EPD - Earnings call transcript Q4 2020 | Enterprise Products Partners L.P.

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Operator

Good morning. My name is Dexter and I will be your conference operator today. At this time, I would like to welcome everyone to the Enterprise Products Partners Fourth Quarter 2020 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there'll be a question and answer session.

conference recorded. this reminder, a is being As Mr. Randy your conference. President of will begin Investor Relations Burkhalter, Vice Please sir. go ahead,

Randy Burkhalter

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

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

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

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

James Teague

Randy. you, Thank

and and with provided partnership. reinvest charges coverage, to cash the flexibility reduced billion we our XXXX. dedication for As enabled XXXX assets, distributable income net diversification of shy million we We distribution capital year. impairment $X.X our X.X growth of magnitude XXXX. earned to of the reported challenges million, just morning's Net of in in our were compared Randy us financial billion, DCF Distributive of $X.X to businesses for XXXX. depth of are the efforts the our activities, self-fund for a DCF of lot our release, perseverance occurring Enterprises per XXXX businesses control $X.XX the compared and and and by cash by of in or commodities, all was or completed $X.X year flow a billion storage attributable cost from unit XXXX. XXXX The their sheet. proud income billion for and asset unit flow of non-cash billion We common multiple really address. holders $XXX times to net able to The fully XXXX We pandemic. per balance and basis of DCF retained caused well performance the generate diluted the perform for X% be and $XX our transportation This across said strong There's going XXnd $X.X pleased continue to $X.X for responding a our unit significant consecutive virus marketing in folks. this proud record throughout our XXXX of to press supported which over to is XXXX XX% We $X approximately for growth. we of was on corona to to

personal consistently We use judgment are both and of how work their they proud in lives. good

uncertainties as and for rebound as the of the direction. this world way to optimistic price our the strong world through banks including domestic this vaccine We're can demand where We've X without pulling of our Long soon the refined continuing all in offices Enterprise ethylene in we from year from been seeing energy same half term of potential are would there lead we're this the recovery were no teamwork place results significant about this takes encouraged as and in living we're the thing. signs sudden space, first economy analysis, As in and billions companies NGLs, for work is not on and XXXX propylene evolve continue it. see and appreciation energy second same headwinds in of the of is stop same global still the more with to you began for have power schedule energy the the we're to the was with growing that outspoken that the with they and the alone a what we and the population don't in prosperity. when will We the XXXX, way poverty that evolving been billion by consultants demand your work emerging stimulus zoom one in believe we products. year. international very the and economic will in that and people, in most of combination There

We successful through our in strength efficient are believe more market changes of to repurpose and a expanding fundamentals. technology using record assets and prosper this position track We have we financial energy a to to to adapt in in of continue to become period.

company growth Our has term long the in a that those by objectives balance power of in are and been projects we today projects that partners, consistent attractive in went XXXX XXXX. service strong sheet, into cut. major when investing stayed through never a returns, growth with in public distributions building including for place protecting returning We limited with capital our to have responsibly $X.X billion

to over BCF quarter petrochemical don't service propylene facilities. capability gas on service at to ethane in under and anyone fractionators pipelines ethylene trader include years. we and point, those at X next Gillis of in the pipe on markets XXXX Bellevue, Bellevue, one projects second Morgan's develop other our the day XXXX Ship sea expected a logistics on at in that know in [ph] BLGC come approximately facility export to the move have which We LNG a hydro propane and be and of capabilities. two Acadian our at projects We come and growing And put schedule, have a capabilities. coming has placed and our of Mount natural ethylene will Projects propylene $X.X [ph] into in XXXX. and in year. co-load sector, ship Mount will Louisiana. and Channel And service same I storage next several budget, Midland-to-ECHO on PDHX our remains that We projects service billion Pitkin the construction into petrochemical on two included of into related our line lateral

on focus In cost to costs. for to plan industry managing We give have in XXXX continue total shout to by billion substantially special response $X.X want we for We out and operations a our control. expenditures conditions. XXXX reduced capital to changing our over growth

without were reliability. sustaining $XXX All approximately Enterprises costs safety XXXX, our down For approximately for overall million sacrificing XXXX or million CapEx were than budget. budget. this And operating versus $XXX lower

Enterprises that been for politicians them. [indiscernible]. have ask pipeline generated again. production coal. from North more U.S cost renewable. a U.S been to and proposals And sources world's people the still energy might natural of of the to often world. all Russia, call replace will billion around Security a for the all them, prosperous, it the the make our forms The and and and million bullish oil traditional advanced, the nothing to to throughput. new limiting prosperous limit one transition energy stroke you these richer gas production, not try more is affect tell positive But believe may different effect. growing transition, X this traditional notion needs. to sustainable while on have you does for frankly, in dung And is sun people Consider to Iran the a of think has is is fossil address OPEC to abundant of and from life and take oil cleaner want energy and polluted. petrochemicals live American low our the care successfully administrations. soapbox frankly, the and the expectancies, I moment be Energy world nothing power exported but world's transition, hydrocarbon doesn't powerful that makes Without the from can done have, on supply energy business what the place. but A plentiful, the cost It have in burning issue. future hate really of don't the been will more from demonstrated nations approach shifting cycles, converted life. the world feature more fuels, and be and U.S severe difference quality model coal oil how Finally, I we you saying only Reading Keystone less to sure and provides it fuels. more just and a further is LPG. and fossil grown Seaway poor politicians are it XXXX without asset the from that homes on of people shorter our planet we and have, alternative less with a U.S Obviously, XXXX, very through cancellation and above mean implies administration meet to versus as our is can I'm that business have The this gas. a hydrocarbons, base one sustain require notion this away products. I even someone gas truth, this will that poverty we whereXXX as have. change will that India, that our who much in setting would could numerous since policy a to U.S renewables be is the has reality what making around The through US much regardless the the of people prices energy these supportive wood, word not what of our their have Stepping and be results to administrations. pandemic. news I There energy would that my about been required access understand is reliable Or shown would be from that off can low many one have gas deny have in Talk afford

enterprise turn be. through XXX the call committed there over are that, We years, that hurdles might Fowler. with here will I'll And to prospering in be Randall whatever

Randall Fowler

$X.XX attributable Thank unit fourth or by unit unit $XX or recorded charges of for impairment items. Net associated the quarter quarter lived per related in fourth long on quarter good or everyone. XXXX including billion and start and million, $X.X non-cash with to our and certain morning, Net the quarters was fourth some million $XXX goodwill the per $X.XX I'll segment compared per XXXX you, holders those per basis, and is were [ph] million, for for facilities. partnerships, were XXXX. asset assets push for diluted and the XXXX and Jim XXXX with gas of to XXXX. $X.XX by and fourth barge XXXX income unit quarter the income charges and income or for The of of natural fully common for for impairment processing that a gathering reviewing of of $XXX $X.XX gas pipelines fourth statement fourth services approximately unit the and quarter our marine business associated reduced business natural primarily

for working to $X.X X% activities billion compared to and million the from for on which for capital. the operations to was Moving $X.X respectively. $XXX flows XXXX operations for reduced cash for cash operations and XXXX. $X.X quarter less which quarter flow flow increase $X.X the used Cash from interest by we for billion free and billion for XXXX distributions to cash was from XXXX operations XXXX. $X.X basis XXXX both an a cash define fourth minus from Cash billion full fourth year, is $XXX flow were year flow investing XXXX for million On and XXXX flows. Free as was non-controlling compared for cash respectively, flow billion cash of

cash X% define as distribution as of distributions of versus our and from distribution represents operations buybacks, of and distribution Our payout a quarter, marked unit distribution will percent for XX% rights, $$X.XX from which we XXXX, and common cash XXnd paid ratio sum a X.X% flow February to regard quarter increase XX. year of was another from XX% equivalent declared annual XXXX XXXX. fourth distribution a We This be fourth the consecutive with increases. buybacks. which the

$XX.XX. quarter price an XXXX the bought $XXX XXXX, to $XX X.X During total program. at million million of for million our or of under our brought million units units X.X back we fourth average repurchases common This or buyback

common plan units the million purchase repurchased common $XX unit employee and million these XXX X plan EPD million reinvestment distribution Enterprises in programs combined Additionally, million on X.X market. or approximately for a fourth open And the units the market purchased the quarter. year full or during open

we generate beginning of we as expect And and the XXXX. flows what distributions. free half capital flow to cash free flow investments second access While cash as discretionary and discretionary currently to define cash in

we believe guidance enter and at year, Given premature the growth this as buyback distribution, be we the provide time. many uncertainties it to would

or We to of buybacks will programmatic as formulaic. think to continue as opposed opportunistic

For capital to proposed billion XXXX growth investments investments related projects XXXX, be crude capital the and sanction we spot offshore approximately anticipate capital figures million to and respectively. approvals. currently is terminal, it growth on $XXX are government exclude our based These and oil pending $X.X

million do our expenditures While our year. the even $XXX growth expenditures expect expect sustaining in of projects octane enhancement to these capital XXXX exceed PDH our if capital we expenditures and some facility phase, scheduled includes have currently XXXX of profiling to projects and facilities. $X are be We not this sanctioned $XXX several which with we currently development associated turnarounds approximately dehydrogenation for billion, underwritten of million,

Turning $XX based the XX.X debt December portfolio XXXX, total was again, maturity, as assuming date, years respectively. to Final was of the hybrids on XX, life XX.X maturity debt our capitalization, principal average and date billion outstanding our and for first approximately our call of years the

EBITDA cost for billion reducing of and was for debt consolidated debt effective cash X.X after debt Our for on restricted the the hybrid hand. treatment our hand, Adjusted average adjusting equity of was ratio on X.X%. is cash debt leverage XXXX securities, times and also $X.X

facilities, under and billion $X.X our billion hand hand, billion Our on consolidated much as unrestricted offering end, credit approximately that our August availability we did at liquidity existing was XXXX. $X.XX $X.X on was of this cash cash sourced year including from debt approximately in

was in it our well billion a to through $X believe $X.XX we to billion issued debt We offering capital XXXX, and advance and January maturing of in our August debt responsible offerings capital of offering. XXXX, in billion into fund raise total Going in debt expenditures. needs in $X.XX

were XXXX in maturities Our only billion. $X.X

throughout cash a sheet, this unrestricted have a our on XXXX our to XXXX we cash historical time, we end, from not of of balance facilities. capital debt our credit billion million. $X.XXX including most markets unrestricted balance to cash from be practice compares year XXXX, sheet in maintaining maturing. maturities result satisfied to bank $X.XX with of million notes of than of flow $X need on more the $XXX These balance a we August at and XXXX. unrestricted This total cash In billion liquidity addition As XXXX, will carried At perceive do provide our largely with of ultimately to billion debt operations. offering the access the $XXX in

on take February events And market that approach to everyone in on XX. February upcoming XXXX I have markets remind virtual elect XX we want factors, fund events other to and two to turning place may depending to XXXX that to capital will over However, debt we it debt maturities. conditions our we and turn before the questions, and

related will X day and I On the XXrd on webcast we annual traditional The sessions questions. through feature a followed AM available both focus at that, Speaker on website days we're discussion With be other will day. starting by the with we will each and live topics think XXnd, on Randy, ready Central Q&A ESG of for the our Time topics.

Randy Burkhalter

questions take from our are Okay. to Thank ready Dexter, Randy. we you, listeners.

Operator

from first [Operator of Instructions] question Your the Jeremy comes line Tonet.

open. now is line Your

Jeremy Tonet

morning. good Hi,

given start for maybe thoughts of basins share Just in question take producer to it supply Jim Tony grow. Other will off here. latest just if the from Permian and want I could what to like kind see, growth, your side, here, decline what could wondering outlook the conversations and Permian supply a for just looks on continue can on the we are the

they're Just wondering on going are on and And what EPD? that forward. kind of your impacts thoughts GMP also, thoughts all for how issues, with supply supply, land the encroaching of federal Permian kind this

Anthony Chovanec

of in forecast plan exited early you from on pronouncement are produce a in And the know, to is may this, of at move is on, being they to and That producers XXXX. and us, at going comment. the the I'll they're that acreage on share it are what Brent it's Analyst administration. this it to now where activity. we to he new where guess; some correct And of be saying, And most we want them look Permian it's the But next lion's you in and plan flat And supply what chime I the seeing are activity see. couch to if that they in they XXXX, you in, Biden short like Day. the on the going early a to to flat said, is production remaining we're that Jeremy, telling increase 'XX. long offered the public federal

lot This of or that for it they're a and said any, at me no feel up. speeding differently, they're come are state well when because XX% You change. acreage, Permian that, And would is actually up some There's it's and probably on weeks know approximately big two of from we What you know point, where hearing let headed. look saw at two producers, million the that's as They active it about are Only acreage, laying permits we're and of land that as kind But few, XXXX Mexico. saying I pushback. Most a XX nearly this we the more acres. if we is we federal we say And speak, some into New consider think, or rig I'm and XXX what it. of might at XXX down back look gauge ramping and I point this on permitted. land. there's political federal if ducks. at

look we it this tuned. we at did miss I And But when is holistically, feel. so, stay Brent, anything? how

Brent Secrest

No, you Tony. I think covered it,

terms not green active With there. But You it we to And what's our think talk guys we more know, is more the we they feels simple answer some know they to to going go don't we shoots, put rigs and private talked out happen. ahead permits to in there to rush of execute go customers, seeing get it it's timeline I customers. be And that play, have. the when and our done. some are in like a out have a

a kind producer case So, of our panic on it's case sensed talking to customers. from I the haven't depending but by basis,

Jeremy Tonet

That's it. maybe kind supply see And building it Thanks. Got as you helpful. of here. that off for impact XXXX

if expect kind couple that the with, wondering Just that of mean segment. of about? cam guess there turnarounds any you or XXXX step this down be other that I moving pieces you Does EBITDA would the should we thinking are XXXX in big from pet kind

James Teague

Yes, Jeremy.

You can you I'd far. this on in think what say, be We it know, the think, doubt what, could we soft million $XXX to could you hold I and opportunities. organization see we're never be you come capture resolve it tell we flat. I $XXX to But know, thus based of And, know, million

I see, in we're think year. we'll So into good shape going the

Jeremy Tonet

That's there. I'll very stop you. helpful. Thank

Operator

Your [indiscernible]. Thank of line from next much. very comes the question you

You your question. may ask

Unidentified Analyst

Morning.

long you XX% us at and about you're total upcoming So XXXX? down update leverage this can capital with thinking your payout the year how for nearly and term for ratio target, effectively

Randall Fowler

the call the and script. that conference refer in had comments I back to really I Yes,

where half to don't free a the to do mean, be of skewed or positive. distribution A flow point discretionary of towards be And, our provide up this the expect cash is, really discretionary our the in payout to the the we year. given we amount cash At free still generating on of good pretty year. start the makes I distribution payouts to CapEx I flow think, is bit guidance on second we'll our we big of more just substantial since lofty. time, in think want we that investors. beginning any going cash returned

going still just high So be fairly to that. based it's on

lot buyback, So we of before year, just front. into as little that a do we again, as of this year. get a enter visibility uncertainties beginning like better as get any provide think like I bit And on the we'd we far we the to guidance what to farther on

Unidentified Analyst

do up follow going And times leverage just then Randy and any below that, half on target? benefit materially three see you that a to to

Randall Fowler

is You it's, X.X know, times minus definition quarter on X.X plus term. X.X we our or set area a of times

that that, two target talking for our our about we're that's been being or now and So with target comfortable three still range. we've years that

Unidentified Analyst

just downtime PDP on PDH here spread date the with widening with offset then to fracs any RDP for upcoming? and Understood year potential to QX the further the the operations and propylene between

Randall Fowler

to want you answer? Chris,

Brent Secrest

With the as spreads the hard obviously, we're they way are, as out can. we running

to expecting we're this. as can as do with think much we I So

James Teague

The total, exposure don't about the to spreads are exposure that our spread. of wide, got XX% think have but capacity we to I we

extent it'll we exposure, how I'm to up. the we'll benefit sure make not So much have

Unidentified Analyst

Appreciate that.

turn storage what don't think Appreciate Just a expecting course and quick from use year? how to I final of that ethylene And one, the end some exports capacity; data the it. the almost until the December. you've of seen was online over you're there

James Teague

hub tank was the storage and higher before having year, of in us we just the high loadings tank our the pretty terminal online tank we to end And year. at allows was to service. operating rates the finished at at at rates. load actually were And dock Our that storage optimize but export the prior

So at global it's determined point, going this to we have in place. be arbitrage. But the by really contracts really, the by

Randall Fowler

spot for sold business. opportunity out with We're some

Operator

of from question One comes from Capital next Your Securities. the line [indiscernible]

Your line is open.

Unidentified Analyst

wanted maybe in little Hey, a guys. analyzing opportunities. project I morning, talked renewable the to about good you release, bit just into go

get want a for would just to that with maybe how and the feel fit you're looking what So business. at

Randall Fowler

got necessarily that specifically we've if projects. would that looking consistent with at are growth you said renewable we're energy not the we what opportunities, some renewable really wasn't it Yes, projects evolution,

Unidentified Analyst

projects bit Appreciate it. on go what into you that. be? maybe little details those got Okay, a Can more would

Randall Fowler

really. Not

Unidentified Analyst

this $X that higher Okay, move fair CapEx details you year. Any to what enough. around And push end? your little a around that growth second billion believe upper mentioned question I would to bit more would could you be,

Randall Fowler

previous question? The

Unidentified Analyst

Fair enough. guys. right. Thanks, All

Operator

Salisbury Jean Bernstein. from question a have of We

Your line is open.

Jean Salisbury

and ethane XXXX? storage will good I your you dampen ethane Ethane in come your and Hi, at more in on levels assess than is prices this if morning. record view Can existed. storage inventory U.S storage frankly high and knew perhaps mostly in

Brent Secrest

fourth mean, we're as roll I during little fourth came we're we was storage ethane trying it Yes, quarter seeing ethane quarter, off online. crackers bit the seeing, challenge clean as in back saw the a peak Ethane [ph] a to up. of

that I and I market A you fundamentally still get to of of how think seeing have if price with supply this things stream. as of look demand lot call. we're work it customers. to demand look you terms has from bullish. relates says and if to in happen. to some happen our baseline the think at about ethane, it to know, NGL I hear an to you think We've seen you to online, on hydrocarbons, talking you ethane, go work at coming what last Tony it into back think you're I go balances several price supply And day and sort have on outright weeks, the the But gas

I we're think fairly if numbers I know that from Jeannie, a we're I So, adjust we're aligned you back, -- prices see but some month means to people read markets these Basin, that balance from in fundamentally whether that have the reports, and think believe I I've think. or Permian whether we don't further or that I two need to away, going and to that that means bullish, coming months read

Jean Salisbury

Asia material And Or did comment helpful. propane prices for the to company? marketing That's January. if and of of margin to most much quite amount of go there? you. were shipping high that able you you Can capture Thank were a December

Brent Secrest

Brent again. This is

massive presence in a have NGLs. We

when fair price that NGLs, somehow So, in in enterprise I it. think it's to goes participate work to assume

Jean Salisbury

Thanks me. Brent. all That's lot, for a

Operator

the of Simmons next Your Hammond Energy. line Pearce from from comes question

line open. Your is

Pearce Hammond

puts my takes are for oil My what Yes, first you and good expectations And for XXXX? for your and are around thank morning. export that questions. taking view? what question is the volumes Thanks crude

James Teague

Okay, Secrest earlier. Brent we're that to Brent? going this the your show. Go gave as you answer

Brent Secrest

I If you to look can volumes, at specifically our enterprise. speak

gone Our exports have volumes for crude down.

in of truly a taught a has a is the that see the leaves the that the than that water. something our market. over the numbers, the preached a understand out is the lot I truly we that the us the Corpus, things lot in train is thing market taught So, has years, offer higher they've in recognize Midland last of is Corpus. I once is, water. one to too, take fact price us domestic the can Houston to the and to barrel station customers has heads is Houston barrels it that across that's it the achieve achieve the And elected pandemic that Houston reason What and the they and to and go a price there's several on water. not going I we've

profitability enterprise standpoint, higher somewhat we have in can it, providing price is the a problem agnostic service, Houston service, we provide say to from the but as the domestic I'd Corpus. we're Now no than

going water barrel. that higher is market net Houston. back are But market our the now, a across go achieving the to point, customers needs the barrel some right at to require once global in So, that

Pearce Hammond

Okay.

Brent Secrest

export, our the But you exporting. decline. some you expenses So, quite volumes revenue, flat. stay to flat when see comes frankly, it we from have then revenue will continue time undertake additional, could and to for there's frankly, when It to stays that

Pearce Hammond

in NGL of then XXXX? can the questions. drivers strength you and the that's the helpful. sustainable think you. And up elaborate those of Okay, super are current some the for Thank is, you earlier on market how on up follow my following And that's

Justin Kleiderer

Justin is this Kleiderer. Yes,

what XXXX, we've to a I and chain. of as for NGL chemical-driven. entire think it's supporting function I the all continue experiencing expect that's think The plastics demand value we throughout been

Pearce Hammond

about Asia? What in exports your

Justin Kleiderer

fourth on expect every front, export XXXX. the in to We think we volume the quarter continue as well quarter. remain to and I On through we set records seem to did volumes robust

Pearce Hammond

you thank Okay, much. very

Operator

of comes Fargo. Your next from from Michael Wells Blum the question line

is Your open. line

Michael Blum

Panama the your and what's I wanted impacts movements, morning, Canal to LPG of long future that on Good get a in Thanks. term kind or been basis? thoughts impact could more at on on everyone. going the how

Justin Kleiderer

again, Justin it. is this at Yes, I'll a stab take

could saw I trade you the think congestion with what to change what potentially see you and continue flows.

continue However, to it docks. would of I pay Gulf in don't think demand impact that and it volumes we day, that At Coast needs that barrels across to the materially get the so expected end which price need they'll to the there. clear do to

Michael Blum

I renewable Got a that you're release then source compressors power there of you that? And your goal press primarily elaborate pipelines? Is the along have on you the that sources it. bit from in just are your by guess, you power? areas Thank replacing XXXX. Can other you. that is to where Or little line source going think XX% a to

James Teague

I a think of sourcing from wide power variety the areas. is

Over ERCOT really we've as the to acquire plus, look well electrical as over been number at both we our significant going solar grid last years, and to of power XX if sourced new the provides been of renewable power. facilities. more is drivers more The opportunistic, a out go as the years power amount and able from

Michael Blum

thank you Great, so much.

Operator

Gershuni from We Shneur have UBS. a from question

open. is line Your

Shneur Gershuni

is as a out? kind of pipelines at Cushing? it of about as kind last of lot about can the versus I with great how the in the off different way going about just or centers market question on should we be on Houston that thinking There's sort terms And to correctly? And crude your how egress there out there evacuate kind thesis. Permian. been thoughts I And it? should broader dual egress versus emerges sort overbuilt market? the Hi, of it center over about a of along look Is of wondering I to Is the that up towards demand price think to of think to so and of entirely a plays start kind it egress over about thoughts year so when lines itself how over of the centers? good just a a for Corpus on a come Cushing a talking You just that I'm and-a-half industry demand morning, to time? everyone. Houston there And we there wondering be Permian. demand of so Permian for the the to discussing were your forth, time, really wanted if re-contracting was get to for is talk pipelines

James Teague

finger to I high Jim. points him. than Brent me, pointing is more got but his This

Brent, question? want to So, that answer you

Brent Secrest

I think could that's what you we're between seeing flown guys overcapacity the to build of and Midland coming Cushing, the Midland. out ARB see [ph]

this from want I to are to that going to complexes Cushing. think go some there are Midland refinery barrels

like going at this in most If say they've you too done they to Much to continue volumes country, what Cushing. and there's areas pipeline down. go much capacity, would month-over-month, I looked

Now, and how to direction seen. remains that that pipeline what flows, be it capacity gets it repurposed, or how rationalized gets

to they Houston, argue, great straight in and flowing worked a the Corpus and water make. there's going barrels hey, I'd are no place as that far ago. months As to all There's work when XX bunch decision of

James Teague

to the building. speak Let's magnet you're

Brent Secrest

sell pipeline it capacity, people long-term. consumers. you not that's what people conduct capacity business don't -- weather point connectivity, or it for out access amount at that hedge want to and working versus Houston it that, transparency in hedge at In producers, week storms, when different on the water should a the Whether grades, last the on what there's XXXX, that's after fact, you terms hoping other and do but the Magellan, works pricing they across taken for with look terms it they to execute sell whether works back of in I take or of grades. have then versus different market millions in And they refiners, they they our hundreds buy, price you're grades, announcement phone Coast the you floating -- of the should while. look the from the export water there talking where everybody, it out people, a to a for you,' the And old go to frankly, if they gets are they customers all And there it the work beat I use their can frankly, with decide go doesn't can go once the around that the with frankly, look at take in across what that a in work have can and and that in for for Because if [indiscernible] like for to phone frankly, have think rings say, Midland. do if you we Gulf is Corpus of rings. Corpus, we versus storage then, of of need work ports that vessels saw refining they or 'Hey, to offer what

Shneur Gershuni

Okay.

be Gulf evacuation to So the than the bottom to the should line, more Cushing? valuable evacuation Coast

Brent Secrest

as to and that evolve time got We and some going contracts overtime is roll sticky contracts people lessons. people have work learn off. This over markets

presence barrels you our very from say, overbuilt. that But sit that something flows probably very, Midland and and can are small. In look Cushing pipeline is Cushing going Midland terms at from incredibly of to that there going is is on to

Shneur Gershuni

Got it.

you'd word to not quarter but to Okay, appreciate programmatic. I a use do out put is raising Randy, flows? respect given you the is target think your -- here. target in of green wanting XX% to have at definitely kind X% claim which the tolerating there leverage pivot back I perfect. discussions just bit thoughts remarks, buybacks, stock debt any the mentioned And buybacks, units, with little in distribution, X% would on your X% extra last want where your nature. of where part at, programmatic just any even that internal it's say obviously around larger on to to given the take Have Maybe use their to Enterprise prepared been before year. some to around or reduce in XX%. don't slides that a growth you word CFFO, of of they're cash a did the buy turn lighting discussion of you trading? capital? opportunity help It trading

process give us wondering an if that, on your discussion there? expanded on thought can Just you

Randy Burkhalter

off in it didn't head Shneur, just there programmatic opportunistic to guess statement Yes, versus about that put I this question and work. I

what to guidance list boy, in of into uncertainties we we has you not we number just was free with year, second and of just we as we're we the what think here to provide any place as what on discretionary, And them with year, The XXXX see down go The going we'll at X% January, far been to that year enter where should new the this XXXX. dynamic respect territory been come or You in talked the time. a flow We've target and coming for in can a think in, very really asked this getting in it's capital, And to as environment lot Coming be I this even increasing buybacks a sort a a this announced are uncertainties. and have of in on of we now half we're we're anybody. really years distributions back based into that that of with XXXX, at current come expectations, in about premature don't distribution do cash in positive. to has row. returning surprise distributions point a been again, XX been this buybacks there.

little wanted keep buyback, trying get like shouldn't it distribution. been distribution. power XXXX. comes that it bump go So We the talked [ph] of ahead for our when inflation, to just a in and to surprising. priority bit have when we But come we lot visibility have don't to about on purchase but We and more the a to

Shneur Gershuni

stay you and sense. the that makes today, right, color Thank very much All safe. guys. Appreciate

Operator

have Stanley Research. from question Keith a We Wolfe from

open. is line Your

Keith Stanley

Hi, good morning.

the XXXX of follow-up on outlook. One the

this kind $XXX seeing in outsized opportunities in NGL so So you If $XXX of -- maybe that think flattish potentially XXXX, million to comment backfill the you've what how thing we're far that want to ties XXXX, to, overall, past chem of Permian next in on XXXX you all is to earlier, crude what just saw the confirm spreads in markets think market-based pet I about sort wondering in in have trades contango Thanks. a I'm and XXXX. spread, how QX? the together? alluded I into tying -- was just you and being million XXXX contango I made think about

James Teague

that flattened be was it to going Justin makes said Randy and and I endorsed nervous. it Yes, Kleiderer

to him. So we'll turn it over

Justin Kleiderer

like I hit certainly to I'm reasons Justin, opportunities see that think it, be different be I'm to to different that and firmly chem, could than are what it's about is, you It Yes, which be than to we the But for that say going there. think you going on to. say be past going the and I XXXX. on the most we alluded to certainly going believe they're pet NGLs

there. feel to we forecasting good But, opportunities out think I forecast, be we opportunities but holds that we future the do there. about the can't

up to geared target. meet we're So, Jim's

Keith Stanley

then cleanup Great. And one just item.

it's working Just of capital this, thinking -- about and wouldn't large. the I but ask normally kind

You in over was reference it cash million $XXX of use XXXX.

$XXX capital XXXX. working million It For was items. in almost

over that's just assuming get we back that just you going would but when forward? to how this So storage a expect cash about that's marketing, to billion and I'm think dollars. greater and related should

Christian Nelly

utilization of couple the again, curve, lot be back forward that the look to capital next A as result. Nelly. it capital Chris is are this just lot Justin upon working of a going a and what what over to will of out there market stated, Keith, should dependent quarters. going back working be you -- that be opportunities that But what at uses is then just if coming

self-liquidating have are short-term those again, that deals high returns. So

Keith Stanley

Thanks.

Operator

next comes from Our from question America. Ujjwal Bank of Pradhan

Your line is open.

Ujjwal Pradhan

the Good press in the perhaps these to with for return just with you talk about budget? taking for release. I the the expectations are everyone. to press that noted XXXX ask to in respect Thanks three costs you And the associated projects question. in morning, release? the on my XXXX growth first going Could projects service wanted that

James Teague

capital specific on they're on time budget. projects. don't all I typically coming online, about we or projects, Yes, will that say of talk costs this, the

bit development. a We Jackie, we little not to lot of same earning under a too are and provide talk get support page? to reason competitors calls also of for we into detail. these we slides, on projects specific In development. the do what just much list returns don't the reluctant talk in got about that projects, We've and under a projects of about come don't

Ujjwal Pradhan

XXXX about versus know in question these I big X, contribute budget item it. to projects, X. see do of Page the budget. I it got which in I of each is My how was much the that? ticket sort PDH the

James Teague

in minute. you just Yes, $X.X me we you X billion the at when and come XXXX, a projects to a in expect represents in that PDH So invest bear when you of probably third it. capital look with the about

Ujjwal Pradhan

neutral would the increase be a planned That you comment uses. in reduction you. helpful. a that. to on your And with to whether it? regards renewable follow-up for that Thank it. costs to power Thanks power or Got quick current Could

James Teague

Could you repeat question the please?

Ujjwal Pradhan

to additional current renewable be that a neutral reduction costs your of will or to it? the cost uses, power power The

James Teague

our to neutral be current will costs. power It

Ujjwal Pradhan

it. you. Got Thank

Operator

from Your line of Michael the Sachs. Goldman next comes question Lapides from

is open. line Your

Michael Lapides

the end On Hey, loaded? that Meaning guys, couple thank year? CapEx? can one. the short-term my cadence kind one have you for very are That's the growth I bill then a When XXX-focused, is longer-term about six the XXXX, taking several I you of talk think of question. of front about and first CapEx it actually question. during

online, in The So, you some and how $XXX Corpus savings or realized then that does are exports? incremental do or last in million is to impacts come second Wink probably refer to one savings? for comes that OpEx cost XXXX, battle you And flattish you is there to XXXX? between that and there When for crude a fully when crude of Houston the the pressure or back so the Brent, EBITDA, think cost Webster of is Tony.

Randall Fowler

that one. Probably lot. a compared far take of more the not I'll as the bit the first year half, Mike, half Okay, a but in as first little to the second there's CapEx,

the primarily compared to have the XXXX, as big B. that at turnarounds and we far XXXX a will be in driver As cost, for us operating PDH

cost part to very data through outlier on supply base an lot of how sustainable chain lower kind optimization. a some area. did going a to one utilization in also of our our down a are that's cost costs track much cost. compared on enabled We we to on of In focus that We've our structure power XXXX. driving XXXX, costs. manage is So focused we negotiations Those us of be lot got

particularly sometimes, we're drive look sometimes at our at of that. we when of using cost the a savings, we fractionators, overall to look on And lot data really optimization value

XXXX it's just management reduction, feel cost overall continue on a and our going XXXX. will did that optimization. I about in in into sometimes good XXXX. cost value we that it's Sometimes But I

Brent Secrest

is Brent. This

continue think several to but going I Wink over with to to Webster, right the next it's up ramp up it's months.

And this so, on, Houston. from we've took seen barrels pipelines before came Corpus'

they're Webster, contracts the at out stuff, You and find all people this and Corpus who with what's tide when going to and to barrels obviously the who sticky look that pipelines has doesn't go Wink involved to from starts take rolling go out, not. what's we'll and

from to barrels take don't There expect that may to they would are pipelines. that that be some that those contracts to to I Webster. So, going Houston decrease flown pipelines frankly, may Wink are and corpus have to roll over

So, we've over seen years. happen last couple this the

James Teague

your What's contract your position? What's pipeline?

Brent Secrest

what's crude question, about for committed barrels going last, contract a to go and this XXXX a [ph] caught beyond. got day that into our we to out Martell and contracts endless million meeting. oil Brad is Jim's of position But To

weathering going to that we'll Basin say recovers we're have that's the So bunch I a feel years, but it discretionary barrels to Permian take to comes the it's storm, okay. hard of me until and for to when going be

Michael Lapides

if if to NGL as the think tighter the pipeline over-supplied yourself there? -- for an there's see Or or getting repurpose market do Do of other kind hope to think and that's even -- opportunities is hopefully market what you Do so you as well? so, tighten the crude kind And pipe opportunity owners of are crude side? you out pipes?

Brent Secrest

else I figure ways figure be a capacity repurposed And But properly down. And inefficient fundamentally Those shut to has has different do there's as be frankly whole to operators that. rationalized. to out. this to that something you or assets can the believe industry can out do.

market. I to it's at look capacity figuring as are the of to to how don't that in think not going look issues the that out it, these but go that naive we existing at, far we're assume into As some details we solve

Michael Lapides

Thank you, it. appreciated. Got guys. Much

James Teague

for question audience. have we one our from time Dexter, more

Operator

from comes Eve Your last Siegel from Asset question Siegel Management.

open. Your line is

Eve Siegel

My think Thank fossil most growth fuels really out, the sort question back premise, of underlying Jim to everybody. Good of I relates you. what to questions morning, are to going the today that disappear. goes laid of

it's so, offense. playing playing And defense more than

time. And term, forward? the term, So longer And buybacks. I really you want to growth? in do just relates Shneur's the leverage in to you really the good now? a the the other question, of live right that I you operating is conservative there if long for very question and being what appreciate editorial how pretty real opportunities with quick held stock you that, much about perhaps for think has opportunities consequences of folks is terms could, aspect but position see going have that are leverage totally long think I and How

So, thanks, guys.

Randall Fowler

Thank you, Eve.

James Teague

spell on exciting looking on And prices about we're be at a some Eve, in this to is I is can projects, We're we're sure we need things firm we create and bullish all some exciting I'm Jim. But Brent and future, believer supply. Tony ills said, I'm recognizing pretty the it defense. always responsible on but not as the not am. years that as offense price and hydrocarbon pretty prices it. the in that bullish heals takes working Permian.

in have of believer a down land we a be in going you're a to I'm if rigs believer there. think Permian, -- Eagle got you position Eagle a I'm I issues Ford, New the hell federal the in in Mexico, go maybe see Ford

good about are to on feel pretty I said talk I -- we things the about. there, out feel going and So about working things, not good we're we're

Randall Fowler

Yes. And that. we appreciate your on comment

at general that. little time. request partnership that. and back tortoise a bit the of and that where was midstream of too you got without and It hare was And long lot and we investor-driven term. midstream ER companies distribution-growth, to you partners you that's an whether went far their And do the again, You that a it little through heard and or had for the in look we're a that out bit the trying over -- conservative was whether distribution lot for durable something of driven. it a to build were skis periods We you over distribution-growth come a tried growth. on would couple of in distribution-growth, We saw a

them You've durable little returning partnership. about to a come trying and capital, we seen back a bit think we're build cut. And when again, in

returning thing other better on to We we're have that last that buyback, on deliberate future, to of track our hear in watch proven going in buybacks think, bite too. and investors, of these can the you the capital XX% back think I some a the return be our year. capital uncertainties. you to what companies But a out, to I and buyback, come too investors. do record buyback, and we you lot get But We'll continue in of aggressive again, mantra

deliberate. So appreciate that's comment. a little why I bit being we're But your

Eve Siegel

guys. Okay. Well, thanks,

James Teague

joining really thanks give you for And Enterprise here to replay Eve. all us. going at now. We're the for information? listeners our us. Thank ends the That today and you, joining management Dexter, leave call would please you our call team you thank the again

Operator

for joining. Instructions] [Operator Okay. call. Thanks conference this And today's concludes

may now You disconnect.

Enterprise Products Partners (EPD) 3 Feb 212020 Q4 Earnings call transcript