PAA - Earnings call transcript Q2 2019 | Plains All American Pipeline, L.P.

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Operator

Good day and welcome to the PAA and PAGP Second Quarter 2019 Earnings Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Roy Lamoreaux. Please go ahead.

Roy Lamoreaux

Thank you, Melissa. to American's welcome earnings quarter and call. conference afternoon, Plains second All XXXX Good is the posted & presentation slide Today's on of website Events Investor our at plainsallamerican.com. section News Relations

and important regarding includes contains consolidating information sheet PAGP. balance measures. X Slide condensed forward-looking statements The non-GAAP disclosures appendix for financial

Today's and Executive Officer. Chief and call by Swanson, Al Chief be Chiang, hosted Financial Executive will Willie Officer; Vice President

and Goebel, are Chandler, senior Pefanis, Harry President President Operating Additionally, Executive Vice Chris of Commercial; and management the Commercial with Jeremy and along portion President, Executive Officer; our Vice call. other available Chief Officer of today's Q&A Chief members for team

With over call that, turn the to Willie. I'll

Willie Chiang

thank Thanks, our for joining Roy. and call. Good afternoon, you everyone

released results Let second to me begin exceeded hitting that high by we We're quarter today. report the earnings points expectations. information our pleased the of

As in performance and in reflect outlined our logistic these based margin line earnings Slide on segment results and were that expectations. fee supply strong X, with based

will detail, Al or more in by driven X.XXX million to segment. increased EBITDA adjusted primarily we guidance billion discuss our minus our plus year S&L XXX As full by have

that driving We create returns We to Investor value and industry partners. us future for our existing execute improved capital to highlighted our and opportunities leverage and projects to Day assets our number review on and the by initiatives optimizing continue of investors. of comprehensive systems provided position our align a for us these long-term a at efficient of with strategy advancing

holders managing position to and our return to time. financial further also equity leverage We prudently to focus lower cash on continue over

X. are reflected commercial our Slides on on initiatives X progress and Our

highlight me a Let few.

and to their aligning Webster we the future. continued projects, we the to third MPLX, partners party to project, additional to project the expect in Delek Rattler that ownership regard, near to project. joint announce optimize Midstream our have US venture as partners Wink an in Webster industry joined undisclosed enhance Regarding the takeaway with Wink in the In have Permian further and

Webster As is volume a commitments. to result long-term under contracted Wink highly of these transaction

equity interest joint to Webster has XX% Plains Additionally, Wink decreased in to from the XX%. venture

Wink progressed our and to of are capital to further number XXXX. targeted service projects with in Rockies we've to great existing above Mid-Continent In flexibility early Webster efficiency targeting are threshold the a examples assets We that be our beginning drive utilizing and commercial upside. capacity returns of in

be for grades On Capline the to will have XXXX JV, Capline Diamond and late pipeline into level heavy combined for placed achieve light further XXXX by returns scope thresholds. and And crude sufficient which our to projects crude in an investment of we the underpinned system. expansion to the extension, committed bringing Diamond sanctioned service additional system. the long-term by working volumes Diamond grades. These is expected targeted enhance return and project Capline we are early are commitments connect and to to The

commitments. Fort This Saddlehorn volume partners primarily in announced increasing pumping is XXX,XXX the is and JV An to project is our a to capacity additional to up commercial expansion placed capacity initial expected of to provide be is XX,XXX origin day expansion day Saddlehorn underway, barrels The on by underpinned which plus new and alignment into flexibility enhancing per XXXX. per shipper of service customers. late a pipeline, a recently Laramie barrels long-term

potential the to day. a XXX,XXX barrels increase With to

provides million. barrels to This new committed pipeline the and and an annual acquired day additional announced shipper. our increases the capacity and of expansion. a barrel XX,XXX which expansion alignment more in with expands It net on we commitment for from project reduction. strategic it a debt our Red XX% a long-term transaction a than or interest system in for capital XX,XXX increased venture long-term XXX,XXX program their an partner joint equity source and day minimum It Plains buying our through supports in cash In funding funds Delek May, flow River XXX

to commitments the very the in volume for on We expect near future. an additional system season announce open

Oak, activities Gulf XX on officially with volumes Houston we're system his and The pre-construction in Philips Ingle Red including Basin with XX-XX On Texas. venture destinations, Corpus Permian to will proceeding Beaumont, and side, Oklahoma sanctioned was access joint enable Cushing, from Christi, June. that multiple the Coast

service outcome ship agreements along the of We expect early of underpinned We in will first evaluate open which our supplemental progress. current is initial the the as the season as to project long-term XXXX. with by begin quarter partner

including We operational base, the two build commercial to presence, the equity to enable also portion production further the that's Coast movements period. Gulf These over commercial systems able our asset investments our which expansions that position US next to are to from subject Western for allows of us enabled creative opportunities ourselves season with to open and three These currently Corridor and underway. this advanced Rangeland markets. additional we self-fund time Canadian a outcome the of and years, the Edmonton and will be future existing demonstrate growth and to opportunities, continue projects completed of are be Western a expansion these potential Corridor support of capabilities or growth. Each our through by projects expect

detail, the projects by more from be half these proceeds in discuss our generated sales increased offset than of strong which date and S&L we've completed expected and capital million, as the XXX result greater to asset JV year. Al first by XXXX will of performance our is to a program in As

over call report the we're complete Ingleside that to pipeline the hand from Wink to update commissioning pleased performing linefill I and that I'm quick in II. is to on a Cactus mechanically share currently activities. me Al, let Before

with week. of commercial initial next line crude As sometime approximately filled and anticipate the we XX% today, service is entering

Cactus the We first expect Corpus direct the by connectivity XXXX. II to have of service to in end quarter

team takeaway within service XX into the second acknowledge publicly to our I'd point, hard to our of dedication the last like work months. project Permian and this bring At

With that, call to over Al. I'll turn the

Al Swanson

Thanks, Willie.

and During to liquidity update our call, recap leverage quarter brief XXXX results, program of and capitalization, metrics. I'll the provide review my share growth current guidance of and portion capital our second a our

second $XXX of adjusted in by strong a S&L EBITDA increase driven million, reported XX% performance represents which our quarter segment. year-over-year of We

summarized of on quarter to Slide expectations, first X, roughly results As with flat in our fee-based and $XXX million second were increase quarter were XXXX. the a of line year-over-year of representing XX%

year the to illustrated the of on forward Looking balance X. Slide as

our by primarily crude attributable by oil S&L improved differentials was margins. NGL favorable increase $XXX second our Willie we have As minus billion. in Canada, the the adjusted to in Basin quarter, and noted, $X.XXX guidance XXXX This driven increased or EBITDA plus Permian to million and performance

or lowered have activity X%, guidance for outlook we by on producer $XX calibrating the approximately segment transportation through Additionally, million our levels the balance current our XXXX year. of

by million, tax to increased partially Canada XXXX the $XX as in EBITDA we maintenance more in offset million work higher Our XXXX income was adjusted DCF increased million expense complete in expect capital, reflecting guidance guidance, anticipated. $XX of by than and $XX increase originally

Slide from equity on to focused offset program discipline XXXX the JV more of remain projects We given capital illustrated $XX our guidance. Webster lower regard, million, $XXX discussed, interest on our cash have our of by capital $XXX on we our resulting increased Wink financial River received formation Willie in In As million sanctioned reduced management. and Red million by the from that and the newly in the the costs increase net in increase X, XXXX capital prudent of than DCF the project. program is the

and capital continue XXXX, JVs the expect of to majority large newly equity and projects potential in fund associated sales, the issue our alternative do while we'll we capital program utilize sanctioned explore not asset expected is Additionally, in with and to flexibility. funding incurred to to years financing add XXXX common opportunities strategic and these those to be

Slide as X, last debt our a months. times, into we ratio quarter the which S&L adjusted at over from had capitalization to over and long-term performance Moving X.X XX end liquidity, of on EBITDA benefits illustrated

over range performance, mid-triple and time. ratings targeted remain to Excluding we credit continuing achieving our debt leverage B migrate focused adjusted the on long-term EBITDA down S&L within to over

updated $X our XXX%, year more unit Based of results we flow excess expectations. in unit expect full on of common our with than cash per prior than coverage to exceed that of guidance, year and exit more billion distributions the XXXX distribution

that With turn I will the over to call Willie. back

Willie Chiang

Thanks, Al.

today's projects focused financial, Slide number quarter So executing on of and summary A XXXX throughout us takeaways remain our future. nines performance the the for we we're to goals the key of pleased shown a We our XX. call plan, call forth and set and are and initiatives advancing XXXX today. the have initiatives of on and made operating intently from a that solid had commercial position on we and significant progress well that this

Roy. your With to that call I'll happy turn the be we'd questions. take to over

Roy Lamoreaux

Willie. Thanks

As to the one the you address allow available limit afternoon. return time yourself question queue follow-up from session, to will practical and Q&A as this questions follow-ups. the if we many us have This enter additional top as participants in please our to question one

and and Magill be to I Brett available Additionally, questions. address plan to tomorrow evening this additional

to Melissa, now call ready we're open the questions. for

Operator

Gershuni Instructions] UBS. question Thank come And from Shneur [Operator will with our you. first

Shneur Gershuni

morning, good guys. Hi,

say should afternoon. good think I I

give wondering so out was it's beat Just little a us the maybe can on partially that to bit if it's detail going the start sort today. for going on understand up I and you side. put – the of for off guidance you I the that up of just S&L transportation forth.

reason but down You volumes going volume you've attribute the particular going would that have any to margins got change. up, you

Willie Chiang

Jeremy?

Jeremy Goebel

a the upstream the Thanks, in in Goebel. Shneur. good of industry This reflection Question Jeremy side. is one is changing in

our pipeline the that with I coming basin. utilization think coming to the year Coast regard off online barrels reflects potential our and Gulf pipes changes guidance expectations includes for

reflect headed. dynamic as of our customers, in within continue it's our update where the to but just it We're just X% it's we the of talk market forecast. current it's time the that original is we we guidance, a that will throughout to And year that industry. think I reflecting So to think our view, our

Shneur Gershuni

essentially, or volumes on is of the you're that way But you're think margin margins, If gaining kind maintaining the on to about others on some low losing right higher areas. it? I can paraphrase, some

Jeremy Goebel

there's just to with of it's pieces to respect simplify identify it a where that. and asset lot moving our think hard I to base

and how of the end and reflection the market in million entire move will we thing moving across see asset in the barrel entire context base think just basin $XX help the that's things a input I [ph]. differentials of and a

Shneur Gershuni

of just sense. of didn't item, beat And more makes want last other up sort clarification the joining clarification. the outlook That a change ownership on Wink as at to a and do there be seems to perfect you And be year? to more minutia the next wanted sense to is participants all question, Does about Plains' make project? this Webster going your That one then to think pipeline. of final have what CapEx you of

Jeremy Goebel

XX% Sure, day to project. will we'll took barrels We But project, and own of and the to about room our excited interest contracted be We've capital. for over partners. we're guidance at additional Webster fully any haven't a the it. this which make reduction pipeline, our in a million Wink guidance the lower given that XXXX reflects for in I XXXX interest given point, X

year. We will this later

Shneur Gershuni

much. you Perfect. my very two used Thank back I'll the questions. I've in jump queue. up

Willie Chiang

Shneur. Thanks,

Operator

Our Jeremy Tonet JP next question Morgan. come from will with

Jeremy Tonet

afternoon. good Hi,

Just And given producer there. – bit on changing bit Permian. a little has commentary want a of to been follow the a up there kind

far growth presented I'm Some on your discussed guys expectations? in people does you from change longer your or approach. dated changes as And of kind Permian the growth. anything wondering, kind in materially prior their in Concho differing. Specifically, pulling as past view of

be there. So color that'll any for helpful

Jeremy Goebel

monitor to customers. that stay front in continue and we of Sure, our

consistent our second this into of and We in Permian. in forecasts now, for reflected so of at marginally, year, roughly reduction the the state rest the XXXX. our year XXX moderated a steady our top continue that. horizontal is views, for you're flow how but XXX on have a to coming guidance very of to That's monitor it the We lower pipeline and the we'll forecast on and our had producers to rigs operate look customers half lower, views we'll stay is on cash to but and our it's and bit with within they it specific margin

Willie Chiang

we this is ask answer. this but you key to this difficult till very is the I want that on good of think to rest the Jeremy, is wait question one, Willie, year. the that And a

better monitor We said, and we'll able a but to color think months. little next I the beyond Jeremy continue as three to be XXXX on give over

Jeremy Tonet

happened a regards there to That's margins and on provide just up kind the Canada, thanks. then bit again helpful, that And able be future. arose the opportunities maybe in following would ability you to color with capture I more what to in the those of guess

Jeremy Goebel

are events. to lot wouldn't that around of or so turnarounds of of the some Western in of characterize got around those A and in Those events. centered upgrade type one time it plant type recurring the around Canada, of post differentials [indiscernible] sort water outages certainly is

Jeremy Tonet

helpful Thank That's taking color. questions. you my for

Willie Chiang

Jeremy. Thanks,

Operator

question Our will next Richardson from SunTrust. with come Tristan

Tristan Richardson

Hey, good guys. afternoon,

long next these is potential CapEx better Now the on kind through JV that Capline a see and you versus little James, could shaping a XXXX on the talk for have about projects. CapEx sense lead Webster, we to of just we're Could you structure of Wink up year prospects midway a at lower and the you look as some of and St. XXXX? how bit schedule year that

Willie Chiang

take Al, that. why don't you

Al Swanson

Al. Yeah, this is

whether wait in equivalent probably it'll XXXX and on be we Red venture. neighborhood some Oak our versus the into call. joint to it that into I Clearly, to doing think update there's year. as November, pulled project We a we view whether or look would XXXX. wanted probably are this also issues at roughly our of capital was say timing forward to pushes the of some not we inside finance There's XXXX

shift. some this of in it'll roughly it there's neighborhood year. that things to So could cause we But think a be

Tristan Richardson

where be employ procurement then This bring to lightning up you future helpful thank process out And and the to extent when these that you but just cetera. incurs you. talk tariffs, rod costs. et not that about item, It's build can the surcharges may pipelines something a

Willie Chiang

the this. Cactus ended it up non-US Yeah, The pipe this steel On wanted. to with on I'll the in is everything give able before we steel implemented. international, the a there's This – II, Willie, this the days were on buying because Tristan. my purchased views a the lot you these producers as moving is seems we point is spec parts. US tariffs steel that produce were of key not we

to are the through so of And resolution it. Commerce we that try process Department to do continue will going the with reception to get on and

stop something people able the moved that it helps a with have we these rebate As they we where projects. make early rules surcharge the got parallel make this if regulations and the and again, would and the get we've I exemption, appropriate. are clearly, as clear is to the to an forward path, surcharge we're for on that But highlighted Tristan. on, sure before that investments Hopefully in

Tristan Richardson

you, Appreciate it. Thank guys, very much.

Operator

from The Holt next question we'll & take from Colton Pickering, Tudor Bean Company.

Colton Bean

Good afternoon.

Wink had to to X.X about project just on their Delek implied totals the noted So billion. up and Webster, I recently follow net think costs

curve little think expectations your prior relative that commentary I So just a bit the of low terms to S XXXX. on seemed in

should if consistent I with Plains if So X.X see wanted was or some to expectations considerations, your there specific we that aware were of? be

Jeremy Goebel

Delek's what to interest. have that not things quote could other exactly their was or to rate financing some going We're they

may not tie that think necessarily ours. I So directly to

net of ours our the the or without entire $XXX and the for is to range interest think $XXX million financing. million scope to closer project I

Colton Bean

or Then Got it, you at XXXX other provide can just Or on in to Billings a scope be Western context project we and bit Liberty on barrels Oak? some refinery of Corridor the to and should range what driver that of that's expect be dropped service? helpful. off the those on and expected flow is of complexes? looking of the those Would expansions, Red

Jeremy Goebel

into border the That's currently question. Sundry up barrels the to Plains partners Corridor the north Liberty the down into it the but the Edmonton integrated Red to to At flows to to and Oak by or of ability have good other picked project as P ultimately barrels the will connect with Think a solution Western of and the feed and Edmonton, XX, Rangeland Guernsey the with system. flow border system. in

Colton Bean

would interim it still and Western with Liberty if an you bit need were clarification, a then firm a solution be or it system early just pretty the quick little online Corridor Got that is get online? you to Saddlehorn

Jeremy Goebel

pipeline. season, a that'll The Willie closed be largely and as Saddlehorn full open recently suggested,

to that earlier bring on If the is in opportunities, think are frame. to a advantage lot look of I there similar a we'd time them. intent of certainly So take capacity

Willie Chiang

needs that Western work as to done some well. There's be on Corridor

not probably between be a difference line capacity Corridor, huge Liberty increased capable time in it's with service. would the So Western of in

Colton Bean

Got it, appreciate that.

Operator

will Our next Mizuho. question come from Moreen Gabe with

Gabe Moreen

Hi, If you back that a to the Can go afternoon. large sort the to temporary got leverage high down in good leverage to fact XXXX, threes. speak getting number how you metrics on willing with to may go that and a basis? you'd you've your have be of to visibility finance let

come kind you much how headroom on have of curious these As you online, might metrics. projects just think the

Al Swanson

look ongoing to from but internally. what we be We intend we hard we think basis. normalize it's know – S&L at outside, do migrate will the it I an on

addition And the so slight Red XXXX, from at down. we're with of in we Oak then do expect a migrating and where uptick

bring cause have point leverage of We we in would established concern we up be it it will do a that XXXX. to that range where inside the newly not don't to

down will We over migrate time.

Gabe Moreen

Okay, curious, that some normalized obviously S&L but that we'll Al; what get maybe is, maybe number. point of level

go for me around The ahead. second – question sorry is

Al Swanson

Gabe. right That's

I think right. it’s

Gabe Moreen

that the color Keep what actually that guess there. I refiner more much producer you the if speak on trying, just Capline, curious driven, in to, expansion, season? Just of then driven, volumes emerged is just kind terms can open how contracted, maybe from is of there's

Jeremy Goebel

Capline also that into and Gabe, it's sufficient Patoka system support pipeline to and I South, to the we'd expand Diamond that. tie say at reverse think this from point, system

the opportunities other additional based sanction the add carriers looking to to be to in system volumes, returns. to met so we'll timing well our We'll of on connecting that for our volume as top ability and internal and we of excess to with the commitments on project. increase continue of partners as So returns, be

Willie Chiang

Capline benefit got you well. point on there cost as money some put it One that for with additional save an you've to that is idle, in maintain you'd us other you service, when – certainly there's that

return. So helps the that's one the that things of

Gabe Moreen

you Thanks, needed reversal just Willie. approvals on or of up And good there? one extension Capline, any follow go Diamond kind on the regulatory or for the either quick there to is just

Chris Chandler

to Memphis Chandler. Yeah, laying Of there new I'll of that on Chris that about that'll is permits normal be to this able the require XX a from Capline. of mile we'll into Diamond, for is And piece segment course, extension be talk tie pipe.

Gabe Moreen

you. thank Great,

Operator

we'll Michael Fargo. with Next, take question from Wells a Blum

Michael Blum

you. thank Hey,

want Just Wink to capacity now a at million clarify and not of terms first is that Webster, X.X? so to the barrels set in

Willie Chiang

about should inch It's roughly line, Hopefully it think XX this that you Michael, a helps. capacity is way. which X.X.

Michael Blum

idea on two question second not exact sure the Canadian a just I'm of you're the rough how just the the Thanks. to can going kind me beat the or numbers, magnitude came business? like S&L, terms NGL crude versus but spreads give Okay, of location of quarter, oil me contribution of much of you give in from

Chris Chandler

it Canada, the in in The the smaller much Permian spreads and of oil NGL. large both from majority was crude degree from

Michael Blum

Okay, perfect. Thank you.

Operator

Keith we'll take a question Next, Research. from Wolfe from Stanley

Keith Stanley

of the guidance, is a Cactus Hi, transportation that good mainly in pretty in second there significant the half else of steep up? the the ramp higher starting EBITDA implies updated anything Or drives year. II year? balance The that the afternoon. billion Is X.X

Willie Chiang

of of the just of the primary pretty second the but with. minus that side the growth it's half it we contributor, a year, in volume comfortable on significant rest to is one feel system contributors That's the

Keith Stanley

guys see. growth II just just and usually so Cactus typical Okay, you that then

Willie Chiang

Correct, adjusted.

Keith Stanley

now in NGL say the and Okay and steep the you over but months NGL positioned into with seeing, curves would on next pricing is follow we're Canada. a that up that business the contango and low the How just then and business right few forward S&L XXXX?

Willie Chiang

take don't Harry, you that why one?

Harry Pefanis

volatility take consistent It's of the of capacity over and go out positioning. market. business, into work business, the streamlining of the the advantage returns. lot of of to the a storage We've type propane Obviously, our lot helps this year on last hard taking butane some of market done a more to detail our making contango

downside we in we have of in probably So we the window, high a a I say demand put an ourselves risk see well environment certainly position think but amount spikes where the into and also won't you low if we're of positioned a upside get demand in eliminated winner.

we're well think pretty positioned. So I

Keith Stanley

you. Thank

Operator

Next we'll Salisbury from a Bernstein. question from take Jean

Jean Salisbury

are capacity as stop much time some Corpus in export or be on in from thought, Hi, on share that won't there as could going Intel is ripping you view for there ready half. market second that? any your the there can the that initially concerns, pipeline's And pipes

Harry Pefanis

but we demand, the schedule. everyone line and to carriers can you follow I have necessarily processes of sight our think and not shippers into else's, clearly connecting our permitting the

Ford other additional next – shippers The for already our the our with that's for their online. that's facilities carriers JV contracted capacity Enterprise online, month, necessary that's And already coming starting coming Eagle up on full capacity connecting have so PA, then the demand. II have Cactus

of So there's full a sight ramp to too to up maybe and line a Texas timing definitely but capacity. of tanks for large for connections, part,

Chris Chandler

Christian. I'll to is carriers the we're of indicated to full end be reiterate the support capacity able by September. that connecting that the just pipe of This have that will they the

Jean Salisbury

you. thank Great,

detail I in on this, that the get was any on or long you if more it can sorry EBITDA in in And volumes to XXXX decrease to gathering? would change gathering. haul share was suggest load the more guess but in back guidance mostly

Harry Pefanis

budgets. gathering. of whether its But our capital gathering I'd as of that's numbers long you're with so say Cactus going long primarily propagate. it's the But the II timing they – in timing to producers haul some are piece. the haul, the of offset It's aware

gathering. So I really it's a think primarily

Jean Salisbury

me. for all That's thanks. Great,

Operator

Bank Dennis to America. we'll Next, Coleman of go with

Dennis Coleman

afternoon, that come like does that. days the lot to sort where on question. congrats of A seem out hit and my S&L ask, thanks there has so feels taking on beats do want big been old good I Is for sector, And debt Yeah, just I'm like see the right? that? increase about activity that to to And quarter. there. up back in guessing the at that a that think we the expect was short-term relates the should Or end how trend down? of should we tick of in

Al Swanson

take I'll firstly, a short-term what a is This as of where haven't number we to we've were. And in inventory at a need for positions it. been shot that's much quarters. Al, situation as Yeah, had been borrow our

actually quarter, the embedded it's cash I footnotes of with think we enough again. had, the in one we This slide the balance sheet on on exited

able cash technically, quarter, if would increase have that Bridge But In everything been had So this as Tex have lot balance sheet from we sale, the pay it a lower been following would fully a been for of the to number well, down, wouldn't borrow quarters we spend able haven't as the again. we on much. cash. to the of use just

Dennis Coleman

maybe a this S&L to onetime prior And range missed about just this. that the is out continuing so years Okay. just in you've But the shot, talked think I about. that

Willie Chiang

this Willie. Dennis, is

last is we playing see go periods away, as given of We've will this of year can get that opportunities right. the S&L on over exactly some me once the position pipes overbuilt, the arbitrage I its color if this. expected. give number guidance Let time

is late spreads we've said, haul is wider, we And up later starting been the constraints, will in part able out. year long solved of there. as of the exactly this with the that this the capture because been getting pulling barrels reductions year, as of volumes, Canada well as away. go clearly of happen facilities rail both opportunities So where today twist something on some the and pipes is happening opportunities to slight well, The think I that we've arbitrage as what leaving have that additional some Canada was of think

segment what performance ought number We've don't arms view to goes meaningfully they're something we'll debt. far at this there. forward we built. because this any as going – forward And count So is that's as XXXX S&L capital the large always as that use said I take ability way when our less point on we about. shouldn't time to But for in wouldn't provides been in S&L investments And or it the that S&L different have S&L pipes talked anyway. the pay reduce going to capture we than please of

Dennis Coleman

confirming perfect. that Thanks all me. for That's Great, Willie. that's for

Operator

Our will from from Seaport next Sunil Securities. come Global question Sibal

Sunil Sibal

that wanted you're have but projects I was afternoon, that Most and of help questions or then helps the offload Western move the Hi, you Corridor good on of other additional of it been heavier the go lighter is volumes just on to curious more does some to that lighter guys. my the pipelines? heard, through volumes some of adding, the your back and flexibility volumes Rangeland.

Jeremy Goebel

as the of Rangeland so designed it the size any Western pipeline and of light a volume system because of It's be potential Corridor heavy. that move to would prohibitive

pipeline going eventually and will Coast into to it's tie only then So be a Cushing multiple distribute light that to Gulf system destination.

So of it offers a lot flexibility to the shippers.

Sunil Sibal

little to that? be reversal, bit expect Capline got if you on Should outlined? returns returns about that I some have of than a the talk better the And on could you project that wondering then it. Okay, was other we

Jeremy Goebel

with consistent Brownfield even season. with its the projects as do that's think, successful subsequent outperform for that the I sanction ability typically open to in we

Sunil Sibal

least baseline at some same the is the projects, correct? of Okay, as so the

Jeremy Goebel

With Brownfield projects.

Sunil Sibal

Yeah.

guys. Thanks, Okay.

Willie Chiang

Thank you.

Operator

a from Capital take Followill Next Becca Advisors. we'll US question with

Becca Followill

the the had prior to across almost risk it discussions QX? things guidance you right that in incorporate guidance QX year? for transportation mines might it does we've there's happen and other XXXX of for based It it confidence Good to then seen on degree revisit for Does space. Is the the land everything in afternoon. now daily in and Wanted seems E&P your it? like

Jeremy Goebel

a that's I'd question. we're that say good So But an active dialogue.

we monthly in our customers. for. contact shippers We We of our get constant commercial updates, group expansive with sense marketing vast have pipeline from good a majority an have that's lease I the think

cycle production eight If if planning the cycle roughly rig it's about it, from months shows time to when up now. the when upstream guys think its is you the the for you

some by and of activity. areas performance be crystal the be a year different that's of XXXX have but online. of to variability are performance, there's driven well changes will and more half ball look the So seven, going largely higher usually individual other to be lower things well six by fuzzy will to six, changes and going in eight, of and this because fairly but you activity, of a go in not come things outside degree, to window, going driven planned gets already second higher that but within month

put uncertainty I a XXXX as second the of the of this So degree would half year. different as

Willie Chiang

we're right now. on giving not Becca, Which guidance XXXX

Chris Chandler

of our potential our we Becca, with adjust you've the and timing, sort respect dialogue et We we it views But have producers; into forecasting. things risk incorporate start with all go cetera. to mentioned, we performance, with for

it's best be listen our estimate. to So exact, going it's not

we try raised your and question. that of factor the in So in things many you

Becca Followill

had. you guys, thank I Great, that's all

Willie Chiang

Thanks, Becca.

Operator

does that the turn closing And back call for remarks. question-and-answer our over Roy Lamoreaux session And today. to I'll conclude

Roy Lamoreaux

you in all today forward look you updating call our and for joining on to Thank November.

Operator

again, Once Thank that today. your participation. our you for conference does for conclude

Plains All American Pipeline (PAA) 6 Aug 192019 Q2 Earnings call transcript