- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to the Energy Transfer Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded today. I would now like to turn the conference over to Tom Long, Co-CEO. sir. ahead, go Please

Tom Long

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

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

a million a to prior the $XXX billion related up experienced of quarter a of our were find generated quarter going in I'll third oil was by nonrecurring In metal. start $X.X year results. XXXX. reconciliation over EBITDA of during adjusted our third XX% consolidated non-GAAP another of for today on compared resolution we approximately which You'll measures We strong report pleased website. we the quarter, to financial quarter the third the to legal segment our which billion, charge $X.X crude

crude gains items, to NGL million from oil X $XXX in quarter EBITDA the across In Absent of recognition the intrastate, for addition, third our products in the due an inventory the fractionators. hedged record the adjusted higher and impact segments, including volumes billion. have benefited been we the these Results on our would third segment. Midstream, had timing quarter of volumes and refined negative $X.XX for approximately through of all

of compared of billion addition, to of prior December in the acquisition as was $X.X for of period. cash be cash had XX, per third or This contributed the million an our growth of we a DCF announced In over the in approximately quarter $XXX flow quarterly to quarter November the billion approximately record to of to basis, assets paid of XXXX the as DCF close adjusted, attributable XXXX. for This we the growth November incurred of $XXX of of On distributions distribution the $X.X and resulted Enable quarter This distributions distribution On partners, third of XXXX. third $XXX common of after XXXX business capital an $X.XXX excess million will October represents XX annualized million. of after $XXX unit unitholders distribution increase on XX% basis. over on approximately million. a the than more X. on $X.XX excess

returning distributions $X.XX and As growth quarter unit level the level annualized the ultimate target, quarterly per of basis our to balancing evaluated the distribution reminder, opportunities be a buybacks. or with to goal previous an increases while $X.XXX of leverage will future on

our revolving As was billion. XXXX, liquidity the of total September available $X.XX XX, under approximately credit facility

period. during EBITDA due negative start the was NGL on mentioned million change This Now impact period the last the for refined $XXX hedged was $XXX our million same with NGL of I'll due to the segment. by to of and turning the to recognition Adjusted million timing compared results the gains $XXX to primarily current products. inventory previously year.

and Mariner higher the second XX% to more we XX quarter Nederland. small company of transportation continue derivatives XX to timing ethane increased well for approximately gains Nederland, that of than term. and year we export million was amount the NGLs than pipelines our NGL This into segment were contract compared around terminal Nederland doubled on as of increase XXXX. world and a with of day volumes million. to volumes day $XXX driven record, Nederland XX per EBITDA quarter third from the record would Results majority both on by and NGL as NGL on to at third to new which the worldwide approximately million significantly initial higher period expect been settle by market. our for rates. the on averaging a day our Year-to-date, Nederland, the pipelines transportation, XXXX, the partnership as approximately wholly compared out noncash same to exceeded barrels for higher fourth fully last total, XXX,XXX otherwise XXX,XXX of remaining venture other of to barrels of the and in volumes margins any We NGL joint have for more quarter million And increasing this we X, loaded was day related primarily realize for average hedging, this physical At record Hook. exports for going our fractionation, fractionated per a to Marcus with million volume Terminal have country commitments the third into driven the export tranche or per of of barrels X.X of July volumes satellites year, by year. effect in barrels our last out the combined matter out adjusted owned In exports first per driven ethane XXXX. XXXX. million quarter services the barrels storage sales And ethane due offsetting on barrels full percentage that expect East deliver the quarter load of barrels Adjusting pipelines. our increased volumes set with to financial volumes X.X settling the forward in

of $XXX all regions, operating quarter $XXX the to to adjusted favorable for third due natural compared million midstream, gas XXXX. our EBITDA throughput million of NGL was and of This For and primarily increased the was in prices XX.X and per the MMBtu’s XXXX. MMBtu’s record compared for period million volumes year. the XX the gas per Gathered day day of last assets Enable same million December in to were acquisition a

Excluding record Permian Enable, near partnership the volumes assets Gathered remain quarter. a gas and on at our were legacy third inlet also volumes record or for highs. Basin

to continue new the plants the available construction. daily optimize capacity processing currently of are await as Permian X to completion under We our we utilize bridge that

XXXX. South was quarter Coast a refinery related third improved charge, Absent this $XXX to offset adjusted year our period matter. resolution and addition driven same strong well and of legal as to X.X been terminals, for higher of Earnings increased would export December of by driven demand barrels crude transportation as Cushing by million crude by as utilization in $XXX Enable of day XXXX. compared year. terminal. throughput These pipelines our EBITDA per were increased well to refinery X.X the oil per volumes last million otherwise million the increased for oil the the assets $XXX same charge our addition day to Crude the adjusted segment, million Link $XXX million record For the and and compared million on were last demand barrels through results prior have stronger performance year, period at our Gulf Bakken EBITDA the oil a the of throughput the prices pipeline, Houston Collins for Ted higher as

the our quarter. transportation also compared record In oil intrastate segment, quarter third third for the a crude million XXXX. Enable, was for $XXX million $XXX of were volumes adjusted EBITDA Excluding to

the and well drove we the the utilization assets. line higher CP on as production During as increased addition Shale on Haynesville of line benefited greater improved interstate the Tiger quarter, trunk demand rates, other from enabled in that

assets. segment, We takeaway EBITDA system was addition Rover. increased to utilization at many as increased Haynesville. HPL including of in of quarter due Tiger, the continue due our And the our million This to of higher of to the FTT, compared and due to was to see the $XXX optimization heavy for year. for pipeline as fuel Enable intrastate or primarily and strong higher revenues our prices continues to remains pipelines, natural to related million flow retained third demand activity interstate increased $XXX on last for our adjusted capacity opportunities, gas near gas the rig Utilization well system Stash

owns September of to $XXX million. our also in processing gas more as which approximately low Oklahoma completed sale in provided the Turning sheet within $XXX XX% proceeds and capacity already and the and on we us LLC, connected attractive divest and million. gas well bolt-on utilize by Express than of assets acreage gathering assets $XXX intrastate long-term, contracts. cubic M&A Canada our by our acquisition system. our these noncore approximately cryogenic consolidated allowed this XXX It The fixed mid miles brief supported inter of a update XXX activity. August for Mid-Continent of as opportunity of treating debt systems processing year, The our our Grady the million. of are fee our completed as In further the this The well an in approximately dedicated gathering deleverage at capital redeploy lines balance roughly reduced footprint. the to a cash play. Energy valuation U.S. year, system This SCOOP for we per our with Transfer of in cash is system of pressure foot predominantly County, and And day gathering proceeds of heart to interest Woodford million sale gas to and as

including ongoing X aggregate agreements recent at a million annum, developments has looking that Now was in executed per for LNG Lake tons executed X XX-year Shell projects. August. LLC LNG nearly growth of LNG offtake an Charles at Year-to-date, with LNG agreement our

of of and in As we of finance agreements. LNG means project conjunction of cost stated, the industry by with in to have expect project to portion possibly funds more the sale to offtake participants infrastructure capital significant previously the equity a and this one we

signed contracts negotiations in with letter significant of for for Japanese agreements long-term we two with several We and nonbinding have offtake LNG. customers volumes offtake recently for are customers LNG active

from energy are will gas Charles. the all by cash realize Upon first towards natural aspects on completion contribution the pipeline flows growing the end provide project, project to Trunkline our quarter we Lake Lake progress upstream global making FID Charles system LNG our an XXXX. We incremental believe of other and now that pipelines of solving significant of we're on of the the We and LNG expect demand. transfer transportation of from energy important project targeting

more capable including reminder, pipeline fully than a ethane. XXX,XXX East barrels to transform and is system our As commissioned per day, Mariner

completed mentioned, us Marcus ethane terminal at work previously out we Marcus have increase our Hook allow to we Hook. exports As of to

million foot in and our ethane per plant, existing processing Even our is of the Bear the out Hook exports well the by cubic forward day ethane Basin for total demand expect which to optionality customers NGL it record sufficient to terminal the our Terminals, plant from service Mont initially in export new quarter. on supported at be new plan as Delaware expand accelerated both a Wolf meet growth also in to though XXXX, Marcus to plant continues per U.S. is we ethane to us we and capacity by in export our and in move expect have VIII per increase, provide foot with the in of our Construction second capabilities of reached we third at the Marcus customer an the continues both result, of This to Belvieu over Construction commitments quarter to be to day. as commitments underway these bring is remains the day processing XXX to in million XXXX. expansion. underway. we growing cubic Frac commitments overseas terminal. and Construction X.X demand. Grey a Nederland As schedule will third XXX and of million with from expand on Basin, either was Delaware fractionation Hook contracts new located end our which schedule, barrels service

service We expect in to the quarter second be this in XXXX. plant of

additional market. commitment Gulf the a to is Golden for backed with which with X.X another In was season by of finished, compression capacity Mcf processing and Oasis seeing, export X.XX LNG, end we given XX,XXX of significant demand. a we day Gulf expect the demand modification the Mainline XX-year the in Run addition, recently of to Pass We're are day. the necessity nonbinding of amount and will product will the the evaluating pipeline connecting add per the region. natural by complete potential X.XX and with and U.S. likely this growing we of customer It open day year. of Run pleased adding debottlenecking facilities the only Basin. of design plant work which interstate concluded discussions construction we're XX-inch beyond Shale Modernization is gas Bcf much between for pipeline Run, which some Gulf Haynesville gas and of Bcf a for open due prolific the on capacity necessitate pipeline the continues, are transportation Coast, gas-producing the results ongoing, per in provide natural most the day of from and on upstream to LNG the Gulf per of needed natural regions Bcf initial delivery pipeline our incremental the will an season out the the Permian timing of per network

it expect by of in with by service end service full partially year end January to the XXXX. the be this We of of

these out project significant remain addition is Pipeline project, sharing to We the can a as look projects, a customers which and Permian the these the to to that transport as term, facilities. petchem to projects the optimal any of most optimistic bring projects of ongoing well and at FID forward we acquired these the on could time. significant have or opportunities Coast the appropriate Gulf gas Warrior to updates discussions to develop projects upside petchem evaluate on In to our business. continue that, for solution long include we These regarding number provide other customer over

project On the reducing related pursuing carbon our pipelines, a the alternative number emissions our including of oil recovery sequestration, and to focus energy on use remains across in projects front, capture enhanced for COX to well Lake be place. liquefaction proposed industries a you beverage in agreement and excited and we from have once update specific as sequestering food facility. LNG as our Charles We'll

growth Compression projects, CapEx. $X.X billion SUN on for excluding the the capital our September growth segment, Energy XXXX, X refined ended spend at NGL Looking organic USA XX, months products in midstream, and intrastate spent approximately Transfer and primarily

capital projects For near billion before XXXX, XXXX cash of the expect our online range full high XX% very are are to end growth our $X.X to expected billion. and attractive already growth year spend XXXX, of be expenditures we be or $X.X end of at flow is Over of to that of the online capital contributing comprised returns.

capital quarter growth call. XXXX outlook our provide fourth will We on our earnings

and to EBITDA of improved growth ability adjusted demand as EBITDA to cycles. existing adjusted first the given market improvements, supported market a demonstrated be $XX.X natural our billion. million. We billion remain months we as our through and X guidance our $XX.X the expect to for to $XX.X demand is international now we between is our for its XXXX, gas conditions, our has year growing This business strong the $XX oil, strong assets we bullish as compared stable outlook and utilization performance up to by of For of well our continued well production, services, our for guidance our expect gas for products of as have products. worldwide about Overall, and that and billion liquids. manage various future demand And domestic increased crude be strong industry as natural the future previous

best strategically to our target in to expect to us value improve growth end our return We invest the positions unitholders. projects high-returning manner flexibility X leverage leverage, our times a range further allocate X.X continue by times of flow cash and in to financial XXXX of to and reach to our that

first for base growth generate enhance and to demand additional line allocation pursue Operator, strategic will part attractive strategy. as open concludes up our to This capital we prepared projects our of our asset new ways that our address the our As look existing returns for we continue and existing products, please remarks. question. for

Operator

Instructions] take [Operator question, from will this, Jeremy with go our will Tonet Please we ahead. come JPMorgan. At which first

Jeremy Tonet

Lake with the with start want kind LNG of could. I Just off if to project Charles,

walking emerged of or past that of so. have details through over Just quarter the different number a kind

inflationary fall of contractors, You've by where to if had lock will. kind kind smaller of it's it's I kind an competitors Yet, of think. you environment still in wayside, the hard

impacts, wondering how point? see for outlook together your different guess, influences that Lake coming I these you this Charles Just and at how

Tom Mason

of of that question. impact to pricing as had LNG on as Obviously, right parts world escalated since now. touched lot Jeremy, liquefaction. ago, have question, is great got the A on, but the bid and years moving your first our in you've EPC X an we costs

a good being we our terms a where pipeline we're sheet made in gas company new have great network. We progress in with liquefaction with we natural And about of strong bigger as are balance a increasing charge excited contracts. and progress

We are a really the position strongest line. tanks facility we're to the with and brownfield one storage goal get docs, of to with good

Jeremy Tonet

Permian just pivoting kind And bit. maybe to then a of the

us, more as the If outlook do takeaway update far here latest evolving thoughts your Waha wondering could that prices how you the open hurt not I have imagine I could details at I over of year? negative Warrior. business, if guess, but on capacity provide that, as you you and on see half just the first you maybe could increase how in guess

Marshall McCrea

is Yes, Mackie. This Jeremy.

a years, across going We do years few to do The over bit little a throughout in next capacity that fortunate and situation of get the We deeper there's that's most of experienced about any out. be on get a the to or continue any We gets back. as today, We as year in blip see weeks state. that very do we have these like excited when industry believe kind sit X spreads. we've the last this that going it's the blow the very next project that wide X of is Permian actually moving to X available gas most more Basin. out pipeline base we

benefit So But time, Warrior the those will be spreads. we after diligently announcement getting at the able line to finish the the offer working same team on to wider we from towards of out this will of there. other of a we Bcf the across. slowed announced down. XX-inch that's next couple be line, it's kind It's going things to But of move pipeline

are not whether as Katy off We Basin, really of by best ship markets other our good channel it's the coming for Delaware as the of Midland anybody out systems. or option well interstate for Permian

and but in that that keeping we head we're when we quarters. to next be very down, our we're decision, couple hope going So of prudent to make the

Operator

Mulvehill ahead. will of question with go from America. next Our come Please Bank Chase

Chase Mulvehill

into question softened a Obviously, bit And kind guess near-term thoughts of we're ethane kind Or ethane think and release kind a you ethane about over I of thoughts rolling do see exports ethane. how if kind plays that full I'd running on about as you out be little prices kind your that have up that a actually there? of the curious of on quarters. here. your that and valve? rejection on capacity coming of against

Marshall McCrea

so is Yes, to far with sufficient as and around out Nederland this building we've have just ethane we're said, contracts Mackie. Chase, what expand. as building Hook now we as out pleased we've Marcus done

or Gulf or we take But in we the years the get However, on that it's -- depends X way look to Coast. at just the X is decision, rejection will the once whether expand along region. once or to recovery the North make we

ethane in where and we're So we regions. prices prices and right are energy ethylene the in others. may some most standpoint, in of But from transfer recovering now, gas projecting we areas an ethane recovering are be are,

then the we decision there you up today. ethane know, projects. amount a There's And a up in expanding maximizing at ethane what is head Hook at look As our Nederland, lot Marcus a at of have as rejected to toward or tremendous for we of either daily we'll Northeast.

our second into said in we've remarks, As satellite tranche. kicked their opening

So we've got that.

will capacity dictates. have that a as fully month-to-month the basis also additional be utilizing We on we market

Chase Mulvehill

some volumes just ask is of projects expansion announces really else you their for But opportunities somebody some [Chinook] your kind do I reason of got curious NGL one maybe of follow-up kind with some a for to offload to But opportunity if if long-haul of there. right, and of mean, peers If latent kind and like to their laid have bit what with peers of of the and of this there's when is competitors an and you more I'm Lone be because help volumes. week. I industry here of outflows capital work another Star. So on some your there's actually NGL latent of kind you think I on asked capacity maybe I'd little your efficient. work capacity some just just kind something that to Permian you've some the later those

Marshall McCrea

again. my mean, Mackie offer through at is you're love natural know but certainly I'd would telephone about this our interesting, we. there good to pipelines. that's feel Yes, -- Yes, give anybody where And We please liquids who to about, we real number. I gas we're talking transportation pipe

set records Permian. the Over the last out several we've of weeks,

these I barrels we almost Belvieu think past million day. exceeded fractionation Mont X And actually, around XXX,XXX hit of with barrels we business, temperatures. NGL week here our at colder a this

have more we significantly the out next more X on cryogenic second our ability to of Permian quarter new the volume, of the come plants year. So by as volume move

built we barrels out would from love they're have barrels. to their it get had from. off certainly you've the we bids trying below, to there accommodate our But and to own hear So

Operator

from question Our ahead. come Please Solecitto go Barclays. will Marc next with

Marc Solecitto

up one So exposure. on around of maybe the a basis earlier following questions

couple that a of referenced years. couple over quarters hundred I a you next few ago, becoming hundred open a think the of was with Mcf available couple of

you sharing that? just if you are provide So if could wondering an update

Marshall McCrea

over the had in that, I -- XXX,XXX day about Sure. we've of bit are no capacity matter because But is kind those into negotiations X negotiations. year a we say, very quantify next easily or that available. what impact it and about on Warrior comes I'll little a we've what got that available could with notwithstanding

year. the part latter in coming our said part we As the and next XX,XXX of year remarks, we've available of opening first another got this about

have sit right XXX,XXX we'll a as we around today. day us here So that available puts that

Marc Solecitto

just respect the to then updated And guidance. with

upside mostly revised the just and lower your previous range if range. color wanted or whether there. about any drivers? operational was conservative I between segment. think Curious function price upper then just that of to crude end And you First, the we legal settlement the in any a as revision, of upward to variables guidance included then other clarify commodity assumptions And the have the

Tom Long

Mark, legal Yes, is Short included the that this not is previous Long. the Tom settlement was answer guidance. in

So you includes But that we mark-to-market up on NGLs. the does $XXX million. will with the some the include I this came $XXX the guidance see million right timing tell also around you it the of for

guidance now back right we come now remarks, So $XX.X the billion to the us one most as highlighted you quarter. of the $XX we're But giving of in the the prepared are both we of to those. in or billion, XXX include expecting fourth does

you as the mind that, far in I in quarter. but it what as Mark, do through, question on of the to guidance prices, conservative going we've in that and fourth think of the does fairly keep that of stayed most commodity So occurred rest that continue include the the were we quarter, reversal always third that. your

with gas don't the same at I going side at for was It of us impact. to now. on months the of to the we right think time, the you see least year But it, that. in for do have left prudent many are natural of prices, an much some where

of you to answered need what I'm other parts that not it few of a here. may You part question, had quite repeat

Marc Solecitto

range? revised within of range, drivers end, between upper far as the the some the and the and as what upper of the lower parts Just lower are

Tom Long

what bit that what seeing right It pricing continues be now with anticipated. the a occur quarter. in had higher Once shaved running to little got off a was a that of we fourth you're than again, little

piece and across team team other optimization really are do. that what they're the just a and compliments to is great have system our we efforts of huge able The to to are occurring that continue commercial the

probably so And the primary X that's drivers.

Operator

will ahead. Mizuho. question next from with Please Moreen go come Our Gabe

Gabe Moreen

lower? you next today, drawing there's but of on bit about here things sit things outlook just little may higher year? board. a a kind But think you CapEx lot can talk still be still for you may next the realize be you're early the headed of or Whether days, going CapEx for you where directionally as year? It I

Tom Long

good because great in going to of we of It's them. question, hold okay? worked several do have projects, in fairness, is a lot We until many fourth Mackie And off was that Yes. always over so hard a that trying quarter.

So everything from Charles several items, petchem, you've got Lake Warrior the the cetera. to et LNG other to

to that. right it's wait So to really we're to quarter That's of reason there end the that give that's we difficult the the we've be till you everything fourth probably about that much out now. able provide But talked pretty seeing.

until we more year, kind can a it's see, as those. $X.X So not for guidance if number. this billion to little a additional we visibility really really $X.X year back you to But not give you give what you be of guidance we next the can have go to billion, there's into large going a of lot

Gabe Moreen

X-part possibility capacity straws of guess, guys of, without have Haynesville I would up in I repricing of I out where with you also, all utilization kind part wondering can Haynesville And of that, the contracts follow just market then to the you of terms out be pipeline you and front and on in is now multiple that an update just Charles? that expanding the a if sort Lake question. the Gulf And really I'm demand. second or maybe are think of guess, in on

Marshall McCrea

a wells X, great goodness, again. out holding [Indiscernible] to exciting see pipe while, Mackie ever XX-inch an and lot for this Maybe seen you own this. my when to and on XX,XXX, systems. coming could place is What whole XX,XXX, saw area, of Gabe, Okay. XX,XXX other Yes. but who these a years but days a ago,

that. very So we're excited about

earlier You our touched like the on remarks, in full. pretty is said things we some rigs

at the backhaul, looking to assets Enable and Gulf Tiger get our some we're and down of cartage So our pipelines. the get Run to also

the on everything in the our Gulf Run, to the on Jump be both that in So doing bringing X.XX. all we in We've of utilize to of pipelines the end North capacity directions year. got by we're excited can very Louisiana.

have to a We Bcf for sold long-term that's X.X contract. Golden Pass

looping have And We've is left couple got we compression as adding hundred on us finalize We that XX-inch. emphasis a year a quarter it in we XX-inch? XXX the next as and as closer adding and looping much also we another the can evaluate that the we we're be get next step? that the of Charles, at line, to are probably Is As what value FID, arrive of secured is the that Lake to it first we much that. extract behind continuing Bcf? Or that. entire hope very of trying will

probably we is also we to that once end anyway. So FID may get But do that up will there.

we're closer of go need that, down as values excited see a and as higher that said, further We're you CP, to move almost will Gulf on Tiger way, and to about a you Run. seeing real really for to that. given the and margins. gas which value $X.XX, be They past on out. $X.XX, Florida. wider to narrow we're you addition In excited we are east much as And get seeing Louisiana We're $X.XX, seeing $X.XX,

our those sit, utilize and fully to we at So revenues pleased we and maximum where can we're very our we for the to will unitholders.

Gabe Moreen

based World And Series, sure both that's Appreciate if locate export but how. the the it. want to to expansion I I don't have wins ethane who on

Operator

Bernstein. go Please come Our ahead. Salisbury from next Ann question with will

Ann Salisbury

by think, down. Medford was being NGL Your in quarter segment frac the bit the a boosted, I

the there's frac and new starting that end I of then third-party by year. think early some next year the

incremental maintain one you of quarter you kind So earnings do do you your multiple over that this is in of view quarters? can as a -- a view, kind like Or boost?

Marshall McCrea

Ann, some T&F it for step We've out. now seen or tightened. I'll a really is some the Yes, mid-summer, it X that back. or really early of over other similar XX so move Mackie of kind months tightening again. and assets, seeing to on of last this spreads of months, really last X got summer, And the we're

on. revenues significant that comes see Yes, from frac of So optimistic there's We available will capacity that frac that a frac if spreads, are whatever eighth frac at the very before coming a just we on capacity. look it. you have our have very tightening we

One to next are quarter and more Belvieu, isn't few a and to the 'XX like and of year. on ours that accessible that's others Mont into aren't third coming Mont the really Belvieu, of fracs fourth accepted that until

Belvieu, So -- tightening hope their a capacity already at fractioning is of benefit going to value of Mont fracking to there's there be from that the and as widens. we

Ann Salisbury

not take And still how or Permian much you that remind couple interest roughly happening can roll of your And years just see if off? next on the if recontracting currently part is in the crude to any pay then other there's on pipelines yet us that's take-or-pay? pipeline, you start when

Marshall McCrea

into feed offering systems But systems what and top than say widening. as off well a pipelines, we're customers our header do similar we of the how bit just we offering at we're is see Houston take-or-pay, with can some We're offering where overbuild sense a is reason that believe storage. into at the believe, it's Midland header about, head other other crude of the see or wider we some much we feel we're to today. call pipeline even Nederland talked don't exactly we locked the offering just Bayou But spreads There basis. and of of to blending, oil we earnings Yes. question Midland times of the my or what author loaded that of we exact I in of on up what into as much refineries numbers portion or have to with at service we'll means. we on as in Houston. little is is not it Bridge a every to but at as And the that that access pipe

So way. we months we to as deals we expect what are and that And kind slowly filling that we see Most several margins. here and But did all more. old at of see start that move term spreads. daily, doing don't to do have move also out that of that ago, in lit widening monthly really that's we contract out

Operator

from Our Wells question go next will Blum Please with Michael Fargo. ahead. come

Michael Blum

buybacks get rising into growth distribution, I that couple rates? and about distribution next you a guess, you light interest to of especially talk thinking are guess, of questions. had about $X.XX you how Just I once can looking year, in One,

Tom Long

it be talking about to thankful versus alternatives. so other we're from standpoint that the And

-- point, the tell anything targets. quarter in after on far XXXX bucket by the as at not of There's growth. it quarter this side our distribution distribution this been around you, We'll meeting we So planning I at will are we as the and dialogue looking it.

to the we're get that continue say maturities, at When quite we're -- we're to at paying some to have opportunities look we're happy debt. to continue leverage We year want So going range. next get look X comes free going down X.X want the buybacks, don't to with of And to I X some to that. to in really be we're seeing range. that that target all the And to continue to that the to flow going to to closer that. we'd unit it going that to it and look debt at cash

So we buyback up also bit likewise than there to up the unit great Those that lower about. get the to higher but set capital leverage, than talking we're would buyback. little a put higher that unit the projects

point. a get my as here us with the made gosh, to is be that. Board do we look let we than we distribution quarter-by-quarter to that. going So our But we're healthy Directors good to we've that where this great discussion at right have It's how to to of It higher XX% get and on now, $X.XX. And at is our progress the were. great target level,

we've looking from it, really great executed and ourselves standpoint. place it's So we've like to got that on a

Michael Blum

on ask wanted just cracker. potential then to the And

give fundamentals versus it spreads, of there's cetera. likely building? terms make in the pause more to right some buying want that So you change obviously, in Does investment? you give investment? to And weakness between that petchem you et make does -- calculus that now, making Does that

Marshall McCrea

of take certainly for sure. to project Mike, permit. spending dollars at we're way we're trying gives that that a That's to point It we're people this pause Mackie. filed we today, at of looking material this is not capacity have as a with coincidentally second amount the right But is now.

days, last permit. permit, TCQ our filed we and we core the of filed Wetlands couple in our So

those are on XX- goes and of kind that it EIS XX-month to on processes whether So all depending full us gets to that. That's going. --

So we've kind of started that and done all that work.

throughout going believe Our team question, to answer get to a have and that get there. we're And deal do world. return meets of number interest. there's our us get working of your diligently players unless sufficient we is with We there the But the we'll to of not really a country great a commitments threshold. rate

anything we a generate sign spreads very as now So crack the narrow we in And you are income And if the to and right you compared cyclical. up there's get and need a But quite can industry, we there the period know times many build out a to tough what because to so won't hesitancy of it. short good in lot time then the is know of times. signed.

both or with to going We're to we like speculate kind home partners potentially. everything. we're time our in this So time, going do we're up not project not this to a line this run approaching to from

own we'll will we we the the and yield of said, we've and flexible unique in the to in the partners be that go we and all will around take. cracker end believe we bring most hear of that part As about world. to day, continue XX% as But the this expect also at most be the anticipate customers, these

at gasoline we look well network pipeline products enormous got see all look four pipelines then the pipelines And upstream the about you and before, our to for our we'll as talked the storage tie we've butane as butane and takeaway, that customers the to feeding are the If refineries we as pipeline to natural products in the and/or propane, by ethylene, bring can and of have into to into market. amounts at ability export ethylene gasoline to you propylene and deliver Nederland.

project that's if a sufficient great and those we get again, once customers but way FID, to great of be we'll commitments, going have So partners. return, some have to have of and rate a one to good we'll early some that projects

Operator

ahead. with from Wolfe will Keith question Stanley come Please go Research. next Our

Keith Stanley

Two clarifications.

debt Tom, First, maturities has you get to end amount new of again next you it I alluding more? the to facilities of know to low short-term borrowing that? like it you paying year down Or you leverage here? would Can addressing then to pay decent try target. seems were probably the a for to year. debt to just the company some cash? next how some And your leverage talk you're Is down issue on to look would planning look

Tom Long

revolver much facility. looking a free getting as as clearly But as left down as we're good do cash Keith, to in what little is still go They're a Yes, can. paying going capacity far on our flow credit at be. we fairness, have very to our our from bit we

look don't throughout not you said going you as much want a some the options that when in if try continues So lot and out looking when to to of can to it we're can have moving and the you we're out see free nailed I we is the front we've as to what going revolver to play cash got of how as to we're be of the the like after. down want over careful. year, year way the that, we But at and of only financial get best targets of you to the now it it right flow all to and I'd options flexibility navigate because the we leave of really remainder preannounce. to reaching that, we pay going trying it

Keith Stanley

XX% Lake still Lake possibly Charles, where Lake sell-down. to unlikely? talked next fund when Charles was so is of like about the of uncertainty you budget? to areas year. base Are on is you of up your that's part you pretty But need a that one the XXXX CapEx as scenarios year could look there next it Or And Charles for meaningful when amount case a to sounds capital of

Tom Long

we'll through see That's probably But that XXXX, unlikely -- point, that do unlikely next would I I meaningful probably where way more at this to think very about year. for it we'll next the all we what year it of be upon goes. call we in will leave have move would But through funding a the based -- it unlikely category. would

Operator

UBS. from Reynolds come question Brian with And ahead. today Please go our last will

Brian Reynolds

on 'XX quick CapEx Maybe quarter as at Having bit relates out rating how point Lake you desire was just just and there's financial the given the opine this could for a CapEx. pushed this if capital as distribution specifically, it one an to maybe allocation. follow-up curious just I if timing And curious or of the seems base? number little Charles buyback or perhaps influences on to on additional point? the then for was upgrade credit to growth a that two at upside be priority limited that flexibility just

Tom Long

Yes.

is think target, that that end out the much put X.X. get of I X you to start that the there one lower agencies all to range. best maybe with X to way the that closer Pretty towards

that we've going continue hear X.X got think we We to think into is credibility that into continue You're us. very them. to we're to with next dialogue been us. on important them. to dialogue the X, now and that upgrades. agencies. the do notch the has We get And a way. looking them to they And with have All constructive, at rating get higher really want by with this of lot had We that

say, we Leverage you remains your our a much demand continue when Energy lot Charles comes at of projects, have, you side. laid moved et pricing was the to those around these of And all these get question continue got around important, We've would entire the the capital that. that that asked looking of really lot when various targets and comes to the to at LNG. at cetera, very to within really Transfer. when a look that have flexibility optimization. really at talked critical we are access And portion When the to is look at they're have the capital to the our we on debt out very, and look up. what And on earlier projects the mass down Lake so we -- broader The targets. the best to benefit some capital infrastructure, are I we look question, of A a we've to it the priority, guidance, work points pay do get we about drivers the continuing there. very you about

the today a heard to talk percentage side. these continue at is a demand to the do You've a lot We're about side lot look us What of a not look supply petchem. own we the lot of large trying trying as of assets. to we're much at these as

do projects these spend are So be a and very give high how We to disciplined in important. them dollar. we capital priority, we'll every continue

Brian Reynolds

limited And I it guess, just as quick point. upside follow-up, just there's seems to CapEx a like 'XX those given this at comments

Tom Long

time? -- Brian one you Yes, mind, I'm I'm more not sorry, do

Brian Reynolds

like the backlog, and New seem really 'XX 'XX a projects doesn't guys from to it come if provided event and projects slide more coming that it CapEx new the that seems large come 'XX those you into set projects fruition. deck it's any pretty have into

Tom Long

fair immaterial a as That's fairly assumption. I'll as far amount XXXX. as just it Yes. leave a

Brian Reynolds

capacity open Permian can is spreads. and And then another for year Haynesville had all number open then Permian second, for me. talked effectively Curious, you on That's the question. and during capacity, a an for or spreads the Golden 'XX? year so Gulf from I Golden online it the open guys Pass benefit just know come year? about is And capacity all lot we quickly provided have last in Pass have given that XXXX? Run there for

Marshall McCrea

on understand Gulf Golden demand Pass Bcf this ask a of again. is X.X Run, I the On that, again. and charge. they're we sold have yes, second I didn't might Mackie paying I day to half

And being at can it's So we way regardless go fully the to paid your charge all But up that second like of will they use where capacity at that's or are assets, half? in utilized whether second of the we being for do I'm -- they some look we not. getting look geared that. is sorry, not of question, our actually demand utilize we pipeline everything to

Brian Reynolds

have the on Just for how does capacity Energy side takeaway much gas 'XX? Transfer open nat

Tom Long

Dave earlier. talked about

Yes. So

about we've earlier, mentioned have approximately in January, now. close the And across XXX state. a of the by say, we I to, end $XXX,XXX As got should sometime day the

Operator

I to for Tom turn to that conference question-and-answer Long remarks. closing concludes And any session. like would our over back the

Marshall McCrea

boys I a And compelled up fuels. statement week. And going Mackie, reason this asking an attack do in attack, why it we've I are relentless this election know And real the is the here quick. fuels this, got fossil fossil but also on have I'm that Yes. coming a what's driving to teenage don't And I'm making about tomorrow. I

changed a make that kind will statement of to fossil that going I'm ironically, fuels So end quick humanity. and

with If aspirational last policies put dollars it's of of barely tax at growth expenses over at hasn't trillions these dent and all or you years, with XX and the the credits, and subsidies a look in fossil in been fuels.

environmental fuels. and fossil devastating and politically seeing impacts as to of find now the truth a organization security the And the that is matters and cost, the the doesn't interesting it's a energy places. became reasons of around that and electricity And to from the increased out access standard been he's impactful matter is. is. without fairly so in cofounder truth tremendously. life And X% everybody It's what more large In And our reasonable fact, as has led believes production that we said living use left. -- that in fuels It standard there's made of just reliability Europe modern health Planes, we're of have we with what of one products of energy possible METRO logical increased demand public renewables living automobiles. world, world rational us mobile. call, their I I every has fossil And renewables. was trains lives. demand the is come of on the within -- world think say It's It's our life fair we’ve that I recently has think the organization and spans. knows affordable will to electricity not and thousands mean, comes simply our our is the In not other the that increased of from day. in this it's it

movement really to that environmental being a and the media that political movement perpetuated has administration. is So particular by the turned by

have is meaningful that here to of not frame. base dangerous and some a transition been that is in possible. dilution the feasible play made a is time is recently policies Energy So region Transition such any idea kind statements It even

this transfer especially to reduce And so the burning to of gas the to all the around fire everything biomass what is That's around to send liquids world, world is and submissions who and more believe animal world countries else. natural wood waste undeveloped are more replace we and our this. build generation gas-fired solution natural coal generation,

hold out new drilling we or come gas leases, a this oil permits, skit, not allowing last of of get has administration, try where seem to into proof administration an this And to our that within more. gone we up in service then And pigments And is what to and that the so pipelines. here, allowing out and not Night like countries take Saturday terrorism say wasn't that's into and irony producers Iran, the and And FERC in days, administrators tragically have who I'll or it'd do our been we have they're this we for more an just now and sad. petroleum after end reserve. produce they're trying hospital promote election on the for Live if like for at Venezuela, I if goodness, my with countries approaching we oil. low not producing hate this and it right like come service mean, going and not start penalized doesn't so funny the while be U.S. allowing came coming do out be industry, and even put attack gaining very strategic and sitcom and attack on going or to that few them down a in EPA got years we've slowing to SEC

And tired my of sorry turning podium, I this fossil get to from but in voice business. guess the it tired here to fuel being I'm attacked we're tonight.

do anyway, want to So Tom, close? you

Tom Long

Listen, future. appreciate all to we for you we we of support. talking forward -- joining and thank near in Look really today, you as us always, your do to the

Operator

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

may disconnect lines. your now You

Energy Transfer (ET) 2 Nov 222022 Q3 Earnings call transcript