PAGP - Earnings call 2 2021 | Plains GP Holdings, L.P.

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Operator

Good day, and thank you for standing by. Welcome to the PAA and PAGP Second Quarter 2021 Earnings Call. [Operators Instructions] Without further ado, I would like to welcome your speaker for today, Mr. Roy Lamoreaux. Sir, the floor is yours.

Roy Lamoreaux

Carl. you, Thank welcome Earnings and all Second American's Good to XXXX Call. Quarter afternoon, Plains presentation Investor audio Today's News posted call. is slide the section be following plainsallamerican.com also and Relations of where will an replay available today's Events under website statements regarding financial non-GAAP X. forward-looking on measures Important provided Slide and disclosures are PAGP A for reference are and condensed consolidating balance located materials other sheet in appendix. the Officer, and Executive Vice Chief Financial Swanson, CEO; President call. Al will and Chairman our Chiang, Willie host and Q&A, Executive including team Executive Officer; our members and Vice for Chief Officer. Senior Chris Chief be Other President Chief Herbold, Pefanis, will Chandler, Accounting Harry available Vice Operating of President; Officer; Vice Commercial and President Chris and Jeremy and Goebel, President

to focus year the quarter, expected given that on and we today's provided the not quarter call call. With results what July beyond Before venture additional on is With Basin with guidance. second Oryx do that, to discussion was Midstream, our I'll fourth Willie. the turn turning over will XX we transaction share to our full call to over the to form now that Willie, information conference joint the any respect intend not close I'll Permian we until note that to plan

Wilfred Chiang

and or to we we to increased million full billion. Thank reported you, our EBITDA $XX Roy, our $XXX $X.XXX afternoon, joining plus and million, thanks guidance better-than-expected everyone adjusted call. This for of second quarter minus year by

progress financial while free provided Slide been of certain to are in incorporated within reaching guidance. initiatives, discussed Our calls, have reduction, of with A I'm the year Slide with closed is of timing-related we sales, fruition which returning recap We've which, schedule. discuss highlights gas inflection materialize, million maximize point our capital A months on results call with will a number we business. flow time storage benefit asset our X. On sale take second to debt provided and coming yesterday, a X near-term develop to May. roughly advancing accelerating items, pleased $XXX of aimed is in to ahead our very several quarter was previous on equity of we benefited our our initiatives business, cash our holders. natural the and since positive as have X. In quarter the from full These I initiatives first made summary

$XXX well initial We in continue progress million and sales to our expect achieve total exceeding additional million. $XXX of XXXX, opportunities asset to in target

agreement announced optimization of our form cash we the definitive optimization, align will Oryx venture joint strategies. strategic execution debt-free the to a transaction. with Plains portfolio directly a Regarding This entity through

below capital for of investment minus program, majority of Byhalia February XX% further sustainability published Connection the we Project. plus reduction XXXX have of the As our capital increasing on X our by million emissions reduced presentation. our the overall the or peers importantly, which from XXXX which relative reduction website, to full last last X data, $XX included we million week, a our Scope greatly or $XXX on to sustainability, with guidance, our disclosures, each highlights are within gas years posted greenhouse quantitative is favorably reflect including today's over The our report, report screens X and Scope emissions. related and to our cancellation And the on

we remains global demand expect our and oil view, the quarters. next fundamental supply rebalance continue to our positive, Regarding several and crude macro outlook to over

our continue with actions largely been While we to monitor near-term have expectations, potential to demand recovery. recent headwinds global consistent OPEC+

in year stabilized the producer in As Permian commodity the price months. has signals recent have in activity early increased, and ramped

Permian growth JV positioned Oryx, entering will to Basin outside and flow. We well believe announced underpinned for expect we period operating recently this as of which significant the and be to Permian of balance reversal. activity growth demand Plains with as Further of such be supply leverage improves, long-term Wink-to-Webster reinforcing is of expect We the by mid-XXXX. resume as Capline a completion assets the further full-service our high-quality the Permian, well later projects as our with completion cash this year multiyear

or this As sales. $XXX to cash billion have a from asset after excluding progress, XXXX collective flow result or further of increased distributions million our we estimated proceeds free $X.XX plus minus

I'll free As that, we over and manner to Al. cash reduction on on time continue call a with the to near-term percentage holders. With balanced illustrated flow is a X, to plan over equity in debt allocating our Slide turn allocating focus larger a

Al Swanson

and An is contribution results Thanks, EBITDA X, of on full Slide the quarter Willie. directional overview by guidance our estimates year the of illustrated quarter. our for within context second

Second within individual million quarters. quarter second quarter end was roughly across million, timing high which the range May adjusted $XXX our estimated of above $XXX percentage for the acknowledge the of potential shifts for the EBITDA guidance,

roughly our from sales. on million EBITDA of logistics contango certain positions monetize earlier segment, quarter benefits, our forecast to slide, mentioned our and Willie of illustrated decision majority represented supply addition function occurred $XX forecast to as adjusted which of which a within and vast As than earlier second timing NGL was than in the the gains

full and $XX over-performance. EBITDA our over-performance is million our majority segment by adjusted within guidance. was within our driven our occurred transportation The roughly of year updated incorporated Additionally, of quarter second

Our degree performance various by was pipeline savings. hub across driven of terminals, a OpEx systems stronger plus and throughput

million increased of Slide second segment and quarter quarter fee-based approximately although it's the lower than working capital Slide normal on approximately X. An on metrics detail liquidity of Additional on results year-end XXXX. items, overview $XXX a still Total is provided million capitalization $XXX our result summarized during are our as X. debt

as outstanding $XXX June XX, of repaid with debt short-term senior June gas of of debt our net quarter are reclassified both yesterday. storage long-term which in storage of is loan end. associated of million As and approximately term The $X.X of was gas was notes loan term a million which XXXX as business, due billion, $XXX

to remains end high long-term at X.Xx commitment EBITDA progress reduction. recent was of While short with pleased further range amounts our have it quarter said, adjusted Moody's target when the our debt X.Xx are the was and made including review our towards above to ratio term. and debt That for deleveraging announcement. our reiterates classified as objectives end, we This upgrade

Moving to Slide X.

than our our a to-date As net and EBITDA guidance a in $XX to mentioned have to $XX million our sale million reflects guidance previously, Fee-based due S&L due in million million includes we fee-based decrease by facility million XXXX conditions forecast. $XX segment. S&L a favorable reflects segment increased increase the million, as to the as guidance transportation negative adjusted gas half on $XX impact earlier segments expect segment storage back in of well we crude reduction market differentials a the year. to which result changes oil performance less $XX to the to closing that $XX

completion current intend Basin fourth of full reflect not do the budgeting results. year not the to data in and guidance furnish until full timely have Our the a expected of our on and material outlook will Basin producer does I a will us our quarter incorporate we following provide JV, not the XXXX This Permian JV with close to call earnings the until XXXX contribution February. basis. time XXXX that appreciating note the of anticipated for also Permian to not transaction season contribution that our quarter to is allow fourth benefit would year guidance the

range our expectation Additionally, year-to-date in million $XXX $XXX of our continued XXXX updated capital to investment on the reduction annually. capital for which Slide and from is forward capital XX, provided guidance XXXX to reflects million in million $XXX be investment

$XXX call repurchase year, a receiving activity, the WIllie, allocation Board we of to this repurchased of equity in In which million, quarter. half XX.X approximately units XX million we returning of provides the capital a have have Before completed our for plans authorization summary November. Slide repurchased in second the aggregate, including recap since totaling

Our cash debt balanced near-term after least at consistent and distributions plans flow repurchases. allocating reduction allocation of to capital free equity remain the XXXX XX% with

as through a on I'll X. With balanced timing call approach, Willie. our Our total remains with consistent allocation, turn pace Slide original to expected and described back intentions the that,

Wilfred Chiang

Thank you, Al.

on and objectives, Slide good longer-term execute to our progress and goals on XXXX continue are XX. on We strategy, reflected our which we've made

Q&A. Plains, progress over in lead is in support to, and us the we our the on as Our appreciate constructive, your call A summary I'll Roy, turn and remains our additional continued coming portfolio, from optimize for cash we're excellence operating the debt asset while on equity and focused a whole cash continuing return intently flow, you to and of updates and holders. outlook months. With look business in multiyear forward with free that, of providing industry call takeaways reduce today's maximize will to Slide key on provided to who XX. We investment

Roy Lamoreaux

Thanks, Willie.

one follow-ups. This to As in and session, return allow additional question, follow-up please many for then queue practical our participants we the one limit enter afternoon. to Q&A as have time the the available if address as yourself you question this top to questions us will

be now Additionally, to to address we the questions. Carl, throughout team to ready for plans call available week Relations our the Investor are additional open questions.

Operator

the Instructions] Shneur from [Operator Our Gershuni first from comes line UBS. question of

Shneur Gershuni

strategic but wanted for the asked presented kind question I of call. on year. of-- I kind on this little I bit to was the a think I of question, confusing was instead guidance a guess that I It's this focus last

about quarter, did mentioned of have through look had you your There conservatism quarter. and was guidance $XX following what's was of small into I or to revised in had strong that so the year forth Do you of for but-- moving but out mentioned get trying just was here a forward a $XX square how the million to as that because timing, understand element here the guidance only there's time. modest I the presented. You raised the here. if increase it, understand a shaping to about as remarks, related to X pieces at an but that's first to prepared your away guidance benefit should conservatism million S&L roll and a you I'm quarters? second over-performance expect in you Just kind quarter of if for as trying the you strong $XX trying lower think was fee-based we and million.

Wilfred Chiang

This I'll Willie. is start.

second later had contango quarter, tried the moving because our as some is waterfall in S&L chart to sales well of the additional show think we year as our we contango on I you NGL from storage some both what business. holdings-- Canadian market in benefits that into conditions in earnings

we think you what million, in out-performance, have sales. but asset we also the the about $XX there If is the $XX factored is did million

storage business was gas Our months X earlier.

some Clearly, take $XX that to in million. you to the asset you And S&L a bit crude little It's not impact earlier close it's the our as realistic the be. you the assessment. we has strong gets when happening been subtract $XX expected frankly, of as of expect sales the and So what opportunistic around earnings sooner, we year.

if are there. those I to So pieces moving anything. know anyone add wants else don't the

Jeremy Goebel

I S&L would we Willie, receive increase of-- to the we the part and think that same is line why No. to question address Shneur, in is it expect just would when transportation. drop and

of what part said. think Willie to that I speaks

back but to corridor, that on differentials, to Midland that Gulf up, and in transportation So Coast side, that's to U.S. from Cushing. tighter more it's Midland U.S. to led the movements definitely opportunities

So more basin. up we've seen movement

is but impact been have producers there The what proration the but been Canada, system seen, what we've volume flow. led was cash thing you've differentials. differentials Similar tighter. S&L the offset transportation. more has Enbridge That's have tighter So less seen because by with Canadian in to S&L more consistent along

to tariff more revenue. led that so And

in seen positive So so performance less business. as but on our trade-off and side, S&L that on a side, out-performance a the we view hedge natural tariff we've the

Wilfred Chiang

Jeremy, one about point comments, my that one-- as talked the but was trajectory Permian Shneur, make, production. would Hey, we of in I additional prepared

is seeing the As an And the balance of a increase in numbers Permian. perhaps the on a where really, on production supply crude, actually little early we'll year, the I in demand said, we're to goes had guidance this we bit gets before have and different de-inventory but point, demand and into expect compliance, we XXXX, really later which tighter the to be to until a had stabilization the inflection we also continue of year. than view OpEx for see

Shneur Gershuni

burn If question, second clarify something cannot just said just I my there. you

in rate lower, I happen is you thought that So you basically that? that previously your and saying XXXX what or to exit for you expect now XXXX, or did mishear are

Jeremy Goebel

Jeremy. is This

and today feel say from and we in exit we growth of would the basically to across been systems it's from first exit strongly quarter potentially clarify, your the And the production still the activity through it's We a slightly the closer to rate, in had looking the other to X.X% system to from forward, Just experienced took Permian to higher, for now. X.X% now. X.X% then our We flat April in and X.X%. rate April production X.X%. previous months but our forecast effectively X is estimate

and So the through we fairly be would yield year-end. expect production to constant fairly activity constant to be

it's reduction as we So to not were. a where

guidance. at is $XX where would thought forecasted think but what million sale I that and out that's Willie year take earlier, we what mentioned X the benefit asset proceeds, offset to consistent the of we had it we've received basically, that but to close was, we is the have the P&G for of this end was, months of that

Shneur Gershuni

fee-base about sense. $XXX here. asset XX% that the of ratio proceeds to million that leverage Maybe but versus buybacks you'll the a the That debt probably more the been you've and year? lot think basically point, on. more buybacks the I towards towards my makes you lost from of of immunize imagine follow-up question And with for executing appreciates complete, everybody XX% use sale sort do in see complete a the for allocating to post just Good S&L. I end to Perfect. expect this as perspective do EBITDA earning

Wilfred Chiang

take want to you that? Al,

Al Swanson

more the is not indicated to up first for really limit, Yes, or target. debt was a XX%, priority, Shneur, it the reduction a we've that clearly to of XX% go the

is Your actually $XXX million close. math very

do, of $X.XX we this our billion is total $XX free come and for we'll of intent, utilize or bought it, would in took-- to the we to we $XXX after going which priority, of a complete take for already, timing, that don't and to being it's But numbers, up it. appropriate second clearly, at million our The piece just amounts targets to provide we're to to pace provide $XXX flow cash purchase the specific the and and but program of intend do up at what intend that reality number the look specific adjust you it core of million, you value a to dividends, with if it, we we're repurchase So a half. is, potential looking it's don't feel year continue million. us dollar

Operator

Wolfe Our Research. next question comes Stanley from Keith the line from of

Keith Stanley

EBITDA First, the to year. on guidance follow-up S&L wanted just for the

overly monetization not contango So of X sales. but the some simplistic, NGL early and to positions this make you of referenced and

you you're realized the some gains positive activities just given activities year. what-- there are So this Winter you other for year, or money the had where offsetting segment guess S&L that is Storm margin within or factors I losing something any any had? offsetting Yuri

Wilfred Chiang

ahead. go Jeremy,

Jeremy Goebel

tried Keith, that articulate this to Jeremy. I bit is earlier. a

between locations movements than market the periods. were of tighter at Some differentials historical

chose that the the monetize to the to benefit it. transportation by of S&L we instead So the some there's but largely side, early. where on got doing had a We forecasted offset That's to spreads point rateably monetization contango year, throughout that

those sales, that in were of forecast have. previous movement the and just this we timing was initial of the that forecast, all between the NGL generally components quarters our is So

given will basis in if store sell quarter. and in blows versus opportunistically So out, the quarter guys sell our in a future

driven some in by it's just about plan but million higher That of that-- earnings associated of acceleration movements. talking because $XX And $X.XXX movement lower in were So S&L. of an billion. S&L context was that the the already for transportation, with we're those

side side, to the So those still to specifically positive entity U.S. it's the on very the movements Canadian Cushing. and

Wilfred Chiang

points. couple A is Willie. this of Keith, other

that And we in don't also, which about a earnings, Canada as late recall, last storage forget, all pay way were business the in talk the on the fees up level. year, at you our through spreads put lower Canadian we first did impacted As quarter well. frac year

having just So to It's that upside. it's and year. for pure out across taken the not capturing pay entire the storage

Keith Stanley

was as I of Got And to just please curious, had the straightforward to about quarters. from very see a the issues know you but between I me FTC perspective? just since it with or this you call do Any let an if touch it. came you're or up front want think you mindful on Oryx, don't don't approval be on transaction thinking anything regulatory

Wilfred Chiang

any comments to probably it. Keith, put inappropriate on specific

We expect We filed, to FTC. have we're the but process the for go would the have in and process. approval, through

Operator

comes of from next line the question Our Truist Richardson Tristan Securities. from

Tristan Richardson

as that appreciate really at if that but XXXX meaningfully we as providing guidance grow that and I your I talked that I should line, on year? occurs transport mid-XXXX you're frame, think you that that know time, guess that supply-demand this talked about we or balance next time should about think comments time the tightens dynamics Permian that and not up stabilization on can you for normalizes, but

Wilfred Chiang

and Well, that bit I of assumption you this guidance volumes. at be be. we Permian and in stable think what conclusion is there volumes, until transportation that, lot There's and as But take the but Tristan, up, a be, growth would tightens is, additional the trajectory which start little should the Permian you we'll demand to on from infer supply point and February we'd way seeing be there'd I give one, an our in tighter time. increased that's would we that then around expectation expect a to balances the would better more-- should variables get supply as take

Jeremy Goebel

would Willie, say that. this is just like it's not Jeremy. linear I

see You the and the of capacity come. I will line's demand, imagine increasing trend rigs fare that until, the wait as you wouldn't think, any will rigs

they're a this dynamic gone add It's not going to supply-demand. to all until as has fare capacity wait So said, Willie activity. is

call give will better that see a wait where be, allocation But contracts that the in reason, we're is we're we're positioned available of capital to have of part and guys so incremental capacity we well and Al, the till for as February we comes think to to market, it to place, timing they'll what estimate on you give certainly is and what be. guidance going mentioned capture going have can I the to we production that.

Tristan Richardson

next some or kind versus on And then, think of we as what year? there-- savings initiatives we just OpEx over-performance the planned part Al, profile maybe permanent previous out are was Is this of as versus you about some there talked the going ratable there model guidance. had cost of or of should you

Wilfred Chiang

Chandler to I'm Chris Chris? to Tristan, ask on going comment that.

Chris Chandler

Uri moving Sure. continue This the savings There Chandler. to and a we are in to a capture the quarter, to Tristan, we and able everywhere challenge Winter opportunities organization to certainly, Chris capturing of portion parts, finding course, those but impacted sustain number are but of comparison look, we're forward. going the is expect first continue XQ-XQ to cost had and a so they benefit that's We, Storm opportunities, be of we those we of deliver.

and still opportunities So them. capturing we're we see still

Operator

the question next Our Jeremy comes line JPMorgan. from Tonet of of

Jeremy Tonet

to on the Just of come you're proceeds. able seems with wanted just out than as that? here, curious we if had out buyback able you on seeing have say. Based what like you was I bit year-to-date to And a a you just going forward more is asset our time the were that. you given laid to expected periods back situation just to calculations might wondering before, do what might bit can the of a expand that the if it methodology a and sale I Oryx of be you market pace the and faster slower for locked might have buybacks little bit pace

Wilfred Chiang

a I make is can comment. this follow-up it. Willie. on know, Jeremy, Al, I'll

at, the look lot of the you If a about outlook. think is and that it we trajectory business factors

about a we of these, that to of all occur you look because when these question of at the being of earlier some part year not some probably and first certainty execute in buybacks. expect you should would when things the of on year, we able So think this the factor

I'd have again, different on specific we you take going And do be going Our things back cadence that what but look many, the buybacks. as we're to that volumes at said, to continue it. to on to some or many intention XX as to is evaluate Slide on not Al we we're

Al Swanson

hit us I high Again, And believe end I This pretty the say year have timing would bought XX%-- up the specific And math, I and $XXX what cetera. again, for would to I don't we valuation, would a and And if $XX interpreted million, target to think XX%, concur telegraph folks do with it we yesterday. is up closed to P&G again, close. XX%, limit. versus million a that as think you be through some Willie walk et the said, today. it's prudent Shneur

transactions with until associated them, so. always So risk close, there's

Jeremy Tonet

or to want So guys was I just make out clarify that. you that locked sure to Were just I want understanding straight.

Al Swanson

it until specific is meaningful a comes done had you we've has else. The that tell in hand year-to-date. that have judgments impact that sales Again, probably than would I proceeds fact don't apply. don't with you on more transaction do up, anything at What any asset think we we there's to the June what XX, that

Jeremy Tonet

business, Understood. that a there's It some here. if strong activity, the of could holders capital there. it out question interest, wondering, return been unit And those robust given not thoughts wondering here. to quick second Canadian your to just powerful way border like markers some seems north was up on And be like of the there, M&A seems just a

wondering just could latest sense. your thoughts on if divestiture there make that So

Wilfred Chiang

be Jeremy, thoughts any look at. be anything any at share to really might premature we lots Well, sharing of we we thoughts things, but about can't looking

Operator

of line next Hammond from the Sandler. Our comes Piper question of Pearce

Pearce Hammond

pertains producer been E&Ps the the certainly to little production public been heard maybe a have have on disciplined less first more disciplines. privates My front and the We've so.

consensus as that with you interact as producers? to change when any hearing you view are curious, just I'm So far

Wilfred Chiang

again. Willie is This

do probably not public discipline, amount, the think some you're have Jeremy, more may what larger the ones of smaller on quite with seeing. that? consistent comment I The but, have we're companies want you same to

Jeremy Goebel

categories. few nuanced that It's even. a there's think I more Pearce, than

the are it, discipline of really and large, call and where front advantage they're the that taking they're there's community opportunity producers I it, half been space, by out dozen across in a has of very private production. disciplined. to there's producer and grow going a getting But think handful, the

Within producers, in count cautiously year change we haven't optimistic the about close larger X any to rig the in but they're next seen months.

hey, X% growth going been it's see last and months. goes. think to in we're that, this how X indicating wait the I That's

I a that get think is price bit be there's general today, front view out of and don't to may current there capacity productive because they meet in that. synthetic the want little to demand a

So out private and prudent a margin. it's approach. returns. operators some this capture can There nice is to some under-levered and They opportunity for hedge of capture front get in margins

and front are and So it them, that than long-term it's that corporate we up end and and they're appreciate because a a we ready, we setting seeing are of there, debt a all more that, capitalized But down There's and in privates of to are but certainly the be it. paying exposure durable have better like and structure. of publics. and ones they'll number getting larger nuanced at the this out handful all of

are So in for E&Ps healthy the us term. long good

Pearce Hammond

and this Great. and I CapEx lowering or $XX apologize year my That's the color. the prepared congrats in follow-up, on maintenance about by the if this And Q&A, or excellent I missed for but then remarks in XX%. million investment

there. the what curious driver Just was

Wilfred Chiang

maintenance was-- sorry, capital? I'm

Chris Chandler

Yes.

Pearce Hammond

Yes.

Wilfred Chiang

both of take don't why you those? Chris,

Chris Chandler

Yes. This take Pearce. can Chris I those. is Chandler,

sales Project. from Connection there. maintenance our $XXX reductions that to Let's piece and captured the is other by areas, improvements, prior But down And of quarter. the number that's have, then quarter-on-quarter over factors, reduction was able time, main primarily the where asset programs is few to bit but capital years and is been Byhalia from There's The bring some which start smaller year the been that ago. capital. in million now, a range in a unchanged on investment to of of we reliability outlook it quite full including due the and efficiencies capital, it's maintenance with maintenance a down driven cancellation

helps. hope So I that

Pearce Hammond

Yes, it does.

Wilfred Chiang

not thank is really but we've streamline mean, just we're organization the the efficient I tremendous again. as Financial is progress been CapEx, a to how this of you operating single at maintenance Willie made as every acknowledging I we CapEx, It CapEx, that's can. discipline, for there. Pearce, Hey, looking dollar. be and focus reinforces only

Operator

Bernstein. Our of Salisbury comes the Jean question line from next Ann from

Jean Ann Salisbury

it Does the optimal or capline like have could does not Like Byhalia cancellation or of from impact like reversal? that? you Patoka anything any more the work on take that

Wilfred Chiang

Jeremy?

Jeremy Goebel

Jeremy. Jean, Hi, it's

the project capacity its from It heavy-based South. project a a think there's capacity to that Patoka for some be move. could own. will open some on Patoka more timing And to could between works heavy positive longer-term available incremental and Patoka shippers largely be and I other up free There's So negotiations seasons capacity and of for on capline.

easiest I way think that's the say. to

Wilfred Chiang

flowing, the as there impacts its be to that volumes But will there Jean starts going time. once pointed that capline Jeremy stands less to on to own, be should Byhalia Connector in that some able be expectation out, that at has capline right? in our clear, just project And point get project So term. Ann, additional near return enough is to The volumes drive itself.

Jean Ann Salisbury

I'll I my level. keep That so super high Oryx, commenting question, And makes then not you're on sense. know

really slide connections many have helpful downstream shippers Oryx showing You this how would gain.

the frame that a thing is generally, time that more roll you expect switching medium-term the off? of near-term really to be Just you can downstream would start there as MVCs or give Permian? to that in Is

Wilfred Chiang

Jeremy?

Jeremy Goebel

Ann, switching question clarify what I just downstream? understand to want of I what the is. can you Jean you make sure mean

Wilfred Chiang

of Maybe it. stab let take me a

capability downstream right, Jean? connect, on timing was question to Your

Jean Ann Salisbury

goes understand everybody or potential ton the that a would obviously trying too through obviously be has to many now. transaction you're and downstream just more, Oryx, big I'm it's assuming that be if adding if could a right near synergy basically, that Yes, term, options and of to MVCs for and obviously, everything, you

to to So be MVCs more in start off? or roll years X it's that going like X those

Wilfred Chiang

Yes.

producers incorporated better where done is a able we've be to of the be going much on what JV, it's connectivity to is our flexibility mousetrap any to we to So and the assumption on get that to haven't they be the our volumes And serve into to to. get need to the on JV able ultimately, right? point

Operator

of from comes line Sachs. Lapides question next from Michael Our Goldman the

Michael Lapides

your are end the Houston for you or the other destinations rate of curious, battle area Corpus shippers and terms versus year Just about of of barrels? flow year commentary about the the year thinking Permian want end in production. the exit where between beginning Houston producers How and to of next and

Wilfred Chiang

I'll that to markets. to dynamics multiple being it's talked able Willie. that much to the both. go about that, There's goes flexibility with always to have is nice our have What Michael, so start market this to on we've system access in

I for each sits you rates out it think because there. many are market difficult give it'd exit variables there's to be us today that as just too to

Michael Lapides

it. better export And to barrels shippers want get you a guys boat? view which think Got opportunities on have their a who for of do you offers

Wilfred Chiang

Jeremy?

Jeremy Goebel

Jeremy. this Michael, is

street the public a I market, the might period a for answer, think have leaving data day barrels the million a think there's indicate would guys the across I that of that's over different long been X.X but Corpus time. and

of and and both the in have go Houston barrels incremental across pros dock. market cons, a I volume absorbed gets So lot think local the

Nederland some see you'll I as St. at you'll think so well. you'll James, X some time, see see over markets, at those And

as see be a St. to because focused the barrels are lot heavily need oil but to a I Coast, depending what constraints where all clear and on And crude a most markets So its seems I Nederland and and Houston across but logistics located diversity logistical different smaller for out multiple pan the of in there's amount the across of Corpus then you'll there's James. will ultimately on what think think exports. them got exports, has favorable the to Gulf

heavier the this, that. know already like the medium barrels probably U.S. refiners in grade, but to the run You

go exports, So will typically lighter think to the about when you volumes the water.

a factors has also molecules. that on So take the into factor-- where to decision that the

Michael Lapides

Understood.

Just one think one. dynamic Wink-to-Webster that service, in last is do When fully changes much? you

Jeremy Goebel

Jeremy. current the on market. Michael, is this that of buyers A in Wink-to-Webster are shippers lot

like to it's when to almost So barrels your Houston start moving the Midland. flow, from purchasing

a it's and barrels how swapping move. move So almost the where they of

in opposed it this structured market changing case, more be refining There export. domestic ton. an to in don't incremental incremental I TNDs as are the way time, usually, Houston a it's exports. see so the benefit a from some demand to to over But meet And could

Operator

question Sibal Global from of Sunil from last comes Seaport Our the line Securities.

Sunil Sibal

of clarifications. guidance on segment. just the the couple a on So Starting transport

in Is full So EBITDA QX any segment. fairly some is guidance second half? significant or in downtick you in items, And year cost your $XXX a moving from the that QX that of number. in number which are you've that got in etc., million implying MVCs did because that it

Wilfred Chiang

you Can the question, repeat please?

Sunil Sibal

close million, look million So the quarter, to transportation million. second half. then in year when guidance in did $XXX already the full you segment, first you specifically of I did And at $XXX and $XXX the

it segment from a seems suggesting that guidance the So half be in that QX second downtick in like is there your will the numbers.

in that MVCs of transport I curious, is function or any segment factors? that a any just QX So you was the got in other

Wilfred Chiang

with do the it benefit has also MVCs It's transportation QX a cost of the on deferral recognition combination payments and the of side, of and we on side, timing to some EBITDA. of where captured the and from

Sunil Sibal

on Then break-even. the year guidance segment, facilities of full the

like headwind. the So undertook, And a were challenged on that some-- had of seems negative side, you clearly, a it because of NGL hedging bit in you was spreads the the there XXXX.

think segment, should years? think stay we about in contribution? where forward or when So that going are if segment XXXX of crude they differentials in terms the S&L we How forward about

Wilfred Chiang

guidance better you for in I will That think wait much give you should clarity on our February. that.

Operator

remarks. I back session. call Q&A closing will now to our for turn over concludes the company That the

Wilfred Chiang

We for wish in. in. Plains, for nice of a much evening. is and very Willie. you and dialing appreciate you interest dialing Hey, always I Thank this Thanks support your

Operator

Thank today's call. you This conference concludes for again participating.

You may disconnect. now

Plains GP (PAGP) 3 Aug 212021 Q2 Earnings call transcript