OKE - Earnings call transcript Q3 2021

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Operator

Good day and welcome to the ONEOK Third Quarter 2021 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

welcome third and call. XXXX Todd, you, to quarter ONEOK earnings Thank issued presentation materials and website. and earnings are the our We release yesterday after our markets closed on those questions. be to we'll remarks, prepared our take After your available expectations Statements made during Safe are should call XXXX-XXXX. that Harbor and provision considered statements by Securities or Acts one forward-looking of might be covered predictions include this of the of the in Actual forward-looking those statements. differ could results projected materially from

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

Just turn conference a you Pierce Executive to over coordinator turn you question order it for to and of President Officer. we that Pierce? Norton, many in and as yourself I'll before the you to can. reminder, call we as that, Chief to fit one follow-up over Q&A, the we limit in one ask With

Pierce Norton

President, Natural morning, Vice Gas Kelly, on strong Operating President Affairs, and Vice your available and And expectations. to Andrew. We President, me With results thank XXXX Also Thanks, Corporate is and answer Strategy Liquids, Financial Executive third questions and Gas. and President, Yesterday Executive earnings are for Vice we Swords, Senior guidance Kevin quarter Senior Officer. Vice Officer and ONEOK. join your taking Charles you everyone. good your Sheridan our time Walt Hulse, today's financial investment Burdick, today. in Chief and And to Chief Natural announced appreciate increased call us interest

and demand. Natural The of on system. Quarter Our result market Gas NGL driven activity volume producer results Third growth and were by increasing our improving

we seeing focused for into for gas continue the months. to that on to and energy as recover NGLs. winter head demand we're demand to continue recover we're economics natural critical particularly increasing As helping meet products, And these from the world pandemic,

a greenhouse coordinate In we on gas environmental focused for major future announced customers marking target, the September, innovation expectations Company. throughout continue reduction forward, we on our another As and we look milestone with Company. to growth are our emissions

achieve tons absolute reduction compared to emissions combined is metric by XX% goal Scope X.X million levels. or XXXX our Our with an X and XXXX, X of

undertake will further a certain in providers compression natural use best methane optimization target, mitigation to of meet utility emission this few. assets, number carbon for energy to operations, measures reduction management name the practices, We electrification the implementing a our just gas including collaborating strategic additional of to increase of low through our with system

that and carbon we evaluate to capabilities those complement our remain stakeholder on value. As continue while operations low providing focused will long-term opportunities, we

we call the activities, projects As share have will future reduction over Hulse target. or performance. I Walt to will our additional that toward to financial detail discuss specific information progress our on and emission XXXX our we turn

Walter Hulse

our yesterday's With $X.XXX net X% increase financial of and This earnings Pierce. with to guidance again in of a $X.XXX once you, EBITDA income and $X.XX Thank with in now expectations expect $X.XXX midpoints guidance our our our EBITDA narrowed increase previous to increased XXXX $X.XX EPS adjusted Income represents net compared our we guidance. billion. a midpoint and midpoint billion announcement, adjusted a ranges. of and billion billion billion XX% We

commodity in expectations storage gas the region Basin, by transportation, natural Our volume and are continued higher Permian prices. increased for strength driven higher demand Rocky and Mountain and

and align expectations, We project with guidance closer million and and of producer expected capital our capacity the to projects of our XXXX of a as investment our with evaluate range and $XXX to work those timing. higher-end expenditures capital customers needs activity future result to be Our continually to are increased needs. $XXX million supply we'll their

Basin, gas XXXX growth for to with along activity recent rising increasing the expansion. by Creek our plant the and strengthen, Williston Bear driven in producer of completion in to continues outlook oil Our ratio

end and year. ethane come new demand is expanding detail expected the before online new to shortly. of from Kevin facilities the on will each of petrochemical these Additionally, provide more

of brief third quarter overview Now for performance. our a

net compared totaled One third increase share. prior per compared XXXX or $XXX third million XX% quarter the XXXX, XX% A with with a $X.XX quarter. income of and the quarter increase

Third-quarter adjusted with quarter an year-over-year dollars, $XXX EBITDA increase million increase XXXX. totaled a compared X% of second and XX% the

sight basis nearly to Our X.X of September on annualized have line million credit outstanding the billion an to on We we sub our near no EBITDA quarter debt times the ended and in future. on X Sheet. Balance and facility, $XXX was borrowings the $X.X be run-rate XX net in third with times, of cash

week, We of to this proactively upcoming debt XXXX. Earlier notes million remaining the we maturities. and $XXX manage continue our senior to redeemed Sheet February Balance

next over quarter. call not of turn I $X.XX C/XX.X for now of an or maturity declared will previous from until operational Our debt on In of the XXXX. the annualized to an Board update. October unchanged basis, is dividend a the October, Directors Kevin share per

Kevin Burdick

Thank In Gas volumes X.X our segment, second nearly barrels day. per million X% with XXXX, feed raw compared increased year-over-year, NGL quarter throughput Liquids averaging you, the Walt. of Natural total and XX%

Our highest to-date. NGL volume

with the driven in day third-party producer recovery connected Roughly feet Third ethane quarter Volume that per volumes volumes producer and including quarter Permian online Permian plant the X% increased higher the cubic third region, driven ethane XXXX, the from second nearly a the growth Basin levels. in July. recovery with throughput quarter, activity and Rocky XX% volumes also XXXX. activity XX% came was raw quarter, by region increased. and by feed with plants, the third-party with second XXXX, million from Mountain recently Mid-Continent XXX second compared the -- compared increasing the from throughput increased and compared increased

regions, segment earnings capture operations our the year could of facilities of and on provide normal the during of additional to to was to as the additional petrochemical providing We assets recovery also fully our an and Ida The ethane XXX,XXX differentials primarily connected as the benefit continues also third-party of plants price before have following day This quarter results. volumes Who the plant online additional incented increased Rocky operational. returned the demand ethane region in the more able to during recovery third and continues. than in top additional expected in forecast in quarter, coming to end utilize commodity pandemic for and the natural remainder integrated barrels the the recovery per quarter. location Basin capacity once fee-based near additional Hurricane new Petrochemical continue demand in strengthen combined ethane the the Ethane gas ethane our regional Recovery current wider strong the throughout ethane of as to given should continued gas ethane partial full XXXX. is October, recovery system Mid-Continent with Mountain third in natural November, we support compared second XXXX, a quarter. with also In and year. during other prices. exports, Permian the differential we on

these our our ethane our expectations. in the are barrels day. a a thousand day and Of All is than are XXX that additional thousand upside per XXXX increased barrels thousand Discretionary recovered XXX XXXX. provide opportunity, per ethane more in of more Mountain assumptions XXX for on to included would financial the guidance Any Rocky system now region day in barrels total available than Mid-Continent. per

ethane. As the NGL across our grow volumes systems, continued to so discretionary does

currently nearly day Mountain maintenance per X% maintain come Scheduled enough third back region, Gathering second billion In X.X have the production Conversations since in of of the estimate point per acreage. billion combined growth. can connected rigs processing cubic at the quarter wells volume approximately our to additional XX gas nearly of completion a region our plant averaged is cubic the Gas drill to Rocky Processing for to with day. XXXX, than There with producers XX% approximately rigs, and acreage. enough is gas-to-oil compared XXXX. quarter Natural in would and that segment. on year production by volumes and online, grow and completion to X.X dedicated increase XX system. activity volumes into rigs the on system, XX activity the with feet Any This rigs on XX of which per facilities, continue to increase processed rising end X cubic Moving provide feet higher levels approximately of with our behind more basin additional operating feet A through crews XXX X already XX are the and the to crews third our We per quarter our wells ratios the year, our quarter. decreased to XX which day million year-over-year.

completion, expansion compressor fourth of of our Mountain in a in-service, Based significant their ramps the dedicated the dedicated to producers on approximately to expansion X With with flaring. will with a wells last wells there Basin, cubic had over the Rocky The Creek quarter, as at October, most uncompleted wells. we completions startup of And see time region. we our our connect expect plant in XXX well in With approximately more XXX this Xs Bear more number more should Basin. year. avoid compared this connected than per in X connected years. volumes now capacity currently In we third now inventory to and addition our Creek with quarter we to to In time additional ducks schedules, processing the the Dunn of drilled operating have the large new XXX about year. related day it in plant than completion than completions XX on stations Bear billion accommodate X.X in feet increasing XX the we as acreage, producer still but County recent XXX full and the basin-wide complete and rigs wells on acreage next remains the capacity

rigs to activity We on the ten and during region see NGL increased increase continued a connected year. X in quarter. with next higher in gas and our third drive to wells natural operating now activity Mid-Continent prices the acreage continue Sustained

compared compared During still expect This with in the to the third increasing per quarter with the to quarter. per segments volume rate is fee rate contract MMBtu. stable, XXXX XXXX. our X% earnings the $X.XX fee to average in rates results average third pipeline continued drive natural driven segment. and the mix, the by $X.XX quarter, a per segment EBITDA, gas MMBtu with our and and adjusted fee prior processing for averaged $X We Under each quarter. between be continue Changes of MMBtu solid fee-based $X.XX gathering

during see winter the earlier feet we entered of winter. we especially increased heating and storage the natural winter our capacity this As cubic year to event following connected and around additional extreme customers more interest to year. than system gas the continue for critical services The customers storage segment's market from season, pipelines transportation billion on long-term XX weather provide but

customers meet As always, our increasing and in needs concludes my the demand coming we're with to working that help understand to remarks. Pierce, their months.

Pierce Norton

of quarter focused you, on Thank Kevin. proud employees quality the results dedication reliability, and and strong more remain our than that this importance safety, work underscore The very the X,XXX and responsible fact hard I'm disciplined assets. and our assets of of operations employees. the for the our our of the of

of now year The of the this ready set well that end have growth questions. With year, the next earnings first year. growth Company-wide Operator, months up next foundation we're for has XXXX, and laid the continued X for for in the

Operator

take our with Shneur [Operator from Instructions]. question UBS. We'll Gershuni you. Thank first

Shneur Gershuni

XXXX. if morning, into good about was I off, wondering talk start everyone. to we Hi, tailwinds Maybe can

in pretty out the for sounds to some completions only there. good complete of well X year you've gave with like this wells months XXX go. color to You left presentation XXX about got It

XXXX. into the also Creek some so it you color Just you've about Is that to billion PPI give right how to a do to on upside wondering got the $X.X potential. if us ONEOK service. to talked like now some these You've and have $X fair the that Bear In think tailwinds potentially now, we Bear of think forth? as as how into head And billion as stronger head assume case? some Creek of Are about you've your inflators so Is we tailwinds assets wondering just past, in now? XXXX. can you

Kevin Burdick

Kevin. is This Sure.

Permian. with 'XX, I DUC levels growth GORs. I there's into answers We're with the more tailwinds rigs, that go the question. seeing with activity multiple in X. really the rising towards nice the Bakken activity we the think When seeing in really in we're the Inventory, in volume think about

So I kind of point volume to growth. core that

I In to said drive addition think like demand got, the system, ethane that, recovery XXXX. coming in remarks, the you've about which on as ethane we additional could

of a ask have the our majority the G&P there fee segment, our on question are. contracts the think -- contracts. do your NGO I escalators to and So where vast that's But tailwinds rates. about you segment our inflators In our on

covered contracts other we're and those as covered. inflation so about So are like we things think that,

Shneur Gershuni

Okay.

good with or when well Okay. trajectory on targets you of given still And buybacks potentially considering mid color of You're return before? curious the about leverage year. a their what just on hit potentially Just next or range need increase capital Could leverage we that table? your dividend as maybe kind the please. from see too, auctions

Walter Hulse

Sure, Shneur. This Walt. is

debt We are We and ratio. stop not achieved EBITDA pleased rejects improving that debt to to see trend looking that. want very for the to lower that in so quarter. to here section have continue going X.X then we're third and to

not to opportunity forward, and along other options on invest our our with it open to cash finance. further utilizing But growth is the in go our return focused free get debt we capital we the using us high reduction, free at flow as The thing having for the Obviously cash flow as flow and we're projects. reduction free and cash into gives up. moment further

Shneur Gershuni

Appreciate today. comment the Great, you very Thank perfect. much.

Walter Hulse

Great

Pierce Norton

you. Thank

Operator

We'll take from Christine Barclays. Cho our with Thank you. question next

Christine Cho

I the Morning. ethane extraction was, the plants incent noisy could mean, start -?end. a The? If back of in offline. being with a with I number little quarter

was on ethane, a of of in incentivize Gas you to would spread So didn't of give to hard quarter-over-quarter that prepared seem increase on magnitude a Ventura the And tell you you your remarks basis. -- I basis, but the kind said, can the us it it's extraction. like idea Bellevue incent an continue what over sequential ethane just think

you're max you would exposure your can an constraints tell us what we So of that try your going of out, know be maybe should and we figure us not exposure your can could assume give it's ACO? but be? I because your what to to ACO to exposure And and limitations idea so is what

Sheridan Swords

price What Sheridan. sell at gas opportunity we slightly offering gas the could price for at go is the price you this for is, look in. the incentivize the plant, then better market than we marketplace, to the at what Christine, I We choose the juror. gas is If it. we what's not been we we look in ethane buy to that, us or at buy look going at tell plant, on incentivize ethane, when at we that and that to at would what at

So can't Ventura or really you use ACO.

what look the You plant have at to and gas see is happening at the time.

we quarter. incentivize In time, said in second At third third the more, an as terms did we we're in not did we ethane give we did much volume, of going quarter. more how than to in the remarks, more -- you in idea incentivize the we but this quarter

Christine Cho

And more would going a it even to assume be forward? you could fiscal basis, safe that incentivize like on

Sheridan Swords

going do incentivize in have more ethane. volumes segment, we G as in said our as look P much Especially to opportunity is to prices -- we Yes. of an I on on the out. all basis, and at But ethane basin think see our in grow in the and marketplace, what's the grow how previous, are bring to whether right the we an amount

we other rejection. So that don't have push operations we basins into

Christine Cho

the about is I utilization how when full up, prices And and about too guess do you operational think crackers ready get guys the at the Okay. risk we ethane that running demand to gas high? I think not ramp prices then think if to

Sheridan Swords

ethylene. I between there still strong say ethane would spread very is and What a

have so crackers run. room plenty looks like to And of it continue the to

to Ethane because we been at to run but new think full with the to that ethane Now need needs today crack run they has will, more. wide spreads. than rate, be ethylene it of they crackers

we So that China. demand we as see we've in the in And good seen. stronger with couple than volume exports going that on XXXX, online, forward. you crackers additional then coming in come export are XXXX expect specially

Christine Cho

you. Thank Great.

Operator

next our Tonet Thank JPMorgan. question you. with We'll from take Jeremy

Jeremy Tonet

first with I billion And that I'm guidance. increase higher think wondering calls, was to Commodity the how trying a are at in versus low just that's a midpoint talked thinking double-digit what of laid X.X a if think for fair way But what prices quoted there. EBITDA about on EBITDA look point time like just prior now you of XXXX you to guys call in about had it? guess the update, out they're than versus I in about the quarter. first what you

Walter Hulse

Jeremy, is Walt. this

that on What already activity, what we our is quarter, guidance laid whether at we with X.XXX. that time. strengthened we I throughout first I the it'd everything Obviously, at year, the comment out was have it the point seen achieved business, in was our commodity that think in when strength producer we've would out there point that be build quarter-to-quarter, seen prices. in

direction. trends we headed tailwind, with February. you the we're 'XX of 'XX think going all and the So in that We are right our will into guidance very give good

Jeremy Tonet

thoughts Got it's maybe pivoting minute wondering there, ball. towards be have or you or just the any anything what could DC there on this crystal point? uncertain mind a it. there. cloudy just we and else minimum at for and sense one could you of that granted that XXQ, pretty might a if very impact tax, your higher for offer on is That makes And outlook how But a a looking out

Walter Hulse

the on whole conversation also increasing has it with a utilization. somewhat NOL place. limitations irrelevant. few unclear maybe will and threshold depreciation, Well, right there's interest at parts the and making still If next it's the will bonus with the point place interplay is in this in unclear interplay moving the now. are how billion-dollar rest how been it tax it place for quite of years the is alternative a enacted, already the It's several minimum that in which And

it. So going continue team able day, being in we're to see on fund forward. we got and even top its capex as that the progress it developments of at end on watching to we or of do We've deleveraging our the the a But wouldn't case, will that. changing there our worst

Jeremy Tonet

Got you it. a Thank for helpful That's very that. answer.

Operator

our Thank Bernstein. with Jean you. We'll Salisbury question next from Ann take

Jean Ann Salisbury

ONEOK clearing North talk on if recent Can indicator get reasons you page it the tough Hi. about that? And for months in Good an it's be as that state morning. you gas all trends expected X. so wide the increased to Notably capacity, Dakota might show hasn't wider versus all wondering of forward. going just for look processing about but growth it's production different you acreage maybe increased, Dakota 's North in glaring the your.

Kevin Burdick

Ann, the is through of I same third-party the producers tick sometimes on I'll outages curtailing you'll are some going Kevin, think at up had had some what cases trend. we in a chime think that the down through expansions some well activities this flaring. the with Jean the chuck then a that you that's during don't were and I while see of I majority summer. you We've going in and talked is summer facilities saw about as other but several and the And little volume, know plants facilities. maintenance

X. targets all I rates these state going into there we are I'm anymore. third-parties I'd what think target operational the same we're discussion the to the our with for run It's and conversations back facilities. The trend normal more other get The way not is way. as customers sure up having it's consider

as our going. to large we to get working bringing close to facilities I these as we that sure can, timing relates expect as are on as as that drive around of to X pads, up would on for facilities, we it we it with etc. So relates and turn possibly number they're the how customers our how

Jean Ann Salisbury

just That's to gas the any or on really there's away And either the Expansion take if Border horizon. recent Northern been wondering more get some the Thank helpful. [Indiscernible] then you. movement on

Chuck Kelly

these few we to it a pandemic see Basin, residue revisiting that Jean. to projects is next, Chuck. that three requiring takeaway, of going projects years, the become necessary. are projects There's increased prior are activity quite GORs. as The Yes the And in the those this that saw additional in the we rising two indicate to the we were factors call discussed trajectory basin when

there's part done that now on definitely So solution. being be and of a will lot behind work of we scenes that right the

Jean Ann Salisbury

Great. Thanks. me. That's all for

Operator

Fargo. next Thank you. Blum from Wells Michael We'll our take question of

Michael Blum

if morning producers to what about bit hear to possibility there's uptick there. Good terms enough a flat I Thanks. you're volumes a that ask everyone. Do drilling in of seeing Thanks. Mid-Con you could the been XXXX, there's wanted I want just in activity. plans be Mid-Continent. think just in

Kevin Burdick

Michael, connected the we look in kind come total us. at every in the shows and out total been it's if I the The at Kevin a our rigs. in mid-continent, with yes, a if focus I of that that position know where think are plant, and we to the there's NGL producers way Mid-Continent, about uptick A, a to coming strongly in rigs increases across NGL especially basin rig production Basin, nice it you because it's see to perspective. pretty up announced have NGL of the on look s couple from gas are we're is chances the

tailwind. a that's So

we While we completed activity these sustain, G&P, our nice see in you on more a not those again, we We've have see our in customers some may and wells dedicated continue to a of types rigs think couple. have to prices acreage could that's I the of lot and talk we -- do if some running a mid-continent.

Michael Blum

Great. Thank very you much.

Operator

with Tudor Holt and Pickering, take our Bean Thank from Colton next Company. you. question We'll

Colton Bean

the per morning, really Mid-Con, and a bit? the historical there that QX to if levels $X.XX sufficient recovery least can rate. in I out our this Good bundled on we I rate at for OTT Was incentive Bellevue that of And I Mid-Con levels X Maybe, gallon between or result think the a average guess, sir. saw and point a current ethane spread then so, just questions QX. then widening slight get

Sheridan Swords

CNF Mid-Continent. two drove there's fee What rise in in Sheridan. that is the say, average things I'd This the the

spread Bellevue them, as wider we quarter, factors. incentivize months OGX of ethane. in one any to incentivize and the we which and saw And of ethane one didn't a the didn't -- between have mentioned You

came that naturally. out Now

which The contributed split other CX in both tier those rate CX our of gets the higher of thing, the it. A through our ethane it higher to and than volume, rate. for a rate we also plants plus ethane have saw volume -- plus. an so uptick lot

Colton Bean

Great. And the on there then you XX, back to you've there the basis. a about that leverage sheet, think balance desire effectively a new on like looks highlighted target guys Is run-rate or below you really whether think of absolute debt you're about it's a I'm ratio do the more thinking next in terms target? in balance of over years. interested the how sheet couple an just drop

Walter Hulse

I lower, said we're we'd bit EBITDA that I [Indiscernible] The X,X a whole head going we're levels maybe opportunities to Well, like aspirationally and at, mean, a a we've lot see even think little invest. of there's money to towards going before to but that forward.

downwards So aspirational towards there see we think deleveraging X.X in we've invest got around to of projects times. and trend that still our target meaningful room great to continue

Colton Bean

Thank you.

Operator

from of Tristan Thank question you. take We'll our Securities. Truist Richardson next

Tristan Richardson

good morning, Hi, guys.

Just in you plenty capex us guys dynamic efficient modest a you generally there frame just downstream G&P just But capital a can maybe the quick the third-party and Elk more look in you us Clearly, additional dynamic anticipation one what second for Creek before. Certainly in you've shown optionality Creek. online Creek, versus you Bear broadly Can XXXX Obviously or side. with in of there's XXXX? half, volumes capital that XXXX? frame on for on the of but trends pent-up the capital like year plant mentioned Slide very Bear GOR could with capital. in

Kevin Burdick

Tristan, year. we we think our you flow as way because will or this is going are. on give our number I'm early and the guidance what next what capital, evaluating about constantly are that a Kevin. provide capacities needs not with you we're But to customers

talking as needs So Bakken plans processing they're rather frac on we maybe needs in then pipeline what 'XX move Bellevue. customers about about the we're and/or information all that factoring and from need West are Texas, of gathering, in. capacity Other into evaluating our we're processing, the and

even Elk a the like as should spent position So that restart great in, capacity, already significant project, paused of you an additional need amount mentioned, frac we're to but MB-X Creek, we've that money. we

to the might additional we months need both to already So capacity, would good don't got out pipe we the need capacity, bought, And only that frac. pipeline finish and we've provide well time a deliver in XX have to that exposure. really need months as to we're we say, as ordered we capital shape would the because XX so

good and we So could that money them projects don't these -- to lot are relatively or come spend a have in of do back really we to shape can quickly.

Operator

Thank you. Tuohy our take Craig We'll next from Brothers. question Shere with

Craig Shere

morning. Good

So we're in connects in the about increasing. well it's a talking month XX Obviously, Bakken.

said the be October I I we think XX did in or and math if you December. right, may at XX more November, for

could inevitable a connections How we day. NGL same couple upside one-half year-end, system, be more these there ignores continue the there? year, hit But that fee third-party plant right? On by this your into all activity is trends just If of with And activity, much next is a your questions. right? I acreage. had your X. So off over processing

Kevin Burdick

talked believe rigs XX mean, entire -- in that's I Basin, the grow hit north the on of about. that's across we've mean, you're you've gas I the tailwinds production Basin. Craig, enough absolutely, if we to

all think third-party Sheridan from capacity that's the We're day in on there well. Elk the a not out of a or systems I shape benefit like XXX,XXX great to barrels NGL got, our on still growth Creek we've so of because coming has but as to the benefit side, we're G&P going connections NGL And going that perspective, us only on from Basin.

that EBITDA. capital So capture of a again, have we to don't to lot spend

Craig Shere

tailwinds, kind Okay. outperformance we'll about is next And silver and the EBITDA recent expectations. wait versus fourth updated nothing understand guidance, to decent you it suggests the it Could year's into fourth guidance everything more maybe but midpoint I full-year talk like kind of quarter? sounds of like till like quarter, looking gives takes going this but is February great seems get wonderful.

Kevin Burdick

to predict going and always will Dakota. know I in weather to the or there's we Well, probably gives say, with deal North you're think is we takes have as

if calm you in early that us. Potentially if XXth that's December think those connects what a have Well, yeah, rather But is are forecasted so to in get I saw, well be arbitrary winter well some we of do upside. last or could I producers of And you then year. a think XXth. We key lot have provide the get December telling done going could And weather, this get of it's January delayed? the at connects on months some are the cutoffs but the XX. couple

So back the you've clearly the as But going months, trends next got and there. we hit at we think to we're I optimism if be. on think, look up where yes, we've of several over

think recovery as volumes, and we well upside positive both I with some in the online come like well upside for these a wells the us think, would option ethane as as if there's fourth quarter. that be

Craig Shere

you. Thank

Operator

from Thank Kania you. with Wolfe next We'll question take Alex our Research.

Alex Kania

context Hey, next questions, year view and into of X just into and and with between maybe a good thinking your natural going spread year increased recovery morning. demand. putting ethane first the with opportunity about ethane just next widening gas is

ethane? both to fair volumes on the pricing think an there to that be a incentive and ability opportunity that double have between reduce So maybe you there it'd is

Sheridan Swords

Yes, this is Sheridan.

obviously, wider spreads. You're that the gets, exactly more can the We both. ethane we the an capture grass spread think And there's to natural right. had opportunity of we if

And is we more Bakken potentially less. mid-continent, as ethane the opportunity to have in incentive increase even also continues in And also so the out. to and bring volume the the

XXXX. right. So -- about into you're you're exactly a double benefit There's thinking it going

Alex Kania

least follow-up DUC to assume the is XX dive enough Great, the any wells GOR really very about or on also thanks. of at or anymore. And of work-down the where a on the XX into that Does maybe Inventory they or maintenance XXX gas rigs. with the year, inventory level have to that not And and rigs but imply DUC's a volumes XX thinking the are? XX the guess, then whatever else I agreeing to then continued keep just

Kevin Burdick

it I continue call DUC the see you'll to little will think occur, down bit. I a Inventory Those guess work simultaneously.

and I you inventory crews the number to -- a have, they slower. It'll XX level you a the rigs keep ever think well likes on more you'll working to I completion so a be to down. waiting more completion be at where the rigs want -- completion the look producer get You'll But some will inventory crews and a at the level little that at down working work running, crew to of the certain you'll don't think point complete. a

you're but to you're period So have well here I rigs think of you'll wells. getting to churning a months, next where it these time both DUC several I as Inventory the new as see down, think stabilize, the worked for going have going out new do

Alex Kania

Great. Thanks very much.

Operator

you. Thank

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

Michael Lapides

in thinking holders. capital equity how it's so are -- thinking standpoint more very you for growth? Hey taking the primarily what When embedded see the guys, limited about return board's going would from in given to get what appropriate to about as how long-term to play to just I'm do you think over close or been think embedded thinking to a ahead. has just about an nature. and not Meaning, you're view capital improving you you allocation Mine's a thanks growth and my the you back longer, again it's how equity years, and think buybacks in role? point board industry more about last question. little do of you you're fundamentals as bit a through in special the trying an Do think dividend the capital where dividends how allocation couple if dividend

Pierce Norton

Pierce. is This [Indiscernible]

to would I the we at opportunities. the price. what to up this as down way Walt, per reinvest that are add we Walt in that the open before, the X,X to growth some said is looking our of to value those are lower grow in priority go to But that? anything earnings return be board it business, you earnings and to equity what first got look those then grow does through share. maybe X also And our our to opens at share to opportunities it get think our continue up opportunities. and other and per the

Walter Hulse

to the think all it. as see continue back these We evaluate that's grow, getting and Board to earnings right. we [Indiscernible] exactly opportunities will No, those -- I

returns obviously focus isn't we'll shareholders forms we other if attractive more is projects something then to our big and case, have of And to We that capital. the then return want looking high multiple are to evaluate. going at to capital have

Michael Lapides

it. you I'll guys. Thank Got follow-up appreciated. offline, much

Pierce Norton

Welcome. Thank you.

Operator

Thank back I today. Andrew to closing turn you. it for questions That Ziola our concludes remarks. will for

Andrew Ziola

the in and quarter late you. extends a later XXXX January joining details we conference We'll fourth starts year-end throughout IR that at close date. until our books the for you all call us Thank release available when provide will February. and and be of team earnings day. in period for Thank we for quiet the Our

Operator

for concludes This your participation. you Thank today's call.

disconnect. now may You

ONEOK (OKE) 3 Nov 212021 Q3 Earnings call transcript