DCP Midstream (DCP) 8 May 202020 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Q1 2020 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 is being recorded.

I would now like to turn the conference over to your host Ms. of Director Senior Sandberg, Investor Relations. Sarah ahead. go Please

phone the Thanks, quarter first webcast, available I on on to which at supporting call Carol. morning, and and the listening those Good our DCP encourage view XXXX are being the slides, Midstream is welcome to dcpmidstream.com. earnings website Today's call.

second forward-looking risk begin, may the partnership's differ results of latest I'd SEC out in factors refer Before Please please Actual affect slide to we business. that to our complete risk the that use to certain deck statements. point like discussion that our the factors, And listing today describes includes forward-looking of the due for review our a filings. statements.

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

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

you, Thank you're well. morning and you’re appreciate safe all I We us everyone. and joining hope and Sarah, good

everyone environment an resilience to despite our responded navigating innovation. few and first are our healthy, with this for COVID-XX crisis. extremely how want I months through of delivered the thank We're to environment Our of extraordinary say this disruptions you On industry, life have and managing one what we and will and thoughts incredible the discuss by today's best we're the connected our for year. this challenging quarter team to agility, through have and affected reliable you results our call, COVID-XX remainder outlook DCP. to and first to we've remained quarters daily safe, stress

achieved you during thank this exceptional that you've time. everything So for

you commitment fundamentals, transparency, we play we and And for safety, how our long-term investors, DCP. stability. thank committed not environment is also to unprecedented. operational do are will out I want to exactly, while entirely This your long-term know say To to it efficiency

strong Slide the evolve that Looking face multi-year a we foundation for strategy has established to to challenges our X, the company today.

fully our but allocation evolved Our guided Today, leading values a core to have industry strategy company our COVID-XX. digital into midstream disciplined has response at transformation. service and capital integrated an provider,

first ensure safety and our reliable to the Our to is all operations. priority of and safe of health maintain stakeholders and

Additionally, we current that mitigate the is effects global our have extremely moved industry. fast to demand destruction of impacting the

purpose year. four efforts paid have and We over cash of the $XXX sheet already optimized with sole months the of have million first the in our balance of a strengthening off

adopted have emerge we're stronger and focus our ever. strategy downturn ensure narrowed We our to well from to than positioned this

are said supported and just mentioned been COVID-XX stakeholders essential ensuring to I’ve As protected our our has response.

and see the months. X, customers currently response creating alignment alignment. efficient approach with To our extremely safe, relying few healthy and while and to volumetric ICC our work are the quality pandemic to plan employees, you'll we executing in environments customers On communities past we've ensure with and Slide transparency our for employees. our over are and customer service, our increased and close taken maintain maintain uninterrupted on operational We're and communications communications all

our and approach and ever now our than to Finally, we upheld community need know communities we've investment. more outreach us

strengthened highlight and to has X, how and On transformation multi-year stability of our Slide I want company diversity our our the outlook.

volumes in basin our single from distribution country's of us or the basins positioned protects Our premier customer impacts. potential operations are and

market manage interconnected Our team footprint dislocations. constraints ability broad the and marketing through our and gives also to

within platform cash providing the increased our have as flows changed fee-based flows. Our a to transitioned substantially past with we a majority cash decade fully company stability over integrated earnings

segment, investment of represent our of top XX% the top of customers majors – customers are who customers, revenue, are producer super XX A top our ratings. are XX% and XX our over Additionally, XX% well-diversified. with within grade

Our payable contract credit position net producers with and hold minimizing exposure. contains our adequate structure assurance we in provisions

more critical history safety nothing of operations best the transformation, company. and the the represented our to than Looking past safe is have in two outcomes years our

We've effort early orders. us basins. strides DCP remotely, allocation strategy currently homes, and our our massive offloads to processing within of out employees' flows operations and cost cost better utilization growth gas from in and transformation focusing only an before XX to organization stay and and flexibility not us advantage X.X automation on including at it truly mitigating the both of and through optimize in allowed enhance which operating take gives during plants also through this and overbuilt allowed us third-party Next, the strategic has pandemic perform home cash capital digitization, risk system made completely during low speed

Starting in cost XXXX, which to began recently eliminate as our as accelerated possible. strategically cost, make efficient we been has structure to

lies and retain strength true culture that fostering components downturn foundation. these talent, on our this been company strong allow a motivate, to engage and our fortify top Finally, our us we've manage focused world-class a our from people. to as And on

the we've head when X, the we which coronavirus began Slide taken. a throughout the threat. gave as functional cross systematically established you'll early later identify start emerged February that decline, to see global strategic us to force task cost a turning reductions company, actions capital commodities In and a Now to as

collapsed, cost million months, optimized the our of over as of and substantially for the growth announced XX% distribution, two our through the deferral option we capital, XX% WTI million flow price Fractionators cash following demand reduction and sustaining of has reductions. and reduction $XXX dropped $XX on over a including the in Sweeney Over

liquidity, that optionality to assumptions though, actions when volume very – system. speed integrated increasing DCP rates the current can we positioned by also ensure of this downturn through they we’d demonstrate include keep model. to deteriorate customers ability the well beyond scenarios, on our flowing system flow only our DCP These to cover to competitive conditions And utilize to This us shut-in our additional several and cash should some netbacks. flexibility producer manage our choices, make on market These flow maintain helps like to optimize not draconian levers. offer our

were at additionally, actions we also would lower ensure we the and we the expect which We And these reductions. that within further as prioritize disposal capital associated maintenance would maintained connect the spend. long-term taken have consolidating lower dampened assets dynamics, costs distribution. $XXX In very of on outcomes success. that and dry our cost powder unparalleled confident will remaining supply million further or all sustaining environment, well of facilities, we despite those our we've And considering remain

I'll Sean. over and Now to to turn it talk through our outlook position, QX results, our financial

employees, our good implementing my our despite healthcare their planning supporting to take I'm operations send to in-depth morning. thank and didn't our Wouter, going to and offices, Thanks, home frontline miss from books our and beat scenario corporate employees thanks opportunity working closed, in business. a our workers who this getting and

On of financial outlook Slide leverage in first million quarter. the our of In X, QX, of we times. you'll and second EBITDA resulting over results, find assets adjusted the and generated demonstrate which $XXX an of quarter just power strong million, four into our earnings DCF $XXX

company. resulted history on in were the the in driven sustaining reductions, our of cost the and quarterly execution proactive early costs which results Our capital by outcome lowest

by up Results of Hills throughput quarter, in the logistics partially XX% driven Southern driven full strong by extension. the fourth a margins were volumes our from from segment. also quarter was NGL pipeline

we hedges. Additionally in partially prices volumes in Basin on recorded we in and DJ by by our declines the and the million the Based had and offset Commodity total segment, primarily unfavorable, for quarter. demand $XXX G&P were price record driven of the impairments volumes first favorable identified Delaware. and factors, unprecedented strong other declines were and March

the capital our know were to line that savings is we cost the early output, second the brings we of Looking off volume which benefit took saw slide. the in volumes half in of although the the to start heavily the we strong to the to will rely generally quarter, QX in from second volumes will the remainder proactive quarter on our quarter good and a actions and continue year second with me we and in April next year,

we and in addition liquidity, And region outlook commodity significant lower to adjusted due We've relevant year-over-year First, that to capital segment withdrawn providing guidance outlook on substantial original XXth our changes to February and sensitivities. demand We're sensitivities volumes ongoing by outlook the comprehensive impact just the costs, volumes. have of XXXX. guidance our discussed, as our on actions are modified given for to and to the our reflect XXXX follows. and have we

margin X that projected The and result now anticipating And will QX. are with our plants and flat XX% peak Latham now the and XX%. to as of estimated volume protections strategic approximately minimal will volumes to North year X that QX of X% experience decline likely to approximately in We're want we at Permian endure full around declines volume occur into be XX% a volume O’Connor is late and I declines expected most decline the to XX%. of the to the you will each remind the declines, offload. Mid-Continent on volumes the severe newest South DJ. have and region

Logistics about Hills. segment, average our XX% XX% on throughput will by decline NGL Southern Sand Looking and to to

finance several response triggers reduced will teams decline Connector impact within financial XXX% region ICC the fully based side, on Coast view. the volume quickly pay. plans to weeks, In plan plans furloughs. Each Cheyenne as and of take actions proactive each includes potential gas for and for basis Gulf outlooks both our recalling our portfolio or the optimization operability have considered are needed operations, and weakening over this plan as a rolled an out supply on commercial our variety subscribed volumes, detailed and within and These and volumes consolidations, of our established and have takes portfolio. be On past offloads, options and Express investments anticipation wide outlook in

with banking facility revolving on our outstanding leading Slide owners. year-end ended billion and expected the liquidity XX we quarter proactively our is In approximately million we also institutions, global extended $XXX debt. the financial majority XX December, backed with and current Currently, longstanding years. shows our out with by we for $X.X facility the and liquidity partnership credit which details of our five of our share relationships

free will liquidity. with As XXXX position million we cash our of $XXX cash flow, throughout anticipate the exiting we year and over grow generate

notes the capital expect to in to we senior flow of debt markets. without million have due $XXX is late retire maturity to cash this and XXXX sufficient next free access Our needing

over it Now, I'll to turn Wouter. back

you, Thank Sean.

slide up So, XX. wrapping on it

As of our we the we people the company. wellbeing our the year, look through prioritize to in rest of continued

majority for capacity and long capitalized a short. total equity hedged allocation are margins well fee-based and XXXX. capital partnered being of We're base length is disciplined We've a supply on executed strategy of customers. Our XX% our focused with

and a as in evidenced outcomes cycle. start of and QX from strong track We always the Ultimately, cost. strategic very forward solid to will a meaningful this and stepped volume execution results and reliable with reductions a our you by effectively managing record expected we from April DCP QX capital in proven seeing continue have

it before couldn't our of end our ensure grateful. to to to the forth want We've we health crisis over our workforce and tremendous be during same the absolute So by the operations the our we questions, and employees. quality safety effort thanking we turn put we way started an this more of remarks and

So thank you.

taking your questions I kick please and it With to off. forward that, Carol, look

Your from line of Instructions] [Operator you. Thank [Mizuho Securities]. Gabe comes Moreen the question first

the to out everyone. you environment correctly? from well. around levers only give Hope everyone wanted difficult say environment, I it's in additional morning but today. hear something about guidance Did that current considered All laid I I deteriorates what's confirm appreciate in heard is good Hey, either just pulling your the guidance things to if that

Yes.

heard You that correctly.

March XX built in what already levers just think of February, from of you've and days in and heard the last can’t the because the capital and seen that us, from and the amount quarter. us is in even cost and before then seen that that do quarter, results a we the obviously, first tremendous results I you January Gabe, March you

you're right on So, those your well already. points. were yes, on all way their But of

one they bought a had of markets the earnings this at then amount face that discount decent value. And with in a announced Wouter. your to Thanks, Great. morning peers of back a debt

that's it's under if your on considering considerate – wondering free flow consideration end focus and the use. de-levering Just on cash a

something we liquidity. that a we've some absolutely, we've – Sean we that discount, the has XXXX that. to years. – markets we've have The were on there actually liquidity out you is at the the at been back We've the got that on ensuring we've is give inefficiencies In and Gave, company these some run, pull XXXX the them show at short focused this as definitely Yes. looked that's plate. ability and looked shown, and keep

but done we We of yet, liquidity considering it, current it but as short-term focus. our haven't are primary is remember

credit to there, just from market? discussions And agencies technical there's buying nothing Sean. the clarify revolvers would the Thanks, prevent back debt that in or with you your in

and over - glad – brought in I it up the extent see years pulling I you the you think the take and too. some if There's have nothing always can to of depends there's that on implications I'm when maturity some at The this the looked RAs that would tell a disconnects we've duration trying will the it. prevent of No, Gabe. to that you, the majority back. and out you're you're negative going tend markets, obviously

issue tends RAs. shorter-term If maturity, with an you're taking the of to be less a it

XX If some the know, can implications and they you're or you're we're and But, taking that majority that it, say have rating XX things the with don't you considering. doing those going the are they out like. agencies of

Thanks, macro me Sean. Wouter NGL last of for your the whole And maybe in of in on and forward is thoughts maybe the just hedging going strategy associated terms gas terms of and then curious guess I in some debate. impact one

Just couple up the moved of curves how considerably considering last have pretty nat over it for you're weeks. approaching gas forward

Just kick off there.

with about this I game. the let we're hedged start hedging significantly can I in Wouter have – XXXX. and Obviously, macro year talk will

significant When fee. as I years gone to continues know, QX, you had multi, the we a on one And of always been three you we've far hedging. Our moved strategy such as remind has out the reasons way has I'll a multi-year. a strong say business to move – in

I the in quite movement seen be the a company. the we have between some will for So downstream the beneficial say, proven hedging and it's to opportunities. fee strategy,

about little gas has actually and the seeing talk the Wouter a bit. some you associated a and disconnects As strengthened you strengthened give gas, little We're propane ethane and there, but color bit.

the gas some Last bring expect reason the fairly on in ability to us to well continue hedges I the this So that next to grow. and getting of year gives again this remainder fee XXXX. year. our for business point, – hedged that up on we're percentage obviously of get And

for us. Hedging So tragedy has the very company good pretty been is shape. in beneficial

where kind But so bit second seeing do, unprecedented. when pricing you prices Yes, for XXXX, what volatility clear to still are trying give complex down not if pretty little difficult of Gabe, and it's in changes of XXXX we is see around pretty the you on but were daily curve. unlike maybe Sean entire XXXX, we’re further the constructive on fairly think fairly a many to – others, of to continued pretty I Obviously we're and to the was think what kind especially rapid around demand constructive changes add, just thoughts macro the in general, side. supply an like I environment we're to often in the half

look NGL component XX in you what one seven the sites, alone. like ethane. in XXX% the move There's to ethane, happened just look a at at you probably at days you just look of just If last

not things So with right us that, But our the we'll is like small portfolio, locking kind or probably, gas there's opportunities far do we're think if for the tremendously products other things down duration some curve. to to about I now of hedge it. some add very for or in excited crude

Thanks Sean. Wouter. Thanks

Thank you, Gabe.

Spiro Dounis the from question Instructions] Credit [Operator Your Suisse. line with comes next of

guys. morning Hey,

off the volume with could. if of some the around outlook, start Let's inputs we

walk risked your much at arrived producers, you've from those of looking maybe levels through if at specifically how some you how input and wondering guys targeting. you Just

a in think I appear the which maybe but decline. think imply that Permian XX% actually X% and a doesn't exit I year-over-year, buying space, rate decline conservative not does

inputs? some So that of once I at just And guess, I these you about thinking think right? arrived about how am us again help

think about I Yes, Okay. right. are you thinking

about how talk at arrived it. Let's we

you in Wouter data talking tell this. conversations cases. give to has And can our started I CFOs these an our assume, like at and point. myself many with heavily interesting been lot a Spiro, I'll executives company and We're level. you, commercial communicating could The weekly know CEOs. times our in producers, of always significant groups of have I that You through pretty

running of of in the We as process, So We're scenarios right that's we're now. massively. all scenarios, to see, stepped I’d the alluded inputs input, imagine and a terms we're Wouter it at has part taking comes. where up, that where assume, remarks, the in running amount communication what of change those on a these significant tough been but you earlier, can – my from to and that's applying basis, producers. significant daily we're as we But

to good there you and listened mean, April in had my hung I comments, a volume metric QX, we very well. Wouter very

with obviously everything those period numbers happening supply was said, are we're real-time that all gave tough. the There demand people COVID and a some going a the the side additional side anticipating I be representation to we're at to declines So with that's see April on looking hey, going on what's is happening inputs. inputs, of

was Wouter good. actually You've heard say April pretty

of That's what anticipate now. context the inputs wanted a sort give give can and call my middle. hearing. wanted do still. built the give we in what but some economics the And to to commentary declines. I very move continue to Mid-Continent we that much, and anticipation And he's I then of of we you the levers what guiding difficult environment. think why – those on Obviously, one are color right color too pulled some to out, Things from we've very Eagle we of as you and not strong in do all he Ford economics strong, from you economics producers, DJ are you these i.e. are are the discussions kind the that all we Delaware hear think

– Wouter, producer specific give shutting to we this with a we our prepared things able where here to is, we offering us you you service producer. where midstreamer probably say, producer, to – in And have is it's a I kind our to also of remarks we upon case. to bit hey, kind midstreamer we're by with amount and mentioned kind you of and a start maybe And need we in Spiro, know that if you can them back I little come add by individual of And Yes. systems. we a my producers think it flowing very based you say, couple volume. of a on integrated give examples of significant worked provide can work better things net keep I what,

net things that some of someone we was stayed kind on and a volumes trying dynamic the of system it's pretty we're like system. variety things. continued of where all off result And significant to pretty, environment else's pretty, that that a And situation be The optimize to as you're know. taking our is

know end, On that Then have for what's trying situation don't to demand the producers we to a point are to starting that when happen from really things the going up. we one open are figure view of storage up.

March, we're absolutely Volumes asking But are producers were in here and today. we in to you saying, May. happening some have volumes and expected in seeing we and things April very they're they talk to solid. probably volumes, did off sitting great me all hey, come would If sitting

June. probably more seeing We're in happening a little now things bit

obviously and I thing better right things to this a start more starting But keep a is as now as So be back keep cycle that thing longer the very a think start really, for it's consume. back that drive it obviously are in country to And economy, kind be bit. actually again, on system, things to continues likely that eight you good we're where little but nicely the to us. that the – you And have we're really producers dynamic go would a is. for global managed us. to work, The pushing quite a situation, this week And being of continuing helpful.

can see us, humbling a that been Just the savings bit outlook that. flows. this again, give you of there? soon, guys and switching encouraging remind surprised much us can all cost cost in appreciate predictions to so for savings Making I has certainly environment you so us Yes. an coming in a just experience us sustainable are of not to how just those could

or we're will declined guys consolidating volumes of by these kind year, As operations? there into costs you more to a be about thinking lot of eliminate the year next fixed for opportunities ending

Yes.

cost but Slide what of surprise the guys doing people on you come of how doesn't where it give number announcing cost definitely where of me The we this much of we don't year it. early we were we seen are recently, savings that's tried as next that amount cost still basis. going that to in, hoping that levers I as in quarters. do, seen spoke – doing they're insight see the So you I've are kind and And pulled. why we you've about and have they're but to X you'll that savings, that's kind number

that not March. can You do the second half in of obviously

in materialize that to it. here have something stuff the the people So execute quarter. starts outcome to what to seeing stuff you bank. This are take you actually And early you're hope clear that that started very nicely, very a going I to executed, of its therefore think can is don't it's

lot what world doing have a certainty with with we're what uncertainties, a costs. we're of doing And with in there great you a and around so capital

think nicely marking those to that's and I we're So into continues the go of all the rest year. of

rest around you more do myself happening can we to can consolidations the can kind them have regular basis, a on my as basis, weekly team, I that in hey, a looking remarks we're volumes. you on mentioned is of you do that meeting this. than field absolutely at, depending I tell what the prepared show plant what of what management

starting on as sitting execute see plants desk the off volumes the are soon that come to as ready So system. we there to are

haven't have of seen we as today, far lot we As are those any of but a plants. really we

is we're that So thing another absolutely it looking at.

continue us year-over-year-over-year to that. You've we'll do seen and do that

Spiro, just add to I'm going one.

asked carry of things that forces on. and in that savings. is about obviously significant You are of There a sustainability the portion reduction nature

cost think early, and Wouter's got I the company, terms the interesting, and heard to reset that's the on we're I'd going volumes you thing comments stronger in the be ways company, savings one back, to of pretty than a back, going that we've of we come we're the think got level structurally when resetting in lot I when anticipated. commodity comes even

I'll in it's example there obviously going of people And other give very reducing everyone certain the interesting experience, able around we've all were are one sheltering travel, that reducing coming but I you in and sustainable. be been of some long things – – positives COVID the run, costs. to few place, believe the working do out is to

things We've I normal. when back how the to the to need some not to going those of even do comments earlier. office. impressive. that in differently We we did. closed efficiently. things pretty get believed would way we have We're we learned have more books made could everyone our It's I do don't

very well incredibly from management bode come So we sustainability the to deliver perspective, some up sets is excited has team going when think that here of a able back been things into recovery. and really DCP I'm to I that

of we've transformation. very, only but transformation completely us around add us way sustainability. digital underestimate at things level, corporate while around an digital and all of alike it, plant level, Yes. work. to the the has around the reliable changing at that that field safe, And do And all a here and very gave opportunity maybe on Don't operations. work having was thing cost enabled to thinks And the level focused, kind more some done not people it to the significant one

So and over digital transformation last very that current I that time, dollars the spent we environment. leveraging this in where significant years has number been of something very, think is effort

color. the guys. Appreciate Thanks

line Morgan. of comes question the J.P. with Jeremy from Your next Tonet

Hey, for on good morning. This James Jeremy. is

quarter. wanted the at the but up, maybe constructive mentioned DJ. it on guys April to from economics, you if can Spiro’s there. and strong how are of you volumes pretty gaining second Just halfway but as DJ, was you get there. seems any to add through into Southern like particularly dig Hills seem the question XQ How you seeing through follow It least volumes we're These almost you deeper momentum guess, with I And there are color seeing pertains the production? here, kind

I doing so quite nicely things far us. think for DJ the Basin Yes, are in

at as mentioned place through to things But seeing looking the So and some do Bakken. like were strong. are very you're form absolutely kind expect rate both any seeing – now. of shut-in. or we talking Sean things shape we not a I'm inlet get in our way, flow like in right And it's

expect time, remind minimum us do you that same very we want dynamic will in protection right here coming producers but the the I months. kind that very, to our and of minimum very steps And margins. we have that now, have here be on all lot some situation. at to a nicely give continues commitments it volume sitting So quite of systems

Got a touch in good wanted Thanks. you in then spot to but it on, And it. just guys year? foresee seems do are liquidity issuance like any this you equity wise, guys

James, I issued haven’t been years. in equity over – No, we've five we think

equity are, restructured really word them the use up again, the of – actions, ways. in we've When I'll many permanent, those, about lot of a utilize and at anyway. the It up there's of markets we but the to good in us to the weren't sets issue place sustainable. end obviously and really day anticipating that you the million plus think $XXX set think need of I really company with not a

That's Thank you. for Thanks. color. Got the it. me. all Appreciate

you. Thank

question next James Carreker Your line Capital Advisors. from the U.S. of with comes

morning thanks. Hi, Good guys.

margin you get volatile, the on clearly guys guidance, color to Just about the some the you look items that top prices guys spent to on of MDCs talked thinking volume some EBITDA is And to impact, are commodity withdraw about you have. market minimum then and some time wanted of to. maybe there decision but a

kind are there? not the number what gave reservation putting known you that of and out unknowns an updated So kind of

me one, take Let that James.

I have think you, by want you But and given foremost, volume segment, region. but have you we accurate. given want First to be you be we when give we to guidance, not people guidance by given reliable, you EBITDA, have

given we've now. sensitivities. given are liquidity, it given pretty I and you you have unknowns? you guidance, cost the think right have duration detail, we we is the you have dynamic Price and capital given We What

cube blindfolded variability like and to too and to it and got get too much Rubik's It's complex solve trying luck right. a you there's It's out visibility. no

Let's we're and in don't sitting energy thought look like I going be the year. anybody around to this energy has clear energy here, are is half very between a second of in Midstreamers clear midstreamers. think good consumption. the world consumption production

I by change and And production see every basis. producers look to question continued at our look around you are day. have still this, and here And at almost weekly we've think the hey, things if things very we energy what seeing? as spoken this are for rapidly, daily, hourly, being you various we day about industry changing

over here commodity the you it. sit and So think cycle say, then you

last kind weeks. of I matter a seen mentioned two you've ethane moved three XXX%, of think I within XXX% earlier, or

minus $XX from going crude to minus barrel mid $XX a $XX. or seen You've

you we for you. what clear consumption perfect that though of is but energy the we and midstreamer is, know even we saying, amount volatility production energy So don't guidance then know and have have what hey, don't

I if hard. does is think that they that pretty that,

calls details we why give given So can have you we our want we be all to given those call, we've I we you reliable, That's make earnings want details. during to in more be this accurate. an probably with than that you. that normally you have argument again, we

that unlike absolutely the when for to we're returning important, So guidance. dust us was settles

is really I showing talking Those we're what showing reductions, not are capital the cost up. you are them take Real them. to bank. up, what matters Real think those can showing doing. We're up. savings. They're about

and finishing for, years to world not that have a are assets need years the for doesn't We come.

[indiscernible]. a recoveries quick go and who if alike, under it that of situation But company. was whenever is prudent massive the to industry set up $XXX sheet will it's is difficult could is in well back covered be we but obviously everybody to recovery going don't having, they're not done you to only with something we we unknowns and as you we accurate. go be liquidity but we'll that. EBITDA really, And and What that things have to some very to not of going be million if we for their know, give clear retained giving globally. quick, And hope knows absolutely is really this cash the if We felt guidance. We we stopped the to other to create through industry do balance every our

as range. margin well. goes the peers understand be some then I prices but it of commodity but we've down to it then have a reason I It a what and rate, your sudden No, one one necessarily found is because that all go down a could And is from seen be fee-based difficulties, number. fee doesn't up fee we've of bring

it I sometimes volume so And give I’m – behind change appreciate to certainly range can sense relationships of least estimating… I but understand for want a assumptions price the some and at why the so in difficulty helpful and asking be outcomes uncertainty, of so I or the just the a between you

it's question. James, No, think a fair I

I that you. think you've given everything given we've

I think the do can you math.

well. math start that sensitivities would some there should and liquidity Remember there's You can alike. give number really, in how do you of about things the really other a good indications to with pretty the things

about was and any assume It's additive just… sort any actually I going to liquidity or be type any Is that sales year-end definitely to other in asset ask the that. liquidity? mean, that does of items one-time of I No. would number, there

No.

Okay.

could in I do. other sales is people who there guidance know asset never budgets, our that like never things and our do We that. Yes. in we

So quickly, may away may finicky, in go they we at as always quickly. those they look markets come

non-core that certain in sell like above So we extra around, that that is kind did last – into be potentially just If money are an can never bank. you year and over operational. put that would an the is any we of an things of there asset hey,

to sales, the But plus, billion, doesn't X that's I there XXX any but Yes. get there. been the to you get require you we've that to close end how focusing you comment, mean range, would high of just other get on that are Wouter's if out James, were right? to levers

declining some you situation you level guys alone fit some of if a I I high guys to owned and And you have could of contracts helpful. of But you Hills. That's responsible the even us, in more, see some on Understood. capacity. even your guys for commitments you. in would shipping know of can – partially about pipelines? Connector, this environment underwater Cheyenne you one yourselves I Got remind Express, there are that just good where a Is think talked wholly Gulf Hills, own production Coast to of portion Sand Southern

think – don't think that's I case. the I No,

about bunch our the to now didn't put empty. place seen be coming which many and awhile. offload overbuild to – others other that of the over want on you the have you the also we've big feel utilizing over-capacity We assets. different G&P James, In company couple you pipelines our on I we If are didn't words, think capacity side. for been We significant viewpoints, agreements. way, on the than other a been in in and a very around going years NGL used make the sure of we've understand, capacity both last assets have

push we – we is that periods them and volume any pay reason bring obviously a back we off have. can are and satisfy low high fee, volumes The volume that T&Ds bring we I can up periods, in that them those help in to if them

any required with we well that or that we're set are not incredibly meet. to – have are to minimum think, T&Ds up issues So on I volume

to perspective minimum that one just connector, XXX think commitment for maybe you, is $XXX And Yes. day. is volumes in on put I our a million that Cheyenne – to our

bcf about like place Basin. flowing billion, DJ X.X a in the a X.X We’re

of I that perspective. lot gives So think a

how pipe on NGL either That's be the could helpful. pulled you back currently much have, you're of that guys offloading that Any quantification or the side? G&P

not give we're offloading, we’re into tell all Basin, I all but Basin offloading we to on places. of we're on some in a where in I details DJ we going floating We're Again, of think have the as Delaware I'm floating pipes, can number been well. different are, offloading you the you

Correct.

all have. I time. you for That's That's Thank your helpful.

James. Thanks,

next from question of comes UBS. [Operator the with Instructions] Shneur Your Gershuni line

guys. Hey, good morning

on systems? previously, Sorry, just start been follow-up If just other I’ve being be offloaded – last I’m perspective may to today. calls going asked that to maybe that questions on you're there glad a you Are all off many question. to so safe, back at to are hear an from that I'm could James's clarification all onto have ask to NGL pulled

Yes, we're offloading.

reality, volumes, that so we've we on a we offloads attractive pull on the trying more and So been certain side just NGL because able the situation in capacity, on because on. other overbuilt to got you very been utilizing utilize are at people have here's Shneur areas pipelines rates have NGL offloads the to those side volumes

So can or would onto the require, those meet a that had pull to to is our a we we we on. if back to point a we we make pipelines volumes pipelines trying need pipeline were need T&D T&D – that

phenomenal position in. be a So to that's

it's need decline on minimums, offload bring building allude that full a people's our been You those to G&P again, of side. assets, so we have seen same had is to growth, of and in some have the G&P overbuild able Latham keep great meet thing example, the capacity, the Instead volumes heard that back ability. we Shneur, we've where assets and continuing tried earlier, to to Wouter use other a if to volumes, we period we've

appreciate somebody understood be just anybody’s at it is off And before. system onto like risk loading to enterprise that. Totally clear a an or that anybody pulled is is else, Yes, back? Sean. was your want that I to and ask question, or target

No. it's – minimum And minimal very, are, volumes. if they very

lot now be capacity lower short. it And been quite about for strategy about think time let's in I a build pipelines to a was other stuff. we’ve continued I strategy time. more more to very been too of that think say, we many that who plants, liking We've let's this quite hey, for talking counter Shneur, build were and talking some supplied some

or a kind lot this So very been change too years way many that. less a in growth kind obviously build us of XX force strategy more form moment some saying, into after no to only, need of we think people at shape have in or let's more, build plus situation in – of have our to of been hey, others supercycle We COVID-XX growth counter expected I hey, fund. of more

people lot let's think kind are there built by too plants saying, we're and that more and need of I many But, hey, of lot general, A plants of new a building long, not probably were in to less. new a not to we as going continuing were growth people are and fund other speak who time. people long things for

set the distribution have which were DCP sort you been strategy event, too. the issue is been very That you the things coverage on attempt have balance up has that of overhang sound one I good makes realized optimization ratio. costs has sense. your an fact the And one. think opportunity went that's an you've to that always one even early also But sheet well. been you double solve And right size a area while mean, IDR And gave and the blocks, as and I after the perfect of well to sort that. to I

seized and it XX%, kind where as value seems focus cut, in curious it's of like because have it can and XX% by And nobody type of pick volumes take you gone an distribution to much key temporarily return cut be why obviously you as XX%. down the to soon the wouldn't is up. you start and placing further something on it environment, and is I'm that say this leverage to

could you about I discussion kind shall we owners level your the the at wondering distribution talk Board or large if the So was with about decision? say of and

never is one release is of This downturns ago, the I'll in of amount been to start I've ran, Shneur. career. is in maybe discussion put Wouter already then I we all had we've and to been scenarios I when week, cut we off million years that seen, look costs, the in feels wasn't Shneur in right? Board We ago, through models are XX%, self-help. what the that worked, reduction we the get it had take you then of we it so long had looking some $XX levers. lot through how and was cut and and the think a the context you I can has I about really give – which did But my and we has March, bunch was and the it at, if with a appropriate. out are capital force, you mean, with have happened breadth want the press we significant What action place already around of some like Wouter this since the meetings we another more pulling every and after do plus capital, continue that cut a obviously came charts, another back ran in efficient – sustaining the And company what

did. felt the we this. DCP can from But that I and how measure we powder, knew hate if sound know we have So sitting approach, that a that's managing took. rationale continue continue had believe we I'll here had close very more if case, more out powder, what continued levers. that an use a the but through want Board term, we things had more we the balanced I strategy, to time dry pull through get get to let's Wouter and saying Committee we worse things we dry was we worse that we I at that's thought, company, And we think I a to felt but we – to by as talk And Executive take

longstanding the long, in I long think the been company. that that to Sean at But going that is not I'm of go don't $XXX stuff, under end think cash we Board moment to that went while And for sustainability of of wanted do have circumstances, a growth think time balance that was to correct. believe we I things we through new powder and liquidity, those the numbers. here to maintaining and sheet delve if at I with straight optimizing the long-term And at I’m we the you discuss then – very here. dry to that systems other strategy. the us the projects talk we Yes. very, doesn't time What that same investors what balance and is is to do today, the significant it other you continuing commitment have and around the to do did have look business, kind and back the right and building to thing till like to like. things our million

of And in cash our have a foreseen again, think you I thing can from flow situation free details we're a probably but, the XXXX, ever nobody a tremendous scenarios see kind positive current except this amount on we've of could which like given numbers for under coming. great is that you EBITDA, clearly here our that

your But like materialize. are they new when just completed, and the forth question And what That the things final that we assuming should rate Just in operationally. footprint about Can your I just to existing decline makes – be if that rates thinking are no drilling around there decline I underlying may, going so about you recognize that footprint? one are sense. and I shut-ins DJ? there's with activity wells weird the be what's talk for

drilling where I horizontal it rates are is place inventory dissimilar to think old vertical or other the much. as that a of are all kind without wells tremendous declining of decline just predominantly not

in docs kind a if significant volumes our DJ that to DJ see that inventory the a Delaware key Basin offset some nothing of that Basin you similar, have for relatively we system have our But other one is, through our happens. whatever and and think is on pretty producers Basin. So offset is the with here producers, of minimum of some

Okay.

vintage what sounds inventory wells. Is vertical wells have newer legacy more you significant do it would of horizontal but towards like I docs, than at? So characterize tilted rather you're a that

volume It's vertical metric on that system. up There's obviously the at point lot a the the and of make more wells wells Basin newer Colorado the DJ of vintage view. same in still from a the system time of here

the you Thank I very Thank you. stay much. right. and Appreciate color appreciate. Perfect. All safe.

Shneur. Thanks,

Your Jeremy from is JPMorgan. with next the question line follow-up Tonet of a question

thanks follow-up. Hey, the for taking

just back far? reductions, trending realized PR on $XX Just noticed wanted million had and just the talk I you through maybe in quarter. XQ you to how this components the about cost there you're circle so the can Maybe

significant years. we've side Jeremy, – bit cost the side we're the businesses the out in significant quite obviously costs with bunch of what amount equation, corporate anticipation it's obviously the of – out the amount of equation, of have of is a a so of there coming spread heading you Yes, significantly over about on the We technology through had that continue But obviously some program investment in back numbers all we've slated to pretty benefits what's some the a of three high into happened, we the last XXXX. talked made those. pulled towards,

just thing occurring April. that a in you're reduction that the going as throughout see One – force, happened to of item, in clarifying more

So those QX costs in are the really dollars. not

from the people just lot and earlier, trend, the home, sure people last to I decline we can work moved make of of that. you're back, was that pulled the of some of to as And company to reduction sheltered overtime seeing terms place, we things going we're on In a types way. – guess in things like thing then we a big try travel, think and areas like again, T&E. things to in continue Those hold

equation volumes In that I you side, far on actions benefits around so feel so even good we've Wouter, the start – pretty of in again, we're so cost the see took, into side – alluded good, full the the QX, cost the as so of far terms trend quarter so and second we as of some around seeing the far to the to and well. of

think has it working go in it's our are that shown something an is quick to and and company ensuring plan So around at well this definitely I ability costs execute line.

leave I'll it Thanks. there. it. Got

Capital line with question is a question of next James U.S. Carreker the Advisors. Your from follow-up

was particularly any Do to have we on lot to GMP that you less process full. on see some what ethane upside of for a guys rejected? thoughts wondering side situation for gets – or in and does you you the relatively shut-ins are I just guys. and ethane, balance the Hi. again guys, running see broadly which production if of if less if of as new these the provide any a Thanks crackers rest your into baked does, it of thought And that is pipeline the side? Does XXXX? still that

not Well, of I right this kind look upside, now. as baked at so in

I of I them right, obviously side just like days work, couple matter a a made of think of or demand ethane of a of equation. about so. XXX% seeing one at move I think – couple in you’re is There couple you're comment absolutely of the is the some things

The other natgas. thing is

as would system having So then secondarily pipeline create be from it exposure and not creating to barrels ethane helpful our view, for point upside, us, for would commodity a some well. of from

So as look that good not we'd a guy.

And I any potential I it's could of quantification hard. what do? know

Yes.

obviously give sensitivity. the I think we – it side, two side, from way the give we price on you're James, levels. think price at about to you the the From a going

still but whole but So place it some ethane in barrel upside, open have we there NGL there have hedges is NGL I'm we the positions. do some we in – and year, some is this composite, sorry, there,

about to would XX% is equation. million the pipelines So it the happen what what strong, tied you plus. correlated I significant, talking a be to the we – obviously XX%, also XX then of side And say, back decline we going is alluded I – of to decline you're of things could came gas to, think on on the talked XXs the think

very in off, starts last remember XX rejection by a but we XX, were XX. only rejection little rejecting the QX for bit close, come maybe and year was it to So way to similar if QX, pretty lower, the

So on and be upside that the pipelines that's insignificant. would some not

way but see in that's plays that play they some if the downturns, to is in always haven't favorable can we baked comments, it and we things one were insignificant not that maybe that happens, good of earnings. items them company's out, there the for if out come ethane that Wouter out, correlated it it always and may way So,

all I had. that. you. That's Appreciate Thank

Thanks James.

James. Thanks

would for And at turn back speakers this time, any to I to further it like the comments.

today. us all for This joining is you Sarah, thank

Have follow-up, If be you please hesitate a have or any and reach don't out. any good questions well. day to

Ladies participating. thank and for gentlemen, you

You may now disconnect.