Plains GP (PAGP) 4 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Roy Lamoreaux	executive
Willie Chiang	executive
Al Swanson	executive
Shneur Gershuni	analyst
Jeremy Goebel	executive
Richard McGee	executive
Christine Cho	analyst
Chris Chandler	executive
Jeremy Tonet	analyst
Tristan Richardson	analyst
Keith Stanley	analyst
Gabriel Moreen	analyst
Michael Lapides	analyst
Jean Ann Salisbury	analyst
Harry Mateer	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the PAA and PAGP First Quarter 2021 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Roy Lamoreaux. Please go ahead.

Roy Lamoreaux

Thank you, Joseph. to American's welcome Earnings Quarter and Call. afternoon, Plains First All XXXX Good is Investor audio on the slide call. posted Today's presentation the be following Events at also News section Relations plainsallamerican.com, will where replay available today's and under website plan and evening, our post X disclosures and forward-looking other Kit reference we the which will non-GAAP earnings IR statements are Slide of materials. Important of our Later website, to provided financial include Investor to this package section presentation. today's on measures transcript today's regarding A balance are CFO. Chiang, and Swanson, consolidating hosted call sheet condensed Al other for President Willie reference located will PAGP materials Chairman by Appendix. Today's and Vice and and CEO; in the Executive be

of Executive well today's turn Chris Herbold, Vice including our over President members President; President Goebel, and Commercial Pefanis, now Vice Officer; call, our as call as I that, Additionally, are other available portion of Harry Willie. Chandler, Chief team and to will Chief the Executive Jeremy and Officer. With Chris executive Operating and President Chief Officer; Accounting Vice for Q&A Senior the

Willie Chiang

to thanks prepared each comments you us this for and evening. keep We brief. Roy, Thanks, our joining plan to of

our of provide I from and detail exceeded full our positioning. key to results roughly cash year the to storm minus on of that billion, our progress an section will continue today my solid $XX guidance plus results expectations EBITDA comments plan full in number net at objectives. I'll incorporates more year reporting maintaining and a his call. outlook $XX on or flow, $X.XX implied on focus winter note longer-term make quarter estimated first that million, We million generating free Uri. advancing our by Al guidance benefit plans, our strong XXXX adjusted

economies meaningfully. in have our energy global reopening progressing. vaccinations COVID are constructive demand Key We levels drawn global for down recovery. are outlook world and increasingly are inventory

in in resume increases importantly, into confidence supply and ongoing discipline, balance of side, to of And half our XXXX reinforces supply back combination the Permian On dialogue beyond growth activity with the OPEC's demand improves. momentum recent and and Permian as global the our the building XXXX. producers levels in

due to barrels day, million at the which chose of X.X our is increase exit a day XXXX XXXX. XXXX XXX,XXX XXX,XXX barrels X.X constructive million to we Permian Notwithstanding an the to expect our that bias, end We cover from year-end XXXX to timing maintain our year-end EBITDA billion fundamentals to a to of guidance year. the will adjusted at time constructive weighted combination view Al towards is of that fact the matters of the $X.XX the this the and of

meaningful XXXX For PAA, cash believe we injection represents point. flow

asset $XXX sales flow and grow XXXX target progress projected of having Including strong $XXX engagement. cash million, on sales after sales. We plus Slide X, targeted sales, asset to free achieve after minus estimate our our to $XXX confident $X.XX remain interest to of by processes our asset cash increased million flow to illustrated with distribution levels continued billion. we've formal or excluding expect generate now and As our and distributions in million free to ability

Beyond XXXX, continue maximizing to free cash be our flow focus. will

value our approach balanced would to prospective flow after after for and percentage of share multiyear a on near-term believe strengthening cash further in focus free shifting current sizable equity over manner, offer larger balance We this balanced and/or flow also our debt of holders repurchases a equity a period, expect increasing allocating cash and holders, a while to cash investors. sheet, be distribution to levels continue return and sale increases. We through over our time combination meaningful free reduction, with to We distributions asset generate any plan proceeds distributions of a additive.

multiyear system on in Slide our is visibility flow profile a forward, cash is lower CapEx significantly long-term Our build-out, by going illustrated completion resulting of X. bolstered substantial which the

opportunities. must-do, capital to We expectations XX%. our and million investment key expansion/Capline the or to by our $XX Al. located today's X status further prior And maintenance relative capital estimates, remaining of our over the call presentation. With XXXX limiting I'll Diamond overview roughly for projects, A exercise continue reduced high-level discipline, our and and that, to the investment no-regrets update we turn Appendix within are Wink-to-Webster reversal to have

Al Swanson

Willie. Thanks,

and with on first quarter of quarter XXXX. fee-based fourth million was shown exceeded Slide our line X, EBITDA expectations As $XXX adjusted in

well gas power quarter related, expect benefited gains that some including First and incur in later benefits across crude business impacts our year. These timing systems Texas revenue well to lower storm-related of on terminals than as as operating results lower expenses we Canadian hedges, at storage natural costs, from in non-hub are results our downtime the power stronger as pipeline Mid-Con revenue lower the more NGL certain and realized the facilities. as offset and and

and and Supply the level to to rising was the during for first Before first the weaker half of margins everyone, I were during quarter normal the NGL guidance in performance quarter and prices locked our be XXXX reflect our set relative not get because Logistics the quarter. than second expected into to did

Looking the market the a in with are forward, historical our little are margins current lower for but balance than margins. of year NGL line the

U.S. in in into impacts differentials extends oil were impact first of $XX Coast quarter. The and the and crude storm drivers our as guidance U.S. for million quarter in primary Uri winter of the of crude winter combination the of inventory adjusted underperformance the Canada. Uri for negative both the Gulf second storm The quarter builds on the the was a a EBITDA Focusing differentials below favorable negative the less compressed

levels less in continue that we favorable see line Canada we in our expectations, to proration differentials being anticipated. are despite with Additionally, originally than

$XXX based Free earlier, in noted after fluctuates first million cash flow Willie As the totaled short-term free changes for we of generated capital the working requirements. flow quarter. timing distributions, cash on which and strong

year even million. for items, adjusting forecast increase after from them, by we these for $XXX to able quarter benefited While the were first the our

metrics liquidity on Slide X. and capitalization are provided Our

XX, our debt reinforces to focus March is long-term range EBITDA which further ratio of was target of As X.Xx, debt-to-adjusted on our and X.Xx, our above Xx reduction.

we've exited billion $X.X liquidity. the with Additionally, of quarter committed

X, was a outlined similar increase note of EBITDA million, resulting our plus/minus at to a billion. Slide fee-based the million the I some for segment a adjusted increased our summarizes S&L that full $XX S&L. NGL guidance slide with adjusted The for As year, approximately segment. guidance Facilities changes by XXXX which the corresponding of by in each drivers remaining the change decreased fees EBITDA $XX our intersegment overall reduces and would segment net unchanged on in we amount, guidance adjusted our EBITDA XXXX $X.XX

the that X call we returning Willie, in equity Before November. the to summarizes Slide repurchase initiated program

capital Although that, repurchases. total in XX% pace allocation call to remain we and allocating to The did up to Slide first to as I timing over allocation, quarter, described flow plans be will the repurchases back our not turn our consistent with the will balanced ultimate Willie. distributions XXXX continue equity free of make equity X. With after cash on

Willie Chiang

to of will of you, value benefit respect to turned continue with enhance Thank a generation, flow multiyear and unitholders. free we Al. we significant We've period, generating flow our over a meaningful unitholder and cash the allocate to flow cash free levels cash to by corner expect free

rationalizing our us recap by today's your and capacity, are and streamline to our systems, partners above on we to sustainability our from XX. additional excess operations, flow Plains, operations. A our into updates customers, a and our are as business, and of energy, responsible cash providing our delivering focus XX, look support call to We optimizing long-term Slide on safe, We working outlook be to Meanwhile, progress. With to reliable and with maximizing the to the peers call that, global constructive align our outlined of XXXX Q&A. cost key recover. demand and continues free increasingly investment and on of all, North including through Roy and Slide and program, over I'll forward continues of goals on with summary takeaways appreciate interests rationalize in our lowering continued provided advancing followed turn you American lead

Roy Lamoreaux

Relations for Additionally, throughout week ready to our now [Operator be plans Thanks, Willie. address to team questions. Joseph, Instructions] we're to call Investor the additional questions. the available open

Operator

first Our Gershuni. from Instructions] Shneur [Operator question

Shneur Gershuni

off, had sort of little quarter, guided you reconcile a from bit start strong you perspective. can you was the me fee-based for a a here. if Overall, to guidance Maybe wondering had certainly I better than

Your commentary than on definitely call more it constructive today, time. the was last

It like You building it's your talked better. sounds back-half but weighted, production certainly Permian, about the momentum. for forecast

million us, kind beat that of of math, $XX only by is your was I of expectations Is business? $XX you the of a that And just the expand word had million. Is in up you in there year. so can mentioned fee-based think wondering since conservatism? the I of degradation about an guidance you election base is on back can. Or if election if before? on for something kind sort the half happening you the

Willie Chiang

Shneur. and I'll just the full the focused blanks. kind or start Harry first When first of Thanks, fill quarter, quarter? and was -- I'll is in let around off, your you it Jeremy year if question think then just on

Shneur Gershuni

beat But and at around you which of imply a worse mean about fee-based seems back commentary. on year. even maintain expectations, It's it positive to to the guide, that the the full half momentum talked but expecting seems you're the day, -- I imply basis, the you year. end of you

if out can square about? that's So if to there's I we -- thinking to be just figure conservatism need that if you if or that something was trying that's or

Willie Chiang

in others that comment comment $XX $XX the I year. some for about shifting Jeremy bit I Yes, starting the based be into the prepared Shneur, it's that's let across me start, really storm, related and of my point will here. of shifting million of the S&L, in maybe we jump storm made to on to and you think the in -- And the the for whole can comments, if think impacts a it's -- the benefits more. that good a million a got then --

Jeremy Goebel

afternoon, Shneur. Good

some acceleration. in So -- benefiting of seeing That $X QX. somewhat That benefit Transportation around segment it's timing expenses to and lower million was saw and because the offset opportunistic volumes, operating our by lower quarter. or million. that close costs, of million $XX driven an some involved of $XX additional interruptions from in you some by is to the deferred in first Facility a later bit to segment We just facilities. Part year our NGL operating the that mentioned

part $XX down million. going So to million of that $XX net is the

some is driven were component and impacts by quarter spreads second market further and timing. other pushed on of based There The that were Uri S&L. the even into

So erosion all Uri. that you'd see lumpiness is just associated of some with

$XX net the say, you $XX million if impact is versus So million.

faster. accelerate rest just the but rigs efficiencies, opportunity. The and really on see of We wait see seen other part haven't see We the completions. is we the

that's looking back-end the so proration. growth see not seeing this as differentials of assets to I'll our of There's and Permian to we're to widen But -- looking no And level to see. for are with is into we're we're business. that based as core mention built other Canadian production well, far historical line performing degradation in also and we're weighted. And plan, as assets expectations. Part core on seeing levels

Shneur Gershuni

follow-up appreciate we wait-and-see sense. That Okay. Really aspect if asset can the wondering I question, about sale it. makes process. of a do the talk Maybe was as

process can into out the does any timing you that repurchases? doing from for this of And you remind this us guidance you've year. If the and terms in share EBITDA baked block

Willie Chiang

Jeremy?

Jeremy Goebel

Jeremy Goebel again. is this Hi,

to began I ability this the with of speculate We targets. want transactions, and regard our Willie or all the ability stated, feel of to the in to are processes strongly our execute quarter on The to But As very sake our confidentiality. both Al of impact year. execute. in in don't very for timing we first just confident

Willie Chiang

comment Richard, why period. don't you on blackout the

Richard McGee

part asset So included sales, guidance. any repurchases. I -- We our on of think will as timing predicted that of don't the impact our have the that

so to on the impact no repurchases. And affect ability

Operator

have our We Barclays. question from Cho next Christine from

Christine Cho

Permian like expectations provide Jeremy, the what exit you usually for year sort volumes. on of is rate for

context, and the with we how of expirations. should to X closer that the XXXX you volumes if about maybe we're we what guys? And that think in get means tied be contract growth that could that year earnings kind headwind for going curious to So of to sort for some

you do think for blend your on extend to keep point the and what longer? at system Just about guys volumes

Willie Chiang

Jeremy?

Jeremy Goebel

questions. good Christine,

our right, mean I that into we'll ability that does heard what there's So for exit And on them if pipes. rate. 'XX? get contract start. then longer-term What for our And does momentum an to mean I

Christine Cho

Right.

Jeremy Goebel

commodity by and spacing. We're bias in higher of with would and driven and EURs, production, completion a a What we're seeing of just is speed April New pacing were back times production original first of bit So question, our the that's seeing say but I stronger. that this seeing efficiency an on I some positive because the Mexico came but timing, cycle acceleration down They're drilling and was shorter there. aren't manifesting projections. -- completions rig themselves February environment, Texas March mean we're bump. into rigs a

some seeing acceleration nothing production our outlook. materially we're So changed but that of

So a demand expectations. that. really our about X.X year but day, million production to ultimately going if material see fill out see that behind to We're view X.X not it goes see to ramp X.X exit. need comes -- we OPEC a acceleration. But come optimistic American the barrels and supply production, increasingly and to million you to We're North -- from for until you and I rig pipe 'XX your down Rigs in demand. million entered step barrels at day is this

wait-and-see we're we OPEC to cautiously to an to need respond, barrels think need That's But hit you'll there. optimistic. I before see So and why see there's really demand a see expectation. we market approach the

XX at time. With call rigs your enter this to bode question, So extend, about need our material too levels customers. XX Right but production to didn't it's XXXX it early accept. with we're at really you directly know I in Midland-MEH that constantly we're with well of that's blend to see regard to recontracting because I how now backfill answer for that doesn't that we'd thinking differentials, additional growth. and to dialogue

to close what we're staying we're customers. is our doing So

term to We dedications lease, over of continues acres, add extend. and now with well X.X we're the that million to continue

either with right over a it us. very a now long-haul when pipes in recontract, are supply. purchased come Our And barrels people recontracting. problem comes with the ourselves We back part XXX,XXX customers is happy very the customers position those filling when first to the strong pipes securing to or of day big

want So in to our at filling concern volume right we pipes, is it be a time. not going the to do

think levers I have we So most that don't.

any we'll time, opportunities in we'll from now while where be on space constantly a look you there, don't say time we to we're we XXXX but patient, our and long the reductions is to So constant dialogue rationalize across -- commitments. before have material for have

for overcapacity, right in of do have we understands of We rationalize, they're constantly time options we'll this let to discussions. So to industry and some and center the those evolve. think be looking the the

Willie Chiang

Christine I'm -- And go ahead. sorry,

Christine Cho

please. ahead, Go No.

Willie Chiang

XXXX. trajectory expect we're before momentum, recovery the that's going the just Willie. -- if was is the point end is year end longer to optimistic a there's our build at of about. if the driving way the everything I with the key time The you and see expectations continues to. a add in see we this benefits, what of growth don't this kind lag this happens XXXX. on of clearly, you quicker momentum we that builds It into the And But it

Christine Cho

pipeline of sort did you because end just or then the And rationalization. Okay. comments on

gas since other that there on I've Or Is at CapEx to maybe stations. As would most make trying less are diameter to inches. what side. From about takeaway needs options sufficient NGL gas? here? require it pipes could a that it right? like of It And simple also would understand, a we it's to these Just have XX things are change pump sound liquids be seem that I the least to that, like the sounds get transport heard to the sense pipe sense out spending? that that what conversion it would think meaningful to requires a that we doesn't convert the

Willie Chiang

Chris you start this. don't been and why Jeremy, Jeremy working Well, off. has

Jeremy Goebel

Christine, thanks again.

takeaway of home for markets. natural a look hitting for gas the a capital and as you is and gas piece, question more valuation rationalization the It's On scope.

mean deal at system So time. our so across and reviewed many are then think pipe? So those question I and I existing get And one on of options a we're all from you peers. time it's -- the to It's do looking contracts of and it's existing how options. any structures with

And now. say, for you don't I'd have be We so just patient. details

nature are true does the sense. the smaller that make of of gas increasing comments with diameter compressible make gas because just fuel and pipes, consumption you Some the around of

but But So the options. all works the be industry to you -- through just working I of patient that it. as gets as we're looked need on at, we best all

Willie Chiang

you anything did you have Chris, add? want to

Chris Chandler

compression typically Yes. guess initial of of This liquids require pipes. is larger, of Chris course, made I Chandler. just kind I points pipes gas like confirm they, you are have you would your the natural pumps question, instead in and on

to gas be done liquid specific done, times, certainly been the to industry. sometimes it our a question, it's of back in it's can number So but the to of in history asset and and liquid

it in So you you with or to by building a there's than certainly out relatively impact pumps you it general, there. capacity do opportunities you pipe to and install the do from might scratch. were replace compressors an take efficiency if But have having smaller

Willie Chiang

this is Christine, Willie. And

other as build important of getting seems if to I now. benefits, it the and that's it's think, harder is One harder assets

One it we've working from while our really sense. certain things when across size. challenge be of perfect some the scratch, the of and operating And capital does really other of In a more to if lot of what leverage make that's of evaluate that not if it these line than things system, you in about to factor start all you'd in, is a cases, go -- needs many through. new you lot are designing with a efficiency got things able it perhaps think gives industry, others. And you us be may is, which the the these to a is the capability industry

Christine Cho

or if follow-on. Permian of all more? just inches really pipes Are on over the major your long-haul helpful. out a So could And tack XX I maybe

Chris Chandler

XX size Chandler. XX the inches to vary They from up Permian. in is Chris specific to This

Operator

We next from have JPMorgan. Jeremy question Tonet our from

Jeremy Tonet

Plains, bit I of you to see the seems what what's more want you, -- in confidence, you publics. just sense agree you than dive that and guys? a like are conversations for your wondering Just if I a And activity kind means guess, XXXX. on that for into that there the bit of means of and how more It active little giving trends the producer different what with and kind privates guess,

Willie Chiang

Jeremy. Our Jeremy?

Jeremy Goebel

again, thanks, is Jeremy, the for It question. consistent.

back maximizing waiting cash and going free down it, and private to little they equity operators the and So investing company flow that -- balance, supply and just paying cash the investing in holders are flow no it. are their to and leverage, public investors demanding they're line with large holding returns heavily leverage. The producers largely see free to in demand the for they're

I versus well So it's a that's there's group of large the private the -- capitalized, say I'd that's are wouldn't accelerator. very public. generally privates that very say select very group hitting

that's all And they'll impact, so not but some this. driving have that's

versus I think hedge. with oil allows $XX steep slight to backwardation producers backwardation

free flow more them allocate. that's for to cash So

flat and operators accelerator. all with think few generalization a cautious really that that stepping gray I but is in there's there's that price, privates So select market optimism it. The all a and that there's of the few made side, structure, say select aggregates a and area, there's public, the the front hitting are out are I'd on versus

Jeremy Tonet

thoughts is days. want towards that Just right to wondering energy thinking written thoughts would they're as about these that Got credits, to subject sufficient And redeployed helpful. kind if assets kind direction? XXQ that more had have in you if move capture be existing it. on the be That's of any and And any specifically, you I'm general of in projects? see If wondering could very transition, forward obviously, now, helpful. carbon you and topical getting pivot topical. just

Willie Chiang

produce tell transition it. been in On don't Jeremy, as we point far energy I you Others would looking this not sequestration, and I have as on The Willie. you, manufacture on as transport, would a as active resource a product. at a our know, that. make can is we company COX comment doesn't make is,

from products A to solutions. have find We point commercial B move to agreements and

-- of some And we tune forward we And solutions generate peers. to with as have advancing on a figure role on moving and around. At no can there's but the do time, of see really really tuned that advancing can than we news again, stay stay we the we moved discussions of in nothing to how specific we there's I stay -- share point can it you on in it's transition. in may things sequestration we very our things energy so really, And out this lot on do have downstream projects, COX, while with well different been on, activity. some -- we as haven't not our back other upstream peers, our

Operator

question next We Truist have from Tristan from Securities. Richardson our

Tristan Richardson

that with inclusive materialize upper repurchases. think Should question flow that the a year? they Just asset free just the guidance? after the is extent cash sales of clarification respect bound throughout as to to Or the purely of potential of we of distributions

Willie Chiang

don't take why Al, you that?

Al Swanson

would No, Yes. to but we into have are the XX% being selling account asset up take articulated of the think specifically that consider that around would to what maximum, EBITDA we're well. as and I we've sales the

part reduce you're so just keep And selling leverage go to proceeds debt to an of flat. need to those as asset,

of would the but point part practically Slide we'll up then a capital considerations of in. to other other that you X, a But come sales, it play. it that there's just the maximum, a mathematical our would points we there asset after to this Again, our to I So will number give be to with factor be that considerations got on that. -- you than be into forward. that. And XX% think allocation it tool will provided also We will as going view of less

Tristan Richardson

general sort that to earlier of Curious, in? factored of delta on sales the within contributing outlook? that Just changed timing fourth follow-up timing sort asset terms sales question, of there the year comments is any the previous for appreciate the cadence And of assumptions around the to on is year. the of asset a helpful. That's has quarter-weighted then in I that's

Jeremy Goebel

talked speak earlier. of I'd don't Tristan, to the of the as once changed since of it's make we does about materially assumptions have the we'll haven't If say, in divestiture. announcement to timing we sales, year. something we the update we They asset change, the there. want But one, Jeremy. beginning

Operator

our Stanley from from next have Research. question Keith We Wolfe

Keith Stanley

quick X Just follow-ups.

the -- of year-to-date? completed First on this. sales I comment asset if now amount sorry missed Did you

Jeremy Goebel

Keith, We've this Jeremy asset million Goebel. $XX to completed is of date. sales

so did And I we of year. guess that's January consistent what we with that in had. this

the So in to completed that's total rest amount progress. The is date.

Keith Stanley

the Okay. other business I S&L understand, to just want $XX million I rates by one, the Great. item. lowering And I helps the fees just year. you assets and And hurt to on want think is by some $XX then uses. it the so S&L assume million said of the lower this, facilities I EBITDA intersegment clarify, for NGL you're just that that's facilities

Jeremy Goebel

the Keith, and about beginning it for our we and competitive area market the of that, we've marketing the that's by assumptions structure thinking we correct. at impact adjustment. and we Effectively just This affiliate that is is charge so rates year, Jeremy. make rates, look around market made

And so It's an neutral. net it's a facilities. allocation from just

Operator

Moreen question We Mizuho. from our next have from Gabe

Gabriel Moreen

been savings where so of take basis? CapEx to an on of -- maintenance CapEx and I and guess, finding my kind you able questions talk might out you of annual of you're be those ongoing far going about was those have how outside you just think maybe can numbers but whittle low Most I or down your how, asked to answered, sort just

Willie Chiang

Chris that. let I'll Chandler address Gabe. Sure,

Chris Chandler

million. XXXX capital. rate said with best that, a have year. million previously guidance programs of maintenance long-term capital our analysis. methodology, Chris that did that have we for of Gabe, won't number forward. to that maintenance $XXX asset for than tools reliability improvement do multiyear We've start the case. a and to inspection forecasted to also Regulatory I'll and integrity We million, think less been We completing to completed number run still around reduction. There's is related or equal Chandler. and as believe in $XX sales a driving it's to $XXX that factors update be we We're on that the evolve, continue going including requirements to are practices spend ones a later

all or of or the are number apply those. found commitment industry, integrity. But or It's certainly of lack means, by within lack a factors. a practices when of we a it's investment So to internally not look best to maintenance

to of to optimize guidance capital, question our number $XX there million. factors Likewise, million from by always on $XXX your our involved. to a spend. We're capital As investment $XXX maintenance there's million, looking lowered we've

So X some take alternatives impact of start-up when stakeholder that's some provide optimization. financial cause we've also the customers if facility end, project to outside doing Mississippi. engagement of do that that support the now. to We've construction the our reductions, we of to the the that a a almost for without with cost some planning update evaluate piece certainly been on appropriate. talk still alternatives part improvements, by if with project. in will year-end. or of and a a timing scope delay We'll the years But time we'll can of our done particular customer, we that. We've miles the pushed the back Diamond at activities That's XX the start Byhalia We're of for expansion very to change, to an Byhalia Capline goes from the that the in Memphis refinery response scope

Willie Chiang

to Gabe, CapEx, think want maximizing we about do. the investment -- take part you that what One flow, flow cash do will we back our costs business, I all day it's is in have we a away maximize talked we continue dialogue on as so to that is cash hold operating taking every think is the Willie. and broader in of mean free about free area. to thing much Chris from this I that's goal discussion, it CapEx, maintenance why how right? And really the and success we in it's

Gabriel Moreen

guess, Byhalia Maybe ask the a I extension. follow-up could just on, I quick

reason your together there you time those still Or somehow? If the because expected? for line tied have alternatives, at whatever do to are contracts look as slips in Capline kick

Chris Chandler

-- that. I'll answer So Chris. is this

moving is Patoka mainline that at reversal, originates on as St. project anything Diamond Diamond of Capline and the that it's the an ahead extension. the independent in On and project, expansion ends and the scheduled. It's independent James,

there, So and year-end. unchanged things are schedule startup for on a that's still by

Operator

question have Lapides Goldman We from Sachs. from our Michael next

Michael Lapides

quick, rate in to legs? service kind be a fully it -- do be year? follow-up And will expect Or Capline. when in you you that just Real Capline of that? so kind on to -- a years first ramp remind both at couple of run on full do it you Can Diamond expect take in to of EBITDA us, of

Willie Chiang

Jeremy?

Jeremy Goebel

Thanks for the question.

associated we're the continue what alternatives and to we'll look full evaluating south. -- look to on current some on Chris rate to run reiterate is at is a to and piece. quarter run some capacity space, As you'd Chris there's first additional Diamond to for that, uncommitted from so north Capline and But from commitments, will with commitments rate full in There go the have -- north time. mentioned, committed based over to we'll be we of that 'XX the fill southeast, stated to

On alternatives, guys as possible. update will we and you the we're soon evaluating Diamond as piece,

Michael Lapides

federal. gotten it. And as the litigation underway state the obviously, Diamond, both and Got it's with messy, city at then on council well, and

opportunity a Just your there that full from too curious, work-around? an that a runs right Byhalia. Do is There's Or now? far that of a kind partner's to utilize pipe is have not use pipeline? you that second opportunity pipeline to as

Willie Chiang

tell evaluating would you, that. leave and I it at Willie. we're is options all this Michael,

Operator

Ann Jean next from our question Salisbury from Bernstein. have We

Jean Ann Salisbury

$X.XX hasn't long-term for just think confusion has committed and barrel, then that large and or per well. if committed me disclosed caused been The interim the that's about I some posted think for confusion, Webster for to for which as right tariff the that true rate $X.XX yet? Is an investor honest, some and we're being rate way customers to recently Wink was posted it

Jeremy Goebel

Ann, Jean this Jeremy. is

absolutely service limited This kick during from just the fourth when capacity, Midland You're pump is limited quarter to correct. interim in. period with it's matching the and capacity. arb the to Houston effectively It's prior MBCs origination a

limited on long-term reflection no the destination alternatives. has that So tariff in committed

Jean Ann Salisbury

when posted? Okay. be will up and that long-term rate And is eventually, tariff the running, pipeline

Jeremy Goebel

That's correct.

Jean Ann Salisbury

be garnering more like then axed, on with Okay. interest? getting a as any It Keystone And follow-up, expansion? Rangeland might seems the that update

Jeremy Goebel

is Jean dialogue this constant our in We're Ann, customers. Jeremy. with

shipping interest expansion. to and are But we're that Canada this destinations. capacity going full have is -- U.S. We our from point, at south multiple and the we in

Operator

from Harry We last question from have Mateer Barclays. our

Harry Mateer

to I good think you $XXX And first guide XXXX? to short-term the to trending about short-term in sort debt large for of of the debt should historically, Al, we a range. highlighted you've number to for fluctuating line $XXX how And in the the guide the rest quarter. drop tended that that think in million still use? Is million

Al Swanson

But that kind number. of will it's Yes. I What number still probably do the XQ some temporal. trend, that obviously reasonable $XXX do distributions long-term again, say $XXX expect, say we we but flow on million would long-term a the in a number. Clearly, impact of variables in is What be that's to to after XQ be million. of expect we free benefit saw is would we our cash was

be to we've expect temporal. in that kind seen that you that So benefit of XQ tells of some we

Harry Mateer

to think comes And Okay. you planning to debt of flow getting sale that, something related you coupon how be that you when reduction? then it Or coverage? there prepayable door, have? sort to target prioritize debt lengthening and going to in to debt you proceeds asset about it like Is these free metrics might reduction, cash the some high is are about just better Or boost runway?

Al Swanson

a debt" of high Yes, our most lot "coupon it. of to maturity left has

out, think, harder I years obviously get couple and other and cost it's billion that. associated after. issues shortly next maturing do have, So of to an within there's few $X.XXX a with upfront We out take and the

will senior to exposure. note the will we there economic suited of front look is manage take said, and a but end. With if nearer-term be that to look there and on retire, an some some we'd to it's the at to better target ways, out maintain to try benefit some longer-dated think we maturities near-term we a the likely So of stuff,

Roy Lamoreaux

conversations of thank with We the coming many call, you in having forward follow-up and wanted joining we to everybody again our days. for to look

So forward in updating we to thanks and you again, August. look again

Operator

call. participating. conference this Thank Ladies concludes and you gentlemen, today's for

now may disconnect. You

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