ENLK - Earnings call transcript Q1 2018 | EnLink Midstream Partners LP

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Operator

Good morning, and welcome to the EnLink Midstream Partners' Q1 2018 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kate Walsh, VP of Investor Relations. Please go ahead.

Kate Walsh

Thank you, and good morning, everyone. us earnings. discuss joining quarter Midstream's for XXXX of you today EnLink to first Thank the today Eric of Vice on Hummel, & President Permian President Participating Condensate call and Chief North President and Mike Executive and Ben Gas Basin. Chief Texas, Garberding, of Chairman; Business; the Oklahoma Executive Liquids, Officer; and President Officer; Financial Batchelder, Natural Vice are Executive Mac Barry Crude Davis, Executive Lamb, earnings our accompany our and press call, XXXX have quarter To Investor website. of release posted report portion first the today's to operations of we Relations make Shortly a after today's call, we replay will website. also our available on webcast meaning remind you laws. the will or call our federal this conference expectations made the about predictions, should I forward-looking of statements future, considered including that securities the be during within statements what differ is in may these results materially forward-looking described statements. Actual from

statements call, this or date only and to as any we forward-looking Forward-looking of update the obligation statements. revise no of speak undertake

for our differ period. could now of And remarks and earnings as and With the in the GAAP that, in operations Additional other as prepared enlink.com. is turn press these information the financial accompanying Mike, of Risk that call call We the press of like made the brief factors to release be measures. the The to heading in described statements Eric. with those and to this would on will to results and cause over then disclosures filings, Factor. to at cautionary you call including Barry our the leave under operations start encourage from statements Barry, SEC available measures, press enlink.com the I on the review located release certain majority question-and-answer report our call Davis. in SEC report in open structure by what forward-looking filings. Definitions includes and also comparable our available measures, non-GAAP and are reconciliations earnings is well call to This actual release

Barry Davis

Thank you, you Thank today. morning, joining us good Kate, and everyone. all for

represents for start tremendous line XXXX growth we of We're path and year growth growth Number think outstanding back by two, delivered another When best gave the quarter on guidance summarize driven expectations. with confidence we have exited quarter continue year started out Oklahoma. one, momentum strong a EnLink the have the our conviction the and quarter first XXXX We in February last another with about exciting provided. to with of first volume our the to step of our proud results. track We in that strong following. on are The and three things robust outlook we've I profit XXXX with in in year is results. with I outlook growth and of we strength Number today, organic EnLink. think and we've primarily future and that

XXXX. EBITDA milestone We as to over around for $X XXXX. billion year compared continue ENLK in and represents to to Reaching billion adjusted be pace which XXXX adjusted EBITDA full XX% generate $X the the executing growth on expect we and exciting And another EnLink. today consistent across be we're to growth the an in will the our year accomplishment we expansions activity attractive for of with footprint, rig strong see continue on

three, XX% right EBITDA our plan. over We to we are increase X% the adjusted guidance projecting ENLK have XXXX between Number XXXX to mid-point.

experiencing seven Barnett and growth our results on growth, we're and crude with platform tangible expansions. strategies executing actively Oklahoma NGL are increases We redevelopment, today

in our the Gathering oil We're building scale, and diversity STACK areas. in System. gathering Oil crude newly recently Redbud our Most called across Our growth value strength. business expansion growing focused our in chain by commodities is on core highlighted Crude announced

continue and the of oil the primary the now more. to work gathering largest towards service provider two are for producers crude STACK We in

And business because I'll team executing and we right in Our places have the growth seven turn plan. partners right the it on update our provide right the the right to that, continues to to strategies. with Mike an perform we're with over

Mike Garberding

good Thanks everyone. morning and Barry,

strategies said, confidence. first changed executing we quarter growth in These well, The are good quarters track areas growth a anchored proven our and know talking very and our results in where been projects Barry we a and we're a have assets. for which about seven record. our operating gives pleased that's us nothing deep are in are and we with confident our strategies As thing. growth great today. we projects We've are experience evaluating core around That we're now plan has few and

Our strategy Oklahoma. maximize strategic our to is first growth position in

and track service on Chisholm II in of the [two be are enemies] are plant quarter and Chisholm Thunderbird adding XXXX. and gaining our in both momentum. the III first next will We

are producer the been new and provider is now on are the the results All developments. exciting we oil most is efficient to the great of our we which overpressured we have that producer window yesterday on of early to-date. core gathering in well of the primary STACK. are STACK of growth and for in made best currently where The service innings in for current the large-scale producers development STACK the announcement positioned areas. two touched the we're are facilities an development in Overall, set oil needs customers of focused and our results the active up meet some Barry seeing crude

platform, our build gathering which of out Redbud we’ll our we oil system As is be efficient example crude adding a great Coyote Black capital growth.

XXXX and gas to crude volume Midland across we Midland growth second quarter to XXXX of utilization the into steady this quarter's quarter to fourth completions in side, in our for have of Basin average increase volumes and system to the project positively there. due volumes On XXXX with first results increase over backlog our XX% is timing of the through half of profit a should weather during XXXX. of driven remain Quarter-over-quarter since strategy bit growth Natural continued assets. with profits second generally flat a our continue impact the volumes system. Volume and Our were of close XXXX production on completion XXXX. impact the security gathering

Our to crude are to teams projects by outlook accretive quarter. leverage customers platform. to both and the be our expected signing two The and new during new system our the then existing bolstered is gathering XXXX during volumes profit

win to continue due crude proven gathering We new to our opportunities capabilities.

similar of very have first Quarter-over-quarter generally to be Lobo XXXX. strategy profit the the due XXXX of at we system XXX% million we to volumes fourth second growth build the and XXXX. Basin. during experienced at cubic strong the of Our we III flat across quarter profit and with third and however processing expected end. over side, well what fully feet of timing, XXX completion attractive and processing Overall expansions Delaware natural the operational in were Very year-over-year half in growth during Midland steady volume quarter volumes exit in on volumes the per progressing facility saw Development remain scale is average quarter day to through our the gas gathering growth Delaware, seen to volumes. and delays is

quarter platform. uptick in strategy to saw drive during Gulf first and of The growth for the quarter exceptional growth is volumes. NGL was NGL an slight fourth fourth Coast business our XXXX quarter XXXX Our in we

capacity take balance positions continue running from NGL and we now NGL right in our we system of significant pretty opportunity advantage the we an our through levels are amount the with at being of year. at expect of the will the increasingly much Our capacity next expansion. the in generated those full to liquids control we able actively time. Because evaluating right of to operating Permian at the Basin, our be STACK utilization, is And stage

growth capture position incremental Louisiana. our with Our is strategy to fifth opportunities gas the in franchise

to transmission with activity volumes gathering system XXXX record-setting first is, of The asked with Coast increased for day. is over our we our the per quarter gas next of around year year. remainder quarter answer our big Volumes quarter what of and a area Louisiana. expect and along the Bcf strong first the throughout average X.X volumes remain growth of When Gulf last XX% was were about and we

for significant growth next opportunities years. actively could X We are the change X working to that bring today on commercial in EnLink step

and large new serve are We customers to capabilities footprint as due and to and our customers, downstream capabilities those that nicely as to as serve positioned industrial large uniquely up us suppliers. well tees footprint LNG

is around of interesting number opportunity Our in very strategy into strategy pass. couple to sixth value cost our multiple potential in Louisiana the repurpose and higher infrastructure a one, growth it This effective service. two, has it's pipeline Number ways. centers gas redundant

costly it for a advantage for Our in competitive difficult existing construction provides is build projects. and new areas infrastructure where us

as this next see are to over underway X with strategy years. X and opportunities evaluating for We attractive growth the well an

to is participate Our strategy Shale seventh redevelopment. in Barnett proactively the growth

First announced companies to and joint Dow XXXX. to area wells the period, XXX Barnett, coming venture where partner approximately Chemical to Co. two foremost, a be drilled the new rich expected XX over activity in the the five-year a in of with liquids of plan up recently Devon is drilling in back. with wells

Oklahoma, Johnson Devon in footprint focus Devon We program the potentially are customer intention on wells, where stabilizes wells. back Midland announced an the positions. started, are and the opportunities over while be the the steps is Devon's our long-term Eric volume asset and new capital assets by With growth continues Louisiana on executing acreage, producer Circling core seeing great existing initiating the incoming activity in great and long-term X the growth turn in increased a will bring area, opportunities our to EnLink encouraged our growth the call we encouraged specifically to to to its stabilize position That's over that next focused potential also production take provide County outlook. Delaware and outlook. we of of execute which to around refrac an financial in turn EnLink's the help to activity on additional sale us we're the a its very I'll three to highlights. update give next that, by to stabilize years. to years stated optimizing volume X to the drive for recently in. is drilling for

Eric Batchelder

and Thank morning everyone. you, good Mike,

strength we around of the segment driven first profit XXXX. XX% the The quarter first XXXX. was were Volumes up double-digit and Mike growth volumes around financial solid our first to flexibility. and from strong this up XXXX. by maintaining adjusted our and XX% was for delivered quarter the quarter profit EBITDA from the up EnLink both were and for financial of strong quarter quarter from XX% highlighted, of operational XX% from a $XXX of have fourth million Barry XXXX where and net achieved and quarter segment growth of which committed results As first of primarily ENLK to of We Oklahoma XXXX segment remain represents the tremendous

portion our maintenance of of our guidance of of in earlier, calculated We note capital when midpoint. of as incur XXXX from timing increased results at XXXX adjusted increase the X.XX distribution some cash quarter cash of expenditures guidance over expect to X.XX From flow seasonality level we includes up our guidance was Barry of which the a from times XXXX EBITDA our have ENLK's EBITDA for our coverage between to up XXXX. is as primarily had approximately we the I XXXX a range. a result of reaffirmed the growth over perspective, in And remainder XX% coverage coverage over times quarter mentioned distributable still that is the adjusted XXXX, projecting well and XXXX the X% distribution a which of XXXX we is as are quarter of to high-end business. high EBITDA. at the XX% the first This would this expectations midpoint XX% flow ENLK the NGL of first the as result of that in strong from

business and perform expect shoulders that the our reflects NGL season. We maintenance second as we lower could as quarter the be coverage distribution

sheet balance ENLK expect with still for adjusted coverage quarter position times a at calculated EBITDA year. we debt bank our ENLK the However, agreements. we per as leverage the in ended perspective, to a of healthy X.XX covenant distribution strong From

liquidity flexible the a maintain ENLK with of to continue approximately $X.X exited quarter and liquidity billion. position We

ENLC an distribution several the XXXX for assets. for the the We increase we to increased We X%, had and represents for increase declared over we cash first ratio distribution of annual approximate of coverage and sale which maintaining coverage times XXXX ENLC, a again quarter evaluate the first non-core million XXXX. by is quarter available up times of first XXXX, X.XX small while quarter projecting continue achieved quarter X.XX quarterly At times. distribution between distributions of X.XX quarter for XX% $XX this coverage the from ENLC and in for of results the the distribution in are X.XX which of of also to at the

Before currently thinking give our I I’ll to to update evaluating the had months about structure. two landscape. We've over EnLink's many how MLP and an past the corporate of back Mike, evolving the discussion the turn actively we’re with on we've connect opportunity been investors

we others evidence markets LP with that don't to that have discounting structure. the the degree traditional Although are to driven the capital simplify, see pressures their we those have GP,

assured decision our hear rest I'll one turn to are and our executive that, right to us Mike. is clearly decisions making of loudly team. compelling for EnLink We’re that And And it comprehensive committed our long-term. back investors this solution want mind package for we to top that into the with over

Mike Garberding

all Thanks summarize, have and Eric. The XXXX business of we strong and about commodity is are To fundamentals our a market. growth. execution constructive

We’re on and strategies right seven executing on We're expectations. dedicated focused to on we're core growth track. delivering our

plan the open call with we to we With the places partners and tees we executing questions. forecasted which of are right what right for team right the driving the nicely all up and the right results XXXX XXXX. have may with up the in strong We’re for for that, you achieve expect are

Operator

Please RBC will [Operator go TJ Instructions] today Capital from The question Schultz first ahead. come Markets. with

TJ Schultz

end structure the the that little something year? regarding the to a on something you mentioned on tone that I address at think this Eric addressing touch this. different bit on Is I’ll first just expect structure

Eric Batchelder

very continue so. are spending quarter lot I have quarter, think we've do active that seen and as to a business busy you a we time executing had of very the

options, the evaluating a to sentiment cases. I structure long-term that the bucket for it executive an the see these spent actively things success, we’re investor We we're lot we’ve hear there potential into at and GP/LP and on the talking investors. think regular we as goes is in sure the this do making some we that all time point team. focused of the is discount a but of very And basis right

TJ Schultz

they of activity. If on and just volumes, just I the Oklahoma staggered of given are tie-ins to cadence trying am for think to just go some about the I growth the volumes development the

volumes on think XXXX I to guided You've Oklahoma rate volumes can exit But you XX% in color provide growth any projected in year-over-year. Oklahoma?

Ben Lamb

you'll our growth XXXX On actuals increase Oklahoma in volume you’re XX% on right, that. the and we guidance is roughly XXXX achieving way to first results, a that our well with see quarter over are

So guidance. are of I that feel we achieving where about good terms in really

remind cadence quarter. the to the to Now and point, increase steady is quarters for every the on that previous saying over been not everyone the quarter same we've you the expect of that opportunity I'll few last should percentage is, something take see

it was last about XX%, This a quarter quarter little were up we bit lower.

quarter but have on over biggest one system system guiding flat the Devon as next XXXX. quarter into second look quarter to producer producer XXXX on you just our first relatively If our you

are the and so good they volume the not and the And about feel so system, of look biggest our But I we’ll about guidance. we that producer our while have in are an I where our very for are forward they only when XQ. very, element year, certainly achieving on again

TJ Schultz

does area? on hop that gas just driving Thanks. off, the your there refurbishing pipes are on to kind your just of you that your to performance, trajectory above systems on that impacts guess repurpose general expectations. lastly where relative how Can I tracking volume I'll and in need are capacity guidance gas in view what’s the volumes volumes and Louisiana and Louisiana expand

Mac Hummel

in way in very noticed say teams Yes, demand systems, meaningful team It business. we that our continue combined I reflects increasing focus we’ll a I that on hard that of the business. am and have really side strong as row glad Louisiana to the as continues the moving way the in of to our growing to our Louisiana. just gathering capacity what us of We're see on you gas quarters the Louisiana business. expect now continued performance in demand of execution the participate eight and managed the at volumes good transmission those And in business. to grow, Because continue grow it’s a

We River are over all moving literally them picking volumes state up the and Mississippi corridor. to

number take moves to that on single we So going of there's efficient very, an says, a got a back. so absolute lot very capacity and

do there. misleading too we’re teams what on So not the very impact the in of gas business have all the the bit I truthfully little do continued to the probably a think conversion. flexibility to really regards to growth hard of because side it’s it thinking That with does built

work on We to continue that.

that. to continue put We resources on

continue potential to from talk liquid are the repurposing and of business. potential counterparties customers. initiated side Many the counterparties to discussions or the by We those to potential of customers of gas side

as to just to conversion ongoing but of an the this that continue Louisiana we So business, hard overall at piece point. work process specific results on report no our

Operator

next question from The Tonet comes Jeremy JPMorgan. with

Rahul Krotthapalli

is my and This for on questions for Rahul taking thanks Jeremy, here.

also opening you to elaborate your all you on mean with five you the remarks highlighted growth they here, Just curious have the of three on the further can given for Louisiana pretty a remainder how are been you having seeing gas with the bit which here volumes I year continuing your for the shape years? plans been on customers next conversations segment and the strong. just And the in

Mac Hummel

for expectations the we good expectation a Louisiana have regards our business for gas quarter Again we had in first business the to QX. with very on right

expectations do QX think With good to now. again that's think of that it team the to with perspective expectations our five about We've to years, got I relative an our set a we’re to regards it full in year. for speaks long Louisiana opportunity the that looking comments looking that that that are very strong in dated. and seen should right number year We we three expect volumes I quite really the regards business. out performance XXXX at Louisiana we've the perform execution to of projects at at first to growth financial from exceed very a

we’re bit just big the some So if we we and if resources that projects simply look at they’re to the that or too, look conversion putting dated combined of long of to customer opportunities necessary gas the and/or time value at think currently perhaps more realize decision are terms in we that the the of cycle time potential business. our execution with into

Rahul Krotthapalli

on any and like to trend the you if the it on additional has and a provide there have anything this producer Devon's to in can moving seem the how coming to do quarter, this then And margin acreage here is up quite Texas, stepped bit new going forward? color with could

Ben Lamb

our not driver Texas I add we on a contract I quarter-to-quarter. No in clear really unit real color on moving on can some have around. mean always North margins there businesses There's mix in

Mike Garberding

and the Whether is thing see of forward Dow, again important ventures sales with really you the note the to County, look the as have we’ve you far think there to the about. that lot takeaway. I if on what look I the think the momentum Texas that a as there that's this important of to - Johnson we I asset talked whether joint quarter has the is momentum is what would things you Devon guys more volumes execution in it’s it’s just see we

Rahul Krotthapalli

just stem XX natural the JV some the to it the or planned am from curious I of Devon the and if Barnett. declines Dowd declines for wells going to in will the completely there mitigate it’s XXXX sufficient be just

Mike Garberding

in all is they on the one Barnett where year in rest the the So planned this on capital Barnett. take Rich. element so refrac XX When stemming or flat for their lean plan venture so retained year point the that Barnett joint that that’s have the them also guiding you gets the of volume Dowdupont primarily wells in of of Devon’s about the in just They part toward XX for acreage. Barnett together decline of really the that are that to the so

know we bought. in near of Johnson that acreage recently optimizing sold discussions to what enough acreage the that on the been their going On focus term package with that we and County they have the to plans buyer they know are

So production bringing begin to may production have then rig perhaps term refracs restoring that at some in. off looking longer wells and been they at look perhaps a

broader that be of properties all And more when we will volume together focused EnLink properties Barnett So JV retain our who flat part producer a the growth what been. a picture XXXX into that’s XX% adjusted our X% County than informs their sale you big believe is Devon and EBITDA on guidance of XXXX to it the the Dowdupont our Johnson XXXX looking on to Devon over take of for of confidence guidance. from Barnett the has then

Rahul Krotthapalli

good one Just to this a going run is like have picked there? forward. thing seem like is the color question, this can some it one-time housekeeping rate quarter lower you add Any last like or SG&A

Mike Garberding

It as rate we that expect on say on as but so range for very and about it’s think a see standpoint, to is and you would push XXXX, far what focused around we that. business we in the something I are running to run and from continue how

Operator

Please from with The next question Gershuni go ahead. will Shneur be UBS.

Shneur Gershuni

A lot reconfirm my but I asked, actually want do been of have things. of to questions couple a

characterize the an you incremental as this on about versus is change say to in you question, thinking updated off January/February us let’s simplification last tone it, timeframe? it where fair when First were

Mike Garberding

market. the say is at continually that I options. look to our what our continually continually We look we and So listen investors we would at

is the evaluation have options. change anything tone driven is the much then as as market. think and different options done those by market how of And I at people we’ve really the seen looking

on is trying change. but the to long-term So change it what our that’s focus that to that. really from or solution, one been get to anything is if tone It a there isn’t ultimately we’re regard with

Shneur Gershuni

were agencies potentially eliminate combine all would And through Devon be some if sell a in credit profile. to could that that look given entities have the at you this enhancing can and two units rating the to credit Devon risk it the the wait C

Eric Batchelder

We continued I rating to on and generally focused in the say can you agency imagine. we we activities them the have building report looking at dialogue our we that metrics to discussed be would them regular leverage continuing on aren’t seen consistent the and rating with as that that the have maintain with speculating and with and that you our coverage.

I note think EBITDA year, also getting important the one that the metrics Barry that agencies pointing we and of the financial were mentioned billion overall of that thing evaluate. $X is they milestone as the to top which significant really at is are this focused a as on part towards for of company is

Shneur Gershuni

some there the a follow-ups JV it respect the When in to we put above modeling that is the are when that from the had line. have - couple about your in comments altogether level other I of the that think you expectation MVCs to you is and last you And with other Devon/Dowd Barnett MVC the prospective made to of question. going the kind

Just your for XXXX? talked about momentum development can you on and sort as the new XXXX then that of end range that guidance XXXX you part wondering of take if midpoint does of versus growth higher in this you into comment

Ben Lamb

on Let MVC me the question. start

at like this did guidance. deal We going expected enter Dowdupont a time the we the Devon into and were to

for so volume baked or And is gave no guidance so the year so there the into $XX our MVC – that $XX wells million. are deal on payment this to change you of expectation the the and XXXX XX million to we

think XXXX there, when So change about forward you the momentum. and think I that no though

focusing pretty unique how gives the a by worth fair going and rich that Barnett next bit on is I think of us be this that fact customer into it’s few that entered into visibility years. the to particular developed is arrangement over has Devon the a

right have drill two on year-to-date wells We customers is now. Barnett one location had also in actually other rich the

the rigs honest two in Barnett running we As today. have

we this change this In there to Mike terms going in of end year guidance the so of I’ll but driving was here, outlook. add anticipated no high towards XXXX real the happen deal and on again Eric that is let

Eric Batchelder

Yes, no I agree with Ben.

I so. pretty excited that still is we see going think have the Barnett big people about looking and this step takeaway change in the on where a for is this very that the and momentum been is we’re

Operator

is Matthew ahead. with Phillips Securities. up Guggenheim go Please Next

Matthew Phillips

on It the Barnett really to stabilizing years of to development, dig there activity production. I here. XX in wells, I bit been a is mean the Follow What want up wells a interesting hasn’t the for few XX guidance ton there past seemed little you of made look cadence decisions a vague a was. term those XX How terms it wasn’t through to in bit XXX and longer do clear it are on that? but quite expect what the when

Ben Lamb

stuff Johnson that is the of As acreage acreage so flat toward guiding retained the the sold remainder in you County. the recently they production think about here on well are got picture first let me clarify not broad one for thing. retained Devon But year. The

over refracs they wells to in and the the a lane. are guiding have also Dowdupont So actual it’s production is year not XX QX JV primarily XX Barnett about of the end the and there course flat just or the that’s the roughly

gets together you to roughly flat with respect things just two a to those volume So profile Devon.

then what take step other people So doing. are another and say

know said producers ago year. other two I year. We additional this drill later some producers wells drilling we’ve minute by plans a this had As non-Devon

County here May XXXX how pass look where is Johnson you for sitting focused be Xnd. that the Barnett in be you we at would spot joint the to been I going volume but judgment today Now too say a joint of translate sale guidance Devon early what we’re tell refracs can’t Barnett a XX on to venture, does for today than we’re we’ve in talking if with the the operator. Dowd about combining years. I venture the It to And better are today more in Dowd XXXX then can’t guidance that, flat properties into the on to

Matthew Phillips

the in on County we acreage would I term, that public anytime announcement something will get this On point. able a that to so it’s public we a near guidance the some buyer private be expect Johnson mean we understand is on it

Eric Batchelder

But on there filings I buyer identify. couple everybody fact a if everything is. will them Devon that it don’t going the or the I’m is of on months. of and with the with any be to that a in public making become be they’re the over clear And to confident of private the had more public know that we’ve I’m meetings the I of getting that part out everybody clear intention properties. who buyers notwithstanding what on comment focused sure investment is land they records here to already most course time the those and for on close - announcement can couple they’re to regarding don’t make

Operator

Our comes question Darren James. from with Raymond Horowitz next

Darren Horowitz

lot developments could could of this next the CapEx for guys crew additional you you about you what start think on and to aggregate like Redbud look do growing that with change development how the gathering think Coyote you What the the year. with think executes Black that by talked growth GMP about platform exiting On as those expansions is are Devon and beyond acres that the happening development? that year’s underway overlapping six crew do in stack. hopefully When ramping

Mike Garberding

the news. highlight about today Darren, of Redbud this So capital then might is let let’s expected the system be first the start in of producers STACK. announcement add is and want will year may Mac the biggest five just pause for and which the new one $XX that others million me on, in a The another or minute to

on the on are when of primary and it you connectivity the scale three and the which to commodity all believe better the else the crude our GMP big anyone now the really three footprint the our those I any of makes than would well way two operations commodities. basin in cover, our gathering So we in in unique be developing crude in basin Cajun STACK oil we having for of five premier argue will the the with STACK combine that Sibon I in us streams of gatherer

but about enough because that our for to the CapEx do what basin. are on specifically the do platform on the in to timing comment I best can’t they’re going what of producers know gathering having do crude going I well we to XXXX, into are and I growth know way that the don’t Now

Mac Hummel

follow I’ll just there. this Darren is and Yes, Mac. on

over in think Oklahoma, is to you businesses the important our a can we’re is what our greater by build-out is some we crude gathering element that have related versus what a in Oklahoma Coyote see time crude there in exciting successes in crude today, of that’s we continued will Black our Redbud certainly talking oil, I oil falling and crude gathering business position. about we so what the announced demonstrate system today, system pipeline just

in Chickadee We on we the Basin. our system Permian have gain that announced customers

success that think I generate will only success. more

in additional what that’s I think respond and clearly our opportunities will our it expectation that business. is crude

business also. performance look the in see XXXX, see in see we through As and growth balance to segment you’ll of continue expectations - crude crude increasing the our volume you’ll are our business

Mike Garberding

because on is kind capital, STACK volumes in, capital. coming So what just addition, this seeing think us so I you see we for of versus incredibly This good the and and a system real their can development as if Devon’s of kind is we’re think go opportunity. stuff about pads how of about far quick great just capital what would efficient is the to capital are say map as what on kind to

Mac Hummel

everybody large at answer Devon’s more understands that want as year. I will one the the add you the you on you sure wanted. are to look rest for report. probably time, scale of you than look When developments remaining I at more getting operations make

weeks, next production, Showboat has ML of the and Geis, looking year's just the Bernhardt Cascade Kraken last began into development Horsefly, in So development. couple production which the

expected are system. come those of Coyote All to to Black the

Darren Horowitz

from you’re which in I you know terms for the it don’t XX% push Oklahoma move weigh sense liquids If first further that Central while think in having know when How versus I physical of the Cajun and has you’re Cajun and this in justify but that those NGLs shifting could I call makes that just discussed process and of right larger backstop the comment is kind and talked up switching in you visibility to about what been color volumes the Cajun not where partner of Oklahoma Louisiana east to on with but even East quarter, continuing does hydrocarbons leveraging hook more Central is you capacity a about Permian. as now guys full to something in volumes or or you effectively with continuing maybe to the Permian, Belvieu, to more utilization whether see it the JV from the optionality, think XX% expand as those real about with doing I you Gulf just Belvieu? thought even to coming quick expanding composition now on especially value Coast to have and the over appreciate on capacity guys capital and the the gears all Mont that into and to coming regard frac chain whether

Mac Hummel

see those. connecting upstream the Certainly more value that fact volumes volumes that locations. chain, Louisiana growing put and you you a report create to to the opportunity in we’re in the particular and don’t our I’m expand mentioned area. Belvieu those can or out stats we’re businesses something either I about our to either for excited impetus necessarily of into of think that couple more glad Those an us we in do NGL one for of those the create

to growing opportunity going regards know answers a we kind it be be JV. or are got that. opportunities gives whether to talked in in are they the if at outside to two a to expand JV or they’re auctions of a they we do in or Belvieu growth include we volume or something if it’s still with at doesn’t number of fact continue the thing whether options whether all that going is general the great a think it the a of quarter I and of to support into looking I be to Belvieu There Louisiana I be it the look for portfolio now about we’re the think us includes we’ve and considering of Belvieu. about

Operator

with ahead. The next go Tuohy Brothers. Shere from Please be Craig question will

Craig Shere

there the the Gulf then be had opportunities seems this, shares before would and by with On it ATM do some like held self opportunities along you you having the CapEx potentially little which of are of a with may multiyear funding you Louisiana kind rather is think of to growth and incremental need large that agree projects tapping announced Mexico, But CapEx the that NGL accretive evaluation to finish structure. major concerns keep great. you back and units of equity the of some probably and corporate spend. Do portion about your issue

Mike Garberding

key it spend really balance next think three Midland a growth the question, very and is we've and we've when we Louisiana quite one of couple in this is, opportunities being years today. I how Delaware years. if done at the to sheet over then that we of a is when prudently I three Two is that, so Mac good bit said at think about in years you capital being there about five us had has that cycle position in talked look It’s we look good think are sort through manning job put three as the growth Oklahoma, a things, you it a at our last

do trying that and capital focus return capital on as ours. to need sure times nicely be that that matters. high of that a making But So that of accretive we're to yes, doing contemplate projects, our we with because to there opportunities. is cost so finance of we is all those and a very and on think timing We're smart we items

Craig Shere

really cost you the is the Do of people IDRs you issue think or that the the concern the it that relationship. - or primary entire on are MLP from is or that hearing capital issue

Mike Garberding

we in some think are I last at said broader was your a is that the question differently think structure and evolution evolved so his do that comments, of on those cost look of difference. and IDRs believe MLP seeing market as look I the but probably the it is has at Eric if today driving lot we capital that more discussion which to the of year to at alluded you started second the Eric that point

Craig Shere

Last question, elaborate their potential CapEx type you might aggregate range about can little non-core support the help assets spend. a value that XXXX of and

Eric Batchelder

to $X million reiterate that say When we non-core to our that and lot else are truly more are oftentimes sales ATM and to year, this non-core really really would stuff about $XXX We less so they that a that talking these we're is about of the around assets be in thus to alluded on total ATM us, million. about a non-core it small and guidance nobody's someone are pieces was far might we the issued valuable small asset put frankly core and I earlier heard than edges. that asset sales to-date than

Craig Shere

the it to million? aggregate that majority Could of $XXX

Eric Batchelder

done with a last is growth year I with comfortable said, good fund CapEx liquidity and years capital and year balance our think Mike and we've the question spend few the we financing we that. to the position sheet our this and has comfortable job for broader the over feel the feel analyzing as about have balance broadly managing sheet

Operator

Barrett go MUFG The Please with ahead. next Securities. Blaschke question is from

Barrett Blaschke

the are where As to with assets want MLC. and on you're and thoughts what evaluating assets structure the of kind you Any up today. sitting Oklahoma at do of just non-controlling component

Eric Batchelder

we factors for that managing business would of look always at evaluating dynamic in company I piece prevents everything say there options There we’re is that other into of to the and the are long-term. is all lot along with piece the that but the we’re including really context structural we a evaluating else in sure the that properly go entire MLC. that fits the make nothing that dropdown that different

Barrett Blaschke

about or we things X.X is, up for the increases considerations here. of other kind the and fading quarter, lines? really just when of maybe whether seem And with bit second better hey guess those much coverage NGL then this talking in along of little does I about seasonality for a here market How distribution some higher deferral, back about back - other the with its to it's starting is time and ticking quarter do like the maintenance know you’re I was coverage kind thing think it creep the

Mike Garberding

coverage prudence a referenced CapEx I that also of And our and of a funding the it's and leverage manage as continuing get think lot funding to managing leverage. it mode that forward self is more to to maintain a there and on And pull go funding balance is self you CapEx and and of about properly. the into we’re position. to whether overall it distribution includes relates how the overall coverage lot in so into we on think increase all to we’ll as of sheet can utilize factors we things access leverage there there that with that go how includes self but those levers evaluate

into we the of I think that pod that think and all about goes collectively.

Operator

Citigroup. question Zak next of will Mirek be The from

Mirek Zak

Just a from one quick me.

And or your was acreage On well there driven adjusted the have Midland the rest by this differentials of completions in quarter, the outlook it’s something Delaware to completely and that XXXX? quarter this and completion it. for pace weaker assumptions you you did see the that on else

Ben Lamb

differentials. anything it Actually do I the had with think to don’t basis

XX with to one conscious a case do our seven maybe we've four wells issues, from single two well and or to broader to is plus had in seen pads. customer three pads producer transition it two in base think to I

of more And this this the transition some of last on that big had we those a transition so wait a gap of we that Basin just online. volume year. growth seeing And bit creates year, Midland come to we’re in Oklahoma in in while projects as

it from harder Second unique us our general producers making think in customer and our base. in and services that's to market thus timely a get is things done I oilfield thing to far tightness the for way

seeing that across we’re the think I Permian.

story, that but last Midland are which growth we we very attractive is year end that even back a budget year. our first a going time expectations story we In terms much our the in slower this expectations, same rate Oklahoma were exit Basin I the see side weighted certainly did the to very what think half, of saw may that in at for with in the exceed

Mirek Zak

or was one, more related one regarding was CapEx opportunities, the Louisiana gas more that the just actually quick reduction NGL around side in that what And $XX million to? on

Mike Garberding

a the at is the look came portfolio about. then like of look the at which Mac of talked in we again saw opportunities we really or part and that you opportunities CapEx Redbud Louisiana So timing

So, timing we of just it still think are really we will execute when the there those. those on

to for us so did business. new us with it remain CapEx neutral allow And

Mike Garberding

understand. your let And additional I that Mirek me make to think go folks point one back to maybe first interested question

Basin Midland then we the the gas of residue more have there. intrastate we utilizing. side, On And processing we do that the firm even we almost pipelines or market the - all transportation of for gas on one currently

So that gas little take about large Delaware the those needs expect anything a very competitive Midland I has fact been for Basin, on very the don't is us right talk there not and you to because gas know a you it lot away don't if it and it an I as I the for side, now is issue Basin a I can in customer plan independence to want primarily know advantage. be issue well. and market of majors, over of of much expect to their out of cap basin. bit an really the our there, we appreciate be just base

are positioned anyone we - to So in relative takeaway think right is as hear Permian, the all around the well now. noise you I as

Operator

Praneeth go [Operator Instructions] Wells Satish ahead. Please Fargo. comes next from question The with

Praneeth Satish

and Devon or sales events? corporate those do contemplating process before simplification at need look clarity the you independent are you assets on for simplification, more see to As - structure wait

Mike Garberding

independent just We is thinking I one reliant Devon work would upon those mentioned the as as not through but with other. look at hand-in-hand events. Eric

Praneeth Satish

you you firm And transport on you how the like I have sounds than side, an out some that figure transport that then there Is residue excess just to you gas sell - guess just tight, on more could of is need. pretty much side take more the Midland there. capacity, away trying to opportunity have capacity

Mike Garberding

our that help we in dedicated are to the a were using actively marketing then takeaway the producers that position of we the gas first to job in our a that assets not all money make firm have maximize for way. group manages position sure we extent value along the and We some other then and to it make

something actively is that it So every manage day. we

pretty for we message take gas out a not, fact the are Basin concern that though not and the in about near-term think away being is, to to everyone no in dedicated at there's move attractive to I price. Midland our system able

Operator

The Fargo Securities. be from Payne Ross next question with Wells will

Ross Payne

somebody That’s regardless uncertainty the and ready you on from the marker exceed guys whether be congratulations can and and the with else ownership getting a EBITDA. to in or standalone of Devon of billion to that investment link rating kind of who ultimately will dollars First owns agencies some over Devon, of all it think getting you standpoint. grade close do for

Eric Batchelder

rating you think can would speculate I basis are as know our something. we are don't I to are standalone talked mentioned what think in but billion sort in and you to as we if want add we dialogue you imagine, dollars striving agencies the and we to is adjust of important pretty hard have with be. I regularly don't that position to a Mike

Mike Garberding

to that. it’s think coverage, executing be that. to leverage, going job we've And to scale, and going going will a be it's with standing are on we what Eric agencies I think are is those the how hard really going diversity those very all it's be and good funding, they understanding through lines, of would very Eric a we that, reiterate from what size, point work rating done on about to exactly focused walk it's be said standalone self

that's pushing off. business. is focus that as and our So keep can we going a to we are thing That's control the what

Operator

this back and to any the I concludes conference would gentlemen, turn over Garberding Ladies Mike question-and-answer closing for remarks. session. like our to

Mike Garberding

Chad your on XXXX forward call and support. QX everyone for our look participation for this results Thank morning, for on facilitating today. you to Thank We and our for August. you, the your you call updating in

Operator

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

now disconnect. You may

EnLink Midstream Partners (ENLK) 2 May 182018 Q1 Earnings call transcript