Earnings call transcript Q1 2023

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Operator

Good day, and thank you, for standing by. Welcome to the PAA and PAGP First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Fernandez, conference Vice like speaker to now Blake today, President, would turn over the your I Investor Relations. begin. Please

Blake Fernandez

many efforts quarter Gavin. us joining you, time ongoing All you of of Good and all XXXX time first for welcome Thank part earnings optimizing day from you continue our on The our result is Thank investors for a of of call. our new and to call analysts. our and to morning, today. you engagement American's for Plains and new feedback earnings with

the Today's Relations audio slide presentation today's call. is posted section following where available under on Events News an at be plains.com, Investor and the also will replay website

on on from quarter the PAGP located Important and forward-looking appendix. X. disclosures Slide and regarding are statements balance X. provided other are the Slide sheet provided non-GAAP in condensed are A consolidating measures materials for reference Highlights financial

and Today's call Executive team. hosted Chiang, and by Vice our Willie will and be as as of other Al President management members Swanson, CFO, well CEO; Chairman

Willie. With to the would turn call over that, I

Willie Chiang

Thank we you, reflecting to strong everyone, Blake. and targets progress for February. thank with full-year on and providing deliver good plan our executing XXXX announced towards on results, laid the in this out Earlier us Happy joining us. ability we you confidence Friday, morning, and our that

comments our be brief. will result, today a As

American confident continue concerns, is demand. headlines the cut critical this, banking meeting will positioned It's been that remain the along recessionary in ongoing a volatile as a the in the growing long-term well all Ukraine. be war with few months and Plains of global North for perspective OPEC with supply an from we to to industry long-term Through unexpected production macro

to And For XXXX attributable Slide done Reporting just on on that. illustrated our the adjusted execution. X, EBITDA of and PAA $XXX quarter, is first through we've million. focus as

for year, the outlook billion and result of of the adjusted EBITDA guidance XXXX. our first range for quarter balance we of our $X.XX are performance a $X.XX billion our reaffirming As to

to Additionally, XXX%, approximately expect includes per and annualized of we cash of $X.XX our coverage unit common recent free distribution generation which flow increase. billion continue $X.X distribution

Looking we additional annualized flow of our free per quarterly increases detail capital unit, of our allocation supports targets announced previously call. focus XXXX continued which his cash our on framework, portion on expect Al distribution and reduction. debt in outlook and forward, share will that multi-year performance and $X.XX leverage the further

to Let the me Permian. shift

of barrels to production based capture day. assumed We a volumes growth a system minus or our barrels production exit-to-exit increasing continue in day XXX,XXX million approximately we X.XX XXXX plus on XXXX of expect exit and an on

tracking and While to including still full-year points, environment. year, relatively continue line with rig completion well XXX expected count we in the of current data horizontal early horizontal in rigs, is and additional monitor activity average our price commodity

our year-over-year our underpinned long with guidance we growth and on continued our as by shown February gathering Permian and X, volumes Consistent haul systems. segment, Oil growth tariff production in our in and Crude Slide expect

continue wanted this as expect we facility, capital I discipline share that Al, to center Before remains detail to to I hand reinforce on additional front Saskatchewan which to opportunities it NGL and we Fort our over later capital around efficient advance year.

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

Al Swanson

includes due sales the winter opportunity from EBITDA within primarily to volumes across our and from Crude seasonally attributable $XXX Thanks, volumes Oil adjusted PAA The Willie. NGL increased quarter of market-based and segment favorable to margins. first higher demand reported This segment We benefits Permian. million. benefited systems,

on on our with Slide February first A remain are our appendix. and X detailed guidance consistent provide Slides today's our walks contains of performance. and overview today's which key appendix which XX guidance located detail XXXX in assumptions XX quarter within more

our in driven increases growth year-over-year by our anticipated business. expect Crude to in continue volume Oil Permian segment, We

hedged the in summer I turnaround XXXX, this of sale non-op [saddle] sales Fort the For midpoint a that segment, planned structure continue the expect NGL segment remain and lower in February volumes months third-party winter an adjusted second $XXX facility relative demand supports of peak to quarter, the which our to note reflects to Keyera EBITDA to interest summer highly reflects increased would in versus volumes and market a due the we million. Sask the winter months. NGL more pronounced

reducing illustrated consistent capital outlook, as financial continued and flexibility. with and returns allocation February capital discipline and capital debt, equity committed our on significant Regarding X to holders, we remain maintaining our Slide of to

billion For flow generate million cash reduction after debt XXXX, cash operations, year-end net approximately leverage for distributions of of flow in free billion to $X.X resulting we $XXX from free X.Xx. available of $X.X expect in flow cash with

amounts opportunity. We Sask will self PAA, does million to related February potential the capital net consistent and which our $XXX and to maintenance of include continue guidance and fund Fort $XXX to million investment with not is

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

Willie Chiang

Al. despite volatility. the we near-term Thanks, outlook results quarter of year, the in for reflect strong Today's and our confident execution another remain

energy to our low is that reliable continue in situated the business long-term, that world We well believe cost, to need meet a supply needs North American and responsible this and manner.

to and flow appreciate to free conference our illustrated in targeted on support, as balance increase current X.X% forward cash providing positioned call well and our X. distribution further continued are generation, we we believe on your and through look strength updates sheet returns earnings multi-year capital to interest meaningfully August. unitholders also growth Slide significant yield, We of We

into Q&A. With that, over to the I'll call lead turn to Blake us

Blake Fernandez

Thanks, Willie.

to session, Q&A As one yourself limit and we the enter one follow-up. please question

queue. free will our additional address in as return from This feel us to time questions practical the with as many those this participants questions, to morning. allow available to please For

have. to team IR the address questions may any Additionally, will you be available additional

are we ready now open questions. for call to Kevin, the

Operator

Thank Blum with Wells comes Michael first Instructions] Our Fargo. question you. [Operator from

Your line is open.

Michael Blum

updated any for change if growth Permian producer in or pullback [commodity XXXX? in seeing rate morning, Hey. messaging Thanks. you're and about want growth. talk I Permian as everyone. Good to activity outlook any Curious prices]

Willie Chiang

Jeremy?

Jeremy Goebel

Good with activity, line crews, working. our second per Hey, as volumes combination a in XXX with Current and would of connections activity to XX,XXX of that growth and completion barrels growth discussions necessary Michael. What morning. to a rigs on first month of say That's range day number XX,XXX the I half implies plan half. achieve system XXX,XXX to the alluded in of year is day Willie and growth roughly of still then this barrel producers. to the number

in of side. of Gas We're see But gotten or rigs to out way our material off. move kind forecast. move don't the somewhere know I to doesn't rigs like other some on don't any that it's has of you've crude seen seem and one large, XX we between, producers band if it change XX, but and inelasticity by this gas the

Willie Chiang

this Willie. Michael, is

and year. probably of right now, You've the seen track numbers. kind think so in around what outlined exit the we at on of Permian X.X February. had the with We ended of we're X.XX, beginning we're is We at our X.XX kind

Michael Blum

do CapEx? Great. being anything that that for should could But just think then XXXX you're not XXXX would we there trend the And materially higher lower? general, Okay. about think ask that point that. realize horizon wanted or Or in you giving really Thanks how to to than Is directionally XXXX? on higher guidance yet. Thanks.

Willie Chiang

I an we and don't CapEx. expectations the on would with average kind million of about as between that And range annual to we any we'll I NGL $XXX to a capital think, are we our expansion CapEx in of to million do we'll Michael, of taken likely that, that that still story get forward think Canada would we've to jeopardize return be in question our up our desire we back number couple over most $XXX maybe think there. flow Even our and stated But of if be what cash trying assets importantly, on unitholders. basis free expansion years. move

Michael Blum

Willie. Thanks,

Willie Chiang

you. Thank bet. You

Operator

Instructions] comes Citi. Spiro from [Operator next question Dounis Our with

line Your open. is

Spiro Dounis

Thanks, everybody. operator. Good morning,

First see point back the seems supporting kind maybe full. of question, that's maybe [corporates Houston on or could close use here? again, been of turn if to these start flows you you like just us of the hoping wondering pipeline start to getting economics just there kind It And guys to if at some utilization. from bound] DRA update

Willie Chiang

this The at volumes constantly have a Corpus on Jeremy, economic most the running of the little we long But start comment you DRA full. lines down haul very Spiro. way with it. outlook? bit And are I'll delivering optimize to Well, power to on want in

Jeremy Goebel

Sure.

reasonable growth full. volume ranges spreads growing on As volume longer we the The and but contracting. Wink-to-Webster haul are to discussed, month A of of we is as get had in might and of marginal and that have more been pipes, aware. had getting expect up out everyone to pipes ramped Houston we've And some inbound notably came impact February Corpus Gulf are volumes longer off lot lines the ranges get impact term every to it more between that Coast. Midland us an where and

I And to would continue what to to say that continue happen. expect is that so we

logistically that crude an the shortest place. area docks. the nothing, most incremental sound the leaving It's the It's is Corpus Permian distance. demand. but draw just It's we'll

pulled season pipeline demand. pull up, Our summer additional as basin we'll driving

activity more grown. on and has haul more seeing we're as long production So the pipe

Corpus of balancing will mentioned, to because you will get across they the Willie day barrel. demand and have be a is end full, you'll barrels remain full year, are pipelines As since needed. marginal the an the markets towards million all export But of X.XX but the the

Willie Chiang

our realized the And we've contracted Christi this. down Corpus of probably space into long XXXX. Spiro, majority to you But for already XXXX haul

the to for we number that back of our And next is out go very so of this tightening for in years. and capacity the years, margins thesis supportive forward as

Spiro Dounis

color. helpful Thank both. That's it. you Got

just one, Canada. in second going to back NGL The

this debottlenecking just optimization kind of a You talked guys have for now. about bit and

moving of Just When to we think closer to are some get of announcement? kind the do an what can there? forward items gating you curious,

Willie Chiang

August We give August expect update call. on to be you in our able an to

especially can commercial link to As you're around when together things debottlenecking situation, to to these trying and complicated is anchor expansions opportunities trying evaluate imagine, you it. up and contracts putting a

bit update to I going in August. quite be there's a So on a we'll able you that's of good give and been work think

Spiro Dounis

Good you, That's to guys. Great. Thank have know. today. I all

Willie Chiang

you. Thank

Operator

Our Reynolds [Operator next Brian Instructions] question comes with from UBS.

is line Your open.

Brian Reynolds

follow-up morning, on the Hi. just segment. Maybe everyone. to NGL Good

frac and was and from Your down guidance strong for spreads just strong expectations year-over-year a XQ. to given the million Q really continuing start a updated year being throughout $XXX the views roughly

there's there? there's we beyond Thanks. about? XQ wondering any any maintenance view that thinking updated be Or if or in if should Just

Al Swanson

take year Al. into Yes. a This shot. the I'll We is came fairly hedged.

there commented, XQ, our bigger prepared our in anticipate a million a as seeing you're sell bit comments, over view doesn't too what winter, structure the some a but is as for probably a hedged. do to XX% guiding volumes talked which month. in year. impacting the the We're quarter we is We push little it again, in turnaround store of second change and XXXX. $XXX we still us the market that But really instance quarter, some full-year, which into we would strong a had As the well summer saddle next to about first of a

our summary, NGL So for segment. the change we didn't guidance

Jeremy Goebel

turnaround the volume period. spring from. couple And February, things was sale so a a reflect larger and storm impact commodity that barrels the facility we the had full-year additional commodity at add is is both. in asset additional in to Just There that Brian. to barrels led a at lower would this exposed component We a commodity will received third-party an be last year. But highest exposure that Williston exposed there a of

the those year-over-year of a reduction is in for driver bigger the So probably combination EBITDA. I think involved

Brian Reynolds

Really appreciate incremental color. the Great.

around reduction. below distribution allocation. of while towards or if Plains year-end. curious question updated is capital be trending Next target table Plains growth And that prep could by and on XXXX, thoughts views kind X.X the just provide on seems is for to was leverage potential

cost dramatically S&P recently necessarily capital? that to its kind it of may leverage reduce has for views penalize companies Thanks. updated of that equity their credit not reduced Just have looked and

Al Swanson

near-term when for very favorable We I'll clarification bringing sense the how any trying a us look take potential at leverage to S&P The if, than take reduction, it out least preps. at to. is This the our makes down our it and financial for Al. is they of kind value shot. flexibility in more of Yes. in of

take do it Expect near-term the kind our not year. this So maybe no or We the in sacrifice preps cost so should in call financial the balance of for that the to that are out. the of us of revisit in the flexibility to view, them high we balance that or view sheet future. immediately change

below are best a isn't securities go cost the And debt we capital the of basis. to as market weighted The on well. of what is think prep refinance in our this cost weighted

thinking there. change no really in So our

We last of significantly so think kind future, prep do but do than of are leverage meet issued. not the S&P the pleased we definitely lower incremental security, The got think exception we because we the would we flexibility when we this year. in

Brian Reynolds

your thoughts. Have of good morning. Great. updated Appreciate rest your a

Willie Chiang

Thanks, Brian.

Operator

Instructions] next Salisbury Jean question Our [Operator comes with from Bernstein.

line Your open. is

Jean Salisbury

morning. good Hi,

Willie Chiang

morning. Good

Jean Salisbury

wanted follow-up to question. Hi. I just an on earlier

I capacity expansions been now to see that actually with no if Corpus pipelines full for possible. are I think expansion capacity of talking think at pipelines that other know Plains some potential Your about a But DRAs. that with didn't I were the Is possibility? wanted real have was accurate?

Jeremy Goebel

the have Cactus foresee We Cactus Jeremy. of don't this assets. is to II facilities any expansions this I, time, our Jean, at

Jean Salisbury

wanted Corpus duration start about to recontracting to you from kind on [E&Ps] might on heard extending kind your are up. those in and blending ask then expected of than in if Plains We've contractors others really or Great. high position the pipes But better next utilization coming also the of that Thank are I as is for expectations And your others. crude of what year for your to years were you. two. five recontracting, three market

wanted So your there. thoughts get to

Jeremy Goebel

of Jean, rates. rates. And discussions for have at have a rather We push it the rates, while. all middle longer on those for depends we're we'd duration. longer At in duration been not lower higher and

we us can haven't you any and that and like what for contracts five-year I customers. tell I But getting issues is customers think on that's seen that we terms like. between something our

So end range. the high towards I'd say, we pushed of that

Willie Chiang

are base. comment integrated Jean, assets would Willie. an is this One I other is, make asset our remember

to look when a – the Jeremy's haul. just we desire long at through gathering intra-basin when long integrate It's So the haul. recontract the really team look not it's through at extensions,

opportunity we out. more think a folks want that offer we So for fulsome barrels move set to

Jean Salisbury

will one if one, businesses? anticipate more you can I Lotus okay. energy that in any impact acquisition if material have sneak And transfer Plains' helpful. Do That's really the on recent that's of quick

Willie Chiang

We heard a all gives we it you've great the got a need. flexibility about. don't. that And us we think We've lot system

Jean Salisbury

That's Thanks. me. Great. all for

Operator

[indiscernible] from America. Instructions] [Operator of Bank Our next comes question with

Your line is open.

Neel Mitra

is Thanks This for taking Hi. the Neel actually question. Mitra.

the fee considered have half. But to business create First, the ask really of strong just last and fixed wanted a know kind spreads regarding been NGL just to year I more business. a bit a for to you more moving frac term? have little stability longer

Al Swanson

assets These that talking we're about No. straddles. are

do that We to not that. have and don't looked anticipate

Neel Mitra

second premium would maybe in recontracting looking the some is that place Corpus your XXXX, at you and And it. a Got getting having Houston for Jeremy, but spot the as impacting Corpus you'd producers question get? of and flows are XXXX in and that go look premium, to the in at possibly that

Jeremy Goebel

would what until that isn't The that hard Neil, noticed to speculate it's probably happen. demand XXXX. for enterprise

like. another look is million impacted that flows and clear happen in amount if and day X.X what XXXX, incremental barrels need there's were barrels to the same X those that's of sure I what a not production million Corpus be of markets wouldn't because materially we're But there. you'd is say demand to because or So can

is So the being mentioned lower pushed largely reason it duration. Ann because contract for Jean

and Everything contracts quality long-term a need to to is XX% moving XX% are utilized. get. is Docks You maintained.

struggled materially volume are and Corpus agree our we to with will haul a because that near-term. the in enterprise, flows gathering are in it higher production, do long growth. docks term our see from won't pipes means full, impacted incremental the come so likely there's And need and if inland that pipes be longer We full,

Neel Mitra

outside Great. $XXX the $XXX some like the of of system? could on you And question just point? at of kind If gathering side. have one would if in would range expect, point on Permian that continues intra-basin in to to intra-basin kind gathering clarify you the put your what grow, major And million I you see expansions million at to

Jeremy Goebel

I What I'm want just question I to that range Neil, make answered was properly. sorry. the sure

Neel Mitra

now? the CapEx range right in you're that Just

Jeremy Goebel

push range. us anything would foresee out of don't that that I

additional I creating We this think I announced Neil, to at probably always in creating of the a We capacity hundreds program year of come out. capacity. XXX capacity. year. capacity and constantly stations through earlier as for a But It's have pipe, neighborhood would gathering on Wink more in debottlenecking it, can debottleneck need there's towards million of million not this Wink-to-Webster ship lots XXX and between our The look if this we're is segments that temporal will capital way system. other a segment millions pipelines the pipes. it's of end of we’re and the of and Midland large and we'll to on

So at projects, that multi other out of the dollar for we as is shorter things answer that need see from projects. ton see of don't organic of much far push But of we us potential hundreds would acquisitions don't that millions and building as a we look might time-to-time.

Willie Chiang

Willie. Yes. This is

If you in Jeremy look to good there's able get of to as constantly trying be the illustration a at we're Slide operating And to optimize X, more our the it. leverage Permian. said, of out system

before it'll hit be number So constraints. – we I of meaningful constraints think years a

Neel Mitra

the Okay. color. Perfect. for you Thank all

Operator

comes Jeremy Instructions] with question Tonet JPMorgan. Our next from [Operator

open. line Your is

Unidentified Analyst

Hey, on guys. Jeremy. for This is [Robin]

guys Just might and volumes to think about haul Thanks. when versus curious, tighter? risk looking capacity becoming past you guys XXXX, you how see risk intra-basin gathering long

Jeremy Goebel

Great. That's it.

in gathering producers. So constantly volume side, we're moving we're on the always always with –

flows and constraints. you with try volume we're work see say we on would If constraints and our we'll mentioned. just an might depending that's to that move ship the active with Corpus, go, where we one on see partners you online big Willie Intra-basin if incremental an do there's to and of have talking we intra-basin. is So ahead needed the producers a trying year in direction? program one to about that. of expand place But towards the could resolve as need Neel this transient needs to where that one, where capacity. investment That's to more I'd we end can I is stay Houston was or capacity that to go But or coming piece say

ways might those there being constraints, are we some resolve intra-basin So investments and have them but made. be to

right. The last haul by market, It is on side. one the on long depends

mentioned, I markets As needed. are all

percent plus flow flow. the can fishing. can Houston, to utilized flow but XX They barrels to You're they to they for flow in places plenty there's of to Corpus, [indiscernible], can

the So would differentials time, and expansion. incremental over inside today support where they are of investment

you'd a So the probably see saw on would probably need before expansion. side. need event move long to couple first away incremental expansion rates you of from years haul that's But here before you incremental

Willie Chiang

a basin. just about million there's away about barrels take as as long capacity, you the Maybe out reminder, think at day capacity haul, of total X a

If it's at little look economic a you over capacity, roughly bit seven.

talked forecast was end, year we as Our bit a about just for over six.

the see the into reducer end to drag up can there you up. use higher that the costs of get and filling volumes. go you to capacity The and as start So you try

And to forward. so that's part think go of have the reason as margins ultimately we that that stronger get we

Unidentified Analyst

kind for there? color incremental teams And projects that gears, on guess group? or focusing of any kind Thanks energy on types front, of switching deployed wondering would Great. the by this be What what there. then transition all the capital are the I updates of just

Chris Chandler

Chandler. Chris is This Sure.

hydrogen one modest announced We storage It's battery Ontario than a we've a number that's lends begin million. even and number behind Canada existing at position, store in a area. is actually operation In whether continue investment, power converting like to $XX to existing generation assets pipelines, our to storage project underground. areas, construction our of it'll renewable evaluate – energy our storage metered opportunities looking less particular, this Sarnia, itself The at summer. facility, this projects in things or We're a different hydrogen. that's of facilities,

compete day, partnership. these across capital of hurdles. the looking we're projects at our and investment have So for to the end have meet the to But

Unidentified Analyst

it leave there. I'll it. Got

Operator

[Operator Instructions] Moreen Mizuho. from next Our with Gabriel question comes

Your line is open.

Gabriel Moreen

a you then crude from just well for of premature of us guys. Hey. And that can can Capline Canadian up you insulated crude maybe sort Good little question. characterize this, how ramp are the pronged of early pipes that on can kind oil are if I asset just where oil One is ask year, Canada to TransMountain but your is a ask two volumes in going? morning, starts Maybe how and out just talk your next start coming – pipes about assuming up? we are,

Willie Chiang

Sure.

seen existing St. a Capline the on So the refiners. front, quite demand James bit shippers the from and of we've

based that to they the to that's and outperforming volumes, barrels. light you've up. and the And west heavy that And when to heavy incentive the of exported a some been to the Gulf largely volumes heavy crude year-to-date. about on on does continue, leave startup, that the way So and States. then That's we mix committed run, Coast. will head TMX barrels of crudes expect and not into is got east United think getting could going need it out That impact But start right?

additional that either refining barrels could it bring that of soaks could additional to that or mid-con a lot up. complex So the bring imports

So our our that Mid-Continent. could and pipeline basin support

move for I it specific because refiners looking draw for So That Cushing will are could those to positive. Capline, them. the a additional continue who movements into area. think be could barrels are

quite have of some would but barrels those a expect could we imports, bit to move. They largely

Canadian are the gathering Our largely into insulated. are largely assets assets Those main line.

incent production and that to So increase the differentials would tighten, and more if come. the price realized volume would

systems. market-based we opportunities additional volume would before see just lower but things lower takeaway matter could see more fee-based normalized it we So with and growth along we think opportunities, differentials, of a time and the be some because might

Gabriel Moreen

maybe sort on And the update update there's if receivable, if get Line I any just of you. XXX an then Thank there?

Al Swanson

to claim the arbitration. been collect claim. submitted No are feel of proceeding in denied. update. fall. we with strongly with the And Parts has the and of position expect We merits We've our

it into take some time modeled and it'll XXXX. early Although we've

Gabriel Moreen

Thanks, Al.

Operator

Neal from next with Dingmann Our comes Truist. [Operator question Instructions]

Your line open. is

Jacob Nivasch

question. Thanks on Jake is Neil. This Hi. for the for Nivasch

the I what for guess that remind a renewal? possible just year, to percent back those typically these mentioned, and Could contracts but the you to reevaluated I what I wanted of sense. us, customer to quantification duration there, that color you do you I wanted customer know you I of could the Just – get provided provide contracts. a go guess up if of contracts time are get guess

Willie Chiang

Neal, thanks for it's fluid it's or your notification contract because options. periods, Candidly each time. has whether cancellation

lot of of time, So systems by our the for contracting NGL of their get there with of just long we really we and a sales that's haul can't, substantially when or in peaks. intent, those producers matter when pipeline periods like the long is to it’s long a of on the haul purchases. time year longer lot the we've for driven a than contracts re-contracted service. There's price season But not a gathering is

about you pipelines at the the we the but that. we're we it. do willing and do on to of to lines can that function feel of where open price this I So support they to very and if have there, it don't give there's will it's to communication we'll to I the recontract time. and feel that's when But and and something It's dialogue all utilization gets we appropriate pipes add continue volume good a anything know update.

Jacob Nivasch

have you added there? you. recently Thank know a guess any hedges? you in update mentioned just I guys Sure. here. on you anything XXXX about hedged But follow-up Have guys do XXXX, quick And XX%. I

Willie Chiang

guidance liquids. The is, given talking on we answer gas about assume natural you're any XXXX. I haven't new

Jacob Nivasch

Got it.

very Okay. Thank you much.

Operator

question [Operator Our from comes Sunil Instructions] Sibal with Seaport next Global.

open. is line Your

Sunil Sibal

Good morning, Hi. everybody. Yes.

So the thanks call. the for on clarity

especially picked M&A So so negotiations to has integrated that does on model curious, in has the And with pace. was Permian. broadly recontracting? your in Plains much with success I Plains upstream how was curious, Permian regard seems I more especially like impact up that had

Willie Chiang

Jeremy?

Jeremy Goebel

nature the Take the customer, it couple and more long the in a And steps, us bigger driven to options. the the Sure, happening more large for and they're been M&A Permian. – has of the integrated a largely time Sunil.

So that's a positive.

bigger, get a that try but services of push they more on As they do rates, to balance we and add lot off.

unique that. have services it to that which But into by to some relative large, a gives premium We and the the put end, we other system, attributes in everyone's lean way. happy I us and

M&A inventory run about is largely that is been lately and producers buying thing to lower-tier lower-tier going of that it's that and buys be The way financing the with is to other benefit private inventory The the dedicated get inventory. numbers comes that system, selling immediately wasn't it, to we've equity seen. has it, growth our could drilled, been starts drill in, supporting which are

while you stability So rigs, adding private equity's the is rig their surface reducing rigs, the on it why see that's in count.

of some places So in where it's we production see seeing for before. incremental a as us weren't positive we it

Sunil Sibal

of of the Is kind on sensitivity any if correct? I that seems for gigajoule probably look C$XXX it. Thanks biggest is your price exemption segment? Got then to And NGL when of variables. that commodity so, your one And at that. price assumptions that to me the thinking price per AECO Canadian

Willie Chiang

that slides. disclosed tell fit that Sunil, on sensitivity into you What pieces we the we've good there's lot got AECO, got on – pretty a one that. of I of a would

then and Belvieu some You the the got NGL we of got markets between Mont you've And the you've differential price got barrels. AECO, serve. basis

back the have, spread an frac So on we I on of would right. of penny's just go rule million a is thumb annual $X which clean a worth about basis, to year, kind the that

Sunil Sibal

Thanks. Okay.

Operator

any any And call like back over for company the I'm the at this turn remarks. questions further time. closing to to showing I'd not

Willie Chiang

a today. joining folks. for soon. all thanks little you for bit Hopefully, you better seeing day. a great works time of We listen, new the Well to us Have look forward

Operator

that today's gentlemen, and concludes presentation. Ladies

may wonderful You and disconnect now have day. a

Plains All American Pipeline (PAA) 5 May 232023 Q1 Earnings call transcript