MMP - Earnings call transcript Q3 2021 | Magellan Midstream Partners, L.P.

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Operator

Greetings, and good afternoon, everyone. Welcome to the Third Quarter ‘21 Earnings Call.

During the presentation, all participants will be in listen-only mode. Afterwards, we will have a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded today, Tuesday, November 2, 2021. pleasure Executive the Officer. my Mike over now Chief Mears, is to call turn to It Please ahead, go sir.

Mike Mears

Well, hello, third our us today and thank you quarter for earnings joining for call.

materially management I by could defined Securities impact factors of our and different. statements performance remind get current statements Such the need Magellan, Commission. the outcomes based we making forward-looking future started, you Before could but that that are will Exchange judgments be as the be to actual on regarding

the own review other discussed Magellan's should and You risk SEC information performance. in factors the with in future our opinions filings forming your about

the to on quarter results pleased a quarter, Moving with our third we are reasons. few for

Magellan results strong financial all, our that of EPU generated the exceeded First quarter. significantly guidance for

of earning part expenses, favorable to system, entire to efforts. number contributed as continued volumes, related benefits our as a speed, expected our main refined distillate lower that the in products additional transportation pipeline due optimization well strong to including items were ongoing there across the demand While than

apart to as both XX our annual Magellan This well as distribution distinction the to we company, notable space. quarterly the value $XXX attractive growth also MLP maximize our to more midstream which commitment with we investors, increase as an for of announced, addition, what within increase straight cash believe sets at distribution. that for equity our valuations, repurchases and million previously quarter, marks delivered years during of on is a In be than

year I'll our from results, a questions. now Holman, third our quarter guidance before be will your to then Jeff back CFO, highlights answering discuss review for the Our financial few

Jeff Holman

Thanks, Mike.

effect related metrics, to for Earlier of an an to particular, adjustments of products pointed versus guidance fuel quarter this Overall, all were quarter and X Adjusted on Mike as this volumes in Texas third included I'm was diesel so year quarter refined Starting certain in $XXX reported quarterly quarter. refined of segment, In our DCF third margin, increases from the projects. significant in usual, revenues basis, July quarter new $XX $X.XX. products GAAP nearest third transportation making to for XX% the row. $XXX higher XX% million impact than to the expansion period. references including well unit just compared cash we've Refined million, our to outside was primarily margin benefit $X.XX, the mark-to-market The for or reductions which went the benefited And $XXX morning, up million release the free cash morning, overall out, product XXXX, that the the into I'll higher our during mention increase than on the net $XXX XXXX, nearly as we've earnings increase, pandemic-driven of XXXX flow average this in for volumes of million for of of additional on and Refined operating quarter, compared from the income free the these per continued few benefited description with going million, the metrics commodity exhibits from quarterly period. as which, was our second cash reconcile non-GAAP record due a exceeded contributions economic of earnings of $XX me and relative highlights let tariff to our for results. DCF, in the operating earnings experienced after of from and we quarter quarter XXXX, the refined to their that a increases available absolute First, to quarter travel, activity is from measures. drilling recovery flow. issued year. distributions distributable on excludes we in prior quarter be touch the XXXX. products for as cash also Free XXXX, variances ramp resulting in segment. product approximately in continue was release the business X% A flow million. flow detailed X% quarter-over-quarter financial

than increase As rates. of and our a a average reminder, our this an X% competitive X.X% consisted decrease increase to of index rates, to more X%

on quarter Turning of quarter so year, and segment consistent $XXX operating the with a margin approximately in XXXX, theme guidance. versus the behind as barrels contract the from to lower per XX% XXX,XXX year. crude was oil prior about a with down Volumes the remaining per original approximately XXXX, day result throughout assumptions we've business, barrels third in generally of XXX,XXX averaging Longhorn our be to million, the continue the with late explanations given our expirations day third

is on volume affiliate the of continued While the more differential between the our of on marketing related in earning which well tariff the realized margin we Houston, offset activities had Permian decline previous below contracts. activities we is expired much contract, to reflective Basin those the been currently prevailing the to the

Volumes benefited lower And This due recur system year-over-year and in was to versus distribution utilization, demand by to average prior offset increased primarily in XXXX our rate so driven by realized that didn't average the our revenue year increase ‘XX. refinery period period, rate, due recovery. higher per on barrel declined. deficiency primarily Houston volume

So longer we significantly between distribution volumes means volumes just see at reported that in Similarly declined impact those in their as move because didn't Houston benefit Longhorn year on shipments, market current period greater and on much system often rates quarters, although a which impact lower rates is the primarily from contango quarter, haul reminder, volumes our to volatility strong that our XXXX. drove the last storage rate revenues storage average their revenues. actual and than

due shipments of current continued in day which pricing a our Moving third the the per ventures, primarily to quarter is per to in BridgeTex ‘XX, approximately barrels differentials. reflective XXXX, over just uncommitted unfavorable were to XXX,XXX barrels on quarter, compared joint XXX,XXX of decrease volumes in day in

While a this expansion as result in Saddlehorn per barrels day, year. increased completed the than earlier nearly XXX,XXX to per XXX,XXX XXXX, compared of volumes primarily more barrels to day project

crude line the to with So, benefits reap to from counterparties, our customers continue with commitments in creditworthy ship long haul their contracts. of long-term we oil pipelines, our continue respect as to

Just well higher due a reduced primarily interest net results few increased debt other while comp quick notes between as a strong higher of periods, year-over-year as a lower outstanding. incentive our on our result G&A expense year-to-date, as spending, as expansion capitalized increased interest primarily to expense capital result of costs, reflecting results,

billion, long-term rate on interest September debt weighted $X.X debt the average of of XX, with As a of face value X.X%. that about our was

previously well As assets sale. primarily in these a commodity products our those the margins, planned the as are of slightly results just There's are held of our which independent the these classified of results that classified to due to as due longer between absence reminder, increase also Fee-based declined improved revenues depreciation, assets pending from for for which now periods, no assets as is as operations. now of were the operations assets, the recorded, year-over-year. segment, sale discontinued included terminals,

commodity to operating sensitive noted period from previously, these comes significant period. be activities from can the of portion margin from we've As assets a volatile that

liquidity. allocations, to balance on and sheet metrics capital Moving

program XX. million credit First, available facility billion September outstanding mid-XXXX, in continue to commercial $XXX paper a we to terms have with us on at of liquidity, our of through $X

Additionally, our isn't next until maturity bond XXXX.

Pasadena this Our of the times earlier X.X the end quarter our as leverage from we in incorporates was which ratio purposes, year. of gain interest for at part realized approximately the sale compliance the

Excluding that gain, approximately leverage would X.XX been times. have

small in million our focused capital growth Of leverage stewardship public invested on touch history the equity during disciplined historically returns equity of as Throughout execution repurchases including million metrics an units program $XXX during repurchased buyback we've will distribution to these us while executed course, we reduction reflected been an leading being XX-years, price program. cumulative unit total the which last average straight is in sector $X and distributions of zero best-in-class which despite those year the complete our The brings a equals capital million currently total XX.X increase factor before during impact incorporate forward, company, $XXX decision quarter, reinstate our the XXXX, quarter. uninterrupted credit year projects, repurchases time has XX projects or completed authorized distribution for I'll That a metrics capital of was term. of our all The today the growth repurchased outstanding. million in of which the The year the units good quarter, about delivering $XX.XX three capital. board repurchases to intervening years $XXX strikingly, stewards of to billion $XXX That is approximately our our going allocation. brings of always on resulting growth. from we previously important the our ongoing million units on, and since at spending end in X.X% on and units initial in issuances total over the increase opportunistic recently most reflected coverage year unit per programs the this distribution that of by

proceeds and With years, account board free three that the authorized million cash of our additional and coming $XXX pending taking independent million over next $XXX the flow into from our program, expectation initial sale, generation expected years. terminal has in completion an of continued repurchases the our

timing focused of note, market regulatory equity and the to will delivering and the call remain legal investors our over disciplined spending, balance times the repurchases. as from and long-term continue including timing, capital distributions, expected we and note course, repurchases I'll governmental X are to back well unit through capital standing committed on I'll And a conditions review cash sheet trading of expansion independent Of and limit, our cash on to price volume our we process. combination, to that the In price number particular, also reiterate, we sale depend subject as remain always careful Mike. as long any for But, that, value remain a flow equity. investments, terminal leverage of to available, the factors, with turn as we the metrics, the requirements, of proceeds that free

Mike Mears

financial Refined to now Thanks, of previous guidance, expected we initially bit the forecast, Jeff. primarily quarter. expect year. our is expected products higher actually during million higher is for than and stronger the Concerning overall $XX our third than XXXX, be which a generate than DCF billion trending continues $X.X demand solid to on performance we based for

refined XXXX products forecast year latest higher normal XXXX. of X% than more be year full XX% of Our shipments expects to or the levels,

to expansion has year the also progressed. ramp on Houston-to-Hearne distillate benefit from continue We stronger project. demand final East And seen as fuel we've and our the commitment aviation

liquids blending to demand. Our the and We've impact full gallon pandemic-related nearly in assume margins $X.XX of year. fourth guidance gas quarter, disruptions for average additional expecting forward the the continues that our now had for XX% are per range no

but than blending you hedged As know last of year, quite are we of XXXX as prices to our XXXX have higher an margin especially earlier commodity Like for be still volatile, activity. spring $X.XX. continue to look average this we significantly in XX% out quarter, this

at of times excess years Following activity approach, to than this to next OF typical liquid season. foreseeable to fall for don't our the at continue the for spring, to while once payments X.X more our begin we $XXX for annual on blending expect would the coverage XXXX expect coverage we billion times, to distribution distribution do guidance our for XXXX, provide above Based more million distribution X.X we of DCF hedging for future. estimate translates point, we approximately plan least of And the future become $X.X year. fall generate which markets target cash

continue await sale As a June. we regulatory that back we pending independent our to for quick of announced reminder, the terminals in approval

to risk capabilities, not higher While, capital, multiple construction spend questions, occur XXXX XXXX, to at expected least it’s million X projects. projects projects I increase guidance. is than the XXXX, are we reasonable and oil exact Considering it's Cushing think in is line last in for expect Concerning with due in very current responsive quarter, These low to timing have X the to slate been $XX new terminal. assume to already consistent our to including $XX now expansion November, which EBITDA our addition and complete we These clear. closing million will to million a crude FTCs $XX closing are our of yet blending returns few enhance of in investments the of liquids to times generate our connectivity our estimates smaller and to threshold. with gas

manner, disciplined opportunities new to to in remain projects and of returns offering assess will service to size working expand come continuously are our fruition. similar optimistic We a additional that and

of help open $XX commitments, potential refined opportunities season our launch to nearly meet basis has yet has customer been full million. products sufficient Colorado For small of this plan but that a project than consistent Kansas need. near at pipeline be The line expansion estimates, future spending If be into for not per continues considering. included warranted day our type X,XXX refined to you products, feel a by barrels less we a from State to achieved the potential been expansion operating in the in Colorado. and for capacity instance, could This an short petroleum gives of are for we of on our

our Magellan’s investments repurchases. attractive priorities capital remain always, to committed discipline strength. equity and be we growth capital long balance and capital And returns, to continue with allocation standing As sheet

close, I the to I'd briefly of like hit on Before inflation. topic

the the watching they through year-to-date it increased in Producer those more know by Price than Index, September. change For X.X% has

As of PPI. follow refined you products recall, tariffs change FERC the that a linked indexation the in to our is portion methodology

pressures, historically been and July most over past, a year. months By so the year. the again those X% of will rates the to increasing index, have coming subject Concerning which the over likely the ensure competitive. preparing consistent market generally so changed rates are around to changes X higher comprise range these the be competitive remain with than of in base upcoming analysis have We'll the in those rates less has the our next XX% the same years, determine in shipments need that X% last to detailed few timeframe. our competitive rates index we the we corresponding change annual rates markets been our We over our in appropriate markets, on definition, to to do

operating effort. environment nearly question as to pricing mitigated see marginally have costs XX% of component to going power, is next questions. and about have of related into cost is pressure of into at we will our ongoing integrity our the announce our our approximately But that is power the we people, structure the XXXX, forward the the cost. not it and represents cost total year call now open seen current how by costs Most likely same our reminder, most course, power is been as XX% power which our next costs? we Of increases that we'll our a that optimization be cost that this inflationary actual impacting XXXX As guidance, year. will incorporated of move To-date, spending. will concludes likely The to be is Operator, on our I PPI prepared impacted increase. remarks. level the higher are

Operator

Barclays. [Operator Instructions] comes ahead. question very our Chen Please Theresa much. you Thank And first with from go

Theresa Chen

questions. Hi, taking my thanks for

temporary pull you effects, forward of touch distillate to this forward? related season? this is do seeing part on going system. as expect to continue such Or, to you're First, harvest I'd like the Mike, across in your strength the

Mike Mears

third Well, demand. quarter say I markets. markets, demand in been it's wouldn't regards the distillate across and seen in the sectors. mean, the seen the been due we've with is our been to we've strong I Texas in markets. in strong to particular, think high that West I in strong all what agricultural It's unusually transportation the in it's agricultural growing strength

strength it's I for fuel. entire think, spectrum points of across demand just diesel a representation the

Theresa Chen

your what as the as in there market mid-con, the and in in as your terms the should to goes? from we're Got just of far backwardation product your typically are as refined crew in draws perspective as Cushing, seeing exposure given on are in understand And of unique storage your immune tie-ins on and it. the that terms far level multiyear think well as system contracts near-term volatility. terms for But inventories expectations and your recontracting how And here? of we of what about swath

Mike Mears

Well, just customers are for operational impacted. of as operational don't facility, there storage focus in those it's the in mean we so are the storage tried who to contracts there really taking for our need purposes. have purposes, doesn't but some that for less have trading Cushing majority That customers our really we purposes,

rephrase of opportunities curve. for their less Cushing, storage me actually, that impacted the looking And Let that, need in that our by is structure the Cushing. we're even emphasize strengthen at the and will profile in more

our that So offering. that when that's expecting be to you price been renewals at given come our played it's relatively strategy somewhat what revenue Cushing to stable. all this our the the mean market still are is out point of tenure sensitive contract well. It fairly But contracts, in versus doesn't time, along, we're you

in as physical think in inventories particular, the go. the inventories stable that market. in short-term are know projection what as Cushing, time a I our that change that, the things working dramatically surprising in that I some price inventories a right very now, backward don't fact far we're is curve can low as it's and you there's potential we physical so relatively low a view that dated this for to As of have landfills. at for with relation filled, on view upside, But with the pipelines point being of don't I moves. worth, have that crude being some the with actual Cushing position some Cushing there's moves on. And structure demand

Theresa Chen

you. Thank

Operator

Credit ahead. Suisse. Please Our question go next Spiro is from Dounis,

Spiro Dounis

that. slack ask Mike. hasn't pandemic, that wanted have you still really rebounded from system yet you Hey, guys in from potential other I fully or the really to related any about the Hey, might Jeff. fallout any guys

an the actually jet over normal. to years. kind to the few Obviously, fuel like back a areas sense one could that business outperform of here of get isn't seems next obvious trying Just what for

just MMP I'm you all in other to curious, a when whole these think areas the earnings and normal there, power sort as look do base get how about asset you of So as back of place, at as the well? sort

Mike Mears

I still thing fuel that and diesel getting metropolitan regards all just the from drivers volumes. we've gasoline that that recovered rebounded volumes XXXX the fact refined are businesses our are still to pandemic. we're not and seeing to yet. But as well the rebounding, behind our And, but is still Well, the mind first the comes fuel that as the products business, with attributed think, have jet there lagging primarily fast, the in metropolitan mainly as not back fast. I rebounding the to They're aren’t think areas, areas they're that's office again, very in

Now, permanent or here to room I cycle still Delta there's that's where think side. recover don't know spiked. gasoline been But on the the We've not. a if I through variant

So upside, third in demand. gasoline our quarter. it's recovery get slowed that work we're down But return that potential still just hopefully, we probably so on process the levels to XXXX back that past there's to think and to

If at course, crude you hampered system a crude Permian. have that our that's of particularly we by over look the the of out we’re oil built, fact business,

upon are say That's the think improvement dependent happen, necessarily don't potential And there's the or to production in predictable. I things probably in our to some there, timing upside. that in have combination a is that, recovery and over little will that's or be likely crude But repurposing increased I in next expectation oil going to of or going happen. upside business. XX-months, to of is the We those the but pipes that mean when So, going less year a that be the it's on dependent Permian, Permian. time,

Spiro Dounis

Got it.

Mike Mears

the my got Those first I thing, on mind. are

Spiro Dounis

helpful. Yeah, that, that's Thanks Mike. for

about growth thinking just projects next question, for year. Second

some your I bit. the you're you're lifted said optimistic little you about having think discussions with You customers. know, I amount by

any so the going ready a know, to sense of kind customers I of timing now budget curious, move And you just and do them. when holding for through what's from forward we're in the of terms lot on season them project have be of up. kind they'd with

around say lot items just to as you'll sort be uncertainty in the it out decisions is in are? Is come any that to guidance gating a what better the year, CapEx? safe so, position preventing of provide sort of you Washington next some and to And guide of made be of curious

Mike Mears

in isn’t I to in of long period have they're that say we're Washington, in projects are first a the supply-driven. all, are demand cases, of have going think some uncertainty very of Well, mean, happening looking really I'd in impacting continue the we to things types and/or really The a I over impact fundamentally time. at. view Washington demand an

these mindful payouts to not projects so, of for that looking make and And making returns, that that we're we're we're investments strong have when XX-year sense.

to looking and majority what's meet and really that The sure And at number Washington shippers, So their happening in of of that get on thresholds. are what can just projects to to negotiations, find we're is needs make return our impacting mutually it. we're to meet isn't optimistic we there. us projects to going acceptable a we're

clarity looking the and off. for that projects development that's Because I some capital. on is think pipeline, would the at to I year thumb, for dollar a speak, that the to have we've a the say But what just I that of that's have always in to that's will drop clarity foreseeable XXXX obviously, in project on haven't new number. though development. commit more future, saying projects $XXX to expectation up, probably potential so it’s reasonable million kind a clear. January. range I our yet, we're just I come that but even quite probably and been XXX% more XXXX, going true this we we'll signed expansion in be of ongoing, time say, for rule it nature of be And we'll will January, are on that wouldn't negotiations say think these have projects but we'll that

Spiro Dounis

Appreciate time, the for Thanks Great. it. Mike. all

Mike Mears

Sure.

Operator

from Research. go And the Wolfe ahead. with Stanley question is Keith next Please

Keith Stanley

to start afternoon. good buybacks. I wanted Hi, on

due looks was it I And and so quarter the to September, that presume. the in $XXX million like August blackout, and third earnings all for

you earlier faster about door, the why in the have And we tied on how should to pace terminal sale when QX hopefully, then, else? in the market have commentary forward, having Pasadena in much it year. soon? than coming looking particularly Was a or at you buybacks proceeds, pretty conditions any anything Southeast the buyback proceeds Just think

Jeff Holman

-- of reason list Sure. the factors change the pace into different that lot The out that, for we to a of or in going at all come the part can is different play ones influence factors and times.

parts we've, disclosed, tied of months for affected example, So first information, different non-public were lots of we of ability with time. our to six at up the all year. And that buybacks do

was factor, valuation are as a But Outlook factors matters matters for different example. leveraging different that So as in for well. times, there well. liquidity

move quarter lined for in up be really front. on quickly without things So and opportunistic, any us to constraints any this

you we be to it go of that's factors. We're depend as going on opportunistic all And continue those So what same to kinds forward. will saw.

on an But authorization. the keeping So an eye kinds some wait in. We'll pace same don't proceeds on to of leverage. on be execute commence the new come before We'll terminal keeping those be things. of them depend in come eye we to on the for to proceeds have independent could when necessarily

So to has on those before. the factors, all as it going same it's just depend

Keith Stanley

Great, thanks.

one. capital allocation And sorry, another

Just increase. the X% around the process more curious thought distribution

increase. target, it I significant. on you above kind But you annual moving which process? guess, bought your about, just of becoming is other an mean, you're think out is changes you And hand, how distribution coverage how the how the to about how and how And one amount forward. the much think really on So paid coverage? talk I you've Is dollar relationship back with buybacks? increases back, that being of distribution distributions with still stock declining, even The with hand,

Mike Mears

And, there's a Well, way just of it works. all there. say and that's not we stick in there's to I'd the moving like formula parts a decision, but a obviously lot numbers the make

is look if for year, bought growth forward. obviously, certainty we the plan over to the can value mentioned, could that quarter. say business half, happened at believe to we how And last all we the have the a primary significant cash much we've distribution, reasons year with they be in and It every excess And coverage distribution. equity. can't slow. back of increased It's, the be ratio. being about feel amount buy equity, what's we course the going That to we Our value that of But buy use said, a that going lumpy. we're Jeff you in maybe back some good back investors our

to by increase and portion buyback by that So, we're going we this be quarter a to even weighted though on a that took continue to plan allocate did that coverage, equity to to make quarter. going quarterly again, it as basis. balanced much But those equity should our every some of coverage us. be towards We're going was there repurchases. growth say quarter, I'd to really that's don't distribution it you that's growth. some that somewhat I over a what's take heavily a think we it's reasonable analysis But balanced, amount more to to wasn't decisions always will approach distribution of But I happen assume going think if allocated on that we execute time. efficiently, quarter

Keith Stanley

Thank helpful. That's you.

Operator

UBS. And the go from next Please Shneur is question ahead. Gershuni,

Shneur Gershuni

can Good afternoon, I if a everyone. Spiro, Keith. from was wondering revisit few one from I one questions,

XXXX a Just and so see about or excluding for it your But starting rather? question you ask if were the crude business, Is it challenges back us? you there differently, If we volumes little you XXXX forth. refined levels, gasoline I the where in characterize And, assuming what so, levels? product see know because do what can pipelines to recovery of the can within system? there you the leverage pipelines, upside in from help potential operating with in are Spiro’s kind system

Mike Mears

characterize to significant are yes. that us. opportunities Well, would I upside as available

system, general, product So not look if it's capacity. in at you our at

We some exceptions. have

happens country, area, for earlier about really But rest in range is looking they the have fastest-growing mentioned Texas But us. in other Texas, And if and growth at Denver we're Fort to in that. any investment. you access areas which when things we -- Dallas Texas, Worth to Arizona, at the the upsides at system, our west. improve and speaking we're demand in can Dallas, markets some the some also capacity. I further logistics as to market, well without there of plenty to one especially are that And example, of to at the capacity there about provide we without look you particular, capital West that accommodate are around think Mexico the For front be if looking things of

opportunities there to have expand We also. capacity

are upsides system. around our there So

The over because this connected for go net reasonable closure system a I that we typically it's basically creates capacity positive, speaking rationalization. other a that's the we you half fill situated to have since And refinery the creating. is hole have five to a the thing incremental transportation ideally that if XX-years, opportunities or through a refinery company it energy refining country. we're I've pipeline is for that that that cycle And assume mentioned next transition mentioned, in an to the more as before

supply not in way. constrained we're any so, And

higher removed fill supply. And in we've if is that sufficient we market, So a which got certain hole sufficient plenty barrels in a over have longer most cases, a with haul, close typically capacity to A of refinery tariff.

around I we forward have system. do think So, going leverage product operating refined our

Shneur Gershuni

response question strategy. a The payout I on the think it's color the about ratio, I very And there, it your the appreciate maybe appreciated good to prior how respect or to coverage thorough. with Really buybacks. ratio follow-up improves.

and so buying is was appropriate stock door, the it? of you wait felt to the from getting price way? you the at the ratio actually leverage being lumpy if fact also the right to need forward feel it your blackout of kind you be that, is mentioned that the things periods Would EBITDA roll You can said, now improved. inflected With just given different cash do trending an just that that it should upcoming and occur. and the your is leverage willing due be ratios rising and your just sale ahead kind market ahead times that of be asset to of you until in proceeds that Or, in

Jeff Holman

our we proceeds, go could of We to no, little have room we allows back and million there's with XXX unit as extent bought X that far haven't wait No, that and come of to a I in. as can't go sales, the EBITDA times we But mean don't some allows. when bit we've as units, And obviously. sales. had of to for we million demonstrated the XXX asset leverage already of proceeds

already without we've that same during done and excess buybacks flow So that cash period. with

in example, we or more had So bought cash an excess asset flow. for we back than XXXX, sales

me. excuse oh cash So, flow, free

what that. be continue that not with consistently we're we're And will going manage be conservatively, an careful, leverage to times we we've because eye discussed, careful that limited X The we'll be on that keeping limit. we the in we've a So, a done that and by have limit to past.

Shneur Gershuni

Thank perfect. appreciate very the today. Really Alright, you you. much. color Thank

Operator

from Our go next Michael Please is Lapides, question Goldman Sachs. Instructions] [Operator ahead.

Michael Lapides

Hey, guys, for thanks taking question. my

happen little in that'll Can on about carefree about or a on you your market year. real little and of color updates touched rates, are sets please? that next competitive those quick, some the comments of middle Just more you give a Mike, bit

Mike Mears

Well, I deemed our competitive. argue all are markets fact markets would have these be indexed been mean, And think, means they're competitive. I of they're But again, to I that competitive. not the that

cases, have pipelines in multiple We in most competing these markets.

that, be. competitive any like be aware when of would just to increasing need we're market prices, we So

have higher the We tariffs those few markets raising by for been the than the years. in last index

deliberate be need evaluate to than just means what's already And on every they're is position. market going how we are So average, and that higher to practice, we competitive our what markets. that. about that We in index very address

much what And going their up some how wind it. raise do that to know range, reasonable we'll to we is. competitor very the actually is what But a where to our average until till the they is know we'll it But, going may of we know guesses. tariffs. much. not course, is And have closer don't we'll what likely We're won't through make I some know is don't we get we have Of will not those markets, be, actual can PPI we raise markets it have we what will may And the yet. some process. that raise

Michael Lapides

it. Got

X% a of to that maybe customers? you Okay. be growth at you next X% little bit year-over-year the kind year, on But are hinting won't rate the competitive

Mike Mears

tell process. will until that that through be today, a that I'm It's knowing you can't we to maybe the here but the won't we number, at I not going certain No, can be. all. evaluation. I but be, tell X%, I'm more sitting not go I'm of you reasonable indicating product we the X% And or

Michael Lapides

Got Mike. it. you, appreciated. Much Thank

Mike Mears

Sure.

Operator

for gentlemen, all have. to turn back it questions we those are And I’ll closing remarks. you the

Mike Mears

and right. Well, you your appreciate We'll time you thank in time. Magellan. everyone's All talk to interest next today, we for

Operator

participation. and Ladies today. a rest Have your day. our call you thank gentlemen, great of concludes We all for for that your

line. your disconnect may You

Magellan Midstream Partners (MMP) 2 Nov 212021 Q3 Earnings call transcript