PAA - Earnings call transcript Q2 2024 | Plains All American Pipeline, L.P.

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Operator

Good day, and thank you for standing by. Welcome to the 2024 Second Quarter Plains All American Pipeline Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd like to hand the conference over to your first speaker today, Blake Fernandez, VP of Investor Relations. Please go ahead.

Blake Fernandez

Thank you, Marvin. to American's welcome Earnings Quarter and Call. morning, Plains Second All XXXX Good is Investor on the slide posted Today's presentation the Events at News section Relations plains.com. and under website call. will available also An audio following replay today's be provided Important disclosures regarding X. statements and on measures non-GAAP Slide financial forward-looking are of is We Slide provided X. An overview on today's call call for Willie by hosted our and CEO, balance A other materials be condensed sheet consolidating are will reference Chiang. and PAGP in the appendix. Today's Chairman team. With management I Executive Willie. other and members turn Vice call will CFO, and the our President now Swanson, Al of that, over to

Willie Chiang

and for dynamics. Good us. adjusted and team Thank everyone, of our focus market you, Blake. to the morning, base to asset execution it attributable we and $XXX to quarter ability thank second of and the you This ever-changing exceeded our expectation joining our reported million. respond PAA Today, highlights EBITDA on

year-to-date result full of by as second to range enter $X.XXX the of a and the a $X.XXX $XX contributions billion of As the raising momentum our EBITDA billion. bolt-on new guidance we XXXX we're adjusted midpoint of performance, half million M&A to year, year our

from an the XXXX Slide consideration an results quarter acquired strategy, Company back day of XXXX of updated X. Consistent XXX,XXX a impact a our below an interest have production facilitated offset growth at $XX exit second guidance efficiencies also efficient X largely X.X% equip shown count. our that Plains I million. our of weighting. additional Pipeline lower approximately increase the to of are and Rattler outlook overview with aggregate barrels high-level in with XXX,XXX Our trending slightly would on as for to A remains overall the note half Slide cash and Midstream rigs unchanged Wink-to-Webster while initial rig expectations, and

bolt-on as transaction opportunity ventures, of a us as XXXX. bolt-on and since our half far a how while overview an joint robust with Now X is set numerous provides agreements transactions. Slide partnerships great of ownership small, potential it's activity of our second example joint provide the this

time, approximately to X asset These to our our acquisitions profile. With this strong over an and we've million enhance net efficient complement transactions opportunities investment existing create growth all thresholds, that, for meet turn that incremental of returns During plans. bolt-on base, the our Al. completed aggregate I'll financial include $XXX call

Al Swanson

experienced to oil Thanks, The crude spreads Willie. spec favorable crude ISO $XXX both million. net We NGL product of reflects opportunities our NGL CX+ lower-than-expected of with EBITDA benefited segments, tariff Across second from to the normal market-based operating This PAA reported on frac butane volumes spreads expenses. our higher segment. and sales. segment adjusted quarter unhedged our higher several benefit of along in oil and we

in efficient updated we and adjusted allocated be walks that details diligent Some A year, of expect performance. of half in on managing our $X.XX second XX. Shifting to of the operations. Slides common XXXX in quarter the with generate this acquisitions Slide cash assets but Slide preferred free allocation, for $X.XX XX approximately and X, second distributions. on provide & and today's XXXX, billion on guidance summary costs in remain and excluding billion million to approximately including of we X capital illustrated running of to reverse flow, will as is appendix contain $XXX to bolt-on liabilities changes our

capital our maintenance capital continue to growth self-fund program of PAA. $XXX $XXX of also million with million net will to We capital and

that, the notes Willie. the XXXX maturing unsecured issued million November. With of in $XXX to cash $XXX a in use I'll the of due note proceeds in Finally, X.X% rate and will at repay June, call we senior note turn we million back to

Willie Chiang

our company. on initiatives. throughout in confident of today's containment are the and another continue efforts cost reflect strategy our in efficiency Al, strong execution, remain delivering our we disciplined We're resulting and results ability goals our and progressing bolt-on quarter Thanks, to

expect Over flow towards the the stable reliability, we segment. and positioned for energy -- more and and long-haul energy the in to profile a underpinned coming contract Permian foreseeable cash by more as years, American critical durable business our fee-based future. remains supply flow will a shift resilient NGL North continue Plains extensions affordability well in to cash security be be

free on Our to cash continued of performance Blake, to the while Q&A. updates reaffirm our look providing lead forward financial who earnings interest our maintaining plans, increasing November. With cash return generating to discipline, strategy support continues we strong I'll in to us equity will and conference capital flow our further that, appreciate turn and operational and in unitholders of over flow and flexibility. We your call into meaningful

Blake Fernandez

you, Willie. Thank

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

possible have. return additional This many with questions IR in morning. The time call those available please us For also may available call any Marvin, will address queue. be the questions. to questions team questions, please to open as the additional after from as free feel our will to to you the this participants allow address for

Operator

first Instructions] the of Tristan line Scotiabank. Our comes of Richardson from [Operator question

Tristan Richardson

seeing a; you exit pretty b, is XXXX kind earnings you you Maybe producer seeing expected that guide -- gains source better of greater trending if And from just key how that the beginning and guess the the Curious then crude segment? change of as into see XXXX. the we've of this the crude the of mean, of the of efficiencies into segment I as sustainable season 'XX. of than efficiency look question, heard appear noted really, gains come customers these Kind outlook up for on sort to And and look the sort I you're efficiencies. efficiency in then there. driver your curious producers you seeing move the are

Jeremy Goebel

The Jeremy. is part was NGL crude. this change Park guidance Tristan, overall

been production less with growth, as it's infrastructure underperformance been barrel able some see the Delaware as has the Within growth into completions and in far deferral guidance of maintained driven there are the next production lower outperformance but those the expectations, do we the of We've a with XXX,XXX day crude beginning segment, captures in to Canada in XXX,XXX more. Midland, to gas line the producer opportunistic in little year. constraints but by little of natural a and prices, bit a the U.S.

producer on So cycle capital for our less we healthier connections, side recoveries, think us a more and business is lower efficient chasing term, good long efficient increasing their ours. times,

It's sole positive. directionally it's a increase guidance, say the trend I'd but positive the source for in not for us. is So

Tristan Richardson

and a term? base year, we in then I'm the of variability of becomes the maybe high of the should at about on is sort NGL And just segment business less I NGL curious once sort especially for have follow-up earnings appreciate level, level maybe become we segment. as more fee-based. Presumably, longer mix, think then next how a more fee-based Jeremy. NGL as the it, the And business where

Jeremy Goebel

What gathering, guidance million Tristan, spread Jeremy of NGL fractionation, contracts, on $XXX would to this into storage, XX-plus entered which business we're But with We're the is is replace has say to segment. again. $XXX million year frac to that give our investing replaced X/X transportation. we've I exposure. forward not going roughly

This bolting like just have. piece. an going to bolstering that already and it's on which look integrated value is So we chain NGL

XX-XX. So less we'll from XX-XX roughly spread move frac exposed than to

we'll we well. like do is to predictable chain, that longer the say and lean this but a business term, more definitely continue business, I'd straddle So into as

Willie Chiang

And Tristan, is Willie. this

more Fort very everything we're fee-based to all but starts by into see I think Just But little that. to point doing that will over there been flatten trying doing, seasonal. out, to us historically But opportunities. our fee-based seasonal it's the play you -- to out, always expanding as going reinforce will also, market's that seasonal. going the facilities be a flatten pointed sale Jeremy always It be saddle to Saskatchewan, more what

Operator

line next of comes Michael of Our Fargo. from question Blum the Wells

Michael Blum

last EBITDA. on that ask your 'XX you said with in I EBITDA be segment believe to to wanted -- roughly your crude flat the expected in XXXX you I call,

guidance that's 'XX statement a true wondering increase given good still in the Just if EBITDA here.

Willie Chiang

take this Michael, that one. is Willie. Yes, I'll

changed. perspective Our hasn't

was about this performance XXXX, perspective, as call, versus year last we the I talked same on and not So just about time the that a reason we to off want think that in you don't with of highlight, 'XX. contracts, our renegotiations thinking falling cliff framework sure gave the guidance, and make expect people of these kind understood formal what we're but to

come is change the of as out things and guidance again 'XX, no business the formal We're perspective always to to more coming answer crude short segment. later. a will no guidance on outlined 'XX far as we on bolster try our crude there So lot working as to

Michael Blum

Okay. growth. then Got it. production the Permian just discussion on continuing And

the of out a Permian next this your just how Just could see could perspective you again. you the think years, do takeaway over want next? get scenario over get and And balance year things to paid few where crude see playing you

Jeremy Goebel

there's mostly just X more you to as going is But to Michael, Jeremy. gas as we you're growth. on, yesterday. come this another said, gas the quarter without announced Midland completions basin. ability Mexico fourth see some prices we relief, the But that production like get In pipelines infrastructure near the in add lower in constraints water led and being or New term, see more

for next that hit had contracting XXX,XXX So sell as tighter, the year, is directionally it the lumpy get we've barrels a just be to differentials But we've to the it to will others time with. looking will away that discussions naturally, industry infrastructure increase XXX,XXX but having as and don't reflect as constraints. are from reflect year we Midland to a a basin little that X see progresses. are, more continuing we stayed And day

the had shippers So our and and completed. again line we just with business it's in we is contract the with directionally and our happening positive everything for discussions

Operator

of JPMorgan line the Tonet from of comes question next Our Jeremy Securities.

Jeremy Tonet

the going little here? feeling wanted I more How you do for see you to trying get set what a guess, M&A set Just of kind opportunity Just much see there. bolt-ons opportunity on to there? up, pick depth to forward

Willie Chiang

question, the Jeremy. Thanks for Yes.

if we've us. asset You've that us the integrated about capture it I reason niche able think you just really, it, and positioned about to the be the to showed frankly, to where heard we're the synergies. and in quite efficient a of base, think, been our slide and sits for And is in the show we nature talk done bolt-ons it's number uniquely deck growth

bite-sized, the to more And processes formal add of solutions. we cash but flow. do aren't our lot can partners on a great but are a the great do are make of meaningful we've free use it's we come them. discussions and -- bolt-ons. They -- returns and think when are it's a in demonstrated So you that how And these to we that that they that, see certainly up, difference with them out, win-win our these get

we'll So to try develop continue advance and to those.

whether meantime, the environment It's environment tight, different be -- is deep about unitholders think constraints bring many kind the we're open. And able midstream, a different you of there, see what have and where be synergies. and fruition, consider at as if bring that, desires. industry efficiencies them the discussions. question the just sense be little capital very those, to think with have certainly I of stay opportunity to can is think you would partners we'll to the bit set And target-rich and we'll and M&A how have I makes further, start downstream, growing sufficient a opportunity you plug we And across we've line. on just across the continue it that the And deep asking and views if something were to going on is capital consolidation to to maybe more then going But take growth broader because just open we to look if it the more there pretty and upstream, can you be disciplined. X is about more in like in step sets, been that. bolt-ons, through we to a think away we we expensive just it and to

Jeremy Tonet

customer point. -- with bit of could now? you it. if Do conversations wondering conversation? a bit and That's that on at stands egress right think very tightening different more Or a see just supply/demand how you kind Got further helpful the that a little going just this Permian there. provide wondering tone maybe just kind to then brings And they color of

Jeremy Goebel

capacity, But the specific pipes constructive significant want barrels gave I going shippers we don't where see our update recontracted of marketing exposure there's that patient. dialogue. or we're with say clear constructive to certain Obviously, retain we've quarter, third-party of side. interest very dialogue. to available to we'll but to be last we affiliate we're constructive our on -- we and a certainly are our us speak because amount Those value to want with a that having would need larger having see there's and pipes. had dialogue, we're customers, we I

Willie Chiang

last Willie. of what is And our talked A there strategy into extension on other I things this -- going playing happen. couple time our the Jeremy, long-haul is think to is this of that. we about contracts. The think we really really

between about was a it 'XX was tightening the the at were 'XX. If constrained, capacity. the were in is spare space open lot margins there out, Coast XX, this and pan time the I And tight out XX, you on and think XXXX, we will well. strategy pretty And as would think we've the was it always of Midland strategy XX built. you the spreads think XX to -- range, some I capacity the And ability that were there that well a long-haul start markets point well capture as expect some market last extensions fit wide, and then Gulf retaining on to the back laid

Operator

question Our of line from UBS. of comes Manav the Gupta next

Manav Gupta

focus bit the little expenses, on a lower Congrats lower just wanted I cost. guys. operating to

mention beat. part the it of did You was

understand on to and XXXX second overall to of the part what of as relates it lowering sticky, benefit and it in go what you actually is trying cost. So can expenses half XXXX and

Chris Chandler

that the in lower our ability successfully This is some half the defer spend some of I Chris into first will half. to Chandler. the were second note costs

half prices half always be deferrals. we're, sticky. volumes varies looking optimize of to utility and costs. as won't that But optimize was to operating of some our course, But first and certainly necessarily we'll to It forward. vary that going look vary second So that

Manav Gupta

commentary And cost the lower the quick redeeming could of future on capital? that any possibility your preferred of like in

Al Swanson

where we change recognize reconsider in time. there Al. at that as do be in future we we'll is But articulated, a that. No point thinking may This this our have the

medium now, reevaluate we will So near term that. to longer term,

Operator

next of Keith comes from the Our question Wolfe line Research. Stanley

Keith Stanley

clocked think I minutes. remarks prepared your X I at

for so new on a to allocation. first congrats record ask that's you that. So guys, Wanted on capital

in really year think we per Or raising happened, still another about that's Is QX on distribution In assume that you've size. having larger past been target? expectations. good above I would open when the or You're $X.XX as should unit that the be the potentially sooner again? something table the

Willie Chiang

question. this is Yes, Keith, Willie. Thanks the for

your year. reviews we the think our back annual pretty annual answer increase we to an get unitholders We've strategies. in it's want done unitholders. we I our will and consider absolutely And if We've that distribution. forward, the to But to sustainable increases. our out to at steadfast more returns stated allocation it's laying can. of going to do and on we $X.XX of part have we've early every on look our focus cash question absolutely again, are $X.XX, directly, discussions, your as capital question If we that answer been able demonstrated, we've will we to continue we capital EBITDA to

Keith Stanley

Great.

tying thoughts Permian, with there would for the you're early you producer to given consolidation. seeing XXXX volumes just give trajectory on and back efficiencies, on the any just Second what

I think relief on. Jeremy comes Matterhorn to when alluded

Just any thoughts year? for directionally next just

Willie Chiang

the world. Permian for Keith, give Willie a We're play will belief you again. for haven't -- some guidance, We this is And key thoughts. long-term is term. general our basin long not that I'll the but given be the we

of XXX growth Our to XXX.

closer will we've will I the some that we lumpiness in that being it constraints. the kind the we that the and of technology past. pretty to said, responsibly. is had than in There think be be some be are incredible side the in the develop that directionally growth There Permian we've consolidations numbers of expect E&P more [indiscernible] to synergies bullish the of with able growth but on the in profile, more to

more or and responsibly. -- not So efficiently, efficiently more

Operator

the next comes Citi. from Our Spiro question of line of Dounis

Spiro Dounis

I wanted egress quickly. to Permian just back go to

out for help can't on a think open commercial that to more that just and the you XXXX point? you think to XX% plus of of we sense how But what respect at your us opened if kind sensitize much impact. pipeline contract maybe what's more us maybe capacity give So than to certainly a say kind coming, book appetite could reasons. the And here have is about as contract

Jeremy Goebel

This is Jeremy.

that have We but well, But some some intend interest. XX% amount and say nonoperated and I Basin to. capacity. Cactus haven't don't a there's we're would provided small II a does Cactus and X BridgeTex some uncontracted that as on has

So you to some that then I to to dock we Cactus there's some fill as space our and other might available largely are cushing contracted we've want there's space II X and do, and some of talk retained to But things there. well.

Spiro Dounis

Got it.

Okay.

volume a just I on quickly bit. stepped noticed like a stepped intra-basin maybe down one, Second up that Permian that's but gathering looks bit, guidance. the the

And you the [indiscernible] on. what's through us so sorry can if Maybe I missed. going Of just walk

Jeremy Goebel

is the associated hit This Jeremy Are It's full. Colorado [indiscernible] pipeline carriers to other Sure. all that with City space towards connecting transportation have to again. largely

So this Colorado from growth out is hitting the either of Mid-Con just getting and to the production additional basin markets. Houston City or barrels

And see have some the Mid-Continent, place. barrels TMX, barrels the some the there that's to are take of reflective that heavy its other you leave

come you're basin flows Wink-to-Webster we've since extended Beaumont, across into and BridgeTex. some seen impact some into seeing That So -- on more can Houston.

on just it's So and dynamics as defines new new pipeline a production markets. goes

Operator

from of of America. Our the of Bank Mitra next Neel comes question line

Indraneel Mitra

quarter? Have more at close in out of It top to 'XX to your fee looks adding has a that Canada peaked $X.XX last frac you fixed and like contracts gallon. on looking you talked spread stability hedging the in up 'XX about that started

Jeremy Goebel

is Jeremy. this Neel,

to looking and we're current forward, on a year. the forward looking try and continuous a year from rolling have Absolutely, basis and We program. we hedging have at a program of

at see provide and opportunistic and we're going guidance positions on trading to around putting around we're point, So but this well. market not hedges those we as signals,

something at now, look we provide steeply to continue forward not backwardated. to an It's the update but attention we pay So frac spread we it. absolutely it's

liquidity so we definitely something fewer forward monitor on opportunities it's And fewer are in. the are a is basis, but and active and

Willie Chiang

to And move for it the it And as Neil, year. difficult. out, as the know, we more to typically ability you give liquidity of beginning you seems -- the further hedge guidance closer probably the

that. to more come on So

Indraneel Mitra

heavier with seen being Okay. Waha of Perfect. with to gas we've this. We've And talk the and the quarter in into then seen wells. growth the second versus if in about have unchanged. have turn-in-line Permian about if you've maybe projections some And initial early weighted any -- Matriform is is cut of or some what Or wells have you been QX, back shut delayed on Do on maybe Could now QX? different Jeremy half expectations you back talked are if delayed your on prices growth. the QX that negative

Jeremy Goebel

Neel, we still and range day I of think that a range. date. So move we're the have barrels XXX,XXX growth XXX,XXX seen within to in to But

we strong Weather growth. continue like But for as very anything. to was year, see not see flattened didn't we not has last QX this been. it year which it's had out period. a as So hot been

declines even this maybe during seen time of you year. year actually saw didn't growth last where in you've So Last time. of period summer this the

the but positive directionally, delayed are in that's it's New that maybe Mexico completions and it's and been quarter. not more places impacted, So really some consistent

quarter outperformed. be I next into first could Midland, of has But said that earlier, year. So the like

line guidance are. still our say I expectations. some forward expectations would has moved. completions But what with our in of Timing I captures So think

Operator

from comes O'Donnell next Our line TPH. AJ question of of the

Andrew John O'Donnell

go to wanted forward some the to of curves. comments back around the just I

be mentioned accurately you're in some those You pricing year that the that might not of next having. conversations curve

Houston rate? on in more out curious differentials and thing? winding of you Just transport like that average that gross between Midland And is beyond is a 'XX Or see the if 'XX? later

Jeremy Goebel

MEH number. not we doesn't it's guidance something if look, on-the-water give reflect that Certainly forward on. an you But something

coast the to $X.XX $X.XX prices and to are to the So the that. higher prices realized than water the

the disconnect. X-year a there's So you're prompt a when then there over rate. looking blended from time. It's the rate into a period, contracting, over there, total you have so get to just you long-term start And impact doesn't from

the what guess a Houston then show that I it's market-driven, to does say premium water would in higher, Houston. to Corpus is So you versus is and have Corpus number, both And First I XXXX in and Newerland. get lower but

But plus, XXXX think near us are term, filling constructive So those it's the more nuanced and between and are the in pipes than I dialogues customers. that.

Willie Chiang

not a pricing good we've different -- start future how said, protect just we've prices. price. spare forward is the able running signals But predictors and to Jeremy you as I usually A.J., of future to when all behaviors. experienced think the be change curves methodology It's hedge out of capacity, are

capacity to I tightens, expect as wider spare that would see So we'll start opportunities.

Andrew John O'Donnell

X the just last Maybe business. Okay. X on NGL

comments to back butane. about wider some spreads going between normal Just and

Has forward, curious about always it how a be that? that and hasn't, there. And are opportunity facility that if will running? going up Just treating I Or been the you mean decision? quarter-to-quarter

Jeremy Goebel

Sure, AJ.

the But operate. multiple future I'd historical spreads and wider does, biggest have the outlook we'll in while don't we'll and QX, remainder periods, in it in it The facilities. impact year of on the was for impact turn in QX in if we time. forecast modest it say runs One it. than more One the got our QX blew We've We out all norms. is opportunistic.

we're it. it's So view it's as opportunistic. more just -- And as there, I that would when cashing

Operator

question next Seaboard from comes the line Sunil Sibal of Global. of Our

Sunil Sibal

barrels basin. changes expected years similar should seems per in about competitors that of bit kind has like expect X%. the X% growth seems day trajectory or it of little we should the in for of system? been Permian. Say, should in How base that we from a system? be kind realignment in of there and there of the So of it Permian XXX,XXX So terms XXX,XXX in operating are to forward context like production cash Plains assumptions volumes a some to flows think your

understand little to wanted a So I that just bit.

Jeremy Goebel

the basin's that we're a for good say growth. overall I'd proxy

[indiscernible] of a assessment fair I think that's

Sunil Sibal

cash enough. tracking 'XX? higher It fairly timing Fair about remainder Is are for the there for me. that think Or X any issues your seems year. versus And last like should then there? how Okay. we taxes housekeeping of

Al Swanson

part Yes, amount business. taxes been. of in from it. money we The in they follow repatriated Part income-based, it coming increase it's of guidance. Part of that our XXXX, like Also, back higher, significant Canadian of small had We level and that in tax some as to off come XXXX on see estimates depreciation XXXX. higher taxes in withholding in as well a and our just of would expect that. this in refinements this to is a as back have

Operator

question Neal comes line from True next Securities. Our the of Dingmann of

Neal Dingmann

My first M&A. is on question

Specifically, are strategic in inclined for more there. I'm wondering packages all? market grow available sense And would just any given the just I'm wondering, capacity to that there to are out you make organically? for continue you your

Jeremy Goebel

thank add something or about we through talk multiple operate. something M&A be I be for don't it's to question. disciplined, processes talk we about to to think compress really synergies active can after it's it's you the and where our Unfortunately, over. changes can't value and But significant our got -- we Neil, approach and it ability

So regardless can, buy size, it. broader just to additive others. that's we And can something business and be extract our we competitive to if it's we and be got of won't more than synergies

Neal Dingmann

you majority to Very strip you to is Or that on helpful. out the take secondly, sales hedged cause plan hedging, exposure? of given forward? a more bit just And then do the you CX+ continue having seeing there going a scenario typically, there, where you're

Jeremy Goebel

time not year leave of end when certain you This sell a towards the We of NGLs a that. look there's lot of Jeremy. is we're do

of the this So the we've vast barrels comes season. next up beginning our got placed selling the of next contracts year, on year, And you're through firm majority when for then year. it

I what sure there's incremental the I storage have sell, we we to in time downstream is very sell, but -- with. sitting produced We're production in making So rigorous lock not think it's economics spreads, we're when and associated the lock we our [indiscernible] to when with exposure. in tell you would that

Operator

Mackay of the comes Our Goldman. next John question line from of

John Mackay

second kind at of of look guide crude to versus wanted oil for performance just quarter the the implied I year. the back

of allowances if these in half quarter in maybe the about efficiencies? step-up more quarter versus loss versus some getting benefit movement on or curious the quarter the kind look here potentially. caught this what OpEx implies fourth of Because pipeline guidance, maybe of flat the or we can from kind kind little Just you back a we're marketing of unpack the you from talking of if terms it of Permian the at year second in

So just trying to that unpack kind cadence. of

Jeremy Goebel

Sure.

think Chris second on to have operating we second I of in utilities and movements Al in doesn't half. repeat the that some spoke pipes T&D the for both expenses, where quarter the lower

positions had So that part year storage second of We we say the going it. taken see off part quarter. those locked that in second some I'd the is there economics in the those earlier are in other of forward. won't it quarter in the and have

the it's the should of you that Well, part repeat. operating expense. trading the part tell pieces -- So and outperformance rest I'd

John Mackay

of give story clear rate just a run out I EBITDA And of of you've quick just of appreciate marketing just outside the the and X see I over me. some could off kind you the quarter-to-quarter. generation the move us the footprint? if Permian that. for maybe crude volumes just a is But maybe given side. couple accounting the that of on the on in pretty we Permian And laid know years of last update should lot volumes that maybe elsewhere kind a in side. that X around next how trend

Jeremy Goebel

a facilities remain then in see that's so continues we we of good say would to Uinta, What been growth full. that the couple pipes be production a Rockies -- and the expect today, from our rail I that and is both Rockies, to Sure. into outperformance our that surprise. continue And goes

continue happy Our and customers see along those opportunities. pipes, are to we

the integrated outperformance line in Cushing, into The and say like Canada with rest source of Rockies system I'd expectations. assets pipes the So railway performed that been a have to. in we that's cross-border has gathering the rainbow, plus went

Operator

Theresa line question Barclays. Chen the next comes from Our of of

Theresa Chen

in in getting to your uplift domestically quantify just is the inland from water can more results advantage ISO across ISO alkylation general. thinking is be selling the export, octane this you this or just seasonal ISO about i.e., agnostic repeatability for global it the butane of of Or able inland you of shortage for this the you your uplift the normal Would related take quarter? demand? And seasonality? to of driving feedstock to Or

Jeremy Goebel

Theresa. Sure, $XX we probably find in range the then And And shorts. million QX roughly the million I it domestic $X in range. put roughly. QX

Canada, in footprint rail and able specific big market. pretty have We we're any hit to

markets to actually access specific short. are have we that unique So

optimize, And blows our straddles, do do with in sales the the thing up, sales our from to able CX we so ISO. CX we were that's thing same we when it with same

Willie Chiang

Theresa, this is Willie.

the about, I as As that wouldn't we you structural ISO that just think don't a I characterize example change. about normal talked

look a opportunities, I And large be now always system the tighter. we're opportunities there's You have, think going little capture. what we is seeing becomes market that as can at to infrastructure we

spare Some more lots of it of We difficult of went those lots to where and those was because are markets there's coming infrastructure. capacity to very capture a fruition. through period

are a to I understand able there, capture system your reinforce we're but It's that So big. them. opportunities got would And our I I question, of optionality. would if lot there -- to also is out wanted

Spiro Dounis

as I the more demand ISO and meant structural for alkylation for demand. octane for Understood. that feedstock

moved points the much about how think quantification to quarter and third fourth or maybe turning over. into So cost quarter, should cost that any deferred we of of commentary

Chris Chandler

it's Chandler. is answer. Chris short No Theresa, the

from expectations look quantify to discipline just As sustainable cost footprint, there's look versus deferred we a I around our to amount volumes availability, reinforce might savings. second defer continued weather, and commitment at is won't we'll supplier costs cost would continue including And to things of cost continue opportunities all the optimizing customers, half for and our efficiency, that the factors to do years. you from on imagine take systems, that. following we number into a we'll cost the

Blake Fernandez

Blake. our obviously, contemplated Theresa, would this I So. is forward guidance, that add, into we've just

Operator

back I this now to to no showing like further Plains for would I'm at it questions time. remarks. closing turn

Willie Chiang

thanks seeing for your the soon to forward a We of road. listen, all Well, great you day. look Have questions. on

Operator

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

disconnect. now may You

Plains All American Pipeline (PAA) 2 Aug 242024 Q2 Earnings call transcript