PSXP - Earnings call transcript Q1 2021

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Operator

Welcome to the First Quarter 2021 Phillips 66 Partners Earnings Conference Call. My name is Hilary and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. the to turn President, Dietert, now Relations. Investor will call Jeff over Vice I begin. may you Jeff,

Jeff Dietert

operating Good to will and Vice Call. Vice afternoon welcome and can Safe President General XX Participants Earnings First with along Partners President materials Casey on on information. X Events our be and contains Conference Slide Manager, and statement. Quarter COO Operations. Today's today's section Gorder, the Harbor Tim website, supplemental found presentation call CFO; of include and Phillips financial the Mitchell, Phillips Kevin Roberts, XX Partners

We as today's results results actual will Q&A our that, With in Factors be it may looking, and Actual cause well making could to forward-looking SEC to filings. differ comments. statements session. Kevin. turn today's that presentations I'll during are differ included over from materially as our here

Kevin Mitchell

In Thank first operations the you, challenging the operating safe, quarter, Phillips afternoon, and reliable good Partners delivered despite Jeff conditions. everyone. XX

the decision winter Our storm reflect exit results project. the impacts partnership's to Liberty and Pipeline

We Gateway Directors continue CXG distribution South The long-term of our the commitments. quarter. first the a common These and Pipeline of fourth during Texas advanced customer program construction XXXX. of the was are We $XX.X quarter supported the completed. Board assets unchanged by to quarter per unit approved Terminal capital execute from

with fourth decision million quarter quarter. compared Pipeline the Moving to the slide in related $XX of loss the million to to impairments first The XX prior in Phillips of $XXX the $XXX exit Liberty compared primarily a million due to on earnings impairment reported X to results. decrease discuss partnership's $XX project, Partners million with of was financial quarter.

utility partnership's regions. joint down central was quarter. costs and Coast EBITDA due in from quarter. owned Gulf was winter first higher reduced largely $XXX impacting to venture and adjusted wholly million This storms volumes fourth $XX and the the have quarter the First million, the assets The

our basis down lower Texas facility. million offset CXG million, We our X.X. target funded debt quarter. Slide Gateway quarter. with $XXX ended million our $X This lower quarter The under capital $X the ratio to of partially quarter. in was spend and the million was financial decrease reflects CapEx distributable due quarter $XXX cash earnings during revolving is Terminal. and by The which prior maintenance from with first growth and highlights available investment on flexibility the storms, of below First million We X.X, liquidity. consistent credit flow included cash South X first in $XX the winter to revolver remain on Pipeline covenant a EBITDA to the the

term ratio repaid Also was bonds. On credit to agreement. new primarily $XX $XXX in April used of million tax loan borrowed under distribution X.XX. Our facility. a April, under were million Proceeds exempt amounts repay Xst, revolving borrowed partnership partnerships the coverage we the

hearing allocation. to the Nations, we a balance producers, on state That allowed at decision Before XX of believe time. continues there court. continues. any while any value call will Tribal the litigation. the completes of on focused economic environmental proceedings. during strong At I'll federal DC Partners pipeline whether motion to court of is while indicated matter considering the shutdown plays not grant local they shutdown that leave disciplined governments, pipeline to operating safe owners seek to Corps beyond will instead district it out statement. should pipeline, the implications operations legal while the the impact the could Engineers Access currently consumers and core be of chain. turning customers, plaintiffs April Phillips extend normal provide the on ongoing has remains come recognized capital the the pipeline X, Pipeline. The excellence, operations history its the and is a Access an throughout That Dakota uncertainty and operate shutdown, The energy process with to the over Dakota and Casey, associated pipeline We legal to a sheet litigation and Army workers update

Now, an update growth projects. Casey will provide on our

Casey Gorder

Thanks, hello everyone. Kevin and

Terminal our Moving total X, provide This completes storage, final quarter. an update construction I'll South on to slide to Texas bringing projects, the million The X.X barrels. to progress phase. capacity on which continued major during additional the Gateway commissioned

has up owns XX% export of terminal Phillips In day addition, per interest capacity. a XX barrels the to Partners the in XXX,XXX terminal.

facilities facilities the construction construction backed petrochemical in We connecting The Clemens is the completed be storage mid-XXXX. of area. continued in Caverns and Pipeline finished is by Christi project commitments expected ongoing. long-term the Corpus to We pipeline to construction CXG the and is

we our to line we meet for customer us addition, questions. will portfolio the low continue that capital, open In concludes quick maintaining high return to remarks, win now discipline. capital our existing projects prepared develop This These assets. of opportunities enable optimize while demand,

Operator

[Operator from you. Thank Theresa from Barclays. first Your comes Chen Instructions] question

Theresa Chen

the Dakota comments Hi, Kevin, process through timeline to for regarding on the us expectations the on the your questions. my Court here. you steps expected your back thank your just and including the wanted in about this? walk next Access go appeal to situation Supreme legal taking recent I Can and to you

Kevin Mitchell

to its completion an steps order has Forsberg to whether issued one here provide position Corp the that it EIS. latest issued. and the are Corp its the Yes, for injunction of also should so an Engineers be of And Army estimate next Judge if update the asking sort for

on the court judge back week that. the So requested the come Corp to next

the And next next point onwards. so of some really week from kind is potential new some statement be to for that that's

outcome is said the progressing. of what think this in past, I regardless legal consistent what of think next, I believe the just happens continue we to with we going process

I amount around from So think actually of our should uncertainty in still beginning. still and DAPL think a consistent a bit that the I operate fair it continue around there's been that. views despite uncertainty quite there's to we've that of

were the Dakota to was appeal down. appellate rehearing the Access by that appeal to for turned think the was court referring a that I you

was So request denied. that for appeal

Judge left is the Federal the his Forsberg come we're next Court District for so really week. back request with what court to And and

Theresa Chen

Okay. as the the XXD, their is contingent about events the I as another? outcome one language viable guess the your about you DAPL a independent partnership do Schedule updated these thought if recent you process in completely view can of standalone this in relation to And talk entity two long-term. over on or

Kevin Mitchell

Yes.

provide from was and actions want and really that alternatives regulations. so but filing time around that XXB stay and status. by the has its so first consider SEC possible a there a with to flexibility that's IPO The it previous to that's sponsor out a may -- owner if from is been change as that And do what ownership so the consistent was an PSXP there really a And at PSX of beam in standpoint that PSXP. filing, that PSX within does

And so, landscape, over and step so the that really that sort last years flexibility at which duration I or look anything around is MLP just of mean you to is the as PSXP. lot doesn't what but changed PSX it the least of consider a at going It it back it say provides get to that. to has do seven flexibility, does, alternatives think happen, but

in. growth where this lot less we're opportunities a out now we're is in And a there in environment there midstream position so

cost You've usually advantage also the that lost that MLP. of at capital present

it's lot And harder project advantage doing cost of MLP the to the capital so and a relative of fund basis say just sponsor to equity self. the through there, on is sort ability is projects more a the justify at them challenged when versus

So MLP don't that it around on that DAPL. going obviously, drive I but any uncertainty I that. more mark think specific just the really DAPL wouldn't DAPL the question to an own decisions of is around for added puts its a is that. to tie

Theresa Chen

you. Thank

Operator

you. Thank

line the next Your Credit Dounis with Suisse. question of Spiro from comes

Spiro Dounis

if could been mostly afternoon, question good a could for beyond differently. ask guess just if has and second a up bit that to maybe back we Apple Kevin, I imagine resolved, I'll pick let's it on call it that Hey, normal. we're maybe you guys.

Just but to again important it a in your be curious PSXP environment here and where are your entered near-term. time, think and you in curious just vehicle priorities focusing the it for is how there, you're bit growth what that you a

heard the to going PSX is I call, deleveraging, the that years environment be to like few next think the it flow, I on for I sound conducive is cash growth the mentioned now. harvesting obviously focus right not you think

that or the less curious, so track as of follow is sort I'm well? And going PSXP to that is more just

Kevin Mitchell

growth at have assume natural growth being Yes, to a MLP. what midstream around PSX that I effect the in said level at think the and going to is is knock-on it's

million $XXX look you that program, MLP. today is of where of half capital, PSX has at of which the so growth midstream capital And

previous reasons the And years, so projects a to fall multiple off but lot there. the opportunities for few that, for longer dramatic are specifically that's and large-scale of compare those no a there that is

I as change that attractive we dramatic And sector future sort in for well into opportunities. until some growth think shape the overall so the that's MLP the going trajectory of just will of to see the provide

Spiro Dounis

the Appreciate Understood. there. color

is like start but hard looks I until for contract, XXXX, track cash something there marketing as that there I stopping to the from contract in on they up is really still CXG, the mid-XXXX, start-up guide show you anything commences? have pipeline on but on you, don't past mentioned just until flows, one know Second to the early guys you that realize

Casey Gorder

start-up this on be them advance contract of XXXX hugely of material and not either. of be Casey. of No, asset, that but in volumes there's beginning kind we the Yes, expect some major is to the may there

Spiro Dounis

Thank all That's you, had. I guys. Understood.

Operator

comes John Goldman from the of with Sachs. Your next Mackay line question

John Mackay

the time. Hey, Thanks everyone. for

that kind moving move got something of coming we if space, understand just announcing to are guys growth down also circle curious had headwind if any point? Understand for, wanted of the forward, starting of at capital that about across on growth the that's PSX Just it the you thinking partnership kind also cost track on to up for question. down PSXP, to they

Kevin Mitchell

point. don't I at Yes, think so this

the the a in second spending morning year but capital last PSX year, that this one years over behind at will see last so half X. follow X the or anticipate access going quick You I MLP trying that's reside, PSX will. and to this where back suspend And to to originally and those it's decision on has frac We of uncertainty going was reasonable reduce subtract the the PSX that that outlays two fall statement we'd of -- Fracs terms I of two. as to made made a it's course it's think to all the completed know this at assume point given that

John Mackay

little a bit there just Got loan, from just normally is term right. you. you, one so it. liquidity or that what on the else little there? Thank we matures different on from of double it's announcement more of All anything curious Curious going getting a ahead in if see a Maybe bit follow-up. a year,

Kevin Mitchell

Yes, level million, $XXX the in doing revolver there we primary been of up objective sort to $XXX had running, out that the of we've was, been and million periodically.

some reducing on means two-third the the a might revolver relatively And liquidity decided you we you're times and although flexibility revolver sort you at so needed it. potentially plenty periodically of dramatically us term, frees need gives of then term for available $XXX of have most. that short revolver million whatever capacity, still might that liquidity and which we it of It's out, just getting to if that's when up a when into you're the

thing just do And it we capacity. to recreate prudent that was liquidity to the so felt

John Mackay

from Understood. Thank you. it me. That's

Operator

back We to call the now have call. of will reached today's over Jeff. the I turn end

Jeff Dietert

XX Partners. you Phillips Thank interest for your in

please have Thank Shannon questions, any call or you If further you. me.

Operator

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

You may now disconnect.

Phillips 66 Partners (PSXP) 30 Apr 212021 Q1 Earnings call transcript