PAGP - Earnings call 2 2022 | Plains GP Holdings, L.P.

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Operator

Good day, and welcome to the Plains All American Pipeline Second Quarter Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Mr. Roy Lamoreaux. Please go ahead, sir.

Roy Lamoreaux

Sheri. you, Thank welcome Earnings and All Second American Good to XXXX Call. Quarter afternoon, Plains presentation the where Today's under posted following is slide on and will be section today's replay call. the Investor Events of audio plains.com an also available News website Relations

An forward-looking Slide X. the X. PAGP consolidating sheet of disclosures A on regarding measures and provided is for materials in and condensed appendix. statements Important today's are other financial call non-GAAP are Slide overview on located reference provided balance

call Executive CFO. Chiang, will President Chris and and President, Al of Jeremy Today's Executive Q&A, hosted and Chairman Officer; Chandler, President Herbold, Commercial Willie Senior Accounting Chief team Vice Chris the Vice will by Officer; Vice Goebel, be and including Executive CEO; and President; Operating Chief Finance and Harry Officer. be our Other Vice Swanson, available for and Pefanis, President members Chief

call now that, the I will over With to Willie. turn

Willie Chiang

us. all Roy. Good you, Thank joining afternoon, thank you for and

oil by guidance driven XXXX due outperformance $XXX $X.XXX to billion, in million Today, prices. increased of to of year which we both of adjusted to as $XXX in above segments EBITDA strength second reflecting by announced was higher plus commodity In NGL well both as adjusted summary, NGL We and PAA expectations, results is long-term segments. guidance. higher February above attributable goals our million million. $XXX quarter second crude or initiatives our crude and quarter our full EBITDA and continued This execution minus was volumes our our and our initial

leverage to year-end X.Xx expect XXXX. we our result, a achieve of the now by midpoint range As target of

repurchases common the we $XXX year-to-date $XX of million bringing units total million $XX approximately regards to our repurchased million the since inception. approximately and In program during buybacks, repurchases to quarter, of

and the $XXX greater that balance clarity of anticipate to target a on XXXX during increasing in million sales detail complete we outlook Al his provide on full year. by we're will Additionally, sales quarterly year asset our portion more as our results of call. asset the result of the our

on in activity As fundamentals constructive keen XXX,XXX running barrels energy overall X of demand. meeting remains as to and of our in remain expect of growth production global to American roughly between XXXX. North the the Permian XXX,XXX shale see our Current highlighted exit and business ahead levels XX% forecasts, during and a day are we exit Slide X,

integrated with to activity quality supply well and leverage and to us operating model access support positioned multiple markets large-scale increasing has business aggregation, Our flow producer assurance segregation, levels.

Both well investment. are grow our incremental systems of the meaningful the of with positioned minimal capital to years, to and have customers crude needs NGL of and capture for our volumes capacity next number alongside we

acquisition our Permian Pipeline of opportunity bolt-on The JV this previously from synergies an proceeds expected more in commercial are associated at bolt-on Advantage customary a beginning $XX At additional capital transaction provides JV July, the offset sales. the closed costs the approximately asset million for $XX incremental attractive operational, increase remaining interest multiple. to acquisition the negotiated plus XXXX gathering Plains for XX% than net ownership interest The by costs. closing and mentioned with or on the the of million

expect In gas drive our growing at advance facility. located flow NGL to volumes facilities. our strategically incremental Canadian debottlenecking to existing our we opportunities production segment, Empress and optimization order gas capital-efficient continue towards Western we Furthermore,

continuing our cash to distribution growth as flow that through leverage significant expect investments. takes this to and buybacks next we've free that of return regard to years. into cash continue to account we over cash as to date capital manner in opportunistic our generate progress financial holders With And to allocate made strategy, on intend the equity well number increasing we to while make disciplined the a

We our the coming my We progress strengthening trajectory exit further at now The year in in we've to noted sheet. X.XXx. and at the accelerate target our goal balance to our of the expect year is significant midpoint opening to unitholders which target, finishing of expectation return increasing I our our or high with over made of of the with end us leverage allows entered X.Xx. XXXX improved the As of remarks, at the capital years. X.Xx

we like I'd Al, our week. to over report call the that sustainability XXXX published to turning Before mention last

of the areas sustainability As advanced forward We're sustainability dialogue and proud XX of continuing you and made to of performance. the Slide emissions our in of our these look the reflected we've with company. on in achievements, on appendix, improvements many many continuous we

that, With to over Al. call you, turn I'll the

Al Swanson

Thanks, pipelines, order long-haul higher reported volumes Permian at quarter of our on We basin which of the and on million, allowance to prices volumes pipeline due second elevated increased Basin gas flows, includes $XXX primarily adjusted higher to plant loss benefiting Cushing. our benefit Willie. pipeline revenue EBITDA flows Empress straddle commodity

Slide XX on and provide adjusted appendix our walks, detail year-over-year and which EBITDA quarter quarter-over-quarter second segment today's in XX more contain performance.

$X.XXX guidance X by through our A EBITDA X. increased adjusted located year full summary on million of or plus We've guidance to Slides $XXX our billion. XXXX minus is XXXX

in loss CX+ commodity as initial segment. crude and and spec pipeline result spreads benefiting largely and Permian guidance our on sales NGL prices volumes increased as updated a allowance $XXX the our is Our barrels in of higher oil February well incremental prices our as volumes product segment million estimates, above frac

focused and in of balance changes and our on investments, meaningful not program do Slide remain disciplined outlook any anticipate capital consistent for with year. guidance, the our is our is the summarized we on We XX. May This

our more to of business. a comments few want sectors. our impacts impacts some Generally energy at I inflation how share other the also than are speaking, inflation moderate

program and managed purchases capital through is have proactively materials. Our costs modest, of earlier some we

increased mitigating strategic are on utilizing materials and as bulk which are rebidding. we result As a and and fuel are equipment, prices, orders seeing expected, pricing prices commodity sourcing, higher through services, the and energy higher of we

this said, expenses escalators modest to of continue being All expect a net offset provide to we annual and benefit.

framework our allocation, consistent. capital remains On

holders increasing earmarked strength and and out allocation $XXX flow while we cash to repurchased up sheet equity free meaningful for have approximately million of the units so or common XXXX. balance generating we the are of flexibility. Year-to-date, to reinforcing million $XX We

Longer is will leverage XX. of opportunities. term, financial we summary as with continue business valuation investment as yield outlook, opportunistic equity on well capital to monitor We current A Slide our our profile located be and disciplined future repurchases.

turn that, Willie. call to back I With will over the

Willie Chiang

remain and to asset growth environment, Al. Today's our you, system. in another higher Fundamentals Thank constructive, execution. base commodity well leverage price incremental our solid the quarter operating the of business performance continue via capturing and results perform reflect within and

to positioned meaningful we the cash our build forward, continue to investors. Plains flow to Looking benefit into is very XXXX, of and momentum generate well

the multiyear the completing numerous including Over few last and we've JV; build-out; to strategic performance. Oryx our optimizing environmental and years, JVs, our sustainability capital solid safety, improve continuing assets; forming Permian made progress Plains on our

as Additionally, continued unitholders. to increased our and our detailed we've have sheet improve balance capital in remarks, we've return to

improved Board with our framework look additional quarters. the having to Given I financial of Directors, you and our of thoughts acceleration discussions our regarding flexibility, sharing forward we and with capital the allocation on in plan coming deleveraging

positioning going few the Slides call key today our and numerous XX. and forward. accomplished execution we summary and well provided business today's initiatives takeaways very as of well our believe years, XX A is from last over are we've as summary, and In positioned on

turn back With to I'll Q&A. to into Roy the that, us call over lead

Roy Lamoreaux

for Thanks, the Instructions] open we're call Sheri, Willie. questions. [Operator now to ready

Operator

Salisbury Jean from Our first will Ann question Instructions] with come [Operator Bernstein.

Jean Ann Salisbury

Do Utilization on crude has year-to-date, pipes for forecast Or and foreseeable staying what been Cushing. could Corpus very high to the you Houston than change future? that? this higher

Willie Chiang

very is articulated Ann, We've system Jean as Willie. this being our flexible.

capacity the to are Cactus the our can directly on II to whether not to Cushing. cover want the coast we we've business Corpus Basin. system, power is volumes think So reflect flowing doesn't more in the specific I, through up point down some you because or make volumes Jeremy, her I got as details to question? to of necessarily going about do be And wanted Cactus down

Jeremy Goebel

marginal to international, the oil. now Corpus, crude with is right Jean Ann, of disruption demand chain regard for the the supply given in

markets. to to export at other pricing expect export So we is would efficient most to premium Houston the to see markets. a utilization Corpus

So to barrel. barrels the attract of the going is highest naturally, quality plus price the

we'll So I that. see think more of

other But as utilization those lines in fill, markets. higher it starts lead to to

we markets. get through then and see this as year, Corpus So other remain high, to you'll see additions you'll

see You'll year. additional pipes next some ramps in other

X the this price. because So is step highest it's

to fills, whole the that. And start will boat so you'll fill. as But it see

-- So logistics at a pricing would we from a your and yes, question, expect quality Corpus answer on premium is standpoint. a but to

Willie Chiang

into it volumes Permian probably other one flowing for our to, that as the production intra-basin continues again, as grow of slides, and Willie And have volumes we to lines. more in the go increases Ann, systems. we Jean in saw as we definition, outlook expect long-haul both our expect by some in And do the long-haul in of are you the to

Jean Ann Salisbury

no to going of it or barrel barrel terms versus to just on a Cactus II depends? Yes, prefer it in would that. though that to added fair Is say margin a you Cactus Cushing or

Jeremy Goebel

Eagle others, we're somewhat indifferent the But on margins the the The term if the what there's just -- been to we'll own and on of it's because more lower higher, of Basin have But we're then capacity over X Cushing XXX% the getting of ownership bounce of better. even absolute with standpoint, versus XX% the we see, and demand are tariff on longer between kind Based Basin margins is to Corpus a for our to because at Cushing, as to relative XX% that ownership, Cactus on see. slightly even. and an II. effectively JV Ford -- margin continue

economics, the pipelines So are we're think [indiscernible]. full when but indifferent, you happy, moving, somewhat customers of barrels

Willie Chiang

last utilize. able pipelines, will as flexibility the markets Ann, pretty still the some just reinforce back we tariffs has constructive Jean as on And in there And as the been point. forward the well. the utilization to spreads that in time, to shared increases we've Currently, increase

what may go forward. we say change as So today we

to our the tariff make system If as system more allows much to a that think you've a Cushing sense. got very us markets. higher barrel Cushing, may of to to again, flexible multiple But obviously, go going

Operator

come Keith with Stanley Wolfe our One line will question. of the Research. That moment from next for

Keith Stanley

year be then is on First, Can margin? I terms out commercial more the driven Could guidance say there you on know curious, building debottlenecking volume Empress. volumes versus for the volumes other time? movement that higher And activities. through EBITDA the business of how you've lot you're I'm and uplift segment. and a over seen of in much working NGL in

Willie Chiang

in problems give both. was second We tell it Bakken I'll pricing allowed had either volume. going and as way, higher. the you far unique the as quarter Yes. a weather can that fundamental in difference or but between on some also Jeremy volumes the the view let you Al events that flows more I are

some you correct, are entire as that. as And there. opportunities that Empress, shared optimize complex think clearly optimize we we've you can before, are of Keith, got trying low-cost the we so we And to commercially we've debottlenecking more with about

Al, talk do you Price or to Jeremy want dollars? about versus...

Jeremy Goebel

sure. Yes,

direct hand, to price, end up forecasted weighted but So is market exact don't your this think the hedging proxy. a between on think for have going where and that's one we around frac be necessarily close. our on XX% volume based going pricing, question I XX% fairly year, average I that's I spread to that's

it. Empress vast for complex, as the that recently far capacity through have optimizations systems, we Pembina essentially and have And the the some us border room the expansion capacity, some we've majority announced. As in of flow all of

And on from here Plains' largely from to out. flows west go will east border so incremental capacity to

would gas exported and the incremental in as demand on that to to gets movements, to the arbs to from as than the more markets. AECO go lower Marcellus are the of continue priced production move more those markets, you Coast, other you U.S. long So of create comes West as what out markets net as expect

So effectively, compete some that's the mechanism. with production. Bakken It does

that's was fill across some moving meet large, existing west to that capacity complex. NGLs. would in due uplift voids on production. quarter go to And the and to to east -- But extract seen TransCanada Empress system in -- by to that anything the weakness arb the So additional through we have Bakken that the second of you've substantial

Willie Chiang

Empress. number that? speaking, decisions about a that finalized -- far may Chandler, advance this, just we've on Chris haven't got talk we're generally want we to about you but debottlenecking investment as to as trying of things you Chris, chat

Chris Chandler

themselves, There's the capacity through, capacity today. Keith, we the plants gas in to is the about stated. is NGLs Sure, Chris. this extraction straddle really What like Empress move on there's Jeremy the extract as more plants system gas to

a where upside. So from standpoint, that fractionate provides some really NGLs. operating leverage it's then the we about debottlenecking and And

able and the fractionate Sarnia, both to Ontario to rest at So additional to over into gives or having Empress them those of Empress to the access the but associated we out there. of area us east, the Ontario cost Empress portion be evaluating a projects directly to fractionator. and to instead distribute we fractionation purity the products over our today, at fractionate the we are to to do ship further regional That ship markets,

So for of that and opportunity capacity a efficiency lot debottlenecking around both entire complex. and

Willie Chiang

dollar this of tens hundreds in millions, of value of measured And millions. is Keith, the not

them. return we proceed So they're if high very with low opportunities cost,

Keith Stanley

very That's thorough helpful. and

question. unrelated Second,

But bill component? for will structure as your On if written with it what and the and apply PAGP. initial to would read What's read right who minimum the what's knows now, on it's the could the inflation on have PAGP Reduction tax it security mean if pass your or that initial Act, you not? unique obviously

Al Swanson

this Al. Keith, is

much would than not net read $X -- I PAG income believe that, over have is that. doesn't smaller billion. would Our you contemplated, -- it if income, apply. be it's as

So apply. would we do believe it not

tax back, this there corporate MLP, an our tax think PAGP. issue to If that taxes obviously corporate entity But a tax if asset large as the we we with MLP for structure Ultimately, ultimately, if the issue rates apply has go you not while. paying very stand won't there. think isn't a be this minimum PAGP does up, an

Operator

next our from Tudor, Bean come with Holt. line will for One the That Colton question. of moment Pickering

Colton Bean

see to expect level, to you times. lower I range? excess in high the of cash early number equity leverage allocation towards leverage bound altogether? the the So it's increase know would of also process. toward lower see there decision-making you XXX% returns potential to at mentioned a range of still equity the a your a is you free shift the flow drop move But Or if potential

Willie Chiang

Colton, give think we a year, I'd May. with annual discussions of We When with have detailed and about the have allocation, actually with capital have It distribution we increase more you process our happens -- in the some an Board. usually, that rather April after we update early couple Board. our we a announce things. we in in

momentum things building at it go think that that an our into I on want deleveraging a leverage we've as see opportunity made closer. be ultimately. us mentioned. lot progress and With the going We're our what do little we you'll And look a to forward, to XXXX, evaluate is, of we're this you gives to the we it's going where

our might a expect further. We We little at to be down rate target.

continue because, you to between I also, would then have to And some question increase real And specifics buybacks again, the as us and with be but Board, expect our investments. the won't can that on I our we as that expect buybacks. the support have continue think allocation continue discipline split will that you -- conversation we on then distribution And to CapEx see be you'll I opportunistic. increases. will is to capital and far give distribution to

Colton Bean

Understood. the it frac any And east spreads, Sarnia? driving following you movement also Are spread upside? then Or discussion. from to wider NGL the is the particularly benefit up seeing that's that on primarily down basis

Jeremy Goebel

of all is the above. answer The

our to hedging. similar sales our manage do we So

opportunistic So component. differentials, at into there's some always fixed We sales. will sales be opportunistic but locked there's in accelerate an can

sell do are sell have ability differentials. we when -- at short, Edmonton. at the we basis forward So But certainly fixed we to markets

ability to out facility. rail of the have We Empress the

or ability sell there. out Sarnia the locally have facility to the rail of We

of ton flexibility market and a where we how. there's in So

better Conway, location. there. Sarnia market, a barrels can If is if that like locally we instances So sell that certain can you now, opportunity, for we see instance, wheel to

So it's system. flexible very a

shore similar we Butane, California or markets. have capabilities of across other it

as have be us So at basis absolutely them. frac barrels and can to is and you'll but move large, times structural an that optimized incentivize But by to see the changes component, basis. market would additional the biggest spread real sale

Operator

That of One will the moment of next for Mulvehill Bank America. our Chase question. line with from come

Indraneel Mitra

wanted in filling and Mitra Neel for Chase. II. Basin for I understand is contracting the This Cactus Cactus I to opportunities

is are with Cushing appetite Just blend-and-extend just the wider Russian-Ukraine inventories volumes, high lived you opportunities? given short longer the and the conflict line international Basin for you low Or recently, given need year-to-date the that? a attractive any extend? too demand time people that see What's the seeing at basis for to strong to for

Jeremy Goebel

say long-haul would What in we those This is Jeremy. market our dialogues. our are with Thanks, constantly Neel. and customers, with in gathering customers I is the

been moving way. do $X.XX blend-and-extend the were So are to long-term periods. The we've $X.XX, those want that $X.XX, producers then any the when while is to spreads short deals time now at along cast. didn't watching We for $X.XX,

with flushed cash. they're Now

takeaway It's price. So blend-and-extend. at appropriate more they of don't at looking look really secure an

And so the we're appropriate in what's that dance with price.

will. lot We're update, -- a we momentum production the our When next of securing this some in very value, duration we're contracts demand contracts. in we or We're some long year discussions But discussions but and haul constantly Cushing contracts, we're of have into there's been want around around supply. and to in and we're active. year. Cushing There's extending to we the maximize getting to profile confident in the deals managing absolutely something Corpus the

staying when a about time but -- markets. And prompt negotiate around premium XXXX as $X.XX Corpus that for with there's is call, a the the last longer-term still to talked we deals. better range in $X.XX the But is

and that shippers discussions And existing shippers with well. so we'll continue to as our optimize look and have other to space

Indraneel Mitra

to just that, follow-up a wanted to ask I Jeremy.

Houston to as locations, fees which Corpus pipes have of to move deficiency So presumably them talked actually likely not are and your producers well. alternative and paying Cushing Midland a utilizing to about lot peers

the all interest out Plains' you what's and of pipes in on have where going? of long-haul maybe just almost the you that current market, that describe volumes are in how Midland, impacts can going Given

Jeremy Goebel

there's would which of Yes. is lot and difficulty a flat location say a barrels. differentials in lot of price MEH, I What creates Midland, volatility between Brent, in TI, pricing

do the exports. not Midland So move complexity. better is end clear with Midland. a backwardation election shipments to of see to lot long-haul especially It's People to and the than adds at just at opportunities. That market sell and to that,

to price a it's very long-winded to cargoes. way So It's complicated answer. a process

of they exact lot and the hit volatility you because are with backwardation, So the moving see And window have that's a in find to substantial they pricing people markets. why people can't volumes.

more have markets. some are So different equipped to

at better sell pipe. they a for So capacity lot is move thereafter volume. a a in to that some said substantial as the Wink-to-Webster, exports, for There's to is be the Midland, person seeing just you're has barrels But a on a in proving another more efficient. slack It moves more price, of lot market better quality, moving and beginning, I there. of you're direction. Houston so seeing Corpus

things complex. you'll cargoes these a you moving the of and then get month, a pricing won't is move But prices see when see of whack. a period a for in few And out any days lot

it's a low So constantly inventories best barrels. price crack spreads. has right high price the to and now, move fluid with situation, wins Cushing is but usually and Corpus

pull And since demand volumes. then there's basin more you're the some on pretty seeing seen base consistent you've system business, and export So the from. inventories Houston refining not the to

from just the to You're one volume pipe of displacement a other. seeing

Willie Chiang

we've on strong takeaway got on talking Jeremy key is, about MBCs has that these this the Neel, lines. remember, And been

further whether not opportunity or And to gives not, us it. the paid. or flows still a So it get there volume optimize we

Operator

line come UBS. of will question Brian next the from Reynolds Our with

Brian Reynolds

remarks, in you're perspective. above help just You volumetric customers what competitors? if system. how a growth if from to running and curious to you're attracting could from and bifurcate volumes talked I volumes can XX% Kind the your attracting talk organic of seeing you about perhaps prepared on new expectations, about you think, system

Willie Chiang

complicated got long we've this. the Jeremy system. a lot gathering to let got of to got going And because moving but parts it it's with we've I a JV, I'm intra-Basin, want on haul. preface we've very answer There's this,

at shot Jeremy, it. take a So

Jeremy Goebel

increase in volumes translates activity in to to activity first the across was saying year. system, Brian, Willie clarify what the a Sure. is XX% later

XX% So think for back-end second instance, first weighted. half. are in we roughly is in the the production growth the half, Connections XX%

activity So going is that momentum of second half year the into in yield going XXXX. to the some

that. So I just clarify wanted to first

are have. Plains dedicated the X But million competing Oryx acreage how We that between and doing over we we volumes? POP the JV for systems, have

have continue core We to deals. actually adding substantial acreage We're position, customers happy term. significant for acreage extending are the and to

So and well, competing I to denominator very quality the the to think the the market system. have due flexibility, and access not on we're we pricing lowest that control, we're common the

amount organic would activity well I that what acreage volume. very of incremental for So competing bring when you to you have have But term and a say we're is dedication, the contracts system. substantial

has everything base you developed is merged put we not that tenor just to have. the contract when that we business This the be the So businesses. additive we have organically X to when together

Willie Chiang

and Brian, it look in how the long the intra-Basin across it gathering, Permian and volumes between system at if Slide more haul. you getting of think, X, little a would we're give I the probably insight you

Brian Reynolds

that Great. I extra appreciate clarification color. and all

like talk terms but the attracting As quarter, seems in follow-up, you down of Eagle could during it seeing more you're volumes, my small and activity. is rig about Ford a saw Ford one Eagle what the tick just count

expectations of So about if curious there. further you talk kind I'm can

Willie Chiang

Jeremy?

Jeremy Goebel

Sure, Brian.

for a Ford, there Eagle given else. of starved lot public in or operators operators allocation activities private turnover that and activity. You've capital to to was the generally that were seen Permian more Those from to the more leads somewhere

so seen it's noncore. say you've Chesapeake And

the Chalk what in that So The more Eagle buyers Lower Ford Ford. is the well newer would have activity. as and as Eagle say the We've seen activity. come I they're in Western accelerating with seen we

-- would volume the we growth they Eagle say the in in Eagle to we there. Chalk up continued activity as Ford, the prove an be it in seems in are seeing increase Ford, I'd to So expect and Western see

Operator

Tonet That our with for moment JPMorgan. One come will question. from Jeremy next

Jeremy Tonet

could. refresher, I want if Just quick a

system current volume movie ] -- about pass just there? more in growth Do there would where with with point. that forward at the turn time the at line beat to on into -- the past what's be talked it MBCs refresh you and bottom points that would growth a Or Does move fall the this? [ great. all line, think I you

Willie Chiang

our and additional I been for quarter volumes grows the able The think the at is refresh look we've to in. the numbers would system be, The bring the system gathering with basin. Jeremy, flexible.

those volumes, to is that. difference that So volumes quarter's Jeremy, then you'll to anything we've this long long-haul the get And last the estimate, grow. the the on slide, which able estimate the continue to been haul, see and really on some quarter's on more And increase add? volumes system. the between in shows

Jeremy Goebel

I Jeremy, Willie is right. No. think

production accelerate XXX,XXX you day time you add you're filling barrels as said, or we forward because momentum, bring production, every the that time XXX,XXX pipe. you a period As and of

we So into forecast, it's accelerate going if accelerating we that good still our as about talked feel momentum think we the about but that, you consistent about, next and XX XX with it's year. the months to

And out, as to that's outside tariffs they're proving getting XXXX. in you at beginning the of coast, differentials the look

consistent it's we along. forward very to and to said, what we're it's that And with progress looking period. So continuing

Jeremy Tonet

Got it.

frame, going maybe to mid a I'm 'XX that's slightly if it's it? before, than quicker together, summing time if So ballpark

Jeremy Goebel

see get better that better you between strikes the period to and the into say rate and say of carriers start balance can start the utilizations pipe. a can reasonable a better strikes that reasonable I rate into utilization I estimate. producers Sure. you and get period a for on to balance and for a carriers of a very the a a see you producers mean between return. you and reasonable better return it and I'd that's it the

Willie Chiang

same to system, to just capture hope Jeremy, But with -- of to but the we that's time some Goebel volumes. for capture the what agree I able flex, thing. clear. our to that I said, the to Jeremy saying don't be us of allows we're of wait period have sure make because

Jeremy Tonet

there? the looking I -- just could. versus if last one, how And between the it. at versus breakdown one guidance I'm commodity If now increase Got what's fee May,

Willie Chiang

definitely it. give prices, It's a -- of there's to tough but -- components the commodity higher you Al, tied It's all can volume they're numbers? some

Al Swanson

slide a the year. year whether beginning the one did There's Canada. of driver that most is Yes. from commodity, But up -- in for NGL of frac it's we walk the the the

As Jeremy benefit we mentioned well. as there some volume earlier, are seeing

has it's this the been of pricing and increase, actually by embedded also the the driven a is And part Permian smaller then which in. growth on but volume that side, crude PLA seeing oil we're

I half of rest, it would say would would So commodity-based and more fee-based. be I the over say, more is

Operator

with come Sunil One our for next from That will the question. of moment line Global. Sibal Seaport

Sunil Sibal

into of starting couple million. A assets program? sales bringing questions Or for also? your me, a it the number, $XXX function program, updated asset of the market more entirely function out is on that Is a of the

Willie Chiang

assets, that on across different better to just been with about clarity being and bring it's line year, this visiting Sunil. clarity we've the more folks on developing assets It's really what able

Sunil Sibal

think benefit Or Okay. that's the in have seen still of abate? in year? of about Got curious, terms kind in that Bakken kind of something the folks it. I assets expecting from a was And of you're you outages you some then mentioned impact I the NGL of your remainder Canada.

Willie Chiang

Jeremy?

Jeremy Goebel

Sunil, is Jeremy. this

crude So as the gas production, production Midwest. down. to That Williston went down, oil gas normally feeds -- went the production

storage. was So gas needed more from AECO

seeing order high So but temporal high we're production. was May, in flows and and that still April

Canadian XX Bcf day. production is a approaching

between hovering incenting prices and $X, drilling. AECO got which additional You've is $X

for are order flow. those positive all So incremental

outperformance some within a better was by driven Canada. driven second portion May, quarter April, But activity the But So that. just sustained. gas by that portion of portion substantial plays was is in the

Operator

will of the with line come That question. next from Neal our for moment One Truist. Dingmann

Neal Dingmann

today's buildout. I as curious or versus on potential wonder I was specifically. consider, of got know sort potential of sort market you what available expansion X I of of first assets My type M&A is question you lot how do for these room a view how you've organic I other, existing things. view

Willie Chiang

coming Well, spread, the of a in disciplined say, very it. to are at and stay out lot is going a we're we bid-ask I on that there, Jeremy? But assets bit. look would

Jeremy Goebel

Sure.

the It's remain more an have gas the than going from is from a see market standpoint. standpoint disciplined, ability extract or side, the commercial side, opportunities us liquids On crude the an to affords operating to the but and we're footprint we a expense we'll deep. and from standpoint, capital synergies on side that most

things we'll longer-term we're for overall So But for accretive flow only we'll We're do near-term beneficial disciplined, the constantly look they're going system. dialogue. and cash opportunities. in engaged be to if

Neal Dingmann

from much total trying the to second be likely hear. this quick is good just to know get that get Great sense a I'm an contributed. Is a broad recent advantage intra-Basin one. idea much there, just more was how just terms, I that a trying in of Permian bit be housekeeping. mentioned to growth. large of of you a And Or sense how I it will get is advantage just of then that a percent? coming trying broad for JV. to to

Jeremy Goebel

what advantage, a XX% that gross To back we those moving move give and on that us. future was we barrels that a directions day, will from other a have and volumes. give a to eliminate to basis east acquired to you will But capital you XX,XXX and from come pipe sense, expenditures roughly from the sense by west displacing to ability them put barrels XX,XXX

So I to and think expenditures. we significant or had eliminate put ability volumes the capital additional defer

capacity system. have think that operate I use can the that efficiently to our more idle part that's allure is of we So to

Operator

like further back I for turn call this queue any no management to in time. over the to the questions showing remarks. now would I'm closing at

Willie Chiang

forward, support your thanks a evening. everyone listen, Well, joining nice to Have All Plains Sheri. American. look you forward visiting us to going continued for and with and We today. for thanks for interest Thanks,

Operator

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

You may disconnect. now

Plains GP (PAGP) 3 Aug 222022 Q2 Earnings call transcript