Earnings call transcript Q2 2023

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Operator

Good day, and welcome to the Energy Transfer Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded.

I now like to turn the conference over to, Tom Long. ahead. go Please

Tom Long

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

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

of a our measures website. on reconciliation find You'll our non-GAAP

We and pipelines, exported and our NGL volumes volumes from NGL our and Netherland midstream like billion, adjusted XXXX. I'd today products over Intrastate record performance XXXX. and as terminals. going record Marcus financial segments, EBITDA for base business, second our start as operations, In the billion of across quarter of which of our our strong by results $X.XX for $X.XX compared second of well through to our the terminals, to out delivered Hook NGL generated quarter had refined we including

quarter distributions Transfer cash declined average Energy $XXX $X.XX million. resulted XXXX. for $X.XX to the billion of by Approval billion, offset Our year. and prices, the of volume partners excess of flow respectively was adjusted over after quarterly compared more of XX% NGL as second This and lower growth the to natural in DCF. XX% last was gas second quarter significantly than which

per the common basis. represents XXXX. second On a July in XX, $X.XX annualized announced an we or distribution $X.XX unit, distribution of increase paid from quarter of on $X.XX an quarterly cash This

We leverage continue flow returns equity and while increasing maintaining sufficient to rate, distribution backlog X% annual X% growth to our reduction, to of balancing target invest incredible and growth opportunities. our a cash

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

services refined impact, offsetting transportation on last hedged was margins to volumes turning and storage $XX by Now and terminal to NGL for higher the $XXX related due products. EBITDA primarily start million a increase the results $XXX with compared current negative recognition million the of was year. partially of to during timing to quarter, and This with due increased higher period second same the period. gains segment I'll to million, inventory NGL this rates, Adjusted for

We offsetting two $XXX expect timing this for to quarters. the EBITDA quarter been gains over the next matter million. around fully realize adjusted the for have second hedging, would non-cash Adjusting

barrels a into million owned due region, XXX,XXX our compared Average system. our on as to day, volumes per higher to pipeline the XXX,XXX and X.X NGL day million that to fractionated per volumes per the second the of for for NGL to barrels XXXX. pipelines our and deliver record transportation last day increased joint period the as pipelines East a day, from This per on XX% wholly venture record barrels on primarily X% was Mariner year. compared Netherland Permian increase volumes X.X well barrels quarter terminal, same increased

record. was million new per monthly barrels For a which the of averaged throughput X April, month over day,

the second terminals. XXXX. second grew our Hook Netherland effect This exports NGL driven satellites record of of going of out XXXX, quarter volumes of and tranche over by export contract by X Marcus NGL XX% on both the was into driven July primarily

as well Year-to-date, million volumes barrels than loaded we Netherland. of have Hook. of total. liquids. of XX gas ethane exporting are Marcus In ethane more for demand And out international As record we natural also increased out of

export maintain than NGL NGLs as any of We well continue nearly of other more approximately to market XX% and exports. XX% company U.S. as exports share worldwide

strong million For the second as was throughput growth volume midstream, EBITDA XXXX. than majority offset more was regions. $XXX to the of of of saw $XXX for our adjusted result in record million, increased million significantly gas compared per a the operating quarter lower We The growth as year. XX.X per natural well increased period Gathered To MMBtus same day natural XX.X MMBtus compared liquids prices, to for last by X% volumes gas as million expenses. gas and operating day

acquisition same transportation acquisition compared EBITDA a our segment, bridge the May $XXX of May volumes crude assets day of year. of as throughput on record oil pipeline the the systems, Texas barrels million adjusted the volumes our Gulf a barrels as pipeline, at this in oil for were This per assets million $XXX higher last due This pipeline, day, X.X and was to this volumes well year. the to of Bakken million, primarily period in year. the same Lotus Permian terminals, higher several million as was of was compared Bayou per X.X period well as and For to the result year. our last Lotus our the increased Crude of on pipelines Coast for

excess volumes planned, that synergies year, interstate compared compared crude last to commercial approximately to assets assets, going same a the adjusted second million, forecast. our $XXX additional of the Lotus still was record. of the Excluding $XXX our period million quarter of for up discover XXXX. Lotus to are EBITDA segment, was XX% also original Integration In the which as were and oil in continue is we

of to and placing placed December XXXX. well of as in This due as XX% Gulf pipeline same higher several increased the last being many on service, including as venture Transwestern, utilization owned pipelines, pipeline rates and wholly contracted Trunkline. period our interstate year Run over into higher Volumes and Run the of volumes pipelines, into primarily well increase Pebble to Tiger, due the service was our joint on as Gulf

our Intrastate was of $XXX takeaway, increased revenues as decreases gas Texas and segment, compared year. from as for Haynesville quarter operating from last contracts prices, expenses in increased to and lower For retain utilization opportunities, fewer to Benefits the demand lower natural million, optimization fuel in and EBITDA resulting on the offset in Shell. well $XXX higher rig due second EOIT Haynesville gas the new pipeline production our adjusted by were and and systems million

in the to In an our June we an received construction LNG of the of of DOE completion of for we'll XXXX, XXXX. project. for XXXX, and December facility for of from Lake And applied to commencement we Lake the the Now exports. of Charles May turning of DOEs extension to Charles our LNG with growth projects, the deadline extension FERC deadline start the

denied many in for request the you rehearing decision. extension, now As June, aware, DoE in and the denied this of our are year, our request April this this DOD of for of

have is best with for authorization. believe DOE new We application the file subsequent this DOE to we decision and to export a with an the path forward the had discussions

and this to this file this of development to application, other We existing to to intend and work review we of continue the the application stakeholders in during project. DOEs equity our customers, expect with progress August investors prospective

we three offtake HOAs aggregate term for million long to In from this per annum. metric project regard non-binding of into this in related July, an the entered X.X tons LNG

third HOA definitive execution million second tons is with X.X tons of HOAs X and agreements. for per is annum. HOA of for Japanese the GunVault metric A And tonnes to a The X HOAs subject One the and customer metric per yes annum. million with metric with are annum. Chesapeake EQT negotiation for per

customers. to growth this Netherland there turning terminals in products, demand. These our significant demand. term be benefit positioned We that both well from Marcus terminals. for LPG as we the as at and ethane international benefit from our FID Netherland export Now demand from remain in that quarter, bullish long to capacity U.S. continue well will expansion increased in export demand we Hook an order NGL Last to to to address as are and international

is per on based on upon be to service This which forward will up to expansion in give projected cost We based to add $X.XX barrels expected to this us of customer near is and project mid-XXXX, capacity. billion look products expect in in export the XXX,XXX specifics day various future. We more flexibility demand. approximately providing this load to expansion to

at Mont Belview, would capacity fractionation Marcus our we on capacity. first. per storage couple next which to around will We million that weeks, X put ethane X add refrigeration complete our At bring service terminal X.X to Hook pursue in the Mont continue full mechanically to be optimization expect of an also and frac day. project FID it total Belview the into This addition over barrels September would incremental

commitments we XXX day the in we are million from growth our plant our basin, million new XXXX. Delaware day foot existing foot eighth and in the placed placed And supported in our cubic into Wolf processing Bear which plant is XXX of plants the Grey into Delaware processing June, by December service service, plant cubic Out per customers. per basin. in These

and plant In processing evaluate of the addition, we potential continue Permian necessity timing Basin. the to another in adding

delivery export Haynesville gas with Gulf our Gulf the of LNG most the Coast, Gulf Run upstream network to of which between the Run pipeline, prolific from Gulf XXXX. we the as placed States many pipeline the well connecting gas-producing market service the for shale to in natural the markets some along United into Coast. regions as and Turning in natural December provides transportation

being X, We added through customer Run. X on continue into the And we additional to are delivered Zone of our second capacity significant commitments during which volume portion long-term Pipeline. utilize a Gulf Trunkline Zone quarter,

fully capacity very January term limited available are and in of have beginning subscribed near the XXXX. We

to Depending of approximately demand, capacity result, of a Bcf add have also another ability minimal X capital discussions to system compression, to are Bcf we require approximately investment. As will loop on we the capacity. X the which in via

we Point make project last North plants. of An for the in front, Louisiana for capture and sequestration Class our this our energy June storage treating that related is year. by a site X Point EPA Capture progress to was on continue application with to carbon permit Capture alternative the followed On with

Complex. Louisiana, Lake are Industrial its related we Magnolia of hub North Parish, Oxy the Charles with in Also working Allen to

working would obtain Louisiana to industrial together pipeline from in customers construct of project Parish, reaches Charles, the to FID, are Energy to a area. site If long-term customers this Louisiana. in connect commitments the sequestration COX We Lake Oxy COX Allen Transfer

third We to related have are the sites have of ammonia docks where discussions along access. Coast, facilities the to also at we parties Gulf with Deepwater continuing development with

the in for products midstream, NGL growth ended Transfer million XX, six spend and the organic compression Sun Now projects, our capital $XXX months Energy excluding June spent segments, looking USA primarily refined on interstate and CapEx. at and growth XXXX.

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

As includes a acquisition. expansion as projects outlook Nederland expenditures reminder, related the NGL to well the Lotus this as export capital at

of spend at cash XXXX amount that of and the are A, Haynesville. or growth capacity and significant to online our including Bear new processing flow this are year before returns, online treating expected the the plant capital in contributing A comprised very already attractive be Frac is projects of end

to number of other continue that projects to potential we Additionally, FID. a hope evaluate we growth to bring

$X run forward rate projects, we our billion. expect high-returning to growth As to we billion this potential capital approximately annual to long-term backlog now be look growth of $X

adjusted for EBITDA our Now guidance.

our to while slightly keeping the further billion be adjusted to we the tightens approximately $XX.X As midpoint expect we XXXX into the $XX.X which our now year, billion, get range same. EBITDA

forward and for current assume our spreads, and prices from As a spreads same the that experienced curve reminder, in not the pricing guidance we commodity benefits does with upside XXXX.

new providing continues for and perform future strategically about meet products, assets to growth demonstrates growing our environment. all stable to strong business advantage generating the to take are which our worldwide flows, We base our volatile through demand. operate well, opportunities remain industry demand of this bullish of a positioned ability of and macro to volumes Our our the cash and

strategic that we existing projects optimization attractive expansion such, and base pursue our returns. and asset to generate continue As enhance

free growth rates Our And distribution to which balance maintaining we lower significant remains of cash for our financial while flow the committed targeted position we growth. strong. remain continue leverage and end our to target,

please the concludes our question. our Operator, open prepared first remarks. lineup This for

Operator

ahead. [Operator from Instructions] question Please from Our go Dounis comes Spiro first Citi.

Spiro Dounis

question, Lake quickly. first Guys, Charles there. maybe go to question just Two-part

mentioned heard have sure you any believe on working I approve point Tom, do one, with timing you the a the at make to on sense So non-FDA new I equity want authorization? project. I to DOE you correctly. And this investors

more Or potential just a identified actually yet? statement? You equity general that of counterparties was

Mackie McCrea

Mackie. Yes, this is

can't Yes, at we a up confidentiality and start, of have to significant the who we two minimum, reasons, add lot talk for as one a me a Tom say equity Let one the very offtake. is to that Maybe we amount about of for that our may can partners. equity it. partners as step well large

And make lot, Mason the his project. really quick all X a picking slowed developed a signed pretty pandemic. tonnes war Ukraine when We and I'll worked up We million job momentum, just or X hard We've the back million team this a up during good around this world, had on great comment. down did tremendous started. relationships. relationships

and lowering legs from project, over or of without expecting met A believe the lot last DOE folks those the cut months four it. by really surprise that under our whole us kind us the out three in of then even I've

of gearing. spent last deal weeks. the So time We've a the great with DOE read kind we over several of

to real We to next we're week them. going new that down meeting authorization export with this them. have down an we're get try path a And being go that by approved to work us important with exponentially they'll optimistic

FID. Tom diligently meantime, have as excited customers, work partners we And project, and we really as continuing to But with customers. be the as to work existing that with new team equity we we'll this said, of only part some in have are said, the in them believe towards I not but

Spiro Dounis

Great. That's helpful color, Matt.

in a thinking is TTM. going just bit but gears switch one to about here, Second

yet. basically, it I sort maybe haven't of to also it to two to And 'XX, you something dependent, quarters we for able to think ago, get sounded it guess be be looking announce in that in were like a I I was better. position hoping things seen later sounded think, but market

that timing? and How So just sort much new curious, about in maybe delayed where you process? thinking that are there? is announcement I'm of an

Mackie McCrea

a first. background give little I'll Yes,

earlier today. such a we're for gem about So ours. any especially that talking but partnership, Nederland is for

our in the at you of over look connected connectivity to refining all that capacity refineries, sits from South what at of are Texas. to If Nederland, in we actually XX% all area

feedstocks pipelines move petchem that the butane have four of facility. to volumes ethane, to We Belvieu ability natural Mont large can gasoline and propane, facility. that from We've with got the feed

over X be our our to -- And years would to finding or could be the mentioned, that or of then a lot just that components, very project export for good feedstocks couldn't downstream there's add to there's getting deliver some, I of be as the And belief a of excited. home project. as -- to issue we also XX gasoline well next propylene ethylene markets, petchem this as an by going more which ability for and you of feed

world-class facility, This an very unique is and a amount of have we interest. extreme

assembled significant talk takeaway actually portion very have able a equity one portion we'll with us. it. They in focused more and significant team a working appropriate time, a with also And interested be of the are who's We to of about at partner capacity. today, very ownership large

of yes, over a going logistically unique is do, what just But the like our has a like projects, only any crackers. It's world, advantages very to else because of it nothing not other cracker lot also can but it take what the with can in crack it and it time.

roadways. great down get Raj but some do a team is we FID, in others be have we that and project. the point we'll working And and it, about it going excited road, at very to we're So led to the by believe

Operator

from next Tonet go JPMorgan. comes from The Please question Jeremy ahead.

Jeremy Tonet

Hi, good afternoon.

towards foot now industry up the be with also but that the allocation over the consolidation seems balance, the capital growth you wondering the has topical pick larger seems in I has like it's distribution been leverage I be how At come done in of regards just time, there end now. right been something has tuck-in industry. bit, a a buybacks of And that there, M&A like point, And of might it ET focus capital comments to there same time. kind think, priorities. has want it to guess, at Just with, some this

just if on latest of So you could through walk us wondering capital allocation? thoughts kind the

Tom Long

Still question. Jeremy, Yes, Tom. is a this very good very,

always appreciate I it. So

we X.X the have pleased it kind kind down to focused of at know, into -- We're you As have obviously it. range our X very debt. very, of top on of the

sheet on about talked a So we'll lower continue to balance in past side, of like the the end it, side prepared we continue look at the of to moving focus But down debt on maybe projects moving of that we're towards remarks. we've here. going lot to that mentioned the the

got with of that of returns good a them. investment we've we've up we're the to lot coming lot about very about great team really expand excited know excited just opportunities a fantastic the I built. getting and we're And these really, that very, that's continue a footprint that on

see to going do that. you're So continue us to

growth But is piece the of the distribution it. other

on that very guidance of that. each we we goes feel on where quarter good X%, out X% to and quarter we've that Moving each is one, to to where put are as by

back to continuing as sheet So will toward The the investing screen. well right we're buybacks I to continue as in going growth the allocate say course, balance and on the that. still company But to radar on distribution focus unit our of the to we're now, that equities. to remain given

at. other the do optimistic I brought little M&A do we you a the bit in we're and that feel in something was very want remain of space, midstream good and item going that's still side go consolidation up it. But there, expand very, We see to on to you're ahead one that very and that like

as we make where one accretive. come that us along are see And got to we well projects all we've each the the always organic of these. with can them done, very today from growth as they've within can You that acquisitions

going piece time we're it, focused of that continue too. side and very of it to of allocate to So lot that stay on toward a

Jeremy Tonet

helpful. us recent That's through things have maybe synergy or how looking And acquisitions, curious you picking back walk even expectations capture, it. Got of could Enable, at if time? stands of at materialized. that, the Just up be where versus that it some with Lotus it now kind

Tom Long

don't -- about why cost on will to Mackie of Okay. Listen, a start with me bit, talk a the that especially you side. great then And got little there. he's things lot let

really both with look if that we'll exceed ever one at So those, That continues on to anything just we Enable you one. of the start and expected that.

you on synergies, we and to there SX lot forecast a now as or even lot if we're there, -- that of will again, but once So significantly are XX% good higher on expand probably the a what go some were was anticipating. But And back seeing that to we're And day had the what Lotus. of we I'll than Mackie we that look cost of continue through synergies you that. was commercial XX% at that. higher, bit in a little comment work every a was

on cost were still one opportunities that. savings have every seeing new. same acquisitions, we're these and that that what Obviously one, did lot deleveraging. what at transacting on work as They're a of on accretive, likewise, They one for but they're of on likewise, bit just also. still in the we're Enable transacting anticipating But staying May, that to us. we And is we disciplined way with closed that achieved We the level at. we we're

I'll both side you on want And on the hand off to those. add anything Mackie, if of more commercial

Mackie McCrea

acquisitions on just little an team to incredible. job. Enable. Tom Okay. Hefty keep out a East We things. and beneficial. we're his of have hit We been Texas our Tom very talked able and have that Yes. Those of about just done finding a bit, Chris that were assets finding volumes move to down of are lot that Enable Louisiana things some unbelievable to

at and it WEX multiple it proven at or is is. a better. great Our what bought that out acquisition, it We it's multiple,

one. pleased that we're very with So

team excited And gets then it Lotus, week new. closed our gosh, about something we've crude just every in

add didn't some new move think routes, some more about. throughput we some to Some additions on can areas new we opportunities, that new blending

So a anticipated acquisitions that when more as great will just what off I up mentioned, paying than we them. lot we end purchased

Tom Long

the provide find strong the When these. like of And out just what just real Jeremy, talent can is tools you quick. to very them, to have each add we of more you very, it one truly do we internally, I'd amazing

Jeremy Tonet

Thank it, Got you. that’s helpful.

Operator

Please comes The Brian Reynolds next question ahead. UBS. go from from

Brian Reynolds

CapEx Hi, annual good start curious billion afternoon run everyone. growth capital I a to was billion. just if off on $X of could the you Maybe touch $X to long-term run little rate midstream-based Thanks. LNG, business could what like, projects opportunities these and that between carbon perhaps versus look on differentiating bit discussed, opportunities transport ammonia? more you perhaps some these CCUS of traditional low rate,

Mackie McCrea

in and forward a a about the we've Okay. that got again. It's we've are looking And as lot some moving that we're we things We're FID certainly works Mackie there's Yes, we've then of of lot at already on. on. already these talked opportunities chasing, some got renewable opportunities. other of

For example, CapturePoint.

a great talked about remarks, will but will be COX, in us we our us, upstream transportation. not and just opening with also it transporting, because on it sequestering As treating helps contracts for it project be the

committed benefits be capital at projects get a other we've pretty perspective, minimal think be we're to the But six period. lot a of that. that from that months that to already coming a will it So FID projects working that we're and to lot XX-month these and added looking contributors. the ones we of will compared will on then some other the also And over of to there's

Tom Long

what Mackie other But on likewise are time to spending some add these looking thing the international projects. know, to more or work this, at continue look various as like at has front I would you more downstream we and spend mentioned. of do time And projects we on in only the

Brian Reynolds

have the A up an Thanks. HOA signed LNG. in on previously E&P And ownership LNG were some follow in counterparties to of that during Lake equity facility. voiced Charles Great. maybe lot quarter notable interest

than of to have terms the I existing weeks. tight that given ET been tone kind Lake have any a the if change curious Charles for appetite structure DOE, incremental pace in HOAs past few of or given months just just perhaps just for time over few ago, and of line in signed ownership was the currently equity your fast perhaps own the that there's Thanks. capital in with view you So

Mackie McCrea

Yes, No, equity really mentioned this that. there. a really equity have Mackie. XX% changed. won't some There nothing has yes, are. the hasn't is kind potentially of there's changed We of target them, about I of but producers than ownership. talk expressed who are partners That around a We few without that interest. naming more

so range. And wide there's a

kind kind consummate XX% we we remaining bigger of As partners the to commitments, whatever commitments to that go some in project. we'll the of that of need attain equity then of

So our Lake has around changed Charles. as strategy nothing far as

Operator

comes Ann next Jean from from Bernstein. go question ahead. Salisbury The Please

Jean Ann Salisbury

Is exposure If have more works? your there's may how I any price If that simple gas back hedge color improve? to year, goes as as more you that on floors? Can had lower price think exposure give gas you next I in you price? will gas up midstream it segment than realized. if segment out

Tom Long

this want to in gas correct, make midstream. sensitivity we the is Ann, included the But Jean ethane that's especially The component Yes. add is natural that's prices, there. in there in there, sure the we Tom.

X%. even our in put those liquid we where that you into we looking prices materials We rolled to spreads kind the on reason the prices. that going with likewise side, XX% at has when that kind use at impact. And were, of start to sensitivities in related out, put kind you're X% seeing that's of So But to commodity that. in line X us really stay of of that

certain you to not get the based we able the kind a provide we you ethane really the ethane prices noting far do, of think But to with some just you to it's a worth whole contracts on extract. things. have are But goes downside make that processing and natural again, protection get also, that kind these when when gas prices. on the when the of decisions liquids floors do rejection prices, as all reject when once it's do I down upon level, we of as but that on

Jean Ann Salisbury

Got it.

the [ph] be the kind that of investors you've then on interest from latest on in any And up sea had MLPs sea? And the that up Okay. they'd can't just potential. interested if

Tom Long

that Yes. bet. on do it. continue to We No, and evaluate you spend time

or with We market it else. have views sure of we discussions anything thing that et time the really various cetera, banks, structuring this But to that the We a a do structured side we haven't studies is on it. advanced on get also. of Where type make to on all. want spent lot market win-win is a way the in for

we're to continuing look that. So at

so continue sense. So at of the on move radar makes forward, and screen, to speak, something it's clearly we're field, move the that going down to to kind time come out the right

Operator

ahead. Stanley from next Keith from Wolfe go The Please Research. question comes

Keith Stanley

compression you. needs Or move this more saying more Haynesville you that the needs talk Maybe forward what to are could the Gulf starting there customers on the guess, that timing And Run to recover? with takeaway? the project. as I needing as expansion project and thank time Hi, quickly? Can soon year? Are of

Mackie McCrea

get on Mackie. Gulf Run. No, is we FID expect this Yes, to the don't on expansion

job the remarks, said opening 'XX. in a our out of As has team Tom of by capacity done great the January selling

no, he the Zone out As sold Run. But of remain portion A we'll depends X on negotiations. of X.XX in some that on the Bcf Gulf LNG we're lot mentioned, of on on further the along that some even lot Florida. looking facilities to Coast, away at A to it commitments Gulf FID. far downstream as on will depend of we're markets as get

to to And lot of markets off get FGT. then down also, or either there's some off push on that even potentially a Trunkline producer

away way Gulf deal the of volume, discussions. a down and interest still course, move the of we're areas So Coast. remain other And Haynesville but great there's from to from that, to a growing more we'll

Keith Stanley

to Great. flows Okay. up I within run very but for company, And billion little follow obviously than the just question, what cash it's on to higher billion wanted $X you've the a manageable CapEx $X it's second spent. And long-term rate.

and year $X last year. billion billion did targeting You for $X this

So on the looking think, reflect potentially can little higher you're picture potentially going that some a and future? Tom, mentioned CapEx go projects? up give reflect I expect just you to thinking you -- about in you'd a And little? little Does that international, that does comments spending at how just a why big bigger more

Tom Long

some the And When a all on this. you and that mentioned, footprint I at international, downstream Energy really like specifically existing identified good bet. not really now, the we of then so that have at looking looking do you of start You projects here also petchem question Mackie the the start other very with projects say, that, within that. at size have, previously the when are Transfer look but scale with to continuing you all move we

a just the become, using we're running $XX a we've start upon This is year. that over billion size based that sheer number

lot kind of So so don't more at point, whole description the guiding on we have that have just the toward you a drawing really than all speak. various this projects other board, to

Mackie McCrea

that part not one both IRRs, of projects we're and that pretty many Let chasing we're I me good add, we're in chasing against going the And return. are disappointed really that $X everything thing if billion, that cases. is synergistic of pushing we the revenues, to not rates upstream be if downstream, could, has because are

from we or we're more that standpoint, if the push the team I'm to closer from at if disappointed greatest to So doesn't perspective, even $X going targeting. billion a commercial return our be --

Operator

Blum Michael from Wells comes ahead. Please question from next go Fargo. The

Michael Blum

to There's with spike afternoon ethane prices. recent definitely really been impacted. Thanks, issues about the processing in ask some facilities I wanted being good efficiencies fractionation and Yes, everyone.

should then, a impacted you were in could wonder South? of the benefited this we this by the any just on b, think that can facilities of And event QX? an we've if So a, as probably you from? just, heat Or extreme your seen drag be

Mackie McCrea

Mike, company is only there's that by lot this on zero the made had this we're of our U.S. in of taking -- it only really the controls one products. us. little a majority frac that aback because We're Yes, a the probably Mackie. noise impact around vast of the

cetera. That's, long expanding remain with capabilities, of export we why So everything. we're our et course,

good pretty a it. Actually, dug kind article. had into we But of RVM

You What little said. of We alluding some a what a RVM mentioned may combination to of it's believe that. bit lot of things. was you be a

You temperatures. pretty with excessive X% been heats impact. to production have that in struggles cryos seen I mean, -- heat, We've That's struggling heat. X%

of shortage on more, X% we've seen. that's or seen There's also Frac kind matter of little have kind of bit since a to tracked. really struggle a others not X% inventory what of

And some short. really were that out inventories the rumors got

that it's kind and Belvieu. start those were companies, takes of It so number to get to that rejecting. figuring to a Mont And a out but unlike some us, recovering lot a factors, time of way of

took that So few a days.

selling heard also because crackers that their so We were gotten out there actually ethane some have there were prices bad.

whatsoever it our run-up No a us customers. short-lived pretty in impact on So or ethane prices. was

just happened period different of so it a was a things of of And over a lot that of a kind short conglomeration time.

Michael Blum

balance ethane of volumes? that's to year. now. just the the It you Okay. for And and are generally wanted right end If you to exports. the those volumes speak your through what ethane half are seeing first very of about I expecting Good. you're No, and LPG helpful. year could like seems the in on then markets What both strong still ask LPG

Mackie McCrea

Yes. It's Mackie here.

As ethane there's the years. or that's going three online contract. we negotiations that, and on, at have over We're in next we probably potentially Of likely earlier we we we discussions four look today. future the in to XXX,XXX with will highly barrels talked XXX look demand the XXX this about at coming of

for a So demand there's huge ethane.

being of a knows, lot more. and another front, five about propane or completed -- there's total of There's XX a the another in China, probably already On as built. there's six everybody PDHs

propane So lot propane there's of demand of a built. lot being there and out a

Nederland. quickly bullish of as especially volumes increasing, why we can, on expanding very course, bullish, are as very we're that's at we So

volumes higher-priced stronger and We'll always to stay locally, than month have little what remain very to a we Because take a certainly market a next up we Marcus July. pullback how there, at are we location standpoint. margin take Hook. flows a saw lot optimistic. able of in already But barrels those seeing it the South, lot much here of the from We're of in

bullish or we So term. bullish not X, but next remain very the only quarter long

quarter even natural was we everything significant last were do liquids. There been. really we there've about world today. than in more oil on is gas the a consumed gosh, growth talking oil There for And ever

run the If So it's the oils anything, away happening. from slowdown increasing. oil and

we long-winded answer to very bullish. remain a was that So

Michael Blum

you. Thank Great.

Operator

next Mitra America. The from Bank Neel question from comes of

Neel Mitra

to Gulf some for way to expanded gaps you can get sets Charles can that question, with that decision? Lake other you words, very would projects have able obviously at Lake to assets manage were to be work? upstream you in looking still First the both if other from so facilities, down capable the an efficient Trunkline. In Are Run twin you and be of those expanding separately Charles pipelines those

Mackie McCrea

is Yes, again. this Mackie

through team expand our are. whatever looking there to much markets Our gas pipeline move and our is network network to as

So we it volume have sure with will for that simultaneously support gets FID. LNG the pipeline yes, and once making to

working for markets LNG only on is Coast, everywhere, gas. anybody other and We delivering also other teams Gulf not the daily to facilities but looking in have to where

So Run, assets other yes, demands any the end to we to that contracting. that we'll continue are to chase markets meet Gulf expand up look out and Truckline, there

Neel Mitra

that commodities? for And you was exceed around if then want the temporarily look of preference at go M&A? you times be your that would leverage you a be profile? commentary that Any to little above on asset M&A, specific versus the would just then packages corporate something was Or to that your beginning? have Would look governor the how you very specific? And more bit Great. can wouldn't you for kind there X.X Do from follow-up, a attractive?

Tom Long

how the evaluate current asset transactions, of it the Yes. it when on whether we connectivity an to our be whether at them, side on acquisition, company be look or is various we either Listen, assets. one always these

some And the gas add. with commodities, at the maybe oil, being the product way crude we through and evaluate here when be natural all the gas, and we further liquids we've this commercial a facilities. looking to But export more built of downstream value footprint that bit we we have you the natural always wellhead the franchise so take little start get from across all you can how able can synergies see connectivity it And it, could of lot with have. that as to moving a

in. going we're to continue to look that to as at basis the So on them value comes where

go second of of just gave which you that let's really the the my piece that And accretion part metrics, first the question, is part, piece it. So too, which that the to relates is to get is on answer I on be that's these accretion connectivity all of and to able with how downstream. with because it. of the able lot the a the in And to go way we're of do and product able to we're what the the

we commercial of evaluate walk will and kind careful. how various them, these we look We're at. when we but a to lot is at able that team great disciplined in through so we're synergies, And these extract have a

accretion that component, equity But piece you'll basis, of cash we just a use. the the the things of is is see, we will besides That's DCF leverage. transactions the and what unit as with these other evaluate always other to to it. combination And doing, per the we're

got leverage here. have through go don't integration extract And most of be we importantly, to with intention the team standpoint. walk great able a from able we acquisitions. that's value work got think our to and So But in to currency above the back great we've a a we've of we going as

Neel Mitra

great. much. you very Okay, Thank

Operator

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

Mackie McCrea

out. of real kind about, a And is sitting We Mackie made and the great the and Tom for business, base they this a we quarter. room. mentioned our This we're Bill was quick think this We the Tom closes believe running very But every this, preparation record we everybody far, in is Berg team have I knows points that meeting some best -- best earlier. strong any this. States believe. and of several with I segments thinking volumes are lot have in team base in by with midstream United of before them

of having, and the Lotus really at great then, we kind kicking the around We're end and with just building once with of brought we've last We've M&A. going efforts on. that year. again projects of Run course, in, delivering got And frac Chris We're on Gulf Hefty's on we're got the Bear. Wolf then Gray

That, combined cash well positioned M&A strong for our with stability, we disciplined are flow growth. strategy, incredibly

industry. very future really we if in have assets we can't partnership So voices, tell our for we our sit, what excited the throughout the holds where about our the and it you that are country and for

voices. in you tell excited, pretty we're if can't So our

Tom Long

it. No, wrap, I think that's you. a Appreciate Thank Mackie.

Operator

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

You may now disconnect.

Energy Transfer (ET) 2 Aug 232023 Q2 Earnings call transcript