Thank you, Operator.
Good morning, everyone, and welcome to Energy Transfer's Second Quarter 2018 Earnings Call.
joining for you thank us today. And
help joined Ramsey, John also the management here today prepared after other by Matt McCrea, senior to are who Mack Warren, team, your McReynolds, remarks. of questions our Kelcy members I'm answer Tom and Mason,
week, developments X, today last on East Permian an Express Rover, other we with discussion growth a begin of our Mariner by I'll transaction of and projects. simplification overview announced followed our latest X,
discussion will of discussion Transfer CapEx, lastly, turn quarter our followed I liquidity and a results, to Then second Energy focus funding Partners by on distributions. a and
As as which of forward-looking and statements the non-GAAP certain DCF, currently available assumptions a our I These within XXE Act be or both Exchange of on Section XXXX. and also EBITDA of information of reminder, adjusted we us. refer to Securities are distributable measures. to will well the will flow, as making cash are based meaning beliefs, financial
of measures reconciliation a find our website. will on non-GAAP You our
and XX% details significantly to higher I year. later segment, second but our several segments. over Before more well increase pleased the crude DCF other I by of are than EBITDA and as growth overview we more transaction, is the ETP due in results transportation to increased record that saying to ETE, very just quarter will increased the want on ETP oil call, provide services Energy quarter. I of as as ETP’s last start Transfer’s XX% second adjusted of provide partners the this in strong adjusted nearly attributable the with from of an
day’s terms by price and of units the recent into transaction, unitholders common a announcement, Now providing merger receive for price price Implying price. ETE premium closing the is under This billion ETE’s expected a transaction entered will ETP to based be turning ETP accretive closing ETP premium of unit in immediately ETP per $XX.XX previous common $XX ETP for per announcement the of XX weighted the transaction. unit. unit. ETE XX% units, DCF XX% a the prior common and ETE’s immediately each to last average The an the represents X.XX the week upon for of volume agreement ETP to day to most to ETE acquisition ETE to our
per We unit level. maintain at current distribution expect ETE’s its to
continue capital In of overall IDRs transaction the the our It simplified projects structure, create deleveraging. improve which will we retaining addition will capital. strategic more are cost a as M&A increases growth ownership pursuing will accretive to us to transactions. This as allow eliminating accelerate cash also
Following of forward. subject We other in The investment the grade. cash, unit we by coverage transaction closing preferred reduces expecting the be majority ratio is approval or times greatly times, to XXXX, do DCF to of funding to annual ETP equity close expect the pro equates retained of customary this to fourth rated quarter forma X. the about are a common billion going the and X partnership conditions. $X of merger holders $X.X X.X expected needs external our unaffiliated to to billion which
expect We the week. S-X next file to early
segments and from we start on the with FERC On our XX, and will to received Mainline we commence Full growth B B Connector Rover. moving Supply May Now projects, Rover. on authorization service to pipeline
Rover contracted day capacity mechanically and Bcf XX% charges which demand is in XXX% complete. As is collecting per are the is we capacity. X.XX on of of XXX% now of June mainline X, approximately service, currently
complete. and our is revegetation is project complete, For restoration cleanup overall rep activities, final is complete, XX% XX% cleanup XX%
EGT February XXX% We X, and on orSherwood for XX on Majorsville activities in-service by all to to complete and submitted have Berger's FERC these expect town this month. We and mid-August. May request planned restoration
plant processing full supply complete approval to and is the of has Rover service remaining expect laterals. received we Revolution into Our go once it
XX. the on moving and Now MEX
the We hydro continue on to complete. progress mainline construction MEX, and testing complete construction make of with of XX% of XX%
In or reevaluation our prior line HDDs The are completed process have HDD more overturned no PUC’s from plan, West in required with with in Whiteman of reports in continued prevented Pennsylvania commissioners addition XXX% drilling does that decision the DEP. the avoid Township. approved existing affected To in we in regulatory in-service, the pipeline applicable section this will any utilize for schedule, permits, made of all new and any notifications. we delays plan MEX an initial not projects require area have construction a
in sufficient by capacity to expect mid-XXXX. quarter. us expect place Construction we meet of initial to continues and online commitments. contractual this of pipe in This continue end to will the our service allow ME-XX be all to we online result the a bring also MEX As to of
to joint projected terminal early provide on to we USA C. to the ETP be pipelines new Satellite agreements Satellite. on XX,XXX barrels into once have owned Satellite to terminal MMBtus North service will in is to Gulf of the provide U.S. XXX,XXX XX-inch transport The fourth completed constructed Nolan fuel area. initial into an definitive of quarter in Orbit diesel As XXXX. MMBtus Texas in XXX,XXX in Old Texas to between the from pipeline extends XX-XX for is increasing Sweeny, pipeline day received jointly the utilize miles of Midland, for Texas pipeline quarter MMBtus Ocean pipeline, by we July at form the Pipeline newly venture announced XXX The per second will to ETP of have an our of this in the Texas day terminal is entered the ETP day ethane Texas. for West for the Also export commercial a capacity the south the third and natural the we approximately expanding per ethane per call, a Hebert, XX-inch year. North additional continue their open-season export quarter. and prudential the construct will diesel end to Texas process a pipeline. and of during this Old and second service Coast last originates The completed deliveries to Enterprise which the resumed venture are and of quarter, Petrochemical Corp. joint Old cracker initial approval it capacity Texas Ocean The with during ready Pipeline. gas XXX,XXX end per the to Enterprise ethane J. from the and That construction Maypearl day. natural expect Ocean ETP existing capacity the gas of
up per the we in plant cubic went volumes end plants X foot at processing Midland processing year-end. expect moving and the Texas, of day Now full to Rebel be XXX to million are our West the Basin it the by service in April, ramping into
went as This connects through pipeline multiple per is plant to which X.X In into processing Bluff our Header. Texas our in plant addition, Waha May. another cubic construction completed the it quarter service existing be to on in XXX Basin, facility Arrowhead Oasis will Orla per fourth Also natural our runs Express our Bcf the in well day Red as Delaware and third-party day of plants year. the near be this million West cryogenic expected but gas heart of pipeline
which Express the expanding half second service is successfully Permian portion online a in expected a XX-inch of quarter PEX currently an be project additional as the On are XXXX. of to reminder We in XX brought by this X, our in of XXXX. miles pipeline, we of fourth
project. which per a for day XXX,XXX the approximately During represents the additional XX,XXX open second successful day barrels quarter PX the approximately per of we season final phase completed barrels
final expect barrels be XX,XXX later year. this online day We this to per
also corridor making will capacity and strategic Permian the provide We operations are provide venture Lake Basin unprecedented as areas. our Bridge of segment to significant Continuing This pipeline deliveries storage with of East the in Beaumont significant Nederland, shipper facilities quarter and header our market well will St Bayou and progress to access oil expected Bayou construction the new joint XX-inch systems to flexibility to James XX-inch also in and to commercial from pipeline with continues. project for Charles partners. With to with pipeline XXXX. Bridge. the began Magellan to as from fourth Houston It other crude the refinery
to at Mont capacity barrels service FRAC ahead day per were nearly July in are told V to our that pleased in the barrels XXX,XXX frac announce brings Belvieu Lone per Star’s of We XXX,XXX schedule, this day.
barrel subscribed NGL per new in million went day second As the also be multiple VI XXX amount. a reminder contracts. based long-term cavern is the X plant, and y-grade V July they and barrels a of by on of Enable fixed is XXX,XXX effect agreement FRAC the X, to contracted in Godley XXXX. service we the expect and fully majority commitments already million this product contracts, XX-year full to foot demand quarter fee infrastructure, FRAC continue FRAC full with fully The near flowing At our are per day take-or-pay of under and into cubic includes
let's a resulting DCF of high results was was to increase increase of primarily million attributable strong as to I the partners record several the Bakken $X.X very second record significantly distributions pipeline was adjusted quarter. consolidated XXXX, adjusted quarter ETP increase a X.XX both times result a billion. another well second segments. in to strong hit of flow of Now crude second overall is oil coverage in an million quarter million. growth XXXX. compared coming due a EBITDA turn to of from $XXX This the ETP’s second EBITDA. than results, had billion. our the excess cash mentioned as our basis on up This also $X more was other in to This of for of quarter as over quarter online $XXX higher compared due segment adjusted as to the the $XXX the as
XXXX. was Turning to second with the million to compared by $XXX for starting our and EBITDA quarter of million adjusted results Midstream, $XXX segment
million due optimization was as increased for During segment, higher and the EBITDA and This producers. higher increased barrels segment our due to Mariner the a per results mainly prices. the NGL Permian on average our the the gas higher primarily day daily compared northeast. were year Compared increase of to River midstream XXX,XXX and to period volumes on segment to due volume XXX,XXX increased Mariner volumes of primarily growth $XX the to per system West increased as to increased of XXXX, at per for million approximately Gathered to volumes to the recorded MMBtus fractionated million the items, day adjusted Products terminal the Basin Permian, to regions. day quarter year. our our non-recurring these up in $XXX per million last compared owned in $XXX pipelines, out Permian majority Star and to higher NGL due of last compared fractionators, volumes, barrels a totaled and adjusted day benefit strong XXXX, increased several onetime MMBtus from was per barrels pipelines midstream that the XXX,XXX the demand Refined volumes venture day to a per was transportation Year-over-year was the and crude and Texas our volumes last NGL West same producer NGL throughput growth due on compared period refined year. from higher barrels day the to year, the growth for XX.X without primarily million on transport and due period million group. quarter XX the growth Ohio volumes $XX same last first well midstream wholly from across marketing products In XXX,XXX same result saw volumes to of volumes, The items, pipeline. joint Lone second and EBITDA our
and increased increase to to placing in in service loading our due from fees to period due Bakken The from well day the acquisition and as segment, from million crude compared related in and volumes million the to the terminal same $XXX ship on increase day the Coast. producers Now barrels at second quarter an Permian marketing same crude exports, and in million oil primarily to to throughput to moving and throughput higher for existing the Nederland pipelines, placing on EBITDA pipeline primarily to compared as our favorable X, to of XXXX, was an period Crude production year, adjusted for X.X business last year. million X.X per per primarily the $XXX service increase last increased Basin. transportation the bases between Midland the June due Gulf increased oil Bakken on XXXX pipeline barrels Permian differentials increased approximately
the Bakken per to During to This segment, million commercial quarter of EBITDA in In $XX million as million the volumes in adjusted averaged was differentials Intrastate from interest remaining to quarter barrels pipeline our second pipeline Texas $XXX on compared optimization from well commercial due to primarily of rigs a wider $XXX the West increased the our year. XXX,XXX increase day. last Gulf in as the to activities basis from Coast, due April. acquisition the second
transport Our additional our EBITDA consolidated second quarter rigs to primarily markets. This reported as was of compared million market to a subsidiary, Rover. in-service the adjusted now in segment intrastate increased EBITDA treated from million volumes XXXX. as $XXX Texas pricing due for partial due increase favorable Intrastate $XXX well the being to the more of In was as
supply Haynesville with X.X Rover laterals. per X.X day compared per and bringing service, a of in day day commissioning continue to due period segment to this production from X.X spreads last remaining MMBtus million as the million across the Transwestern for same transportation increase portion pipeline. due Tiger of Rover MMBtus the in on increases increases year, Shale, earnings to expect to million from of an favorable into were as increases as MMBtus result the Intrastate a and utilization Panhandle per increasing on Trunkline, volumes We higher well the
the million of primarily USA in partner ago outstanding year to EBITDA equity USA Moving in and of in and by in was was $XX XXXX, from the includes to limited its Sunoco’s CDM million offset limited USAC to our to Subsequent unconsolidated a method EBITDA in USAC other on consisting units, our million of adjusted to due Compression all includes in February a partnership in B. of the our $XXX units. representing XX interest. Class LP, of segment $XX also method units investments to units which units of Sunoco our LP consisting units contribution well due representing as equity April million million million of due all April due compared segment investment as XX X decrease USAC to EBITDA XXXX, Adjusted USAC’s XX% XXXX to in LP Compression XX% total to XX of Sunoco million XX other common contribution investment to this well million method increases related partially our of sales investment decrease assets as earnings X-Eleven, of PES. of from affiliates as CDM higher in repurchase in Sunoco investment retail common to our a equity
Products, CapEx Now the primarily for billion Midstream six in and XXXX $X.X ended Refined months for funded ETP approximately growth update in organic the and NGL segments. projects XX, June
our due Intrastate organic XX% effective ETP equity also expect notes In XXXX, in principal outstanding raising credit primarily to agencies. primarily Refined its tranche $X.X spend amounts a ETP amount approximately is purposes. used to billion $X Once proceeds redeemable of redeem rating projects, issued partnership equity the position, all new NGL million meaning proceeds of X.XX% its as of to preferred $X.XX June aggregate recent the funding securities general billion cumulative the of securities again extremely were in Series growth For purposes. treatment and offering, Taking we liquidity of an a three core $X.X in Midstream D. billion the provided approximately other and Products, to offerings, for and issued full cost our to received used perpetual notes in outstanding activities our and ETP $XXX projects. as well The year units. which fixed-floating-rate unit quarter for billion capital, senior these general growth increase segments. look senior at preferred these for Like facility under the from partnership repay revolving July
the In quarter off out rigs rigs addition and second ETP remaining interested during credit the paid facility. the bought
per XX on common for the was and ETP’s business credit flat as on second distribution June of quarter, or was As distribution quarter as X.XX% per approximately XXXX, facility. will ETP credit leverage of of revolving liquidity XX, first under paid basis. $X.XXX[ph] ATP’s the total a facility billion, and $X.XX per July XXXX, on unit to In the holders $X.X unit of XX, announced June close the XXXX an This is to August record August of compared annualized common be unit of X. of
on $X.XXX quarter to $XXX at to Now quarter the X.XX with this let's adjusted record ratio coverage as as million. position and a our move will have be totaled unit second to basis, cash for per cash ETE healthy XX. to million. flow and a In equates continues quarterly of of holders of close flow ended the business over ETE, XX, on distributions annualized second facility. $X.XX July of distribution for resulting August August the times in an paid quarter $XX debt-to-EBITDA per unit times liquidity ETE excess distributable announced was X.XX unit credit on on of for the a ETE’s
As had its under credit facility. available ETE of XXXX approximately June million $XXX XX, revolving
also before reported opening big ETP’s Contributions once want Rover from that up crude pleased your strong continue are great I have say earnings leverage progress call and this were improving components again growth we metrics. pipeline the oil So questions, Bakken in to to quarter. of to another very to make and just we toward
structure, a is distributable this premium announced to per capital. have financial enhanced cost also will excited a current billion of to an transaction and With accretive flow are and unit immediately have simplified value approximately ETP unit. to expected lower be $XXX ETE ETE’s holders with a cash transaction simplification We very that a provides flexibility enterprise to
position company greatly expected for to the and Our combined new continued and our sheet strengthen is credit growth. balance profile, financial structure
of the the as we open line key growth we to that other the Rover, up that MEX our projects. remarks, concludes prepared complete excited are ahead rest Looking expected please for With and questions. XXXX, DCF operator for
