SMLP - Earnings call transcript Q2 2019 | Summit Midstream Partners, LP

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Operator

Good morning and welcome to the Second Quarter 2019 Summit Midstream Partners, LP, Earnings Conference Call. My name is Brandon. I'll be your operator for today. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. this being note Please Instructions] conference recorded. is [Operator

it Blake Motley. I will to turn now And over

You sir. may begin

Blake Motley

Thanks, operator, and good morning, everyone.

If earlier visit a that where section. you copy of the or on it our have don't the news earnings you'll home find was this website our issued please morning, at summitmidstream.com in already page release

Chief Interim XXXX Financial management Marc results is operating me to today and Officer; other with discuss With along team. Executive Mallett, Officer, our President our members financial Stratton, senior Chief second our quarter of our and Leonard of

remind Before and and that include, we start, future capital other also include expenditures. estimates strategy, of anticipated I'd like looking for operations. our statements to discussion to forward may They flow, may may statements. the limited These liquidity, concerning business you contain plans statements future expenses, today operating cash objectives not are and but our volumes,

of the provide we that expectations on can annual Form we reflected that forward report will are see reasonable, such in prove our correct. to no XXXX Although Please believe be looking assurance expectations such statements which that results filed from XX-K, results. on as listing our cause the February could other was SEC SEC to a for differ as XXXX, actual filings XX, with materially well expected factors

note comparable directly recent non-cash measures, most and financial in that use the provided distributable are These to release. terms measures call, the earnings also on Please we'll our and we this flow. EBITDA, adjusted cash EBITDA, gap reconciliations most have

call And with Leonard I'll over Mallett. to the turn that,

Leonard Mallett

we a a the today's to had second during the earnings would I for quarter an short call. you've performance our time joining hope perspective begin Thanks, us issued Blake. ago. release business on XXXX Thanks review with Good opportunity news quarter. to call on second morning, We everyone. like Summit's

million. totaled adjusted EBITDA cash and quarter $XX.X for totaled the million flow $XX.X distributable Our

downtime by in prior were our Marc detail performance. reported But XX Stratton plant to quarterly impacted new online June. the the and first our of a approximately feet came Midstream with our cubic basin, in which DJ level Tioga quarter weeks relative commissioning periods, system will associated of review in processing million day sale results segment two

second headwinds, approximately have would we $X approximately estimate million or Normalizing EBITDA that $XX.X our for quarter higher adjusted these been million.

Second August distribution will on which be X.X strong coverage quarterly of of was XXth holders Xth. quarter $X.XXX August to at on our unit, as times. of unit paid record distribution per Based

XXXX We XXXX with expand coverage growth course expect continue adjusted approximately X the times. over EBITDA fourth to coverage significantly quarter distribution to line of with of in

it hand quarter Before in details review I the highlight Summit over are catalysts milestones some key second results, to Marc like to of that to and to story. financial our I'd the

drawing in new day and provides much plant board. First, paves cubic feet production rapidly growing in XX is commissioned the rural day on XX feet part million also cubic facility our June, a this processing namely expansions, a new a our in plant, needed for DJ the capacity second a processing Basin. northern County. way the It triples This for successfully we Weld million of subsequent the basin which outlet in

well we However, our a this will plant's new for running day appropriate attractive construction of we the proceed XX generating support. we closely have and our only is with for timing and million Meanwhile, to plant continue NGL plant, construction recoveries feet is evaluate the customers. level when of customer the cubic

over the an more the our expect represents averaging balance currently year. increase million a continued than XX DJ from which XX% volume feet are of second quarter day, we than of volumes, more We cubic and growth

per plant we'll third begin of that recognizing in XXXX. the active triggers the a quarter contractual the payment commissioning month $XXX,XXX Importantly, demand

revenues higher associated complements And this additional with growth. volume

continue we directly experience segment, margin Second, throughput to to system. pad volumes connected from shift our sites SMU toward Utica in that the a Shale high originate mix in

quarter, our an These pad in additional will quarter expected returned in XXXX, growth system. two and in in the wells four volumes of new with our will adjusted our late fact, anchor the second In drive wells customer segment second fourth behind together half the XXXX, in facilitate this of activity wells, EBITDA line higher Utica. the SMU

assets activity than for higher results behind EBITDA increased was our adjusted Segment our gathering reflecting first Utica quarter X.X% our system. shale

remainder the We trend of the to expect this continue through year.

our quarter currently and expect fourth upstream rig of operating customer gathering another SMU a one we system on the are customers of system, the XXXX. Our in mobilize rig separate to

first in scheduled first half major wells a which half two excited that will XXXX. we feet be wells to five Shale of customer the wells existing These average a represent the cubic will an to is our million of catalyst results drill close production on for XXXX. these from SMU five wells XX And segment. day, than holds the more in just located This proximity growth site, pad site Utica see to a pad

the Double Mobil the And on partner and contiguous final a acreage Basin. investment new E as on the we the that JV project, alliance largest strategic with Delaware our in partner, project. project the who we northern the holder this June excited announced have Pipeline about and decision in We're XXth, is marquee secured Exxon

profile project. a anchor a partners the for has highly per capacity. of Double XTO shipper, XX-year day with different Bcf recap initial the including commitments of a on number economic our substantial majority attractive quick Energy volume X.X a throughput take-or-pay pipelines shippers, First, from E

$XXX include will the in Double XXXX. Concurrent Summit's XXXX project and of adjustment the capacity the years a revolving credit than construction approximately facility XX% the occur and amended with provide of E, its project. FID, during additional Summit XX% million, to project will more material CapEx that share EBITDA expected of which borrowing the for customary CapEx for totals

to project of and July. that it are we Exxon The that team as of Summit X(c) we will have both has filed end with the of comprised application pleased a team from to the FERC on relates Second, progress. be making details project, our section am I focused at share the dedicated talent execution.

at attractive We end for will taking rates will that first by pipe Construction the third upon approval, XXXX. steel the of pipe in secured occur to the receipt expect of which receipt begin commence of half and of of production FERC quarter XXXX.

to the such we diligently as In on engineering. away and interim, design, areas continue work acquisition, right

XX We approvals. months. XXXX expect timely the and we XX in-service that roughly of inch approximately quarter construction assuming pipeline take miles will XXX a required of estimate third And regulatory date, XX of receipt inch

E wellhead integrated and part of scale, core in focused operations the becoming downstream that critical areas. our I Double of our for achieving add more want represents a to our diversifying strategy

the and Our thorough confidence in and diligent overall. partnership counterparty a Summit project with Exxon, represents of validation a in and sign strong

hand comments. a CFO, Marc it to review few now we'll over Stratton our up to with and closing I'll quarterly our results, wrap then

Marc Stratton

by and I'll begin through that our Leonard, everyone. good segments morning, Thanks, comprise areas. focus walking core the

Starting mix. new of a was first with our in wells Utica result the segment system Utica first volume in quarter day the Shale up a SMU XXX segment. quarter XXXX, $X.X and cubic Midstream The feet or X.X% adjusted a four second quarter averaged million favorable which million, of as XXXX and from of the totaled Summit EBITDA

a represents cubic included cubic This day compared system quarterly XXX a to quarter in earn in we SMU feet pad the times highlight are on the that volumes that volume million a volumes, Connector. of than Second the sites consecutive fee volumes pad XXX that is from is in first the important day directly three million to and quarter. increase feet volumes behind to gathering second TPL-X level an higher these originating our trend fee generating approximately connected

anchor pad a sites system current end the second are directly customer rates averaging excess feet day. from a XXX new at wells Our of million connected four to connected and flow currently in quarter, as cubic of result, the the

million XX We during off and also estimate of with production. completion pad quarter day existing on volume a the sites line that with cubic drilling feet there ongoing associated activity was

steady the we be the segment and a what the higher XXXX activity in drilling we half EBITDA year. of will level system, the half of generated of have first for than second on expect the annualized adjusted We

volume a the feet of Turning to quarter the million relatively with flat throughput XXX of first averaged XXXX. Gross Ohio was XXXX, Gathering our which cubic segment. quarter day, in second

to the of half window. second in continued in and of activity XX steady total the quarter, level occurring line the of drilling completion most Condensate a segment in first new in We bringing to year for see this with activity this wells the turn XX with wells the

XXX sequential DUCs, second customers completions to during year. gas continued wet prolific which activity excess more have half XX July, ramp been recently we will generate Volumes in million in of with the cubic the an quarterly completion have expect a seen inventory in trending additional growth and we of and feet Our more window, the day of pronounced have expected. wells

quarter $X our of was results. first to the as result segment EBITDA quarter a first Tioga XXXX, of In primarily of lower which in the adjusted XXXX our Williston Midstream, segment, approximately divestiture by million second $XXX,XXX contributed quarter compared

million our financial results As a point to of the quarter second Tioga reference XXXX. of contributed $X.X in

operational but largely Our Bison from third Midstream on for the system now These issues first Bison July, our maintenance issues in party resolved. located continued downtime on the of quarter of three been have stemming system infrastructure Bison system. due of the downstream operational weeks to experienced two weeks they

down XX natural day, XXXX first that together for the liquids with sale barrels Tioga, quarter approximate XXXX. Second related a accounted XXXX, new volume were in which a wells the a quarter commissioned barrels of half day due of of to the averaged volumes primarily third second to of the declines from decline volume XX,XXX approximately

were in end wells quarter, XXX,XXX last of weeks of the barrels the day for quarter, the XX including the at June. which in volumes a that new second resulted XX connected two of occurred average excess in

the a basis. XX Williams July We're well XXXX, segment XXXX hour for the in per our the over that of by for customer in northern than IP wells connects six half a in second outlook on on that County expectation were Williston approximately based XX the day year, encouraged including by averaged completed BOE balance new the of more

well majority gather in the are second The from of customers and who XXXX of connections crude water. produce half both

outlook So about volume good here. our we out feel really

two million of end of XX segment DJ this at $X.X quarter estimate downtime totaled the despite of compared our weeks of the facilitate adjusted first impacted downtime X.X% the the increase day to to a $XXX,XXX. quarter the XXXX, by XXXX, million in We Basin second results the plant. a commissioning approximately EBITDA DJ that quarter new of segment

monthly of half the a with than DJ are currently we XX year of of together the connections to volume than $XXX,XXX well XXXX. segment, million reported triggered ramp expect triple the that approximately excited XX day were processing of to $X.X more and of that underway million adjusted that annualized of a the feet is on plant DJ for the of result based expected the we new in are currently second second We combination EBITDA in about startup, for and we in all more as the XXXX cubic demand roughly payments EBITDA adjusted segment segment Basin half be

in XX.X% facilitated 'XX, up quarter our day volumes a first end Lastly, volume averaged gathering the million source 'XX. which second of for feet in throughput XX a system. second and of cubic the of the compressor commissioned station quarter Basin from a the at new processing the We new Permian of quarter

some corner generated of in new month related a new as EBITDA in we the the the turned establishing positive fits the year of and of basin. and first a geographic in think, to half the we Importantly, it starts to footprint relates June, experienced operating we've

quarter expect plant XXXX, wells new fourth to increases. of process recoveries turned line in the in we and continued XX be efficiencies as expect and and in We operating improvement utilization the

to million back continued DJ second of Permian total the of and from related million, SMLP related expansion expenditures quarter million activities. operating XXXX, $X.X the net in to million Capital E the XXXX turning income for development to including the net and Double partnership. activities our cash $XX.X Basin, our Now, $XX.X of $X.X quarter reported Basin second primarily activities. and were

of $XXX,XXX E Going partnership. cash forward, include a capital as account of continue quarter an method equity represent source total Piceance, to the for the note, we and Double legacy and valuable only the areas, Marcellus for Barnett, Of our included flow for expenditures Shale will which free investment. segments,

end a of million available $XXX $X.XX revolving XXXX, subject was made billion under to In had quarter on April million million and XX, at times. credit facility to XXXX, a June at maximum X.X capacity compared times we We $XXX limitations. covenant the $XXX outstanding DPPO. our leverage limit the X.XX borrowing Total prepayment financial of

our our you our balance sheet Double million Permian with we debt recently to DJ I'll $XXX the in date. on segment, associated that and remind have commissioned over plant, of investment E

EBITDA, these of by is yet have higher three a which rates our None run ratio off any normalized skewing quarters investments thrown term. reported approximately of than leverage

XXXX of expect our DJ growth the We day and an leverage end the the XX by a XXXX, half slowing CapEx. in particularly the due our second optimization EBITDA to to recent together startup of combination plant naturally from of of of a million Permian with assets decline

expect leverage around about extent in of potential this assets, end later We sales we accelerate the by sell deleveraging. X.X speak but non-core our call, to times to will Leonard be the asset will XXXX. the obviously

the we million volume delay primarily of low previously financial to assumed our volume in our respect DJ XXXX behind in be a systems. to the million guidance, Permian to $XXX expect and growth EBITDA than adjusted growth year at due SMU slower $XXX our and range, end full With to

total that XXXX continue full and $XXX year X.XX to to asset and we will X.XX absent times. coverage of We $XXX any distribution to expect E continue sales, even times Double recent expect between of average with million project the CapEx FID million our

the back I'll Now Leonard. turn call to over

Leonard Mallett

Marc. Thanks

outlook the by encouraged that we our are are behind the We in ramp flow and assets. the for witnessing business, cash

we include continue streamlining take evaluating portfolio. These strengthen a of growth, EBITDA our as means asset steps sales to balance our addition steps non-core In to to sheet.

focus and to control. focus a Redeploying capital high from cost maintaining laser allocation core and capital legacy on growth areas areas,

end we year. having the share to I active a I to the discussions about in that on possible multiple detail asset expect in divestiture can't transactions, program, of Given are but speak be more the position before

our to any our that strengthening potential streamlining like in portfolio, be and areas, our would sheet. core capital I deployment focusing grounded focus objectives, transaction will including Summit's balance underscore in

previously likely areas, represent for the legacy as discussed, divestiture. most Our candidates

flow As $XX of certainly level upstream in of are quarter million than in Marc XXXX cash free alluded, second is there generated more and healthy And assets. these business of units activity the valuable regions. these a

our provide of with cubic additional three These averaging anchor million day outperforming are for drilling second commissioned each which strong or and are weeks DFW the year on new our ramping feet will incentive Barnett and which added the just the example, For momentum two provide than significantly more half system wells, accelerate a ago, customer should expectations. wells segment still into Midstream XX customers to activity. up

areas, On of presence budget growth XX% on capital allocation, are and we than are our focused to these we accretive more XXXX CapEx within our segments. core expand our focused dedicating in

In than of identified we and of reoccurring integrity assets, be of eliminated year safety million review of of the we customer level expenses, our internal an or recently will more impacting without that per conducted $X our our have operations, service. addition, the expenses

second accelerate these We have quarter, benefit in see measures of to results to the these with even second year. more of an in expect next we of half impact the and see begun the XXXX

announce are and release the September Summit's skills us Summit has CEO him a that veteran, from that and to knowledge, be joins morning. pleased its leadership depth where Officer. recently Heath he regard Partners, welcome terrific press effective new Heath Deneke, an family. this to of and most president served to Finally, earlier been Equity in He role, experience, industry We XXth. we the we Crestwood selected industry brings to Chief as issued Operating

transition. We have will smooth a

under We our leadership. are about definitely Heath's excited future

for both over To and in long up, we second of the the our have confidence in term. the deal business a outlook wrap great half

by of together term DJ near ramp rate of over focus related Double each facility, E run ongoing flows the and our in the our into complemented ramp activity sight an be based volumes, our on excellent term cash with cash of have line will core areas, completion flow We to venture. which take-or-pay long

unit value holders. thankful long and for support term appreciate our are We for the create opportunity to your

questions. And now, let's call open the for

Operator

Instructions] go Capital Scotto. we Please Elvira And ahead. [Operator have RBC from Markets,

Elvira Scotto

a about on Can your more little you comment guidance. bit

moderated to those at Utica a pretty now in you sounded of EBITDA expect positive Basin although You of your Permian range volume Shale ran guidance segments. more your be the due you segments, through ramp to and end low when growth

that So all lot all in in you XXXX given you releases level for color to producer would that rig, comfort recently? commentary guess be is the helpful. that guidance know have regions? activity throughout then if example, And a just your year, there's Is bigger changes I would on a can across a based the assume producer any be about XXXX? guidance, talk there, XXXX the recent producer correct impact this a had you've discussions versus but in I if it

Leonard Mallett

We question. the get the gist of

work evaluation And and second reasons what half. lot into obviously, the half yes, of guidance, for first our and So, the has soft of a start of with quarter. we'll the gone there, our kind the occurred

As were associated now, mentioned with the which start. in relative significant the volumes, and up soft DJ Permian headwinds on, issues getting there plant are ramp the to

And as this, the do was ramped we get comprised I'll elaborate original volumes we we at look we quarter, and year, somewhat are half look outlined, at forecast. as what on Marc from the and in frankly, the is, to tapered of have the they the but that that second second

but second half So we we for still of did have outlook taper to very year. have the positive somewhat, those a the

Marc Stratton

Marc. is This

seeing come inventory their volatile of outlook our Obviously, to at strong. rigs and our But I'll behind hit You somewhat to the customers six price got over reiterate, working term subtle today that long plans. are be on DUCs We've online. are just and some continues available XXX system head. moment, the some make to we the development commodity nail the backdrop is changes

our change some full accommodate range we guidance wide customer to So it's enough in set to important year understand that, plans.

our we've slower second first in later at little DJ what than fact expected quarter, given suggest bit year, trend the lower half the balance lens, and the looking the development, think a range their the our guidance Leonard more But the through we growth And that plant customers Permian our the some to of system, came certainly more sizable won't mentioned, pace of with not a a is of year to and and of relative temperate a half. we end as experienced we'll in first on in downtime towards the this of the conservative fact the that assets, behind development at our pace just DJ Bison XXXX. for given that are see

We will.

We visible actually in growth of see second the compelling the half year.

out the Just point and in wells a really second in few OGC our flowing levels SMU both segments, we what some currently higher we're completing. and segments saw we're are benefiting from at that new the Utica, quarter, than to recently

XX In visibility encouraged coupled the commissioning fees give in wells We're and a the growth XX we the sizable cubic from in million another DJ, the the clearly over half us of already half. demand you second plant, feet on really how here with second heard processing good year day, the we volumes, which, accelerate to are. expect of cash flow

plant. quarter. the XX fourth currently is new for half XX Williston, really at new the wells point excess of operate of looking we the And XX which the to in Permian, day, And the year. second a wells volume complement flowing that which million over existing efficiently we're processing can then in a In the in in

wells three, very with then has system. commissioned recently good to had non-core respect our legacy here the so fairly in assets, the Barnett seen that large And quarter, some say behind I'd second activity

system and just new September, I on the I'll fourth five the complete got today in a eight so think then Mountaineer wells coming rig on the new that quarter, summarize. will We've behind system Bison in wells

lens, are conservative the half. looking half the more year the of We through and feeling about at we're second confident in of growth profile a our second

Elvira Scotto

businesses? your Gas. How growing can SMU time? talk mean, high Northeast see maybe And that at and then sentiment especially around Ohio over just those do I Gathering a level, given negative about this you you businesses

Marc Stratton

across and in behind we turned system, on rig customer, line, exposure out which interest wells two the have condensate do have in mean, on We SMU. to really windows of we date about OGC currently in separate dry quarter in, We gas this dry, in system. for equity bring wet year. expectation look, at we system system quarter. to eight another our the the that that expect seen SMU fourth behind and We've rig three have all then our fourth gas an a SMU an in system have dry customer wells I and on play, here another our another

drill And they the they pretty are that the half first second results commissions from and of in expecting some stellar wells here five to expect half about in XXXX.

seeing what a about they production excited look, So, we're that. they're standpoint, receive to are excited from and

Leonard Mallett

I'll add, high throughput volumes. additionally, are seeing mix toward a we margin

pad we that -- So the sites are connected directly origin are the at well, to us.

so for a And us have margin, is certainly well. which as positive volumes lead higher

Elvira Scotto

was just the formula. curious Summit the, the So a assets, times at fixed initially drop When then multiple on on final based down. the X.X acquired

So since where you of the that performance payment, you given DPPO assets, ultimately shakes think do the multiple fixed out? the

Marc Stratton

the that's comment in point And important go calculation I'm available what not some quarter. Elvira what X.X Obviously part at that's the will in fixed forward future. or we the our standpoint, not from that multiple the obligation, X.X to at of prepared currently. I have be first Yes, on DPPO that a and

Operator

go From SunTrust, we ahead. Tristan have Please Richardson.

Tristan Richardson

streamlining the particularly the update you be of delevering the something on as things the side. that transformational a seems could could on portfolio? this characterize appreciate some Would more priorities, leverage you program that strategic from year. perspective It as percolating of a though your divestiture materialize or modest We have

Leonard Mallett

Yes.

discussions flows. though, end have on really year. of divestiture. I'm take consideration the several asset that will is regarding to you parties again, And it leverage. in on And And effect sorry, in goal it, our an accomplish cash involved EBITDA, on the have comment to actively So, with by to

end And our to the be ramp that how the depends our really which year. cash is leverage after X.X it expect then we move. by on and assets of so, And

Tristan Richardson

DJ And you're then thing, commentary bit, thinking plant, just keeps XXXX what about timeframe a in about seems the bit up things seems project a more a of what this little may like Talk it little the air. there? this on event, keeps second type have shifted sort and

Leonard Mallett

comments, in environment DJ, the a mentioned, are wells talked in we about environment. we there. another XX Marc's So And that or dynamic turbulent out also

let so what elaborate in and staying engineering and Chief I'll And doing on on what we're the our Officer, But we're permitted actually doing, at the this. in doing Brad, meantime, is Commercial contact the are project. with the We've our customers, project we plant.

pull so we are when able comfortable trigger. ready, customers And be feel the we'll that the to

Brad Graves

add is the first Hereford. to Leonard, would have the the quarter we've we third most is plant recent commissioned Yes. quarter thing the full that that a one I will first, be of that, quarter this that at

the we'll front we're producers, timing plant. the looks and what optimize So in of going like. the We'll to stay that of second see

Tristan Richardson

preview Marc, just then might for leadership? and of Summit just in Can mouth. putting how might change give the the at risk new the me. with a a LP And tack us leadership's last the or strategy you differ Leonard different of of one words

Leonard Mallett

Yes.

a years I few say a experience, in So, lot like and A the Crestwood ago. same that we of looks can like basin, Crestwood the when Summit a a already background, and looks lot did I and lot you experience, Heath's you do. Summit of mean relevant know if relevant, read same lot Heath. thing

core while we and in enhance our the does So core still change, streamlining is those areas. portfolio going our and capital mean, are about strategy focus in core discipline, growth advance come to strategies. not I Heath

resource knowledge in our he'll, experience and for is sure an I'm His he so is added And basin definitely tremendous. just Summit.

Operator

[Operator One Capital from have go ahead. Please we Securities, Instructions] And May. Kyle

Kyle May

steps process On FERC. Have project project, approval the filed X(c) on application you factored any the the other the schedule? or heard We've some the keep that has become mentioned, been your you has lately. from in taken Double companies that slower timeline E to with FERC

Leonard Mallett

Yes.

been So, that. we've very about strategic

so having filing, so no before even been FERC that months us So meetings work about BLM, we've the filing. our there're and we've FERC monthly filling with and helped -- talking been monthly the for they received FERC, meetings on with they surprises, now, when

that's expedite that documents and experienced and to we that. the what they've some together, a again working So with people XX-month have us us that we helps well. anticipate as tremendously put Also, communicated help these FERC, process

Kyle May

as got getting we're several of $XX XXXX, is closer a the to like bit ballpark million And ticket going spend items. in you've Double to Looks little big $XX to E. for Summit million

You've the your give CapEx. maintenance to plus DPPO fund and other any payment growth $XXX thinking year? got you also million us Can how latest next around you're going

Marc Stratton

is what has Nothing changed plans. Sure. Kyle, said this regarding Marc. financing before respect to our with we've

obligations. CapEx. I obviously, to is of make finance to sheet these obligations both plan mean, use our increase our So to these corporate capacity EBITDA financing to our to we expect balance decisions expect our we'll on XXXX as with then leverage from accommodate and ratio a under combination debt equity, and and our down increasing into comes slowing we debt, the revolver borrowing well fund revolver and

prepared some in higher of E, EBITDA. which our Double my is leverage system, mentioned quarters of remarks, skewed have DJ I X.XX all towards the to new currently recently, yet any throw of as Permian plant, investments times. namely term. a It's three and the made up ratio off But that our Due tune we've to to

And occur. so to as some expect deleveraging ramp we'd those natural up,

some the our of as always DPPO. our as for business. way bring portion And asset to backfill evaluating equity forward times, equity, move have we've With to equity equity ability respect needs sales non-core on then to we issuing we a to the continue into by of process the mentioned many

that DPPO with when to respect payment. make also latitude we some Remember do we have that

begin to Just that take time and options in you, making March throughout throughout capacity XXXX, we extend have to remind but that we borrowing higher of XXXX advantage payment do can payment of that period.

an With Double interest respect to to by option they They secured currently JV this a to interest a in have have Exxon obviously, Mobil Double project. E, in partner great XX% that we've develop increase E, and prior release, to on mentioned enhance prior XX% this our in we finance E of find a banker in ability to future. sheet. FID Double our the we E, worked press to ways with balance Double But to

accomplished the alternative very strategy the efficient metrics of I've around discussions just asset to increased financing, having level We potentially performance term incurring a agreeing that, be us. longer And our period. think non-recourse a competitive this mentioned, we're could and with outside also related which construction provide flexibility financial we during to of banks for

Operator

James And from have the we ahead. go Please Advisors, Carreker. U.S. Capital

James Carreker

question. on, the I something that has DPPO. guess it is I the you being how I stock the to one given consider, today? the seriously that talked guess then kind guess, yield issue mean, you sits on stock of would for I the about and performed as Thanks for Yes. question equity able

Marc Stratton

absolutely that front balancing a Yes. to we is ratio is I James, much when equity Marc. mean, much with act leverage consideration how determine this center obviously that Obviously will appropriate we will and mix. the our take need it consideration It's into be something we and how consider. debt.

XXXX, all agreement potential that to of options will also mentioned, be movement this forward perspective. advantage But the the sale that then our and on you, consider, already able we I is of revolver. some higher I'll And some asset a an have payment we throughout tell to borrowing predicated under defer will take from consider as equity, embedded to we within of the success

color event. of lot really of a that so that behavior our will And downstream

James Carreker

near you dividend And allocation dividend, was only to months but six the from sense reduced capital policy it that standpoint, guess a I it in know make ago does that term? does reevaluate it then I

Marc Stratton

enough, mentioned, which we was announced two last to in ability coverage, back gave in that Yes, asset to distribution the distribution quarters really gave this year that sales, also which times and us for coverage. we're meaningful doing. reduction we've February the ability of evaluate we've excess as improve it the think And us our X.X the we reported distribution

further capital enough. was was no, position enough we to are so thinking meaningful think the and financial about It we And reduction our moment. the large not And reductions at that position. to

James Carreker

$XXX given sub of of public the is could. I million. private enterprise. any maybe Is small to make the of float to there it's And relative SMLP just The take now Energy one EV relatively total public this -- discussions last if with a situation, kind that is side the Partners Capital one,

Leonard Mallett

discussions private. are no the taking ECP is about simple no. answer The There with

Operator

have for We back at further Leonard time. it We'll questions this Mallett to turn now no remarks. closing

Leonard Mallett

you. Thank

in Just done, a that previous at script. note the for getting and was DJ that talked in and a want back previously I is to Double talked We so this actually filing, that's that FERC And, E, lot then FID We about in preparation about and done about done. now. objective. done. a and talked JV that We've accomplished we lot looking plant call,

I'll and initiatives, We and lot call done cost and that also about a talked capital doing.

We capital cost. to and with continue be both diligent

is we've search about thing lead for the other CEO that obviously talked for and The the us forward, is Summit to done.

put, actually results for he driven, him, time. excellent some right We spend with oriented. visiting the the Summit to is Heath, with Simply time very guy have candidate very some knowledgeable, in at an right had time him,

And talk we're something and doing. well a that asset about is underway. sheet lastly, and sales management, balance that It's lot we

future. So look a back, of a when we I a solid And I have laid for when execution. we've foundation forward, pattern look

you thank quarter. results So in I to we on interest for forward and report do look guys summit, your next our

Operator

conference. for Thank you, you joining. This gentlemen. and Thank ladies concludes today's

now You may disconnect.

Summit Midstream Partners (SMLP) 9 Aug 192019 Q2 Earnings call transcript