EPD - Earnings call transcript Q1 2024 | Enterprise Products Partners L.P.

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Operator

Thank you for standing by, and welcome to the Enterprise Products Partners First Quarter 2024 Earnings Conference Call. [Operator Instructions] And now I'd like to introduce your host for today's program, Libby Strait Senior Director of Investor Relations. Please go ahead.

Libby Strait

Good morning. Welcome to the Enterprise Products Partners conference call to discuss first quarter 2024 earnings.

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

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

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

A. Teague

Thank you, Libby.

term. Chicago. we occupying in Vietnam its on had like war. hold second in the no Asia called in mobs wins. had top reminds in a the a now, student campuses East. antiwar of President that up the war ways, have of Middle that XXXX, crimes and chaos the country. We've Europe, was trial, And We and -- on going what's had campuses. many the running DNC me XXXXs. university one courts a from convention for down student war demonstrators favor on East throughout got a tried We Elite all for Coast, President while And find We in In will being was a today former chased occupying

first to this -- quarter quarter suggest Chicago and with exception. means, know after convention. world. deliver what and of calm a after that investors' those young all year you month is Google concerns in XXXX after volatile For Enterprise to quarter there today this year bring I continues constant you was should But no that too chaos, to month,

last total net increase operating primarily margin our into the quarter growth placed terminal a of service for a quarter with from volumes driven X% to -- Octane was compared first for first Earnings contributions gross by of business. quarter attributable half marine the increase first strength assets billion, new quarter the in year. demand Our the in along to for was XX% Enhancement year, and $X.X U.S. volumes higher and second in margins continued during global sales energy last

crude color distributions more and million retained billion providing in Our We during a which a day NGLs, natural into crude petrochemicals, refined cash system $XXX being We of XX.X products generated gas. equivalent, X.Xx you're quarter coverage transported the going the this, on oil, same Randy, barrels $X.X right? to a to all quarter, X% that supported oil DCF get last million compared to increase DCF. of year. partners in

Randy Fowler

Right.

A. Teague

has our with in capacity Frac have under a During plant Permian We our more gas Leonidas of extract cubic Delaware and really XX, and we're plants day feet these of NGL the currently in XX. million Midland but a to the NGLs. the our the Bahia day and X call with to XX, XXth gas our we XXX Basin, along of which a and call XX,XXX XXX not process quarter, the in barrels going Basin. fractionator, infrastructure plants we is additional of our construction it Basin Midland the start in Mentone X it natural processing million natural plant over Each X than day expanded Delaware pipeline

essentially first pull support the systems day of that them and Our are service. the on plants

XXX,XXX XX X world's of With Permian capacities. of a barrels a of of NGL will day one we largest systems, our including of total the under producing NGL construction, the have beating export NGLs, capable plants processing completion processing the plants

of on our products Junction in began destinations Albuquerque with products the additional the Phase system third expected the pipeline service refined and markets on also over of project. end of This the discussing received to Texas enterprise Permian project We X Phase highlighting the the connecting the beginning the in Western the Basin, to II license. We markets or out X license of second port early press we Gulf SPOT. and April quarters. obtain the in over development to deepwater tirelessly At for significant most March, Coast a Grand accomplishment in successfully date years, and a years the X the tirelessly SPOT is of team for in worked one release put milestones X that month,

valuable initiative role. XX than key play of a $X markets. a liquids growing XXXX. million XXX million we going and is and export in will will a barrels I continue base addition natural highly resources XXXX not an less to think hungry does a that month liquids reliable a a emerging day a our asset expect gas going strategic barrels our in be the to in to grow. to of export be U.S. a XX.X million to barrels U.S. the player Enterprise liquids, which put world, exported record have priced Last and oil, SPOT's around continue significant with and To and market, to we market. to in continue crude EIA by Demand that's as month, products primarily commercialization. -- was that and to growth the for that liquids We our million been million SPOT has $X.X for the Randy? being in include week, free perspective, refined number reported continue reach we're

Randy Fowler

$X.X unitholders you, quarter Thank Okay. billion of to compared Net XXXX $X.XX on the or X% fully or diluted unit of per everyone. Good income unit first Jim. $X.XX XXXX. income billion to quarter Starting with per for first increased common the items. common for morning, attributable to a first basis common statement quarter $X.X

Adjusted $X.X first the is flow. activities for from distribution of of increased quarter changes operations, first the first compared which of declared from operating year. quarter XXXX cash before billion for to X% for cash unit a in XXXX. $X.XXX of billion the flow flow to quarter last per capital $X working cash common Turning We to

As X.X $XXX close Jim the In of million, to this million of mentioned, purchases common unitholders units, will is approximately a regard approximately the quarter XX The million. months $XXX approximately for million $XX the XXXX. to over open for purchases market first enterprise program first business common distribution May increase or X.X% total quarter, purchased our distribution total as common partnership buyback today. with record X ending the XX of of declared units of the under be bringing paid XX were million the to March the

In combined addition the a to million market X.X common open first our the XX for plan on market buybacks, the million last the during million purchased common plan XXXX. quarter during $XX open units units distribution for X.X months, on reinvestment employee unit million and purchase $XXX including of

million XXXX, $XXX Enterprise's to combined Total investments of that repurchases time was sustaining $XXX the billion XX-month the of For for the unit $X.X Enterprise months of capital for period. first adjusted in payout XX, million flow the million and period. cash XX% growth capital XX in ended distributions CapEx. from included paid same across out common were billion, with limited partners $X.X ratio quarter operations projects approximately March $XXX which

capital XXXX billion. growth XXXX expect of be range to expenditures We billion the $X.XX for and in to $X.XX

high-purity includes facility. planned isobutylene million, which estimate capital to be expenditures to turnarounds our XXXX sustaining of $XXX both approximately continue We facility, plants our and PDH iBDH at

As begin previously turnarounds addressing turnaround plan within mentioned, completed reactor occur the X fourth typically these we years. every May be XXXX. in June. time, the issues PDH on to PDH in At X to scheduled X this We expect the to

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

life maturity portfolio date for our debt weighted hybrids, the final Assuming our average years. XX approximately is the of

cost weighted approximately fixed our XX% was debt At Our XX, debt is average of rate. of X.X%. March

billion hand. the credit liquidity including unrestricted the end consolidated our and first at $X.X cash was Our facilities on availability quarter, under approximately of

quarter $X.X for billion $X.X months. EBITDA the the first trailing for adjusted Our and XX was billion

As treatment on the after debt of the partnership's X.Xx debt and the reducing leverage March on adjusting XX, a equity hybrid by hand. was for unrestricted cash our our consolidated outstanding ratio XXXX, of partial debt net basis

Libby, our As a X.Xx, think questions. leverage we that, reminder, for open up target I can remains it with X.XXx. minus plus And or

Libby Strait

questions Operator, you. for Thank we are to the from open call our ready participants.

to If the you remind them could of please questions. instructions ask

Operator

of Chen Theresa comes [Operator Barclays. first from Instructions] the Our from line question

Theresa Chen

us CapEx you period be project labor would obtaining this the earlier deepwater over the was that month? you and think for since congratulations past Can you and perceived years. about the a commercialization of an much love on progress port And sure update help that can us the on SPOT. how require what also, I'm spent? would license X the First, over provide license

A. Teague

Yes, I'll talk CapEx. to the

of was people by First over it's is. Brent to to we long share in our all, not the turn the there's with answer question. what shot, what I'll and it don't typically a CapEx other article

Brent Secrest

still I'd the for lot positive. road. on of say, part, I mean time ongoing, the commercialization, Theresa, most it's We're is a the spending

have we're it, contracts with project move discussions commercialize on X that. the we that counterparties not contracts to And the to have other mindset next then the support going end call of, project. is that by ongoing we're We But in expect to to forward month. until

Theresa Chen

in Can activities. onshore provide service? for? what update the gating status phase Texas should you the project began the are and on your of from online? initial key here so to an turning I then what we And after Western look far brought And the products factors Phase until And

Tug Hanley

Yes. currently the talk them. Hanley day, on We single as loaded. or on future expectations, met those new getting, It like goes, margins online? we're West terminals over our But a And trucks yesterday. then we far loaded in you the XX status over they about to speaking. Kleiderer Texas. online to we're just X want are seems as every it have This I'll setting record Justin And exceeding as is just activities. current Tug Justin have turn having volumes

Justin Kleiderer

is Yes, I'd Justin say Theresa, this Kleiderer.

and X Albuquerque being Junction. Grand Phase about thinking Just

As we feel as in said commissioning on Albuquerque of had speak. good. the we comments, We're his Jim verge

in seems good timing. So rolling pretty early II to that the to into third be second Phase get quarter quarter

Theresa Chen

you. Thank

Operator

of Scotiabank. for next And One question Richardson comes Tristan line moment from next from question. our the our

Tristan Richardson

bit projects Or little then primarily are you a could Delaware about Could the the And are just gathering plant Midland? this just are these versus -- the in that plants in under this with construction? support support existing about that sanctions? these no side, new you Midland customers dedications, the on currently the is Or added should quarter new talk future already new projects customers?

Natalie Gayden

existing some the capacity Gayden, Delaware Natalie some the Those that full. new XX% dedication, of the plant feed expansions dedications we're gathering new in by customers. is Midland was we've new expansions looking, the supported and plant I morning, our new built. -- customers, gathering This are that acreage over in This

So a of everything. combo

Tristan Richardson

thinking on service. you That's move helpful. the about And crude just NGL then into saw back side, seminal

just existing lines infrastructure moving thinking the of quarter, sort Just crude increased there? in the to of about Can about existing the on better seminal maybe DRA out were seeing use the utilization with in... of with volumes talk seminal utilization squeeze your you plants you

James Bany

is Tristan, Yes. was modest a out negligible I power. optimization... going in near saw but both cost, you do and Bany. really just mean, this and in optimization a combination Yes, of the it With for service, variable increase Jay X DRA we

Tristan Richardson

Thank you.

Operator

from question. And the Citi. next our next for our line comes of from Spiro question moment Dounis One

Spiro Dounis

can when once getting And I'm especially bit SPOT. from just to that curious forward, Maybe million more a little to into the talked barrels go dive if provide you And that some a goes you just if SPOT think a how maybe Jim, little to do you potentially could you XXX without I curious LPG exports. as that bit you ability back where and consider more month capacity we color with free now up goal on moving just well? that. guess that could of here, about

A. Teague

barrels. million I that dream got night one Spiro, we XXX had a to

made I initiative. an it So

get you've a supply got XXX get you're to because position. you're to it going million If to going barrels, great

some to our ship I perspective. to the we is think about -- of Natalie I So supply of from on or and to And position, lot my... any building what takes have a your that to a order of of and things number to do we what think spend we think need don't -- it handle Bob. a on or don't that docs don't talking in I get supply is money heck Jay, Zach, channel our know

Bob Sanders

what to. committed over we've already Not

A. Teague

Spiro. supply, about So it's all

Spiro Dounis

that. it. Got Appreciate

rate, Second there Waha. second lot you maybe from and on into question, the like prices quarter. It Maybe first the I of some benefit got exposure going quarter benefit from quarter. some maybe just second in to just recently some you've to could prices volatility the that. and a at looks the we're us of negative seeing remind of there this got impact those But imagine again even Obviously, open bigger. capacity

Tug Hanley

Tug Hanley. is This

So it's puts takes. and

perspective, equity gas obviously, volumes. we So are lower for from the prices, our price negative seeing

positives the to that down seeing we on we're the on CX position, couple the that Coast, we're higher Waha participate for gas so have market across ethane They're systems, the which things a versus and XXX margins transport bringing the However, day of the gas of price, million is Gulf that's gallon in, around specifically, price. recoveries for over so the seeing higher gas, means lower And Waha negative on margins a to can $X.XX premium pipeline KF wider a we volumes. us. record us then

Spiro Dounis

leave helpful there, I'll Great. as it always.

Operator

Thank moment our you. next next of One Wolfe comes from line question. the question Keith And Research. from Stanley for our

Keith Stanley

on follow-up SPOT. a Just

others. to you on of have long sense working and a an to you soon you can a project? think soonest said hope do Just case base you the get contracts kind how case take? What's So FID X bull of it could that a on

Brent Secrest

Brent. it's Keith,

before like to of forward we'd year the on this think I to end project. target that go

Keith Stanley

Okay.

a bit Second question. The stock's lagged recently.

accretive the you about stock lot can your that on Is or versus on buybacks How spread growth in growth sort plus returns investments? lot a the are thinking do you yield proposition more get very buybacks? you return with than still is high. Your projects growth narrowing of what eyes a

Randy Fowler

space. Keith, and overall the years, I the over the flowed ebbed just energy stock the last the with sector in X prices or mean, volatility X in

it So goes. and comes I mean,

do to been stay to year, $XXX a attractive it's do think keep buybacks, area. million I And that. when to expect approach. we it all-above it, measured, I call try that $XXX we an it see we But and million, in

CapEx, attractive customers. were serve business actually our growth coming that returns capital projects are Our and that grow in our on our

make is. take mean, stock depending a look don't of So issue, day, decisions yes, by we it, allocation capital at on I but capital price you of day allocation the where

got we've a longer-term that. view So than

Keith Stanley

you. Thank

Operator

from line Company. comes next Zack & our of our for moment next And One question. question from the Everen Van TPH

Zackery Van Everen

widening I We've on for domestic expectations seen and the your marketing, just storage propane side? exposure markets? liquids And sensitivity remind data based curious come Sorry to on you propane on on international see specifically. the us And domestic EA production really the weekly of was that you the in do spread? that, pretty prices and on can just have then high. you to this the spreads guys

Tug Hanley

speaking. Yes. market. Hanley on comment international Tug I'll the just

the clear So it's -- have the water. the to barrel price U.S. across here in the

us. export opportunities those we the numbers single-digit seeing to So materialize. low which SPOT We're leading prices, for in opportunities seeing are freight are higher lower of some

benefit that us aspect. in a been to that's So

Brent Secrest

Brent. think it's -- be capacity until constrained I to is and overall, comes going And domestically online. propane export new here Zach,

storage year, the And go probably could so this point. call out next at because values start only place that's that you could widening see

the I customers think get and the around beyond, appetite going think or to good some We PDH. is there. there we until it's think world. you is LPGs out our once years our But the probably other be of across year next for freight assets for

in demand. with them freight up the and come So to and export for the the at overall U.S. to catch back some going global to it's point time, align the to producer capacity,

Zackery Van Everen

there. I overall beginning was That moving if impact asset to to might appreciate one, have that saw then comment to it. the just on doubt volumes can guys you and to no LX those I Wink at Webster. you QX. move X, that. another And downtime some sense. of that the like can you I makes Got if and curious, Midland

James Bany

this went nominations starting call going base. actual past get to XX the estimated hard Zach, notify our shippers our kind of out impact downtime until in, to Yes, in figure how we out come Jay. so is look, mid-May, of we it's And that's customer this it, days. June, first. It's week Yes, around to

Zackery Van Everen

All had... fact. Perfect I

Operator

Thank from question our John question. And moment you line next Goldman next Mackay comes One of our for Sachs. the from

John Mackay

are that maybe the on your just understand get and fully wanted curious producers affect levels? based the seeing in price. base term year issues stay trending guys in overall activity making to I just weak this Waha far and would levels gas curious the I'd Permian. if this you decisions to be near update versus But from case of gas on not an how kind takeaway are you're activity I be so

Tony Chovanec

no you've the This Tony. natural prices. gas is effect Essentially, seen from weak

slide and -- we you that so people often understand show the If it.

what at Permian, And shut natural you're we've gas. to the point. drives or the this in back even of people to the to related is look economics natural you prices in -- cause not If seen at producers in going throttle gas natural what it's gas oil not

We Eagle Haynesville and they same year, your the some but of be. little look down has first in the proof them and guess you bit oily they're haven't go everybody rig can be for if in is you see different can counts. see down the steady Ford, Appalachia rig I as look at since counts it. basins. you if in a counts the And of at But Permian Actually, the not -- the in seen and rig you said pudding, go the

John Mackay

the to to that Maybe where unfold fair. other was All on kind just of year? as on the a And us right. out Maybe shifting well. how expect PDH contributions pretty could of the the give That's kind read side, strong. we of Octane expect pitches, rest maybe just roll you'd quick

F. D'Anna

Chris is this John, D'Anna.

octane probably shows volumes guess, curve side, forward also a for the normal pretty you due we was had it improved favorable On I XX% forward, fees. higher then And enhancement and of the higher steady. the looking at Bob, benefited we look to And and volumes performance. performance hedge if

on is return So price. call for MTBE, we question is of have, outage reminder To octane and is the of just quarter, $X.XX with and normal what at the for least just between the and enhancement up And that back contributor assets market we our a and which which PDHX the after our biggest for uplift, of really second PDH, RBOB their normal the spread. in the difference June price market amount. the then second full PDHX when RBOB we're contributing your expecting are those spread both to made

Operator

one next Bank our from of Neel for you, question. from Mitra of Thank question And line comes moment our next the America.

Indraneel Mitra

to ask first activity within the about wanted the quarter. I

was the accepted in think bit universally that the would Permian kind quarter versus have fourth a of little I it the of of quarter lag 'XX. a first

wanted in your if seeing in the to some Just you're you saw seeing some initial lagging you're production weather delineate expectations? terms and kind what versus your Permian hotspots activity hear you where coming of within insights where of And could back. of

Brent Secrest

This impact is Basin Midland Brent. quarter, Relative of in processing an to our the was definitely weather side. there first because

well. processing Our plants held up Delaware very

XX of, for every morning it we we go report But days a some and it's day processing the the Natalie probably to day. every have are comes well routine terms there's volumes. we Midland what forward, Natalie's point, downtime that as gram up on in single see in On guys some that But to meeting aware supply side, at volumes. our That's we you had reason effect that's of point. an and probably for extended

Indraneel Mitra

lot the So a April flush production say quarter? is of frame it the Keno to there's been first in fair time after in that

Brent Secrest

once came our the our saw increase, jump plants on we mean I big Natalie, up. our new side

Natalie Gayden

Once have don't new we came market some rather just as acreage producers our won had dedications that, they from Yes. plants we up, you know, swing share.

for -- we MintonX up, were immediately we came when example, So full.

from pace call on just after the down after continue know if flush back event. I'd don't the it cold winter rather up being I storm coming production weather So than

Indraneel Mitra

spreads more there. first were one you wondering And as quarter if quarter. the especially how in for seemed if ongoing the to in that first of I trend could sneak like an see It year. strong the I that it. PGP Got results, rest the contributed the RGP and was

F. D'Anna

the The spreads again. you some and PDH Yes, on wide this is issues saw both had quarter. our first we Chris splitters. write-up, our operational were for the RGP/PGP probably in And

our to puts see going that some PDH and were I with think forward, the we looking our And takes there running from So overall there. again, margin. help plants contribution that's

Libby Strait

one question. Operator, we more time have for

Operator

our question for then one final question. Truist from Certainly Neil the line for today And of our final Dingmann moment from comes Securities.

Neal Dingmann

I'm opportunities -- a have is I'm my do on of based out future allocation. you all boosted all return the when just projects. level at there. XXXX consider question Guys sort just wondering, future both looks -- years, -- you and you CapEx like XXXX look or just let's shareholder capital wondering, for on it just bit bogey a

wondering XX Just looking we how the you X about at balance start should XX. think as and between the

Randy Fowler

zone Yes. as that's to Day -- Analyst weeks a that about in from sort the years and since combination of flow really XX% for well. few cash we had in ago of We've from next operating a that here sort we what foresee at And few XXXX. of sort distributions of been XX% of Neal, buybacks adjusted operations. was here talked what

come As far -- hustling that goes that Permian the be license SPOT, organic And to a lot our chain. getting in seeing downstream and the it increased opportunities of with supply we'll again, with as the CapEx, that come benefits contracted. what in it as get growth value now also for through and

put out of projects. we billion, billion, that's XXXX, million come is So of a I in think is $X.X currently we only which early, with bogey that approved $XXX still $X back and what of

X-year in that got So coming fill including that. successful construction and getting in some SPOT. really We're that a underwritten is cycle we've up, with to room SPOT on

billion, help $X.X that of growth $X And billion CapEx. come so think I would organic in and address that anyway,

Neal Dingmann

I makes a sense. follow-up. it the keep And just to buybacks. on want quick just that No,

that cash ramping is of on, thoughts your keep any sort this overall just earnings flow up. Just and

on of different anything Just do in. you factors buybacks would how that or thoughts sort with the

Randy Fowler

Yes. Neal, buybacks. flexibility have look with we to we'll I think opportunistic again, it. be more And on

$XXX a we've seen $XXX So to was over the you've if to billion dislocation, there XXXX do us the more. in $X.XX mean here at market or And CapEx I and million then here got growth last years. range. mean, billion the flexibility we're few do million XXXX, looking $X.XX in I certainly,

get out what I to lot in then well. a CapEx buy $X think once of you back we'll XXXX, range, do have XXXX. And more say, $X.X to if then more would billion, normalized billion, back a as we're I flexibility

Operator

conclude hand like This of I'd the session Libby question-and-answer you. Thank program back Strait today's any to program. remarks. for the further does to

Libby Strait

joining That Have day. a everyone, concludes our today. us Thank remarks. you, for good

Operator

and ladies does for conference. participation you, in gentlemen, your Thank This today's conclude program. the

now may disconnect. You Good day.

Enterprise Products Partners (EPD) 30 Apr 242024 Q1 Earnings call transcript