. see A how spread we the of morning to recovery hedging Good crude we view initiated, that? the through program all kind that evenly you expect that that through I on that followup should the lifespan

Daniel, got you that?

I do Jim. Boss. This Daniel is

If million in total additional expect through fourth with and XXXX. $XX recognized on reverse to first million that you quarter loss XXXX, of what second of the reverse during then was XXXX look program and December quarter the recognized $XXX of at about through to the in combined that we

on decide until Got it's have it commercial then interest when how you and when in once NGL that service? conversion, sufficient from you the long take will

Less year. than a

Got it.

you. Okay. That's me. all from Thank

with Horowitz will Darren Raymond question from next come The James.

year new a this view arbitrage that about maybe in-house do back gallon opportunistic first get expected prices that question on there mean some we mid into Good from your morning ethane and start up that range, of know foresee in from just opportunity and you and paying with process that to up, to regional pushed think guys guys. to June ethane bit, they some little May $X.XX if you hypothetically soak by could regional the what’s $X.XX let's an happening get if Jim, back, pace say on do what up crackers into of a a and not even middle you? for rejected there the perspective can of the my you exit build lot and opportunities is

long on Rich, you take to enough phone shot? Darren. the you It took to want a get

so Conway in I for is up may ethane lessens up not haven't ethane barrels and fairly competition known of you're we I some that get a while. what in terms tight in pipe pipe now and leads space when it's some think prices, for to potentially which that mean the you that seeing some right is straight the frac that seen well supply, see

So bullish don't create a a think it's for case. long can term ethane, bullish I case I

I more think case back short it's certainly you pipe then come and things but one up is the maybe a I term lighting online come in then to normal, to probably fracs see frac space. of there's be the get pipelines a frac once bullish short to starting space think term the going online, for

Okay.

arbitrage see what so said Brent? yes is you said opportunity, what he we think that I just is,

more in said I words Yes, though.

barrels like thoughts around recently that possibly Jim, just any kind and propane exports tariff about depressing demand mess, this talking issue and it contracts binding if big navigate stuck and then U.S. barrels of an could up continues how out? and do all be U.S. issue both to Okay, a term long I could maybe a what more Chinese dock, by of on more China it happens could our bit seems been the It war Mideast U.S. making it then issue and that discount regard getting other there's leaving picture do the hypothetical at question. and met to product you trade we’re do and with possibly find discussion markets you think how got that with kicked with the this or plays

we don't not single somebody’s corner demand just I a and all my all contract of out propane. of if table have a got get stuff the leave one not Yes, to it product about imposed. going import Chinese close going, that I company China to Darren. is it's I else somebody no Korea, We office. first have is all, it import propane of worried a needing so First there worry with Well, think no they're been the don't in just which there okay position of happens this contract, tariffs our and India it’s for China, going LPG adjust, won’t it's and I'm propane.

the Yes, move? to about better physical or to it way think product is price maybe the

Yes.

to we guess Midland quick and and me gets in ECHO of the now but from the aggregate the then and XXXX? that can of just I And finally settled end question. the Okay as more the value reverse, do timing when Bryan what's magnitude to what's and math one housekeeping importantly hedges between

let to answer going Daniel I’m that?

balance rolls of value look Darren, is off for we've the then $XXX $XX for through recognized on it the year off you if XXXX. that about like So the and March before, aggregate million this million I at million $XXX that and mentioned rolls way

Now to are continue April or to as so of as in these materialized. is widen see spreads that implies we March - continue additional losses valuations there that XX,

lead even losses might would that the but additional going you second quarter, and So that to be in upside to period forward. from see larger just reversals in April

Okay, thanks.

will Keith question next from with The Wolfe Stanley come Research.

Hi, good morning.

we getting were contribution or QX on PDH, expect should of most already in one material quick another you in QX? step-up rate a run the Just

for now another March XX% operating approximately Yes, the we step-up second capacity in we’re are we in QX out where at February April. quarter you of and because were should really XX% see and around starting

quick we’re discussing impacts so hedges, just And EBITDA all headline this to out of and the around Midland sort great. numbers, market mark to of DCF, really these it as is of clarification those stripped not and Sealy all well Okay, a right? impacting is

Keith that correct. is absolutely

you. Great, thank

will The with come question Barrett next Securities. MUFG Blaschke from

Hey guys.

that in ramp PDH, business just with how is sensitivity of on in what and the is is I a know of petrochemical, we it else that? pure up that going pushing lot line Just that this but commodity is saw much

petrochemicals? You our in mean

Yes.

the not of produce we Yes, bridge pounds every off for were PDH a to we you bridge know, us. great sell. things, the have deals don’t pound Those one pound, is

were we we a the time pound pound we PDH bit selling sell splitters Barrett? off the of So more par. quite a than Does produce is a that every at help that

you. that Yes, Thank helps.

with next question Citi. Vikram is Bagri from The

you question? and have [indiscernible] on on hedging extent pipeline pipeline hedging average on about you about understand the I morning [ph] talk hedged question can you more can of this on what guys. can Good front, we Basin one hedging, talk the anything but the is, price on the anything share that

I volumes, some have won’t in we pipelines space but had out. basin talk

any on average Okay. price hedge or price that And pipeline? hedge

was can't understand price fixed if Did it. that? ask I on there a you

Okay, yes.

at levels, me front today. the it’s obviously right don’t I where have average number I market but than less various is, what done It’s mean the the is in weighted of

the And this on second was the question okay. in Seaway I that dock? pipeline, DRAs have any on update on Okay,

Seaway pipeline hedges?

No DRA on Seaway?

Seaway on pipeline DRAs system?

optimization sorry DRA but we optimization Vikram running one monthly look exercise horsepower, a an [ph] just that's at versus exercise. that's So in

up Vik, on speaker can you phone are you. because pick we your we hear can’t

it We can’t very you clear. not well, hear is

apologize, in I’m conference room. a I

speak going am day, barrels by I Pipeline it my by understanding to is expanded a Seaway your case that adding you So system I try still can expand that be by if that Day, can XXX,XXX a to loudly, was DRAs? Analyst day barrels XXX,XXX the from understand

a day where about little I’m but know is not, a we can I from. barrels XXX,XXX came bit This do Graham. the don’t number

remember day. in us I a that don’t there XXX,XXX - passing night, barrels saying are the maybe missed it but Somebody expanding we was ships

much. Okay, very I follow up offline. can you Thank

Michael question Wells will from come Blum next Fargo. The with

ethylene sure original Hi, good to make margins comments I morning just understand. the on everyone. to just I back and go your want

demand is the in that? basically enough up a So be go it’s as absorb to temporary globally your in that there supply issue the big in that products you a great view Coast, just over back all ramp have you will can Gulf

to wrong, but we that trend and see tell is it’s few is to propylene ethylene forward going the a is the pretty time but demand. in I over our we derivatives strong over look Michael, years derivatives all a Tony and I'm as in growth we Tony do fundamental turn Yes, in next minute, it what right and

Jim’s the earlier, end reason but focus focus some to ethylene because on point ethane has not is think and petrochemicals that decided margins, the for that is Yes, should where game not stop. to and the industry to where really not be I

Now at this plants Exxon you if Dow producer but $X.XX a bound to there are merchant Chemical if are are or of probably right merchant you in you’re an margins of a totally ethylene that polyethylene you're country and producers, ethane looking I now, are sweating Tony? two think

Yes.

bad. Yes and not

on maybe or with Okay, renewed just second trying some light that is helpful. issues to to project any in seen takeaway in the project and question the shippers Thank to Northeast my of to that the have guess interest Coast? you, is, get NGL mariner systems, in another you straight NGL looking move Gulf done I of rejuvenate an the Atax

but I wish could can’t. I yes I say Michael,

Okay. Thank guys. much you very

will next with question The Merrill Coleman Bank come from America Dennis of Lynch.

is Coleman, everyone. thanks Dennis That

purchases tell was employee for drip us quick been the mostly the one in hit, have mine what Just you could quarter? Bryan question, but

of the Duncan the family’s was first million. For inclusive $XXX participation, it quarter

the rest Duncan for I guess excluding year? a good is participation the of So run rate that the

so, appear would yes. It

retained need just to ATM for into guess Okay, likely the strength year? how backing this public the at even of of the so I an not all earnings sort markets

correct. the July of in Not XXXX. week we at haven't all, touched on And Dennis, first that's since the ATM

Perfect.

from it that's Okay, me. Thanks.

Jefferies. is from a followup Sighinolfi question next The with Chris

Chris, are there? you

line your is open. Chris,

my guys. sorry questions were All Hi that. answered about

want replay to give and appreciate it. the [indiscernible] I listeners I Fiya, information our Okay.

today's will XX be gentlemen replay PM Eastern for at Standard conference and call beginning available Ladies today approximately Time.

or XXXXXXX. into number is you If enter the like replay XXX-XXX-XXXX. Please conference dial id that would XXX-XXX-XXXX to number

a now. good Good our Thank for bye us for Fiya and conference today joining day. thanks everyone call and have

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