PAGP - Earnings call 1 2022 | Plains GP Holdings, L.P.

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Operator

Good day, and thank you for standing by. Welcome to the PAA and PAGP First Quarter 2020 Earnings Call. [Operator Instructions]. I would like to turn the conference over to your speaker today, Mr. Roy Lamoreaux. ahead. go Please

Roy Lamoreaux

Good First Chino. welcome Plains to Thank XXXX afternoon, Earnings American's Quarter Call. All you, and

Today's slide financial materials where presentation under is forward-looking following posted on the disclosures Important and will be regarding section today's replay call. the and Investor Events of audio plains.com, non-GAAP an statements also available News condensed Relations website is Slide X. reference The measures are and located X and on Slide are sheet an overview PAGP -- appendix. provided or consolidating the provided on of balance for today's call in consolidated other

Executive and call and and hosted Today's members also including be by will Officer. Chandler, for Financial Swanson, Willie of President Chiang, Vice available Chairman team will Q&A, be CEO; Operating Goebel, Accounting Chief Executive our the now Other Al and and Chris call the Chief Jeremy Willie. and Officer; over President will Vice Commercial With Senior Executive Vice Finance Vice Herbold, to turn that, I Chief Chief President President Officer. and Officer; Chris

Wilfred Chiang

you, afternoon, Thank joining everyone, you for Roy, and us. thank good and

business to is solid to a reporting to year, EBITDA the adjusted expectations. quarter first of off our previous our $XXX million, PAA is above strong which start While attributable

constructive and to we the Given by upside. and This NGL year bias our and the quarter commodity primarily the to our associated for fundamentals plus by price year, the a crude million within $XX segments. higher performance both the guidance for of billion environment $X.XXX are a with balance full our benefits EBITDA increasing outlook XXXX adjusted or of driven minus is

the outlook full quarterly our Al in detail results will on more his of portion our year call. and provide

base more energy. shale, role energy the spurring focus and our We hydrocarbons The importance labor and role American in highlighted remain connecting North of strong industry need a produced for of play energy and will reliable in model critical the and access decades with demand. call on innovative everyday a with North specifically, the will a life, skilled force plays midstream resources, the global technology. business Current and a safe, responsibly that asset abundance to believe supply for Permian, capital, energy global integrated American and events critical have renewed security reaffirmed

year-end on shown day levers year-end returns. day in continue In maximizing Slide 'XX. growth X, barrels on which on to executing As of XXX,XXX to systems an gathering for production barrels a our we Permian, 'XX we at are incremental per the least our of XXXX, tariff unitholder XXX,XXX capturing expect approximately anticipate of we Permian

operating to of a our added Permian flexibility of expectations As in contracted day incremental system barrels our short-term and result an our versus volumes full year pipelines leverage, XX,XXX February. long-haul we have a

years. long-haul segment, our and production capture with fundamentals, and NGL combined and As the price nervous next additional over on environment. Permian expect beyond systems. meaningful optimizing growth higher operations and we 'XX, production both the growth -- we demand improving several allow continued Western to drives focus our debottlenecking supply In on in gathering existing our volume This our expect facilities NGL over growing a continues Canada gas and

government Brighton storage hydrogen recently This of by station in facility. strategy Additionally, adding Atura storage directly generation larger hydrogen announced study, Windsor, recently Power, subsidiary and aligns capability the our Atura opportunities which cavern the Beach emerging we Ontario. capital-efficient with feasibility with Power's the of would could result at is such continue support which pursuing MOU energy Ontario a outlined conduct as province a Ontario to salt a

this and returns. cash significant maximize balanced will free allocate multiyear expect we flow Regarding strategy, unitholder manner we our generating financial a to in continue cash to

capital disciplined repurchased return last of since cash prioritize have focus distribution equity $X.XX continue cumulatively and will regard, and annualized investments. $XXX month, common announced In we debt to increase that reduction program while our increasing near-term also inception. repurchase approximately equity million we to per making Our a holders unit under

X, of a X environment. tight against reduced all demand Slides down underpins the recovery on is demand multiyear price supply demand at causing backdrop higher balance, in investment multiyear global and upstream contrasted supply tight which hovering -- a resulting and of inventories shown commodity drawing As and in lows,

tightness conflict increased The has Ukraine market Russia volatility. exacerbated the price and between further and commodity

gathering Permian, distribution benefit meaningful and crucial integrated the and meeting position Plains' be to This operating contracted in expect highly and is cash acreage, to model free flow further Permian key other approximately shale coverage to with will well-positioned with total returns equity and that continue currently Permian on the strong leverage and longer and supplying our North long-haul target located to returns producing capacity generate our us of X term. Furthermore, demand significant pipelines cash as with production, million our in supported high well reach our U.S. as We mid-XXXX led infrastructure rigs strong near holders unitholder existing global to meaningful levels and leverage of by energy cash horizontal drive system by increase to basins. business flow. both system critical multiyear half and dedicated acres Permian American

over to I Al. will turn call that, With the

Al Swanson

Willie. Thanks,

Slide through our EBITDA which A on of volumes includes XX. $XXX We located reported performance. and segment is X pipelines. NGL year-over-year EBITDA first which detail the and and Wink-to-Webster quarter-over-quarter walks, of million, more our Slides and XXXX guidance adjusted provide seasonality, summary higher first the quarter contain adjusted on commodity prices of X startup and benefit Capline of quarter the X

in as loss benefiting our opportunities. guidance volumes pricing improved system as merchant our offset year factors, billion. oil crude Permian several $X.XXX our volumes or partially by increase EBITDA reduced in business allowance higher driven $XX is of and full including on by million minus and segment, NGL our by The XXXX improvements well increased pipeline barrels, the increased spreads to including benefit adjusted We've plus frac

release, our with been associated class in settle recorded agreements adjusted in the to X impacting from treated and Line reached principle as detailed XXX lawsuits expense our excluded million we action selected which a Line EBITDA. incident, has net regarding As and increase item comparability XXX $XX an earnings in

The which a substantially be insurance. by in is proposed action federal lawsuit million. first is reimbursed be pending for California, believe to in will court $XXX settled class We this

other The approximately matters Court, payment second approach More settlement Line financial fees An reflects XX. is Chancery Slide our set on through flow the accruals provided pending current free terms. and in in regarding remain on in a includes XXX that to the cash settlement release. near nonfinancial and profile attorney's Line forth debt focus is on overview a $X of update in of XXX our Delaware are the a included the term. derivative the suit these and press We focused and changes continued of information the it proposed million reduction significant earnings allocating balanced generating in

excluding insurance the XXXX, our For is our XXX flow reimbursement, free anticipated and of impacts guidance of Line the the settlement relatively cash estimate timing of unchanged.

by we Given effect timing, guidance of reduced $XXX million. this have our

allocated unit million. the our February XX in XXXX approximately discretionary Importantly, guidance reverse and Accordingly, the are guidance, minus which be $XXX amount X.XXx. maintaining cash year-end of next plus repurchases to over or leverage our what the for from to is available was to at impact we XXXX we expected remains months, indicated

of million. program outlook is capital plus capital on of summary capital our over potential is and or capital allocation quarter XX. minus the is of $XXX minus remain first X.X investment balance repurchases committed the notes of for XX. A $XXX Slide common to repurchased plus summarized million $XX available for on We million of XXXX and million last million, $XX year. Our the In and we from expect framework million senior discipline $XXX repaid consolidated to unchanged Slide capital or leaving units discretionary up and maintenance quarter,

feedback, segment, historical Willie. to that, are included appendix, NGL improved we and from have additional forward-looking both a visibility new to Additionally, and the our today's perspective. designed in crude turn call which several oil back to and over I'll in slides detail provide into With response

Wilfred Chiang

Thanks, Al.

a long-haul off constructive a on is start volumes very supported positive business XXXX, commodity favorable in systems. and to increasing our and Our JV price environment fundamentals, by Permian

remain on Slide against we executing to such, continue as XX. As outlined goals our XXXX well-positioned

longer-term opening Before like share comments our to on we've some I'd how and positioned beyond. to outlook Q&A, call the and XXXX for ourselves

believe Permian be our Permian the earlier, the of meeting oil critical demand. current will basin. we out I global XX stated Slide to takeaway against capacity increased production As shows outlook

meaningful benefit per update of XXX,XXX bias incremental growth year. slight barrels roughly appropriate, currently XXX,XXX outlook per years, day to our if and this Any later the over systems. day several will for barrels X we million reflected increasing barrels the February per positive forecast, have a to that, should We by next year, XXXX. production production growth above our production Our

a million we current is Permian takeaway, or at Looking barrels barrels XX% greater the slightly day, X nameplate of is the capacity. which, day efficient believe X capacity a million than roughly that operating approximately

will haul capacity to As and level. the production spare tariffs return and should to normalized a begin tightening continue increase, to long utilization water more

a prompt approximately Coast the to begun in to we've Gulf this $X.XX barrel to barrel to barrel. XXXX spreads of tripling U.S. XXXX in to month water forward fact, $X.XX as indicated markets, approximately approximately today's the In in the doubling a per Midland by from see of $X.XX early and innings

in base in key CapEx point across So basin, system a pipe have minimal ground with and Plains critical our producing meaningful asset the a is, we with available capacity my has requirements.

benefit production business current improved accelerating safely, to it's model capturing Our and to whether will current move from allows beyond and markets margins today. multiple or any us growth additional asset base from our energy levels market long-haul reliably responsibly expectations, and integrated

taken sales XX, XX% numerous excellence, in be for to XXXX. asset acres. years, long-term the recently, a gathering dedicated to business in on than over strived $X.X greater is environmental asset optimize any our XX by recent base, our billion illustrated metrics most our to completing and ventures, X improving environment. of and JV, As JV, continued noncore additional successful We've created alignment our business by safety we've and operating backed joint position which forming We've Slide through since steps Permian system strategic focused million

our business, continued discipline, and high-return some commercial throughout assets debottlenecking optimize the future with assets while leverage through facilities NGL alignment continue operations key creating In to our capital have opportunities. exercising in and minimal operating requirements. capital we further evaluating are Furthermore, investing our we legacy

mid-XXXX. free flow leverage and we significant -- to by XXXX targeted achieve expect generating our Financially, cash continue multiyear

rating We a have overall positioned investment-grade ourselves commitment our capital returns holders. balanced continue maintaining increasing our equity and to including our to to taking allocation approach,

we even coverage of distribution in strong giving believe have for are we on at we into meaningful a the current EBITDA and now capital-efficient summary, growth well-positioned approximately focused returns. While capacity future. growth and are our expect and levels, equity XXX%, In we business, us

with Roy. over I'll turn call that, So the to

Roy Lamoreaux

Thanks, call Willie. A XX. summary allow today's on the available to from us of Instructions]. questions this our time are the provided participants from tracked address as as many top This takeaways in key will afternoon. [Operator Slide

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

Operator

Instructions]. [Operator

comes line First the question from Tonet Jeremy from JPMorgan. of

Jeremy Tonet

of more guess, wanted off, be is I color, Oryx bit just progress kind helpful. on I And guess, Or integration how would the there? there to opportunities? new going a start a commercial integration bit leading with you see, guess, the to Just I more. do and

Wilfred Chiang

don't Why cover you that? Jeremy?

Jeremy Goebel

from JV, is as the it's -- approximate based we the Thanks, a schedule. This where capture activity Jeremy so XX% standpoint today, an Look, Jeremy, ahead Goebel. as just well synergy from formed it's standpoint, if roughly question. to of when had on outperforming expectations for we

more sure but to closer see finalizing opportunities, and and integration but safely customer process, making efficiently we're getting the are providing we're we We service. operating do

and contracts connectivity We're better more it's to position. as we I offers with say continue engagement expect would but are actively talked Customers I'd going to it. planned dare with in about we'd optionality. more about, extending well, excited customers. and to grow It certainly that say as than service,

to and we'll to be out customers for of growth the the the look shareholders borne ourselves continue well business. and it's the to prove as to think I JV as good customers, So

Jeremy Tonet

very guess, then evolution energy And opportunities. that's it. towards, Got helpful kind of there. pivoting I

how real? assets? guess, energy at You existing the guess, see guess, could that forward, to I be do opportunity out point? the talked with set there. hydrogen with other hydrogen something the wondering, you that's I opportunities or whether I path figuring about storage opportunity other And there just And this What's evolution deep converting

Wilfred Chiang

Jeremy, this is Willie.

Chris a and I opportunity. me Let make about of couple the specifically comments, then will know hydrogen talk

do asset we particularly areas the and got emerging our around competency asset well is as technologies base as As in that assets, we've articulated our integrate we've base. pretty before, existing focus broad of a our how on with

So the it's hydrogen existing do Chris, in piece? you connect have. systems how it when think the we you things, we about cover can with

Chris Chandler

energy, about is concept Yes, it excess there a particular Chris this And the to you industry It's This means underground sure. can Chandler. use be hydrogen, salt renewable well-proven you is opportunity obviously, been used hydrogen to hydrogen. is done decades. for case, create energy. store What's across store a in there's in when our technology. exciting can as that And the caverns. for It's renewable can

blowing, cost sits right the sun caverns And shining door be hydrogen night power Ontario could or repurpose existing that with when to next In the isn't hydrogen. or store caverns we gas be generate develop can to our And assets case, Atura existing to turbines used then like efficiently boilers. Power Windsor has wind to of adjacent in power our that facility the the the able new middle or isn't very Station generation today.

So particular storage but that adoption. just location. we're can our Canada, that with see applied across be technology for interested areas position opportunity the we evaluating Canadian certainly in multiple everywhere. opportunities particular government in it beyond that in And technology And similar Ontario,

Operator

Next Michael Fargo. one Blum on from the queue Wells is

Michael Blum

E&Ps, volumes into about the on seeing peers So and of message you they're also systems it discipline. midstream the I now and or of your talking growth. staying rest public in first volumes Obviously, of beyond. the ask many are your capital and wanted to higher year production about across But terms seems

And just that. wanted or you activity seeing are So in producer try to any reconcile to change messaging?

Wilfred Chiang

Jeremy?

Jeremy Goebel

Michael, is in say What we Goebel. is with the quarter. stated Jeremy this would I it's consistent first what

to volumes fourth exit quarter somewhat You production largely are that quarter you soft, the it's integrated, due due year seen We've cadence driven saw the private by as slower weather, in somewhat the total independents to than but the completions. were of last And somewhat and January into about increase operators, surge profile. second. first talking December,

in declining areas in So other growing are they and the Permian.

Permian had in But So basin, where we we the see a to seeing by on are and large, basins consistent, what trend is other them. with based whole across line as basin half dedicated above, consistent we're said. talking slightly activity about. as what thought. within producer the consistent we that Willie mix see acres is with the that's was And we the roughly And on Willie it

So good insight. us that pretty gives

So far, it's tracking.

watching I'd getting labor are say things we're manpower. and seems gas Natural takeaway the to solved. be

when Willie are level the far there -- good. So some versus governors were so on like gets of a And to some so growth, expected at but into the beginning this quarter, look the year higher from that positive next we probably brought given came where fourth have said, bias they year. they the we activity prices

Wilfred Chiang

but be the piece barrels as going pull is Michael, activity back-end momentum into about, And would additional thing the lag loaded, of is, XXXX. is some only to you most the might add in, I Jeremy talked important that

Michael Blum

about ask segment. NGL guidance, wanted specifically Other it. to question I the was Got just the

could drivers that if through bit? understood there Just you how is spreads. the driven to much talk versus little a make wanted sure Just volume just of I

So...

Wilfred Chiang

Michael, there, give is X actually X that I at how you in which Goebel of -- of answer slides or X through look and the I as walk of do a some to the ask your we kind slides put business, So Jeremy? like of disclosure to question. I'd we some what we've think perspective additional may are the got. to think feedback Jeremy feedback And back result number

Jeremy Goebel

the XX, an If of overview Michael. everybody flip can just assets. Slide it's Sure, to

as first Sask, in we NGLs we that east, gather to Fort west is far see the we in move general on think the which Edmonton I near West. thing the

for So transport we Sarnia. that That's Y-grade third-party buy at them further east well aggregate move gather actually third-party market. some for We the and supply, we Y-grade additional of to Cochrane fractionation from we fractionate, as and business. store part as some

the whole At in in contracts fractionation NGLs PPTC that's the further markets Y-grade gas, fractionate We will keeping for whole basically into pipeline straddle or east and extract pull Sarnia dot AECO for exchange -- annual out we Empress, sale. in move our plant. some sell local that largest over, which further on keep and take is NGLs there on to will next

how it So flows. that's

about Empress, So lot the And Sask third-party for a that we get that keep St. part talk where be business, Clair, about straddle, third on the when whole Cochrane then we party. the that's of talk Y-grade when those Fort contract. of Windsor locations and would and of bigger -- around in the we that's X

then could flip Slide if you to So XX.

Slide look the for breakdown. sense you you a gives at If XX, this

So roughly the of assets a is think assets and business the fractionation, of remaining East and XX,XXX XX%. at that coming transport off that with in storage XX% associated roughly around barrels fee-for-service Cochrane the straddle. the and plant. X/X Empress The that's at the storage X/X West, around in day as And

main So driver. that's the

straddle, the So associated rest whole that keep is the the it's with business. and fee-for-service XX% the construct then

Wilfred Chiang

that does Michael, help?

Michael Blum

very Yes, helpful.

Wilfred Chiang

And that you on profile there will give of Slide the information additional that XX there's we've had. some kind hedge

think so better it business. to our allow will I folks understand And

Operator

Salisbury on one is Jean Bernstein. Ann queue Next from the

Jean Ann Salisbury

kind XX%? no really efficient operating Permian Slide drag-reducing about of with takeaway about wanted something XX your to your slides you added. of talk or else? appreciate ask agents growth that kind you've extra what with capacity chart. I mean that I Is and Can the within you by number

Wilfred Chiang

it is. Essentially,

flow getting less efficient. rates start start you get on into to higher you the As pipelines, the

people was opportunity back roughly if would look certainly, in times A periods, in earlier and XXXX, time when at the efficiency that capacity. point you more were very, go be normal XX%. very the arbitrage you utilized and So significant the there

Jean Ann Salisbury

Okay.

I maintaining you of just -- is a fair it's you the of rates say target concern, kind versus So that the X the people's if million barrels guess, have now, that would day that production? right

Wilfred Chiang

that is updated growth. a increases, upward have production guidance Jean than of the this haven't in upside a -- on XXX,XXX sensitivity. bias. day the and our as we the what's others we it's we roughly shown for expectation I that there well about shown get production. of what's on as pointed gathering that's -- profiles higher in Well, There as is us show we an Ann, what there to out, some And would our barrels out this will per that year view was do, It's is think still participate with systems. that are the growth And clearly slide hard systems benefit for way, to is our as any intended other that in

So in starts -- that that to forward component arbitrage, to, comments back increases, definitely allows the And participate other a environment. what of earlier, back the my get normalized and the growth. would to we more call, -- us is, volume utilization that it I out then expect would as widen as the market of the more

then as that rates. obviously benefit and go -- with we we from forward would spot So

Jean Ann Salisbury

Yes. extending? a as just And follow-up here seeing guess, and you on any you on extending and contracts? blending guess are I are that, blending That from I and makes in similarly, sense. And interested customers here interest

Wilfred Chiang

why about? Jeremy, don't talk you

Jeremy Goebel

of Jeremy. is I'd it's Jean a Ann, things. this say combination

in discussions at deals. active We on spot and market rates filling are space shorter-term

shorter rates then rates. the And we at enter is keep taken rates spot next those what normalized closer it when those and to So current Coast is get the of or dialogues Gulf view we our to expectation year, most higher. capacity in through to

into deals. time right long-term not now So we the -- to enter is

what to We're it's current a -- market doing they're step looks. some, but match the

and year, level. us some It's operator, us side. do in those But the up to you blend not $X.XX on other with a look locking that when the our to you step -- I the comfortable they're on some when patience extend think then be $X.XX and for we we're tariffs and month-to-month. larger maybe gathering anything of may about talk $X.XX-plus that on very you contracts, that both So than

term. we align to for those So longer continue extend the to agreements

but and the comfortable we're have customers timing. just have that So than around when happy both extend make get the it's a have we And system volume way, sure said, we'll like next a and today. those matter rates. look on aligning a probably very can arrangements thing before they on the we and they're to today, on It's system. we're it very aligned That dialogue space, constructive can year the we make we the with on we that, of they the longer-term is sure

Operator

on of is the from one queue America. Neil Next Bank [indiscernible]

Unknown Analyst

useful. looks like on that on a that as well. utilization hit rate. at is color and Just XX% you upside -- with Slide in Any Very the normalized XX It case, follow-up you're XXXX that what being the up should talked do the about rate you is? more, XXXX that or be? you head with $X.XX you But normalized I rate know XX% expect the about forward against when rate that what curve.

Wilfred Chiang

Yes, Willie. Neil, this is

a of binary one think and What different achieve you purposes us ramping we've showing certain gets see a capacity rate. you'll increase. start the I this is an tighter, it's you you seen a don't tariff So equation typically as and up to start hit is of point where

gets and past. The round XXXX. of more last perhaps than you built the argue maybe were to and is higher if challenging. pipes, have might been would when going that the some be, to build what were that more costs as seeing You a build the rate pipeline, tariff in And you cost. one new forward, with it to what about that pipes we go a it could supply by And be -- and to get issues increase. in what issues, then don't have permitting has ultimately, really new you incremental be steel you XX% and before think chain the you it to expect to set And start

adjustment even tariff might price might some be be. there what the upward So on

have you do on Jeremy, to anything add that?

Jeremy Goebel

Yes. No.

offered. And assumption. other on I that's in is to think are what correct based going services term, this origin, Willie be

market -- to on forward that, between getting industry this. more indicating and with comfortable constructive healthy is the and a dialogue the speculate that's but more not something So operator. the a carrier the is And prefer we'd

closer. So longer-term as we'll That's rates view. get our provide further we guidance on

Unknown Analyst

That's whether maybe just being the control crude, of a some blending the right close the day the ways able XXX,XXX drivers follow-up, able cetera? you of kind what or now, could And et walk a short-term you control perfect. now? upside to barrel that commodity to as long-haul of barrels to through it's through the maybe for pipes, capture are right you're Just

Wilfred Chiang

got pretty would There allowance. -- system. And of immediate -- I we've a we've is got process benefits a very is higher what environment you a the priced flexible loss tell

increased We on higher have an -- price it's a capture that.

So that that's something easy to be quantify. would very

blending, market lot pieces really a arbitrage, storage contango other The depends on issues. between of

So to those the to Jeremy, that out that capture opportunities of that over point being to are focuses -- period things specific out organization long capturing anything point there, we might a be opportunities. on we other have than are add? when able a time it's hard whole we

Jeremy Goebel

Yes. is the from that's activity I'd long-term more yields standpoint say that an more of other activity, just dedications, tariffs. piece out with

it's tariffs, So higher capture. PLA additional

frac business, obviously, is exposure On the NGL spread there. the

those long-term tariff We have the also dedications, escalators. have

there's of that So it's that. -- functions capture number a

some operations capital a there's there. to insulated. cost additional by budget, extent on smaller it you But where side, budget that's a large if is having have some Now the capital of offset cost

inflation from prices. Willie, I a just completely So those benefit are or supplemental couple do higher we agree ways with of that

Operator

line Brian UBS. Next Reynolds the from is on

Brian Reynolds

raise. on just question. guidance million a Maybe The guidance $XX quick follow-up a

haul really volumes no roughly curious, of the NGL it relates just -- terms with EBITDA long in is gathering just Just Permian in contribution? the to kind in change segment crude of

Wilfred Chiang

additional there let were that, added that. a in but shorter-term Al to We our done I'm that contracts get able to guidance some about talk number. going component to is long-haul,

there it's I But formula Al, it's it's the to make are sense frac there, opportunities a in NGL, add? as at anything not PLA So components volumes I you well some in and there. sometimes for can point you the both -- crude that look in said been different reinforce can't pricing short-term partners. to -- able the volumes add impacts right, if as it would long-haul what you're spreads. earlier, makes is and to just on We've

Al Swanson

No, Yes. you it. covered

I partially lower think crude so you more opportunities the PLA offset up merchant summarized by positive commodity-based Canada. just positive volumes, in NGL's pricing, had it, primarily

Brian Reynolds

It barrels a deficiency Great. the your dive guidance And XX,XXX deeper looks then in barrel a But that volumes per maybe saw the XX,XXX you're XXXX. segment. revision the color. receiving like I guidance. appears for day day roughly of little payments bit long-haul the we into with updated upward in long-haul appreciate just to it per

anywhere 'XX benefits with Wink-to-Webster above we talked you call, up the last was the those forward so maybe years off spot of years XQ X.X about to potentially where soke curious, XX,XXX was On I the excess X of cetera. guidance ramp, whether that kind could get kind levels Plains? and just it of update with matching that XX,XXX based a from as those to for to relates to for Permian et barrels the MBC guidance XXXX pulled the

Wilfred Chiang

question, the your barrels trying Brian, if I match understand for barrels. to up

are long key I helps that is isn't It able barrels were a point anywhere, additional with those capture. tied volumes to haul answer shifting the think volumes we to the if your on question. of

Brian Reynolds

of relates it production middle of potential of year above outlook of MBCs? as next to inflection getting So end earnings as of same off of to year call based kind Permian the terms kind just next cadence last in the is the still

Wilfred Chiang

trying show regardless additional the there's volumes. is MBCs, with what understand -- Well, opportunities if that XX we're it's your of I capture question, to to

in slides the So when a capture then opportunities a piece another barrels in Permian So we are our day present -- had on day an clearly, the the catch sector, are on that what versus system, opportunities of got we'll we of gathering XX,XXX on which we've the that's totals capturing. opportunities barrels gathering the additional Permian a growth that right? other themselves. XXX,XXX February, And gathering

was of So additional to the our call guidance upgrade comment think MBCs no number, if able were That's there's barrels. for been want you've opportunities made would fill walk in the but have we there that guidance that always up, production with that out you don't catch. quarter on. part MBCs got just people additional about key And be until coming away capture fourth the you volume, it volumes, opportunities I additional this to was if -- mathematically, capture theoretical there's The match is additional mathematically Plains to point, an and volumes to additional to right?

Operator

from Next Followill one is on Rebecca U.S. Advisors. Capital the queue

Rebecca Followill

on this going afternoon. Just a lot

decrease So How if capital? was was $XXX you And Line much that in XXX? working flow. could free cash just much on of clarify million the that how again of

Wilfred Chiang

Al?

Al Swanson

Line assumed as XXX. we will reimbursed modeled Primarily, and there the time believe We ultimately the insurance. we and by between time pay we're timing be it

working some assuming modeling offset are the we're in capital roughly the that company. performance by We stronger increased

Rebecca Followill

does bleed The that's or return insurance payments of this Perfect. XXXX? the year that into

Al Swanson

No, collections that the of into XXXX. some will is -- we're straddle assuming

there will in due So timing. flow benefit theory, in to -- be cash higher our free will a XXXX the

Operator

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

Sunil Sibal

the back for I of to seconds. just couple a Slide again XX go to wanted

February? up, better guidance, been chart, it have between to prices just February between the upside? because components a unhedged rates X guidance Or able current were So moved the hedge of you at getting view the and hedging than in have you your the pie significant is you're the

Wilfred Chiang

Jeremy?

Jeremy Goebel

additional we Goebel. in year, we've we layer spike, it. said. Jeremy is But most the had the this higher a We When two. say Willie hedges hedges. at it's recent the -- combination of actively prices this some as hedges and coming additional volume, are monitor Sunil, see into might rates, I would

Eastern from of markets have Western part is the Canada the So flows outperformance order higher. been to

extract additional all that's So at rates. spot and the we NGLs,

year will some or next sales those this be So combinations. year,

it's at prices higher levels, at prices of combination volume some unhedged of the XX% then securing it's year. the roughly the unhedged hedges on -- additional higher incremental the a which So volume for and is capturing remainder component,

Wilfred Chiang

And spreads we of predominant Sunil, sure, just the is make hedged. XXXX to frac amount --

Sunil Sibal

market And hedge the Okay. unhedged? Or that. deep to also? of enough to kind a that then mostly Is 'XX you is follow-up for

Jeremy Goebel

monitor. of as a this actively Sunil, Jeremy Think again. is rolling it We program.

manage further provide opportunistic we're levels well. do an get it but have once they higher associated, as operation we XXXX. around And as into guidance manage we when an and we're trying capture 'XX, we So We'll to it's earnings active and as -- that. again,

pretty So continue very in -- 'XX, a is market. 'XX deep is it's you but on we but to active. that, update thin there And we'll enough

Sunil Sibal

then sensitivity? Got process that could way as move it. any to you there loss think remind bps Or the you is volumes that much PLA? about you allowance? the And other on us How lastly, good is get on margin typically the

Unknown Executive

It's X barrels. million

Jeremy Goebel

and X a to year with around we Yes. million It's optimize continue operating depending barrels PLA upon substantial. that. It's million performance, X to associated

do a it's but predominantly U.S. collect So footprint. in the we that, That's substantial. big where it's

Operator

the there And no will further are queue. call now turn I to questions back presenters. over the in

Wilfred Chiang

Yes.

segments, Willie. is there's thank I as going to We've discussions lot know further there's I'll appreciated the our and to just many and run your how had a on know disclosure with trying make and this opportunity call. an I we've on. our we're as business. We've continue transparency close changed So for And always, that with improvements. you participation improve do to feedback. folks, the we the

to and very and forward support look feedback, forward. we as the appreciate Thank we'll you updating you go I So much.

Operator

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

disconnect. You now may

Plains GP (PAGP) 4 May 222022 Q1 Earnings call transcript