DCP Midstream (DCP) 7 Aug 192019 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Q2 2019 DCP Midstream Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today’s conference Sarah Sandberg, Senior Director of Investor Relations.

begin. may You

under Good Midstream Gigi. is and to be welcome webcast website of Thank dcpmidstream.com. at quarter morning, XXXX DCP accessed can slides second the call Investors earnings the section and our you, supporting everyone, the call. being Today's

we like factors risk out that our business. to Before that includes today certain discussion begin, due Actual statements. to I'd forward-looking results point our may differ affect

for use second the the deck in complete of risk forward-looking the slide And filings. partnership's to our review Please that factors, statements. the a SEC refer of listing describes please latest

will CFO We schedules to in non-GAAP be And today. will CEO; slides. remarks, which in the section appendix are Kempen, of the our will speakers also reconciled questions. various their take use your the Wouter after measure O'Brien, nearest we Sean GAAP van measures, and

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

quarter today’s our us. will into Thank discuss appreciate you an provide half you, join the second announce morning We outlook second Sarah. of call, we everyone. projects and results, XXXX. On and Good our growth highlight

excellent EBITDA continued and of solid financial momentum and XX% progress compared $XXX XXXX. In representing growth our to QX, achieved the strong resulting the million first year half toward team Our targets. we a respective QX, and of in $XXX of adjusted the of million, DCF XX% year-to-date

for is quarter X.XXx and X.XXx coverage the Our distribution year-to-date.

leverage of as ratio We have our X.Xx bank the financial ample sheet. was our and June and balance XXth liquidity of flexibility demonstrating strengths

year-over-year Southern Sand Basin in strong and and of volume capital double-digit strategy resulting operational by Hills. our optimization execution effective earnings including DJ Hills efforts and growth in underpinned our are Our on volumes allocation

capital highlight to excited growth several We're projects.

customers. announce the processing XXX day Basin provide we very producer week to we up will for and in Western accretive million First, were a capacity to per of cubic long-term with DJ incremental Midstream last which agreement offload Partners, executed happy our capital efficient that feet

to increasing capacity on day last DJ Southern Hills increasing in bypass Bcf now processing XX,XXX over with we're And XXX,XXX barrel per to bringing X our night, NGL third, per is of Second, plant our day. Basin. takeaway up total capacity our barrels expansion, service, in and X.X per capacity day O'Connor total our as the

time, service our the At between the commodity strong within logistics seize approach including same to managing our and significantly our a on that we We become basin marketing provider negotiated focus maintained a contracts XX:XX segment by a leveraging reduced through footprint, in and commitments we molecules. with balance move effectively our opportunities commercial and integrated sensitivity minimum infrastructure We volume G&P fee-based and bottlenecks and partnerships segment. margin to midstream risk fully long-term. strong navigated short both our G&P and constraints multi-year have

our progress continue service We midstream any vision XXXX cost DCP low safest, to environment. make great provider, in to become reliable the on most sustainable

processing complex Slide cubic gas middle the X XXXX. up incremental at that by provide recently million with executed the day to XXX processing will Western’s DJ capacity of offload agreement feet long-term DCP per details Basin of

customers our this win-win a optimize incremental for and tremendous believe we the is DJ. a for As is meet DCP all spending, strategic multiple in attractive our agreement commitment This critical to we processing fastest agreement to an and this outcome highly the continue at three a solution it's to solution for capital stakeholders accretive reasons. offers capacity our

extension, via utilizing connections Gulf Sweeny Front significantly growth to the fractionators on Range, residue on reduce full that's turn party Southern Two, need a Hills the by on Connector our delivering capital spend the value future while allows promise this of Bighorn capacity the processing and to us infrastructure. us flows we're XXXX a control our proposed eliminating allowing Coast. barrels, in new capital we facility. the third economics NGL on Cheyenne One, cash ultimately capitalize to chain gas This will DJ for continue and to to

permits optionality already Bighorn the to secured, with capacity preserved demand via it. the land future and lastly, build customer requires we facility And if

As over Bcf with our processing maintain existing the is capacity capacity dedications, Basin of DJ strong providing facility, O'Connor very customers assets, this contracts. majority we're into via of incremental X acreage by life of the the and producer of new our with half we supported partnerships of and our Coupled year. DJ with strong next by lease middle margins

bypass totaled offload a the several we've Bcf will DJ additions offload, middle multiple O'Connor announced And X addition available our newly meaningful the be of the in total capacity Basin. years, by additions added And our of the and these bypass DJ together X.X sum. Additionally, Basin past per capacity over day now and smaller the have almost XXXX. with

majority guidance of the we XXXX in our capital we capital first in portfolio that and the the in growth this the allocation our XXXX. comfortable cash balances to can of of increased integrates our as to that With half continue capital projects O'Connor range slide, half Moving in invested facility. remain we year, the our to online of next strategy Express execute coming for see you second growth future mind, spent flows. successfully weighed X the Gulf With was and slate Coast as with drive great

expected pump quickly Through Southern very NGL added we’re is the XX% XXXX from pipeline stations, excited per attractive remains of day capacity some Hills addition XX,XXX incremental schedule by Gulf which by call. barrels The are XXXX. QX end to on this is to this me year. Range In and Hills approximately the that in increasing at a the and of of come Front growth be by expansions QX project pipeline Southern the volume end since an service the expansion slightly Express underpinned ahead in DJ, of multiple. now in-service Permian, of with at online last Coast future the anticipated and be of track date let the of updates are our September. expressed on Texas we're the takeaway the highlight to in-service DJ extension, expected in capacity to underway In announce Now,

And awaiting is Connector to are FERC day approval lastly, Cheyenne XXXX we the customers. million DJ commitment targeting is this Basin date. you and and XXX our of together QX now see our a all that in-service unparalleled in Put will

chain We major company an downstream have commitment services a value of are ownership and a all from perspective. midstream the the and three to supporting capital, reliable midstream sole access full expansions

needed our overall fee-based with strategic on well growth, existing our at achieve additions regions. these investments majority also logistics solving long-term tier our and premier combined focused assets portfolio Looking the while are top we in our are footprint of to capacity for goals vast positioned

Now, I'll it over turn Sean financials. to to you take through our

Wouter, Thanks, good morning. and

make the in We our continue worked QX, Slide dynamic $XXX X.XXx. business pricing of through EBITDA progress manage to heels solid to of goals of on X financial DCF achieved million we QX a distribution coverage adjusted environment. resulting in while million a we of record earnings Moving on to effectively the $XXX and

Sand results last year, Hills, continues with segment over margins by our $XX Guadalupe million assets. Logistics from driven Southern growth excellent to Hills and of Our produce

natural as gas more that Guadalupe than adverse remind from low the offsetting hedge impacts a acts I'll you prices. And Permian

year-over-year XXXX, focused margin $X driven efficiencies VSP, cost XX% to separation volume to XXXX to down is voluntary and declines and non-recurring commodity of deliver year growth or will in period cash to by offset QX Overall, Despite down same XX% in program, Year-over-year prior our North. were by as flows costs were charge million diversified earnings net solid mid-continent $XX side, on full VSP decrease saw continues and in due G&P $X $X the crude X.X NGL billion, million commodity drive hedges. transformation. a respectively This in over of million opportunities we our our by these earnings. DCP challenges, portfolio time. partially impact the was lower price the a unfavorable price This forward. price relating accelerating of On the primarily increased

on outlook Now the earnings drivers our to some into key I remainder the for of on X, of carrying us and XXXX XXXX. Slide elaborate highlight want

and year, our the of year cash the from offsetting commodity strong based impact incremental half flows growth first of with half headwinds to constraints strong are takeaway a projects of and headwinds fee these predominantly Partially Following our second the our ranges. XXXX. select reaffirm remainder the we we coming coupled anticipate coverage XXXX throughout online guidance year-to-date

ramp QX commodity the Specific takeaway first to gradually sequentially including planned to with O'Connor the and rebound QX, flows to was second the temporarily than delayed expected will indicating be as in compared increased third constrained the higher due partially be spend. in up yet the what in and modestly are as projects Front curve volumes cash prices will quarter, will Express benefit forward Cost QX dampened year. half and NGL lower X expect we of throughout modestly Texas realized Cheyenne gas then to Connector. quarter residue prices Range, dampen volumes by G&P the reliability

coming deliver growth. Gulf Hills QX, will Front and the the capacity full flows. to driving needed the Range Moving quarter incremental Southern Coast and and be Express a online, margin cash In will DJ, extension expansion Permian the takeaway NGL providing of both

year. However, QX we Connector residue Cheyenne in limitations project service the is takeaway capacity until potential gas into still anticipate next placed of

Coast Express, benefit from of savings O'Connor year extension the and Southern the a Now VSP. Gulf looking Hills into from will X year XXXX, a from full and earnings we of labor full DJ

Basin in effectively half Cheyenne will year, and Connector with Additionally, the new the eliminated. service of into the Basin’s coming first the constraints DJ be offload DJ

the the chain will we Finally Southern as part fractionators into and go Sweeny in QX. our Hills in latter integrated the fully service of XXXX, value enhance expansion

reaffirm to solid outlook mentioned, all our this environment. in range of guidance our any earnings As on XXXX builds based

I'll With to liquidity. asset ample billion Moving to bank of and including our strength We're million and self-fund on continued commitment year-to-date. from our our approach growth to facility, have proactive flows risk debt, effective year-to-date through we our over flexibility position DCF, non-core market execution and sales delivering management. on $XXX cash X, summarize divestitures, available assets our financial Slide capital strong financial of the $X.X

On financial the risk strong track XXXX, margin continuing balance equation is sheet, a our record our maintaining mitigating the or close, risk we're management of our meeting side in of commitments. and fee-based hedged. To XX%

Wouter. over hand And it I'll to with back that

drive summary outlook In on our XX, half of good and XXXX execution and Slide for the to continues second results Sean. solid Thanks, a beyond.

of margin growth through distribution segment. effectively commodity segment, year-to-date coverage managing X.XXx, delivered within prices areas NGL our our volumes vast price volatility adjusted growth driven our despite approach in XX% the to to the diversifying period. growing our and multi-year G&P focusing team by and almost opportunities the We're Guadalupe by exemplified XX% key on Logistics Our is decline fee-based investments portfolio in XXXX in This majority of compared assets. over on our year-to-date logistics EBITDA same and in

Finally, and our allocation solid segment extend efficient we of bright flows our of value throughout holder to capital strategy unit increased efficient points as capital every business. integrated – our chain our value a future cash

this an of themes look beyond. in now excellent these for your year, mind, Gigi, With to rest us XXXX the taking questions and foundation off. and please we've laid forward kick I

our [Operator first question Shneur UBS. Instructions] from And is Gershuni from

open. now is line Your

contract, you I not morning Hi, don't benefit to have talk that. spending – we to capital about, also everyone. can very us. revenue it much of there of capital to for correctly, a the understand if Western of is wondering be Gas. can that with if good plant a mechanics remember agreement signed understand had whereas the off some that Is start from that. subletting still earn I Western to through appreciate kind would was agreement to was you're POP? with have with earning still supposed you the wanted Bighorn sharing to can is any I not. their capital. but you And just to I'm I you just POP if if walk Gas then or spend wondering you wanted and effectively of WES Bighorn, the I you're just efficiency plant actually revenue that

on remaining piece is that way to $XXX think that kind covered let and if at how take look needed – WES day we take should available on a earn as paid that us. million The margin some me MVC things this and This capacity. a the is And let a seven-year for of should the Shneur, look that at is of how here. margin you you. on a and it's of is fixed we Yes, that of couple About Okay. way for well, I you we agreement XX% different a fee me as annum. an per of WES earn

in our contracts, We deep money will customers Basin. continue to contracts the have our POP DJ are in producer with the POP which

charge a pay at the fees. POB producers – our is what even above fee we would our current we fee. So producers That in rates WES

So we will of two those. spread a the make of

piece The which continue we I is all is we're well. us that economics access continuing other get, to for think of the really, downstream to to attractive really as have

offload of So Southern the NGLs into of That's that out doing Basin. go this agreement into extension are the this Hills plant, coming the expansion. out Southern Hills this will why we're DJ

So transportation that on will take Sweeny we fee in through later the we And an fractionators they'll instance able interest a that. revenue we in earn push that will expect XXXX get on those. for to be to and

and the by its that. transportation Connector We FERC comes also Cheyenne will the get way on the when and find into will online, approved gets residue Cheyenne gas. control we a the fee gas And Connector

is very to it accretive us. very, overall So

If about gas but we will what is couple capital to field million kind $XXX delay the of million that and not we some into make to complex the for can see spend go infrastructure facility. would plant we’re of we in will you Bighorn you additional the appendix, of get spending sure the spend – $XXX that that

And us. very is so, efficient very, for it capital

– saving about overall. programs think about X, you're Mewbourn here billion spent O'Connor Mewbourn a dollars quarter probably what of kind plant you of If a like on we X that,

capital So our very, growth for attractive reduces significantly. us. very It XXXX very

and option say, preserve close how continue asked We Bighorn people and you have were hey, The Bighorn? on to

sure at overbuild Anadarko us, this to don't on capacity We very, with very in for very Bighorn [indiscernible] close on you want available. and we the the we WES we close until being Bighorn. make was were started to a literally that were end these The And always executing basin. around discussions that having

and WES between have ourselves. to want You

filling a win opportunity for by two two not for but the a in I far win, as basin us, of unit at only the processors win-win great are to and this that create We largest the was a win, for ourselves, look for our for holders, them This that which additional is important. to to up – the was producer processing our for get capacity be for customers, capacity our way otherwise capital WES and excess capacity really us going then online. is fastest

Shneur? of your that I questions, Does think, I all hope. it, So, answers

still for I and and just all it benefits No, that without get earning the did. confirming return, was a – spending basically downstream And the you thank you're basically money.

Yes, of if and – I look be the $XXX think to you probably would closer tend multiples. Xx do we Shneur, and view, from seven. point say to of like a five million This than to we always type return Xx

for attractive So it's pretty us.

too? I with in very made forth. of the board Sean talked much ton guys And of we lower, about capacity then of so to you that if shared progress. for already okay. a costs down even just this that you is can adding expect a come on side year actually with terms and think DCP recognize are in targets, sharing that I And successful mean Are can well talk in there you've wondering you you share more XXXX, that And about target to targets of X.X – that Are us through I you you have part then, efficiencies. opportunities talked there cost there as of terms And efficiencies that? how as VSPs do been synthetically further? some

and some on has of just able efforts been with hey, things X.X really the done - with Shneur, everyone things the the start remind ICC It the good the cost it’s on pipelines. I'll some we've of margin have to can the equation. side around do Sean. side So, shifted I that significantly.

to I they on based. But are also I around way. They right in of has the but you. significant efficiencies. a picking – talked way of are cost it this can efficiency voluntary think to VSP, that program. separation broad, accelerate targets. definitely sort that XXXX up about we're numbers team. the you're That And Wouter share doing. with They're few drive be more set think I it some things was about to targets a

we if the right think where on We into about I the is lower are where now, company are already about XX% year we came – versus headcount.

improvement. substantial would is, that pretty in board tell the I have that's That with you, So goals set the and for the line Wouter company.

XXXX. that In XX% number of our terms longer-term, of around the by to to end be would get reduction goal

the are drivers, we to here focused mix. but that specific of Considerably, think, those giving corporate digitization, and some I'm the a mostly in just while the things, targets We're things, all automating I changing the when those our substantial. operating the through So you were they're things progressing you are remotely operations, goals some processes, assets. adding pretty functions well. are on of but ago, doing

you're You think trends. some I seeing good saw – cost

time will grow benefits we we're remainder and As I the year mentioned that as next the that not excited go year. to through And through year. one continue the into of this reoccur charge

terms go asset as By are we on efficient costs. talked our million, help did assets, obviously the was that'll I'm but these down. a non-core around capital I maintenance million are And the look divestiture if know way, That less assets. These noticed, continue propane capital, but to going I always something divest of $XX capital side we portfolio, to on us get I'm the maintenance the well. reduce our usually maintenance sure as questions mentioned you continues things about QX business. these of in it's that small In We of year-to-date we sales. consolidations, at. to $XXX help

color I really Okay. appreciate guys. the

used and wait the for questions, I've back question. queue I'll two the my jump so IDR I think up in

Thank you, Shneur.

Thank you.

Dounis from is Suisse. Our from Spiro Credit next question

now open. is line Your

bait right IDR Shneur guess the on I'll guys. take segwayed then into Hey, I it. me

the your sponsors one So XXx. I multiple And, that of of recently removed them two was implied course. think, around

was maybe that the about here and how you deal, think your timing. Just to then read curious what process into from reaction anything we the should

employee. so, employee. obviously, not – not PSXP a I'm Spiro, a Phillips Yeah I'm

no insights and how at So have transaction. look I their they

their So I'm not going to transaction. comment on

I to be of the if not continues timing our the same us going it's going be This message happen, it's a absolute optimal do message. going think for this. finding question to to be is to to –

everybody about something for removing doing with is the think because Phillips, it. clearly So, they they great about and very I thing studying, you comfortable both are you if think think IDRs Enbridge, done

you to I give a that that about, thinking one So have we us the so the a now, cycle. talking the bit first about months for insight here about downside this? going are are year. six coverage, a we're And it's what argue think coverage the should how sure to type that of of way can that a X.Xx withstand can For we hey, all about down making little little we close that right continued a have and things bit and right of in of we this? are And we

good happen. So matter around this happen, to a to going it it's this to a have discussions is when is we and going continue of, matter really this if be. of continues to It’s not

stay So tuned.

new the Sweeny the about some President to I if to they’re there's laid you some efficiency, some Understood. just that guess guys you opportunities opportunity Appreciate that. another make comment to on out and has also frac, of they've thinking But make capital I'm of just of those here those their their the way considerably those assets options? new for so of I on projects take to you been guess and think sure will of spending midstream and by Phillips And growth if for maybe out, some PSXP. curious way

Yes.

do Enbridge like, synergistic I been And do and and just do we very, to we can chain that. us further do love well. to with and a benefit to towards to that find we'd X, doesn't opportunity to with open take how opportunity market if think interest think as an to Phillips Sweeny there's there's together if the frac XX, go there's if opportunities be we're that very commercial But very that. for think the great in an have together. great down even in this do Phillips with we continue barrels with them, have that a entity direct we I went to value opportunity I very If to open ownership an we can we're find frac very, XX to for

we Hills this, a here? do look around interest. barrels is own for us bigger doing to attractive think see expansion what leverage the Why work and And portfolio DJ pipelines more gives doing. kind those times I the those we potentially really produce to the ownership extension into have take sure you have lot make the of we want have very of We that's here and the barrels continue those picture we different control all Southern in Hills and we're And of the growth and did investments. of to into downstream that that that potentially on is to and to you flexibility the all an the that us at also that in to we barrels of to them with got are we DJ gives XXX% Basin, that instance in flexibility in this what DJ some about where we Southern and we're flexibility move fractionators and Basin? the discussions can direct that our part barrels add that

appreciate That sense. I Got makes perfect it. it. Thanks, Wouter.

Spiro. Thanks,

Thank you.

Our from from is J.P. question Jeremy next Morgan. Tonet

now line is Your open.

a dropping sequentially. a is I Jeremy Charlyn This wondering here. talk bit a morning. was you volumes if kind for about good could bit Midcon Hey, of

Just second producer of balance of half the for of kind XXXX? and activities expectations any commentary from

were product of last get year. mentioned definitely a more that it down to margins of average Bellevue – were Yes, margins are couple A in and down, to of Jeremy. year remarks also the my this more We we're things, volumes the Conway. because able the the in I settling

some see the net up backs. as capacity some that of about talking easing comes do and get the we're You of online. infrastructure We higher

is looking we that in forward, that It terms beginning I the Midcon in of with at an decline. see year. line is In gave area volumes guidance the about that the the continue to

no that we in going is there surprised surprises on So way. any weren't

We some the we're in a SCOOP/STACK, the decline infrastructure continue lot to of either type some those areas see in in other volumes decline. into environment. but There's base we're probably a of areas

you the infrastructure are – really the positive the that can of not hopefully area on to where tell On where is progress remainder be year. volumes side more more throughout declining the It year. shedding and I and assets, of that had consolidating and to getting second an come we efficient, some the continue to we'll good we're focus of able share half we've more on

that’s stuff. cutting and maintenance kind capital of lowering our some be there's think exciting way costs, just proactive Basically efficient. our to I our very

along on the So I we’re lines. gave to yearly there. year volume you was trending will continue and declines That see to guidance those expect

all on One thanks. your me. comment consolidation some in DJ, the we've that maybe the of producer specifically might Could that Great, if in more news, outlook? impact and growth you how from seen

Yes.

think Basin be on I I as that think can't life I the two comment here yesterday acreage acreage. us, was lease. combining. the to potentially continues end there out on we our DJ producers that all of in It's tremendously good in the have for of something

where that acreage, what to. would So go doesn't in switch the it end transaction a

companies to continue So to combined go DCP. if will it

and put starts think when then make I few additional consolidate same inventory normally, just it. a that it's consolidation, and people with to acreage. overall acreage in consolidate go theme to nothing to sense. probably and try At time companies and the tend it add Very they more drill so And do the

think for here in good outlook I continues us it's DJ to Basin. be pretty a So the

Great. Thank you.

Thank you.

Our from Mizuho. Gabe from next Moreen question is

line now is open. Your

here a Hey, on that on. set GCX outlook come in have question terms I morning. to good now just Guadalupe, is of

be you your So it there expectations leave contracts any around GCX may blow the fills and and there. essentially And as your far volumes that term long-term again guess as or the pipe that happen? over basis that open putting when as I in plan may out medium marketing may up, to as

things, Sean. Guad A record in couple a Hey, had the spreads. QX basis obviously tied Gabe, wide to quarter

– it's Our it's it recently, into the same it Guad still it been A typically we of on hedge portion open. – we’ve obviously a but a portion been future. more strategy the is exaggerated little out of

alluded I the cash think flows I of marketing those right? term those you You know really I more lack deals in duration to that. they've sort some, annuities, been liked those our in some lines. working physical are longer you've on agreements. along worked a for of team's those; think and lock We and on couple

just see half of – GCX a kind diminishing earnings the of our being QX that terms do outlook first coming on the Guad comments position as online. we half the maybe in open QX. That's In with stronger for even Guadalupe you year, second made little We the see in than second half. of and little driven the by

think you On to got the about side, positive it holistically.

And coming a online, what settle on is are in then we've in see so Permian the that increase. very to gas pipeline. got – earnings driving You've start to that the going way that’s prices started start we to we small GCX the

So if is the favorable those half you the think net-net about three company. the of the second to of all of year, things

Guad probably second point a is on half I earnings, true. is the and think diminishes that year your little However, of

deals number locked the pretty the spreads attractive add quarter. prices. have as we've saw on longer in here to number executed team prices that high multi-year in attractive as been in are the some They of at maybe – second But blowouts the term that as attractive absolutely years. basis of of has very Gabe what we to not there marketing Sean’s may And and for massive a

that’s an of out coming going I that's think other GCX I more annuity it time needed pipelines that same So the out very is Permian. kind of there thing. good point to the there's At of of creating than Sean’s and agrees are – everybody think

start basis able surprised So I opening somewhere that. we take be be XXXX see to and wouldn't then of advantage we that up to will again in

pricing – Got about the sort do it. of let you now XXXX? right but hedging talked what to kind you volumes, bit, versus in things a that for And then given in Wouter. little speaking to they'll follow-up Thanks, to hedging of approach if little NGLs spot a improve now, see extent forward locking want to of curve improving your bit right

Yes.

of the So in sorry QX the I side half I'm we're the think of year. first actually in hedge little half more the positive the on were second a in we year or than

As been any opportunities. than on have environment a for stronger probably things. look NGL see get for that. telling we that's program. do June. it. the actually We'll We have to conducive the not you're forwards July XXXX on do hedging us hedges We the saw We multiyear and We alluding to little put hasn't just a focus game what bit

positive So at then we’re starting bit us and a to see movement the least the of to little gets stronger. telling forwards QX

We're get year, will on hedges coming always will and analysts of prices hedging very back. is this of a next To the individuals we look if for XXXX And with then the opportunities. that infrastructure believe strengthen. come there those online and some of XXXX try lot and later when and some year, proactive that point

I from we where assets. up that’s ago. up years thing base though, you as five this focus just four, other XX% – The to you do well company year on the That's fee our massively was core the want as three, know on got

XXXX that guidance will not And yet, we're grow. but giving

of the think, projects that are this business to If you online fee portion continue that year was know, this the think grow. grew about substantially. the are last I commodity was about coming said, in down, company QX his hey, later next will Wouter NGL year about down and think versus and year, XX% we where highlighted all remarks based pretty you And

through hopeful So I'm I to we year. as to hedging think strategy pertains for remainder opportunities this continue will of on. in proactively put will a hedges those to NGL look place come have the good it we

Got Sean, appreciate Thanks, it. it.

you. Thank

from of America Lynch. Dennis Our next from Coleman is question Bank Merrill

is Your line open. now

couple flows Express drift commentary into a Most for Anything read there's detailed normal there? if fourth of been on delay, Texas customer questions. sort you Good have any some into It like morning, but seems Range of Thanks Front quarter. mine the matching projects ones for all. just or that the taking my me of asked, would. to

of get the – third that's have in executing basically county so one equity are the party Those to that couple things number been that owner the took project and now QX. – happens – a project. but of regulatory in set, not from here delays basically in managed it's – an that's solved what We're one some are stations months of probably so but things kind we’re projects, and of a pump to made QX be specific done Colorado. Yes, a weeks there need slip the into

is? another there that. detailed about thanks and should more Southern And of if terms is is kind talk you the then Okay, XX,XXX one for might on Hills we that any assume contracted it additional that that's

a number projects we by think about already really that that driven about. of kinds Yes, different so spoke of

O’Connor We're That’s XXX about million is great excited X customers. very which capacity. now online is of as So that. a day in today, for service the our of plant

extension. about barrels go Southern that flow into XX,XXX let's into – Those So about Think that will we agreement that. spoke with the Hills offload right there.

that's day, if million a million So XX,XXX, XXX barrels another day. XXX a that’s to XX,XXX

Hills if that two that we we're kind at gives XX%, XX,XXX-plus today barrels you a mimics of the details day, of those Southern between looking just it XX% which you're that doing here. expansion the into runs provided, So capacity. And

why So to we're of filling we're that pipeline kind That's this project. close doing up. Hills very Southern

is should think projects you we Hills. with those Sand what that did of about this one And

was highly stations. It's Hills it We're creative. pipe. pump Sand Why? same adding setting just We're not here. just over first highly, expansion pump the Because two The adding stations.

So Those that project great as barrels those projects talk you are stations the because day. that then about multiple. pipe, X, creates We at set volumes. And XX,XXX they're of you creative. type probably always a – Xx should can you whenever highly pump a on have a look

watch That's just great for items? you that that. color. issues Any Thank a there permitting

happening any we No, permitting don't expect there. issues

pump stations in the the set So Midcontinent. will

long we pretty – can it's XXXX? think very, [indiscernible] what lead pump So stations one that’s a but We pump two time on stations, this. needed comfortable say very and The lead why have secondarily are and hey, time. we

a this of So for will so why take probably the leads XX months just the bit XX, pumps little that’s time. are

color. All Thank right. Great you.

Dennis. Thanks,

Dennis. Thanks,

Thank you.

Our Fargo. next from Wells Blum Michael question is from

Your line is now open.

Thanks. Good everyone. morning

question for a quick me. Just

sense just any of you're XXXX directionally done western you've you the capital avoidance. just realize us kind with giving Thanks. it of but does directionally? not here, some think where least at I So Can of CapEx a specific XXXX give trend in will guidance like you obviously sound deal, kind you’ve

Michael, yes So here. Wouter

of around variety have given that we've a done. we guidance So projects

Okay.

the is. to of one the So for how and for is XX% in much XXXX projects going that ownership interest the we've takes is fractionators Sweeny option bigger disclosed –

we're assume So going execute one. that that to

The continuing option We we wait is an we next slipping hope FERC other year. that QX that. on that XXXX; Cheyenne exercise the Connector expect have approval, ownership to to project, one we’re so into

that that field part need about to capital And western. part be Part XXXX. will for then that spent of the spent of of in we infrastructure think the the will to in XXXX, be offload set

below all So we're for what is I idea which what you very take of can significantly pretty a think this of next kind good year. you we’re year, at those of get doing looking together,

if very point self-funding So it gets there a not is close really completely us. us which view, to close, of very from important

I Perfect. Thank had. That's all you.

Michael. Thanks,

Thank you.

Heikkinen from question from Energy. is next Our David Amoss

line is now open. Your

guys. morning good Hey,

agreement access in on with put that potential thinking capital you to that spending us place yourself spend? access $XXX about you've the Anything geography million the benefit have potential be you the to, can Just the you'll can that Western that terms can from Is providing the plant. you're wanted do give of that into to? in things there you the that of other

to understand. trying I'm

to someone, DJ hopefully to us various have sure processing take the Basin. – the to we make of we try in me right for Let that direction. kind get that In our I in our it take end plants gas the

in put infrastructure. to got for money field You've

what of a create system done we connectivity kind day. variety that’s obviously, we So great we're the of doing set the is between plants. about way have here for up, years where million a over XXX projects think our this that We

the door we next other plants to right Latham that some So is have. plan actually

in years to place So can infrastructure field in own be that it. if need the that our put future instance, we easily for seven directed after infrastructure you

think to that's system get volumes, I so think them we try get system. plant set not the can always you we the very way We get to up system in can – how plants. So different should but a about are one to super set just we of so the flexible up the that

So I look think – that's this. should at how look at you

guys into Okay. about you Thanks, of Wouter. multiple a project. that on kind And just point five then one I'm times thinking more,

include is processing we confirm that to doesn't pricing on wanted downstream that money can it that the point? that, capacity. that's It make this Just that's you And assume strip as the potential fair on based just well. at then

Yes.

strip So kind of it at The we that economics. of look pricing. what yes, of then Xx look current on kind value chain this is full way at we and kind

the at future. some are in crazy not numbers looking So we

Thank you helpful. That’s Great. very much.

Thanks, David.

Thank you.

from Akyol is Our Stifel. next Selman question from

is line open. Your now

asked. was Our Thanks. question

Thank you.

is Tonet Our Jeremy from next from J.P. question Morgan.

open. Your is now line

morning. good Hi,

base? follow-up before. DJ points gas of the the side. to of some nat out of of I and regards Cheyenne was kind especially to to in about wanted talked get With gas kind there the on are egress, online, initiatives event other coming the the just on the wondering, Just of

there oil any crude for do Do online, you think on can right of How you general in the the see the a of just other capacity bottlenecks takeaway is side? online, for whole out NGL, and and get new basin now? things capacity coming tight enough comes as there DJ – kind

now the things now right So especially – right are tight, okay.

calls, in – that the get you prior you about can you times basin, at is you've fractionators capital and by on of this place. get get about to why midstream spoke putting then not we're not we that processing that’s my only capacity residue putting make this I the only and sure and It's out prepared the company multiple major mentioned earnings the remarks, NGLs commitments, that new this continued got – basin just supporting ownership can the gas percentages of So into can all and in to in the are we expansions, putting that three but I in. say, downstream we are Coast taking is Gulf out

Southern out Hills basin? around. to years Southern view, do So the and if that the sometimes between the Range for point Hills DJ think from Hey, we’re NGL comfortable come about Texas takeaway – very expansion Front have an for On and we you of here NGL enough now extension of Express quite expansion.

really doing XXX that’s Cheyenne need to we with day companies From is a that. view a and than out of where Connector, capacity point some the of need went build helpful owner which why sitting. expansions, basin of the more out is is that. but million we main which That's of is tightness Cheyenne CIG outlet gives much multiple the the residue Connector the we

really we quickly hopefully can act, so and So base to we FERC going. that get need act

crude a point from talking were view. you think I then And of

I think Sweeny XX fractionation And lastly, then we're building as doing what from a know And with you at look you there. crude point significant now. of and need view, right Phillips well. good pretty things capacity

good. look all I together, take those you think of If very things

do you plant how to all as hey kind O’Connor I of service now that about, in think think of today. X this is of model for we

a the fact We not will because the day year go not guys internally that through remainder model of there, probably the for plan. this there. to the be there. is And The absolutely of about million is XXX takeaway NGL to is gas that

basically to issues hopefully and that Cheyenne in once online, the residue alleviate completely takeaways, to built here waiting any are enough have that Connector basis, gas soon. get we online get that that that is we we We Connector to will Cheyenne pretty need make and sure is happening

me. And That's Thanks. it for that’s helpful.

you. Thank Okay.

Advisors. is next question And U.S. our Thank Capital you. James Carreker from with

now is Your open. line

Hi, thanks questions. the for

the on number? follow-up there. from kind mentioned you about for should of and the that kind of projects as we field well infrastructure nature doubles, the how CapEx a of XXXX we're a formulating Just connects, guesstimating and kind in things XXXX CapEx, singles I capital mean, capital the of think discrete

risk not guidance, what side, XXXX one think I where haven't a next have expect caveat the we on Sean, you're and James. around as given until With year. is trying things – year, doubles, I from as would – this but the those things we to is look we're there also through mean to the I few here downside you’re singles which been. lowering forward small There's deviation But capital to we've significant down a This on will the we would I we sold continue, going The continuing year. are and that some model tied – give serve projects if and lower. to trying we next will at guidance

you. all had. I That's Thank Okay.

Thanks.

time this call would for closing At the questions. turn to Sarah remarks. I like back I'm over to further Sandberg you. no showing Thank

Thank you for joining us today.

have any If please day. to a call. hesitate questions, good follow-up me Have you don't give a

you gentlemen, program. thank conference. your in the concludes and participation This Ladies for today's

disconnect. now You may