OKE - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the Second Quarter 2022 ONEOK Earnings Call. This conference is being recorded. At this time, I would like to turn the conference over to Mr. Andrew Ziola, Vice President, Investor Relations. Please go ahead, sir.

Andrew Ziola

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

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

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

Pierce Norton

Sheridan for Officer Pipelines. morning, today. Corporate Relations Vice are our strong Chief quarter to Processing; our guidance company. Swords, the and on Good everyone. us and Vice affirmed President available your in XXXX XXXX Vice provided and Walt Kelley, you our Vice Natural Natural Commercial is Gas President questions financial and announced Kevin expectations. Liquids Gathering and Development; Financial call and Officer. Chuck and thank And Hulse, your answer investment Also joining interest Andrew. Chief Executive Senior On in of an Burdick, update appreciate President and Yesterday, of Executive We we Investor Natural Gas Gas Senior earnings, second Thanks Medford President, today's incident

shortly. and expect will which adjusted our today, midpoints net sit provide income of Walt still we the guidance, achieve we As additional details to EBITDA XXXX

across events unseasonable during April quarter. the Two the Mountain operations and midstream the second Rocky weather financials outages in region. Our weather widespread disrupting producer were power, despite and separate quarter achieved cause region

providers see they to operate. Our second normal the on the as quickly resume supporting agencies, and where safety commodity we quickly worked safe continue Across challenge. half well focused of the operations prepared in responded communities to our as the activity, strength remained demand utility were of with with possible. and we strong year. and And customers, producer local the a They to of operation assets our operations, prices employees

is to for we and gas gas our are provide early and still natural it While essential too liquids. outlook integrated positioned XXXX, across help to our well footprint process transport natural

the I X, Saturday, Medford, turn the over, On Before like call facility. Oklahoma was an to the mid-afternoon, and update July make I'd facility. fractionation fire at there provide a on

We personnel to incident. cannot a the to thank a our I and main quickly worked enough were First initial like local safe coordination and accounted communities to those the many and and focus safety is together first employees, safety for, who situation respond personnel the corporation all and our responders see of our of would like first. the this. who the the surrounding the foremost, employees work put and during and community of concern of always about efforts agencies to teams

essential on of Because as proceeds fractionation facility financial incident we operations will storage details insurance agencies however, business earnings the additional of yesterday's property time. the products flows, of a the expect on a to cause companies those for Results financial out and the provided insurance pipeline, thank us integrated do peers industry that utilizing but cash arrangements. quarter with working I year. the these incident, to working impact incident. with to to may have anticipate release, also we government results We're of and fractionation or interruption incorporating We of our storage given keep not we our coverage. assets. In effect the continue for and work service flowing coverage, with in are period extended perspective, want of since currently system of From condition. an timing determine an or remain this we operational of material our NGL

a other this quarter when that, will them each corporation call want of this to again. Our are discussion the history happen. over stepping thank And once success. for financial up in long has performance. I proven to has Walt on incident critical relationships our long-term second turn industry industry's help And to that once to again disruptions With we

Walt Hulse

Pierce. share, quarter X% quarter second of the $X.XX a XXXX million per second increase quarter. net or ONEOK and compared income with totaled XXXX compared XX% you, the prior Thank a with $XXX increase

more Natural an routine place. and which increased EBITDA adjusted segments, XXXX, maintenance take the quarter were first typical volumes business each NGL higher higher our Second to benefiting Gas second primarily operations realized with segment. increased for prices by is Compared results XX% allows Operating was projects quarter of our Gathering and weather year-over-year. the costs our $XXX commodity driven increase across Processing and million of second quarter improved in as for quarter

Yesterday, XXXX. And to our expect financial of maturities expectations. billion and adjusted billion currently ranges, of achieve an X.X the our on with as for guidance of rate and expand $X.XX due net XX, or short-term And which X.X senior of in long-term we aspirational for June, September our we earlier debt leverage we to cash due times no times. we our net EBITDA. basis XXXX debt-to-EBITDA still lower October continue was guidance have borrowings. run range sit As redeemed we million midpoints as notes at until income annualized Pierce's remain June $XXX goal. We on today, nearly reaffirmed long-term XX $X.XX comments In to view

second a volume point rate exit expenditures the NGL the natural producer operations activity half I'll across year. $X.XX in trend to Kevin the business. this higher expansion natural capital range over opportunities the end call of support activity and a in now of to guidance for volumes of financial guidance higher towards and $XXX XXXX, and XXXX strong to pipeline expectations of our for total our turn range expect levels billion, our to upper Positive We by gas to commercial and driven continue our update. gas million drilling

Kevin Burdick

Thank you, Walt.

And guidance were XXXX. volumes expect impacted the for well lower second through guidance significantly volume remain to compared our the now of weather midpoint raw across throughput During remainder XXXX. providing expectations volume regions quarter our process be we feed the strong we growth NGL during end and toward achieving Natural range. processed the completions gas operating volume the volumes by with all the events. of quarter, saw XXXX April NGL the quarter in first the of confidence year, our

XXX,XXX per in closer dedicated Mountain segment. with year. Mid-Continent quarter XX% as and X% second basin, system quarter the the to XXXX, by volumes We to to our saw the pipeline X% for ethane XXXX. raw as recovery and Mid-Continent Mountain first periodic following the volume a recovered our and NGL portion NGL region expansion of rebounded basin first anticipate the CX+ year-over-year barrel West volumes throughput NGL Liquids increased averaged on basin ONEOK increased more Permian at higher in volumes XX% day, of quarter producers volumes of levels in in Gas gas expect our with a with ethane increased large X% as July Texas the XXXX, barrels compared April NGL growth. X% opportunities second the In the driven to first Rocky the quarter storms, XXXX. add the in be region than first NGLs recovery XXXX. continued with a to the look recovery has per a Permian We average. compared Rocky Activity in in the in region's remainder year-over-year feed continued system. X% than incentivize natural Natural increased majority rigs take X% the the year-over-year the compared expected prices compared volumes quarter XX,XXX recently region the high completed Let's and fluctuate. quarter increased on day continued of continued NGL volumes support with opportunities We ethane Total increased through and volumes Basin, Basin, the

second our mentioned with more peers in capacity capacity system-wide fractionation quarter was Pierce XXX,XXX now industry in complete fully per be Our approximately incident to Construction on of Medford’s fractionation capacity. continues at day XXX,XXX name barrels And storage capacity early our Belvieu, Facility. Mont XXX,XXX is additional than the and utilized fractionator we worked plate XXXX. as total of have barrels Medford we secure MB-X our day. per of day expect to which earlier, the following per barrel

crews billion a volumes approximately return X.X We’ve in slight only and rigs XX Through well There to region, averaged and due and this in Natural XX expect segment. dedicated seen the in April feet Processing in the rigs more XXXX. completion year. billion In the volumes to feet the XXX last months operating approximately from doubled Moving compared XXXX per have cubic the pre-storm day, the acreage. on And XX quarter on the to region Basin-wide XX volumes second in wells rigs levels. six with with half basin Gathering we months crews in to than XX completion X.X to XXX more processed first total per connected the cubic continue rigs the connections Rocky we’ve July our the than decrease approximately July, and year, XXX Mountain of approximately first are the quarter region day. currently weather. recent reached Gas

the drive acreage on remains compares remain. gas rigs volumes these see in the higher system. current and these our show XXXX for NGL those year continue levels, acreage. activity activity a with basin increased gas expect approximately XX as to ago. natural of our the increased approximately see In on to Williston The four as more and the we compared As connections now said DUC acquirers in XXX viability in with announcements we producer well to our XXXX, inventory Basin with continues currently activity a before, our on approximately we’ve at dedicated operating XX our with we This play. We if basin-wide of can positive see half the basin-wide. but M&A XXX region, to expect levels at production DUCs acreage, natural Recent acreage value maintain XX ONEOK, from with recent Mid-Continent rigs rigs to and on long-term than

demand Texas our through storage feet of we storage facilities, recently X.X completed services. expansion is increasing XXXX. natural transportation fully the cubic basin-wide our continued activity We rigs pipeline expect steady segment, second results remainder the natural to with gas strong the quarter majority year to of through of driving NGLs In a additional the and the which Last subscribed increasing benefited discussed quarter, gas from for now system. billion

we XXXX. expanding be feet Additionally, billion XX% in additional early cubic enabling XXXX, expected is X be in storage is of capabilities are nearly an subscribed project capacity through our storage Oklahoma, and complete to This to contracted.

natural planned concludes segment continue Pierce, forward both my capital so We with on pipeline on our Midwest. expansions seen One that completed the assets were open recently from system pipeline the for also on to low storage Both year. pipelines and in gas we to highlighted Basin, this the one outperformance open The this successful two demand. to address we’ve systems. Permian our move in be pipeline our WesTex increase seasons value seasons remarks. capacity additional Upper and and Viking far in of

Pierce Norton

you, Thank and Walt Kevin.

attractive performance market report, we published just our maker. was unpredictable, respond and is weather website XXXX, our a affirmed commodity our you As communities and the the and sustainably to who underway safely, engage business remains recent our encourage commitments our employees, in focus The respond the are to business. changing and enter willing also always and programs is key of guidance stakeholders week. we and we and year to these company. corporate employees, but important, our more initiatives half details environmentally and are important in is see real to we prices for underscoring most an and and related across the providing difference financial learn sustainability Challenges – our responsibly areas, with our last producer operational but We’ve operations, tailwinds of happen key environmental, resiliency report second earnings ready our to I activity the how Operating important. other To to the as recent which how governments How operator. is midstream highlights about social review most is success also we to operate and dynamics.

in these ready are we source continuing for ONEOK, make to and Our With areas. now ESG efforts operator, important a pride are we’re committed for of questions. progress to that,

Operator

take from Jeremy first question [Operator Morgan. from will Tonet sir. the JP you, Thank We Instructions]

Please Your ahead. go line is open.

Jeremy Tonet

morning. good Hi,

Pierce Norton

Jeremy. Hey, good morning,

Jeremy Tonet

happened into Just offload material, we kind think better it are said more now? of to bit Medford volumes you help the might parameters this want what’s into then threshold grow? there about if you volume Can about as understand for just timeline it regards talked and not being to where dig as to there. about with And to And if those volumes continue your impact us? going little if materiality volumes impact being a XXXX possible, with this offloads, us is ability what the to maybe – the tell of everything could slips but as deeper extended, far financial

Pierce Norton

over for and Kevin the materiality take it So then Sheridan offloads. and Jeremy, the on I flip Walt think to I’ll question we’ll let us

Walt Hulse

I going to our insurance say I’m that a business with you level that provides from insurance that and I as a think coverage we interruption materiality, comfortable we’re that not our period, standalone but Jeremy, forward. then Well, which point have have remember very we for give of comment. that, will that XX-day

with very, we’re come standpoint. of a from out So comfortable we’ve materiality the view where very

Kevin Burdick

it’s Jeremy, Yes, Kevin.

in they’re that’s been and going industry barrels. mean, On be as We and very XXX,XXX the going going We are down spots for come clearly securing Belvieu. the lot another where second in our will the of new feel Especially helpful them a MB-X barrels being peers a those to now, about day to online talked move get mind, volumes have right able capacity our that keep that good to about in remarks early I to volume. in of we quarter.

again, about the So the we’ve move that’s feel being good able up there. to things got we lined volumes. And

Sheridan Swords

lasts, have peers, with One on long able we of our how we’ve to system. plans handle able to add it thing much very in been income is, be growth volume I’d this talking depending all comfortable our the will with XXXX, through our

Jeremy Tonet

in helpful. press, and keeps shape you hot seems and changing looks And the if the That’s or right But this the bill over could off change or to might that? you currently IROF wondering just impact going could just provide far bill increase And as for towards realize this as your and Got thoughts tax it Thank profile your would here forward. how a as separately, as to like. it it’s that. renewables it. like pursue stands appetite pivot what written want or now, XXXX like is CCS, we other the bit items

Pierce Norton

have handle still addition right, I’ll the for we’re getting think in the we book development details, a positive that and game alternative long-term. otherwise the our that. Jeremy, the earlier the but – if real would’ve tax don’t We we depreciation versus of that late of would that portion an tax us. XX% may years, period the in of it’s for I little get be the but extended minimum tax lot presses in tax the where tax to off rate. of a depreciation gone into time a at And we you’re using a was bit meaningful over statutory Well, see do a that increase higher

a was that tax are some expect we while level taxes depreciation big to the addition higher of So positive.

Walt Hulse

everybody this about on take of is natural And like to so demand the the I’ll devoted XX% electricity. gas CCUS. the to question I’d country that remind call in

sector. add that the to industrial in You XX%

natural XX% being the that almost capture good is demand industry. So thing enhance would Anything of to is ability our gas done consumption. goes for to gas that’s a forms consumed a carbon of that the of two from natural total those

some it incentives, that production to look it’s gas that in oil are to the COX these we the will in basins gas so off we of be as effective and And because will the does this how going to these seen left coming production that a open future. curb think emissions the but up and encourage industry help the liquids at hydrogen. And know an actually, CCUS opportunities exactly they’re that we as the natural us need be, will rich producer both and to do and natural details,

it’s positive happening. So what’s think industry the for a I

Jeremy Tonet

Got there. leave it. That’s it helpful. Thanks. I’ll

Operator

from question will Brian We from take Reynolds the UBS. next

is line Please open. Your go ahead.

Brian Reynolds

for a XQ surpassed be to Hi, little good year morning. reaffirming by XXXX. wells levels volumes And to complete of Mid-Con Maybe its a touch looked year the guide base relates bit to appears the XXXX end. XX% as on expect half back track it on the to XXXX ONEOK in business the to roughly of

kind just business Thanks. about impacts year talk activity. fire. just given in in weather base the was to I how talk if if curious relative about Was you the So initial frac could terms performing you from is Medford curious could of year-to-date the expectations of

Kevin Burdick

mean, I is Kevin. start I’ll Brian. This

base I business very is well. think the performing

If of about we saw. we couple the everything the basins and months, months out. that kind in on track were lower kind kind right going of that back with up the it with completions laid you pause was just of a but the storms, not were volumes a had set storms where also on did think we flowing, couple we into Bakken outlined The

to into coming from then at flip as two business, we outperformance a the performing But gas the earnings those both and of at are done it a So and than years. or and a well the kind volumetric of that’s look from the the better the pipeline anticipated the perspective, segments think business as what of I they’ve volumes going the NGL delayed perspective, be when on lower there. that perspective end side, things, reason at we’re you guidance

to it think going sets I into nice us So XXXX. up

Brian Reynolds

frac. the color. it or while frac little any see on it’s know that thoughts follow-up Medford we Medford I Belvieu Conway potential built bit on has Appreciate could And there been be of too and whether early, replacement Mont probably the time. a in at the initial Great.

Kevin Burdick

it hit head. you on Brian, the

about or we and we early again, that still process. anything got in ready information. volumes until talk And, timing that to keep we’ll more working that. our We’re to secured, and really move believe not get like We’ve capacity

Brian Reynolds

you. Enjoy enough. your everyone. rest of Fair Thank day, the

Kevin Burdick

Thank you.

Operator

Next question from Blum, Fargo. Michael Wells

ahead. Your Please go open. is line

Michael Blum

Good Thanks. morning, everyone.

proceeds So to going not just are basically apologies it So so maybe in just case is is other QX guidance how make that’s I areas. a QX? results technical unchanged insurance or But you’re up and for question. your you accruing be EBITDA understand, and the in in able that to

Pierce Norton

Michael, we interruption business insurance. timely of expect to get recovery our

receive through We said proceeds. in hit may time we have little payments would book at timing ongoing a will flow difference to actually those that of if we we our But right that as time way. income end. that’s a timely – quarter we that why we from bit a normal expect But statement

Michael Blum

Also that economics Thanks your from gas decline us wanted at discount prices, pretty big the in Okay, a ask benefit remind great. you to Can how for gas clarification. to Henry in ethane which AECO prices? the just recovery you Thanks. work? trading are just Hub. way big AECO Will about any Bakken

Sheridan Swords

gas at The plant. we Michael, the this buy at is Sheridan. way gas the alternative

what sell ethane gas So we look in we Belvieu. Mont we go sell gas at the and versus plant what could could at

get. we plant the whatever what gas receiving, And can that’s so is

plant. in AECO receiving gas factor an price the what gas So at the a is price we’re

Michael Blum

Thank you. Got it.

Operator

Colton Tudor, Pickering, & from Next Bean, Co. Holt question

line open. Your Please is go ahead.

Colton Bean

morning. Good

and half fairly fuel expect in pretty level third of up of moving services. mentioned, then any back the NGL the run you drivers rate three step for party an is the Do year good segment of So those or QX significant had costs. you power I in the forward? think improvement Of a

Pierce Norton

there the think a volume. power were couple Well, got you just Colton, but a dynamics I XX going are really million on had higher, referenced also we costs more

the also outside frac in there. had as then quarter, moving some the more well. So quarter, power a you go which get turnaround there had and capacity second in just it caused to we us during And that’s

some – more time. be just will one costs of costs will power those of as were the moves some costs around. float other But So

So more that’s We’ll that and more think as typically project in integrity like better. the we forward, turnarounds other expense type do going of weather do is when work. work we the work summer and

of see might you perspective a stronger historically, from those a So activities. the summer little in on types cost

Colton Bean

any I now that is then discussion, on the Understood. upside AECO up if ethane it bundled Belvieu to less that if rate the Just than of you like, been incentive – this discount gap just have you sounds And wider between and previously. pricing Would quarter. Bakken the would’ve with following expect Mont a rate? offer it to mean, you

Pierce Norton

into lot a that. there’s that of go Colton, factors

Sometimes it impacted, it doesn’t. sometimes

half we the ethane think – the we think good we’re I more to of have opportunity a year. incentivize second in

we’re due come base So where that prices, gas it’s rate it affects bullish volume kind the overall very but but average on business. on the to escalators how regional we of on have that, depends our and the

Colton Bean

the Got it. Appreciate time.

Operator

Chen Theresa from Barclays. question Next from

Your line Please is ahead. open. go

Theresa Chen

in the Hi. wanted ask million what rates. the us to to on I and is related forward? carry to higher precisely average was you fee expected that increase tell segment to related that just $XX.X NGL Can first

Pierce Norton

mainly throughout we the those related fuel escalators on to coming and year. Yes. power inflation, was and inflationary do escalators for and have inflationary both That

it increase. So will anticipate we do

Theresa Chen

in the Should settlement increase expect we to base due And some of you. during a forward GMP $X.X result? Thank your offset Okay. million the the sort going earnings segment, and as quarter. contract

Pierce Norton

It’s No, believe portfolio course normal just our of on you’ll don’t offset. any business large see I mix.

see offset. So – you don’t any I won’t

Theresa Chen

Thank you.

Operator

line Next is from go question your from Please open. Sachs. Michael ahead Goldman – Lapides,

Michael Lapides

congrats for you my guys. question Hey quarter. taking a and on really good Thank

volume the at volumes, are either over about or about as kind some or frac year processing sixth so you how curious the Just new a July for next the about forward, thinking think going need needs even of given commentary Belvieu? of you infrastructure

Kevin Burdick

and Bakken. the is Texas expand capacity volumes think that with grow to we’ve the headroom available last nice Mid-Continent, Demicks excellent coming of of need is that’s that some we’re this I pipe. several way Elk gets where to we’ve tranches. you that currently really the is us Plenty get Lake what’s talked than going mean, then talked expansion going remain Medford. got Medford up, we’ve on about we obviously But a expansion months. shape cost when our there Kevin. in tight in West in good I Michael, capacity on as continue opportunities III about frac in Creek opportunities capacity on for at. on can think that shape to we And demonstrated, think low that, just that the exists we on if got expand in out We’ve We and until as at capacity we’re going clarity we other what’s with about and we’re our capacities pipe as

Michael Lapides

budget – free the a are Board a potentially, mean, that not But volumes XXXX, significant might which ton, capital kind how’s uses any that of development that the capital you a upside. How need always are if So for generating I really there’s not surprise allocation kind of year? in you the of some then, there’s surprise. implies declines of not material need be cash if and flow really next that about Board new could how to and the any asset thinking

Pierce Norton

levers look all is this at that available look us. is that’s Pierce. the we So to we The that way at

ratio, that to X.Xx our open below other the as to on EBITDA on going and about we closer debt we’re be continue we’ve to as payout mentioned XXX% to then ratio that’s we had some looking what closer get go us the elements Walt those up of in the past. So going actually to at to had

deploy us they going because really these focus opportunities Of that on be course, rates us first really, gives our to good of to best the return. chance organic give is capital

that predicting of to ROFC up. go We achieve, is proud going are continue we able to that our to are we’ve been and

what use to give the going our like, whatever do just that most to is flexibility shareholders. us think levers I So bring to it’s we value feel more

Michael Lapides

it. Much Thanks Got it. appreciate guys.

Operator

of America. Chase from Mulvehill Bank Next question from

open. is Please go line Your ahead.

Chase Mulvehill

again, come or Good questions. just side morning. if the and to guess your is guess exposure me you wanted rates hedge then I’m the and just about of in I XX% what of GMP this exposure business, remind there, us open the how back to tie commodity GMP those And versus maybe into of versus back year? and on just XX% to have few half wrong think the you’re a maybe I thinking I I POPs gas then NGL correct year. And the realized POP much today? kind

Kevin Burdick

this Kevin. is Chase,

right. information You’re hedging the in our provided and in Q provide We the we’ve come out that past. that’ll

So significantly up able benefit aren’t are that have run those and hedged, been prices well pretty those to but contracts we for that we’ve that for of part – the hedged.

improvement seeing. are So that’s that’s price what other you’re just the what contracts. the thing And driving is also volumes on what

benefit from higher So and been contracts to we’ve that. been fortunate case, POP to this have some volumes come able in in on type higher

Chase Mulvehill

fair a open volumes natural as of Is that gas lot to NGLs? opposed were XQ in to assume it your

Kevin Burdick

Typically most an – similar way. in from hedge open got a of we we’ve our perspective, commodities

of have going a not to you’re NGLs. versus crude necessarily So versus natural hedge higher percentage gas

Chase Mulvehill

at go and today, in we go they volumes a day. April, If look of where said, are day. and NGL doing you kind All up Okay. the to and XXX,XXX think you I a section back right. If look we were back barrels XXX,XXX

are So levels, but to back the yet back Rockies GMP actually volumes kind to of April levels. peak we’re in not peak-ish

back So quickly that Is XXX,XXX? and to should connect else, we dots kind kind there that the of Medford related help something there. pretty is or me

Sheridan Swords

pipeline. will – to said, this the off came We highest at And announced is as we quarter Bakken we and August, get – first July in we reached Actually that. higher had our higher out even monthly be XXX,XXX, trend the think average Sheridan. we are but than into had trending that had I an XXX,XXX XXX,XXX. we we’ve continue average

the Creek were we the in quarter on an in we even quarter, first from pipeline, Elk than or further back NGL fourth So perspective XXXX. are the of

Chase Mulvehill

Okay. just apologize. to Last one, more and squeeze I right. one All going

you want when loss. at seeing bring Just is online. obviously But like, It just can sounds trying I want and a this. it – to you’re confirm that out looking figure not to total Medford back confirm it to

You it loss Correct? a do point. total not see as at this

Pierce Norton

at I mean, pieces way are I looking now. say we to Well, now the that is all the that would facility right and right parts

what So weeks of to are the usable as over not. or we’ll that still are assessing equipment be exactly pieces coming

total can’t that either it’s emphatically or a we loss a now total So say right not loss.

We’re assessments the of doing that.

Chase Mulvehill

Makes I’ll it Got Okay. back. it. sense. turn

Operator

from question from Next Brothers. Shere Craig Tuohy

is line go open. ahead. Your Please

Craig Shere

on morning. clarification Good quarter. Congrats One Medford. the on

get but third-party recoveries, for So fractionation as expense opportunities limit at something’s least as far doesn’t you new things this contracted, optimization kind insurance or resolved? ultimately margin of that until were

Walt Hulse

I that are Craig, And entire believe sorted got see we’ve under out normal don’t our we earnings guidance. Yes. business for difference that how business our be coverage. our – in insurance interruption from meaningful a that we would think really

Craig Shere

and apologize. Okay. this ignorance expressing And is my maybe own I

gas Given assuming of seasonality the kind more of round I’m increased storage have fill. gas storage and a to storage has that versus pipes is steady product pricing, year the more storage since

pricing, in of capacity the the that’s your and improving position gas height if seasonality? case, reduce terms So storage does

Chuck Kelley

their do way What Craig, combined fee-based firm customer storage customers, we for contract is our this transport the is spreads Chuck. No, tends with contracts. to optionality. see are and play utilize seasonal the frankly and these

year. from we’ve the got pipe throughout earnings fee a So levelized standpoint,

actually variability optionality the so the pipeline. but the customer, So customer, comes pipeline, not the from the not from

Craig Shere

Got you.

impact the contribution of increasing doesn’t storage seasonality. So really

Chuck Kelley

that? repeat you Could

Craig Shere

looking and the the seasonality any more that that attractive the So pricing of impact question? is doesn’t amount you’re increasing the on storage have fact

Chuck Kelley

Correct.

storage online expansion storage that XXXX in in in up revenues step another of where higher we’ll an see in rates We’re expansion online our step the a April. additional on came And have based seeing revenues. up you’ll our come April and

Pierce Norton

I’d add thing is post of to the is storage Pierce, only Winter that, increased. value Storm has the Uri, Craig, So, this

customers do But basically seasonal that through have them. we winter ready so the that during and every benefit are gas they getting into And their that have storage December pull that single that that peak from goes lay during month summers putting utilities also March. spread for to have we demand

Craig Shere

Thank you. you. Got

Operator

from Next Jean Salisbury sorry, Ann Bernstein. from Ann question from Jean Salisbury,

is Your Please open. ahead. line go

Jean Ann Salisbury

options gas long open enough is of out will soon XXXX, on end, think seems movement for kind a constrain of Hi. the looks Bakken? which there Do good morning. but takeaway back from season It it that time been now. not of targeting they’re to out growth has you like like the gas some the be

Kevin Burdick

we of I think smaller that good There’s timing have that scale have gone a things on about that. is the Jean other Kevin. Ann, this some Yes, more feel up there capacity. little created

lines that can million, remind of displaced million still, gas we you, of would So pretty Bakken. kind I gas day out well that XXX our up outlook there’s volumes we be XXX where with timing Canadian of coming of go. believe think the a the

may so there’s not there capacity there. And it’s just that’s the on that like surface look

that In addition, reduce you we’re wrong MMBtus the to tight we’re you pipe. little we late, ethane can a or always bit say, get and go the always, I into we’re if can recover

So we – we’re all feel where in all, good we about at.

Jean Ann Salisbury

continues, trend or participated That If in. do has trend makes has a companies, GMP on the which negatively? there sense. Gulf your close really potentially ONEOK Thank it Coast rates impacting been integrated midstream this see not your NGL of you. And you buying companies,

Pierce Norton

some the of ones. but on get pressure the basins everybody But the the right for in Well, us Yes. details positions our volumes? in based assets get the with of a I the downward on the and margins let the lowest that believe pursue we I’ll that we we Permian, as that far things in to as are that have it’s in some this, thing we other our – I think the it positions I’d that see into of have mean, rates are the our future. mid-continent remind Kevin could

as future. you to to add anything material that? the that we Kevin, in as having impact, got really So see a don’t far

Kevin Burdick

take that us. No, those things, of some of they a obviously, I’d transactions, look we say with just just fit for a been a haven’t lot but

out term the and continued that rights. things of me left, bit volumes system. would that our One LPG we who I to of have many there them grow kind of taken with contracts on of Texas have those quite have is are West put producers a could Many

the processor volumes those is we will with who So stay believe regardless us.

some So the of dynamics that’s other play. at

Jean Ann Salisbury

very helpful. you. for me. That’s That’s Thank Great. all

Operator

from Seaport question next Sibal Global Sunil The from Securities.

is ahead. open. go Please Your line

Sunil Sibal

volume thanks all morning, on Yes. folks. the And clarity for the Hi, good trend.

of bit what on had what CapEx me the about inflation costs for talk year? little budgeted question one terms versus start at trends kind side you of a you building things, So of could in seeing the of the you’re

Pierce Norton

perspective, a that on, were From before working purchased anything pressure had been MB-X than services projects, more the the Demicks about cost think outside ago and paused. Yes. equipment on especially we our III years projects. we’ve seen cases more probably as projects we In many were for

So we lot of. of taken care a had that

schedule and a impact as equipment that or On just we’re much a new on the the than from perspective ordering new timeliness materials chain ordering supply we’re probably perspective cost.

dates some staying are hadn’t our we’ve closely of obviously projects those approved of amounts our and on the of things impacted or that watching top dollar scheduled for. these any got So we’re

of very budget that So we on top on schedule. still feel on good right we’re and

Sunil Sibal

a kind a of bit I question sequential I differentials. curious seems Okay. Thanks at for commodity QX. about you decrease thought And for correctly? line your like, I called me, differentials then NGL commodity widened reconciliation, price price versus just looking QX And million segments that the it XX out that. housekeeping item? out from in one had Am the was that in little

Kevin Burdick

that’s Conway commodity. just that’s Yes, with by our we different Sunil, this as is storage, to in just with – than got Belvieu per we’ve between assets make money delta prices and and opportunity the an Kevin. sometimes assets have and

and prices different around move compare how sell how we commodities different in So how the we of barrels barrels.

just it’s of was But system. business. million part in how lower our our than first we’re all quarter XX that of in than in first the optimizing that kind that lower – of is the part so And sequentially – the

Sunil Sibal

anything that And to second for of year? the into this Okay. half from read

Kevin Burdick

bounce sequential bounces comparison. quarter-to-quarter the that No, that’ll in just – around

Sunil Sibal

Got it. Thanks. Thanks for all the color.

Operator

question from Next Advisors. Carreker U.S. James Capital from

is Your ahead. open. go Please

James Carreker

the Hey, thanks question. for

about they fracked? pipe there’s outage get down were in NGLs Mont that down outage there’s sold barrels more, and incremental Belvieu to Belvieu into those just Mount sold to sufficient with making that largely Medford fractionated some or Conway, there the sure thinking Just capacity to move

Sheridan Swords

Arbuckle barrels this frac Belvieu integrated And being that our complex, we deliver Belvieu significant brought frac online get James, We with had the frac because Mont had down, designate that know from into upside. by any can II barrels. don’t we system, extra asset we with barrels we for Mont of complex. our – just of capacity can that these the into We can we sell where mainly on is Sheridan. our it

can the purity any through to to, purities the that coming coming to we’re as the And to raw frac. – as off system down Medford use we have if we do Belvieu. off system feed able the Mont don’t Since need have we purities So don’t deliver well. much we

have little on bit capacity a We that. extra

pipeline perspective, getting Mont we good feel about into So product from the a Belvieu. very

James Carreker

there? Thanks And this now continues one maybe Gulf on volumes bundled follow-up, Permian I earnings that other presentation, any saying than on trend greater your what’s maybe rate but noticed maybe you’re it’s approximately that. is minor, guess prior $X.XX for on just color a going versus $X.XX, on or Coast, that

Sheridan Swords

escalators seeing up we’ll have I see the of our and a tick because rates a we Yes, that system. it, inflationary that our of on think bit, lot you’re little

James Carreker

you. Thank Okay.

Pierce Norton

you. Thank

Operator

is I’d conference time. or closing turn no question additional at remark. back to there you that Andrew, appears Mr. like this further to any the for It

Andrew Ziola

November. conference a quiet you details we for books call and all joining in later close and extend third when good Our we’ll starts we a day. earnings our provide us, at for until period October release for the have that We'll quarter Thank date. in early

Operator

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

You disconnect. now may

ONEOK (OKE) 9 Aug 222022 Q2 Earnings call transcript