OKE - Earnings call transcript Q1 2019

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Operator

Good day and welcome to the First Quarter 2019 ONEOK Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Andrew Ziola. Please go ahead, sir.

Andrew Ziola

Thank you, Todd and good morning and welcome to ONEOK's first quarter 2019 earnings conference call. webcast a being made will is available. call live replay and be This remarks, to be our we'll After prepared available take questions. your expectations that the by reminder of might considered statements during statements or and ONEOK's forward-looking this be predictions of are Safe Securities Harbor A XXXX. and should Acts call made the include covered that XXXX provision Actual results forward-looking in statements. could differ projected materially from those

factors differ, filings. of discussion that please to a actual to could For results SEC refer our cause

Spencer, Terry President Chief first speaker is Our morning Terry? Officer. and this Executive

Terry Spencer

Thanks today. morning and joining Andrew. thank Good you for all us

and As always, we investment appreciate in your continued interest ONEOK.

call budget. our to over predict first Joining then our available program a improving Planning progressing expected start, Hulse, track Crude the see Kelley, Chief and since brief operations to Gas. are Sheridan an backdrop across remain to answer well on continued our ability is Chief Vice on prices remains To Executive highlights. Financial January. our active growth Strategic and call Natural I'll industry Affairs; make and President, Walt week. Burdick, your Natural Chuck Kevin questions Vice and me turn to and and we've is strengthened, quarter Project producers Senior Gas improving Liquids; financial construction every capital to have Corporate very Vice Senior on and Swords, discuss today's Also Officer, with President, President, Officer. dates Walt Vice few President Executive Operating comments completion

gas NGL the and the pipeline we're for a by progress on expected we which and producer in quarter more Dakota that announced is MB-X complete previously quarter February. be mind, historically it in customers. of Arbuckle first of to processing and low XXXX midpoint spending only are doing an accelerating To NGL ability North dollars we of connect earnings connecting we our in change, end the third to $X.X some the recognize fourth complete now new our today, the extent Elk party guidance would the potential week, natural above market the complete has the an transportation transportation Last services the billion, Creek of the the into early planned guidance no plant. in was to our Bakken and assuming may Based activity on projects. we area a ONEOK II during we and on them. Bakken into pipeline less the options. in-service extension the of in pipeline and takeaway for construction are these be Williams plant, in NGL our so, dates service, with were to We're The the that looks capital XXXX placed of enhancing the in dramatic projects be limited providing it provide than begins not And and Keep County, had reaching earlier are section entire additional to of ending are XXXX. at likely quarter. completed third earlier fractionator be expect this year to year projects As pipeline range southern

continues team commercial our Coast. potential the Additionally, facility to Gulf a NGL export evaluate on

year details evolve continues about opportunity on as nearing than After to of several taking we are As our capital we further and of develop, completion growth them. a this more will projects, appropriate. provide

flow with that, our over the add earnings for fractionation it critical results. NGL will growth. gas Walt call and turn fee-based substantial most, I coming capacity on With our the takeaway, months, and these for cash comments processing the natural need ONEOK customers to where Over projects they first providing will quarter long-term

Walt Hulse

more million business per $XXX $XXX recorded totaled All income EBITDA three share, year-over-year net year-over-year. a first EBITDA XX% million, XXXX first growth healthy million, XXXX compared was increase the a XX% totaled $XXX the increase coverage more but quarter dividend with first or the than quarter from first segments and adjusted XX% X.XX quarter than cash first ONEOK's flow XXXX. adjusted $X.XX XXXX double-digit times. Terry. with you, quarter Distributable quarter Thank a of in

$XXX first generating continued We the cash business, quarter in the dividends XXXX. reinvest flow in distributable in to paid than more million of excess of

per we dividend quarter, per to is April, $X.XX During announced a April increase shareholders annualized the basis. XX share on on May of and first The share on payable or an record to $X.XX dividend paid we $X.XXX share of per in an XX.

to term Our basis, on XX loan X.X an with run the trailing facility available million available our ended liquidity $X.XX times March of month borrowing on We available $XXX billion basis. on agreement. our X.X on EBITDA, unsecured and a including capacity quarter annualized billion, was credit rate debt of first XX, times three-year $X.X and total

the has the quarter some since completed of As could largest quarter the fourth on we've industry strengthened as construction Terry specified. mentioned, in our environment be projects and early

of these look XXXX. now with turn the performance. closer balance the strong sheet our needs and a which operating cash to timing and financial our projects, for no call equity over I'll line financing ramp in underscore for XXXX expected sight expectation continues Kevin combined clear have We our flexibility, of to at or flows to on

Kevin Burdick

to Walt. most attributable the on Rocky basin. the feed of throughput Bakken volume NGL the from first Lake I, volume feet in volumes X volumes raw service increasing you, our is day North averaged continued projects. in to through natural quarter, of of railed flared being gas begins processed providing billion pipeline barrels few more in with growth Natural clear Dakota quarter region, it day the the gas operating day natural related to per Mountain highlights backlog acreage, our estimate per Starting Demicks currently on ONEOK's a in touch region and of walk the increased NGL Rockies XXX,XXX on I'll to cubic see first than the this year. this as operations Thank fill more million XXX being in and each January. when fourth with quarter feet of more a than activity producer gas we to during cubic strong per record production areas We

natural Creek expect continued ethane not We of are barrels to flared a first approximately of of to per come II, gas strong recovery. when Each which including to provide plants, online expected XXXX. production of additional full, Lake expected these Pipeline, XX,XXX our Elk NGLs and ramp quarter Demicks provide volume to in day the for is quick

day of targeted XXXX with first XXX,XXX beyond. and Elk six throughout We quarter continue of volumes will in the to four expect multiple increasing At Elk barrels volumes approximately EBITDA per operation. of times be XXX,XXX Creek to its adjusted months its to day, reach within first Creek generating per barrels XXXX few of

continue we If the day with XXX,XXX plants dedicated up Williston gas produce the continues barrel, processing where our in on prices natural than XXX,XXX reported. previously day move Basin Basin see Mountain to than completed acreage. have of crude basin our Powder River natural this processing up per now rigs addition, more Feedback have could to on contracts capacity capacity barrels XX NGLs, around $XX to and producers also that XX rigs gas NGL region we with dedicated $XX remains once operating secured we are approximately in rigs Rocky rigs can per year. into positive, from The from more sustain NGL In barrels takeaway per to XX acreage. the average additional

track we've period delayed the throughput our to XX% decline last quarter expansions feed gathered pipeline contributed gas we're in needed on increased volumes the XXXX in natural Mid-Continent in NGL pipeline total the customers. raw volumes natural of on of XXX,XXX recent the compared fourth and compared weather natural quarter relative completion by completions This Mid-Continent, the Moving the areas, In acreage first first with to quarter XXX,XXX and region well line some the remains pipelines guidance of in have Volumes the increased onto takeaway constraints due first on the XXXX. year. II barrels per in of the Arbuckle Mid-Continent gas the quarter fourth winter the our These been increase gas is our as STACK in half processed range. impact for quarter decreased in quarter first X% first alleviate able was our XXXX. be processing the areas contracted to SCOOP impacts in primarily with expectations on winter XXXX the with barrels Construction our we Permian XXXX. weather to on pipeline day day both and the XXXX, in and short-term Arbuckle provide the in only quarter XXXX same segment, and In our pipeline these several within completions timing in quarter capacity volume Basin. in activity compared now Producer with for with capacity volume first to segment, driven project strategic much and helped previously. and approximately of contracted XXXX the second our per track gathering of II is compared

including our driven Now, volume Gulf XXXX, and in ramp a fourth operations, LPG completed with X% compared volumes West our this raw taking pipeline Coast a region Basin. in throughput feed Basin primarily increased the volumes Permian extension system, our closer the Texas Delaware increased look at NGL on from quarter into by

average utilized. approximately continue our lower as first associated on Coast upward. is pipeline replacing volume, driven Permian higher bundled barrels, of volumes will this expect historically approximately them $X.XX and been by per Texas the given in to barrels NGL higher Volume primarily NGL system-wide fractionation to XXX,XXX an or fractionation margin, the capacity capacity only and quarter with service per is volumes ONEOK's roll current our are remains transportation transport off, being this with cause product we rate fee rate but LPG. rate margin gallon XXXX. and The which Additionally, transportation this on average Gulf has day, XX% fractionation increased legacy average West volumes composition increased we volumes trending

look the continue completed per full efficiently to and several and at debottlenecking our to XX,XXX XXXX of projects We my are to be concludes early us to capacity. barrel costs fractionator, projects which XX,XXX bridge first fractionation lower barrels expected exit XXXX help capacity Terry, remarks. add could at completion new early MB-X expect than of will XXX,XXX provide de-bottlenecking XXXX per we substantially quarter day that in These capacity that construction. to XXXX day at

Terry Spencer

assets existing Kevin. be to The months. infrastructure several coming ones We'll new remain miles of credit you, a provide forward to great facilities had who XXXX of We've scale service later and getting of projects to in and which next, into dramatically goes the extremely safely are operations operating looking these this a employees building and the pipeline and and line much into responsibly. needed number and hundreds putting the our focused on start Thank increase customers. will our our to finish and for services of our year

Our operator, on questions. impact focusing on safety for to for employees With to ready our value sustainable our the day for our make want business that, investors. work providing our more term, thanks enhance and the Again, we're to and environment my solutions all express limiting even to of reliability, I to these and employees. now while customers, every long ONEOK provide to all

Operator

Barclays. take from of Instructions] Cho [Operator We'll first our question Christine

Christine Cho

Bakken off start with the NGL to wanted the line. lateral to I

to of think different going the why NGL other some you connected the contract to options have takeaway provide along idea guess it's and you're they pipeline you other capacity been other you? I their us line? is with opportunities than what Can the is. even guys plants Can to give color what's disclosed you more of us solutions. on Also my the those haven't came that you processing the processor it, finally though on much connecting an have

Sheridan Swords

this Sheridan. Christine, is

existing as XXX,XXX for seeing there pipeline a I nets back that the barrels by think the our lateral once than net over line there. over NGL could this alternative approximately in see probably the as we move them we today in are get customers day day. up the area line other per plants that the in Elk greater takeaway people grow XX,XXX near going that a We day, goes that Creek are to in barrels going in as But that capacity. need they are and we outlets barrels area that processing putting XX,XXX and expand the that a area future. talk a limited producing barrels that to continue in are they a you are XX,XXX as to their route, up existing could correct, much day And extra

Christine Cho

negative. with pressuring prices moving also in out, sort are of I just the Conway rejecting we think remains the ethane ethane over think the and ethane Permian event And plants coming processing third-party ethane. frac Should to that's then ethane spread that

less there's up supply So for showing Conway you at of ethane optimize. to

should and about think that? Just some how we color

Sheridan Swords

think I you're right.

couple As in a new can sitting system. There plants you reject bring quarter. today, plants has the out in long as ethane not rejection to there as little – grow every Conway bit of will you about ethane, can't every second same may some on we that our It remember, not ethane naturally But amount today. which plant ethane. come all anyway keep you is have on have the the reject

in we'll going time what in rejection. ethane we is stay think forward Conway stand when I to going So we today we're a what think if seeing see

Kevin Burdick

Kevin. amount the as of And for ethane the in Christine back got XXXX also more it's significant you've on half well. of I demand coming mean

So to pull ethane that's that's to be, going more out going also.

Christine Cho

And give an can utilization idea for you Sterling I II of, and on the like quarter? us the

Terry Spencer

III really those we move operate total We and under XX% the for a around little of bit the they we're expansion altogether and just finished system. Sterling pipelines

Christine Cho

partner who for question think on to And us would on project the then yes or volumes, export it? make last can that take sure, remind would just might any about me, I someone LPG be bring guys the you wanted you

Kevin Burdick

working have a others it that, as of Kevin. think alternatives lot with the a LPGs exploring the with about but out on could through markets, might what scenario that that Yes Well, you different a of working ethane approach, especially Christine this sides. like. still details might we're yeah, be think that what but well play And could would is we're working I we're both and as look

Christine Cho

LPG ethane When you sorry mean and say both I'm sides do you ethane?

Kevin Burdick

Yes.

Operator

our next We’ll Blum of Michael take from question Fargo. Wells

Michael Blum

of of and in one, Two decline some the recent shows out Bakken questions data months. of coming a couple last from me production the government the

terms So any in in of overall seeing trends trends I production wondering if Bakken? you you're comment terms of just the in

Kevin Burdick

is I in a this set a January. Michael, perspective from Kevin. mean record we gas Well

procedure not February, you had pulled time this always but which weather, a of sign a So standard that's operating good back a quite of bit abnormal, little necessarily bit production of is, that kind there’s feedback then G&P processors couple the we're other not some there, year. results from of only a from incredibly There is have our the up the but getting calls customers, strong. already been been

keep of So we seem of volumes stronger. and getting don't rigs to see results any pullback the

Michael Blum

would about market was The second some players question just that I'm very you keep to markets. well to expectations talk potential this the dynamics you that the I and I LPG down aware competitive rates you're big of keeping export project. their of one competition publicly in if had of have. the is sure return out talking wondering out on was basically

talk the of would what a for returns project Thanks. could look like So like kind competitive about just I was this. you and if wondering dynamics

Sheridan Swords

seeing ethane there competitive be the the get very It out on very a be need that to we incite and and see to strategic would able and into out. are LPG our more that be would side if to move it's a we we we come market LPG to Michael, product able clear ethane.

some doubt No that the economics it's just but more bigger if seen go economics. would it's the compressed play think route we straight projects, and a So we would that of a do. long-term we be than we've look on recent would

Kevin Burdick

Michael, think, I this is So Kevin.

said merits. on project and its own will continue project - the we to we've think will I stand that maintain the

is key there the but competitive Sheridan out obviously, as look that for very the So it's a landscape project. economics will at right be we

Operator

question Jeremy next our Tonet take We’ll of from JPMorgan.

Jeremy Tonet

here. accomplish? just like backwards wanted going be opposed be the anything the to to Just enabled wanted able since on to as timeframe how we last added and if of to that seem It forward was and pulling quarter the side, pulling with to forward were wondering I’m seems touch what you kind project Elk was Creek so pull pipeline what contracting

Terry Spencer

contracting. with We'll the start

we region believe in of I ultimately remarks were contracted a will that barrels Creek. XXX,XXX we As my out said Rockies the now Elk day that hit

teams As as We've forward. gone through been the jumped, made we've But third early very construction southern move the great just job that southern done and we starting tough got and track wet section going winter of the the stages project weather our section, a and executing the in and they've as for to early the through about great weather complete on very even has comfortable open think first the with project quarter. and we spring. some can that be be some now still it's team in

So executing far acquisition to the team and of job relates pipe getting in by just a our the so away it great ground. write as project

Jeremy Tonet

at step bit the versus XQ have XQ for of the down looking And had. some Mid-Con you looks volumes things a little

Just how any that balance within producer things there for band been of of are far change year. you of of levels Has communications you trending wondering as activity the the the what over kind see kind as expect? their

Chuck Kelley

of this consistent connects plan of to with our Jeremy, our are we say start guidance. the acreage a within the is our guidance with and volumes I'd rigs good Chuck. operating. XX got were number with well On and Mid-Con the year band

the So later acreage good some and end Mid-Con see of year of on rigs QX the with moving of our QX. numbers movement in actually we talking feel our balance about in SCOOP the the we producers of to in end of the year some

overall, we're guidance on the with for just think one our pace So I year.

Operator

Chris We’ll question Sighinolfi take Jefferies. next of our from

Chris Sighinolfi

Walt, that quarter Was growth. your this pace had about follow following sure discussion discussion not up featured. and the for we the of the the just rate am I dividend noticed X% last call Terry today. presentations just, if to time you I've this to in previously subsequent discussed on on that that your you wanted for but Thanks or XX%

no year. longer a obviously, over has is the step last that the unless peers in up decelerated subsequent You the quarters two of range pace there below growth later

seen I'm point? not what just advocating figure for to you I’m range guys just at I'm saying something out particular thinking what So optimal this or trying we've to interpret how a there's are that and

Walt Hulse

shortly We Well, hadn't as that. anything into guidance far and been that established the guidance wouldn't I clear changed. on the read as that consolidation omission We've it transaction. after

in place. it's So

read So into wouldn't I anything that.

Board the balance performing consideration to that we the earlier thinks forward. be will the that growth think thinks extremely they projects is expectations of as and going well develop, company. the these continue about dividend online cash I there. opportunities go particularly as year forward, tremendous will for into a just think policy take and the going the continuing see flow our the exceed about we I we cash is free we into think important key guidance But so it growth coming the as fact the they most dividend consideration about and out, Business we into look I policy as flow got obviously take really to its our generation the with that thing

Chris Sighinolfi

about? The X% a view is to XX% baseline around still that you're the view talking

Walt Hulse

there, that guidance Absolutely is still so.

Chris Sighinolfi

out where year, curious Sheridan. wondering decision, and ethane later just come today? be guess on the the maybe Northern Border heat this I might previously that Kevin of lot a but dynamics and a or had then look content year set an rejection in And fact I'm how shake the that, Bakken pertains to economic one. We next to about not we processing it operational as for into but maybe chatted up just for

Kevin Burdick

touch push still Northern X high content border all more trend that's is Crestwood's that and - you're in and and this and closely watching continue at has X content and its now into more that stay those rejection the yes, very in ethane and Demicks as watch you with to capacity you we're making Yes, right think with target being something we plant all of that about think right, you're way basin clearly gas about the there the pushing Kevin Border, and if very expansion BTU Demicks the you Northern bottom Border, will BTU residue the closely. and and them

up As we've there to does have ability, as the said, recover the of processors rest we ethane. the

get we've we to capacity Elk have to Now, the we Creek But to got and before service, market out border once as do would have need then start nice to option, Creek downstream seeing able first content that. industry, the in service on we have that's we if lower a impacts. an BTU be we

Chris Sighinolfi

you. why of kind have And

Just dock. on export earlier about Michael's follow-up a the question

I think to have said you that own. its project on the would stand

into pricing guys are maybe Michael we about have through anything about their in access being return terms while about sub-optimal that getting capacity, getting made for talked or of you referenced a So to a there you returns market. up on or that. that shouldn't aggressively think that space like talking expansions later

Walt Hulse

obviously, Yes, or think way is it about project, to that some that extent you're space time spot dock I about going excess of we’re But see competition docs, for this where margins. project that move competition mean these capacity the our longer dock pressure could think but there as investments making contracting dock, you're thinking the on barrels the other we a relative see going have will returns to that dock. have on to wouldn't be it I periods to that it we sure have term, if the of have We strategic we solid barrels. itself, better to even to it's without clear that we about for clear even ability long-term us, would it ability

time of we're capabilities. value looking add a Kevin and but we suite would all as at capability investing that project our a that a our to and are it's So, in existing certainly again options indicated, lot it's of

Operator

Michael next our Lapides take of will from Goldman We Sachs. question

Michael Lapides

a have I couple of them. Actually

would kind the market do capability with you your think thought of timeline all, expansion and potentially staggered implement or you you of while pumps. a leaps? II the warrants the just you when How First either and like bigger it Elk about about Arbuckle would thinking that for for at are Creek

Sheridan Swords

our to obviously That when Sheridan, we're XXX,XXX get is really starting up barrels to is on mind it put contract This in. is we a day.

We there's have Creek couple a on intermediate you way Elk the it, of here definitely and there on couple we capacity, we day to this steps ability and barrel pumps to you in go a of reach in have do get go incremental can to put in pumps a that all so as stagger we but the don't the can XXX,XXX stages $XXX,XXX, just mark.

We are definitely customers' to means. that issue have looking into because by up we make that capacity want meet delayed get there any at are when the pipeline by pumps sure don't the anyway we to to needs expand an want where we the and

Kevin Burdick

of we've if ability the back to some Chris' BTU And to make Creek, got volumes if the want pull talk is add to question spec Elk that we and really ethane that. also about thing the board our that to on do issues report available think have the they ethane that I we we we the This be because to don't would content and assume on and Kevin, we about in out that. need volumes extracted, any contracted we sure we plus on or some able capacity issues so CX to have capacity downstream the do only capacity as being that

we thoughts well. that So capacity factor into on as expansions our

Michael Lapides

that for that to little projects when think fracs. adding about and capacity Can debottlenecking completed? you with you incremental think bit much you you're the a you how then get talk And on

Sheridan Swords

we what XX,XXX at can to we think said, of additional, day That's we we XX,XXX barrels get. were a

XXXX. expect will some XX-ish balance XXXX the get in You early maybe see with and to we of that probably XX that in will

Michael Lapides

margin, of then to And the just it Gulf the are you about to continuing to comment about about you've Are talking the the that you should kind meaning from just Mid-Con. more How you that talking that? the kind about Coast, how higher could to think getting going little do frame higher. the much about Texas, creep rates creep? on made gradual slow want the rates want and a investors moving West How in think kind bit? you're we of of last $X.XX, and you Permian to importantly of thing, about I closer talked $X.XX in

Sheridan Swords

What I it's is on would contracted come gradual, It’s say be up. have They that obviously Sheridan is slow Texas again. volumes say coming expansion and to pipeline going when it's, West we the wouldn't that be contracted contracted those average and and almost will legacy I we next volume space well. And on. a rate we on at other when some will our obviously twice then volume we come pipelines losing as that as comes know that be as that have

the rate So the West big there's two is, One of we that leaps able market expansion that will rate think were I complete completed at it see up. volume we be in off when second going will we the volumes we've Texas to the and replace not other below-market at comes rate. are and and without and pipelines their there out when of contracted one

Operator

Dennis question Coleman next We'll take America. from our of of Bank

Dennis Coleman

wonder a I question. little if if guess, might I bit more strategic I ask

enter market. that's export currency up being with come particularly some you M&A with M&A topic that bit You attractive how side and your a the of you and M&A as that? is quite How the the think has on the some in producer been market, about do talk the weeks for producer about docks activity. and recent just it

Terry Spencer

M&A. returns, course transact organic far to ability, meant exotic when as the quite tremendous a low-risk relative there bit. say challenge the of we that opportunity it projects you or is effect well, much M&A set about the has as market strategic The is about Yes, think heavy think more goes, the this company

opportunity remain we So focused we that this on growth set have. organic

for we us build we with have investment we think have makes their do, the accretion we we'll rationalize to do these have ready and purely seems us a transactions just own away of transaction. candidly, that bankers an these with focused accretion, look look stay deal any M&A but think to we and at basins So infrastructure it's you at look what associated that DCF some great, in where on coming risk blow whenever these I ideas we'll look, unit about, difficult on to this basis, know we positions. to projects sense, that’s so mean, just it on when in organic per these what you

you? we organic and stay the side. focused continue help that's to So Does on you heavily execute why it

Operator

We'll take Sunil our next Capital. question Sibal of Seaport from

Sunil Sibal

XXX,XXX out that the of of things, volumes kind questions Permian NGL of starting contracted over on like, X XXX,XXX – barrels day pipeline rolling on we years? think next to me, should Couple about from the seems to side how X X, of per

Terry Spencer

you think over be of be to I that you'd think moving. on I close day XXX,XXX, the barrels couple a over next yeah pipeline XXX,XXX will years

approaching, You moving the that's already barrels, on today pipeline. XXX,XXX

I be years, So next couple easily. of we over XXX,XXX think, will

Sunil Sibal

legacy one, that was that I pipeline, rolling the some contracts three trying get have kind should how two, Actually color those been over next to of in on contracts you the on years?

Kevin Burdick

I them in of come think that off off most will see will we coming off XXXX. come

Sunil Sibal

on the about it of the you side year? of CapEx that we this spent million $XXX of quarter, cadence over side should to remainder things. Seems then the CapEx growth And think like the on close how

Terry Spencer

far guidance can first towards timing the we our we're that dollars. to see a natural that but quarter. four If as is some as flow you literally the second capital above the about so might the you purely be, we are kind be vice play a as see you or doing everything as versa. spent the We're shift get big and heavy as continue into we, through from the of it year. projects through little Yes what XXXX could mean the the these that it project end third that, off bit a tapers out again. think we projects, as just would of we has would and I We’ll from when It's Every construction at of went perspective, $XX would construction change just timing the how a we the accelerate end go in especially quarter. heavy

Sunil Sibal

rate. so, annual X% over just policy the just been about thought of Is rate dividend on just to your on policy, XX% XX% next that year then an basis or And on about XXXX? spend, every through of a manage X% three we any clarification there the kind should kind CapEx thinking to think or the I years growth average think has previously to

Terry Spencer

support is Board to up it our given you of we continue Board to basis. And is strengthen, a to our we'll take but growth our support the growth. fundamental have I and strong quarter-by-quarter our But it, continues adjusted plenty earnings going let earnings at on business guidance. the dividend look of have we not what So to to guidance dividend would us tell the that

Operator

We'll take of our next question from Jean Bernstein. Salisbury

Jean Salisbury

in What for would kind overall a interested be that if bad the the else Basin can sides the what it see I good or turnaround your of Bakken, is view from pursued of both impact?

Kevin Burdick

this Well, Kevin. I think, is

right. I addition. think be there's constrained clearly anytime don't takeaway We want to

And customers so to for looking for ensure our the we're that up have there. ways always we takeaway

a couple in involve look at will that you of And ways. residue different so

required would down volume of the ways come be include And a the residue, recovering which that ethane. think it have and commitments would that would handling also of alternatives, might make handle rate, project type of what other the type to to of to some type of like so, term, work residue what that versus what by I basin

So I think that's still under.

we’ll Basin want be don't drill. the We having. be able that, look thinking be to to the it but and through clearly want producer standpoint, As to to from through constrained we them takeaway we continue

Jean Salisbury

overbuild by fractionation concern protected? Belvieu perhaps a some investors much or couple how pay the of of fractionation otherwise years, or over is there's Mont your take then And of next

Terry Spencer

but Most not the down in not today as to couple coming the but we fracking rounds Coast But think. Gulf Belvieu that piece, say and that and last economics. has supported scenario I full that five were what to being always the built take that on seeing Conway the the that What I'm to have they Mont collect position option additional Mid-Continent pay pay on. limited market moving wouldn't under we're and in the take of would we the spread with coming very these don't barrels what's as on or new and or our fractionation take four is Belvieu stuff full, anticipated I

remember But to raw think players a of may be I beaten they a there storing fractionation have once they are in that and And the also lot these are Now, up long the of short-term bit that market. fracs little will overcapacity term building off quickly. today pretty feed on. that frac come

So coming that's it's not just its production new production on.

we frac capacity have enough do to that not Now today.

Operator

Craig of Tuohy from take our Brothers. question We'll Shere next

Craig Shere

that the I railed or is that we're around de the currently. of Creek, being have, minimis the Three out the quick Rockies Elk seeing volumes rail Bakken understand growth out of margins and questions if

volumes and the when southern So Elk bump immediately upstream opens Bakken those in Creek of up margin? NGL line, more get the have of kind capacity leg what$X.XXplus we

Terry Spencer

close. pretty you’re Yes,

Craig Shere

on that capacity And reach long those questions in capacity been Bakken the you could and can day contracted that. that's take a down on on to do think the full One, XXX,XXX that between Rockies, And two two, how contracts. break ultimate it you DJ?

Terry Spencer

lot up say get I would reset will be comes bit no quickly. we a little volume time. barrels. once XXX,XXX assuming that quicker, probably that a fairly think anything to it take And think up XXX,XXX so ethane, as at again, we into rate on I Kevin that XXXX, will ramp your that is to see I said, if as of we

end your question? completed the on last over the the We will get lateral would be you XXXX.And think it then I piece the repeat come would in to part last will which piece be. delay the got last the of of

Craig Shere

a Bakken or wanted get from of to proportion it's sense I DJ? all the in where from sourcing terms

Terry Spencer

about out to XX% the coming of Bakken. say XX% I would

Craig Shere

versus… last one And Right.

Chuck Kelley

of you, as lot before out Craig, coming move powder the really those just you volumes a of on, DJ. before not are

Terry Spencer

the River. the Yes, it's the and out rest all Bakken of XX% Powder of the of almost almost

Craig Shere

last the repeatability sequential touch income, aided and sequential coverage And on CapEx question you other that? by was maintenance like the I noticed the DCF quarter can higher of in lower

Terry Spencer

normal done not. gets when or I and the and project comes think goes it's is quarter-to-quarter that timing maintenance just

small a a was very other amount The and non-strategic of money. assets that for sold we small

of course So that cleaning kind assets. a just ordinary some up was

Operator

concludes this back questions Thank for closing you, Andrew for I'll to today. it turn remarks. our Ziola

Andrew Ziola

Thank you, Todd.

quarter second close in and for we release extends quiet until in July. starts early earnings our the later we July when books Our period

joining will a We be a available at conference team date. you Have provide throughout day. for us, the good and for the call details will the week. later IR Thank

Operator

Thank you, ladies and gentlemen, this concludes today's conference.

You may now disconnect.

ONEOK (OKE) 1 May 192019 Q1 Earnings call transcript