EPD - Earnings call transcript Q2 2021 | Enterprise Products Partners L.P.

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Operator

Good day, and thank you for standing by. Welcome to the Enterprise Products Partners L.P.

Second Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator instructions] I would now like to hand the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations. ahead. go Please

Randy Burkhalter

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

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

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

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

Jim Teague

Thank you, Randy.

extremely the the perform second to for continued well quarter. EBITDA We businesses second reported $X of during Our billion over quarter.

our Our was funded times flow X.X both coverage. than was for CapEx was second operations quarter our and from flow the $X fully distributable billion Cash cash more distributions.

our sit billion distributable we the providing flow halfway as billion, through in totaled $X.X So cash cash. year, $X.XX retained

reflect lockdowns. results demand for continues COVID some hydrocarbons recovery quarter the Second in economy ongoing reopen as the to global

X.X transported pipelines million barrels quarter. a liquids the Our in day second

day. in a oil a transported BTUs volumes. quarter X.X day pipelines XX.X it equals Our billion transported million equivalent, Summing crude the gas up for XXXX natural that we all barrels second

of near X.X remained volumes million barrels or fractionation Our day. a at record strong

time backward-dated day, Downtown marine X would least home in was strong be by that continues second slipping XXX,XXX a needs pandemic. a already had to pre-pandemic XXX were of dropped We short, $XX to oil negative completely overnight, at XX,XXX to the this the severely distance. felt XX,XXX we But at inventories I as traded XXX, and record of In hearing different. we much In started rig at we’ve crude black and own on a all back, to before the had second and deeper Cushing was quarter for by barrels gave were being were I were proration We had this second are first headquarters now. masks last fast was touched. very in been moved barrel, people than Really, million in But mandatory worked and we today lag and markets April for paying XX, production that If year, were around quarter looked signaling our And were attended our excuses. We weakness people Producers exports. counts wearing self-financing they year, sits the [ph] prices, returning XXX Houston. not and less and every a for are forward barrels was shareholders. shows land insisted sanitizers products Natural expected by an at has markets We held liquid in day, returned from listening. as a a make known barrels down over primarily from a we all middle for because our performance and we the protocols. hearing, $X.XX and Today, set million that and cubicles. due our testimony as pandemic mandated. the to volume of around customers crude a have think time and averaged It X.X stay what volumes product we propylene the We put We capital, producers to had I We it amounts are into This advantage XXXX as of on worked. determined Commission our steep to so environment was keeping have selling. WTS on hand which gas the lower to debt, an to the office day, quarter competitive producers. hole their XXXX handled terminals empty the to building. last our in buying like virtually plexiglass we it in Our doubled this some. collecting money, really counts production team, returned and quarter, $XX. XXXX. and shut to probably growing. worldwide. more Texas straightforward and system to about sentiment contango funds $X. Railroad their Rig on make arb wouldn’t than Almost I know, significant the

the $X. levels March has and increasing worldwide, and demand. Eagle for from the gross gasoline a recovering idea moved Permian, prices $X.XX. of has of responding products. key billion as over XX%. product We barrels, spreads year, It all are to fall. imagine have virtually to low barrels at particular, what, Natural of Wholesale economies Propane $X.XX a last The for and everything processing X.X Gas XXX is an couple $X.XX, have won’t This inventories from last in billion in a at demand $X.XX gone through gallon, go gone XX% refining $X.XX from Crude Just from $X.XX below Brent. pressuring hard million at Ford up moved in our to moved supply chains. of significantly around least year. time And continuing though, was low ethane it’s to increasing selling Today, them. to a was you overstocked $X.XX. to X.X as it’s to anemic normal of an Today, from utilization to $X.XX give gallon.

largely into backwardation. flows contango steep commodities flow while in our cash because different all – the Our from are movement markedly cash of

businesses feels hyper-growth. like time prove our time they today the will and perform employees something of again that like regardless Our in environment, are and what

of press a a bullets release lot details this While way. has or

processing, This significant described our operations. assets and year’s teams. I’ll last storage said cost steep gathering we on leading our the transportation leaned our weight of arb worth as volume year, and was what volumes who pipeline for increases the collapse, system, generate by cutting gold During way took our its with up And is considerably, advantage in we and at with significant contango is as prices the and steady. time, in marketing we a exports, coupled with hard fairly are in

update capital. to on an Moving

capital billion. $X.X our growth for XXXX We be to expect

We haven’t don’t think, changed, I Randy.

of of our For the pipeline on XXXX, ethylene to rest system the the be expansion schedule we and systems, to construction gas propylene our and Giles, our of natural continue hydrotreater. complete to gasoline Acadian

$XXX high economies respectively. to to – $X.XX in projects a grade in our see demand momentum Our reopening for due demand $XXX around currently which sanctioned PDH these from is we market spread refinery XXXX is capital to pound. petrochemicals $X.XX from development our global to the of we of The be The that caused caused million million and long-dated surge are durables, has couldn’t some has pound X. and XXXX to expect under polymer-grade business. historically with widen the But in pleased a as fundamentals propylene projects sanctioned. developer and a largely increase growth CapEx the more We

our total Our segment, planned was a our our contributed due which business out petrochemicals and The the petrochemicals five enhancement strong to propylene segment and of operational by led refined products of lower six records. from offset results turnaround. financial performance octane

propylene of planned XX% with quarter. in Our nameplate plant following average the achieved of maintenance Belvieu the Mont and throughput first XXX% record PDH splitters of our strong of an at operated nameplate, margins,

lot Finally, the we a of petrochemical of on it NOVA. furthering our feel growth petrochemical We a it and about recently midstream our in meaningful didn’t our in which strategy. good transaction, the that the our position business space. in hubs, take transaction strong momentum is very acquiring cash yet ethylene milestone petrochemical and is development This although is closed key another storage from a

pleased We’re how assets quarter. our last our with people again performed and

prices we be see that both and with The bullish for in year, outspoken been came the about nice demand a on over well have been inventory most to global supply recovery is pandemic accordingly. global We excess participating it’s why preparing strong the for extended will have And cycle. have believe part been and we a exhausted. been very what

and from and globally, both that, With We increases U.S. the E&P Randy? production upside appropriate in continued the in expect industry. U.S. demand, healthy

Randy Fowler

morning, good and Jim, everyone. you, Thank

was This basis. for both for unit to of $X.XX was of I’ll or items. First, to $X.X income on for second impairment income common second Net segment unit, by reduced or the income the XXXX. quarter unitholders non-cash $X.XX $X.XX attributable common of hit XXXX. second per charges billion unit of $X diluted and per common per fully quarter of XXXX a diluted quarter fully XXXX Net some billion the the of compares second quarter the

swing or $X to the XXXX. second in flows. by from $XXX for of provided two on used cash the operations Moving quarter, The billion between to or explains million increase. cash the compared the of Cash XX% working accounts flows quarter billion capital for to increased second $X.X quarters for

the comparable June flow will on million for This billion, June We And during purchase approximately a distribution in with to employee the again, define second market purchased So working distributions a ended X.X% to again, as of was second cash in XXXX. our investing months projects, plan paid the cash open venture out XXXX. compared August XX, respect $X.XX we of Free in XXXX. $X.X operations increase second from combined quarter distribution interest joint non-controlling for compared or a ended to $XX units less represents million the changes $X.X billion reinvestment That to flow and that the unit per of less distribution XX. quarter plan capital common common activities, EPD the EPD’s paid XX quarter. unit accounts. XX XX, months trailing $X.X XXXX. declared be

as of evolution to midstream our which – our C-corps a of available XX, margin. some ratio, while tax at regulatory potential XX percent the had the over priority energy trailing our non-peer energy policies industry financial of XX% projects, buybacks as Our In payout Compared pertains capital for the MLPs, months on the as for visibility are continuing requirements opportunities the flow XX, data, percentages. flexibility it and and we cash we to the is months highest to we Enterprise March the XXXX. as distributions XX as latest operations which one cash related ending better of from XXXX, define term, wait near June for make assess federal and we was and payout

plan the buyback in do be this year. the in the of The opportunistically we common would to half However, amount we to $XXX units million buyback XXXX. of probably second comparable purchased

our was capitalization, XX. outstanding total as billion to June approximately $XX.X of Turning principal debt

first life call or the was date final Assuming of years, XX.X our XX.X years respectively. date average hybrids, and portfolio our debt the the for maturity

Adjusted of debt the and of cost $X.X for ended. $X months average was second effective is XX Our billion XXXX X.X%. EBITDA the quarter for billion

content leverage equity to partial cash. consolidated after X.XX reduced unrestricted debt was Our hybrid times the adjusting for the and by further any debt securities, attributed

consolidated our of at facilities, cash billion unrestricted including and million $XXX Our was $X.X credit availability hand. June existing approximately liquidity on XX, approximately under

will on we we August an forward Randy, in have for intended to to think that, you our XXXX-XXXX sustainability the complete is of to publishing which we’re and our report available X. read I annual publish our to ready next website. report Monday With report look report sustainability XXXX. questions. Finally, it, supplement hope on The our We update, next be expect opportunity summer

Randy Burkhalter

Shannon, Okay. Thank take you, participants. Randy. our we’re questions from to ready

Operator

Thank question Our Jeremy you. JPMorgan. Tonet from comes [Operator with instructions] first

is line open. Your

Jeremy Tonet

Hi. Good morning.

Randy Fowler

Good morning.

Jeremy Tonet

it onshore evolution see this some as something where in that little do concept, the provide the Is itself, if stored? kind possible energy on more hub might solution? you so, as to just capture, and a carbon see to you of there? what carbon it’s be or more at relates wanted if the a on as able point detail, you an is possible think Do And to bit offshore in wondering, Just Ship you think the follow-up you initiatives could future? be something of guess, do there that I Channel

Randy Fowler

both. could it be guess I

chemical infancy company at looking some of. stage, with might looking low-hanging so and that. oil low-hanging depleted company we we’re advantage are be that we Permian, can in take a still Tony, could can we fruit. sequester We’re it beginning we’re there offshore, then along do And we’re but see major but major And you’ve beyond in you to what got case that what a think to I the fruit and reservoirs some make as an mean to

Jeremy Tonet

I is poor offshore. was onshore kind line But gets curious Got wells, VI Commission change really XX, as here. bit line kind materialized what far federal for things it. this in primacy things could decision to do over? coming Texas just could really sense. Railroad here? of you versus the change Class think here. XXQ curious the as It could get together you legislation And a onshore really I that if of on just the really we things seems time within if time that the If that more guess, the But influenced the think type also That makes – here. of we’re guess, issues infancy like be what

Jim Teague

immediate this? sure. Well, it’s can you not Tony, for add

Tony Chovanec

of Given any of me. short front of would regulation that’s feel three do in you surprise the anything us, years different? amount Angie,

Angie Murray

No.

think on about right I that’s timing.

Jeremy Tonet

leave I’ll it. there. Thank Got you. it

Operator

Thank you.

Our next question Ann comes with Salisbury from Bernstein. Jean

Your line is open.

Jean Ann Salisbury

questions Hi. A Good about couple morning. quarter. the of

pipeline is lower usual was on its on and Can release much some kind it rate. from Dixie run one-off down much news me ongoing Maple rates? gross expand to how grades due but how of to referenced X% that? also margin volumes and and NGL kind lower downtime, Your clear to you wasn’t XX% of was The

Randy Fowler

I’ll that We one-off. a call hydro impact. – would a was It’s test, Dixie a that had be, so

Jean Ann Salisbury

couple was and been XXX it’s the kind guess, a years. in you’ve since that of for Okay. been a low while segment quarter, of Because that I

So to plus be hydro norm, that if the just should out trying figure for my new some test.

Randy Fowler

And, Yes. Jean is Randy. this Ann,

also system. we’ve integrated were there some an think got I

But So we Louisiana downtime have the South had we extent Norco. to also impact have volumes that across over well, down system, on may could fracs think some the NGL moving as too. I

be may there in that effects So ripple some well. as

Jim Teague

Yes.

was I I believe, down. think [indiscernible] probably,

Jean Ann Salisbury

really my then Okay. you talk something that has of that Thank NGL it helpful. to the strong, you. price very your gross That’s processing hit strong prices but obviously is Can or also kind or is why year-to-date have else? because And gas about other you margin. been seemed question just been hasn’t hedged

Brent Secrest

in NGLs, guess I terms this Ann, is Brent. of Jean

peers. We of probably key it’s but have some as not some exposure, much as our

same obviously. as wasn’t impactful don’t crude when business that the as of very ultimately, benefit in see it’s more as prices I low, others. think our in do it we the been high on year, higher, probably drives don’t I much it’s to in vein we a terms gas was think see our others. of have of terms have last So what of just nearly And we of kind prices, volumes. were is parts is when that where what not then to ratio effect other it probably business. delayed to benefit, as we And prices us In benefit as We benefits

Randy Fowler

impact not And, elect extract processing the assets. not would you be processing reflected it the associated a downstream be with If would your at that on as there And be well working we to as the may that plant, be economics Jean on – may as extracting ethane, processing Yes. which and out be anything, plants. we as Ann, is one at cost far ethane. benefit variable get would other plants, the benefit

Jean Ann Salisbury

lot. makes That’s sense. actually Thanks Cool. all me. for a That

Operator

you. Thank

comes Our from next question UBS. with Shneur Gershuni

is line Your open.

Shneur Gershuni

prepared being is of for you and on beyond? of of ratio, everyone. XXXX XXXX a signpost comfortable kind and forth, to you ideally of basis this that? trailing $XXX feel could like of highlighting today like buybacks on today of thinking a more the in XX% the so out payout you’d million does be just we Hi. include year. a not as with kind about XX% buybacks. Just unitholders, policy whether with for but buybacks outlook shakeout commentary how about for XX-month about curious portion you’re CFFO, Randy, returning I a to for spent kind pay time kind of thinking which capital Kind to including of bit Good wondering of it morning, of appreciated the remarks the where kind

Randy Fowler

go in. in deck – in time flow the Shneur, what a I know a shows our deck back investor to slide we’ve have percent been cash as I payout Yes. got over of that our from operations. has percentage

capital some accounts. of provided of changes used or And by that’s working impacted by cash

tied memory, I’m and on ranged will time, XX% we I you go in much money off it have going working depending But to that how XX%. to probably capital. So over that back move typically, around mean, say look from want I up has if

So, the and like dialed get that’s a think wagging to don’t the precise we’re into percentage range. think going tail be I I dog. come a almost that in

is I what cash on flows off. think business, going of some are it what’s being more of in the we kind thrown seeing of

don’t in get or I think going XX% a it XX% XX%, So, would as or more range. but precise be as we’re to

Shneur Gershuni

makes That how for Okay. then Appreciate projects. of CapEx understand that sanctioned you’re sort And sense. I Perfect. follow-up about you have that. a $XXX to thinking XXXX. of million

evaluating move year? or projects where Just it’s But larger-scale you’re the or even there are expensed there for to number energy right of kind now? in the terms spot, million of business kind are evolution permitting are addition in that process you’re that than the In any curious, on by evaluating evaluating, you’re today? any whether of $XXX base that’s you projects that could more next on what

Randy Fowler

that’s call a provide for detail, and It that can’t commercial are see we’ll a year. could. area. that said so those then where longer projects the still that to off think, if above. – be Shneur, you wants in had $X add we to, going come We I today, we just really the XXXX? were I get in provide add. Yes, sensitivity, $XXX in But you calls and call we billion January a our kick run this, mentioned that I’ll see few on the Jim guess, be in with if back good I lot could think billion working to – for think Yes. our weren’t Jim incremental we lot term, I see number I rate next where going of detail. and could go it – in of what million it to that’s said, could something know a to he if go I in $X.X But could around the to growth what April, quick CapEx. to in term, back don’t near these back come we’d But

Shneur Gershuni

Okay.

the X% range So, just to next of X.X% of re-clarify, range, so to of the year? is kind hard kind top hit the to but

Jim Teague

hate underestimate I how – to But, yes, we our guess. we that’s feel.

Randy Fowler

to have Jim. hurry, We’d

Shneur Gershuni

Really appreciate sense. Okay, the that color, great have and day, makes perfect guys. a

Jim Teague

Thank you.

Randy Fowler

Thank you.

Operator

Our Truist next Tristan with Securities. comes Richardson from question

Your line is open.

Tristan Richardson

Good morning, guys. Hey.

remarking PDH highly this quarter, based turnarounds run the you’re seeing spread on few just had and strong Clearly, Just is when on looking side. you facilities to available there, what propylene some general from are a business, online gross particularly past a But results good quarters downtime. utilized? margin the at and perspective, and on the this for petchem the rate and is spread have

Jim Teague

Chris? with going this kind in the results. be near think hanging of In here I to term, we’re

Chris D’Anna

hanging the there? We in with agree. Yes, should rate run same Jim. and refinery in I running be utilization everything

Jim Teague

up. pull-out with I’ve can’t everyone talked a was and CEOs from And catch is of what both Well, companies. they – me couple petrochemical to they to and said I

things do of see it. and So, us that probably we kind like business more in

Tristan Richardson

million think opportunities. in recent might you is – how any kind million spread guys talked the $XXX quarter? $XXX think great. or quarter, figure that’s talked of of million. about over potentially That’s year $XXX million I north talked I historically, have should to if of how most past still And And of about, as changed you Curious XXXX be think the given there that’s of we about being comfortable then $XXX north a

Jim Teague

will North conservative. million of be $XXX

Tristan Richardson

Jim. Appreciate it. Thanks,

Operator

next Our with instructions] from comes Wolfe [Operator question Keith Stanley you. Research. Thank

Your line is open.

Keith Stanley

to wanted clarify just first, response items. demand I morning. the Good Hi.

total the to million just also, last looks across was it for I So want like $XX gain confirm that’s benefit, to year the that’s seaway. the that the And incremental QX about release, then you $XXX and and the million quarter. talked in Right? fractionation

Randy Fowler

Keith. Yes,

in And So, in total. second we’re the $XXX benefit quarter, $XX total, million. I the think looking what was at million probably in about we’re – then yes, around probably

hit reasons is until from around was far And the as definitive some quarter of settlement frankly, the program. to Texas and clarity were the as the we why going the what you around State see that second ERCOT of on waiting be didn’t LRS

Keith Stanley

Got it.

on question capital follow-up one allocation. Okay,

I return how you So part raised Should in distribution into last distribution guess, next similar the distribution growth of you thinking year. just slightly announcements? generally QX story? buybacks versus timing expect the back, about looking year are for we as capital growth And

Randy Fowler

think the come the in the I don’t take And for or next here we’ve Board where increase quarter. stick would think we year. But in that’s really cast that. think Keith, Yes. and at comes every years, I mean, in. stone. a we’ve the probably January the to it we done I announced I three in last distribution look two

distributions The return that’s capital is most and we’ve the an – cash thing distributions. buybacks, way you whole done. through MLP. as If to far tax-efficient versus what your partners on we’re as And to

company we’ve think – there a that midstream our – that got say not we’ve this of that is XX I year out increased there’s in I another And row know the I that. distribution. can cash

really distributions our are So first go-to.

buybacks, I see not on level to just visibility CapEx, go need depends. out. our the we lag in just I I think government lot the we’ve dragging But willingness thought get some of right talked that think lot into now, and a and to depends It as we what it on like because options demonstrated do and would to it have policy doing marks. only the question think better buyback deliberate coming buybacks. known by side, come there’s into professor But of something we way of just your think it. a level the that’s in to I things time, calculus I be CapEx going As need in but of now, one we’re is, on looks but of we as far

Keith Stanley

Thank you.

Operator

Thank you.

next question Barclays. Our comes with Cho Christine from

open. is line Your

Christine Cho

Thank you.

in start I LPG Is could market. you’ve coming recent the months? what if is what propane been be market maybe could there guys been So the preparing It reports seems potentially what buying in of PDH thinking with There’s market color facility like your marketing buying cargos just have the your this but than a are kind you you could that take, be back any marketing would weeks. been short that amount helpful? on subsidiary for more back guys –

Jim Teague

Chris. it I’ll Brent. too cheap. We money the back to bought more the give fees We doing could Brent? Hey, something it and start because make with were else propane.

Brent Secrest

get molecule the it and I keeping dock, it of Enterprise the to have, at and every the dock we we in across look day, what value of at achieved we the the isn’t worth what it. what the That’s we is end across system. versus mean, what

Christine Cho

some mean, things Now dated, the storage seem didn’t curve would so just like out. potentially be later, it could going – is for hedge is to you able like backward I into this of

Brent Secrest

a as storage look not would it at I play. Yes.

Christine Cho

it it’s if what along SPOT Can for production need repurpose isn’t those Okay. U.S. XXXX CapEx? potentially used And the just process you else? go your on you where given growth around would give is? something gulf? update would you facilities expectations especially assets to still necessary? just And over is next the export to why overall And your could to regulatory for an are, hit milestones crude spot, What look then just thoughts the be. Or you

Jim Teague

Yes.

one But of we system. we’ve think needed pull It’s anchor, the we’ve others. got got is I still something and that through think strong things. from interest – is magnet a We to of things a some I SPOT your to kind serve. believe that pipeline

come to EIS final the expect out. We

quarter. Coast we we Guard. by it’s is the ready, I a time last And feel Marriott to think project. from permit like yes, fourth the it’s the a in expect heard But

can phases we Now, and we do. this what that’s in build project to intend

Christine Cho

existing keep crude And you along still your facilities would Gulf? the

Jim Teague

I’m sorry, did ask Christine, you that.

we – at the think out of to LPG looking a our to I need Channel. need expand capability Ship we’re

So that’s expansion got on ship looking we’re in what talk on at the me LPG we’ve projects channel. – here? facility Sanders Let our to is Bob – him – some

Brent Secrest

We enterprise have assets. lot are contracts long-term a on that of

And so joint venture if petchem terminal, venture existing, the crude use it ways we need have then those optimization to relates joint docks’ on more But be partners have for oil. an NGLs, what a as there’s of the would VLCC it we still as and between and partners. there’s to

Christine Cho

Got it. Thank you.

Operator

Thank you.

from Our Goldman Sachs. Michael next question comes with Lapides

Your is line open.

Michael Lapides

you capital project allocation of the it And about relative even some of about deleveraging, return of question. for use you versus whether capital has guys. special A is How to more CapEx, of to on Hey, little other theoretical capital distribution is? of make a my taking buybacks payouts? valuable course growth do alternatives? or Thanks bit that a think new you think cash is what distribution one. your the just How to or do think cost what normal allocation hit when – kind

Randy Fowler

asked chain we project, a look because at capital if what are return Because you value in you the come Yes. system. on of earlier. Michael, and was the when I’m CapEx and look the project from come at the look we with on a in – but glad we our what you buyback, benefits is also you incomplete and we factors one run my things when that’s at downstream at that, again, look there is that in that, our I actually answer

ability add to of come in if project, volumes and So we our has system. and other to incremental add incremental the parts a margin it

coverage also we were at think economics. to And look X.X%, I times. know, this as return. that to EBITDA mean, increases And it yielding, we X.X well. about our I I I that So as on is I adds don’t adds think, – it project the morning, look on holistic Compared a buyback, X%,

probably back think that because, math if yield, flow and out between maintenance go cash CapEx. that’s about again, from I is think I cash – XX% XX% you So, it distributable subtracting if rough to

bogey just the that’s returns those that look two at look on that So we side. we threshold. from return the are the the of buyback at a And

Jim Teague

all you? Does that it for cover

Michael Lapides

Yes. why table? And distributions about off be think to there a Are special trying That distributions. helps the reasons ever ton. any would just special

Randy Fowler

I reports we’ve of in sell-side It Michael, a that the you. turn really effectiveness past. contemplated seems dismisses really in I’d the bit, not I special on mean, question read of like lot what them distributions. little a

and years, have the XX per If And the analysis distribution period, an for – in it special the our some correlation price unit. has an sector. flow the that XLE, guys to the unit come the EBITDA. crazy price, to actually ran it’s to cash only years, of when but inverse is and equity you correlation not correlation to really, highest the we – back a has capitalize the me our come to energy three day, the years, has inability to correlation correlation, five price that It inverse you you’re pick other and unit able the – markets I being into understand frankly, in S&P

didn’t So, head we anyway unit that that the price I generate, generate to the we cash our cash scratch my that correlated anyway.

So, bit a of I’m little a we’re quandary. – in

what correlates and way efficient, I go to is distribution would most the or I to said earlier, be anymore. know distributions. But partners unit don’t good don’t price tax-efficient I through if return because bad, what limited back So, capital to our the special cash to know get I

Michael Lapides

Much appreciated. Understood. Cool. Thank guys. you,

Operator

you. Thank

with Mizuho. Our next question comes from Moreen Gabe

open. Your line is

Gabe Moreen

transaction Hey. a guess one private of – Good gathering there a peers announced morning, with equity-backed JV was your system. everyone. Recently, I

circumvent, something antitrust beyond think past. if that, interest maybe of you’ve wondering it in I Just like the potentially some is issues raised

Just what on curious that? thoughts your

Jim Teague

thoughts Our on that transaction?

Gabe Moreen

Yes.

Specifically, and out either a it if quite the the consolidate equity sector the for like assets make over sense might areas Permian Ford, Eagle or a private to when bit there? piped way owns in in example, of

Jim Teague

we Randy, time. kicking I tires never. the we’re guess never And, all say

spending a lot I what the time doing system trying tell joint don’t the with Do private I’d I everything, a But, equity. are we to can’t you, I that, would now private joint Can look at interested Brent? in venture to that determine looking us opportunities you… see we venture but As be of repurpose. equity. and mean, pipeline our to we’re know a at the right you, with

Brent Secrest

to never, mean, but never at, say look opportunities comment it. of I lot a we’ll see comes there’s your we of what that and

Gabe Moreen

for, the what’s And tax kind I I for things, for all really if I kind infrastructure those rates? looking can maybe most wondering of policy. and what about it just comments – in federal Are to of be looking is stuff Randy’s as out should the, it mind? the on kind build, What pertains waiting you then D.C. the ask prominent, your of Got specifically definitive just I’m follow-up we guess, permitting, of of specifically above? just guess, of it.

Randy Fowler

Yes, Gabe.

industry energy – I think I is I it’s some think even above. it, of the a it’s bit we’re And little you conundrum. of come and even a the of all could in say in mean

Jim Teague

the on about supply talk demand. and you not on Randy, focus

do You on that. good

Randy Fowler

at heard XXX EIA what grow, the on year. I back for the least. we’ve supply the XXX on be like to in but Because addressed to I supply. last you they oil it are is year is this and in the crude the part look get policies those that what expectations, decade, of but – we’re again, account. countries driven there the in domestic for like pick back demand. think, that being you IEA to XXXX. policies it in the not constraints. we’ve more and that trying And net-zero IEA, looking far of to to demand grow Paris really, the going U.S., demand on out in, to you are on rest matter what or to for really none policies of are only EU and seen gas think by million domestically And oil And by you day any more the And I are signed seems And And enacted EIA that coming really, thus that supply out Yes. to is have that end a anything by on emissions think at, crude But come of countries looking the come count, of have if no barrels demand of demand.

you’ve leads a and it that And – think is degree. so where us I seen to

across higher of gasoline end policy up bit a to prices energy going You’re on well. oil country crude prices, as a with be inflationary, conundrum motor but higher which in will the board, we’re the little at

they withdraw more they it’s the think countries, Plus demand. Oil recent Plus since recently were of agreement. in going I said has have well, price. Again, – world every the to it’s on higher freeze Prime seen and going climate produce produce drill in with and whether you’ve a lands, of but think go Saudi I is in going that I up, so in a some been have we’ve thing asking in and Norway capacity they the federal of guess, Minister but the the oil to OPEC head-scratcher. – and is, OPEC example come we’re a respond that Minister won’t part when of have other oil most oil Domestically, in ground. And you they’re last the and and more both or again, and I Norway, barrel mean prices I January. The And the to the we come on you this come to the permits that to putting – be oil to capacity on They’ve so at believe come just look, and because

of think there. out I – are so gave lot just there’s we unknowns a So, up,

in got on energy evolution. think role We’re early to we’ve a We this play.

midstream at we handling of get-go we early everywhere, geology. know sequestration to when we the this are energy be on that have hydrogen, trying whole and evolution than of fact, quicker lot we companies and this a do one we pipes look already may in companies, because the from respond carbon In on can that

need mean, will mean, changes it’s there that’s And that coming a tech if then how there’s thing of more energy or just whether in some we’re so I just going policy. much be is frankly, clarity, what we the seeing, think again, out at So on tax policy, regulatory other policy, you’re I in It as far But into that doesn’t in broad more as regard well. the on too. matter as what’s comment. FTC I the – government energy the

soapbox as not I my act in come but but see we on didn’t So, that’s on a but on get painting and again, to come forward. to – bit them more will mean little we opportunities – clarity. And you, just

Gabe Moreen

Well, it. you. Appreciate thank you. thoughts. Got all Thank those

Operator

Thank time. no you. And further I’m showing currently this questions at

Jim Teague

wouldn’t And if Shannon. you joining Thank Okay. today. for would all you, participants give thank we mind, will that, today. you With our replay information. Shannon, us call conclude the the And you please

Operator

Thank XX, p.m. p.m. you. available dial-in XXXX. And from replay call. to XXXX Enter wonderful Time a International or August the Please Easter A XXX-XXXX. for XXX-XXX-XXXX today’s be Thank access XX:XX concludes Time, will This X, X:XX XXX-XXX-XXXX participants. day. Eastern July number use have you. code

Enterprise Products Partners (EPD) 28 Jul 212021 Q2 Earnings call transcript