Western Midstream Partners (WES) 2 Nov 232023 Q3 Earnings call transcript

Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners Third Quarter 2023 Earnings Call.

[Operator Instructions] I would now like to turn the call over to Director of Investor Relations, Daniel Jenkins.

You may begin.

you. Thank could Call. for you Quarter Midstream's us Conference XXXX join glad Western today Third I'm discuss to from you contain factors of like reference and and results forward-looking I'd other remind actual and that to last what slide the statements differ today. for recent to night's could deck Western accompanying public Midstream's cause earnings Form reconciliations, filings risk release non-GAAP important we most regarding that disclosures materially please today's XX-Q call, description a Relevant materials our reference posted are website. on me and today Financial are Executive With Michael Ure, Kristen Officer. Chief our Officer; Chief Shults, our I'll now over Michael. turn the call to

you, afternoon, Thank everyone. good and Daniel,

During the quarter improved all to adjusted assets third gross margin basis. and EBITDA from sequential operated across and all a led increased quarter, products adjusted throughput on

increased fourth and Basin, continue all quarter-over-quarter, the to oil increased in a throughput throughput continued in due mostly the from online gas assets, Delaware . In as other high-facility production from operability. products, South NGLs throughput natural crude new Specifically, new both expect Texas the specifically X coming DJ online. and additional trend to also Basin, came our and volumes across increased our into quarter, customers we and

record achieved NGLs the gas, third Focusing Delaware Basin, quarter. water throughput on the we crude and produced oil natural and during

third-party in approximately superior customer the entire business by has the our to gas demonstrating new Delaware For is a third from September, is parties costs record natural history, in Basin. X growth months our our service. on we natural grown than XX%, volume successfully the August more business. West's which team's providing West by day compete entirety the of and of twice rate Gadom throughput time Bcf for gas first and to averaged growing testament for Delaware ability more per Basin This Since than XXXX, volumes of the of its the focus reducing

extension from dedicated that duration and one years West producing a roughly the total acres new to our of also producer largest in to like contract customers agreement acreage of with that XXXX. recently the our to bringing by XX would I highlight extending XX,XXX executed Basin, Delaware

Gap] [Audio

we'll demand the decline, which North Loving. roughly our of and free at growth XX% expect producers the DJ greenfield when economics. our Mentone plant and producer gradually construction favorable see the Customer competitive coming expansion strategy we The of In volumes of with reached activity trough our River to grow cash we generates paired years throughput the Basin And over for the to long-term with quarters. Basin, of support the levels West's core basins, come. with Powder existing has flow,

our With that, call I and financial Kris to operational the over to will turn discuss performance.

you, Thank afternoon, good and Michael, everyone.

quarter in quarter on our assets, due throughput basis, increased Delaware sequential third throughput production to specifically X% Basin by Texas a the South natural increased investments. from online our from from other and equity in new Our gas primarily coming

increased we achieved affiliated Basin both in throughput producers. completion and to activity the due Additionally, increased DJ third-party from

basis, completion of sequential primarily Delaware crude in quarter to our in quarter and Basin oil since a XXXX. oil Delaware DJ operability due facility investments sequential by due the equity our and throughput fourth sequential note, throughput on saw basis Of in XX% X% Basin quarter NGL system. on the activity increased NGL throughput the quarter increased Basin. Our increased increased crude produced from by high We water to increase we a first throughput from oil

margin, lower assets, Mcf for gas throughput which margin gross offset impact adjusted dilutive distributions MCF and average throughput Basin. lower from equity McF gas assets on other assets from investments a natural to adjusted DJ compared was per Basin have per had by Delaware to . both as South Our our our the was and gross than a compared gas our from the which Higher our prior margin increased flat Texas our natural quarter. natural per

Excluding fourth natural slightly, adjusted volumes to addition Mcf primarily per from acquisition. our we to of due quarter potential of the margin gross expect service, gas impact any the increase cost Meritage from

a and margin average per with crude Our oil for compared our equity distributions which and prior our to as crude have margin primarily our gross adjusted assets. barrel $X.XX due coupled assets the throughput quarter, in from increase compared lower per an than oil barrel decreased by NGL to in other NGL investments. to decrease

margin lower expect throughput gross due Excluding in any our our expectation the we potential service, to of barrel quarter slightly, per equity from from fourth adjusted primarily increase a impact cost to investments.

assets adjusted barrel mostly increased water prior mix. $X.XX for by quarter, margin per the to gross to produced due our contract compared Our

expect adjusted in results. quarter per with gross We our fourth in the to be margin barrel third our quarter line

adjusted third third generated the we EBITDA of to the million, increase our X%. quarter, million. across the quarter-over-quarter by was the to Delaware in partners quarter, DJ Basin. X During of quarter in increased adjusted with due to $XXX totaled products attributable gas second all net increased Basin, throughput This throughput in margin the paired limited gross $XX $XXX a mostly million, increased Relative income natural

due during cost in in and increase expenses. higher The electricity and utility by As summer prices of driven which utility well utilities operations the maintenance was experienced our the maintenance quarter. repair typical increased hotter asset third primarily is as as months usage, expected, to we a and higher increase sequential sequential expense

contribution electricity for reimbursement our that reimbursement mind impacts costs remainder equivalent utility adjusted the XX% or in either cash Keep electricity costs. approximately gas of overall reimbursed fuel as EBITDA expense of of our of is

and inclusion the as line contribution quarter in lower offset expense our operation costs in Meritage. by to We with be fourth third from results partially maintenance of expect of quarter months our are X.X utility the

West in of and decreased Our property sequential the the on Texas in tax expense property to from basis reduction rates in property values and ad quarter a related a other tax lower valorem accrual finalization Colorado.

cash to Turning flow.

million the cash than senior treasury $XX million. a at how totaled free From year, million. cash a end generating operations this market. received issuing book acquisition. the use $XXX payment we Meritage the after of X.XX% with deal of markets was notes a the the Free rate. with of flow proceeds that second of oversubscribed were issuance coupon, cash used ultimately X-year in pleased $XXX cash X-year order a flow XXX the points million, above and by debt were which more was capital quarter third Xx an $XXX a basis portion flow our of priced capital on well August the of the perspective markets for the quarter at We time accessed quarter, distribution of third Our from

repurchased in a expanded approximately of per $X.XX includes units program allocated $XXX unit our quarter purchased from of we Occidental the aggregate we X.X unit. our an XXXX, the to Since for towards of third for aggregate million unit common November consideration $XXX consideration program of total in XX% buyback buyback and price or over billion total just $XX million million. This average have

prior compared an November distribution November In as of to Focusing X% on on distribution. a the over unit, of just we of increase the unitholders XX distribution, payable quarter's $X.XXXX per X. base to October, declared

our maintain balanced will We continue remain base of back over committed and to retiring our approach framework, we capital distribution a to and buying units debt allocation time. increasing opportunistically

capital will unitholders of unitholders' the for value the just continue our We by that investment EBITDA allocating good of be efficiently stewards create to ultimate flow. greatest prudently with and free will goal cash growing growth our

XXXX. average from expect Meritage year-over-year natural Moving of growth to assets, we throughput months annual now range in contribution throughput for growth the rates. to be With mid-single-digit X.X gas the

anticipate continue for single-digit in XXXX growth oil from low II our teens XXXX Cactus excludes NGL and for throughput throughput oil that and crude actuals. and water. the Keep impact expectations growth throughput our for We to upper crude growth NGLs produced of mind

of Focusing year. the on Basin growth still this in exit expect growth, as we the we be X to throughput activity, continue driver average Delaware the basin year-over-year throughput and to all we products expect basin-specific main

both to and and fourth this EBITDA deficiency in the the and Basin additional of expected both to crude still DJ due year-over-year DJ provide impact online declines levels These online gas the natural continued decline have Steady are revenues. that structure activity end fee and contributed in our relative the growth throughput oil producer changes products and during we subsided, to of wells to resulted in coming NGLs Basin in crude minimal projected and the a throughput we quarter. adjusted have for should increased Although modest NGLs gas throughput the natural demand activity for the term to to current believe and oil decrease near expect XXXX. average in on

$X.XX third Meritage high the billion $X.XX now performance expected Pivoting expect our financial to fourth based we III Loving and to $XXX adjusted revised of XXXX quarter. end EBITDA Meritage our expenditures previously additional Total of in we well as as maintaining prior million capital the million, EBITDA This following of our to capital on for and billion. With quarter. guidance from capital said, Mentone guidance $XXX growth contribution financial adjusted at range guidance, be to the quarter is ranges plant. that for from the are includes both Train the North

quarter quarter While the still operational the some respectively. XXXX, of to based of and XXXX out North expect push We construction the plants we and capital time XXXX the by of to of expect first XXXX and lines. Mentone into first plant on Loving be end

grown cash with XXXX. expenditure $X guidance XXXX. for which unit increase conjunction flow $X.XXX the the we've billion, million exceeding to the of approximately We unit. slightly plan most our the Meritage to in of distribution distribution per base our at distribution the capital recent Free the includes per least closing of of acquisition, base on range base $X remainder Meritage incorporation the of $X.XX Based to for

distribution our to the Board underlying consider the to in will additional adjustments. increase support quarterly on base as basis continue base distribution business recommending fundamentals of and evaluate We the an a will our

distribution the we a also framework concept of during for capital X.Xx that And We if enhanced for unitholders our we leverage to to Michael threshold year. remain by said, cash said to earlier, XXXX. levels returning with pre-Meritage find path that we flow committed the can't see With as use a committed of XXXX. excess remain a net year-end to leverage free year-end better

operated XXXX. expect to throughput activity producer we Finally, decline wells levels assets our focusing not on strong, third more yet average provided the to our to In we we relative in though come year-over-year for Basin, basin, the increase In the trough and Delaware Even quarter. market official year-over-year. the remain to DJ of expect XXXX. the have guidance, we reached

Basin modest XXXX, gas natural for DJ would more to revenue minimal XXXX NGL the a in volumes, our the in demand adjusted but back the forward, especially deficiency volume will Going and have oil on volumes in with over EBITDA of volumes a minimum total coming slower, associated growth increases at we pace. crude collect noticeable due more moderate Increased quarters throughput and and expect in impact be commitments. fee we half

We throughput also Powder addition River gas associated of expect Meritage growth in assets. the healthy with the natural Basin

Turning to capital expenditures.

into plant expansion septal due year XXXX and to producers into pushed early moving are We needs well updated next into lines, projects connects time capital pushing seeing construction XXXX. flex

Mentone capital we in such, bring Loving almost facilities XXXX XXXX, for early As cost and early as in for respectively. look we and North cost of to online the all plant the expect XXXX some come of to those and

transaction now new we closed, capital the the continue needs to Meritage for Additionally, evaluate the assets. that is

order and capital slightly XXXX. throughput to year for We to these for expect in complete heavier both certain needed assets increasing 'XX expansion XXXX in a projects be

now With that, Michael. over call turn I will to the

Thank Kristen. you,

relative I we we a points Before open strong key in few transition reiterate a Q&A, up as into to exit like West positioned throughput would and XXXX. it is in and EBITDA why XXXX growth this well very for for and year West adjusted position is highlight XXXX. to

capture expect capital first acquisition from highlighted consummated an when million that benefit are valuation, the come organic EBITDA to result volume natural plant and to quarter These the be our pre-synergy position partnership on the to attractive expansion Meritage $XXX processing plants value are Train increase end of capital-efficient supported we Mentone by will to Loving based transaction. expansions XXXX, continue us by to mind, strong quarter The the such first million extremely for significant and online. will projects III of as they once these complete of XXXX. to to by expect full Keep approximately $XXX put We at Xx a North commitments, we end was in gas capacity. plant incremental we announced the the of which should X adjusted in projects multiple in we . minimum more the

returning in is to amongst yield stakeholders, continue leading which on companies. demonstrated midstream capital Additionally, capital return our total focused we to be

that flow adjusted opportunities Occidental closing to opportunistic Our return from the remain increased additional balanced opportunities, view time and generation, and capital Meritage of with buyback September. enhance M&A expanded increase upon EBITDA return we committed capital like approach to is over unit with Meritage the a transaction as of free cash our base distribution seen in

screen Russell leading West companies and a midstream with XXXX members distribution continues XXXX to trailing grade to midstream an the midstream to is West relative favorably comparing Russell sector XX-month relative the Finally, now nearly credit Index. yield and opportunity investment instrument the When $X.XX. rating of Index, of the

would hard I call work also all of acquisition. of have thanking to close Meritage dedication to West the our extend the to of our things been employees part like additional by like to for the entire organization. would and their workforce I that all

enabled moving fourth finishing additional to questions. open for it's effort quickly progress look enhancing acquisitions the transaction and substantial you we'll with and our the results creating close as we our yield are employees' transition With integration to a forward or on quarter February. that, I that to forward our working Your the XXXX strong stakeholders. on strategic us contributions daily footing our to continue in value begin for operations, line on call year updating on whether

line first Dounis the Instructions] Your Spiro question [Operator with from comes of Citi.

as part we the a prepared in strategy you if Meritage, of your remarks, historically. been with starting hasn't Michael, really Maybe could. said

this is of So new. kind

seeing Meritage you So curious, how And is strategy more if a conducive provide a M&A came this just shift just just a little or maybe environment? context in can together? on more

a not Definitely Spiro. in strategy. Thanks, Yes. shift

it get Our larger. looked This we we for opportunities. is looking either as strategy exit has an the there. been potentially out always perspective, needed would footprint From acquisition that or to was opportunity M&A be at opportunistically our area

us and opportunity As as at whole, be looked for a this this what for company we the and we might excited area got really particular at overall. become the about to

us company sense the potential following of in And been that post get timing the And made opportunity that just assets for our to a lot heels could doing for some so a confident able we it's an time. actually our then to be and quite that we've feel these greater across opportunities able synergies for in tuck been in efficient growth the be and of operations. and to more to achieve board work on we've the transformation order

we a So as opportunity definitely shift that had executed and really third not home executing in the a transaction in indicated, quarter. just found that we strategy, opportunistically as

it. Got Helpful. CapEx. gears it. switching to And Got

next that your together it a there, little sounds remarks like year. maybe in CapEx keep factors First, coming bit elevated few a

have you mentioned sense needs Meritage, of higher maybe a sort what should growing result? processing expect once we in DJ And kind like that connect question spend, Sounds there with Meritage, spending? of X there's kind that a or sense. obviously, of But is and Delaware, a makes capital you long to run more be rate nature again, here. as of DJ of is also allocated biggest Or the available X-part of capital a at of again, Is your year? next do well which capacity? substantial? the kind CapEx looking more something Just

Yes.

right the now. on extra we've So the DJ, Spiro, you're capacity got in right, DJ

forth spending say and on. So of and in you've be pads as I'd just relatively connecting kind we're new XXXX, there seen we're so minimal any what capital that will so

yes, bit next there's for little a capital growth year Meritage, For more Meritage.

I of hit to things connects the well so that budget. that compression would XXXX expect And nature and

the UBS. line comes from question with next Brian Reynolds of your And

up you the Kristen, to CapEx on Spiro's follow Maybe full. I mentioned open plants that think you expect effectively question, processing to

plant should seems just we be that is like more the thinking more how So about in acreage and gaining processing next the it Delaware? given WEST dedications

in take we've that the when when is comes way the interruptible plant that we the question. commitments customers Brian, it to to a offloaded online. bridge they great the order commitments to that between that in timing sort in order to Yes, timing volumes. Yes, kicked our volumes to from that's We've those manage of as bridge receive when offloaded

And come full. ultimately a so they're that's that plants online

to we currently area need here order sit up see first, in expansions need North that a with sit we in as opportunity North area offer on we new the the today, for expand expanded the us As more don't additional today, of Loving should greenfield arise. But to here the Loving. footprint we

Delaware onto running there the and there offloaded to the currently And like being and are way that back quarter Great. many your this sounds have growing above should at how will of of it relates point? ahead it system? MVCs DJ, expect some Is as 'XX Appreciate there But that 'XX comes any to that. on looking with processing Clearly, is at be be it half volumes or impact then And is sensitize margin will to then growth. we 'XX, first tailwinds this potentially some those full. the to are plants second growth juncture? when early the

Yes.

volumes as saying, of the growth side on was So we're things, offloading Michael today.

III Mentone get to so and decrease you that on expect our capacity we're rate, would the system as And offloads. those that online, bringing train of

your Obviously, -- be And full quite So when II a you last can on that question asked? answered that's today. Sue, Mentone bit -- sorry, we're repeat we X. saying day expect then you being offload that to you

no just to that some relates benefits you're offloading as see Just margin, given integrated? it could margin I longer mean,

definitely We will.

see to every that. bit little incremental of margin a from benefit expect We month

running that offload the gross some not. got margin But would obviously plant, we're plant, maintenance OpEx I people on and to as benefit reduced. side yes, that fees on well adjusted are So expect see are as that higher as our we've

And still your it to primarily the then DJ, the question on would oil would as Brian, here minimum be commitments volume we expect currently that we sits on received answer XXXX would there throughout -- side today.

from Tonet next your of Jeremy with line question JPMorgan. And comes the

Jeremy.

your just giving the a just how to that's general business you're business. now, about wanted and the about about take this as now about that think sense Just possible, base digit -- otherwise? organic portfolio far growth. how in if organic Just you growth think the think right And think guide, stands step how back 'XX it we right but at do digit, it single as for you not think to mid-single as you about point? get low wondering Obviously, a your trying

Yes.

So I about XXXX. Slide as grow on XXXX. And would our the estimated attention we to we'll we into of I'd XXXX X for growth deck look in top that rates expectation where actually talk

And so throughout tailwinds, to an frankly, which growth our contributing XXXX. positive are over we're operated portfolio, seeing in expected overall XXXX

Got color you any from perspective, it. there? could And EBITDA share that

yet. just close No

actually haven't on guidance, in of expectations information out process the from call a our definitely our put of are in what expectations XXXX. the drivers expectations of the walk the terms lot to volumetric our but for full their that and for We might receiving forward primary growth year into through on half producers still year XXXX. next be look quarter part of this for of and back be plans drilling will next for first the what We're

through first expectations might we of our what then our call we'll that on next with to to then definitely on the as market that information So year, quarter EBITDA be be walk are gather able growth. share in the and able

I shift Got in of kind a minute, there. if DJ bigger And a and for the got see bit Williams wanted helpful the just it. to That's I that basin. could, to

there. now they're think I #X process the

us any this dynamics the DJ this could or you thoughts at share if point? the Just in with on any wondering that other competitive changes way

foresee having dynamics. Yes, competitive Definitely on a a company. us it's Williams a don't great is terms question. great meaningful impact in that the of

that from on as view and wouldn't perspective. the And it it's basin. they But highly a very so DJ. have of expect us. corroborates would our a our basin nature whole the as the that fact Obviously, of much positive that the I certainly they're as a in impact sign prolific investing meaningful are

just X Meritage acquisition. Got it. X last I sneak for And the if could in

a how it you or accretive trajectory And Just wondering, see basis, just over time? per on this is fee? dilutive per unit from do barrel per or business Mcf to the

gross bit accretive a be So see margin our expect volumes we Mcf into a Mcf in throughput it would add little per increase QX numbers. those per basis. actually I just on as Meritage to our

of Instructions] Our question [Operator of the line comes Bank next from America. Neel with Mitra

underpinning I just to maybe forward, increases. the going understand wanted rationale distribution

the that or in you a with at higher. capital the and you the allocation? wanted debt Meritage priorities ratios that bit look formula understand behind little mix and wanted of how have to do Now at payout background CFO? going looking you're a forward? And I that look when where at is increases, you distribution is to Just percentage understand

a it's Yes, Neel. question, great

be our over to level is driver So we able that set believe we a time. the base is primary to that stable want distribution at

much were as time. had that actually we've we that level reason had the And this now fact stronger primary distribution first overall from for sustainability the cash had would distribution primarily capital go free so which the increases fact a Bcf since incremental base we that as perspective received over of year flow and growth we're we we the the commitments established as are, spending for base indicate one, multiple in the that

of With bringing we're sustainable increase of expectation with that the flow fact distribution. the new cash online therefore, was light in level on coming increase and It a through Meritage incremental our most the so in that free is acquisition, transaction. that the

a at a when so we're level holy going it on at And what basis, base is looking believe look do we distribution sustainable forward. actually we

always terms can in basis, annual free at on capital. capital we're that have we looking the that we our all remaining flow ways at changes prioritization of cash any of for of return opportunistic made actually that haven't We an

pay that. a much unit repurchases of down And both there's on benefit in So debt, repurchase if actually unit debt pretty think down side, repurchases, this great debt the example, addition the if the then of obviously, those great through then pay we've things for as period, to opportunities particular as company. we into of we'll year, Meritage seen do well we'll it's

And have expectations, look continue to quarterly in and in think superior And in base incremental continued on relative we our we'll that's that year to sustainability forward we progress then, it potentially value be that in basis warrants puts then slides. as us overall. a place with and distribution levers that period. where we going for we distribution of we at able so be that's of the or expectations highlighted terms an base our determine it as a meet going our performance that expectations to not to that pay relative to to we've enhanced pull. out have and our criteria the increase to And board those whether that If pay distribution comes

hope, Neel, . I So that answers question. your

factors you numbers know Yes. can't into but for kind I calculation wells go But other just I answer That's cost and the it's a similar year? shake as later service outline And I the line are there maybe very in expected commodity some just prices. components. out, as appreciate follow-up, helpful. I you than forward-looking know that backward-looking could of it. the were understand and next it, turned the of

into going we should general year? So themes look that any are at there next

Neel. Yes, it's great a question,

So that, takes is that the that it period. the works way calculation previous

that the the out generate contracts, predetermined the the end accordance determines cash of flow of and period need would of for of what return. to those free So and instance, the that XXXX be in free rate with of fees in be, cash combines XXXX the rate expectations under would then in what order to through contracts ultimately flow this those with would relative it

where those that scenario year would previous into the was the a expect the in rate were there's in expected the to future return periods, go of were would rate that expected on . to of underperformance flat, have up held generate when rates determined. all expectations same as was you if order as that So they volumes, same before

So does context works. bit that of how you a give hopefully little that of

today, return. would yet for will the end order little what forecast XXXX bit As to those expectations cost the into order be we give occur EBITDA rate in system volumes we'll and in information that able would be of to bring year the on generate then long-term and we the here wherein quite throughout sit know generate don't part to more be what onto those this that first capital. of That next our a to

And the Gabe from with Mizuho. next the comes of Moreen question line

Maybe Is that with on spend year. compared just Kristian start year clarification a I to just can the it being talked next heavier heavier CapEx a I what about wanted that. quick clarify just XXXX? to

Yes, that's Gabe. right,

So heavier XXXX. in was spending Meritage why compared to

think like the around rate you're I of that. asset when we historically, looking diligence that. doing at on of $XX looked due an million kind And for a run CapEx spend

that to relative heavier slightly. just so And

Got it.

ask what's quarters can that being talk talk would less been out that of very you just can staff a a helpful? here about basins got. about other you I when any there talk maybe you've position? Are It's I up. you know volumes competitive And going But that Okay. the on about couple it. bit capital there, be then spending little Texas much considering if you

Yes.

volumes frankly that's the doing relationships, reflection new actually, So is team more a job and and onto relationships actually bringing confidence those of incredible system. garnering with increased down our the counterparties establishing there new

not a gaining into team's area. capital. of actually, So reflection new the of a coming the customers of excellent confidence more meaningful from job and really It's amount

volumes and our to there. in resulting as much nature the coming competitively But of definitely increased speaks positioned we're about customer think is high-touch anything, with the service system. believe we our as the element the customers strong So way business we on that in that

to in pertains the if have third-party that than don't the downstream just kind you integrated customer integration milestone third-party producer as you between your more peers might Can bit being terms pick the and vein. downstream a that assets? on Maybe it Delaware foot volumes looking shoe you your But particularly everyone had in different in overall. little Are about just can as is really that terms to Earlier other you customers you've getting need a of add I viewing volumes, chose to across and in Or it? Basin. third-party stay because third-party can mentioned less you of positioning that that talk of hindrance the West's that options? capacity

differentiate the our making high-touch customers coming volumes are from making concentrated nature service be so the Actually, through us, it -- passed needs marketing great through all a marketing we that way creating the our that through on ability are properly sure solution operations we to as a some by cared but their assurance that it's on that it's back. at combining system the then that to for through the Yes, ourselves is opposed we obviously, provide to of cost all then to for system overall flow the down an and the look But question. can are that our can focusing that integrated their and at process water. customers arbitrage no we we is, providing exclusively we do sure through optimizing throughput actually positive of coming and

them. and the every base operability, superior we sure a inherent operability which to service in so that we going be of overall we're such our this product, incidentally making customer stewards increased making high quarter that year customer that provide with relationship sure strong have has that is us, And our that for that our knows sustained

And those we virtue So customer growth you're of by to view terms acquisition as for customers third-party retention. it's that it a in of is opportunity what increased new seeing as frankly, as ourselves. differentiate us our rained and commitments from well our great

Fargo. Baramov comes with Ned line your And of from Wells next the question

Meritage the talk on and had now. asset about the integration findings the potential magnitude any several You've you progress maybe Could early for weeks of synergies?

Yes.

excited working into a very to well obviously organization. them for have So we is Actually, hand perspective, for level. X it's the team about a The excited our like thanks between The the question. are what glove found very being of as as an companies. great integration field literally teams together And very like we're far is franchise overall part at Midstream. overall. a the in

still there. to we're that the a well drive early diligent and finding can little sure greater that a that very really be to I all to growth we're trying integration is be to we what opportunities excited overall are positively the EBITDA out teams would perspective it's determine because in potentially going work But So synergies from make able say might together.

on customer the had new this economics the what customer then amendment? extended place with And to are you agreement before contract, of comparable the the in

would So overall. this competitive it customer that say is at existing are extension we rates from an very done

of into an agreement at an competitive it's incremental existing and the So extension of an addition rates. system acreage

customer incredible So have long-standing an report. it's a a had relationship we that with

We highest have the if them us. as obviously, appears for the amount for same and of they do respect it

being relationship excited able continue really we're about to that into So long future. the

Michael now Ure. back And call to I over the turn will

Thank look third everyone, would again joining quarter you, holidays the quarter speaking and to everyone of the for for wish call. happy like year. an forward next to I early, first in

call. conference today's concludes this And

disconnect. now may You