Crestwood Equity Partners (CEQP) 27 Apr 212021 Q1 Earnings call transcript

Good morning and welcome to today's conference call to discuss Crestwood Equity Partners First Quarter 2021 Financial and Operating Results.

Before we begin the call, listeners are reminded that the Company may make certain forward-looking statements as defined in the Securities and Exchange Act of 1934 that are based on assumptions and information currently available at the time of today's call. Please refer to the Company's latest filings with the SEC for a list of risk factors that may cause actual results to differ.

Additionally, certain non-GAAP financial measures such as EBITDA, adjusted EBITDA, and distributable cash flow will be discussed. Reconciliations to the most comparable GAAP measures are included in the news release issued this morning.

prepared Phillips; Chairman, and and Officer, Halpin. with Executive and Chief today Robert Bob Officer, Executive us remarks President, are Chief Financial Joining Vice President

to for senior following analysis prepared a remarks. all will Additional listen-only Crestwood's time, the management this are of I A your session with the be the this conference reminder, Instructions] As question-and-answer a turn members Phillips. session available participants the will Bob to At being mode. question-and-answer host, follow would recorded. the conference like formal current over presentation. team [Operator in now is

and employees to excited industry for to operator, an given job did the portfolio challenges Thank certainly joining great quarter. another you during quarter. The absolutely we the phenomenal Thanks, all that good the faced morning - announce was faced all We're the us that the and today. throughout resilient everyone. quarter

that the working while than important We're to it's more and you year. a meet we're being think know able I get in remotely, all to and that into year we there we're and stakeholders later at to person here to look I our analysts investors anxious Crestwood this are forward and pandemic used all note our know COVID-XX Crestwood to too.

circumstances take didn't just near-term We've at hinder I'm goal Most simply progress really strong governance with impressive of structure our the Board program last long-term When partner, very we cash publicly and to a will an to seriously we year including past general our the excited MLP elected balance best-in-class team of have maturities, pandemic message combine really positive Crestwood. the operator. that, in here around year a quarter think remainder First first here very a a buyout of think what the employee put think for flow, We difficult on very is sustainability made safety is proud the the outlook an continue and about contractor that we and of in transform the and we year start this outperformance our of we of becoming industry-leading very recently, We positive let goals think underpins which Reserve, Crestwood's at to under listen sheet, best-in-class this, the this no XXXX, of and our to free together number Crestwood, portfolio, Directors. color exceptional lot not and of our you but which take midstream year. off. a our

to I going take in quarter of While the over first for that of throughout detail, use to in after of free back did first cash think both million, flow million continue Robert's adjusted on level. target that free well were cash a you'll also EBITDA consensus We're ratio to cover We $XXX of. year, think important debt reduce and cash I times. debt to Starting in X.X get our our to to quarterly the year million. first resulting flow quarter were some level first history leverage above Both did of quarter things distributable I note and free We that with generate that increases record. are distributions the quarter track flow estimates. expect note we cash $XX generation of record and $XXX want do last Crestwood, highlight results were and XX-year both our flow for you

$XXX million borrowed Now to includes common million XX.X complete the First that Reserve. we the unit from that buyback

times. distribution the That's of had coverage XX-year of MLP. as importantly, posted X.X we do coverage record So, in Crestwood the history ratio an you And can highest math the there. a we've

our Basin gathering really Delaware gathering percentage projects and good handful reset took we prices XXXX systems. we're XXXX of book, quarter, we contract where first margin, proceeds the a in and our of River, of on hedge expanding made our Powder Additionally, processing progress to our commodity capital advantage and higher Bakken,

second So, about XX% invested which was not combination rigs capital expanded rigs and running And looking leading the to on and we the end number that budget, that we've higher cash the on million squarely so second to our a as of down times. will million us a to by to to to facilities our quarter, forward allow million $XXX our free $XX XXXX timing have of our which increasing that Aviki we have are one the said, Diaco The objective again have generate and, the achieve assets target to $XX I flow running in should of financial meet our million, will to the continue as number is reduction reminder the of our debt times X better. X.X to these volumes Robert year and of speak range could on been range assets. locked for guidance, of of revised in margins half $XXX the in track puts us XXXX

did, Wyoming the on event Uri the Storm that from volumes now. Notably the right Company cylinders hitting quarter is our to affected as extreme hands everyone employees to weather the Dakota energy their Texas. during in production I all almost with full, Winter North business had think

the job Texas storage EBITDA of located Notably facilities. Palacios, Coast, to is Crestwood. we generated gas from that's net we've Gulf gathering outstanding adjusted higher shut-in the the the to at gas able heard did the And job tables and of pointed X on, thought great facility ensuring you and we did work than that on Tres delivered extreme had storm Uri. deliver point $XX facility were in incredibly natural to which our and which winter during reductions storage to kept in our customers. employees different that already keeping Brookfield systems, want at we a and out firm when in portfolio the margins approximately during to, lights they Uri backup Remember to that of the our safe by, because facility ways operations down I allowed storm. for how any a XX-XX venture Net-net a resiliency a those and are critical facility was prior did week uniquely that that offset appreciate this the teams portfolio. operating reacted going Storm we've which who due had the to downstream Bcf in our the and I that to winterization Winter to much the loss in our as our producers previously, attributable and meet plants, remain customers, companies with customers other our in was to and during dedicated Company those joint yeoman's our that from fact and our an the In Storm see of in back, volumes out employees Despite you'll volume that always on Winter our storage largely side look I have entirely some the know different at due that event. independent power, Crestwood generator demand event Tres commercial throughout invested processing through reliable flowing Texas was for million we operational over our February. more efforts positive of gas gas customers

great general we limited the quarter First and those milestone our that provided Crestwood job if during in XX-year the flexibility, of a we investment market of the excited it First for organizational the XX-year alignment our First and big we forward simplified want Basin Reserve. them for partnership Reserve for their proud first they our really joint success customers. the our certainly great The as public to Also at the partners history work investors, transaction think public Delaware same a where when The investment Holdings publicly outstanding. the certainly venture that minute Crestwood Crestwood had guys the Reserve did That's take future really Holdings really improves a reducing what transaction it to our exit partner as this was long-term I sponsor partner with for step in since thought entity us, us and with Reserves for successful of we this for buy-in total retain financial the was potential common that relationship time event look the forward. of our been on that partner a First to to the to at interest. units I float elegant thank their of call through forward up the Company, the refer you increases continuing Reserve number our So, buy-in that's transaction, structure interest by we're set of about going we've And They've very the and well. Crestwood them XXXX. a to Holdings took and solution well received so with was enhanced while very First hear

some by win-win-win The entire extremely was oversubscribed was Reserve's it be everybody. the First transaction to we off transaction some who institutional for sold long-term of units where secondary a dedicated offering bought and reputable investors consider

of started we But XXXX. didn't shoulder Directors. the a to quarter part time as get on elected of we expect deal messaging Holdings shoulder is we worked Reserve publicly quarter our with in transaction, plans, that the something back was Now quarter, to this of announced and of transition that aspirational Independent then, went have First to we as Board to This third we done. specific to Directors Board from It

interest Board. the three that diversity a XXXX. hold will time, ESG Board in we expect midstream expect in we of our we be so elections that we to GP program. and to substantially the existing expand at has And a think Board We'll the publicly one continue our bought We further. Board Crestwood on As focus into only first expand our elected to result, of that Crestwood to adds in spring as MLPs point Board

towards team Additionally front, Report. publishing on working third Sustainability our Crestwood's annual the ESG is

third these Force on in Climate-related the point As Financial this a new with of will be report, disclosures Task Disclosures. accordance

reduction We're of now some how our the ESG and and to to we're you'll year best or for you'll midstream the other GPA information practices. benefits midstream we'll potentially continue the educate our This country emissions the collaborate methane executive it about gas to groups plans. the past Crestwood tying a across and emission trade and some responsible see done more with dealing energy development talk to companies of here areas we've at us about EIC by targets responsibly make compensation investments encouraging that with of So, looking work like the certainly sourced the hear on RSG, and in future, industry additional employee lot on good at industry

are now leadership taken the Powder, producer that across the care we operating prices of assets half eight to of hovering to the ten we schedule in proud incremental year early in that barrel where remain have role rig our to second as really fact gas and final and and are the systems. across discipline 'XX. assets discussions DUC our has G&P pointed completion that out, per crude the note, customers Delaware about range, hoped a starting oil Bakken, looking our the With crews as in guess of the as very, industry we taking all the growing of the in very inventory rigs the and areas I for. ESG. showing counts Barnett in increase well. So, because I strong in producers we're our high adding $XX as of team on across capital drilling more additional activity forward as have Even economics the to locations some the continue in operate the But seeing

some to So, I which which our want Consolidated now. guess last about process, divestiture that ask while we're process that Edison. the for I outlook Stagecoach the know a partner in with running positive. are We've point, been - remains you of engaged

number that been very more weeks, in I on process. tell have by you in process quality the that information We participants of and encouraged to we've can coming the that expect but

that you to guidance. team Robert? just did in really update the a and to So a it Halpin first as job with over final proud for financial of review results first XXXX give note, of quarter. the I an on our Robert the turn quarter the want

our million, for up internal Great. million, Crestwood. Bob's comments, forecasts that of proud report $XXX above first Both echo debt of quarter, quarter free end quarter. times. record also drove year-over-year adjusted estimates. up a quarter after another cash very I'm we its the These of the in Thank for per X.X million, EBITDA consensus Crestwood XX% results distributions ratio to times year-over-year. $XX.X To leverage the sheet you, $XX X.X maintained of that used coverage assets resulting $XXX generated of first approximately a and at cash balance strong of Bob. and to the distributable In X% on flow reduce resulting which ratio our in the almost unit above flow of distribution

at of impacts way result we Winter in Now help by that and first In of results. Bakken operating offset percent were of let's $XXX proceeds had positive Crestwood's the was impact to small segment, quarter prices would the that declines year-over-year. commodity higher the or the the index quarterly and net contracts contracts the of as EBITDA a in saw results flat a percent and segment which some look a Barnett on totaled These gathering million, long Storm. driven processing that volumetric

As advantage our for prices of rigs movements part upside the remainder operating XX practices, range achieving reset quarter management we guidance original PLP favorable year, and across conservative from cash our we attractive Currently our volumes for have increased summer $XX million commodity Crestwood's million of this and of $XX to in our quarter to of the PLI flow months connects our in position in a certainty to the storage and provides volume risk drives Basin. and first of over overall budget range. which on at XX% the into the an the the of In increase took into of hedge year. compared guidance Powder which portfolio second price the River expected in first is G&P in and segment, level dedicated Basin, and back drive EBITDA the growth quarters, and well the half drive XXXX. the our third Delaware system first transportation activity acreage will This was to quarter Bakken, towards

received XXXX quarter impairment Stagecoach demand on charge This production storage on results to the as contracted. taken of The a a our XXX% Marcellus are market increased record has quarter. result adjustment the in our information impairment first exclude assets the based was a nearly that both of fair of million the Stagecoach and venture. based the goodwill see value a and continued in assets impact equity investment $XXX is the joint result, during as of non-cash transportation

demand volumes to by remaining the crude around in quarter XX% for COLT continued first the fourth XXXX to quarter Moving in rail increased loading DAPL. rail the of Hub, the light over has of XXXX takeaway of increase as uncertainty

of Bob first down first quarter our as storage in totaled well during in results which compared and EBITDA played $XX quarter exceptionally the XXXX. Tres the Tres driving during facility to logistics supply, Palacios segment remarks, his the $XX mentioned Storm, the employees important an Winter performed in at million quarter. marketing, first million and In segment; Finally, part the

business During and team Crestwood's volatility to from by demand. see logistics driven and benefited NGL the consistent quarter, market retail marketing our extreme gas weather continued marketing

Crestwood's NGL to refinery across see forward, commercial country, increased Going and to for continue margin reopen demand will the business. which opportunities the expects as enhanced drive business economies

Arrow and were Now growth moving in to which well system capital the Basin. quarter. for and $X contributions, capital expansion produced the venture invested on our joint water Delaware on investments at in focused million Crestwood connects the

growth maintenance million. capital be $XX in to million $XX of range of We to million continue to to the expect full-year $XX range million the capital in $XX with

On to which flow its cash at for million a By Reserve's - of million revolving distribution $XXX institutional distribution end $XXX X common million units XX, exit distributable First interest First general outstanding quality secondary on with to the the investment help forward. on XX% and free reduction of several As to a units, investor annual $XX XX.X Crestwood's conjunction complete Reserve's unit, offering, that facility. In program. financed million also high objectives the per distribution corporate common cash a transactions savings Reserve from base substantial and our we proceeds placement total announced rate, facilitated a authorized flow connection remaining current drive announcement, accelerate which simplified driving which important Crestwood purchased accretion units credit and in incremental by In after Directors private for also of debt common its million. March partner million we repurchase common million, retiring with will this XX.X previously in First in closed in going units mentioned, results structure March unit our of distributions reduced resulted Board XXX CEQP. preferred Crestwood at that Crestwood

the capitalize senior $X.X revolver. on our on structure buyback Crestwood X.X as our establishing at $X.X for towards strong until free closed borrowings credit we our me million buyback billion senior transaction, forma present clear realize has continue on and due generation incremental financial prioritizing and the to Crestwood portfolio and expected facility. for par debt by committed free we in program firmly let the Once the flow XXXX remaining greater program utilizing outstanding long-term times. going further capital our themselves. have potentially optimize cash revolving While flexibility this reduction optionality million our reaches remain leverage debt billion to its times forward, $X.XX of week, asset long-term flow of $XXX to redemption creates Pro opportunities comprised notes Last our X.XX% that notes we cash that leverage target of in we billion will $XXX Crestwood target, of to be X drawn

to note Crestwood this our than availability until on liquidity which provides strategy. senior next our our Crestwood with substantial than positioned on more execute at in Crestwood $XXX maturity I pleased notes, very revolver, flow XXXX. XXXX combined point the the the has more free of in where redemption when year. with with currently is full go-forward am million the With ample business is cash not

have infrastructure us and to for into our in the million on $XXX full We assets line a on middle ability adjusted and this increases strong volumetric sight in between utilization the $XXX generate assets' year, our G&P MS&L of strong million confidence the EBITDA S&T and gives year. of on which

distributions free We for sheet million year. $XXX on range highlighted generate by total also remain ratios. to track $XXX coverage strong after the balance of have solid and our to leverage million flow revised a cash We guidance within

With the total resulting Reserve in common we total and savings of unitholders cash resulting accretion transactions, XX% First coverage, bought our distribution public flow. unit our units all back increasing while outstanding to our increased in distribution significantly material

delivered will and together GP Crestwood publicly taken to accomplishments over and the to for Board. drive place increased At peers governance ready from these our governance operator, a we that in action our time, this elected further to value on we Finally, continue questions. call best-in-class differentiate stated put eliminate are to commitment our taking our turn path unitholders. for all to We by a of believe structure

from first Richardson Our Securities. with Please is question Instructions] Truist [Operator your Tristan proceed with question.

on the transaction. Congrats

Just from factors sort maybe sort into talk triggered there? this what that Can about about like came during It was a the review the this action? different question annual of about quick strategic impairment of task. talk you ConEd play Could the Stagecoach. sounds you

going then to Dougherty, going over I'm it Accounting Chief to Bob. and is go our this I'm Steve Officer. first Tristan, to turn who's

for recently got that you'd just the due the from extended purely that as had while conducting on many with There and process. of ConEd, into conducting relatively of a And sequencing participants, been meat various a been the process steps behalf we've really which timing know, process expect of on standpoint, several have process. we been our the you partner. to As diligence

despite combination we that already feedback a or of asset to NGPL the in take caused the year-end had process our fact we our from just evaluation. transactions to a participants like that deal need the at what hearing that So, second and from recent a normal own knowledge look look were taken Dough

how that through you So people aren't basics go works Dough, that the to of for accountants. want

Yes, absolutely.

related our In Edison goodwill. So, like based was investment, equity sales market year-end an you and Stagecoach, process. which is the its our any evaluation did potential information of XX-K Consolidated to Stagecoach before That described. received

in bids Stagecoach's So, information an information first market the their indication some when received, related its asset quarter carrying process. the started the received that that rolling was to of we value value. had of that Based was we here potential below in on

which we million that, of Stagecoach $XXX share recorded of because of So recorded that. an our impairment,

for our resulted, that $XXX we in the release, balance So earnings investment. indicated related investment million of us in to as ending

the XX in at kind And is we very last a that first I based XX times raise point events. quarter frame a code comparable the coming had assessed zip which in announced, just from we the Tristan, market-based time with of of similar approach, on those fair times would a trade the also transaction range, also value how to NGPL was on

guidance Thank follow-up discussed? then talk versus end the the seeing the end? maybe range activity high the that XX level that from Can in helpful. just guys XX just and the to guys. currently of Really completions me. low year If of low of or the well and of frame-up end see high relative quarter, kind about a plus this second we end the you the you you, secure does sort maybe low And you're

Yes.

a and wells today where are into all pretty the to towards pricing think prices the XX I the think hedges, and look of think trending upper. plus where we've I the we I we're plan feeling where we're XX kind about think good you're trending is to completions commodity you $X.XX. forward relative of factored $X.XX the the three holding, price the when coupled set well With our And range that good that - with it's question. expect on strip at - which commodity I

have with first right our producers added think are I now, we rigs quarter. the pretty where in meaningfully

Powder Delaware. operating rigs our River, XX in the and actively have we Bakken, commented, the we on As the systems

we parts And firmed the year that 'XX that are alluded in of I hoped his half back throughput. early think of in the next that around for. there incremental up Bob and development to has as that adding plan further comments, helps drive discussions potentially had to think I this

next your with Shneur with Gershuni question question. Our is proceed UBS. from Please

It's Shneur.

follow-up before I Just to a here quick jump into questions Tristan's mine.

given does everything the whether in investment on that to you're call or there, based Stagecoach fourth ConEd your February? Just updated change interested process on participating rebased have us relative you in in you the not when last the quarter that process

That not the the quality we confused the the accounting speaks information been would not that process. surprised I we good great So, people but the update real and on we I by and question him had are a which do Because time. of process hope the that received and the everyone I the point Moore that's think impairment. upon something what for part in Will be we've give think that indications the the the it's and for that interest has us number to that this only been of participants a lot participants, And to point in potential NGPL, running of of it about based process to asset with ourselves here we value based is be. to that the made could had us of was at like early an transactions itself. on precedent outcomes pleasantly

sequencing just overall feedback asset getting itself. and the the So I that the timing to think the positive and Will, for on it's helpful we're people understand

Bob. Thanks, Yes.

now. at they're record right the volumes that And running

for ahead that's we I important year part. business performing an the balance the year. that think and plan for The of the see well continue to is Yes, of

with be in process partner So, that's participating to this great fundamental ConEd. backdrop our

number are was more we those just that the going a receive those here. It we surprised from values values when to timing on we But had the weren't here accounting - going in apply to think go to ConEd the of can we'll and perspective, months to values. and our be we're coming out that I goal is maximize know where valuation you shaking treatment and ways opportunistic value of report and partner a this on and be process. then. We're good more to back a to the so for

want leave perspective, And I for itself. speaks if a If to you from fine. Robert, that, not, anything before financial we mean add it

your at I no, would answer thought hasn't directly our it all. changed more and question process

of we've with value participation number that I as with vocal high our quality and been multiple. think double-digit think I the pretty of partners We've Will ranges Con pleased Edison. a the at talking our said we're that around participation strong type that solid level participants in active been and about

I our long-term think of drive think and we play for have strategy. value optionality a to to we about want that greatest how lot

flow, almost I in And for our $XXX our times because X.X of we back will to a circumstances Shneur, If drop the the million worth that target $XXX hit range our get to really of is to want free leverage I in It of comments, us. my numbers the times. million totality make that that based cash sure is. deliver on going through free we're It the rest of be and the opening point made to X gets. portfolio everybody ratio

Okay.

under guys going make for and to best the market we'll is you lot really a partnership us. circumstances have optionality decision upon tells that trust us of the the what there positive So, forward this based

Really appreciate clarification the It the a definitely question, color. color was just helpful. but expanded is

the questions But a the the Arrow. function and talk of activity in high had side? I help it and is you release can if Just percentage a it it their first the you focusing during moderate better-than-expected the with the XQ the any wells to was a can year more gas fourth activity had declines such decline of of you have respect decline on a about as if in two this result, why going quarter you forward that. I'm out? the crude that balances and will that Just and you Is respect today. better-than-expected specific if wondering you and wondering quarter with larger to a color function rate that's have during during us the

three the towards And important question But I answer it's think you all that We XX on way year. our kind level seen standpoint very in a the timeframe at Yes, that direct out been commented December flush the a are because said. in the positive the put we've end the the up streams dynamic of timeframe had Absolutely, generation volumes gas has early just there. you completions is November to Shneur. system fourth the well that quarter work together from at of a through as production your that the stacked margin

guidance winter and we takes our that usually saw quarter extreme and first conditions Winter some we the in this of the in Storm and during that the with freeze-offs in place As period production event. that winter given saw, the communicated in we of our with completions in producers North zero had we general expectation Dakota some particular

the two product production those got have the and first are part year. in second to XX that and quarter relative XX expected and those the here I balance of step three what rigs into - connects currently We second half them XX in you'll back connects and of up. see We're we've the the fourth So, levels to quarter XQ, quarter the would change. expect drove factors to of early three expecting active XQ, product system running water XX

your part your Great. can your consider the the emphasize Do leverage priority. preference order just that goal final talked to would And pref the high well whether the about as of towards it? in and but Just reduction? of of and hybrid talk Would as if preferreds, getting be the reduction and the buy the the be goal share curious prepared about as in a on before pref shares buybacks? question, you kind coupon you kind also around leverage to one release primary of leverage a you to priority given remarks you about authorization that

The financial events that and overall and short generation various answer structure. at dollars standpoint those about to times get flow of is a us and those times in from give true of other to it's maximizing to about free accelerate on then the of X.X talked reduction broadly further could target. levels capital, a we yes. From indebtedness more the We quickly leverage those inclusive investment there, capital optionality to preferred catalyst excess capital We've is return as that prioritization look cash cost calculation, securities. combination first X think pretty look leverage allocate potential between that - balance the to

return publicly the an of cost And Obviously that around also prep investment financial and calculus. overall. leverage of move to cost common do inclusive what driving of have on across lower are terms while of that's that structure so, reduce the ultimate we but objective maximizing capital they the and broadly the the whole traded every preferred day and the is, in

next Chris Please question is Our from Tillett with Barclays. question. proceed with your

Do far the rig for all call. thus the conversations How steadily guess but you indications more Bakken, stand up my that back they today back maybe clarity I you're below that over as Do front. curious of are appreciate having taking be characterize you time? for pre-pandemic secret would waiting the to on there. are up DAPL? still of you on that producers Just think comments know getting generally? you're I on sort sort to counts Thanks it's what guess just circle well no there marching see levels.

we're the especially Yes, are in the is conversation towards This positive Diaco Chris. the general Aviki. back absolutely half Thanks, a year. nature having of

now a seeing DUCs out of the basin. they'll Right activity still there healthy are inventory We after. that there's into get come back

So, of activity absolutely looking and the we're forward year. is to rest robust the

the any I with point? for on do consideration situation you you this at or think to Okay. DAPL do a due sense hesitancy behalf secondary that's mean their them

all. at not Chris,

Our DAPL plenty we've ability to currently are third ability and and of to excess with evacuate basin. beyond throughout a Less other DAPL customers of our on than quite their evacuate volumes DAPL. in capacity barrels got barrels are on confident pipelines our the

As be some that to mentioned of Companies Bridger, push True as able we the another recently earnings we got are pipeline Bridger got projects aware connected, we May. should call, within XX,XXX we've end incremental the in Shortly got Bears that at and there. expansion a Four barrels out just into the month, last they've

got too, out we've with that customers solved that. and we've beyond COLT our got So, for there backups

last very second up quarter months. in third years, always several So, in that's rig Traditionally them. usually very issue winter That third little you an the active just the quarters. had picks and not fourth we see as activity generally with and

to continue. We expect that

from Instructions] JPMorgan. Vinay Chitteti question with with next Please proceed question. is [Operator Our your

flare X% plus crude? there want is that why is when I with say on or by declined on any this and more the XX% hit it firstly difficulty] gas details [technical that just quarter-over-quarter, gas respect between volumes proportionately big or was like how you better capture the and to oil delta to understand hit higher was a

asset, quarter-over-quarter a I up into driving last think, during large And our shut-ins Then factors any have the comparing from quarter then the had as we did flush the the five and you as to completions of I year. when question through around due mentioned, that, couple to we that first the there's call North Arrow of it's where and of Winter you're stemmed freeze-offs at months three Vinay, a you've number it got period production One, adding it. think great day in some the end this winter production year completions expected. of Storm. that not to for Dakota

driving we assets, going will around margin drive a increase our talked flow and the phenomenon have processing we our on basin cash there ratio seen forward. an is highest our certainly oil business a that's profile gas across around our have about, dynamic strong and gathering to assets certainly in that's favorable very growing help utilization and As up as which

compare development place completions last, continued more that try and But favorably events incremental gas this trend and quarter come So volumes of weather in water our that expect the you've driven to online. the we to when do you to by crude overall, GORs. volumes got took kind than some as of it noise

one other then And Thanks. it. Got question it. about

So, you in that kind of the benefited in the mentioned POP XQ. of contracts kind strong Bakken

dollar quarter. margins completion and It be some remain and be second a uplift looks upside should the considering think we like in about when trying how activity to coming on if understand wanted you could up volume of volumes to half will think much margins case? there if that XXXX same, any understand in second about would the impact especially and you how details give Just lot of

Sure.

the we the contract basin but our specific our and to that of gotten and we've made what side, proceeds quarter now current specific we've $XX number talked was into where it So strip the publicly our of you overall range. of time talked portfolio. guidance incremental locked in with - roughly have haven't overall tell initial around I first margin XX% think relative hedges, - customer percent to of which our the a to million can the since contracts, of on update at for for disclosed generation levels we we we generally down through a lot about with we've about is, in margin

the So, we gas, margin we matter chain. development locked more particular was on generate that outlook the and where a side crude, also the prices good structure more does part improving, which look When on It and through overall gather to now and having our generation, volumetric program. of upward value whether process mentioned, volumes in bullish hedge chunk and margin the or been just moving; and I on have you and fees at in In as GOR are the has where throughput, get gas revision that our bullish water. a the it's uplift outlook but commodity of our through

per is on basis that overall think it higher the on the on water. crude I the so gas is And the a and molecule margin than

towards is that generation and across cash flow a margin overall assets. favorable the So, three dynamic product

here. question if I last may One

having much you that. think towards hear XQ you here. to there any So mentioned that completion is upside pretty kind want of basin? Just in you're Jackalope regarding tilted Do potential producer conversations

that there Yes, is. think I

capacity sight certainly M&A have stabilized line quarters handle those and be the asset think we well two the some as I coming improved, there and got some basin our out. year. And play potentially or I But more from think I activity been probably be some in continues a commodities of will XXXX think I factors in those there's to to. active volumes think to decent of as positioned that standpoint

That's changed. has several going our deferred part Specifically late by plan, OXY activity incremental - there completion of continued the we've with we've opportunity not got driven mentioned has XXXX program their is to appraisal which we forward accelerate that and largely 'XX. OXY development, got well to think but was them.

we whether operator. from obviously where and seen potential position, think I that, commodity over continued good there accelerated Samson. In I prospectivity acquisition EOG the through around development see it's time or addition given are. an we've to around be over has them And divestiture Continental activity of to think just their time, prices Chesapeake

throughput play that. kind you up basin of beyond, I outlook 'XX are So the longer-term certainly and positioned well very the our think assets think development well on we in for to is setting a and part incremental and

over Bob the comments. of concluding have turn would like back end We reached our Phillips the floor I for session. to question-and-answer to

assets Thanks, of morning. what first of all and proud really And we're to for quarter this of Great. us joining in thanks year. the you operator. this the the Obviously team did

that revised an there about a is confidence degree have we I our from this, guidance. increased XXXX it's think if message of

transaction. just Holdings put guidance announced Crestwood out the want to when we I So, that remind we that everybody

us in the running better So, the Willow prices rigs Texas. for we it got our the Arrow, because year was. Jackalope, on than Delaware, Barnett up higher and shaping is Springs of Nautilus in in We've materially thought systems gas

we Our out back we G&A, million increase. permanent expense that's a as last that volumes and $XX going operating and cut to think year cut, that's not of come

make out to they're very business. a corporate the governance, attractive investors differentiate trying offering which and taxation to January gathering to job processing there is of And We our of that maturities. been probably margin fossil on deal the did or issues is million it's was team a policy long great getting to that's low best plenty plenty cost. on that the we got progress be does the speak time. to stock of MLP, is can The and believe the the can't we sheet liquidity the when we to pretty very all our broader in changes to administration's in of best run it towards balance Our a near-term fuel. company, flexibility in out great best continue to That and MLPs. a at space, financial think best pushed in investors. We've mid-cap balance attractive sheet, do this continue What we small off in on shape the $XXX

the of performance I So, do want have every that portfolio that of here these issues. we team and are Crestwood to to all a great the continuing quarter. for through congratulate that Really employees at proud to navigating we job leadership the committed have

we're XX-year these midpoint come on going if records be of our in we at again they to have history and guidances, an all will think in Crestwood. XXXX I outstanding

week. this very outlook commodity in at very, at So, we're with key the of areas, future. optimistic time we'll in morning. good day leave of much. And you point Hope thank our that. least price customers with really it us this having rest all the has the operator, with joining and And you very a positive the safe rest our for everyone all we're conversations of Thank and about that

you conference. participation. today's Thank your concludes for This

at lines your disconnect this time. may You