Enterprise Products Partners (EPD) 29 Jul 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Second Quarter Enterprise Products Partner Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. Instructions]. [Operator like conference now speaker, to hand Burkhalter. Randy to would over the your I ahead. go Please

and morning call earnings. second conference the to quarter Good to discuss welcome Enterprise Products Partners

General be members Other our today. will senior also Officers Our assist Randy are of Co-Chief team attendance today Teague and will of speakers Enterprise’s in Partner, management on Jim Fowler. call Executive and the

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

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

Thank thought we be. talking an be first you of earnings, the at to and it to quarter supposed it a it I that were was while call, was going earnings out about COVID call, last call, Randy. be I what turned the said when beginning to is

you our with I are story. theme, to guess COVID that sticking tell we So today, going

quarter $X.X last second the we year. EBITDA quarter billion to For XXXX, same compared reported the $X of of for billion

of this had we performance billion are year-to-date half first the coverage and is we $X.X the press retained at that Our release is, BCF best proud was and saw we ever I something quite else have Enterprise. times think have you safety X.X

expect, quarter what our all and diversification the the quickly challenging quality the second have as but assets our the result a control was gone highlighted the the customers, employees price of career. we events, would oil of of quarter volumes of probably are improving. most pandemic you system, With our and what of all results down for our and cost our during were crash, of my as our through, responsiveness the Given they

were a obligations commodity customer profits and of processing protected marketing natural facts to and the service and base are, are we weakness strong and which have in gas business. storage Our natural by enabled our firm our largely in and edge the activities, offset the gathering businesses. petrochemical we The us

of equation. upgrade at For tools us, are commodities. both side the a have sell demand store, disposal. and our We buy integrated, transports, multiple on energy so of and the lot and supply we tightly we Because

some. the market grade, wells say store wide the do says can. diesel, store we we store we When market the crude and store LPG, convert me give On grade. say market wide but When

had pipelines knocked Neptune. and Louisiana we been is In usually question Promix, was indigenous more dry supply results Demand Katrina addition, came our matter East when performing, quickly. same months before history for out if and of move non-recurring, the and blew our We people with than the to type through down those we as and running. it powder has question literally no and our of money South are was the crisis sheet Arco Minise always West get systems plant have balance much a and how our the got of strong back we had. every made plants

cases a for in their in were but never Ike Got of as We those question particularly before in product interrupted and some that So hurricane now, went the all performance stopped, the be and production in outcome. that petrochemical supplies but could to XXXX, the contract during service and they over customers Harvey opportunities Belvieu. hurricane non-recurring. today’s in We and months, XXXX, got Mont like hit segment our what refined present we question our right producers had labeled customer. the demand which Belvieu get outlined release We may virtually had of was through recurring hard it decrease Mont taking even single non-recurring, environment. regardless earnings going are never our when we in of Events products. due results are was for

companies remain economies. However, the we to reopen might most efforts by encouraged of their

being the especially is products, the largest of U.S. the the to world, refined America. one products consumers Latin exporter a addition refined In also of in substantial

know, rates octane and propylene in during enhancements. due April, which near which and propylene decrease availability all a to international demand. has and businesses in utilization both negatively you refining the quarter the feedstock bottomed to octane recover XX% and enhancement our in industry Currently refining improvements facilitated has second As impacted lower

production, side, the natural and On some insignificant most part ins in for system were short not in processing relatively impacted our production by while and shut lived those on our recovering. and they are gas shut were low were prices volumes the gathering

progress continue opportunities, and further could reduce which capital discuss dollars by our capital. to substantial reducing billion in JV made have We a deferring and we

have the third In quarter, addition, segment online and expect tank over and in months. XXth and ethylene few the quarter, said echo next folks sustaining build the his Bellevue our complete some a complete In fractionator XXXX by important CapEx projects Mont $XXX cartage out. reduced million the Graham DIB we online. a gas expected at have we that fourth and pipeline [indiscernible] And strategic our pipeline of add coming to rich

fairly our an segments, Rather because petrochemical big midstream our as we strides the of in NGL starved described of is olefin the and being make which value probably we long-term players with United the We in a to underestimate a are what the is than It industry space. doing. importance midstream easy we only are strategic feedstock continue that franchise of chain, extension have always In petrochemical really has happened our to the This has U.S. what demand being handful to than the world’s the petrochemical over propylene. no first polymer XX% LPG growth. XX-years has the into for to grade where demand in States, especially the moved importer being in ethylene world’s last built the incremental from different of hub quickly primary world’s moved short, an supplier. Enterprise open for products, is access supply world’s meet over growing

office petrochemical cargo supplies, June, where transparency, we a and dock markets. customers. for loaded Morgan’s a allows we Now freight from essential kind significant We ethylene world’s out transact of the the in provides our of Then headquarters NGLs our our keep successfully separate vessel their consumers, for thought ethylene. including minute quarter simultaneous of this as to larger much we working how and last Co-loading running, well personnel are for business first the export loading vessels access into propylene back combination capacity, with keeping the the and size true at on grade and ethylene started to reliable U.S. benefits propylene while efficient few essentially of staffed these traders. XX to the domestic the people facility. we but also will hubs for what use developed more on headquarters our ethylene have of ethane doing the These of about markets NGLs staffed. ship spend price, at first simultaneous export into from a are transforming been with cargoes over hubs staff of as loading weeks, primary bringing the fully and we efficient channel petrochemical These In to talk the facility, provide home, and market, create at and global it I have the safe. loaded our on vessels pounds. million gradually and olefins but compartments producers, I vessel, marketplace on point, polymer the they’re propane record olefins our Port same also July, Both and of would an cargoes BLGC

think at to the but way home based we - helping adjusted here, our business, is a to we face those distancing, times employees out be taking as want social center that shot flexibility, and told to achieving that. people went of say adjustments results. between that, people like long and to not thanks in have would their employees guess, minimal. in thing our addition control their now to case able would quarter give have and our the plans sacrifices. I and a performance their we understand finally, responsibility, to I be such count want the we reflects our appreciate this work-from-home, require also the out also our It them how no think I that like to are here too soft their both that thank I ask don’t a to pipelines were In best just might I or commercial operations commercial collaboration our adjustment, in been an personal got just to office. has coverings our ask they it. be is all people I to to for Randy. there I themselves, much office, And folks we and sincerely and and know And run

our $XX liability was for Corporation associated on expense in the from morning. per to $X of of attributable of compares second I of XXXX. deferred in for of in the or a the included the liquidity an fully Net diluted quarter [indiscernible] This Good to XXXX. XXXX tanking Net to $X.XX Jim. for per partners old quarter. unit of agreement income statement March, limited OTA unit back start quarter million in second the second option with increase the with income related a settlement Thanks, the XXXX $X.XX unit tax we quarter $X.XX acquired will billion to for the or second XXXX related income acquisition per basis. Holdings

second operations $XXX to expect in feet working We the our the cash cash flow $XXX fund contango operating from of Changes as to million during or quarter of activities, of quarter. it billion We during to was usage third $X.X for the currently between flow the XXXX. compared on of quarter for for Cash two second think $X this flows. XX% marketing to XXXX, accounted operations quarter capital, the capital used of the in XXXX. million or accounts from working Moving billion periods. decrease approximately and

Excluding was XX% flow quarter lower last the of for second XX% changes for the which cash cash XX-months operations the distributable in ended $XXX was of change Free flow by The which accounts, quarter from cash the year. for a than quarter, flow venture of payout $X.X was of second from higher million in June working capital about which the capital. of last between the operations, from as cash again use a buybacks Free of flow, two reduced periods, comparable XX-months We our mirrors percent plus define working we activities, trailing year. cash cash cash decrease partners this billion ending flow approximately used the flow operations. XXXX, contributions investing in XXXX less distributions with of from sum cash in June, joint than as was was our as define ratio X.X%. and

Our our XX% to due XXXX, cash second for of operations percentage from is payout quarter the ratio which purposes. for flow use working was capital of used an inflated

XXXX the We to July For the August distribution the same X.X% paid quarter and represents Xth $X.XXX is XX-months, a of quarters. on increase, XX%. be was with with This per declared two the trailing will respect prior quarter of our flat unit it to XXth. when it distribution and compared second

first we our of Board growth uncertainty in stated quarter backdrop, distribution our XXXX. call, given evaluate quarter-by-quarter the will macroeconomic our the to continue As

purchased purchase units EPP Additionally, a plan combined EPPs the markets X.X open quarter, activity reinvestment purchase of typical during in million institutional and rivals the second our plan employee distribution which the investors. unit

to expenditures. capital on Moving

second into the We placed projects and billion another $X.X quarter of have of $XXX long-term under construction have contracts. assets approximately recently million underwritten service and in

this between year capital million billion We during expenditures. capital and investments Our million $X.X growth $XX quarter, still $X anticipate second capital and the spending sustaining capital projects traditionally million were for expenditures. $XXX sustaining in billion $XXX which for for include

attributable guidance anticipate we investments for approximately from XXXX, an billion capital currently provided and billion of expansion of end indefinite XXXX, aggregate largest the we the is growth were be the of first Ship some projects largely at our Houston Channel changes at quarter. the and reduction and $X.X $XXX $X respectively. XXXX XXXX were deferral This of For several which facility. The to to million

with to joint sanctioned industry due regarding potential pace participants discussions the We continue have these ventures to projects, COVID-XX. engage or but slowed of

approvals. government crude approvals offshore subject capital spot proposed to terminal to Our forecast that these XXXX. is we do our receive Currently, expenditure expect oil excludes in not

debt at $XX outstanding was XX, Moving approximately on billion principal total XXXX. June to our capitalization,

average our for debt hybrids, XX-years. first call almost portfolio life the date was Assuming our the of

average XX-years. the Assuming maturity the hybrids, date was almost final for life the

Our Adjusted further times effective June the after billion trailing average EBITDA reduced was X.X partial our cost and of XX, debt XXXX ended credit securities XX-months was the by adjusting hybrid equity ratio is also consolidated for for the cash. debt and for $X unrestricted X.X%. debt leverage

was existing XX credit availability Our at $X.X billion our June cash approximately billion consolidated approximately hand. of unrestricted liquidity facility including on and under X.X

and that which for our we XXXX, sustainability is XXXX press in before we disclosures up Q&A, on mention Finally, social also announced morning open are a governance want this environmental, website. available it separate report, currently release I to lightest our that reflects

believe banks, equity for customers, and and their sustainability providers which the in members these XXX We efforts report page report. with beneficial. process board our drove this disclosures our review and updated described community comprehensive and are annual reflected thank this scores. in participation the in our initiated also that for debt will find initiatives, will have independent We our the believe stakeholders outline We writing sustainability investors, survey be leaders,

open With up that questions. for it we think Randy, can I

listeners. Sidney, are to Okay, our take ready we from questions

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

is Your open. line

in question provide details, Just recovery you lines. across, I that business the you I you could being guys best extending XXXX. guess, guess more Tony the I you about, transpiring wondering wanted an into and just maybe see to had was and maybe how off bit and different slower your start how could with if a impact talked patient answer

You want side. the to production the side talk about demand or Jeremy.

both. If take you have both, will we

Yes.

million that of crude market. the a in chaos, back, ever one million if X.X think and had use and I’ve we of example you obviously the to look off it and as will steepest price come just kind how I I’m half, an came shut visual, of statistics. kind barrels but probably of So, X.X in person, is about we at because crash the numbers a and not real has production seen of a

amount XXX,XXX you lag. have amount recovered And is there given it. changed said, ground will that a We with we of So, have picked and up. of a such deny shells that think barrels but fair to of the can’t maybe has decline substantial amount that momentum be

wide So, that is the system. our grade reality. When we coming into look at

not we down strong and I For let will But will doesn’t it into example, get really get where at today, that before, we month address out around completions at were that a and those be it that. numbers XXXX, we think XXX. back momentum Brent we up. are we will February, in we when X,XXX see to pick be think Look, that from we because as and were XXXX we as we is about

the of best the today. wells for completing is forecast probably And our best in is that Okay. what

be what there’ll we going before. are smaller you do is that said what want about out and Brent business regard But, in to get XXXX, volumes And in our you you to saying? talk so, some what on when in

receipts for our look of at July, they you inventories seen Yes. records But, if the wide is time of The look just look just out Enterprise. our a we all it both And it how what there is have one for if wide are is you and the going you part contracted. grade and are have Permian thing for June, at highs. is at of wide on grade receipts if we grade resiliency those part at

fractionation to terms volumes we bounced access have how seeing of are those of out we Permian, contracted that nicely. to, and we have the what back terms come in of have quite the So,

- to at. On it XX% same. side, expected. look the is on XX%, the And is gasoline not to what depending that again, demand really I mean, is is you off be Diesel numbers

are Latin and America So, about up. going its shows back large is think to if waking country what the Latin exporting America we data we is, forward,

Brazil. from down think I largely about away being shut Mexico Moving and and

inventories, So, put we refineries work. we and will hoping that are back off is our a work we as that positive to

the is Any helpful. there. far on think Thanks. with That we as LPGs side, that the petchem demand trends be in petchem? very And should as

Yes, durables. pandemic of the April saw at is the pretty Jeremy. in We actually demands The demand. good beginning single timeframe pretty the This was March, D’Anna. Chris on so lower use saw We resilient.

course pretty are still to in good. And single durables. improvement use of starting the for We see a is gradual demand

ethylene our is sold out demand also the export sets The the fact ethylene. that up dock in for back

last if helpful. very one, And is That could. I one Thanks.

of you that that I seen of contango, do earnings to Just third profits. and boosted type kind delayed far What gotten nonrecurring have that, what the so really in with see with you have regards quarter guess this of opportunities quarter. recurring realization here, have you the you opportunities arbitrage those

Just trying to think bit more. a through that

we’d What I we we for and probably staying at last Jeremy. of range. million Thanks the upper think is are said be be will year, call we at $X that it $X for end million, back thought we the

Thank helpful. much. very you Very

Thank next comes Jean question Salisbury you. our from with And Ann Bernstein.

Your open. line is

Good on in the margin bear Enterprise morning. is NGL main business. The fundamental expected case compression

really Anything pipelines looks that war and everything areas the for basically, address price provide exports of that and you NGL current helpful. and to frac these can will Now be overbuilt medium-term.

Yes. Jean Ann.

about I headed? on is, you question re-contract Your margin about midstream compression people see where we you assets. think as are and talking that are as then Is

more than I that. think it little is a bit

an people usually think talk for accident. about I

pipelines, of like and I seems is exports. capacity. much think it is really too It chain the now frac there whole NGL

increase, come you see that when we are decline. people similar to is contracts you would a could see so concerned up - which that what phenomenon And see -

chain to take a kind a you is sense, opening leverage, value stress. with. be. have saying it under what what some while be heck gives think may about company I Is what a leverage? are to you us emphasize one chain of has look I won’t part my to because of longer lot are at fair total a And more that make so petrochemicals for in of The the to value Brent? work you comments that think having that I of

had to Yes. you another And make. point

collect hot the situation, where but are a leverage we to So, they rest are need value in is that we button got we going we at yes, what the their of our chain. value and we maybe, giving chain want what

there on repeat both Ann Jean we offset I is on I some what an you volumes, is and for think pipelines industry will what myself. are seeing standpoint fractionation. I and hear offset ethane, from and an saying are for

I of done we a think job heck contracting. have a

how who as we matters that commodities think this say about I other with in contract you you will and well. contract environment. And

at we the look if if balance what ultimately this look supplies of starts of in export we good position our look a very following Belvieu you in Then you down, in very facility, built it at look contracts terms years, going very, Mont place. we have and the there have that of year have. point at If couple spot. at LPG in we a the are is is pricing the good very, And you and you

the fundamentally I downstream pricing know, at we those have that assets benefit. believe points that You

are offsets environment. there in So some this

Thanks.

one your better broadly. will and pipeline different you So then of effectively you give outcome more on the a chain kind bundle think

it think always I has.

that me. is Thanks Great. all for

Tristan line from comes the you. our Richardson next with And Thank SunTrust. of question

Your open. line is

due JV you six that good a about give noticed us about been your guys. for elongated reducing that the JVs update or call prepared there. can Hey, pandemic. that still last Could has on general capital? play the noted You just to morning potential Are you you process the comments in talk the opportunities

think you said three. environment, everybody’s we in. I it have but call, with the are not this of with pulling discussions we were in one said guess three with I in what others, on we their Yes, not just is of the those pretty probably is that I pretty say that is those Randy like kind It engaged horns of engaged today last And are to six. could

we our more we larger than one. highly highly discussing are of engaged some projects. So with JVs say with some we I are wouldn’t engaged with are one. But But

of and Midland-to-ECHO ventures then Whether presume That about follow-up. is an maybe does we components or like and four of largest quick XX joint a just outlook? should it helpful think more type the budget? number XXXX the or billion is this how be, $X Sub-frame, this PDH-X

no of is Yes Tristan the crude is two-thirds to that Midland-to-ECHO if Randy. are X, And this pipeline and natural assuming you really PDH pipeline. The joint oil $X.X X is gas three $X.X billion that Gilas projects, would, billion and ventures.

Great. Thank you guys very much.

with question our comes Bean you. next Thank Tudor Pickering. from And Colton

Your line open. is

the and So of parody. March in near press the release the in to are you noted process back NGL lines levels XX%

that On you And detail the to gas? your more to inlet on increased a can provide mix relative primarily the bit then volume across footprint? outperformance is as that side, extraction? NGLs, Is

Who take that? want to

And I area. This see growth say think from volume very where X%, and then are that seeing from robust sure come the in think that just some of system. you about I the but, come metric obviously in volumes question. across understood July I But is you’ll Permian terms would I is the probably not and Colton whole I’m our just in maybe ethane X% Brent, is increased

And you footprints four as you for of look at when guys, would that was basin a look mainly basis? first the that focus kind the point what on like of recovery by primary the

mean, there We seeing in there. of people involved out has bounce the aggressive we and benefits in back Ford been that contracting Eagle There bulk volumes, of putting deploy been we the with. on obviously And I how flat. to have seeing are a you company, to out are in the we recoveries just not about terms is the then I would looking Permian are ethane up the capital seeing pick or that in just lot. But that say fairly there rigs Rockies, is whole some certain in are talking area.

change in right? the Permian the to centric, compared But

sir. Yes,

what strip the just budget, down find might you might the now projects, X Can PDH the that what if capital in to like run the updates were then And rate billion. to $X look you on XXXX be? major or terms, if to simpler out you remove that Understood. spend

you I knocking less. door That Yes. be the probably would are $XXX mean, of million. on

Got it. it. Alright. That appreciate I helpful. is

our with of comes And of Ujjwal the you. from question Pradhan Bank line next Thank America.

line is Your open.

Thank morning, Thanks for you. here. Good everyone. questions my taking

Christ the Firstly, follow JV on on level capital you potential on parameters maybe are project. your your discuss, negotiation quick be a JV the of what preferred up question high growth Could there and would who partners?

they question? than are got run to Does They those bring have Typically bring to of off answer throughput Typically did people got ventures kind or that more money. bring your tech. they with. we the you

I That are you within the Can plan to And sort terms what guess of interest. on helpful. negotiating that the how project, of in or parameters does. sell the of sort is comment of you you that?

repeat you I’m that sorry. question? Could

some the get to you Sorry. Maybe on comes want simply that in? you it you when put, the ones, in have culturing bigger partners to ones the are which maybe them would the terms rank discuss, what negotiations? which of would involved of you you backlog, how Could projects

is that have going of would say. our that is problem them I a with feed we less think - system some are but all we of in about to what them maybe the some church storage in probably strategic the involved Bellevue. I house, it, things getting what, I wouldn’t involved having our the that in is think want you Well, we don’t which tell is that system Mont

or Got as share follow-up share as recent your corporate that. benefits as it. the elections this impacts the some LNG overall maybe how elections and entrance if able you perspective well year. and Thanks the proposals. And movements on MLP as be of on you EPD, thoughts you and there, taxes, for could to to Would are potential space on watching well infrastructure

are out because is guess Frankly, proposals - at the the how know rhetoric, in the point don’t mode. of season political you public get put of Okay. can being is focused much and how that those is everyone This with and campaign in Randy, again, all I time, know domain. can you don’t it this I some really in

executing the and up deficits country taxes, and honest, looking as [C-corp] and be versus income in we individuals like, the been the going, too this on structure. at as that an the perhaps analysis, has both spend for Fund. are and rates don’t use proposed, the the running in (Ph) with think tax going MLP any given is where year, we to Highway we is little just far environment bit a MLP go with in Frankly, the the environment. I time And continuous and policy of as current uncertainty pretty U.S. It go corporations as volatility are what our up. been really and I Trust have substantially back far analogy to coming focused looks

one because and willing was individuals gasoline Trust businesses. no taxes that a be The impact fund deficits tax and diesel was on in or XXXX. they running administration motor Democrat go come to and was and XXXX Republican and in its Since impact and construction been and want did road they time and XXXX, has on gasoline motor been the to on diesel on know, not the on raise Fund it last has didn’t raised the tax fund maintenance. Congress, in created You it the gasoline and up to want Trust diesel Fund road

of policies that hear this the in of of some contemplated increase the that campaign in would substantially we for being cost and some are the things both And companies. energy these on individuals

beat large some in how of and the if hard price wouldn’t to executed. really the these gasoline, even powers is it can So, that increase on come see proposals be

that. for Thanks it. Got

our of Thank from Shneur [UBS]. question And next the Gershuni you. comes line

open. Your line is

QX your everyone. in remarks, good Maybe about dislocations Hi how to natural in pop to but stronger have up as is everyone of marketing and base coming of keep Jim same to talked hear scenario the the is with a the the you right of than out sort the business, the back morning, starts I play there at effectively without the recede thoughts the couple in businesses going start prepared or where can if trends, specific well. to business be off, I QX shut-ins for us Good natural a of opportunities quarters, spread this guess the you us reverse Is stronger year? give next than marketing sort what about can your opportunities? trends the higher like And wondering I forth. was start which time, is, guidance? sort running itself Is for subsiding the just hedge by of that flat a the over move trend so scenario? on of opportunities balance Just trend getting to mean base of you is recovering hedge of sort how higher. business the talking and the now,

a you is It locations this get and Shneur. Yes. spreads you get good question dense. when have you the Personally,

would and we then there those our So lot will when contango we have mind, been. more spreads prices throughput If are has a pipelines see crude today. than probably impaired in my a fall maintenance in it way

is a is I’m terms in it. than kind little recovery. of that So see of probably more Tony way I bullish

home. going to recover it next think turn are personally year I that demand is things a And I hydrocarbons back think think Tony thinks probably going you get some signal to sooner going I is on recover. than, to price

I see. So, what that is

Okay. And here. a question follow-up maybe

I And have to been base do the proceeds, Obviously, in price of spreads on generated today capture your put the you you results your for with stock of strong business right very with to accelerate What For unit EPDs marketing lower that see about to CapEx example, these the of opportunity out. buyback sticking market or increase to dislocation. take opportunity have from see price, stock down to dislocations Just you you similar are use your within excess take do hydrocarbons dislocations within an cash think now? the theme price? dislocations you advantage potentially advantage the budget your itself. target

let have going that us is our individually a Randy program. of there I’m to but accelerated that number buyback answer

falls go and this category. really that we and distribution think mention are that quarter-by-quarter, on our as year I spending consider in investors as we capital buybacks really cash I Shneur in growth in just same to coming that

So by in quarter. take again, will look a we quarter and it come at

had X% have allocated go come bypasses. approximately operations We flow cash from and of towards in to

that. done have We

the if for the see or on that whether and more we form buybacks, the to to We love so come year be investors, how remainder opportunities look to will in. would And going of that. capital of for to more come come would distributions to in return are in we

Okay.

something conclude X% can target above yield that not very XXX that would at opportunistic? And fair so go probably you It hard a line. the and is look it that is you is to is being a

come You and said, know quarter. approximately will a was take X% by look we Shenur, we but yes in is it it what at quarter

for see on still economy as to bit described. there how would we Tony just like more we the far this we little get what as in of Some as get a business some There like reopens, out is the uncertainty visibility to and environment. coming

I great. day. to That I it and questions. just great appreciate keep two to safe Have sounds want Alright. time,

you. Thank

Thank you.

with Justin Raymond Next comes James. question from Jenkins

open. is line Your

to I like Hi on would guess morning, XXXX I for start growth Randy. everyone. spending

timing this bit you it is outlook but if a some less think for XXXX, further I of of on at XXXX outcomes? of dependent out the terms JV spend for that range covered point more or in of the

billion see give door. the the just leads timing we It XXXX, the for cash largely range to that on how is go billion is out three we X.X

expect that door the also mentioned tailwind I then they in cash that? in of as Okay. And XQ quick a that of magnitude you thereafter? mind for capital then in was That how back a usage. think Did makes terms sense. working in have And you

capital working you think see $XXX million good deployed call Probably it increase another $XXX over - make million probably quarter, just, work third in typically to the work between could to of it you off bit typical and the a a then from I business. the capital third quarter. And of working Yes. - got now would off have end

a capital the of good working have deployed You quarter. fourth bit over

ultimately in see the it end of see quarter from you think by third next you year. I largely that of the So quarter, worked would peak first the probably off

Got Randy. it. Thanks

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

open. now is line Your

Hi, good morning.

type QX, in we on in even up Just question, should means could increasing QX in is the quarters? last still marketing be some what future if assume greater your working the opportunities in following we capital contango the than that saw of future

No.

just over of some carry is put think a I it on. to what we

second that think million sort of creep Jim really on, the of as $XXX dig range, to have But, upper see half the working can that alluded with first those the spread the of what we opportunities, capital some of I far have with you just in of as that positions. that positions half you we we think split be year. still end may XX/XX year, total put

is last interested. And the Okay. helpful. view with the going is from strong dust settling then thought to one the merits of are is, were that pretty thoughts that? here. weren’t companies I is striking there back just acquisitions company assets the thing XX-year somewhat and your or was could I interest now so on X% debt What I you acquiring issue under updated messaging quarter, any That you about guess, thinking how at the synergies? that guys right on rates mean, you

we same would quarter. the I in answer get first say,

anything that are of that is heard I way have as much teasers look where three seen across. we We across We I months, or think come certainly four not one, not too. we the Keith as compelling. opportunities and frankly last have seen in come that in. at coming Frankly, far the not teasers think

open a good think likely to again, are come there. would opportunities. go But be we type we in be are But bolt-on and and fit, that from that So, be opportunity. right needs on business with probably at front. I continuing seen I in what a But and more just develop now have mean, it on would really really anything haven’t to to we execute look focused the come

Interesting. Thank you.

Thank you.

Simmons comes Hammond from Our with Pearce Energy. question line next of

line Your open. is

my for and morning, thanks questions. taking Good

same the subject. on questions two Just

are is first outlook that your seems better fair statement? think U.S. Do what is the your grow overall, export than Do The you second opportunities one to capacity? a crude exports. And you it views more on said NGL NGL then that U.S. question you see export business? is, NGL

LPG This other the add. and LPG think the is in, chime anything of as cases needs world, many improve have parts as creates to I in in you Tony Jim. lifestyles But that and Brent world you improvement. Do

speaks Data itself Jim. for

are You exactly right.

happened demand? were hype at the look by what of the pandemic, away you You installed blown Brent

Absolutely numbers. type right to

be exports. oil wouldn’t crude off I quick to write know too You

quite We a have seen lot.

up thought exports. week one as record had at I we in picked have We crude a point. country a

Eagle have spot are A goods a to There think bigger couple there ago interest Latin I Ford for a the a bid in there LPG on late a, weeks going of West first in to highs, people barrel lighter, as are for I we type gasoline seeing and think as demand back a Texas. a we the those bigger loader on is just Asia is side, started mostly different But the the we America. thing some and Korea Enterprise. demand good is

soon, expand. needs when execute that a low sure be project out we expanded right it have capital we we can certainly a can time know, You have project standpoint, not the is a I’m to is project a to on. we capacity anytime but from expand that there that

your for responses. you Thank

This is Randy.

for question. have give then And would We information. if more time you one the replay

Certainly.

Wells line question Blum Fargo. Michael of the last comes with Our from

Your line is open.

everyone. Thanks. Good morning

on are the Are still it what LPG for of first so countries ones if there of your, in Can so, strength volumes any beginning export topic, think talk LPG XXXX. of you And - holding second think what the me, out to the lockdown half here quick seems about two off you of like do is export Just as of you drop give up stay I the just your come of, it? seeing just you you seeing? seeing kind some are volumes? these driving or are half

think I we still see Michael, Hi strength.

think I we while what ago. about a is what is talked driving

of I seeing in over think are Asia. lot a we PDH demand

toward pricing kind we end I I probably have contracted of in think we humbly, position, just and of but to for in terms in supply mean, our say of out terms I years. terms drop just of this contracted we terms point year of see I of the off. aggressive think in that Michael, the next how couple be this have any we the will how

a in kind levels. position of to We good of are type maintain these

sticky. around total sticky export million numbers. I of seeing are are LPGs. you that XX a think And say Those barrels I month would

have interesting spot. successful back it Michael we pretty What with a filling get we cancellation, whenever is been is do in the

So there. the appetite is

sense. to of you kind Do lot referenced to second sort for Or you overtime? are of ratio that I a is Randy, a think payout target of that want referring makes you That are great. Okay, have the target about you for a thinking you that long-term bit. probably now like settle where My number out way?

a developed Michael, that we have long-term setting target. on I our don’t along far thoughts

long-term top the I would amongst how caught MLP compare and and on kind thing see? the to and the opportunities Page, balance are a are are within I do we market and in market think you come what S&P said in sectors two, across we think of the an So, not any is And against we being of sectors. at really when in doing well targets. do Some by the and that I and have XXX the whole think come three growth you we the compared ratio be market. high it coming I nature we of your various have is to mean, MLP pretty pay-off we so of top the look

it. appreciate I everyone. Thanks Great.

want Okay, give Sidney. information? to you the Do replay

Certainly.

to I access access XXX-XXX-XXXX, or the to call the dial You with XXXX-XXX-XXXX XXXXXXX code would Randy turn the may Burkhalter information. in further remarks. to now like for replay at any back

good thank would for Thank joining our day. now. to concludes and a good-bye like and everyone today you remarks That I and have us Okay.

Ladies Okay. your participation. today’s for call. and Thank gentlemen, you concludes conference this

great You a now day. disconnect. Everyone may have