EPD - Earnings call transcript Q3 2021 | Enterprise Products Partners L.P.

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Operator

Greetings and welcome to the Enterprise Products Partners Third Quarter 2021 Earnings Conference Call. [Operator Instructions] It is my pleasure to introduce your host for today's call, Randy Burkhalter, Vice President of Investor Relations. Thank you, you may begin.

Randy Burkhalter

Thank you, Dylan. Good morning, and welcome, everyone, to the Enterprise Products Partners conference call to discuss third quarter earnings.

the we're for now. to apologize and delay ready but go Sorry,

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

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

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

Jim Teague

Thank you, Randy.

expenditures fully which is which and billion, our Our in perform cash of billion cash extremely though the from a retained billion by reported Cash provided record during businesses due hurricane continued We $XX $X.X Ida. of our year-to-date. even X.Xx impacted distributable funded coverage almost were was both to Year-to-date more has than distributions. billion, we capital flow to flow of third $X $X headwinds EBITDA and operations quarter. million $X well

strong XXXX. while don't it like going looks As with to are we final granted, year for head take our anything the in into of another we the quarter businesses year, finish

NGLs, recover. products the the ongoing global recovery economy crude, primary and petrochemicals refined to reflect as Our continues in demand results for

demand for restock liquids on everything We will provide to most continued gas, growth to backdrop growth economic continue natural oil and XXXX, and worldwide. For strong virtually plastics. plus the and need gas agree economic experts that demand believe strong

refined from profits had for to product sector. which flow our record operating service contributed from the and record to operations, the cash addition record petrochemical propylene In income we gross business, our

of Our we petrochemicals take in petrochemical of Long and multiple very chain, U.S. and splitters competitive that's advantages to distribution And another provide to spreads. strong able term, not PDH propylene positioned peers. copied. all petrochemicals complement almost including storage, one exports. remains their midstream strong likewise, advantage easily global It's have compared and fundamentals to Enterprise services, footprint value our a and the feedstock, are strongly were

levels prices processing liquids to X.X levels from benefiting substantially higher for pipelines Enterprise's pre-pandemic natural volumes the a day. day. at XX.X at barrels In gas a and pipeline crude volumes recovered supported transportation pre-pandemic near oil for at a with day XX.X NGL million quarter have were fractionation total, remained equivalent million record Bcf barrels NGLs. the gas pipeline for quarter. Our XXXX barrels our a exceeded million X.X third transportation day a volumes

of production quarter for and -- stages expand used of various that Liquid approximately those third include million varying by barrels projects. pipelines which natural construction content and $XXX sulfur We hydrotreater, gas in of systems. startup. day. are motor were natural propylene day. blend a projects was The a a gasoline major for projects terminals reduces gasoline integrated and X.X petrochemical barrels of XX,XXX Our marine stages stocks pipelines growth our several the handled XXXX the for completed million organic volumes These third quarter

quarter expansions the Gillis to expect of the gas and XXXX. natural fourth complete in lateral We Acadian Haynesville pipeline

industrial Haynesville to Acadian strategically supplies and markets. growing gas Haynesville to Cotton gas and growing are Our Valley move higher-valued pipelines located natural and LNG

Ford. including plus get to production believe in nonassociated we products of the remains doubled is order can heaters and sustained a order involves $X utilize X, price well on modifying the of parties. to relying the to their we utilize for We has like increased dictated balance the their gas receive U.S. on Xst hands improve of beginning to fuel of for $XX prices produced to signaling and in produced at adding our of as gas facility like by This We every gas natural hydrogen. price OPEC and and has project excess fueled we environmental plant. the business level companies than prices almost hydrogen world Haynesville by hands oil stronger need But butane. in sales. the XX%. very by on responsible large will quarter disciplined encourage co-product who highly emissions in change be We their Construction to carbon crude hydrocarbon in rather and natural second in is industry impactful on year the significant of design barrel, gas. and will in By the year. -- PDH future, need power they wars. April believe a bullish all at also completion that us. of the U.S. path barrel seem our XX, an prefer a OPEC+, of on capability is point they going like the a absolute crude now any expected PDH seeing project with is for plant's of some oil equivalent doing similarly for ratios as have to hydrogen that budgets developed is and since believe value the on and don't oil provide XXXX. natural X WTI since reduce pricing on places they have X up Clearly, to staying with The PDH remains propylene schedule the benefits the a as upgrade more price We higher now economy. interested lean XXXX. we to to budget became prices the believe now And the $XX in propane signs to are that Likewise, Eagle the the

their demand U.S. of global and hydrocarbon liquids a a into significant has for because the with that very presence Over environmental what evolved proud in We're years, growth has XX of that, price transportability. franchise And reach. last domestic a and it's we've transparency, global attributes strong seen Randy, yours.

Randy Fowler

$XX $X.XX good common XXXX Thank at reduced charges of $X.XX this $XX fully third unit of asset XXXX. Jim. impairment Net this compares or the everyone. the basis. per million a Okay. was In and $X.X to charge per quarter for year, statement, by unit noncash unit for on per diluted billion attributable diluted to basis you, $X.XX or income third for a to unit billion This third looking common And the the $X.XX morning, third the or common quarter $X.X of on for Net a of per quarter of million unitholders fully was of or last compares income income quarter year.

$X.XX our the noncontrolling for The for cash We billion cash operations distribution quarters. It of interest, flow a $X.X the Moving the on declared September to billion to the of cash activities months of that for third XXXX. the of provided the working quarters flows. of between paid investing quarter for swing approximately months $X variance benefited $X.X Free in Cash XXXX $X.X billion respect flow X working used accounts compared from should unit quarter net of XXXX was for quarter to ended X from net by cash trailing-XX flow a from third by be favorable the represents comparable of November billion XX. to This $X.X flow on cash between capital accounts. quarter be which distribution by is the operations increase the cash or XXXX. for flows per million in compares of XX third XXXX. capital accounts billion, to was last year. JV billion noted with to third quarter in of substantially quarter X.X% less cash XXXX, XX, the provided compared for less This $X.X $XXX changes the to all operations partners third

During the $XX repurchased quarter, common X.X million we million units. EPD third approximately or

purchase reinvestment open million during EPD employee $XX the buybacks, market these EPD's unit combined a to in purchased addition approximately units quarter. common third million In distribution the X.X plan or plan and

This the past ratio, after cash by capital flow is payout decade, of consistent a the as as maintained our the define have for cash from adjusting cycles reported, we was which of Our sum for and working XX ratio over throughout XX% percent buybacks XX% as changes. cash months and was we the volatile with the XX% payout business to and pandemic. from cash XX, flow operations operations distributions XXXX, provided XX% September ending

process for planning the We of XXXX are our in middle the budget.

financial priorities facilitate health with for a are capital allocation goal long-term of partnership. approach the to Our all-of-the-above the

supporting first priority Our and is distributions investors. growing to

complement midstream objective growing investments our system with support rates cost have the Secondly, flow unit. the to that of of excess capital partnership's return in of cash of per our that attractive

enables to risk sector. to that weather regulatory evolving us to the business is and maintain flexibility financial Next and cycles energy legislative

be Finally, to basis. opportunistic it will buybacks execute on an

to XXXX we growth past guidance in years, for we plan As distribution announce for several have January. the

million to repayment notes as busiest be reducing extend of was thank During by X.X%, of coupon senior billion avoid senior point. demand year. of X.XX% of billion of and day We support in general of company we notes on while used were mature We XX issue the investors fixed this the their the to almost than our for income XXXX the the the quarter, maturities $XXX continued fixed interest to to X.X% at to net like for able would of offering during in had quarter a We percentage the senior by February $X $XXX -- X.X our the rate years proceeds third issuance over including issued notes risk. elected $X these coupon refinancing with rather debt rate our that million, XXXX. purposes,

During renewed September. credit the XXX-day also quarter, in revolving multiyear and our facilities we

multiyear these to million our the billion. of $X.X Together of to In we billion facilities, capacity with addition the $X.X to by proactively decided we billion $XXX tenure have reduce size XXX-day $X.X overall these extending of facility, facilities. the under facility borrowing

lower to principally have a under whom of while billion traditional level capital commitments to our by Over bank of been X or in our also Enterprise's past industry. client credit of response reduced expenditures to commitments be responsible we pressure proactively trying energy total expected have capital bank, has a investor years, the reduce to XX%. This been to many $X.X the

$XX.X Our outstanding of September XX, as principal was billion total XXXX. debt

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

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

and our refinancing under to approximately Our consolidated $X.X cash already credit September XX, EBITDA XX, market of approximately opportunities. at facilities quarter This of XXXX. available the while $X retire primarily elevated cash billion billion cash including provides availability senior and billion having next available of was for hand. standards respond having us unrestricted $X.X is in to additional completed by to XXXX billion hand, to -- quarter our on the the flexibility amount includes also year. bank It first $X.X XXXX, XX billion due was of liquidity on months which notes historical September of $X.X third and Adjusted for ending

the open hand. after questions. cash for adjusting by debt Randy, leverage can equity partial debt on it reduced for treatment Our securities X.Xx With we unrestricted and of that, was partnership's consolidated up the the ratio hybrid

Randy Burkhalter

Thank Dylan, ahead, Dylan. [Operator we're questions you. you, Go Thank Instructions] listeners. from to Randy. ready take our

Operator

question Instructions] Our Shneur line the from comes Gershuni [Operator first of from UBS.

Shneur Gershuni

are return buybacks. capital. was accelerating potentially your can pursuing if of thoughts share latest peers I Many your of around you wondering

increases so in electing Some producer of special forth, A are to and seeing pursue instead have reactions. growth. of stock announced customers buybacks lot positive we're the investing

would you've if thoughts. preference past, where increases? that about so a buyback increases you kind but some distribution to so, stock special respect with trading thought Washington, uncertainty is mentioned given there process your reconciliation out. there's at wondering distribution or now be latest bill all? is these of And about the or draft In And thinking Has towards a changed the

Randy Fowler

Okay. the appreciate morning. this Shneur, I question

capital, in Here -- it's of -- allocation think as I think prepared we all-of-the-above when remarks, stated approach. our we about

been have deliberate on buybacks. We

-- we clarity -- out, is better think may the clarity far see uncertainty. as in still some of get over and don't. you will we're And And D.C, we regulatory And Washington, the legislative that in because as of few working, come looking I we'll months. next and -- get

time time need -- that to On research I point Magellan to to August the MPLX, guess, performed actually we -- they all when what was -- those buybacks. period bit see were that period that. it September notes to mentioned during in was they buyback think saw with activity announced were give underperformed we that that did that buybacks, much and the they little you time -- Magellan market I since where And There more couple a in then buybacks and the actually line referring they did others. you from, of time a in during the had pretty reaction they

So at I think bit of good and of their outperformance performance years, don't would that make knee-jerk also to cash. allocating think look -- the a the go I back ready to buyback. if I we're a result note as we're we or a several reaction

Magellan a distributions. lot we capital come and of of proceeds as really that the note, returning which been fact, to through investors. not we're from been the asset come had -- makes ratio, just of in in, We Magellan asset year that but the has that's to proceeds to And increase much of payout our has In one result you've again, I'll they've noticed, if investors, sales. a in principally has in their but in. last paying out way returning sense. sales highest

say be midstream January. that We're coming XXrd XXXX and any through I year distribution our can announce we'll are in company year would in growth. think don't what cycle. marks other budget going We'll that. So our come distribution plans XXXX of increase for in. our next I note

And we it's practice our and capital includes on to provide any but and so come to and and in to our in more budget go buybacks. that come both investors return -- clarity to distributions we'll And need that. through cycle

Jim Teague

out look You a good did priorities at, we right? your script pretty job the in laying

Randy Fowler

Right.

Shneur Gershuni

unit got I $X distribution next actually that more the little guess lines annual the we'll pivoting future. and was billion in growth guess Okay. a and Maybe the see you the here. for I count along color. you've that it thinking if would of distribution the appreciate bit I a that reduce I But fund wait update.

next sort range $X.X tightened next you of the Is sort a cap, that winning growth CapEx the for I to you range guess, kind of -- year, of year. billion Your the seem for and of have some process is and ideas some remain dropped disciplined of off range of function if it producers wondering on table? buybacks? and kind off there. the Or to on tightening Just of a dropping the focused prospects production more continue the on

Randy Fowler

projects not Yes, XXXX. of as a year. those dropped of timing as months X just off this expenditures of anything Shneur, on has more really that, of the table that maybe development standpoint that referring capital first It's under would been in from we've the far hit some when to

Shneur Gershuni

Okay.

of at the So end, the CapEx. end -- you're but day, looking growth at now, for high $X.X the right billion is

Randy Fowler

$X.X $X here things on growth our billion sit we is change for as X, to be XXXX subject into to in develop. as as get Shneur, That today – billion. we best CapEx November estimate will

Operator

from our the show from JPMorgan. Tonet of comes I question Jeremy line next

Jeremy Tonet

off if I might as Better passed Back just going impact it including forward, levels, wanted it with to today, the bill how it's see be start that -- renewables. the and it's be XXQ higher written Build just Enterprise

have it that if -- Just is passed? could impacts wondering would what on your business have

Randy Fowler

must Because some D.C. plugs are visibility have especially York Build there like of sounds New proposals Senate we've I is Finance it again, great the they there. you statements come to in have plan -- the of and Yes, out what what Back than seen, still deal pursuing a we that guys still Committee, Better see. Jeremy, a from better mean, Senate,

think much I in really is of in still a very plug. state everything So

costs, And qualified you items, of in to and not gas have actually standpoint the are The again, for which, oil to gas the And Senate fact, house activities pick business oil the some is MLPs. to got and renewable you've some got from MLPs drilling preference intangible they the activities. means that saying expand that looking depletion in up the cost House which you've to ways where Senate and from also they So do items, have Finance first on that the attributable preference where is eliminate in the tax fuels. fossil move counter for again to -- Senate to legislation then and the earnings out but of provision -- they and qualified we're go to in the Committee, -- start going MLPs includes that the eliminate to House. were the hearing want the to they tax Senate

sort the we better thing So again, that's have but the Coast visibility, and might you guys of last on see. East

As on and encouraging looking through the think credits now, XXQ it's amount come get the we But It's in pure that do it currently. legislation where come sequestration, to sequestration would carbon higher. a in I included on well. is of the is credits, or based I see we think, encouraging they as really credits, far order need to pay increase direct it's I that right would as whether to anything are just in in speculation on and whether be comment the -- EOR, be think be to also

Jeremy Tonet

year just just in guess, has in as Maybe past kind taking I has a not years a been of Okay. much. the curious, top Enterprise back, performer space. step This

year? to driver be wondering help could anything you Just kind forward relative out? changed could that performance of what of this think the be And going the

Jim Teague

one. You answer that

Randy Fowler

performance the go up as our we're and capital, business we're business far from the on -- throughout good would that we're cash Yes, putting recording we Jeremy, cycles. think flow that doing generating, standpoint, returns as we're a part we're numbers. back I

on energy and the is sector. comp the at that's -- think that's closely. our comp look when in the track call, As And I to last back most the we S&P probably I we highest that come correlation we're said

hard coming all And As has of dog execute our on going its comparing we're the today. strategy be in is capital of far and going say. as various what midstream companies, And to doing Every continue well. allocation to we're to to to above.

Jim Teague

we just or And sooner X.Xx later, doing a keep it cash of off. retaining lot pays coverage, keep and

Operator

Jean the Bernstein. from question next Ann of from comes line Our Salisbury

Jean Ann Salisbury

expand I NGL major and the million release, on XQ note Rockies were XXXX what's your lower you happening? Can $XX versus and fees to due Permian down you In that pipelines had thought of volumes. Hurricane million that competition. to referenced. safe impacts not from And if that clear $XX I'm NGL related rate pipelines also were kind is you relatively that Ida the

Brent Secrest

this activity structure Ann, There's Rockies volumes Brent. is in up a started of We the Also that the rig are up for see most quarter. fee little in has declined Jean to there, but to third the declining. volumes continue there part, decline. bit

In Tug, some we to Permian, terms on it the the help on to incentive looking relates rates as then, of hurricane, I don't any I'm at volumes. entice short the big MAPL. hurricane offered the transportation from And we impacts think impacts from you in term had

Jean Ann Salisbury

follow-up a similar was a Okay. That's $XX million question. kind on reservations. based lower the There my XQ Intrastate, on of capacity helpful. And is Texas decrease 'XX from

think contracts as Texas more roll? should overall Is see Whistler no think because here. sense Intrastate go There's but kind Or feels could that what do like of it of lower pipelines utilization that started, well? new as pipelines, in few makes kind the coming. seeing improve next more you you I quarters you're it that gas from on

Brent Secrest

Okay.

margins forward, and think I those those going to you're Jean volumes Ann, see better. going get increase

Jean Ann Salisbury

on trying a where like first said multiple about like I answer following incentive to that Okay. That from to Permian. get sense. competitive I use a guess my rates pipelines the you about Is you're situation, guess, Enterprise And sorry, has party. and them then up of to -- plant just the that question the makes what third quickly instead

Brent Secrest

to it. a it’s compete But cover money, the what and we of make lot we do. harder. in end That’s At some just these a have can we’re day, and Permian, ultimately, market, of the the that’s to costs very plants processing going if efficient our

Operator

line the from comes Bank question of from next our Mulvehill of show America. Chase I

Chase Mulvehill

downtime wanted I and coming I guess of at business. propylene days to margin first this up on was PDH strong the XX was Gross X. unplanned pretty follow million, on was $XXX in thing despite

And a $XXX guess go-forward is? talk maybe do could operating I that? gross So million a basis, sustainable you to what bit, just on number then this little margin that you how drove think

Jim Teague

you it? take do Chris, to want

Chris D'Anna

this that several actually Sure. D'Anna. fee, we have -- fixed structured contracts Chris Chase, the it's we number of is a a are but out, when that spread way Overall, blows significant a participate. in

benefit. what maybe across And issues as you saw then, of quarter until sustainability, to some to gets But just spreads. wide is So the we'll supply this continue a and spreads. global return of industries. some lot that back solved, And I that look chain when many I think think you at see to normalcy we

Chase Mulvehill

XXXX kind exports All And kind a On the ethylene today? LPG are Okay. right. just we to XXXX, in for as trends kind of of thinking you and seeing about what follow-up, of do ethane see expect underlying exports. LPG what you and move into

Jim Teague

say or or you both? ethane Did ethylene

Chase Mulvehill

I talk want said can slide to. as Well, well. you you that if both I'll to there in ethane.

Jim Teague

Chris. then And Justin?

Justin Kleiderer

Yes, which supply both a the the is LPG. forecasted. demand as Justin to Chase, But think versus I growth ethane case to probably of we is LPG, outstrip more I mean, and remains, pace domestic will of this respect story With Kleiderer. ethane continue is

feel So at we about whole to remain to outstrip LPG think about feel domestically, still going good we continuing a ethane full today, is prices export good of it's dock regardless continue to and as our we demand contracted supply. because how

Jim Teague

on you what right ethane are you full And exports, now? how --

Justin Kleiderer

a be should record month. November

Jim Teague

Okay. Chris, ethylene?

Chris D'Anna

contracted XX% much The run we’ve Yes. the be for can ethylene, is demonstrated us. month to And we higher than same for November but nameplate. to nameplate, record a we’re going

Operator

Stanley Wolfe our of line next from Research. the show I from question Keith comes

Keith Stanley

that with very the be upside do might billion, company project exploring CapEx the the considering economics market recall another conditions just I smaller up to on that? that propylene. the there been is Is have you'd strong And think -- to chunky particular might billion several going have There year guess to been splitter. about press potential for a relatedly, $X.X think was article I adding a next to how something or ones? I saying then following $X for local and you tied

Jim Teague

projects As we finalized, working on dictate splitter. Chris? a I at think that far on as haven't we're we we'll Do the of anything whether splitter, that, have some look another you

Chris D'Anna

Graham the And standard comment the a for we first projects is on tax can but this, piece of pretty that. and step have process

that's So probably what you saw in the press.

Jim Teague

rest What the of was the question?

Unidentified Company Representative

$X.X $X billion The to billion.

Jim Teague

I think a well CapEx. we're we're see some working that said, Randy come of on they could in an working Right, on bit -- as projects if that about, Tug? upturn little that

Michael Hanley

right. That's

Randy Fowler

That's And not project. Keith, several chunky that's Yes. projects. just one

Keith Stanley

Okay.

view Got Okay. referenced you don't think you a I'm think think in would your list a buybacks? more do just it's just special how which special -- is year something that an distribution and on MPLX. excess the that in versus question Randy, of you and was I clarification And options, a your that but it. option. next then about distribution had consider concept, cash assuming was if special to efficient about you if

Randy Fowler

and depend conditions the opportunistic think I we’ll base be on increasing Keith, we more on business do would buybacks. obviously, market on buybacks, buybacks, And then the all time. focus what at our way opportunities and regular also really see distribution, the

Operator

Fargo. Wells our show Blum line next Michael from I from question comes the of

Michael Blum

talk to Haynesville. the little a about bit want just I

there. driving systems? producers your can And us little increased around if a idea uptick an if the sort -- just give there. an producer uptick activity you're systems bit of what's you seen in You've volumes Wondering of seeing on those of in

Jim Teague

want it? take Do you to

Unidentified Company Representative

Yes.

opportunities not customers. that, perspective. activity only I'd expand customers, from potential more on producer but we're million in say, Valley treating processing working increased gathering, a from adding hit project our existing seeing one all some XXX seeing new Acadian we're Cotton day. So time, a to new from But we're and the a arise

and So add takeaway that's XXX of markets, another a X.XXX capacity done, after will of to Gillis by LNG the Acadian Bcf we'll that. day add then time

Michael Blum

helpful. Got That's PDH announcement then it. And interesting for X. around an hydrogen

to X for and to feasible possible? it application? effectively hydrogen retrofit not is trying Or is curious, PDH Just at same look the it that like

Jim Teague

Angie? or Graham

Graham Bacon

take that. I'll Graham,

can, limited There's used a technical the we've extent to think X. a we PDH lot lends better more for PDH itself X. I overcome technology on hurdles the but to technology to

Jim Teague

Graham? about your up, plants other What that contracts roll

Graham Bacon

I contracts roll where we versus think facility, the opportunities there's where well we and in can our look consumers there. we on we've off, optionality market, as options got how at got the we've and other the -- hydrogen, how some consume as

other look And we're the be all that those may suited X. to taking PDH hydrogen of Some probably than are even more now. at a units of right

Jim Teague

opportunities We've been -- as what other us to Michael hydrogen, to we've been think that for off, is, saying is I Graham ought be roll there selling our use contracts those hydrogen.

Graham Bacon

or got And you’ve market internally. to that option. We’ve option the got that

Operator

from Cusimano Partners. question I the Pickering and line from Michael show comes our of next

Michael Cusimano

into lower So NGL and an talk about it was hedging. of how XQ 'XX? those mentioned significance impact could affects hedges I hoping activities of release well as press you as marketing moving as the the then

BrentSecrest

I'll -- I think in Brent. this terms talk is --

contango it's margins the function And past. had a we of of Justin? storage terms of the in place in more the NGLs, terms aspect, that In on hedging

Justin Kleiderer

physical hedges there see Yes, I you realized product are think will -- delivery made. any be when is of

So as of as a revenue point, to COVID. saw I And of function significant I of storage would second half a Brent's think transitory. in view XXXX those XXXX the April

Michael Cusimano

Okay.

be So that? it's exposure would that you've that a like impacting away there's equity much not hedged less of NGL --

Justin Kleiderer

processing exposure hedged. very little have We

Michael Cusimano

also you improved in ethane segment, And XQ? negatively what the quarter-to-quarter. you if looks higher what on saw natural then it prices natural looking segment gas the like NGL to about you're XQ? for talk from the staying then the seeing affected like gas And Okay. today segment NGL segment, rejection Can in the that relative rejection NGL

Brent Secrest

in was that you’re terms on going so see system. I our think within rejection the accurate of forward, in terms going what of we

the going we’ll demand terms when time, we’re comes sector think forward, In point back. have to supply. where of going it it producers of see is ultimately, a fast But see to how to happens get watch going in I and petrochemical outstrip the to

recovered we’ll Coast to that Haynesville ethane away see like how to nearly has from aren’t the far that. areas Ford or be get the So the or or to Permian as Eagle Gulf places close as some

answers think question. that I your

Operator

next I comes from Siegel Siegel Management. line our of the question show from Ed Asset

Ed Siegel

X I'm could my and excite on ball terms terms the Randy, see I of of any now? the going that's in areas inflation. only philosophy going But allowed second of forward what's pressures the M&A have to are opportunity we pretty part you regarding And in business in one. expenditures And extent questions. set the X guess is focusing be inflation? the and the that are right questions, And what growth bad. I capital crystal forward, around just that? the inflationary but inflation, you is distribution then that So

Jim Teague

take I'll take the one. you second the Randy, first,

In terms good of what to pretty of would at we things repurposing we've is -- we the like do, we been are Yves, -- some pipelines.

along we're probably along, have to tires. can And look is Randy I concerned, pipelines. if all as a the we it. has price to you So not M&A lot comes M&A, and what right we're as repurposing price said kick looking probably assume going where far -- that And a we're at going love matters, of at

Ed Siegel

there you becoming a get is you strategically, I been can from Has about I in -- interesting you? a said shift about there? right price. just how bit mean, what little of subtle and M&A more I And interrupt a But to M&A? terms think

Jim Teague

I your think the question. By don't second that's Ed. don't think way, changed, changed. anything's anything's I

are more valuations some are what maybe And think means. that's price a little matters better. little -- I

Randy Fowler

to, I to have your over to benchmarked mechanism our revenues going some question. are I there, say is inflation, of guess, in now Yes. various third On escalation XX% sort indices. of And which Ed want what

have like protection we feel we good inflation. So a pretty from

I have a think his projects. great and Graham our team done job on capital

those As on pretty shape long creep as far good as on we've seeing items, far in as really projects. lead been cost not

achieve really trying how what -- we As what it, far power the is think to parity. we're is as distribution, to we said about purchase to, keep trying

you've what rate this just the the of really, might in. progress growth this made unit to like would question and terms showing in we use far in as over And X not if up to Jeremy's to the inflation, we've increase seen of so recognition could price. as back or of in the have get And and that, increased And I years. come the an X distribution last with compared

it you on the of and done what we and have rather debt in in and be we in be, and self-financing come equity And first the business than Some finance able were in lately? mover me capital and better coming our the posture to coming XXXX we I for markets, business. relying both may in to in came think the shifted

providing was of going And our it all sources CapEx. cash year, own First, our from flow cover to of operations is capital. this equity our

term. the for good long-term the in the -- over that allocating we're I -- financial money, been So how not long And investors, may go days we our versus bit high been back. But we the think made to here a long-term couple come we've and term short And long-term down I I -- best shift. velocity, these align doing. And because we've it to they the a that view quite degree, is last which health market it for get think pleased capital and the of and the feedback partnership. progressing may of are with with think that best a the of short-term-oriented is liquidity been maybe from we We've way -- stock years. what

in a XXX-plus, of had lot period, we you come and this not. did and During MLPs, distributions, time cut

decreased a or over But a now ours. the position we're X capital done partners increase years, for have as continue last So you they me what returned of of we X while to their at lately. amount they the result, to actually

that people [indiscernible] cut that have some got more gains they because You've their might a they can do so bit little deeply. distribution short-term in

a going of So we're here. running without sort capital. follow-up long a race in Again, again, question, you do charging on of an -- mindful come Jeremy's And questions returning Jeremy. all-of-the-above approach. extra We're but we're and to that's the

Operator

line Pickering, from of Tudor, from I Colton question Holt. comes our show next the Bean

Colton Bean

of couple a here. So follow-ups

a contemplated Or the projects to range. there? of that clarify level up in development was spend Can not you Following $X for was of one billion billion $X.X SPOT? what

Jim Teague

number. that in not That's

Colton Bean

it. Got

be So incremental range? the that would to

Jim Teague

Yes.

Colton Bean

sequential appreciate down. was think like I can a also basis, it a step material basis, on And Understood. impact on NGL back marketing. contango. to But sickling the then a maybe there looked year-over-year I pretty of

the So and QX year-end QX changed just in move again, we what from trying to better XXXX? towards to understand what NGL are business? then And marketing the expectations the as

Justin Kleiderer

of could going and spread this It's just based sum Colton, to up change Justin simply. mean markets. upon it is Yes, capture, that's timing I pretty I Kleiderer.

Colton Bean

guess ATEX have away how touched also here. see across it's I then you to a talked there all pulled increased extraction? on whether I be one on opportunities you are MAPL, far or need And Brent, that your from? final from might you any ethane Okay. or look system, as

Brent Secrest

I then could ATEX do stuff on to ultimately, lot of capacity up bulk that's there, some. think some the come Rockies from left but not we whole think being the currently. I there a the there's volumes, There's volume have the -- And extent. of [reshifted] Permian,

Operator

comes line Michael question Sachs. last Goldman our from show from I the of Lapides

Michael Lapides

Congrats quarter. the maybe But just months? export Real battle over XX how about for to and share volumes. quarter of next a have last Obviously, the been curious so next Houston the the curious about Corpus couple weak XX volumes on for the pretty you're months. and how thinking you're over quick, or crude just export thinking between even decent

Jim Teague

I quarter. next don't about the know

and between battle a Corpus becomes it ultimately, Brent? think I SPOT.

Brent Secrest

being for the I terms and me, hearing Houston don't in think Look, something preached of a market get that, on one. export Corpus to tired some that being going people we long destination but of time business, is have a about as they're what's

up and it's end it do. the worth function than where more the pipelines I to Ultimately, have value what barrel think the a they domestically just of is water. of the is across

is So quite in higher going that the ultimately, take-or-pay that to pull over we've export is, can what the across we term system netback ultimately, Where Coast. seeing got to contracts our markets. we Houston to their which be -- you're customers and a bit barrels frankly, domestically that's want time, is want have go long what that the think in Gulf on away going And across the SPOT VLCC dock.

Randy Burkhalter

Dylan, you them to to don’t our give to information, if ready us for information. we’re thank today, ahead our to And joining like for you you. – you. we’re going you’d listeners I’d the if that Thank go give mind. offline participants and Thank replay And and go

Operator

X, dial Thank A p.m. Eastern Please XXX-XXXX and (XXX) November access wonderful (XXX) sir. Time, Time, p.m. for to or Thank participants, X international XX:XX today's day. XXX-XXXX. from XXXX. enter This you, conference replay Eastern X, concludes available be X:XX will you, a XXXX, November XXX-XXXX code call. have

Enterprise Products Partners (EPD) 2 Nov 212021 Q3 Earnings call transcript