Targa Resources (TRGP) 3 Nov 222022 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Targa Resources Corp.

Third Quarter 2022 Earnings Webcast and Presentation. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that, is today's recorded. [Operator Relations. the now VP to Investor like would conference of to and Lad, I Sanjay hand over today, your Finance speaker Please go ahead.

Targa to Thanks, Good Quarter Call morning, welcome Resources Gigi. the Corp. and XXXX Third Earnings for

for available Investors The presentation on at in release, the our earnings earnings accompany that quarter with the website Resources third quarter our section. third along supplement Targa call are targaresources.com

website. also addition, or during Actual Statements the projected an XXXX. forward-looking results of our forward-looking updated meaning posted In of include predictions expectations Section Exchange the of those considered made in statements. has call Resources' been could might presentation be that statements differ this within Act from Securities XXE to investor Targa should materially

of cause Form report annual to a actual most to filings. factors on refer For could SEC results our latest that please differ, recent XX-K and discussion

will from today President, Pryor, Executive be call Financial Chief Matt, be is Officer. Kneale, the Meloy, for Chief and Logistics his I Officer; President, and and speakers Gathering limited. Chief comments and Transportation; Robert Jen recovering now over the today to Our for participation call Commercial Matt who turn Muraro, McDonie, laryngitis Processing; will Q&A Pat Officer; Scott will

and Thanks, voice. Sanjay, my for morning, and good hoarse apologies

of added S&P share and Basin Permian $XX schedule in on NGL third record business Basin common overall the Permian, successfully record safely, repurchases, two including quarter, high our the million of on and recently strong is in quarterly integration and XXX. to plants across the also of Our continuing record Delaware continued to ahead our perform fractionation budget, were the and acquisition, execution EBITDA, volumes volumes, bringing well opportunistic transportation

in record Permian, acquisition. a third our plus quarter the particularly base attributable volumes, Delaware quarter contribution Basin higher from Our partial to business was EBITDA

August. $X.XX and There lower to year expectations significantly our to we is assumptions early expectation are EBITDA billion. underlying financial no XXXX generate than that billion updated between provided $X.XX full prices year in change the commodity full While the adjusted

transport growth the moving from we kicking forward we XXX and The our day off in North looking with construction expect morning will cubic also volumes we of the down calling to Basin segment Grand this additional The the million the we projects are Delaware of into a to significant our XXXX, per up to looking announcement to we some connect meaning move financial which gas G&P we to these Given new processing feet Permian Delaware, our of of Texas, necessitated the catch flexibility Belvieu. pipeline, acceleration volumes our of existing Mont Basin growth about which XXXX and Daytona NGL the business that expectation infrastructure, continue some in X.X forward change there are II announced on times, ratio significant that to is volumes leverage Prix have forward. year-end spending but shift Permian no volumes plant this Wildcat across morning are in that and plant.

services extend strategic over our our you the it Pat, priorities turn to thank will employees detail. in while Before to to on now provide to operations I to more discuss best-in-class turn would executing and call Pat, continued like their to over continuing Pat? I on for I G&P our our safety focus customers. a to

our per billion acquisition. recently Basin everyone. cubic good a Permian feet record Delaware across Starting contribution morning day Basins X.X Matt during completed our Midland Thanks months and the third systems of volumes including of Delaware and quarter, the the two averaged in from

year-over-year our of we ran capacity our legacy average our increase Delaware volume to third until the including Basin Permian acquisition high guidance. essentially Permian expect year-to-date end XX% In full our as XXXX at at sequentially the inlet Given volumes X%, new to increased initial in not came year our system late plant performance quarter. our volume Midland, XX% our online

XXX incremental underway Midland. expansions per day cubic processing have Permian in million feet We of an

when second track Our plant on to Legacy our acquisition to sequentially. track system we be plants both next not two across begin our inlet our including begin late plant to Similarly, year. operations remains Basin XXXX. during In online XXXX. of quarter contribution quarter expect utilized volumes increased fourth highly X% the they operations in Delaware, the Permian on from remains And come Greenwood of Delaware

efforts operations Basin on the feet of assets was and the which XXX our and start-up. We September late the employees team Delaware at integration. Hills have VI per Targa full supported Red million plant new day integrated collective appreciate that in successfully our commenced We cubic

is previously and per moving customers in Permian Our in In online XXXX. Wildcat to -- overall quarter during plant the of $XXX we as to the of on day II strong needs across begin second forward remain producer first mentioned, meet track system ramp. the a plant day with operations also activity are Delaware to million running are our new calling highly continue new XXXX. the of we very and million response XXX volumes levels the infrastructure is plant. per cubic and quarter highly Wildcat Matt we And expected Delaware construction Delaware Midway of utilized to II to which our the bring

to forward the Wildcat Hills Basin We reflection a are being acquired expected are All of current quickly evidenced Delaware start-up at positive playing will are Red on as facility. newly and startup, future construction catch-up be volumes how increase. VI full of now volumes highly by utilized that II some increasing Midway assets the our expectation on moving with and

COX ability We our injection are also returns increasing capture to handling gas treating also capture from and us wells. the the storage will acid fees. infrastructure adding increase sequester and incremental treating gas capabilities from drive to in the process to Delaware production and emissions gas our the treating which enhances give in ability This our handle attractive

We our permits enhance carbon Class and on and and already abilities. permits obtained have are further II Class plans to capture Class MRV II working additional VI

business begin to receiving the credits the reported Oklahoma crude full quarter In during quarter. following offset now and aggregate drove Central contribution increase in via from a XXXX. as the gas North and the Shifting discuss in Texas weather fourth contract early volumes region expect gathered Texas. transportation Texas more will detail. Scott? logistics natural our the quarter third as sequential solid quarter the rebounded levels the backgrounds volumes South in expiration acquired of impacted third in by We prior South quarter Scott our assets activity volumes to a reduced in and tax in XXQ in storms late our partially and

were volumes barrels were record XXX,XXX Fractionation Thanks XXX,XXX a Pat. record a per barrels per day Targa's volumes quarter. transportation day. third during NGL the

some system Belvieu have it Our across not been during for third-party been facility. some ethane our rejection plus higher had the systems our and quarter at Mont third volumes would maintenance

share outlook transport volume Today on from anticipated of operations volumes NGLs $XXX Given we end expected of to our cost quarter will NGL segment on Energy share Daytona by of based $XXX Permian the estimated XX-inch XXXX Train transport to the plans funding net pipeline own growth of of in pipelines $XXX during With CapEx and expirations the from Blackstone the expected estimated the the in second the million. XX% estimated growth Targa on of diameter and growth growth pipeline's expansions North our Prix with of respective own be Targa's service volumes XX% from third-party G&P and million NGL with connect Daytona our obligations construction is nine third-party continued Belvieu an begin is Grand the XXXX. growth about to our volume strong. Daytona can transportation which an pipeline of Mont project announced percentage. to their of fractionator for after be and we to is the construct will is to cost Partners Permian approximately each cost Basin around NGL the member In Texas. million. continues ownership

LPG opportunities maintenance will our conditions. some due loaded volumes some the at core to Turning the fourth to impacted per during currently as We market impacted dynamics We by similar global required weaker we average were be barrels an million and but improve of third expect by cancellations quarter terminal. cargo spot and to exports. X.X month reduced global

turn low-cost to remains the one Jen. Our of now project incremental over call increase for with export LPG expansion our loading an to month propane million I'll on mid-XXXX. track per capabilities capacity barrels

Thanks Scott. Good everyone. morning

business Our stats operational adjusted record reflect performing well. is EBITDA quarterly that and our really

Our balance strong. sheet is

We to business. continuing invest in our are

Targa's are outlook. amount capital of to returning shareholders excited are increasing and very about We an we our

transportation acquisition, systems, Basin service and levels two Higher third volumes higher the in our lower financial Let's information. increasing quarter our now from prices quarterly quarter our million offset activity contribution we primarily recent operating inflation. Delaware as expenses reported partially quarter systems placed including and XX% expenses. $XXX NGL and partial adjusted across and for operating fees additional sequentially higher increasing logistics to some benefited and Basin Delaware attributable by Targa's in was go and acquisition, higher processing a our across G&P from EBITDA were gathering over plants the

Since million about XX a through $XXX generated of weighted repurchased $XX.XX. million shares and escalators million across While contracts. inflation-linked a million about at costs across we $XX.XX. adjusted have inflation benefit repurchased for fee $XXX average price as tailwind program businesses, about were have of is higher, of the that repurchased the $XXX of in cash commercial September in we shares third average common our inception, flow We $XX reminder a free at net shares common weighted year-to-date just Targa of a quarter Targa, from price quarter. our of

end, As program. of our million under repurchase approximately $XXX million quarter remaining equity we $XXX had

or the for expect of share consistent cash per common and declared For with messaging share previous quarter, maintain an the we the dividend basis fourth same $X.XX $X.XX annualized third to a per dividend quarter. on

Looking will share to earnings outlook our operational repurchase expected ahead, our plan on our we financial strategy February, for XXXX. also provide and then quarter conjunction XXXX dividend with fourth year full color in provide in and annualized and currently call

hedged are quarter. We for fourth the well

than currently XXXX proceeds contracts from Looking and commodities hedged of higher XXXX hedge to exposure our in prices prices. are forward, in about we percent XX% our across related hedged at XXXX are all

has year continue this our As our strong year-end. performance will estimate been X.X around times Matt be at and ratio to leverage mentioned, we

Daytona into to CapEx growth billion. today, be announced of XXXX. the With some $X.X XXXX additional September receivable II $X.X facility extended to the capital our to through quarter, first quarters of spent the facility and growth the $XXX about three third upsized million During Wildcat securitization net XXXX we between spending for we X, plant and net million estimate the XXXX. pipeline We NGL accelerating and now accounts $XXX billion

remains Our CapEx for $XXX million. XXXX, estimate net maintenance at unchanged approximately

into acquisitions, Delaware contributions across We and volume prices. backed strong businesses continued to expect momentum from have XXXX, and full higher Basin heading South benefit Texas our by we growth year our and fees higher hedge from integrated

manage continue fall underlying a preference excellent hopefully with three us times attractive in very our off engage the business XXXX early feedback We to position sustainability take increasing are opportunities where get to on serve We and we that latest shareholders ratio around focused and our in largest our in and efforts. to range specifically that create invest and to growth to our is be and published us, shareholders. our organic of our our puts of that committed of are We commitment. capital to to lower continuing initiative within with return an report that practices communities is long-term half an to amount of report our our the important reflective October the over each for on seriously long we latest and four kicked term benefit range, believe the and ESG-related shareholders to strength our report target responsibility the leverage in value ESG

With continuing and the I'd will over like prioritize to to back that, safety. turn Lastly, for echo their dedication for our to Matt call I employees thank and Sanjay.

Jen. Thanks,

Session to we if have up kindly the one one you reenter open session, you Q&A ask for line line follow-up and the please that For questions. Gigi, the question Question-and-Answer limit and Q&A? would additional you

Our Instructions] comes question Colton Bean the from from Holt Pickering Co. [Operator of line & first Tudor

morning. Good

there deciding is buffer asked general Daytona off any into on targeting Prix, that is service? So quarter egress a Daytona slip on just when NGL you bring I of there constraint of were starting capacity target all when or to guess timing to two? were risk differently, a Grand

the West relates on it that of plants Mont watching we've obviously, with along and time volumes now on as we Hi, and of Colton side leg Prix the been been that the acquisition this the both for into is watching and Scott. our clearly that feeds to the our Grand cadence the G&P leg We've, some business made. Belvieu North adding Delaware

keenly our with expectations. moving the So it the you volume that at and fourth we've for Belvieu. the XX-inch G&P business, And feeds volumes pipe the time. start growth timing we've very capacity when We a operating with the Daytona on that us. are the XXXX. good look fits into our of again very of that we aware that quarter comfortable available leverages from volumes expirations third-party And got over pipeline fourth are announcing project especially volumes, third-party got Daytona of that It's our Mont quarter with feel in

things a to our Daytona how I'd period that it leg on side. West on the time. to Prix pumps we Daytona Grand operate. when allows So some over to that of efficiency get side state better we start how of us the existing in up that room like we'll also along fuel addition complements gives the also plenty and the operate of It pumps we as West leg operate would are us

Jen hedges. And commenting maybe Great. over to

and your mentioned you process XXXX. being on programmatic where next you XX% for normal I Can just level? think expand on above year course the above sit doing thought broader the for you

added impacts particularly I Waha the additional we be and there had around We've Colton. view on Waha on hedges to tightness prices natural the was think based that side. gas, on potential that likely

significantly hedged XX% XXXX. level. So are higher now actually XX% hedged for level than NGL higher that than above the the natural gas, side, we're on on right little hedged Then the bit a

into watch of Just little condensate have to extent well hedges proceeds And a strength markets, to level they're percent hedge price that strength. get north then some that our of got tried that backwardation bit to related those we to. And of continuing of we hedged contracts. and exposure NGL in all we've to XX% well of are our the

cash businesses. we So advance underpin in have do exposure business, of XXXX good do help a our continued have flow to of hedging tried but very stability job our commodity elsewhere in to across

Great. natural include the And basis a attempt risk. an also to like it sounds reduce gas hedges

have XXXX. in advance points any to We hedge Yes. directly certainly around in to price be tried basis risk our and of Waha far

transport job Our gas marketing exposure team not manage also there. of has done a but trying our hedge to really takeaway only good

I Great. appreciate the time.

our One Thank you. moment for next question.

Tonet Our next question comes from the line JPMorgan. of from Jeremy

morning. good Hi,

Good morning, Jeremy.

range. guess, the were able some guidance I last year just I look below changed pressure reaffirm yet want the to put the expectations your we walk commodities the sensitivities if EBITDA seemed results quarter kind the kind of the it at how of possibly you to and because overlay they and bottom for you end, were what on through, guide to

it So some expectations like guess versus seems materialize there. prior positives I

what you see continuing were more you those could a and Just detail XXXX. them into on bit if wondering provide if

of track business also is which performing guidance pretty conservatively, it. But is part really the I of that really, good we underlying have forecasting just well. record think a Jeremy,

on think that significantly we when to the Delaware we're acquisition system seeing every our Permian reporting bring our fractionation volume volumes feels the will well. across and and even then we're which about systems increases as the more like it ignoring record assets, Basin side quarter of volumes the So transportation

And really well. the performing the to in think, that setting we're right well that again, into of quarter, is the months We've XXXX year. our business weaker set only were heading is two prices the so we're nicely while as So up got I where now with rest comfortable guidance for go.

helpful the where That's and February, there. recognizing way as you at guide as capital. not far it. you then out how could but just And is shake wondering looking the think allocation if until thoughts return high-level XXXX could coming any Got CapEx and best to capital about provide

returning a continuing to levels across a entered business dimensions shareholders. to been execute with road provides the and returning to managing shareholders. XXXX. XXXX thinking We that then are for bit that we've on able we're we and all of also in our invest I And XXXX focused to think to and simplifying also how capital comfortable little capital in think I about map leverage

all over for years simplifications more got pros us like So like that in continuing more business shareholders amount continuing maintaining and attractive us. talking then progress, No and XXXX DevCo. that our opportunities return capital projects an repurchases. then much very And more the it we about other increasing dividend II and of higher we've we've the that several capital behind to Daytona Wildcat thankfully, additional balance share really strength so allows additional are and us focus through our to sheet the growth like on No invest in and time so for spent that last to have organic to

be similar XXXX describing think I look So in in will road that and we to forward it February. map a

lumpiness capital just projects spend types related there's growth that the On we some to the side on. capital of

So Daytona accelerating be there's projects those bit still little in of around a when of of about XXXX. think into capital spending. and on spent X year, And Train but capital lumpiness this then a will both II, Wildcat you lot

compression with in significant ads gathering as spending along ads. well Train and of natural there's XXXX cadence just X plant line So the ads

going in believe this growth So well. more that as forward set be give be visibility for certainly, will us year as we'll what and EBITDA underpinning XXXX next to doing growth very similar is XXXX, year February that But our capital we're we'll continued spending the spending to will over higher well. that comfortable EBITDA and XXXX up

will That’s Thanks. there. leave very I it helpful.

Thank you.

our moment next question. One for you. Thank

UBS. the Reynolds of Brian Our from line next comes from question

being back about can volumes years? so bit all talk before on the little target of some you fully those how about to Curious, Could just Thanks. synergies those a you of just Hi. Good work out transaction multiple talk integrated is the in perhaps the through capture system circle way volumes. everyone. morning, if far to few [indiscernible]. a Maybe just seen worked its offloaded

VI It's Red system than Frankly, greater the Hills Yes. the Red VI. full. capacity volumes including September. Hills came on in of were

Lucid process and the immediately Pretty some had do offload to So them out assets additional acquisition was Delaware our with are them Western of Delaware building on We considerably footprint. the already between in seeking upon plants, that spare certainly, what is place volumes the able the in better stepped that Delaware Lucid gas what – were had capacity. which in our of acquiring existing up some completion system, Lucid frankly. system communication old into offloads. the we the we and Target allows North prior to significant call we infrastructure

has seamlessly. gone integration substantial. the The volume So pretty is growth

the So better. we've that projects definitely benefits see the But we and integration of can it of this seeing get announced we'll the done benefits additional via we're some morning.

operational appreciate talk could are entering next but that. Great. two? year there's curious, to There's peers. XXXX some JV various given the you My one XXXX from frac desire that projects any about issues if online in if some the over coming [ph] simplify on iLink that or Thanks. I follow-up or just GCF

Scott again. Hey, Brian, is this

an an asset. GCF is that in as We idled are recognizing partners evaluating to what our the a from of operating timing to partnership moving be would with asset that at

our in second just operational definitive Train what of And Train understand we that also at moving only to discussions we So With that for look but in our the hand in have like a forward X. with but have we date respectively that. trying our permit said and volumes for point addition XXXX. partners are be are for XX. quarter would this happening not in to That a Targa also don't the obviously,

we as of that into a asset, Daytona, start into the continue expansion all GCF termination certainly footprint, we into restart So our Prix we deliveries the Mont Train when GMP taking the evaluate system, those be to consideration. our will would those volumes feeds a build-out of or XX how Belvieu, Grand with

everyone. and [indiscernible] helpful. Super Great.

Brian. Thanks,

moment Thank next our you. One question. for

Keith Our comes Stanley Wolfe question from next of Research. the from line

wanted we the Daytona. did XXXX? XXX,XXX couple even Hi, start a good And you to quick on you the pretty say previously follow-ups morning. capacity between CapEx I expansion XXXX of maybe of assume and talked I a the split think a to Should day. on

this Keith, is Jen.

little currently to and we've trying coming spending In XXXX. got we'll XXXX actually forecasted Daytona XXXX And we in have we're have then as possible. of spending online but course terms as bit that's quickly of is XXXX into a get than more in in what

spending So shift but and looks XXXX like right the now. may currently what XXXX, between that's that

it an current as barrels as then when to West it day. volume about XXX,XXX initial relates up a leg Daytona, a day. has of And reminder, Keith have And a of will barrels XXX,XXX Prix expectations, the start capacity roughly capacity our Grand we a just

complement So order I operate together each they other well. earlier those two lines efficiencies across as would to both our get in stated very fuel lines. will again, in And comments, we

might thoughts guess, a ownership hear takeaway first, Thanks My on gas. or we much been have I how second updated support either maintenance we've that. more a this through curious fall how and -- is new seen the you due view potential any if of that. And on to on the tighter-than-expected on market. for to contracting weakness has just Permian project I'm a versus question

Bobby. of lot I'll is I of think combination a tell things day. This it's of the at Hi. you a the end

have of out You some think to El going forecasted along pipelines the production better relative and planned then with maintenance west some basin. out people have had than I everyone being than more for Paso still

pipes and as Marathon then and be Whistler multiple XXXX. perspective, online, think, I and back sorry, that end from down. then all Paso coming big saw expansions day, think -- the I you up of extreme would the online come in comes El kind where point come the And weakness a it's Marathon PHP online. online PHP some intersected the went At at of So when a

the get a basin lot see I better. we'll think

have spent preparing that. lot we a time of for think I

of been of the to through line see that assets And we capacity through time. has sight our able to we operate a this group I period at being before. target all think need Our will

As always get for it them If gas gas and wanting gets of participate. pipelines, out want keep excited If always we'll out saying that Targa to to takes we participating, to done us the We'll basin, no, basis say that. people and see that. too. long-haul say and other bottoms we're we're

So be we stand I our we because for is what's to that and think through always by want stand gas ready costs the needed, operating system. NGLs what our go our plans keep

Thank you.

Thank question. for moment our you. next One

Our Barclays. of Chen next from question Theresa comes the line from

Hi, on general there. more in capture some ask you the and receiving from your nature the of credit. your and comments the I to to wanted the provide with detail Can XXQ economics projects related outlook of carbon these anticipation on here? opportunities

this Bobby, we I is We -- our rest of look system. the them sorry. like So at of around kind think economics do our traditional

were in And carbon hurdles, better. specific but the have make thresholds prior that updated that better we I'd capture here wants our economic. them will get And invest the looking is to tell projects. have in they we which of at credit to XXQ get capital team new and not we projects what and we as that much to XXQ, it's So the you

that better much XXQ specific from out. and the view returns, traditional new comment when don't to on projects just ways specific economic our under these projects in went run we So but came economics we

get makes thinking, more to it say intention us -- making accelerated our So sure these I done. it's all won't but it's about we got

we thought And XXXX. then timing, in early that start as QX said related our to of that script getting we we accounts Theresa, credits could as

have just will to get as confidence LPG quarter. in Got to curious fourth in rebound and it. your better it the And why exports that you relation

headwinds I the you then And point? this have us given downstream around Asia imagine. and currently both pervasive of also, Just at what you customers at contracted can your volumes percentage remind Europe,

this Theresa, is Hey, Scott.

from saw the reiterate quarter. that quarter-over-quarter obviously roughly First really second various the off, of you you of in global just during But million by was across it to the what driven markets. stated when we at down what comparative markets barrels as month industry That were the lot quarter. to X.X per was exports out the was whole volumes as a saw down our XX% about US A to look weaker globe. just the

to on of thus were ethylene related they produce really faced co-products that and relative that. result unattractive with the a of to the that they side And usage they of LPG of some Some Asian economics cut as products some business. where producers their

schedule quarter. We -- where nature look believe balance which feel quarter. fourth need also we up sit well impacted why the we fourth as and up because But things some saw of at some point, as plant we is That's issues that some overall we're some quarter. that why that shutdowns volumes weaker still scheduled in again, maintenance on we by the the the that that would at say shipping said, that will have that going I conducting of do quarter. some our has thus reason that be market facing the issues as feel things today, are that though our the general, With this be we would the our in But in volumes volumes COVID will in comfortable for fourth the stating better to been nature quarter this what be fourth to been the we and lifted far, is areas slowdowns what of may of up have in due China PDH activity. fourth global in to would slowed point

Thank you.

Thank you.

Seaport Sunil of comes Global. the from Sibal next Our question from line

Good for Yes. and everybody, Hi. the morning, thanks clarity. all

have obviously, business your at G&P base some impact as your the look on inflation OpEx. like the on I as when So it seems you well fees of

those incorporated are adjust on inflation the in So here any or most from results, just XQ that and has of in we I that? was we should kicked consider curious should movements in expect that significant

that the the have year. Sunil, for that number a during fact number year. renewal that this then January in in previously are is midyear in portfolio the on there of kick contracts essentially entire some a across annual I'd escalators is date that say then kick the of about our say other date most in on of kick We've this kicked contracts more and I'd contract have the X, of others contracts, that calendar Jen. based or that the minority some we talked of

course So escalators yes, year. we heading will that into fair we year. would the from next as then of a this say that to have I think XXXX forward expect through beneficiary move into we benefited of it's And net escalators be

it. And your what give us near out And rejection Permian do Got could then ethane of in play term you sense the on a you to that? trends expect footprint? across

I fully the sure not I'm question. heard

trends. the rejection Permian Ethane in and

The to pretty right. takeaway is heavily going that situation gas play into natural

move -- is you recovered pulled probably than then If incremental residue to is MMBTUs can't going more to into going are more barrels a market rejected going be tight problematic. adding gas, be gas to be

of ethane be which you'll think obviously, Belvieu. decision. if recoveries dynamics think continue being relative to always that some And residue price to ethane to economic relative I So, seen gas. low, other ability decision gets we've one and really first transported move then price, it those I will to to an see economic and recently it's the And an

Okay, got Thanks. it.

Thank you.

you. Thank

Our comes Mitra line next of Neel question Bank America. of from the from

morning. had few Hi, just I follow-ups on a good Daytona.

pipe on direction Grand Mont because are that in to part facilities. a of twin Prix go XXX,XXX places can some maybe of Texas second the processing to different to to access then And so is have it going Belvieu? a the limited the day or it feet cubic new from XX-inch going you it limitation North it is First

Pryor. is Neel, Scott Hey this

to way basically help West advantage the taking as view both the in lines Daytona West Grand Prix existing Prix albeit Daytona loop well we the further of as well system both west off of as need feed today that be the you First Grand move will Mexico Grand that as leg, a New the Prix Texas system. into is will

XXX,XXX have same how first started initial we Grand roughly It Texas. is of have the what parallel to of we of when with south a into XX-inch that but a ability Texas North Grand that amp to barrels virtually run up to call had And us Daytona. Prix point junction the on will XXX,XXX has it that we it have put similar our system allows West to a of XX-inch to refer pumps barrels up tying pipeline. when the an day in would said We capacity we capacity it which leverage day that on our capacity initial we So, do say day. it's it to Dallas Prix XXX,XXX as just leg West barrels

advantage of where So, we're the in of all activity permit. our plant is taking

North to So of of feeding it will ability well out again Daytona both West into feed the again line that and Texas take advantage Belvieu. have Grand Prix as as Mont

is. So, it of where concentration with plant lines our up activity very well

And or could It follow-up more is seemed if that. get with Belvieu, Mont you from I just limitation on to like that could North the $X.XX Texas pumps? capacity

into I coming on pumps Texas Lake leg well as Oklahoma. of both on well one nominally the where of into South we up are Belvieu. as I call a it from been Mont West and complement putting million have we've leg barrels would day going would in volumes on capacity that XX-inch as the Yes. West to as the had per the North -- cadence

commercial the the to second. to or private last that to customer Okay. you and it Great. had forward seems public Delaware. II cause And four legacy you've mix, the Winkler the Could then go that success seeing you you some activity you're project? question, Wildcat in on Wildcat on with just area just brought plant years second in comment and in like

It is as mix you a Sure. described.

been And think the systems. guys. Basin, dedication that Delaware the big -- if about recently up gobbled the on majors, have both majors of certainly those you a there's of smaller chunk acquisitions of have some We by

business So with long added that dedicated commercial of under with have a their are a And some ton which is done you mid- active, guys and portfolio. we success time, that some our which had and we've which has portfolio, of us. described to smaller up added we've of to then as that to extremely

Thank you it. Got much Okay. very

Thank next you. question. One moment for our

Goldman next from of line comes Sachs. John Our question from McKay the

that piece. I for to Thanks last pick on up Hi. time. wanted the

about spend producer talking a your seen footprint giving customers? slow bit producers of talking what better really are kind than a not or the of You slowdown your guys in confidence about. a of kind the your if just you just little lot side you maybe from could minute on volume wondering, I differentiating what's outlook and another we've midstream down. to much of starting seen of, you the guys a growth showing are was outlook peers And a have whether couple

to rigs and appreciable This across seen employed those running Midland underpins last But many and employ the we've is would We been are their lot infrastructure an the Pat on The address acreage really best that I'll our the tell seen rigs move continue Basin, them that, also McDonie. slowdown. history. to our as a continue first. of in drill. Delaware you by Basin of and the acreage. Certainly, fortunate I part, obviously people have haven't just them in acreage years lot of a

–Acorns the seen come is Chevron public year. actually their the adding rigs. what are their slowdown You've just plans [ph] out next there's information no the for them, guys from announce and available and is big And Chevrons appreciable

economics the are very and good, continue Our they stay smaller to active. guys

cetera, slowdown. the on we certainly has debt little completed. constraints, logistical getting have et drilled, but So that a bit eventually words, seen a are time have In crews waiting getting completion other some lumpy. not still made There a wells been ponds

peers. So But continued I we're seeing certainly, level high our speak activity. to or can't our of competitors a

too, that I comment picking one on question. earlier think I Maybe from Theresa's appreciate that. up

the on guys to are? exports, your have commented you what contracted back Just levels

that. I'm of could hear word John, we sorry not a

again. try I'll

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Cusimano from next line Michael comes Partners. Our Energy question from Pickering the of

have asked. been questions Good the that have from follow-ups Hi. some I of few morning. a just

help I the on Jen, appreciate First, the hedge exposure.

we heavily an annual Specifically, those quarter. fourth that in year I'm the about how first think than thinking three the is any weighted And hedges the average? basis regards I to back for XX% are weighting throughout quarters guess, that Waha, for are on? though, should more

that The time Michael. percent year. the year, hedged this be some I there for in that on then more would pretty shaping there's But, all point next averages later gave that we gas it's earlier the I'd for side. generally annual where than next actually ratable year, way can the say, in hedge be in at is, And the year

ethane And the then, you fair on follow-on did? that? line the think helpful. about a Prix That's rejection to Just that that that of quarter-to-quarter? assume experienced, volumes the that. in grew little is how Okay. it then for leg Grand assume we the what West that Can volumes with a was to Mid-Con bit And do the we lower similar

ethane. certain recovery Related Jen. and so and the around we had are Permian gas South in resulted we of the a decisions pricing that's the were what related was quarter-over-quarter. expiration contract bit and to Oak natural and the lower some making is what issues being around on This to in of really It that rejection Mid-Con on pipes we called volumes based that we out a part actually maintenance in there elsewhere little seeing

then, to it's for that And your just if plants standard fourth working remind the can plant, typically a lastly, if there's looks and that processing typical any on? lead it. you're Got spend you quarter cadence nuance Okay. the processing how ongoing us time,

whether depends. on bit required, infrastructure close else not. Each additional if it's plumbed It treating based structure different or a to or little what is is the there's plant

different. again, is say that spend generally online. across life So, is prior little the of bit each coming plant to it project a I'd the the

be see example, into as significant But quarter. that this continued spending. isn't there So lumpiness then you wouldn't XXXX, for move hitting we would for Wildcat II,

say just I'd for to and probably it's now easiest purposes, assume that, online. accurate comes project ratable spending So modeling until from a most

Okay. That’s help. Appreciate the really helpful. That’s all for me.

Michael. Thanks,

Thank now Lad would conference back to you. over closing I Sanjay to the like remarks. for turn

follow-up that interest a Targa and day. everyone available morning this call Thanks questions may to we great any be you IR Resources. was team The have. will in Have for on appreciate the your

concludes This call. you for participating. today's conference Thank

disconnect. now may You