ET - Earnings call transcript Q2 2021

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Operator

Greetings and welcome to Energy Transfer's Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tom Long, Chief Financial Officer. you. Thank

begin. may You

Tom Long

Mackie Good quarter and thank XXXX today. today joining operator. our members remarks. who issued prepared earlier Energy you to slides as as you management this after team, Transfer's answer posted us questions by; joined press the also website. second here afternoon, earnings are senior saw to I'm and help afternoon, our to your you, other welcome of everyone the for McCrea our Thank call Hopefully we our release and well

we information detail within August on on current the filed cash which These our reminder, financial the available all are and currently statements of June Section XXth, more XX-Q a Security will to measures. meaning of Xth. and are on based which beliefs, As to be adjusted us, non-GAAP or quarter as DCF, making statements and the this XXE to I'll in XXXX. are ended for discussed be our the well we refer forward-looking EBITDA expect Exchange as report XXXX, Thursday, flow Form of Act assumptions of quarterly distributable certain also

of on reconciliation attributable to our looking the partners our a non-GAAP billion. $X.X ET today DCF and $X.X We adjusted of billion quarter I'd of find generated start our highlights. at like to You'll second website. of measures by some adjusted as EBITDA of

period. and Partners, regions intrastate segments. higher the will midstream, Ark-La-Tex refined the connectivity gears quarter capital and acquisition of clearance. NGL transportation documentary additional $XXX In customers. incurred improved of $XXX closing The only May, material, condition approved which Enable with the Midstream provide distributions excess of commonly issued have the we dialogue Our FTC diligently an Enable scale FTC, and million HSR distributions The process. the after our acquisition working DCF growth the results approximately are over relevant due is waiting earnings million. for HSR million On cash known Second of flow to approximately Midcontinent approximately engaged which provide and and requests second Transfer in to XXXX information for extended to natural this increased the $XXX and gas Energy basis, million. remaining and the them was had excess and was and primarily Request, to on to update product as and $XXX increased an information the after throughout in unitholders, has Enable by constructive were obtaining of Switching in NGL

developments our We growth the Nederland recent to In continue Nederland transaction to pipeline. we commenced grant our believe provides an through in transportation Basin we I'll the River our White will barrels to from second with Cliffs Terminal, will now start deliver Cushing the provide June, connection also our being to Powder and XXXX. crude to projects, walk early of Terminal Nederland the clearance you that the project service and our we'll unconditional our Terminal. close transaction This capability joint that of FTC and DJ tariff pipeline. upstream oil half major with to on Cushing

in And DJ steady now approximately and Basin from day growth are per We oil a barrels volumes. area we're the capable seeing of transporting Nederland. of Cushing XX,XXX to

is large contracted those of fully with shippers. The majority coming first this phase of third-party from contracts project a

quarter to of this Minimal third-party and with in is forward day. demand, first Phase which spend be commitments. by II In increase Phase capacity of addition for moving we service to the II are the will required per project, expected to is XXX,XXX capital this customer XXXX barrels project. in underpinned is

and progressing project we transportation Next, in can construction barrels is provide Upon to will of completion, in Houston expect up XXXX. fourth crude continue Collins it per to Nederland our Texas XXX,XXX barrels expanded of initial which to be service Terminal, XXX,XXX this to quarter be to day West the from and oil the Ted Link per day.

Access the down plaintiff's denied Access, Dakota lawsuit to against DC dismissed the looking in Army thereafter Corps. and Now, Court injunction an May, to for District plaintiffs' motion shut the Dakota the

is supported for continue their in project Pipeline Optimization placed customers. Army to Access With barrels Impact has from ability We next Dakota of commitment recently of the day. incremental flow Corps completion to optimization, the We the approximately Statement. this into Environmental cooperate capacity preparation of which XXX,XXX the by long-term phase service, now with the the per minimum of volume phase Bakken

Mariner System. East take our look at Let's a

Second NGL increased XX% Mariner East through XXXX. quarter over approximately Pipeline second the quarter XXXX, the volumes of system

the when Our quarter significant markets year. phase next the begin from next New which and Pennsylvania, in of the dictate. third we is Mariner in expect and into brought Midwest are Pennsylvania now Today, quarter Access expected the our as East East phase allow which throughput XXXX. be capacity, will Project, service demand Mariner York for products We current seeing of is allow us phase this of to utilizing fourth ready later the Mariner project Pipeline markets in the our refined of regions flow supply East in the XXXX final is the additional to of will northeast exceed to service other online completed to capacity be

update brief Now, Nederland our Terminal. on a

the our at remaining During quarter, completed Nederland. facilities the LPG we expansions second of

barrels capacity world. well as among barrels Canada, in is more NGL X.X day Terminal now exports and are Nederland Terminal. Marcus per barrels Hook over which early the addition XXX,XXX Pipeline our Mariner of our million per our as day, ethane capabilities export NGLs capable our largest of ethane for total to of export West expansions approximately exporting is than per of the from With LPG which our the we day late And and with when combined our now XX,XXX in completed XXXX, XXXX

Terminal, exported per We in out this June. seen remainder X continued under or June, Ethane to and venture other placing facility half daily Orbit throughout In this export volumes and continue Nederland we year, volumes NGLs we increase see XXXX. have we company it we the our loaded growth. since At increase to first meet markets our an the more fact, more them And beyond June, increasing joint expanded of million in of in any to over in business. country America ethane service. Through our export for expect Export North with world, have strong need need into products barrels of throughout day the than striving XXX,XXX than our and this are with to of averaging growing throughput May barrels

gathering of provide strategically preserve of as the more is efficiently, takeaway capital also to assets the assets of operate will ways Our This G&P Midland in and Permian the fourth rich how completed to to assets with MCF us a can good repurpose capacity additional the we and access out XXXX. spend Basin while Midland expand to be look optimize, providing of our will project, for example Basin we project options. our gas competitive and allow Delaware quarter XXX,XXX Bridge existing advantages. to which in is Basin with in our approximately day move processing connect us This expected per project

of of of LPGs export Panama study to signing for by relief Pacific Lastly, the we high receipt, a pipeline Pipeline. of customers from through of and Understanding VLGCs Canal be the feasibility volume to Memorandum increasing Panama transportation Gateway for project the in traffic the and provide Trans-Panama loading a would would developing with Republic of the optionality to the Asia. connected The markets. This side include a international in July, provide Pacific Panama for and jointly project Atlantic terminals announced proposed of

opportunities in of agreement we Now, activities, for with to solar pursue In regulatory Energy our and Transfer purchase continuing have power on wind an continued second February, in for of finalized announced to regard, and Alternative large focus that an Kentucky. projects. the receipt on creation an company to We're explore wind in a existing also and jointly XXX Energy projects our several the northeast, on megawatts solar renewable recently solar Tract alternative we signed for a energy we have on expect sign power of development update agreement this acreage we utility after long-term an to since Group approval. energy

biogas flue the Hook We're project. project Capture We're near our standard would enhanced an the systems, Carbon a project processing produce fuel projects investments carbon variety cost based studies. for delivering capturing biodiesel On credits, and that from low-carbon one would food to from and feasibility the preliminary satisfy on utilization COX. long it gas return two COX equity also for Marcus front, our a plants in carbon COX they second projects continues projects design of and reviewing that involving capture of pursuing including our look as oil grade also estimates, economic the would criteria. in involve for promising to customers as recovery, potential This use qualify and

demand operations our ability Drive all to emissions to natural our off gas. explore distinction Compressors are versus Compressors electric our as teams that, An the is to and electric their especially Dual ways operations. well helps power run remote can facilities. engineering Our constantly Drive COX some be reliability in discussed reduce volatile, working areas by win Dual we've reducing important as awards for grid Drive continue for as previously, environmental as And Dual to compressors electric of emissions across utilizing

for emissions. There provide waste, in other ramped up fuels COX ethane displaces In and have a reduction significant for exports and propane addition, significantly wood generation. of which many power naphtha of and butane, we cases our animal diesel,

data ESG we're Council various due effort ESG of third-parties in to on inaccuracies report information. and to by in certain continuing discover Energy we reports, future the to also GPA Infrastructure third-party Finally, Midstream near template lack and a ESG expect accurate publish to the and address

$X.X closer or a distribution as This compared attributable take increased billion the adjusted $X.XX the compared unit adjusted August look segments. were we of second the of $X.X quarter business on Partners EBITDA the August second product NGL for let's of July by midstream, unitholders for paid DCF announced results. $X.XXXX XXth XXXX. Xth. improved our earnings billion, record primarily $X.X Consolidated XXXX. per the second billion $X.X be and refined quarter annualized intrastate quarter, second and as results in was to cash the billion distribution On on to the driven of to The Now, basis. close at was a an will of common for to on quarterly quarter of XXnd,

we'll by products to segment, with Turning results start segment. NGL refined our the

to as due Nederland our Terminal our projects, propane million, system. and and margin. period same to second feeding from as million our last day was the day, continued Pipeline our XXXX. per and refinery our was increase well increased to joint fractionation increased our XXX,XXX for per million primarily Mariner our was to second Terminal This our barrels X.X for pipelines feeding as per NGL was of increase. Pipeline, compared and increase primarily transportation the Terminal, compared volumes ethane XXX,XXX This to volumes, throughput $XXX of EBITDA on and $XXX fractionators, increased Hook venture On export export into quarter, the Since end well East the wholly-owned Nederland day on storage year. barrels transportation day, services average to initiation per as volumes year. on adjusted same volumes East higher to at increased export service the Our Mariner barrels last fractionated million X.X of fractionation the have compared quarter period on and barrels Marcus due volumes volumes

the pipelines, see system, We and last have as in compared lows rates million tariff Oil lower our from higher Oil year. year. and Crude acquisition our Bayou For Texas on to million, same $XXX EBITDA to period This primarily on was business. decrease as improved Crude marketing was which our Bakken Bridge segment, the Pipeline of for volumes due crude adjusted last well oil did our $XXX average

have Permian our system on margins better seen We going contract will and offs majority capture the roll improves. now the as major forward of the look Express to market

and of $XXX North and gas favorable is result volumes was million for increase $XXX our to of our second quarter compared EBITDA from more $XXX as up second the the that well partially of well ramp There NGL no to related of to MMBTUs the assets an as EBITDA adjusted to was was XXXX. for demand in ramp incoming Texas volumes and segment, who revenues, in most due calls the This largely remained created much same higher a segment, Midstream, EBITDA reflected by same Winter retained Uri. be for continue discussions primarily and across XX was existing volumes compared quarter primarily was Permian, MMBTUs Permian, This well and Ark-La-Tex, seeing And South the improve natural our as offset customers to as they highs. doubt transported Tiger, strong million, of inlet and our are For lock million Midland on prices, were the agreements. compared as quarter growth an storage fuel the completed per second Intrastate Gathered pipeline $XXX due volume year. for million gas lows with XXXX, $XX Uri in recently year. for in storage last FEP, Storm and/or network, on new $XXX to have to due revenues regions million million, year, to Intrastate day looking to demand firm the of this million to from regions expirations to XX.X transport and adjusted in bankruptcy we a last ups compared as volume northeast. and In day, and contract in or increase as are per in increase at million, Tiger shipper period on and Rover. the volumes record in $XXX Permian volumes near last Basin adjusted million continue

Now XXXX guidance. EBITDA turning to adjusted our

and organic CapEx. a excluding in EBITDA We adjusted $XXX primarily continue excluding be capital update for billion, between XXXX, to to to projects, spent growth the to $XX.X contribution segment, from six expect full $XX.X Enable announced on year products a And the and Energy Compression ended refined Transfer billion the June Sun any million acquisition. NGL months XXth, growth moving USA

segments. growth XXXX, be the capital in year continue oil billion products, NGL expect and approximately to full midstream we primarily For expenditures and refined $X.X crude to

capital around for expected optionality million remain to projects per focused Any our we to improving all and spending. to We in are expect spend focus $XXX XXXX, and continue outlay to on of aligning And existing regard continue new year. be $XXX customer with on to XXXX disciplined needs approximately primarily million assets.

at our briefly Now position. looking liquidity

our $X XXth, our available of June for credit and was facility. our credit total revolving X.XX approximately As leverage XXXX, under liquidity facility billion was ratio

outstanding During H $X.X the from utilized negative. debt we Moody's we our And year, in ratings and second operations and reduced offering quarter, cash year-to-date, of of proceeds minus outlook reduce billion. unit preferred May from a S&P by approximately $XXX our stable Series respectively, our both BBB and And to debt have revise this long-term $X.X affirmed by billion. to credit and from our million BaaX,

complexity In with of of addition, into organizational Transfer. a Company Energy we in layer the Operating Transfer Energy up April, removed roll

NGL leading fundamentals and of see to continue we exporters positioned has the the quarter, world. expansions in one improved us completion Nederland the as second of the at During NGLs of our

ethane year. our debt additional Nederland return the distribution rating. look upon We and/or rest of LPG the maintaining dependent to the grade remained at and our second time. our priorities, Capital be with improving down committed unit to buybacks continue capital to conditions in our quarter. we the we at and expect further market will Terminal And of form analysis in to deleveraging unitholders export mix to investment We've ramp up our of among and for discipline projects top throughout and continue the pay this increases

development are to of hope and promising, shortly. question? open projects which very our reduce we Operator, additional alternative first environmental announcing of continue our opportunities and some to to energy looking footprint, also explore for please the be projects We lineup

Operator

question. proceed will and you. with Thank of Please session. we first be a UBS. Ladies your gentlemen, question-and-answer comes time, the question at Our Shneur with [Operator conducting Instructions] Gershuni from this line

Shneur Gershuni

Good Hi. afternoon, everyone.

things know, that be of some capital in the year. billion off well suggests there made When your your you're you the year, of leverage so become just the about sort recent you'd this think You It returning preferred capital given Or third fourth paid start allocation your What that off, below the some $X.X that offering debt you forth. terms were and I to know, the priority? looking of there other or most for all as in of quarter guidance levels, for current during that are quarter, unitholders? sort all considering? You of priorities this comments sort to maybe buybacks at your just about does is trading too.

Tom Long

appreciate Good afternoon, the definitely and question here. Shneur

you unit very with pay clearly to but has been from say able position still different in be will the options an to standpoint at the I have that the excited four will from as the as question to this it billion. now. distribution have going not $X.X But year great as right focus buybacks at to that and/or well that off providing much and we're look We're this know, that to got at. we we debt point, we as timing As but it's continue CapEx, economic this makes the We're what standpoint, to say look as as this we've I guidance our sense. exactly been

had So, that. the order, progress one as that mind but top. debt that, keep great not And in clearly we on putting made any the in we've

unit buyback the stay we've So as diligently worked front. to you can distribution on appreciate CapEx the and disciplined very

Shneur Gershuni

a makes transition maybe my question. that's And sense. that to know, follow-up You good

discussion that a million with about in you of years Are of in CapEx? some so those per the XXX outlook talked is and your sort those have projects? and sequestration, recovery two a within growth you lot year. that we in for Capture you If And tag capital the maintained to of as could some and FID outlook think next of of for prepared in have you interested 'XX that, it in how of sense that recognize price could you I Carbon that forth. the in of move kind FID remarks, that bunch not, potentially projects fact and also looking oil on projects already. bucket included the do a the had the move 'XX Kind You've of different kind types so - both the at were you on around sort

Mackie McCrea

Yeah, Mackie. is Shneur, this

and As Mason of we looking said has as we're the of of Right sense, stuff are around at capital we're anything any that that we economic there's as have costs way. material, on to looking going we're Tom a return, now, expressed pursue his makes significant at sense horizon it on rates team have leading, it. nothing to ESG any lot really that serious kind and

For front, we're example, the we silver - inexpensive we're buyer on we're made really electricity. just not the announcements anything, a investing of

these lot looking Partner the we're Capture of projects we're that will going capital, other up of require Carbon and/or with capital. the that teaming at to of Some a provide more

now, and like So have that. gather these have business, opportunities materially. there begin to our as right And moving then in a we far of and have things cushion to help little anything a as rigs grow bit we and started really in don't even Midstream

at much in standpoint there ESG cost for So don't a all have we from no, project.

Shneur Gershuni

I ton a questions appreciated more. that it. respect the two I'll have really Okay,

So back have and the afternoon. a in jump Thank queue. great I'll you

Operator

comes question your next Please Ann Our line Salisbury Bernstein. proceed with with question. the Jean of from

Jean Ann Salisbury

Hi.

new right we there's paid? you not so get Should of pipeline more Or are up, being since or you'll expecting flows? expansion see But more seeing of flows double the will may MBCs the out away? think it we start like excess Bakken. the With

Mackie McCrea

and on is Xst. nominations MBC your around Mackie, kick have Yes, significant August August, for did in seen This this optimization the on commitment we're the begin. again. seeing MBC, we flows to increase also, yes, the in And question

Jean Ann Salisbury

down of maybe little a in end there data kind thanks. contracts? sequentially, year, the Perfect, Is pretty this the then Fayetteville more new next is expirations original - and noted, Express the of base? segment the that And the in on of but more Fayetteville is there's there's Tiger as Or this was you contract year, kind think I materially. one expiration coming any back for half? Intrastate

Mackie McCrea

We're seeing bottoms. the

year there's kind you of small of, by years As these of know, passed but you back And one about of our pretty adding in some Louisiana PP of the or pipelines now mentioned, quickly. around end but the to lot Intrastate we both year, seeing that one but next able the out this growth are, into over being XX and we're a gas ways, Texas much move really also North in so system. excited we're

we've have system believe quick the So Intrastates barrel at two in the come example for we majority DW way the that of around years through vast next we'll be our up. seen A believes the West why and sure the capacity for sold our must bottom on Texas in Max company more there, we not of out a to California see had growth. gas we from California rate, the recently tariff value

when we're some said at positives. fee. higher a new we've roll add while So around where that contracts TransWestern we seeing off, actually well, And contracts

This much not Intrastate not second we the quarter's is for also some here. are upside - So, necessarily pretty do the more our a the there for a seasonal. system. Intrastate's pluses But throughput high

Jean Ann Salisbury

thanks much. Great, so

Operator

from with question of Stanley next question. line Please the Our your Keith proceed Research. comes with Wolfe

Keith Stanley

follow-up could some. on Enable Hi. Good I Maybe afternoon.

Is and It in feedback as surprising been right? next steps their to Has the the just on respond that expected gotten anything you've or from process? and the sounds second you to has want FTC. request? to-date still Just like questions have been to process confirm

Mackie McCrea

Mackie correct. Yeah, this again. That's is

to And all we more But initial days little with too extending than XX distant about the issues. we're and feel line getting be resolve and confident that a later. finish would future. we thought not And cooperative after request, that the to FTC. responding surprised. questions XX second that, sooner that remain will real days been We from in are very we their we'll closing continue their be We good it we've

Keith Stanley

Crude just question separate the segment. A Great. on

was So quarter the year-over-year Crude 'XX. second down EBITDA of and from that's

things kind hoping the for think close you're Or that now think this contracts off. of a of reference to guess, was are should to of a that mentioned close? the segment? rolling I we I You as majority bottom there

on we think that of should EBITDA there segment crude bottoming? can is is turn So, And anything of around? that kind

Mackie McCrea

Mackie, pipelines, We is the On has you XX,XXX Well this we an pre-pandemic, barrels our around. at majority less about Yeah, again. actually to day, were and of segment about turned we're example. been give X.X than up million that. barrels a back

volumes have So XX% almost these XX% the at Texas across are where the from our to recovered Bakken. they were, and volumes

crude the much a capacity part Texas. a of good back to fact quarter they've narrowed, lot per can too we the go really a as as across happen spreads, bit, widened of there's they crude the So volumes, far kind control of really things it's forth, out spreads little clearly and

A point and to we providing Crude things at has through look But a team our to just repurposing job. our point fantastic continue more So B also than value done systems.

what we ago. only the we And can saw year a gather and control what than customers. barrels added year, the albeit margins half can now But till and they'll of for and be. crude transport we much XXX,XXX a beginning tighter spread didn't to a will January in started be XXX,XXX we Just where all cross have at year, at day of about - this we've spreads a

That's NBCs Yeah, feel final in So we volumes are, coming like we're project. to the are to complete in. kind the are out that of keep bottom, have optimization or they question. of revenues that we the kicked we guess are where grow, think and for course our we're going to at continue new I

of So, excited struggling those similar all similar to we've Intrastate, We're most But hit kind the the here. and ask the been two about. on. at from other, future. everything's now you about please to anyway, we feel Intrastate, know pretty and the like All at bottom which up we segments, we

Keith Stanley

much. very you Thank

Operator

Our comes with Simmons Energy. the next with Pearce Please of question line from your Hammond question. proceed

Pearce Hammond

taking China, Yeah. office is, JV. ago, first you in the throughout but afternoon not also highlighted success the and you And Orbit years you're the business having to just thanks for My Good and questions. Beijing my in announced build earlier with two Asia.

that curious, And, do see to the just I'm market other evolving years? your of you you So how opportunities for next in Transfer? Asia what's few know, line know, over sight Energy you

Mackie McCrea

again. Mackie It's

We a back. excited. are pause everything down kind but put The the of the everything and really slowed or extremely not but coming also it economy US, world, only kind of now a around LPG China's pandemic on in especially is crude, the by ethane, and

We have pages expansion of we're companies different LPG that both ethane projects. talking and to sizes from

been and The we proud get year, that country in are we've fact the export the to much reliable kind these Nederland lot Hook. expect to We we're always from very company not or on - structure from within give from option, months can only those and sooner, the next and give Coast of deals but to option, the another Coast six of at benefits. which an Marcus that Gulf it's FID us over if negotiate mean, expansion, whether Nederland that the more these also both with assets at Marcus Hook companies them our a Chinese that Gulf And - able gives infrastructure and of I both we're of and terminals makes significant

we others about a crude LPG be it's a So more And many as as world. ethane excited longwinded the that's and for in couldn't in big companies an numerous oil. answer we've conversations picked up in well export We're capacity and done too. from with what China around way. Yes, out build

the situated world, demands be that future. around to is where matter For to to and in exceptionally market meet the going future the well we're

Pearce Hammond

from see you Well on could Mackie curious Energy high What I in then do what know into Just Energy Panama for the Transfer high what level super the the for But pertains a thank thoughts be And announcement. my Panama? follow-up country? it's a just to bring be you, early. that. to level, Transfer? advantages would

Mackie McCrea

great that world, do provide of table, in with. the we're terminal a and the where the So group bring of And as years, the need Yeah, over well export kind that excited we gone. their this we're to says work with markets country look the you that's about not major NGLs about the the the is Tom's What from pleasure side we've and the throughout many last, to government that. about remarks, terminals Country just in made for that there, people, a a much hub you been just that on become to we of really now heard met something, moving What Pacific the back just have. the if world? American statement to And of South of nothing really two gone kind excited to has as we've everybody Asian all benefit what barrels market. are as for a Panama from

So bring a able on expertise, Atlantic going - terminals, we really the to we and be bring we're be effect two hub Pacific to we have side the will that at side, bring the operate we in able barrels, the to four today.

excited. So we're very

too the to And early part FID this where in mentioned of future. in going. is not the distant hopefully this, forward look a you very getting we As

Pearce Hammond

Thank you, Mackie.

Operator

Morgan. next of Our with with your the line JP from Jeremy Tonet comes question proceed Please question.

Jeremy Tonet

good afternoon. Hi,

completed start half of over portion you've off to here, if it already because EBITDA guidance, I could seems good wanted year-to-date. like Just a it with the

something at there's would of back of if that not anything you're it the better? just year, relative to a to the a wondering up point, else beginning with be to in think trying really of just is of that so bit headwind year range or drivers within show half raising guide the kind expecting just And the understand the to here this the conservatism

Tom Long

it. you've off Listen, really start for various of bit the kind the guidance which look the talk afternoon, like to this. start But a looking very right, pricing, of you really at We middle is the to We all you're That's I'm heard But headwinds. we've And Mackie look about in good really feel half Mackie think this. feel add next answer down very $XX.X had to excited with I $XX.X forward about anything the little to for We we've that with last headwinds the used fairway, first billion. know And the volumes, that see there's year And you the - if the two kept et Good at to the like with the to But good. the year, once stayed know, range he'd I'll we've when on billion know, six curves we here. any don't months. again, Jeremy. have the great our a in right see you very cetera. you and lot it, of commodities. don't the line not a do more We're feel why wider. about reason next the we do quarters.

Mackie McCrea

in And Midstream in quarter seen year moving big up if so or guess excited our the quarter I Yeah, minute the first up a of seeing, volumes about kind that you we've around or look are it's rigs top, Midstream X%. in about moving the the alone, questions a NGLs. by last we're what in, ago our the of on add this But I'll said joked just to go way. second this Intrastate at time, we're just the Permian they're in what no yet is, year of XX%. We've I

are So as the we're plants Intrastate systems. situated systems these and to rigs plant NGL these extremely are, residue bring connect and to well everybody knows, the where gas an you to our

So system, day. what and Star Lone Belvieu our little a a over you NGL Mont Pipelines into at fracks. XXX,XXX fracking barrels look - We're now feeding both of about XXX if our kind our

we look little a first brought year you misleading, I we frack on fracks, seven, NGLs bunch when we a think storage. on or and about back barrels ago, brought XXX,XXX was that's we a weighed did our high. But If and what because laggards XXX,XXX

different So filling field, plant today. today fracks kind we're of our from of We're storage. from field, the all It's of the from of tailgate plants. plus, the from the feeding the out

injecting actually storage. into some raw we're fact, grade In

is fracks benefit the the 'XX say that getting the all export to LPG of Orbit We finalizing this of exciting. segment team the from way around then end and incredibly So situated market. together online completed the on about XXXX, we, put and effort from NGL we all growth unbelievably the beginning and well we and our just buoy, all project are through can't wellhead enough the the at

about excited pretty So that. year. our the EBITDA And of that'll into help half feed kind the last of

Jeremy Tonet

onshore of to density the and the And time, what support of really initiatives hub economics, the COX emissions. about given over it storage EP an if And particularly Coast, cons have out good that's time. offshore you there it given off industry do PetChem here, emissions for see pivoting a side COX here? concepts would and do or studies pros believe the Gulf over more role between here Gulf talked pass relates solution opportunity over a DC wondering just Got there. of especially seems there is of each Coast, time on And over there's for sequestration kind that it, as Texas really CCUS then just you number Houston these helpful you heavy that know, COX of like

Mackie McCrea

pipelines Mackie, is sorts you This Coast, look that is Well, of nobody than there's first thing all if has along Gulf say of I'll the us. kind different more that, again.

in nobody But to Timbuktu, pipelines, some COX or figure or may coast, situated the us. can lube, to COX if what third-parties the doing a to out we related assets, So, in process opportunities chasing, as into is we from say, project look Gulf projects than down to not what to but gas work our flue these, to either out doing is industry there's or there's better out at really sequestration probably or be. with along it that case repurpose the we're we're and repurpose wherever capture a are way that to looking of

and move those I make mentioned Mason sense. as we're numerous that Tom evaluating together, a great economic certainly earlier, forward good on we'll team opportunities put So,

Jeremy Tonet

it Thanks. helpful. there. it. leave I'll That's Got

Operator

the question from line Please next comes question. Our Fargo. proceed of your Michael Blum with Wells with

Michael Blum

Good Mariner XX. Thanks. on ask East Wanted to afternoon.

can that in would know the could done. much additional project pipeline clarity shippers you than Now know, is the you about once running. give ultimately sign less us from fully just wondered economics I quarters project to some how this getting of the terms finally expect And if away cost? you look two you're, What up like? you fully and up

Tom Long

feel in about north I'll and the the possibly add out year Michael, the of us day. north - will lot, next Tom today, by if sometime XXX,XXX, to September around we will really anything. be we phase cost of the XXX,XXX barrels which be move I'll completed, It XXX,XXX, volumes, good put a end we of that, and start with can start XXX,XXX we'll XXX,XXX approaching a

getting franchise of difficulty] are pull. volumes end, and kind reserves [technical through There's got the know, that nobody So there's of out besides and that to kind but in other volumes come, the the to about Marcellus NGLs, us be are really then you to enormous There you excited whole the Utica get there. outlet Tom. of able have positioned every

to pumps. move opportunity we the do about by And be able we expand, so But XXX,XXX to as said XXX,XXX. expand XXX,XXX can at have to we we'll

have We storage Hook our capability increase to there and Marcus acreage enormous own expanding enormous on dock the capabilities also capacity. at we chilling and also have our

well to pretty across extremely basin you almost all of we're that situated be provider the and of barrels to there. excited out pipeline handle the and we're we're for that that know So choice and

Michael Blum

Clearly you. point need pipeline Permian of lot natural will was Got it, on of it another at expansion the a question be other gas, Permian. couple the natural excess right seems of And next out now. like crude just there there's gas or My a the for pipeline in thank some years.

a look do of line crude something something not they're there natural use? you crude at a not conversion Thanks. your that gas Just the to to all are falling, potential basically or like wondering you would feel it's - if is that's line best

Mackie McCrea

think I best is, the table. that nothing off Mark, the answer way there's we'll

all So profitable to assets be would other pipeline more more we product continue partnership. to at look and will of our efficient see if for some our

short mentioned volumes our fabulous know you time in now this has right done, earlier, recovering team our job I So, of of of year. period kind as a

that's We have a momentum. working diligently a continue a group - to the new kind of group

see bit every we doubt, the how wish pipeline this, we'll where it at have look and crude, but a so but overbuilt, industry is sudden were good to pretty lighter, crude overbuilding and So we're at, analyze of go. good feel will little at things all the and spreads us we a continue opportunity. No we

we quite As years of five the know, from you have you in contracts Texas, move some as a far know, four these we've ability gas, gas to of West fairly significant or bit off some got volumes. falling now,

everybody that new a also a So to 'XX 'XX look into or in as just we secure have accommodate new can welcome expand well a look - we'll but with capacity today. or accommodate available certainly I space pipeline, into we pipeline, can want

it we'll in everything or that the and anyway, at most keep to whatever convert it will sense continue So service. look makes

Michael Blum

Thanks, Mackie.

Operator

Our next question. your question comes with Marine from the proceed line of Please Mizuho. with Gabe

Gabe Moreen

Good everyone. Hey. afternoon,

to requests. I they're maybe surprised and to saga Enable you're ask FTC so out. me Panama get want that getting ask many And about beat But here. think so I can I I want the Someone question, to the

consolidation think needed? that changes sector, to know bigger a much here future at questions, all the here little is your there from capacity or M&A raising which we'd you I FTC the may in in thinking energy general. mentioned as think the it's Just think be on you picture a just approach think you an bit I previous Do consolidation? which out whether don't if agree bar too I all within

Mackie McCrea

I can so could competition guess Everywhere we we characterize much it. lot follow-up, and - say, Tom were just don't enable start we don't and But a know, looking did out to as we'll any how any can issues. don't then one see of this there. announcing it, know at There's I I I you really Yeah, it as of we guess. issues. see pipelines,

were we frustrated So a disappointed the little request. second with and

we around However, or what very with asked well with feel us timing. the like doing do working we're FTC. working the they've We're

able said provide we they've too earlier, close everything future. to with confident, pretty now, will as for. And I'd say that - we'll not we're right going And distant that them that we're a so in to be asked

Tom Long

that together a Hey, let there's to foot Tom. chime is to you this go we is And still think our done. off optimization very good in We lot path the consolidation the strong gas won't bringing, space. can therefore feel pedal right of assets bringing in Gabe and that here. I'll here, drivers be lot the We of in, Midstream know, a

led off to plans no on So our yeah, consolidation. really efforts toward

Gabe Moreen

Got Thanks, that. a to of Mackie. follow-up it. maybe kind Thanks, And Tom.

You of M&A as sort know, mention that allocation option. didn't capital a to you related

still be it's option. an I assume Although would

in I reports downstream think and looking potentially interested petrochemicals. going about media some being at were there

to even on existing wondering pipelines asset the assets I to if of where you offer to might deal there's was So was some interest, synergies Intrastate - I if types maybe can maybe those if also they gas And is FTC comment out another of that. related wondering base? you any be on there. then know, don't appear interfered, those

Tom Long

Mackie All right, to well then why the I the and second difficulty] off don't [technical part question your part. first for with of start

natural downstream. in moving that's think a interested fit. much very We are We

natural the about that things will, all things we've you've a doing, seen go the today, we've think look all been For perfect situation to downstream. path it's for to situation, that you natural to the down we that us talked our if

and continuing we are we very in. have is something interested yes, remain that to it So dialogue

Gabe Moreen

Thanks, guys. Okay.

Operator

like concludes That to Long remarks. question-and-answer hand I'd session. Tom to our it back closing for

Tom Long

all for you future. always, to in and you we appreciate the us you near we joining As forward Thank support, look today. of talking your to

Operator

Ladies and conclude your this for you participation. teleconference. Thank does gentlemen, today's

lines disconnect at have your and You a day. wonderful time may this

Energy Transfer (ET) 4 Aug 212021 Q2 Earnings call transcript