Enterprise Products Partners (EPD) 31 Jan 192018 Q4 Earnings call transcript

Good morning. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the fourth quarter 2018 earnings call. [Operator Instructions]. Randy Burkhalter, you may begin your conference.

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

will President call Officer attendance and Our and today. senior management Other today be for also Chief our Teague, speakers in are Executive members Randy of Fowler Enterprise's questions and of Financial available team Chief general partner. Jim Officer; for the

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

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

milestones In Business Thank X the on and capped setting financial to quarter during fourth fourth the The quarter. achieving XXXX. fourth records. reported records throughout a continued you, theme, operational consistent very financial strong off has a total, perform year we well Randy. in and operational quarter

retained last margin coverage normalized This quarter the volumes, the XX same provided a we total from billion billion, year. giving Our a for records. $X.X $X.X the records. theme our X.Xx year XXXX production compared We the the same increase flow year. performance and of operational we was of propylene retained us billion That increased -- gross of XXXX of to for set was $X liquid $X.X set in our all supported operating pipeline quarter natural where in and last gas total XXXX. and X.X $XXX XXX% a for to million pipeline X.Xx X.X cash compared Distributable X.X. coverage same billion volumes volumes financial XX% true quarter for fourth a operational to DCF, record The

value we unitholders, our consecutive to now As have distribution our for returning increased years. XX to

of authorization On position future, our performance board a more we Enterprise $X has return on the this we have kind that confidence also of the and to today, In billion program. tool to unit common which the our credit to investors order heels step announced toolbox. capital the authorized believe investors, we announced buyback multiyear our the is of a today significant equity the done. buyback to first to we stop metrics, our strengthen was new have believe diluting We our and in

$X.X all parts billion several new of of assets are connected have of We our which to since chain. value completed XXXX,

Permian. assets the We've have continue We committed underway. capital billion we in than Also, $X.X building in $X billion already Permian. of projects more to another the

export from Our gas fractionators crude includes now NGL base Belvieu NGL, to more LPG two building beyond. capabilities expanding and and segregation oil gas natural Basin the oil processing gathering; and We're in Permian new Mont significantly and additional and and also order Permian handle in asset storage. crude our liquids takeaway; related natural

quarter Shin XXXX. to pipelines, includes the XXXX, NGLs The of the with Products' which barrels and year. production Mentone toward to nearby will quarter east of our come these and liquids collection the in Our scheduled of this quarter facilities, third second Oak service our begin completion the X for are in online plant second first of recently complex capacity These at plant. in into gas Orla to put the of Permian. west natural plants over processing three gas 'XX. Enterprise completion service Upon include in X.X were is in gas of Permian Orla XXX,XXX pipeline, the a our now a Bcf have day NGL announced we processing natural the of plants day Mentone will over scheduled soon scheduled pointed X

plants, in Energy system, capacity our of NGLs gas, the contracted Oak natural NGL Texas barrels including XXX,XXX Coast. our production Transfer, Ocean for gas putting addition Gulf pipeline to that In In is in in Alpine their a committed Apache, expansion order combination High day completed move to the Shin from toward Delaware of their over the the to Enterprise. to more from natural to all Permian East has back Basin with we service West in Old production of recently

For to crude, XXXX of to our only valve crude relief and served day producers. big a and the barrels XXX,XXX Midland as Permian in up Permian Houston new moved for pipeline oil

available for We contracted in are party complete in will third barrels NGL a agreement. service of process project, our April be under will day long-term is be limited commissioning Seminole who's to February to over but a made the which conversion a by and capacity March. expected be XXX,XXX That in

In administration load addition, submitting offshore hours. team tanker points and build to we in to is futures our the to Washington have speak, a oil we terminal a an Once completed, a price announced but barrels XX with contract we application expect in X be successful X XX,XXX delivery X One Houston water VLCC giving able port needed open, the September, us system. Enterprise carriers. fully million government enough is hour, with as for to capability crude crude deep the In load in not barrel component new back transparency. to on load per CME the maritime WTI VLCC at

to key Another connectivity area Houston unmatched with terminal and network, Enterprise distribution access offer to supply our storage supplies. supply success is position, and aggregation. a component coupled

all terminal connectivity aggregation, the have transparency. Our supply will necessary open and price components,

our model not is model. business business oil It new. like crude Our looks NGL

is is growing "If and we underway. of than more in the Texas faster Shell into which world. Our a industry, it book on provided and ethylene Belvieu it." to includes Coast services, petrochemical This global is by change be The on opportunity place and a is fill. it, We growing ethylene 'XX, have which international access the the U.S. on moved export growth to in Construction ethylene service the the the of attitude there's don't happening low-cost ethylene to new to in the Gulf flexibility which continue in production, services by XX-mile the in support Because production to of our fourth broken, petrochemical is terminal, leadership producers to midstream isn't the new of believe significant will any providing Louisiana feedstocks the situated Enterprise Texas. facilities, limited facilities quarter ethylene in expected driver position construction and markets. ethylene underway what's and write midstream from ethylene pipeline dock, distribution storage export Bayport, Mont a

In propane addition in converts to additional parties into several world-scale with Belvieu. April, the Mont PDH which propylene, into we're PDH on working put commercial service polymer-grade full last an

Given systems which our significantly storage Construction third and and has increased also parties, our isobutylene distribution chain on liquidity. footprint in our plant completed propylene, of opened this octane we extend utilization be year. in This is will volume to should which fourth and have IBDH quarter allow our facilities. and our schedule full high-purity up value enhancement the butane of facility, on

saying to projects we plus our close momentum, we a we seen market between that, expect have and seen thank to never long prospects energy supply this our never of around much petrochemical culture been have opportunity. time, the I'll saying connectivity, continue We development, the our grow midstream our I underway have and they and a valuable by develop position, services. have close asset, than and by under has our creativity, that do. most an to you the employees. ethic teamwork I've work organization I'll

high-performing are truly turn appreciated. to and make the Enterprise I'll Randy. that organization we are, they what Our it over employees are

or income Jim, excluding Thank you, XXXX. We of morning. to flow, of or the for noncash XX% attributable quarter billion X.Xx. good coverage the fourth fourth earnings gains retained $X.XX had statement million the income XXXX, with $XXX XX% DCF a $X.X quarter unit to and million XXXX fully of was XX% represents adjusted of partners increase fourth $XXX on for mark-to-market in basis. for and the million increased losses. excess unit and distributable XXXX cash noncash was nonrecurring This distribution a billion flow versus Starting the up This on fourth for in $X.XX per-unit last cash in per diluted unit quarter per Net per items limited $X.XX in and the to quarter impairment excluding to unit $X.X quarter XXXX of $XX a basis. or compared the per XX% the quarter. comparable included compared EPU items nonrecurring year. Distributable

is train to from in cash flow $XXX XXXX, would, cash approximately Cash the $X.X a respect we XX% $X compared from flow compared XX% for approximately CapEx million Orla retained traditional the for million payout billion increase $X.X XXXX. processing approximately with full Free of for XXXX. was which so billion the Jim with to approximately cash service operations, to XX% growth our quarter, ratios, into cash operations XXXX. complex. as the DCF fourth mentioned, record of of flow XXXX during of terms, placed investments. XXXX fourth you and billion if XXXX. for the And the second flow to respect XX% including We percent Capital $XXX quarter our was year quarter from a a of and increased to at operations distributions As

projects $X.X of We billion have another major construction. under capital

will into respectively. service and last Additional isomerization projects call our deisobutanizer an since added Mont and placed which includes in be incremental in capacity XXXX Belvieu, earnings XXXX,

quarter Our in $X.X in CapEx. On basis, $X.X million a of sustaining capital were including CapEx. million fourth $XXX our were including year investments billion, full XXXX capital of billion, investments sustaining $XXX the

to pipeline In addition, was sustaining million $XX includes billion, $X.X $XXX $X.X expect to on We for million expenditures. $X.X currently billion billion investments to maintenance in spent capital of range XXXX integrity which of capital another the and capital $X.X of expenditures growth and expensed. billion we that be

in we approximately including option exercise interest a from of from million to XX% an the currently expect Shin also the receive owned to For pipeline. projects, Apache-backed cash acquire $XXX by Altus contributions XXXX, of partners NGL Oak Midstream jointly in

terminal, Shin net the from the growth subtracting ethylene XXXX export of cash in our could CapEx So billion. marine XXXX, of after and billion in $X.X growth our range for to and expected terms partners $X.X between CapEx related Oak contributions

capital cash from of flow operations XXXX, we've $X.X XXXX and or if replicate were reported we only range potential a in flow net imply cash compared the the billion $X billion So $X.X billion billion flow in assume to cash $X.X to XXXX XXXX. free XX% increase in about would to these investments, this of of free

billion. Moving to our -- debt XXXX, balance sheet. At debt XX, $XX our outstanding December principal total was

the hybrids, debt portfolio life our for date call average of first years. the Assuming is XX.X our

Assuming portfolio the the of life date hybrids, the average of the maturity debt years. XX is

our consolidated spread securities ratio debt a of with effective our debt of hybrid opportunities rating great EBITDA of for finance adjusting capital. XXXX, was ratio X.X%, as debt-to-normalized-EBITDA the normal further debt wider fixed-rate equity in. was debt estimate long-term average XX. reflects position debt and for environment, after and was we partial million rate X.Xx in assets EBITDA cost Our also rising we XXXX we was for of was think by portfolio $XXX If we agencies a It the X.Xx. by be unrestricted leverage normalized XX% our cash. the this $X.X to December reduced than was of that Adjusted approximately In and long-term treatment billion,

X.Xx We leverage area. in the are targeting normalized

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

net reinvestment XXXX. from issuances equity of and proceeds unit programs Enterprise approximately employee the received distribution purchase program to redemptions. quarter of on during the $XX Moving fourth and million

on fell As distribution price December call, DCF will the to The an over price back XX% in X.X back million mentioned December, existing dated plan indicative discount buyback on approximately of just program have When Enterprise reinvestment yield a that in buyback. average an at bought XXXX. offered this per-unit last $XX.XX, was which units quarter's XXXX. the not equity exhausted

this debt-to-normalized-EBITDA our mentioned, to buyback The $X factors, our program we including As return flexibility, dependent of this maintaining capital of our with a opportunistically multiyear in target and higher the will partial area as growth on have be investors. footprint receiving as on assets, morning and X.Xx financial number utilization program existing acquisitions capital also announced performance, returns in organic that financial Jim potential of credit. billion leverage the hybrids amount a complement equity to our of projects the far

per unit per the increase to a leads $X.XXX morning increase payment up to Randy, increase of full open $X.XXXX expected to declared the recommend which can year XXXX think respect is with for Additionally, we I of XXXX. guided over unit, XXXX. with quarter, it this we that rate a board And that, to intend that is per X.X% an we with which questions This of through consistent

from Thank you, ready. take questions Randy. our Tiffany, Tiffany, we're listeners. we're [Operator now ready to Instructions].

Instructions]. [Operator

first question from Your Crédit with line Spiro of comes the Dounis Suisse.

start XXXX, being we step could. like from Just if off looks at around CapEx prior want a guidance it least billion. to down $X.X for on comments It

And so curious moving guidance with lot bridge of there's those us parts if JV help comments contributions. obviously, the just you'd around a just range. there current But

Altus the option, we that Oak get is ethylene elects will number their consistent $X.X from be around export the billion Yes. No, Midstream that expect contributions we partners Shin a of on the Navigator it's contributions it number plus dock. -- again million exercise because pipeline, apply honestly, $XXX the assuming gross what to before from we'll

would, if just we're to net all it from gross you taking So is doing number a number. a

it. Got

assuming be? price, approach consider would Okay, maybe the broadly, that you're back helpful. And of but think metrics that's catalyst the use where whatever to a how where kind they every the buying Is see certain you more talked quarter, should function just are systematic little just may makes case percentage be? great other But more then it. you as just that a you a it every really to curious, opportunistic of just to it bit, buyback about program, re-upped. about stock year, the opposed a maybe on And your

Systematic maybe good We point. get doesn't might this feel real that. at to

on the market capture units what's in also come can what because of thing right in we -- our buy on to capital, be then where capital up yield bring organic-growth do but some where per And in and DCF on looking I back is, not in that's And to final get keeping on the order capital units. what offered were to flow of returns and cash is returns -- our think, really, drivers buying existing the incremental on is additional our then we to now good come returns try performance back up. are leveraging to good footprint. and also the company we're the that project not projects in only one, plan to our financial -- would come leverage it capital implied and in compared

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

like Shin until so I'm sounds you the not after commissioning are if are Seminole going? wondering, that now It where couldn't Oak. crude you NGLs happen on yet. thought the Seminole old just I just but were allocation the Oak that's as Shin case, Seminole

Ann. Tug let I'll answer Hanley Jean that,

Tug. is This

accommodate MAPL our have impact able around, Seminole. assets We to diverse barrels with no our a our to that everything. We're this able system to on we're time there shippers wrap are NGL at and

the to levers of lot a happen. got this pull, levers we and made Ann, Jean that Consequently, we pulled

expecting follow-up, comes takeaway. to max Gulf rest for October Permian the out as wellhead term? impact year until online of we volume Coast short in Okay, this makes because a Permian sense. you Express growth And significant in may we're Are totally that expecting then gas your clearing

building at is are excellent value gas Not us. to got got really need of the producers that got chain. they part out. We've out good We've This We've chain for takeaway. value integrated Brad an build Motal. what

lot think customers, in at the a this to doesn't moment. conversation, there's it leave my flaring me of point So because pause give lot don't our of a me at

going and we're deals. into processing to the to -- from we to leverage afraid be gathering And east between do right that not that west capacity have

of comes with the Gershuni next UBS. line Your Shneur question from

to Maybe the I just projects. with wanted off non-FID start

loader longer that's costly a of perspective? manageable talked is endeavor you've plan, this out some think be term, cost about Specifically, to towards able Houston. the fairly or when capacity export exports? LPG something it from a VLCC existing is of Is about And repurpose it the I project, your to

money as manageable. size now, we but -- it's probably a would the we are amount characterize small manageable. of At not it's Personally, it

in our in said script, we our capability. we process of LPG export expanding As are the

this offshore got kind kind so Putting as LPG, look really in -- both. to it's to at think port an more you I is combination. our enhances it of a ability of

question. enough. project? lower it of then Or of profile also think buyback the the to Enterprise the fair buyback you a hurdle for it discrete then than Okay, value new accretion a back would And all a immediate of the profile project? of because time yield targeted it a because of you is apply When versus just towards build getting about lag same return of And is is risk buybacks, is buying time lower lower risk a the secondly, project? the to that

Yes, Shneur.

on point. in would, think hit in. a you when we a at cost key new I look and projects, built come And you negative you on returns security do have if

You're when cycle, I that the look new mean, the yield to that's we a in we by in units. year compare so, at into two consideration come take DCF we do offered an XX-month, construction and project the --

and FID lot Okay. be assuming where self-funding you just you're Does it? potentially basically your buybacks, $X if be XX% a in in towards where with the position you in maintenance target, around you a your of netting share want far you and to reimbursements in -- excess is XX% billion. prepared put That end And up just have spend out which is over also leverage CapEx funding finally, DCF, goal. would above a that used line excess with projects, should of everything, for remarks,

we're we free mentioned, there's Jim there. the and we're as that capital as in a to ifs have. level very And XXXX, optimistic going Yes, of cash Shneur. got far of lot we a lot XXXX -- opportunities as of put projects. growth think you about flow Well, Again,

of seen in what see in our to gives the We in customers, And really, Because flexibility haven't things market you in be the We are come the the -- where type want units mindful. a too. the gives And and our this valued. new road. also, won't years. would, of it's or we'll if we down if for whether units the it's then want bigger check keep we leverage keeping projects momentum number -- leverage to us us, check,

line of next the JPMorgan. comes Your from Tonet question Jeremy with

that there. Just that there, want Waha seems uplift the to favorable just in good gas a quarter nat good of Is and deliver a it just segment like XXXX? going some this into turn Quite basis pipeline of term? strong I'm kind largely to of the the being kind this you run kind of any what the there. and there? thoughts is rate wondering, is other also side of near expect basis to on Permian? Is segment Or dynamics

You want you Tony, I'll... to start answer? and

west No, lot XXXX, and from performance a of west east in was yes, to my perspective, the to south. for the

that's Jim that using at term, hard -- and as continue. our term, earlier, to leveraging capacity, looking going look near -- mentioned Longer longer-term processing gathering we're think, arrangements. at a taking capacity I into that

near good that, So think, run rate. term, pretty saying I all a it's

a to It "We this expect first Permian way right of show won't of think a of you be at as that. a second has the the associated that not amount lot gas, of Permian that Basin, says, that exactly come little out alone. bit the spreads one, gas 'XX, us." point. anticipating time market pipeline, gas back to move. I'll price might but that it we're we've towards in until add not you that anticipating we come I natural Those seen So that don't in end that to get the curve of The be

items Is there of Midland-to-Sealy. in side kind I we And question talked think, helpful. number Or oil of kind are near at That's there? we better similar a on And this a net any onetime came is the that Or good $XXX bit a there? far gross? about as for than kind there. the that as run the a least Is a crude rate of results expected term? million,

question? repeat number. you could Jeremy, that Okay, net

for term? should this the are Okay. kind would as And there as expect onetime we performance a whole, far as you near thinking be is Or benefit segment that in of the a about? any similar kind of

in on all period, we're before you benefiting come the if during Jeremy, on, long-term ramp-up -- XXXX, would, contracts you Midland-to-Sealy. this

will you this that, the the that help of get probably have XXXX in see with of we'll the benefit ramp-up kind we'll Seminole same at So if going run won't what But conversion. would, forward. rate you is us token,

of Jenkins with next Raymond from James. line comes question Your Justin the

what I on but to own of follow-up start think we Jim, mentioned is you Enterprise account? the a mostly most capacity for it's any ship conversion. I had, to know covered I just but want there Seminole with on open your contracted,

It's There's hell not there's lot, but bit. a of a little a some.

And Okay, latest then fair thinking Seaway that the here? potential on about enough. What's expansion.

The open was it season ended on the successful. XXst, I believe, and

So day that contracted. that was XXX,XXX barrels was a incremental an

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

discussion on to wanted follow up on the just nat marketing. gas So

So in-service? you kind any that North Texas of the a January Ocean QX North give move Old does additional to volumes capacity pipeline you down with the I look, on and Texas decent mentioned was think then across of in-service but

the mean we've add capacity answer , on does. I on of XX-inch The yes, the partner worked both Ocean our on with pieces is it to short Old pipe.

it does yes, the short, additional allow in Coast. Gulf us Permian to to So move

party? And do is from you third contracting mostly a Or there? standpoint, spread that have exposure guys

spread that in as not as Right some long-term into we're now, But said afraid more earlier, leverage early deals. -- said exposure. we're we to

in saw then -- increase QX, Opal dramatic fairly Got we pricing in there it. And just Wyoming. on

Can just kind what processing looks side. QX? guys some think, and maybe the in any that of it may margins you to like today frame impact exposure had I had historically, there on you keep-whole exposure have

that? I'm sorry, you repeat can

Just the processing. for the asking side of keep-whole on business

where of processing the price have stands, gas get margins of update that been in I impacted rally years think just had in a an how couple Rockies to really QX. a may on since exposure sense it's we've trying of so kind

a Randy, numbers? I you more Don't little Wyoming up impacted it impacted down in think. it think it Colorado, bit than I in it have those

at Yes. had Meeker It more than up at plant Pioneer primarily. did it impact down just

We so rejection pipe backfilled made we the we other an amount still of Pioneer for at money. with time. were in quite But opportunities

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

questions of I but been Randy. follow-up hit, have have a my Most for

You how obviously flow. in a today. noticed announced structural the this buyback you And I in was of lot on there cash that sort shift your focus free perhaps Is comments, your messaging and flexibility going going shifting away cash on see DCF financial of forward? we Are should free you sort increasing Is from something forward? an flow? focus that of expect a having

funds, to utilize financial had Well, own our investment from in we that, self-funding guess, incremental of the the the can making us -- metrics. think valor a X I investors accustomed language. more going not we And MLP-centric and And institutional come from you we MLP things. is traditional that we we're traditional as financial model if would, come specialized I transition is metrics. our are that model, to more with One, in,

of lot GAAP and it's generalist operations cash measures, multiple terms to unit bit, or flow. earnings price capital of really unit, earnings to So that And which a from whether free just little a need per of is cash consuming transition and language, making flow MLP-centric whether it's model, in talk an their trying from we investor. appeal we're per on to

C on Where development your you the of respect any that, to with that today? versus an are evaluation MLP guess as extension corp? I structure of

back. it. to evaluate a decision. no continue It's long-term going There's We

So capital. convert. of there a we're as far many And of more MLPs access valuation, as be looking are number going relative things the frankly, to at to relative to things, one how

at, in One permanent look this of forecasts we is, things CBO look at deficit, doubling we CBO corporate questions the rate?" ask almost by the $X.X we federal -- of of coming up XX% trillion Congressional The is deficit that federal we to Budget what has election at are There's "How XXXX. when another XXXX. Office, look also the one

rate? the just XX% is democratic XX% And permanent Kavanaugh how votes again, remember, did. Brett than So more corporate got rate that

to monitor. So again, we'll continue

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

Randy, the that got enhanced the about Just of for of spread range all the how bit $XXX million. $XXX me. opportunities outsized Is guys little normalized spread or talked just a to generated deem and opportunities one about talk Could EBITDA, the or million? quick about kind amounts one of you outside you normal? you as concept that you removing maybe

gas. spreads in being start, system. oil, to I'll wider natural was make some number there more we We to did whether than bit Jim Belvieu a this were products, the but Midland of is would, than at about in it And normal that's science. looked spreads Midland I comments. year, normally, it Tristan, was I'll it it whether if past it was Yes. price let some to normal, Houston Honestly, and you Conway little XXXX, liquids, on certain looking art and was are -- Houston was think -- a what at come wider more than regional

pipelines kind Conway And opportunity the to Yes. It's never to the good so because enhances this somewhere we've think "Where get But there's opportunity Mont the Jim. or about think you look Waha if our invariably, or going to to Coast probably Gulf at we're were When footprint. footprint, spreads. you a somewhere Belvieu some Houston across opportunities, that into an that of that question Midland on, Belvieu Coast will of Well, spreads have year, footprint. our attitude do the our Asia. more the downstream it, footprint, be system on across you comes crude Permian?" Mont seen overbuilt future is, to in But Gulf our in you

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

ethane on permits awaiting are Morgan's that Point? announcements from have and a Gulf terminals We've allow exports. ethane potential a China exports on just at the question aimed you on China to new capacity imports. of expand First, Coast ethane What to seen out on few do

So on if comment you could just there. your expectations

what I'll over we over found being I I LOI business, And I an long We petrochemical wanted I'll China were ago. went it ethane and too turn not start, went to guess Brent. because to for we exports. hustled thought to is every and hustle

grant as them. they're I understand think, I to discussions new we're crackers, going X and it, X in or with

as Morgan's got can at Point, some and what Brent? we we we far capacity. do As can capacity add left

Yes. excess To Secrest. us a or you at day docks. have expand access this, have about hit the Jim ethane capacity. dock. probably hydrocarbons, barrels LPGs question Brent of end supply, But specifically, is seen a access lot your to on you paramount. for of This day, of invest the to additional is announcements regardless about Obviously, is or to crude that. there's opportunities answer we don't the capital But oil, we've supply Whether a have to it's of all talking if XX,XXX

sense. makes Yes,

quick one Just follow-up.

You a at to need turnarounds in Any in XQ. frac Seminole went expect fractionator we XXXX? the turnaround through

would that one? get Angie. Zach, or Zach you

Zach. for It's

looking to it, I are at as space will -- we the say in winter. seasonality bit a have that we some little more fractionation capacity has

at we're can. any forward pulling So we looking turnarounds that

So we believe remain XXXX fractionation tight. space will

of with from Fargo. Your question next the line Michael Blum comes Wells

that on topic. stay just Maybe

going saying tightness third, seems the that like it now extreme we fourth to dissipated in but quarter saw has think it's market frac you late tight. still obviously, 'XX be you're So of somewhat,

blowouts additional of balance walk through that. created in you your thoughts if you get the wondering think was on Do you some we'll these how rates? that market. to get? see And I changed where that what just for tightness frac 'XX, periods get wanted extreme think do slack kind more So could you'll Just you in of of tight

see staying And can project this, to hard tight, It's said. but volumes, speak upon Brent. obviously, of look others, Zach dependent a in and for we we Permian at is for had This our of I but just terms 'XX as volumes. is what system lot me

coming. have what's look you projecting are at talking growth we down. but coming what, on, we're seen volume or to, significant the But real. the in In blowout them some weather Midland that of you that Permian, terms happened seen production in the I in of was quarter, that say fourth has out some seasonality to know don't the and in we've on all the I at volumes that look with that if do will if cold the if go are producers

So tight our in terms in space, fractionation 'XX. will of it remain

pass deals, Michael. won't we new on But

export a Okay. the global second of market. kind And question on then question, LPG

wanted China. business, aspect of trade know spat having that or between LPG new on or re-upping existing any negotiating anything including contracts? you're Just it as if the with potentially your U.S. and flows the seeing customers to export Is to any relates impact

Yes. a I healthy, -- ethane. of healthy if China, the appetite mean, in terms there's demand for look you ethane at from

In tariffs export. of how what it affects all and affect affect these it we terms routes, it, doesn't hydrocarbons actually

highest look had. we've So the if fourth crude the for exports at oil, crude ever were us quarter you

at look you that January, December. If exceeds

at If exceeds you look January. that February,

get these all see you routes the alluded at of these will where -- to day, at past, March to barrels sometimes the just end If will But the the can look trend the as in to day, barrels this Tony a has shipowners. probably inefficient. you At That's the export, is going. move. of price end benefit

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

how X? on give up? you pretty or can mean, some Oak quickly Shin within year the a on be I day project, conversion that thoughts could crude pipeline full XXX,XXX updated a the With ramps

Yes.

by there's said crude volumes production top XXX,XXX earlier own Jim Alpine some from over on barrels High equity oil then the projects. as of well, additional our displaced As and and

Shin So we volumes healthy expect some even Oak. do on

Okay.

have So sorry, you ahead. would -- go

Brad seeing want I him processing is most own me dread telling processing from Permian. because The reliable Motal supply X the in I'm your plants more plants. And

Okay.

have full? then think get would the you Apache ship own of you as from supply is Oak, commitments I available on Seminole, some your which you So and to pretty displacement you it have have Shin

Right.

Okay. Follow-up question.

Randy, more please? on Just, identified you give last had construction color under of a the ones since call. some earnings projects and to Can incremental $X.X couple that billion alluded of you

projects have at were are Since then, facility. also and The Mont two long-dated. And really -- in announced that Yes. were included that two. isomerization deisobutanizer capacity the We're another adding some those stack. we're Belvieu

I two. and think looking XXXX we're on at those XXXX

Your Blaschke next with from comes MUFG question of the line Barrett Securities.

distribution versus the so a better to growth have process. want buybacks I I to back just understanding thought of swing the

and the guys But increases on support I think of now buybacks? over the lot being is seen You opportunistic that sort bleeding versus have higher noticed coverage distribution do of a self-funding time, how of to you program.

right it. in preference feedback that Yes, Barrett. clearly now has from we've a But the buyback been evaluate gotten over and come We'll investors for distribution growth.

to in, I the to get we're the to it, but by X capital been or important -- again, preference leverage going again, look us. distributions. back so I we'll say, or look, months, investors, to from we're continue that's at check after come whether clear over take a incremental mean, the mean, would keeping is last it's a keep And our financial And has buyback so I to X that flexibility, investors. by that, in then And going

gears. that if we're Okay. just materially Can saw you us -- of open, that? then would how any switching back kind necessarily. affected projects to month another give it not any long be shutdown, we And if government's The sure for indications of came but

anything? Kevin, Angie, you got

shape. some we recently We we're pretty the of for. Well, actually, permits we're in think got good waiting

down get And being So our if open now, the line government tick. so -- to that spot -- shuts continues permit let's even this submitted. and shortly permit time thereafter, even application

important It to couldn't. that application pretty couple were go was Yes. ready we ago weeks of -- with and for a

we they submitted and So minute the opened, this morning. docket it the on got

Okay.

is to it if news that good time in is a closes of able the open, So guys done you space even it things. short get again, kind these while lot of a with are

Yes.

long, so... is Yes. only That application pages XX,XXX

Dennis Merrill Bank Your Coleman with comes America of line next the Lynch. from question of

I guess one detailed more one. just

single -- this I on a customer said it think customer? Seminole, you the is

Yes.

XX-year And you contract, it's a said?

It's years. XX.XX

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

for you. question A

why also on beyond, growth the growth and a distribution aggressive this more a plan level? not in XXXX but coming distribution the free of With flow buyback improvement plans your and the authorization re-upping Is distribution -- potentially that growth XXXX a out distribution incremental it's if event? really there there the flexibility? growth in not come Or of it kind to an you uptick incremental will give the is is plan just capital but distribution predominantly buybacks allocation, through cash little in the versus thought

come I to returning we investors. in come -- going form but the it. get could over the of form ahead buyback as recently and on that leverage it's got -- just our to once many to have rely We front distribution need with want us that We've back increases going we'll bridge there. continue When that back One, Michael, provide growth so to want distributions, keep definition, be that we income, new what momentum get projects, all the growth. we're partners. come flow, continue is Again, in cash to to growth, to And buybacks, in back we lot we've not been on again, back to about. for our we market additional be, I didn't out more free provide go where There again, to are has commercial Jim limited as so eventually cross a It ourselves. could the we capital want by where And get talked come of and back of heard back. that. to too distribution in our far leverage front distribution it rewarding of far when the I digest we important

ends That is call our Randy. today. Okay, Tiffany. This

give replay from don't if mind, you, then, guys, for listeners it joining information. And Thank the our end. that's you you this us would today. So

participating today's time call the Thank XX:XX replay be is XXXX. X:XX today Eastern through in earnings for is to call. for XXXXXXX. X-XXX-XXX-XXXX. p.m. replay quarter replay Eastern XXXX The The on time call. concludes ID conference dial This fourth number today's for conference This conference for X, at number will March available you the beginning p.m.

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