ENLK - Earnings call transcript Q4 2018 | EnLink Midstream Partners LP

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the EnLink Midstream Fourth Quarter and Full Year 2018 Earnings Call. [Operator Instructions] Please note that this event is being recorded, today Wednesday February 20, 2019, at 9 AM Eastern Time. I would now like to turn the meeting over to Kate Walsh, Vice President of Investor Relations. Please go ahead ma'am.

Kate Walsh

morning good and you, everyone. Thank joining Thank Midstream's as to EnLink today quarter you our and outlook. well for fourth as full discuss earnings, us year future XXXX Mike today Batchelder, Eric Vice Operating Executive President Officer; Davis, the Vice Executive Financial Executive are Chief Ben on and Chief call Executive Participating Officer. Chairman; and Garberding, and President President Officer; Chief Barry Lamb, and website. we and Relations call today's have our operations portion to accompany earnings release posted To press Investor report the of our Shortly will webcast after we replay on a today's make available call, also our website. statements remind you predictions during will statements about the I call considered laws. the be including that within or made expectations Securities this of meaning Federal our conference the forward-looking future, should statements. Actual is results may differ forward-looking from materially what these described in

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

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

Barry Davis

you, strong and we good everyone. Thank the fiscal morning, discuss for newly have our quarter you outlook fourth our and and our Kate, for exceptional all EnLink. to simplified, beyond XXXX performance Thank results, exciting joining us XXXX

turn I will I’ll a the as our remarks. EnLink. fifth In make XXXX, quick few Mike to of team, over and March the celebrate Before call we year

Looking I proudly midstream back that differentiated long-term have a platform sustainable the at value built past for five can years, say creation. created we

As outlook, cash you our and future are from growing EnLink’s can generating XXXX flow. see results excellent strong our and assets

integrated platform. We intentional asset have been disciplined, in and our large building proactive

basins centers to We we located Gulf in Coast. growing connected production and key are demand premier are like the

that We’re poised incredibly well to is positioned improve. in a believe market we

front of to access by considerable will market in with There capital be and at And level. and ultimately midstream them. creation. and the In are those old, we’ve What five Board Although been Value their chain value EnLink across simplification, seen markets are creation. EnLink’s capital the only heightening investors energy is seasoned team focused asset are the opinion, to efficient allocation value recently the what tremendous at my on both on. years focus and push corporate and for is effective the creation energy level always execute exactly that companies will has ability continue economic opportunities have is to management upside professionals. and undervalued EnLink corporate opportunities value thrive. Financial

next and ahead I phase characterize for I the way. growth executing that And growth capitalize to-date. EnLink, every team growth. of Partners will know growth on. driving high done It’s bright When right strong our our the relationships future at bolt-on of I tremendous they for focus the upcoming opportunities a on wheelhouse. low project we’ve in us want Our see look as of the EnLink’s growth backyard our type I I Infrastructure has unitholders customers, step return, Global see this our partner risk, strategic deep, job right to of next developed supporting phase on midstream. with our the us And in is

expanding strong I We across to and to together, with our and I’ll growth a mutually with partners track all To relationships risk, have record you high customers mentioned. bring high low we’ll with leave this. back of happen execute commodities return quality continue that make that beneficial all projects the just

upside value platform create operating us discipline impressive sets a to our intention. team and the not up have coupled returns could to of total for industry companies. long-term. over Mike, for a We in tremendous purposely There unitholders. roster customers asset valuations well-positioned be to with better relationships This deliver positioned deliver with attractive you. very our over deep EnLink strong midstream built is and to and And today, growth

Michael Garberding

positioned That creation. thing we sustainable Thanks, one long-term in are is for is a Barry, take morning, and it value good want focus is as If business. I our belief there everyone. everyone well away how our to

You in execution, risk, great our our platform feel about strategic position the return on on our near-term our focus projects relationships, high will and low business. in of we see our in that XXXX team’s deep customer

significantly quarter grew XXXX base. asset off EnLink. on Focusing the a results, tremendous our year fourth capped for We

our segment, volumes EBITDA strengthened to increased and chain. previously STACK. We in We the own in had EnLink and attractive one operate of Average also our We delivered we further results. the multi-commodity built the corporate largest XXXX, sheet. natural our during integrated adjusted executed our XX% of gas continued fully We outstanding the expand platform great volumes which largest purposely for year. balance of drove very performance now processing integrate businesses record structure. segment. during our to increased We increased our simplified distribution the ultimately, on Oklahoma is XXXX. And We guidance midstream which EBITDA ENLC. high-end find value asset adjusted the opportunities

link significant our to to NGL growing amount take of Oklahoma from growing continue gas chain title operations enhance liquids a integration. Louisiana value natural produced platform. liquids We to those and We our

As a XX%. growth in segment strong experienced around NGL result, XXXX our Louisiana volume of

the have Black largest service, Coyote Marathon. in Devon the system are of We in producers, and the Oklahoma two crude Central our and Redbud serving increasing gathering system and full operations

XX%. business Basin Executing had XX% year-over-year confidence EnLink. also after around related for operations volumes $XXX growth growing XX%. three our a adjusted drove around gives base three, guidance segment growth three three growth parties strength profit in payments. XXXX years. Permian Two, our million roll-off projected business And at it's growth projected past of approximately annual with XX% year on our XXXX from $X.XX the close efficiency the the year-over-year. processing of in segment year of our XXXX gathering cumulative growth projected strong and very EBITDA opportunities drivers gas EBITDA crude XXXX billion; and year One, us next annual And to to outlook of Permian and for profit XX% Oklahoma of Our this cumulative in approximately that adjusted growth bolt-on XX%

the that the through business standpoint, expected in a be dynamics of Permian Permian, to to domestic counties strong expanse growth production supported three today. with Much to to this the will this XX% transported have position Basin seeing In production. to Permian a is liquids ideally where of production Anadarko the upcoming XXXX for XXX% account are in supply Coast platform growth this expected associated growth remain in liquids is growth. In from and fundamentals is strong. benefit strong positioned XX% growth by exceed the From on oil we are of positioned core and growing Solid well are demand growth producing to Basin and to from in very the XXXX capitalize XXXX. is State. Again our in and we growing Gulf expected the of best XXXX Oklahoma our U.S. to operations gas

to positioned network NGL in connect high region. infrastructure to crude optimally Louisiana this demand Our gas, is and

number a working innovative closely in take exciting drive years. customer at our actively repeat and our growth. working services. with essentially business customers relationships opportunities across growth, fundamentals of we provide improving strong commodities. We all roster are Basin are are opportunities, to With as with closely growth repeat to for whom backdrop back solutions continue will customers our best with many some successes, of for most repeat and repeat a of we Deep phase business of a next working been We look significant them on have

able increased growth our there One is product of existing also expected with to multiple a times provide is to favorite three efficiently, and Louisiana positioned is announced were in projects recently them perfect and to expand example with us. we've a take This little market solution to where ready for This of tremendous the innovative EBITDA capital. months. my III return further an quickly that expansion very adjusted existing nine This project with two our and assets the are us expansion. customers an we And has took an in-service from of timeframe excess fractionation. of Cajun-Sibon

We starting have for existing with contracted facility XXXX. an additional in third-party fractionation

the the this optionality starting of in XXXX, with excess Belvieu have leg we'll we great capacity for with in fractionation you Mountain preserving pair near-term next position growth. while facility a If our are GCF for

are efficient platform. connects built are are lower $X.X with three billion as strategic do five They're the term These capital capital billion risk around of longer and term us six driving $X.X what asset to three opportunities. next times total spend that near our over projects purposely years. growth to we that capital for incredibly growth compression projected The the and years of the of such well multiples existing on efficient Our fairway EBITDA projects sets every adjusted are platform day. down and well so straight over multi-commodity up next things

the demand production sets strong also incredible as fundamentals us of supported next up growth. this opportunity for market growth. domestic of Louisiana platform given an growing Our mentioned leg by well I the

commodities; participants. and position; not of deep relationships forms be the all expansion Opportunities many and transportation; gas expansion come expansion could our fractionation delivery. expansion our assets can product Our in with our of across better demand of our market we purity positioned use exports; of end have

on the executing opportunities. these longer team term right We have

us to And back our value so it on focus long-term creation. leads

Our platform multiples. capital us with term to efficient adjusted six EBITDA clearly projects times focusing provides near through asset five strategic growth on

execution excellence. provided allocation. customer an give and Our overview to will continue opportunities philosophy our our I'll provide the to now around to call will performance have and capital drive continue strong to and financial Eric, our turn team of multi-commodity and over culture relationships deep

Eric Batchelder

Thank everyone. and morning you Mike good

numbers, successfully simplification XXXX going will a on the XX, forward we on basis. will report consolidated ENLC start that January I remind for transaction Before our results on and everyone I closed our

into geographically-based feel that how updated align We Texas Louisiana. segments; are also have managing the primarily operational our business. four with reporting these and better We segment North Permian, Oklahoma, segments we

distributions achieved represents XX% adjusted both annual we to for which for growth for quarter full and XX% by declared results fourth financial strong delivered an start growth I’ll quarter representing for XXXX. available respectively cash From year EBITDA EnLink highlighted, net fourth from XXXX with $XXX and results of with the reported ENLC, XXXX. XXXX increase X% of distributions. perspective, full have ENLC $X.XXX comparable the full of Mike the continued and approximately annual XXXX year million over for annual billion quarterly Barry and X% throughout its distributions ENLK XXXX ENLK As which increasing approximately year periods. million declared $XXX from to distribution, XXXX,

plan. EnLink Our job our the direct outstanding the entire executing a is success result on team of has done financial

DCF us full and and growth net the to Permian were results XXXX, Oklahoma year our full fourth year position of was navigate under up From Crude growth EBITDA X.XX to effectively double-digit as operations times XXXX. contract the than XX% to XXXX. our the of credit capital exceeded coming fourth debt-to-adjusted better Condensate was facility. very X.XX year for up as year. achieving seeing $XX up X.XX we achieved cash to segment. XXXX. as flow quarter Condensate been expenditures growth up distribution ratio in times very of XXXX. XXXX. capital distributable guidance times fourth XX% program equity a priority strong the compared improve our the results XXXX largely quarter over terms as restructuring compared were after-market the for points as are profit and the during million key flows range fourth that XXXX and year. Strengthening of up pleased Permian at the in little in we of perspective, ENLK ENLK’s of compared one-time is Crude Due XXXX. as and XX% as flow cash the XXXX us of to compared XX% and of and allows XX% from over key full our we stronger we compared a flexibility of segment stronger gives to of cash gathering us of was our the results well balance we full by leverage in Our cash a distribution from the ENLK to to the year with calculated DCF quarter continued XXXX are in up our we of of business, ended A by metric expected business. this the full also year a with a the In Oklahoma the amount the increasing driven compared our perspective, XX% our raised an From we equity to the by sheet, XXXX. as XX% and strong and via ratio up processing that the distribution issued and from quarter flow total, to over to fourth coverage for a markets. also as approximately quarter and for financial previously of the coverage, coverage demonstrates has expectations, coverage which year high-end increased self-fund

a $X.X year maintain continue flexible close exited and We the of revolver to availability with position liquidity ENLK billion. to

to In XXXX, capital combination on in growth ENLC year refinanced The facilities enter into credit on million growth five facility. and to ENLK three closing and $XXX December execute closed significantly reliance single projects liquidity these XXXX, have revolving we two of we simplification, we we our Upon up to our significant and markets. an XXXX finance consolidated billion credit the continue sets $X.XX a on our term of flexibility year loan. of us financings projects. reduces As

facility be Our asset our as borrowings under under capital our XXXX sales issuances non-core will credit program of excess distributions, well cash program. flow as revolving equity with funded after payment limited and aftermarket limited

are sheet long-term remain coverage of and enhance X.X times And growing power unit XXXX, cash times strengthening from times debt to X.X of each tenets per By plus increasing from our significantly our long-term XX% year growth by target we per unit XXXX XXXX of Our or unchanged. EBITDA times. to to cash X X.X through balance continue more financial to flow distributable XX% distribution distributable flow through and we growth. to XXXX distribution adjusted

to capital continue We distribution XXXX. year will to allocate prudently and are growth X% XX% targeting through per

years tax characterized anticipates We paying three provides which return quarterly deferral investors. turn tax a that vehicle touch next one the attractive wake is currently EnLink the lot investors. I for back be I'll non-taxable for Before expect I to to capital continues simplification. it an investment to point a out as of for distributions many over our a of efficient EnLink tax on that strategy worth reinforcing be very other in the of Mike, think purposes

around Mike. outlook our back and gives value I'll over sustainably over returning clarity visibility to turn creating term. that now into strong commitment With long it and Our the financial to

Michael Garberding

Eric. what and sum all on. up, are is executing creation each Thanks to EnLink team excellence we purposely with To dedicated a build every our value assets it plan platforms has day. and focused

you continue will opportunities. our to in plus our that, the results up industry drive questions. like and XXXX. delivered provided plus will call just And open our assets people the in customer for provide deep relationships are may future we and have strong that We robust With relationships

Operator

of Shneur ahead. UBS. your first Thank will go Please you, be And sir. from Gershuni question [Operator Instructions]

Shneur Gershuni

guidance you everything you sensitivities can, from out off that can the us in put that on rig recent would wondering in put the originally through update you I good when guys. Transaction. going were guess context to give impact we was should just growth and Hey, XXXX. about the rates. if available how And how count I and if you most some it when wanted on Simplification Devon also to I for start morning, think changes was

Michael Garberding

Hey, Shneur, is Mike. this

details. Ben know, execution was walk across the to that, drive context when all about this we start confidence the tremendous Let all I’ll give to through growth. And to and great I let But we platform, about in XXXX you platforms. across you ‘XX think the ‘XX. think think then me have guidance, the commodities and and results built, ‘XX ultimately

continuation standpoint Oklahoma coming Thunderbird, So Bolt on we to where Lobo service of could not set be also better and platforms. have, a over those ‘XX, Cajun-Sibon from III positioned. project all III the the again, us Delaware Crude, Systems, Crude into of first Avenger up half you building It

we've that of of Ben because through the the incredibly we're confident well the going capital up we in half be year. first place large majority efficient the the And scale for ourselves as So really will set on. into let walk believe piece of volume equally ‘XX projects growth which I'll and

Benjamin Lamb

hi, Yeah, Shneur.

in So on what they can guide in XX% to have is simultaneously Devon us increase figure that seeing a production you're to their you're statement how out report flat be referring and STACK, think trying the expect to volume they gathered in ops those true. you're and I

start is the in XX wells to STACK. to the guiding XX turned critical So Devon's sales to to thing with

STACK. about The two they're is to we wells guidance reason premised guide can guide for flat in sales XX on because numbers. Our growth is that turned Devon different the to and to they

them and consider they this of year to interest doing have you year, consider doesn't but For to is what revenue what terms doing Devon us lower to the what last have sales. their in impacts in and non-op they're they're it's it's on wells you assets You've this are opposition so year versus net consider net production, which impact their drilling

part anything in they play less sold but continue that the new owner. package doesn't year, northwest of change us the production serve because to the them far for So because it sold, we very looks for a like it last

what your we Stepping question about on sensitivity, this and goes focused operated to wells. on is we're everybody I'll and well going get in expectation on about be rig focus Shneur focused say count production count. off So is with more line less their into going guys at to count what's XX their gross development rig because track you’re you to mode, harder on for too, as

Devon at XX with to to XX for just looking rig in you program if five wells STACK, again, stay a four turning the they’re minute, to So sales. a

there, a that a XXX Go over to there wells. is So the XX program, they’re in a to few XXX ducks in twice running remember just running, but they’re Delaware number. guiding the but capital and rigs

is small focus that rig the area efficiency play versus and a their difference STACK there in So in that, all creates the Delaware the the factors. in the a efficiency given just in those and

Shneur Gershuni

of the appreciate position bit. however XXXX the about to I the Devon and moving all just you answers extend their I so forth, but does it, think understand a you guidance the sort term as business Okay. the mean and all to want maybe any or and update, and where in But new and Devon to acreage on question does color, of does XXXX? I they’re how that little off you gave. that statements that longer change

Benjamin Lamb

us. No, new Devon let what think, about the for doesn’t. think picture me it what But big means I talk I

for Barnett reasons. proposed two for their I exit positive a is think I think the that and from that us

and us the Delaware successful they’ve that do a by that to wonderful of a done like think a maximize They’ve capital a stack. in new told completion very partnership And is the roadmap and next with with competes asset how showing in a the capital out what modern owner the done Dow-Dupont. First, people it wells a the that so of done by efficient of anecdotally in a that number laying in could party they’ve showing for can re-frac it through assets they’ve buyer manner the how with Barnett. do of done their drilling then they’ve job a value it program, Barnett good I

independent last So we the And I the a more that piece what’s out been think us. about quite another side, kind they’ve piece roadmap and up the owner, in relationship than all Delaware some or significant Devon, years two being the left STACK, and for couple developing actually the that’s of ever ends it of them. intentional it’s with you at spin-off operating positive the which on whether a where think to whether have or the for company. laying But as split-off an of is new focused next are other developing by over when operator basins

I it’s So of the both think good sides on house.

Shneur Gershuni

over strategies, slightly a the a remember And year bigger of if and EnLink seven was quarters, of you’ve or Fair items I focused maybe Okay. the last picture of six so enough. couple it on been different from forth. question. last different kind bunch

multiple, basins when working a in You high of where thought done productive have a exiting transaction now, basins market say have actually broader you’re and let’s pick-up different in more to crazy to is terms have lot more at refocus the sort you you’ve of now? of that the capital than share, get the too any you well your right focused in yesterday strategy of to lower market right of broad area than I so very kind about one can we there where think potentially be When an forth. high approach market trying as nimble company you have stronger and assets the these then reinvest share and saw prices

Michael Garberding

Yeah, Shneur, this is Mike.

about built in position strategies, we’ve demand as let We’ve from the STACK out five as over you’re multi-commodity back the look the think the referencing we’ve you the as in when we’ve that Permian and the core as Louisiana. far again, built on last well built years and positions in -- been but what So just purposeful incredibly that. it seven step me

that cash the to So more mix. flow nice and think of Barnet or and Barnet Ben we referenced as stable efficient to an add asset the capital incredibly

$X.X growth, is really see those really set focused referenced capital there serving have those at among cash we see that some billion to all commodities. we're look strong different and that’s stable That's platforms, number. have included product huge growth capital can When mark feel The it’s do. say top of numbers a great flow. building the look continuing I demand talked expansion, solely it’s those. So we fractionation ultimately not almost of efficient upside Louisiana that then on you supply purity things longer platforms. whether up the if high at focused on for those a have that. is And whether guidance, term us will to of that billion times returns about in it’s six all optionality We we $X.X to about export what And sort on around the platforms that on the around also Louisiana expansion, you platforms. I it’s a what in We doing. expansion, can of we five

with optionality creating is value on those platforms focus demand high return, risk Louisiana. growth the ultimately executing through projects those on our of from lower is So in

feel And positioned really we so and well on that. focused very really,

Shneur Gershuni

very much. in jump queue. Thank the right, All back great. I'll you

Operator

Tonet question next Please ahead. The of be will JPMorgan. from Jeremy go

Jeremy Tonet

Good your the on thoughts morning. STACK all and color for there. the Thanks

down and off there, Devon, build the bit seeing to rigs. customers Cimarex of some want we're that more. some little Marathon, laying a Just of Besides other

to of kind to also could what what so into kind see market of the -- capture STACK, share you wondering the And Devon seeing guys aiding are you potential the do growth? and in of when you that's see of outside STACK? you're look on kind expand the more just Or you if forward you guys

Benjamin Lamb

Yeah. Hey, Jeremy. It's Ben.

a we've the these remember, other customers about producer overall big Devon Cimarex Woodford. Devon on their for of us one in with really Cana systems. than joint isn't outside So operations and XX STACK, got very the

look footprint. just full than all more the -- than largest So for more don't in our Encana us share I because share to And be I that's there's the running. fair the really crude -- quarter acreage of market fair and right over what's that for STACK and there purposely in up you're That's left This down in Marathon beyond the us. -- you Newfield, play. guess, see our up and to of changing is in not on expansive than dedication. we've talk to thinking and a more ton dedicated And don't the mean will in the don't to years us are see the grabs. Roan thinking think left far up that be, the smaller of is quarter you're win over impact And they of are about you're sets operations, I platforms. biggest and is we in our private STACK, of crude we're merge, as But active today. gas. acreage very our will the Oklahoma that changing on successor I be won It now. have STACK don't portfolio public changes know couple likes of as built grabs companies for last a about system Mike about I in we getting the system while in thinking play a up our the share have third I about for that and what

Eric Batchelder

But term, on is executing the you have your have we focused plan out on to completely answer what know question laid we Jeremy, longer today.

execution that. have assumption we not greater focused about today executing So on It's of the not and this an around -- share market customer. it's customers pulling or there's

Jeremy Tonet

for -- guys just two. portion language be sales more going to wondering non-core equity in PR, And as the issuance that's of That's those with being kept do versus you you it's for self-funding as not, helpful, there, the thanks. ATM the far going about the but have think balancing your if on that asset increasingly funding kind plans how

Eric Batchelder

a Eric. it's Jeremy, That's great Hey, question.

things I to occurs well. that of Ben that balance purposely sheet have me as hear, Mike as purposely the and one about I think talk built assets, we built

over our provide million in billion As coming we into year, late on $X.X last which XXXX aware, loan, I'm an sure put credit facility. to $XXX us revolving term liquidity you're of allowed

when cash that of to and feel way And to have think the do capital of business, plan cash excess pieces, past. the we we referencing, projects in terms as can and talked as the in well talked that we financial the that the a two been these we dependent isn't we've Mike about that the about liquidity combination good markets, from execute flexibility about very and those Ben as so flow return in quick about on growth on

ATM we certainly the will because we equity monitor than to have continue all to and less make sure we But million want pull available the open, XXXX that. as $XX saw you of we option to we'll issued on keep in So that. on levers

non-core context of relates it are again as the familiar and non-core that off continue everything asset to sales, are in that assets with, and of run be perhaps truly we'll small not you most those So very the to evaluate those may even else.

Jeremy Tonet

if one or Great, anything being one moved capital to else wondering like producer that's timing quarter, efficient last one timing, activity Thunderbird matching just happened? stack, back just of just if that's looks I the could back and there come

Benjamin Lamb

million like when construction plus the on everything in you'd you as that minor the you're is goes all No, $XXX projects it's to. appreciate not it a is, day process delay it doing

it the was in the in late be So first scheduled quarter. Pardon me, quarter. to second

bit into quarter. Now, the to it's second be going a little

vendor and might though of To weeks dealing pickup, by that delay, We a with volume. are are no we during this industry. whatsoever of about have issues; contractor being others that driven concerns with in on go same either to at thing at lot or you between a delay us portfolio all a being have next, I where of looking the I outflows own able to handle gas able have handle the play. of at in concern assets the no our weeks few our the few

Jeremy Tonet

Great, that's me. question. it taking for my for Thanks

Operator

next Dounis Spiro The will Suisse. Please Credit question from be ahead. go of

Spiro Dounis

guess if the around focus everyone. release of out renewed comments, just was of could, to morning, the just this I back of to good Maybe in the some that we want came Devon's go Delaware. Hey, some things quickly.

the still the heavily largest you're CapEx. bucket for while in know I is so Oklahoma And investing Permian,

guess to instead time? more ability And guess Oklahoma there Permian the so to an I divert CapEx of or is I over appetite an

Benjamin Lamb

Well, and area as support in Devon. items Ben. and Mike We this investing service. are a there is love the It in morning, to them, is expect we're the now which see is our because Basin. there are want that Avenger I'll and add XX,XXX for a to start biggest it's of investing we And Permian business we investing our focus may the right of Spiro, day of big we one then to on. And system, serves year. Todd as barrels that moving Todd of company area crude grow their we're this about Delaware and

Michael Garberding

we love the producers you have expect we there diversity years. but say Delaware, love over of I'd growth the continued see that also in next the X we -- we only 'XX, And too. out over not the

wells So that's on and presentation and go we today position a in Todd, with moving continue to and stuff high with a grow. Devon, XX customers their and feel that back of to we'll move more great we're focus portfolio on

Benjamin Lamb

III on sight cubic that Lobo seeing And we the III-X the line that the will second in we of million to processing the continued day the for asset come capacity. about good just phase, XXX we If online, Delaware bit I is long take think plant [ph] growth what feet a term. Lobo a have to widen call lens of

Spiro Dounis

think you options sorry any Switching you're I your still in Yeah, I color. leaning for appreciate offering. and particular direction? a any that pursuing but it bit prepared I are there your if gears can you missed I three fractionation provide update in guess and here expanding remarks,

Benjamin Lamb

may on. to Yeah, Mike add want let again, start it me

fractionation That'll think point, position our is play So into we'll first the XXX,XXX online of barrels comes on composition access you to depending at -- that everything the first is III. XXX,XXX Sibon what of Cajun day piece nameplate and capacity this be about that we expect. year XXX,XXX when a in barrels have else half

have you happen. two and things XXXX into more get you Then Okay.

decide at you we piece, to medium to Mike party. day under capacity Fractionators most for Mont a going much barrels First and that term we're contract GCF much at is, at capacity net. want And a access were we and of as remarks able we Belvieu, third the rates. in very third in how that of a certainly end amount with which fractionator Gulf equity we that capacity to we we third-party GCF. they expect considerable XX.XX% alluded this and Louisiana volumes is that to fractionation to XX,XXX access party are are his able at prepared with attractive year. the use not at others know, has of we because contract our is capacity Belvieu. Then a deal been want this in how working to of expires That do signed own have able That this that Coast are But to quarter, to a third

second up, XXXX. when equity our capacity don't So until three fractionation we those for half you STACK a pieces need volumes of see the for

develops And a them actually the curve time some us how how so fractionation we own our with to afford building asset. good I decision see to before be because two market it building volume make the expects over develops everyone think that's going flexibility about at time, that to a see everyone

on The fractionation second the our as his is thing I'd be Mike fractionation too one next of as prepared in to in because don't remarks is NGLs again step piece focused Louisiana, on alluded puzzle. say

ago. couple we purity Ascension a Another pipeline that years like with our piece Marathon puzzle of the is did projects JV

can export bigger. ways our much that small that Another volumes we still are had export element fairly this We relative others record but it's to make can looking LPG past be expansion and capability. of LPG at year, we

Michael Garberding

there, we've and capital last think of And take is isolation said optionality but thing set good expecting III maybe efficient Cajun-Sibon in project think at not And ourselves [ph]. is for about the allow well like in Belvieu rates those that people leg that was meaning of the I think position bigger heard Newfield at Louisiana market the decision we're I Ben we opportunities. party decisions excess third all that to to next while that this Ben most that up did that looking what up well for think preserving and a utilize fractionation the quarter growth. versus ensure it today in mentioned we leg that effective next us in or did away we're Mont to I people this make and sits which already

were of on so those. one just and but it's I that options lot know would has focused portfolio of I And we fractionation, equal solely not of times, happening, say a is where

Spiro Dounis

the color. guys. Appreciate Understood. Thanks,

Operator

be will question Please TJ of next Schultz go ahead. The RBC. Instructions] from [Operator

TJ Schultz

morning. Hey guys, good

I Oklahoma. think just you Southern hit on most of

field is Just wells of section. based wells one follow-up, on the six than impact really six if your there is assumption per something development development per a is that section. any less field What is

wells, was there sensitivity Devon that I four to is to to all, think for want understand six saying just the any? so if you

Benjamin Lamb

the seen really Wells, results intersections a it's the inventory, all good wells in Scott But with If five think six, apparent would there not Devon that cases business it and from don't were we've we infills TJ, would be in that others hi, say Ben. intersections been given Safaris, be five I apparent of that be was Pony have long-term mean that would near-term Yeah, case, the some results. was But multi-decade, near-term we've given also of would would I What do the with Devon, Express who Northwoods Northwoods, that would reduction a results that six. near-term be impact. a the and that concern. Safari seen, have the that inventory. those with

average And see on expectation so six we'll the wells is about field per across our section.

to like really as [indiscernible] be like you're but going places have to the going big to wells. wells are you where go to fewer and further Northwest Chipmunk intersection, they're Some up dynamite

some even it across looks we able average good going the and the wells and more put to be perhaps about number. eight that areas, play, six to are operators Some like or feel

TJ Schultz

that's And to export I with on expansions? what And kind to volume and and great. back the the a kind before the curve was to were see previously, number. with maybe some guidance CapEx three-year how to other the these you of three-year want that dynamics waiting all evolving Okay, square kind I in trying what's I or just wanted the gave on number that solutions, guess before? CapEx of comment projects just frac then all replaced you there that in develops. understand about of go talking Just being solution of frac there purity

Michael Garberding

Yeah, it's Mike.

is set on XX% but details again billion, billion keep and about make our walk think so $X.X compression. around that through overview, CapEx. me Ben let Let to and to $X.X an and blocking give well then how you just all this tackling to level positions. core sure three-year capital this connects mean, referencing we're of I'll we I

we've we is next different But gas alluded to none from is lot the of So for Louisiana the to I saw there. mentioned what over being talked All the earlier did see growth. upside crude. market, to Louisiana going XXXX of that tremendous that was about in seeing we but really that. NGL about we opportunity demand are on in a -- We're really talked in believe equally things just but based that you about as in like 'XX a we've leg -- and flat, included we XXXX and performance

is decisions decision to efficient do we've capital term to to that to continue to the efficient to do for And optionality us so what tried most best because utilizing make so what markets for the capital Louisiana underutilized the long preserve continue what solution. as have business. And step solution one this done has and we that's broader we're frac of far and

TJ Schultz

Got it, helpful.

it's utilize STACK all all the takeaway or place? lastly, from for all in Grand considered whether you or anything competition, option to that's into if an Prix Just impact you pipeline extension the to have for you any

Benjamin Lamb

our we to of think connection a transportation where it's on with also their agreed Hey construct you the I they was a guess attractive Cajun in rate, system to back TJ, ship we summer committed to, liquids very ONEOK, announced our Oklahoma XXXX, system to physical partnership majority not their return between large if the Sibon. but of to and

of So that's dividends off pay seeing all I don't today. see we're and changing done, that and that the

Cajun our of Sibon about factoid XX% is operations volumes. that the in I last report volume year equity a think there was

from I that's say think that XX% and Oklahoma. part to would of we coming biggest the today closer is

TJ Schultz

Thank you. it. Got

Operator

And Pickering of the Bean Colton Tudor Please go ahead. from Holt. will next come question and

Colton Bean

Good morning.

spacing, lot does there think impact follow-up there capital to just of referenced reduction -- space inventory, just the in around your little that to wanted this up well a less philosophical risk seen, to but that if so get well to views. the of that connects maybe I around you've how we've less is core capital designs So the and bit in allocation? do thinking contribute discussion any capital tied

Benjamin Lamb

wells Colten, to start may want a number now we've it's that six average something is I'll Mike At the Ben, across been the expecting on. for play section add per and Yeah, again quarters. of

news not that's us. to So

six are room I mean the XX% does play question ultimately been the locations going, drilled. wells for in I we well I even So the would impact, less think And factor assumption at way having play is are a potential capital that say much average near-term the think not allocation, in. new see it us. than to how have that the the six I per, don't total any we run you're baked It's kind about of of

a see any left implication for the to on I us. don't there's of So run. capital for play negative allocation lot room

Michael Garberding

ultimately No, you their and presentation, and I think Devon's XXX,XXX acres net if they doesn't optionality. Woodford look at include a that reference

don't effective beginning like about the we is This in five capital. cash, feel that. you capital today, all so very the I your times of referenced is have that. we six good spend highly quick But stuff think about the doing here sit to to we want question, So [ph], to as and concerns you we're

Colton Bean

to a Got the just Pelican at of keep-hole volumes ORV the [ph] margins? maybe looking bit helpful. is up, effectively it, And there, that guidance segment with profit, flat a your Louisiana, step reduction little primarily were in just on down then I'm a in a that's

Michael Garberding

don't quite pieces of on economics couple you more not It's year, straddle robust a touched One Colton. than is keep-whole, that it's to be a -- plant, the there. right. it's It's year we last as as processing really expect this

it, don't just contract, under not no we contract. it's if margin So is like process there a keep-whole

lower is expect processable, have there be that gas So less the it. is economically and we to that we margin economically associated to expect gas a with processable

this who Another the an covered factor there guys -- have story. long old a and is for is is time,

system comparison in contracts of our Louisiana. We north almost transportation are over when in hits have rolling element part there are completely that of 'XX Those commitment off to now you an 'XX the legacy is gone. us But the time. that some make volume exploration

Michael Garberding

thinking how on what today couple had we've based in we're does about think option about and this And seeing The years we're think away. go guidance, business that it's I of also it. that conservative over performance have to XX continue for that the not that both to Louisiana option. last We're see value important years being gas, performance you and the in versus can just and

we're businesses into So about the this thinking how as more we it's are just going year.

Colton Bean

thank it, Got you.

Operator

And Lynch. the ahead. Bank question of go from Dennis of Merrill Please will America Coleman next be

Dennis Coleman

morning. little Thank bit to I on a you. good Hi, here. hit distribution just want growth

trying no talking the matrix and in -- You've the achieve the commentary range, target use guidance you're we -- for let midpoint equity three-year coverage XX% for thinking kind sort about? where that of given just ramp and elsewhere in to issuance kept talked you be things range I the to about period still you X%, I guidance your guess should of you the given up sort X% example of the But X% that this, of an sort the range. think of for

Michael Garberding

I'm said sitting but us again, allows Mike, six I multiple. efficiently multiple here the drives cash the to quickly capital, and to on have this to we something which really effective at today five Dennis, start incredibly questions, times going is platform to Hey, do

from from in creation, value can ultimately that from standpoint, standpoint, coverage is focus, performance core to and with a business be And a 'XX standpoint. you our cash see over the So of as really on the that's distributions flow the volume a you driver. going saw

the very, the about value focused business hear right longer-term, ensuring and As the creation want with in that people and that. and thing that confident about we on feel we're think into 'XX to also move 'XX we very we're is of we think doing I that think

right And So X% and what today, ,we've which so that feel had distribution coverage, X.XX capital -- here growing very is for the comfortable allocation? growth to the sat ENLK's. -- fourth got in ENLC that quarter we on with we as with as to

value the forward, to As and do stakeholders what we what is want through. that's look how right we're ensure to we working you way, return

right that is is keep invest and about which times, the to the to saying up longer-term comment to with to the best is all X% do? So, that talked we've is that forward, on have those. market projects at X% business, thing starting about to in what What how do next greater, We'll an referenced eye a we allocation. about going to to we're repurchases, the way is it on the is for that Is we think of look growth think And in to that see to think it X X we at we X to say have share need and capital business Is But the XX%. effective best business the we years. very how need about. capability that distributions return we have or be to value you stakeholders.

capability capital to XX%, returning B, what's have us. be distributions really allocation you value to is the want So stakeholders. A, grow very what And I smart X% is got that's we on and but to driving to we to between hear,

Dennis Coleman

have. all that's Okay, you. Thank I

Operator

will gentlemen, like answer ladies And you. Michael and his and Thank would Garberding hand to closing remarks. over back conclude to this session. I our for conference question the

Michael Garberding

our for morning your first our results you this for for facilitating Thank support. and on participation for your forward today. everyone May call updating Thank to you, We you on look with call Denise X. and the quarter

Operator

you this conference Ladies attending for you, disconnect concluded. Thank has gentlemen, and today's you Thank time may sir. the your presentation. At lines.

EnLink Midstream Partners (ENLK) 20 Feb 192018 Q4 Earnings call transcript