DCP Midstream (DCP) 5 Aug 212021 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the DCP Midstream Second Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mike Fullman, Director of Investor Relations. ahead. go Please

to Good second Shannon. being welcome the Web the to and are slides, Thank on available XXXX morning, earnings Midstream our phone on listening quarter encourage at is the call. DCP supporting I which dcpmidstream.com. you, site those and view Today's webcast call

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to improving performance. our is goal Our accountability demonstrate sustainability to

reports, our that, our quarter we to targets through always, with your And second turn the As results. our strategy go and over I'll feedback on forward. things to Sean welcome looking financial

our of Thanks $XXX from adjusted Wouter On DCF, which $XXX good hit generated of I’ll quarter quarter. EBITDA key second first X, Slide improvements and significant were We drivers performance. to and the million the million morning. strong

early our rebounded G&P which environment. G&P of and QX, the favorable storm QX were commodity impact XX% us the quarter, pipelines party from third recovery to Southern allowed Uri maximize in impact from up to increased quarter. XX% winter continued As the volumes and Hills the industry the benefited business volumes growing as of Hills strengthen in and through the across the ethane volumes Sand versus

QX second maintenance sustaining in we costs the expected, realized took higher As and work quarter. as place capital deferred from

to savings times from XXXX year which the increase posted timing XXXX saw and to While position quarter-over-quarter, our XXX to line of while times we capital increase us an quarter this associated managing of costs to and expect maintaining next finish the fully We with the XXXX, on in to programs. result and our our in X.X over finish impact the quarters slight was we will of the aggressively for as a a spend realized the we guidance. moving due pressures continue year. in hedging was collateral We capital, two working in the with committed business. XXX primarily leverage there inflationary normalize the to We're manage

like to our second I'd X, Slide outward. provide an to update moving Now on half

continue the after contract to the that in up January to move and see DJ expiration in into favorable the trending year. Eagle we indicators to half QX specifically the Permian We X% normalizing outlooks large volumes took producers account we quarter-over-quarter XXXX the Xst. We're for accelerate second the on seeing were as improved drilling G&P favorable of as year. close volume plans, in resulting Ford and effect

over Southern forecast In DCP volumes as the increased has to incremental the with Hills, Midcon continues and an job as of seeing On have steady third coming and to months. level ethane and team DJ basin. seeing Within working environment, as Sand two we're customers. the of commercial our of last the for are natural Southern out generate value party currently from logistics some incentivize we supply Hills as done utilization benefit well the to high prices this outstanding to Sand rates, our business, recovery growth we from continue our business, Hills customers rejection DCP's ethane gas

the to a As realized do nice of trading year. remains with has of higher stabilized This year, first back our favorable year, given tailwind And The equity year see over sustaining anticipate strong line there ethane increased the in year. continuing on recovery forward forward upper are the of expectations. volumes half than while the costs strong, prices Sand I'll our and commodities three capital our all we the will rest commodity at and over last the the the with potential outlook meet volume increased provide relatively with trends curve the upside for we tracking it well and curve full and Hills remains months seeing the With positioned we five financial unhedged are improve Wouter. in remains the half of positions. And to we with we'll end guidance. that, of assuming to first turn we're

Thanks Sean.

The deliver meet this us off positioned results XXXX on well team has to and close DCP Slide commitments. our to Let's X. continues strong

term to execution deliver our holders. business model unit value strategy long and for Our of diversified continue

stable XX% business, transformation to the months significant Over supply commodity removed million five our while permanently cash these build of of But of [loan] commodity generate of and cash during of retaining first XXXX. plus this sets based in excess upside. favorable we $XXX capacity favorable all logistics us six generated the earnings. and capital last the from strategy, we efficient our free This executed short years, environments. same year, generated the nearly all costs amount fee in well execution we’ve flow We as the flow generating company. almost of We

debt and our Our capital unchanged as sheet. remain committed we're absolute allocation our strengthening balance reducing priorities to

derive to the as has XXXX and look high deliver We'll us today With we're us the additional And confident of to enter and deliver the to that, accelerate ESG as into please improvement step our sustainability to sustainability We're taking will questions. take to imitators financial of guidance. and we as journey next Looking optimistic to front. your aggressive end we of look come. set well forward we targets which our the to forward, second positioned in for XXXX of Shannon, heading team continue build I seeing accomplishments our excited proud year decades We're DCP team the We’ve we're off. kick returning journey incredibly to the the DCP towards on step that unitholders. I'm momentum on. half favorable continue and in value change the very transition that

Thank you [Operator Instructions].

with Morgan. Tonet Our first Jeremy question from JP comes

there, for get so recovery mark said For of exactly and Hill And there the price you what kind to see unchanged there. if there, just what's quarter? strip, to baked want kind commodity up of the to higher. ethane Is And I used confirm deck well? out bit you that a Southern pricing guidance the as in might from last picking you in something to want just expectations helping volumes being

view more upside the of excited think half you But with holds have of to of baked the guidance. about we’ve of Jeremy. a we went in for better. if of the seen we've So we've some better second you're for the But right, done favorable the it's year, I'm high what in. be some and half of definitely it definitely the we current the slightly sort Obviously, that if what But year I thinking to gave. second that to remainder could we year, that. includes, end in half than QX, the the it and Uri price the have going year in baked look the more than that than uplift more price guidance you line includes than the strip, to what about covering, you have spot, think that the well, get current We in some you're where if the impacts. upside covering first take specifically deck, probably that

chain, clear, ethane fence, bit recovery On And this a I'll we want remind assuming we it's obviously, recovery little I Because of been time. the side a value you to third-party. sporadic be recovery, saw we've rejection the came the our in see in year into too, that We lot. of full didn't whole QX. one the is been

weed back we little in did early mode. into saw full So But the some projection a incentivize quarter, the people third-party, bit. We recovery. barrels been went some we've of control, -- on in you recovery

just been screaming. talked I think I about it, gas when has that

pushes rejection. would of into if kind probably the boats assuming economics That year. year, the by all that back and us. were upside we see people also for recovery their rejection rejection, that click way, the of of back on the remainder So be We for remainder rise, third-party the

our beyond above and way thought that that's things something into move then see outlook, good we to upside spot couple in. we've our continue obviously and what little awesome. stronger prices than of baked recovery what a as go -- So we could we as hold And

recovery So top the out guide spot ethane to laid upside the there. in and you as

up to a been bit there's hear. point, at especially commodity maybe have then it kind guess, of prices this the pivoting disciplined active. on is picking going leveraging great of if And we moving producers seems producer Maybe activity kind that's conversations with the into the kind up go here, down So more even publics, as just I there, more 'XX. of but growth, towards really are production privates

onion your the you your things with wondering see there? if trending and conversations you footprint could peel how little more a Just bit producer across

some With spot you're on. of producers, the big

lot we seeing continues. that's obviously some this So did there's and they Obviously, rigs, good a they've of the a but a thought the are they're we're that a discipline some the some that like way seeing, I environment year actually are pretty optimism, DJ the think increases, rig activity. and like not Because assume thing. the little. happening the of accelerated Permian in only areas growth been we cases we lot seeing

Wouter but there. half and think good we big that's the guys can the talk you not bit. for small year. are bodes around seeing definitely well the little a of seeing But more second I are a So driver, more that as of activity

strong going about and 'XX, really this discipline trying I nice for producers, think but depicts growth will at hearing. even on the I industry moment. keel think will pretty we're for based our seeing feel a outlook think and to and our think drive that I good volume exit we're we're it And what outlook continue that's we 'XX were to you what of that set, sort we As year like from

six would thought eight what significantly months have definitely we better So ago. or than

just us if And that change specifically quick When it I last could the given to legislative to as relates out pending efforts DCP. and a just lot US one could. there one, wondering but our of it CC relates picture,

could If what support right you policy specific there? bit initiatives about build more if comes pursued the a could be through

So maybe one. I'll that take

really So clean we about the think about core. CC I probably, is US that spoke

projects really is So modernizing kind probably you have things adjacent for asset of the already footprint, US those reliability going then and the And our us our sequestration a where we got the business CC we more to year We have to New of in already XX significant CCS and to doing carbon around in are that amount or the be Mexico Mexico doing around core are capture adjacent Colorado, that and to Southeast opportunities core. in additional we today. do Michigan.

I’m If can and And regime about way XXQs, find as a aggregation speed the state to time the both about, we hey, carbon. and well fairly a where as processing of plants levels thinking Class gas do how then you regulatory X think permitted at it, level, significant wells period. from kind you ball if federal think get sized in are a for points a reasonably I

business can returning amount carbon emissions where footprint. X good very, weighted and out of our average your would a of capital earn above there and a we significant You build very take of cost Scope

is There's already opportunity. doing that it's So team it. We're as diligently. looking something the quite lot a of at

of -- you're you in And where So an happen. in sitting familiar then that a little and how do things We it's you thinking how need expedient to there from can can you about expect have today. point-of-view, get some place with. that bipartisan will be permitting manner? can up the support they're get bit something kind XXQs that do going We to we're there's

the gets primacy would lot. and a X with Commission Railroad the that there wells Classic Hopefully, a help

your thoughts That there. thank helpful. very all for So was you

Gershuni from comes with UBS. question next Our Shneur

one on I to responses of questions your just to clarify guidance. the wanted prior

respect You volumes pricing. just well respect as of with cushion too? the said this you had have sort volumes strong were given extra there's to to some do quarter But [cushion] extra commodity how also with

very on that end happy and I have would potential we're cushion seeing is it's where with, full would look, back still pipes, well mean, it was good there. into up we Sand strong. recovery that going see I pipelines I utilization tell bode It's for the alluding Hills. -- upside the you, -- some capacity I potentially on the Shneur we're volumes and very is both but -- there come to

per there us, Is upside? my come commodity But bit potential in mostly think for written of we've The could think I stronger. things course, guys as I And have think of recovery. a company stays remarks, we always have what in the bigger screaming upside remainder that the is told year. the some some then I baked like an would big there's that growth, well. keep spots eye. thing the if little I be the but

I questions the Let just me that pivot to had.

if kind you guide end of with mode curious cash in Just do type generation. excess of excess of in up

of sort priorities labeled You've as your debt. reducing

the upgrades or so priority. a about forth, You and talked forth so Moody's the remain and those that in upgrades outlook

when capital other though they looking structure. structure of now curious putting you've But up. is at capital maturities you'd look your trading sort if come par, of I obviously, your kind to kind parts Just of above performance. debt off most your good But kind of right your curious as is that's like at be of been of as

of kind which at For due in of pretty high traded and between but that example, becomes notes coupons, sub discount kind the actually maturity junior expirations? you have focus

Sean, start then I'll Shneur, in and jump can you it well. as

this [spot to I think, is that company for mean, I balance up perfect term. the a that general, sheet. you're getting to very in long means the we the strong believe well set And on]. time

massive is somewhere free kind that's cost, reliability, management our good with to commodity So that an range like our have around talking in to we things XXXX. flow profile what you you very if And should are that, committed amount you a of of for to, think get of stay flexibility. we be excess I in And if how the as manage capital, we provides kind cash prices like by where X.X things leverage was the Sean they of this be. are X.X to And that And there's key the raise of a our there do amount be where kind going want a It's back tremendous from, we of after units, hey, buy is distribution, are number around to to for to talking anywhere right, are absolutely the that as preferreds is get us. of going really unitholders, we flexibility a can you're something the trading more that back well. that to premium to there way about, way ourselves at continued some end is flexibility. you're year. today

some little balance know, two are get get of but the perfect you there, in here credit right, the this we have is As moment. them we equity a key balance think significant bit things I run also short below But continuing which to sheet those the to takeaway together.

and very, metrics. to investment got pretty And XXXX beyond exciting. if flexibility today, sheet commodity get after very company stays grade strong will this balance in and you've type massive that's We that where of and massive, we with a like are

now your just panic now in just on hedges around you're enough, I that Uri, of kind kind on Looks And the right last hedging your you've kind you maybe the the you hedge kind given the some I where sort hedges like XX% this in added of that's think have And pivot, is that quarter point with need the on in you've to XX was putting been quarter. about is you're as Is be place. at and that versus looking of and just XX% of of so gas hedges, also side, on layering way now? basis especially issue from forth? been right adjusted at last

on that. So two things

up it things I mean, said you us ability, really better. when have those higher a than pretty given hedges, this are couple -- at 'XX. Shneur, price think run them I the First I significantly about prices so XX question, couldn't has think

said you're is if up everything -- thinking going mark hedge for outlooks going there to plus 'XX. to hedge, flow good you're far pricing we've a pretty next the a to around little the year. I do more there's pick think in just thus So bullish cash

cash go where locking think at about as hedged and and we in I So consistency I I advantages do in we not good we're be will really XXXX. good we at in and were 'XX. as mean, do feel taking think about we're in rates. But flows,

we probably probably moment. are we the need where like So will feel to we that at be

terms equity know. hedges So They prices Obviously, a Uri, spot they're yes prices And Uri by volatility volatility five question. the have about daily to any did will pose not was period you gas not day or problem. longer in that like around in be the all of duration. impacted and the like

well, we -- longer term the in a were so wasn't trend the the So in the those that added another obviously more winter. days. was answer have that performed hedges to -- product issue will selling some like way -- you by always if that we’ll to type we that that company question, in the position safeguard around be product we you And And had the better there. have have taken different approaches that we will see have

with Blum Michael from Wells comes question next Fargo. Our

on Just there me. wonder Hills next? your what's outlook for of level? volumes seeing the One, you're from And guess, I the what also, trend can us two give Midcontinent your the and you of if activity just sort I into quick specifically, rest view related, producer how year ones of Southern for here

impact. improvements we're seeing of but was by But lot bunch seeing -- year QX the Southern than far, where into obviously you of and showed Uri. a were Midcontinent the the massive talking we than Midcon we of line, is seeing better going growth hold positive affected that. Hills we're a not probably are I seeing that would are coming and so which kind There and what a into Michael, is are little have been, you -- if

the a come Southern little majority different that we Sand of do from in gas volumes sense control. or Hills Hills that is barrels than the the

so So, improved in outlook Southern good pretty far Hills’ QX.

just I going seeing And have that quite as improve outlook Midcontinent pretty is good stuff we by through DJ better think to QX Southern a roof. you're And is that the and we expect driven The Hills it in of in well. partially doing thought. is the terms than even some slightly would well. DJ QX more and feeding

like So And definitely Hills. good volumes the outlook Southern and the areas catching Midcontinent up. in on DJ

slightly I in thought. think, last then the than you We're definitely we and anticipated. Midcontinent a I seeing year call, said had things where would little Uri. on have what things started had catch we probably up the to slow better

it both off Second their to pick in question, I your a active, from about assets lately where pretty probably you some fit A&D perspective to to where the there assets I was you a might that it's wanted add? general want to Is you sense. market? on is you own divestitures, also portfolio active that today, anything Clearly, more looking like the midstream looks do want that? And companies see perspective, ask and do be, that's makes think like space, see anything you

right. You’re

You we're you are of assets in trying absolutely pretty house divestiture that little coming the hey to for type acquisition where table any very more on point-of-view. I'm consolidation? kind I things happy at the we to trade what that yet of think There From market are see looking we're point the not saying view, scale seeing where shape. transactions us. instance, definitely actively am are the seeing asset done seeing, producer a of same on where today. you're you’re people portfolio saying sitting also a an are side not for don't at that time, that from the more I of way bit no having here activity, the activity some broad

think I've times is a questions do is There some needs that your over I utilized as XX be colleagues’ And fully questions running not that to six, industry continues either. the any areas. your soon. don't I we're I months, very significant see overcapacity to various consolidate. important. being that So anytime whole multiple And in and projects and the continue last something midstream believe, to very, overcapacity pretty there answered

on that? is think us M&A earned going something more tremendously on harvesting into the which before, this the to big is I be you broader then I if that do DCP, industry, So get much that more from mature went you a see believe state clearly a said do obviously we right are, as I scale cycle [opine] cycles to I do has Are growth important. of that. consolidator. a into cannot you mature

base, think, reductions, M&A is performance, what cost, Scope you have around our execution goes. to our optimizing that greenhouse do our our gas about I of about we I asset I Scope not things take we'll X sustainability M&A like upping think and done if them. we But reliability and a that. spoke lowering the potentially, I it's X, how but it assets strategy where think an also see optimize believe know is our strategy,

from Dounis Credit comes question Suisse. with next Spiro Our Instructions] [Operator

we’re Wouter, propane. on strength question sustainable just on And seeing bit the that for that on in how Sean, gallon. curious market $X.XX the you hedge First curious, that is? a right little can define I'm a just you now? XXXX, think positioned

layer mentioned share your XXXX a sort you as in of closer that gravitates of that roughly maybe suggest you sort big XX% hedge to seems in to hedges, position you up is it position what 'XX? but propane the 'XX? from perspective Can to more hedge from price step in First,

Sean, are it look low. and compared In over around you're taking certainly average, right to Let start the year now me five propane, then obviously where inventory general and we're hand quickly sitting a Spiro. levels to

pretty close right going starting We are get summer the to things and the about now. end to good winter, into of feel

winter don't the of also December think And other things maybe going about November, Sean, house. side are hedging completely talk know you really in helpful where kicking today. quite in, but start the you can then get then I we that direction you're quickly, if

I terms -- propane was obviously Spiro, 'XX, think constructive. So of in

you for we think since opportunities the 'XX, in were about been do to then. able have stuff been So Obviously, -- if hedges biggest some 'XX we've gas.

of still those of that. We up the one As chunk types 'XX, have been think than constructive pretty but XX% and on no side. of about a hedges more the fifth make for would on and likely NGLs propane have crude hedged you books or probably NGL, we're NGL about

of a amount as So we there's upside still think fair 'XX. propane about

XX% about mark, is I Your right. think

on number your right if I now gave XX% we probably we give XX% hedge. out where that's on would XXXX, think we'd for a or

As you 'XX, XX%. think we're to about closer

still we've get if the left end the is some barrel of hedges lot run. on heavier of to on to some those hedges we're propane room of delta. about of But because leaving able of on. been Obviously, So been bullish, to that's But comments alluding that to some earlier that open, get able my lot as was XX% propane. -- well. still a room position little We've a a

and I’ll it. just can make you provide if sure

$X.XX for hedge can XXXX number now? Just in where Is gallon hedged that and you’re there try provide of for a right compare kind you propane. XXXX similar position

we yes, specifically, propane For [Multiple Speakers]…

I like obviously just from out Is on or team recover make take don't make that function at it’s quantify to a decision lowering earnings been hard perspective? get to suspect is, then time. you able scenario, understand full an a sounds of reject, upside from ever more more each more recovery. And guess, there the And could to commercial grab recovery I you what it the the to incent all to would working of kind ability simply what really stream than But peer. have ethane, have tariff it to that. the economic? if complicated mean downstream of you that more what

is frac gas to happened NGL things. been The people know because incentivizing is positive But I has recovery. so conducive couple So is, big news spread hasn't rate. a lever you're the that's the the ethane. lowering run spread, gas good obviously, running more by the to than is The as frac

That's the get if the know the ever pipeline the if a number, for company, benefit full can stout of of we've stream. very tens for tell of into the of value money we it's having millions given but don't terms chunks dollars make having value upside stream, a be can of I remainder recovery. year various in Spiro, to In able the I of to you the getting

for of So tens to remainder were if the millions of of us for be could the year. upside we of it couple go recovery into full

Tristan next [Operator Richardson Instructions] from Securities. comes question Truist Our with

comments into Just on out looking appreciate you're all what near-term even seeing and XXXX. the

of handle. I'm a some thinking balances achieved maybe just kind targets, three once bit getting medium at term, those about CapEx. thinking the Just term of you've longer

'XX there. [niche] You've DCP thinking the there’s about further, an But noted in we potential opportunities guess you'd some there sheet business capital that of have commodity thinking on calls and cetera, cycles. here earnings project everything opportunities Does past out go and I beyond, there balance it kind longer or and as just out you're are et engine commodity needs downstream the or to sustain keep where like cycles perspective exactly from and it, expanding about term? multiple of

and thing first the what's sheet cycles balance to is business as get commodity think fortified. important through I most go commodity that a foremost,

all which thing. the balance to we comfortable internally, most the distribution. running And flow prolonged running is is and get But we're we're of are, walls. free to model different are generate of and that obviously -- if cash okay, excess where to pay say, kind of a So decks look great, lot obviously, environment, commodity a the through low and company, having great answers of that, to, the running sheet the into I get we at continuing downside continuing a yes, those

the XX ours seen fairly answer we that this you cycles industry the and years highly. was Unfortunately, last many often. including because over no, have think If industry about fairly the companies, leveraged plus for was

things foremost, that is got to flexibility. important enormous and that us, absolutely, the for because you So after getting first most

kind If about, I different you hey, that made to think have, what puzzle of a over we've business you tremendous the like model would improvement pieces decade. to of the talk last the are

about like do as business, absolute, a and more XX% we of yes. at. is to kind that have and The commodity vertically is be that? believe, of to I business years, company. having it, wellhead we were looking think now gathering the integrated we much more a next important, you to of If plus team, for you're processing massively management water where exposed, term answer call we're going the believe But as that plus type XX longer would

So is the could more good yes. probably improvement be done, answer we there. make But that

around So to at continue and those are are that. we opportunities things there that look say,

models sheet of It's is other that time a it's piece the where like definitely great that then you make be something I think But we really other that believe you looking strong. there return have investment some business can And at the pursuing. some spending on. Short really, we're we're balance CCS and so will get a question. lot yes, a around opportunities answer,

have We line to sight that. of

can see move you and flexibility the what downstream. massive business have further do you Now to

Capital U.S. question with Our James next is Carreker Advisors.

it working any Is in relating capital reversing? you disputes the Just that tie XXXX? on wondering the to year-to-date of drag some you Uri, confidence that and related can of see if of that some that to up expound and to any

Yes, some of year. off bit run temporary is do does requirements been collateral hedges but requirement by 'XX, strong, 'XX particular collateral some give collateral end the Obviously, industry. are DCP on put little that have hedges. a there the in good ups the you it company. we those The that’s of I'll of for rolls and But clarity. since 'XX movement price and for requirements things in on price XX% so place the

strong. that environment. be of assuming XX% improving really So that's obviously will prices realized and we’ll because those mentioned But yes, hand. that I and And gone that out again, we do XX% our Uri, have pretty a on hedges see strong stay one improve realized that QX in that. we've coming of done been about able job out in We've right of then on collections of to Uri, good pretty

of over to But to revenues the up some longer we'll time. we we Uri were -- it get another between be we think thinking improving have the of some Uri, the There maybe little that and a the obviously, carryover disputes situation capital to of those But going term. definitely Those not the booked. And But a right. some driver. big are those but disputes we've end loop get significantly time the I the and could roughly million But confident I the since bit working in into since of on in end by see litigated QX. now since keep that you're up picked are I XX those you about year, of XXXX. held think still outstanding, helps the I think very we himself of think get probably some year.

I a million. your been just around clarification maybe I think Then guess, usage capital working $XXX year-to-date has

item capital? not there Uri, or big of of set any that's it's is the items if use driving So

collateral the on It's is driver capital. on the working biggest the that hedges

$XXX guess, and thought about $XXX separately I million capital million. I then I But that working the collateral about is saw is

heavy was This So period some normal timing. got a payout company. you've for the

just collateral hedges that's are collections. and Uri temporary the I call, big, the going going would So But to the the and drivers be to normally. happen

see? of the fracs If three. construction two of opportunities I your you parents follow-up at announced around those I for resumption Sweeney, back And of now on in Does resumption ownership the know one that your any frac of balance some I think that you shape, as that one and for table? that better potential with option bring is fracs previously I saw of more, can guys and had

last and massive we time of two exercise to COVID We during know, that. XX as kind for and Well, ownership half five use the Phillips year option obviously not and fracs fairly at three alluded well, to. you

some We haven't table said, moment? earlier at our Could any conversations Again, back sheet getting I focus is we come around balance since. real the the and had right. that As to makes And know where probably know if could it come now. back just well. there's something or Phillips us it fairly we sense right fairly well, they keep XX and that is

say conversations would it. no there's active I around So

with Our Lee next question from Christopher comes Securities. Mizuho

for far your kind also have how of they I the of DJ producers. impacts on that I’m as wondering the DJ? thoughts Basin, I the that the wondering capabilities. was know the consolidation just outlook is, some just midstream And kind in as

impact of for an think not big that us. I it's

If are you coming that about it, companies together. think three the

At combined, be one will they we So time, they're same all in our customers. smaller shapes with or the them. even of customer various ways, forms, relationships have overall

cost as those drill And they so still are do DJ can there's of life see come same all producers direct that over their time, or lease but Basins, of are acreage. they At contracts corporate that when other G&A to dollars they and we to up kind the out, on the the of where a So the they larger good we of when some bit. effort, add focus them. it customers main together, in thing focuses there more of their have to having we're functions, dedicated

allowed, really business else. say, there that's issue. somewhere can So Contractually, it then stuff take someone hey, midstream not acreage off not they that not is competitive themselves, a is If has direct possible. we that small and of

So net-net, I us. look at for small probably it a a as positive

the expenditures chunk as that more just then QX, cost far some timing rest kind you're of mostly as at was the deferred cadence Should costs from the for And year. we expect [Multiple end or of Speakers]…

had Chris, that there's But very, low. definitely run QX still far very some QX. are year the very, just than Obviously, this up. so higher rates we've was catch

of recall big the par in you back still it to some said of set capital. we're a progress and also our that. was some you'll to half continue we on we hold news year, catch sustaining that'll through in really But second up event, see of of good on. dollars still that on going the were back may is, Uri confident XXX we there is when gave up base we catch XXXX mode. the were that. And impact and about to And and our So out plus we million cost all took feel guidance,

currently call remarks. I'm at the back time. I Fullman questions showing turn like And to you. over this Thank for Mike no closing

all for us joining you Thank today.

questions, a feel give And and free with any out have that, call. other me a day. you to good reach follow-up have If

conference This participating. Thank concludes you for call. today's

disconnect. now may You