Enterprise Products Partners (EPD) 3 Aug 222022 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Enterprise Products Partners Second Quarter 2022 Conference 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. now today, hand Investor Randy would to conference Relations. I speaker your Burkhalter, now like the to over And Vice President Please go ahead.

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

be Other speakers Fowler. attendance of Enterprise's and of for also in our senior this Executive general Our Co-Chief Officers today. Jim partner, will Teague are call today members Randy management team

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

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

a Thank the months. achieved natural we're the to quarter and octane records systems contributions in that exceed reported EBITDA driven record not taking environment, you, million release trouble $X details continue our DCF significantly providing Basin and acquired. assets and the records for quarter. was of this times $XXX six four short, record the margins full. X.X by generated from was quarter We for to gas billion billion more In sales it us a any of higher financial and our assets having second processing primarily Midland DCF, operating outlined higher coverage. keeping margins good enhancement retained We assets press excluding XX and $X.X the billion from first $X.X business, Randy. our Today expectations. recently Those of proceeds we for adjusted and We we

Permian Our capacity. running are plants processing at

the two Delaware, one have have which We When in and processing Midland, a the in one approved to this us more, those build over complete, day in we've take processing one plants the a XXX,XXX of a Permian, basins. each construction, processing producing we'll plants out barrels is company liquids, under will XX day. of in producing barrels XX XXX,XXX two plants as

Permian. as take recently partial done a approved barrels also is the our away Oak project this day. now pipeline We a looping. NGLs expands by We do through can or close that for we gain out communicated to those not Shin Seminole change it And relates powerful back These options of We NGL into have service, projects can XXX,XXX a the past. or in lot guidance capacity put can both. have do NGL loops the CapEx to of that we we

As in Haynesville, in the systems expanding last above year. service we announced Analyst Gillis the our we over Day, into Lateral also put we're and

LNG Our reaches but day corridors ties into lucrative Mississippi gas. unique. but corridor, the BCF river into two a is Haynesville and is and also supply hungry for area, the system only interstate It half into it which reaches it a industrial not

ethylene. both was have we did underway XX petrochemicals. negotiating that team export million U.S. markets. products Today, We XX% and the over of of trend and oil, started operations also and of crude Randa export but barrels expansions focused position building NGLs, represent ago rigs significant basins Duncan. day supply, leader that We've on That to in running and consistently a ethane refined just export named lady the we XX% key when the the for have not the we We major continues this X the with years always

the with Friday, last this the milestone for the – federal FES registry. an project important but addition, In FEIS our terminal, in spot reached

surprise many to energy is Street going pandemic really last like agriculture. when it's one I the years is having was is that I that the coming the the this have all took with the the We're surprise late past gone we've conflicts February, surprised. while, a we for the read grips pandemonium, impact Instead, the most of on to three no fact Wall other most war both Russia changed. to was granted Journal, magnitude invaded to think in and from to it that Ukraine in things

is We're up a We how insidious have people time of relearning learning, in what direct hold aspect in never strangle in high reportedly is. of than that have cost And quickly inflation clear Russia something inflation, now has Russia over it some and increasing as energy involved in experienced world and breaks. in inflation. to also conflict housing. is every of of of food Add is that It suddenly realized with us be responsible Energy Western and on of Most lives. live Values. our it policies XX% when shoot China just that more valuable to about is a how our prices that for young we and the cost independence are appeared Europe. ever. U.S. aligned strong

that has resource. the NGLs, an short only world fact oil, has cargos abundant left. is Fortunately, the crude LNG the energy our It are resources cycle U.S. the

alone squandered tremendous is hydrocarbons XX Bcf of have imports the is day restricting from upside, production Appalachia but Russia. that's development. climate a on what unfortunately intent potential, it political has than in Europe current over its more that We

that laws by massive and However, this of resource, consistently. and not is unattainable, consistently potential or best by applied economics regulations and are vague but amounts

what the unfriendly only ground and the in avoid this ever to gas to balance into need will of and the Randy and clean oil in to resource out it mansion energy to be. U.S. to and short gas energy from environmentally superior. comes cycle for our oil that energy here shortages to much but to needed being of go standards strike many debate because legislation cleaner are always who be needed most regulation risky have will addition in it it In demand form world either that We that's is materials and that restrictions as overt or decades. the Demonizing not Enterprise’s cleaner we own all. layers badly actually same It's from are or going the and on of between ensure dependence incentives Randy? fossil energy. not fossil produced for the gas and the movement. chaos been, is in keep otherwise to under energy high Europe their energy versus continued it’s has, our proposed or extremely agenda. so is reliability. the are safety transition say said designed massive will Oil and be only fuels, it's security high it everything place increasing take will additions prices. community and friends to for People and a and are development be appears by in recognition learn and the that absolutely none, call to going shale naive try the energy wanted, gas has more, on of second equipment but mistakes creep view oil needed environmental It And suppliers need gradually. green renewable investments our the make will unreliable fuels for

on $X.XX All unit Starting quarter or items, common billion unit right. holders attributable Thank quarter XXXX basis. a statement compares $X.X for the to income common Good net billion quarter per record you last for Jim. to or per $X.XX second of year. second diluted This morning. second a of unit $X.X income the with was fully

operations flows, capital was quarter second changes in flow generated the quarter, $X.X from flow cash XX% billion is compared which Turning to is to billion for cash working of for year. last cash second this adjusted a operations, $X.X increase before from the

and to paid record unit on declared than quarter per distributions distribution year. business a distribution as on unit distribution X.X% we common of we second the that the higher to July of quarter the second on Moving of be holders of last for This to of will week August with close buybacks, respect is the XXXX. of declared next XX. $X.XXX XX common This

common X.X quarter, at the also approximately During $XX a million. of units cost million repurchased we

$X months XX we distributions June the into buybacks. $XXX XX, over of to billion limited returned For of partners million and

of months, payout compared ratio Navitas of the billion XX a our acquisition, cash operations to was flow ratio $X.X last the the from our acquisition for And was payout was XX%. Midstream adjusted after cash excluding flow adjusted So payout XX%. ratio free

were $X.X million for for for capital six for million, were growth capital million quarter which organic $XXX the $X.X expenditures. and first includes $XXX $XX Total includes the in acquisition, and to investments capital projects Turning $XXX the capital. million capital which invested of months sustaining year investments. Navitas the over million of sustaining investments growth Capital billion billion, $XXX projects,

As system. we a in Jim XXX,XXX detailed processing a barrel day new Permian cubic announced natural earlier this three and of new feet expansion NGL morning, Basin, day plants, two a million XXX the gas our projects pipeline

projects, $XXX capital investments expect and With be now million. to sustaining we these XXXX be approximately growth to approximately expenditures capital $X.X billion

growth currently For capital be that $X we our spending expect XXXX, will billion.

the debt billion. of the end total at quarter principal $XX.X Our outstanding was

of maturity portfolio final debt the is for life approximately average the hybrids, our Assuming years. the date XX

XX% debt of debt June of weighted approximately fixed was is cost at average Our And X.X%. rate. our XX,

plus are June XX, the provided August ratio five by hand. unrestricted August at and includes fixed of the redeem Adjusted a These is million only first and XXXX. then highest partial leverage notes jump credit of and at the of $X.X $XXX of current originally or cash rates, a yields end of this debt, These XXXX our hand. will notes one reduced the August of $X.X the a XXXX. issued X.X billion Based availability the of million these LIBOR on quarter D we liquidity notice were for issues, redeemable was to floating with making months the On our $XXX of date for for call our notes consolidated in ended unrestricted and equity adjusting that floating of on floating $XXX And this notes our which premium. it August hybrid after a Our note under of X, years, become was cash debt issue X% on X.XXX% coupon X.X% hybrid million junior consolidated now facilities that have debt credit billion. beginning on August partnerships redemption our really XX XXXX. without cost XXXX, to times XX, EBITDA rate after subordinated spot treatment rate redeemable for intention the indicative that also

this of the entire to that or half X% paper million on of rates will increase common commercial issuance in million forecast in more, XX% the back remainder the lieu using notes, $XXX the another these XXX addition, floating cash the over now of we and fund the least rating receive credit up Given to half agencies opportunistically And Fed redeem the this redemption. of we year. to to equity elected redeeming to hand Considering at time. notes decided by notes the plan from the at of buy we EPD units of redeem

credits that challenge the with a Inflation more changer be or commercialize could especially common customers. a have a commercialize are customers and the combustion pay the It ton $XX the emitting it to the oil in direct overall, the post for up regard to the our when leases can for I and we of availability and metric carbon program we open drilling. sequestration XXQ only Further equity to in With of harder more feedback customers, proposed think system had game was projects come come was we Randy, attract Our gas and in our of in these positive per regard received expensive to questions. for no paying with XXQ carbon units of existing the Reduction to believe options. embedded the sequestration hybrids. changes efforts proposed federal equity a cost In cost Oxy, versus to from Act,

to Thank Okay. take Victor, questions our from we’re Randy. ready you, participants.

Sounds Our Instructions] will question good. of Jeremy Tonet from come [Operator first line JPMorgan.

is line open. Your

Hi, good morning.

Good morning.

bit – it advertise Just it to there if on wanted carbon as to to regards that capture and bill through last pick up the with higher lifting lifting comes there. XXQ maybe

opportunity Enterprise Texas, gaining end you timeline of happen could happen, the just curious, of developed? Louisiana Classic things [ph] type before the year, things Would trying do for Just this appears be over well could like look on of this scope what what the set could Louisiana think time? to primacy in given out by verge

EPA Hi with the bring I Louisiana, it’s in Jeremy, Texas. whether the with the don’t same I collaboration a customers received with this is Carrie think, in feedback gain we’ve the the think complementary Oxy’s And it positive announcement as in with working Weaver. them at to they think relationship fruition primacy. from Louisiana or been Oxy. have And if matters I our project project Texas can timeline and as discussing we very

ready ready. legislation we to will soon And timelines to encouraging our decisions deploy bring those this project as So those is as new they’re be be goal sooner. think very to and the

any to should like there? helpful on base billion print if but thoughts you pretty be the It That’s one $X it. like then of quick Got there. quest touch to easy just real just wondering seems wanted And this attain, updated that quarters EBITDA. for

Jeremy. to I attain don’t it’s think easy

through to halfway everything. the my about year. And here role worry around is just We’re

not at this [ph] not not I’m – So anybody we’re high-fiving – point. I’m

And comes you. of Brian question next from our the line from UBS. Thank Reynolds

Your line is open.

everyone. morning, good Hi,

Just the the some potential it the the for the Jeremy’s including of export scale then project, in assuming And regulatory to comments follow terms coming, cracker. the on CCUS, front projects, half certainty large projects, spot in a up back addition of in year. of EPD CCUS of opportunities over of lot on has

the get of how Inflation stands, projects management these Thanks. pass forward? pursuing it curious large about Reduction some of looking perhaps just of timing Assuming about the talk we projects it’s and as scale Act’s thinking priority could

building First we’re a at looking all, not cracker. of

out looking at not that release you’re it. put press a You

thing it’s Houston the Next Chronicle section. page front the of business on

date? the got we Bob. thousand another registry, but comment for go, are got another spot plus period period that. FEIS like have still we well, to We’ve something comment XX XX-day go. comment in in to another per We I’m put federal what got to comments period looking still or And And

from XX-day a It’s period comment Friday. last

public So XX. be it aware XX,XXX by be well should meeting August over will excess of The you in September last as Jim. on XX. comments, And

this, we’ll many So get you how have, knows through once through we that slip to then we’re those. getting got

lucky. end think at as I fits can if to – we’d away environment thing of the we we where by it So on get got be priority It I time the think and the this of year, get it get in it customer depends what the kind we we the base list.

maybe capital then And just color. the to Appreciate Great. to pivot location.

three, to XXXX five XXXX and looking exit below target. the You’re well

about color Given, of could if cetera? XXXX rate higher of also et and quarter back head the how into and distribution the we half the buyback, we small be capital this inflation, just curious you for return provide given thinking and XXXX, just as some should Thanks. preferences into incremental

the this these – and are Yes, I still of what the coming in part take – issue. reflected hybrid in note near equity other buy that’s within is the think not $XXX year and of that’s it thoughts the it’s million, Brian, and million we’re and between approach come doing above side by of too. up coupon we’re looking on it’s our $XXX debt really all it’s coupon, but mean, to highest calling really to now highest the I of these have back – the we end

balanced approach a reduction. buybacks debt So and between

our that retained and Navitas think been came represented commercial remainder cash and I CapEx, other we XXXX thing come in other the in growth almost is, in that us had was cash a on again, we into think had I Midstream us self-sufficient fund this could the cash amount we what in did we is have really and year and the substantial acquisition to gave the in we we and coming with thing, of but and come the that and just of of paper. bit a use quite flexibility enabled our hand funding

think we capture sheet So opportunities able in an and and cash to doing we flexibility again, we’re coming paid that in coming stress and balance balance sheet by I came and and for come the in off in acquisition. how didn’t retaining

think So see for us. you’ll I don’t change much

bump X.X% us to this see distribution also year. come last and compared did time the in You

above So I taking still and come think in again, see approach. the all us you

rest the the and Appreciate commentary of Great. enjoy Thanks. day. your

you. Thank

the question – from line Barclays. Theresa next Chen will Our from come from

open. Your is line

back to as Jim, to about permitting Chinook to incremental service? for the you the multiple of takeaway back to putting NGL today. some have Or Can out do have and wanted Good and Chinook comments the the versus And you wind for into morning. expansion understand Seminole FID looping I your earlier NGL place for still help takes the get Chinook, right puts of on go that? your through just you in need Permian economics expansion the do the us away? of of relative

Well, Justin, [indiscernible]. to you it take want

preserving those just lot five three next so with Yes. was have. Permian this the I’ll supported growth And Yes, that what of the a drove point, we think think our clearly options basin we the the production There’s I of is of optionality take – out what direction years. that expansions. expect decision the coming growth expansion we that Jim’s it. by the by really some was to supported of I do GMP in the that in we’re seeing in repurposing

made, value drove Seminole a So us that this decision. for later conversion that the preserving of to potential a decision make

Between Between that the Yes, XXXX, something now and this to a to – barrels me? of out I’m XXXX, day. you and grow liquids now million we we is can add estimate about X that Tony. Basin going Theresa. hear to Permian

that May in NGLs and XXX,XXX you a we they’ve because find only April. But barrels any reported day. is year-to-date, numbers you other these at it, have what grown can’t and think reported reporters grown already commercial If do have through EIA anything, look in

calls maybe what Those It’s about numbers, I’ll And systems. but on seeing gas XXX, our that. it to is tell you’ve have think we’re a I little even these are natural heard you more. on big before.

You’re gas, reason our in seeing and and all customers backing it that. it this which in the the in natural plants, announcement is in the you’re seeing on market for in fracs you’re seeing basis it this our morning

– said, it. numbers we what that’s behind getting how putting Justin So to some see

situation takeaway of And may that, Ford for nat for in a the about indicating growth. light residue incremental you. that basis, a gas Waha basis Ford Tony, we to maybe point Thank as dire follow-up the gas [ph] to your face

do that in work half us can first expect through XXXX, we incremental if the the situation you the to this? in ethane industry recovery face much out is And So of of do remind basin? you general, how how you realistic think

talk or on minus watched next through out whether $X.XX. $X It has ice minus it Let's summer first, if basis basis to that $X. or you've long or moved was the wasn't about the watch you brokers that ago

pressure the ethane is the I to is you community don't think producer being ethane from that in somebody, how it's… So rejected just Permian, the tells that incremental Relative much supplies. think seeing we

around somewhere probably XXX,XXX day, barrels depends a on month. to It’s the XXX,XXX

it you because wider that a BTU. once that basis absolutely. is extract Keep ethane, Yes, sure,

You you're can your your to do because oil out barrels. you protecting everything get can gas

But then NGL situation that for pipelines. creates a

balance. that so And how market that's will

Theresa answer question? did your that

Yeah, thank you.

you. Thank

is TPHC. from Go come Bean line question next Our from Colton open. your ahead of line

morning. Good

previous seeing was in solely more total spend capacity? million And plants? having or and processing for any price like attributable what to new round alternatively, pressures looks are the guess, between you if about XXXX. increased so, Shin is build Oak gathering are that or material I then required so relative the of by So to you $XXX to XXXX

of growth $X or about morning. $X.X the so as now these this then that earlier that's any just take far for we've billion grow seen we of what and that on announcements it billion as really projects of as now that XXXX. seeing, existing said was we part let some But call as and what first And of had projects. project cost to we're had creep I'll handle I'll Colton, far Graham reflective

cost project the year. the increases, increases, are on latter of of we some the terms half particularly seeing In

XX% earlier type material the cost of project. solid I We've in were think seen to the the year. XX% anywhere on from pretty depending in used we increases

starting We turning markets some in some around. are to steel see softening to particularly be seems

to have going pressure be XXXX. be Although some go labor cost still into and markets on we strong are as forward still upward

as as largest Graham, our And far of status project and budget PDH?

still on, As PDH, time, budget. on on track far as we're PDH X on

effectively costs the at project. of locked did time were All in we that our

don't really any X. on we see So escalation PDH

from up something Maybe Randy, accurate? project is billion, on to specifically that to that today, XXXX, to going just maybe close maybe the approved clarify closer after to $X XXXX XXXX,

our of said area. $X.X we move backed I projects were would Day that of coming development $X be to back you're CapEx now our at just seeing projects estimating, under was Investor going in then from, those being that in the to again, billion We in we expectation think billion was they and March, were growth and some that some And announced.

Understood QX to then over had then I levels. of to QX reported increase. closer a QX a pullback a all nearly Looks And frac $X.XX gallon. significant bit had pretty in think a and quarter like maybe shifting this you margins,

do see So the could just in moving QX indicative a of Or of back guess what you bit the looking a rebound there? characterize you're year? at of we more as half I forward,

you're that natural saying really you are to? Colton, gas what processing Is margins? referring And

unit Specifically guys so margins quarter QX frac for unit a in the just fractionation QX specifically or basis, spread for on $XXX had specifically. your you think think reported looking and I on there fractionation the now on I so million fractionation pretty a your processing at this And impressive fleet, margins side? pretty, not

that? Who is taking

take it? Zach want to

this Zach. is Yeah,

compressed. couple quarter, go is fracs and up on Power forward also things for looks at gone think a it costs like the think I have this also the basis more of happened. of blending have this remainder I last year, the

and I than were QX normal. think QX higher

level? most some the on you is pass-through the of retaining power And side that EPD or at of that Okay. on exposure

to much sort a we have just bit how through a little relative of exposure well. exposure then hedge pass that of to and as have It's it we

Appreciate it. Got that.

you. Thank

Securities. next Mulvehill will America Bank from of line question Our of Chase

Your line is open.

this think have I Hey me everybody. been good may morning,

in So I and inherited the guess a more acquired gas about exposure you lot obviously, when commodity NGL processing natural you Navitas. thinking Navitas marketing business,

So Waha if of really, natural one. bit have think the but at understand does kind help it you kind And may do not you really risk of don't hedged couple this lot mean, talk the then Basis, can guess Waha I sensitivities have whatever Basis somebody earlier maybe little of commodity a mentioned that? processing around is, have of the out gas or in I I point NGO around us about that, within is of marketing you a us a I you blow questions this may know so help business. understand risk next just if some year? kind also

reasons bought Navitas given is And the commodity exposure what we our Chase, was the the one bullish wanted question? this fairly of other we Jim sentiment. part frankly, that the of

only we have.. the do Basis at looking Waha think exposure I place

on any a that's hedged that million and exposure I'm XXX of as purpose that, and have probably good. we think I day of think I of don't we've aware

All Unrelated There's today a on talk and of about rates continue obviously call debt move the follow-up. retiring lot Okay. right. to higher. interest

the we point, kind next rise over rates leverage that you if there some is to lowering think ratio when your is chance that year X.X% or think about target two? of about So at any interest continue

a minus side. Chase think point this we're we're still or at quarter, the comfortable plus either debt-to-EBIDA I X.X – with times

X.XX. So to X.XX

the life that quarter, one again, XX and debt years. there of of I is was of XX% that was at the think the end keys average the fixed

debt really So to an our for preparing low. dozen a and increase exposure interest years. costs We've for really, are floating this been environment

everybody. turn Thanks I'll back over. Perfect. Right. Okay. it

for our Thank you. next question. One moment

of from line Our next comes question Bernstein. from Salisbury Ann will Jean

is open. line Your

maybe morning. expanded Can I comment have until been much to starts? this? to kind Corpus good the expect the those stay one. drivers of just going around to have channel is ship if at higher spot on of Year-to-date you you than this Houston very per And high or pipes Houston. Permian Hi, utilizations flowing

Hey Jean, this is Brent.

They been the but think function crude a pipeline one I everything a there, direction the demand to can function and capacity, pipeline us. head export there, change, water. local demand pointed to to higher that's head and minus load the capacity, is at to direction in a going rates. the minus there's can starting It's lot else think everything I larger that that's that's Corpus do it that the more it's of ships and They of else the going of to is local water. than

seen are I but They're change pipes some patterns more has oil flows win barrels Houston. the as from I once they're think taken [indiscernible] Corpus, as taken in you've ultimately toward will some crude think pointed from exports. flow that spot others, forward change started up goes for

all thanks. That's Great, me. for

our for Thank on question. Hold you. next

Our next question come Neal of will from line Truist. Dingmann from

line Your is open.

Good morning. This is [indiscernible] in for Neil Dingman.

to the your rejection simplistic, current, morning, too question just buy versus filing yield? yield roughly suggesting but notes that the given at back of X.XX% it be units X% not might maybe First why roughly this

of the it's a $XXX hybrids units the redeeming it redeeming and way $XXX of and just units. is, debt, Yeah, the in coming the million event, we're the a is back approach. it's really million a levering common and just million approach. mean, of event, $XXX we're in levering is not above about coming taking I buying balanced we're balanced And we're thinking redeeming still but we’re again, all

it Okay, great. Thank you. for Great. That's me.

moment Thank next you. for One question. our

from comes Wells question Michael of next Blum Fargo. Our from line

open. line Your is

finer around distribution. point everyone. Thank the the a wanted put just morning, you. discussion Good to on just I

of think is new years, sort at last, you you've a or So done the least I look quarter. maybe out clearly, Obviously, two if longer, the this at one of pattern. fourth increase in

new a to in that Is event? step change this want make pattern? to is better. sure this understand, one-time wanted this rate? a just I understand So Is Just growth a

in of takes look coming on investments. Michael, we mean, model and it a or was a XXXX, And you And XXXX growth to expenditures capital where really markets. of make I we want substantial the went began through funding where the I at reliance in were coming capital growth to pivot was model. financial XXXX shift and in capital – in period, quarter. the a rate with to a good finance we every the self-sufficient trying comes were old say capital we a be your Yes. more our really, in and in amount board distribution call XXXX in the markets to equity that pretty where to come and and the make

of through this distribution the differences in We paid being this were mark, that was but we so acquisition earlier and worked very year came think and off. – pandemic too, on that's accretive. pandemic growth performed has and we've – attractive talked And made I business then that we about This the the and think deliberate question an that I one more year in year, in well.

do mid-year of that in light on a but we go I and midyear this us was it going to forward, bump. to what don't quarter it So an thought a to standpoint, inflation boost. thought but do we ahead and was opportunity is this look at do and know it come distribution we a what we take going quarter, made going midyear from provided to necessarily in if in change an a every increase sense the do appropriate

Also weakness across any I'm probing factors? that. signs business of in kind higher seeing prices. like you Jim, to great. question. weakness to basically and referenced for question comments, due signs but makes just question, higher economic inflation, of that's My ended macro your of open a kind we're kind seeing your see if of is, demand Okay, of know I these the… sense. you commodity Thanks had interest any rates, That one, just are opening a in segments

Tony, on I grace they and station. has data seeing and can seen you his that last and read convenience say got with good who Hang service that a Tony? say, stores customer his he number was at is, of some read wasn't more much the than much, not he but on night some over

Yes.

and when Valero in data, not but yoyo amount, calls the at to listen a but PBF, you too. that it's was that they're the were for – definitive, call when look the but you If barrels, demand X%, for like down million diesel, their it call small about little somebody a wholesale listen we you is to just from scope, gasoline great, bit to

in So isn't kind the it? reflected spread, frac

of the kind in frac is It spread. reflected

is You taken those of now, are run see overproduced economic elephant's some markets, some and cuts. plants the weakness in ethylene

the is going wrong, PDH in if for but demand down for but that ethane, tell ethylene, phenomenal. if we're our you tell me see terminal's You the I'm to export don't export to ethane I been will China, going flip Enterprise and side we Brent,

going see in And record numbers, you seeing forward, looked did We're what we'll record across this ethane Yes. number we a think if especially our July. month. export I

look you If it's crude strong. about talked across dock, incredibly our LPG exports. We

last it's Michael. couple picked On the months, up export the docks, really

Also, to is The money, making integrate Jim. polyethylene. Tony merchant that still the spoke this ethane player. into is ethylene overproducing hurts

Michael, propane and situation, the world for is is world. short, natural more butane. to gas good the good MMBtus in way the way an a for ethane, a because And of MMBtus them get

facts. the just it's So

it. Appreciate that. all for Thanks Great.

One you. moment Thank our next for question.

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

line Your open. is

good morning. the I questions had quarter. results on the with good second Hi, two

was up It's think weaker QX. $XX is little in QX. versus number. seasonally QX about of usually marketing, NGL it million I on a pretty marketing a NGL First, high

the in driving particular in anything So marketing there? strength

those marketing One and about of LNG, fixed by lot a of, sure – of I exports are I'm marketing, held things the is about contracts not of is does all the ethane. think what

Chris, and I too, think those not are by sure is I'm held that marketing? ethylene. about

PetChem. in it's No,

the going that were at strong. the quarter If first was things quarter quarter, that's you the second between so why look side, especially on structural second some the market NGL and of on

on Okay. And question processing. similar then

So at Enterprise in QX. down there, look you'd frac for usually obviously QX headline were number very which a spreads, strong

more if overwhelming sure there or a there's and Navitas effect it just processing up. is is seeing and not much lag just strength kind of POP there that it's So you're bringing so

another in or had Yes. I a want of probably is think million, exposure. we say it from from the of part it gas again, the February probably Keith, XX based have quarter. X,XXX day of floor, barrels does a second to NGLs, Navitas day based a a from XX XX,XXX it's condensate natural only an commodity I million in barrels exposure fee of feet ballpark, quarter, day got but and Navitas floor incremental picked a then we fee we X,XXX full XX got a or cubic first so contribution but a up And

really uplift. that So provided some

Thank it. you. Got

time have please. we question, Victor, for one more

right. All

question, one Our moment. last

question line Our comes the from last of [indiscernible].

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line Our next the Michael Sachs. of from from come Goldman Lapides question

open. is line Your

one. you the NGL think When are Hey a the dominant longer of for congrats player asset my big and portfolio a really And you EPD, taking crude on guys, exports. I about in term thank question, quarter. good

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liquids. focused I think our role crude, and would gas on petrochemicals be natural

miss I – think anything, we on if the we boat LNG.

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there And election the I and good importers we had capital apart. then, became already they that they just And fell in really like go back advantage imports. come be was were imports. the LNG And their LNG really really one And were have to sunk they an imports. business a sunk equipment. the resource sort import think as model to going we if mover first turn not when believer LNG books, U.S. because they to felt we far exporters off it base. made. would And it was U.S. exporters And history that had and the of a we was to first and was that in LNG in already the convert as had

So to come it conversions. was for very and easy do them in

was at really disadvantage involved compared the a being incumbent. those degree, in to a to are LNG not us put imports, it – So

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the call. end to ready we're Victor, Okay.

that, off us. replay And joining everybody Victor, thank so our if and company sign participants And will give for to like the with information. you we'd would

conference call. Thank Awesome. Thank participating. for you. today's you This concludes

great day. Have You disconnect. may now a