Enterprise Products Partners (EPD) 31 Oct 182018 Q3 Earnings call transcript

Good morning and welcome to Enterprise Products Earnings Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] It is now my pleasure to hand the conference over to Mr. Randy Burkhalter.

Thank you, Nicole. welcome Enterprise and quarter Partners everyone, call. earnings morning to Products the third Good

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

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

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

you, Randy. Thank

U.S. worth and distributions in financial be A a petrochemical Before accomplished distributions Fowler cycles, This in anniversary to would the track take year and marked partners through one you history. our third XXth we XXXX and $XX,XXX Enterprise with not time. to public in a increasing two realize of of I quarter, on worst other accomplished cash U.S. lot may A quarter $X,XXX Randy this third step back our investment to that. reinvested but a our wanted year, the price the our consecutive company has into today. knowledge we're as company. the jump for cycle of crises XXth midstream commodity no at We've IPO approximately

our performance you years, these of to to we're think thankful equity who this possible. It’s quick long-term and accomplishments of XX make don't proud a drives been investors performance are debt and and and customers this employees our team that X,XXX our We Randy?

has. It

businesses to perform both on well by are non-cash million operating the Supported of $X.X largely $XXX hard growth in of strong in leverage fundamentals norm. Long-term strong continued excluding and assets performance These a the associated billion to new our combination supply our attributed and margins. to and volume Gross processing to demand, robust and increases across versus year. a kind this quarter our growth, last put exceptionally third margin, quarter. our in service, chain of was mark-to-market, results. Now global, and domestic increase third make assets are entire with working gas operational we value increases legacy are

provided results which flow times X.X distributable Our cash coverage. X.X billion, of provided

and months far XXXX quarter communicated year. was in performance the Our puts last the kind billion for coverage of flow. the providing self $X.X quarter goals billion ahead DCF X.X fourth of first for nine of our times of repaying $X.X This of distributable cash us funding and year-to-date we

all financial quarter. Moving our to quarter the operating margins and and led volumes the XX operational building results, XXth from on third our across records to businesses for increased last

records operational new seven to volumes. fee-based pipelines, our record terminals, and and reported marine relative fractionation oil segment business reported And businesses gas for natural crude and propylene volumes NGL Our our processing.

approximately our $X.X months of nine third which nine year first in financial spending billion. new quarter, was Total in set also records capital We the the covered release. first this press was

serving memory. in we develop customers two sustaining XXXX this across and have plant strongest scheduled is environment now XXXX. Including million and Belvieu We be productive services day that XXX,XXX we and our capital recent morning, currently fractionation gas NGL and the a about The under our expansion X.X sources are the announced all expect capacity Mont our processing growth construction of cash billion of new these for business $X.X in strong additional projects with capital. of to have over Permian. to between XXX coupled and discussions to of barrel our projects the infrastructure completed billion We segments Mentone in spend projects, of projects with of new current a climate natural seen demand generating

to you and addition what In I'll strategic other of announced development. under we construction, examples. have under have we have couple and projects give exciting a

consumers. fronts. project port and both in commercial producers advancing and deepwater Our with We're engineering on global the domestic discussions is

We determines As reason true and must the from and on that announcements grow Permian that accomplished million I the that lot the call hear from a with the and the X Ford, behind Rockies million depends in and DJ exporter a and Enterprise aggregate look success. of that barrels we barrels is our that the the at and NGL million over tied Canada X next to propane pipeline world bringing as it's system and well to million oil. header lot over other anyone the X from barrels behind pipelines. terminal. pipelines what's because our y-grade realize Mont A of that the is X of fractionation talk, from success The are terminal Cushing, Eagle from build we from our Midcontinent. day which Eagle aggregation. years can The that's Belvieu is crude Permian, storage can own of barrels we crude connectivity have of third-party will supply of as crude a because and bringing Ford, the access that today terminal but same day have of at what's oil one ethane its can terminal a a largest XXX the

finally, Enterprise locations contract give will almost And that efficient million supply supply unparalleled the price crude terminal XX that. to huge benefit will storage our think connectivity there's of storage a and Enterprise's and be launch Monday of Gulf our oil. transparency, Our crude CME don’t has different the requires to connectivity. own XXX next aggregation. access Houston at terminal I barrels third to and has which demand, to party hub of connectivity and gives An its grades crude terminal location pipelines Coast oil customers. another market it

upside Another two for could frankly example, a feedstock our lead on that Enterprise the finalizing position done to and negotiations the is with the several we and of aggregation that as out our not chain supply we petrochemicals, build assume into arrangement to second NGLs, petrochemical significantly question add least, Again GDP extending one Permian. are PDH, that not Enterprise. of Last pipe it's are infrastructure, that which couple are Enterprise we our license engineering companies. of well but growing building global not way out significant couple underway to petrochemical should long-term value with position primary and be

We has continue upside the have we and for Permian believe that substantial an excellent to and extension. expansion footprint

release, position DCF these in Enterprise on units. to our results luck. while said not of press of value per These to ultimately we're goal capitalize we the unit and needs are the is self-funding they are opportunities growth of them, type proud but equity continued and in our our to As drive obviously impressive

businesses last the going demand a that years goes few value users that now give like systems chain integrated provide integrated are proven end to our take through even allow to industry when our plus all dedicated model asset growth us from emphasis international have our are environment. regions provide coverage long-term our and in leverage going to across slump, highly growing investors opportunities with us on those when that entire businesses believe comfort across tremendous the virtually to grow. operating today producing Our strengthen the can coverage. superior Then employees always I greater the fundamentals

investment. reminding and what you of Enterprise, Our you in system the first own goal is environment I own supply is and I'll today finish when the any you that to oil gas, NGLs in to U.S. you dilute petrochemicals. what perform best think not your own

it Randy. the in you liquids to own demand system own best turn I'll it over that most you in Enterprise, with own system Next will when the export the And hydrocarbon that, U.S. finally, And our U.S. goal the you is integrated

To last per per current quarter are for flow mentioned, quarter record year. coverage third XXXX, context, months the Houston quarter primarily unit in generate Good per nine to Distributable to cash mark-to-market unit unit diluted was unit. the we third same year. excluding XXXX, to XXXX XX% Thank oil. quarter we our flow times. distributable in in per is $XXX same of of the third strength to of unit million on a $X.XX all total the flow put Adjusted billion non-recurring of the XXXX. as on $X.X compared nonrecurring unit $X.XX for for items per XXXX, XXX XXXX. of distributable pace. partners the This of a cash DCF third XXXX months We you, compared on our last a quarter cash morning of statement items Jim million $X.XX per to business flow diluted compares unit for or XXXX Midland flow recognized first compares to unit, and per retained in our I’d the And to $X.XX, on of XX% distribution the cash with the adjusted XX% environment of $X like quarter basis. $X.XX for start basis increased the the gains limited to X.X earnings distributable year of third the income about was of per fully in third number a million for crude quarter per ahead this excess hedges in unit, basis of or first and during nine increase record unit per to statement. for attributable fully of income cash or the quarter excluding This everyone. Jim. to few Through Net $XXX had $X.XX non-cash items

debt capitalization of average years. debt Moving was first XX.X principal at sheet, call total the billion, balance hybrids our our September portfolio for the $XX assuming in to was life date our our XX,

elected debt XX% Our senior maturities billion XX billion and billion On debt was $X.X notes $X in of notes Based Xrd, at comprised leverage coupon, consolidated XX October CapEx credit strong in fixed September year our the million for debt was our after of the hybrid in upsize XX we XXXX capital on and have current portfolio X.X%. from XXXX, the offering XXX acquisition, of effective with the of ratio months XXth. unrestricted ended of X.X% X.XX $X fixed investors, X.X XX, the our debt X.X% at Adjusted EBITDA billion. partial expect income three least average aggregate currently until XXXX, was billion be in was debt we at of cost notes do of and $X for and year markets Absent priced the back of growth support a reduced coupled equity notes estimate our of an to by to at not and as an of we year to our debt unsecured X.XX% X.X to rating September agencies need the cash. by times billion, adjusting further securities XXXX.

was capacity liquidity facilities borrowing available at X.X billion. obviously increases proceeds debt October approximately consolidated approximately Our billion September cash. total credit under liquidity $X.X as liquidity, included which that and of from The yesterday, the unrestricted our offering was XX,

million, during are from $XXX program which and affiliates EPCO. proceeds million for of issuances, were equity to unit held purchase program on distribution from reinvestment privately third XXX included quarter employee the approximately only Moving the

not in drip months. the any from employee past Aside have plans, raised and XX we purchase the equity

current paid distribution dividend open up the the I under plan expected the for our business will to reinvestment think effectively elected can be we that, Given it in reduce and we outlook, flow February And to XXXX. discount questions. to cash zero Randy,

are questions Okay, to take Nicole, we participants. from ready

Jeremy from Morgan. comes of Tonet with JP question first Your Instructions] [Operator line the

Congratulations quarter. on the

spreads. to want more logistical being hitting as frac also the and persist it NGL space to until touch to strong then the point a Just kind of Henry far like there's reports and is market pull likely it challenges like issues as extremely and long being so with then Belvieu on and if these fractionation tightness as that that as lot Hub industry that Brent tight a [indiscernible] seems now, causing at right and XXXX, storage of seems stay

your what's wondering I the market does how tightness? that just how the impact is? What’s I'm on that of so, And duration Enterprise? thoughts And tight guess,

nailed just you've Jeremy, I think it.

I think going things very rate going XXXX now is at are be tight. is the to right

through Our XXXX. think capacity gets right pipeline That tight Chinook tight But frankly relieved is comes now. whenever be fractionation, will on. we

in not a -- Our have where is we situation position we contracted not over capabilities. we our are have

fractionation the having those term We accommodate are and and that to deals. people us and looking like them, can for we we're pull opportunities longer to to we frankly tie levers at capacity, to ask come

my of for That oil of Chinook That I comes some on Chinook kind with oil is other when crude and sense. progress makes that just you of want pipes and capacity there to have next need online, into guess goes thoughts far as the into touch converting as question excess out that crude good takeaway service Permian given incremental might today. type NGL I

be next a not said, position -- quarter when be that’s Well, putting in the the ourselves Permian. out heard we’re but earnings in would I second you've convert not Chinook through takeaway in are of pipeline, script year. building to would and on that my the till a earliest And my comes that able be we to

conversion Is that there crude be? NGL or much of time a a for So year how lag pipes. next into possible of middle the might

to in the when oil NGL question are on. you get to again, Chinook to answer. We’re service. comes putting same ourselves Jeremy, a an convert pipeline the position you ask would be, the be that crude would can going earliest And

me, mean, you have from DRIP. one guys I been on Last

but going -- fundamentals for way make the gushing Under Enterprise is decreasing way conditions back to based you portfolio, seems very guys make might a numbers you’re other cash You're and it sense units, coming what unit. like zero, but are be would growth it the really it lot your deep to repurchase see, to sense we it go start granted seems discount and flow? of buying like have organic on

at CapEx. were talking of $X.X time one, goal [ph] when the for Jeremy, growth we [went] sort in the was about to we $X self-funding billion equity billion

$X.X year $X running billion CapEx. Now, call a it billion we’re between and growth

work back returns we’ve places to capital to I got some good with So, capital. think put good on the

flexibilities. think the a equity you flow funds at that you in look definition, and in the MLP a financial the C-Corp other given any an at not do at I or don’t I see you doesn’t time your strength come if and in season midstream from seeing we’re are flexibility. this need a the you in matter a by or buyback overlay space, where financial all a when we’re that where you standpoint, to think -- in it got reducing is you sure you’re And markets term. financial we��re come I make buyback near buyback we’re

with Your next question UBS. comes from Shneur Gershuni

of a couple philosophical Just questions.

First, results CapEx spent? how differently, just even you in lend of dollar touching itself and next the are if said dollar can on wondering Or contracts environment does you longer terms Are had market, you pricing it you responded talk we ago assets, about versus I the forth, deployed next that the an in as NGL an I is a of last guess contract that returns you the environment in few negotiations of to it duration than suite minutes tight better in so general? previously? was we build as that higher where sort and

so. I hope

you an make think into the pennies. probably longer-term than manage to off sense, deals trying opportunity in I we're rather environment are that where for better the Does Shneur? last leveraging

signed you’ve converted was deals when you is better just wondering it than previously. I that longer-term Absolutely, into longer-term if deals

Yes.

Following up on that.

you very you XXXX, In year have where strong growth When Do you have rate forward? talked outlook the moderated rate, going that mean in now on performance reevaluating exhibited growth obviously this the growth is Enterprise's visibility terms about year. growth sustainable the it and distribution I you of growth you’ve have of that your of you you this a rate any think XXXX. kind in sense giving

in Yes, Right Shneur, in or to middle now. planning question, X we're and development. projects come is it trying fluid your seems the I now, and XXXX week. like we're growth mean our in Jim underwrite And goes every CapEx mentioned, process X higher of other very right

billion that CapEx right growth So projects that of would think and you us by amount. have year, we - the a next about been grow at now X.X what sizeable puts if grow could I sanctioned

think we would on to we when we to as now, said I that. monitor have continue come quarter fourth adhere I that. XXXX distribution And as is, need think in to guidance and dynamic So we earnings. provide what report things right are And we'll

can plan was and of petrochemicals built areas into One the you that look primary grow as we the in things, it a change, a grow we PDH iBDH. as step huge as where we was more forward can down

building plants So, primary building which petrochemical processing more or even we're give anymore opportunity. we're or fractionators, not just pipelines plants, us

I'm of I the can your in terms billion when I easily that, the where -- like the seems of question self-fund guess program you distributable of envelope coming retained your cash back recognizing just it from. the do Completely X to and flow, that's is math

Yes, Graham said I Bacon white just but… turned X Operations runs think billion, you when Engineering that

But point is big to somehow a or the sure talked valuation question, sense about market too, about in your think properly of with very it this that had to metrics, Mr. price for billion today been reflected? One market got market. we quarter self-funding you've Does at I strong last last quarter too coverage are you Market, almost of is the you've financial box has and kind of XX ticking Randy, that as well Enterprise make cap all so stock forth, everything lackluster. the but done has entering review right. make MLP sort that When you've quarter a C-Corp gotten

continue that Yes, I something evaluate. Shneur, mean that's we to

MLP its think necessarily valuation don't I valuation, at look and specific. in come we As

out is we our favor, you many are would and not need peer we the are back And MLPs to energy broadly. get look energy I there at valuations sector guys some you on the I when then come think look group. valuation although than that rotation look of think capital, the broadly sector to of converted out very that would, and and those at still one share at have diversified if it's will that and you I if see you is of of The energy if macro, think come into the but us. large we midstream of and in top C-Corp, another broader

necessarily results checking I box So, don't valuation. if know in our the

comes question The Salisbury Jean next from line Bernstein. with the of Ann

kind from does it to and the if to a of sort can affect And charge you around? request external or wide pay? is what Or of parties uptick kind you Have you so grade? move external parties is of up material certainly where willing the market so, fixed that can where that

Brent definitely in interest is this more Secrest. Jean, grade. wide There’s storing

grade. think and In wide for some on some But overall, definitely fractionate. of cases it ultimately, storing there’s some the interest fractionating grade. field it’s much larger In wide grade a I obviously store there’s the cases, that wide of we’re so contract. depends demand structure

grade the how it? feed much move of based is can there around demand for storage for wide kind that And on

right. That’s

many was if should do in And have you Belvieu? just wondering fracs there on, about one? I limitation, that how How based is Mont to think we build

at left going, got I -- going But we got Randy? X,XXX ducking sometime all them build there? got hope Dayton, Texas. space we’re with acres, more we’re fracs. what I we've built X,XXX and the acres We’ve joke out have that we to the to way rate Randy

acres. X,XXX we’ve Yes, about got

many and the how frac about up? take does got we acres Yes, --

on Probably [indiscernible]

math. Okay, acres, Jean do XX and call the it Ann,

really seems it as convert frac crudes And to before, on NGL fair that need from the like processing that new one the NGL and the a and of in? then might question was that line the it you’ll might just today asked think you reduce chances is announcement one building kind last

-- With still Chinook's and a that we can Tony, X,XXX expand is a or barrels that day, XXX beyond or XXX?

Yes, XXX is max.

wide grade So, we’ve I ample think space.

line with Tom Your from the Stanley. comes next question Morgan Abrams of

on the as up well. crude NGL that conversion Yes, line I’ll follow

a yourself do? it it to You’re be conversion? nine that rapid up fairly setting it take simply would year. next to do Or Would months

come Tom up. won’t You’ll Chinook up same. say comes before It the

Is up. be Well, once work it needs almost instant an that or conversion there is does, it once an Chinook comes some done? to

It’s comes -- early at up when going as come to would up. as Chinook it come up

on just potential I on Belvieu third there’s ethane Is fourth. the quarter And prices you basins magnitude if headwind quarter-to-quarter? NGL guess the a of currently to then differentials side, in some a import that to in business volatility welcome of differentials against export any lot the

because I on our third some It's spreads. created hard been to target pipelines probably the for quarter, of allocation am say. those not so it is have which throughout -- convinced

of you you an volumes which I too looks it some your favor of those think I like NGL had kind assume in Well, gave customers. because impact economic up equity of your

You’re managing to that some degree.

our do full when elect to not split have I Exactly, ourselves the process margins and been equity guess discretionary have recoveries. of we customers some opportunities been electing volumes they've that are our

market to would give the your it way give That's one continuously, So who'll you more. your less equity contracts but perhaps. think you live about

Yes.

you do And taxpayer sorry question. you again When do question do the C-Corp and you payer? look tax over I'm go if and again, again be think when on a you would math C-Corp that and or

are that as number and do Tom somehow it end they are a bonus we I of us box that to tax were and limited up, depreciation come I depreciation, doing in There that step plans you profitable would manage things liability in partners in mean you depends do of take becoming I we where gets foresee to on out the that tax be overtime. call can mean would that's come gate. tax the us liabilities. do come because don’t and of in our A not taxpayer checking, step bit the up of the any C-Corp you wind a conversion, how up type little

our MLP. might taxable So we hard were to still is do, when in commit C-Corp right a now, what if

is the whether home that to XX road whether doing years I get trying to this layup math? be years free idea future understand down its just or that the liability some that I has to that it's X am C-Corp tax not there's a

mean again income a what quite can just in begin growth to what's you what can Very while negligible what keep depending you and matter. you that's growth taxes with rate is can, I back That is. come on depreciation is, where again did profile your CapEx in enacting bonus your -- on growth that your for much, for Congress you're with acquisitions it

Last question is loading relationships. to wait and does on and start of engineering a that call you fully get project? it permitting start Can that define regulators that customer facility and can kind defined have till this that month on offshore it clock the Or without you to working you're in and the on hand permitting the XX process?

Bacon. is This Graham

proceeding I to find think point at this all with just in project have the the enough place we're proceed. the time. the all to package finalizing We're at this process, and blocks -- well we have we a permitting we that have

Nicole, next before we go one. to the

really we would and Just follow-up, great. the some be get please remind Thank I to really questions questions keep question that way our our -- could one participants, if one would can more we you.

next line comes Cho the Your of Christine with from Barclays. question

you in release. just to I start a your with line wanted had

your into sure, for You wasn’t if putting constraints. were equity guys into production Can means to exactly, that you this said storage? go alleviate what equity capacity NGLs takeaway reduced quarter volumes pipeline the NGL you're you're I

in of customers, equity frac the getting our were we that our pulling the some is as talking of levers you. and accommodate what producers. I NGLs some think what pulling order have to Well, for trigger if we we’re reduces from since we’re space opportunities there was to create and pipeline levers are about

their NGL? offset equity reducing but isn’t reduced your customer to NGLs, production equity Okay, still you’re guess if NGL the your increasing I

point. Yes, that’s the

some it’s each. think of I

dead another fee the up, then, the be for How into the differences to see think you do And full can’t I fees. as an question up and board beat corporate but up go about to make C-Corp. going this in There'd big you C-Corp? around versus but governance, hate horse structure

So there? your curious is thinking to

we equity and we trading is the had securities when think day had Yes, different at Christine, we time, sun better. our one four like in I simple

have securities So outstanding a coming having equity it. and appeal in of to not two does lot

have and could you do still you security But one up fee an know?

the probably fees But again goals looking the I of one up you're if traded two to and markets up seize the get securities. access to mean of through at capital is

Your next line Schultz question RBC of the Capital T.J. with comes from Markets.

aggregation, quick as the Just to and follow-up offshore may And now Does sense, than there export see any solution but the develop as is permitting on more go? of solution for makes a a an a VLCCs. first an announcements onshore these to then, far as supply we process port, advantages ports the have option handle here? one onshore more advantages need

The onshore process that. depths has dredge its own maintenance with associated permits and and challenges with

So, there’s not a clear advantage there.

second I guess the for question.

some If touch changes the seen Eagle on you we’ve there. Ford, can just ownership

across and what and you the incremental year. Are you and Corpus You XX,XXX that then volumes is the ECHO had two talked pointed day of open capacity that to on Chesapeake's about system? I call think to at Analyst Day, seeing crude access have they the to And XXX,XXX pipes. capacity on a barrels yesterday, this excess

your case, ECHO systems? more So, Corpus in would to volumes across opposed what that to as drive

more day a work. is drive Corpus. of of until than ECHO would it XXX Corpus is Corpus refining, will and doesn't storage million barrels a market, a We X.X rather Brent? destination. Houston access million work to barrels to volumes water. has

Yes, our from absolutely, position beginning. the that's been

NGLs. Producers go than want to different biggest not typically is sponge. to It the

more if capacity kind you have system? opening we that the Eagle your in activity Ford, on of see what’s And

lot. A

at for Ford, least. plenty. The demand got thank Yes, god we Eagle

Colton Pickering, from line Co. question of with comes Holt Your Tudor, next the & Bean

been Any you have you feed could the kind study, able offer then crude been to have a Jim, on of mentioned ongoing exports general just as timeline. conversations you construction additional terminal. with there figures color that? the through for guys the all And you refine working

permitting. might timeline thinking highlighted like? look just permitting XX I actual construction post think process but What XX months, was the to

something XX about color The would on Brent is I with I spend how To the thought you XX in Brent year, Asia we the spent serious can Graham. Secrest discussion the Sanders, are. one was And it I permitting, give that. that's in days Bob recently. fact and Asia days I've Secrest

Correct.

after And then shouldn’t I science. mean rocket timeline that the there

Some still timeline. of we're still defining defining out, we're that

Graham that timeline, we're DJ. think, I Yes, still said, defining

on announcement, just so arguably bit the expectations to little and a there. just market it's ready XX than frac And behind sooner come fraced on in

you on bit hit you chain the a timeline? of to can give background allowed So that us commentary that just supply

our, timeline. that is ramping One we really in that at thing is Chinook, High another that we that deal starts recently did announced Alpine the up

biggies. I those are So, are think two

we plant announced the Yes, this morning.

Mentone. Yes,

in Yes, that construction maybe already factored hitting on long into you that terms that. secured anything more of to specifically time on guys the side engineering have lead and items

XX, on frac obviously, timeline some construction The the done equipment already we've of time kind purchase. lead long of

Yes, on lead engineering complete long queue the look items purchasing and the forward. on we've got, lead in the items defined we the and all it’s is are

long we we so If trains about that as you it and few built last years. think there the number three over of wouldn’t out the ago, have trains

gotten really, at good pretty So, we've it.

Yes, we have.

but I -- a shop spaces placement pretty high, the line. our space -- think pretty got shop got the defined, it's is placement that pretty we've and well, well is -- we've timeline

with line Tristan of SunTrust. next Your question comes Richardson from the

ramp Permian. there. positioning seeing potential yourself all guys and for to handle and High an XXX Mentone potential Chinook are You initially day this of out expansion growth a there strategic additional on day a Curious potential out with Alpine supply those and for here enough three the adequate expansion the and you're the is on talked about extension XX and projects to

for I it's I it's ramp hope not. we the see. think

Phillips with question comes the line from Your Guggenheim. of next Matthew

for see precursor or related NGL The more etcetera runway NGLs, this Or frac capacity building export Channel, the capacity Another our do Ship I you Chinook inbound in terms a announcements sufficient Belvieu? to that year all and mean of needing of out on question. the X sense? as is recent X

I we to of ways think latter think was we I have it's If the cheap further with expansion group, Fundamental’s pretty bank work will. at dollar. forward for look and and Tony the probably relatively we our Chovanec’s good this some expand

Ship the reason if up And is export Contingent flowing crude through offshore change you site? project you can view move out whatever of that volumes space? SPM upon I expecting are how the the and that that that does I mean, Channel frees mean, pushed hub some for

capability, if Beaumont. First it backfill more port needed. think longer it we capability we an capacity will then we have think will in port, that a and than build we takes offshore we as we to of and offshore build City Texas foremost If exports the yes, with in -- LPG which lot be will

NGLs? For

crude, Ship we to No is you to point the bell my NGL move to crude NGLs. I ports Channel. accommodate was, for other the in to am can But going sorry.

Dounis Suisse. Spiro Your next the Credit with of line question comes from

to of wanted you just seen back as just the being while. around go the one comment in earlier strongest Jim, made on you’ve markets, a

this does the M&A I does come out can equity math against the is as starts price of an you guess outlook positive space? increasingly perspective. you guys What the So, mean, really question values from to work across just

we’re M&A? Are looking if you asking at

Yes.

would. better than I returns at we growth we an gives it, M&A building us look constantly Yes, guess but organic that found

more much it’s accretive So build. to

of that of exports to it exports. And then view of front? context spot goes already if risk to gets trade kind Asia crude the just in is over see crude heading out tensions the on you the mentioned U.S., and Or displaced one Chinese also in curtailing effectively do you of the and the back their Curious effectively on crude another?

efficient, but change. volumes becomes less It Trade move. patterns

line question Wolfe Stanley from Keith the of next comes Research. with Your

larger give barrel demand an a on Seaway actively and if XXX,XXX that's on you a you're Can give the expansion expansion status working to of update a level day the customer just at Seaway still? maybe something

expansion in October. was [Jade month DRA complete This Amy]. this earlier mechanically is The

our of terminals basically capacity expansion. through continue discharge see the out the is available what increased the to with DRA connected that, and test on work rates to basically carrier We

second Now that’s on, for question I larger your have well. as We do expansion? think was expansion with now is something horsepower development there additional right in a Seaway

pipe it Okay, horsepower? all but not would adding DRA and be another

Yes, about the existing the DRA talk on just the pipe. when in we be horsepower would

the high level, you how tied next if market were conditions a Second the do strong? How and QX NGL few question for pipelines quarters, repeatable marketing fractionation? quite think they they results just NGL repeatable are at they on on

-- in our for fundamentals I future have think good The think favor. bright us. to going a are looks are the I we

from of Your line the next question Danilo Juvane Capital. with comes BMO

dividend of in doing XXXX? how clearly favor in you've but you're the the buybacks outlined now, not that growth think Randy, about right you

in and we as business in while places come great a good where Danilo, to to we're again environment see I growth think come are in a place from to capital deploy standpoint. CapEx

about through time we like of really what our in let we where in really do as about. with We of larger on we XX consecutive year, track not a on at shake growth goal far organic years self-funding, process are of end out come to that to are and we that think going and do Probably, consecutive distribution but on CapEx years -- far talking see growth. as as level what goal projects that next when timeline we have want -- some of XX the The XXXX But the thing, I were have Jim be limit in growth equity and it, Jim project. earlier of and we're our that of as we're distribution of planning we will to talked about these get distribution a this to and growth. good day coming talked to we stick coming see going have put one

more it's in right I complete still were place. business now, come and need process, So organizationally to great a planning but we to mean our wise

online? did comes we volumes, NGLs have equity volume How lowered we until should this the on continue follow-up should you to like about a think that? As quarter expect to Chinook

equity We're And lower those higher volume lower once margins. I equity think online. Chinook triggers fractionation us not terms does that give margins comes more mean about volumes. than it pulling than of in

Understood.

of those can we where out Whatever money making those equity bet -- we are our replacing are taking you volumes we're volumes. than more pocket equity on

volume -- you one fracs at come Okay, the your so online of and should Belvieu? improve once

you, wanted sorry. hear Just to I'm

one at frac facilities, facilities volume Belvieu? So, online most should new I frac asked the that of improve come your

You are right.

because production coming States want liquids up. everyone's day, some just to add to expectations. the to I in continues At Tony. grow is of beat end This United this just is equity the volume thing

to and slowdown point. us that's at it's not for this So a region the reality

go and they barrels those somewhere coming. So, keep

we volumes, to see you'd customers volumes. to equity lower And those if choose replace with Danilo, the

bring know, purities out system of If our you also opportunity Conway. has to an

that we optimization do every day. So the that's just game

Your next Michael from comes Lapides from of question line Goldman the Sachs.

Belvieu? of A significant first the build quick you’re question for you. different you When to you you're these when tenure signing out have how fractionation at started started the relative signing signing the days contracts may what Mont is deals,

sometimes It take we're their it's demand to have phase, going comes and it’s really, strawberry. want and and kind them it’s gump dedication sometimes goes, and sell want They positives, vanilla. the we forest so both of approach, vanilla, they

We request. will a little fee We're them seeing the sell strawberry. demand more

contracts are Can length X about of of range or gave mean of detail you kind just average in contract great talk that? X than to you longer I significantly type contracts, that much year but

like We a it’s XX then we if a year like but it’s XX deal, year If a year deal, year XX deals. fee X different it’s deals.

Capital with of line Followill Advisors. next comes Becca the U.S. Your from question

volume where fracs Eagle and the leverage It you talk remaining chockfull. seems the are you’ve operating besides on Ford? pipes about like Can

That’s pretty much Becca. it,

Global. from the question Sibal of Sunil Seaport with final and comes line Finally, your

XXX mean, through? press could the was remaining question on those segment, much hedges duration your release. related had of talk crude? crude basis you I time that hedges about wondering, you basis My how in mark-to-market loss run million if to your the was I

look about X mark-to-market it’s these what’s earnings XXXX, you and gain expect and of million outstanding, And quarter. this get If hedges XXX should to-date at fourth million. on the in XXXX, that XXX million get million we quarter, from of to about including then we a in that’s in XXX the back XXX; kind like

changes, could mark-to-market a differential extent. see could not assumption losses And so see gains. probably if that Spreads to assumes, further, we they good is narrow additional there’s no we widen or which the price

And segment on a which well any the there pipeline medium then both the of determined was was was bit trend wondering, on kind as seems volume I as of volumes. the that? sequentially there crude terminal like, decline volumes

out stayed in got September you before here come crude I I big in think volumes, the think were where there’s of a vessels the on Chinese the And market to repositioned that of there kind stepped at then period barrels tumbling some saw August. back. start uptick a

I And pipelines in that reflected also guess? the

I’d Yes, I now, on the wasn’t flat. it is wide Eagle Ford [ORB] and say would say -- open as is as right Seaway stayed there quarter-over-quarter

Seaway. was of Bulk it

justified the it Seaway, was versus Europe. -- of a and period, couple months were Yes, wasn't they tariff the

our be to would then everyone replay were listeners you from great it that day. have you. if Nicole, the Thank a and Company, the give information

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