EPD - Earnings call transcript Q1 2020 | Enterprise Products Partners L.P.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the first quarter 2020 earnings conference call. At this time, all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator

like Burkhalter, conference Relations. Vice floor yours. now speaker to Sir, hand is Randy today, President to would over the your the I of Investor

Randy Burkhalter

Enterprise morning quarter first for XXXX. welcome Thank to earnings everyone Tina. conference call Good to you the Products Partners discuss and

Our will attendance our of senior Executive team in be Officers Partner, call. our General members speakers Teague are and other for today today the Jim Randy Co-Chief of Fowler. There management

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

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

will I turn call Jim. over that, with And to the

Jim Teague

representing provided times last DCF. X.X coverage or the you first momentum Thank same had retained year that record XXXX increase billion carried our $X.X We and first million net show results into a flow unit X% of and $X.XX the quarter a cash income from reported quarter. and quarter We in a of $X.X Randy. in year's XXXX. totaled Distributable $XXX we billion

isolated who first little most something from been virus. I an that to COVID-XX. were without you This enemy. by remember, by down time if we the People invaded officially put invisible support their in It disease would. was feared turned breathing. of invisible as It highly it and an enemy, It upside world XXth It everyone's not warning. lifetime people invaded got Coronavirus, an struck killed. the a we in my March, iron called paralyzed boy century, contagious as others, a polio in Then have is quarantined, polio. the lung were

mom, we window. remember standing My so closed. pools We her my weren't polio. of go kind playgrounds. their I was outside month. practiced social through could don't XX dad little own caught losing were people public one allowed remember the and steps distancing. What with and to see down and nurse, shutting effect, In brothers were jobs my to taken. a registered who is entire in our economy hospital theaters Mitigation movie Swimming I million the a we

Just distancing clean social shall as hands so I starts COVID-XX, we It never is, been as too have are. as they and learned will behavior polio with defeated, changing was my as our have this have done. pass. what

the objective As pandemic was spread, this primary people. our safety of our

Zoom company. Our throughout XX% has Zoom people our throughout headquarters’ hours understand and are a secondary the working day routinely objective held the of I home. after the continuity was been from happy are of being of meetings And there our lot it, remotely as business. work.

technology a culture, working of part part though of even be DNA. to and remotely, our folks continues happy a through are work team our at So our hours, alcohol

people staffed location at Antonio. our immediately San half control We pipeline our backup in

commodity become have remained us locations our seven-on Purell hygiene. distancing. our to went we that our a larger out plants. that Those Further, an and to on of make of distancing two to allow Many So, Enterprise. operating pipe at were our are disciplined in in always of headquarters our sure for and eye pipelines seven-off valuable we has social facilities

it a I my like now. we seems literally what are in cycles was fell have many off like through been going Demand never through in anything have life, I overnight. but seen March, cliff

and crude our cratered, oil. barrels price oil buddies we was a ever guessed, adjusted At piled the Enterprise, Russia good of would day X negative immediately reality. to market have no additional pumping result crude Saudi this into million and demand by As the on an what Arabia one

have mode. people operations gone Our a into cost managed

Our reduced further of exports which being CapEx continue $X has be joint CapEx. XXXX our virtually billion LPG our spent. commercial reduce sold out. groups been already have , to billion ventures $X from are $X.X in potential billion almost businesses, In negotiated, which to Six could

with May NGO a record been fact, Three to a could Mont month. be have In little Belvieu wells at products. luck converted refined

services. have oil converted Tanks to been crude

even oil to two almost found store have didn't people To $X bring a $X that billion places credit enhance flexibility, we to liquidity we months existed. billion. did ago Our know our crude to facility financial our

and All environment. of is being this more to done succeed much this in

Chaos leads volatility. strength. to work our which and leads to markets, don't embrace We volatility. We to inefficient markets inefficient fear it

Some of our businesses are steady rock. as a

haven't seen a Our will NGL our NGL full And fractionators are downturn. overall, remain and pipelines, so.

is contracted, crude Seaway full. are virtually Permian oil and pipelines Our fully

Our demand cut. been petrochemical business has intrastate been throughput so our pipelines full. Natural and refinery improve, refinery petrochemicals. have as runs on is gasoline fallen will gas Texas our have challenged runs Louisiana motor Once and

gas the assets has abundant. our natural I this that has processing Opportunities is half While believe potential our year. upside business the of in suffered, second are a around

there normal. when pipelines. is as seen contango to cases and things we have will on and work some as to return differentials go, anyone's location even the It's and and backwardation economy of there around open guess storages every are wait Our as hydrocarbon, our

During have are this time, value driven continue to to to that delivered. deliver results people perform they the the our always create

a give will personal I perspective.

value the naval of add today mission change, in long of the Enterprise, being add At role the It a deal understands I may we add I part a we that understands that mission, value. young How have always a kind special fraternity. mission. Delta, their have this in great of of to But same everyone pride feeling officer took and pride a but helicopter fraternity. that took accomplishing was squadron Vietnam, The value. attack I part a time again. Mekong in As an

In do. of you know appreciate to closing, all the member that every we Enterprise how want we family much

company's this are greatest You asset.

this makes are You a fraternity. what special

turn with I And the call over that, Randy. to will

Randy Fowler

good you your remind earnings I our and would on for everyone. posted you Thank our that like website slides quarter support first Jim, morning reference. to are

tax included $XXX in or March settlement subsequent for associated per unit X deferred benefit income statement option tax limited on deferred the a for diluted the for the income with fully $X.XX the quarter $X.X on first Starting net the to unit accounting was billion first liquidity XXXX quarter, first mentioned, with expense per for in items partners Net million a of attributable as basis. liability. or Jim quarter $X.XX income related

billion Moving the was on XXXX first for the of XXXX. $X Cash first quarter flow to flows. cash of to from $X.X quarter compared operations for billion

plus XX% last billion Free minus in quarter non-controlling accounts, than capital year. billion of lower operations XX changes for as last the X% cash from million. of months the March contributions flow was any XXXX. ended the interest, from reported flow Excluding XX XXXX, than Free define first $XXX was the which for flow operations $X.X flow cash March cash months for working higher the investing activities was we quarter last XXXX, first ending XXXX was for $X.X first the of cash from quarter which

and as define flow cash buybacks a from percent We operations. of ratio payout cash of as distributions the sum

XXXX flow guidance to approximately increase operations. distribution we January, was quarter that ratio payout XX% to for the we first cash from our In per XXXX of unit. related first quarter $X.XXXX X.XX% expected Our of provided to the by

$X.XXX. related of It to on and hold stop uncertainty the distribution was compared a Coronavirus, sudden XX. X.X% be Given quarter will increase when economic paid to prudent thought flat it same XXXX. distribution May the at This we to represents our

it distribution Given Board growth and delivered will in be will macroeconomic quarterly our backdrop, our current the XXXX. evaluate

outbreak, $XXX is With all to common of quarter buybacks, prior the first of substantially respect X.X unit the we to COVID-XX purchased units during million million which reduction. XXXX,

Additionally X.X our EPD's purchased million first the EPD of a quarter in million plan the of unit open open and market of in reinvestment plan X.X the during affiliates in the XXXX. general and total partner market units quarter units first the purchased approximately distribution employee purchase

expenditures. moving capital Now on

our reduced sanctioned be growth approximately now projects billion billion currently billion, We mentioned, we capital expect by XXXX and review. Jim As expenditures in spending $X growth to and $X.X in We $X.X year. effectively billion $X.X and XXXX between approved. this $X.X on anticipate XXXX capital solely capital initial billion based projects for investments already respectively,

to are As $XX the XXXX expect million on Total Jim first a a further joint XXXX to $XXX million were which also in and expenditures reduction billion, XXXX, which sustaining $X.X approximately includes investments expenditures which growth million, We expenditures. currently from lead XXXX could capital in capital is for of reduction for sustaining quarter in $XXX capital of we mentioned, capital XXXX. ventures, previous currently guidance. be negotiations

Turning to capitalization.

outstanding billion $XX Our as was XXXX. March total approximately principal of debt XX,

Assuming call of of respectively. the maturity as is average as debt date hybrids our well life XX.X the our years, and the years date, XX.X final and first portfolio

X.X%. cost is effective debt average Our of

As we billion. amount issuance XX-year mentioned was on our aggregate of XX-year XXXX. in $X our issuance notes that XX-year, last of call, quarterly completed and January The

support to We continued markets to XXXX. we have Currently the the for offering. need capital debt to our not strong debt appreciative in do return from this are the term expect very in investors

X.X billion times the and XXXX our trailing adjusting after further debt debt the equity by for in for unrestricted for XX, was rating and net cash. EBITDA consolidated credit Adjusted XX-months agencies the $X.X ratio given securities ended hybrid reduced partial leverage March was

XX, facilities hand. billion $X billion approximately XXXX, credit consolidated was our Our and availability cash March liability $X of under at existing unrestricted approximately including on

approximately As new our entered X. additional the into with facility is provided April liquidity on billion of $X today, XXX-day by liquidity

of uses contango for the this our anticipate near time. term working group and opportunities. grateful We during of providing for We the are flexibility responsiveness elevated in additional support capital us bank in

maturity debt balance, XXXX is September. our $X of in notes cash our X.X% Regarding due a only billion maturity remaining in

employees, the I continuity would their at same that but testing SOX and to the of XX-Q would for and many attest comprehensive in to our will our that only filed the productivity. we May our thank controls earnings business who from of processes home X. to today accounting were thank work I on also announce maintaining be their not in like them level like efforts while challenged

see we currently. our as speak I to want to to take of minute it durability the business a

Our on top by or represented revenues. backed ratings is XX% through top based our letter XXXX investment-grade of of XXX XX% the XX, revenues This of comprised XXXX. of debt customers credit. XXX were public customers those customers from April

investment-grade it three E&P independent represented that companies. revenues into become past So fallen our from angels of of XX% XXX few weeks. in have customers takes the the customers Only formally top consideration high-yield our

the fee-based XX% price Our we into and commodity on environment. to we compartmentalize are down those the areas, depending categories. earnings typically XX% break broad spread When three fee-based

volume of The to which take-or-pay earnings. XX% or first, commitments, minimum comprise XX% our fee-based

earnings, residential with Second, we to certain and degree full operational have XX% based another earnings lot up make Fee balance. demand in durable assets. volumetric of pipeline dedication exposures think capture a commercial volumetric which as many the such our within we storage teams our more given assets of throughput have as and volumes up repurposing deliveries earnings fee the hustled high make and wellhead our base XX%. competence wholesale such Even the earnings as ways storage and of a keep to

continue objectives and and debt to distribution, balance fee-based invest and our sheet would in term iterate grade our our fundamentals. long underwritten quality our as and like rate, by credit solid customers, to by underpinned and term financial maintain I high contracts to ample maintain defend strong liquidity high projects long Finally,

would turn their families, we Randy, feedback, and safe. call to to times. I support the of for like our Before investors To and your thank all through long-term these confidence you volatile stay over

Randy Burkhalter

this Randy. Tina, is Okay.

like from that to do, and to But them please questions your just would one We are we limit ready listeners. before follow-up. take one remind question I questions to

you. Tina, Okay. thank

Operator

comes Instructions]. you. And first Please our go [Operator question line the Gershuni. from Thank ahead. of Shneur

Shneur Gershuni

everyone. Good morning

Jim Teague

morning. Good

Shneur Gershuni

are a you so if the let’s off business, spread are the of but current, accelerated on specifically forth? comments rig talking here, the and volumetric pops I to the I with made things talk and say declines to perspective am I business? current quarter volumes April all you but business, in appreciate going I the do not that remarks, fee-based was with think start going been and materially say? prepared February, can differential your traditional that they worse let's when are respect are I how things wondering say you with as if where there’s talks today, how to in they and be from about consistent How respect as environment do mean going Maybe versus are shut-ins second about

Jim Teague

is Jim. this Well,

my prepared has LPG export I’ve far think for pretty Brent, our, full, said and it so facility I our in example, remarks, is been.

that I a out they think crude look some crude in downturn day pipelines, of oil all if I do Yes. deals. Permian, our at the I million oil you production? take-or-pay of our They have pipelines, oil are said barrels dock think expect associated we contracts those Brent. half and But crude we have contracts, X.X all pipelines

investment-grade. Some all storage of are take-or-pay, Randy are them said, deals all that as and they

petrochemicals that But refinery perspective, cut. see on we the supply on runs we I as probably demand refinery side challenged downturns, but I the our have are seeing side, think increase. on are From are now as seeing seeing NGL upside been some Where an runs we most increases. is are right we slight

the I of lot do it's will a business hell a half better think doing our in than second now. petrochemical

have you else? anything got Brent,

Brent Secrest

No.

mean hit have flow we I a think you it. the on side, month I April. LPGs will in for record

in we But out go in We little further, over close the you oil bit crude on will LPGs May, to for have for a production some see dock And end, less maybe take-or-pay. effects is our April. contracted declines. than XX% space as could and record

drop-offs yet. haven't So, seen we big

maybe think side. see G&P will volume I the side, we decline some that on on

produce the to the out, be in cost you that's first. to customers the cut deal But are that barrels look we terms at will of highest barrel if with, that the going be

The that to issue. quality third out of be that get will cost cut get barrel the market. to sort will And is then second probably the highest some a

customer it I of pretty at I of volume, are reduction to are, terms the in our So, base, ones to we well keep if they our base you think to I some look but want we say sort will see producing at don't and our last system customer think be positioned in on level.

Shneur Gershuni

Really perfect to attempt a an the flat. you sense. makes about reduce and That Maybe expenses talked as keeping distribution there. your remarks, in prepared color also about appreciate follow-up, you the talked

and on on of the in buyback that O&M able basis? about objective how remove sizable from kind thinking to a place? your go-forward G&A you handicap be well the too the are about reductions go-forward distribution keeping Just a X% CFFO And target that a commentary still also expense basis, is does to flat as or

Randy Fowler

use as target, company the worth back from units Yes. year's of first million. million guide, cash that bought quarter. Shneur, operations was buyback $XXX on $XXX the the $XXX X% in last And million, a number of if flow we about

think pretty I have much addressed we So, that.

But economy stop this of the now, broader the again energy and investors there and for much buybacks. economic this on consistent of sudden a right point this to we this we is think year, Coronavirus just how at doing the too time uncertainty does capital in long the effects long last the with And demand. is return I time, distribution additional component growth. I added think way

look think a quarterly and business see I meets the will we Board So, the as performs. how take

Shneur Gershuni

Any costs? the comments on

Randy Fowler

What say? did you

Jim Teague

Comments on the cost, G&A.

Randy Fowler

in Graham focused and hyper folks back reducing and think to CapEx. focused know on we hyper our focused answer And is OpEx the don't Well, sustaining are cost fact on CapEx. I are on that Bacon we how I operations

that. than to So, other I it an have answer don't

Shneur Gershuni

you Thank safe Perfect. to sane. Okay. remember very and much stay stay and

Randy Fowler

Thank you.

Jim Teague

Thank you.

Operator

Christine Please go question next from Barclays. comes And your Cho ahead. with

Christine Cho

have charge you a much that have volumes up you said to How could crude, historically they And the for pay capacities? a I the contracted export much or know you with deficiency exports, if If the that -- are the to up they pay customers LPG, or side the Thanks volumes also to MVCs relative pick remind guys lower volume? deficiency if pick relative to on ethylene the are can ethane, above color. rate don't is morning. just us were currently? you How Good for the all the I cancel. and start how they

Brent Secrest

Christine, Secrest. this Brent is

goes So, But further for slightly. for over the level this take-or-pay. out LPGs, in XX% are down LPGs percentage some as on contracts and on time, go high If the a doesn't reason, you offset a for an operate that's and is made up, show there that to variable us our the to is essentially payment be what it vessel Enterprise costs. would to recover side,

component reservation. variable a So, vessel, kind is fixed contract-by-contract that and there varies costs, up of there is they reservation then and if that There our -- do a is variable a show a the there term-by-term. component and is offsets with

On is than is the there of is or whether and is up, contracts the It component vessel side is is sort take-or-pay, essentially LPG take-or-pay on show same. crude the not duration over longer offset. XX%. again crude fee the no that side, does up actually our The the the and volume shows

at me. On on think side, as Chris, XXX%, I Chris the are I ethylene XX% D'Anna to am contracted next looking All that those, to being take-or-pay? it's XXX%, almost

Christopher D'Anna

up correct been of take-or-pay. whole keeps basically is cost the our contracted the And as that NGLs, variable take-or-pay component it's a show the Brent. similar a set how on is is capacity there has up, and there basically us they where if fee to fee. That's don't XX%

Brent Secrest

talking I set let earnings stone. our correct to exports, from exports, much as variability it sort It's up it in what of, or opportunity volume. call we but a have on comes walk relates When about Jim essentially it's to it, as me, you Randy are would some to would pretty

Christine Cho

prolonged cost to a business. maybe Okay. be what generally could think return? seem high Midstream Thank cost, if the see of savings fixed we cost Shneur's helpful, can to how a up the you. sort potentially we about and event follow just do really just about That's of in assets question

shutting Belvieu down cost beyond just is thinking the about a to or be savings cuts? And more there system, the from pump else facilities but or we station frac plants pipeline optimize come processing non-Mont G&A so, on a seems maybe notable the better to should anything standard

Graham Bacon

We systems This cost at terms all look overall operate our aspects reduction. is of in of Graham. we how

whether said, cost declining reduction, cost. there we we If on be As station pump operation. Jim from hyper fixed volumes much a it are is variable focused how for power use

number a maintenance reduce we So that to extend we use cost. have our of and strategies

our us use targets strong from got a a put on And things and have predictive But costs. really maintenance. to can we run and don't We all help manage we we where and we out tools think focus time. those the standpoint, reliability lot have those looking or certainly, we XX% And period a for I go of there. of are sustainable, some lower cost

Christine Cho

Thank you.

Randy Fowler

expenses And down entertainment are Christine, travel and too. our

Operator

our Richardson go And comes from question SunTrust. Tristan Please next with ahead.

Tristan Richardson

Hi. Good guys. morning

you XXXX it range deferrals opportunity about or you deferrals of year? the any is set where XXXX from is in you talk see given that curious, that talk say unchanged for where saw given largely XXXX in you just made the that's Just from in pushed XXXX unchanged seemingly Or about conceptually any I the XXXX for mean general year? can the normal in you to outlook into elevated? keeping project CapEx

Jim Teague

Why start, don't in. I jump will you

Randy Fowler

Yes. Tristan, we because combination things of it projects capital some were that deferred. a the expenditures was pretty much had

deferred, they had from dropped some But XXXX out So into some yes, we and moved XXXX. so were of XXXX that XXXX. indefinitely

of both. it combination little of So was a a bit

Tristan Richardson

any just like floor you ahead? Where essential Enterprise? CapEx look then about level, most only that go be could given at what could and year? a given could And are maybe any CapEx a high Or for projects year? in in the Helpful. critical you. Thank conceptually Where

Randy Fowler

reduce a they in to $XX $XX And or come and million. we of come debottleneck million, say, whole I we right we base adds up like a the all unusual million, in have opportunities year, now. And to opportunities, of think level and $XX Tristan, can it throw. seems it in in million costs. time are a system million to $XXX about Yes. invariably, be to $XXX pretty would if sudden,

those have type we So opportunities.

opportunities but we we our As see the on side the don't side well and on the customer very we base, see some could horizon, from facing things the now downstream a pull of of opportunities demand think right on as side of upstream well. lot

billion So CapEx thinking are I from the think a in is level. you $X it, billion, as about something a base growth good opportunity $X.X probably

Tristan Richardson

Helpful. Thank guys very you much.

Operator

from ahead. go T.J. RBC Your next Please Markets. Schultz is question with Capital

T.J. Schultz

Hi. Good morning.

your that's about percentage your How what system. storage capacity talked available or not much storage You finding crude contracted available capacity new capacity is of for throughout contango?

Jim Teague

than thought. I it. Brent, More take

Brent Secrest

I fairly sensitive Yes. that's mean in opinion. my

we opportunity how to approach some are chance than people going term pipeline some us the probably with is long be stuff, our this us going there and term different some short So is in that contract pipelines for of sense on it made did not the sense to term if a for side it's opportunities have it to as for deals crude how a made long of Permian. did customer, we oil terms there and we the

term So in what may secure the then have on, great so of terms take to not I storage. numbers, just looks echo of balance, case the will good But long of us Jim. pretty and early now It's advantage in specific of opportunity. looked trying frankly, deals a

about. pleasantly much a surprised access crude and oil to and take hard been frankly have You with we your you involved forgot have get lot things how we to. storage you find of And people you look that that business

Jim Teague

as take script our back gold. notes, we in worth its Refer weight to my storage

Brent Secrest

would that when And fourth repeat XXXX, we talked in call. T.J., had not it's other capture that had like XXXX. ago it feels about call earnings talk, we in years just we would outsized $XXX ago, think XXXX was million of maybe what we quarter three million one in spread $XXX thought I it thing that months three to our we We

the have in and again of in come XXXX. that to We number kind have potential

Jim Teague

That's a good answer.

T.J. Schultz

Okay. that. Good. Thanks for

JVs. for follow-up the on Just

to or partners? at the six financial are Thanks. now. just potential conversations, right in this Have market, you JVs more in I what's slowed are those happened down those accelerated, have strategic point? think given discussion talking you mentioned And shifted,

Jim Teague

talking are of secondly, discussions in strategic three of would we say partners. engaged. are to first I with we those highly six. yes, Well, And are all,

T.J. Schultz

much. Thank Okay. you very

Operator

Hammond Our next go with question Energy. from ahead. Please Simmons comes Pearce

Pearce Hammond

prepared take-or-pay Good force morning I And majeure you that Are reason remarks. we and My to the crude, force storage pertains Jim, was they interesting. ship oil a your That really for thanks for experiencing on appreciate could first any taking no question force my questions. assuming contracts? be majeure? full and And that producers to calls call fill have a majeure. place

Jim Teague

majeure We would contracts. not call a that that's price and our in

and that any looked We we all have to with are our issue we at feel pretty price. contracts comfortable force not it have going relates to as majeures

Pearce Hammond

is, Okay. some you that. for And could over Thank follow-up is oil a And two repurposed capacity your you for outlook whereby my exports? years? LPG U.S. export to gets see then what and next oil your of LPG the situation exports

Jim Teague

Brent and you crude Tony can our the think feel in pretty answer Yes, I hell LPG who a good know take will shot facility, follow-up. don't and on year. export then oil. that might I for I I about this

come most Brent, a deals think our boils got said to crude at down does it XX%. have dog. really economy we this you take-or-pay Fortunately, I the of back? are when But

of don't in fill fundamentally I that just Now, storage. up storage, you terms believe

Something outlet always creates production. stops that or an happens

on stopped. were a all crude crude we calls plus getting think here seen of some exports. recently, have of deals now, we a exporting and everything sudden what, this a barrels I then and million are starting to Brent, think we day I do But before

Brent Secrest

But first pace declines, are a on know, the I would side us, I exports contracts I on quarter. if lot to exports going think that think impact walk-up this take-or-pay certainly a see not impact to by track dollars at as side. think on this a other if just you will and our that going to mean our big crude understand and of are made don't second look big on if on same I numbers pace have quarter, see that for with default, volumes terminals. is I are people opportunities you be there we say then would decline. to production it Yes, is crude I you

than In sounds production are the to crude with oil production NGL a reconvert you case what mean will I you crude of And declines, gain. it LPG, the simpler I assumption that go think trying is essentially it's make is. that it. dock to going if much

different Now return you see basins may that aren't that crude-centric.

think So have There NGLs I be of and basins those along maybe some a may those lines. gas. value or that in would resurgence

for think I us. there's opportunity some So there

Pearce Hammond

Okay. very much. Thank you

Operator

Jean Please next go comes with Your question from Bernstein. Salisbury Ann ahead.

Jean Ann Salisbury

Good just wanted on and morning. I follow-up in CapEx to major the beyond. XXXX

if some someone like a and check before, blue am the I lot that's what it think noted has As means. been market just I it deferred looks the that of wondering just that bigger ticket should cancelable items are penalties being if Midland-to-ECHO for if still Or of that? major like to PDH so? X as think it there and X, choose doing we you do of

Jim Teague

Yes. Both of those projects are underwritten with long term contracts.

So mind, cancelable. not in our

Jean Ann Salisbury

about contracts? cut. decide then impact is X Texas will Texas Would whether take-or-pay there that And May a RRC enough. Fair on I Okay. think this

Jim Teague

I that going prorationing believe And to no. of are anything for answer The to a don't do is minute production. in they terms

Jean Ann Salisbury

Thank for all me. That's clear. you. Very Okay.

Operator

Wolfe Our Research. next question Please comes from Keith with go Stanley ahead.

Keith Stanley

morning. Good Hi.

and the on year. seems cut delayed really sort major are like $X a follow-up billion isom only slightly Just canceled. capital projects CapEx the It for this of the was

you you of $X of So connects billion pull of well of major changes less out that need how much to are the budget? the margin things guys just the and the to kind smaller the for able on projects versus environment lay out

Jim Teague

am I question time? And you more sorry. repeat Yes. one your Could

Keith Stanley

normally you is the major environment well you that out of are support CapEx versus am much fewer which connects in delayed billion wondering where in have your projects lay could and slides, projects only that really how the smaller cut. $X I other The slightly just producer from growth? things just

Jim Teague

say, attributable the to would significant larger was I it projects. a amount Yes. of

If a for $XXX bucket have $XXX you projects may would, accounted that was million, other of million. there

Keith Stanley

That's Okay. helpful.

have question. of I your have just the side impacted hard, events really thought you selling I the guess sector process recent the federal on curious issues, on C-Corp am but question, Second deficits exploding other just very obviously which kind fund how here. then off closed-end

you world months? how happened about on given the the thoughts any think Just C-Corp past the updated what's over few in question

Randy Fowler

will hasn't standpoint the Really the and C-Corp advantage versus uncertain I in priority positioned take funding is and be of our getting to here times these executing It's us that contango Yes. a really and few MLP these business on weeks. been opportunities. about of last from to come some honest. liquidity evaluate in

there. think some I investor you hit things have you invariably can like turnover. seems on it I some key mean,

I key I it six fair the on you taxes our hit if last going to including roads. of income share the C-Corps point, think in a over going But I come is MLPs down think everybody had weeks. in more here I think pay and

will see what happens there. We

Somebody has me these the packages. not the surprised those think reevaluation. just $X C-Corp the that of deep of got dive of for trillion we tab stimulus some into gone saw names volatility But we a pay and what I was some to plummet. any or kind also frankly have names all But

Jim Teague

think he just have been what I said we damn is, too busy.

Keith Stanley

you. sense. Makes Thank

Operator

with Please Our ahead. from Spiro next question Dounis Credit Suisse. comes go

Spiro Dounis

everyone. morning Good Hi.

start strategy. on want off to Just

Jim, earlier are leading capturing been have volatility. and share, taking or into downturn this mentioned You more approach focused aggressive you on a slightly slightly all more aggressive more embracing if market we

market approach? changed that either accelerate really organically And M&A? change actually in just to through So has you anything or an curious, capture environment, here see ability anything or do does share this

Jim Teague

was I understand to it the question. guess, hard

Spiro Dounis

Yes.

You guys.

ahead, Go Sorry, go Randy. ahead.

Randy Fowler

Yes.

a bit repeat maybe could time, louder? more little your you question one If just

Spiro Dounis

problem. No

leading aggressive competitive more fairly share, this. really been customers. you some to pricing sounds have on attract capture were guys getting market re-contracting into and you like to It trying So

change here. So environment, at in had just mentioned bolster sort of everything you curious up. Does Jim, volatility just you that embracing this all?

and organic same try do Or So aggressive an and go share? the there here M&A up out you some you assets? pick just approach of market opportunities capture path And there see is there? curious, to that on with some more the actually do side

Jim Teague

we And Yes. export an at I M&A I is right our think would dock. that don't about look think there talked we LPG yes, on now.

willing and us, contracted go If And to compete and get you with dirty. dock that we better out. down be you

of record a we spots got a couple kept we value. a track in embracing creating think volatility, And terms I then of of have month. XX-year

comes for say refined have that LPG. am sometimes I volatility, we floor, it. from But products, much sure forms. we on different And falling how embrace benefited credit get crude when we in the not

itself case meltdowns hurricanes We the now that's that have and aren't through having And opportunities normal footprint Coronavirus. lends financial in that a been there. through to and circumstances

Spiro Dounis

the discussed right there some falls or guys forward. And X into pipeline it going underwritten one the largely relates and the to also a just then cuts there options asset size? those of scope changing I ground things back around is around in idle some understanding and Are have to there I joint steel that am guess that is there there available what CapEx or focused for And to you? of the maybe actually Midland-to-ECHO has volumes future Are are potential Understood. curious ventures. imagine now? obviously some One you as the I pipeline specifically some ordered have move moves to Webster. of you just being that instead. been to pipelines options the optionality is that maybe Wink my it already, some connection

Jim Teague

joint reduce the of none into Yes. every on entering which CapEx We businesses, assets by one in ventures of that touches virtually assets. can are our

Spiro Dounis

everyone. you Thank right. All

Operator

from is next Please question Mizuho. Moreen ahead. Your Gabe go with

Gabe Moreen

Good morning everyone. Hi.

One JVs of be to that's of then point? proceeds joint depending fair say on really to other Just Is it Or some not also the able had strictly that going potentially on And terms? guess, you on form a there. what's follow-up of get the deleveraging questions are going, this about you commercially going shaded accelerated, on being of from, return? are some go capital to or I couple potential to to depending ventures. which at mean you in if something blue could is projects to there to the talk actually I can get able would use whether

Randy Fowler

in that. whether in of macroeconomic it buyback, more energy Yes. and of on really for think the time, on looks come was reduce that the XXXX part, backdrop get we point first I be on distribution we Gabe, JV proceeds areas it decisions any what in really visibility delevering. this or or demand be need capital, just CapEx from additional to use any would would through like it the if what any growth be see there At proceeds before other to opportunities, like go make we again, return other looks may any any room had, incremental it to where incremental and through we

And Gabe, part the your what of second was question?

Gabe Moreen

Yes. blue, have for you deferred. It those JVs which in you that was projects which are some shaded just on you of whether the some negotiating have of

JV could the how mean, -- brought out, back depending potentially brought, So be those I on works guess I

Randy Fowler

one, And all Yes. across assets said, where it's these that's for that Jim Gabe segments. discussions, four with on

Gabe Moreen

Okay. that's those I talked back how of when of opportunities about terms capital can marketing I assume the a I don't might the in follow-up just sort you And half working XXXX? type maybe also, then in working recognition. be. of might that about realize of one to draw. if number. earnings usage know Randy, capital it's about then I And just had dynamic large the talk care you recognize and talk marketing you year the cadence you the

Randy Fowler

Brent I earnings. the let timing or the Jim Yes. of will hit

I think commodity working the capital prices a lot execute from one of benefit on doesn't it to contango. is take low

Jim Teague

Yes.

do and had think large we get biggest some are we mean The year. past, a way we throughout to capital you be I where $XX it's rather $XX, a do the the opportunities to less. hell contango, I think in lot spread. working see, I at probably in going the oil. contango going is large the of crude is by have And

Brent?

Brent Secrest

of kind you based commodities, see balance think Yes. Certain And some I out of frankly, other month-by-month. on commodities it up liquidity have we we to for targeted have and these year, things. to going front. the numbers are the But show spread the other closer

Gabe Moreen

Thanks guys. it. Got

Operator

from Ujjwal is question next your And Pradhan of Bank with America.

Ujjwal Pradhan

morning Good is Ujjwal. my Thanks question. This everyone. taking for

just your around repurchase. First comments share earlier on following up one,

you informs that So buyback repurchase little current program your to a flow view distribution your how how ask the environment? operations? to from units appropriate the XXXX And cash of in differently, do the on maybe yield question plan X% beyond the

Randy Fowler

Yes.

year question goes, the far XXXX distribution since public As our in have provided have every IPO. we since been growth distribution we and as growth

distribution one provide our to objectives consistent been growth. that's of is time So over

back been the I go asked may am And it probably over was have that's way, time. important, to you going different answer. to so same the question But a

again, stop And this need going progress that's historic. additional we visibility what we three economic doing it's any the months, just a more before have how to Given about is to global of at the think lot six we that to sudden to progress. decisions a are basis, I there just now uncertainty make uncertainty, of any we going have investors capital point. above next of months And how had returning this are on

where your I months. and good we come really nine set your rating, balance sheet, assets now liquidity. right over the for. time mode think this in six, of point our have are debt your protect next in that come and a a is you up lot And opportunities And big got protect us in execution protect we three,

Ujjwal Pradhan

is uplift there. rapidly? that And reversal appreciate what your reversal, my sort up your that the despite partial second from how plan. filling question about thoughts regarding And of you reversal? I you. expect came you already Thank Cushing discuss Can PE

Jim Teague

Brent?

Brent Secrest

that you what our and Permian frankly Brent and you. access because market And were access was Yes. came Secrest. financially look to our crude saw at basically to about there buying guys market. Ford was producers a the that This what going storage. is whether open flight storage was and wanted people our producers in That was ultimately We on Eagle was base that where customer have oil, and or the

it it figure them lot efficiently approached and of cost team There to quickly. in a place. things of still be could his still Bacon Graham do figured out out very some that And and if us was reversed. how to

the So opportunity just side our was another optimization that a led our behind and solution And also on it for that. thought to customers.

Randy Burkhalter

Tina, Burkhalter. this is Randy

couldn't fact but we we queue have before our and anybody got question in are up take calls the one apologize Given call more I we that for end ours the coming going in, today. to after get

Operator

you. Thank

Please Bean comes question Colton next Tudor with go Pickering Holt. from Your & ahead.

Colton Bean

will keep it I Thanks. here. brief

noted all think shaping LPG cargos month. was in of So to I exports, Any discussions just detail to to those you May a preliminary around terms June? back that headed or be circle up are where record

Jim Teague

don't that Asia, know are and going I doubt and of. large anything I going think I they Europe think America. South is by if anything I to to

Brent Secrest

of uptick on increase they was It's had saw an I mainly India advantaged. certainly, we that in. and the say Indonesia. that things are geographically India would area big bringing were one But what

Colton Bean

around of just that. Appreciate it. when would to And some maybe on we there comments Brent, curtailed. Got follow-up why then, production and your see

maybe exposure keeping it look most expect really and the is South that system, would across an you more rich have exposed? As nuanced Permian regions eye you any Or your that are are gas to be that Texas you there other on?

Brent Secrest

light. I Delaware Basin would say

are those while. condensate opportunities the I You stepped of a And market. saw going resurgence. the think potentially as areas I That see for that's out or frankly, with have did certain Rockies away going Haynesville, to became little buyers challenged that a Eagle some then to some whether differentials from that. Ford there. And offset are

Colton Bean

the Okay. appreciate leave I will it there. time. I

Jim Teague

me replay let information. and our go before the then call. ahead Tina, the off you end just we would we today. joining Enterprise, you for you. And you give the give again to information. thank replay listeners if And us from And Okay. the get are Thank again, could call, say going

Operator

may a for That information, conference code conclude (XXXX)-XXX-XXXX, On you replay Thank XXXXXXX. access you does for participation. your dial our today.

all You may disconnect.

Enterprise Products Partners (EPD) 29 Apr 202020 Q1 Earnings call transcript