Intercontinental Exchange (ICE) 8 Feb 242023 Q4 Earnings call transcript

Hello, everyone, and welcome to the ICE Fourth Quarter 2023 Earnings Conference Call and Webcast. My name is Charlie and I'll be coordinating the call today. [Operator Instructions] I will now hand over to our host, Katia Gonzalez, Manager of Investor Relations to begin. Katia, please go ahead.

Good morning. earnings section presentation of XXXX in be quarter Investors the the fourth release can and found ICE's ice.com. may These our items forward-looking call call and statements. contain will be will available for be archived replay. Today's no undertake are and risks, we which to statements, obligation update, current subject represent uncertainties. and to assumptions judgment our These

XXXX that with For described please statements, in risks our Form and to filings could our other XX-K description SEC. a the differ results the forward-looking refer cause of materially those to from

certain core to measures refer measures. we We of non-GAAP supplement, earnings our our non-GAAP are our believe In cash business reflective more operations and performance.

a refers on GAAP terms this to per share. adjusted find expenses revenue in used revenue to net transaction-based When to diluted refers earnings materials. You'll the call, net reconciliation earnings the adjusted equivalent of earnings and

unless the of Throughout explanatory see Please references the earnings additional indicated, currency growth supplement second of to the constant a are page definition otherwise for this certain regarding presentation, items. on basis. notes the on revenue details

us Lynn With Financial President; Warren. call today Jackson, to Chair Sprecher, NYSE. Ben Officer; Gardiner, Jeff and CEO; over are Warren President now and turn Chief of I'll the the Martin, on call

thank on Thanks, and summary everyone, joining morning, results. and I'll XXXX highlights from begin key for some Katia. our today. strong Slide Good us a with quarter X you of fourth our record

year. X% last $X.X pro for forma versus of and Knight a billion quarter net revenues increased record totaled Fourth the acquisition Black

X% a For forma the full year, by record and totaled revenues year-over-year. pro billion, a basis, increased $X on

acceleration earnings up adjusted share original versus lower EPS fourth year million also of X% totaled helped This operating the adjusted $X full and guidance compensation of X% low XXXX. per driven quarter strong synergies. our expenses record drive performance quarter range, $X.XX, $X.XX, Fourth expense of to by of up year-over-year below expense and million, end $XXX

continuing cash as to well flow September Black return to as such through make to also our totaled These nearly $X.X strategic Bradstreet since reduce as billion, acquisition acquisition early the outstanding million a shareholders flows Black closed and XXXX strong divestment September. billion $X.X stake on dividends Knight free to $XXX by billion $X us while in our investments cash Dun roughly & full in record of by enabling debt we us Knight. of fourth the in quarter enabled

a result, EBITDA. pro approximately at ended leverage year the forma As adjusted X.Xx

This Transaction million let's a revenues Exchange move our X, net driven Now were I'll Slide quarter segment. billion, the XX% provide to record XX%, overview performance totaled an up in a $XXX where revenues Fourth of XX% year-over-year. part $X.X of up of increase by XX% complex, rate XX% revenues, in by revenues, performance which growth increase record XX% a year-over-year. our and for environmental setter XX% growth record another interest TTF natural in energy in our business driven in strong grew our global and included business. gas oil

well and January evidenced in for XX% including tone interest addition, strong daily commodities, as what will as levels January, year-over-year, we the expect global total another sets XX% open total record growth in by across In robust in XX% average options. volumes growth and of energy ags energy up be year,

total the across other of from related the market year the globe, for transfers It's data last our to global of $XXX number including strong rolling NYSE a by Shifting IPOs totaled fourth initial and the industry million revenues was XX in in noting off Exchange to include listings NYSE straight the offset fees data Similar business, in quarter. customers consuming transfers revenues, services XXXX. of partially year, the a exchanges. led and recurring despite that our for which to the growth our listing worth second energy slower IPO a quarter, environmental in

in grow expect business with we XXXX, growth listing quarter. listings by to digits, driven our low the in in the futures abating second pressure Exchange in segment initial offset data, continued to growth exchange Looking somewhat single recurring on by strong revenues fees our in

now quarter million, Income up Data Fixed revenue revenues discuss Services and record Turning a including segment. $XXX of Fourth million. a Slide our totaled X% ago, I'll year $XXX to X. transaction versus

BondPoint rates. year, in by at For revenues has which, the XX%, full driven CAGR higher our transaction driven by growth acquisition grown growing bonds, adoption XX% since and at a increased XX% part of ICE interest TMC of institutional and

million a million an the quarter. return $XXX Recurring in reference our year-over-year and $XXX X% growth X% and quarter driven to the quarter, in by data revenues third record revenues in Fixed fourth our index In grew by from Data X%, acceleration double-digit Analytics business, totaled a fourth in by increased Income of record and growth business. pricing

in energy as and well offerings. in our strong quarter data our grew the network across feeds Other derivative analytics Within by driven and services customers focused business, and environmental from our the growth continued chat fourth X% offering. over as desktop, consolidated to realize we continue see XXXX our continued last X the demand to with desktop single-digit of investments we platform to record a to business, CAGR revenue robust contributing continue years. growth feeds high enhance In our past ICE benefits a

in fixed in trends revenues Looking we analytics expect as grow across and expect well data to desktops XXXX, business mid-single-digit income, to Fixed we as Services the that as and continue. Income our will Data range feeds aforementioned the recurring and

discuss the revenues our $XXX segment. XX% of fourth on for results Technology roughly comments accounting our quarter, of flip million Please to with of where total on that above revenue revenues. segment end high note recurring the million $XXX guidance X, Mortgage I a range, my pro the ICE in basis. forma totaled growth will in are Technology slightly revenue Please Slide Mortgage

operating on a In income year-over-year. increased addition, pro forma basis, X%

to the that was related to including new what recognize the transparency for off and since We quarters workflow thus Encompass clients and is new implement sales, strong and the product registering revenue, year take This MSP for finish clear XXXX, and technology sales best of greater MSP one there Encompass customers as strong and had industry finish capped XXXX a across sales. new XX efficiencies. drive the best will X And while momentum data time these seek solutions clients.

guidance. near-term total to Knight we with outlook in low Technology end call in the revenue XXXX growth single-digit be Mortgage our basis mid-single-digit Black in the year. to September, a Shifting forma of full Consistent range closing provided to the expect modest our worth improvement on The low to quarters range for and noting application fourth. year first second third It improvement a each seasonality a volumes, of origination is that the high end growth the both while substantial and only relative range. assumes the benefit tends double-digit more the underwrites in and in to pro

decline for the the of be $X $XX revenues roughly million in including roughly fourth flat, to expected quarter Recurring a million first relative to to year is quarter. the

the as on that improve in reemerging expect which implement thereafter by is year-over-year two largely acquired, of in first one sequential We expect pressure to the recurring with half. attrition were we customers driven XXXX. sales revenues growth back second The sequentially was in the quarter completed

cross-sell have to million and Synergies thereafter. that begin as XXXX across by [ synergies signed on be worth close, synergies. or X are X/X ] have million Moving not months to signings have these recognized and post impact we been Knight and Through is first in our our months noting roughly nearly and XXXX X-year as of $XX expected in $XXX revenue of platform a largely material driven flagship our largely the well annualized data -- It MSP revenues success to will target. recurring Encompass Black analytics.

Turning to expense synergies.

of end $XXX expect $XXX by ahead original million We our of million realize to annualized the expectations approximately year-end. XXXX, savings of by in roughly

conclude Slide I'll my with some X on guidance. remarks additional

synergies, billion. These initiatives to are continue billion annualized between investments and in I to people, noted somewhat are prior approximately years, reach expenses to the which We expense $XXX year-end enhancement in our $X.XX various the growth by of adjusted technology, expect offset run invest Similar XXXX. to million we and by business. to rate XXXX operating expected MSP including across our be savings our $X.XX expect

short-term expense to quarters nonoperating continue between and down million Black to commercial term pay below on decline paper related be loan slightly to first path we depending and should of $XXX And rates, expenses subsequent Moving our $XXX we quarter. the outstanding interest future in million line, Knight the as the in expect these acquisition.

We of expansion and approximately be finally, in year full million and to detail the vast with Knight, Black of across to directed range to anticipate Jacksonville. up the from York, range shortly, technology slightly to full XX% CapEx New investments million to expected be a And XXXX through $XXX year year in rate including the U.K. $XXX various million, space be million the relating majority office new full and to related $XXX delivered tax XX%, to we that expect Ben will $XXX taxes. impact of to of the and London improvement the higher

across while, acquisition at Black In our delivered time, and very billion $X our summary, through operating business year We cash another per needs shareholders a finish continue strong record Mortgage flow our to the the returning network Knight. same of the earnings the nearly of invest to free our income, to customers grew of Technology revenues, to expand meet and dividend, we share.

growth on, shareholder As creating we value. we're focused kick off once and delivering again, XXXX,

But Ben. it questions for happy hand I'll Q&A. be to to during take your now, over I'll

morning. thank Please Warren, to you, you Thank for turn Slide this X. joining us and all

We record for year are pleased report ICE. to another

growth Our variety more long-term to that driven drive that macroeconomic strong in macroeconomic a classes XXXX of in across will environments. performance environment. a dynamic importantly, But secular results asset tailwinds underpinning part by are continue were

our secular and in to opens only of gas Across platform our natural complex across drove revenues XXXX, the depth energy across energy capture clean transition. our including volumes global energy and well records tailwinds us markets, but globalization the of not the breadth and

navigate its volumes that benchmark In that evolution This the building and of set price to its across in to Brent the record record the Brent help enable ability to into Most global XXXX the markets, well our evolution the transition. spectrum last energy positions Midland energy critical in XXXX, WTI invested transparency recently, latest global depends that us surpassing platform addition the oil will clean underwent on ICE's latest to participants the a provide we've demonstrating contributed basket. with market Brent fundamentals. in reflect

share. gain our to and the reached volumes WTI same time, continues At record contract

other with strong time, same the year-over-year. in open refined performance XXXX January products has This March XX%. last customers by crude ADV addition, become complex, greater but dynamics trading products is activity as illustrated increasingly provide also seeking global major trade in evolve liquidity our trend precision. not and only hedging is record volumes interest surpassing record the XX% carried at This with up that set In the into in XXXX, the benchmarks, and in are and XXXX in of up

a spans In adopted natural a benchmarks global North America, across gas Europe our platform markets, we've that playbook, similar Asia. building and

record As our with the the Brent as led benchmarks performance in by chains expansive of natural evident record evolve gas was of in This XXXX, delivering which globalize, and we of natural critical increasing global plays and global volumes contract, signals. a our quality XX% providing positioned strong business energy in revenues role year-over-year. TTF participation gas supply and our range have price benchmark gas is

similar our up complex quarter out including and fourth Asian volumes A is XXXX dynamic in growth, playing XX% in ever. our continued highest with participation JKM

strength set trends record open nearly record of gas. price our open on January In XX in to to robust gas natural XXXX. lots formation interest continue through the see significance million surpassing to interest XX, global total contracts This including underscore the the of addition, January, continues of we

environmentals were over We also transparency price decade carbon into to importance the recognizing a early ago. diversify of

remain term, emissions. participants As environmental market we governments, look corporates the longer policy reduce out committed to over and carbon to

As is electricity This such, in in and placing quarter. valuing increase continued participants, illustrated pollution, as externalities, on a carbon storage price digits the will growth such by in as well active continue market as to sequestration fourth carbon-free double up importance.

year-over-year. with environmental At the up time, X% same markets XXXX North American our year volumes marked in record another

a carbon the ICE value the largest because to of this to is of Importantly, growth uniquely capture. products are such positioned externalities trend one networks that we cycle, across has environmental

today, In trends gas over we that of and began And in revenues XX% summary, including energy natural up energy the ago. strong X environmentals contributed transition our globalization and on over the sources, investing XX% platform an of global of in over natural energy make over past The XX% years. are decade cleaner in a have X% growth including period, has annual to performance growth average the average grown revenue energy and XXXX. rate gas our that

the expanded as serving the crude network, of offer range to energy contract our customers. With cornerstone oil our of our content Brent we've we that

network solutions, energy energy enhance markets critical We to energy delivers across the have capital positioned navigate needed price built and alongside risk evolution spectrum grow and continue continued transparency comprehensive is while the of global efficiencies the global provides management transition. that providing to to our the

This volumes open risks consistent in combined saw services of energy help our global more management XXXX with and supply interest records tools, large through our of of suite to record customers than has up which of acts issues, nature January, makes portfolio, hit network products and manage chain ags commodity X,XXX acts and men. around evolving our

revenue growth Income for again Services secular interest X% both recurring highlighting increased investing demand the all-weather year automation, driven higher volatility, once up passive Data trends versus record strength This year solutions was and flexible Market of Moving business the another model. to XXXX, in in of strength need rates and business. a to our by as and ago. contributed growth, delivery transaction segment for our and Fixed revenues such

and Higher in performance XXXX. to in of efforts nearly Bonds in institutional up our our across ICE connectivity increase record XXXX was XX% that business, and of platform top another on interest rates revenues XXX% year build a continued drove our

addition, in grew revenues continue we've to we past in made where X% returns see XXXX. on services network other and data In investments business our

driven to contributed in the displacements number offering our investments we've feeds area incumbents, past enhance reduce of of a friction high the wins driver by workflow a we've multi-asset key of to directly made in growth revenue larger desktops, XXXX. made our business, growth in to to XXXX. across and Within investments class revenue elevate single-digit led In consolidated double-digit this

that expand continuing the business. services, we products Finally, evolve Services as Data risks as add transparency Income risks to on to focused emerging Fixed our commonly and enthusiasm move up forward, as well understood our is both and make and which

participants leverage analytics, risk management their geospatial risk data climate to our as and climate Our market for with in third-party of the fixed part help investing strength example, income market manage better processes. overall

business. to leveraging mortgages, we build data our mission-critical network to Similar operate the income and Turning energy workflow now mortgage drive we global our in fixed are our solutions playbook market-leading to and efficiencies. expertise technology, businesses, innovative that across

Our of the to an industry us network point true moving transformation mortgage loan offering from to acquisition that positions market consumer all the analog lead way digital. a to spans is life secondary of of the through providing that

clients, sales share that we In XX Encompass for in closed to this quarter and MSP to Encompass a highest Encompass and regard, new the clients X combined. we're for fourth new pleased and the contributing X years on in the new record MSP last

Bank, Building their mentioned for retail on such correspondent the we last and added the wins as M&T Bank, James call, on Encompass channels. Raymond

nonbank Encompass brought a onto lender the also third significant Carrington, We back and party. a platform servicer from

of as start we Mortgage Encompass client, Fifth and Solutions Texas four wins Credit last to in Capital MSP, quarter, such the XXXX. was existing mentioned on Union, For call, CapEd the building on fourth Third we closed the had that an

integration that XXXX, enter successful executing pain we of on and remain on focused across the Black points the of exist we mortgage and relieving As strategy Knight our workflow. inefficiencies the

integrating our consistent Black network. systems. opportunity models tax, Importantly, our data, while as and MSP behind proposition greater we've blueprint the closing transparency networks, to approach valuation Knight of the efficiency and applied into includes our value of one near-term other such our Encompass secular fee with remains drive growth datasets, across and A our enhancing flood investing

a origination reducing system. is onboard servicing, errors into time near-term data automation through straight digital our to to MSP, example platform from and the cost, document bridge MSP loans Another building integrating and to

to providing lead and and origination of efficiencies ecosystem fully mortgage additional third example our builds lenders, in process engine, aspect towards the solutions compliance every and continued the into options integrated is well. our At product opportunity the mortgage greater strengthening our as servicers further near-term moving by servicing -- partners. same A a investment upon time, providing

that for an near-term opportunity In a to our the on executed SaaS-based investment advance have and against for executing to commitments we companies we our other continue e-notes duplication, for MSP these advance successful service we following as mentioned, servicing digital such that process document offered have with to opportunities are servicing and customers. help golden record acquired. vault quality documents parallel Simultaneously, we similar to our platform reduce to as just extend improve see that other documents this is origination and costs reduce to market-leading our

us our see that across we of conversion. The is days marketplace. fraction addressable analog revenue are to we only $X.X value the market our resonating platform our can grow billion the of early the today we in are a solutions the summary, $XX in to technology gives platform seeing pleased demand In the confidence of in and the delivered digital that is by business billion that's comprehensive an

With Jeff. that, to over call I'll now turn the

you crude by Russian Thank forced The the unique supply and conflict chain. and you, price $XX off everyone, us. Slide of a the year Japan, U.S., joining and kicked was by ban the Ben. turn Please Australia, XXXX markets. European cap of Good Russian year on oil XX. a to with realignment imposed global energy morning, import Ukrainian for Canada the energy all for thank a oil driven the and a

U.S. that Iranian which of caused In is October, East testing oil. Senate bill the further imposing on a painful a Middle with to send conflict the the House relationships U.S. energy-producing Representatives sanctions erupted Israel within and to

largest the chain of of navigating to supply November, region. tankers out operations crude began attacking causing ships the modify that oil their In terrorists Red operators Sea, world's

to the attempting higher production, And and throughout Middle oil to for XXXX, set of Russia quotas to producers. benefit drive OPEC+ cut East oil met prices

collapse. decline XXXX with record backdrop, recent to geopolitical end more the year ended be the or supply X. complex day a towards the Red where the prices since that COVID highs. case. that's lower Brent Well, price prices than assume actually year it annual pushing the shocks oil would crude oil this not started, we the marking Even Sea with and reasonable oil the than from delay shipped for prices first oil With

When between grade -- a and called of futures middle early in hostile. former Brent acquired Exchange of on oil in field not XXXXs, flagship in the deepwater then waters contract oil is product Brent. The London there environment well-known we working oil the the was four deep The its International of the a consisted Sea built are platforms of and the North the Norway. XXXXs Scotland --

So oil pipelines move oil were where Islands, remote tankers. to built the the seaborne Shetland was to loaded directly Brent onto

trying was One faced of to deteriorating. from underlying contract the other oil allow up a drying exchange that reconstituted ICE grow and production We the our locations began oil continue we their the drove of with fields working Brent the issue which this the were call away consensus challenges Brent to oilfield Brent. newly to early newly of index, trading grades the Brent acquired volumes futures was and to that on oil a from industry make into oil ICE way substantial

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caused have with responses price its oil since oil reconstitution roughly ICE marginal grades U.S. the for price time the the Brent the half exports setting marginal of set their balance. Index the other to global market-based Their latest

XXXX its second tap The repurposed the decommissioning ceased fourth first been platform in another production Brent and oil in The field third Brent into final XXXX began to stopping and drilling platform oilfield. platform XXXX. in and and has by followed XXXX

Brent that in safe say ICE's today, is it's index. to So any no longer there Brent

exporters Brent on way shocks just I index, our During industry as of trading is prices. less Brent prices for prices. making Brent hedge the volume the index. oil, index global now in value oil leveling complex impactful ICE futures energy focused evolution, reflected record result that's to ICE our in the energy index are the Brent global the that crude of a out marketed The global preferred our the the and direct that evolution oil of U.S. sees highlighted oil ICE difficult this geopolitical to

versus we I in think We similar environments. are with to tell the to reflect participants acquired four this industries our over in changing constantly following market given map fuels attempting industrialized just entire the work backdrop of which complex X,XXX about economies us we transform story move as contracts from away to We're industries to an IPE. carbon-emitting invest macro example commodity operate. energy and that analogous how causing road when the list we contracts with a of

acquisition, medium- have regional may of focus You cyclical hydrogen develop that seen we by to trends to construction, most Data ICE we years rates. is division division, benchmarks information. and ICE working interest trend financial same such that data you nearly our the Energy data next ago, services with the are as mission-critical Services frontier. on recent for the Department ran associated dissemination to information was X U.S. spotted playbook long-term We've the fuels markets and automation our and invested our data Similarly, creating and transform index in as energy on with we credit continue in asset to extending global announcement single digitized for areas and the trusted important Brent that witnessing products

derivative markets, ETFs, their making around to way increasingly globe, and platforms in markets, the are the our equities. reference including data, on of these own form valuations, options And cash

we world organize model and leaning in ICE's information goal drive enabling financial automation to a as information make in consumer help to key facilitate better and the that index network, that on and distributed expansion markets to interest blueprint to most rate widely we disseminate can a we're this where our SaaS spawn models with a toward recent a future are workflows. proprietary participation, decisions into U.S. captures blueprint creation efficient Importantly, transparency the move data generative expand customers and a industry

to that earnings a In of operating record and This been a per that results, we've company. year our growth record reflects of made at of marked shifting position record business share, our of public income conversions, compounding largest growth consecutive continues record the the analog and of to ICE diversify stockholders. record our that's industries for environments revenues, all-weather year name, vein, a company the the an and of XXXX to strategy and strong XXth some adjusted quality center strategy digital the undergoing every which consistent array deliver macroeconomic through to our an

ever XXXX to than and growth across look of executing secular asset and to on on positioned we're investing and remain we cyclical us. that many focused we occur beyond, on and opportunities capitalize trends in classes, front As better

to operator, I'd conduct our colleagues like thank in customers I their for to to now my want Eastern X:XX conclude trust Time. contribution year with call these their prepared the XXXX. remarks for and by our And in until to the turn we'll back I'll question-and-answer company's Charlie, for thanking business our a And history. session best that, and their

Bank first Craig from [Operator Siegenthaler of comes America. Instructions] question of Our

now? given and the wanted commentary with we're you client curious under leaving value going are the why proposition target Black compelling clients the We revenue follow on same roof remarks. just your Encompass at the in provided up Knight they flat MSP to And that both the recurring attrition where prepared and and

Those and saw is have a of benefit see would consolidated Thanks, And clients and loans also then a moved and in be of Republic. so Ben. are and same moves And MSP. And on our have that together token, examples buying loans mergers obvious Harbors from Craig. on that moving couple of their terms JPMorgan a acquisitions to we been RoundPoint come we it. subject on MSP. those you have couple though, have to attrition, This -- the First have Two

been servicing pretty you net-net. a activity side, the type on much when M&A So it's of that see

on overall that, If year of looking you and and Warren that terms year, it's we think revenue on market the across based that is the performance proprietary look sales against both that peers this the important during just gaining volumes, attrition we've very of flat clearly our and third-party house. the underneath at the mortgage success we're segment last as guide which this had the had origination side we're share that in gave in systems in recurring well tremendous confident low that as I decline particular

close -- in And as transaction to back went And generational that actually important as low mortgage that as a we back XXXX data I'd that well the year highlight volumes. -- be better. even far of that it's was to terms We XXXX bad. year to see a even was XXXX and was was that find it was

$XX was average So million. XXXX, the to to us, mean the markets around average from the revert around loans, at was to million a mean. look And if XXXX you X

we conservative corner. we're $X growth we the the you gains that for million significant turn customers is the market implementing, If share winning we've that around platform $XX spring-loaded the million as had, believe this band that, given to a put loans and

me for just revenue. recurring too, flat the guidance let Craig, on And add

side, to going some So that have products good year. are what online coming just into the move visibility to the implementation that we reiterate on those the do sales said, really are the MSP the And some Ben that and needle. of throughout Encompass are

and is last We the have things still always course, that On visibility expect like this and pretty the I of to early us some about into seen one we pressure the that but in stabilize the renewals year. some overall, start engagement, side, an good M&A, absent, into activity don't related but that, actually on Encompass that those quarter year. customer that's to I erosion fourth of around stuff we've mentioned of M&A of start trends customers guide. and improve our to obviously feel those What some

And think I Ben touched on this, too, to note. really it's important

we're course, coming current but a to a lot that also products, these continued of component are for important, new to And products expanded base worst -- to And originations network. transaction going to off you continued year and has add we've of are generation. in While, recurring it. additional customers, noted, the revenues we've add those have a as the customer

So we're side, that, on that the really when those not transactions only do transaction from but recurring side on the going be normalize, think benefiting as well. I to

And little a for that maybe bit to you. help frame

years, industry I in with to $XX be range, that to of incremental you think million revenue that $X.X million revenue, really being at coming nearly last $X be couple over hundred average loan transaction with, loan few margins. a million if that we'd incremental million the would $XX see the see billion to high of were and would again, volumes a

we're focused the this on for investing platform, best positioned look, so when that market expanding normalizes. network So in we're the

question of next Redburn from Simon Atlantic. Our comes Clinch

I'm through? the at thinking real curious the thoughts that What need inflection would that for a ultimately, your look kind are mortgage sense sort how acceleration of I the to see -- rate quarter conditions could mortgage there. recovery? frame guess, be volume then and in about when spring-loaded start origination how to just you of potential would fourth interested -- you market in of you us was terms And growth? what of we like give come we unit It you're for think of the kind in

Simon. Thanks,

the In industry shows if it approximately composite analysts, is. volume where about our so What down that's are -- terms the they composite estimates, put of out modeling there, of the take industry you you out, was at a XX%. industry look market estimates that if

terms points in question And I lot phase. platforms. platforms share, significant gaining a terms a they're of in in our against in those the of think -- both as we're implementation of because can are there's and size, clients, I third-party I said, data mind of no in that couple proprietary share

revenues So implement the to as benefits we'll time some we get from recurring take clients. will need those

The we'll hundreds those also other benefit will loans transaction loan those network. fees clients platform new have the that we that get we are third-party are our our on implemented get providers on And closed on. interact of those per loans when is service that with

services those efficiency on when we credit that a our network. So for for on we provide ordering you're a ordering fee report, the get example,

transaction that we from So are also -- that in case. those additional revenues benefit would

we're gaining that the composite Warren billion spring our the platform his further for loans look market thing we mid-digit of in we range where volumes saw loans our minute million and is of at ago. when of couple look is ahead share $X.X evidence we're in platform, if say a roughly just which this you that to I'd at percentage stabilize, hundred closed other loading as and estimates that points are, that comments on platform, gave a The that closed

we say I loaded, helps that to So business is when think what means. the frame spring actually that

Our comes next Worthington from JPMorgan. Ken of question

does follow to of last where And Maybe up that wanted much market? your European of balance? OI Dutch on I is the OTC doubled gas has point? this How year. comments at market over to the relative the this energy. first, go Where on on gas Exchange is sort

Brent. oil, shift the What with And coincide called TI? share it shift in reconstitution there? seems and much further there you to driving shift is to think to of WTI extent share And to to and is some how do ICE the you the ICE that

the it's Thanks for question. Ken, Ben.

start I'll TTF. on So

TTF, lot that Exchange that So a of that transition has now happening. on years and is XX-plus we've seen volume over transitioned

you're step that's more next remarks, my that think world. TTF gas the alluded it's global trading see, really around the this of more the is and and the and being I we as when benchmark becoming to And the the I and in has for being become proxy that evolution is world. around shipped natural LNG prepared in this for used

be you subscriptions and transported impact TTF freely of very that's And global It's natural a seeing of no subject TTF. gas growth in market natural stock longer of where Which that or the growth new to creating around gas the being to double-digit we pipeline you can't why and you out, these world. terms data had markets liberalization in the constantly point we're the we're has the underestimate records, market. can't can storages. seeing in in underestimate, growth double-digit closely, follow of significant participants, infrastructure really terms contract and is It

of in year implications the LNG going XXX% year-over-year, U.S. and global at looking the think around as longer-term of They XX% to into ADV more out as up Europe. clients interest of TTF's in movement about issues need open they're more this through the in LNG eastbound recently Sea, attacks goes Red impacts the on Red and there. new White to that Jeff Sea LNG House comments, his the heading out. announcing shipping U.S. pauses that exports the it alluded going in on had have

conditions through have seen manage, it's Panama that's are doing unbelievable when going Canal of going to drought that they're impacting it's the Asia to that. that all need the Gulf contract the and TTF These You out U.S. that westbound, risks and with. LNG going people go to has

see growth global be continues evolve today. clearly So in of what that to is lot as Brent benchmark that a we similar to to a

lot contract, goes we've On couple it Midland the really, we've base innovation delivered of years of basis that's Houston, to going investments a contract made a HOU which the Houston we the that's that is physically market which a oil Atlanta -- is around lot Europe. in being WTI a growing significantly Basin and the that delivered that oil made into of been WTI, is back pricing and the launched WTI into

of moving hedge that those that they'll as those Brent in also contract, across and to cornerstone and HOU and the get seeing Exchange. WTI and off contracts, our trade our are package in trading the volume a are of trading more for spread trade markets then they those trading efficiencies using that we're also markets more People those three

a that's that So driving that's of WTI, of lot growth second your on and question we market part see around what is share. the

next from Budish of Our question Barclays. Ben comes

the to back circle segment. to wanted mortgage I

synergy terms sounds -- or can XXXX. it some bucket anything of see in the that of the like Warren, the side, what the identified beyond total you into the we of potentially of cost cost more Is the pacing year? you this in synergies on read accelerated Just synergies there additional

of Knight cost perhaps you was additional own you of in quite in update could sort that come Knight along of questions that but was that do true of just there? unable Black may so cost back synergies, to to are sort do terms reductions ICE while Any do other not the able merger not be same terms M&A now one the that but synergies, things then much pending. lines the things of And at Black

Sure, Ben. Yes.

organization look, well in the think prepared ground sense running. to to So hit I yes, were this a to that for we close, deal very it's -- this the the testament and really we

ability the a And shown muscle but so of definitely think that of number not we've that also a set like ours. in years just last us kind ducks the of get over to the is our only to all flexing I skill row, of for integrations it's this, testament a

things we spoke better to a I when very synergies. So those think initially year than little of do X it's to two the us our in bit being around deal a testament to some terms extent, much announced we

months we'll on now, that us the our those strongly the we'll very So feel getting we're certainly look, increase this that. coming million progress having for are how right look, about move unfolds -- as year really thing, the take in think as it opportunity year, But this towards any are see and to does certainly those, things here. just And But where right there's see and comfortable we're, going target we well, through there's you if targets. let as know. X to of make of into by to if potential clarity making end we I of $XXX X, out gates

other cloud pick proprietary seeing. -- Ben, we I'll we're things proud that something that capabilities cyber like And We've prior there. that up the on resiliency, architecture, being scalability, in calls, have our things the of terms mentioned very of that that's operational the on the we're on

our planning of we right and proprietary that. Other technology is and of platforms that we we're there's see time the enhancing from we're will core see now, lot that So platform. clients MSP around some benefits over the cloud, our move a an get opportunity to there things to

you business. and that platform ICE the cars upgrade leveraging and technology. used enhance at Data continuing to upgrading are driving our again it, We've SaaS-based time with the and that business technology the time NYSE Services So experience we've MSP bridge. past, The while we're our done analogy over to in this has, in wins have

distributed the enhancements So architecture leveraging scalable, things enhancement of expertise possible. our that as we're MSP it all an of in to efficient apply is making as towards and going

advantage we particular, ICE our other yes, Data Services did then from ICE are over, from Black think I'd there be we've team early last division. is within product and one, capabilities benefits the thing Services over in is Data And both reason our side, Black the of that. sides Knight say team Knight that's the And take come or returns data are. to Number can that two technology moved the going we there's to that is the

medium There's capital believe term. two highly can number number out markets the and both new will then expertise a capital that markets Services, to within put that And are product of that product we Knight generate Data innovation is we of innovation. our lot space. datasets short applicable there there's benefits ICE a that Black with And within

Our next Bank. question comes from Brian Bedell of Deutsche

Tech. side Mortgage Maybe revenue in to synergy focus on the

had total sort $XXX in you the well maybe It with And million I you're seems you've a million commentary that like million of I just far X know $XXX X-year so down identified. the $XX that. think is $XXX just the revenue of million said signed you've of calls you of ahead couple on months. to synergy tracking go the that of then correlating a opportunities target.

million? Just are $XX you the as maybe like part trying tracking the the front to do on guess expense you're that $XXX also the ahead, is on if side question see million you ahead And revenue I [indiscernible]? broader of is, well feel

Thanks, Brian.

infrastructure synergy we has think with all we've do that our which highly hit these and of that efficient ability a have efficient we I have months relationships as quickly only what of ahead getting deal. done clients, after very the think that of and before. that in these million really for being and a X as and have outlined them this targets we ways, categorized you technology to accelerated revenue deep I so and capabilities I And the lot appreciate we're running And of is our $XXX type with ICE they clients, one, experience seeing that utility working had

we of you And categories three the right top we look we Chase M&T into clients. fourth XXXX there, there's of the with MSP cross-selling quarter, JPMorgan had there. out outlined relationships added the Bank close. that Encompass at in all XX win of in one quickly the And after big have then obviously big we mentioned We If I very XXX gates, a roughly across of ICE.

into first category So time those that examples some fit are to that that great implement. take

client Technology is second MSP category Mortgage our The ICE base. into cross-selling

and MSP. base fourth thousands gates, And is we that another to client big of out the of lenders Fifth the from Bank, bank in moving right have thousands ICE of We the quarter. some significant had in wins various us. the Technology are leveraging Third pieces that regional technology in process of are Mortgage super

great So the as quarter. a Federal I ICE Black in fourth Union was mentioned Mortgage Technology Colorado. Credit client They're Mortgage that of win. Hills well an Solutions as

Union. in prepared also my then Credit And remarks, mentioned I CapEd

client well. as Encompass existing an they're So

pulling front-to-back us together adding vision MSP, they're network. So seeing complete the of this

success. this technology And also third some seen we've while solutions. is our and here, network platform, data lot the expanding In category, a of our products ancillary cross-selling great

quarter. of with data with a and datasets our Black and MSP. fourth We've Knight the lot the alongside cross-sold deal document included Bank M&T our platform closed we've Third we automation our deal Fifth Bank So that in

to the work now other areas highlight some and our -- we really another and servicing the first cross-sell that the that local to to we we're we've now has into important of had -- around platform, releases. integrated and lean Simplifile counties Simplifile positioned utilizing is we're we're do with some think things our now, as the that workflow network one network automate all start incredible integration that platform because the MSP, to back-end embedded to I we near-term is that the just thing just we of of took U.S.,

the effective us. for additional rails transaction loan a on is that MSP which very the we actually release, can platform, paid it efficient, will lean when off be revenue So leverage to highly affect and to make Simplifile quick

platform in mentioned data document our into I automation remarks we've prepared and integrated that my MSP.

loan the and our of real integration So the end and that Encompass first file of we loans. MSP we're the completed and front as And can process on also that compiled we've is taking our of amount where automate then map datasets MSP into work proprietary MSP this now client onboarding that flood directly our now have these as to that between we've can platform, it's digital a now integration needed have historically, the such Encompass base. a valuation, now closing fees, for cross-sell to and not the ability cross-sell that proprietary on and we datasets tax had significant of all solution our

lot future also great as are So more about some an that, of update distribute these. on but we're to you'll hearing lot wins. we've a had things and Those a be successes of now to in the great able start

of from comes Jefferies. question Dan next Fannon Our

on just sheet. the question Warren, a balance

time to part back stock of return you to reasonable get of It's a latter bit kind -- a anticipate year? be What's buy progress, able year think quarterly And to reasonable $XXX or this said do is story about being but about of improving? as towards that also, million quarter-over-quarter. elevated, pace? you the down you think a what pay you think capital debt I probably kind early as frame the next

Sure. Dan. Thanks,

Knight so we sort with of about certainly flow $X.X only look, or think, in of guidance, cash I report So year, there. flow don't we a billion but give of strong did forward just free X/X free cash Black

that XXXX our that than return in of say. I think plan be the to of So better that is And should day. that, return, -- at the we've end vast it the of said, to assume couple not as majority moment, will at the it's fair growth I

the majority there the Our outstanding pay that's use to down is debt plan out today. that vast of to

that being we've And on the track bit go on of as we're thinking for little in thought a talked but so well. we about depending business, be forward sometime down the I think think than schedule XXXX, I still earlier here, that as as I'm what performance in could pay that here about

as would of to to be what out our the we said, going we're how deleveraging But plays I on phase. we'd we thought see ultimately. terms be So have year to where and source track in very much

Kyle Our from KBW. next of question comes Voigt

last for the futures increased many in first fees year you So years. in time transaction May,

competitors changes have announced again Some of your pricing XXXX. for

So on this And provide can changes on wanted thinking were May I the you across thoughts the you're planned at for whether updated digested how some is just those pricing anything point by circle in XXXX? complex and pricing how to about market? futures back

Warren. it's Kyle, Sure.

we year May, past, we pretty it year. to across I'd RBC back we years, move as the something you right, in went did January were our saw the hadn't mean you're increase well. business as whole some be of done this as a So of the a that we in to couple and contracts I and through record said extent of number in volumes continue say impact obviously, to levels so well. And the in

I say that would So well. -- that, was that went

look you capture our we go value. said all platform As in look areas to where past, and where philosophy then we've the we created value have for is the to really across can and

adjustments make or and we we utilize of so different these contracts do adjustments We've think business. about -- energy we did the it year, business, And to done, futures in of some some every oil this we've think that the different And ways. price ways fees. year Exchange within outside we the as it around what data done some in our about

been clearing made impact we actually year. similar some to house, also were the oil we contracts changes was, on adjustments what then I would made which should And or last the from the at the fees collateral have pretty say, to

in similar I different think way. And opportunity done we've about going but again, a So broadly standpoint. we a forward the of as terms a from in part of pricing the somewhat and strategy ICE we business exercise it have that's futures executed think

you. time today. questions we have for all Thank the This is

So remarks. over any I and Jeff to back for hand CEO, Chair Sprecher, closing

you, call for this the us morning. Well, Charlie, managing thank for

from XX, continue named the week, we age to call and the recently work Jack every after from business didn't do. acknowledge did earnings that hear wanted at and passed this this hearing wanted we so he that XX Willis. just and Jack And going Before I we I quarter -- miss after and to us wanted also both friends a to that's to what years, input to we we and outreach from him back family these have had leave, to would mention last received for learned that call and go fact some before that a shareholder we're all-weather colleagues and his to and build model, this to announcements, he

And Thank his so today, we'll do it in honor. you.

and joining. gentlemen, today's Ladies you this Thank concludes for call.

You disconnect lines. may your