Jeff. Thanks,
for outlook generation $X.X we while Turning Year, lower the guidance than announced New to of DCF DCF for XXXX. in our our billion XXXX,
expected exceeded expectations more positive results included both expected, closer blending now of butane than differential are have for for which XXXX year. there than and Permian most recall the more favorable the to favorable retreated may significantly significantly revenues margins expectations. due of You variances crude year transportation to initial original These the our
material recoveries a insurance also on one-time of one-time our in addition project. Wink In sale benefited the in to Crane from discontinued the gain XXXX ownership pipeline
projections As through New now I'll so you we for building you we're for better have about the XXXX how our – feel still Year. a blocks usual, thinking used the walk
our in refined Starting remain nature to relatively pipeline with Product further refined emphasizing system. our of stable to segment, base products our flat between Similar years. expect the business we XXXX and Refined base product volume
expect XXXX. growth total in upcoming Texas the that shipments expand recent XX% our we refined With pipeline products increase to projects benefit of closer capabilities, to
of to the projects Texas Houston our in higher include mid-XXXX. service movement haul our new East that late from growth well West to represents pipeline tariff placed expansion XXXX in began that These as operations her once mix into a movements as short
index In rate adjustment model use The important pipeline component X.XX%. PPI is fifth The final less X%, current which the for is in is in PPI XXXX an segment. to on the on follow system average right an the the our index. to XX% XXXX than the index, that adjustment is addition tariff rate FERC the markets the to our of tariff based to of plus volume, occur and for resulting X% change at the and X, July preliminary products year refined for change
of by methodology they deemed subject remaining interstate not our competitive are firm. the refined either to markets are index movement to the XX% However, or the because be
as in a we competitive can adjust these forces As result, allow. rates markets
each generally our analyzing increase relevant intend approach. by is to to team we similar markets in markets in mid-XXXX, commercial the but competitive this our X% Our to X% time, rates of historical at
you tariffs to around mid-XXXX. movements an For that average intend Even mind our X% that though and in see of our the at impact average modeling in keep on purposes, we rates point-to-point statistics. raise pipeline have operating please
to projected movements tariff shorter a rate between throughput at incremental Our is is rate. of remain overall a per lower This because come flat portion is haul the ship from significant expected barrel expected relatively to periods. that
period index the FERC to for XXXX. the the next is be FERC's determine the year five-year current for index, final this beginning appropriate be will Because what the could working
As crude this soon filed Form FERC and are spring late Xs oil for various refined the the pipelines as in the year. of products
set those data to by used next from filings the cost compiled the will be and FERC the index for The years. five
usual, pipeline in the at turnover active industry, agency. commission process very will industry about educating especially role impacts a it of index and the the to continued this our the how be light taking As continue in
allows XXXX change is they At two into plan evaluation how impact will would report incorporate we no but believe MLP based years time, on tax ago on from calculations, to share Analyst index our this don't at material there our new income new publicly internal to a Day. the the that that have information
The assumption activities. as Refined significantly other key the our to the Product segment commodity blending is is it relates environment, especially butane price impacts
half one price locked XXXX about hedged sales any at for with have blending expected of spring of expected unhedged volumes. in. forward virtually commodity We forecast point all generally We margin our blending curve this to our margin butane volume the use
and half for volume of gallon our in was favorably of Based volume. environment Primarily around we've lower $X.XX the blending note, mid-January the We pricing blending our forward a the expect total that margin curve do during this average blending seen profits. that years. margins averaging approximately impacted best ended currently results, margin the for XXXX. expected Considering per per up on $X.XX unhedged final butane XXXX. for Of locked gallon four remaining hedges
segment. on and set Longhorn that that sufficient that Moving or into is spot Oil the in BridgeTex the for shipments in encourage Permian you differential pricing expected We'll not to by XXXX to few pipelines our the basin matter. the next Crude reminding between after Houston stage years be either
– and XXXX. reminder, systems spot $X greater of in that benefited tariff As expect barrel higher of at around from both volume we in rate reoccur to we do a much that not much XXXX, per resulting spot for expect shipments
fall are first, have we the we in to pleased XXXX. Longhorn was recontracting of to the Longhorn Addressing capacity made substantial progress advise, that on set expire
long-term approximately eight renegotiate elected the reminder, the to that closer contracts this of initial on new day late contracts new expired. Longhorn at life when about in Those a an time, years point. about average back of seven XXX,XXX at had per commitments As half to XXXX barrels agreements or so years
to remaining late XXXX. which Shippers XX% chose representing of the two-year volume the a is extension, expire in set
flow with shippers our that cash for lower build rates potential that sometime with agreements negotiating to being actively space accepting if longer-term preference long-term for even been to have We certainty. some requires marginally have
that a to volume quality next signed this reduces commitment, commitment new years. ramps XX-year substantially counterparty recently take-or-pay end, in we over The that the recontracting pleased agreement To up are risk. few our with new
affiliate As in ramp multi-year secured a third have to we shipments step the or agreements the result, up Magellan's facilitate with and parties bridge to will marketing period. backstop during fixed shipments interstage affiliate gap differential to
that progress of by parties long-term agreement, to capacity affiliates portion risks shipments as we taking with The are on line committed Longhorn. considered in our marketing are volume backstopped substantial The are our is table. this on off third up term Longhorn excellent making new analysis bottom the that
Longhorn commitment Based volume the about to average per on today total expects Specific XXX,XXX to five nearly expected volume next XXXX, XXX,XXX day. is years on to Longhorn. a approximately average over committed committed barrels on day secured barrels Magellan
active to additional and lock and and in short-term these We the essentially secure to projected be expect XXXX. commitment uncommitted to remaining the differentials, space negotiations full in we Longhorn based remain discussions both on long-term, in forward
forward lower XXXX expected, of be than for will agreements. marketing volume Longhorn the and affiliate average result committed a new As the tariff going as
to are day about the to barrels with disclosing XXXX. differentials We barrels agreed equates that XX,XXX the day not in per affiliate, marketing parties our of been of within have which volumes committed a third XXX,XXX
shipments approximately remaining Longhorn affiliate in shipments per renewals, of roughly barrel barrels of average the day is status for years. on $X.XX Excluding committed for rate of third-party per average committed life based be with expected the those XXXX to contract all-in current the current the a and seven XXX,XXX contract
provide committed rates Negotiations updates run continue for the future recontracting remaining on uncommitted the average processes its will once space we and course.
BridgeTex. to on Moving
differential nearly XXX,XXX day day the such to shipments Houston. average that We expect XXX,XXX is compared in during move a barrels between XXXX. are shipments not Permian per barrels and XXXX the to to spot approximately Again, motivated
BridgeTex As approximately a tariff with up of rates. the through the and remaining of average taken of measures take proactive additional has in pipelines environment life capacity reminder, XX% commitment to use incur movements years an to this incentive five
barrels new come more currently expected XXX,XXX per the is to Saddlehorn to The expected conjunction during move saved three transporting were expansion pipeline in is with pipeline than to day commitments XXXX in and due process day complete, new per late be in with capable full XXXX. years. for Saddlehorn fourths capacity Once is this of the online long-term commitments secured will barrels expansion seven of XXX,XXX was effectively
Marine the segment. Switching to Terminal
operational which in of Phase expect expansion by II XXXX during to sale partially combined be marine we've We be the $XX pending a indicated our new million cash three less that of year, terminals will of contributed results of the basis. offset Pasadena on the than
assets and again and considering total and and expense, million during expect spent we spend than a over significant in XXXX we our spent Concerning year $XX maintenance XXXX. Magellan to more spend and capital of on million the and $XXX maintenance time similar work capital, a integrity amount little expect in safety ensure to reliability effort XXXX. in to each both
up So to are have summary, XXXX in billion. guidance our the we those used to of assumption key $X.X DCF build
Turning now benefit our our in priority. remains Managing prudent the to growth. a manner distribution our business investors long-term top for of
our perform very remained strong. While continued to our well for and services business demand has
expansion environment. oil more inherent earlier, which X% mentioned are capital in light was was distributions that line with believe In driven annual not this, we long-term by profile our do in favorable outperformance growth as likely a XXXX increase business we part Our in our for low for to to conditions think is XXXX, plan crude by of persist. in we
for create X.XXx, of $XXX We than increments, and used With plan XXXX, can this coverage or reinvest X.XX% goal generate excess approach. flow business consistent XXXX investors. in we a for in achieve additional with distribution annual targeted quarterly more DCF of our that $X.X otherwise with cash million value growth billion to the results be which X% to to distribution expect of our
to At this beyond provide not time, we do intend XXXX. guidance financial
them, distribution coverage to importance X.Xx distribution in energy the intend based high on light above within continued the space, to target higher of remains the for of we volatility foreseeable future. that feedback investor However, especially coverage
While investors, organic of $XXX would excess of to over our in we projects capital in that years. value the lower a million reality create will potential continue few we that the well evaluate for growth next incremental environment is be likely most spending
our allocation spend discussing to like I'd strategy. So moments capital a few
continue committed will sustainability longstanding forward opportunities or exceed our flows. long-term to plan approach if appropriately be move and only meet to risk on targeted in and invest EBITDA projects. are remains to In threshold Magellan of priority attractive first Xx our to they for adjusted that, Our capital they saying high-quality to multiple and to Xx new cash discipline growth
To program the current the believe investors competitive extent distributions. nature especially excess cash this or tools, special returned repurchase either to lower, of other utilizing of including can opportunities environment, indeed be that flow are we in light
intend authorized Board time-to-time. schedule, three purchase As over with units to week, deem to announced years. To the last defined has set a $XXX program our units of – opportunistically be to a opportunistically clarify, from we use rather this to million to the do plan but repurchase next us up not
while not a cash a returning very as make we that addition, way. talked lot in in the of efficient space special payment tax In investors well, believe sense also of about a to distribution, midstream could immediately much
have not a to could each We approach The for you levers a short pulled. that know have no. formulaic answer of curious approach. in number mind is a when did have be these been I of know if formulaic we
our to and liquidity leverage a deliberate value time long-term our and a for capital in time approach, spending, account using leverage intend point is the our we in engage our taking focused position at into analysis outlook What and valuation. do do
that focused with of number bottom capital special projects, and maximizing tools is increase employees value to opportunistically remain our to on attractive available investors a The a we for unitholders. potential program our and us, distributions including buyback our value to
remarks. our prepared concludes now That
operator, can we questions. So open for up
