Plains All American Pipeline (PAA) 7 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Blake Fernandez	executive
Willie Chiang	executive
Al Swanson	executive
Keith Stanley	analyst
Manav Gupta	analyst
Jeremy Goebel	executive
Michael Blum	analyst
Jeremy Tonet	analyst
Brandon Bingham	analyst
Chris Chandler	executive
Spiro Dounis	analyst
Sunil Sibal	analyst
Jean Ann Salisbury	analyst
Andrew John O'Donnell	analyst
Neal Dingmann	analyst
John Mackay	analyst
Theresa Chen	analyst
Wilfred Chiang	executive

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the PAA and PAGP Fourth Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your speaker today, Blake Fernandez. Please go ahead.

Blake Fernandez

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

Willie Chiang

Good Thank for and us. morning, you thank everyone, you, Blake. joining

results an XXXX, then and our Let on with update me start outlook I'll and our a provide recent about few announcements. our on comments

EBITDA start high X%. quarter the year, the quarter strong our results and Let's for approximately expectations the with initial just $XXX full billion, by of guidance year respectively, or of execution adjusted to $XXX We another XXXX full for results. exceeding exceeded our million our and and fourth attributable guidance above with million the range $X.XX end Plains of demonstrated we reporting

our Slide range. Looking billion, $X.X of adjusted billion at XXXX, or year-over-year X, to approximately as to guidance highlighted EBITDA and midpoint on the $X.XX provided we guidance of X% growth

full expect volumes and the efficient grow towards very the XXX,XXX high on XXXX. to market increased to end a a believe on shown Wink-to-Webster. end utilization NBC by we utilization barrels capacity. In a long-haul our XXXX, to assets 'XX, Permian growing on basin next volumes regard Slide continued crude for bound basin as As sets XXX,XXX Christi assets, overall modest up several We years million approximately over volumes increase X, grow Permian we here our of on Corpus haul of for operating barrels long a this to to with constructive in production day day our pipeline X.X 'XX year expect

Permian consistent our JV X.X from to embedded Our activity on acres. million synergies dedicated the and continues over benefit gathering operational producer

Permian significant well flow get to cash externally, for to generate tends and outside less but it excess perform Plains. continues Our business attention

this selectively acquired including past Pipeline bolt-on over complementary the have and We Ironwood assets we the additional along continue and of explore gathering footprint acquired years, to couple opportunities. system, and Midway develop recently

Before turning on provide on the want call and to our update over results, detail an more announcements. recent Al I to for guidance our

We've expands Energy X. which of on asset extends Midstream the base Eagle XX, completed acquisition Turning the Ironwood Ford. to January and Slide our integrated in

gathering on returns exemplify crude as on operations, we expanding seen our Slide These streamlining X, Basin XX% Pipeline, acquired attractive acquired while interest a the generating subsidiary strategy, venture asset is Plains the Medallion integrated in all announced, Delaware of previously growth efficient our As Midway joint unitholders. Permian base, and remaining transactions for which and business. focused

par purchase Additionally, but units of to value continued outstanding structure. of preferred our our optimize of approximately our A million January also closed at capital XX% and base, or we asset reflective Series the units only XX, on our is $XX.XX which of not XX.X effort

Class of representing increase a per $X.XX we yield per November from represents approximately distribution unit, unit XX% both distribution basis, PAA on paid accelerated framework bringing for increase of a annualized PAA. units an the shares. we announced distribution $X.XX XX the current in based common February price capital and A payable Lastly, return a PAGP the the X.X% annual the equity distribution XXXX, on On in for quarterly to and the

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

Al Swanson

and reported includes Willie. crude from volumes segment oil which pipeline higher million, Thanks, $XXX benefits We EBITDA of adjusted tariff fourth quarter escalation.

flows our order key contains leading quarter details we XXXX higher-than-expected XX. Slides on segment back NGL are EBITDA well provide performance. well today's X segment in CX+ assumptions guidance to Slide presentation which product of from XXXX. A [ as fourth we enter positioned and walks, are summary increased XXXX and Our sales. All X ] benefited all, on in executed in and

long-haul billion primarily illustrated stepped Growth at of and certain year-over-year Looking XXXX in segment tariff and billion bolt-on lower driven expect is from results, the discussed volume and acquisitions, NGL tariffs reset to EBITDA compared XXXX. guidance XXXX on of with the the we our crude escalation, adjusted previously pipeline our by oil contributions in Slide in segment growth offsetting contributions. as that down tailwinds on crude oil EBITDA growth walk half contract by XX, partially $X.XX of slightly segment $X.X these to second

Fort growth While disciplined acquisitions the This $XXX million capital of approximately to would related in XX% note project. invest on capital the that improvements, I intra-basin our remain growth capital NGL low POP includes [ capital for ] and of hedged is debottleneck and year million is segment lower XXXX per expected expect the our of sales XX% [ to be adjusted PAA. recently approximately investments approximately fee-based Saskatchewan to net for maintenance ] $X.XX spec JV gallon and volumes business slightly integration level. We and are EBITDA $XXX connections product the ] our to well completed [ approximately focused capital in to shifting in XXXX. making year-over-year, CX+ our

returns capital we maintaining significant flexibility. and illustrated addition XX, in to Slide As discipline, committed to remain financial of capital on

transactions which assets excluding For the expect in XXXX, cash billion of previously and announced changes January. to we that million $X.XX in by approximately bolt-on closed generate for flow, $XXX liabilities, is reduced free adjusted

at Proceeds raised fund a we billion of senior transactions. X.XX% in our rate to notes announced recently unsecured Regarding $X recently sheet, the used balance XXXX. of maturing were

senior profile, billion which to the our a October note during have $X would Regarding or expect refinance in maturity of we XXXX, maturing we all portion year.

results. wanted I impacted to to Willie, back X provide call GAAP the detail fourth turn charges that quarter on I Before our

$XXX for to future as therefore, carriers of insurance terminal we million related our claims write less $XXX U.S. and they and adjusted of impairment being claim of XXX reimbursement to entitled results claim off respect those of our million regard X of are NGL against the relating are that we if Line different million several a carriers, entire $XX our $XXX noncash to collection probable XXXX XXXX collections receivable million not These recognize from any we include as XXXX regarding million that assets. action ruled arose remaining than GAAP, requires class an received. and excluded incident, that the insurance out reimbursement $XXX are insurers. With against now Our our our arbitration settlement to from Separately, panel results. a claim

of While disappointing, in our or target X.XX Willie. we below to X.XXx low leverage call the at still that, expect end ratio XXXX. With to I'll turn of to operate back the

Willie Chiang

remain execution was deliver enter momentum and Thank in solid to continuing play unitholders. as well we confident year of with another for XXXX value strong to operational our to offense Plains, XXXX you, Al. we and are positioned

in As we've Slide on investment summary, on we our significant financial and positioned flexibility. balance and first, we've capacity our provides be show XX, financial sheet the strength made to In progress ourselves choice. meaningful objectives,

to supports American today's for domestic fortunate. well hydrocarbons. we capital one framework and energy less our including the that, back a believe capital of those increase across to energy finally, announcement, as the connect acquisitions. financial recent into of and America. With support to discipline and initiatives we're to inorganically capital maintain and ability multiyear accretive with positioned with distribution also through organically and is quality growth will all living energy administration growth supply turn demand remain North and synergistic both to demonstrated choice our the consumer while North our who business are I'll And call standards level security playing energy will on a centers demonstrate Q&A. to over We to new continue help optimistic lead a preserving world return to that us infrastructure need continue broader field and of to to still energy through Plains we independence increasing Blake, elevate the unitholders growing very execute efficient sources that on Secondly, flexibility. From critical our focused including perspective, values about allocation that bolt-on

Blake Fernandez

Thanks, Willie.

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

please many questions we're free as those to to additional will our as go to also address feel to ready Q&A may session. return questions, I For the allow believe time practical have. Tonia, address us with this be to to in any available IR queue. you will team This questions the available The morning.

Operator

from Research. of Our Stanley Instructions] Keith question first will [Operator come Wolfe

Keith Stanley

then And opportunities a it you to of long To on how give these working little there's came currently other start, a can maybe give meaningful this year. it likely if January be tuck-ins a on if on background or process was that pretty some execute you'll together sense or on came quickly. together in are you're think able you

Willie Chiang

Thanks, XXXX obviously, these Keith. a This deals of lot momentum. Willie. overnight. We And with don't is happen entered

together. were So there constantly we you but looking a team, same a execute timing. as and things, all with for had able was number can't know, our on opportunities, for that to the these -- work it. organization, you our the At as pick can't is lot of we came time, of We of these

really And that strong in -- the just be think come pleased that were in to we've So reinforces it from moved offense. defense to was comment we to year. able the I

activity, As And infrastructure more think that. integrated are think pretty about more we're and asset there Plains' been our opportunities. base, when as you an far we've company. footprint public We about

go into growth's strategic a the that and not opens us number So have we're to to these opportunities one is these that synergies, we on have forward, and for up growing to through a system. through opportunities in process, so go these. of synergies. the bolt for we our lot system we're capital more supply as need A of and create for and discipline common to for getting connect opportunities And pull we some all options of lens of to The demand. of thing ability nurturing entire of our sake and to we that lot talk people

So of bring to to most come. only the you But unitholders. we're I to again, going can projects for it's to that going expect think more us importantly, the give hard return forward timing. good predict these a And be

Keith Stanley

for tariffs gears wanted shift walk That's could and you on of potential on Plains? second if we great. play NGL crude got ask the out eventually do that the Canada, pause both for how X-month here. I impacts the But question. We through your to and of for some tariffs. business If can could dynamics I get

Willie Chiang

hour we I only Keith, call. for think have an this Well,

for working been So for what pretty guidance at could scenarios jumping I they time all, tariffs think the a you come guidance of it's call come it spending us. The we've been and literally ready that our and as range range. is, might might to everyone take be out it. on months effect, scenario to or on maybe of system. come far -- we've tried impact, outcomes through play to going if if number they for encompass general. our just think guidance that it's they tariffs the until I'll probable it's the on to when best There this as for these within of are the easily out that try scenario a short you it our should know going what at what be proactively. of look we've happen as what there's to on conclusions million be. lot the out. what may And could the keep in planning comes, as knows, But the may we of answer And range, exercise it, again, And be really But mitigate know might that we're a planning they

Operator

coming will from Gupta UBS. Our next Manav be of question

Manav Gupta

that you in much XXXX supportive. versus what at towards did initial XXXX guide, of the over came, the and number trying I'm understand, is look end you provided XXXX? just When it stronger. as you if drive upper could When it the possibly you guide to macro was And where guide the again,

Willie Chiang

is is macro we and look at maybe growth XXXX, this factor for Willie. talked throw that administration. Manav, in. Well, the I'll others I a can about big I price. us start, on think jump it's volume and oil views When to Clearly, the important

growth been consistent. forward activity of the rigs certainly out drive some productive. rigs, go have It's a the able with been a But going XXX,XXX we lower would and volumes. activity been and listen in They've activities. on. more day there's of completion lot to more completion And produce producers to It's as for volumes there, of also that's So you our calls XXX,XXX more barrel Permian. of higher to the guidance some we

the were on XXXX, and I I into take factors the some if So I over see. under or take to momentum, are over would key the of those

Manav Gupta

quick My Ironwood. footprint, western follow-up you Perfect. your bolsters in highlighting East. of also on footprint you're the Like giving it the a little here is bit the but that fact opportunity into it's extending

strategy of that maybe to bolt-on. further more you a your we could you -- that now add to given So got think east bolt-on, deals enhance can Midstream hold this footprint have this Ironwood do

Jeremy Goebel

create and number Mona, capital our footprint western in the to question. The a of had a overlay is for extending Eagle synergies and we there. think the chain assets about is Jeremy. existing Ford, strong value Thank between way this of you Ironwood it system easiest our [ ]

On an to run by it equity company. business a run us. private the is new it broader was full it footprint into asset-based a side, and trying We're we area do. for east integrated a basically like midstream like our It integrate

[ allow it integrating, under getting time, our happened foot ] be integrated. in what more to guide year's over those getting to is -- investments So place about this and that

with I through and by we've over see, think proven additional opportunities to that you'd driving the footprint. just businesses time compress ability like acquisitions, other the multiple

Manav Gupta

strategy Congratulations, is Thank Perfect. our going really think defense I to offense you. working. of from

Willie Chiang

Manav. Thanks,

Operator

Our next will coming be Fargo. of Blum from Michael question Wells

Michael Blum

EBITDA will previously Cactus XXXX that guided recontracting. wanted flat from offset I [ projects to So ask, growth to ] XXXX you a

Here, a little 'XX. in up you're bit

expect we considering here over wanted just that gradually of to do is from a next going are EBITDA years? to should get Or the sense now So there other you out? increase and of couple on be takes puts

Willie Chiang

again 'XX rates, I'll the I why back contracts contracts which this about to guidance. we These Michael, market give really on 'XX that flat from rolling we're expected. had Thanks get the long-term context good off to not it question. on crude guide were people very sector back a here. Willie, again we wanted away want talked for the taking to segment. as rolled -- business We of And talked had off. point to you that 'XX to in we a the We point time purpose crude on 'XX it. And that why of that outlook we about was realize the was clip at flat in that's time coming. was the there the then.

Now 'XX our as to our business we clearly, to build continue and over going is grow, expectations would 'XX. that be be

just announced -- adds the with that the offense, with base business. tranche we to as the so deals as we playing think about And far even as just first obviously this

to tell of business. ask We've next say, 'XX, the 'XX to likely into our time, to in base this is embarked bolt-ons footprint that would and strategy going and able question you'll I growth streamlining going We've higher would would integration able got So ongoing this grow would I are of whole add at be be we've than XXXX. The synergies. that efficient might be it. continue any growth. efforts is that with do And upon. going to point what's we to lot to beyond And you, a trajectory just pace got to we're that that capture

just enterprise increase in And that's is to execute of against lumpiness our going forward, strategy. and a little plan going our to value so to mission And unitholders. the growth. this But bit clearly, continue for we're

Michael Blum

Okay. Great. Willie, that's helpful.

wanted operations. in you about ask, to talked I question other The December, initiatives to streamline

guidance margins, 'XX? of on any baked [ an committing any whether could ] provide savings. that details you if is expense for about wondering into on update higher talked I'm You the that, just to

Willie Chiang

Yes, about it's Michael. we would would effort, the streamlining I way cost think a continuous and process. -- The

cut something a So or this streamline on is It's we come the program proclaim can not do. business. how we're to can our much going and out organization how we cost we what into

consolidating -- and to But our to some the system build synergies project, this opportunities kind some on ERP an some most business things kind an we get that's to bring numbers further streamline. us the numbers there some risk have So efficiency far enterprise financial drive we opportunity with in the And year. progress, synergies as we as going we streamlining enterprise bolt-ons. that importantly, as give our into think are of of our of more

something year into next it's and So every what what through go really that's baked the we into do year. you'll progress you'll day. I do we think is And continuous as even see

Operator

question will from coming Tonet Jeremy LLC. next of And our JPMorgan be Securities

Jeremy Tonet

nice clearly, very connecting just as just maybe asset M&A curious, in growth of a there's I that versus Permian bit think the by about in guess, the more system. just an just get your factors these something of drive in where can more a a you synergies can the opportunities all you? of want kind process bunch of on I And step-up you of how front and kind synergies Do expand see plans bolt-on [indiscernible]? like strategy. onetime But to opportunity maybe set also that's and organic the more you maybe into Mid-Con and

Willie Chiang

Jeremy, I'm our right? and was heard not but Is question we about we sure bolt-ons how across the think that M&A really footprint. that, all

Jeremy Tonet

Yes.

that. about Sorry

Just but in synergies Permian be there in the could also onetime dissynergies be for like [ the it. organic mature, in more on might connecting versus growth where top step-up Mid-Con ] of

Jeremy Goebel

facilities bringing that Cushing. platform of in into Stroud our system reach through and and customers in. contracted couple We're facilities within adjacent new wax blending contracts throughput creating and from long-term hit creates terminal our That's examples earlier the extends A It the last their It year. year, acquisition Sure. business. blending. a and

platform that's step-up. and a new a So

take in, that's turn into and X a in through significant stickiness them and the at commitments terminal, ] your rates. for XXXX. they're with projects and then with dedications that you asset relationship asset win-win an working terminal create on We recent pipeline EBITDA very to synergies to long-term They the and [ and them brought We that itself, us. it have that our to very transaction so them the to something needed was some mutually the CVR, and had business which which you financing long-term get that a take us has a for long turnarounds. the pipeline allow through And to agreeable and

about outside for Willie So I generation, way a cash this assets be and it's long-term Permian talked that our ensures free for flow a think and asset -- great is the it, Mid-Con decade. just they'll

Willie Chiang

Jeremy, this on to add something is Willie comments. just to Jeremy's

you U.S., opportunity about happen of crude It our look we at might volumes Permian think had us big [ And into a tariffs have their outlook what well, crude If do didn't or, our you into is you the system which we footprint, swing around ]. could the that north way pushing you system not dynamic. if to ultimately things. see for to example, And if it's and tariffs. question gives our Mid-Continent is, and from know the do volumes around different Canadian bring lot what a find very earlier, but the just can

values, we see broad have flexible go a good to that about can different of option options we think you and that's and as choices there's lots forward. So very it's system

Jeremy Tonet

just just the how that? oil see I could Optionality. your could guess, unfolding -- more sense. over views, guys of I do guess, at feel side, step just macro, on you about see we you it. if growth you in if And Got I you share longer-range the kind crude taking Makes look in macro basins back, if which how a could, prices, time? maybe a

Jeremy Goebel

It's Sure. constructive.

about increases, fundamentals, crude driving supply a low neighborhood, could lot our [ now. [ you've inventories a all on to right more the policy And you've rand of were lead price distillate got the heard sanctions but prices You've be could the that lower lot inventories filling of crude demand which got globally, ]. this and calls in of lot a peers' that's SPR Venezuela, those sanctions more on tariffs, things ],

balancing. are lot a things that of there's So

basins Rockies standpoint, the a the so leading little But which a that. And headlines And are developments And then Ford Eagle in from that's is confused from we pockets people even driving from backlog are There's are Mid-Continent the think only it's then drawing The that price way growing. the there's constructive enhancing standpoint, in to are are is Canada policy demand bit and growing, to area as if capital. new we're and the then and a going. Permian area seeing which growing. that growing. is physical

term, the And you're around and assets. then longer see see broad well. So the Permian of seeing that's Canada, we Rockies positive from areas. we by And lot us the we growth is where a see growth existing different more as investment

Willie Chiang

], argue for Jeremy, forget we and and produce even. Canada. Willie, let's but codes. engine of in footprint able NGLs world notice the the you additional flat in to about again. out of if The needed. take there is think Western if it's Jeremy One the U.S. that not gas for outside Permian growth our probably that's you got a are to again footprint Canada, And We're expect basins we've NGLs growth then could ZIP outlined that that broader [ the of Permian great the in

Basin Sedimentary both the those of ZIP X in and Western Canadian areas, Basin, we're Permian So growth codes.

Operator

from Our will of coming Brandon Bingham next question Scotiabank. be

Brandon Bingham

macro looks go TIL guide and the could Secretary maybe the that or like of know that EBITDA with now administration just outlook? kind maybe if the was I compare Is that XXXX? you Wright more talk just underlying are moving I guide, was ] if count how you what we getting some just with there those but -- EBITDA it now, back into I versus of that's pop the generally about year-over-year and doing customers pieces Trump with to I ] if is maybe flat? positive increasing as kind know, said where the what curious in conversations it's of don't underpinning in of tone Just guys customers came incrementally are [ well it going less Chris obvious the just or count wondering [ guide could of Energy, there the more decreasing? does your for are

Jeremy Goebel

Brandon, say consistent. very I would it's

If to we this Permian -- and to our Ironwood have bunch work the us gathering lease X of Eagle the And efficient much last X then from consistent you well Ford is to largest pace. year, which There's stick year consistent the and not activity. is locations, where where them. Basin, very a for very more chasing

say it's year steady call. So the forecast It beginning in year, state this to similar Willie last at I'd additional very pipe the behind of confidence that similar us outlined new very connections. connections, the gives

Brandon Bingham

understand Awesome. Great. deals expectations. of Could might little the And this we moving versus in be to the just you there in CapEx I year? CapEx from year? Was to then for from that dropping in us if related 'XX year could a anything lower pieces that's guide guide embedded the just there's the came maybe help even if year. there light turn QX January next our this for know this into slippage any some

detail any provide could you would Just helpful. be guys

Chris Chandler

Brandon, to your be this Chris happy question. Chandler. is answer I'd

hit of on actually points. number a You our

appreciate So into were capital 'XX, spend capital try spend defer our that. 'XX it we optimize always of to some and needed. able it's not before and we do We out to

in and a to higher 'XX 'XX. contributing spend that's So

to making just big of drive in will we're new Uinta summarize, X our business the in grown the projects of we've well. from within some nice -- on and Jeremy additional as the then million and spend driving 'XX, to far But some of basin, answered, a to come and volume, touched long-term crude the Jeremy quarter online as driving plans. also the still as that's be acreage wax dedication $XXX mentioned, net able we're of in project, us Mid-Con, ones $XXX then larger capital to our course. And outside the for some Sask second just investment, CapEx going million Permian as to our which Fort investment investments expansion that's XXXX. to like and much in the are And the here Permian offload We platform additional that's

that we are committed So to discipline and remain range. still capital within

Willie Chiang

projects go all investment Brandon, And these through committee. our

on all returns the benefit doing best only So stress the have us. that make test these ones to we that for sure we're

Operator

Spiro Our coming Dounis Citi. next question be from will of

Spiro Dounis

I wanted to position time Last fairly position we touch chatted, a open XXXX. first. on open heading had the long-haul you into

that now, to out given guys where firm stands that the plans egress maybe tightening the any you pointed in and slides Just up capacity? curious

Jeremy Goebel

Spiro. say Long Thanks, This Corpus to it's is I'd contracted. haul consistent. is Jeremy. very

then fill the put respect longer stick guide. of we'll want Houston be to in we Our contracted shorter-term [ positions those see expect And contracts into the where until to restructure them but term those made to as ]. extend and we we them with tariffs we to be progress the continues basin are contracts to basin, contracts. continuing the which or largely seeing exception demand, BridgeTex, And with to we're incremental

I'd say fairly it's definitely constructed. it's but So consistent,

Spiro Dounis

good to Very Great. hear.

distribution. just on one, the to moving Second

going to on You you perhaps again surpassed why bolt-ons a guys expectations meaningful like it being about that does level. growth once historically, as of little growth. growth each chose forward, growth are be driver going But sort sound the year. driver And accelerated of a an talked really accelerate bit you maybe main

curious, all each amount? ability baseline so your that And equal, just fair next of sort it your that increases to to above bolt-on distribution increase push like else is say

Willie Chiang

the Obviously, is got about got we've if the answer bolt-on. and think we've yes. business, Conceptually, then base growth business our you

pleased the been and spring more $X.XX, and November the able 'XX be we've unitholders. came forward. we And factor been increases in November targeting mean, of return XX 'XX as work go 'XX all we to 'XX. the out do very [ the able we've of I $X.XX in back increase we to $X.XX ], with So to that of and to now --

do more the think you're better, But there's goes moving parts, framework I money generally unitholders. but to a the and lot of So when we works, back speaking, absolutely right.

there. have growth bolt-ons those We But of as and dependent allow going the have to base grow it's coverage this to buffer, that if forward upon period of of buffer be been even time to of some continue and bolt-ons. may bit over some little to go more shrink the us and we our timeliness of a not business

Operator

coming next of Sibal from Seaport will be Our question Sunil Global.

Sunil Sibal

Thanks call. for the clarity on the

volume So Permian. do I expectations should towards be How if growth of comes thinking of upside on those guys versus of we think be the Permian basin or guidance volumes volume we should of your in guide with we your mentioned the in your you XXX,XXX the volume How cadence if start barrels XXX,XXX Permian? just wanted on day. to XXXX? to per in overall think numbers And to then higher that in out range, of that we terms end growth

Jeremy Goebel

this is Jeremy. Sunil,

your it's consistent year. production on growth. last say the First, cadence with I'd

year, the July from think flattish the you the then part the to through flatten Same weather out in of end year led we start year. we'll first And and of to year was through growth beginning If this the of last year. towards the November strong. thing see

but second say I'd So half weighted, very similar. it's

basis. basin, it barrel that that's the I The really is it in X.X the in day XXX,XXX a day context impact a in think plus our way of about guide. on I a context relative million think does small barrels of

buildup XXX,XXX So a a the to in and look the have marry producers I both down as the from barrels those XXX,XXX encompasses at We think it well. day. certainly all pretty top the rain we

XXX,XXX. that going XXX,XXX based within It to variations say range value you're not will see be guidance. material our to I'd So on

Sunil Sibal

in like about and speak in on competitive should landscape some are changes happening How business, we have area? Plains' been in the there as in positioning then seems Canada. And the think that we business NGL Okay. NGL

Jeremy Goebel

Gulf significant even lot the positioning not [ a the Coast and Sunil, announcement have today, from that's of ] you've that in impact I'd positioning seen ours. say in going a to Kierra's the

have We very and that very be happy assets our Canadian can't unique and replicated, competitiveness. footprint we're with NGL our

Operator

next Jean from Ann of Our will Salisbury America. question be of coming Bank

Jean Ann Salisbury

the I Slide have a haul long on X. for question about guidance

by Plains overall the but So long you around XXX. growth haul show XXX,XXX, grow Permian then of will

toll the don't or driven any ] on returning give underlying getting contract to how Oak half or adds gain how would be little just the It's [ about than service. much more and I there expected I -- of it's or there more know year, wondering if given to that? Gray bolt-ons will share could kind you a over crude assumptions seminal color by Cushing was that growth. I if expansion have So this market anything to much you of

Jeremy Goebel

Sure.

that's But So carrier downtime flow connecting artificial just contracts. be [indiscernible] last is easy, year. to a Physical full. the that led will downtime due Cactus some in some pipelines step-up to on

pull-to-basin is unique II, Won't year. on physical our have where I Cactus then last year. Cactus So had they that pretty the lag and system. this And some

happened think I timing unique last So function and some that year. of a circumstances

Operator

question next Our AJ of will from O'Donnell be coming TPH.

Andrew John O'Donnell

about just his of basin back talked remarks. prepared some to the that Willie Maybe in comments on going

where guys how to start Cushing Just Curious front-weighted if given see some you ] [ and to inventories of indicated? around are are. year low see be you growth they you'd back weighted, earlier this or half how that shift where versus could

Jeremy Goebel

pull refinery it's remember, basin, to respect pipeline. With Sure.

maintenance peak a season right have so now. And you

an lower and So typical the there's you'll fee. first driving quarter volumes see you'll unless see for as basin higher through then upset

could full basin and But say, from substitute to tariffs barrels. typically push Gulf that growth volume standpoint. see large, could just artificial that a the Coast will basin the once domestic going I pull Canadian impact So refiners you're think things impact follow filled, But see gets pricing certainly I would refining by to to utilization. you'll more more for up

it of way. think So that

Andrew John O'Donnell

They for market up where to and hedge improved. I'm stepped higher the could if gallon. like maybe XX% segment. volumes Okay. and And just little talk a $X.XX the then to exposed at ability you your bit current rates? rates more curious are the in hedges me just from at Looks of you're seeing a on one NGL kind XX%

Jeremy Goebel

certainly That's a really in why reason more in Sure. the steep the we backwardation. hedge typically back in been because you've front the

would So to to in $X.XX. would the mid-XXs closer XXXX comp be low be

explained you've in so us, couple last year is of in seen heading this the the that's in And years. no than we've front, back for and why more different the

Operator

And our next Securities. coming from be Dingmann Neal of will question Truist

Neal Dingmann

this -- already within My just question, mentioned first you've Ironwood.

be talked Is relatively term? just Ford opportunities near of mean, the these this. Eastern timing opportunities? potential would Or wondering, this You some are the of what thinking year? next something about all potential on Eagle I some you around more I'm

Jeremy Goebel

as it We're customers all look have January at it [ and just drilled ] opportunities looking I integration. The the canvassing we've XX, way ]. closed [ on at to the

more it'd So think be I year. of next

and been teams So have talked the the do the what multiples returns current cash about the can we more predicated asset. on not flows are, what with

about opportunity So the set. we're excited

Neal Dingmann

your of on of I quick I That and potential. peers. [ still some stock the versus targeted the opportunistic Where about distribution makes little just buybacks again, wondering growth, this? discounted would sustainable your second ] you sort bolt-on beyond one sense. in allocation, a mean, capital And fit think seems just talked I'm see then a

wondered how in. this I So fit would

Al Swanson

we change and trading We that. opportunistic to view return in material of $X.XX for no would this with our with you've seen to to our think that really through stock, distributions Al. cash in a the regard is with and Any increase kind need had of of change our dislocation is to would continue buybacks market be This kind really see or XXXX. valuation unitholders preference shareholders to like of

Operator

question next coming will Company. Sachs of & Mackay be John Goldman Our from

John Mackay

just kind I to ask bit, want but picked to I we've the guide. one this of on little more a Permian death know

you Permian this for pick year. Cactus step You're We kind Cactus underlying is framing the kind for offsetting obviously coming implied EBITDA if XX% the of off versus growth of kind is what accrued year just in that. you of the see I apart what's could EBITDA was later balancing wondering Permian down year. the have EBITDA I

Jeremy Goebel

a question. EBITDA Permian the so just ] I guide? for you Are [ specific asking And understand

John Mackay

overall year-over-year guess for we're EBITDA Permian what that impact, trying growth Cactus looking I isolate if at to volume to relative just you're guide? the

Jeremy Goebel

tariff be to different. that and can way volumes about volumes The physical think is

And so a move. lot of volumes cases, that didn't paid we were for

of in guide don't some And giving a incremental so fills, as think the I the I a will just spot. II, specific be will that largely we're pipe be rate for of for step-up Cactus Cactus just some for that piece.

Al Swanson

you bit exactly, but some at you far and it of the bit little a that it it little growth, but the kind And of deck Slide that. I'll XX the as -- color out take Cactus impact the as split gives of a behind in look gives doesn't a

John Mackay

your And of of would getting this view fair. That's basin Spiro's And of tighter year. you capacity able the just but to goes to when be on need guys out next next then context you conversation? kind summer back in expect of the to, I question, could of get a into update -- come do Is out get Just of year? something think there. when to kind to trying an this Is that recontracting that tailwind? it with think, we

Jeremy Goebel

also over I rush gradual support Current This be don't the we part This time. wouldn't differentials to Willie is just think have it. continuous improvement outlined. is to it's going something that mindset on. of

So shorter-term we would sign contracts.

there's we'll not And So something about, doesn't the contracted or we'll talk from generate it's do mean we're let and otherwise, you know deals finding to continue revenue it. filling to if to space. just in because optimize not ways shorter-term

that can, wouldn't of for generate margin any we unveil and revenue at that much the and recontracting look expect we'll I as to it grand But as So I as are absolutely asset. optimize value trying space. of we

Willie Chiang

think The about And is I Willie. a standpoint. this from macro it John, way

to build to Gulf got hard the economic the be you've capacity got Coast. You've new pipeline capacity. to going It's long-haul and a

commitments If permitting/supply it the you think about the chain issues. takes, commercial

to you growth [ So is I think be. our view is, think ultimately you Permian ] have to going what balance

get going the point probably it next that guess dependent to for capacity, while. broader my live space to going and of So is get kind we're is really Permian where the step. it's of can line to new whether tighter upon we're this long-haul And or going view a not be in built, a to gets a going to go

going be have struggled years. number past place of number years next of We the pretty in in in a think certainly I overcapacity we're years. So the the good in to

here So we're to I whole in time sector get think closer full different of the that state. as we

Operator

And from Chen our next Theresa question will Barclays. of coming be

Theresa Chen

reminding point, to up just as XXXX PLA guidance? is mind your try $XX we us to your the exposure you the sensitivity frame within volumetric TI Would what assumption this at

Blake Fernandez

Theresa, it's a million X update last The is Blake. year. given we've barrels

EBITDA. million So $XX call roughly it, $XX to of equates a move

Operator

conference like now would Willie I to the back remarks. turn for And Chiang to closing

Wilfred Chiang

of for forward Well, in you safe as and dialing we road. soon Have on seeing interest the listen, continued Plains. your get in thanks to out weekend. you a We all look for to

Operator

today's concludes Thank this conference And you call. for participating.

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