Enterprise Products Partners (EPD) 1 Aug 182018 Q2 Earnings call transcript

Good morning. My name is Jennifer and I will be your conference operator today. At this time, I would like to welcome everyone to the Enterprise Products Partners L.P.

Second Quarter 2018 Earnings 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 Instructions]. Thank you. like would call to over I to the turn And Mr. Randy Burkhalter.

quarter call Thank And you, discuss conference welcome everyone. second to to the Jennifer. Enterprise Products Good earnings. morning, Partners

Our speakers Chief Bryan General Fowler, our in Bulawa, team Partner. Randy for Jim Other Financial call and our of attendance Executive are senior Officer; management Officer; Chief President will today be Teague, Enterprise’s today. members the of also

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

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

Thank you, Randy.

in said -- businesses supported press to release, this our our demand, well, and business by and perform continue exceptionally strong growth internationally. morning’s continue supply market we domestically As both

$X out coverage year. nearly We’re goals we the retain quarterly self-funding for fact quarter a has for ahead year-to-date. the times us of that fourth last provided us proud well to X.X of equity the row distribution, of second This laid quarter we the in allowed puts which billion

a Crude liquid XXX,XXX Overall, right, record Adjusted EBITDA for and was million. we a operating operational excluding petrochemical services records. $X.XX a pipeline were and crude, a the day. NGL, and barrels strong crude, We’ve equivalent transportation record year volumes sales a NGL petrochemical gross not barrels and NGL, to transportation transportation that I X.XX to overall fractionation day. a volumes marine gas billion. a facts a X.XX volumes volumes operational volumes was quarter. terminal services sorry, refined was a a converted a Segment NGL, then for were of had products And that's gross in set day. volumes were a reflect propylene were records. pipeline the record day were I barrels a barrels asset gas per a a day. natural is a barrels product proving million natural Natural Let DCF, record just day. margin a volumes XX -- me record fun barrels million give X.XX were marine financial products marine million. volumes Then refined from crude a records. quoting a were record million million barrels record and And margin record If barrels crude, XXX,XXX were you and a were liquid be. on was day. day. financial Crude from terminal a terminal record the just second Natural Overall, barrels second we records $X.XX record pipelines several several Overall, oil $XXX.X to pipeline quarter a am XXX,XXX pounds record gas barrel was million gas we many day. Ethane our Segment how refined list products marine volumes barrel XXX,XXX record transportation $XXX.X billion. day. equivalent. and I a am proceeds million set used counted record this pipeline terminal operating a refined million X.XX petrochemical almost overall, at petrochemical, production a X.XX NGL barrels. XX XX.X little

Second quarter Orla at Enterprise. plant and shortage for more plants a continues there Orla. are of also construction and processing be gathering underway no as began included operations, two of opportunities first announcements that In at our to of project area, string a we announced

for Mont addition, this In announced of will NGLs Permian. all Chinook the discovery our and support Alpine we our pipeline High the Apache’s Production a assets strategy deal in from from basin NGL at Belvieu.

announced XX-XX the a Transfer. formation Energy of We joint with venture also

Let that. repeat me

service resume plans Ocean been idled the gas the DJ Old pipelines Texas to announced and pipeline and underway additional also support natural which open joint XXXX. Energy venture season Transfer of on since We on formation a with We on Range a Front XX-XX Express are liquids Basin. successful to has expansion the concluded our from

our that service a is at long-term confirmed capacity barrels of an fully full subscribed in expanded pipeline Midland-to-ECHO under we Lastly, and day now contracts. XXX,XXX

projects, announced ethylene As our capacity for export to location demand and driven we've recently the project.

regard, announced category the PDH terminal And to report and second distribution, capacity we saver marine that and also crude the Final oil trend another Texas ethylene storage, Gulf now touch is break offshore started petrochemicals. export are In we contribution terminal. We storage, quarter to time dock a second recently fall with exports ship and at I thing being to recently of our PDH records to facility plant an to the value almost propylene where channel our and customers. developing has closed service into we’re off in Enterprise purchase our the iBDH fueling bunker at add-on led a We ethylene extend Coast. that channel which advances primary adjacent on is making our new for is into like the on vessel nice and want ethylene to ship export been the that biggest strategic chain happy Projects that at our bottom-line. Enterprise XX us sizable of for crude. monthly, export, as by we our acres ran

people. terminal and have these see What very trends we this natural do or been team crude for With whatever, a give are years, accounting, [Harvey] the that end is open three These I that’s it of we a Enterprise that crude fact Whether day people to about that as to Enterprise. it’s are that thanking work oil we systems oil, with the quarter the that, don’t aggregation during setting outlook can We operations, engineering, are last changing. want Bryan. And project million truly long-term these the enough. Enterprise Enterprise X and a makes historically isn’t least at made aggregate our Houston For and don’t exports this what US without terminal. by a differentiates barrels really for same supply a area our over you commercial possible. people people that performed departments. record I’ll

everyone. morning, Thank you, Jim. good And

we and objectives. assets from Jim clearly seasonality As accelerated contributions financial performance which new improving operational achieved during and weaker second earlier, and meeting from quarter, benefited the is fundamentals our traditionally outlined and record period. We seasonal the a mitigated financial of many

increase as million $XXX excited equity capitalized have We equity debt $XXX what partnership. was second to $X.XX and X primarily a I few a The further into items. quarter XXXX XXXX lower sustaining wrap into objectives. Cushing adjustments in through XXXX the of a to the funding this spending basis up including under quarter. compared of and same With gas limited interest we compared We $XXX $X.XX including majority quarter on our into XXXX. expected Midland-to-ECHO per for was to due Total our of strong overview level the XXXX leading accretion and and of hedges. be Midland XXXX the per of and to balance our proceeds second projects of expenses Frac million reached plant of fully capital on taking $XX cash Specifically for combination second crude being fully putting and pipeline the targeted in oil Frac of to IX. quarter assets expenditures the recognized now forma second Houston to Net of million processing diluted our acquisitions capital statement all higher quarter the and for balances holds quarter within XXXX given basis the $XXX attributable off to an of range total expense to opportunities million and Depreciation, capital Midland mark-to-market IX the any from during excess the partners quarter pipeline, basis or half for quarter amortization for $XXX.X that income to second into future growth items facilities and million sustaining objective the our income or loss the of statement PDH second since for or was without Substantially was financial $XX the the higher facility, $X.XX service of second were quarter-to-quarter a strengthen unit and distribution of a durability Orla to can’t compared expectations per XXXX. due million, million with million our the iterate XXXX. the leverage to our PDH development for of income these metrics account for [CCA] self-funding the pro Starting the quarter for will unit last program, second the contracted in result hedges our us roll diluted under unit placed non-cash due sheet amount of growth by $XXX.X for comfortably flows or and flexibility, service of expenditures. a review with help we construction. of are Interest the when XXXX, principal Midland-to-ECHO will reinvestment XXXX.

spending of pipeline capital We mentioned North second XXX,XXX X gas Belvieu. was now We and projects of in capital. to year service our for total capital placed are $X.X startup For project. primary $X.X the in natural per currently on expenditures. in per sustaining billion including during into additions million expansion additional approximately barrel of the to billion and $XXX including year, capacity quarter from on approximately the $X million have previously XXX,XXX day anticipate day million of XX-inch XXXX first fractionator XXXX. sustaining the full acquisitions, in under the plant The spending $XXX and and Orla $X.X construction projects capital billion gas barrel $XXX billion capital Texas We Mont project billion an Chinook through Xth upon the $X.X growth half expenditures approximately increased

first Moving XX, to XX.X for our our of the balance was outstanding was our years. a portfolio life XXXX, At billion, date assuming average call hybrid. principal The $XX sheet. June total debt

debt consolidated our the XX, leverage ratio debt Adjusted ended rate. fixed X.X% of is portfolio X.X earlier adjusting our for times XXXX cost average agencies our effective long-term as after June partial as billion within range. Our was targeted EBITDA securities for further hybrid $X.X for and by was months cash the rating equivalents, debt cash debt and XX% treatment was and stated equity and of XX the reduced which is

We capacity enhances Notes are billion which and of an through through savings the that to is the interest borrowing our July consolidated cash. and issuance replacement our interest and We the Our aggregate fund XXXX XXXX, rate upsized was which XXXX, in proceeds and hybrids paper increased XXth, use and of available satisfied liquidity the X.XXX%. cash junior quarterly of A under from of $XX increase result $XXX of we've issued notice which all is subordinated end, from passu, a The amount XX, of June, aspect billion close available flexibility. equity months. $X.X commercial the rate expected principal as redemption. pari of times. credit the and redemption issued past amount recently to outstanding billion to on million at intend we approximately in XX program reset X.XX scheduled the of facilities approximately paper $X the To principal under to further a program during modest a redemption included capital our covenant to June for due DRIP subject of the August $X.X In redemption XX, leverage effective financial to million unrestricted to annual commercial

Moving to issuances. equity on

the from program proceeds and received be our program unit continues employee and approximately ATM to million $XX purchase unutilized. we quarter, second program the reinvestment distribution of During

reinvestments long-term distribution ATM a the matter XXth issued the we to the affiliates quarter continued which XXXX. excess we the growth their program in -- Company million of fact, or $XXX to As Xth under quarter, of flow of alone respect DRIP of EPCO our second reinvest $XXX year-to-date million cash XX XX% August funded to excess total DRIP July since in of the retained of $XXX elected a Enterprise support have expenditures. capital million Products flow. the This their cash With units with demonstrating Year-to-date, or $XXX private approximately program. haven't partnership. million in brings We retained XXXX upcoming payment, distributable the distributable

equity core quarterly grow made a we and we’ll returning our on a approximately capital million in to Fowler And source by some effectively growth XX to on XX calls, and to [investments]. approach of for I to As reiterate of DCF remain portion continue we call our we per capital projects, comments. in reassess our alternatives quarter at penny I’d previous of per flow With in growth, investment funding, growth our to cash continue retained opportunities units. our XXXX. cheapest unit over per unit incremental our issuance to incremental announce to to like avoiding intend now equity as of XXXX to respect closing the recommending to for will enhance turn we Board Randy million ability our distributable self-fund distribution distributions the the XXXX comments confident for

reread Thanks, Investor. a I Bryan. past to Intelligent had This weekend classic, Graham’s chapters Benjamin chance in the The few

Market he you Mr. of is metaphor us to a Graham the Mr. of business. the how recall, worth market Everyday many sentiment. As valuing Market uses Mr. explain tells

for Enterprise’s today for up compared cash is some to fearful. he three Market’s six six context XXXX months XX, of for days XX%. XX enthusiastic the months crude sentiment, the July our first WTI XXXX. seems ago. unit at closed compare for XX% of years that XXXX compared Market year cash first months up XXXX EPD’s price $XX.XX XXXX $XX, Mr. first X%. is day up unit flow flow access XX%. up the to distributable just is this contrast, of It with XX, that sector. Mr. it July months six distributable To per the was In yesterday some distributable six compared It Graham fearful we that, fearful first Market this for for is wordily on The current can midstream XXXX, be is or up still year Randy, the cash can of is of we Similarly, he to Some goes to investors. to forward Mr. open questions. good oil up curve when Mr. opportunities months and features there pass for and value is unit on provide is XX%. flow

to Thank we’re you, from questions the Jennifer, Randy. ready takes participants.

Thank question JPMorgan. you with Jeremy our first comes [Operator Tonet the Instructions]. from And

ratable just this Just a per captured I up induced the what quarter? segment. was was you water a was want that much the wondering moved to to were just color Results spreads more regard how And bit quite provide by margin, with or touch could how oil crude bit little there. higher the supplier if base drove on unit print

with pipeline We've Yes. lot on obviously Brent A from Midland. of do Secrest. brought our to spreads. is has that This

close the docks. to right doing amount now doing, when say we look to at contributor. exports then around we're the the day. say got I day That's of XXX,XXX that you we’re to barrels you second in at we a across volumes a the quarter, I So main XXX,XXX want that And barrels want if look crude our just averaged

the primarily So it's on crude just overall throughput system.

close wasn't like something the XXX capture, lower of a or XXX? a spread there number is ratable So lot is to it

hedged was than we’d hedged. we we not what heck lot if lower Well a done what could’ve

what $X think? on do you average? So, Randy, yes, what

through think ramp day, around would pipeline, And up we probably and the you barrels XXXX. the I’d add a average quarter we're to continue for next Midland-to-Sealy on day they'll of as were when double a Yes. they just barrels that quarter. -- as bit, little right on XXX,XXX the commitments get see we'll -- Jeremy, if a second XXX,XXX commitments

have in at We and to come opportunity rates. contract higher more

just the on where on you if that's Midland-to-Sealy Rancho. along so, focusing would capacity aspect And lease with

and Midland-to-Sealy of think $XXX I once for between million XXXX quarter we're the growth. get on come I quarterly just million million year-over-year million think you to up in where area see range. look the when And that you -- million can on, $XX we next as year-over-year think that be we contributed anyway. as to see more in $XX quarters But early here number maybe the $XX type several ramp $XXX that I probably that if more again, stages of up, in you we'll few quarters a the ramp out

saying in is that are to what our more Randy, becoming say then that valuable. we're also And docks

think there. there’s offset I an So

Thanks. NGL for type update And immediate helpful. us clearly Chinook as then with as oil the need for to there any with potential very well? can the service. provide next the is of online very pipes year, And question Permian Seaway far there a there you early some a from that and repurpose as I That's crude is guess similar coming evacuation into

far As Jay that. evaluating Seaway, as we're conversion, here? is still And NGL's on in Jeremy

barrels No, we take be is same that. that we're there We're DRA one but do a the capacity. evaluating, that out adds I X September will online thing. and doing Seaway there’s to expanding I'll adding that Seaway, day immediately in others can The thing of about think XXX,XXX

of that which depends crew, So It on called us the has take XXX. XXX. the will to mix around

with next Colton Pickering Tudor Our question Bean comes Holt. from

morning. Good

segment there. just sticking So crude the with oil

million you loadings. step terminal called Houston export up out and $XX think about I the for

what major the aware proposed differences downside we Or guys terminal? volume either the to the there there? that like a should should we you that margin. be of up or any of $X.XX the expect around are saw, of that barrel it offshore given the looks for maybe increase ballpark Just in Is

deep bear. think on quarter. I we’re the the offshore will to terminal dollar a in down the But market I’m still in a as weeds what thinking what

Yes.

I around is think $X.XX, of but crude export your at for floating And at fees. upside there’s number on probably that, the with incremental investment. of you think incrementally, kind look then a chain that I if notionally correct lot value that’s

Got pipeline on system network. the And it. NGL helpful. Very just

noted release bit quite So the on Seminole uptick [Maple] Chaparrals a and was about lower XX. just but XXX,XXX

Seminole mean volumes so increase remaining question, Rocky’s Permian if that guess I and much kind that effectively least this point? of of were a vast through? at majority I indicate does to on system is whole legacy And Chaparral or So lot of at flow the that capacity how not on that Jeremy’s

regards a Volumetrically Maple, pipelines come specific lot Maple transportation off. cutting higher, the every run single we’re is through, Permian, seeing the maintained I question your Permian cost right was to volumes answer up with allocation costs higher, now but we it’s of variable of by negative we’re Rocky so can. well, are volumes to volumes of -- Rocky’s north the But to and sense are as moving in want say a down

he on what think just have allocation we’re Chinook. and any incremental on delivery we capacity don’t in said I probably is,

next question Your comes with from Shneur Gershuni UBS.

hydrocarbon Hi. of and with against guys. see mean off, wondering just sort you Good strong a just I about production of obviously quarter or is of I at Are to because the for the much backdrop sort guess leverage could over very Belvieu, exports. a the wanted all could see can talk if an when we we you in growing comes we converting left I I talk year so? wondering if how crude the service, you into up to propane to NGL start there move continue of able kind timeline is at could wondering Chinook Belvieu to line more activity. seems system. was frac of to multiple you on next another ways I a lot activity operating morning talk was you go forward it about can about opportunities basis. was I like if printed of

the in I’ll think yes. Tony the is, NGL more. of see never more going now answer and I build we we’re at train Duncan we’re the looking bringing add conversion, evaluation Randa that in. train mode let saying is trains. I probably all whip and another more terms And on I’ve assets, the is think train either. we’re After to there Randy in the opportunities to And and fractionation. -- guess snapping build I still up got we’re Xth four build the XXth the fraction step

opportunities So, yes there for is more fractionation.

for we that opportunities strong growth think we’re another short in I another the there we how possibility propylene the when is think a hard, there at market given is fact look for demand and is PDH we’ll build PDH. working

when capacity. LPG need port, value In LPG terms chain opportunities exports, is going associated an with said offshore believe Brent there to we’re of export we more

at did look you forecast, If publishes that publish group and Tony's I soon. it? you our -- think

that I -- be think is you'll there more LPG will see Tony our Group Fundamentals what that, predicting required. capacity is export

channel the us to port to answer? facility. ship to that able to LPG gives that extent an pull that our more offshore Does So the put off we're through opportunity

the you about that? turning talk you in just to wondering XXXX. does. Bryan kind to But we about be at debate things if potentially drip sort increasing point? between growth if that of about to million in prepared you've wondering respect I've trend if for XXXX, up, off you're you've of thinking in of of do so the able was you mentioned this going you Is It Just versus distribution the that in to remarks some expect can forth. a excess potentially thought to $XXX and fund the And there forward the half can and to your year. back terms continues, I so of how of of talk be about this Maybe realized units with debate thinking boardroom rate continue stated first some generated buying the sort forth. growth DCF follow to

potential table. those likely part the on I avenue that the as Shneur, was that least question. the options would -- quite frankly remain appreciate still I you it's all of buyback. think of mentioned I the for say Well a certainly And

we of I of a the look rather and think the life that then opportunities our durability in the for look of We'd opportunities growth I is to grow rather challenge think opportunities meet extend we'd that continue buyback for partnership. for our and front to us us challenge see to of that to units. more

there have So as Randy market is And to long-term taking up does the far value not that it to debate. all you of new different to have that of comments, his referred factor also then and really give we thing sort far to guidance items as brought in those you yes, respond are in more you -- of look our one that items we're up, is those unitholders. the we that the at how actions except all bring maximizing as you didn't as to you that

question Jean next Ann from Bernstein. Your comes Salisbury with

on benefit, scenario year. Everyone happens your can reflect of you in Belvieu’s fracs this over use grade and capacity these is next wide operates Enterprise talking storage? about how shortages the fractionation looming What any can if Mont or

is Enterprise create a you frac use creative of get incremental levers a every an of you you really lever This where that can and environment have. lot space. has kind And

we you space frac to a frac and then that that in new deal the pulling at are process create recover of levers. few a you cost and do. And cost You plus have any

or Mont Belvieu at That have Okay. wide do storage it? makes around And grade sense. you significant

is lot store but we're of storage. do willing wide not we're but We've us them. part grade And to going storing grade something a -- to probably certainly wide of peoples' got be

the of Houston with million crude and And the of maximum space you Do is up estimate that some have but announced out think newly realistically export I project? you to refined exports does you an of day have handle barrels and important needed could that a what change that capacity for X of be guess for true you products of Houston, stuff. would

Brent?

Freeport, X Yes, just I a Texas that does Belmont. day, number barrels that’s include think it Houston, north City, and just is of million specific.

have of we of alone and Houston barrels million over still just products. capacity of take So X the export the rest care

Texas how And much City, City, Texas Okay. in Bob?

the also do of over load said and there. we Texas X our we Seaway crude barrels and the that out So, well to capability docks Enbridge, down just and loaded crude million have we with we to could share Bob a have day City

question comes Wolfe Stanley Keith from next Your with Research.

Hi. Good morning.

for Ocean some you Bryan, XXXX. just Chinook Old you’re or anymore Is mainly? and it that CapEx what’s for driving the specifically still seeing? And on do be $X a of then about might on just with color growth higher opportunities expect increase XXXX of Just CapEx the little billion

XXXX, to visibility your -- for billion pretty clear a $X.X you so have think I expectation range probably for So $X reasonable billion, XXXX. $X.X probably is to billion

as to the contributor. some And XXXX XXXX. forward as do expenditures the well has a as of then as probably pull for of far you’re lot far to out As largest this year, it I with as that’s range, trying what mentioned the Chinook, far into as expansion of

Got it.

subjects at in growing still of see value organically little, company in do here? all, then more enough or in organically the Okay. level of message we And to changing from a acquisitions and for interest any the the change so is kind

we going is, price but is it’s saying to matters, has embrace what something Randy, a I’m what but that’s a I that already first, system. to you’ve to Yes. and Randy pit And think our additive going that have. just also be we matters got

Yes.

what at seeing just better growth consistently and and on the just when capital back capitals come again from organic projects acquisition we we’re we see returns opportunities market. in on We’re looking -- to returns but

conversion you’re there. transportation to the get Is Great. on One that crude quick you’re it, still is, on? clarification, working that contracts a it NGL still mainly is long-term project the basis trying sort is of evaluating main for thing

to it’s if see trying just we’re feasible. No,

spreads. We’re to problem with not a getting contracts going have these

with Your Horowitz Darren comes James. next question from Raymond

financial And this couple meaningful you in of what questions a the Jim half could upside margin gross gas segment, the processing set operating the the on congratulations got record some being would got I’ve quarter. for back year. and pretty of for curve specifically as drop all be backward of operational dated a on When to this you folks more tight further prop uplift we lot it’s the months. result ethane the in in and a a meaningful I think that prices. of inventories obviously forward could see call think about And steep, and outlook

about think swinging You to So, positive, guys I think how do the build more allocation. further? fracs Conway some lines you talked are you widening even on regional

think you standpoint? us your price? it potentially And can volumes on that capture on you mean NGL sense for a ability So just what equity a either to sustainability give or from upside could

By on any the you miss it? that? thoughts about way did Darren Justin, you got how

It by was long it obviously I missed shot. a

there again. this upside, Darren, the a mean of terms of I bunch Brent ethane favor in prices. working of factors is the in ethane

are demand is obviously pipelines on Now ramping up, allocations.

there of is fight Conway then and between think just talked And I pipeline space the the ethane. Jim of overall about frac for tightness purities a recovery So space.

So backward. is market there is a reason the

a perspective, the from think tightness company short-term, could we in ethane. see I in some

a online, a I of what see last comes a fractionation fracs short-term, case case several be Chinook think space. we’ve there’s online, there when over over Long-term, to the mean that when fight come is seen in space. there the we tightness where for pipeline don't this made think think years. kind to back I I normalizes is There fight is necessarily ethane. I for But a

I months, know but time is it back where how don't there gets more more to period of nine or six is some going, So long normal. this months

do think you means next even PDH. And to here follow-up. you the high mentioned get XXXX, and that soon and guys could could coming XXXX? think isobutylene gives you thinking are guys we'll you which where just BDH between consider more where purity another about kind a about into Do uplift another you point where Jim of for online to the facility get a out what would butane they exposure, propylene then the start quick to beyond obviously that's opportunity for normal And we this iBDH we a extend the as will market value but maybe isobutylene plant to do point Okay. and you that doing

BDH I with Darren, so. it kind be doubt a doubt But I to at you. honest

of downstream you off uplift can think position and that as upside? this guys to to from about get fracs. purity just get value new getting trying upgrading product all yourself Okay. you further that lot a for feel for capture I'm and How your of best a coming margin --

docks. across the going lot to is A go

Yes, appreciate sense. Thanks, I it. think I make guys. that

comes Your Tristan next with Richardson question SunTrust. from

Hey. guys. Good morning,

JV. you differs Just from question on And nomination of these terminal Seaway for quick any maybe visibility large your ship how a loading sort about have the just there chunky that talk events? Can channel? for VLCC you and cargos process

on nominations of the a I also asset it's process. assets, Seaway very the same prior be will similar there sort It's the whether Houston mean a process. and to month,

just then And project. on export the ethylene

sort what You be that that a to applied could pulled guys was projects and acceleration, noted factors if Can forward quarter about the the you drove of NGL of talk other there. portfolio? timeline any those in

bring project in. that timeframe It's with and just a from contractor matter outer of the could a more an more little we in detailed a work schedule being confident

Blum with Michael from Your next Wells is Fargo. question

Thanks. Good morning everyone.

then if could current your trends forward? you and Just you the I’m wondering of frac LPG utilization around rates seeing terms numbers around can -- numbers frac going and any give Thanks. some your throw circling current where us export you’re utilization back, in

on answer? the fracs to You rates Utilization want rates on exports. and utilization the

Yes.

on versus pretty We’re utilized the [indiscernible]. fracs highly

over On we everything we reoptimize we’re I the -- frac we -- say volume. get doing suppose and seeing can get more side, over now to to would can

Yes.

regardless it where our we in fracs block it we’re was some was that designed can’t to heavy -- try reality, with virtually as to our fracs run optimizing those is. it fill and if pulling run throughput for. to is. a have We get take truck Louisiana maximizing grade as fracs as it earlier it able and move we’re location the to single said wide to really We of customers. fractionation But probably full, up. like be an wide earlier, in We with question, are a comps grade And levers We our the total. care I

this from publishing Tony, been a is Michael for side, slide about a the production year. we’ve

as this people capacity to Enterprise expand it. it far headed That has think LPG are question. that what is there happens LPG further, no have going happen, we exports is So, as like that to existing

quantify to market the will any rates sort think trends you is way of quantify Is there where tight there pricing both any terms power. to for of in Okay. And the way similarly things go contract or where renew versus incremental expand from out a market where for And basis just shake on a frac of forward capacity? you LPG today kind are they standpoint? pricing go

frac talking mean, about you’re You Michael? fees

export and Frac fees taxes. LPG

going in get the that middle. going to That’s it’s not $X.XX, to believe going don’t somewhere to -- $X.XX be I either, used We the not exports. on in get it’s future, we’re to gallon and LPG be but $X.XX a

year fees, a I volume, In -- mid XX but terms good contracts pull know -- negotiate levers Brent? know this of going don’t to single-digits I to accommodate you the the if don’t it’s to could time is frac

say to production the to you I’m turn going if forward, I’d capital fractionation go and back for new going number. recovery believe

takes strong fairly months I crude it’s of flowing. the over keep think of certainly to frac XX long or value commodity, it’s the value next how I market, to has XX So, it’s a mean it months then book this fractionator, space,

Dennis Your Merrill is of from Lynch. next with America Bank question Coleman

Hi. can project bit. Good would terminal the to dig if everyone, offshore I into little morning just I a like

obviously it, Which You customer factors about you of and the are it sort buying those state the I customers permits talked you being this? that talked of demand? when out and is here, sort of federal is is customers it get producers customer are going for be gating think the And about interest. Or water? international this, support to the permits, it the deeper who into or is it more

of this it’s with how agencies think get to to that Graham customers. permitted? order deal have thing both many terms in I And in you potentially

under Act, XX state Deepwater falls order federal on have complete. but It we’re and for numerous. That’s is with to Port XX the probably of permit the deal the agencies, to we'll

kind of that what might timeframe be? So

XX Well at granters on permitting to least. up months

anywhere months. at think point from I XX probably looking we're XX this to

we to that. and do money developing are spending our permits application those for in And fact

for time have we Jennifer, one more question?

And Sighinolfi with Jefferies. our final question comes from the line Chris of

dialogue Gotten Jim, your have thinking and me color what offered they Blum having in a is and I Mike might there and good table a seeing you've Are on just around towards terms color contracting. contracts of Thanks quick lot Appreciate the to seeing LPG could to what time, of activity bring about the them guys. on the things of been buyers all that? and batch international for an exports previously next with are the One questions. radar. you're level long the way morning. if I Shneur under two related is that this

guess, seeing we I are mid-customers, Chris?

been fracs Coast When of and at we of day Gulf there new it with lot a Tony has million is said in X look what a there announced agree LPG of that’s a through XXXX, available is that willing it buyer the likely in terms got where and a to are take or point? is to I'm more activity? be spot to contract others it clear, offtake, willing this international at is that are of they the for curious barrels to market

to We've I out getting $X.XX Yes, $X.XX or still well, have We're Coast, them. $X.XX the I contracts. don't the $X.XX only but towards the gone term a we [didn’t]. connects end gallon, which pushing to -- can wish know be Gulf still that I’m in for retrospect get gallon, we’d recognized at a speak I to

we're some seeing -- term or some we're appetite we're that? seeing Justin, pushing for for Brent I So contracts. And guess

years a last them time the again hit there them. to couple mean who for guys I commitment. firmly mean market another for been step for hasn’t of It's go the up, I

Jim long. less they day, the an will and are end the I has just people Some not ultimately is But $X.XX sit $X.XX barrels the to think still of will I These to have and of short And appetite. in there global US on obviously to that fees are going at storage global of got them going ground. for realistic. think a as not the sit said, step clear, of up LPGs

Okay.

is I anywhere spot these a think to close market or market, said export, -- Tony and if it's in Brent term to what priced line. be have this barrels to it's whether is contract

activity I Jim, given or how your level new today. And is lead mean the is would that expansion? greenfield related timeframe in to or we ….? like guess a or any last what year brownfield do to saw something two that be it Is on with time more Yes. do that is year something a could the you I

new unit This that be There XX% pick probably can we another what I’ll the year Graham is? take will Sanders. to call are in is sub Bob up steps XX% to range.

XX to XX.

XX. to XX

potentially that discussed actively could been fleet. the how I’m then other XXXX by is gears a bit has But if just impacted Okay. And switch discussed IMO surprise little I sectors. little by guys, refined

importance impacts? are -- would modeling, the the Tony’s about aiming really supply just activities export or given demand wondering concerned any there other and first be your given past XXXX you in so of at I’m and related And magnitude thoughts exports Any of all just appreciated.

Look, a there’s prices on question. for positive, This Tony. end XXXX just a is at we the screaming Yes. it’s position it’s positive water, and look IMO no

a low very it’s a going So, want, we’ll crude no mind. to is that crude. great US develops sulfur for it’s in refiners, there world question as it’s exports our mean that good see for I the of US is

have is of Sorry, because installed positivity else is that there something seeing? export are you capacity see the or just you you

to our up question. to displacement be. million sitting ready great X really That’s crude that It’s that’s about It’s IMO you access will just to a It’s talked access entire today, export Jim water. our set there high for that is if be. needs XXXX if infrastructure is and to what barrels, going for it

for Okay. a thoughts. appreciate it. the Thanks lot I

Chris. give our Would before information? Jennifer, a participants call. you Okay. few end we word the you, the replay Thank

Time. at approximately until available call be this midnight. Central we’ll Absolutely. A XXXX for today August X, at beginning XX:XX replay And will be available PM

system XXX-XXX-XXXX enter XXX-XXX-XXXX. This the you would at access to for will XXXXXXX internationally you number like automated be XXX-XXX-XXXX, and listen or replay. or dial of If the ID to the call, to please an replay today’s in will conference

call today. you, us a Thank you have for on And with everyone Jennifer. bye Okay. And now. thank good participating day. Good our

now you for conclude This disconnect. participation. call. you today’s conference Thank your does And may