EPD - Earnings call transcript Q4 2017 | Enterprise Products Partners L.P.

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Operator

Good morning. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Enterprise Products Partners Q4 2017 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Mr. may conference. you begin Burkhalter, your Randy

Randy Burkhalter

Thank the to Enterprise Good morning discuss welcome to everyone and Products for fourth you, the Amy. earnings quarter. Partners conference call

will Bulawa, Chief call Officer. Officer today Our team Chief senior of today. Financial Jim attendance are Partner; Bryan General also Other Executive in speakers and of be our Enterprises' management members Teague, the for

XXXX meaning call, and by of to make as within on of Section Exchange of will forward-looking well During management we Enterprise's of the this and beliefs Securities XXE the Act as available the based the statements team. information Company currently made assumptions

prove cause that a latest over be are expectations that results actual give to list that differ SEC during can with statements to management that, made in turn that such this Please with will factors the from forward-looking assurance the may in refer Jim to And Teague. I'll be of the may those reasonable, believes filings materially for correct. to our it forward-looking statements call. it no Although expectations reflected such

Jim Teague

Okay, Andy. thank you,

possible thought cycle, rock who the supplies, started workforce globally As taught frankly from worthless. and to of last to oil the XXXX that for in in perform over XXXX oil businesses been highly continues The and market has the in the did prices, be in it about gas that short and we and produced dramatically was three our a higher markets continued demand price industry, well exceed this The growing morning's painful, but press the crude With meanwhile three said staying of years. reliable turmoil abandon, oil previously throughout made about release, production gas the downturn lining. is to U.S. by expectations. have a lesson silver downturn U.S.

in production of our our our the is As record and marine volumes, moving terminal across new indicated by this plants record and liquid that's amount docks pipes growing. pipeline volumes continually and

reach, leverage our model, markets our seeing production, our size, significant operating serve business our systems have significant the we exports. handle all we're Given increases and and in to handle new growing across

our online new we are projects have a and construction. lead-time long several coming under initiatives number In of that addition,

a of record X.X XXXX For flow, provided to Gross record increased from in commodity were $XXX reporting XX% a and Enterprise XXXX margin XXXX, XXXX. reported a higher X.X increase XX% XXXX. to long excluding million to income from billion It's distributable asset proceeds operating billion. retained in the by billion increased $X.X these. a results January like at $X.X for when time last billion activities X.X $X.X increased cash operating" operating results XXXX cash prices. we XXXX from Actually, from XXXX cash sales We in to was to reinvest. "financial been Distributable in billion flow X% record billion Net time billion. much for since flow operating in XXXX $X.X reported in XX% we

fourth our stations either one polymer-grade This Basin been and of producing from and crude began In on has We're market. we grade after export pipeline, and our second began construction construction operating to in complete refining facilities. full PDH completed quarter and service Permian pipeline the which storage facility, expected Enterprise representing be commissioning the million. pump in is moving service $X.X quarter, Midland-Sealy propylene. of running XXXX, During the or to the service Houston on projects limited we

expansion marine pipeline of pipeline, our our and products and We completed oil Gulf Beaumont. expansion expansion expect included last the activities commissioning projects propylene on ethane of month. of another crude in XXXX Other Coast, to refined major infrastructure growth ATEX terminals an in

but to expanding close along in billion full our the under the have $X.X Gulf the natural third oil all opportunities We're Basin service you our Permian to Coast put assets. the the Basin look connect crude another assets and Shin gas Midland-to-Sealy construction. Complex gas in have line. pipeline opportunities the our Midland-to-Sealy and third working of couldn't now our better and plants finding we're hottest place. in this put quarter In in natural two the fairway many of to systems, which done a the all map on liquids in We're world's into to projects in continue projects system at XXXX. quarter, Permian and growth Basin, Orla is like Orla crude bring new Delaware gas Orla processing our scheduled the our the building what In the is dots addition, service at on When other year, you finding scheduled natural It's in complex, assets and of be literally plant our basin. not we assets Oak including in around existing converting and second of assets, processing one

we As in expanding crude oil NGL we're our storage soon and our refined facilities. and petrochemicals, putting and to will be services Mont Belvieu products fractionator ninth NGL

MTBE help and high-purity under NGLs products. the to us completion After iBDH construction which built expected value Our isobutylene in allows excess is in our this with capacity plants will higher more will XXXX. upgrade plant in

and a opportunities this for natural a we've the magnitude support an XX% Coast. logistics seeing ethylene don’t gas, is system building Enterprise. cost come of petrochemicals, basis. through committed in on seen begun increase fee on capacity, of The we’re contract Also in to petrochemical XX-year half without to nearly an investment ethylene this we've other feedstock customer based in Like expansions plus capacity NGLs oil, crude grade Gulf the

Mont are first begin storage half XXXX. within capacity salt the expected Belvieu, that pipelines cavern in We’re a converting system at designed mile a storage of which to be our high the is around eight a system. ethylene ethylene to will dome service quarter well This a of

X we’ve Coast per XX-XX to petrochemical new ethylene systems a of this to million have tons export These Gulf the announced assets Gulf beginning build the new venture year. believe system. are Coast extent joint into around existing we and and will the also distribution ethylene our and NGL ethylene export of that facility leverage entered the ethylene morning capacity We that

their across While not state Louisiana. the that’s folks realize be don’t broader that XXXX That’s what of ethylene largest will just world in is in of Texas our the steam by in producer the cracking and the happening markets the counting from advantage finally U.S. growth backyard scenario creates on some which can exports. towards feedstocks. an and rapid Asia, in ideal are brought supply in comments cost ethylene And the with resulting for demand diversify increased like international combined markets

and continuing the production, With in more increases products exported. being are more

to NGL area for products. and and volumes this most we're said including the crude Our petrochemicals Midland-to-Sealy has pipeline be of as being refined exported. Obviously, ethylene seeing can delivered for Huston predicted, the initial same

Our the approximately XX% is dock activity increased last by year. in

had and is quite We release of X.XX team of proud recordable a work of our With XXXX employees. without opportunities. increases X.XX. loss XXXX of, for and XXXX the continued the I that, bright our performance and expect frankly creativity term total Enterprise it thanks diligence to company. of hard dock. give hydrocarbons XXXX of best Sincere the that success and XXXX in a turn the And future and our mentioned market because X,XXX Enterprise. have continue and our good the for press from entire pretty our hassle with is daily our This our time everyday we're in safety ever rate to all this over folks Bryan. to our Enterprise of and over something We longer folks, in about by in rate that possible been not the you team of We share feel in would will

Bryan Bulawa

comments would and Thank and you, our that I operational everyone. eco good Jim, we're performance. to record pleased financial like with earlier very morning Jim's

Our commodity operational you for per or metric proceeds $X.XX the unit monetization to unit XXXX. rate DCF enjoyed derivative which in levels again asset if compares recent cycle if downturn the and favorably per XXXX was insurance per per this same most will DCF interest XXXX, $X.XX or you of and sales, prior approaches excludes will unit unit to

Azure of most growth. Congress expected amortization to unit and assets expectations Having quarter, of Before XXXX a compared million in four and said XXXX December and master $X Export respectively. million for that, Total charges interim with for $XXX Midland-to-Sealy for topics the million the XXXX per XXXX, the and crude or I'll limited fourth the XXXX, quarters of spending by XXXX. appropriately quarter wrap diving our service $XX investing cash overview attributable statement balance include fourth capital quarter asset and such with Act which diluted Point Jobs and continue including quarter income meetings the November, discussion, a unit associated our with the per million opportunities, the the items one $XX GDP income Tax favorable expenditures. oil to $X.XX XXXX Terminal, further investor which during to limited impact fully Starting passed basis expenditures MLPs calls an expenses Morgan's $XX billion capital growth tax objectives. for attributable being of basis quarters relates Net recent attributes for funding capital per were million of approximately number sustaining or U.S. few was Ethane on $X.XX XXXX to popular of provide for accretion encourages growth of partners compared net up $X.XX our and or the pipeline, of for $XXX partners fully into fourth in to sustaining our same and a preserves partnerships diluted job tax non million equity due fourth to the infrastructure review and contributes Depreciation, and Cuts for for a statement acquisition began $XX and impairment to our into metrics on service in limited unit earnings diluted unit in of higher when our and a income was fully both reform. sheet a expansions. The quarter income to items, per placed

the for year Azure billion with million For capital $X.X in and invested we connection paid of expenditures. XXXX, $XXX growth acquisitions the including sustaining acquisition the $XXX million projects capital and we for full

currently approximately for for $XXX and XXXX, growth expect capital invest million expenditures. to capital $X billion approximately expenditures, we sustaining For

When XXXX, months our average XX levels namely would to Harvey. Midland-to-Sealy, is contracted for cost XX, our by requirements December remained years was total ended along December of our with for debt The and a applying hybrid partial insulating rate debt the leverage debt rate, higher during XX.X X.X average was and attributed -- fixed or treatment life Hurricane inventory X.XX reduced have leverage quarter effective our construction adjusting consolidated rating was day cash of hybrids times. Adjusted times short-term outstanding opportunities Working assuming our PDH for of sheet. to for the interest equivalents. portfolio balance the thereby was our debt call X.X%. our capital $XXX debt with Moving impact the in further and our pro equity rising and self XX% was debt projects, principal ratio of securities ratio the first the XXXX growth outstanding marketing leverage forma At our the by the of environment. been billion. agencies debt X.X effects cash of billion XX, X.X after Approximately under $X.X EBITDA continuing elevated portfolio approximately million liquidating times and our $XX.X further

the billion and Enterprise partner and investment Duncan continuing XXth XXXX. to Company next assets in year latest of December $X.X at our family our to will the available further IPO included to tolls February equity which reinvest since XXXX, affiliates our an common from EPD certain for general funding EPD its partnerships $XXX With our Xth, a Our year common on program. approximately of with the purchases facilities of this billion. consolidated level upcoming reduce represents needs which and at liquidity week This we support over supports and of of plan credit respect partnership external borrowing waiver distribution XX, aggregate cash. distributions the through This $X.X capacity was unrestricted million unit, paid our units reinvestment Products distribution contribution

in we XX% reach XXXX, this funded with cash investments. XXXX to XXXX to with preserving flow the of of approximately call rise distributable or to the to and while XXXX X.XX times. capital leverage turn Finally, to X equity in Randy. during through I that, earnings back billion self-funding our requirements funding level growth to excess attributed targeted $X profile, a model $X.X equity We retain continue capital will And investment to billion objective growth our over anticipate

Randy Burkhalter

Amy, you, take to questions now Bryan. from our Thank ready we're listeners.

Operator

time, comes Schultz TJ question conducting Your At a your from Markets. we RBC with will question-and-answer Capital this open. first be line [Operator Instructions] of session. TJ, the line

TJ Schultz

export think that local arrangements you Point? just it needs with I reach if done terminal. first authority. would To need reason, any to at just FID? the on acceptable And be Does get ethylene you what procedural? you could Morgan's expand, not still mentioned, tax to reach Or FID,

Jim Teague

Point, else is wouldn’t as better and at location, could there at be we that. it get somewhere reason Morgan's another The is when abatement tax put

TJ Schultz

the up pipe. it from volumes What initial get you traction capacity think Shin your volumes the on day? from for move adding at the the at start are getting beyond customers? there then over Oak, other And Shin Orla a $XXX,XXX any is on design converted you to barrels additions? change Just and Oak Does I

Jim Teague

that with several to barrels $XXX,XXX than fully day have in expect on discussions at a we more we people. will bring been positive I it and have

Operator

with next Morgan the question comes Abrams line Your from open. is Tom, line Tom Your of Stanley.

Tom Abrams

in at quarters? better Midland-to-Sealy, got EBITDA Will I couple uncommitted committed as of the as decline it. want next the that in impact on you've Midland-to-ECHO tariff little about the out a coming that to might flow to understand temporarily mix the all and volumes much

Brent Secrest

at you think is look -- I Brent this Secrest. when

delta If see to and is dollars. extrapolate the the and will if decrease. want for is the you rate the there barrel first you rest margin But quarter, volumes say the currently per look major walk-up the of the at over and I year, where a fee that increase you between calendar

Tom Abrams

on Midland-to-Sealy a one faster for -- a after have years? couple new up couple might conversion actually capacity of your in people hunting than you I something a have as of -- some another -- you Can or position literally, Midland-to-Sealy Oak? than as barrels one to around be might is is put to do expansion NGL either questions, much somewhat the yet you Shin ball term, earlier other pipe. on idea of perhaps project mean as The short long one in and participate are in in thought a filling could lot in additional

Jim Teague

wrap beyond easy is just Midland-to-Sealy our what capacity mean can to going I we initially be with relatively pump stations.

use say, So can we and can I I think mean, fairly we'd do that inexpensive. which is DRA, we

not So, yes, I there's upside there. what. am sure exactly

Tom Abrams

Gulf couple ball the on if tentatively are, about facilities questions pet-chem then And a hearing you're additional long the Coast? of anything

Jim Teague

there's believes Tony wave Yes. coming. a second

wanting here name putting in the pretty whose companies talking evaluate, plants ethylene the to I have hardly about Tony? can't in U.S. We pronounce, routinely

Tony Chovanec

especially this. when plentiful Absolutely. people ethylene number And at Basin, growing Delaware the that understand the have with you that we and look

believe. So, if coming I they're

Jim Teague

back doesn't, gets big makes was it's oil crude a attractive it our gas goes when lot year. -- last heck up it things time ethane more other of it than and one natural to this also, this Yes, export

Tom Abrams

Are forward? that you moving of wave the timing

Tony Chovanec

to It's going hard for predict when have folks to these us FID. are

in are it the really to for So, make on people U.S. the so end is ethylene day, But that while take macro these are ethylene -- a to and the plants at because of is coming them. look people the come to supplies plan plentiful.

Tom Abrams

happens you What wondering. that DCF with you the XXXX unit to per extra your I do assuming with coverage? When self-funding, are keeps do Lastly, growing? priorities? stopped What in get what next

Randy Burkhalter

opportunities on in now at that XXXX in point that bit till is little time, see wait premature. what speculate come we'll like think and a look to the and I

Operator

question Your Horowitz line open. James. comes line Darren, Raymond the Darren of next your with from is

Darren Horowitz

of and end value Jim, mean arbitrage, next propane year on exiting propane my million it higher Do spread? the that for ends before guys way capitalize propane that to activity" price up arb actually have opportunity and wider lows of you at five PDH we that And math more curve? propylene Or of at the first me kind into up petrochemical you? could point that means on an or question versus chain XX million be propane you then the below XX to tracking specifically obviously polymer-grade my supports March, on "commissioning the barrels the that's on propylene, prices. the towards look it? if Does even service. you that propane the for legs work entering commercial could does that what How inventory

Jim Teague

question, you've think Darren. own your I answered

Darren Horowitz

to you I guess just hear say that, wanted Jim. I

Jim Teague

R.B.? want you again, take Randy, to

Randy Burkhalter

we're that pound customers PDH our produced we go. while every is we to in commissioning as For sold

selling on propane now we're right PGP basis. So,

Darren Horowitz

could Why do months? over spread, R.B. you couple of get think that the next

Randy Burkhalter

the think I don’t to right I'm on that. person speculate

Darren Horowitz

Okay, for Bryan. one quick and just question housekeeping then

let's contango the across out you currently? to it. do relates generically How it on the As call just opportunities commodities, working much guys facility have

Bryan Bulawa

our Well, working facilities. really capital billion have $X.X we is we credit -- of -- facility

at or -- we X effects as elevated as dollars with So, Hurricane opportunities some effects associated marketing December was some the XX short-term have the -- capital about of billion what the outstanding of working had levels well inventory we what ongoing a Harvey. again of

Jim Teague

is backward Everything today.

off rolling contango is have money or either which bringing we of taking in. backwardation we're advantage So

Darren Horowitz

of XQ? prospective on regard that's you short-term that to that the to do billion X a mark-to-market from how be with And out expect much facility, in

Jim Teague

And amount to always currently back markets of least the that to think about it's million. March. end September I pull see decline December it's by will at by we -- But it's now Darren, we because dangerous from -- territory shift. Well, $XXX some that

Bryan Bulawa

contracts some off. as on, and commissioning working in with roll a see was just those crude will Midland-to-Sealy roll of There decent amount inventories the of you

Operator

your line of comes the Brian question line Brian, open. Mizuho. is next from Zarahn Your with

Brian Zarahn

additional additional of much could DRA long estimate give Midland-to-Sealy. be you to stations? how on it and stations? pump estimate And how take add Can Follow-up would added capacity pump would to you

Jim Teague

pump We and think DRA. wouldn't And it's additional additional between what somewhere don’t need stations. we need XXX. XX I that stations, just pump

Bryan Bulawa

than bit little A more that.

Jim Teague

it day. barrels call XXX,XXX a let's Okay,

Brian Zarahn

Okay. And then NGL. just to switching

see do the you system how making today, ethane of on coming As progress opportunity uplift crackers online? your the with

Tony Chovanec

a see Tony. west drives how Appalachia, as ethylene prices. we that to think Brian, ethylene balances, is and we We this publish of slide

We storage But to want going could acknowledge especially with is have or end big going where blow of people to and tight There into it not slide. prices. don’t we're going Obviously, finished think yet. our new to think ethylene other you of the we're I that I the you're be So, with to a could we reaching have on forecast, in products. be not that out. could blow predicting day, you be out would volatility. production time tell at ethane But volumes, incremental the ethane periods

Jim Teague

it's Probably, then and going the if the going I see. Permian be or it's have going you're you're in If have appetite they you're Eagle to see marketplace. close you're mean be going to to the higher the appetite that transportation ethane. Ford, to the to petrochemicals margins, an related for

the Ford, if to So to you're -- Permian to at it's be Eagle you going the await, going it, and enjoy -- going be get marginal. further to you're going in it's

Brian Zarahn

side your price -- system. side on not I so on guess the the in the and much volume

optimistic recovery? volumes, year upside, You're related transportation about this volumes, to frac processing ethane

Brent Secrest

Brent. is This

our healthy I quite the terms the If mean increasing of Y-grade, volumes. our and ethane expectation you it's in portfolio and across the look of

for makes it now, right are margins people the to ethane. where think recover sense I

Operator

Ted, Your Goldman next the comes line is Sachs. of Ted question open. Durbin from line with your

Ted Durbin

push at What's not like in coming just there, commercial -- So, bit rate. a we're And with back service? to full for still PDH feels out happening just continue little commissioning, why that? there contribution speak non-spec Is from kind to where going? -- producing the you actually you that of any product earnings in now? product can are all Or then, is quarters

Jim Teague

at do These That petro little product. look things a you're these are back is non-spec plants, produced are big in going that. really now takes it's and logistics see not unexpected. longer. -- We've to How and commissioning

anything we've but yes Graham, propylene. up, been are that, been on-spec -- expected you we've ramping got else producing there? and gradually We

Graham Bacon

steps we mean the we've of running in amount on-spec propylene do up been of activities the that there's is different this, plant as taking go producing to overall But through at and through requires I now. things. we're conditioning of commissioning certain the just normal and catalyst right terms capacity, some

Ted Durbin

as what's Is to thought a was the a you're be on that view that then cards Or I a your you able And there? there in nameplate. phase bit might the on of commissioning the run still think potentially plants?

Jim Teague

to We there. it's to it currently we'd plant built. nameplate have Ted, and enterprise other every selling hope but it just that's hold we're excess like capacity, right We now would like get not yet.

Ted Durbin

on you've of questions corporate I over I is, heard with got thought of comments Enterprise ultimate know I one for then one about of was think And happened tax reform, the -- structure the just but the the one what and the uncertainties quick years and your there we've reform. tax

So behind that us you have now.

M&A Just on do the capital, ideas? rather access you're you think think -- strategic structure whether love as to you your other right in thoughts corporate about you

Randy Burkhalter

Randy. this Ted, is

haven't seen over there MLP I think last MLP of as we feel the whether we like the we'll couple structure values was Frankly, difference over MLPs. is in to concerned. midstream we the noise access versus space capital or a frankly I think price, Corp a three a at as the C frankly, works the of equity midstream lot how us to continue a capital to years, capital Access Corps years. far you're C reasonable lot for but monitor, still of last are where

and evaluate. to think capital got to that’s I access good will monitor on now. see and election, continue forever it/s So, But so think But come and that front. be continue we to not we we we taken to what the lightly develops will

Operator

Colton, with your line Bean question from the line Tudor next Your open. is comes of Colton Pickering.

Colton Bean

U.S. relative on long who this the export ethylene ethylene So producers are project, just to their pet-chem polyethylene.

today? at potential where so the So current do you level sit there with add commitment, think they you're to comfortable is of

Jim Teague

to to commitments. the add current going We level we're think

Colton Bean

where to sit as we capacity. versus sense Any

Jim Teague

me. Excuse

Colton Bean

versus any capacity in of comments commitments there? Just terms

Jim Teague

enough accretive. make to No, it

Colton Bean

LPG spread bit, and widened off-take naphtha to side side is the just trading or is on And shipping of Any things just still sense the or U.S. switching Understood. that'd as gears the to where the pricing looks of whether rates margins? margin things, are relatively tied occurring like but between global presumably export terminal linkage, the on out muted. a

Brent Secrest

This is Brent talking.

think the are across that the I we’re seeing traders it, taking water the struggling or it. gas struggling or with with

who folks were deal, was making this take the the that So those the where probably state these guys trembling it ones money fee, did of are the making definitely of are and the the but pay fees, making different other way. or it's contracts most the markets. When just the started, guys these who money a swung are trembling

Operator

next comes Ann, Salisbury the from open. line of is your Bernstein. Your line Jean of Jean question Ann

Jean Ann Salisbury

thinking want sure, about right. Midland-Sealy, just I to I'm make

it December? You've quarter, and And started so, than November you at over running if up and blending fourth nameplate in? blending close averaged not is it Does XXX but XXX,XXX will because infrastructure will the is down to in that once this you're in you're higher November. mean come

Brent Secrest

we XXX in in point think any I at running don't were time.

Jim Teague

part we it's a Jean, stations did is day, a pump, much was barrels base pipe pipeline when capacity up. XXX,XXX of coming Yes, with I think up added bring pretty you so pump before it the the

wasn’t there in much obviously, so, And November of into our December. ramp that

Jean Ann Salisbury

that number included that were October does there? in and mean fill you some that So some line in had

Jim Teague

barrels look day. on XXX,XXX numbers flowing you we a was the averaged if that the think pipeline, crude at days are, the I

Jean Ann Salisbury

got quarter? it, necessary Okay the fourth not but over entire

Jim Teague

right. That’s

Jean Ann Salisbury

and Okay at least pipeline FID currently or pressure perfect. are are the volumes might EMPs from It be significant create NGLs EPIC on from And downward you saying. pipelines on to marketing sounds is that the the rates then, conversion X the newly like Permian? like with Cactus there

So I could was you just you're in say seeing market place? wondering, the if what

Randy Burkhalter

think I is the I you guys your on competition of and can read mean rates. now, lot right So, announcements. for crude a there color pipelines

Jim Teague

NGLs. About

Randy Burkhalter

line. got and of handful oil. like conversion guys value quality their own who we're customers read can the NGL essentially the the You have talking still crude We've can, own a announcements we their to -- pipeline of not pursuing but of just

still So forward pushing on that project it. we're

Jean Ann Salisbury

wave the a as crude general should lower in to be materially pipelines expect what we they're than But next of statement, that rates point FID now? of

Randy Burkhalter

say so. I would

Operator

of from next line Your question open. Jeremy comes line with is Jeremy, Tonet the JPMorgan. your

Jeremy Tonet

as now of wanted it to Midland-to-Sealy come want size adding you I make that as pumps pipeline the what straight to you sure It what if back could far and to bigger, is is could or but like clarify bring ultimate could for right be. track Just to comment size on the could market Midland-to-Sealy XXX had sounds and here potential DRA for ultimate it reach help then bring me just could it demand there? XXX

Jim Teague

higher we are XXX-XXX than underway. we've haven't studies but we those. those able get range, might Right completed got to few capacity the that in go Yes, can the slightly there's now, to that, it a other that we do be tweak to

Jeremy Tonet

just bit order pumping So adding that'd pumping get -- a be more than little be that? maybe could

Jim Teague

we're involved, didn't at. that optimization that we have some equipment that just published number yet. of just haven’t We taking that's It's a installation on look a any

Jeremy Tonet

better was South and how And in earnings maybe Eagle the just Ford, was wondering the contribution the about the get so normalized And think it model now, for help pipe a quarter, much as capacity Midland-to-Sealy versus wondering, earnings in estimates other we was uplift just what you million could if far over that then I and just related power just can Texas of asset the don't drivers, only the some if as you then, XX kind seems parse spread. concerned? our million we it of of us right XX just ourselves are with out, could so part was what's ahead And has segment? that benefit happening of like kind was there there this of

Jim Teague

it that part around again Midland-to-ECHO, -- over a of in up a that's on Midland-to-Sealy, would run the the quarter move modeling bring probably that's the I'll I as that if standpoint million, Jeremy, good you take $XX but good it'll probably think run will first we service that that from rate million rate. time, the for $XX

on Ford, repeat Eagle you if the On question your Ford? could the Eagle

Jeremy Tonet

million in Eagle on was South like release. what and in like XX the in was seems I Ford from reading the in was there It the the some Texas Midland-to-Sealy effect That's the it there knock-on press a uplift quarter seems side pipe. crude there

was little So you just wondering, to color a I more add that? if could bit

Jim Teague

It's That's Ford go say to almost for that was I'd on volumes related of all, exactly any the II. -- Eagle not Midland-to-Sealy that by stretch. all Rancho those in significantly was increased

Jeremy Tonet

then last one can if a quarter. I from there? I sensitive it in that looking down one there, fee-based of or of gas could, that's anything the if wondering, like processing And help seasonality shift was little the or just else to kind just was looked kind quarter-over-quarter ticked if commodity wondering you any bit us I volumes nat with

Brad Motal

fire. South was there driver Biggest Eddy

driver South Eddy the down for and delta. in X X to was quarter was big that a weeks the for

Operator

Your next Wolfe question is Keith, of your comes Research. from Stanley Keith line open. the with line

Keith Stanley

this year, only just on first a going current the Just DRIP possible you little if curious on plan? think need this back still here based equity needs circle year, CapEx so wanted to for the to higher it's

Bryan Bulawa

to coming our also depended we Brian. this assumptions, have grows. it's two timing upon, our Midland-to-ECHO There last It our about that talked ultimate participation X way we that the quarter assumptions at the we more reinvestment online which year. in will as distribution certainly capital and and and performing hope We're is as be billion in are -- around depended trains this Keith, or as program. the is certainly as this respect well Midland-to-Sealy the around that with size you come on on factors side anticipate certainly opportunities the PDH today, growth several Orla fully coming we modest is

is there moving still But So, be needs all equity with potential those our external very and parts. the factors, anticipate like. of shifts lot said to that having

Keith Stanley

there? but color strength and Can give one some a continue just of here. pressure NGL the on up see and you overall, what's QX to results. Okay great a little Obviously, marketing across on on just businesses lot the more follow the crude going businesses

Brent Secrest

Brent. is This

NGL compression somewhat prices spreads a of storage On commodity the side, to presence. because resilient before you've we've that the and we're our of past in decrease seen talked

are opportunities seen on gives opportunity limits stay in So, contango gets I of is that things as is they and now. one spreads. limited down you've market Crude just and some a our contango storage side. purchasing to lot feel realize, barrels start right a but are oil, and opportunity. storage to storage somewhat from pipes, of there compression our But especially the getting that plays overall, better marketing backward, don’t that flow crude

Keith Stanley

like it we Brent? pipes to opportunities, then when full Is our better, there're say, it fair when are contango

Brent Secrest

That’s right.

a more So side, flow I Enterprise, as think that’s good when we're marketing from But us, barrels gone to that’s when them, a probably assets, not happening. and for to thing through help there

Operator

comes Blum question the Michael, of with next open. from Your Michael is line Wells line your Fargo.

Michael Blum

Teague Jim that up Just running? come and I be be of two just along, point this do think in by expect of One, quick the earnings will fully in to ones said end script the would a February, PDH, when A plan. rather we that’s a we on our clarification things from me. think year you

Michael Blum

like Okay, so. is, possible you give and the you question and Front if BXB or just that’s the seems getting If DJ that? in the want to What and market your NGL get on, if then get it on expansion? thoughts were your could dynamics go can to is with Range Pipeline ahead thoughts tight, second make the us

Jim Teague

Do you want to take it, Tug?

Tug Hanley

No.

Jim Teague

right. Good, the don't got pipeline it. we're we've you that that take expand that expanding me pipeline answer, and Michael, that happen. on with make to at working are pipeline, that can producers us want to know we looking You yes,

Michael Blum

a think XXXX event? that's You

Tug Hanley

Early XXXX.

Jim Teague

says. Tug XXXX, Early

Operator

comes with your question open. Becca, Capital. of U.S. next is the line from Becca Followill line Your

Becca Followill

One that question left program, on in hasn't the been done ATM asked, on that? quarter anything

Jim Teague

None.

Operator

Your next with Nick of line open. Citi. from your is the line question comes Nick, Raza

Nick Raza

your your real turning views Do Just quick. been just give projects recent have interest building an to gas you Dulce? have still Agua down Permian announced? to for Could the natural in you pipeline

Jim Teague

it, Jim. brushed and it. traction a an look thing we off still is Yes, a frankly have is and we've different we're at interest This get can on it here we whether taking recently

Katy needed. where. going the there, or pipeline will second be look required or ultimately Tony think Tony? of second and Dulce to out But to I Brent, I Agua pipeline it's is be I whether there to personally a

Tony Chovanec

at all. No question. question No

Nick Raza

think after to the do project, sort projects you midstream in the be what that to of a company all needs FIDs spread come through? a to roughly And entice announced FID been have now right have

Jim Teague

gas about on talking You're natural pipeline? the

Nick Raza

Yes.

Jim Teague

crude gas been the produce way natural pipeline see I has oil. a to

the it's not of am I gas. spread So natural sure just

do Tony? produce to has it crude. to ability their think with I

Tony Chovanec

far pipe what spreads to it sort I agree long breath basis and as a tell at you, you built look as I'll it'll over $X.XX take of that And be dollar. at then over still then trading going is your as away for market can the is look is as you a basis and if well that it. assumes today

another So, needed is pipe will be the market saying and built.

Brad Motal

Jim lot what capacity there I of are with on capacity the they're plan as understand really said, -- that much how have in seems is to Brad. their and it a but This people there're first to long of take term lot way trying and a will pipeline, out conversations need. still what echo that Tony going get the producers, we that that

Nick Raza

gears provide your what switch Northeast bit going then And to and can a little side. updates on Any of on are us the thoughts just that you forward? Centennial

Jim Teague

on I Centennial, now right had we wish we updates but don't.

Operator

Bank Dennis, of from open. comes America. with Coleman is the Dennis of Your next line line your question

Dennis Coleman

directionally just bit if announced if or broadly just more little number? facility you Obviously, I you the today. to might as what export dig that that guess might look that I you talk the ethane to include wondered capital the mean estimate but anything would of into would didn't example is estimates, be there's I'd say a any those an be. we sort you -- or something to could I facility

Jim Teague

it. doubt I

Randy Burkhalter

dollars. around storage talking the you're and normal really, ethylene capital pretty facility, refrigeration Really,

Operator

comes [Operator open. is question Kristina Kristina, from with Suisse. Instructions] line Kazarian your Credit Your next

Kristina Kazarian

another wondering Frac year, Frac XX, we timing potential even more Analyst was thoughts for the that. around around at update may Day, last and X. last XX on announced on for or Day Analyst I time Thanks supporting the if you that upcoming got little we be could or timeframe demand a talk

Jim Teague

what we think have there I would think its it Oak, it would Well, we're we it, strong that is build it permit XXXX. we're build probably sometime doing can possibility expect and of I successful after it. in we Shin if I would

Kristina Kazarian

have about there And just I mean in a you there? Would in especially bit about us keep a opportunity, you opportunities as the trend deck export -- more after well keeps that that that side? well. talking capacity more supplied talking follow-on and then Could talk NGL on as bit little on a XXXX. mind the guys your tight you you

Tony Chovanec

matter not and demand Kristina, been of and to isn't see we've That this supply rocket is deal. the Tony. It's really a we great U.S. grow, it's outspoken going in demand supply science. just really as and go really

bigger slide even will the up. So, tags capacities that for the that's model going today it export NGL all good is When and that are because be capacity published gap facilities we added. has idea the the price publish pretty And we going number be why to it. publish to be and what to again, shows have export we we

Brent Secrest

especially Like and This barrel somewhere. in said, Basin numbers Tony believe to Permian has the is believe that then if you if you the production go in Brent.

it price will and in a storage. some price And level But demand will across water. that in that will handled a increase will barrel point, there period the be move the can so, probably, be of when time to get where

Jim Teague

expect you to growth do today's Tony, export export exceed -- So capability? production

Tony Chovanec

The answer absolutely. to that is

Kristina Kazarian

guys. you, Thank

Jim Teague

I’ll thing add that. to one

ethylene it's or the and driven to by an of crude primarily lot crude people gas gas the price a appetite. spread talk One amazing or we're things, of We about other how whatever. that’s Asia get had in beginning to but in -- exports we've gives that naphtha LPG, of interest

Operator

comes Your next from is Danilo, Danilo line Juvane the BMO from of line your question Capital. open.

Randy Burkhalter

is Amy, Randy. this

time so will our more, We last this one. be for have you've one announced and

Operator

Okay.

Danilo Juvane

been Actually, all already. have the questions answered

Jim Teague

our give Please. information. you playback would Amy, Okay. listeners the

Operator

XX:XX XXXX. Again, is number for number Eastern call. you Today The dial thank XXXXXXXX. or the replay available participating beginning on Certainly, XXXXXXXX. the call for today's at conference The will in PM the X-XXX-XXX-XXXX February number in to ID X-XXX-XXX-XXXX. X conference for be PM is replay conference through The for X, is replay Eastern

Jim Teague

have you, for today Thank Thank us you joining Goodbye now. a day. good all Amy. and

Operator

conference This call. concludes today's

may You disconnect. now

Enterprise Products Partners (EPD) 31 Jan 182017 Q4 Earnings call transcript