Energy Transfer (ET) 8 May 242024 Q1 Earnings call transcript

Good day, and welcome to the Energy Transfer LP First Quarter 2024 Earnings Conference Call. [Operator instructions]. Should you need assistance, [Operator instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator instructions]. We ask that you limit to asking one question and one follow-up question. Please note this event is being recorded. to Energy conference Transfer. like Long, to now of CEO would turn over the Tom I Please ahead. go

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

distributable forward-looking As of a to us reminder, more also and in statements of based XXXX, we XX, May we discussed within for XX-Q Exchange in as to non-GAAP are Securities both Form financial and refer current ended meaning will adjusted flow, X. detail XXXX. the file XXE measures. March quarter assumptions be well Section and our currently statements of certain which are making expect cash upon information tomorrow, of I'll available or Act are These the to the beliefs DCF, as which our EBITDA

results. reconciliation going on today measures for over a our start our website. I'll find You'll non-GAAP financial by

rest BBB cash attributable $X.XXXX quarterly distributions annualized first This compared of year. first approximately no the DCF XX, cash last or flow to to of crude quarter For X.X% borrowings in Transfer, billion the on our an to billion pipelines of the we XXXX. EBITDA excess April billion. record Fitch per to and represents of which $X.XX quarter of saw credit resulted of On of operations. billion of our upgraded with generated for first the end an through for of we followed $X.X a also compared performances partners February, after S&P in adjusted $X.X stable first unit quarter XXXX, In unsecured $X.X and in quarter upgrade This under credit the adjusted, $X.X had senior distribution the across the billion rating an to basis. had Energy from as XXXX. volumes strong of by We the $X was paid first quarter, facility. the distribution we Transfer's Energy BBB $X.XXXX At increase common revolving a announced outlook, our outstanding XXXX. of

XXXX. In the Compression NGL and Adjusted we'll NGL segment and and segments, capital, to the and refined products primarily and in the transportation, for Midstream NGL hedged gains This due across first terminal growth quarter to fractionation inventory. million was $XXX $XXX our lower from start D by March, results EBITDA redemption was Series units Energy of XXXX, XXXX, of using $X.X XX, hand April Transfer's on of of notes we a $XXX for billion Series all the approximately of spent on first our preferred of and preferred our redeem of credit million C to the Following growth E XXXX, on CapEx. Now Sun of was million which turning redeemed outstanding for proceeds quarter, compared to revolving with in we organic products. we from senior And outstanding May by in all offset February our Series facility. operations, refined and first issued excluding XXXX. partially units notice cash quarter and primarily USA

XXXX. export million X% the was NGL increased This over volumes XXXX quarter pipelines. day. higher year. region XX% were first grew the barrels Permian to East included over X% gains the and first system X.X volumes on volumes As from primarily increased carried transportation day. from NGL increase that X.X per a the to due to quarter export Total reminder, of pipeline the on the per of Coast million barrels Mariner NGL fractionation Gulf prior volumes

We Nederland and month continue of for saw liquids LPG record of demand the exports natural our out see to terminal strong for March. gas international

nearly During out out Marcus the barrels first and ethane quarter of million of XXXX, we X of loaded barrels Hook. million approximately ethane Nederland of XX of

quarter, worldwide to $XXX continued as $XXX export volumes Crestwood EBITDA the in During to Basin. XXXX. the million the approximately we NGL of first Permian midstream, exports. For assets primarily of due quarter the of higher as to well for addition XX% first compared million was the adjusted was This

positive to of to XXXX XX.X As increased of a gas results year. per the in million. day day million MMBtus per same the reminder, compared last million onetime $XX period for approximately adjustment included quarter volumes first a XX.X Gathered MMBtus

Now million primarily volumes, due hedged for well favorable pipeline was of $XXX million to our quarter This on $XXX to the increased crude oil gains was stronger as compared as throughput with XXXX. terminal inventory. segment, for significantly timing adjusted associated first EBITDA

day related quarter as benefit period reminder, include the barrels of of million. Crude record to $XX adjustments quarter reverse last $XX We we increased in gains approximately assets a X.X for the to XXXX oil a a timing X.X year. and XX% day transportation quarter. million included XXXX, first And which negative of and favorable the also benefited the million of same hedged Lotus Crestwood acquisition from Results onetime million per barrels respectively. to for a second the compared to on expect volumes associated did in with November of of per first inventory, XXXX the portion May

EBITDA LOTUS, segment, increased million transportation Crestwood business crude volumes of of XXXX. of our our first for respectively, the $XXX was the compared on additions million the EBITDA quarter compared Excluding base and $XXX quarter and oil XX%, to first to XX% Interstate adjusted adjusted and XXXX. In

from higher maintenance During of at saw our than contracted on volumes This resulting was prices rates the sales operational by lower several and margin more increased related we quarter, unplanned growth projects. to pipelines. lower growth offset

increased of X% on utilization Trunkline certain increased year volumes first and system over from systems. Transwestern benefit the amounts onetime Gulf last In related to realization demand bankruptcy. same Tiger a XXXX addition, shipper and a period the Run pipeline the higher included Total the to quarter due of

we completion the of Trunkline and continue capacity pipeline Zone backhaul X utilizing We Gulf the utilize into to project, are fully deliveries line on Zone trunk our X. from fully with Run,

last Our on potential the was $XXX of next gas capacity the of to our the EBITDA a first to for Gulf And Northern intrastate of the natural phase to facilitate to based Louisiana compared customer from team transportation for million segment, quarter work expansion adjusted demand. continues $XXX year. million Coast upon

first approximately quarter the of million the gains repeat throughout recorded of optimization not to to expected remainder pipeline we $XXX During were related opportunities the that XXXX, of year.

pipelines. on our ramp-ups Texas volume addition, contracts In several we of saw new and

this optimization start projects, to Marcus offset with storage lower All partially our was by terminals. and of growth Nederland opportunities. Turning export and Hook we'll

demand, at increased to is NGL This the international as as export based Nederland give continue customers. to both customer progress. Our in to NGL products from terminals Construction expansion of upon expected the continues well flexibility our benefit capacity United States the various us expansion from demand. to to load

ships project. at our are of completed remains for also for the mentioned the anticipated refrigerated storage export and building which all double ability have propane storage us expected XX% our loaded butane of on mid-XXXX last time initial Nederland, construction to increase optimize is the schedule more further pilings capacity We the increase and the the to give our call, facility This on by as phases will installation capacity. an fully keep we than on in-service And our our ability and storage capabilities. new for customer to in

add terminal, West debottleneck be Hook $X.X construction Star continues our pipelines. and Star the Gateway projects first will Texas X billion. At ethane our incremental our the storage total combined Lone Marcus that an projects and we to Express recently X expect would We capacity. approximately NGL cost pipelines phase refrigeration of of [FID-ed] project these on that On optimization Lone

the fully are the underway On into interest debottlenecking upgrades for These from pipeline, optimize Mont Epic expected completed deliveries allow gateway our deliveries Basin to our to us a be the in project pipeline into Delaware will and XXXX. gateway the pipeline Belvieu. utilize that on is

to Belvieu our complex is to takeaway anticipated expected Sabina export approximately Sabina Sabina NGL gasoline commenced X Nederland provide per more combined Channel is one are additional to to projects, expected in undivided projects total provide than the and our our closed on of approximately XXXX. in a project than in interest day. the the day X X Pipeline on be per day upgrades costs As service we and Belvieu the million. the to X project, be which on increase expected of in Nederland are pipeline we upon acquired of Permian to NGL Ship are The X the XXXX, in-service deliverability we of XXXX, XX,XXX barrels completing natural Mont Lone to storage And Mont working XX,XXX between barrels pipelines. per X.X and capacity terminal. per synergy these of day. As the incremental to acquisition the the last service the We acquisition, several terminal. are our mentioned and Crestwood Express, more from reminder, of this it's from on. anticipate XX,XXX capacity expected barrels completion barrels in will conversion Mont we part Pipeline its Mont $XXX from Belvieu call Houston as This we Belvieu that Star just increase million to recently early was Upon our

provide to transportation for X multiple the Ship Pipeline the from products Channel. ongoing are Sabina Houston Mont potentially discussions addition, that to Belvieu In on extends

processing Crestwood existing processing are cubic are approximately in in our processing with to upgrades addition add million a As to forward reminder, XXX the our Texas. per plants. the In of West expanding through acquisition, day feet several acquired total, we capacity we of capacity at moving processing capacity incremental

end when South we building upgrades addition, approximately we improve Mcf efficient optionality pipeline at added cubic be per on our million cost. of per day on along plant. Also, very In These at the continue our new systems. can backhaul upgrades to more an project completed capacity favorable XXX,XXX to recently of XXXX, capital The incremental pipeline. reliability that and project line capital compared Southern XX At we day. cost completed trunk processing increase pipeline in feet a added a the completed system flow Texas

pipeline XXX,XXX our a continues. to Marlin to our pipeline this Permian approximately Oklahoma. We this of that terminals to in hoping Looking Texas we expected assets, from barrels to And Blue of receive develop is per be Cushing, continue quarter EIS quarter. proposed from anticipated are upon project, in year, of adding offshore Midland, to and Midland fourth completion connection construction XX-mile we The it our terminal from day are flows the draft in to our this our crude able Cushing. to its Basin transport the approximately at direct also oil the crude

heads comes a the customers interested Total agreement announced execution As we fully loading crude remain offtake. engaged value or very HOA for of recognizing And with the with reduced a project, risk and November that our VLCCs additional existing reminder, in assets. repurposing underutilized of XXXX, Energy's of and in

LNG Now Charles for on an project. update Lake

X that climate LNG optimistic this cumulative profiles a support will The moratorium stated local have As authorizations, imposed Department we conduct studies in call the facilities on discussed while change, the DOE We and Energy exports would Scope export LNG these impact Charles. the Scope on in last particularly natural administration impact DOE determine U.S. on projects to prices interest. of exports, of Lake LNG January remain focus year, the communities. the like on lower exports our of the whether public X that studies Biden gas emissions continue studies for earnings of LNG administration Biden that to are of the and LNG approval on

Charles will And so we continue export authorization course. Lake DOE in a that LNG receive due to believe

for electric X-XX LNG facilities remains partnership's gas-fired LNG generation operations extremely its a project. unsold continues projects. remaining approved Charles for take such, megawatt Charles thankful Lake to Texas. the offtake necessary Energy update of Charles customers has support support in discussions to for Lake the brief is regard, of in LNG other continued existing the the As natural to Transfer volumes with customers. And LNG In FID. development Lake offtake this LNG pursue the on

these service throughout to We facilities expect go XXXX and into XXXX.

Nederland, the facilities. infrastructure been would the several continue with guidance. at in critical we On and to have to transportation and and that deep This and This Transfer. Now ammonia water and hub treating allow looking promote individual Capture gas approach efficiencies of sequestration favorable. where access compared concept hub sites, blue Texas, developed Louisiana blue existing facilities, the loading our Capture to storage our Point an water to we front, expected economies facilities. an develop our agreement capital ammonia has natural COX ahead and at supply, ammonia from concept XXXX Charles, this provide projects concept deep to is third-party scale ammonia capture Yesterday, Northern to to including we marine ammonia us by hub services project to sequestration at market into stand-alone Louisiana jointly organic commits COX being Point as facilities response blue Energy growth Lake entered

facilities new debottlenecking addition newly XXXX growth $X.X segments. to will growth guidance from $X.X and capital projects, and approximately generation primarily and compression the previous as conversion, revised in our now approved as Sabina and the and on expenditures NGL X projects segment. work midstream in the NGL additional for be the to which Mont pipe new of products plant several With looping Belvieu, processing expect the well our FGT, billion, at system be been include on Permian Lone compression midstream we spent Gateway power gathering in build-outs refined This backhaul, projects has projects approximately optimization Express optimization Star pipelines, billion and

We long-term billion. Now $X to turning growth capital to our $X to be continue EBITDA approximately adjusted expect run guidance. billion annual rate our to

our guidance are billion be billion $XX.X $XX.X $XX.X XXXX $XX to between to of billion. billion to adjusted raising guidance We EBITDA to range compared our prior

include XXXX NuStar Sunoco's assets, of to to May Our the has which related been earnings guidance updated closed X. acquisition

on prices at for and excited natural despite we bring our services. assets performance lower that and the our demand NuStar deliver various look comfortable family, natural worldwide the volumes. demand we plan XXXX gas, curtailments for production quarter As refined midstream crude market our first and that continue Overall, like gas and impacted to can are headwinds products remained and we liquids be oil, as about have gas products does strong. into

projects to enhance ourselves targeting existing position this our to that base attractive continue by will expansion and demand generate optimization asset strategically We meet and returns.

opportunities several the including in Delaware from pursue also capacity synergy around recently of with the We acquired pipeline NGL assets processing and capacity Texas to continue optimization projects Basin. underway, West takeaway

further first targeted question. remarks. financial position flexibility the growth than Transfer's we and Our time with balance growth up equity provide continues please new returns to believe That rate any opportunities, for our be leverage pursuing Operator, our to the history, increasing in Energy will open reduction, line us our to distribution stronger prepared continued unitholders. which concludes maintaining the

instructions]. We will now begin the question-and-answer session. [Operator

a limit follow-up asking As to question. one to one only At reminder, question will time, and we assemble this please momentarily pause our roster.

Tonet The first JP with question Morgan. comes from Jeremy

afternoon. Good Jeremy.

Just under now us wanted if could to wonder with to Crestwood, a has little here. bit start off full that bit you the more. belt acquisition your little I regards been update a

cost I and a the potential you see, about what as just see now across what you capture You as talked synergy before, you. bit the impact far what guess, have but for commercial synergies savings,

thoughts there. latest curious for Just

cost million going it. about Mackie Yes. And side would that's side on commercial I'll I said well. be the on looking and able feel synergy I'm $XX comment mean, We and ahead good at very we still achieve, we the over to go then start. will the of that

every go we're time and acquire and and with we just stuff as up doing anticipated we somebody, and we always Yes. Jeremy, have again, Crestwood. synergies find dig then once things, that that

but we of not that higher seen from capacity really very now these in some other Dakota about also that up utilize any available the Permian some very really need delay fill recognized. already excited talk fairly may on, about, expansions to we're barrels we significant can But things we've on processing bringing synergies that forward out available of there's example, capacity, the more go look later idle we've of will there benefiting we'll their And Access. some out they've help going can significant others also some and in early got we elaborate Basin, up to than sooner there. only areas. what every to of able but can't we for in up Bakken opportunities There's Some be kind

proceeding But Great. just of to see parse the And I a update through and little how would if point for the it's is acquisition that business bit I base guess, Sun versus describe, if or how versus before, outlook the ET this kind there. provided changed? reflects want I you before, NuStar more if appreciate at the anything guidance of guidance similar has

for just is We're year Similar to Sunoco. the for of We the $XX.X, be short going the incremental $XXX portion had million answer. billion. an including $XX.X that

probably what be job, time -- a great right has more that's seeing But that process. you're million go now, at So the we'll number with the that are forward. team a they'll is little updating we and bit using. we this where done we're number $XXX Sunoco as in

it. Got That's helpful.

last the Just could. if one, I

returns. on talked you there. increasing just equity think wondering the about what I a for meant comment could potential if you more And bit you

equity X not leverage we forecast, we -- at out the but place that right the distributions, say when far be standpoint. obviously equity what There's And I continue from kind just bump as opportunistic is on buybacks to we're get Jeremy, we'll want don't focused the there. as to looking I to when I the we're correctly, a meaning understand of returns, mean you unit if overall ever that

comes question Spiro Citi. next with from Our Dounis

just about new thinking at end get of point Marlin clearly last Anything could that's hopper? been over your that? like Thanks, you tip contemplating sort projects of you operator. expansion? that team and Are of given additions. busy projects front can sort range you're us to the higher Maybe you over start those range, the your some new in in with in all with now goal billion update. the that, the the this point over that Mackie, anything quarter or of that kind the of CapEx us year, that of has Curious Blue $X

have Spiro, do. we're now going is to this in what we is that Yes. Mackie. right Everything

XX, or XX, we things come online that days, some actually progress that will of recently, the for. million the kicked we XX $XXX the this and off, announced of recently Next we later we're things make those But have we've several may things working significant approved that additional year.

come within or them kind earlier. of of online X years All

capital, quicker of we're see to revenues adding lot but our more we're much yes, course, also So projects. than, of going a

slides, just power want the And it. to power you're one if new expand scope. of opportunities helpful. on into Got you side are of connect and what sort brownfield plant Curious of point new that expansions? to evaluating and or on could the in Is go plants. to It's to existing terms pipeline could we about also that that expansions? And storage mean even greenfield interstate talking then sort

are tell But in for jeopardy, as you first kind of in step aware, the everybody cold weather. hot this I'll or many throughout is is very and small us. the certainly grids states, Texas Yes.

what megawatts have facilities uncommon sure one, help we're not that our running. we that. is, a on we glitches make can when what West -- time keep those out at is to facilities can we reliability adding doing So the really, of were these support But grid, number to doing we're XX driver especially behind Texas the that

to that grid, off going in for be our example, it get allow the to able to that example, grid electricity. In ERCOT with to off benefit reliably keep might kind the we're energy also will go us asks off issues running addition loose grid, weather-type that producers, plants to excess to for security, not the upstream have we'll when or get and circumstances that, cold -- be of urea-type we'll help able

doing great to but our ancillary that, and think that we I lot added to more addition there's we'll able of make we're system, this services won't grid assets in in So this into that benefits go be into provide much also a with the revenue small detail, steps generation. stable, we'll LAR from to liable, grow our what kind more of are help

makes it. but pretty about it kind of right lot excited a stuff our partnership. It's for of we're So small sense now,

question next Our Research. Stanley with Wolfe Keith comes from

any interstate on optimization sales results the that the Wanted the gas back to project then strong for Permian And more drove give gain? much saw and detail Is can million how there to you $XXX you opportunities have relatedly, the as differentials anything go to available the capacity from -- any you just Warrior on And this year? well. benefit there. on updates

Okay.

start of Let end with me that. the

run our capacity, So work. all we're out to doing, we -- team the announce term. we our about One unless feel good of and we not [sold] long on continue We're continues very going prudent. to disciplined thing are to Warrior, project be and going

in capacity some run So FID terming an that up. when still our we're not to we on Warrior going existing out system have we're

with pause we're the in with. So LNG little a some bit has we're that bigger the impacted working hard, of customers working

knows everybody strong [Indiscernible] probably interest probably However, pipeline, to there in mid XXXX. by remains, as a late another

right month-to-month, We Texas, it kind build day the pipeline continue [Indiscernible] to have at north Permian. do varies when Texas, from we that are we available spread now day next optimistic a benefiting that we to to come we'll but that but prices hate as and it get line of we makes constraints, that certainly sense. As across doing widespread have have West out capacity see will these finish far very happens of the out of of it's $XXX,XXX to that's are hard when which sure you of what they're Waha, work the what -- a

but alleviate of there certainly, of spread on take well positioned a the our well And for later coming very advantage is as own that pipeline way year our lot benefit that for so is the a of than benefits. customers' we're as in to type

the network we volatile those and assets throughout Texas with hourly the can cold even even U.S., lot things it's sales built. have As really really a do in gas are to by feel the have intrastate but weather, extremely just assets with or we backhaul. pipeline we a positions where times There's have far from operating on especially team hot the as we've east, just intrastate moving revenue our revenue, we the weather putting of it's storage -- really to massive We times, what peak west ability in fortunate create Texas. that's of some lot

And some we times able volatile we're this unexpected that see times in will very be most every summer revenue there year, to at at level. -- kind some many capture where so in it see we winters, of always

I appreciate answer. the detailed

question Second on just how thinking on -- you're and M&A things. about

so company, thinking in the from Transfer and know between have ET the about well, obviously, which but -- independent Sun and of a fair is And and lens there's mix an it then of Energy I you as amount business now and some of assets Sun. overlap

you think kind and how level going of the So the at level more acquisitions make of M&A or And do forward? there? Sun versus any ET about what types differentiation sense assets

That's space. lot within strategizing -- a midstream I listen, like a sense Energy the spent consolidation off time -- that's feel think of very I will will very, Yes. question. makes good that Transfer start I in we obviously We here. still saying

opportunities we question, XX,XXX-foot So still your the out. just as evaluating to various answer fully at look we on intend

we're So not going on that slow down front. to

Now as talk we go at from trying the how and as what We we about all to always the those far to across commodities. feed all things always at way be like is wellhead do to look it to going look we the downstream. water, that

commercial of be through value opportunities the as make we on that what acquisitions. Sunoco great synergies. Now as new when see to we you as star. guess, look here. chain it about about the as the asset family stuff done way I for fantastic gives and coming us your to how the synergies this look base Transfer versus when last part a the assets at job team our we excited -- has And strategy it cost question well as this feeds clearly, at So as that we the Energy do these couldn't the all into I the more to Sunoco, can

look some in that you'll to transaction. And going we'll can instances, of public a what big those kind to This They've chance made to asset it's it's lot them, and really they're that's from standpoint. that accretive look but there's in clearly basis very other family on a of kind can ways business, the Mackie good add combined and So et overlap bit and here. even to across first something terminal we distribution latest be you'll what acquisitions. very, Sunoco's of you're the to very at more see NuStar the do. going on is, in for those fuel the company And little acquisitions, their optimizations of the But make a of wholesale table I'm a see might to right, some we cetera. be him and is continue acquisition at give looking

You And And bet. real of overlap, They benefit We're on one as there's elaborate to some it. said kind different and they much follows far I in that that we there Sun type a excited explained are more partnering up potentially bit with for little what and assets. assets regard kind of want them, anybody of Yes. or them. a are kind up growing as of them. think stepping up

JVs, very opportunities to both doing as we as with of and to And partnerships accretive are So discussions moves forward. that look those in arise other capturing do opportunities our if we we are that. beneficial of time possibly forward

answer all question Did your that there?

Sure did.

next Our Manav Gupta question with comes from UBS.

A where segments could change in mix CapEx? the there you your NGL, do this more XX% it's helpful. view year at other between When ball, get next with any Slide believe could at it and Like products that you still know but I we CapEx, crystal look is And question would of as your early, refined X. relates XXXX, if over XXXX, look significantly quick to midstream. be very

looking guess, start significantly. out jumps change it I at that. that with nothing can right would I Yes, it now,

with XX%, However, you maybe walk example, on lifted, start earlier. gets we of think to probably the some just could the just and going for it But later That's there's the and hypothetical, say, likely. everything kind government. LNG, of XX% on lot So own or That not in pause Warrior, different through that. of intend let's sooner depends years, does on issues even variables later? pick negotiations permitting it a up

the of that but answer So just least pretty queue That's different high-level at rate quicker course, one that run that it spin might right consistent, segments in that number begin I other. to others, of would, 'XX. got I the alluded kind a we've projects or now, of than the way think and through to

last At there you project A of sale construction quick Is think could quarter Marcus add Hook, one? any and refrigeration first of I on the storage update that about ethane the capacity. follow-up. spoke that optimization on call,

we're phase, moving that that excited phase. and through diligently We're update. No

will the storage are come. revenues excited of and We future many be for markets and ethane export about to we capabilities years facilities and adding of out the our

Our with next Fargo. Michael Blum from Wells question comes

wanted plants you to Texas. megawatt to go the XX gas-fired I announced back for X, ask -- power

Just how to going on plants? own invested supply these with gas? to you like Are And basically return your do an think investment capital them are for [peaker] clarify, we this? about

provide Michael, natural this gas for Yes, is will our we the with facilities. Mackie. these own

significantly weather, our or in of and lot. here year, to the or kind the run the necessarily and we prices number As running, be meets X,XXX, will There's a has our a urea-type situation main I power In our about things [hurdles]. they services mentioned, gas benefit almost anomalies huge keep in no our think like benefits we the of hours ancillary that for don't number in plants a any expect or are run, like that. we kind which That grid. two, we one, reliability, have what keep any regards in will assets, LAR of flowing from cold X economics it lower X,XXX than run run drivers these any run-up or to economics, return and rate

said, better create it a we're than significant try in it's could not assets in but for returns, to I of these these like very So to putting not what but we're -- really likely projecting, create grid. reliability lot building returns the our we're

just Okay. potential it. a the on Warrior project. follow-up Got And then

to XXXX, FID if by in Just when to have get want on do clarify, this need you service to that? you

by hypothetically, FID lot if third believe for changes quarter, Pretty a at we'll late X end to over example, it able the quarter, quick. typically, -- about of years. But -- say, latest. we or in have typically the we're by I'll we probably the get 'XX X last early fourth No,

Theresa next Barclays. from comes question Our Chen with

comment related have topic. the question expansive oil NuStar in family, your wellhead-to-water that and about Related the to assets Christi export a Corpus wanting pro Permian now forma system, to Cushing, you facility. the Permian sizable strategy, crude follow-up to M&A so Nederland an A to

long-haul and Permian Corpus between portfolio? that fill where to might want area your you movement a So natural Christi, is the

wherever fit as assets to be that. on But open that we remember, best anywhere market. producers that's about, XX We over from Sure. we that certainly and been want bringing assets have related Midland we in, the to the I go mean those more we're can connect make to as for barrels they Corpus. question from always many us if sense years, as where that at from Bayou they're will Corpus, the chasing pipes so talk move in those NuStar sale, want example, to ones project. dots new probably a for from where our and those. are crude, to it downstream focused as look assets the But certainly, Bakken, to want Midland, our NuStar possible our VLCC be to those better to the from to markets, might But can certainly, opportunities well benefit used and Cushing we'll might are down to Bridge, with

through just Bridge, dips account Syncrude, has also just TMX Access not What Crestwood? into Got is coming which all but at West the years now barrels it. outlook Bayou getting connection seemingly And online up looking recontracting way with taking being shipping that and Dakota and the couple balanced in incremental mainline. a for contracting would you're indirectly be outlook to the [Indiscernible] the from of your compressed given Bakken WCS,

We of to Yes. and We we've role out the Midwest out love we such Coast. what basin, proud the the get the of barrels there, of in great play Gulf a love done Bakken. refineries

off. The the all through into producers. refineries long our We around funny times the We It's on us. for best there's we long it time I assets, there's term, have for asset think production refineries one and blips James into of years, way you to different when premier concerns refineries great Port as on not outlet the Charles into recontracting then a many as and and the mentioned, optimum been Lake way that's from term, is Patoka think and to just it's St. So well the Bridge as of Bayou Houston course, to, add your get over Mid-Continent Arthur and project. then, and time. VLCC

and that no mentioned, asset growth. of -- believe XX out we next stable do time over yearly we to fairly aren't as course, years. like the that time. to of us. producers to remain for lot sense a a some But have roll don't to We makes on. a so something prices We sleep not that stable already an concern. not see we'll we're will of certainly it basin at We do over, if as the for there's of is companies be them, for flows it's -- massive don't anybody going long really oil X period of talking or that option best We see, wants very roll kind willing to consistent period to we long think I of the we're but strong, We just make there. engage concerned time with it's So it's just

Mackay Our next with from comes question Sachs. John Goldman

probably curious, this then small about more Maybe And adding, operating small now versus what consumes are plants potential the I any at you plant you're past? power overall. have capacity take ET side. just I guys relatively if in to guess, guess, you one or the think I it's,

room think kind this to a think you set do of over you expand here? should from as maybe first guys of number of there's a time? for kind projects And we look on of this So

Texas or so for of in we're industrial centers just I I are moving AI These no people data of steps. exception. on thought clear a gas-fired the data in grid generation. first over of fact, John, didn't -- Yes. Yes, lot coming optimistic make lot all are lot problems centers, I a There's natural it is said I Texas, in crypto mean country earlier, it miners it's enough. A are growth. in probably still

we as we rates. So it earlier, these don't that But each it's are will at, something quarter to heat we will aren't goes announce units of will very -- on. that operator look are we good be more I the -- be highly continue that They these peaking are and will unlikely of we mentioned units. as these

megawatt when cost run very efficient well-priced provide So very of them. we and they're -- very

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area growing. continue will an that to it's So we

role of what in to that kind want you'd run of like, and in it chain versus partner that I a Can kind minute, about appreciate a maybe that little look or maybe just you? come of the could your ammonia what blue kind maybe out pieces spend just talking detail. value over zooming own with moving Maybe hub, bit. a you of having

and especially -- with Yes. incremental of things fuel ammonia production. We keep all so in certainly fossil we talking gas, about business, natural excited are how our many

bit Charles, little our this the big now, that significant some So ammonia. higher our looking want anywhere and to XXX,XXX day. maybe a a We've Do from example, of focus very similar be or we're we us got potential a of what know in doing. lot they're Mcf XXX,XXX at certain these among we'll players to bit LNG X your a area. retain possible. don't to time. more want to is some project of operate? with of ownership priority, a over one to owners Charles plants drives is very deliver period little likely really will that very But and we Lake of right level, Chem] an what you Yes, give momentum X [Pet probably really approaching to We're approximately In Lake

revenue. insignificant it's gas So not transportation natural

X% we'll revenue, going to we there. At we'll be depending now And grow but over nothing probably feed have to side on ships you've their knows world In ammonia addition it, experts to where able of the or fuel. to got enormous the have side and the load revenue, Everybody is Lake the being fuel we'll see Charles, that as to people in next are XX to do built it years. ammonia. power the it of growth X% burn loan this that, for XX fertilizers storage term

ammonia and Korea to be where Japan is you've South got going other fuel. for ammonia with got then You've and for and coal places blended bunkering a

We I ammonia plus our big in a see facilitate interesting of it another So the -- there's helps just as business future gas bought. they transportation what really said, big it's NuStar it's big for well. and natural a standpoint, offline ammonia,

as where about we're at the and So very we'll excited do hope thing [Natera]. headed, that's same we well

from next with Our RBC comes Scotto Elvira question Capital Markets.

original the little that see you Looks what decline of expectations your relative embedded trending And was year? the in you a how some activity seeing, you're in talk what bit system. the like what's Can Haynesville? your on then activity there rest Also, to producer about you're or seeing your guidance?

Northeast, lot pressure Haynesville. Utica [Indiscernible] when the Marcellus, no Mackie East Panhandle is and producers. Henry This a There's at Certainly, Texas Texas We've seen $XX and about above again. lean throughout of parts to U.S., Yes. it puts in fall the slowdown. certainly plays on prices Oklahoma, Hub, $XX a of

So to it I yes, off -- we've significantly Northern fall our interstate shout volumes for seen though, in the grow. fairly our that group, Haynesville out a in get got

have yes, it far as business, be And in our so intrastate yes, job tightened, fall we've we but off. on Louisiana. But got North more aggressive, as G&P our margins seen we good our a to did

Bcf. what's June happening, in exports July. you of at with X facility if almost a There's XX on or saw of another LNG months However, ago peak That's we around about LNG believe down XX I look kind now Bcf. coming

[Indiscernible] So Europe and start we we heat can this can overseas will Bcf X picks the seeing on X overnight. jump demand see we believe see up in summer, see growth, or elsewhere we we and we like -- demand up

that declines quickly. to in ramp those up able areas, going And Haynesville be so not to other or you you're see these

demand moved think, I part as as been the higher and tougher or that the of LNG mid up and doubt up those. It of about year, this summer end with areas of of rest quarter a main the we yes, getting $XXX latter the Haynesville think possibly could see out pricing high it we that picks summer, prices some think year, has it. $XXX of really like a by or if the the could will. see one we we on But be is So hot no

just going about to the made super Great. Okay. megawatt the comments Slide electric back your gas-fired facilities. XX X, generation helpful. then And you That's X and that

talked then centers. data kind You also of about

of having or any term? equation centers curious, longer how these maybe potential some of regarding capacity part the think are conversations that of do you with data some expansion incremental the I'm utilities or Or So opportunities? you about

we Yes, are.

We to the up conversations wants in story systems, little gas are all with a that quick anybody our here. above. We're

a to any So And agenda of that of intra-interstate go we X on or to our X XX a strategy years and ago, plants. we started need of was within miles anything power lot connect. pipelines, focused

excellent So her job of to have also X we've -- we power have connecting plants, and while, we agreements of got opportunities. that our [Indiscernible] of rolls extending but over a team doing into been done plants, lot for a team an other that

it's manufacturer there means And in the data at playing well and to like go by that a X that around just years, it's is Bcf we're Whether so or up. Texas don't a Bcf. happen. or going believers the especially chip to as centers will and gas-generated we AI, everybody We large -- X we're We to going looking of over as pipeline else, next know. drive know X it's demand X going electricity

natural all in Texas, growth, handful least plant the probably growth, with growth, a power I separate different expansions earlier, centers, to We're well. as significant at gas-fired talking mentioned ammonia cetera, combination in et of growth. as plants AI generation industry So on Oklahoma population fairly power data

we do the just is Tom going many will for for call opportunities. natural the keep believe the this that up gas to have common demand come, nothing it's theme is but that So excited benefit that assets from we to I and years go and most in we're that those about talking that

Pickering, Zack Co. & Tudor, from Our Van Everen with next question comes Holt

it, that last call one the circling the one have development a the We've interest larger of between and development just on in Maybe you side. seen center of Dallas. know I centers probably and Permian on lot guys for talks area. data data the back of footprints that

states? expand what of on or curious whether your in to pipes to maybe intrastate is some Dallas it's demand, of those power ability other Just see more or Houston that

Well, computers, of kind in We're strategically I said. a located made we the or of lot Dallas to that". "Hey, very [Indiscernible] that coincides Texas. connect little either not a lot XX% connected to that every what job to through approximately bit off have to of their We that of miners state plant done a have capability a unlike you're I and power because it to in our we certainly selling AI also Texas every money in. lot have that in do power more near electricity and the facilities, the just directly go have indirectly, And of already XX% possible and running both really we operate of gas tremendous generating Texas, and in storage in the these can't of crypto plants making North times, doing

on rely can't have it's I think it reliable, to got everybody knows so renewables.

all add AI Dallas to certainly we plants So including in area, yes, to forward as will that. can, of the if be provide meet those close additional of even expansion, there's provide type for that I help demand that's we the Look at we be electricity a nobody services to power to to just mentioned especially you markets. able mean the our part need assets.

Perfect. And Marlin. Blue then switching That makes sense. to maybe

commercially permit, as in for you do frame study If the were favorable to would the EIS operation? able a guys get that well when be as time have you

we within our that assumptions I certain are year, unlike we'll a guess the draft we that that that we already great we November. certainly, like making our is a are party, might believe and we in this, say that ground would about permit competitors, -- once confident it brownfield license. sea. a EIS We're But our I our mean receive hopefully it of lot the project. a or thing I get the is of project it's have the pipe in happen things in

so a And huge have advantage there. we

good We our We have think a than pretty competitors. some costs for of deal less of significantly that. we're

project. feed kind to the our from have that can't move of of competitors some basins unique We different ability that barrels to

to third before say way finish we're to X.X, it the looking years? -- of believe own optimistic. X.X next go. second, Yes, quarter X would But about by So just very at any just I we're ready question, answer year, such. we're to X your actually it hypothetically years

for like session. remarks. any This over I would back to concludes our question-and-answer to closing the Long Tom turn conference

Once again, us you any joining today. of Thank follow-up we all to addressing support, your and in forward we look for you questions have Thank really all you that appreciate you those. all.

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

disconnect. now may You