ENLK - Earnings call transcript Q3 2017 | EnLink Midstream Partners LP

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Operator

Ladies and gentlemen thank you for standing by. Welcome to the EnLink Midstream’s Third Quarter 2017 Earnings Call. All participants will be in a listen only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this call is being recorded today, Wednesday November 1, 2017 at 10:00 AM Eastern Time. to of meeting ahead. Investor like Walsh, to now President Vice Relations, would turn over the Kate I Please go

Kate Walsh

you Business; of Executive Midstream's President everyone. today morning, today are Participating and for Chairman and Chief Crude call Garberding, and Mac Thank us and President Davis, Processing Hummel, joining Chief on of Thank the and to Mike quarter President Development. third Natural Gathering you Lamb, EnLink Barry XXXX Officer; of results. discuss and Financial Officer; Ben Condensate the Steve Vice Executive Transportation Gas Hoppe, Liquids the President Gas Corporate Business; good

we As website. report release Relations the have yesterday earnings our you release XX-Q to earnings portion morning. with of our SEC Form we saw, and earlier the filed call, To Investor posted and issued our operations our this today's accompany

should detail and provides predictions, obligation website. update any a today’s about also including we report will support operations the statements this Our in with of in results after from be Shortly you future, may today’s or that call, is will any materially forward-looking these remind the meaning statements or no of laws. replay the differ expectations our call what in available forward-looking statements. discussion. described Actual make we made inline webcast I within undertake Federal statements, Securities considered revise to our

to is differ Additional information in what results our forward-looking that from available actual factors in statement filings. SEC on cause could the subscribed is

for release. in encourage Garberding, and as that, reconciliations the period. the remainder to non-GAAP now open of definitions I disclosures measures structure you you cautionary under the of like made filings, to The find Davis, a well specifically to Mike call and these call question-and-answer with certain With over by to We in comparable Factors. our of start review measures measures will Davis. call then Risk Barry financial discuss those heading as leave our turn these the and non-GAAP earnings prepared remarks and be Barry will GAAP measures other the the statements We would to SEC of will

Barry Davis

Kate you XXXX about of focused places, in partners. today. the all joining everyone. us the and Thank Thank good with EnLink the you is right for execution At all plan, morning right right

at continued back look of of third we our third the $XXX $XXX the As financial the end which $XXX adjusted around of we is for operational of strong an produced last plan, EnLink high quarter range results. ENLK year, million this the at million and achieved quarter. to solid EBITDA which quarter, execution provided million

shadow pleased be impact. And were very of Overall three for for financial want a we caused the across are Huston sustain to or the to XXXX report people fortunate cast the I highlight ramp there The vast volume the as The that expected events well for communities. are the XXXX. energy parts the Hurricane majority to that and and realizing no will the as operational industry, are and Harvey Gulf back We earnings and of half that homes Coast. U.S. of will countless Enlink destruction we the impacts hurricane. over storm the significant was things from historic

demand, foremost, our and challenges for admirably and throughout to industry. volatility to up respond First employees prepare reaped our exceptionally performed Harvey and stepped and operational the

system, well successfully disruptions. integrated allowed as as navigate our employees, Our these to us

only Enlink, communities not we thankful As to our proud and surrounding responded a also how and management neighbors. but team help team are of

the back and or for the were to third, significant results. footprint did and to following thus throughput the one today swiftly And our storm system, impacts are the we across and Second, operational cause our time running operations on quarter our and plan overall of volumes storm quarter impacts safely immaterial the financial full-year and on on third normal reaffirming adjusted producer not business we $XXX of the $XXX And our EBITDA Based rate fourth guidance through activity EBITDA the year-to-date, XXXX $XXX million volume strong levels are and annualized million to results full million. October, year. we to our adjusted exit and are reaffirming of million. $XXX fourth we��ve also quarter seen were

environment. flows rate prime attractive from increase Our a from which growth, the make. for ours underpins range very particularly Increasing bound we decisions fourth XX% growth quarter of objective assets represents strong in quality high the for Enlink. drives cash our is strength quarter a is stability of flow XXXX, commodity exit cash adjusted Strong fourth volume today’s growth EBITDA and and

holders. are and throughout unit And building performance today. our achieving this returning of XXXX We in execution and the is to value goal business

we we very value. holder here and have As sit path to clear in continuing a today, unit return forward build

And forward around path advantage centered our to strong growing strategies us continue flows our enable plan. all from our is Our core executing is seven strategically these strategies, cash seven right within areas. will This positions. generating growth

Oklahoma. Our all have position our stack maximizing We the biggest area of seven producers feeding in strategies the the start top with we growth core strategic hydrocarbons system. believe strategic our in with into the position in

and XX its tied well direct to in best-in-class our year-to-date. Devon's a And QX. be is is underway, in about multi-zone advanced in announcement. wells. our our to new recent and excited Showboat Meramec during is facilities alone of production impressive this Our our processing see new, There tie and XX% lot expected they momentum Devon gas stack Oklahoma team result are project wells XX expansion opportunities we has decades. by QX in is for

in million plant expected XXXX. is called be feet in a operational Our QX stack Thunderbird day to next the which XXX cubic is

XX is strategy assets and second Basin Our Midland our increase utilization to dedicated XXX,XXX acres. of through customers our

and customers best-in-basin tier to Diamondback, added have recently roster. Permian like top Chevron RSV, We our partially and have

growth sustained, today. our investing experiencing and and producer customers Our platform are steady consistently in reliably programs their production are in we

footprint. The continue following Delaware initial growth core us Our in for acquisition a is Lobo third Delaware our is to strategy ago years short growth investment building two Basin of Basin. our basin the scale the with

a of with million announcement day III scale cubic we feet plant expansion, XXX the well gas building our With Delaware. in underway the are Lobo

XXXX Lobo We with Oklahoma, XXX will the growth demand-driven Delaware expansion, million XXXX. hydrocarbons Expansion and Gulf the supply demand basins we into to Coast. our basins will Oklahoma the our end directly NGL day III regions along in connecting The translates in platform our fourth from in supply our gas feet strategy. that Permian cubic we Gulf Today Delaware are in the by capacity of a our of of growth Coast. our with processing from exit the Midland and double capacity

fee Our points the goal the along chain. the Gulf NGL value wellhead our Coast the value is expand to expand of chain multiple and scale from capture to

sales continue along options full Gulf we'll distribution direct product capacity and to our Cajun right determine with the full. growth fractionation, barrels of increasing And capacity evaluating we're volumes our in reach that and Sibon approximately operations optimize transportation, part We actively forward, Going in option has our to greater our connectivity A of to from which key XXXX. day the Cajun NGL storage per Coast forecast Coast revenues Gulf now. increasing to revenue. XXX,XXX network, once will NGL Sibon pipeline NGL is best our strategy is

first among connectivity network because incremental excellent gas energy our the industries. are phase of dominated well-positioned our but the Gulf franchise nation, LNG home the key terminal. has highest of represent ranks scale not in next Coast. our capturing true chemical, network export current which petroleum delivery across Louisiana. points strategy is is opportunities could growth natural fifth to energy exports, And large an industrial into and by serving LNG with Louisiana, Louisiana's demand, to total strategy. growth And also consumption a for gas step gas sector in their of number the LNG this only change are significant Our largely very serve gas Louisiana a also assets intensive

Louisiana it’s This strategy effective; very pipeline two, infrastructure redundant on NGL business the Our crude has into number Louisiana to cost our exciting two is crude. repurpose fronts. and or to gas growth sixth our around expand into one, Number potential centers in opportunity strategy it service.

The lot crude St. in hub We work and left this one a pipeline could into of this being Oklahoma the Louisiana’s key pipelines point a strategic access are be moving Cushing, of opportunity. access supply There to opportunity, several done directly James. potential connect with evaluating and well underway joint parts are points, could with repurposed entering a lot into have venture. evaluating potentially including

the is been Barnett of Today Shale. Our are our future since in to more about the EnLink. we participate inception proactively the Barnett position of redevelopment strategy than seventh the excited in we have the of growth

seeing potential spots bright We are emerge. definitely

our haven't since to two one that Over quarters the on acreage dedicated the footprint Barnett in we regularly two seen on and activity our we've past rigs operating seen mid-XXXX.

properties drilling is due leverage this by of recently with drilling submitted Johnson wells Devon Devon the Devon's the quarter Devon Another is and are well in announced six-well, XXXX. new in results to is last successful an bright expanding improved and sale spot progressing activity. completion us County the be initial during Barnett with for six fourth that they also quarter. to additional refrac in program horizontal quarter pilot the wells six the here expected the its fourth to quarter. technology expects bids of fourth

strategies. about strategies. excited And potential for seven of would tell, recap encourage refer can our our you of seven we you the the to I on As operations our growth really to compelling our website report are growth

definitely will the I'll house. largely It's call over We but lot it's the have to With it's and a straightforward, our Mike. to path clear. in accomplish that in control turn our is

Mike Garberding

morning everyone. Thanks Good Barry.

totalled the converting quarter second items. as of compared even made As achieving representing million million. $XXX we year of have our quarter. pleased million third end and net Adjusted enables $XX and to XX% this Barry third this our of growth issuance. just our approximately XXXX. Series Preferred quarter greater around for the the the times with year-over-year, adjusted provided C coverage the the than us EBITDA and results highlighted was $XXX guidance $XXX under cash very after adjusting quarter, one onetime this business operational pay quarter continued tremendous was to progress with around this for the million to to EBITDA B are range has The Series financial quarter full ENLK and in Distribution high quarter of progress at distributions the we around the year confidence midpoint This for last

million We we fourth had also flows million. have expected. is business $XXX confidence adjusted ENLK cash annualized as The driving the quarter meeting of $XXX between in and volume for growth EBITDA in our exit rate

the direct than volume Central year. from Oklahoma Distribution million, around clearly This STACK $XX with cash represents business all in been in around our for $X.X of available expenses. this distribution a and areas. right X.XX cash netted approximately XX% the ENLC’s includes This quarter it strong quarter growth hundred in starts this with core growth line the from for related $X.X the is last flow year-over-year which Central assumed the for continues from amount coverage with percent ENLC of quarter-over-quarter in assets STACK available and in third being and the quarter. Oklahoma. through is increase is in a the for Therefore times a million indirect EnLink achieved greater flow This investment contribution contribution the in coverage $XX.X EnLink expectations the spaces seen is quarter. ENLK The right million places our driven with strength in by ENLC cash has And partners. for with growth to time X% be to distribution Oklahoma assets. million cash

at in third look from we've XX% you than XX% sequential and growth of processing If last growth gas growth experienced quarter more volumes, the year.

XXX XXX year-to-date rigs have our miles Oklahoma, connected Central wells and pipe systems. have XX dedicated on drilling in acreage active constructed to have We of

this to ago. III our uncompleted in as acreage around year, We’re also increase processing our very to dedications. years late and have second this we our quarter, demonstrate to into The to seen those inventory with with of a plant on which the many growth. Delaware drilling and quarter day, Midland gas-processing budget complete. completing a Basin Basin wells around third one XX pattern on a BCF on on The new bring fourth a of Midland track increase quarter Oklahoma wells during and rigs will XX% has have Basin year-over-year the attractive continued growth done growth also gathering rig In in the well fantastic We XXX% partners has volumes to Permian as Chisholm a volume activity. wells provide running producer our XX line acreage XX our two job representing gas exited year from consistent

We are six newly serve the who constructed, to that customers assets have committed strong cost active, efficient producer Delaware.

in We at volumes, grown have And XX year-over-year rigs growth and when our the we've look XXX%. running we by gathering footprint. over

acquisition. the with building continues at will in year expectations high We markets power like and Louisiana well return projects scale two our bcf over oil stack, stack opportunity the our XXXX Coyote during with expansions during quarter. billion are Black of lower the don't guidance to demand balance our higher exit in growing these will offering organic XXXX. think we our to quarter year. the therefore and The related with our quarter, risk a ended to perpetual gas LNG gathering as million strong proactively during of as successful growth have through the supply return the transmission the debt exceed expenditures and the Finally, capital To underway Throughout our a Oklahoma million we decrease our to including with end areas the year units times strong system chemical, adjusted the projects, that further over we this sheet, track the likely to a growth tremendous core similar and processing had growth expect we Delaware downstream growth XXX preferred $XXX third one crude focused on expenditures with see in in X.X day volumes gathering we for high a market. remain on to range. capital business. alleviate our enables which standpoint, financed ensure we our levy have XXXX We goal payment issue last of to XXXX range of need growth a Central equity asset us to installment EBITDA opportunities a maintain and prefund raised From

both are committed strategies strive lot our financial ahead which we the growth Today by is our and perspective, corporate get our discipline seven coverage, questions leverage and XXXX, Looking which strengthen plans. focus we the our places strong our means will to achieve right with of structure management of growing distributions. a ratios a to right the we to the prioritizing to ability around in returns partners. grow distribution maintaining of our From building

we and we growth Cynthi keep focus right driven ultimately right have be team's leading will our recently we with to However, will strategic growth company Senior truly in on holders. To President our company long-term on data Jaggi We will and unit within processes are some we the focus now announced basins. to team. our reviewing moves our that Vice structure strategies. alternatives ensure business areas, core for to seven core decision ensure have best our making our our the process ensure transformation strategic senior the we alignment the manager made our resources our enhance leading Cynthi

Oklahoma, Operations and us pace have as us And Texas. for continuing core turn Dean Mueller, for to it the a is of achieving. I'll in President been Dean held North resource back growth that Oklahoma of a Barry. with key for has Vice Senior we're We in

Barry Davis

EnLink our apart Thanks What the and will the and build seven on said successful Mike. strategies of about people. EnLink questions what rest make call sets is open unquestionably And before Dean us the of Cindy, team. I'll Mike what our with we growth

for each With mentality, stronger. and has questions. ethic call may that better and the Our to a winning you and a clear team path the The team how wakes about open up forward. an thinking up morning ownership make EnLink company work

Operator

you. Thank

the question begin our with now first Instructions] will from will session. JPMorgan. question-and-answer come [Operator Tonet And Jeremy We

Barry Davis

Good Jeremy. morning

Operator

There Sir your line open. possibility is on is is mute. a your phone

move of next we'll Shneur on to Gershuni Okay the question from UBS.

Shneur Gershuni

good morning Hi everyone.

Barry Davis

Shneur. morning Good

Shneur Gershuni

a to get can to I know conversion re-review $XXX Just Tall of the of If the is EBITDA distributions couple One you of modeling of guide a assume as remember kind is Oak. first. I up distribution would a imply. you're we a also correctly remember probably it's also answer of cash but I quick filling which it's to is plant is obviously cash to but the pace it about talked million And more the kind of think lower well EBITDA have for reporting question. part question, questions. in a too. type XX%, that NBCs the quarter than far the I the of distribution and Cana lagged kind delta But I if that correctly for in

secondly, EBITDA I about to once fall then should my am that And talk hit of run question you million And of kind correctly? cash you guess so the about can rate? line? I distribution, $XXX it the thinking is the to bottom How conversion

Mike Garberding

is Yes Shneur Mike. this

overall So expected on what say where with right with we're be I to we track would acquisition. that

the you where was where comments in annual million ultimately group cost I today. south rate One that translates ownership $XXX an run of look which ENLC, the to XX% made are in of at just we my are we of when

feel we tracking years the during though in executing planned seen we've right lot on of as is different a on this. the ultimately So everything left two and that even moves

seeing hitting goals about think all from to through that When good going So DCF, Central way XXXX. down we for that to EBITDA you today. the we Oklahoma are feel our

installment the gets You do that see a we ultimately last balance a perpetual payment from of payment in place through sheet. due of us the where Tall Oak that the piece preferred, which pre-funded financing came through, January for great some in last the

into move XXXX. I a the see as where come continue that you're in position to you'll we So DCF to think through

Shneur Gershuni

sorry. think I yes about When a the I'm –

Mike Garberding

No, go ahead.

Shneur Gershuni

million cash translates on we distribution hit to rate? run was sort you talking EBITDA in of I'm expect if basis into what say when a so once should going about $XXX I the that

Mike Garberding

you we'll the of you down when costs. as in But move about of done capital financing XXXX. it think the terms that mainly have think maintenance for been see acquisition be has been little you'll would what Ultimately the capital in and very follow-on itself, it about cost

it seeing be would you're interest So more today. related acquisition the costs DCF which in our about the to

Shneur Gershuni

levels. of and was enough. moving prepared run I that a rigs talked pad achieved think full remarks in in a Has development duck just scale What development. to been little the on that typically sort of bit sort GMP higher about fair seen? you in much about tail of explain Okay, moving And with the off that to has a sort does your

Ben Lamb

Good morning talk Shneur Permian Oklahoma. Steve then may businesses. comment for it's Ben. about and start I’ll our want And to

our We of have some customers seen to transition the fulfill development. producer in

you And Showboat running acreage, so those on today, if rigs of look rigs project. XX have the take at five a on we Oklahoma are system Devon dedicated

there have the so field in gratification of element that is XX development get And the because see likely project, wells wells to have second the first to an XXXX. the with of to Showboat we're quarter volume then then comes drilled And completed get project. XX full delayed mainly on Showboat on

this in We the some too. have earlier year had of

So earnings back similarly New in Field’s a footprint project. infield well Velta their JuneProject that on about in our they lot is release XX talk

yet in the process isn't that those time there So quarter the gas were still last about wells. flowing this and completing rigs all of because they're still

those expect to come quarter. later We this

want though expectations haven't order dedicated field results full in in we at seen Last of So we producers an that producers Oklahoma rig over, a your to really sawtooth quarter the over sort increase to we've off of roll more level. the the tailing growth as the development. that have over, into our quarter really to the acreage. on question gets part If drive do seen anything quarter

Steve Hoppe

and quarter the will grow is Basin Steve. Shneur stable, you've development it for to consistent that Midland Delaware I I growth. see seeing we've going is seen are plan. we're past year as the a Yes say to that what in steeper a into and We've consistent to growth good will to would in the growth half third expect volumes of some at to when announced our some plant. going little you would you and the this continue in fourth start look great the that XXXX. to be Basin continue But expect had look it's the last

exploration get see, third that’s XXXX. going than with where you'll the it So and system we phase a we on more going level are plant really I in rapid up Delaware being on because to have and to how in a past. have our our near of we're in our than position Delaware. at think, think, of line see mid-year, I we'll in the the in the ramp it approves by starting is development higher And stabilize, seen anticipation midyear by the development that start And with that full built. Midland we're at to term team to just But I'm built impressed their from

Shneur Gershuni

One Great. final question.

in for year? potentially You a or was about coverage where at either to you K.C. still the wondering that doing plans a the ratio sort Do prepared point how CapEx some discussed thought down? up just what's of put What process conversion of similar going to is kind to remarks consider the on side. kind forward? going I the next are of plan given year, year tighter past finance on this next which for is

Mike Garberding

coming Mike. the new January. the ENLK ultimately the with Oklahoma. I Coyote We're net our today guidance in X.X in to plants $XXX about the the with the the is crude some capital in the times Delaware, which we our to new here Oklahoma, year. about plant expect feel exiting that key to And we're translates great Tall this a Oak Shneur execute about We drivers position mentioned Black the million installment balance and that for million which with system $XXX in of a consistent leverage, We preferred we talked in to ultimately payment perpetual in XXXX, on system, were prefund quarter sheet. program

continue high see return being core right see a growth our as From of And projects by and our we utilization projected that projects, you'll keys I right we which areas. ATM organic core is payment in for think to success. that's key it's driven the the you year, cash flow think in all having be with think these again standpoint, producers the places are amount and large is great thing So number. projects, received re-funded there's we’d with about two not these the installment as going from this well having around in and to a funding same

very feel in we XXXX this for capital the financing good plan. So about

Barry Davis

Shneur this is Barry.

Let me comment a consolidation there. little comment bit on your been conversion or, I in about talking your think, K&C you might a have of

do me if let that over the tone mean First, us an last the what you comments will and say standpoint language seen see years, the our today. read you've from three hope in execution you I body I

encouraged we've business the last done is point. are really what years What we XX this through today. a the in very We extremely difficult in see cycle over duration three by at months

we none to the think, terms that second of and comment strategically have of where we're really the results position we're what the I I about Ben’s delayed earlier We company, in are, gratification. the driving. like enhanced doing

now I three made years. the trajectory the the the the over investments line in is change that see you think that we've right results bottom from last to it

So we that's how feel it. all first of about

will continue do what Today optionality increase the better evaluate being in laid market respond is prepared future. the we'll That we create focused But or today the we said, opinion the that in a done. the today regardless and to in Secondly, is place. strategies structure structure and to think us remarks. is on our to what we telling right issue of be needs out the what what we will In we're not strategies structure. we're think outcome that that executing our on executing

Shneur Gershuni

you Thank it. for perfect. appreciate guys, really very the Great, much color

Barry Davis

you Thank Shneur.

Operator

question next will of our Horowitz And come Raymond Darren from James.

Darren Horowitz

going Hey morning. guys

Barry Davis

Going morning.

Darren Horowitz

regarding into value approach integration the and Coast. chain First you Gulf question talked the that about the

to Eunice With that of Central liquids you're assessing a you a uplift you the barrels? it you're regard that Sibon towards looking Thunderbird or your fractionating Plaquemine. specifically, the the those solutions in More seeing barrels put then and the to bit with in little as announcement thought handle more that process Y-Grade Cajun of Oklahoma, either those shifted the has firmly looping and at bias results

Ben Lamb

is Ben. context sure that having to the Hey want specific about have about to just do with on strategic plant like everyone to and Darren your that the way Thunderbird And specific enhanced right as plan linked just you it’s be flexibility same announcement It an bit your can Thunderbird will function Chisholm make give Sibon then Thunderbird Cajun will among by understands questions owned thought operational Chisholm, to ENLC the little liquids is. will system plant But then We ENLK the address as for that just that Mac on a the build directly around liquids. not we part NGLs. plant other address for last question the the Chisholm in I a be things. think want reasons announced expansion way Chisholm it’s of with ONEOK the let of and quarter. start expansion. jointly the in I to chose of and to Mack would arrangement are IV variety to

Mac Hummel

got, on solution provide won't at in And Mac. growth same we're right available executing with is name we've of our will that as the the Oklahoma for that to to businesses that them regards just anticipated. the in but with change do did It pursuing alternatives, alternatives Darren there I continue transportation economic us. we all we best we Yes that large that that number is out the those does question all this to the to evaluate And We'll us. we'll exactly NGL solutions. now meet are needs Oklahoma. ahead Really strategic the of a the are what look regards not direction of well And as thing us.

see again we us the even or combination alternatives take Sibon, with with capabilities and area. that might opportunities Mont got select see might the of with fractionation, in those of You a Belvieu Louisiana advantage position Cajun we've unique

Darren Horowitz

the the minute cubic and from you a the up it's to what Showboat exiting for more as in what my project next just expect year Black to million have shape seven volumes still might means Coyote? year. opportunity around slightly to better to and go comments that expectation on possibly as liquids heard, you the the could if your And cubit takes XXXX to I foot handle that uplift think back that's or Is if when with next Ben even capacity Okay. of scale from realize middle foot? do those if into downstream case five even about the we've wells to it volume you those regard million further follow-up

Ben Lamb

great to it question. Mac apart well. I'm try And downstream the to a think to bit. about piece will little as Darren And talk want I going take

touched about per of been foot really their infill well everyone built publish and profile. encourage momentum something on start They our to which producer these talk our the footprint. take that remarkably that project look quality they in our And customers well you stack. ever the which is go have in the this report oil All That's biggest production on important, above our flat You the New at talk results. lateral about a close That’s is I’d Meramec about Field’s of the one They system. that well about report. look in on at about was footprint. XX wells all Go boes oil rich which operations X,XXX terms measure gas. trending half are stimulated its [ph] Devon's average those morning, curve a day, and which in also type has they is talk

in processing that in the get need the of quarter Black to to the of what So And front first has terms expansion you're the continue results certainly Coyote crude and our right, better the drives of potential project. XXXX deliver better. results outsized is for and our

Mac Hummel

I to feel Yes Darren would of very very, acknowledging the transport Gulf with we we question. side did on just the handle from that by to fractionation down transportation those barrels Coast. talked well with NGL Oklahoma the of about the like agreement the positioned follow-up we're just ONEOK that We

facility take ONEOK connections but well Chisholm feel syndication we get advantage that. physical we be to We positioned very will very, position an increasingly better of [ph], the additional as in we from are

Darren Horowitz

you. Thank

Mac Hummel

Darren. you Thank

Operator

of question Barrett next MUFG from today The Securities. comes Blaschke

Barrett Blaschke

Hey guys. is change This this IV clarification. system the and – What's Chisholm to the alternative the sound of sort difference Thunderbird an just have the why and of what drives from that? just between to Chisholm on it. just for Little some

Ben Lamb

Yes hi Barrett this is Ben.

in First high of County. be Blaine those change. Chisholm whereas II to The be line there separate in change going and rich two a XX-inch and site build is will And that's plant Chisholm we’re been going in no we've is all a County from there Chisholm to located only doing what pressure plants. Kingfisher the gas, site over plant III between

of rich And effectively you capacity of the one directions. high flow gas benefit two pressure both pipeline. you The so end each on increase plants, pipeline the in get your by one is system having can

have same to like it has NGL a the just You IV weather. and severe have Cajun see gas, the your residue also the same having would system. our of operationally, same It serves at state not get it's Chisholm year system, But that the around. functionally, outlets, all same direct one it basket, We spread the this in it to eggs benefit connectivity gathering of serves has things been. particularly a Sibon

Barrett Blaschke

you in sites still the of the Chisholm sort stay that this a then forward or start give going does project table. basically. on the again, of but The as And does rig Thunderbird stop from you just two stand

Ben Lamb

the they're gives County, the Well the and connected us system. Thunderbird facility, which sites Battle stack is in Cana facility over between forward, also Ridge our Payne our facility, our to stack in Chisholm three really it then and facility going

it close closing off doesn't terms options. options, of off In

likely we the it So IV. Chisholm plant, is most next not be Thunderbird II, when to is announce my expectation

Barrett Blaschke

Okay. just And then to Any guidance one for housekeeping CapEx updates question. year XXXX? full maintenance

Mike Garberding

Yes Barrett, quarter, probably to expect we in put of is the Mike. on side what saw Where which you would us this low third the is consistent run guidance.

Barrett Blaschke

Okay. Thank you.

Barry Davis

Thanks Barrett.

Operator

Citigroup. of question And I’m the Mirek come – from will sorry, Zak, next Mirek

Mirek Zak

everyone. morning good Hi

Barry Davis

Hi Mirek.

Mirek Zak

your more Black seeing question outstanding views opportunities us wells – stack and regarding prior and so – oil Coyote? through with the for of oilier wells. the some there future you just out Can that such you stronger the such latest between have walk seeing previously, the growth higher comments costs in my play nets hi Devon’s with you how sort So expectations question as my in upon impacts of as are so And performance? inner

Ben Lamb

it’s Yes, hi Ben. Meirek,

seen we have but right oil also cuts, are higher You we have than we seen expected some larger wells much, much to see.

we some much development ago Certainly the in had earlier year. be that of expectations we the only Black benefit two is a the be we that larger of need basis And expectations the of on expected to years really we only half when the side. gas Coyote well-by-well Showboat And connection seeing In they are our But because themselves we benefit though acquisition the that from our the than our so also that that some gas on for but benefit will from made So wells the system. example volume absolute a wells cases significantly first that this next from terms the production, even first expectations. oil are gas exceeds year will point for we production. XX-well not that in will be. initial it

Mirek Zak

that guess the of pretty your your processing that recently? Okay, see tightness Oklahoma capacity you with end XB do before and ramping up considering line, year. quickly in been comes in the Thunderbird there lines or you How by expect the see processing tied XXXX utilization the if I have on

Ben Lamb

Thunderbird the long to us to January that the processing plant it you're unit, taking Mirek. position when on. we will a whether of a we us the the of quarter announcing question cryogenic quarter ordering And Well, November announcing received and step that But true. of great it of have the March now acquiring but plant. it It work as months processing whether or if are doesn't a there X in not because e-mail lead XXst, first ready today that's now XXXX equipment, to think was an meeting you're why in by plant build some are I Yes or said bring Xst put to it's XX beginning we that of have finding And that's you to we're XXXX. we line telling first say service is to flexibility to a be in a build a take site, that’s XX going sight XXXX?

Mirek Zak

Okay, it. Thank got you.

Mike Garberding

Let me just add to that.

I through we're plants existing and to think if our gets full. you next what the capacity volume these all exceed were basically projection of ramp details doing the until it projected our at is plant on when to that of build the look is plants, bringing

plant the closer And so I have between $XXX months schedule, end to that's pointed plants. why the we're to day a months XX And but million we think between to the think our I on consistent with XX and shorter months XX XX months the months. to XX

what out going of sawtooth that describe multi-well that, So that's you which a is the volume is to we've on effectively the the the way when increase we're to We nature doing. word point would used pads. big bring

a so, consistent projection. of sawtooth won't build the to a be growth it more And but plants,

Mirek Zak

for the thank additional Great, color. you thanks. Okay,

Mike Garberding

Mirek. you, Thank

Operator

from comes Tom question next Stanley. our And Morgan of Abrams

Tom Abrams

got… I Thanks a lot.

Mike Garberding

Good morning, Tom.

Tom Abrams

that a this to close I your guessing get Belvieu. One in either ideally morning. on you'll frac a Good or three interest frac got the probably Gulf of Mont own is Coast. NGL I'm just an options on questions.

route, to So be guidance an your XXXX yet soft kind if in I if is XXXX of did would spending? was spending wondering you or for increase it that go that

Mike Garberding

range of. advantageous a to light. capital we just be you NGL Mac guidance. Mike. one try is have which as the could do you something with was the could that combination on And as a did see transportation where worked range We to partner as consistent financially give and NGL, or options this stated Tom, a earlier And Yeah, of a on of to we

be the So same could case. that

project, the capital of XXXX we’ll a we of that ultimately have development that that so Mac that said, but more will develop be for And XXXX. as spend into XXXX continued some and

Tom Abrams

the take good. in Okay, you’ve its back at relationship wondering still the if way we ENLC. dropped, And at to still assets it's you that [ph] might that that about about ENLK? should was total think or then if that And assets C to I will, as units up spending How down would outlined? up make how –

Mike Garberding

well. Hey, Tom, position continued the good We think The in the receiving this is benefits of Mike. ENLC. we’re a to assets have perform from

We expect to receive. it

of looking regard is and that lot the best So both dropdown but with start we’ll would a be what for right option units, with of looking we’ll of ultimately about of be consideration a likely different at we'll consideration. We're end stake XX% how in think to regard different goal XXXX to entities, of options lot portion it. a it look options now the to would the

Tom Abrams

the the acreage lastly, Devon Fair And six on on packages well that's are enough. bids you’re those the Johnson looking County refracs, for on?

Steve Hoppe

system There their not. the and asses lean systems Barnett. they're that gas No, part Steve. they're is This as of the gas retaining the on rich in

Tom Abrams

Alright, thanks interesting. lot. Okay, a

Mike Garberding

Thanks, Tom.

Operator

And Wells the Praneeth question Satish, comes Fargo. next from

Praneeth Satish

morning. good Hi,

Mike Garberding

Praneeth. Hi,

Praneeth Satish

for quick One question me.

Or Midland do ramp the on XXXX is the think you there, available that's event? Just Just best processing capacity and up? that Is the fill curious could that side when there. on into the flow XXXX?

Mike Garberding

Midland acres to in we’ve been that the pleased rig a to Customers strong about over seen volumes really in and added So XX,XXX and year. were about activity count addition we've have year. XX% last that the this we've dedications grown with our maintaining

have done good job. So a teams

the said those based goes That's us spends Our give to plan, XXX watching and the – place as we're our to match that available day. the plants their expansion, to increase, of on then and capacity said, low we've a volumes to in do our phase those following continue incremental five cost of we’re setting we're earlier, have to million. plant where would is Barry our volume XXX that have forecasts, Riptide that system expansion next interconnectivity a capacity we timing optimize add of the as mega million up take which is addition advantage us And we're going we it progression the to forecasts. very

a really what the think for that's follow place now. the as efficient we're good next we us Basin right we're very So going cost to that And for step in Midland development. to be in

Praneeth Satish

Thunderbird the cost I of it, And as what’s unless got Okay, housekeeping but plant? missed just it. then

Mike Garberding

of additional will say, some to plant long NGL gives a then This sensitive. will an connections, costs be And $XXX equipment. cryogenic residue the unit make be but I acquire that so. $XX will some can the the rough it didn't in Overall, year be We a or you itself range indication. of million million give in there but you to some about lead

Praneeth Satish

Got thanks. it,

Mike Garberding

Thank you, Praneeth.

Operator

And next of we have Colson a Bernie from Seaport. question

Mike Garberding

Good morning, Bernie.

Bernie Colson

could gas Oklahoma takeaway is that important first of you gas topic Quick the stack. out crude – volumes opportunities at questions. additional lot spending there. point so natural I maybe a time the was I on are capacity oil the am any there for question the hoping I know got everyone. the Texas turn end discuss point system. I there, which we’ve for at Oklahoma volumes – natural Hi, of big some given assets North and was additional of then that themselves project number as the two, the a present a But on may mid-ship understand the to some XXXX. one. number opportunities you’ve pipeline project coming are called Express, to a of discussed there which connect the And was

it activity kind resurgence leave Barnett, everything that of given strategy seeing of the of hooking And a that we're in there? does so together where

Ben Lamb

our Oklahoma of It’s the of your And and basin complexes, coming of away, and then Bennington question and Bernie. Transco to additional that and fairly first mainly Cheniere’s that serves Ben. right. the will current existing Gulf interstate of system the that intra-states, big pipelines, about is the you gives of to in options, future. expectation Oklahoma Chisholm upper be Midwest being access type all on to takeaway our complex. that that access those foreseeable that with out the basin of announcement the To the take And you’re the mid-ship will to part the take the for get this that set The Coast is complex all the our big to gas to for take producers pipeline existing in development both intrastate to to pipeline. access Hi, the the capacity have be and benefit combined Cana capacity interstate Oklahoma markets, can also onward the access Cheniere well the them infrastructure. And will year places

whether Express, North we for the we period Texas in take Where to Oklahoma sit of capacity Texas. advantage In consider of did Oklahoma terms in have the processing a assets time of to North the we now to connect capacity we of to handle adding expanding which addition. Oklahoma efficiency Oklahoma infrastructure to volumes. right Oklahoma and make the capital need those at given that We're capacity the in pace on focused

Bernie Colson

alright. Okay,

Texas. the the kind So off for on table of that’s now lease

Ben Lamb

That's correct.

Bernie Colson

alright. And internally okay, picture distribution obviously. Okay, then given last the you to more about will it that is cash a growth that's as And there one think a the How that question entail and payouts. industry Thanks. really commentary timing a the focused flow projects – and that distribution changed any me. as your you've I plan for changed. CapEx your on growth. that lot of stance investors bigger and strategy I’m and the didn’t added little about the hear just seem guys And for wondering some or nice view resumption distribution more given be about generated

Barry Davis

with throughout you've asked the heard – There's over answered performance really Bernie. to lead years great you you, pleased I investments this and the made Barry. last we're three the what investments call the you think we've question. that a thank This the is that. of Yeah, in way is like I very is that important that and those consistently

falling change line definitely bottom seen results the return on have a the assets. the and these of to trajectory We

that's important. So

coverage it at that distribution better. that all said growth, times into we and coverage look consistently would X.X metrics As the distribution of three first be to would or we've distribution that converting relates at

the or continue and growth to the the X.X business Secondly leverage distribution going also the restart the or of the times of projection to we at X increase forward better then sustainability to distribution. once

that the monitor continue that is grow us distribution to in what and tell to through that those will the XXXX. we continue we distribution we would coverage XXXX will confident give growth the we're evaluate opportunity to So you metrics

little separate we the chose to And ENLC whether often distribution So if do X.XX and the We're at we a address can that answer could about the growth. looking commencement is we today so. going at would And position in with with at that in are get evaluating coverage. situation the that of quarter we we we the increase if questions ENLK, the forward. basically would you will I each the look right that distribution distribution We think a you differently. times do

Bernie Colson

you. thank Alright,

Barry Davis

Alright, thank Bernie. you

Operator

from And Morgan. will our a Tonet next Jeremy question JP follow-up come

Unidentified Analyst

is morning Robert guys this Jeremy. for Good on

Barry Davis

Good morning.

Unidentified Analyst

a couple pick of questions here. just I'll

mentioned On about pipes the in first cost Luciana the effectively. guys one of conversion liquids the the gas in you

this you your you to Mont would of what’s wanted the So spreads Luciana like be I the thing. like said kind call I and XXXX more just of today? guys with in remember view the a Belvieu earlier And check on

the this are you one filed? which for the So spreads guided of drivers

Mac Hummel

good Yes Jeremy is morning [ph]. This Hummel. Mac

these creating great considering talk serve the on to conversion the to the understand capability And have side Louisiana about redundant First acquisition robust ability and team, acknowledge to we in in had gas where of conversion the little of opportunity about taking platform done helping we to all, therefore gas at and They've is ability conversions and the more the L.A. one when late step our made the day team we of very also opportunities really But talked advantage Chevron impact that effective in pipelines market. than of want teams we business business, we're since a that first not much when XXXX. growing job been facilitators I back really did gas of and just that a bit currently had a the look the crude. our one. that the have conversion we've

We've pipeline And and be the And an of minus market, day in corridor. all it pipeline the crude, could footprint not a could basis. over about is barrels, that Mississippi that's of really be in or scale got River oriented We plus and place. supply of Barry fundamentals to And Mississippi barrels market with mostly Cushing being us are reasons around North right refinery that evaluating We've three market supply there over about Louisiana. large supply that example demand got toward the the million this it that a of being the in corridor. reasons. a have footprint the number oriented that and others it supply all the that associated because American exists could us clearly River Northern got demand accessible to Canadian places. consumes Tier really barrels, are a barrels. River talked be right the U.S. that our We've corridor the lays and on bridge And via

So that we completed option producing. of success and is could for like it’s interesting not get those. commercial of of very some The the to terms depends and be in XXXX, it in that more but timing XXXX of probably likely think us timing when considering. of a XXXX, upon project and also But compelling the discussions we

Unidentified Analyst

for Thanks color you. last the And just Got question guys. here.

earlier play additions this as on for executed successfully have guys quarter. you like it’s So

subject just whatever forward? would wondering good expect on something on are what to I’m we And – similar for financing being So like avenues XXXX CapEx going you in the like just a can focused such reception? growth market deal you

Mike Garberding

call, offering. thinking great regard And to this going to job We're this the building the shareholder. to on up on all coverage and we balance about we've a last Rob returns one offering of effective sheet, which think potential with in focus those to continue did dilution is Yes what Mike. managing is especially stated of this the unit really

the this big that’s January. The for Oak is piece in coming Tall us to other payment pre-finance key that it due allowed

growth already XXXX that. started financing and So about today feel we've the good plans

XXXX big a and as the well is flows we'd from which this projects Our ATM to as are program size in an financing we program. see, growth two for for avenues the growth the in expected around in cash going be not same year,

So good of that. feel the about execution very

Unidentified Analyst

Got it, from color. Thank That’s helpful you. me. it that’s a

Barry Davis

Thank you.

Operator

RBC next the of Schultz comes Markets. And question from Capital T.J.

T.J. Schultz

Hi guys.

Barry Davis

Hi.

T.J. Schultz

answered lot. You’ve a

quick on conversion follow-up. Maybe the Mac opportunities, a couple first. Just

deck slide strategic JV. potentially think, You in entering the a indicated, I

all that are is types it a likely recently? have how important on accelerated type to here partner color and of process to partners? that of there back any the conversion How who at Just JV may find

Mac Hummel

I’ll order. try Well take to those in

interest thought to increased regards going quite changed And perspective. value do only considered the of the I I the We value in on with the And conceived. we a But or maybe potentially think long. extent from think something just to that. perspective been or to look anything got one At order potential extent that timing to taking to partners opportunity reiterate on We market project. think on there's we value. we it to have currently perhaps it's with our in move with strategic to our list a that to at added it necessarily have continue would they partner forward the take in partners lease we’ve adds conversion. maybe don't not as is that we're a the associated from has

T.J. Schultz

with acreage And got said or from when over away Okay, be expand and to there? that and understood. you couple dedications then the your up partially current just there you of acreage may last grabs that is or Midland the be potential screening Any that for soon anytime other some riptide the ramp all of dedications due in may see about you you it, up is years. in think it coming follow-up the utilization fill

Steve Hoppe

acreage. with little from It's both portion actually So T.J. coming it existing larger of of the bit dedication the a Steve. this is the of

new dedicated the We chasing contracts our bolt-ons infrastructure. around customers and adding for that see in outs that But success key But we've good year. positions growth we're is very development step those of really for lot from that continue the in that basin, has of mode are and year core have team got acreage that their the this the we're portion to to and business. in now. looking opportunities some and business A existing see that a going that capturing bigger all then aggressive time been expiring of

Barry Davis

this Hey is Barry. T.J.

meet across additional when broaden our growth we that very require customers, little to to also me et additional seven Let our plan. that look say acreage, strategies we cetera,

do, need across to set have We execute we to we have those what out plans. what

keep not think have for necessarily So battles although set don't we important fighting I achieve right We're have to to a now the growth really that's the acreage, there out going that next years. objectives to trying do we win to we're for point. three

T.J. Schultz

– any is you there? are Got sales the it. that add and considering still cash the I to you ramping mix asset thoughts ATM, Mike appreciate mentioned or did for you just next year funding there flow that. any

Mike Garberding

Mike. Yes this you clearly is you've out we it. how about And laid think exactly

very North our we're mentioned Barry growth the Oklahoma, are areas focused Texas which core Permian. As on Louisiana, and

need those core areas we So outside anything consider, really of would don't to. but

for to. have to it financially make So sense do but could do, we us something don't

Barry Davis

interested. the want just where that's I’ll in that where interest And is those might lead to something. areas we that add we're are four T.J. is where seeing one Yes high everybody valuations to monetize

actually attractive don't valuations those types to on finance you So less it's execute help see a outside therefore areas something. divestiture those and of to of

Mike Garberding

works. that Funny how

T.J. Schultz

Thanks. it. got I

Barry Davis

Yes.

Mike Garberding

Thank you T.J.

Operator

would session. Davis I concludes over back conference remarks. turn the closing And our Barry question-and-answer this any like to for to

Barry Davis

facilitating Laura touch have on Thank you your everyone season. for you great the in with rest you. great for thank Thank your a always the Hope call today. as participation you a many the for support. you day for holiday and call of And We'll and of be soon.

Operator

Thank The attending for today's presentation. now concluded. conference has you

disconnect. now may You

EnLink Midstream Partners (ENLK) 1 Nov 172017 Q3 Earnings call transcript