Crestwood Equity Partners (CEQP) 26 Oct 212021 Q3 Earnings call transcript

Good morning, and welcome to today's conference call to discuss Crestwood Equity Partners' Acquisition of Oasis Midstream and its Third 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 Commission 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, distributable cash flow and free 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

for senior following analysis prepared Phillips. the remarks. time, will Additional call Crestwood's this the management at will of session with the be members available I the And over question-and-answer current Bob team turn to

We morning, for operator two pleased. Thanks, morning you our on early good would some a and take you, releases, new also issued everybody at. I encourage Thank and the joining Josh. we're good It's today. we've This Thank everybody. to us got website, brand in which stuff look to very presentation press posted investor it.

know another forecast. exceeded to you diversified third highlights very First, midstream financial in of the again, and to that really we another quarter operational once I report consensus consecutive quarter and our portfolio quarter, outstanding let pleased good It, we're results. want again

quarter So, really proud of that we announced. just the

Importantly, the fifth capital really our we Crestwood within flow spending to generated growth during cash below, than target. maintaining for basins, distributions our our kept way. to That's at capital less well our our free operate continued across times all leverage optimizing budget. or assets after We're consecutive We And quarter, quarter. X.X and the we this important discipline, us. approximately

Bakken will it's greatly end and of hope $XXX announcing guidance again, very of All well both of a contract not that XXXX deal we progress million those in announced, upper transactions in We to do EBITDA. this Delaware while while drive going that our continue of those Powder River really adjusted -- all the that too. with and our our up I the of big keeping good there. our which lost we're relationship, Continental our this, Basin that exceed million of operations was momentum today and exceeded and basins range, our long-term all expansion Basin with growth Novo expectations with $XXX to to really announced in the made do

a that the going our board. also of the across during teams obviously, job of great very third did So, on at lot all proud I quarter. we've got Crestwood am, the

we Midstream into press where in on transaction working While were acquire release, to announced $X.X about the Oasis value, and Crestwood stock we definitive second a that agreement a entered did cash billion.

is to returns footprint. investors. as win is exceptional and Bakken. for really footprint for really year to OMP Midstream and our a $XX capacity combination can increasing the Oasis the CEQP, as revenue industrial limited look think company enhancements. a good locations saves an for Arrow Williston cost million very, savings The definitely we creates opportunities million XXX cubic producer this positions as a Oasis that logic, our in by as all pleased Bakken. the we assets for how It triples And all as capital that last might got note about very system. as I long-term portfolio about situation flare when great on another We're our and GORs I we smartly basins, in our operator and processing happening is volumes for This it We a core should expand They've Delaware those million this We've bodes combination partnerships excess both Arrow sense while of and [ph] tracks complimentary master which begins messaged couple in $XX sector Bakken to our or midstream gathering our the midstream think well merger our footprint of the the gas to in improving both excited importantly, makes the in And consolidate, most are deal strategy. wide, processing excellent Petroleum, this volumes midstream read adds capture But generate Really deal. Oasis call this basin, future. in increasing, our commercial feet a the than in Crestwood optimizing growth year the of top with our I in better for win, you'll gathered win, recently gathering numerous OAS. more day. you through including X know, dedicated doubles per and materials, synergies Bakken drilling three makes the acreage, increased Tier inventory about years.

We boxes XXXX financial We of think for follow-up all this part Reserve is a to early the buyout which year it's Crestwood. great a to creation. Stagecoach make metrics, the in have and First and very deal the checks divestiture, great in completed some July, we deal going this important for value the

and new market for hard transaction me and equity liquidity. balance let in million I structured a our Crestwood $XXX gives issue going at we're And you'll our us. substantially we to billion Crestwood areas common so to and us deal, think protect in conservative that an XX.X $X a then of said, questions metrics, So, million grow to about maintain billion. at give and yesterday's as and transaction transaction know our this you is know close, our the compared And we enterprise it -- in cash best CEQP some that It's about and units understand $X.X to I value. provide valued sheet. worked cash and to preserves very transaction have sheet have the preserve allows then this to it's It’s please I specifics. balance going

multiple The next XXXX So, eight implies box times flow, purchase seven price multiple that XXXX significantly a definitely bring to clear years down to over on and cash of XXXX. about and the checks the size couple scale. EBITDA in opportunities on with

beyond. footprint. target leverage The As deal enhances is over profile. It combined our preserves our and our the we the overall credit X.X execute we times accretive realize be our and cost at to lower that commercializing on businesses clearly maintains integrating substantial synergies, and It ratio liquidity driving going in XXXX time. strategies and

and And of on So, as the players financial greatly Bakken of We've alike, calling our got group have with Bakken it sense We for The checks the which said, of is our an optimization and still area. and core well. been XXXX the there COLT profitable employees standpoint. Arrow. logical combination outstanding acquisition is important the most investors since know strategic of which We've and and those that rationale XXXX our industry the contracts very business place I Bakken all at It really I will We hits infrastructure, oil been to boxes and trade mark make and midstream there is points. compelling, continues from think for footprint, well, our expands out run it existing favorite operating do for think the consolidation prices. deal clearly great business. and a the our all to high all producer importantly, relationships.

checked lot will processing makes four has the after combined production acres our system and that morning. In Crestwood continued the The see merger western to and XXX oil probably close, million as Williston utilize is on price It's a over Arrow plants to is our more Bakken of basis, expanded quotes across have customers well million excess position day XX% fact, the approximately trading player that dedicated be of pushing against across gives day Williston us scale, Basin. oil a With XXX midstream Den capacity, WTI, much bit importantly, Fort processing on of little to for us third-party has plays plant immediately and us going to giving XXX,XXX exceed three all our major development about the country. Reservation, we capacity give a this we us we of the a clearly the a will capacity. netbacks assets a increasing the for now Arrow reach extend up competitive beyond utilized, top will That a capacity. Berthold in the gas Basin. Bear Indian and from processing opportunities And about best available expectation

So the follow many current be production our Bakken, Wild processing the you the capacity of complex. of Dakota Oasis Based processing system do, XXXX. as business, a complex Basin and to our Arrow the constrained know combination investors great forecast, Petroleum Williston Association early if Arrow North on plant synergy Basin I in as gathering our in expects

room are volumes in we additional So, A increasing the we're to getting Fort aggressive that just customers that solving ahead chase the do of existing current the be curve, on with. and Arrow, area not would to don't acreage of volumes business we third-party lot that's with really like Berthold. that about, know opportunity have only for but

or our Arrow system. expand supplies. to platform clearly with be going alleviate on We're a be to gas is going production the for this opportunity potential more the great on to us avoid constraints competitive third-party and So

The third-party Den at business the to we've didn't plant. expand that Bear been want for a while, is but something looking we

macro is icing and or on the across is million the synergies So, cake us in savings near additional for Bakken of environment revenue And the the of industry term. $XX transaction. and year great I The important in entire estimated to this a fit year growth said, ripe cost as for is $XX the strategically the for this million a just commercial us. a enhancements

of latest fit gaining investor crude throw that That and forget existing might system don't the and this gathering about produced of system system oil XX,XXX day Basin. a nine XX,XXX barrels with map Nautilus asset with wasn't Let's a out Desert in about the point disposal slide presentation on down a barrels in and the day through Delaware. in I also just our with gathering a about We're water the Delaware our illustrates capacity. acquisition. capacity Hills disposal Delaware the complementary

supported development going a with Additionally, we're by partner dedication on to high-quality that their these with forward. excited assets producer very were plans

expands So Bakken and areas. of combination footprint great Delaware core both in really our a

impact about said, Now on $X billion Pro the meaningful forma, a and will I from to Crestwood's as grow value, transaction scale. enterprise $X clearly overall financial our has position billion.

$XXX XXXX will annual more Our forma EBITDA to than estimated pro adjusted million. grow

Our to three which the will continue of XXXX, end our times in where by is to X.X is leverage be ratio leverage today. the

substantial So, their total view positive very sheet to and as equity leverage-neutral rating the believe deleveraging Poor's preferred leverage agencies if of Standard balance we in it's our total you this strong the the calculation. & transaction both And factor will with coupled Crestwood, scale, in does a given that enhancement transaction.

to Dev; to to So, that X% over approved about returns of the a buyback accelerate deleveraging the people benefit investors leverage-neutral to our cash of our top free in of Corp. lastly, the by cost total that to we're confidence distribution runs profile previously want cost tirelessly the common the further moment flow personal and I to that and want Bakken all will $XXX merger with as I closes These to quickly led the And call after and that unitholders, our do by support our and many the take over growing of done. bring Halpin, in our months this to beginning have allows Hoorn to guys lower be structure. our [ph]; turn business, capital cash this CFO; leverage a program runs get to deal Van Crestwood and really guess, enhance all savings Aviki free couple announced and two we deal I Will going the years. And over equity last be combined flow our Robert Board to capital team, return too flow, and staff, complement plans growing preferred our remind Diaco those runs of capital ability to across group going ago, couple to opportunistically Ops. to I three bank integrate quarters Crestwood and increasing free given next the worked Robert, we out. And before enjoy the their XXXX. our Curt million to just that Moore us cash

know, this acreage become that veteran great strong a and our excited and Danny for to the safely our assembled should my of group. into across up them, strong, have very a North work are team. transaction. Midstream first-class these unitholder integrate develop FDR have partners really complement Basin, as Bakken great good Dakota to the going responsibility. assets Brown, as stronger a Oasis the Oasis [ph] point first-class Dakota. a a the bit have their Crestwood. to while. employees They're team I CEO system. and assets. and have we largest And Bakken It's following a going I We're These Diamondback I working North good we're to They're and We acquisition midstream Arrow well dug of family our well. with platform. going a well be bigger, teams We Williston better, to of through fit through Petroleum developed proud there franchise. Bakken share both We're we And major you they E&P to Petroleum they out build financially of working relationships group how operator, each customer businesses relationship. those and this their chomping are process. Crestwood the They've been into They're producer to very the us, together. have the his vision they and to welcome team. Crestwood employees Bakken best at Danny counterpart, in and is and of other's both on Oasis I with also a additionally, think We know want on

that discuss want outstanding our to So, to financial kick third I say in our quarter tonight know turn Series On outlook. Houston. World note, have I you'll today going Rob go And it to we Astros I'm the just off over as to and here questions.

quarter. us the Robert, third Okay, about tell

on The time first, Crestwood. in transaction, expectations. strong to the Delaware and Powder very Bob. our commercial diversified at you, To our make Thank Basin, combined new results results Oasis third exciting River touch continues asset and be with a base our Midstream the this to outperform quarter the contracts

payment. we quarter, free generated distributable in in $XXX adjusted $XX million million This in distribution $XX and flow flow EBITDA, million cash after cash

accelerated per targets. in long-term Gas the Morgan sale the record December X.X declared paydown Stagecoach to and resulted also of Services of ratio a outstanding our times distribution of quarter a revolver, our unitholders Kinder for which financial $X.XXX our stated to achievement leverage We of the X. these on Directors difficulty] exceptional and completed November results, [technical borrowings net of used of the on Based the Board unit common on XX, proceeds

from producer our benefit XX% The at XXXX. of in segment third continued operations & to for favorable looking Processing increased quarter $XXX prices representing resulting a increase Gathering Now quarter. EBITDA activity, commodity the million, the of and over

River increases material Bakken, systems. the the by Barnett gathering Basin quarter, During Basin, and gas across Delaware the volumes, saw the highlighted Crestwood in increases the Powder

our Additionally, in POP commodity increased Barnett. substantially contracts quarter, prices the in which increases drove over on our contracts the POI Bakken the and

our to upside hedging program, of if Conversely, we were prices program, catch While tailwind. a manages active majority a of a have meaningful appropriately have a are risk contracts fixed exposure we part a an prices do commodity as management conservative reverse. downside when fee, which G&P potential

Now segment. moving S&P to the

will close Services November. will $XX or As This to in result part revolver. on proceeds of expect in subsidiary, MS&L when to this of Twin we In million, Crestwood of additional $XX Tier segment, the the the Gas divestiture [technical net Stagecoach to we of third past flat the final sale EBITDA Pipeline XXXX. difficulty], paydown the to quarter in $XX which that use million was totaled compared the million an

the we prepare upcoming season, demand despite As market third the and meet well-positioned backwardation inventory increase during the our are asset NGL for storage optimize to to in capacity we winter quarter.

year-end, XXXX. of to and our look As the EBITDA price strong on current $XXX the range expect forward Crestwood to performance adjusted we exceed we million high or $XXX our to commodity based would million favorable meet guidance for environment, year-to-date of

the have been months. few As the these of at busy we very past Bob call, said beginning

our long-term the Wyoming. of Delaware agreement acquisition, River large Resources generate assets leveraging Powder we Continental in In Converse the to have existing addition to the the to job position Basin, big Powder a development County, support teams Basin. commercial exceptional our an into them with done in Midstream acreage the a wins entered in in some commercial River In and Oasis Basin

high-pressure forward acreage a the look is we position Horse begun exceptional Continental them connect construction to building an a and to line coming our on complex. relationship have with years. transportation long-term Bucking Continental's in operator We into processing

Crestwood capital On the growth based Crestwood come all to into over on the project, to timing this the connections services technical Based well Crestwood for is of working to increasing size XX flow. initial our still returns. Marcellus announced which strength. project operator, previously System $XX as Willow we has the stations months. retained Lake capital seamlessly our to and will volume million, several outlay asset be on demand operations and cash funded with recent Delaware congratulate in our a expected million are financial drive from for Based our with meet initiatives, and year-to-date to on next relocating front, in XXXX with Southwest gathering expects teams $XX significant expand growth, investment of range area will system portfolio. financial result G&P In our XX the the commercial, pleased Basin, for to best-in-class the and manage I that to the relationship over compressor of Novo want new results differentiated our itself strategic the

As base. our Midstream. more to record acquisition of set relevant employee strong and we have foundation core participate and with their enhances also the that for of financial express provides and our basins dedicated logical our investor in in transaction may and a base consolidation of result with relevancy Crestwood execution, industry a This with track our scale Oasis backdrop the larger

the several months, and As over our quarter to work outlook implications around we and into Midstream the and are transaction we commodity price next of the close gathering the by assets. encouraged year current processing the final the move Oasis

combination create financial the ready the Oasis that our legacy operating we're With leverage in the about platform future. Midstream the provides, up to to for and enhanced the forward questions. and unitholders look We value for are both line to using our strength and we open with scale, the expanded operator, that, excited

you. Thank

is first now question-answer conducting be [Operator Our UBS. proceed a question from will Please Instructions] We question. your Gershuni, session. with Shneur

kind morning the takeaways start it's that be at the transaction But effectively leave enhance Addition to Maybe an so Good -- preferreds. off, and just how your we stand out free spend. put in that to don't is would that everyone. effectively the of to of opportunity to as your had Is slides no and us of I through Hi. distributions it forth, deal, wanted to and mouth where words and understand to the to transaction on generate with. have CapEx want sort wanted you premium a kind you flow after depending leverage look the push that to provides should neutral you at deal cash otherwise all.

your basically, And metrics putting kind all the together, pre-transaction. so financial path we as trajectory same and all it of like are on

And a the and upon so does that preferreds back to mean opportunistically of that close transaction? equity be position you're in buying

as of deal which their significant as them great are and listing the -- Robert Dakota bottom standpoint. get that's having processing on and a a revenue our as wheel a to Well, are talk Shneur, the pursued from of even expand like capital cost X on to capacity we not integration gives basin talk And We opportunities capital This Diaco processing our beginning for those. us. job activity you have really thing, There Will in line. today. of beginning good flexibility talked Yes, core third-party enormous out the is about. system some Bear that's real, is of those straight savings, are which key a deal acreage. the that into will and some North standpoint have acreage, system and really up area a accretive more. well of absolutely all capacity. we the Den timing enhancements This don't went Bakken. could complete there A pipe at more. and of many drop and are The beginning. Western is combined going not that to in amount a Tier did bring to those Commercial just saving we real the that both our we portfolio lot and I the gin whole is to look I producers about about think to those attributes, new development will along plant, There more, are

difficulty] had the we so, and we're customer producers, that. to assets We've our integrated integrating really This provide from buying, service third-party that based processing gathering continuing great in, dramatically [technical And up, we history seamless, footprint optimizing. around expanding after of business is a in. and and then getting well

Crestwood. we in I'll of the the combining let We to a next about actually flow, Robert our enhancements grows forma, transaction, Chesapeake is or our didn't of over flow customer, Gas talk We significantly separate We free any look to he gathering and leveraging cash capital go bought history our assets bought substantially great I three to We any business. we but When enhancement, mean beginning our out service reinvest from all anchor revenue the buyback that, into wants investors. of gathering Powder, this substantial standalone any or of providing the back either Services of a in Just only have system. the bought to companies' at optionality standalone system plans. carving years. and the that free long benefit message decide type QuickSilver revenue the two third-party how the cash not of for Antero's that it of substantial QuickSilver. I we increase business, but that. those just for if off about pro you put does assets increase that -- integrated from really

dealing stock. as what do strategy a with overhang by some will haven't received We people the in announced be have program. for an We

with partner very limited We to and that our have elegant lived with and solution. of XX a general our units years outstanding dealt came for we XX% partner owning

investors. growth in Number And you operationally to one, going that time. lot it, to any want or flexibility more add our numbers to to we're some I way yeah, improve returns a we've talked us left. is about free it Robert, absolutely add think it gives accretive helps that basin, do flow, it. which that's commercially do strategically So it best cash the increases for of and to two, and for got us number

I think, other the Bob point hit strategically. the and our Bakken assets, highly on These right drive key capture going that. to top are immediately each the available and in to value through on of synergies with complementary identifiable up about footprint enhancement Bob forward. competitive talked

in hit I This generation. X% on buyback difficulty] $XXX of around implement more flow post-closing key firepower every million the think plan this our the we our from the execute of sheet look single we is the today financial elements. to inclusive distributions, the you we financial we deal [technical program. to do cash transaction, bump cash to we And that have did balance all generation free enhancing after enhance to flow to than as prior at element

So respect no enhanced. any in just there, change

Perfect. Really existing kind quick ask of If color. about just a the appreciate can question I operations. the

terms rig Given are PRB you see crews And of in well XXXX? Bakken a growth. thinking the where into today, about similar for trajectory question given your where completion we see as I guess today, how completion we the count

the environment good of producers. outlook intel of Shneur, hand our our and G&P, it runs Commercial to has that, start runs Yeah. is commodity and But Diaco from all short both of a very XXXX on Aviki, very -- real-time price the then light for in favorable. operations I'll it the is I'll those who

every operate degrees. We varying we in continue in to see which across uptick basin to rigs

the activity Powder completion of the to going Bakken, all beyond increases from think see to continue that we and Basin. and the forward. outlook in producers to XXXX for the Delaware And We going in expectations in in our add is

So, to Bakken talked the and XX Basin, one start when points you generation we a that our production continue we to we see to GORs side, the year I as translate to it at Arrow the into And positioned up XX we've will particularly the Williston the as year. improves of where at the relative that meaningful gas top to next system, up operating increase uplift flow look we're there asset. about, the that the completion have of trajectory talked expected the is on see that having think we're in complete cash this utilization. wells gas about And we in

think so, parts. constraints that the ability with the any integrate business the completions our our footprint the customers to by alleviating choice, them for Arrow of acreage margin footprint the or acceleration I We've program And of see be key is out one of of portfolio is Powder gather execute process potential an on may in elements we track optimize deal that sizable our Conoco, be in to activity the announced of with new we to their think a delineate and position, In see And years, then long-term. and this lastly, combined excited transaction active Continental, existence and the Delaware active really program on the an today, the their one significant have there. there. component significant up in-basin Basin, going we're other next they River to for no signed a few diversifies which surprise. new They significantly as customer the over continued to the XX balance continue Oasis of at I

mean, up So are stacking favorable portfolio. G&P extremely the all-in-all, I for things

to else have add. anything don't I Robert,

it You well. said

third-party I thing. that. an not or gathering bad a MLP business, third-party business that subtle last down guys owned they over But a they off these job in that the add of me enough Shneur, Producer the a build of of sold to I with That's into opportunities, unique them many know. and years to their lot Oasis they and and own all are to the when supplement or and long try particularly and it. in them around been pretty processing. of still let to is or IPOed developed just you've at done know set third-party add Well, their systems -- We guys trying on couple either them nice distinction they reality have is But the know fabulous ultimately we're gathering own a system business there's the this controlled throughput mean, drop opportunities. have them. a reality system gathering that

We third-party. are independent true a

we in us you by don't to processing capacity guys, in despite anchor better will, do the key competitive exceedingly leverage, business and the to so, future did they third-party this couldn't business. is this transaction, because is they miss had of efforts, Oasis availability system. go in ought gives go they aggressively And processing third-party how in their the their to the pursue the capacity best The Whereas than that aggressively tenant. Bakken important substantial maybe past, pursue adding extra if

can't the great system. capacity a gas excess we're a an the provide side time, over of works our the own what best can how both Oasis third-party Petroleum, We're independent just manage that is do of Arrow third-party way. produce developed gathering service on So, provide managing better going to It to for play. going I to western tell but historically, you, of was just always out to benefit and producers we're worlds. also going our the much in

nature a forth, the bunch there I if or over. ability buyback. appreciate jump not in I'll strategic so color HSR to back and and the the to opportunistically questions really Great. of the still are on continue around transaction today queue the of

from Truist. question Please Tristan next your question. Richardson is proceed with Our with

Congrats the guys. morning I leverage. good on the appreciate on comments your announcement. Hey,

investors. I that long goes think with a way

versus for be the the long-term target, that X.X company? could exiting that, noted think is XXXX Crestwood's to suggestion You the think combined long-term when a I the we there combined X.X that for is there to about X.X, And the target company. new X.X

think, are times I Tristan, of kind The target. operating the low close around our to guided the has business forma to range view feel neutral We've we in of that we transaction pro X.X where of end not today. is and changed. long-term comfortable a where is our X.XX

just that's capital deployment or that a the flow generate we year, optimize, free As leverage incremental from the outcome standpoint. alternative cash absent next of strategies to

X.X flip. the we we significantly assets, think incremental and to existing we code. at enhance as to around I investment greater work And in comfortable put for feel our opportunities would things continue that look to returns hope structure time core in capital zip that a in that

company it, CapEx just Appreciate opportunity there, Bob, supply But And least But synergies. standalone, is look talked indicative set, up the CapEx of opportunities and when the think two about just companies then period you look to continues at recover. the you and maybe CapEx Robert. this combined obviously at very frame annual year profile, opportunity what revenue unlock as forward? might CapEx of going a low us like for annual to side demand I

can we're of that going part got the of in a a least Petroleum [technical significant difficulty] your maybe public points, going amount pure-play. They just as they're they're you you substantial record this and suggesting can be to to of is flat, give I during up cycle Well, there. now. couple triangulate a their Bakken on acreage, Oasis own. keep on They've volumes right at but are

we kind see diligence of looked I we at of don't is additional described of describe this the way us. That's significant amount to we it. as activity, flat a up would as kind way that they've it it, So, to the business

Again, of what rolling the that into with acreage back amount kind that don't off. of the activity to large here these We're not from going could the some for extent positions years there's based time. being or real of Petroleum's team are capital his a There expectations pretty We opportunity may are So, and of that. the in relative I historically to be Diaco based flat associated some And can renewed there. We that's these that in over on for have we bring spent baked undedicated with that development couple contracts other to up a bring Oasis significant of the just forecast. come fall have in don't on we next level. slightly prices. business have capital whole lot on to accelerate to parties. up That in capital third that G&Ps XXXX

to up. So, to I want generally neighborhood in to we're maybe the do … Robert, going same you think stay slightly

material integration to revenue see manageable capture opportunity see I and two footprint needs changes each if look very don't or be we're we of their I And you the of say, dollars. is of to combined Yeah. XXXX, going the companies any that. some each systems for think the connecting to their Tristan, that do of around all independently, capital kind have would synergy at we -- through physically, the kind of which

as deviation of material I standalone I just from kind on we've communicated on think what don't communicated a think what basis. basis standalone any well. So, generally And a Oasis

you Thank it. very much. Appreciate Great. guys

question next question. Ned with Baramov is Wells proceed with Please Fargo. from Our your

the Hi. the the has Bakken? low bit the at specifically, maybe taking Good detail question. that talk you I capital reimbursement the in morning. CEQP OMP? does arrangements it Thanks same place the little on about from more CapEx. And connect appreciate Could in a bottle benefit producer for

Yeah. This Diaco Yeah. Aviki. is

be their and Arrow So, the well activity to of with wells those that provider midstream the responsibility in contracts the in the for footprint. at the The capital arrangement. connect are to is their forecast, going is line as connection dissimilar they capital

So, a pace activity with is, little to going it. again, different. subject to commensurate whatever their be that's bit But

then it. Got … And

color largely deal. mean, of just there. the We on was But little a a That very arrangements, not -- inherited add public-to-public I that's deal. OMP, dedicated. bit modifications. of existing additional we been was previously some part with the had I that modern contracts this got acreage OAS

just OMP, OMP and stepping you what go a sense get the relationship So, the was and OAS we're contracts between look in those shoes. at can historical and old for

of as they same contracts together. they synergistic very Arrow, are we be the but we type the that blend have not will two systems So, at

Diaco. where just more they This And already. footprint let Wild me This Basin one thing. activity. acreage add The is their and predominantly developed predominant have

lot So new activities, that. with development enjoy synergies and associated we there's of a

there ownership place more for it. in Will Petroleum for unrelated one this. provisions Got Crestwood? Thanks in And be lockup Oasis question.

that Williston say, around say, standard around company, lockup would Williston long-term a critical there long-term and be strategy basin. Ned, would their on is agreement a as provider entirely will with ownership service the position. their I are production. Basin Yes. are we we've provisions development them as They their plans, clearly for of pure-play part discussed I of centered the

very or customer Crestwood. aligned I them as think to unitholder important an all Crestwood So, communications and to much they're with benefit also important of an

lockup go a customer of provider how we answer view long-term kind they it. important it are of period them us an as as that's partnership of as service an them. with we So then provisions a There and forward, for time. And for would important

Thanks, Robert.

Our Elvira with Instructions] your from Scotto [Operator next question Markets. Capital with RBC question. comes Please proceed

A morning, Pro of Good volumes much how Crestwood forma would acquisition, couple questions. thanks. to everyone. follow-up exposure Oasis have? the Hey,

Yeah.

for our and in kind They'll will Oasis volume on forma XX% the between basis of become pro total at customer. constitute margin. So, acquisition, of total largest XX% Bakken,

question. Okay. ownership Thanks. Oasis What's another appoint directors? then, And needs to level to maintain the follow-up minimum two the that

is this Elvira, Will.

Board pro So, they participate at the XX%. dropped and CEQP They below rights director one to to below ownership. XX% level. They all forma of equity dropped lose

transaction, couple Crestwood might sales are a then me. questions Okay. just that there more Pro And potential for consider? asset any non-core forma

our portfolio around We today. to always in that and the divest it's that as I with the that things and answer I terms capital think, for potentially to love think been say what opportunistic look look investing our of are what's the would not. Elvira, in core the at portfolio to in We business, us consistent looking at past. sits is it optimizing we when portfolio ways

We behind of have play our fundamentals positive and tailwinds real assets, a XXXX beyond. providing of each into at some lot

and I nothing of that us. less thoughtful there's are to continue very to to assets around portfolio So, think optimize in the and imminent we'll assets on works, both adding we areas but divesting the be core how our core

And for the thoughts of acquisition plays on Thanks. me Shell just that base the then, last Nautilus question then Conoco's out? on business, is And Permian the Acreage. some just how Great. on JV,

Yes.

think through Conoco committed They meaningful swapi with view I we've the an taking Conoco real meaningful to no over in significant of communicated is way change the with Concho. as prior inventory our discussions. relationship We that is position were Delaware a basin net in Basin. a have. Obviously, positive existing the that in to acquisition customer clearly in what this ours And more their of a they creates them. now already position.

we view on side. it So, development the very all-in-all, upstream positive

be at as our asset long-term. imminent at but the with nothing historically, does We'll to solution point. Nautilus. potential there questions create venture Shell's think joint around a part think it we've I And of the that, long-term I optimize obviously there our work investment to to partners as love continue a this in said for we'd

you Thank Great. very much.

Securities. Kyle your Our next Please question. with from Capital One with May question comes proceed

good everyone. Hey, morning

that? OMP with that's this question guess, Just a and I the to any will acreage do in transaction. -- Or talked Are that and about path the quick Oasis on same, follow have EBITDA you some XXXX. that dedications I Crestwood recent come that guess, and changes year trajectory? you anticipate expecting and expected more to associated XXXX

No.

business outlined combined forward. plan, we've company what consistent OMP their in think I is an the from OAS perspective going with and perspective,

what with with Oasis months, consistent over close several in the they've I very looks think the good publicly communicated their got So, what expectations development working our Petroleum are relationship obviously, is into last And plans. basin.

it. Got

the mentioned one around, shifting Okay. And how new color any capital you I Thanks this to provide volumes? be change Maybe looking but you I expect much with to when any forward? added maybe Can do going for gears, you year, there's guess, then, significant And no the you think volume system? anticipate new at question, expect see that. agreement Continental. you to

sometime volumes span but midyear It system. our Aviki. to depends Yeah. could they're a building to the on This some it the From XXXX XXXX. end into bond XXXX, that Diaco timing effectuate end of start between just is their midyear perspective, should facilities

some project, we'll XXXX. have our The capital The already has up second that's of before question as goes, you the construction XXXX. asked, we in capital and in as midyear that should on far started wrap today guidance

We built about feel this. well. basin reaches So, I'd say building half the say I'll we're and locations. the -- that look half a a We acreage then perspective. ultimate large confident finally, from to very XX-inch And pipe at just dedication, capital it. their know up volumes, we

moving So, forward. for volumes are expectations our fairly substantial

to all-in. million within total about the about and for XXXX we side. as half more capital year. And range It's provided the included the each The guidance out and on XXXX. over kind guidance spread as around well given soft put had we for CEQP Kyle, half clarity $XX a that little that XXXX XXXX And is project, in of

you guys. Appreciate it. Got

question from with with Akyol proceed next Our is your question. Selman Please Stifel.

Good morning and Congratulations. you. Thank

synergies you've the on quick, of that kind real just So, outlined there.

way the expect one this to XXXX that that take day realized? does the terms of guess, I really thing we from all be In of closes? when to, elimination Or O&M, should G&A,

and year kind look think as all $XX synergies that probably quick be And it I real Yeah. of million balance quick. probably of Selman, throughout pretty on actually. at When that eliminations we identified, to cost then happens the is that you integrate of side systems it's are the of the flicking the three we've O&M G&A stage quarters optimize.

XX% will full of be goal. to our then under that we a XX% have in there probably balance in realized So, XXXX year the full once XXXX and

just I flipping about -- or you then, seeing in you're just guys talk general? over guess, what inflation can you for Thank Great. that. And

can take I that. Sure.

industries out So, think, of of there industry is, are on. inflation seeing we no the across going lot different with it I short the a everything broadly, than

some I have some I we've stabilization had some of new think some in that excess of in inventory. late. not Bob think has of to across that we've have pipe the pipes, Southwest we The prices portfolio capacity. run then remarks -- comments such one ability redeploying compression in capital our around prepared program lower our as and we seen steel plants significant of and was we kind on team's areas, seen was of benefit inventory his have capital had and We've the there largely seen while our utilization the compression. is source of the Marcellus in And we have spent been a in that gave

felt in the escalation of impact that really haven't cost. So

would that, with also most highlight I consistent midstream In contracts. very addition that to

or escalators of other metrics. inflation oftentimes tied CPI contracts into built All to have our them,

right. All That’s it for you. Thank me.

Our question with Ned with is next Baramov Instructions] Wells Please with Fargo. your [Operator question. proceed

plants? exposure? provide of you current contracts your Could follow-up. my some POP is commodity gathering on the through details side, exposure Crestwood's going that strictly processing there tied to and too? price Or volumes are on Specifically, index percentage commodity the more the are taking for price Thanks

Bakken, over have Yeah. we varies by and contract arrangements where have -- proceeds two It assets location. we the by commodity I up do the have we where in and percentage generally the And would commodity of the we are of say percentage the exposure, index arrangements and I what communicated we our time, about fixed have XX% have is, fee that portfolio XX% shale. in Barnett has think linked. been about

the run that. our think significant I on as of have in it's based a commodities. Obviously, POP result revenues increased

north increased probably XX%. So to has just number that of

taking potential And on team that some strategies hedged actively has that risk upside the a off XXXX. of implementing table started for have XXXX. lot the of We for

the arrangement Barnett. is and Bakken So that's really

which pricing largest side. is liquids mean to the processing processing? netback say by I the I depends, predominantly really in on, that driven associated it it's question and the gathering it the Barnett price -- would but that, is and our -- Bakken, component gas I of on in Your

Got growth it. And roughly item. that. Thanks seems for the then included capital. more that third $XX housekeeping million quarter capital one in It of litigation-related

elaborate plant. processing to mentioned was Den Could the more this? bit it II little think I a just pertaining Bear on you

Sure.

or in payment there the like the communicated in all still to at pending settlement The million part around we the And Bear of part we've potential I relation think was Linde accrued of $XX a payment ongoing think for future say Den construction the are disclosures them we with in litigation in got don't a really, that plant. for settlement had point we've as contract there. this payments on time, of I with We around our time. over now. litigation kind to

have. I Thank all That’s Okay. you.

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

I we're objectives that that highlight meeting want to thanks, of you operational with thanks operator, joined this commercial financial to of think and and all Well, us all just the transaction. this we morning.

we either smooth we a basins just bigger free you'll we the then assuming platform make in opportunities, greater to presence or of the see cash think with, opportunistic that efficiently identified quarter the close, integrate situated capital next increases strategic investors of terms financial operate, be I we a to business similarly where stock return We'll in across first significantly as our have to our our buybacks. get a going expanding have in in could bigger or distribution year, player to scale and some of We'll have much all which through include flow the continuing Bakken. we're decisions other basins.

very final opportunities the our management was I think this substantially inventory team in complete the is program we elegant look and the that ability said, which past. and as exhibited solution to think play big at Stagecoach led oil investors, transaction, Bakken, our back and strategic long-term which, the difficulty], in these we two which number think when improves gross flow, given to type we I to of [technical the United divestiture the to First our all accretive And deal in challenges XXXX the here and has buyback States. Reserve the with position how that for ability cash

with to this start pleased really all positioned conferences we are complete transaction. once in look meeting we investor where with we're as we December. you forward We again So,

December The team our will be to typically operationally budget Oasis good some high Board able to then think the to end working great to about strategically. has our with we're hopefully, as XXXX operating hard of apart And from in conferences transaction, go been this We how guidance, and really those a all be both be you we then as on taking the -- get then closing said, we we capital preliminary XXXX, and November. with on that feel messaging Separate up XXXX that. finishing that year, track, starting the to. we budget. And we financially, start in of about

we soon have we joining all from to for talking this our our us. our ultimately customers and employees to you investors, We when look transaction. again the and support appreciate thanks forward So, close

So, thanks, again, everybody.

concludes This today's teleconference.

disconnect may you participation. at You your your this lines for time. Thank