Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to today's conference call to discuss Crestwood Equity Partners First Quarter 2023 Financial and Operating Results.

Before we begin the call, listeners are reminded that company may make certain forward-looking statements as defined in the Securities and Exchange Act of 1934 that are based on assumptions and information currently available at the time of today's call. Please refer to the company's latest filings with the SEC for a list of risk factors that may cause actual results to differ.

Additionally, certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA, distributable cash flow and free cash flow, will be discussed. Reconciliations to the most comparable GAAP financial measures are included in the news release issued this morning.

Financial call Officer, remarks Halpin; Bob Vice and today's and Founder, and on President Executive Black. Chief Phillips; Chief us with are prepared Chairman Executive Joining Johnny Officer, President Robert

additional session Crestwood's question-and-answer of for prepared following with management are current team Additionally, available members the the analyst remarks. the

being recorded. is call Instructions] Today's [Operator

Bob At I turn will this the Phillips. time, call over to

Bob Phillips

little us discussion morning, today and how year. you, good everyone. XXXX Thank results for the quarter operator, for and discuss to positioned joining on our we're of the first Thank you rest

I'll it quarter finally, first begin by a Johnny, review few an then opening the remarks review financial and results over then Robert of turn to and in to the more quarter, operational for detail.

we M&A, of up core but a and oil-weighted extend basins. which last Crestwood went repositioned of dedicated River when those As you our portfolio in -- specifically just we detail and years the Williston, inventory are have the quarter to long-term M&A, strategic I operate reminder lot assets start, let our through our in resource me areas a the in about give we bulk Powder into a strategic producer we last as that couple that the Delaware G&P plays, reminder,

continues to and half into XXXX. start gas will on natural prices, Our in upstream consolidation. today year-over-year the decade to this remain beginning portfolio improve oversupply, of producer We customer and will the through while to throughout believe all year strong fundamentals improve due second lower

activity term forward. gas LNG we're in occur long bullish going due to on short demand We term, pullback and the a gas-directed to expect rig so in that growth prices over the

development new think the oil-weighted is with and production or disciplined some indicated we of growth, undeveloped best are the we for XX the the in the on wells portfolio connected these first G&P assets to the basins cost potential programs Crestwood that producers industry, As acreage and this near is in lowest strategically located more across becoming our in breakeven think we their by highest quarter.

So, core areas. let on me update high-level a give our you

in Arrow double XXXX volumes, new system to to the year. we year's connect up the connected last as First than last than expect wells We're Williston. slowly more we the seeing catch in

Our maintaining new have key or they workover completion and a production rigs online. Devon, producers, coming number shut-in Exxon, of Enerplus, the in active are drilling back bringing programs, weather-related back field, DUC

of activity a So, Arrow. around lot

we important acreage spot-on is in Rough and week, the XXXX Chord and city Rider the program dedicated in placed XXXX Chord's us. schedule to the Williston, system, Western On three-product-gathering of very support infrastructure development to and just is drilling project critical on this their 'XX last service

a continues do great disruptions we've And operations that in let find continuing Williston and of operating experienced our say team fourth to costs, the me job year. quarter and winter this the to weather that quarter first in synergies reducing integration finally mitigating

Now the Delaware. onto

drilling activity, CPJV, has to are delaying capacity capture The producer capital processing IP maximize available, to minimizing and supplies. us third-party well of solid and new compression integrated, fully that allowed assets Willow gathering, and to we our assets performance Delaware volumes growth continue Sendero, new or Now processing integration connects, see system our Lake rates, in efficient Orla opportunities. while

multiple dedicated for inventory markets We to very to well systems the Delaware. downstream there growth our future with competitive access have we're years of great Delaware positioned in

full utilization to organic has think XX the schedules, gas amount months record we capacity. near tight, processing places With XX processing next in-basin over a a Based the production premium become we capacity levels, significant current of on production for continuing see that gas significant of market our processing to to on expect capacity. very which hit will unutilized growth drive our

good by of by build-out utilize with effort well EPM our So, Sendero capacity last that team, new done team operations on that acquisition the processing bought extremely integration to we're CPJV our all beginning great year. we and year, gathering, last timing compression, and

the future meetings continues and recently development Powder up to ramp The continue had to Basin. look Now We've blocks. their River dedicated three they Continental bright. long-term all across to with acreage

next is gathering positioned system grow the PRB expect growth We compete continue systems. excess of to that for to the Chesapeake legacy significant not capacity developed volumes, we producer are around being see gathering, Crestwood compression supplies With that that the built to in new on very the over well in and few processing and for only Continental but years. our pre-bankruptcy,

assets quickly maintain and strong Despite we to keep assets group. pro portfolio, Stagecoach to prices better-than-expected got leverage reduce financial assets at Plus, our for in conservative the basis. continues are balance side. Palacios. our Xx the finance Tres all Barnett distribution sheet sold growth non-core in forma peer Crestwood the and JV To check, debt compared our to and low Now divested and able we to and a storage on in our our metrics interest gas in to legacy We those coverage changes back G&P Marcellus.

up declines we to continue visible continued long-term XXXX to and oil-weighted that top-tier in expect in XXXX. leverage a trade in and for that our drive basins really Crestwood, G&P was portfolio We as good growth scaled believe we with

also in the assets the using importantly, on We're the operating to continuing and, emissions leading these unit efficient Crestwood Crestwood's cost integration lower new plan. carbon per newly-acquired reduced resulting streamline assets, through management of organization

our flexibility. value on on flow after XXXX free remains cash plan and enhance execution, focused Crestwood's operations and creation, now down distributions for debt to pay to Our financial utilizing this year strategy focus while capital allocation is optimization

I start couple of growth is over a got to a 'XX. call So, We've the hand notes before volumetric on off final key that reiterate to Crestwood great I in to want systems. Robert.

back and forma. our to the very to performance transaction continue financial was market expectations closing ratio quarterly pro enhance flexibility, Our we Tres line with X.Xx leverage our much in and getting

'XX, flow asset our this busy unitholders focus the our unitholders. to on base, guidance, long-term to year deleveraging and execute paying and to sheet we're common creating on optimizing our a 'XX a excited our million out distribution by well-covered through year's priorities value free balance of of for grow EBITDA $XXX After and cash

We years investors combination how all positioned of next the well these pleased think continue total these will with to all we're the strengths areas. grow opportunity compelling across Crestwood a really the in we're represent for several to Crestwood for organization return and

the operational Robert? results. and overview, turn And the with quarter's call to that cover over Robert financial happy Johnny to and to

Robert Halpin

Bob, Thank you, everyone. and good morning,

Crestwood's am believe and start outlook that the very to the remainder with XXXX assets. of all great looks for I across As of Bob mentioned, year our strong the very the pleased timeframe

for accomplishment winter customers as to Dakota connected fantastic snowfall temperatures this line and for We a the proved systems the teams This across wells Rough Starting North first be up XX hit past schedule well in states. exceptionally cold as operations wells was during Arrow producers our our quarter, and as which challenging producer on was turned the expectations in Dakota Rider our as surrounding as Basin. and on with in North in record Williston line time. and

this turned and we customers have Also Dakota we part past year-to-date early labor been have the D&C supply and important, wells impacts has though of or in volumetric associated the ahead of the right across experience of with assets over appears mitigated faced our positive trends quarter year and chain as that warmer schedules seeing the it as QX of the line are arrived. on While successfully we some the even challenges in did year, QX planned weather have schedule. some as in first in lingering North for line weather

connections the the and connect activity remain new anticipate between Bakken on operators, Devon track The strong coming are key Energy majority Chord from to wells To of of by continue that year Energy. end, rest we XXX new and to these year-end. XXX producer across to well

Our on as as system. on the of in and our of basin, western is system Arrow growth planned Rough half the capital Rider budget, focused well spend as progressing the the expansion incremental expansions is XXXX approximately

excited third-party the western Rough set into optimistic as We growth are the potential Rider of service to bring opportunity about the Wilson Basin. dedicated in the and are our expansion we acreage

of by we XX both gathering XX% wells due Sendero volume gas Willow acquisition cubic assets across growth. day, per feet the and but over and part of our our natural volumes New and year-over-year Delaware This XXX to which with private growth and by XX% system Texas processing result Lake Mexico a quarter, year-over-year, connected or gathering Basin, XXX% drove during the our a operators, as respectively. gathering million In on volumes substantial in growing public is of Midstream, legacy also

the remains we assets balance activity new of year, end to XXX strong development connections well the our to expect of the for the through XXXX. continue For XXX and

spend finally, our our focused primarily dedicated and budget, development our Mexico remains customers. compression And system on accommodate additions from in expansions, connects, capital track XXXX of Delaware, New XX% in the on to and approximately continued well is

Powder between and to new six Basin. connect on connected the the wells River to Crestwood XXXX. We remains during moving Now quarter wells throughout first XX XX track to

basin Horse system and commercial unutilized pursuing processing on opportunities facility. in operators capitalize at the large are the we to new Additionally, Bucking volumes the with capacity actively Jackalope onto our bring

is The on Midwest deliver XX capitalize and quarter, business, from which logistics year business following of of terminals, Logistics XX divestiture, the NGL demand increased results. year million XX% the solid And a winter storage well logistics successful the commodity storage price to weather NGL and Tres earnings of Coast. assets positioned transportation this volatility optimizing NGL our and NGL in in in and finally in to East a had Storage segment, our continued constitutes segment the about response barrels

turn over financial our I'll now, Johnny to And results. call to the cover

Johnny Black

Robert. you, Thank

our in For Williston basins. million, Delaware first EBITDA quarter XXXX, operations of of increase and adjusted $XXX generated by driven a expanded of Crestwood the XX%, year-over-year the

of flow. distributable Additionally, approximately Crestwood $XXX cash delivered million

X, payable coverage the of XXXX, of Crestwood May distribution, announced a XX record quarter unitholders in of a $X.XXX approximately as of quarterly on For X.Xx. first May ratio resulting to

of results. Midstream the Arrow's proceeds $XXX first Processing lower cash the from first and quarter the offset percent EBITDA flow of assets, at full volumes impacting flat contracts. Oasis quarter Looking North commodity revenue gas processing by segment XXXX totaled to roughly reduced Gathering In incremental to million, XXXX segment, and gathering and the contribution due prices quarter of a

and South offset million, the In Marcellus the with first of assets. the assets, G&P totaled XXXX Midstream combination and by by the $XX segment Permian growth Sendero of divestitures legacy volume a an the of was quarter coupled segment, driven from XX% year-over-year. increase Segment Processing Barnett acquisitions, and growth CPJV EBITDA Gathering

totaled product XX%, driven in and winter of a increase for first Storage the quarter. increased million Logistics $XX weather EBITDA by year-over-year from In segment, quarter, first the demand the

first quarter, of Chord $XX was invested projects, the primarily during Rider from system which three the other Next, standpoint, we a side the to the a growth third capital of and investment the capital related product million system. for western parties in on total build-out continued Rough Energy of gathering

also support continues to million. the we expand from capital well producers XXXX expect invested connects growth a capital million and substantial addition, dedicated XX between investments the volume the our to Mexico. In be to full our $XXX next and year Delaware months to capacity On in over in Crestwood compression New $XXX for growth basis,

Turning billion of consolidated $XXX in revolving including leverage billion X.Xx. quarter our the $X.X outstanding, ratio ended of drawn million to Crestwood resulting debt the on a balance facility, with $X.XX credit sheet. first total

a of sale the has few approximately the first borrowing the end Crestwood for of Tres ratio Palacios, and of forma as pro weeks quarter. of available closed X.Xx ago leverage April, which now $X.X in of capacity mentioned, billion a Bob early As

focus across minimizing forward Lastly, from strategy number cash one capital assets our and the flow portfolio. maximizing free and generation financial a needs going is from standpoint, Crestwood's costs

to long We the the term. we strategy ramp after this the returns create on unitholders second deliver focused flow cash debt debt flow free of company our down and are and sheet committed cash incremental flexibility free financial allocating this believe We for all over year squarely will balance to to to outstanding. in are the reducing distributions as to XXXX, forecasting our half in remain we pay

operator, that, With to are line open for up questions. we ready the

Operator

you. Thank

comes question Scotiabank. We will of Our the Richardson proceed Tristan conducting with now a your session. line question. first be question-and-answer [Operator Instructions] Please with from

Tristan Richardson

morning, good Hey, guys.

seeing well And of of a year most XXX. to maybe share this in you're Bakken, about Rough east versus curious the west, the high the the Just just Eider activity XXX maybe versus level, kind at mix Arrow, cetera? et of where connects

Johnny Black

XX the split, Hey, say. Arrow Of from call midpoint It's it's Rough a this Rider. a question. Yes. Tristan, it XXX, is great It's roughly pretty from Johnny. and I would even XX

and well system connects roughly XX% and of connects are at on water-only those Arrow systems, kind connects well roughly three-product -- both say Rider, XX% I'd both of the systems. Arrow On those of really are across of well the Rough then both

as well as we Arrow wells Energy, activity system, the the have again, the third-party on by as by producers Enerplus. from then, then Rider well. said, also is as Devon that's connecting And on nice underpinned XTO then and Rough up nice and system, some Robert underpinned there Chord contributions And

Tristan Richardson

it, seeing Appreciate see the we Delaware times extent and XX geographically new your Bob, capacity plant full thinking you early might to infrastructure? Could online the a in in then, or capacity go offloads you existing in Delaware you're to see potential the Johnny. even to third-party about Delaware, about in months. lead about the XX future additional as little talked just coming the you're next talk over 'XX 'XX? for procurement bit And the where processing Maybe for your

Bob Phillips

handle we new Yes, we're who's question that the didn't there for much void and Tristan, what capacity. is, He's the answer it plants, going fill think what over and good who me maybe better deal make building got utilizing on us. let to time you by schedule a that ask then available incremental business a runs to how profit Diaco, and their of turn

like maybe we was evaluated plant capacity. year, delays been have full a the thought the of our That going operate. to fairly area rejiggering deal attractions lot talk we you Do felt us. soon. was short-term of I'll a for due or just one be strategy excess completions to gas There or announced whole Orla about when out good of wells better properly maybe these couple been about pushbacks remember little Sendero largely was And let Diaco has processing multi-zone the of was in last that a And We a of full good we've price, us that the drilling than lot there. deal to a target big that. buy and in a that. we

balance, we has as very new with of few this excess the that area guys capacity coming been But all have gas one on online. the production in

can but us we and only have and of unload our be. good they We get are been who not by competitors have targeted with in producers your plant, asking ask we with interconnects before us opportunities to or for many drill, as who may coming relationships offload the case

going as plans profitable we'll be last that's to there. that And dedicated dedicated onload with also have and we a well And more our not 'XX, execute capacity these on their us connect we all and out us more producers' processing largely for is. So, program will the onload year, serving operators filling capacity, with contract acreage opportunities we drilling our producers actively for current that's long-term on needs to only but that year-and-a-half. are 'XX of and up an we're than think active other production, than continue pursuing in

sense So, is out how plants Diaco, maybe see for give us who's from timing the and there, overall a processing the land we a what standpoint. of lay building the

Diaco Aviki

Yes.

us for So, into Bob's working without be on future to we are others and offloads push of going counterparties, for onloads capital details specific we're those right and out. could the what capital strategy, onloads, with doing, mitigate

contemplating The each other highlighted, spot as structure the we're helping that on. So is that's activity, with Bob production out. others,

up, And onloads that most use all We low Mexico. not explore see have may still properly. the them we down capacity as fill that producers at trigger there. help as And it in first, addition We'll in cheap a the New as their they off, offload. very come And those. in and we road public, processing ramp void up. our those option to the expand then plants. can new will plant and a interim will be And capital out when underwrite Orla or build the you then, likely can may ramp interim are We'll people we'll probably

Bob Phillips

not us us really as push right is trying about all utilization. capital to we're disciplined as Tristan, chance gives the capacity, out thing, good it And three fill in very now, well. The be up but a Yes. that's capital available to to only basins important

Tristan Richardson

you, Great. Bob, Diaco, thank guys.

Operator

you. Thank

from Our Spiro with the of comes line next question Please with Dounis proceed question. Citi. your

Unidentified Analyst

guidance Hi. scenarios. This within wide for expectations factoring for Spiro. in first and mentioned fairly Chad or the exceeded met quarter. coverage of on full I And you metrics range appears year your is believe EBITDA, the DCF range the to

guidance go to Just range position curious variables and refine EBITDA could better in be the a when that? you into what

Johnny Black

This speaking. good Johnny Hey, is morning.

good we quarter and a we after say actuals the of probably our two August would it's earnings, in revise done more year. would second extent question. range, call our into I'd where say So, quarters be half the the I second tighten to the would or that got visibility of

biggest we remainder As year, be QX online outlook of by this to will between connects far and the factor well the us timing the for of the performance the brought QX. be and the for about think

Delaware As year, which to And connected we're the we to this and press we and our basins. QX initial across XX stated expecting XXX in connect wells in then, comments, our from first our collectively expectations. Powder another quarter, QX exceeded release the River wells Williston,

coming that's the lot to So a of of on system. lot that's IP a wells volumes and

year. the warmer, that the once impact Bakken. the a have a performance gets wells through and months, of activity this for it large volume us in And will summer especially So, timing lot of the occurs

first of from our our ahead expecting feedback hold a producers winter XXXX, in Robert And the Bakken internal connected remainder of we're his estimates mentioned part. as especially to now for standpoint, trend producers, in since extreme for timing the our activity we're on that past the the through based the weather wells quarter. generally From and remarks, most

year impacting commodity factor just other the this be performance around prices. say I'd will our

have company via we of cash POP the As roughly said, XX% Delaware. Williston commodity in contracts our we prices our flow exposed have to and

crude have realized an end performance, the range. high gas prices will and or of So, low end impact on the the the financial to either

the think, year. this key So I are with for those that, factors

Unidentified Analyst

one. Okay. helpful. second a then Thanks. just That's small question, And

I to QX. cash think the to way EBITDA to Or to growth EBITDA Looking a Anything call, phraseme on the in the slide growth read quarterly thinking has QX is through million generation was flow from ramp the from million slide the looking I it (ph) significant in in Just [start] still there? deck, $XX into through there. the fourth XXXX noticed, ramp year? $XX changed quarter good rates EBITDA and exit about about believe

Johnny Black

question and to I'd because the detail great presentation. a it's in say just we it's No, outperformed first on good there quarter. the really attention

the so, still quarter quarter attributable I'd first quarter. -- our And was back QX $XX down comes number in internal the million the that February same. million little say from know, from guidance, a because the bit, we We $XX to is projections the you to outperformed first but fourth the the

Unidentified Analyst

Okay. Thanks. Makes time sense. Thanks for today. the

Operator

Thank you.

next comes Fargo. with proceed Please from line the Our question. your of Wells Ned Baramov question with

Ned Baramov

Good morning. Thanks.

Williston. back wanted Just go to to the

and the gas or processing So, first year-over-year. were you quarter line well of declined in volumes weather. gathering And impact X% X% the connects mentioned in yet

and expectations in growth review Williston XXXX the gas? the reaffirmed for Williston. You your maybe in Could targets for you for the well connect volume year crude also exiting

Johnny Black

shot a that, I'll at Ned. Yes, take

see first quarter continue The volumes get due continue the first wells bit a through been winter the fourth to have shut-in We quarter. to workover said, the extreme rigs through saw still be to unable the -- were quarter as the Wells that weather. the out to in to weather. -- impacted, from we and quarter. in Producers of first Robert through fourth

right we're to through to producers to beginning and out the pads. weather as in So, able rigs their get Bakken now see are the has quarter second volumes lift workover improved our

quarter, their and completion weather first in the timing you impact timing the not wells. as Importantly, of mentioned, that the turn-in-line did their

again, product expecting wells. about cadence wells I'd say levels I'd it say there's growth QX by we're to levels there's water-only QX from to XX% QX, three between generally XX% differs because product this of QX growth and year. to

good up again, rates exit XXXX, strong setting So, pretty for a XXXX. pretty

Bob Phillips

around roads color right the we're us Diaco, our and we on aren't -- still of activity. they're in improving, some our clear, give And chain the a just mud, even of now, what and activity now supply but give doing. got wintertime field out coming lot producer color producers' so really, the is some

Diaco Aviki

workover things lot have. think to with of I'd activity, a of of that, and shut-in That's ESPs, Ned, good on D&C level It's wells, And of large workover I down that got around getting then level on rigs online. you frac rigs. you point there's XX on question that of now. for activity. this offset it's Arrow I think and somewhere putting top we've a working production mean, cleaning number you out right two goes that a

up So, those back -- warmed are and has the up as reaffirming as right customers warms volumes levels. we up activity already -- should our as quarter their see it it come

Ned Baramov

Thanks for leverage on my second question on And targets. then, Very your is and thorough. longer-term thoughts that.

the at Or further X.Xx? are looking below target get consider stay stated point to and deleveraging your to X.Xx of would then maybe some Specifically, you year there? next you long-term

Johnny Black

X.Xx. -- great say Ned. stated We've Johnny long-term from Yes, X.Xx to again. moved This I'd question, under our target is has leverage

very We leverage about As we across excess free mentioned, target allocating cash before pay the balance get sheet that to we and closer our incremental start board. year want flow the focused this thinking to we on down. X.Xx to all are debt returns

incremental either our opportunities the 'XX to balance a unitholders. ramping capital get to opportunity XXXX, cash say, be a which of lot say in generation and in allocation free capital should I'd time business to significantly flow continue for provide value into function flow to over drive cash of onwards, or investors. our time, we really with will sheet the that we returns reduce business cost see of and the of the excess that into outlook of the drive As -- XXXX point of and at I'd

Ned Baramov

Thank you.

Operator

you. Thank

the proceed question. from Our comes Neal of your next Dingmann Truist with question Securities. with line Please

Neal Dingmann

first on for had your Good seeing the I'm decreased morning, thinking question future forward today's given the today. specifically. you're position, gentlemen. so you I hedge about And is that discuss down Can expectations your My you S&L wondering what know just earnings segment curve? how

Robert Halpin

Robert. Yes. think I is is this mean, Neal, constructive. our outlook I this year pretty

As about we kind we quarter. about million aggregate. of mentioned, as had a first the think set a up business good business curve think And that We I is year that. $XXX in to perform to

think steep of it think be hedge And a pretty in losses be challenging operating. line kind year of we and solid last should year, I So, we some back of with years will a the we normal out after environments now look some market eliminate I we of couple the experienced backwardation. into with future, as

Neal Dingmann

what just give Okay. my wondering then, on you but specifically. your the if or -- in kind play system? I'm color to system is impact the seeing year-to-date Williston Jackalope on It's Delaware, could the Certainly in And just size of there its second Powder hear. of Jackalope some maybe and good you're the you asset not activity River on on

Diaco Aviki

the represent. that to heritage Continental's of north thing connect those are results, connects we system What with actually Yes. highlight well Jackalope the is Chesapeake report asset. Neal, don't the our one I'd well under behind gathering

needed to more are become more they're (ph) soon. area, are testing attractive doing, and to basin start they And active as been producers break fantastic. even well there. they're [for what's four, costs we're laterals in running chain and really -- So, that up the here] three-mile to results have they're ramp us two quite now. drive supply rigs They've going which to going and The seeing run over results, right well that

what pleased no us, about very, what's and with private, a for really as in that we're store which They're excited longer is public, -- there. basin. partner So, having for fantastic Continental we're very a they're

Neal Dingmann

color. appreciate I the all. Thank you

Operator

Our question with with comes Instructions] the from Elvira Capital proceed you. your question. Markets. Thank line Please RBC Scotto of next [Operator

Elvira Scotto

morning, everyone. Good Hey.

us just me. what price for specifically questions POP commodity remind of of couple a is your contract? Can around you sensitivity the Just

Johnny Black

our got in the Yeah. Delaware. prices, roughly company in Hey, the is in We've commodity XX% that's presentation, Williston in This the the investor as Williston correlated and Elvira. and flow to of show Johnny. of the we that XX% XX% all Delaware, roughly cash

$X standpoint, annual on plan, about in MMBtu for sensitivity a million gas a per dollar move MMBtu I'd impact From the every prices barrel a a $XX the has million per way about about Similarly, $XX every prices or dollar side, $XX it. in million or say $XX per crude on month gas. move $XX impact about month a has per is or move annual in think bit, million plan oil little the million a on again $X a the to barrel so about

Elvira Scotto

or differences larger I you producers? mid-cap lot helpful. versus And a -- gave you. your of hearing maybe versus little you producers Thank That's type commentary, your public about bit talk any then, private know between some can a of producer smaller but you are

Diaco Aviki

This question. Diaco. Thank the you, Appreciate is Elvira.

First, in want what I highlighted to to his Bob back opening point remarks.

core versus of We significant operators. do plays. remain M&A assets with undeveloped discussion a a strategic of the created remain and strong. has lot public private on oil fundamentals And of portfolio Our oil-weighted in will resource see strong inventory

you Our than if Mewbourne. two largest Continental two, think privates about most they're are And those bigger public. and

for So, to up our we're XXX QX, which we for forecast. XXXX 'XX. not I solid a put reaffirming set we're for a us the seeing any us books year versus in XXXX, wells material in our what quarter, winter XX shape should deviation the and told mean, they

oil-weighted of typical [indiscernible] core our back the not privates are the and the again, private. of going So core basins

Elvira Scotto

Great. Thank you very much.

Bob Phillips

or of seen our companies And give way of almost you all basins, in a the Elvira, we've examples. this an small is Bob. I'll larger buying add I that almost consolidation. field of a privates, in the internal might couple consolidation

happened of out was one so over that things course, of and bankruptcy, most couple great. a to Chesapeake Continental probably us out Of ago. years bought the That was of that important

But buyout system, they before had with Bruin. Chord, in Arrow buyout We we've Devon -- on buyout the we've Enerplus Diamondback. merged I had Whiting, had mean, Rimrock,

players. schedule, They're basin wells customer understandable. in the how our financially Maybe sold. to better drill guys to impact it acreage and on it drill and that extremely the drill privates we small has complete consolidating strong we're love the on to had Private consolidation producers quality Typically, aggressive did. than drill assets. get they our complete strong. are So, as around They know the up hands wells. that's These not players, try but of the longer-term of

as great attract Same privates small some the Because in we're now. Diaco mean, thousand information drilling attention to us. impressive process these we and put out from three play. locations that said, and grow the of bigger and we've the thing got We've through time calculation drilling our additional the that long-term player, a ability for long-term systems, several and wells. the have out Delaware, going I dedicated that's by to And to we're I that and going a think are thing in inventory. reach good to they're time. And really players capture eventually,

over to overall We've So, at our got our under strength, is contract. long-term last look it right portfolio improved really great important couple producers now, we the And the producers quality financial has dramatically the years. of us. of

them with relationships in them. talk great customer multiple We We service. to We basins. provide have good

sure to with. the starting gas we're a hard in not, pushing it brush bit Not little across it's -- too we price, private customers. whereas or broad probably with you to on that with back begin good but our pull respect publics weren't do to really industry producer spot helps so, the a And the see a

the XX in But drilling see we over and don't big months. XX programs we the to any next development operate areas change on

customers got capacity the so is the great of probably no gas that is ever across right connects In processing capacity with sure everybody are in not because in now; flaring there, fact, think terms visibility, to our that we've had we're collaborating critically that's the well visibility to make we've best important that industry. these basins, we flare there, there,

helps. that Hope

Elvira Scotto

That you does. much. very Thank

Operator

like Thank over I'd you. for this to at Bob no turn back There further comments. are time. to floor closing questions the

Bob Phillips

Thanks, operator.

closed in completed a we Tres which in our early largely Just April, time with strategic point repositioning. transaction, with we're the

a top go a the really technology this contracts, but ready to our coring productibility IP areas positions acreage three big terms, great laterals. talk doing that going to operate. up laterals. some long-term processor that's Almost additional to about as of gatherer Diaco we to dedicated get and see we improved impact good to a these didn't rates going access the restructure We're good or done all we've for acreage from Williston, long-term swapping We're either three-mile think that, it in inventory in of good on have to portfolio. and are I the job or wells. two-mile thinking from improves Delaware PRB, company margins, under supplies three-mile about and and it operators

a advantage. too. think these highlighted new and us catfight next for and spot Capital still growth that in It's us. the out three to to a continue good undedicated spending, of in acreage. that Johnny going this a still important is disciplined discipline there's and basins drive did Robert with and there, our And to systems. We're gives a to G&P basins competitive incredibly capital year competitive very it We in position very business all we're do

spend cash business capital is reduce it's going that simple. increased our darn be debt. should and plan down and year-over-year, simple free pretty Our And generate should that and flow

in got the said, projects Woods. capital will great the spend drilling A the of the the 'XX be and Williston customers. development our particularly Basin, acreage of to today make lot and think the to with visibility, our new next and City year, I we available some drilled new of Williston -- 'XX Painted We've as programs

there. So, visibility great

execution think to and available the connects about minimal capacity and at it's quarter-to-quarter. the wellhead bit is drill really focused excited and capital on team expense. And maximizing be the the Now I

oil-weighted three our have like us But our any want to up we back balance a investors now, have think do all of to good was team and natural it, thank were on cored we and through knew assets, is restructuring selling shot the is line. And know that good for growth what good look process of in bank I which liquids. to in integrated to that and when them, supporting basins easy I you our our gas look first triple like we I to doing. then it market almost the to didn't probably wasn't a been period. position bought able it's assets, gas quarter the in which best, we're do position. on and the And gather potential, sheet rest didn't start track And keep back year. what

a a So, do our quarter of to coming their today, the all work to I with Thank with we're for number operator. questions. performance, analysts guys of time out. morning. pleased lot thanks thank to for and companies everybody you, us. Thanks everybody know But first this for joining really have the you

Operator

teleconference. concludes This today's

your you participation, lines You for a have may disconnect and now. wonderful day. your Thank

Crestwood Equity Partners (CEQP) 2 May 232023 Q1 Earnings call transcript