OKE - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to ONEOK's Fourth Quarter 2024 Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Andrew Ziola, Vice President and Investor Relations. Please go ahead.

Andrew Ziola

Thank you, White, and good morning, and welcome to ONEOK's Fourth Quarter Year-end 2024 Earnings Call. yesterday, our news outlook. XXXX closed XXXX announcing markets and results guidance the we releases issued our After and XXXX materials website. our are Those on After to be management our questions. your available prepared remarks, take will

should harbor materially this XXXX. during Actual XXXX forward-looking are include or statements that Statements from the in be the Securities statements. made forward-looking safe call considered by and differ those of ONEOK's projected results might expectations could predictions provision covered of and Acts

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

limit for to in Just we as we a reminder Q&A, fit to question ask many follow-up that a you you as can. yourself and of in one order

Pierce? turn With the call that, Executive President I'll Officer. Pierce to Norton, over and Chief

Pierce Norton

you is President Also of from Swords, Relations and President Executive Thanks, us. Medallion Hulse, and Executive and us joining Vice Walt is to Development; Officer. we and Good Commercial On Investor Midstream, joined Vice Vice the Chief Financial call morning, call and Officer, on welcome Executive Sheridan Randy Operating Chief Randy team. thank for President him Lentz, Chief Officer. and Corporate Treasurer, today's ONEOK today the Andrew.

year higher businesses acquired continued acquisitions, in XXXX. XXXX announced and products multiple oil crude synergies refined and on driven fourth we identified from quarter the volume by contributions Yesterday, execution earnings and full strategic growth in our

outlook. We also growth announced XXXX XXXX and financial a guidance provided

driven earnings expect volumes. we XXXX, expanded growth strong our projects operations, For higher by completed and

our midpoints. and additional those outlook XX% EBITDA the approaching growth guidance adjusted shortly. provide XXXX For growth guidance details earnings greater we Walt with per compared and growth our share will on growth than outlook, expect Sheridan XX%, and XXXX

regionally disciplined footprint. years, across product on Over expanded diversified our value with ONEOK growth and more our has on executed the creating offerings service delivering unique past and opportunities strategy, intentional our X

that in advantage. better leading to transformed We've stronger, play more continued multiple competitive and even role our ways, few contributing drive addition. enhance of further on believe I'll and company it touch to key resilient will positioned a in we areas our strategic success our energy a making these

we've both We've crude pull refined in extended our product drivers operations, oil supply demand and our and added and mix, versus chain the Basin our Permian Louisiana. diversity. integrated crude significantly oil our push expanded products we've significantly First, terms geographic gathering transportation grown integrated of presence in and value and in to

our scale basins our our approximately Second, centers. market we've network The scale various market through and pipeline mile added significant and XX,XXX success position key with connectivity now integrated further operational producers, enhancing cycles. ONEOK connectivity strengthen for across and resilience

an integrated announced exports and growth natural enhancing market solution base. asset prioritize product and extending Third, we expansions pipeline our in Basins, Bakken will With added customers fractionation we NGL pipeline in we Key our storage capacity opportunities expansions to our Permian NGL in continue venture now expanding wellhead-to-water joint to expansions the projects service the NGL into Denver organic additional and provide our MPLX. Belvieu Mont with and even products Most LPG an and included recently, refined export Texas. LPG have Oklahoma project by mix, for gas larger Mid-Continent, offerings. the

regions development. traditional operations LNG growth opportunities few. name include projects expansions and basins, assets, projects they and span innovation, pipeline to our the acquired a across to debottlenecking demand, data are prioritize project to to continue additional various across additional we in AI-driven Numerous accommodate infrastructure projects and and opportunities. for natural facility optimize our recently in continued by gas and and driven interconnect Examples remain key These Fourth, demand centers just commercial and include and unannounced products, across service of development operations. projects customer growth stages synergy

to projects Finally, committed dividend, invest returning financial including and sustain high-return to We've our XX well of grow years growth begin to our EBITDA our EBITDA over share investors. and adjusted maintain we guidance growth it is authorization. in our ability ability just executing consecutive years XXXX long-standing repurchase adjusted meaningful remain We've and double to our value proven was provided on flexibility what ago. the X

and All employees. doesn't and enabled level of this doesn't innovation happen occur growth of change Their of safety, extraordinary the to these continued operations. dedication growth and our across it the will of and value successes focus scale our meaningful additional to and without transformation and ONEOK's overnight, on happen service continue drive has

Walt it now Walt? their updates. to and financial provide Sheridan I'll over to turn and commercial

Walter Hulse

Pierce. fourth you, then and $X.XX we and or were Net line overview outlook. quarter a $X guidance 'XX quarters increased totaled performance share full year our I'll XXXX XXXX XXXX. our and start brief move guidance or full the financial results totaled quarter in of in of million that billion both XXXX attributable for with per the and year. income Thank our with $X.XX and per expectations first third to onto fourth the $XXX in share ONEOK

quarter Medallion Adjusted transaction began $X.X of the consolidating for than EBITDA million $XX $XXX nearly full EnLink billion we related and billion EBITDA and and $X.X acquisitions the totaled October. year. costs adjusted These that include of million in XXXX the fourth in results more to

hand, we borrowings had cash in commercial XX, our no agreement. more and under than outstanding As on $XXX outstanding million paper credit December no of

rate annualized was XXXX Our fourth debt-to-EBITDA quarter ratio X.Xx. net run

$XXX repurchases. quarter levers ability demonstrate $X.X allocation stock quarterly through We increased we X%. in of January to and our of shareholders in capital billion by continue utilize XXXX, XXXX repurchased the and our value to by nearly returning fourth various million We to dividend in dividends share

on moving guidance. to our Now

earnings we yesterday's in volume XXXX and Pierce a detailed As and addition announcement, mentioned, financial outlook. growth to XXXX provided a guidance

an share repurchase This to course not divestitures. billion $X expect the and in Board increase when share we compared XXXX, of over transactional X% related onetime midpoint For excluding years. these earnings remain in on few XXXX share an $X.XX next include program does guidance as with we our assumption XXXX, per to a costs of but approved items repurchases, executing for EPS such committed

EBITDA adjusted perspective, guidance a excluding growth higher costs acquisitions, recent XXXX transaction growth increases to XX% of adjusted $X.XXX earnings. full EBITDA and increase and from an compared million fee-based production drivers in in earnings XXXX. approximately with XXXX driven of completed by From from projects our $XX earnings billion, include of expect Key we year a volume in

XXXX. $XXX commercial we've Magellan, Our Medallion already million to acquisitions additive guidance what approximately synergies also This of EnLink. through the XXXX to financial and related incremental realized is cost of our of includes and end

our and assumes includes of range to billion capital. such the guidance a and dock. expected This maintenance to growth As attractive reflects $X.X which $X.X necessary in billion return increases it expenditures, investments invest recently production export projects relates as to our announced in accommodate growth capital LPG range

growth of XX% synergy with is adjusted growth and share include from recently increased Key XX% expected EBITDA approaching Mont greater to products the partial Ship assets than along completion completed of expansions XXXX the synergy area Our the per our the year and expansion projects a Elk refined the guidance and benefit growth a midpoint projects. year the of and Texas and distribution completed Creek Channel Houston Belvieu production and from of contributors earnings outlook connection XXXX compared NGL from with driven by volumes assets. in Denver XXXX pipeline earnings full West

synergies to realize in We also expect XXXX. additional

I'll turn update. call for the Sheridan now over commercial a to

Sheridan Swords

average Thank We product on benefiting earnings you, opportunities, contributed as tariff earnings, refined The a strong performance of segment oil well year-over-year higher refined Walt. long-haul year and XXXX. higher from its saw full blending crude in marketing rates, crude and pipelines. our products first as

segment's Continued excluding segment the gas acquisitions. Rocky intrastate strength the volumes XXXX Pipeline raw up throughput region. services. processed strong outperformance support financial volumes natural and Natural in continue and even NGL by X% feed and up our X% guidance the earnings driven of continues during The demand end Mountain be for its Gas volumes exceeded to year divestitures storage with pipeline to The in high

and Mountain we to feed year-over-year XXXX. the out gas be of raw And to Rocky regions. the growth primarily volumes segment, throughput driven with and Turning liquids higher adjusted by starting expect Permian EBITDA natural

partial the and Mid-Continent. assumed continue have ethane the We Basin of in high recovery levels in recovery Permian

expect contracts volumes and new Permian in the expect to Rocky opportunities the from we see processing continued volume recovery feeding third-party pipeline. Mountain Basin, region. to in-link In Texas plants, incentivize to connected increasing West We plants higher ethane recently contribute also NGL legacy completed and to our

and and is NGL will including Permian contribute our our volume As MB-X legacy Elk to NGL growth XXXX pipelines off move Williston to system. West in and earnings Recently projects higher the Permian years, in expected incremental in volumes Creek future roll than to and of Texas EnLink Basin. completed significant expansions contracts NGL

complete We Houston-based also helping the as acquired in system expect connections Energy our synergies. contributions increasing assets to to us Easton XXXX, from realize additional we

month, earlier to facility joint this barrels Belvieu the terminal. strategic Pierce Mont connecting As XXX,XXX we City, construct a ONEOK's to LPG new Texas, Texas terminal per storage export mentioned and in day a venture announced pipeline projects

currently early us is Our storage XXXX. strategic refinery a by over The new provide collaboration has The our water the operating this timing in MPLX expected across driven access brownfield solution premier NGL customers to and multiple on dock other with Marathon open system. infrastructure including economics, to our enables to location, and benefits scale project be Belvieu. strategic and world completed wellhead-to-water facilities, proximity to existing a benefits project in cost the to Mont entire

oil we oil products Medallion and crude refined in acquisitions. crude a expect our continued EnLink products volumes significant infrastructure from crude refined in segment, driven by both increase the the margins added In and gathering and growth

which refining to center. fill over crude marketing key time, oil areas and long-haul fill supply gathering with connecting existing pipelines expect critical feed capacity We our and will

We the businesses. gas between product related refined ability execute cost blending also certain and from liquids to expect benefits the synergies commercial and continued natural

synergies up online We expect this year. come to of types as these projects ramp

and natural gas Moving to processing segment. gathering the

traditional increasing volume compared have we laterals in X.X producer performance per our and more X.X% need Williston to as Basin documented to producer expect benefit with XXXX all regions our on is Part day our across footprint drilling customers, laterals efficiencies growth of benefit of that without up been for at overall of in midpoint continue and well those growth the ratios connects. higher continue many well to volume well the XXXX. Rocky an by XXXX. gas-to-oil that volumes activity. efficiencies strong the longer We guided in from region We Mountain and of than Bcf from average

into volume traditional in In and XXXX, XX% Through well annual of the to year In with X.X and are day gathering impact be laterals growth Mid-Continent. recent X-mile Projects we of opposed Basin and the strategic volume assets to Bcf with optimize laterals. Mid-Continent, extended assets processing added per as the nearly full shorter acquisitions, XXXX. our underway expect the already to we've connect growing of average our the in and we expect to addition assets. connections acquisition Permian in

are synergies these mentioned, captured in Pierce outlet the As Walt XXXX provided.

Permian processing gas Bcf the volumes at the we per approximately day In expect X.X Basin, to midpoint. natural average

of [ cubic exports a by strong as the processing relocating In plant expected forward, positioned we assets data the completed customers and XXX from our natural Natural ] to which We growth the provide ammonia process benefit LNG expect opportunities industrial of for looking infrastructure continue segment, line sight in driven well from in going million quarter existing gas years. Texas, day Pipelines in in-link centers, coming at and the per facilities. North be are the region Gas first XXXX, are legacy feet demand of needs we and to growth potential to

to Our are for more connectivity per of be direct also XX in forward. projects expansions Natural if provide LNG as projects Oklahoma acquired potential key assets footprint There major and newly customers. across with could Bcf in provide storage exporters they our power to industrial plant opportunity approximately that well demand continue us incremental expansion ongoing than Louisiana. X in move gas day an and Louisiana

remarks. my concludes that Pierce,

Pierce Norton

Thank Walt. you, thank and you, Sheridan,

value for poised and performance success. over strong significant us past communities. employees, strategic for year. acquisitions extended built we shareholders, Through our growth our customers platform initiatives, and to committed continued reach of the potential leaves remain and that future before organic a proud are and we've The the us delivering to our is We

Before cold recent to employees' recognize our to we across our the related close, I efforts footprint. severe want

for unwavering change a drive an of and We're incredible is the and safety to forward our customer stronger want future. always, demonstrated trust with service continued conditions. testament to organization. the teams This resilience I delivering significant regardless to Thank commitment journey to dedication in As as employees your make of excited safety year shareholders our reliable our to maintaining and and work and our of in all our our people. growth. their and sharing passion hard that another It on the dedication thank character the challenging focus of and throughout and for you commitment ahead look is us their about success you progress and support. service

now ready questions. we're for Operator,

Operator

[Operator Instructions]. the first Theresa question from And Chen come Barclays. with will

Theresa Chen

to some be the like color it provide pricing share on details XXXX able you and to assumptions are point? guidance? contribution, but can you of XXXX this details other bridging by Would behind much volume is or and additional driven project there around synergies Sounds at

Walter Hulse

and and assets channel. some of seeing we've other XXXX Houston Those of primarily what XXXX. is capital been we're the in in start the assets, spending to Mont that benefit full -- our or Belvieu Easton get all the benefit up that into Theresa, really here connecting Well, we'll XXXX, projects synergy should benefit. the the these down later of early that and in see contributing get We'll XXXX wrap completed so

last time. investment phase at of this is So a great coming capital

Difficulty] [Technical

Operator

appears by while and Please speaker we we reconnect. Thank connection ladies it gentlemen, to me, lost our Pardon you. stand have line.

And Ladies and are Theresa, a asking may gentlemen, you back. the were ahead, question? go I believe speakers you

Theresa Chen

on organic unpack second question, project of just more. Yes. want wanted bit a your move little If to the to X backlog to we I components

MPLX JV be behind speak how the the with the incumbents On and will economics? you your to versus exactly side, ONEOK can export strategic LPG competitive and MPLX more export on benefits

can secondly, then expansion? project? capacity like product actually Denver up send within are significant much And the you other initial what additions the XX-inch pipeline your the XX,XXX barrels portfolio, beyond refined day, cost given of there that the And per line pretty how

Sheridan Swords

with the Yes, start dock. Sheridan. I'll Teresa, this is LPG

location, strategic on you companies. could to a this MPLX great are strategic collaborate location. for with projects say, We our excited partner both And like location, really, is rationale

-- location, The before, first open mentioned open reduces access this site, within next have We're better the I than in is brownfield of location, significantly area. to to an a cost It refinery. Marathon's of other their the a location we this lot we is, as greatly docks there the we're have where at waters. because venture. the other infrastructure construction This that waters

get I advances day. time, easily XXX,XXX into today compete storage this as we into can our NGL products project into as with can beyond water be to I -- both barrels their we've forward with And and can marketplace evaluated comfortable system our grow the been And intentional [indiscernible] for then we years. this really this -- the wellhead our we've looking a obviously, time, type this strategy to entire at And at a well expandable location X that go the there. dock been sits and we across And the a for how this where are dock where we with to pipeline system. as it able a long and actually we've been disciplined as project. project going over of our we're as mean mentioned, our about and

So we and as about the compete to significance and that's marketplace as think dock really forward. how in strategic go the we we this continue can

put efficiently Denver that And to But about a a up said Obviously, talk pumps anyway, a Denver the As a all can grows lot volume we by barrels barrels going closures. on we've have is that that as commitments way we a to demand. if a capitally that XX-inch XX-inch day, more move XXX,XXX that. refinery needed, supply get capacity area much as more from we forward, we pipeline the expansion pipeline day. increase expansion, the so or We adding up of as than area in as in can demand the pipeline. XX,XXX disrupted the depending

Operator

America. And Bank come our of from will next Jean Ann with Salisbury question

Jean Ann Salisbury

uncontracted whether Theresa's seems about that as question economics on just the uncontracted getting rates exports LPG are the dock. in fall meaningful that spot Can share numbers, a export could assumptions to significantly. you a speak projecting? guess capacity and you for the your and whether LPG I you're rates, view follow-up your overbuilt like just about contributor It

Sheridan Swords

control is we in Jean Permian, pointing we coming think today up, market. you is we dock I as tell as dock. continue entire able across significant other -- we be Ann, the significant be see LPGs to about of will once on of would growth already amount amount dock. system, that on we of a to at out And this especially is coming what docks And the this XXXX, we to volume LPG come look the is that across that a the going our

share be well don't the we the get this be we that So XXXX into up, time it. be very able out we'll are with frame. going overbuilt when to When view compete to docks will dock that

assumed have our We not rate. spot on

our have any We that market spot we've volume included typical economics. in rate on a assumed

So what we nothing what in line today. that is with seeing seeing are we're

Jean Ann Salisbury

helpful. the That's creeping what but X hearing most are flattish, you're gas gas we looking in that in the next of Mid-Con, is could couple high then Haynesville material the think counts I gas price And bullish for up over the from Mid-Con, things enough growth the you which see been anticipating? next years. customers, from in don't that strip maybe in Okay. the has Rig year do or think are

Sheridan Swords

our increased driving conversations and drilling we Mid-Continent. and our that definitely really as customers increased forward the to one with that's seeing producers. else, in outlook talking we've things our of rigs activity volume looking as is Mid-Continent we activity increasing the the are are we is Well, look And in in the seeing our everything been at rail

little from seeing the -- gas you a price. on are the up I of So an bit there think gas uptick seeing

Pierce Norton

The the that a is LNG. conversions. to X that seeing mean industry we day that only capabilities this expand go tailwinds Bcf Theresa, a Bcf around Bcf then there. XX coming on demand we're you thing That's basically coal expected on yes, Pierce. from would export just have And could to But to plant somewhere in the of -- Bcf add out industry. but X brought to I recently I I is XX projections the still different day.

going to around So is gas gas to for the growth with all that of XX% natural the That liquids. demand natural in in XX%, of maybe kind plus somewhere point future. comes

think I So that's well. to going prices as with the help

Operator

And our from next with will come question Jeremy JPMorgan. Tonet

Vrathan Reddy

This is Vrathan Reddy Jeremy. on for

For well CapEx guide, the connections you connects those synergy-related as 'XX capital on and bridge your X spend opportunities could in help opportunities? projects such backlog larger versus us the smaller --

Walter Hulse

to that question. Trying was is Walt. to going take who This decide

heavy have period, plant as build a projects concentrated is in of We at up acquisition. being we of in down the X Easton phase. addition the The quick Medford stage Texas, spend reasonably which its The move North and and during the the which Denver pipeline, also that the that frac, forward. larger kind kind is of moment in we're wrapping

good We'll project intensity that's 'XX. back of Clearly, year, in the dock as focus this on, 'XX kind well. kind after into ramping of be years that spend out a away. have the capital a of rate So in come some those the the stride next will of projects of towards some in half and you But being we'll hit there that. couple up of fall as the pretty as get getting

other like, are the spending lot return high been really projects extremely and A synergies So we've the be enhance product that connect that we're of the NGL ability small, and that's to of around really capital they to gist efficient very like. activities the the the blending in and products to on the move around to system refined more working the system it.

way going those we for So singles to doubles those kind build out 'XX. as 'XX and are coming of synergies are across to in completion, those and additive the and be

Vrathan Reddy

XX roughly power materials your And across Perfect. the centers. potential then expansion including highlighted footprint, data plant the projects

ONEOK's on commercial the strategic you if an portfolio progressed positioning EnLink how provide now? development can that's curious with update and and Just in just

Sheridan Swords

go Yes. further good This are than especially some these -- And Oklahoma. to our draw is so same say, and we're others. and in network to close are thing from our all transportation we that it's Texas supply we very at Oklahoma cuts I able centers would Sheridan lot stages XX being forward all with on is look that West in assets we data that advantage that competitive talking to sitting plants that really along down to what have a to, think we're the Texas the different out is in of at we different costs of when able again. system We OWT do the obviously, be a and and level as area integrated

United that. progressing, Pierce So some progressing of We're them There expect, mentioned, you of and that is, that across Bcf States more somewhere X, would about X on between come of about -- we're -- all at, as not play. the XX%, X only are are we think into as that working than done. look demand we are demand some X others looking get will will Bcf is of we're that kind

we're fair a share centers. and have of we're going the very at our volume we're to of that confident going get So from a data to majority look demand

Operator

Wells next come Blum And Fargo. with question Michael the will from

Michael Blum

to about Well, an 'XX. ask you're a XXXX directionally, big just I have here. estimate CapEx. not pickup giving in I But wanted you realize obviously,

the scale the this of a company? and rate now, size for company larger the new of is kind run Given

Walter Hulse

Michael, this is Walt.

spending a higher seeing definitely. have will the some been I it you Medford I we and that think a we're those new capital Medallion here to as sure it clearly, see want and kind some we? the continue completed synergy EnLink think of it and prior project are that up off Denver a to that run 'XX. that we come acquisitions. our and been we've baseline We to have as higher of the and in definitely will of wrap full larger But down entering. make markets in will come is rate, some As peak swing. for make company, we we that Will than of that 'XX But sure customers have the be in our Permian capacity would over available into 'XX the definitely

Michael Blum

ask Okay. a set level synergies. to on And then just wanted

sort you us if had say, you're for for, called original just are clarify $XXX specifically, laid And just can your then you where incremental synergies Magellan, of Medallion XXXX? wondering Just that out, tracking this versus million let's that that is and Or laid number targets saying is originally you out? EnLink the you to the for what out?

Walter Hulse

Yes.

XXXX, in of Throughout year, had we the that would we that said that we exceed amount, we we have clearly that have. So signaled million originally and would $XXX synergies.

You been what versus And a of at that results have definitely RP&C seen starting 'XX would a range. benefit can the in from come for some home. 'XX we've look to

Magellan additional that into And had be XXXX. is million We $XXX said so there related than headed an to we million would as did we the 'XX. $XXX in it better

those we're layering out that. another planned Magellan of in so And achieved in on of that we Recognizing have XXXX. XXXX some top $XXX may original million

it So a to product the the continued teams doubles and to optimize that singles speaks new systems as the gotten up those together open see do we've have refined increased and really NGL lot opportunities. and of I think to to opportunities

Operator

will Manav Gupta And the come next with from question UBS.

Manav Gupta

natural products to billion Like liquids you end those segments? the and $X.X refined guide, the drives towards On top can respectively billion $X.X the crude and us and could understand of for X XXXX what XXXX your get guide, gas help you for what in especially segments? you

Walter Hulse

synergies. is think as because some we in timing when I these at that bring some business it you of of the look of the

smaller connected, we producers, to As have commodity to gas going while quicker. to they prices or But there assets on we're do add producer to as see that continue activity, think our strength I million I think add home do Clearly, can that front. a opportunities us rely but the just EBITDA, team not bring only optimize up going increased help to we we in pretty get you are out bunch earnings quick. prices that certain for synergies, may have as are they on $XX start a if of they to million, be those opportunities continued here, able be and can there our those innovation to $XX look they them of to

Manav Gupta

now is there follow-up are operating seeing, EnLink, Perfect. did that the My you you're not quick Medallion opportunities which with did see any deal. that are operationally and when here you you actually earlier

So of you little like positive kind about Can deals? those are talk these X surprises bit a positive any of surprises.

Sheridan Swords

and out. as working This money it, we continue, start opportunities when these with start run we as to the is and and boiling When looked really people operating people but could saw be say would of and I Magellan, assets we as we went really each the that assets other continue And they at we Sheridan. we go we didn't that there, going together, the we to you we our was predominantly we the before talking know from. were bought we getting we get the -- where forward. start those think we make of together thought what and synergy almost just can knew kind they bought of people kind knew scale didn't to what with when Magellan, to come

has G&P system. that between or was get we to there, gas that good NGL is, knew been really where We Mid-Continent efficient NGLs more systems opportunities for supply. bunch there big a but more that plants quick there get fast gas our connects for produces We're the our we seeing can can how a in up how X of and

You get down into the Permian.

we'll we were put to away in been oil go able that able be crude long-haul oil forward. helps area, that very The pipes. -- quickly to to right We've our has put about, to able able that talked market excited You do to we've into crude to phenomenal. more really us ourselves about to which being speed that on position been been

crude in-link to didn't we of those things or consider a that to we've positive go system was our a for found been just to that then between even as have they Medallion oil different had mover systems opportunities. crude ways continue we And forward able system oil us connect really even couple is things and simple our really synergies just be

crew EnLink medallion to driven truck been wellhead. by terminal to locations were closer crude by a lower it we've an We just the our lower trucks that trucking to crew able was bringing have that that -- cost driving,

we do as can the end ones which So we new these Magellan how as come mentioned, this. to guidance with how together on get we is find see is the fast is XXXX how we to -- what higher to what together Walt with acquisition to we put the the of Medallion think -- about saw continue before that. and saw And get the continue teams to we

Operator

question will Research. from come with Wolfe Keith Next Stanley

Keith Stanley

first Just synergies. and a follow-up on 'XX the EBITDA outlook

incremental million this XXXX. of lot $XXX year. said synergies year? you number sounds provide incremental like can on So It this coming versus synergies are there Is for of you a the a projects of

Walter Hulse

for of or where Medallion Magellan should they're little the is or path bit start But some acquisitions get guide kind supply blend them just to synergies buying easy we're At a going point number. synergies this into of baked legacy EnLink. that a to companies our it's chain at in to, together specific I this as to down would we the not When point they're what with together. we multiple synergies say We're Yes. of identify type further less point. to to whether ONEOK, time, outlook opposed X

to some get So kind just and those net we're seeing benefit grouped the a together, of company. of

are identified we in those more so continue synergies that what have that it baked know today find and going and point, closer outlook 'XX, into we that So with number But at provide refine to when guidance that number, we're to to just try we leave 'XX. our we'll for to is today far. this at get we as actual

Keith Stanley

M&A, thinking contracts particularly returns in in it strategy maybe exports, sense then you place? your organic how expected in just are the or facility, And on affects growth the the this or separately give you on and how export today. have on a And of can Great. once Permian, about facility you're that place project

Sheridan Swords

our most we system, is touch that the we We'll the the are one we barrel that integrated in value this as producer can times to our be we to our this in stop be across. critical Permian end competitive can way, continue customers, to feel in our think the we more can integration And many bring as customers. at we bring to or one one a that is is be start leg with all strategy areas just and able whole more not to across fully the to just that it's to

a see as We continue demand go continue lot of to forward. for dock we the to

teens suite we this Our of offer play can economics the are do as we're we be mid-teens and are many the a as of can high is project our full able right customers many producer so it's more to possible. continue trying go going barrels we the returns offerings that's kind of to But times an to in looking as what touch to is like our integrated that on touch to times be our it -- to as integrated to now. barrel --

Pierce Norton

Pierce. is This

I continue about Permian. is we're way bought be integration had we've of footprint. that and particular, so far, you synergies M&A, that to focused focused the The we on I the in answer a those realizing on companies that think across would that the in question

but usually then Having those be is the public One is to there that said some to on of transact the in look we're to But not. that, things or of be or disciplined going probably one is future. best to on approach will seen be market a public. is through our future it to whether the not the ways at coming going come be opportunities. there's chain, which equity And we everything, way the the things all couple that market. We of strategic, M&A private other and intentional in

Operator

Securities. from question Sibal Seaport come next will the And Sunil Global with

Sunil Sibal

view? Could I NGL so of I'm sure control if to Permian was Bcf around And the of processing you out, how downstream and kind off on in not this approximately the is capacity you X.X of at? is per what processing tell utilization then there. of from side going start much point believe wanted volumes I running plants marketing the that addressed, was of the I things. day your but the us

Sheridan Swords

on the say would I X.X to the X.X Bcf utilization and that. What of

a we the forward. As -- utilized to in today volume North the Basin Permian capacity into Texas down anticipating go be were be we the we and going that as gas moving to that continue the we we have is are wouldn't of out unless mentioned, plant fully Permian Basin, doing that the we

think So that's forward volume XXXX. we going how in about

this downstream West have side to of As NGL sanction we a that. it here we with didn't forward we that, the wasn't lot the to with year that XXX,XXX a for day with that project that to of will system NGL utilization go Texas spoken as need about much pipe, be on on talked of relates continue because up to capacity that in that we of capacity on expansion the barrels plenty that

a off had that that when rolls that majority amount has seeing contracts the system contract, on we're volume of our marketing is And rights too, new what the the the over volume some the -- will system have There significant getting with Magellan volume of that is rights to that that all already control that are time. to on -- have contracts providers. marketing it. have and NGL at we come service And other but we of to place we volume we it, new volume are automatically that they we the system, in legacy the majority that in

Sunil Sibal

And stock it. then on buybacks. the Got Okay.

your in you think can previous me? -- partner I hear guidance sorry,

Walter Hulse

Yes, we can.

Sunil Sibal

Yes.

leverage guidance with was new X.X%. I XXXX. talking leverage So your X.Xx you're exiting And in on XXXX guidance, at about obviously, previous the think

like seems it there. So you're making good progress

So I stock have? that the was of buyback the we think kind how program of should cadence you curious about

Walter Hulse

where the We get DTM, year-end we business where as of we're said, a line goals, and full billion course Well, we a forward. with of to were very had the intention set sure sitting of I -- there $X That clearly, that situation looking large the proceeds at completing in assets mean, the we from the the we buybacks the we of metrics that at make have Board mindful are our our debt to the we go forward. program sale the saw cash. amount over of on

closed As those, year in balance million I mentioned cash we sheet. -- we with before, out $XXX with on the the even

opportunistic a that get final But on our program I as goals get bulk have we of during look side. metric So we'll things from XXXX. and debt in think the hit will clearly, started there the billion weighted to at $X X back that years were metrics we the as be our

Operator

next The Truist Dingmann Securities. from Neil with will question come

Neal Dingmann

same I'm your in just what still my did what their and last lot XXXX. of heard of of I now on quite do all key I as conversations, guess, for a question new guess, at with to just -- the lot expectations of the you've same. for guys based or you've the me, a production wondering, just overall you some And year? these, heard plan have have you had plans least they just producers good give on had some from areas you sort

Sheridan Swords

and going just Bakken, take lot Bakken. a -- above had we the at thought where would that's our we've probably say seeing let's Yes, be with consolidation we would I conversations year what last And or they're of lot forward. the Yes. a producers the in we are the up with

little so bringing going a acreage people this prices would Mid-Continent, different are the we're where as But longer can Mid-Continent, I laterals, more ago the for guidance. our volume producers They're drill that's into little little where a types to earlier would that would all bit bit, in into We're we say more bit start wellhead. thought harder bring mentioned and reflected seeing months our with or today, we efficiency seeing X, a up is be the above are to consolidating of at they system. we come We sure. in also on X gas in

Neal Dingmann

maybe fully No, And to just accelerate and just I'm customer quick that's wondering, are your on EnLink. great under just there now follow-up maybe opportunities wondering just all is control. demand hear. a then also? I'm you looking how additional to seeing just

Sheridan Swords

I do especially focused bring Yes. the are we opportunities. else now out can think, lot plan asset, Permian, in and We Permian of see after on, growing we team excited right new we it. I a there about and have footprint they're out with look integrated that there, RFPs coming mean, There's a on getting of that at, a that's out what our are, this there. highly we we looking out are lot see we what

up be that to EnLink then there, So combination there. Mid-Continent we into of assets look about ONEOK and thinking those and with especially to out across much activity have get EnLink lot a area, producers much a where western able as excited to wider the you serve with G&P, very side, out the we the the expanse see you of

things I pretty together these this put activity we're is to seeing. continue and think jazzed to team all be continue to X the the able with up to grow

Operator

the closing over question-and-answer for I session. CEO, Pierce back conference concludes any like to to remarks. turn our This would Norton,

Pierce Norton

Thank you.

known and up ONEOK's an of wrap the been years, change and in Many service, part for recognize has he's years Chuck Pipelines, energy to Kelley his to I announced President served years. Andrew roles significant today, X be And the progress. missed. of after have important with processing the over through Investor gathering dedicated who retirement. his Andrew of Andrew success XX presence Natural will worked gas individuals you of was Gas years. contributed certainly Vice development and who he natural corporate I over moment Relations, Most and a have the Vice of be in organization retiring Ziola, President -- but of in take service. years XX significantly leadership recently, has after Before want services, our is to key Senior also

number them for Patterson, lasting their worked made me gentlemen have of in our know of outstanding Andrew's on best in join be announce that next wishing Andrew these Please Both role. exciting a that have who many will them impact company. an and contributions stepping a years who chapter. alongside you in the will to congratulating Megan careers very and I'm of into also you pleased on

With for I'll to over Megan now the remarks. call turn that, closing

Megan Patterson

you, Thank Pierce.

books us, and conference quarter be early at and late close We'll release for provide for will follow-ups. call a in great we any team for have fourth today Our in quiet the date. that when Thank details The period the joining day April our until extends for IR we you throughout later day. a starts earnings April. available

Operator

presentation. today's has conference concluded. The attending you for Thank now

disconnect. You may now

ONEOK (OKE) 25 Feb 252024 Q4 Earnings call transcript