Enterprise Products Partners (EPD) 1 Feb 232022 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q4 2022 Enterprise Products Partners L.P. Earnings Conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session [Operator Instructions]. today's being that advised be conference recorded. is Please

to President of is now Relations, Vice pleasure my It Investor introduce Randy Burkhalter.

Good Conference fourth Thank Enterprise Andrew. morning, welcome and you, to Products Partners ‘XX Call quarter discuss to earnings. everyone, the

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

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

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

with call turn Jim to the over I'll Teague. And that,

tired see in to eights, of like was I with nine. our Advisors the I'd our Thank with I'd EBITDA eight, with Analyst take that year, that meeting start the questions. ended front management, future. Meeting Followill I'd of Meaning adjusted onto all you, My like was senior Becca to a at our like see we with including Capital I to tired what answer last was a to US see it Miranda, an At asked Randy. nine. me, starting the time

of it the Tug idea nine. Project kicking I Doug let's the we X. it as to was visiting time, goal a guidance, the said, a as that was Some office, folks took wasn't, it around creating wide returned at I Once think call company possible. of with Hanley, didn't which

a introduced of on that only whom poster appointed campaign was focus others internal before. our an X.X, Boss lead made with stating company posters EBITDA, Rick throughout shortcuts. employee X,XXX. the up exceeded the that Tug senior one communications immediately go directors joined around the Rainey, receive were Starship Daniel adjusted year the if Tug to Project It made never if designed would Tug to So initiative there and Hanley, and webcast, $X they the can X,XXX. Chairman XX [indiscernible] was receive by themed effort, maintain the safety where no and implemented Enterprises billion including gone we was be of Starship a to to Project wide X The via And sent Enterprise, X Longonje, was prize initiative. clear would every Enterprise we Yvette would company. throughout locations we

reinforced year around safety our X.XX recordable to And the where were very that for miles of values safety in report incident proud year ‘XX we best year. they core XX Also, with another trucking division injuries zero with our lost ever a total had million time rate. for logged our something for today in performance

Project we X, defer integrity, or maintenance, do. integrity mechanical achieve would we to that would mirrors. anything words, emphasized other also We in smoke In not no ordinarily pipeline

in to and that work X. a and realize through your set better. increasing you with do the Project the town to our commercial Complex. can that webcast, resulted big adjust our success throughput day. million ideas them to MTBE group Through we barrels a Distribution, points job, MTBE toward up isobutylene matter A thousand X Project maximized by of Belvieu max] was success operations, of Mont way and production couple We around We to message received at data production that blending examples always success come almost halls a success. and stories share encouraged help is ideas asked of our Our fractionation no something couple it $XXX we XXX meetings, stories. [ether increase employees to safety [indiscernible] would find

a Project boldly goal has Enterprise every go employee X to never gone common where enterprise gave before.

listen this finding number, is to EBITDA. that teamwork, folks we call, job made our in $X.XXX of your billion do For there hard your on work, through when and albeit creativity, adjusted a ways better

decided We employee to have X.X going to receiving be environment. so is this Senior automatic, this. Again, $X,XXX. So especially And because including as up fun take don't had XXXX. Director Project nothing will in for we every we with much it guidance, and are

of XXXX record gas which pipeline and operating billion DCF, day, record and compares $X.X As to transportation. in pipeline records results set oil DIB billion in billion $X.X generated We we we $X.X exports, XX.X volumes, of In NGL flow propylene petrochemical in XXXX. $X.X XXXX. Operating processing our times providing financial retained and X.X coverage. day transported gas million of in to marine ethane per billion ‘XX natural total octane XXXX. records equivalent included distributable equivalent a cash XX NGL In natural records set operating oil fee in terminal Enterprise production, XX numbers, processing compared and to and transportation, sector, a enhancement. based We in barrels barrels

four facilities. we XX 'XX the in Natural in and between addition $X.XX a $X.XX gas growth and construction we PDH, ethane to year gallon propane and to County with group NYMEX we’re export ethylene as plants in and $X.XX second as was have volatility. to gallon $X.XX. a volatile Ethane and fractionator low between another have traded Permian expansions as $XXX in Major under processing no traded Chambers and between also traded both constructing our trading gas stranger XXXX high in natural was for our $X.XX. liquids and $X.XX capital gas $XX. as our

to on natural a US For lead cost to XXXX, much should very constructive gas having on oil, petrochemicals spreads crude we are large Wide so but less globally. advantage gas. crude

to from from with a volumes provided experience Those that the one of barrels markets the just US. start to of supply the fact demand global to opportunities. X/X we be of supplies the global in but will believe barrels growth. demand reserve petroleum fine the be to nearly barrels this XXX oil a demand year, be strategic half volatility This estimates here as nice for One a million will thing the day us it the by X are a going XXXX. be continued accounts China in Chinese whopping countries, to in barrels June. slug seems XXX million open. have a XX most IEA up is water. leads On side of expected IEA do with which record by there not in we XXXX, also expects is our of The non-OECD on million estate hit position real growth day volatility million

over I'll to Randy. that, turn With it

activities the compares on This is to of from for unit $X morning, fourth operations, common everyone. unit declared of 'XX, Thank $X.XX or a right. fully capital Good generated the income the was XXXX. of $X.X was on unit diluted is business of Fourth billion distribution fourth for of the billion increase XXXX. Jim. cash you, from of or the $X.X XXth quarter flow of working fourth quarter for distribution compared $X.XX per off which XXXX. a which to Starting statement. Adjusted of for per common changes XX% the in the before January income quarter close as X.X% basis. higher to operating February is prior quarter We for the cash unitholders common fourth of common The $X.XX be flow fourth net billion All declared $X.X quarter distribution record than This billion year. with a per paid quarter to will attributable common XXst. unitholders

We midyear in will increase evaluate the XXXX. another in distribution

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

we the of XX.X million total million. purchased entire common year, for $XXX units For a

addition, full a common fourth X.X and employee and dividend during X.X the basis, million and plan In units purchase for combined year million purchased of on quarter our the XXXX, respectively. plan unit reinvestment

to our Partners. XX% from ratio adjusted billion $X.X Navitas of acquisition investment $X the free billion XXXX, the Together in you approximately if was cash our flow and cash paid adjusted was of ratio payout of with we flow XXXX, exclude of payout for buybacks distributions For operations Midstream. XX% Enterprise's Limited

$XXX Now were included turning growth capital of purchases to capital of million assets investments. organic for capital quarter million, Total expenditures. capital XXXX which investments pipelines related the of and in million sustaining $XXX fourth for $XXX million and $XXX projects.

growth the investment quarter, had of existing Total purchased and XXXX and Navitas we of $X.X miles our of quarter, assets system that XXXX. capital the billion, approximately miles NGL $XXX included capital pipeline which expenditures Gulf were acquisition $X.X million of effectively in and growth XXX us we for $X.X upper and billion optimize for organic organic pipelines, $X.X Last billion to CapEx. the and in purchase pipeline Texas cost the enables XXX capital of petrochemical investments During expand Coast. the billion of expenditures in estimated on related sustaining

slipped However, into of million XXXX. approximately $XXX this investment

grew billion export to new under million really systems in billion. capital of Permian. $XXX The ethylene gathering construction Our and growth major projects additional are our quarter from the projects ethane expansions under of the attributable scope $X.X in construction debottlenecking last facility $X.X to --

expect above capital XXXX slipping in As million additional be of a Permian, from and the currently billion billion capital in $X.X and result CapEx $X.X million. $XXX expected our XXXX range to of be expenditures growth are the to of the the approximately $XXX to expenditures approximately into we opportunities XXXX sustaining

of total Our as December was $XX.X XXXX. principal billion XX, debt outstanding

we by reduced billion. XXXX, the debt $X.X of our During principal amount outstanding

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

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

was availability on of notes In credit of cash January, X.XX% at and unrestricted billion coupon. liquidity a at senior comprised a billion and issued notes billion XX hand. this notes million $X.X of consolidated X.XX% year Our facilities three includes year year under of $X $X.XX $XXX end and at we of coupon approximately our

the leverage adjusting partial treatment hand. investors equity of the hybrid of our offering. of ratio $X.X for capital the by markets unrestricted We return X.X debt billion also cash reducing after in We times are to basis to not a our appreciative our EBITDA do the continued for was and support debt and on debt XXXX. net consolidated was this strong partnership's on expect Adjusted in XXXX

to financial milestone As XX of is years earnings release, Jim major the a that XXXX, consecutive distribution growth. we noted in expect in achieve

financial As chips. looked are XX that bluest the of at we attributes these aristocrats, comprise the companies the dividend the the of blue

and partnership EBITDA resilient half almost financial were had and X.X over below of The leverage in to have term, partners times and limited distributions times. than responsibly we grow over ratios goals years of have we have a the which era, support debt to believe majority is to with growth. balance entered our dividend the the sheet a X historical XX provide our new Some overwhelming growing norms long less of stream than stronger wise To consecutive it a industry. energy cash into

and the do customers our in seeing E&P, are We refining petrochemical sectors likewise.

we times. is times a range from As minus times are X.X ended leverage a we And earlier, noted or target lowering times. a XXXX a at leverage quarter from plus for X.XX X.X X.X X.XX ratio That our times, to of as result, we've our to turn.

growth acquisition in We good value above oriented stability. an lower welcomed partnership. new willing if zone, take target or this believe that target. be target an leverage growth by to to be long who distribution this this to temporarily to investors ratio our we're necessary, our will leverage We organic with term is complete and strategic the So regard project shape would

generalist and may history they leverage investments of EPD as the believe EPD producing also to more and attractive consider make in of income distribution coverage combination Enterprise' will taxation and consider blue start also of our among We the growth, investors avoidance infrastructure, chips. double lower that

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

ahead, limit remind like question you, to Andrew. follow-up. Randy. Go to Andrew, Thank one your please one Thank to we're participants. I'd our questions everyone ready and questions from take to you.

from Markets. the Schultz line Instructions] first question Our of [Operator Capital with RBC comes TJ

the just and pipeline that. on for miles XXX question, a purchased price last quarter First seems related assets that of like you good paid

color there's that CapEx XXXX And your more were provide growth just in purchase, to that those if of into to could you assets driving part will the be integrated you able what how be higher capital? any may system? on allocated If

is this won't a that. or off, I increase guess, increased first The capital as of Chris result D'Anna. hasn't

business Secondly, in and business both provide opportunities. is these pipelines petchem valuable us which are allow going other a to corridor, our our to and NGL optimize

side, NGL I sense think is the describing, it if that think price us. for I This optionality Zach paid versus the we we made is on look Chris at the

projects… on said of I your Chris, capital, one think you

also that capital, pretty of small one of a It amount projects project. saved fairly saves the significant us -- some it other capital in

I capital allocation. is a follow-up general question guess the just on

maintain You flexibility, and lower guys leverage strong debt of sit clearly continue balance there. target plenty to you with sheet already

just intent like upper trying to anticipate Is on acquisition finding these or do you more did Gulf Coast, distribution of any more on there shift I'm there? buybacks do share So opportunities to you in the any see, growth? how fall some

where two come lower TJ, transactions in Navitas interested that's at system that on to the to that to do good opportunities the get XXXX, in we in our yes, end cash asset these and us And I bolt did acquisition and of between that that. we make returns and deals come can capital think way. gives then the deal leverage flexibility on do and are sense the that

I for months, we've months, model about last, growth it we've of back last, last shown completed an over there think that internally externally sort taken model. to three distribution call or an And call the over growth it funded go we we've the the slowed funded years from pivot about to had And XX to -- XX that up area. distribution X% so.

of So continue the And we pace to that do opportunistically. have the buybacks, increased we distributions. then

XXXX, to we execute in to like good us we're shape So in opportunities on that feel come XXXX.

capital checking and feel time. at of the like returning the of same of sort we lower and we're leverage above all box maintaining also the So

question next with & Bean TPH our the of comes from line Colton And Company.

So distinction guidance, Project I and appreciate that internal but questions not there. just X.X, on the it's an two goal

achieve First, the bit headwind, as team projects like a level secondly, has year. sizable you for It seems high entering commodity that, throughout you service maybe to goal? an of how any mark. missed then comments some Jim, but ever then margins internal the have a And

I we've don't like this ever a set goal think before.

it a thanks their being achieved catalyst the frankly, lot for what attention So this. Becca through Followill to to be employees our it everybody We detail, to of work supposed doing butts created And for it. of doing, to they're excitement.

you excitement. in X.X up quite posters triggered driver when you've know are everywhere Project X.X, within got go we truck You Enterprise. had achievement. those you'd we how asking is some And you, a an Project doing was on like X, XXXX

the we'd XXXX. that use So start on to

don't remember missed I we goal. the last on internal And time

You just guaranteed guidance.

of just And then maybe a couple questions on processing.

Midland So were versus I assets down think QX. about first, the million XX

whether fee to high as at despite or margins indication prices. then to Rockies Navitas gas any closer second, keep strong hold pretty So for we're floors the And very now?

was there? just or related curious hedge if that other So comments any

that? answer you can Natalie,

production Christmas was Yes, there I'll some loss in I'll -- do a remember, Midland little there's Colton, field it, volume. bit. slightly you best. There if down the is my in a, a event, call just where winter

up be or producing honest, to bit longer I quite good. wouldn't I to longer think are during gas Rockies get count to time. pretty prices the a out, little that it's high get back

watch Waha So volatile. maybe been We've hit the the CX Rockies. once has but out really or for twice,

So anyway, but some there’s margins some a probably processing some that. there's or little from some bit, tailwinds down that headwinds come offsets,

contracts? activity And the keepwhole on higher the replacement sounds cost it price Rockies, and drilling there for like the offsetting [indiscernible] maybe so the

fair assessment. a it's Yes,

And Harry line our next Barclays. of question comes Mateer from with the

on leverage the new Randy, a follow-up question target.

flexibility policy I've policy. the being is So ratings historically, BBB you gotten is in a the preferred category, leverage you but sense a that from the of

single open generally and given to into it now times are the X potentially low you agency around that be guys upgrade Is As. question would something welcome? up begs rating So the targets

to over I'm Chris. one this to send Harry, going

comes we're high because perspective, high don't BBB is rating. high do Harry, question. A to be a I opportunities, to we to upgrade to despite From our a BBB income the want agencies comfortable when lower our do rating minus rating. leverage appreciate flexibility A the what From target, aggressive -- fixed M&A very to want and from investor what have whipsaw we the the at is that a still us for removes at it us minus to don't the external from standpoint,

that So consistency. we want to maintain

the plus we're very across agencies. BBB maintaining the comfortable rating So three

that think our overcome. your distributions, other think at a investors minus I bit think And net look I at returned agencies that because threshold also capital maybe harder cash threshold distribution the thing one with A us I Harry, looking regard to little much to on And is to that's just payout so through for income. we

pretty with flexibility. rating So ample as said, pleased the BBB we're plus and Chris

any you look follow-up the know a for give is can what I any like mentioned taking to comfortable could that down? time guess mean But sort just I how higher you of sense high I you'd to terms leverage you on that be for sort us? leverage opportunities. in And guardrails of temporary us basis of frame over out you'd period bring up

and Harry, a honest. we envision would where scenario to come would take rating. in up that can't plus BBB be a level a threaten leverage I I'll

if is Harry, I Chris. again, -- think this you And

back you quarter, turn the within and billion If first down. a then a bump look think leverage that ago it that acquisition, year to quarter back came I quickly $X acquisition up Navitas

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

internal you the get anticipate ever historical if view is My long NGLs trade? first it of to Tony. about of versus How probably range one versus to we take for will crude. NGL there Curious your pricing return do

historical range? the What's

think I something that. historically, XX%, propane, guess I for to like maybe XX%

price go. to itself to going is Propane

you'll think out end are decide China. more see day, let the I'll that. going we to but international weigh markets of at of in, the So Brent the activity

into there And as as 'XX number for I is that support see. so we head there's

Jean to going be there's think some I Ann. lag,

The existing running have PDH they on this five are got year. coming has capacity. currently China plants plants at full think I not

time there. economy So the see LPGs. once the back can take potentially then you the China running But over takes to there's take that work some as US some it's in occurs, reopening And and to going rebound gets and going just of to some time. dock time, inventories a in capacity enough off up it it's

you suppose. the here, trough we're think I that But off

is is mean, like I trajectory the going there's no a consistent, assuming starts, crude stops reopening of would I and be to that basis. think percentage on and up to

down Permian the crude come follow-up, then Midland pitch kind say, over price last would a customers in much Houston And The a to to spread Is board. also six difficult in. I production more pretty across estimates come of have as months, has the this environment? spot

And the you I in I I -- volumes that and then is we to most friendly, way to to cost mean, effective his Permian meetings clear. And Permian help domestic online, producer way going the its most environmentally forecast to do full. market the are I it demand a increase spot when when believe coming been online, had comes crude about positive. spot the But view Corpus is conversations. those And project we've trips. terms is of a because decline. you still them the you US of talk production with lay way to the if question a when have bullish in you frankly is, still out ultimately, going for volume, potentially have specifically so our like do of think good its process think Basin. Investor to overall, And think that is, believe and then it's believe ultimately, Tony We're lot in Day. that of most do you And you part, and next efficient on and And about conversations And going going out volumes. question I'd think say, it's got could come to to barrels are the customers, a needs. in export of find most to think that the timing it's the lot this to Houston of that our pipes the

Chen with the next And of from Barclays. our line comes Theresa question

to spot. I'd actually Jean on to follow like question up Ann's related

anchor does taking that working you're things view And of complexes other more outlook if demand flow incrementally that demand Because for or the a through additional I lot shipper? a getting the contemplation large in anchor threaten of an point. euros you believe the refining As like how do pull under process are side were of the spot? you shippers, as previously this at Asia that reroutes, have

about to we've think I price is I barrel ultimately, talked talk going mean, LNG. we about LPGs, export. to This

project -- there But think our Theresa, that out view would one So freight to to out there it routes play is we takes think and think we're a have think has terms on on to game. for we in be Exxon don't be from satisfy producer probably there's from crude going do going have more thought a fairly I oil more come going traders of BP. And that type do is in to think have that the I we behind global with push global I this I demand. that long of that aligned maybe demand to country some lot would with crude time. us. customers. potentially in demand And and ultimately, to point to be But I at probably time, some that going different, involved the advantages seen this it's

it's with With large for fit in really our are see perfect Asia the the integration petchem refineries that barrels, operations. lighter in now integrated you a that

amount a from a the the are market Coast, month look markets, lot and and Houston that also of if XX between of VLCCs going to that share the And at we're market, number Gulf Corpus you to go There's the north between is coming up. [J].

ethane Permian? us your as your through outlook give your that outlook capacity year basis to on the Waha given update open just on exposure interstate and from for Texas you well the as can projection bit, an a gears shifting then And the this on recovery economics business versus

Day. exposure since hasn't changed The Investor our

has of compressed Natalie. the several It So over months. XXX I just we're shy last million a day, probably think

market, that gas bullish back extremely back we're to fairly we recovered to have has going the it's new ethane price to There came think ultimately, going to adds do some Tony's Permian be of compression. forecast, volumes. pipeline We a think out on to that still is volatile. been But online, go You be the if lot market, forward. the But LNG it's we're US in And whole volatility there, very, not a happens different to infrastructure look there's is very whole you and embrace Basin. going the volatility think we go of as that at lot that when something out a than I fragile.

question Neel And line from comes Bank of our next the of Mitra America. with

a online see to NGL on you the frac seems talk coming you the wanted market on contributing I basis. fees until Medford fractionation the like about fees mid-XXXX. where is touch now? driving tighter factors, what's outages, Can volumes and and right and just [indiscernible] the year-over-year It market with

doubt, So in fractionation fees. we an when saw down, Medford no went spot increase

helps You run since had some cooler weather, with rates. which the fractionators

had online the also come fractionator. Philips with You

of seen we've kind cool down. that market So

far our I capacity which of this lot market quarter-on-quarter due as but we significant then think to had needs. some downtime. obviously wasn't and frac as the then online unplanned year, vast as it -- blending. fees slightly prices We majority the a commodity down from actually the on the see average, as of results, coming blending, some lower nearly and And also We had was

about excited pretty XX. one. will full really forward, Going confidently I be that can fractionator on say Frac day

markets stack looks terms that online you how the the spreads. propylene at in you PGP, about have talk of of that RGP looks the It now, like volume see And the fast of X? the PDH one kind for versus like that we're And that it the in in like of X, a PDH kind trough as look comes tough at recovering? how terms QX. the then do with right you dispatch outlook Can looking you in a at when once fractionators online, follow-up,

as wide, to spread, really, that last a far demand strong. but ultimately, year to propylene we supply it's think of [RGP] out more we and a be demand. bit, And widen that the first than month at that year need tightening a for derivative as I the bit. issue seen spread We've little of throughout remain saw

little a So part further but COVID, propylene could year. a those half of we saw the the out, play big demand for that durables that during part and a COVID China that see bit is in durables. maybe accelerate goes And we second of that into throughout

it's second that half we think probably of year this return. before see demand So we

What about polyethylene?

demand quite to customers end a bit. December, the Polyethylene grew exports last we quite talking strengthened bit. And where has a from at of were year

One guess just to the that to in question. of seen our that I that's subscribed, customers going XXX% so be PDH X one years. December told going was exports of highest your polyethylene they’ve five back month X PDH day is pull. us

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

potential marketplace and recession. wondering, with concern just economic conditions think some It's been there, petchem regards just pending I on faring ways touched together all just it on that. to environment? how business, in And different you there's a few already, the I out this relates specifically that but want your it as to bring see to in

you other cash business the stability that Also, line. of that if or could wondering you of facilities any offsets through do downtime those in you see walk in 'XX? have any for just us So flow level planned

-- petchem I we normal, capture business we of part were wider of is because what guess a our capture fee year we last way predominantly to able spreads the that. were contracts, our to based. structure were we as able was And saw than

about business, And PDH propylene we the [better] expect good a at XX% for to earnings we're spread. pretty on octane consistent. and Looking then our hedged for our 'XX, be pretty

private far there through market part acquiring kind of out look assets, you the relative out could, there anything that to view as or M&A? capital portfolio sheet to opportunity out it there. fortress you balance last opportunistic as be to the if And seems relates one, like to any do has -- maybe Enterprise what have you guess, current, would a you? Is it afford and just as round space, How the right can I if I one potentially other of others the clearly comes. in

We was proved -- successful. Midland in and to position us, a getting it's to be pretty Basin important the

Fowler always says price price matter. matters does I think Randy and

I got strategic us anything to now there's think we're pretty for in that a position damn to be out right there, interested. if it's get

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

gas moment. to to a wanted go natural back for

maybe we aside, talk the business will Can how price which all environment I puts through With natural the on you exception, gas just the and this lower Waha think year? takes maybe impact this putting your understand.

probably price. and highest as mean a a gas and the Michael, balanced. load balanced The it's said, benefits but and the US that and petrochemical million call price $XXX I for consumption industry obviously of at our system. there's You imbalance. you that you number, lot want with -- go fairly just equate gas I'll run different look said catch is lot you affects knock would but it, there's the price benefits a total load not a fairly some lot at it's we puts our takes. Lower and portfolio ultimate at I power our and this day. burn at say, But the and in is we numbers, look get around higher pass look when And crude, price, pipeline throughs Michael, our a natural gas gas sell Jim equity that's be high to wait levels, last of mean, if and there's there gas, thing on associated at you us, to you equity probably of throughput these

growth Just XXXX really question really. beyond in and distribution other about one had

of growth XXXX. So you obviously rate in raised the

to related So going to that think wondering And be I'm model? going per to are that, one of then is you run rate, there type forward? like just a a reasonable year going of new a increase range kind to is about

Michael, And an I in I another we'll funding mid XXXX. and put we external take and is to as Certainly, model. two there the this where in and marker a mean, internal really don't We'll in take funding off we increases rate want slower come funding guess that said middle expected going at to in -- we saw went come to out look the growth of be. year, we an distribution did of we from it at look year. a come at model internal pivoted it

you've it and that we'll do we come every back growth So into up the area and evaluate in bounced X% as seen the quarter.

Reynolds question of next line UBS. the with from Your Brian comes

GORs hear your Curious and We in just parent higher just continued on associated on higher the going on parent perhaps seeing interactions. changing gas discussion production the discussions the Permian with upside GORs child view that Permian interactions could to in higher along forward. continue the you if you're to child discuss if

shale GORs. It's is it we oil The continuing gas answer Look, surprising. higher not faster than simplistically, see basins. to putting natural declines and are

parent it and a it a parent reservoir. we that our So modeled read child and more and it. tell the different we more the midstream And as about of feel good it is day a getting rags how It's the is And we producers in Relative think you out all child, a not thing. learning around thing, rhetoric a obviously, get bad We I'll it. in most are when absolutely company scale. parent We about good think projections. bad how every producers projected you child to is the are we thing, watching thing. larger

any at either. night of sit doing of with and don't we -- we're you, sleep room So and have any frankly, have in it tell conference a up with their see losing of producers that the agree… you major lot for I don't them. think Brent, the producers things a them to do I over talks and lot we are them

that’s think I dead on.

touch it cash seems rise in recent flow growth growth maybe results, the profile pace like on briefly Post future keeping free is the quarterly CapEx. just projects. And with to

Oak? into the X you presentation ethane the exports unchanged, in is just Shin or the Slide little a existing provide CapEx is largely in could projects, upsizing future, i.e., given we're in if processing color curious rise function a X PDH of new plants the whether are really Just seeing or perhaps perhaps i.e., maybe projects,

and expansions forward. We're more going ethylene a pretty are ethane lot products see our going export key. demand think for I those to

chockablock growing. is and exports full are Our ethane ethylene export our

on that those. of XXth two So door, But to XX. in processing the on the fractionator, We're Strait to knock plants going a the in we're do want do probably the all get have knocking effect Delaware, those and like Midland projects, Zach we basin on lot there's projects. four our a I out because in two not building Permian, of

where think So can't beyond I we are.

debottlenecking And gathering… probably the and cost-efficient some in add

picked up we just much money? Yes, how XXX miles pipe of for

million… $XXX

$XXX million all in day really will key quarters. I mean, those do kind of long. bolt-on deals

in he X, D’Ann walks out throw office Chris PDH PDH X. with of to I'll As if my

it takes astute one put analysts to money. it, money as make And

Our from Neal with Truist. line of next comes question Dingmann the

year and then wondered also County there? downtime your is of you the idea pace is for petrochem that propylene me facility, in System next remainder PDH specifically. secondly, on the Western Could an your question facility for still expectations And this later My on of respectively? refined X volume just year give sales the segment any and Texas quarter expected maybe for more Chambers

toward Texas think year, the is I end of the Western Graham?

Yes, that stages. come on in

midyear? is X PDH And

Yes.

sales, stable. refinery we of coming expect supply just their grade are. what those rates out and really pretty of a in of propylene It's And terms run to the be function refineries

looking so it's to cracks pretty profitable And for today, at run. them

would I So that to continue. expect

And line Mackay John of our with question comes Sachs. from the next Goldman

was I a of right of of The Maybe out the I pace kind guess to on bit -- quarter to the back debate of forward. We just last Permian. guess. Shin growth the had going a that, going Oak just fell there pushed

there Shin the you us needed? when know in you the on be early update think again, Just could deck. curious have ‘XX Oak might if I you

puts NGL of year growth just out and kind view maybe on on Permian. the this So that beyond of takes your and timing general

Shin speak Oak This is to I'll timing. Kleiderer, Justin

for probably think that 'XX that it. enough accelerated half can't first the prove now. feel about various two I and we room create early still half ‘XX. to options got given first we've incremental we it doesn't And meantime, of years its accelerate be if to There's in from capacity of good amounts

least that, going And beyond capacity. we've to then we that got enough couple next enough make needed capacity are have what we that sure So of projects forward. good years the feel for at we'll continue evaluate to

growth what they to of reported in ‘XX production, November reported down everybody from barrels, year just EIA know XXX,XXX end was year to from October. Relative Permian in crude the so that yesterday

and I everybody So We are better -- and different But calls at own a know for of go our acreage EIA capture we hear to term, back actuals. gauge our we lack the numbers them. things that these and own these looks numbers. their are what

a use in all own and it, associated term we [loosely], And numbers So these correct. almost directionally, with I'll but of of our look that out Basin, back are comes Permian models take liquids it. has the

Permian in in change the trend no relative us to profile the So production for what Basin. the out

an be offs? easy. quick Eagle maybe Can the us, are should One just done we roll basin about on the Ford thinking you're what remind you And with contract one overall? update

renegotiated we're lot We and of a are it's Permian Eagle inning players It a drill. have lease -- had shot. a haven't major of that's we producer we of dedications, the the Ford where in a in We inning our of some and becoming regional life forgotten where with had nine second by that's the going of like up mean, ended they're the tell It's kind dwarfs ones seems did it's we becoming and But But to the those I of the -- contracts long kind [Haynesville]. they and like just like. kind we which roll-off. Ford. some game Eagle everything. us

full And that a would fair Eagle the be our Natalie? in assets Ford, remain statement. very

fuller years, much than sure. two certainly, last processing, for the So

got I'd to standpoint. Crude over. beneficial think roll-offs contract to incrementally, had, everything but going be that the like it’s profitability from a are we capacity,

the That’s appreciate time. I great.

is Andrew, I think up today. time for our

call. will thank our or a good call. And the terminating ending our joining so day. just And you, wanted Bye. to us have we And I be for thank and all for participants with that,

this gentlemen, may you disconnect. and and you Ladies for today's call. now Thank conference concludes participating,