EnLink Midstream Partners (ENLK) 1 Aug 182018 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing-by. Welcome to the EnLink Midstream Second Quarter 2018 Earnings Call. [Operator Instructions] Please note that this call is being recorded today, Wednesday, August 1, 2018 at 9 O'clock AM Eastern time. I would now like to turn the meeting over to Kate Walsh, Vice President of Investor Relations. Please go ahead.

morning, good and you, everyone. Thank joining Thank Midstream's to EnLink today quarter you of for second XXXX discuss us earnings. Officer; Vice Participating on and Operating Garberding, Executive Officer. Mike Davis, Ben Executive Batchelder, the call President today President are Lamb, Executive and and Financial and Chief President Barry Vice Chairman; Eric Officer; Executive Chief Chief To XXXX Investor and release to the earnings Relations call, of operations have website. our posted we today's press accompany second of our portion quarter report make available after webcast call, today's will also Shortly our on a website. we replay I call will laws. considered of our predictions, you this remind meaning that statements securities be about expectations during made should forward-looking conference the federal including statements within the future, the or from is forward-looking differ in may materially results Actual what described these statements.

date no statements. we Forward-looking this of statements speak obligation update forward-looking any call, undertake only revise or the of to and as

the SEC would to the Barry leave Additional for differ factors enlink.com period. the open to by Barry, SEC question-and-answer on also of statements to like Davis. press the to earnings reconciliations located operations including And cause of from the as structure actual those and available report non-GAAP cautionary our Mike, measures, certain turn measures, I what reminder heading these release will that, in information other results our Factor. forward-looking statements encourage remarks call We release start that in operations and includes earnings review with in our the the is described financial The well on of Definitions over comparable then and and prepared could and filings, the report earnings and under is Eric. available you release call disclosures be measures. made press in With as press GAAP are our in call enlink.com. now to Risk This to the call filings. at

today. Kate, for good joining you everyone. morning, all Thank and you, Thank us

discuss to this results morning. our second quarter pleased are We very XXXX

As strong in increasing the release and this results. press achieved we the our another of operations are quarter and that off for you outlook financial report we year. we base it’s saw operational strong issued yesterday, And

the As on the for ENLK’s we performance to growth XXXX exceed XXXX strong during We and expect year. XXXX. on expansion we another we And ENLK between X% new our executing continue EnLink our Reaching guidance we’re year footprint, robust of expectations continued with combined see this for across today over first not of our and increase of for EBITDA it the we’re half XXXX a outlook will believe but and businesses’ the an raised adjusted with is year of reach only $X strong milestone important result growth, rig attractive track to adjusted XX% for ENLK’s activity EBITDA full results. it consistent XXXX. in billion

year, Over are this been past focus one distribution pleased of on very areas the with success front. our And we to has our coverage. increase key

accomplishes at Our two improving objectives. position ENLK coverage

commitment in X% and declared of year. our declared ENLC at stability growth quarterly distribution the investment as grade also to guidance and we unitholders, the delivers consecutive value believe distribution financial which credit to And earlier right value the on third ENLC’s it us quarter. more expenditures, style second, with our of our greater that growth portion our result allows a unitholders. to increasing First, another closely we we an communicated XXXX coverage distributions aligns it for we our improves metrics and of us And strong ENLC to track this returning consistent remained capital position target. with self-fund with delivered increase

a company, and Potato interest our remaining Infrastructure the next crude expanding midstream where a business recent support to the role evolution enhancing to the Partners in is well EnLink will services. in their are will joined this example in a to Global our play partner in is of a core support and system in mid-July. Basin, Devon closed commercial with GIP investments Devon’s Basin our great continue significant areas. Avenger family. for positioned success key significant the EnLink on equity a in of highly strategic A Devon the Todd collaboration new and focused and chapter gathering to our as that customer Delaware growth EnLink. our deal we of this performing relationship well, addition a acquired In building all in be

team in continues all strides have strategies. that, business with the places right it And Mike over plan. we to with an growth the seven turn meaningful partners executing to I’ll the ahead, provide update the Our to are take because right on right right and our we

and good everyone. Thanks, morning, Barry,

to said, us. Barry great quarter is be pleased up As we for our are XXXX year very shaping with results a and second

improving guidance halfway the and are flow very distributable growth with coverage our raise distribution to excited through self-fund to bill expenditures. are capital We year ability our and pleased cash our we growth,

Before exciting seven I GIP growth Barry teaming EnLink with partner, build move what new to up about said an like time. is to on GIP. in strategies, update I’d our on our

me GIP expertise energy growth and I due rich bringing And markets, that in same in a aligned the GIP EnLink country’s deep basins EnLink, time Gulf bullish see have drive plan. excellence. is GIP infrastructure to answer. saw and ability many across was and of strategies. as demand the is analysts and standpoint, with to in that GIP U.S. plan leader We on move including and execute to evaluate outlook, will way record confidence story. brings able day-in EnLink marks of future the advantaged our GIP execute they growth their a also the that GIP from with closely being on executing importantly, our through enhance EnLink seven growth love of a midstream chain in cost invest biggest values Numerous is positioned midstream strong we the space well operate what team’s to and capabilities felt very value aligned GIP track our in and of be proven one and cultural with tremendous for they the ask ask the day-out. to have investors EnLink to commodity is ability approval opportunity Coast. the a with and to the plan. the investment the this great on that our sale GIP set

now Turning to seven our strategies. growth

Oklahoma Chisholm We XX% Thunderbird XXXX. profit gas growth when story maximize capacity X.X of time Oklahoma. this as will in our a Our which in and over more the time Chisholm processing position first to volumes continues all Central we both in second year. now a and Oklahoma. $XXX in We’ll be over the Bcf total for close our in in II up plant to next experienced from quarter our in to our day bring on XXXX, just compared million this gathering Bcf day. capacity Central just processing processing than of adding in quarter bring building segment quarter us. about strategy first and the we are on Oklahoma are is to-date service natural are X be we right III a to strategic XXXX XX% last growth tremendous is success momentum achieve of and XXXX operations

scale continue gathering crude We Central oil develop to Oklahoma. in to our system

great oil Our of for Oil. payoff which which with to lower Coyote Marathon Black we crude on support large-scale investing. our quick examples cash Devon’s is capital system, developments are are These system supports for higher today bolting projects, risk, we’re return the and Redbud a

Our is time Midland Natural year. system to up from this gas of last increase second XX% were across over assets. growth utilization our Basin strategy Midland our volumes

a quarter our we of system that One volumes XXXX in about volume Midland XX% will on average throughput we in we over and the are gathering track the have throughout fourth into see continue growth to Right to during past side, of volume rest of XXXX in growth to our the natural utilization and volume infrastructure with that this quarter. XXXX. XX% the XXXX On the during is crude XX% things pleased achieve XXXX. growth average utilization today, great be about place, handle with expectation the gas

strategy fully nice increase over is saw scale what expected in XXX to processing XXX%. build Development saw at million Similar the Delaware gas to is generally during III to first now volumes quarter. natural facility operational cubic of third we is Lobo Basin. Year-over-year volumes XXXX. the side, this were quarter day our Our be progressing in growth per feet the Midland and up of expansion

relationship a of we Avenger back new XXX first during XXXX. We system, service contract also gathering and the June, construction oil announced XX-year of day quarter In system. million initial The is our great it’s with expect the the to example a be the of first Devon, crude Avengers by the first a commercial are and in fourth expected up with volumes. grow of quarter Devon. XXXX. continuing us be phase flowing to Avengers and operational system during currently running we fully is to

strategy NGL drive is growth in to fourth Coast Our platform. growth Gulf our

quarter close of run of the those the the throughout Our we throughout levels continue second to year. continue pipeline X [ph] XXXX, capacity to and cadence to balance expect

NGL the a decrease from in segment As seasonally activities. profit saw driven quarter, our expected during we contribution second

capture season for capacity, this this traditionally and The actively time operating the have full at second and next of our NGL fee we to With phase cycle. are third opportunities continue our shoulder business to close quarters fewer evaluate facilities the expansion. we in

right the camp Gulf are surrounding a operating. the XX% have facilities opportunity this U.S. being by we set the along great Coast, places [ph] growth Fortunately, in where strategy fed of

explore in the We and coming our over to a several months plans position opportunities be expect continue in expansion discuss to to depth.

sixth fifth to Louisiana. is Louisiana redundant capture gas in our And opportunities Our to gas strategy growth incremental infrastructure. is strategy repurpose growth

expansions. natural across strong volume incremental throughput experience system next of gas to the wave continue activity LNG opportunities industrial sizable We see with and and our

is strategy underway years. are crude this We well three for attractive NGL an five the and next evaluating to and opportunities over growth see natural with gas,

the Our redevelopment. proactively seventh participate growth to strategy in Shale is Barnett

producers to Barnett continue capital acreage rigs. progress and drilling in more the see active the allocated with trading We being hands, make

see. We’re annual than to EnLink’s Barnett encouraged by footprint across we seeing long-term decline think expect the the footprint given are be in rate we activity year the and our X% per can activity less

quarter, gathering our first by of volumes declined pace and a Processing volumes the compared sell this flat, on transportation quarter of system decline XXXX. as only experience X%. slower For to volumes while

our quarter back XXXX. the to that increasing this solid first remain compared to of the impact quarter EnLink, business of years we think for catalyst started, weather-related and define seven we attractive growth drive profit first the serve to for we quarter of you where experienced strategies. growth our by these quarter. when During come. Circling to Segment think They some should as XXXX, wasn’t will you as of X% how repeated a

next we around three around Coast strategies the long-term. are With it Oklahoma, growth is that, next we’ll a and of growth years. ensure to of Midland majority Our financial one future near-term the drive Barnett Delaware and update Gulf on expect to drive strategies pursue the in Eric those stability our Louisiana wave in to growth the strategy to in the the I’ll three and will The highlights. turn continuously And years. centered to strategies to the cash flow over opportunities provide five an our over over

Mike morning, good and you, everyone. Thank

all XXXX. regions of $XXX year-over-year up profit The XX% primary quarter the growth ENLK with million with being achieved volumes half were From in EnLink growth quarter Mike of for from both representing first As $XX adjusted year. XX% highlighted, from XXXX. of profit available double-digit of quarter, which growth the delivered for this our achieved represents where to ENLC results segment result the Oklahoma Barry time strong next a quarter which start of solid over million with driver and we from where was cash ENLK second distribution were an both EBITDA we this growth last segment second for second XX% the and of XXXX. of perspective, I’ll and quarter the

as ENLK a growth record in the increasing guidance of earlier, our mentioned the full business, we conviction guidance, and track ENLK’s year XXXX have Barry range. which the increased result EBITDA adjusted As strong of we includes

at $X.XXX XXXX of adjusted expectation billion, by are our we million At billion are raising year our $X.XX $X $X to We floor for $XXX adjusted the X% ENLK’s setting EBITDA new midpoint to billion. range EBITDA this from billion.

cash a flow we to ENLK cash XXXX, year perspective, XXXX distributable flow between are increase From For expectations, attractive growth for quarters is ENLK’s XX% X% project and projecting ENLK’s adjusted which full come. representing impressive from over times led our in EBITDA up to year. increased times This from of distribution for the XXXX. results coverage second coverage last X.XX of strong this up expectations the the and quarter, XX% had we of at end time quarter X.XX is high the an is

adjusted greater business, to a quarter to X% results including for to portion midpoint business, range, coverage expectations. our an coverage adjusted we gains our of perspective, of flow improved which times which with in adjusted times. we and we addition great cash for expectations also balance million midpoint position free million our sheet growth EBITDA in achieving We which credit is distributable our and to times our From flexibility midpoint our our a a year. increased In distributable previous ended capital. distribution leverage flow distribution guidance strength X.XX $XXX $XXX of ability to X.XX from guidance up debt X.XX new the generation solid last leads for calculated facility. had we EBITDA of range and improvement year, the X.XX are This translating The over self-fund, with in this flow times EBITDA time across as a cash an are from increase results of the a this raised into that a we raised cash

flexible We with liquidity continue a approximately position ENLK to exited maintain billion. the $X quarter of revolver liquidity and

flow through makes targeting X the have issued above program the it business strong long-term capitalization. cash and aftermarket long-term times maintaining a the of excess financing and long-term under little Our approach only economic used lens equity of means coverage with Year-to-date, the from mix debt, X.X around ATM business. we times distribution to our our and to if which sense capitalizing assets leverage approach X.X maintaining the range, centers to long-term in

the long-term corporate structure to Mike, discussion turn update evolving. our how I’ll an back I Before is on give of our analysis

aligned fully analysis. active EnLink the is for to GIP evaluating an taking and structure First, with right in long-term approach is already the EnLink’s role

is just as for strategy. provide of that cost growth fund GIP for to capital the will EnLink long-term committed to a Second, comprehensive solution right as solve competitive our EnLink’s management

and Finally, I’ll we this through with is a priority top And it Mike. stages team advancing for that, to are evaluation. our turn our of the back

we’re hand execution seeing is into that execution in all growth. about translating XXXX growth Thanks, Eric. and our first is

XXXX that, For growth based will conviction will is and raising conviction continue XXXX fundamentals continue The our our of to may point the the where today. evolution guidance on commodity team and the are With for long-term to and paying of our our expectations our on backdrop and call for on investments up is XXXX constructive, questions. the XXXX For that based our plans. business team previously you open that off reached strong, execute the we've

will ahead. come We will Please now The [Operator James. Horowitz of Raymond begin go first the question Instructions] from question-and-answer session. Darren

Good morning, guys.

half million the what's the $XXX In operational an connects. to perspective. GMP well $XXX What's you growth expectation successes going of that on Oklahoma, some beyond, of cap think spend for out? your And year’s the to then you're in through question but the from customers the based the this shapes First million look the spend how back just on drill there. early capital XXXX

Ben it's Lamb. Darren, Appreciate Oklahoma. on the question Hey

Oklahoma year has performed half and right, expectations. the certainly, has of the through first well exceed our You're extremely

been we volumes growth quarter, up phenomenal. we were on the over we XX% just If year-over-year, quarter-over-quarter you so about look were XX% up where were the second and for has

expectations of trend year. half the exceeding As at see that of I our set year, continuing. that beginning out I Oklahoma for back the we as far the as the see

opportunity to folks take remind I that lumpy. the Now that to maybe want always

much more make of think But trend it it what period So, period. in reporting in may in it now. very up line seen the you've one than to with I reporting another is

quickly point spending upon to where As is highly far But builds is hesitate that much we're the XXXX the news too compression return guidance. it before the it. we and as very I good capital backbone the that efficient, capital all capital. we XXXX upon that get until Because earns capital well say to we the and is do about best connects spend. gone capital

appreciate just if slightly about could that. color taking before. then possibly perspective, producer Or into assets? I a and When you Coast hydrocarbons South, how that step the further at we've something Ben. Yeah, the the to east. on this kind Gulf head? value And doing a just move further Central the ability those And from in And optimizing talk about Has that backs that to talked maximize to I some different you're directional extending guys than not maybe chain approach anything of Oklahoma footprint. but with economics changed looking well maybe to connecting regard

would say different, really nothing Darren. Well, I is

could in third-party as frac we're to potential that be contracting develop for working of the but Touching where you're really the our top off it's business, look continuing Oklahoma. a you an to you'll in record been happened If We're And think that. look the day I average been XX,XXX which last at have recent for XX or fractionation all second with I we business. position in the ran simple position I is on from don't be fed can really really by has projects. driven quarter average. volumes that on you at opportunity, NGL obviously also simple growth that an Louisiana our frac to going barrels which XX,XXX of was so. the my a quarter, Oklahoma tell options. barrels something provider, head, the days, of but parallel attractive day in a XXX,XXX see range could the And months about that had we is the with

than can looking We've more you it on go to with that spent the this East go have year. And other say and share will that project a later we're those you it. we we're to perspective have don't update I a last quarter. time Louisiana? And Today, a to focused detailed projects on over from a lot yes, very some do of update at I to expect of detailed with I we that the share

advantage. a it's that Mike. having the in pipe goes and to really Louisiana and cost to time Darren, the of able from It strategies the ground Hey being around repurpose

NGLs. And so gas that goes into crude and at the how looking of we're mix

and a focused standpoint, really we're growth So, from where good three we that leg about next from very that gross five. that's that years feel through very on in of

Yeah, Okay. And Eric. that make last sense. question the me, for

Just a one structural perspective. from

commentary, liquidity As about you that structure and improved with prepared the thinking with goes the comprehensive course of right cost with that. mentioned capital in GIP, your competitive of everything

on situation you be that more up on you’re couple of to growth guys of cost structural ends structural is that where if a the a of to As looking at could guys how to give like not regard just is set, achieve post-GIP? if that going you next a transparent ratings you're where and the discussion I mean, now a you invested situation spend meaningful at does thinking for mean looks. consistent cash be bit later. flow. now bit how perspective the early amount of just on solution a there structural agencies Can becoming be more the it bit incremental coming are in color, us resolution, a what might about something Or CapEx of a a little are basis, timing the you to transparent the you consolidated this is capital that the of versus a it months, return it could leverage amount XXXX at look they how based What needs versus may around sooner as with is looking and quarters. on with guys expectations capital to feel resolved opportunity based from

strategies on it. Yeah, since sure. say, GIP have I'd the that really day and our one seven growth strategy appreciate with aligned question. might And went look, been are very Thanks Darren. we through. Great and we

as, the mentioned the and us. a is evaluating corporate remarks overall well I as priority As structure in prepared top for

of reiterate into in would something a the et obviously and a elements is mentioned, you and those is elements, one for lot of no have, we’re rating of capital top to just I this transaction of tax as that very the is sense we there priority evaluation has implications GIP And a agencies of. cetera go particular value us of focused cost and changed that investors that that this order, urgency reporting et it's As requirements, not cetera. result

the coverage mean other Darren, of I coverage for make self-funding. The point I'd look the at the quarter, at look first the the just year coverage, the is for half and

very ATM used want from we the we’ve within ratio to a be. So, little range leverage

has the should bolt-on provide to, in is follow the is is flexibility continuing we're alluded spending been spend business on to you want the us that business financing So, capital to us capital. that it capital, because guys the which

guys. Thanks,

you. Thank

question will Please go next from Jeremy Morgan. [Operator Tunney of ahead. [ph] JP Instructions] Our come

Good morning.

Morning.

to strategic build wondering, wanted GIP the sees and here you for of, the even the the what that the kind future. could as I the of bit I if here expand was kind vision can EnLink for as GIP GIP beyond to comprehensive far EnLink equation bring on more a synergies Just more of guess and discussions, solution conversations

Hey Jeremy, Mike. its

focused alignment the needed one. of we in certainly I structure to, step I good the business, that and partner couple relationship Eric around then day because of you a Devon question the are together. we and we is the I start that which that is one, at do. could the that When EnLink/ position, about when into is strategy, The very really, continue hit I mind together, ground that say, before aligned on are what of I what they had business, one, and ongoing of we number as it again about you that, to which it what the what solving creation customer the strategies. to growth and Before core the us we run on I core key core right how into cost you two do running seven position, the lens capital we're of jump GIP top of things completely execution you is together focused back we widen business think where when focus Number of was can growth feel and jump is allows to running there And talking seeing and we’re at of and look us think we a to now how that for else business. together. to do and get goes EnLink with do that as and will are be. we partner great strategically we else way is would our GIP, really and think and a what say, When So, think want with The just think on a

So, with how they in a exclude they a here to of partner deep can ultimately, positions be with really the they domestically to capability And from business, we GIP and opportunities. belief a us our what help core lot in knowledge those and partner infrastructure have can we’re and play in capital commodity a different they have as forms, standpoint. these expand our seeing can

GIP. and ourselves between alignment the about good very very, feel we So,

And go there. the congrats to want back guidance ratio, That’s you. helpful. to Thank just

is far Oklahoma, wondering what's if bit regards ahead build materialized, the of was like split your I that's as kind expectations, seems just of point? And a it what’s of and for could tracking more and you expectations, others, Devon Oklahoma Oklahoma wondering, and this Devon as really Showboat, kind producer growth, customer your just to is of and you at mix ahead that between with and your is that Louisiana here of better this kind expectations. the doing We’re diversified really

quarter, year about When takeaways. were I Ben. all ago. then where you is, Jeremy, this they this performing is to So, pass start segments Mike think of will a were it couple again. above a One and

And and would change is G&P crude look I capital seeing year, strategy at is the driving the strategy opportunity last the been the so, in across in the over NGLs. the execution business say change the half because what is we’re you around top lot ultimately year driving and we’ve business that what us, change, guidance of this the the for if of capital a on in a acting really

you see and sides among Permian. the Oklahoma So, that consistent strategy of both

So, Ben talk really plan what’s let core and execution that strategic that. again, the is good about we driving I’ll Oklahoma. really on change feel our through

of ever have a do far take while really have they for we part Oklahoma. is is first question. I’ll ahead through long expectations your people customer. not is are the Devon of from that Yeah. some comment but one of apart of I’m we’ve that the customers I only XX, detailed the talking And more to truly sure your want customer, about in comprehended, Certainly, to And been our Oklahoma XX something And time. half. diversity the part emphasize That’s the customers. biggest

we’ve what of happy that out equally we’re systems. Newfield very significant of So, with what we’ve like on happy companies where seen we’re in seen increases out is seen we’ve Devon, with while the moving volume Newfield our

The I respect think expectations. in with to production gas rate Showboat higher, that’s bit is broadly be line line might of development, with with Showboat Specifically, the our the it. next that what in Merrimack. the decline a the the and their in think and testing development wells was And has I are about said Horsefly tests, Bernhardt Devon XX testing XX X That out wells.

in other we’ve think optimal. will is way. And discover, are different of parts may showing in play too be that that this want this the the in the nothing the figuring they shown earlier don’t play good the Redbud to platform, up row. operators day to the it how quarters about second think to of I also degree last service, Coyote play is the down into first the going with I came marks continue will the a I some systems I that much crude is on the of to half. I the we’re that system what some which XX X,XXX The what or isn’t in average four growth ever NGLs along the working. it flows in diversity working X. multi-commodity our they know Oklahoma on what terms this Louisiana very discover I Oklahoma be in parts on In One But but clearly, the in may so, proof for miss well will see And barrels in the to service connecting say five out be in a be they thing on only we in quarter. that is remember sure we have wells, quarter. results is, Black quarter touched think make the news we flowed

In I shortly. it all in fact, expect And very we’re have commodities now service excited here Oklahoma. be to to contributing to three

about I little point make sure to And just might it it is wells that kind touch there? bit maybe one volumes straight you too. more thanks. what drive [Indiscernible] going if expectations opportunity one Showboat, had talking to an be Great, higher on -- less you’re higher in of there to but rates and to than to that’s will are be the expected, decline connect the

to gas optimal a the I line Certainly, Showboat to not comment IP perspective, we decide way section, perspective wells densely from there of an and been in operators, Devon surprising broadly is section degradation the a thing they need really, the is and the from think My the XXXX. a given seen existing terribly little that was spacing. parent expectations. back that job which One the already other with the the also bit thought harder, well producer Well, was that we’ve fact for fallen in longer they our is producer operators is drilled were we have in potential see. that more given

we’ll play. as I little is saw of developed see zeroing think of with the the So, as see Marathon out the Newfield not right XX, the this that terribly that what and for part industry test, bit each coming and the it’s like Bernhardt We But surprising. a of will operators well June Horsefly like other tests the on we in Showboat. recipe

a That’s mark-to-mark helpful. in could. if is hedging one past. this last Corporate seen one Thanks. Is expenses the higher this anything quarter a just there what happening else were there? And I or then bit we’ve and just than

No.

You’ve hit the nail right on the head.

So, of driving most is mark-to-market that.

That’s all for much. Thank me. you very

Instructions] Next Securities. MUFG of Blaschke Please come will ahead. Barrett from [Operator go question

West Texas? bit far incremental then Hey, CapEx to it you color Oklahoma the would guys. plans you give is can on follow-up, just in additional a it that to Louisiana? us going as be any little in mostly And breakdown us going is on or a into as of Could changes give

in the say I that and Permian. on growth CapEx. driver crude start To the it's sustain. our But, But is is changes Barrett, you Hey, our the seeing Oklahoma capital to, the we big core Mike. That's cash you're want you in want to this seeing. about that guidance two the is The is really reiterate moved This spending. would that to up I really to alluded we're want on Oklahoma. because building main Ben is growth CapEx, I quick this think CapEx step the we the just you're projects drivers to about core that around with, Yeah. be capital The excited we're next that, talked drivers and to system. the in are

strategy. the Louisiana happy is the Barrett. on the results. part of really We're follow-up in with your There just question, change And really no

If it's a you the had in gas had that quarter, business contribution, long look at the Louisiana time. best

at and quarter first quarter. you Remember, higher business, we the a fourth to that's NGL If contribution. have the the results seasonal tend in look

about quarter. there before. like change quarter you frac make, progress, good to a best on this update. looking of just range So, in comparison on last detailed the point We're Made like quarter a this still potential quarter is Really XX% second year-over-year, strategy. not of at so nearly that we've second profit talked the to take year same no compared basis, solution of in out ready next at that segment communicate can steps the seasonality the year, you over

where as want repurposing narrowing as in or Louisiana the to focus make kind more are finding of Is pipe? opportunity far changes you you on

broad a are. of group pretty is focused. We It started more We with possibilities. becoming

give being more We And able in made toward to the narrowed that. later that we've have that's year. a progress update part you toward, the detailed of

something that probably think it But have do you this later year will will be more definitive?

Yeah, that's my expectation.

Let we'll becomes me It and us more the steps in not stages. the that you for though, soon. solution it may to create say, be opportunity may have be Hopefully for grand all one NGLs announcement. big a

Thank you.

Coleman of question go Dennis Please Bank ahead. next come will of The from America.

these thanks. XXXX morning, start I I XX% to Can of a of what to some a XXXX? want you range. about talked projects Good you hit and talk if a on off been problems the pedal areas. technical everyone. to range that call bit. high-end? Great, you We've the guidance, XX% a X% the But with bit But little the for little what different gets high-end and about on have of apologize, gets to different in the lot

Okay, Dennis, is Mike. this

let's set, we off with new to make ENLK. level out that that is the X% knows sure So, put XX% that guidance just to regard everyone

And so revised be up again, that ENLK about you XXXX was up. would ultimately revised as when think

the that, the think execution the I we're have that really we driving When ultimately doing conviction So, about in think business. that's you shows today. of what what's

we're can You the executing look at just today. projects on

utilization Midland. Lobo processing this in beginning in over existing and You systems systems the in. of And the of coming --end year. The the end really in of crude crude beginning our beginning The coming continued XXXX, have coming really coming Oklahoma XXXX. capacity Thunderbird have Delaware of in XXXX, the in you in

it's how And think really range drivers. you the so of about you and of that's more of core the pace drivers When think development that. the

what look the alluded seen to do. and think producers continue we've in really and we'll development believe we've you differentiation a Oklahoma see those Ben of If that that. we to we seen XXXX at will But pace what great it is specifically

Okay.

of you that would decide revolve what it and beyond whatnot be Louisiana in XXXX? sort around doesn't So, what the frac and

and first Yeah. we the something said, growth we've are five about and you much see an that to Oklahoma the we Louisiana going don’t three around years, laid when centered near-term is really like think And driving growth out goals really Permian you those of three kick growth. off where have leg until next so we that’s to expectation Louisiana that think more change that you're in

us, stand operate Avenger, Okay. growth But Can is you’ve $XX and to it to Coyote potential I to On or is already million guess you're And something just the Black just starting there. said I is spending. are million there. that with $XX XXXX mean you've what got frame bigger? additional this for spend year maybe similar or Redbud you in like this

it's Dennis, Ben.

As say I activity hesitate project certainly similar a Devon's areas. to earlier the question did the at driven activity XXXX on about going level. case, much to this a I'm development too Todd Basin Oklahoma, in capital by It’s bit producer Potato with and on

think much So, range at but for either fraction certainly than a you've can’t year that specific not small that’s or multiple number more large the I'm got it I right range. think year, next this - of the this being point I is that. too I don’t a comfortable that

Right.

results of some you I that IG getting good is with agencies of is to the than guess has more guess been. little and that And you might rating then, there quickly issues update? back Okay. been information S&P, and ratios resolved? that the discussion they credit been impact on debts where the that their credit by had consolidation took some has pretty I but bit the beyond help had GIP, look all there that still before have that switching bigger I I to solution. were kind and the What’s it I done credit great picture loan Is about than the thought? about ongoing? ratings some a any guess something you better can’t know here, this did wonder, action, question think was

it’s for what appreciate appreciate started it’s you us, the you've structure say, we corporate calling because think and have credit aligned mentioned Hey on for out about priority that’s something that. that the as prepared me. I’d on with sense a a with that thank GIP a reminder, top the for taken Eric. rating are achieving on Dennis, would urgency remarks, when and so we it’s results, good I the and Thanks, share very questions. focused in And I overall, my of

think that’s of this not go part performance, in elements how we’ll context it, things continue one As going the it that of quarter’s forward. about ratings of to only that and lot of there also is them something but is into a which the we of of evaluate

and that’s strategy, to come policy get changed investment balance corporate result EnLink so to manage do GIP haven’t that our of also grade and something times and a sheet our looking go debt-to-EBITDA only aligned X.X our times X.X of financial out strategy the to the the plan financial and to that forward Our into to coverage structure. that’s biometrics not very but incorporate We new partner with evaluation that to anything something we’re with we’re operational they we’ll of as we’ll and X transaction. continue

anything is Devon? And then there with

structure on credit is metrics from overall and I enhancing anything so, credit and we do in the focused was how do for say we making a standpoint What we’re going the corporate structure. always so improve business, corporate to of really around decisions is

the at be You can assume to all those you’re looking metrics positive today. will

Okay. a are to going or there one counts from the one, might about me, activity seeing for - Barnett, on one you that? if I Last up just you talked just quick rig so heard one reinvigorating anticipating will I word wonder ever you look $X.XX mean what I that’s

after something it for some about give long for press Dennis good Yeah, Barnett to the time. that concerned feels that’s I’m had people really like glad a

Dow in far and JV Devon, new a to-date. this that’s Barnett about request just activity that than year the we’ve with more the Devon's actually was that reinvigoration of connected As you a quarter wells very wells more new by XX Barnett in had activity. right five than we’ve so driven year. lot that you’re system, talked saw the different the we volumes and had We've had stable we’ve in their producer to producers well Barnett connections

that As out site Dow, looking that the comes Barnett Devon line we development and far in the clear JV. on forward, as of the have continued rich JV of

that have continue predominantly drill is line Devon big of about other to it's in doing to new to XX year refrac this we Barnett expect operators see We sight the refracs clear program, And also wells. a Lean. do

don't over see last point the I a our zero the net and decline it been that that better that So, decline think place few we've on we that several the years. us do to are we than the activity, we in will by drive is arrested next which expect could X% obviously but assets completely years, between

for all Thanks, Thanks the answers. Ben, Great.

Please [Operator from ahead. next Gershuni UBS. go Instructions] Shneur will question of come The

questions good have been everyone. and a asked morning, couple maybe my Most Hi, follow-ups. of answered, but of

of just to First, credit fair given be thinking pursue the the it I enhancing. Is mean treated regardless going is simplification would it? you way to is process. back rating how a the assume be that agency just would that to credit right that about it

any my really they're a we determine particular that outcome, it's it. and will not to sure there I'm really a as involved element one all evaluate back of go would with something due that evaluate. mix many I Again, will large everything we'll being value thanks. course. Shneur, the that about think go into And those that's I ingredients is comments in

done or haven't anything This with agencies. anything is the brought Mike, we

coming As done with as a was talk new we've all you GIP about partner. agencies the know

how you through them down enhancing. until to walk in the and put sat There look. which and say, really unless going to alluded credit haven't talk again because of do that's it's we out to somebody the we do through is we're there, going item show goals wouldn't walk getting our what to this are, which me, S&P and actually with out, what we're a to its down again, this To them are so, what is X, discussion. with question have but and the them, lot is going, I be last And sit and metrics it -- going

they that that's ultimately that about will me how item think process getting to start So, the with it.

agencies of feels you're I at maybe of follow-up. raised about something had when coverages It just the think them, that towards guess mean on a your consolidated the In posted look your enough they I sort XXX. higher? I response was like have mentioned if you target looking something issue. I actually the Dennis, And fact they good in discussions the just about you good coverage? with or of row inside the just and wondering you've given end. had box, last Is leverage, just like Okay. to higher kind and that for IG And I talk the that you are for can two quarters

Eric it's Yeah again. Shneur,

coverage. as of But the think on I aware, I the any rating that agencies. credit not the into that go an It's you're is metrics and thesis one insignificant them there a is line rating anywhere think one. certainly with lot break of of don't a there

is all there evaluate also those. judgment they have they that as pieces. And guidelines. to subjective each But they and weight of think boxes I certainly how the

build and with we're pleased really the business forward of to the we've on executing. to to flow excess looking So, in coverage. on had continuing use been continuing and We're are that able that some quarter focused cash

in the up been of things in there XXXX they're have refracs. for benefit as Dow some and in one talk your the And the well? the brought for kind you've Devon the terms Barnett to synergistic been JV refracs you question. their last of of of final about about realized terms benefit we what also can Great. expectation beyond. the in own JV, doing on I I refrac just going was question, Dow other have if have since that but wondering Is

it's Ben. Yeah, hey Shneur,

and try wells to to me sure Dow I think I line period. I'm five-year But make four, I of going answer over again. XXX is ask there to of that the in there don't, question, JV, terms sight if a a your about

that. And adjusted of so, beginning to we're very stages

they of decided similar this that Devon they've the to the of I is to That's a there about decision what don't is them. too but and lean only hesitate very I in prediction, capital around refracs, see Into the a reason do think XX reason can those deploy in doing XXXX, change. Devon's give Barnett. much that is to because the part I And portfolio. year then are for I On structure say refracs, not these they are any competitive that a to of

Devon’s think continue say I in to But that certainty I will XX again up with do be can’t Devon’s competitive they in and to portfolio. going XXXX.

Dow time. be its chance using JV, would XXX% they assume when use wouldn't for at is are the a refracts than because available that idled mean it the it I I there that of for rig they the

it that most Dow got obviously Devon for But rig That’s better the a us. time my busy is for JV. question is they've of than perception the with

don’t probably one you rig taking you equipment year and the that’s new much from it's XX to wells if that you two a about different, XX of So, on refract, weeks you program full wells. when the about think and can a pretty different drilling need rig to our it’s release use think spud drilling net the the sustained rig well like do you you're

it. appreciate got very color Really Right, the Thank guys. you much.

question from Group. next comes ahead. The instructions]. of go Mirek Please Citi [Operator Zak

everyone. morning Hi, good

quite in So, Permian out a the deal now. few with right you producers

temporarily seen from takeaway if any have maybe positioned any slowdowns this on So, is of those concerns comment Basin generally volumes potential out how other can signs you producers producer of over the EnLink you've at few or point? next the or any on quarters

Happy on Basin. side I’ll it and of that Ben. on I’ll the Midland to Hey Mirek, its comment start the pieces. do in

of residue move goes enough assurance capacity have to pipeline Wahaj that not to On the capacity flow they the than what we of Midland assurance. Basin, our firm what are more we as that’s Most customers of and demand, price, the may flow registered have our EnLink majority that’s so, but gas markets, and in we the and residue. love

are the market But our obviously our our crude the most biggest far on side, materials, from Concho feel of look the On them. about and Midland how if the good discussion done of think extensive you have side Basin we we companies, base Relations they about are managing customer takeaway And at they Diamondback. of if and their for two Basin, you don’t and their the those crude both customers. Midland customers away of Investor

don’t though As list, our care we sign how for to a each think good seen of very know that for taking continue on are issue in gas that our now I customers I takeaway a are general. down no well feel takeaway they large gap companies, crude. and Over one us the basin, an of planning customer about becoming customers, do got I both is XX them have but side Basin, multiple fixed in in concern our independence, is good very Midland the and needs. all Basin. every go very major the producer customers, of have I transportation, customers the we the some at and further Delaware big advance, our customers their in their years job their the all market Again,

issue are concerns that again for arrangement a near-term marketing we the different, so, takeaway well us. no And indication is have

And clarifying just one fantastic. Okay, question.

You on the on the rest expecting of are only all leaning the CapEx ATM the is announced capital half to fund that internally year? of second incremental removing for spend, or need the

credit the goes CapEx mix coverage, and use basis. I'd through into a evaluate the always will financing we Mirek, our the primary on business say funding equity but focus coverage go to needs capital and as say, facility for to look, forward and evaluate the we of business evaluating continue and markets, I'd of needs the the excess then the that excess credit we will everything continue that are facility our

Okay, time. great. the for Thank Thanks you.

remarks. would Garberding concludes this And to session. like Mike over to the any our back now turn question-and-answer closing for I conference

We Thank third participation on your the today. and for you you, forward for your our on our and Carrie in Thank you morning, this for everyone quarter call support. results for facilitating updating look call November. to

for Thank today's now is you The concluded. presentation. conference attending

now lines. disconnect great a Have your day. may You