PAA - Earnings call transcript Q2 2022 | Plains All American Pipeline, L.P.

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Operator

Good day, and welcome to the Plains All American Pipeline Second Quarter Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Roy Lamoreaux. sir. ahead, go Please

Roy Lamoreaux

in and Good XXXX welcome presentation Earnings Investor also the on Sheri. an plains.com American replay audio Jeremy is Plains Second that, Harry President are team and Vice the will our hosted News under website to and call President; Pefanis, Quarter now Call. Relations section afternoon, CFO. Chairman Herbold, you, appendix. Senior of over Al Chandler, to where located and Executive and all posted Events sheet Thank Willie CEO; Chief Today's Officer; be Chief condensed including Officer; provided and Slide PAGP statements of I members Willie. overview X. for non-GAAP available will the of Important With consolidating on Chris be measures materials Finance financial today's Operating be Chief forward-looking today's Accounting regarding call. is Today's and Slide call An A X. Goebel, are and Commercial President Vice balance Officer. Other following by call will Vice reference other available Chris will disclosures and and President provided and the Swanson, Executive turn slide on President, for Vice Executive Q&A, Chiang, the

Wilfred Chiang

billion, is initial plus guidance oil prices. segments our adjusted $XXX or million increased crude you higher and This XXXX and EBITDA to of as minus well crude second quarter Roy. continued as summary, execution reflecting driven February both PAA expectations, for attributable NGL We outperformance you, long-term was announced guidance. and joining and NGL to was EBITDA volumes results in thank initiatives million. and our Good by our by above second in In our of all of $XXX Thank afternoon, us. $XXX due year commodity above million adjusted higher quarter segments. to Today, which both $X.XXX we full strength goals our our

year-end result, regards target a buybacks, to since program during to of repurchased expect total bringing repurchases midpoint we our inception. XXXX. units $XXX year-to-date our In we the of million leverage achieve million $XX of and by repurchases to the million common $XX quarter, the now As X.Xx of range approximately approximately

the Additionally, XXXX as result asset in our on sales our by and outlook year. $XXX target to we're that full increasing of year complete of more provide a during Al of our balance we clarity results asset million the call. sales anticipate on will greater the portion quarterly his detail

X, levels of ahead as are XXXX. XXX,XXX and meeting our As demand. the exit day overall on shale our we Slide growth energy XXX,XXX Current to remains to exit and forecasts, remain of see in and the between business fundamentals expect constructive running a of roughly Permian in X highlighted North production activity barrels American global keen XX% during

additional in this to for to leverage or increase incremental we continue capture Advantage facilities. closing we've over operational, remaining acquisition Plains customary increasing flow plus Both to progress $XX and has distribution regard make July, At NGL account capacity Furthermore, associated JV buybacks our a the the are years. XX% Pipeline JV opportunistic well operating grow integrated the number quality million previously our existing facility. capital cash continuing intend at the cash attractive synergies to incremental acquisition that to to the as leverage investments. bolt-on approximately Western strategy, equity on The strategically debottlenecking of we $XX mentioned negotiated while on volumes in to the opportunity producer minimal made for business growth holders alongside large-scale with us through interest of access In transaction costs model for our allocate towards net NGL And to next ownership positioned to continue at and multiple. commercial with than expect number of to to capital gas gas With drive we million with located our investment. free offset beginning Permian and disciplined takes we well an by gathering the generate into significant our growing Empress the to well provides and closed manner The capital-efficient cash sales. this support bolt-on our costs. of our date aggregation, opportunities interest are the as advance activity Our systems more we flow have markets order of return multiple flow expected assurance optimization XXXX expect increasing proceeds to a that levels. needs next asset and years incremental and crude the to of segment, positioned our and Canadian financial customers from supply production volumes meaningful capital segregation,

increasing noted leverage the X.Xx I of in with finishing to years. X.XXx. year of remarks, our coming We made allows or the As over the of strengthening at entered year to our now our of and expect to opening target, unitholders with which goal the expectation trajectory end high X.Xx. at our target balance my our accelerate in at us capital We the is significant we've exit progress The return sheet. XXXX of midpoint the improved further

Al, I'd our turning we week. mention the to last XXXX published to like that over call report sustainability Before

of look many with the turn the on of We're reflected continuous advanced to sustainability we've With performance. and forward I'll of that, to dialogue and over Al. in XX proud many As company. we you, areas Slide continuing appendix, our in achievements, emissions our you on the call made of these improvements the sustainability

Al Swanson

higher and second flows long-haul Cushing. Thanks, on basin due and includes volumes gas Basin primarily revenue Willie. plant XX the straddle Slide pipeline EBITDA We Empress adjusted of flows, which prices of is to quarter increased adjusted $X.XXX of minus summary X volumes commodity EBITDA our appendix which adjusted on our increased at benefiting and reported on pipeline million, We've in guidance on Slides quarter-over-quarter allowance elevated $XXX or $XXX today's benefit XX year-over-year Permian A detail guidance by full XXXX our our to walks, to plus through our billion. million year higher performance. order XXXX more quarter EBITDA pipelines, contain segment provide X. second located

not Permian spreads a of product our on than pipeline anticipate focused CX+ We Our largely comments meaningful updated of is initial consistent how NGL guidance sales segment. our energy program and loss is summarized inflation well result oil segment spec XX. increased changes incremental our and we in a on the crude barrels the Generally more allowance and to and inflation on benefiting some impacts estimates, outlook remain investments volumes is impacts Slide $XXX for guidance, speaking, share as sectors. our balance commodity as February May million disciplined the capital want the other our our few above prices our any business. This higher frac of prices as year. also volumes with on in our in moderate and I do are

materials. have Our purchases costs is managed earlier proactively we capital modest some of program and through

bulk we expected, increased sourcing, prices higher are equipment, fuel mitigating orders we result of utilizing and and commodity are and as are services, the seeing through on materials As higher strategic energy which rebidding. pricing a prices and

we remains escalators expect a continue offset net capital being framework allocation, this to of All annual expenses said, to benefit. modest provide On and our consistent.

our Year-to-date, up We and flexibility. of balance call common leverage million opportunities. we have we I valuation the or meaningful increasing as equity continue A for Slide $XX sheet well reinforcing Longer approximately With as $XXX yield strength holders to will future and over are free to the capital while so on current million profile and be of out summary cash earmarked is business XXXX. opportunistic disciplined We generating XX. flow with repurchases. to we to that, investment the our will allocation repurchased Willie. back term, units of turn located equity financial outlook, monitor

Wilfred Chiang

asset via our execution. to and constructive, Thank solid of operating base perform price results within you, and environment, growth the continue commodity business system. well the Today's another Al. incremental performance remain and reflect higher Fundamentals our leverage capturing quarter in

well into we to forward, benefit to investors. momentum of Plains and our is to generate flow the positioned cash build meaningful very Looking continue XXXX,

few forming numerous made build-out; multiyear the solid improve JVs, Over strategic our years, sustainability completing assets; we've progress the Orix capital last our on Permian and safety, Plains performance. optimizing continuing including our to environmental and JV;

sheet Additionally, to our and have remarks, we've as improve unitholders. return balance increased capital to in we've detailed our continued

well summary summary, positioning we've thoughts very forward. Given we last of our allocation Directors, to the call into XX numerous sharing Roy having of few today us over on and of to flexibility, is believe the initiatives discussions as with with are regarding that, from takeaways as back well positioned Board I'll lead With today's we in plan improved key and our and and forward additional and business turn Slides going provided our In capital on deleveraging years, call our quarters. you the XX. coming I look framework financial over and to our execution the accomplished A acceleration Q&A.

Roy Lamoreaux

now [Operator ready questions. Willie. the call Sheri, we're to Instructions]. Thanks, open for

Operator

Instructions]. [Operator

come Our with Jean first from Salisbury will question Bernstein.

Jean Salisbury

change the Corpus pipes what and year-to-date, foreseeable you that? forecast Utilization Houston very on to Cushing. Do crude higher Or for than staying been could high has this future?

Wilfred Chiang

flexible. very Willie. Jean, articulated system being as this We've is our

volumes think is going point specific cover up details basin. as we've necessarily down the we on because Jeremy, directly more reflect question? not the Cactus our through And coast the want Corpus wanted in of doesn't about you system, to to whether I be to her or So to I, down capacity can some are volumes the flowing got business II Cushing. power Cactus make to do

Jeremy Goebel

Jean, demand chain of right oil. is Corpus, the marginal the given to in for international, now the disruption with crude regard supply

the to export to at expect would we Houston other see utilization to to markets. markets. export a pricing So Corpus' premium efficient most

to So attract barrel. naturally, going is of barrels the the highest plus the price quality

lines lead starts to that. in I But think see to more other So higher utilization we'll fill, it as those of markets.

then through see markets. as high, So get to you'll remain and this additions we see other year, you'll Corpus

additional see in other pipes You'll some year. ramps next

So step price. it's highest X because the is this

so fill. And But it to will you'll whole as fills, see start boat the that.

-- logistics expect your would is yes, we a on but from and quality premium a standpoint. at to question, a answer Corpus So pricing

Wilfred Chiang

continues long-haul as we in again, intrabasin volumes probably Permian definition, are you for in systems. do one lines. long-haul that volumes as increases to in expect of and outlook Willie flowing the both of other our go the into production And Ann, we expect Jean we by more some to saw it slides, in And the to, as the grow have our

Jean Salisbury

in terms a say Is Yes. that would going Cactus to fair or margin you No barrel Cushing though just of II added Cactus that. a it to on prefer or to versus depends? it barrel

Jeremy Goebel

the even between we're relative lower others, tariff then on JV the more higher, Cushing capacity on but Ford somewhat continue for a we're But it's of of margins ownership, basin are to -- margin Corpus The the kind XX% XX% because II. is of we on been and have to versus to indifferent demand longer just with at see Cactus that slightly bounce XXX% there's over on if and X even. own Cushing Based basin absolute standpoint margins getting better ownership as what I'd because effectively of an term, Eagle -- the the we'll see. our the and to

full you we're pipelines of the happy, customers think but somewhat barrels economics, when So are [indiscernible]. indifferent, moving,

Wilfred Chiang

on back increases the will just Currently, the tariffs in as And Ann, to as Jean pipelines, utilization well. the increase the flexibility point. reinforce

we been in we've that to pretty forward spreads utilize. able the market has constructive some shared time, last there As still

we forward. So what we say as change go today may

much us to tariff go very again, If more may that a to multiple allows to But system think higher obviously, of system you've going flexible as markets. barrel got sense. our Cushing the Cushing, make a to

Operator

moment That our the will question. of Research. come with next line for One Keith Wolfe Stanley from

Keith Stanley

business Empress. Can activities. there I the versus curious, for year debottlenecking higher then margin? Could guidance on say seen driven the on terms I'm be you movement and building in First, in a know that segment. And volumes commercial and volumes of you're how NGL more other volume time? working uplift you've EBITDA is out much over lot through the of

Wilfred Chiang

with can in pricing I'll you had the view going that flows second bottlenecking the Jeremy optimize to complex some are either we Empress, the as to unique some you so as can in or you Al between Al, we've as you do Bakken you think or Jeremy trying events We higher. more And And tell volume. optimize on allowed to way, shared fundamental dollars? Keith, as difference Yes. low-cost was correct, let before, of Price about that we it but volumes I about that. want opportunities are that we've commercially problems give far versus... weather quarter entire we are both. talk the there. got also and a more the clearly

Jeremy Goebel

Yes, sure.

where fairly direct on to probably that's your close. spread between frac necessarily this think market for think going question hand, based on one that's we around forecasted exact pricing, weighted is XX%, So I end year, volume up the a have hedging don't our that's going I to be proxy. and average I but XX%

we've announced. As Empress room and in complex, it. have recently expansion all vast the essentially majority Us that Pembina of some for border capacity. capacity some the far flow we the as through have optimizations of systems, And the

largely Plains' here east order And so to out. will on west to go from flows incremental capacity from

So Coast, those out that you the create move AECO what as as lower Marcellus are of U.S. comes to and expect more production the you market arms of markets. on exported West long other gas continue incremental in go as markets, priced would the more net from to movements, the to gets as demand to

compete effectively, with So production. Bakken some It mechanism. the does that's

quarter you've that's large, west to that substantial and additional east existing was some voids we the meet So -- second would go that arm by to uplift complex. the -- of extract the seen NGLs. across fill anything production. Bakken have to through in Empress moving the TransCanada weakness capacity in But to system And that on due to

Wilfred Chiang

Chandler, Chris Chris, want speaking, a chat Empress. on of to about investment this, debottlenecking may but that? we finalized about decisions we've to advance we're that number -- you generally far just haven't as you got talk things trying as

Christopher Chandler

Sure, plants in extract to capacity the NGLs about really we capacity system Keith, the as this the on the extraction Jeremy there's There's Empress gas more is is today. straddle gas through, Chris. like stated. themselves, to move plants What

leverage from NGLs. operating some the about provides standpoint, that debottlenecking And really it's So a fractionate then and where we upside.

and So markets, to ship Empress are to gives we Ontario evaluating over That the today, Ontario out there. to fractionator. we fractionation both do fractionate access at a to be cost further or fractionate able to ship rest the east, those at instead Empress area but the additional distribute projects directly our Empress Sarnia, portion having we us the purity of and the products over to of associated them regional into to to the

of around and capacity lot efficiency that both opportunity debottlenecking for a complex. So and entire

Wilfred Chiang

tens value not Keith, And the millions, of dollar of millions. this is measured in of hundreds

cost, them. high So opportunities if low proceed they're we very return with

Keith Stanley

That's very helpful. thorough and

Second, unrelated question.

apply pass Reduction have the But would PAGP component? if your right PAGP. on if unique inflation bill read not? it initial will now, your to the what the what's On who it What's structure security read knows it's with Act, you or and tax as the for on mean initial written minimum could obviously that and

Al Swanson

Keith, this Al. is

as that. you is have net it's that apply. believe smaller be -- I -- contemplated, would PAG over much $X income, billion. income not doesn't than read Our would it if

not we would So do apply. it believe

this back, minimum stand think obviously PAGP ultimately, if structure is taxes an very has a large we asset up, corporate the won't with isn't apply while. you tax corporate go paying the MLP our tax be tax issue issue to If not Ultimately, think But there there. this for rates entity does if that MLP an PAGP. we a

Operator

That Colton the line Holt. Tudor, next our question. from for moment One with will Pickering Bean of come

Colton Bean

see early process. know level, the high it's in expect the the shift see So cash would to there at potential of increase range? But altogether? the you lower leverage returns number equity I of a mentioned free to bound equity flow if you a range excess times. decision-making you potential also still toward leverage XXX% drop is to your the Or of towards move allocation lower a

Wilfred Chiang

We in have with in couple that I'd the annual actually It we more early Colton, of we our have after discussions May. a give with and a the Board. happens capital April an year, things. think detailed with have we announce our distribution process we usually, allocation, you about Board. in some When -- rather increase we update

momentum on XXXX, it leverage forward, as And the what is, and the look that it's mentioned. our at closer. to progress to building our an I you going We're ultimately. going to you'll we've think be we where we're opportunity that With we made deleveraging us this a into want gives see go a of lot little things do evaluate

migrate buybacks. -- down little our then will continue because, investments. split the continue discipline again, the our on expect to but then CapEx we think increases. you'll And and to you between won't to be that have target. opportunistic. further. support is us distribution as And with We be will we Do and see that also, at continue have And some to be Board, I real increase can far expect give you on allocation question specifics conversation to would a expect distribution buybacks the as that capital I to we our I

Colton Bean

upside? Understood. And any NGL from movement also spread frac basis wider the particularly that it Are primarily discussion. that's east up the Or Sarnia? is spreads, the to seeing then driving you following on benefit down

Jeremy Goebel

The all answer of the is above.

our do we sales our similar hedging. So manage to

locked at sales will always differentials, opportunistic there, into there's fixed but accelerate be component. So an in opportunistic We some sales. can

certainly But the So sell have we forward fixed ability we short, are Edmonton. when to do we markets at at basis -- differentials. sell

out ability the Empress have facility. to of We rail the

out rail sell the of facility Sarnia or to ability the have We locally there.

market where how. of So flexibility we ton and there's a in

we opportunity, to Sarnia sell If location. wheel better certain is Conway, can like you that there. see locally now, instance, can if for that we market, So instances a barrels

it other very So similar California of have markets. Butane, short flexible we system. or it's capabilities across a

frac biggest additional can and the basis. have is and that optimized So but us to market them. incentivize you'll real the see an component, times large, changes absolutely move spread would be at by But sale barrels to basis structural

Operator

That our from for question. come Mulvehill of with next will Bank Chase moment One the of America. line

Unidentified Analyst

This and for Cactus II. Chase. to opportunities is Neil contracting for in understand Mitra I wanted I the [ph] basin Cactus filling

inventories recently, the And you is basis longer low that? blend-and-extend that for Just Or too lived for need and people year-to-date volumes, a the demand given just appetite opportunities? attractive you extend? international short basin the line given are Cushing conflict, to the with time high Russian-Ukraine wider seeing strong any see what's the to for at

Jeremy Goebel

would constantly in Jeremy. and is with market our Thanks, What customers in customers, the I we Neil. are This gathering say with is long-haul those our dialogues.

while $X.XX, were the and moving than The do $X.XX, way. those We producers any extend now So cast. $X.XX, $X.XX been to time to when blend short didn't spreads that watching is at want long-term are deals we've along for the periods.

Now with they're cash. flushed

at really extend. they look an blend So at It's more appropriate don't secure looking and takeaway price. of

some premium profile we're but what's discussions There's range and extending the we in about value to momentum managing constantly with in very -- a the markets. year. we maximize we getting the deals. something in prompt securing so And want around been XXXX absolutely supply. the in Corpus we're call, long better But we this when that and around Corpus confident but have still duration into demand time we're and next is We're to price. discussions for some we're $X.XX When But a talked haul the year as there's the appropriate will. last negotiate a Cushing $X.XX around is And of with longer-term to dance production the the We're deals contracts. -- contracts, in staying lot there's update, to our that or active. in of Cushing contracts

our shippers to and with shippers continue look space well. optimize that we'll and existing have other as discussions so to And

Unidentified Analyst

to Jeremy. I just a wanted follow-up to ask that,

utilizing a not Corpus alternative which lot have your Heaton Midland about well. talked So to Cushing presumably and as them actually deficiency of and are peers paying to pipes, to move likely producers fees locations,

Plains' describe all pipes long-haul that you on and in going impacts the going? volumes have are current just Midland, how the in interest almost of where what's can that you out Given maybe market, of

Jeremy Goebel

lot location difficulty Brent, a differentials I MEH, which between volatility of Midland, What in would price and flat there's Yes. in say a lot of pricing is TI, creates barrels.

lot the shipments to is People sell exports. Midland and at and especially a at to market that, to election opportunities. clear move to than of That see end better complexity. not the just do adds with It's long-haul So Midland. backwardation

long-winded very cargoes. way It's price a process a it's answer. complicated So to to

So you with a that's in exact pricing because they and the the volumes. people And why see people have they backwardation, can't window are volatility substantial of to markets. moving hit lot find

So some have to different equipped more are markets.

then It another that barrels you're I just of volume. proving as a market so lot a for at There's things moves seeing person Corpus when a efficient. out a few see is in the prices sell these Houston lot they you'll lot for of better on pipe. get days and is a any said whack. seeing quality, Wink-to-Webster, more exports And more So moving move some the a you're complex. Midland, of month, be better see pricing the to a beginning, But direction. period capacity move in is and won't a But for thereafter cargoes substantial to moving slack has there. price, you in of a

move usually and high crack constantly wins the but price spreads. to price fluid a best is right Cushing inventories Corpus with now, has it's situation, and So low barrels.

you're more demand volumes. some pretty inventories business, seen since and on then the And you've consistent refining pull to seeing the there's base not export basin from. So Houston system the

You're volume pipe just to other. from of a seeing the displacement one

Wilfred Chiang

key the on Jeremy about has strong lines. talking these is, we've Neil, And got that remember, this MVCs takeaway been on

further to not it it. or volume us paid the flows So still there whether not, or and get optimize gives we opportunity a

Operator

line UBS. will the Reynolds Brian Our next with come from of question

Brian Reynolds

volumes bifurcate volumes and about expectations, from Kind new a how volumetric competitors? of running You customers and on attracting what in prepared growth system. you perspective. talk the XX% system your just if can organic curious above remarks, from perhaps you're could think, you're you to help talked I attracting about seeing to if

Wilfred Chiang

let a long answer it intra-basin, to got got I this. preface Jeremy system. complicated of this, it's gathering parts but a we've want going the very There's lot with on And because haul. moving to we've JV, I'm we've got

Jeremy, a it. at shot take So

Jeremy Goebel

Sure. XX% the system. year. the activity Brian, is is volumes first Activity across to what increase answer Willie was to in the in clarify translates saying later

think Connections back So half, growth XX% the in the we production half. weighted. roughly are is the instance, for second in first in XX%

activity of is some XXXX. in year to that going half So going yield momentum second into the the

that. we just So . to I competing first doing wanted But how clarify are for volumes.

We have over the and X systems, that have. between million dedicated Plains we acres JV Oryx POP the

have adding We're continue acres to We acreage customers extending significant the to and happy deals. are actually core substantial term. for position

So due on we pricing denominator the have we're lowest system. we're quality the the control, think access the to the very that well, and and flexibility, common I market not to competing

So for the incremental is activity bring when amount dedication, that you what well organic say you very to volume. would of and have system. substantial I But competing we're a contracts have acreage term

have. the is developed has have everything that organically when put additive to base when we to This the be merged business we we tenor you X not businesses. just So contract that together the

Wilfred Chiang

Brian, would the long volumes at if more getting the Permian a insight on give think, how we're between interbasin X, it gathering look system and you I it haul. in the in probably little Slide across you

Brian Reynolds

extra and appreciate that color. I clarification all Great.

and expectations down tick count kind Eagle can attracting rig talk is quarter, but As follow-up, my volumes like more terms what a you're there. about the small seems seeing during activity Ford it to curious Ford just of in the talk further the could you if of one about the I'm site. saw Eagle you

Wilfred Chiang

Jeremy?

Jeremy Goebel

Brian. Sure,

Ford were given leads that Permian more seen You've capital operators turnover private of a in because from Eagle generally those for activity activities the was to there allocation else. that operators lot to somewhere the public and more starved to or

noncore. so say And it's you've Chesapeake seen

the So in with would in the Ford. Lower Eagle Western activity, have Chalk and seen activity. accelerating Ford the Eagle We've is come we say the what they're well seen that as as newer buyers I more

the the in Ford, activity continued seeing Ford, see seems are Chalk -- volume we would there. prove it expect say Eagle we I'd in increase be and Eagle up in growth to in as So the to they an Western

Operator

Tonet from for moment will One come That our JPMorgan. with Jeremy question. next

Jeremy Tonet

a want if Just could. quick refresher, I

-- with growth I talked you past in points at think growth NBCs the there all line with refresh about and into just that at volume Does move time Or forward where the movie there? would fault what's would it be great. of that the system current more pass point. on this? beat you bottom the turn line Do a

Wilfred Chiang

for The system I would refresh in. The the additional think and quarter to at gathering with look be, been able volumes our bring flexible. Jeremy, numbers grows the we've the the is system basin.

slide quarter's in more So really to Jeremy, is those the been volumes, some on last see increase to haul, the this shows And able volumes long long-haul to anything which volumes you'll on that. the add? the grow. then and get continue estimate, the on that the we've And system. between difference estimate quarter's

Jeremy Goebel

think is I Jeremy, right. Willie No.

a production that you add day time time you said, you're As filling bring forward XXX,XXX pipe. accelerate and every period or barrels momentum, because as the you we production, of XXX,XXX

the good feel to outside about, of they're as coast, that, about but to it's and we XX talked tariffs look XX we So getting momentum going still you into proving beginning XXXX. with as differentials at consistent next accelerating out, if we that accelerate the the then months it's you forecast, year. think the about And our in

what progress said, to So we it's consistent and it's looking along. very period. continuing we're And forward that with to

Jeremy Tonet

it. Got

before, to quicker a that's it's maybe slightly frame, time if mid if 'XX together, going I'm summing ballpark it? So than

Jeremy Goebel

better between for balance and balance to the that's and mean see carriers estimate. better you the I very period it mean say utilization rate you producers a and for the carriers see between I a of get I start utilizations on and start a and you Sure. a I that say rate reasonable reasonable better reasonable can producers into strikes return a you strikes better and it the return. get period into a to of can that a the pipe.

Wilfred Chiang

Jeremy what wait able the said, time sure hope agree But capture system, capture volumes. Goebel Jeremy, to of don't us our period -- saying that's we're be we Flex make have some to because to to just that I the same the of of to with thing. I allows but clear. for

Jeremy Tonet

Got versus it. increase the between fee looking could. one guidance one, breakdown -- at how And versus commodity just what's there? I'm May, I If the now if last

Wilfred Chiang

they're tough a definitely you of Al, numbers? can higher give the volume -- -- components to It's there's commodity it. prices, tied It's but some all

Al Swanson

the for NGL the beginning up slide whether did walk is one in There's commodity, it's driver a Yes. year from most -- of frac the But the that Canada. we of year. the

on mentioned some pricing there Jeremy been are the PLA driven crude seeing but growth of smaller by volume that and the volume As in. well. then benefit we're it's embedded this has seeing is a also Permian part actually oil side, which the And as earlier, increase, we

of I say the rest, and over would I So half would be say, based is it would more more fee-based. commodity

Operator

will One from moment the line next for That Sibal question. come Sunil Seaport our of Global. with

Sunil Sibal

also? Is function me, assets on updated it A million. questions couple sales the program? entirely a of the more of number, a asset market function $XXX of into out that is your program, the starting for bringing Or

Wilfred Chiang

line about more different been the just to clarity it's better Sunil. being bring developing on able on really with clarity what year, across assets assets, folks It's that visiting and we've this

Sunil Sibal

NGL have from a you're of the you Canada. folks kind Okay. expecting still of you year? kind the I of Got the of something it. Or And that's then outages curious, benefit think in Bakken that I seen your of in impact abate? was about in assets remainder some terms mentioned

Wilfred Chiang

Jeremy?

Jeremy Goebel

Sunil, is this Jeremy.

to down the as oil Midwest. -- went went crude down, gas production, gas that feeds Williston So production the normally production

from So more AECO was gas storage. needed

high we're temporal and Canadian is day. was production seeing Bcf that approaching but flows XX still a order high April production. May, in and So

$X incenting got $X, and between hovering AECO drilling. You've prices is which additional

So incremental flow. those positive all are for order

portion portion So that is by activity better of Canada. May, a driven just sustained. gas April, portion was plays second in the But that. quarter was within outperformance by But driven the some substantial

Operator

from line moment for with next our One of come will question. Truist. Dingmann That the Neal

Neal Dingmann

buildout. a got available curious consider, potential these things. lot question what is view you sort for wonder assets was view of organic And sort expansion as existing I how know versus I today's do of on first type of My you've room of specifically, I M&A. I how market potential or other, you X

Wilfred Chiang

say, at of it. a the there, bid-ask going we're very I to on would a are assets look out coming spread, we is Jeremy? that lot But bit. and in disciplined Well, stay

Jeremy Goebel

Sure.

the we side, expense from deep standpoint, and or crude the ability remain commercial to disciplined, us liquids from standpoint. we're most the standpoint gas an extract footprint capital to operating side, and of synergies market an have the that affords a opportunities more side than we'll from but On it's see going on a the

beneficial overall We're we'll cash be constantly disciplined, longer-term we'll going look the do only opportunities. So in and if accretive flow things for engaged they're near-term for we're dialogue. But to system.

Neal Dingmann

just to trying trying an broad in hear. how that I get terms, of quick one. I'm that Or total to I second was idea mentioned to you good of much sense much just from advantage know will likely Great And is this just Is coming there, how trying recent to just large Permian a is a broad growth. get for JV. more then to a advantage get that the a of be interface of be percent? it bit on a contributed. housekeeping. sense

Jeremy Goebel

moving and to eliminate east by you barrels expenditures you basis move will to give to to give a and we was us. put come a the capital displacing acquired other XX% from But and that what gross from we sense sense, volumes. that day, have back a To those barrels will pipe on them ability roughly advantage, from XX,XXX a west directions that XX,XXX future

the So expenditures. and capital or I had ability eliminate volumes significant we defer put additional to think

that part that capacity have system. allure our to use that's the operate of can more efficiently is to idle think we I So

Operator

I'm further back over showing no closing this queue remarks. would questions to now in for I management at the any the call to turn like time.

Wilfred Chiang

Plains for Sheri. for all continued joining listen, evening. support you for a Have today. your thanks look to forward, forward Well, Thanks, nice interest We going us American. with visiting to and and everyone thanks

Operator

Thank This concludes call. for today's participating. conference you

You now disconnect. may

Plains All American Pipeline (PAA) 4 Aug 222022 Q2 Earnings call transcript