EnLink Midstream (ENLC) 8 May 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to EnLink Midstream's First Quarter of 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. call XX:XX recorded AM this X, Friday, that at XXXX Eastern note is today being May Please Time.

Tax. of I the would Relations President meeting turn ahead. and Investor over to now Kate Walsh, like Please go to Vice

President Chief to Batchelder, Officer; Thank of Chief first Vice Ben and the today Lamb, XXXX you, Chairman Executive Davis, and on quarter are Participating Executive EnLink's Barry everyone. Operating call. and Officer. and Eric morning, call good Vice Officer; Welcome and earnings Chief Financial President Executive

We of earnings yesterday website. replay as securities our speak be our at undertake revise. include forward-looking statements on the The release issued also the of no and on the or A market and our Today's federal call, forward-looking presentation expectations obligation the statements, including and discussion closed of only www.enlink.com. are laws. of will and date this available predictions after today's will call update those we to materials made website meaning within

Actual and and the other set heading remarks the the including in release open can leave start of discussion appendix and results press could financial filings, brief to call SEC includes projections, Risk This with We results and certain made to review cause available presentation. to and these disclosures Barry, our actual our today differ reconciliations for factors Ben a our We'll differ the our discussion of statements in filings. of press comparable measures. cautionary call as a GAAP found release, presentation Definitions Factors. of that encourage in the also Eric, press by our and as prepared release materially then non-GAAP the of our measures, under pertaining call remainder those be questions-and-answers. SEC may of from well measures, are and you

Davis. that, turn I Barry to call the to With like over would now

for joining our us results. everyone. Thank quarter Kate, XXXX good and you first discuss today you, Thank morning, to

healthy outlook families for the behalf are and environment We discuss your operating also of for will of thank business the as hope first frontlines, On our the all want on and revised medical EnLink, you, we your personnel colleagues the uncertainty I a with remainder great surrounding life around the us COVID-XX. responders personally year. those we work to all for the including they're doing. of navigate and

no the also safely energy in like dedication would essential no EnLink's virus for thank deliver ensuring To-date, hard I to and our of work services all among employees interruption. of employees known we cases has had and reliably. their EnLink and business

are responsibility and continue organization. with take to We safety government compliance health corporate recommendations, to seriously practices across and adhering ensure our our to strict

midst quarter. cash of achieved part workforce of of million, million $X $XX includes a EBITDA we free for expense a million flow. generated solid the which challenging adjusted EnLink our In reduction, We of the first reported to environment, results excess related $XXX severance as and

year oil price everyone across forward production has recent that crude of impact demand that our destruction in turn and across will the pullback oil United generates collapse the we products. energy the has on a in a pandemic As for spurred knows have volumes And EnLink material systems this year. likely States. revenue next and tremendous sharp caused XXXX, that the very look to rest The the

of XXXX is range that EnLink for could during unfold outcomes wide. The possible

we've and those regards segments. level evaluated high through our to a provide uncharted volume clarity with state, we cases waters segment us with progress Later, along could new is these of forward Ben will normal the have expectation. a impacts profit for impractical discuss cases As it few to towards that on

EBITDA for billion year, range the currently can EBITDA that know to of we have $XXX made $XXX knowing reductions is that and million. million of expenditure excess and I seeing adjusted to capital to-date we range today. in would flow distribution $X.XXX of assumptions being coupled and given full free share $XXX the with This the cash evaluated level we've the in scenarios we're what generate What million significant

asset our strong covenant X.X key we free be excess cash to our facility. ability calculated With flow, times generating credit which effectively by to below as leverage and our is EBITDA have manage our debt-to-adjusted platform financial the expect metric,

Number distribution quarter the XXXX. execution number plan to As a is our we XX% We through distribution during reduced a reduced the financial by be priority. the decisive our on this our level days navigate We capital first current is unit execute priorities. operating maintain common we We believe as given original and about this program to to environment. to one sustainable has compared what our our spending XX%. budget, took compared at expenditures ahead, four of less We year, strength. we'll as XX% know steps by

evaluate manage reduce during we're to expenses and G&A actions could use to million CapEx effectively our dollar run have roughly XXXX, we We'll in leverage. adequate steps which in operating drive million to We retaining producer by XXXX continue to expenses depending out business of The to $XXX $XXX took and in of save versus our potentially million these $XX levels. incremental expect significant ensure every we an activity. results combination spending and on EnLink business liquidity cash will and

drive to is efficiency. priority organizational second Our

our of are adapt streamlining the to in incorporating technology teams and phenomenal doing a ways new business climate. Our new to internal processes job

of our for third business. the priority The us optimize is to profitability existing

and every in find over run we incremental returning efficiencies how every savings. possible challenging are operational to stone way, and business our We

EnLink And future. for for the the us to priority fourth is position

lies ahead EnLink, We new into for the eyes economies global landscape on what our and squarely view. have recover as comes energy

positions Gulf We Louisiana, and market. key in basins producing our will leading leverage Coast in

and we increased for moment opportunities This and high energy continue footprint a on asset economic number return successfully to a long-term endured before. engagement cycles Louisiana. seeing is EnLink projects, low see around are an companies, efficiencies compelling We targeting defining level our has of challenging primarily of in cost

will our platform, opportunities period, we we and offers and operating asset believe With emerge of of through this environment unique diversity advantage ongoing the stronger the EnLink effectively taking will dedication than our manage of this ever. employees

With turn the to discuss our details Ben of it to over that, operations. I'll

Barry, and good morning, Thanks, everyone.

As by over performed this NGL year, Barry Louisiana mentioned, our gas time our EnLink time had last increasing first from a solid last XX% with All Permian volumes year. this in and from well volumes increasing approximately four quarter. segments natural XX%

customers will into of consideration develop it As market in by to related order volume We're with to have a the Barry on, impacted the dynamics. XXXX. evolving constant contact and is assumptions taken difficult revised range view also of accurately touched operations our our predict be how a to activity in

quarter our completion XXXX both of of in Permian, in no last we volumes that the gathered year. In decline Delaware the experienced natural activity the business basins. business end also strong Conversely, the experienced exiting segment and gas results, longer a we Permian, drilling we're to first discuss the and I XX fairly in purchase a segment over year-over-year on give how I'll growth color looking to expect are at due the As Midland the be quarter. months on year-over-year as by second first crude the we rest volume the for and each consistent oil

hedging to the of choosing sheer the We to operations volumes can first-purchase step and of we business and was gas that to returns strong impacted prices, NGL segment. earn crude from are due XXXX, Net partially the first year-over-year. by that of gains was in lower elsewhere. natural our competitiveness line natural quarter inability approximately of Despite gas away profit reported Permian realized segment the our negatively during profit offset are by decreased million XX% but Corporate $X.X

operational half of as second the planned becomes during XXXX. plant Tiger Our

operations of Canyon development, reaffirmed Corral our are that plans as underpinned the market the a not Tiger Our Canyon environment. customer by and result has have changed Corral Exxon's

significantly anticipate expect operators well upstream we in or activity market. connect be activity XXXX of basin what of pace come. to to the be the and quarter It's of we have number many Delaware schedules response relatively both second That in cycle. recovery to said, reduced Like months the for Midland drilling completion deferred the in of all expect and Virtually the producer we lower fluid field, see trough the in the the basins. companies will to a be to unknown and

strong quarter opportunistic is in higher transportation prices natural and were gas roughly as NGL on of Turning present for processing. XXXX. through over we in volumes which a of in first had day, the compared quarter time Average on up were quarter for well time to the fairly flat dependent our processing and year. a gas volumes first economics And significantly Louisiana were year. lean natural a system quarter averaging it's year-over-year, compared to last the gas slightly now XXX,XXX to record part processing operation see we for and quarter during Louisiana is volumes this to processing lower Average than this gathering Louisiana, the the last nature our incentivize Attractive barrels a not significant commodity held us. XX% for

operations increasing Our XX% Ohio volumes in the year-over-year. good a River had quarter, Valley with

most reduction variety in Oklahoma barrels in optimizing our reported NGL quarter hedging approximately a approximately were And by results NGL offset are our the and were segment. realized million by scenarios. year-over-year. Permian on for mark-to-market part fractionation focused for in segment in that value a flowing we equity of X% particular rest of profit operations We anticipate our the strong created of impacts in first by the by were declined XXXX. for volumes volume Corporate assets pressured of Louisiana Although gain Financial partially from XXXX, $X the

that River reduction We runs in Valley the expect our area. activities refinery by significantly Ohio be happening to impacted in in

market asset to of impairment of XXXX. the million related $XXX non-cash ORV As a first result during those asset we our dynamics, quarter booked

the be activity have Global Project and business, All-in-all, months track to for on Venture LNG Pass expect end Venture Calcasieu lower is will coming In to Global's and financial the ready related by clarity Louisiana further provide this year. gas impact. be the our we facility service to in as to expect of we the

for look increase we declining to lower was natural XXXX. our producer which rig natural were we Oklahoma, in expect activity volumes X% remainder be volumes strong at When drop seen so of the year-over-year processing we we've year. driven about Segment very off XX% step now by gas year-over-year, back profit XXXX, year-over-year rest the gas throughout down primarily volumes reduction slightly but volumes. year-over-year footprint, Oklahoma gathering activity Crude by experienced forecasting experienced are Turning for to crude X%. the a volume a and we limited decreased of and

minimum cash to with volume the $XX deficiency support payments $XX We of declines volume expected million have flows of in insulate million. the some range

joint the in for not expect Devon earnings original on they XXXX from Also us with well. result defer as mentioned their Dow flow which defers to our will cash guidance. JV activity any this activity venture any that call drilling during We're expecting

Texas, we range Wrapping focusing X% approximately up year-over-year the experienced do year-over-year on as was with as cost and segment job team to volume natural X% by North control. comparison, expected. an In the efficiencies to continues outstanding declines gas down profit X% operational in

Texas, As workovers about rest current of environment. defer see activity but volume like producers in North expect investments we don't any mild we think also may impacts the as drilling the XXXX price for

Devon end that deal XXXX till Devon the in that to will has close the the been expect We quarter year. sale continues fourth also delayed to of know But BKV of

update. Eric onto it to discuss pass I'll financial our that, With

Ben, you, morning, everyone. good Thank and

As free distributions EnLink severance of a as define our includes cash Ben also flow, adjusted solid workforce. reduction capital achieving mentioned, less which of EBITDA, both flow, $X net million to EnLink in our unitholders. growth Barry associated approximately XXXX $XXX and distributable we achieved which EnLink and expenditures common excess of $XX quarter in costs to delivered cash with million a first have million

in NGL Adjusted the from of impacted due natural segments. three quarter profit XXXX and key by first gas primarily declined last X% the Permian the segment EBITDA prices factors: slightly and to period Louisiana year, lower same for First,

and activity in And Second, severance mentioned. due producer lower third, volumes experienced completions. costs previously to of well we deferral Oklahoma, reduced the

quarter the times X.X EBITDA XXXX first of credit for facility. calculated Debt-to-adjusted as by was our

EBITDA of this of leverage cash quarter in However, is million is a important EnLink on hand, priority $XXX to first debt-to-adjusted to the liquidity, that is EnLink times manage it we sheet. X.X on our this It preserve to the cash for balance note exited accounting for XXXX. top environment. net for When quarter and with especially

that we of to will we allow balance steps ensure the business. roughly Barry As mentioned, maintain months taken during XXXX have to sustainably four significant $XXX over run million the strong course us a sheet our preserve last to

unit First, XX%. we have reduced our by common distribution

have levels. our reduce by compared XX%, up the reduced expenditures to capital million third, and further activity to have at reduced or depending company. every as as approximately operating administrative we total ability cutting XXXX costs to expenses, compared as to XX% $XX well by of have million $XXX adjusted on And by level we significantly and Second, as XXXX the of capital expenses EBITDA general producer through

of in of a savings in an component announced we in XXXX. cost EBITDA, million are identified that $XX of to quarter which of initiatives have million cost $XXX first costs adjusted These $XX were of comprised savings of million plus November, the million increase additional $XX approximately the

slower and worsens our is pace decisions covenant difficult that anticipated. of these bank even X.X economic made have We of ensure the leverage our recovery than manage environment below times, if to the operating we

capital Taking capital range and is current to outlook expenditures, a at total million inclusive both our maintenance of our a $XXX for closer XXXX, growth look million. $XXX of

LNG expect to tie In we Ben Global our Pass is half Tiger to complete million our Bridgeline system year under $XX As to facility, currently construction. year. natural the we Basin, be roughly our in Louisiana, their expected million expect Delaware spend the operational noted, roughly on this of $XX into is Project processing which which the to spend in second to Venture plant Calcasieu gas

well year We capital maintenance of activities spent infrastructure. expect Most $XX to our connections spend million projected and remaining on platform. to be approximately gathering this on is the across

down approximately the I in projects first $XX of step rest and quarter capital expect the quarter we million XXXX, our just mentioned, to invested for the each of year. the spending For

fee-based by security parties strong provided investment XX% or business. ratings, our I'll quality of to a have the with minute now spend addressing generated credit counterparties quarter were and our the nature of our XXXX of first customers who grade us. revenues

counterparties the investment grade credit of our having represent XX revenues. with of XX% first XXXX XX% top us. Our ratings, And quarter XX% provided to security customers have those remaining

we Finally, under fee-based XX% as business approximately have exposure is direct limited price commodity our of contracts.

our discuss view I'll Next, management. on liability

Our and and we in any our debt mature senior is years senior XX% medium do near favorable note of beyond. approximately not horizon term or that notes maturities have XX or

is maturity in million debt $XXX term due next which Our our of loan, December XXXX. is

to We options evaluate will continue loan. several to this refinance

position. revolving to term have credit have to its repay financial to flexibility As leverage entirety, a in impact backstop, sufficient under we expect would our no the agreement loan which our

with We focused of which diligently strength, our allocation on sheet being with operate our opportunities. sustainably includes the maintaining our remain balance business financial capital our return to strong disciplined adequate liquidity to highest to respect and

With to Barry back that, closing call for the turn remarks. I'll

our our from our and commitment expanded we as accountability. providing provide and Yesterday, have we safe, which momentum has XXXX sustainability Eric. EnLink day sets the respect to one, which also share responsible we of a transparency to report, I our success. for environment, sustainability unitholders. Thanks, that pleased published ensured supportive overall operations more sustainable with company data, that value ethical core is report been always believe values XXXX to future business our and and stage employees deliver for the am support communities you,

we Q&A, have entire Before time. and hard up this the want thank open shown I again team for EnLink work, call they extraordinary to our innovation endurance for through the

hours long like in while and work great months. provide few safely to continue a to customers worth working of to tough decisions making year's a feels what short services our We accomplish only

stakeholder bondholders, of customers, you. unitholders thank from every to EnLink To from employees to

questions. call With that, may now you for open the

Please from Shneur Our first ahead. with Instructions] comes UBS. go Gershuni [Operator question

bit. start little to Maybe off a

as flow that, that you've rate now. in as are budget point not due as free spent producers about thinking environment, thinking current is it] about right What the my to can and from What spent question runs And in the and currently what capital 'XX footprint? here stands a incremental maintenance to talked at now it as in guess producers? the decline that today, the cash asset free million speak far $XX get the be positive this odds then -- cash you'd invested entirely flow as [have CapEx your I producer your you your gets possible. actually current for flexibility your You want as is it any this see I decline as in perspective, at rate right it capital to everybody if is assuming does not matter? of

$XX substantially flexibility, Shneur, well million then of that to it's and may want Hey, CapEx expand. Ben. The is I'll all in connect compression capital. start additional others

be so or And whether it driven levels. we'll to activity entirely the spend will as producer by not question

looking to be there. we'll what that's So

interest going that activity away producer see. equally into about capital does through the what XXXX at would been where look like. terms Oklahoma that that to the high-teens how last less there's the of in talked decline. see, less a we In XXXX. spend, We extreme no I'm the case, that, in in talked getting read some saw we scenarios, is activity including our we in less stay Oklahoma an from volumetric obviously, And going end we'll volumes, volume volumes. to of result volumetric to said we But year We've

Our that view changed. hasn't on

gives that sense in Oklahoma. a So you

that that And cost extremely down. we're environment. come a doing our are job that. projecting. seeing cost working great Barry. a less is deliver our $XX we those me add million the part to projects management this projects can continue that will We're vendors. be our with or ongoing And to of this teams currently of and Shneur, costs Yes, that in there's And opportunity that capital for at under do real let We're the just with actually things hard

at going speaks way the yesterday. have we hopefully, So also to not that things could level, to cost activity but than continue the only can we'll we deliver And lower forward. it do that

the well my us like appreciate it’s And lot kind the of are the color decline a of connects, guys. under for scenario the of share with right too, ago, what flexibility as was seemed And question reality question. Permian was an assume I that that, I Maybe the extreme rates which we becoming today? to year that now, but can that scenario a you I point well, extreme related at guess unfortunately. was

Oklahoma I can that we Shneur, can't I volumes. uncertainty something the that. share have what all further really in talked don't on go I with back given you Permian about on Yes, facing we're point you today, can to

to maintenance thing I comment want your go back last Shneur. One to on the capital.

you all of that of stakeholders to to me assure maintenance a Let capital maintain preserve in the we're hard, like the our seeing certain of and equipment just cetera. can all done running needs integrity being be facilities. an as doing because we're defer, we our as systems, et what standpoint there environment that the are That from said, to this things not

taken of continue and out to forward. preserve have every we'll on the maintenance possible sheet way liquidity costs cash that work going what our And we characterize manage we to So as you to look as again, capital. and balance some to on hard would extremely

at And rallying seeing on flip any the or gas you dry exposure your in maybe been Great. at mean, all, forth. side has least Are some here. gas conversations? I so and activity natural

Shneur. Yes,

-- optimistic out with have strip about, gassy and winter prices certainly as when in that that the XXXX. we in at start you to something coming And the gas say that going pricing of above is get forward, for me look into sometime areas. $X, we Let the be -- feel we more really winter the maybe concentration time about good I'll first we're there

crude crude get that dramatic in back gas expect of production we to recovery. to with are associated kind we And declines some normalized see versus gas to we supply -- look with impact side. looks on like at fact, We is side see demand. scenario XXXX when oil. -- supply the something production we'll And gas a going also the quick are think with less gas a natural on oil, demand what We for associated

our in So Texas could demand Louisiana. that the well mean for as about and gas and Oklahoma, as our markets we're supply optimistic scenarios what

brought term options maybe you're one the Eric, ‘XX at. final and up And the looking question. you loan

little You not quarter, also a really bit bought much. back debt that but of during the

what right the this you're that discounted understand you market is to now. trading deal the is debt to strategy at trying kind keeps the for have of and of right fairly you because point with Just is 'XX buying out now. Do debt,

versus much the understand of of pretty you [indiscernible] that the to trying the up how right low-teens weighing in dealing kind you're a Just you're options that liquidity in and the now? lot about debt thinking your terms of pick fact with can

levers it's CapEx the But the the the about so great kind advantage and year, the thinking debt. Tiger on we're that take managing. of Yes, wrapping amount and a were pace we're about part cash program we're market you flow question and at cash the repurchase and of we you've first Shneur look up $XX generation that time all flow free the obviously the and things of able small to business, spend hit our the of of of if the some for conditions a the And quarter of million. was at first

flow managing that liquidity. to more evaluating highest we while return, that opportunities As the to cash the use and year. we'll allocate all throughout be generate

will and And us the all the of think two steps the most to important help pieces balance that now, it's we certainly manage a I right amount next think the significant that. leverage about of three create that we've when quarters cash taken sheet are in liquidity. of

to some repurchases. also, And a continue And the that the can in cycle business. way opportunistic include through run of may that managing debt we just

you any debt purchases the Have quarter since done free ended?

little a done yes. have We bit,

ahead. go comes Bean Tudor. question Colton next with Our from Please

full just thus saw us savings, on million today, the in reductions are can year where from what degree benefits $XXX process the for? update you to QX you expected On cost maybe

is Barry. Yes, this Colton,

our great cost from XX% total Let again, basically an the you you we've operating structure at work overhead we've me look than EBITDA, percentage When expense of of and it's of costs our across about company, look that and start EBITDA acknowledge, that we've reduction. the basis, that at taken that as done. the cost a greater as XX% taken back added even and that. On approximately G&A. When

So that, painful seen quarter. that much that think we've benefit we've need of but work, done we to in the first do. terrific work, what We of the

run it you slightly in going as as and will out of the forward, the of effect the quarter we about increase far a so the think got rate as quarter. second first through But net And forward. lot it certainly that

You the can see financials, in in that the OpEx and the G&A.

the Dow And end the with deferred, here difficulty JV set trajectory next to MVC then at understand expire but the on Oklahoma the and year, and thoughts being year? of preliminary Devon to the the earning any

from and Yes, $XX we million going contribution away JV. $XX remind everyone, Colton, between to than we a acknowledge Devon-Dow getting XXXX, stay [pegged] just million Ben. we the it’s other into never that respected We're to from XXXX and MVC -- the in

So change in this year. no

about for and Devon strength, even that this the longer think time. they both you Dow a additional their joint When take in part up I’d I that. I potential say just term any lack thing bit don't at prices, conviction little look to be time only the and that optimistic do gas find it that would The seeing since of on see venture,

and assumes to-date. they’ve said guidance activity. I not sounds Historically, business like the in to final they pretty Understood. ORV shut drop one, the had into was that it a sharp And -- in think had tied updated just a that

with of lines associated or there a as assumed are you curtailment So more basic that is guys degree well? drop, the assuming

Ben. Yes, Colton. It's

no is So Antero a certainly it, but majority. means the of by piece

So and other. condensate Antero other, have again in that gas Customers, one we we and business, one have stabilization, Antero compression.

We pipeline. the have

We have purchase the business. first

the simple And market on that the faster we money harder is been that has to business moves hit as terminal product that fairly moving fact run basin. And in others, in a a see than product refining small less expect by most cuts make that’s area. we have We river. given

$XX Having of said only segment it's that, profit. million about

conditions of would for of it business the one small the businesses, a all it's I But the our impact say market that So of was felt us. affected.

from comes Capital Our T.J. next question RBC Markets. with Schultz

and you high Just of duration range? guidance curtailments what the end and for new end of first, EBITDA low and what are level and shut-ins assuming your

I'm what seeing would Yes, what for today. something necessarily hey, will T.J., is ends. provided, are the the say we to both about that I greater we've than -- going range talk not we But within allow

and curtailment if We impact And on which more gas, as system, ticketing likely in secondary wellhead number continue go pronounced just the we're scale a in the they basis; I are in a corner gas have curtailment to of more were West they opposed been seeing within gas. systems the a is that XX% what systems, seeing range. months So, Oklahoma as curtailment seen We've in like fairly a send curtailment Texas, bit less. the we on us we've field we could on we've X%. to volume, not seen gathering Texas some and more still approaches crude It's of in be XX% seen say, a range. around to fortunate, impact XX% a a additional that though today see customers volume less the our want on-load see to XX% West from midstream for

So we appropriate feel the conservatism an we level like everything range incorporates know today. of given that

and barrels NGL lower flowing into Okay, the then equity fracs.

to optimize your ways mentioned capacity. You

you or the that some considering? Thanks. are Just available what are options of

T.J. Yeah,

we've said NGL upon now, we as So, not dependent entirely are while equity supply. that for barrels for folks remind a

time, our supply, the a to is party extent North same supply downstream, have in range and the Oklahoma, plants So a we Texas both even of Permian of we customers. which a options. some have in and At third frac portfolio variety of

own, have space in we wholly have Gulf fractionator a venture. that joint frac the So our we XX,XXX of in we barrels Coast as own Louisiana,

have other with fractionation deals a midstream of We couple also companies. term the

we and now where a assess barrels. is do by most money we basis on So a what month-to-month we really do those the make day-to-day sending

that In every every minimum, usually day taken to general, make the mean will purity our taking and keeping the relative we may frac But have for Louisiana answer, relatively geographies. sending in third-party the it preferring barrels the sure will what margin mean -- the of Louisiana by always. different deals full, right to contractual the maximizing Louisiana day that some the month, we the not do markets it on extent to recipe strength be the frac may GCF, over and that's is in

discussion any Just the this generally, through follow has lastly up in on just anymore gas expectation year? Dow spud kind the have STACK. JV recent discussions the would that side, the that of a with the And optimism on of the customers some you materialize do around

Yes, don't year through that JV spud space and liquidity think managing T.J. XXXX. Devon, is capital really upstream the because I Dow on It's will company like the Ben. think that in I every other focused this

So future hold, some future do people activity set the in set oiler and considering opportunity the expect than to could some agree more that in that is in there as the could -- perhaps are a in for versus STACK scenarios broadly, opportunity you believe companies was see what supportive I that was think price commodity are might their in that More that And in of other look bit, I it it STACK. activity, the I Barry, today mean though. with to back activity STACK they for what of consider what the don't kind think it commodity I range that prices that. environment, of out time pre-crisis. their mean coming frankly basins, cases I

[Operator Instructions].

comes go Moreen with Mizuho. Please ahead. Gabe from next Our question

half year impact just gathering Then utilization question on Will terms of point? One front? in I'm in And the expected can capital in up So at twofold there? on terms that waiting Tiger completed, just that profitability? the the waiting curious plant additional to benefit showing any working is outlook plant, of what crude what be that back you maybe I'm Permian. just terms margin? kind also curious on us there the behind is utilization what in the of that just A remind plant wells Are the terms this the there there? the of expected is start exit, in on of for

Gabe. Hey, It's Ben.

seen competitive pending it already making business. for really to impact that gotten, in this from point got money. in the the we've Permian, on So weren't exit profitability the the first-purchase we environment so It's our

opportunity already addition out but you to the you the negative crude, profit realized in profit at you've when side of impact. I’d had $X the in million segment at Permian in first $X sequential it for And quarter, the to also of that QX. positive a we'll side the when the realize ahead that in management million pick it impact, We and that there's also risk transaction. segment crude, look to look go point so

don't drilling plant, So it's accurate in have crude. have we an artificially running we our the on customer today a they rigs the is What on next this customer bit acreage. Permian have a that intention any or year program, to don't that and four dedicated that on dedicated Over with change waiting from Tiger acreage depressed received plans wells plant. assurances we've year their on

forward going the we confidence have the with why continue And plan. to so that's

point been could ask The [straddle] sorry? you there a that about your view elective obviously conditional Ben. a ethane be your a plans just if too, upside extracted I and that some embedded talk barrels plans, and things It around there's whether here. anything's in lot the guidance in for Thanks, on of Louisiana on bouncing question Can follow those here. margin And going processing seems up forward could have like Louisiana to potential then that?

on ethane there's of month Louisiana $X.XX. $X.XX last Yes, $X.XX, embedded not where live that is of end there Gabe. or the or processing. the was at on right, May I would say the you're much Xth Today, $X.XX

for improved. have the So processing economics

But outlook, not And our that. happen. to the from we're benefits counting so year on some certainly on, we that developing may we in goes as see

Tonet with question comes Jeremy next Our Morgan. ahead. JP from Please go

Just to higher want we the in The Corporate recent start expecting were what we've with a bit and what $XX there seen off quarters. million was than segment.

exactly? just or of And so what I that was there's gains was wondering, kind segment hedge if happening through going there in

Jeremy Eric expand may want and start on then to me Let it.

right. the segment. hedges You're Corporate recognized realized We in

report, rolls And help of it I and trajectory of that through XX can at the I the so way segment, of at in if look you you corporate. some understand the look help quarterly you Page think, the under

fact that in corporate the and contracts $X.X over point in weak is exposure in going driven Permian segment a a had that decline that 'XX, million we NGL a I'm to sitting the XQ gas, prices you see place offsets XQ That to a where about. There's by quarter-over-quarter That POP you hedge quarter. realized you're 'XX our is of profits. one So talking slight portion to segment that.

XQ the just saw And $X.X XQ add the portion by volumetric profit, gas were back in exposure. 'XX. that you segment is increase Permian 'XX offset line if of the you million telling So it we with to unhedged was to that's the commodity that

an on that NGL point inventory non-cash Second to we profit. And in is decline was mark-to-market $XX.X NGL very prices. that in is driven rapid mark-to-market thing in by I’d segment -- had embedded NGL that $X Louisiana million you million the negative

at gasoline an the when at of for XXXX was So just, the it as $X.XX, at was example, we natural end quarter, mark-to-market $X.XX.

there's to inventory million in Now, And against see that offsets of over analysis. in but do realized don't we there a a that derivative segment is $X it some the million here that hedging $X you sitting piece Corporate again that.

through nothing accounting add. realized purposes be corporate. may and Ben, to for that activity Yes, mean, goes I

the And lower I guys into the I'm kind been could end about you a baked or guide, sure the different the curtailments what there? asked or level talked but of not think has say you end kind was of what couple of duration question ways, upper if of curtailment

trough. in still see as, the curtailment we the uncertainty and believe it plenty can a today, we're would trough, there's the We months, recognizing we few seeing be describe see believe of be of Yes, will curtailment continue which to can this of level the this for we will I range. a level similar be world, what within

So range feel the conservative. like we appropriately is

a fix the bit current a just thought these kind up before, guess. a anything versus or with on of and level looking to I the price dilution cash was been at any just there question of stock levels the more, where that million I just comp it's the here thinking at else And share expense given price? and wondering theoretical of changing $X there's that dilution just if

we stock-based and think Barry, form of that to much with I Jeremy, being I of majority the that you're that’s something and opportunity business, for hitting on stock-based and in important maybe to as of is think is team the performance roughly take entire XX% the -- this exposure team Yes, it's a very point EnLink team, that out executive for across is comp. to our compensation. compensation the compensated of of the the is tied And our the

at to really think we been that out. appropriate issue it speaks pointing you're that So, for it's look to we'll but And the the past. continue

Okay.

maybe here? because metrics unchanged there. tied like relatively the it's follow-up key Just over What looks remained several the to it’s are it past quarters

for for that of First incentives. flow are: into are relative distributable the unit effectively unit stock And long-term LTI. have use Yes, per metrics distributable also all tied we that flow cash we relative performance, TSR and our per cash targets the

an flow it is distributable EBITDA and cash performance. incentive On a per also unit short-term the

also various have into And metrics the so throughout and then we short-term operations -- incentives. there our that tied are

terms a is than way we employees Unfortunately, that stock-based accrual So, to on little what is consistent actually based of comp value the more because is original see the you the accruing in in value. accrue the bit we're the fluctuations. seeing should that grant

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

for on call being and morning. today for your this the Thank everyone facilitating And you, thank call the participation. for Sarah

August. we great you and in you wish appreciate well and EnLink interest with our look your all We in results stay second and Have healthy. forward continued we investment to always, As updating quarter day. a

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

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