MMP - Earnings call transcript Q2 2018 | Magellan Midstream Partners, L.P.

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Operator

Good day, everyone, and welcome to the Magellan Midstream Partners Second Quarter 2018 Earnings Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mike Mears, President and Chief Executive Officer. Please go ahead.

Michael N. Mears

Good afternoon and thank you for joining us today for Magellan's Second Quarter Earnings Call.

the forward-looking remind the statements into will that SEC. dive making be as we discussion, you I'll management Before defined by factors Such judgments future on based of that the performance statements the could our Magellan. impact are regarding current

(XX:XX) time other Based significant that long-term are recent expanding our additional week. the current supplemental with our per up open way, out taking and the of XXX,XXX your of our this and received from its SEC expansion day pipeline, to Magellan's about on busy discussed (XX:XX) leg capacity products own season, in further the Texas You XXX,XXX from should opinions factors barrels at future information the per we two review refined form Western risk project day. Magellan filings with the performance. a With

by We building and the increasing pipeline are diameter new route Hearne a Alexander, additional XXX-mile from this a existing also of pipeline to gaining the space portion along twin Texas.

the is spot products refined excited (XX:XX) upside X attractive available capacity to market times capacity EBITDA all million new construction time. to since bringing contracting not we're for and movements. and exists potential pipe Significant all pipeline has Texas the line. Worth across And very West West our to it committed not the Fort volumes Worth up $XXX alone. Our multiple per is barrels to incremental Texas project contracted this project on XXX,XXX The of is some also Texas increase capacity now of the finish Dallas-Fort West this new or about Texas, increases to only Dallas of the capacity by for And day. cost to does quite our system expected generate

system We Aframax with million expansion supported per of XXX,XXX storage, joint an day of which capabilities commenced dock connection plans a new barrels oil of Magellan's to full in is crude all and with to another venture, Magellan's day Yesterday, Suezmax of dock export announced of incremental storage We Seabrook, new by now operation. are Logistics Seabrook X.X per barrels an capacity. XXX,XXX which XXX,XXX dock build recently capacity oil our terminal. distribution crude and export a announced also at dock barrels Houston we

Basin the online exports. meet service and Our These Permian Seabrook interest Coast of by our course assets be solid and in to results additional the share with will increase quarter new of seamlessly of attractiveness we this significantly capital million offering announced late growing to the crude the Gulf year. XXXX. oil the will waterway capabilities assets DCF Magellan guidance another from export for deliver to financial the increased $XX customers' crude the And of also of increase morning,

the over the a CFO, the more hand be to financial projects. our I'll for quarter of and I'll call outlook other to back few results in status expansion Aaron detail, our discuss our So Milford to year of second of review the remainder our then

Aaron L. Milford

Mike. Thank you,

operating million which will of to I of quarter second XXXX. metrics morning, diluted This was to we these making certain We've reconcile reported reported per today, including income measure. the to distributable unit or GAAP basis, references comments nearest exhibits than and During quarter second for release, be higher net flow. a earnings to $XXX.X financial million included my their our on $XXX.X $X.XX the metrics margin non-GAAP cash

the operating Distributable current $XXX.X activity now $X.XX move quarter, contract margin more Excluding reported second earnings performance the XXXX. million of the in of million higher cash back second in of unit segment. $X.XX I the of $XXX.X a of mark-to-market quarter than adjusted of each futures X% of quarter for the in our will business was per provided diluted discussion XXXX than of May. exceeded our impact the guidance in flow to

products refined segment the of to operating period in in same $XXX.X compared million million Our XXXX. quarter margin generated $XXX.X for the of XXXX second

quarter. in between were impact or higher and $XX.X periods margin recognized period release, offset period. noted same in earnings almost essentially from this commodity the fee-based expenses. activities with X% decline increased being (XX:XX) higher our lower Transportation including flat in compared we of XXXX, the impact million from revenues As Results operating the to the current in the terminals revenues to margins, by XXXX resulted

well environmental Operating and to million across average Texas expenses higher continue (XX:XX) rate the to portion volumes as continue of head We last integrity compared asset the system is attributable system West higher higher see per XXXX. broadly the resulting period timing. these to X% result total is personnel on our we higher compared growth This were increase in last maintenance our as with simply accruals. than $XX.X was of increased product count period and higher volumes barrel costs current to same in and our in see also higher Further, to year. year. volume from work period distillate higher expenses A compensation costs the refined

improving $XX.X quarters through peaks benefiting of volumes unrealized the by margin as the taxes seasonal as of butane we activities nature blending and result year. losses. year, activity quarter our second than blending remainder the to addition, fourth as were compared from Keeping we last lower In during first to still where decreased expect a the a mark-to-market the calendar our favorable move as mind of well in (XX:XX) blending generate results property activities year Product last higher butane tax million quarter of XXXX to due of average year's adjustment. costs

quarter, our period this and segment, a revenues from contributions quarter oil by mostly higher For increased million Christi to full million, approximately our volumes differentials million, well average year as The the to tariff and operations than second during significantly spot in response our as – $XX.X rate June rates Permian splitter, on terminals between Corpus of higher being the is current record margin Transportation average markets more which rate. of crude operating Pipeline. began spot of and in Longhorn for to the segment. due quarterly our Houston quarter being $XX.X last market last $XXX the due – and than average Longhorn higher shipments higher year

spot transportation were primarily crude essentially XXXX. higher segment quarter. overall also increase the Our for by second average on unchanged rate during expense This Segment the the rate from the to current earned the was quarter for last operating the was compared Longhorn period year. of Pipeline driven higher also

(XX:XX) day. Longhorn Pipeline over barrels per For the quarter, the volumes in our averaged

annual to second barrels earnings during higher barrels Houston. XXXX. as volumes in the in per morning, BridgeTex day average annual of Also, basis, and September compared Basin last ventures response now this on XXX,XXX second Pipeline of barrels the during due first shipments barrels quarter XXXX now a is step-up in from million as increased BridgeTex per to quarter well for a previous day day release earnings expect day we to than average approximately XXXX XXXX our volumes Saddlehorn second expect XXX,XXX day day quarter in on compared earnings our crude morning, XXXX. to the Permian our Saddlehorn spot quarter per is guidance. on quarter in $XX.X commitments increased XX,XXX quarter on full primarily which as X,XXX barrels year. averaged oil Longhorn this barrels result between higher approximately day also XX,XXX as committed started joint per mentioned differentials full-year to volumes our barrels approximately Volumes during Pipeline of second approximately the release compared the XXXX about previous were the the of our per than the of day a Pipeline mentioned This guidance. to averaged which Equity volumes of new is BridgeTex higher XXXX. in per which higher per XXX,XXX annualized the we in As for various an in (XX:XX) per XXX,XXX current barrels Pipeline from basis, our higher

quarter Moving costs million period by XXXX. Terminaling to to year, tank (XX:XX) Marine incurred compared the Harvey to Park $X.X second (XX:XX) last plus utilization personnel online. of generated quarter of higher the expenses, at expenses $X.X damaged Marine increased bringing due costs, in Galena $XX.X in margin million segment now to product same million the lower primarily compared Hurricane terminal. demolition million due declined a our out-of-service activities from revenues part of lower as expansion our project as back which quarter compared to well segment. as the Operating current the The XXXX operating overages dock operating to $XX.X maintenance

quarter. year's Now other moving to last net variances income to

result higher than costs $X.X Depreciation with due were a interest placed increased XXXX higher plan discussion into had debt result and of million June result balance year. expenses We borrowings. as long-term as G&A Our this a as million liquidity incentive $X.X included of regarding move higher quarter which and our increased and our assets to XX, the expenses amortization personnel higher a to last expense of commercial service strong of a I'll debt now performance associated to outstanding paper $XXX year's quarter. of outstanding position. compared sheet billion as

was X.X Our was EBITDA. ratio to X.X%. Coverage approximately rate approximately average debt interest times

to backstops have under units our any it in billion commercial has credit $XXX units a during million did a market any maintain program at and not quarter since to continue under program been paper had which program, equity continue We this program (XX:XX) $X also issue not facility but place. this the the but issued also totaling

(XX:XX). as be of fund current without as We I our times growth expect markets, Mike to for guidance updated X our the well needing projects longstanding significant maintaining within will growth call will for to underway. over levels that debt now access equity projects of year the we able the balance the slate turn to

Michael N. Mears

by the $XX start Aaron. the Based on XXXX. from the of guidance (XX:XX) the expectations you, our remainder XXXX to of billion represents $X.X the solid our of total initial for increase to million for our year, guidance annual and to million the a beginning have provided we we DCF at now this increased $XX group, Thank year.

and last favor guidance as such pricing the we quarter, initial Basin number since the Permian our of in dynamics favorable that between differential As moved mentioned a Houston. industry

in this the an as Concerning Longhorn, margins additional to resulting year this gallon. the years per two elected activity blending now around have at hedged $X.XX current with (XX:XX) customers XX% continues, spring to for in point. to both fall Similar long-term of XXXX XX they to differential with now through to XXXX still also their starting expect Our (XX:XX) lower for be gallon our our We're of at BridgeTex. above for hedged executed quarter, we terms for blending per with guidance remainder under all Longhorn incentives. well, XXXX last $X.XX lock year, the and or around favorable (XX:XX) either years margins expected initial margins existing contracts terms XX% extend at contracts have up of

discussions XX active a yet have contract As we the with initial (XX:XX) long-term in (XX:XX) and contracts. who reminder, remain September executed not

currently process some their customers are underway our we take-or-pay XXXX of address saying stated annual runs XXXX commit cash by of August fact, the and latest rate into both that, process a comfortable In increasing hesitant course, to future. until an average long-term all and In shippers are been so in yet we position X% have to but publicly current through contracts the factored guidance DCF still just be for making commitment these by to and we XXXX. to Since near we if distributions and X% committed selection, for in to a its for X% our provide expected XX goal remain should items have desired. to

expansion $XXX expansion to have continue slate Moving XXXX these our the growth new in we on XXXX Based and expect million current spend to XXXX future approximately and identify projects, now of opportunities construction projects $XXX million currently and in to of we for progress projects. underway. of complete capital, to (XX:XX) both

operational East pipe refined expected mid-XXXX. $XX-million new to a is at and Houston. these diameter also Texas supported products This be enhanced include Seabrook export Galena between addition capabilities spending refined pipeline commitments estimates expansion to fully is and an X-mile In by West to and the Logistics, Park customer in XX-inch construct project

construction construction of facility is is venture We the continue of substantially expected X and this begin under joint all initial domestic remains after ongoing service expected January for million as as of month in the our to marine Pasadena make later and at which storage year. pipe dock Activity date. long-haul terminal mid-XXXX XXXX, pipeline, barrels refined pipeline needed The to that already to received well. delivered to Houston-to-Hearne (XX:XX) has work is January East XXXX from being by to additional steel our million with strides barrels service related next material storage Pipe for construction. are support with The complete. online finished X great been expected substantially swing to ordered in commence mills products a come full projects our

crude arrive ordered next is Basin has startup for been pipeline. to oil pipeline Delaware a also Our quarter and with anticipated expected mid-XXXX this

We of are the considering this of assess to optimization number asset. Basin continue and utilize options to the potential a project best Delaware

continue Logistics further beyond announced Seabrook products both ventures in some few opportunities (XX:XX). opportunities, projects other expansion including Discussions and expansion yesterday's also We also new joint in a oil There active storage though for develop continue date, in participation to excess and evaluate pulling continue announcement. for well refined to our Pasadena to our potential about export Texas is we've various industry infrastructure potential crude chatter regarding phases projects. and Seabrook potential capabilities. additional of both already even Even discussions

So we multiple with confirm can discussions as are advanced related parties projects. regarding in to we potential that this,

time However, in on commitments, now landscape that fee-based at are backstops infrastructure. prepared to to committed the rapidly remarks. the of my focus new we projects take-or-pay especially activities, provide We this by That evolving not remain for that of disciplined concludes our details these model energy light discussions. prepared discuss

the questions. call turn we're for ready to operator, So

Operator

do have I some you. questions. Thank

first The Theresa comes Chen one Barclays. from from

Theresa Chen

current long-term their but who Are two most with Longhorn My help first Any X? that elected for to have them great. provide about you ones what terms the majority to you to us give new there. us understand the be, related contracts have could color not duration think at executed years that around Hi ready X color sense long-term numerical agreements, I executed have is what the that is? versus extend recontracting. question tariff lower years current or of what would commitments you're rates? a percentage any agreements new to new at those of the of of portion you initial And average the of are be can will XX

Michael N. Mears

we've details process. Well, we been I I to wish give I open those could complete hesitant color. give the more mean, season until you

percentages more years, multiple unfortunately, this actively But point, can't We do we're where give I all the the long-term terms going more not I'm that it's signed can X to contracts that since contracts negotiating or to we that. the the tell have today. rates. So, once do have you to that details range, intend you still two But give can't customers, extensions. executed, the at I of complete on I with the provide color or current customers you been the either of unfortunately, in on contracts XX-year long-term that are stand.

Theresa Chen

Okay.

the Texas products of your the to expansion refined system. of Turning western leg

provide of on competitors services, to why the studies is and reason Given to of and announcements for announcements projects destinations? do the by in get optionality out the origins feasibility of terms forward? greenlit demand similar able move the distillate rest was And of to your and the enough the you project there's broader think commitments necessary be there because system recent

Michael N. Mears

your refiners. to with of have that the I at have we and our question, we Gulf Oklahoma of we part Well, access to first that advantage and the Coast have over Mid-Continent the origin complex some the Kansas refiners refining do in access entire think competitors

connect to support large though existing fuel demand the then diesel primary into Midland, to Permian all the that our we the El border pipelines points. demand is and up So have have supply going happens which pipeline We run and diversity Arizona that to in to then also an the Basin New to significant depots. system own even two Odessa with significant And have potential Mexico, also driver railroad Mexico to to in connects way we own in – to existing expansion, connectivity connections which the on we've to Paso, commitments. behind got in fueling optionalities we terminal that to build pipelines pipelines we the

So believe would curves significant is crude I forward not the demand there been served by customers you network significant we've they and for got the got the demand make. which production that to know it With going forward has comfortable or oil our all Permian. presume local in current there pipeline – demand diesel demand, even from Permian, are we've our production on incremental correlates to our mean significant done, I And we today in a we commitments oil diesel what as the making where regards today system. growth diesel if refining of the is (XX:XX)

So say support demand other I at we're don't projects, to there in the diesel the I'm think not whether (XX:XX). in to growth end people's a position of but proposed there's demand

Theresa Chen

sticking for And (XX:XX) first which you the have you of potential involved your excess from the capacity you additional of do having in maybe Permian currently long-haul couple versus periods terms as pressure for for numbers on to the existing upcoming theme, assets? post, Permian building takeaway renewal, and events with swath are recontracting of years up could Longhorn pipeline desire where given the recontracting potentially it. with potential stand get today, Got put the in how of of a BridgeTex crude a balance

Michael N. Mears

capacity proposed on or here a the higher Houston, BridgeTex. to is reality the The the significantly that available marketing need good is – capacity from short happens we and recontract Well, to is, pipeline Permian takeaway the question. a Longhorn We that's very basin. to this (XX:XX) demand, have with a than the to coincidental of in are be out where really demand, the the position Longhorn

And rather than so in we is a we'd it's not it And pipeline own pipeline if needed. even is participate extent apparent the to solution that that us needed, existing a pipes. to

so happen. I support there to need to we it's want Eastern going participate and to if view in a as that and Coast mean is And again (XX:XX), we to mean, great the need the I the pipeline Gulf

Theresa Chen

Thank you very much.

Michael N. Mears

You're welcome.

Operator

another from from have that JPMorgan. comes we question Jeremy Tonet And

Unknown Speaker

(XX:XX) This is on Bill for afternoon. Jeremy. Good

Just you additional coverage X.X above that to financial XXXX curious, times puts (XX:XX) the flexibility. guidance for utilize

Michael N. Mears

a do just going breaking But little you're our that times at this out at think if question. coverage moves change guidance and outlook year, distribution the we your growth what for XXXX, given haven't change XXXX To our distribution all, is to for you extent it those going mean, we'll our which coverage. asking bit obviously XXXX the forecasts, increased revised really distribution is on XXXX, we this least there Well, look our above were and going and X.X I we up year, DCF to to not. we're at to I in evaluate guidance not as XXXX. for we're exactly on, as

we've in our changing point, given But decision mean X% of we're to and range forecast not make a this As distribution XXXX X% all, XXXX. I we'll we that January. in XXXX said, at for

Unknown Speaker

any that you PDO the Thanks. on FERC? with And then update filed

Michael N. Mears

We have none.

the if think did status allowed tell I proceeding, (XX:XX) because we to (XX:XX) even it's we're us. with mentioned, not wouldn't As I they commission, and (XX:XX)

don't did, I but have an wish don't. update. I So I I

Unknown Speaker

it's That All me. helpful. Thank for you. right. That's

Michael N. Mears

Thanks. right. All

Operator

Josh from O'Brien is question from next Jefferies. Our

Christopher Paul Sighinolfi

Chris. It's How actually you Hey Mike? are guys.

Michael N. Mears

Good.

Christopher Paul Sighinolfi

sort that handle or your Just at wanted potential came up time I your analyst effect. of get team trying it topic at know and a a that then on a something that on. day – to to was was question IMO follow up

a I get on it. people think handle a of trying to lot are

refining guess, of a curious product lot's Just if months just said have been system? I crude of view of refined a by the I'm the a XXXX or couple any, system more passed, community. you refined have

Michael N. Mears

around our system. Well, in is our fuel think high of extent exposure and we a kind Connecticut. our Louisiana sulfur mean, Delaware as the confined really again at small said Day, It's to oil and I our fairly terminal terminal Analyst to our I terminaling limited to

is exposure our changed, has pretty that mean I (XX:XX). So

at As able not about lease being this point high those those in past and far service tanks (XX:XX). concerned I are in service other facilities, mean, continued time from as not either we to sulfur

those going clearly whole in Facility. we pretty system. are like again our to expanding terminals we're and two that the pretty With stable So terminals our Park they're context opportunities, feel Galena small regard of remain to

for opportunities the or Pasadena fueling low are We incremental facility building our moved exported that sulfur oil for be areas extent to to fuel there's vessels. to

of very think positioned we're advantage take well I to that.

Christopher Paul Sighinolfi

I That's dovetail I Day. at interpretation that mean guess helpful. very us FERC you just that to on process. pretty And the – Okay. question about Analyst just I'm last had very and a helpful the And detailed given I on you the if gave curious final if your there. that's that know the curious enhanced it's wasn't changed, of I'm information just in a from either greater or any anything rules process public that available say view you confidence. any

Michael N. Mears

Nothing a ruling but has little recent you in FERC. income at breaking I'm I issue ruling about us. the tax allowance I surprised nothing if wrong think this, and when But answer And the the asking too. I were bit up you're correct recent changed. The think me again

with on be when expect view. the issue with until along, And declines, the regards But, decision has it's And of cumulated In to occurs. so the changed taxes. And closer they index. impact nothing's the the for going commission we next to – this review consistent on the it was again, liquid no initiate fact regards assumptions our (XX:XX) I them the clarity other determined the index don't to point. at deferred that get given than going guidance really, especially with date this really we've to income is made very all again to

the the that We income X.X% case is elimination arguments case about view adder scenario, wasn't in extreme around have the an would in have strong took on is index an Just the to tax got, we've Analyst industry index. effect, scenario effect very negative, to on to this the that (XX:XX) a after change think case do index at worst of commission anyone to PPI that on who way whatever Day, position tax worst the the the allowance. our calculate in as the no brackets how the put calculated. income is suggest in It law the would really the

the is the So, policy of on statement. what exposure bookends think this we of those are kind

Christopher Paul Sighinolfi

That's very added for all helpful Mike. Thanks detail. the

Michael N. Mears

Sure.

Operator

Moving on, that from Jerren we Goldman have comes another Sachs. from question Holder

Jerren Holder

Thanks. On So about Logistics, is can where right to I about we (XX:XX) way? are see the there guarantees how docks, Good degree based it afternoon. Seabrook think thinking do should (XX:XX) move the that we upside? and the upside? that storage targeting, and across that just the see you on the that's return Am volumes you're all the

Michael N. Mears

got obviously, those some In to board. move in facility, cases, Well contracts across there's storage the associated component say, there's But there's development requirements Seabrook and we've fee all variety the under some to and cases, suffice of volumes at certain a and contracts. the with there's a in place they're mean throughput I a through it of not. contracts

So is XXX% there's going I not, I forward utilized I if highly, pretty you know is the – to that tell at Seabrook if our gate this can more of on detail be really much but out can that, that provide don't point going expectation

Jerren Holder

be? storage fully is utilized, Any fully low fully if as sort everything contracted, as of capacity some multiple the say, dock meaning let's could just EBITDA well utilized indication, how

Michael N. Mears

number have you. but back don't that attractive, be to It's we'll handy. that handy. I to to have going get have don't I

Jerren Holder

Okay.

Michael N. Mears

an to be multiple below. going eight or It's

Jerren Holder

As case a okay. base and,

Michael N. Mears

Correct.

Jerren Holder

Thanks.

Operator

another Sharon from take question Fargo. we'll on, Lui Moving Wells from

Sharon Lui

afternoon. Hi, good

Michael N. Mears

Hey, Sharon.

Sharon Lui

the about refined return the of project. products expansion your inquiring Just expected on

if wondering your Just in has been, expectations. I a there guess, change

Michael N. Mears

Texas You're expansion? West refined the products talking about

Sharon Lui

Yes.

Michael N. Mears

Okay.

a multiple on the $XXX seven that is, Our expansion on the full well, multiple million. EBITDA is expectation times about contracted

as not it. of Now, full capacity, to – has XX,XXX capacity day is significant of we're upside barrels contract. that earlier all a I though, that just creating mentioned (XX:XX) the

contracts above rates out and system. the rate of is our one is there So, on to available capacity Texas West the our highest

Dallas-Fort this available contracted we've of is as expansion, all significant movements. That's which at importantly, to just But at probably, barrels all the point. provides contracting a incremental gives XXX,XXX that built part spot us upside. market – way or not day, the the for second the So, it capacity this of Worth

So, those tremendous much we ultimately much, and multiple. this have upside make two times alone, things than potential we'll project better the think, seven

Sharon Lui

Great. for color. the Thanks Okay.

Operator

And line open. Please another question. Elvira you RBC. Scotto Scotto, from is have with go from your comes Elvira question ahead that your

Elvira Scotto

Hi. Yeah.

of what couple questions. you was hedged breaking for repeat up. The you of XXXX? butane a line Just Can had season blending

Michael N. Mears

Yeah. I'm we XXXX, up hedged year for also. hedged (XX:XX) It's our the was the said for normalize sorry for that. we In hedged XXXX, end fall. which whole you for on breaking for we're whole the XXXX are the year, – about about I XX% are that that at had for spring, it's if XX% this point.

Elvira Scotto

really who's taken expand what's But extension. Longhorn the versus embedded for – the Thanks the guidance two-year Great. about between mix contracted to Longhorn who's your Okay. talked sort contracts? not the that. of And respect giving with then you you're know I in Pipeline Longhorn

Michael N. Mears

to a answer – tricky way the that's we've Well, get me question. to

expectation and based of at with open discussions can We we're details at I on season this we'll to where be not. based say end who's future Again, on in sign going give we've our And we've – had But we've had point. it's have to shippers. going to for but all that's an more projections so as you the to who's expectation this the closed since (XX:XX). this,

Elvira Scotto

supportive. that's shipping from looks onto long gating more then, but you the there's the coming Got think pretty terms? I the know signing capacity factor pipeline is basin what And do production it. online, keeping out of

is think do So back? those holding what you

Michael N. Mears

is you a from they've capacity competitive Longhorn I others context because years have This the really of it existing think (XX:XX) the mean, certainty all two they the (XX:XX) Oh, all market. have of I the that space. it have that on to past so the that just that it's customers take – extended space have years;

So they space certainty. have

when be But two construction we've and have they that's that they the when that problem look and a incentive will be rate really so pipelines is paying above done. proposed these number of years tariffs Now, when offered. under that's space the they'll a out,

to think factor so future. they got agreement. advantage, And market any all And and next that's years really the there rates to commit believe is one the I to competing customers cases, trying they really think be that may whether that But that's we're on two we we've which sign out against want for in any in gating I we space some what are can the provide if at long-term our is pipeline. determine

mix So things. of there's a

dynamic of now. you environments Permian it's And to As customer can dynamic expect. right most the pipelines, know, or for intense you market as on and shipper commitments an one is (XX:XX) petition extremely

mix. So all that's into the

Elvira Scotto

M&A, pipeline Got terms No, one crude be last see appetite for and you just some there of me, for there M&A? sort your to know for I of sense. makes out valuations? to out with opportunities. you evaluate terminal at assets point, at I asset what's in do mean, maybe And There it. then you this constantly M&A what respect what sale; do interesting and so assets the look seemed that

Michael N. Mears

(XX:XX) is, bit. disciplined, that any revenue if much our we not mean as and mean interest don't don't view I expect to opposed is said, we're we've (XX:XX) long-term think something that the from short-term streams of it, M&A. or We view I three-year we I cautious. on the done we're views. so a take of even (XX:XX) with fits we're assets, – to haven't take a fact quite forever lack a and mean Well, though it's I very always of changing market's And well very we're strategy, not last asset matter the

don't say points. lot When win. they've the don't as we very data But what I'm a I have valuations, we're just moderated valuation's the but where often And been. of And far interested. the so, last much (XX:XX) two still involved recent not months I from from mean, I in, market, recent, hearing from been

when We we profile. talk and said, will be nothing. everything. I likely guidance to and mean build evaluate, candid, our growth about into expectation, we everything, look our that mean, I So almost we on bid we we growth I like buy at don't any that of is I mean,

it into assets. so in models, trying really acquire – mean active built doesn't not that our planning we're And not it's to but

Elvira Scotto

it. Got

Thanks. Okay.

Operator

this And it questions no time. are there at appears further

Michael N. Mears

thank in for for good thank and All Have afternoon, your for you Magellan. your time questions thank interest a right. Well, your afternoon. you you this

Operator

that for does today. conference call our conclude Thank you And your participation.

You disconnect. now may

Magellan Midstream Partners (MMP) 3 Aug 182018 Q2 Earnings call transcript