Enterprise Products Partners (EPD) 1 May 192019 Q1 Earnings call transcript

Good morning and thank you for standing by. Welcome to the Enterprise First Quarter Conference Call. I would now like to turn the call over to Randy Burkhalter. Please go ahead, sir.

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

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

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

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

Thank you, Randy.

of get regrets our kept really me guys, see was promising my ribs to I Shin our pain me all for but on unbearable pipeline express execution the into completing you the includes have drive demonstrated back message Seminole people, me also our Consistency of however execution Successful and out the “what there months note that and and with in The titled to ability quarter quality conversion pipelines glad outlook for one returns invested into to initial We the four Oak first cash”. would was three capital. with the to I let investors Enterprise me its In ahead by Analyst would away. cash”. much schedule. our on our the operations been missing said of got NGL it First, broken rather have of the know you crude and Day. culture, I of for hopefully wanted service our is “show an our deliver energy quarter, answer in did business. facets “show And appreciation the critical business. stocks”. first part a research is of report the the

returned growth consecutive counting, our for while XX have maintaining and investors consistently cash”. We distribution “show call me of healthy years to capital coverage. We the that

many We income. also seriously long-term take this very our rely that investors on of

only four to unit, equity. lead our growth financial margin. segments our grow well balanced continue of returning but approach balanced maintaining growth the gross positioned using capital distributions quarter XXXX. We while us on us in conservatively provided operating relying the with value during Our not leverage business capitalize first three approach coverage will future this the our has weather records, to of without on That markets. had cycles. operational higher and and cycles, to reporting of strong capital, financial flexibility those equity of a organic set We has We DCF business the six five exceptional to on and the opportunities an heels believe per records that’s

reinvest times XX% $X.X quarter Excluding growth first opportunities, nonrecurring excluding past that the distribution assets, the year, the marketing of retained gross was us more year. Ship first which record This at of ITC is margins Channel our due the earnings, and the the than driven a oil group’s west weaker healthy that was operations to offset processing effect billion, by on noncash increased each to volume compared crude began Houston a record spread We items quarter in to by $XXX in adjusted DCF, X.X giving to million margin, closure the the last DCF contribution coverage quarter approximately quarter. fire the growth. for performance ability during in mark-to-market available gas operating of first of and terminal. from and EBITDA capture and existing our gas to assets natural some the temporary east

projects the supply phase it’s on Permian service side, capital placed of focus Oak February the the pipeline initial day. the We on to a continues. Shin NGL XXX,XXX at at end our of As running currently in and our barrels

depending one greater barrels that its As location the day. we said, future. the type pipelines and I as Note able this a refer it service. for that always to of we Midland-to-ECHO completed from demand this NGLs flowing Permian to NGL that NGL Seminole doubt oil and convert X I of flexibility back to have on flexibility We balances anyone and pipeline to than conversion offer markets. XXX,XXX crude to of crude to future supply pipeline producers and else given interconnects, be service the will to in our will is

terminal IBDH On the and the year the service export of We a LPG partially Louisiana fourth ethylene demand completed our and end side, the respectively. of quarter, capacity XX,XXX Tebone complete third restart our of plant fractionation in South day the Shoup barrels at recently Texas in expect at and the we also to quarter. dock our the of facilities initiate expansion in

further new in half We the be Belvieu. capacity fractionators expect currently two at we’re constructing fractionation supply Mont growth, of Anticipating to NGL second again tied XXXX.

be X. And project this commercialized. PDH successfully we feel We’re will confident that developing also

we Permian. Orla On Orla we’ll a next X these the of of to in the Mentone natural and XXX,XXX complete DCF in processing gas quarter liquids capacity facilities When Orla third X.X and natural gas and X gas, this processing placed the natural full. day of barrels last X quarter year. first a at day production the out have train of and year running liquids are completed, were of are a about expect service side, all

lead with two could in underwriting processing to at more Mentone. We’re discussions our trains customers that

of another pipeline quarter. have of that expect would also be Midland. permits construct . this third and Front our Midland-to-ECHO Range successful, we the complete seen in If Many We you to pipelines out NGL X pipeline crude filed Express the of expansions Texas to

quite pipelines. We’re naming creative in these

users and to flow joins and third by the integrated into supportive. service delivery from have distribution and Houston demand lot producers storage, who to our provide quality uninterrupted way receiving able of and integrated for docks. interest on together pipeline X system flexibility Enterprise’s -- should This are value Marine We Midland-to-ECHO assurance wellhead we market of the system. successfully or system back are NGL end this is convert to a serious would quality terminals, we both from choices If ability our refineries underwrite to to safeguarding customers pipeline,

Channel subject our to we how performed fog and the Ship ITC the want during with the Enterprise Ship traffic impaired. share company the to disruptions While the being saw a that some our days the was in I that the provides. assurance, customers This Houston is like And market. of authorities you any is value the large Channel. limited were during on used This upstream fact, of in while on of the flow event. by None facilities Houston integrated traffic fire value temporarily also

of of remaining load X.X storage. we and up million a significant capabilities, in in our the to We portion vessel our all barrels expect With day barrels XXX and million made backlog April loading of have vessels of a access early to refining May.

we that team Permian Analyst of the where the we light see subject growth covered how During much from the our and fundamentals demand. oil, see our Day,

explaining did think find oil I and they petrochemicals a gasoline that home and light good a job will demand.

supply. you know one we’ll However, absorb things happy Q&A. the deeper think to But you supply. ask do a and have just you after subjects. a and fundamental these I I’m all I second. The I the and belief, me creates future reason, a don’t lot group world my to dive, worry want a about have lot as personal these let of LPG we you price it questions, of the to be these questions And this price sure Tony his about on that, perspective. analysis received creates demand give and have LPG if a demand lot doing during of about for

and growth propane typical exports India. for old are the demand record historically currently U.S., LPG about not These low WTI in the during that butane XX%. propane Tony ask of Despite days. normal relationships can is worth were XX% You from at

that’s crude, price of In propane those day, me. sold to the back At to to I create crude. reference always think in demand. XX% -- XX% will want Randy. a at call I XX% over the to turn

here performance forward to me Let our at the without I quarter team efforts is we of the an proud how could see None have we of on quality the say about are for we again looking this and are the employees. opportunities of work go Enterprise. in of we much XXXX. people possible and how hour our extraordinary this

tribute Our creativity year see the had with company. turn year to ethic, it their within strong that, you and And their work work we Randy. setting after a I’ll this results last the to our quarter over record team is

represents unit adjusted an first per of XXXX. per mark-to-market $XX you, good $X.X $X.XX morning, was for Thank diluted the EPU unit This in income for versus of the the mark-to-market billion with unit income per the in after This quarter quarter, in to limited off the fully partners Starting adjusting for or comparable gains. XX% everyone. on attributable the And million statement, included amounts increase non-cash $X.XX effects quarter net XXXX Jim. basis. first a or earnings

growth the sort which terms, XX flow was first ended the we traditional seasonality, efficient to this we If noise would converting working capital flow we March our XX, million non-recurring We adjusted for months operations cash less and of from this at if As at December operations March placed XXXX $X.X flow EBITDA for the projects look and financial months of excluding ended quarter, to since thing very last purposes. XX NGL Cash XX, the into interest the quarter approximately Jim the months by This of of flow ratio, through the XX% working ratio to of cash trailing quarter capital made service approximately for quarter both pipeline the payout to level. crude of XX%. in including $X.X which use report million first of record of flow unitholder due of purposes increased operations trailing a $X.X XXXX of the EBITDA quarter DCF the the from compared including distributions of into billion of XXXX. Oak year XX% billion million down XXXX, months initial did for cash for $XXX and is XXXX. quarter. Of the six the Free lower paid from conversion the distributable benefits first And $X.X capital In first we working compared into April our conversion billion $XXX for service. was DCF Shin the trailing items is was follow XX was And illustrates lower that note, the of is partners as capacity major rates capital first which in a leverage, take simple billion flow, snooze the and the structure limited first again, way all a cash percentage on a to converting for cash reduced year. for working mentioned, XXXX. was trailing EBITDA payout changes the quarter for Seminole And than capital. sell-side recent the records this out having $XX the and of for some in $X adjusted of cash to billion. XX% XX,

under $X service projects capital between and have major that billion the We into construction expect approximately come we end to of now XXXX. of

were of in range capital in billion Our CapEx. includes of $X.X to $XXX be investment $X.X the million growth first capital currently sustaining XXXX We for $X.X billion expect CapEx. which $XX and investments another to quarter sustaining billion for million the

in to that receive we For contributions million are jointly $XXX XXXX, approximately owned. from still projects partners expect of business cash

hybrids, debt call March XX.X XX, at our our principal portfolio total outstanding Assuming date debt sheet, average our billion. was first balance of life the $XX.X for our to was [Ph] years. XXXX, the Moving

effective it which Assuming months, XX, credit average average life final times, after end, securities. date was the ratio $X.X hybrids, debt treatment at cash. partial X.X%. the consolidated our the included of borrowing X.X our unrestricted liquidity, of trailing hybrid leverage the billion of was $X.X portfolio EBITDA equity for available adjusting billion was facilities debt debt for the consolidated approximately and for capacity On was under quarter XX maturity was and XX XXXX, and the March the cost Adjusted the years

equity what after program on purchase Moving in of was November off quarter which it XXXX with of the the issuances employee net less in $XX out in may to first reinvestment discount respect the again program during program than would The DRIP quarter, XXXX. to level down reinvestment proceeds prior purchases, the and have turning it approximately million and and the come paid the half the further anticipate at unit in we from participation Enterprise received day. the of the distribution been was next distribution

As to transition of of open reinvestment we self-funding, evaluating the we to continue new equity nail issuances. are to instead market distributions purchases applying

with unit more issued quarter purchase up Randy, During for to open units repurchased ready through unit, we first XXXX, February that we’re X.X dividend plan XXXX. approximately per plan And offset $XX.X million million the reinvestment the think $XX.XX employee or and units which X.X questions. it million for in the I than the

Randy. Thank Okay. you,

open have as Before Q&A, information respect Investor like I’d we on in slides caption website. first Presentations of under section posted up that call to earnings with to the the listed the supplemental our our some to mention we website quarter

questions to are ready audience. we So take from now Christie, the

SunTrust. do question You from Instructions] Tristan a Richardson of [Operator have

morning, Hey. guys. Good

Good morning.

have unnoticed. not skills say doesn’t the to a so go modeling look beats five great. in making you’re only is thing We’d road our The

use your some at to shift allowed quick Fast-forwarding some a spreads start project once time? gradual execution just party over all pulling -- question is shift third does forward today, Midland-to-ECHO, projects, or a presumably on to beneficial specifically your of and capacity Just exposure. that that to that for the

Yes.

Brent is this Tristan, Secrest. So,

you look quarter, X, say first to J., If contractually, want Midland-to-ECHO at for at at -- I the we’re XXX? we’re

XXX. Brent, Yes. correct, That’s

up. we’ll Then, ramp

going starting barrels volume is on, XXX contracts quarter -- peak to on. And X go the additional was that pipeline at April that of want Midland-to-ECHO over at case day. in X second committed XXX,XXX come to to was So, say shipper come contracts I the we and a

party then And commercial stay exposure gas the Thanks. year? that more spread you the on throughout see just is of that natural some or similar third do for question Helpful. you space side, that gives activity

morning. It’s Motal. Hi. Brad Good

to little bit. of down I’ve it like its for had I rest nicely. to the slow continued think frankly, it stay was it’s pace to going amount and there with and impressed opportunities I in we’ve up of it’s commercial the felt year been beyond. has the Permian. And frankly, going start kept pretty the a And

Ann And question your next of comes from Jean Salisbury Bernstein.

should The LPG would or when export it’s with if you on? arb the arb fixed has fee you comes sold really material widened to recently, your that. if mostly export that exposure help expansion share Can have

you’ve to Yes. Kleiderer. that from give seen and arb expansion This widening the wider certainly that a Justin on spot access going us perspective, is Yes, capitalizing to is of arb.

our maintained offer supply on we long-term our to business. However, focus term the strategy on competitive rates

capitalize at on competitive rates. as that we strategy think long-term think ensuring I long-term from So the to not we’re deviate that we of long-term, going supply

the now And see of do you Shin between ramping quarter? the then, end and third capacity Oak how

This is be the currently, is, on XXX,XXX quarter. day the mentioned at end Shin Call at its capacity, and barrels Hanley. a Jim the by a initial another between of pumps barrels Tug it third XXX,XXX year. full we’ll bringing and now day of end Oak

Capital from comes question next your Schultz RBC Markets. T.J. of And

noted this and you’re as that you covered to into if on plans, purchases. it in anything purchase to strategy maybe just read quarter, Just the going open unit and far buybacks change on the the market buybacks DRIP as

the this how as on color time you more on buybacks? any opportunistic view Just

looking be buyback our don’t our much with T.J., has I that the frankly, I we’re ago, -- three analyst to program. think meeting is opportunistic weeks still perspective think since there changed

a we’re about. at projects of good we Day in frankly feeling development, at Analyst As highlighted and looking we’re number pretty

so there. need capital needs may And we

I So and said, I very financial keeping now. think right now like flexibility we’re just, deliberate being our

change opportunistic So is really no approach. more really in

on capacity coming Eagle Corpus can then more you through that pipes Ford in the are that just JV online. And expect that’s Corpus across you any Okay. to around you any as dock? Would color more And complete. the crude in provide dock load if storage the have

over currently want working That to -- our is the dock day, dock in operational partner it we’re bring to with is barrels say now there I is a the shy just air J? capacity and that of with permit, operation. XXX,XXX

At XXX,XXX.

barrels XXX,XXX At a day.

at as So we’re we times think but misalignment on and between -- pipelines docks pipelines it’s come think I docks. about we opportunities there on that clear there this, online, do market some is think record be help and to different will come potential

opportunities for looking that. like we’re certainly, So

Credit your comes of Suisse. Spiro And Dounis question next from

Permian. the First just on question is

on Just Permian result impact as curious you’re if basis. the the a Waha seeing at of near-term volumes any NGL

most just meaningful impact of shut-ins on acreage, gassier the resulted curious sort and processing think the any liquids I economics? if that’s were on in of but also

It’s Brad again. Motal

shut-in on out volumes not We gas have seen any from processing gas in Permian. impact our the our relative equity plants to

And I you’re made Day frac increasingly without I to export think offering capability. transportation that’s same front? in you that finding dynamic seeing differentiated see just comment if of that customers -- harder that believe charge at to then, or given NGL and Analyst then see you And the the you also prices well? you’re resulted it either refined obviously curious crude products ability able just in to on premium as are or that sort And offer maybe integrating

this is Brent. Hey,

I to to leveraged services. I those shy we type think benefit offer all integration we’re of And services that that is saying think a ability of the the Enterprise. about to those offer

I to do to it comes think of want think crude quarter-by-quarter. be success In all that way are barrel from the frankly And of way an all us us coming and oil, seeing case advantage. the typically customers game, having us volumes in wants the I control that with larger executing do to game. want the that type with have most quality the you’re export on in we dock when customers who our gives field the probably they the to think a through it I barrel, to that that with be maintaining what are it that producer think I do the

I to doesn’t have it? your contract associated Brent, only an on have deal with dock fair think X, on -- it that one Midland-to-ECHO Is say, you

That’s right.

is deal? that think us one dock contract I negotiations for in with a

correct. That’s

service point, is So, that’s evidence that to us. bundled to valuable the quite your

next your James. from And of question Jenkins Raymond comes Justin

thinking the few that seemed on guess, XQ. business in thoughts the of outlook headwinds like just unfold on? near was I operations about and propylene in the one how market that market in particular maybe term for Maybe your XQ here

jump refiner going that, I’m the headwinds grade expect would spreads, grade. Chris think on something but that not polymer first was you last had it we year That’s to XX-plus D’Anna I long let quarter because term. to

Chris? expected. think our the would range of we I were more have spreads what in

Yes. right, Jim. That’s absolutely

spreads we’ve Our first and last of a historically to returned quarter normal. were year wide more the very just

is Now our pricing here other regions. in the lower much than U.S.

opportunity So quite bit of to volumes. a that’s the opened export also up

propylene our we’re exporting dock. of So volumes record across

the And on bump and I fold? acceleration some an XXXX. of to that of projects that a here projects maybe that Is CapEx or maybe combination for new follow-up guess, the is existing some

normally I’d our capital of And is was looking are in it. best less. returns approximately projects. and million get The projects that those Company XX% that then smaller where million $XX The is at frankly $XXX that’s from we on are increase say almost about and

with Christine comes Barclays. from Cho question And your next

clear prepared expect at more remarks, because lower going at export of function about you looks Belvieu explore guys away, and market. of that your see sure I’m been. pressure talked where winter needs expansion price is than on? of we’re crude we’re a and much on How Mont with a like more domestically Do to the propane of being historically it’s percentage it you demand the propane pressure until that to In the comes butane it propane going price as capacity your for

lot it’s see on think there pressure supply. of winter is the more is little a because you and right it. at could And mean that I them. you nailed a of both I of crude over XX% you’re

those first I then are you just historically the historically like doing versus a looking follow-up on on what contracts what your export LPG as if you’ve And of round Okay. tenure what -- your for guess contracting, what are assigned export? rates you expansion, -- and

is This Brent.

of for in type you’re terms seeing in the step think sense, experience in U.S. think I the of the producers contract. in this I

open had wave and they on market, who So, it was sources up U.S. end of to kind of the was it potentially these first supply. users traders, were alternative the trying so

your got go. I to the question, it’s propane, of think case back in find prior to now, to go somewhere HDX to

going it’s so propane. turned export to And get quality into

that to -- the was And So, Obviously, we’ve I too the get lost feel that not we we’re confident our share. length. and for been rates time probably market that we around. the higher got got asked probably going fairly on terms we of numbers last a Frankly, mistake. public we

So you’re less time bit going to see rates than that are around. first the quite got we a

longer type I a in will we’ll of of think term. see customer us, terms see You different for but term,

let talking Brent he’s going XX% say, market XX%. to And our says to me from share, lost XX% about when

volume, that competition. to compete You our and People other not with the all think the to of only we’re mistake are invite thing going -- game I the saying hard town. make having prices more meet don’t in pricing. to is But is have going being continue to he can’t the

up. In the allow for start much is to matter projects expand, we have brownfield project. it’s greenfield And to to than us a fact, economical more

and us hedge to And you that volume are going on capacity like And continue remind think should X. you can then, hedges, when to we to on roll-off? Midland-to-ECHO on and you the that hedges X have any the basin your uncontracted you have Midland-to-ECHO guys

hedges year. those in small into second Daniel off portion gains end of fourth goes then mostly There’s million roll-off about and the on come and primarily toward quarter XXXX of on the that we there a have Boss. of this is Midland-to-Echo, $XX left quarter This that that The hedges XXXX. is will

long-term pretty, on capacity under that’s open. and that’s the wide not we’re pretty that, contracted agreements beyond So

hedge And think that to to you guys out? continue are that going we should

I and to to think allow you’ll potentially with about how do who people in use it we our Brad terms about us space is and talked have that space. hear our are methodology we use it plan talk Strait of that the long-term to contracts and is space. And Zach opportunity willing with

to So market hedge deals. long-term like that time right having we could to then number now to we and feel long But get term and like a convert that If we’re we’ll try done difficult step is at the in it. getting that if we deals. the focus is

thing That’s have on capacity natural we the Gulf the Coast. gas to from the same with Waha

We’re now, taking into right leverage right X, and X we but advantage it to of Brent? plan it Mentone Mentone

Wolfe your from of next Research. Stanley question And comes Keith

clarifications. Seminole of in most marketing? Just being to ramping before say other the there of quarter, some is the there fair strong first crude increase in the contracts in quick crude strength kicked areas April up so marketing it just were is or year-over-year On in,

of XXX,XXX I you think to was X, at space. a look that unhedged day a just Midland-to-ECHO that shy if say I barrels want averaged we on

at So that the drove pipelines. the some was other space time. on unhedged what is value we have the There market of

we fact the on will end commodities. highest but and is dock that’s crude day, And other the sit out what Permian of this opportunity the the the you’ll at opportunity will obviously all hard go company is the going or transport an see or And matter The was the there the Seminole. expect on but increased opportunities. different to the of any In say can mean to have at I there go on crude probably In me Basin. this rate case there to will we going talk terms rate of storage, the have about quarter-over-quarter, of be quarter, is be basis. in you for down all volumes maybe down, at it’s opportunities the opportunity across we be of

instead of frac make reading on did fourth XX to XXXX just XXXX? accelerated get I’m the And right this I quarter sure of want now, early XX, frac to

you’re questions? Zach, too to answer nervous

getting just It’s started.

nice a It’s answer. short

your next Pickering Colton Bean question Tudor And of comes from Holt.

follow to crude year, you Thanks. Cushing-to-Houston up has there expanded degree so, all when some Seaway or is And just QX spot of was And by incremental the thought to third basis if spread? that the that there, a last capacity -- at oil guess discussion he associated I party? with on impacted all was briefly

last Seaway fully that has then out The for. came was space. expansion Enterprise And space year when the contracted Marketing

look down pipeline, at moving be volumes, shared crude with arb, can that obviously partner. but is the Seaway case the as that’s base you fact If Enterprise market the standpoint marketing of achieves in from it sense. an But Seaway there rates, our oil makes

And sometimes those more. volumes they’re are less and sometimes

Got if backfill is with there counterparties? it. that other the to circle Shin does the any on I that XXXX? week’s potential view over last to just so, High, And to update change on And guess over your Alpine given Oak, the ramp of the course

This is No, Tug. doesn’t. Yes. it

which down Oak right example, day will get the XXX,XXX service Just sometime is a around at now, for mainline and complete in to we flowing Shin have yet lateral the June. volumes to in be barrels those

believe of gas some the rich not dry don’t And what I furthermore, that’s see impacting gas, curtailments are reductions we’re So us. then we that seeing.

Permian, valuable the Mentone of Shin mentioned don’t another The be other plants two the most -- I Shin through Oak reliable the or think we’ve fractionators plant. comes we’re the Oak our on And processing possibility thing most supply own is out think and our to to would day, barrels that’s And of Tug. XX,XXX our processing in be a all going to the plants, in which end of more Oak. mean I Shin don’t that’s I

not every the touches just Permian, which it’s is connected connected Oak, just about a to entire just to there And system Shin reminder is. our basin

question next from UBS. our of is Shneur And Gershuni

wanted really that say to you increased today’s earnings. just with off, guys the disclose appreciate disclosures First

the of questions and here. couple a DRIP from a of questions buyback on the earlier. Just Kind follow-up

projects. on your you worth mean to some healthy Day you’re Just a same that the $X kind thoughts I flow If opportunistic at to what of because DRIP point cash, hoping at the talked of buybacks, excess Analyst cash can a about producing I large about talked that $XX on just kind lot about, to there off said, than at something wanting And results, completely and were you’re thinking this are now? you billion billion FID evaluating be showed that backlog. more turning you’re that Is your the projects of of fund correctly, at very right you point. the distributable that us certainly as you you your time recall responses in Jim,

could So -- is pace about that we buybacks? a of there some something see actually more more be or we thinking elevated should

Shneur. Yes,

On that purchases. the units to come Rather program fees some just participants continue is broker maintain instead just continuing units, reinvest turn and DRIP, in you than together, could and again, that program. DRIP going the of cash to some units by in the open to come all come the just you in have flexibility that in. issued the source But frankly of without from being and off our we market by doing sourced newly like

company purchase that keeps then it I them. longer a even discount options that to So option, continue those in investment term comes also the without and a want to think, to but through still low for a provides one, some on cost flexibility think participants the DRIP I basis, continues still

opportunistic being weeks ago. DRIP, really said, as three far much not As Shneur, on from the changed I like

buyback. other billion continuing just projects and The in guys projects think come you. as well still and of development. chase lot not a the on give $X worth looking and to to billion additional now I opportunistic see perspective flexibility be maintain to Really can right under I $XX are we

fees some and talking proposed say, that’s about manageable as should have a and and you, competitive Just evaluating of the a capacity is want obviously, sort maybe is, there. to I doesn’t of the sure Do take expanding you’re this for peers the keep that our potential others mean on so of thoughts for word price opportunity forth. And now an your sort dynamic to or time strong wondering right and opportunity something there to export actually capabilities say it are sit not that your the competitors you kind of I theirs kind of follow-up market. the up competitive there capacity Is you period are export capacity all end let’s export that but on a landscape, I’m getting ensure you about built? if for lower obviously just given word, LPG question, the

I think made it term on translates and not around. did mistake long make to the going competitive And to that very said going -- Brent, we’re Justin, put we’ve last as be we’re to go deals.

on. at Justin? right, Is looking looking fees, at that greenfield doubt I $X.XX we’re not that build can fees We’re

That’s right.

appreciate I right. the Thank question, the much, guys. very All that perfect. color. you guess Really answers

is this Christie, Randy.

We before have time for one cut we off. Q&A more the

Okay?

Fargo. your Michael sir. Wells question from And Blum of Yes, final comes

related questions on I Midland-to-ECHO X. have two

guess a pretty the the So is that I within overbuilt year is Permian first terms question view takeaway think will consensus of crude be I in capacity.

pipe for demand you’re of to going another So that is in bad the a I that just think out wanted assumption pipeline of context you what have crude you understand to Permian? of or a are incremental the seeing that, costs. question pipe pretty labor second pretty crude the they about and competitor much then part substantially increased and the recently of talked their costs rising that steel And is,

thought that? you of seeing wanted kind guys in so of terms And if see what any I you’re of to

and sponge there’s Michael. let But wants latter, it. let pipeline, Jim. day their going going last to we’ll give Graham export have is pipe of keep is we’re going them see they fact barrels. X.X to And and most be to is the Hello, producer barrels what’s go big going what’s first I their large -- to the agree, differentiate Houston. Houston going want what’s to give ability build producers like and your we’re a coming Houston the when when differentiate, to high, pipe. Corpus, through We to you we the barrels to market, the out at to million million a part. to going want we’re as refining quality of to the answer take going and I’ll to we’re then market the the a to to Cushing or a big But you going This Permian, there’s a look but they to it you they that give quality going to you relates part, of I’ll they’re go make take come to them hard all the Enterprise, of sponge. storage, sure major that Brent -- lot them XXX of

So, we producers that’s major think. pipelines; not Houston. to think when there we is I what lot of the enough look at, oh God! There’s And a say,

Jim. the another that, to decent us are producers of us to who I’ll asking coming is have And to we matter pipeline. number add Fact of a build

you at and system you upstream when downstream you together, our Houston And project. we obviously of you a then have our like system so everything a look to ask good do take and have looks look we Midland at what really in in they that of have what to And put it. if it

all out look that want apply but capacity doesn’t and with what to Tony pipeline if you the capacity, Now, I curve, you But does is would has it so happen. overbuilt. to you take production agree point, there, to the want Jim’s on

apply I factor. think not Cushing pipelines to then apply go a going capacity so pipelines if that that’s dedications, happen. you optimistic. sure probably don’t have I capacity very And Corpus, that equals Corpus, go the And to to XXX% To factor, to I’m the that barrels acreage they think XXX% a

built Jim was converted timeframe back concerned expire converting capacity. XXXX. that have. be And during to our an overbuilt have an So, that contracts we his any at optimization our line an back an overbuilt. expiring crude line, about won’t line to our when opportunity, it. we look comments NGL time. I like and and in all pipeline the out of Permian essentially to it comes is at look until under alluded looks XX-year at find contracts, we it to what’s you that if Then kind point time, contracts this crude If about we don’t that oil that’s more would probably did, that’s to NGL ultimately, contracts But

costs? Graham, what the about

steel Nothing period for the do for the gone slight to all As have actually prices steel lock costs we we’ve as far cost X. time increases we’re able and but been from I seeing Midland-to-ECHO costs, pipe, substantial, think in to did work is stayed Brent the that make relatively but team. of a just during project due tariffs, impact his of and that flat can time down, the we pipe in

Thank you. Great.

before Okay. would give information Christie, if please you call? the Thank our would, we you. the listeners close you replay

for call in number for beginning XXX-XXX-XXXX. the Xth, at Eastern the replay today XXXX. XX:XX XXXXXXX. is Time Again, X The The available XXXX-XXX-XXXX through number Yes, This dial conference. is for ID the ID sir. p.m. for Eastern May conference for Time be replay participating all or XXX-XXX-XXXX the you p.m. thank And will XXXXXXX. o’clock replay today’s conference replay to is or on the

you, for And us bye have Thank you. a day. good now. Thank joining Christie. thank today. And Good everyone you

And, thank you again for attending.

You now disconnect. may