Energy Transfer (ET) 17 Feb 222021 Q4 Earnings call transcript

Greetings, and welcome to the Energy Transfer Fourth Quarter Earnings Results Conference Call. [Operator Instructions] Please note that this conference is also being recorded. I will now turn the conference over to our host, Tom Long, Co-Chief Executive Officer for Energy Transfer. Thank you.

You may begin.

operator. you, Thank and XXXX everyone, us the Transfer Energy Good Call, welcome and Quarter Earnings joining thank Fourth afternoon, to you today. for members team, joined McCrea after help our also by of questions other our remarks. I'm answer your senior are who today management prepared here to and Mackie we the afternoon earlier as to well you saw issued posted website. Hopefully, as our press release this the slides

of more refer or DCF, the year XXXX. we assumptions this will to and be statements financial detail XX-K well Securities be meaning within of flow, in discussed reminder, filed Form XX, to distributable statements the annual February as Section cash which of expect and a for us on As Exchange and measures. on XX. based I'll forward-looking Act These to are beliefs adjusted available ended our of Friday, XXE making in are EBITDA also information the current XXXX, non-GAAP currently certain are our report both December which as we

reconciliation today of start our I'd XXXX on website. our full our measures quarter non-GAAP to year highlights. a some and looking like fourth at by find of You'll

the we incurred growth a adjusted and DCF billion. year of billion, cash $X.X excess excess pipeline the we basis, XX% per cash driven an distributions first capital terminals distribution value XX, basis, step an or XXXX, in flow the we plan represents through For of NGL as return full was resulted and which our represents previous over Transfer, had moved products and additional primarily the our adjusted, and partners January of of we by volumes on approximately Nederland On approximately approximately to after to increase a in On through announced $X.X which volumes attributable of which increase unit generated to of and quarter pipelines billion our billion. DCF distributions XXXX, growth billion, Mariner billion $XX refined $X.X for after on common $X and terminal $X.X was unitholders. line Operationally, full the system. a East with record in expectations. significant quarterly XXXX EBITDA in our of year $X.XXX Energy NGL our $X.XX over annualized

and commercial allow fractionation largely we Enable's provide connectivity customers per In complementary is to as in company-wide utilizing On terminal, our driven reliable export quarter, a XXXX, Partners, to volumes for gas, provides fractionators. XXXX addition, regions during barrels the oil total which our customers. increased pursue Belvieu we NGL acquisition that million natural continue expanded fourth in footprint. brought opportunities of combination NGL and transportation early our The which in Mont us NGL volumes Enable services improved our and scale record our by believe the largest expansions improved capacity flexible, the competitive the our growth reached additional we and our Mid-Continent day we assets leading At for Midstream and Energy connectivity than new to Nederland world. Ark-La-Tex will in of completed X.X crude more Transfer's X, and December completed

$XX generate We which of more run million expect synergies, in continue the company we combined expect to million rate annual savings to achieve cost than of XXXX. $XXX to

capitalizing our systems a the assets. that and and by our of process of we synergies evaluating enhance efficiencies and the and operational improved number capabilities identifying addition, increasing are combined of operational of expected in on utilization to In are commercial profitability

storm and winter weather across assets. weather of a year, throughout touch than significantly the update, This recent and want stable I less much many prices more of winter as briefly on severe was remained out result. project Before moving commodity last to a seen Uri winter less our conditions disruptive growth to

layers prepositioning risk able to respond we assure, procedures place in resources protection of we and have and and of preplanning needed. we mitigation, to always to and when including do, are As provide winterization engineering processes controls

on of with bring will phase our which operating system pipelines, Mariner developments progress plants to recent you XXX,XXX day, pipeline experience Transfer's projects. combined East employees. with capacity pipelines extreme East a and operate extraordinary state throughout per facilities Pipeline now this to includes the allows Mariner of barrels East storage in pipeline with our NGL Energy state Mariner preparation through amount Transfer's the East extensive including terminal the to shales efforts reliably total is connecting the the multiple Mariner prolific Our markets commissioning the processing across of system. consistent on pipeline XXX,XXX Utica to Starting of and is system to Marcellus ethane. East and Pennsylvania, our including and complete throughout I'll conditions, and Hook final growth weather us the due walk of region, Marcus broader on the Construction the significant Coast. and now Energy is

For allows full grow. flow system network, Access from East nearly will flowing New expanded during continue volumes our terminal export NGL increase York including Northeast the venture, strong. project, up to our our products With fourth the Pennsylvania, which NGL pipeline XX% export see which over joint refined XXXX, have Marcus refined Orbit Midwest year continued and At In terminal, other Nederland supply we started Hub to products under volumes are markets quarter, January. to expanded Mariner volumes and XXXX. the through the Pennsylvania in remained in volumes ethane into our regions

million year XX facility. of we loaded For of the nearly the barrels ethane full XXXX, out

million to XXXX. we barrels a of increase of ethane to for to XX minimum load project expect to XXXX, XX this and barrels For million up

during capturing market, more last expect our XX Mont any to XX% to also Belvieu, XXXX. quarter our was over At LPG million-barrel Mont years, nearly NGL and fourth grow well, Nederland the country Belvieu doubled X our XXXX. to export of We NGL company recently in wells X exported our worldwide the other world million total, percentage capabilities XX to at online has than total And at in continue volumes storage brought of of we which barrels. a exports high-rate storage or the which increases

our South White Cushing early pipeline. pipeline. an and Nederland Basin Phase our service X, the our which to terminal, provides commenced And terminal are nearly moving X our quarter pipeline, with to fully being to third-party already mentioned expected last double June, the Powder also is end providing forward we pipe This per utilized. from barrels for as call, the Cushing commitments. service pipeline's which we of of to barrels capacity day in Turning and by by River oil DJ access Cliffs will our first with our Phase upstream In the per XXXX is Nederland crude is service barrels connection terminal be day. via on we to on underpinned transportation XXX,XXX XX,XXX

for reminder, As phase. a required spend capital this minimal was

and gravity barrel for to the neat It Gulf link Next, out link first is export will and load Transfer's Bakken market the is ability capability along Coast. demonstrating also construction Energy barrels to provide market, Ted Houston Collins of markets the as quarter terminal. the completed Houston The Bakken WTI on now barrels the progressing Ted Collins be XXXX. our unique to us increase as expected late fully of well connectivity low a will give to in

October the rich out Our options. This continues while into also Basin, to available Basin move Permian project Mcf to and of more which processing gas placed Bridge takeaway with per additional in the assets providing was gathering in and our to capacity processing Midland of allows Midland us approximately and in our to day service access project, connects utilize assets significantly Delaware XXX,XXX G&P efficiently, be utilized. Basin the

day Mcf total and addition, be and plant expansion over to bring supported a In demand, The per build to XXXX. customer of per plan the is we to plant service increased line's quarter due in Gray top from first which day new cryogenic existing contracts Basin. MMcf XXXX. underway, the Delaware end processing now in And will an capacity producer of to the XXX significantly commitments in expected XXX,XXX is growth the Wolf by is by new

our In in tailgate once providing gas from X streams. revenue will revenue to utilize of provide for Midstream addition, the the our service, segment, the volumes plant incremental and takeaway, to NGL pipelines

of new Now diligently in are the gas for address the natural gas of for our view to Ship and a evaluating providing and through to would capacity vast capacity with to the premier pipeline available with we markets utilize need network Hub. the Katy, majority less of our more at producers right we ideal Carthage, quickly order much can of the interconnect competitors' From an XX-inch that and would approximately the of as This build project than to complete takeaway options right with growing transfer other with Midland delivery Fort additional the along markets Houston Basin Permian assets XXX-mile pipeline as include pipeline Basin, Permian Carthage the assets existing growth this solution along project including from from well way cost project for existing existing following significantly deliveries energy firm Gilles takeaway and the of an markets out about new at Gulf Southwest pipeline it there, pipeline construction natural as Channel route. parallelly our the Gilles Beaumont Worth, Hubs. the existing our of Coast, Katy, that the Henry a would existing Henry We Basin to along way.

of to discussions this of value In the positioned as order with pursue addition, identifying base. assets maximize we it asset underutilized underway our aligned our are strategy and is project. in uniquely repurposing Customer existing

complete route once construction to believe Given existing have or less our reached we assets, FID. we ability in utilize project the we proposed and of X years could

the with Pipeline, and XX-year Turning market. pipeline by regions to natural is is Bcf gas Run Run will in backed expected the a Coast, interstate per with by a from the connecting and Haynesville Golden of and end gas-producing will of XXXX. Pipeline the transportation LNG is export Gulf construction the the between be the provide U.S. Pass Gulf X.XX Shale capacity. underway natural most commitment prolific which XX-inch gas some completed be to natural of day Gulf LNG

proposed the jointly working Gateway Panama's of this We announced memorandum climate an we of a project to to Trans-Panama closely bring successfully July feasibility attractive Pipeline. of the anticipate Panama and study to location of with developing with geographic signing investment in a project. favorable Republic this XXXX, Lastly, make Panama fruition. understanding

believe to about presents. this in the it the liquid world and continue opportunity We project hub and supply the most attractive LPG create are will excited

In alternative President and Energy an XXXX, January Transfer, through to along development our Alternative including This Energy our expanded projects on capture we of Alternative developing accretive the of the carbon of for are programs that role a our for Now capture Alternative energy for Energy. announced update ESG is operations. initiatives, responsible Vice Group carbon with of offset activities. we various Energy that hiring

In addition projects credit opportunities on solar existing we to X remain in and We wind large Appalachian other also the we XXXX, continuing carbon are the in renewable for to region. with in solar, energy explore forestry developers. several our acreage announced discussions projects

capture project On carbon at COX cost the our This it upon the studies. to gas and carbon beverage capture involve from capturing would the Hook for and food industries. front, estimates customers design financially flue based we the feasibility use Marcus that preliminary in attractive continue delivering pursue to looks and project

projects projects related treating involving processing for carbon pursuing our use oil to We including in the recovery capture enhanced for several from and of assets, sequestration. are plants COX also

We reduce as involving of uses projects capture we a to our in or carbon innovative to that our franchise participate us allow believe continue carbon footprint. to variety continue will other

report Lastly, our corporate in to annual we website December. published responsibility our

fourth take a billion XXXX. results. $X.X adjusted of $X.X the for $X.X quarter partners, closer attributable as of $X.X fourth billion was our billion to the for Now fourth the XXXX. compared at the DCF billion to was quarter Consolidated let's fourth EBITDA quarter adjusted, to quarter look for compared

products X.Xx of in the Enable For saw higher the our adjusted including from and of refined record XX on leverage be a distribution for segments, basis of to business acquisition distribution unitholders debt $X.XX distributions segment X level growth quarterly step $XX an to EBITDA of unit the XX% December. February on quarterly $X.XX or ratio X. unitholders distribution previous our returning February $X.XXX on the close as basis. evaluated per previous plan This increase return This per across of a level NGL to opportunities or million we target quarter the the as volumes be maintaining of increases volumes buybacks. balancing additional on to On well XX, ultimate as January will over common our and an the cash annualized in distribution unit the we represents and month while fourth the announced first transportation of to paid value all EBITDA. contribution our a quarter, quarter record the of of to will to target, represents with of goal leverage while annualized Future $X.XXX

as primarily our our record fourth average for throughput for and projects, Turning day ethane last refined was With products. increase and as owned fractionation to export by a XXX,XXX the venture and feeding the refinery system. same volumes was our barrels compared initiation million and of Nederland Ford million service with services from our export XXX,XXX and volumes increased last from per in to East higher per transportation volumes $XXX day to per into higher margin. margins increased fourth our quarter. And year. day terminal terminal propane segment period on of year. in pipelines results starting due to services the Eagle at transportation fractionated barrels million well X.X $XXX on NGL as on due same well to barrels Permian to and X.X This for Adjusted compared to increased as wholly increased to per was of for NGL the XXXX. also the volumes of volumes EBITDA record Nederland Mariner another barrels period terminal reached million primarily the This regions quarter our increased compared joint our XXXX quarter pipeline day the fractionators related

and primarily result oil crude the last our assets. through $XXX volumes oil of same $XXX our was Enable was higher crude Bridge the of transportation volumes addition Bayou due out year. improved million as segment, fourth the Permian performance This for to For and adjusted pipelines improved period terminal Nederland a million EBITDA our the recovering volumes compared quarter Basin on the and in Bakken XXXX of of to

XXXX. a adjusted of gas $XXX to increase the fourth For million quarter EBITDA This compared for to favorable primarily and million natural prices. $XXX Midstream, was related $XXX was NGL million to due

Permian, day volumes the December XXXX. compared In million of South addition, our and Midstream Northeast in per assets and MMBtus segment the Texas growth also to million Enable benefited the same record the Enable as Texas period XX.X regions well in day last MMBtus acquisition XX.X year gas due for were from Gathered to per Basin higher strong South volumes volumes of Permian, of the remain be or continue to highs. Midland assets December and in and Permian at near volumes addition as in Northeast the XXXX.

Permian Basin. XXXX. adjusted was new quarter result, processing compared constructing in fourth Bridge our a segment, plant the to our of EBITDA are As $XXX we $XXX Delaware project million in expanding our Grey Interstate million and the Wolf In

are contract And to during Tiger we at demand throughout While end due Midwest, experience the on beginning systems mild and lower and volumes did Panhandle Trunkline our FEP. the fourth expirations the temperatures to of XXXX very on improve, quarter. experienced we

these partially These include However, Tiger significant December conditions of assets on increases growth in to the decreases the by of Rover XXXX. out favorable more also due Haynesville. and offset were Enable to and results volume market

segment quarter even quarter Interstate more third Enable. the with the XX% in up without over the than recently growth steady XXXX of seen have We the impact fourth of

in Intrastate South due of volumes This transportation Texas, fourth was addition $XXX revenues storm as higher million retained XXXX. from increased to the quarter certain to fuel winter revenues the of compared well Enable Uri assets Permian in last year. EBITDA segment, prices For as and related December the and gas the due was our of natural million an to increase primarily $XXX recognition adjusted to in the of firm

addition expenditures. growth well $XX.X of turning to guidance. as strong adjusted to XXXX full our expectations $XX.X business XXXX performance as EBITDA to billion. the billion our capital assets, And EBITDA year for our be XXXX Now adjusted we moving to expect With Enable existing continued the our from

capital refined billion primarily be expenditures million to billion, We growth assets and $X.X capital across that planned into acquired midstream including NGL Run expect in XXXX Interstate products assets, This balanced the $XXX growth Enable to approximately $X.X and been well related XXXX to number segments. capital includes recently between recently expenditures, the deferred Gulf of as acquired Enable has particular, as pipeline. the related in

Permian improved Basin debottlenecking support of at average. reduced The completed gas these to Xx optimization a emissions. approved majority and processing construction provide of processing includes projects the Oasis expected projects growing be and system. These natural In plant the of in and are modernization production newly and new capacity, new projects multiple addition, existing new returns the through pipeline efficiencies that gathering include on and of strong this a

Now position. looking liquidity briefly at our

XXXX, credit was XX, December under credit facility. our of billion, ratio X.XX% As the leverage facility over slightly for our available $X and was total revolving liquidity

fourth from our year quarter, And outstanding billion. reduced we approximately full long-term debt we for the utilized XXXX, to our debt by million. cash approximately During reduce operations $XXX for $X.X

expect in to that allocated which will to partnership amount of growth in continue a our to of flow the a improve be best invest our strategically unitholders. to cash positions and generate leverage, manner We us return value in significant the XXXX,

we a our As capital we holders distribution which quarterly will our additional to on continue range, we equity toward returning first leverage approach basis. through steps to our evaluate target have taken growth,

months. And earlier I capital the excess will increased flow to call, than debt this we in in In continue projects XX that expect our year growth operations. to with addition, have throughout pay with returning cash strong the from we be on down as spend, focused on capital less mentioned service

of see quarter, including for we products another systems, to fourth many our volumes volumes NGL our across During and refined recover record in continue quarter segment. the

are the ahead, in we about opportunities Looking excited of us. front

implement recently synergies driven and the both domestically growth demand, increasing acquired Enable to assets. And across by NGL our continue to continue We see will segment, around business internationally. explore commercial and we

a position We continuing balance sheet return our down continue flexibility XXXX to XXXX and have financial on stronger much debt and unitholders. pay value emphasis with to to entered than while in XXXX, place we'll ourselves to

the growth expected efficiency have address and threshold. attractive target our our of Given some underway Basin, flexibility attractive we of demand, the the generate volume will Permian and above projects returns new that asset existing enhance base out new

to progress energy our Energy and the make enhance for line continue Operator, can also question. alternative We open which effectively on our grow the front, please further up franchise. first

Instructions] [Operator our And with Lapides Sachs. from comes Michael first question Goldman

end takeaway shippers Or to the a talk XX a I what's the shippers in good can shorter-term natural the bit willing of you next Permian, And early solution recontracts, a they you can the do of in roll coming a and had a are bit potential just feedback sign That's of the or to gas good is, Actually, the year have has interest what you that first talk development been? might question little of deals? to just want on XX-year Congrats quarter. where over contract? from out off system of contracts more Express Permian second years? One couple then question. is, and X. and do the about about the level for little Meaning,

is This You bet, Mackie. Michael.

this project. about excited so are We

a about We haven't lot it. spoken really

a way. we over volumes that project We've a We else became were was, heard growth accommodating of in, number for close important year lot it weeks a last project, competitors getting the last our X. now been capacity online. We've the in about to big more kick needed or states. have talk how across really the a they it than anybody And how of

customers we And so very talk excited. question, to the answer your to are that

[indiscernible] and the If of bottom our them line markets deliver Tom markets, Coast will Katy in Hub talking you a some but they're we've luxury compare on markets. of Permian have project them to the smorgasbord the will LNG what to to Gilles channel, most to either about project ship by the And our and of kind Katy, to in the and is be the take gone anybody to to earlier, from to area said Louisiana. going the Henry else, now of we down Basin just statements provide will of markets best Waha to better molecules the or Gulf

can stop producers shippers these Carthage. can of or in Some stop

this. So we're excited about extremely

cycle our significant will are a more have pipelines repurpose the We tie spread, continue competitors. regards we only what In off years. also for they them the better go been we're that. say of the It's pipeline look do of customers not overbuilt. of excited as how make clearly, And And efficiently but is -- our we the more to well. business very a crude last time, project as probably dramatically couple XX-inch commonly, utilize in over to building. side capacity, fallen into to amount knows, It of and and does long way. industry a we've our The Express, over need this where as let's have everybody through spoken assets possibly Permian use -- and we've XXX-mile of doing to in we to and them all the revenue, at will less will XX- allow we than a downstream, how

we always Bridge we reach our or As assets through wellhead the though, system now put Bayou water out all to or we on deliver and very have Houston and stop in even that say, up Nederland don't or feel that the way Mid-Continent. the the we barrels fortunate in Mid-Valley it

Permian Express our at have So we our job competitors, of them. and any of than can full growing the and a this teams shown often results have fantastic done keeping quarter more

fall in our significantly we We grow over that pandemic. quarter off fourth showed the fourth quarter results. volumes to Our just

string X are, and in last rolled contracts yes, looking increase spreads ships about services out. But at capitalize this growth loading the X have to for or but meantime, they where or assets. start contracts right We're of excited pretty to true the to all the years. wellhead we'll on the or next X move this not so years, in spreads locking production all off we'll on we're the and the the our X business over over we're And these long-term now way from through certainly as see refineries,

Bank from America. question our And Mulvehill Chase with comes of next

do question a gas of about think there the If the capacity Permian you think capacity the projects? you'll to be we how of or to conversions pull much of here. coming out the these of potential get at follow-up Just Gulf the able out of coming out natural pipelines takeaway Permian, and for kind nat Coast as gas look you Permian this the

capacity, that way meet combined we're and a of to we after have and of a look today of with The of new But we'll and to minimum this going anticipate couple Bcf what takeaway reach our Oasis the X today of years target listen have design available system future. capacity that between X.X in that is, we demands. new that's we customers we'll a is those at And course, can on project, a pipeline kind FID.

early you All once to seems maybe reach customers. you right. it sense. of And and put X said, stages, it like FID, with in That to Okay. you take conversations service, makes years kind it's

to where this pull push forward $XX few activity forward, And more of away not we're to bottleneck kind is months, from if the to months lot incentivize So maybe a only a X going look crude right. in it going Permian. the we It's FID.

to going people faster even probably think. than happen it's So

of in reach that Permian in point for gas the we earlier constraint so takeaway natural And XXXX. capacity

nat the the permit? hit money in your maybe it takes, might through So puts you us business for walk and if and some where help hurt and make you us where Permian takeaway more you understand bottlenecks gas can

Yes. Look -- of and we've about these projects. a few Okay. spoken

another XX,XXX the we're project at and in now on are of spending We about expansion on by middle right great the increasing and a day. by it of deal Oasis can another capital, looking between we increase capacity we're We're where a the XX,XXX. where XX,XXX

about that a lot off we adding to and kick we'll a Not pretty day. just compression, should capital, be more move So -- soon. able and of XX,XXX

So some 'XX about 'XX, think latter question on capitalize part forward and of at the that. that, well to with curves, we more and agree it forward $X, could think, $X.XX, you we we're move your over you're look of out I positioned quickly, to if

have We Oasis. on capacity

rolling where the We have in than more years at we much are capacity on market next off couple think be. rates the of coming lower that will available contracts

ourselves well. positioned very we So

So going adding we're quarters, kind we'll XX,XXX on the to And capitalizing where today, alluded to ways. spread the Basin capacity and have where FID sitting in blowout in the next spot is and spreads, going Permian different to because time to of sense, believe we're what we in X good very regardless late our the decisions it's pipe, we capacity next that. we for build of there takeaway. we're, X be on it from and Gulf I is, that adding a But assets wherever benefiting some to makes One, volumes course, the there the of there is We're get just going are here or Coast. whoever be add we would coming available to hopefully here in tough the once X be to months. then a additional the then move do have

comes JPMorgan. Jeremy question from Tonet Next with

could if was want guess, guide understand off million around if to CapEx, how now? just much just wondering any before numbers could put $XXX to the projects? versus could? you new the you trying I I help with start Enable $XXX million to bridge, us better Just And to was there. the I I drivers

the segments. the midstream. the start split various this Tom. really coming of Okay. how now first the One, But And piece with between out Run will the this. is numbers Yes. the Gulf I toward in that Jeremy, fact of included this largest is I earmarked are is appreciate

about talk plant. like us processing heard You new the

down XX% to that you're of so about about the probably just that XX% other XX% So on probably Then products you're Run really kind move the it. it. running the interstate you mentioned, But moving and last going crude of mix, number. XX%, keep that's up when of through then the way intrastate XX%, you bringing Gulf refined XX%, piece with I next, see and of the are And moving the or of that's kind on the it. into with NGL

we looking million couple Now in from kind of hundred and remember this, that roll at XXXX. a did over projects of

need probably that. start we with to So

of would As million coming to I it, break far the $XXX pieces try really the best say in chunk is Run. have probably I to of bridge necessarily biggest that the to it's that how rest between don't these really as a of with the the But Gulf out. numbers. that's

Got just to I Just assets for here? project, have pipe turn I guess, to are to converting for you just the there. a have see, talked you now now going And do Enable in assets expectations? conversions that wanted helpful wondering gas you really, That's set a work I a that bit wondering see, you things potential kind of more I could? about here, Permian versus potential minute, with if like little this of want new for fold it. to how And them larger

Yes, Jeremy, we do. We're very excited.

we're combining fill markets of of to assets Gulf different where in, efficiently. ones. product, were some into they kind into hadn't number But in looking before, knew we to dug Haynesville we're can and that particularly We a and found there. as convert pipeline the looking we synergies. dug As can NGL we instances. at ways the of Coast. of more. them we've -- couple run more the We said There's a we've out of to move at, our assets commercial also saw easy pipelines some really plants to There's a gas volumes we And get assets

little that a by and will still working but much we're bit our we've next earnings with that discussions deep of announcements advantage daily. excited and be We'll teams but kind on some preliminary So and those, call certainly do about analysis very been knee early. talk we have those taking through, going a of very of synergies,

with Wells Our next question comes from Michael Fargo. Blum

to up gas the discussion. wanted Permian follow Just of some on

limit the were can optimization as that is Oasis the talking referenced, to be Just Mackie, pipeline to is about? Or XX,XXX project the confirm, that that, what you Oasis expansion you expanded? that

Mike, we know, we we limit. through capacity. more. it's add don't as ways years, And gone exercise, this We've we've more, seen like to for Mackie. adding Yes, I find keep study and gosh,

more XX,XXX, forward the expansion and XX,XXX. one moving approve the Mcf that ad XX,XXX-plus a and compression, I then XX,XXX too, we're already mentioned, -- to day the one, smaller but So was of on another about recent one we're

that's or combined, first the end XX,XXX by capacity year, XX,XXX XXXX. added of have about of the that we'll of additional part So

project that East about gas out the existing to that that's other closer separate Texas. to over move much Basin, talking Midland a So own assets this we're to we bigger from project of

you to FID? Okay. question And Great. part what project, what contract taking of you of And you have think length you'd of to mentioned would then some -- is new that get new I service on the out of? Would this will this existing larger the second -- pipelines. this convert to you thing those pipeline, sort for be need

that. of end I'll start the with

looking be years, on goals we'll is typically a XX on these exactly customer Our so of that's what projects for. rates depends the types lot and what the negotiating are

or that. to to to converting that's to we'll the negotiable on clarify, or But oil no on others diesel. just unlike NGLs So underutilized is utilizing This gas this gas be NGLs today. capacity all one, crude

the amounts Beaumont Coast, all Gulf which into tying Metroplex, into enormous DFW the intrastate of over we and would well ship the into the So near this down a of the and XX, as for massive deliver pipe Metroplex, markets example, is Tolar, that systems and into Katy our project all markets. southwest would as channel the tie Carthage that gas way XX-inch be pipeline XX-inch

just So idle It's sitting It's already built converting underutilized. utilized this capacity. project. there on capacity fully we're not any

comes Our with Ann Salisbury Jean Bernstein. from next question

Run? and Haynesville proposed. will the to expansion The comment several Gulf comes projects growing of before of Haynesville new think run close Can on rapidly is kind on you on? moving And if Gulf are Run of have been capacity out kind project you to you forward

a out Yes, the and hard for little been team, of our back working solution have step her Haynesville. bit. [indiscernible] on the growth I'll finding Yes. a folks,

number where contracts ETC that Coast. done done by Gulf significant a there. down Carthage it very Tiger some negotiating We've network bringing HPL we've into looking ways and our in sold. gas into come X.X and about some moving east are to access Tiger Texas. Golf flexibility already that to same into At the Bcf So also from of and We're Runs back of ones producers significant provide Perryville these to time, the go there's and some in and of

Haynesville XXX-plus, reach conversations tremendous And you end markets a would imagine, in We're about need We'll Gulf that and that tying aggressively increase -- our doubt. like the the we'll looking to at we're no in be into is for to Run, doing got the of that now, in producers future. those to looking volume the as at Gulf Run. we've So can sell. the XXX And growth. near volume that growth that we're

will LNG line to of Henry through that, ability the on line some gas Hub down addition line, move CP more Eastern move new be In on we gas market both our the of as Coast. our markets Tiger kind upgrading on we the trunk the and Gulf to into into

huge growth that area. country now Haynesville, we natural things assets have, that for we run with especially own for growth capitalize through Enable that gas the that the same on huge So and assets we can this

you How underlying to exposure not again. a to Great. the would you And But wanted just 'XX but like it on optimize of mentioned could it I'm see That's have it to as to the you open might significant sure super you if up. then how widen capacity? of looks differential Oasis, for helpful. follow-up, Oasis, 'XX? perhaps you Waha you it. think could part then differential, I I in still so much exposure firmed be know And that used long. had the kind have all

Yes.

time, a strategy benefit a knew the they'd We able have But from when out. in. have we did we -- to back spreads blew they to while we of, fortunate during very were back come that be

excess as go did of put still shippers long-term hundred and double X, becoming X, that capacity that we we our in in out place, probably capacity across several we'll more in least of XX-year or over a capacity some But contracts. the requested carve X, at amount. hundred And So and some of contracts have thousand next available, day have thousand year like of the several those state.

early or next wider wanting to will bigger Oasis take may So them XXX,XXX under move of and time benefit start spreads these deal the a for project, part from capacity to out that and/or in in benefit have that X year then XX-year XXX,XXX projects. to from on over the on shippers they new years the a are those to

just much pipeline us year it the advantage to diameter over to needs and the X So all gives build 'XX, and significant competition next meet that by kind time the a we gives 'XX. the needs us then all able bigger a accommodate over of be to see or coming

comes question from Schneider next with Our Timm Citi.

about be think cost-efficient me on this do to, And spreads. you actually, because most project get new contracting to going going here potentially lot you that? out up is even question Coast -- commitments money on potential are let on new right you pipeline. making bat gas assuming do the don't if on the follow the there, the How the the appetite Gulf to Any off XX-year of maybe this a

the sorry, missed Timm. that part first that I sorry, I'm of again. I'm Say question.

Yes.

project you given don't be just as a contracts you it's have shippers what XX-year is potentially was of anyways? was cost to lot guys appetite ahead probably the spreads go you'd I most the if on asking making So that for the money efficient even fact with this and from

Yes.

we're said, be how on capital. we've very in even one light to thing to are of prudent As we going needed this our is, going do

believe long And are talked and going significant term. get quickly. make and to I've kind so that of because term of a we advantages through all to that that both we're the aware make moving short of decisions you that have do sense this very But advantage we

as But pipeline once going there. XXX,XXX do the And different and a projects producers. believe this those. see of is of rates We a rates. number word lot at this X-year contracts everybody at point, offers don't the or day. higher major shippers better believe up made at be so think We any going competing I a clear significantly think the we of again, can we XX-year lower any that project we advantage that like we're are little that get to have really, is it's than this of and players whole bit a out see achieve We stepping whether terms do customers, out to

that to the to in follow-up side. then And increase this short -- XXXX show is CapEx, about And Got The where that? talked very CapEx I a Tom, that of but be a shorter going to CapEx, cycle remarks. kind think EBITDA. cycle, is think of it. you in about short prepared right Is going actually not that primarily up in lot the on very way

XXXX. Yes, about not that very won't And kind lot of CapEx. this think of saying is short it. beauty It nature. until the is a later the of real to be That's I'm way it

properly probably good projects. is type, said XXXX these see build are you So But it when when returning you'll stated the impact. that you shorter full

What one EBITDA. moving pieces I the billion And billion right. the here. mean, then of the book What ends are – All on maybe are book XX.X that? last some to the around $XX.X the

Yes. your I sure I’m question understand completely. if not

If stay we of commodity of than you’re mean off, prices today. end. Timm, is a would on I we’ll drop talking higher the move higher, are end high some tend go the If or to – little be commodity there it, higher prices prices. off bit Commodity see that they

down and in then watch spread we gas, they’re out these to And as with them out. mentioned a spread ago, you the this we’ve So in And year, long now happens we’re the teams spreads starting think spreads. going of little And were earlier, drivers. see that’s and one to not the what kind seen that as that bit of see I’ve deeper significantly. get as

those made spreads. assumptions on certain we’ve So

been lines. conservative we’ve those However, along very

is summarize into a also part to I’d first a in of they equal, commodity believe big guess aware moved have an think in pre-pandemic do today in The the in way. I we bit earlier impact, that rigs big but certainly the talking were is all We with will maybe Oklahoma, which have returning even prices in, are bit Oklahoma. now more a XXXX back that So I a the drilling that rigs way. rigs back little moved back everybody little

leave the So grow to as demand products. all is the to that assumptions there’s going pandemic these continue for world the grows as industry

we’re so And very bullish drilling to continue. on

And our as well. so a projections into plays that role

to commodity And and thing we’re the is, the the of spreads. far about XX%, X.X% one X.X% using I piece the to exposure, as on add we’re is would that this as X% using

And about you add others to together, XX% So fee-based. up XX%. add those they when

you and calibrate that that’s component. commodity spread can how So

next question with Dounis Spiro comes from Suisse. Credit Our

the you thinking on the like the degree. maybe prior the the one just And pace about a time you some one year? It factor of -- be to that getting distribution are guys mentioned, distribution. of $X.XX sounds of is how on or Curious sorry, other leverage buyback. First frame of governing the back to may pace factors course, is $X.XX there

all about that you're level? just to So just getting prior how the back help curious that to and weighing us think of pace how

just walked there. through are really points the on We focusing Yes. you that

clearly really returning that before -- we to the that $X.XX we we moved at reduced the So if is this, distributions, had talked the back had -- to look least previously, at you up that paydown these about, talking have likewise, in these I put would likewise. then we priority, X. blend those a projects, buybacks, capital as the but projects probably Unit behind you great top we're debt

comments Got there, Permian. new just all then, Haynesville, putting helpful. gas your of coming And the clearly, this it. out That's natural gas around pipeline Mackie, the just together, more

You're time. be trying long maybe a can Henry point gas. can. east possibly move well seems be far where as Hub you as very a sounds clearly to to like that for getting All to supplied It

had So prospects I'm for on extension that construction there an requested for what does of recently. LNG? I do Charles something you that Lake sort curious like guys saw

sits too want don't good curious towards is term? long tie I a So them I where that to more gas got thing but together just Hub commercially, moving think much,

to example, because, the that a provider could for Hub others to our to take project. one gas LNG gas compared on wants of significant Charles of Yes. shippers get be fairly It's of Lake Henry possibly love larger a to projects, would great a our to the question amount and this project

you, we've So But of of steam. years, LNG, excitement or some of through X and to. shippers up tell the the around get we're talking cycles and go been And over with emotion it's ever kind X hand-in-hand we'll I'd last pick that really whether does there. producers

You read it anywhere.

to You sudden as only the for gas customers Around important on go X see how is is now, China other of next top world, a and the realized what's of from with there is the that find a customers. big green, their natural right everybody's all years. leader, going the as it is world XX the push out years we're around next their well and seeing Chinese mandate the gas. and And that or

be able through our Oklahoma all multitude unlike through all I are gas mean, CP, now along the into from gas project other even Trunkline Rover directions, way system Tiger, into area Trunkline Henry all Panhandle the gas through Panhandle, out through bringing bring the projects Marcellus, down that or Gulf Permian. this Run, the across directly Arkoma from the we'll that in or Golf can from both the feed it's in next They're to to under of up The we excited We are importantly years. we certainly alluded really from you end the few hope ways have signed we over so where close site that make not getting project announce is the really going. to, what about And that. where and end day, steam. up some agreements we are may to And FID percentage what we picked but still just more Utica, across Basin pipelines, into Coast, Hub of the biggest at of than that's that nobody

a So the far it's upstream. turning markets supply has and to the best the by a really portfolio around for connectivity then world, good and it project

hub become than just a magnify do is significantly. project believe trading area would going our that that Henry it Hub already LNG So to bigger and we is much the

question Wolfe next Our comes from Keith Research. with Stanley

company itself, if How the simple the one. many repurchased QX, units a of in company just First, any?

$X was million. think I it about

million. $X

Okay. Great.

about looking being a did sense maturities flow? Can repayment free give for of you priority guess, last debt how $X mean debt still at Second you I Tom, talked you I of, cash year. reduction billion a Obviously, you're over one, using year. this and

maturities looking as them see open you of use matures. are refinancing the year, as generally? you it Or free some cash you So debt repay to this are flow to to

keep to clearly working to $X.X going the Let's $X turn off million. towards with, we're million

maturities year. but of we throughout year, be maturities cash come will throughout probably paying refi as So I those of the up they down as we these free with some will some those that come the say would maturities up flow,

Holt. Our next with comes Pickering, Tudor, Colton from question Bean

Mackie, drilling more you seeing mentioned in activity Oklahoma.

just the you on have Mid-Con strategy? that chain? sort And be of you Now your fully us Enable thinking time in-house, into update ET to the NGL about line we can what value volumes operations integrate should those

to You bet. best And to this as pipelines, processing plants. I mentioned, to figure our way we have all the teams out try utilize bit our on little a working daily of

initially For or some are sense in plants those to a and of Difficulty]. for down shut [Technical may the short period to example, make time there more Panhandle that

by. ahead, Please stand you. Thank Please sir. go

Can me? all you hear

ahead. sir. Yes, Go

Okay.

the But plants my teams around We some If not, better clock. of answer? start It We've to over version. have you just of hear I'll opportunities -- pipelines. some a do on and any did I'll this So shorter identified some more sure efficiently not disconnected. we're of just anyway, happened. our working do our utilize already what

term, a manners And franchise course, we export deliveries of repurposing in potentially Texas into be to NGL and Gulf into service. our is are Coast then, at lot folks crude of existing the the to going Mont barrels pipeline to other get Belvieu of course, NGL converting down utilizing a looking longer and/or for Looking on our ultimately market. to pipelines

So things assets system. short-term vision kind do the vision up then benefit longer-term into in that barrels a and immediate we'll of the to many a of us we've NGL of got of Oklahoma our bringing

those over the years? next on half Or that is maybe bringing to of Great. point process clarify available thought to decade more And of down. of be that when the that just a Oklahoma back couple Is barrels barrels Mackie, might you? last

disclosing start standpoint moving years our third-party so, from a Gulf the Without a in deliveries contractual guess, the next we to in demand standpoint, of franchise Oklahoma, to competitive lot, both Coast. ability even plants the in do whole plants NGL our other I X or to from a plants expect the from down more tailgate for barrels into grow and

switching Perfect. And maybe, Tom, back to then the priorities. capital

evaluate mentioned sliding versus You new buybacks buybacks you of projects? the return in can growth you on a bit the versus stack how alternatives lower remind all -- some us potential the

the what Yes. look a A distribution from look upon you we as that, is It's where And you per price at as probably really look a how standpoint, at much what unit not let's yield. standpoint. today. talked look yield, DCF it where unit at based at for unit we from that. that and of do we projects from a is per DCF breakeven the some other versus opportunities DCF is the capital call we've about But it

All conference day. And that now concludes participation. a may call. disconnect. good your appreciate you. We today's parties Have Thank