PAGP - Earnings call 4 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 Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations, Blake Fernandez.

Blake Fernandez

Thank you, Andrew. Good afternoon, and welcome to the Plains All American Fourth Quarter 2022 Earnings Call. Fernandez Investor recently Relations. Blake Vice Plains is of President name and joined I as My allocation increasing The year. throughout premier it forward coupled capital to Permian attractive an operating focused company's asset the all system, with base, exciting time engaging a company. I holders with to the equity returns including for its framework makes on look long-term you of material, today's we're In guidance XXXX. providing for forward EBITDA improve available to along updates communication and which an made in we've volatility few News replay adjusted outlook with for market, effort also forecasting, including each presentation a today's the an where Investor the audio will and segment. The under an on following Relations range, volumetric commodity the potential call. section reflects Events slide plains.com, be In underlying posted website is a at Important provided forward-looking are non-GAAP on financial Slide disclosures measures statements regarding and X. An on Slide overview X. call provided of is today's PAGP appendix. Today's by are sheet materials and and balance reference consolidating CFO. Chairman Chiang, Executive Willie will condensed call Al Vice and CEO; President for A Swanson, other and the be in located hosted our and team Vice Finance of Jeremy Executive and Executive Q&A, COO; available and President be President; Senior Chris members Other Chandler, including Harry Vice President Vice Goebel, Chris and for Herbold, CCO; Pefanis, will CAO. President, I will over to Willie. the that, now With call turn

Wilfred Chiang

Thanks, Blake.

we good We the goals our for for fourth are year. strong We Permian 'XX price a call, point via our gathering thank represented commodity in initiatives integrated and Plains. To captured full long as respectively, everyone, our and afternoon, year very results segments. February guidance meaningful year exceeding $XXX adjusted our approximately summary, us. capture quarter positive on production our crude announced oil business We by the attributable fourth pleased full results to both opportunities NGL market-based and was our expectations team executed or billion, growth well on $XXX and Today, systems, and have flexible for to as our EBITDA you team. $X.XX join the model, was quarter all upside. In base Plains able to PAA you million and joining inflection with asset million full on year exceeding XX%. haul both and and

January we result, framework of than that to current we expected, later subsequently range in a with yield achieved per unit approximately distribution announced this bringing or to and the As targeted in a trading to levels. allocation XX% announce paid on leverage November. Consistent financial based $X.XX end X.X% enabled annualized month, our multiyear our low be which capital framework, earlier our increase us approximately

all and asset several which Cactus Additionally, Empress facility optimize we sale, crude segments, Sask in II both minority and oil our Fort base our JV our completed and/or interest pipeline, announced streamline and Advantage NGL transactions Keyera strategic Pipeline, win-win our our operations. including further

also release We our or injury achieving by achieved reportable rate performance metrics. federally exceeding recordable record in targets XX% and environmental employee health safety reduction

our we've quartile on both ultimate improvement with goal and we performance, made progress of areas as great both remain these metrics. focused top X have While these continuous for of in achieved

on production highlighted our to billion growth our on provided $X.XX year-over-year PAA systems. underpinned long-haul XXXX Permian billion. range reflects Slide to and tariff as we guidance and of oil volume in Looking gathering EBITDA and in a $X.XX adjusted continued by segment, This attributable X, crude growth

provide of well segment, this guidance additional our reduction Keyera sales Sask as average factors volumes on NGL also Al guidance weighted the as expected Fort CX+ and color in by our primarily in spec Our sale, quarter. the lower portion in which spreads this is to a frac product close call. driven will

on minus we Slide As XXX,XXX a assumed an grow exit or production XXXX barrels oil X.XX of million exit-to-exit plus day. Permian based approximately crude X, to level production day XXXX anticipate on barrels shown a

XXX, count assumes rig an current horizontal of consistent rig forecast updated count -- oil average Our levels. with of

As takeaway capacity part commodity routine of continue year and as prices to assumptions the progresses. gas our natural fundamentals we'll monitor regarding our forecasting process,

dedicated with Permian well-positioned JV more Our than is X system operating million and acres long-term leverage.

on we shown XXXX. XXX,XXX to year expect capture of day As approximately Slide incremental full XXXX volume for versus barrels gathering tariff X, a the

portion we're I, Cactus our For particularly II we our seeing hedged Cactus have with a our on open long-haul year-over-year, for contracted generally consistent capacity XXXX systems. On prior and at Cactus substantial systems, higher of I our or levels utilization expectations.

our an from increase Wink-to-Webster we on basin We throughput the our the in of pipeline. well as Permian improving to our anticipate also as to on year-over-year volume optimizing continue we NGL focus the MVCs. In to see Furthermore, Cushing earnings. additional on business expect similar to predictability due segment,

and connectivity a our obtain XXXX, During an to million Plains $XXX Fort on will of that we sale Empress Sask in completed ownership a Keyera of our announced to multiple facility complex. transaction Fort full improve Sask terms at interest and the attractive our

Additionally, we're projects hope I'll and our additional that, turn call over the be to and you Saskatchewan Al. facility able coming to debottlenecking detail we around to quarters. With advancing share with capital-efficient expansion Fort over the

Al Swanson

of benefits Permian Thanks, of increased segment volumes primarily sales. with which systems, seasonal and segment stronger our quarter reported from the EBITDA along Canadian within NGL million, fourth market-based Willie. opportunities includes We crude across $XXX adjusted benefits oil and

was year, driven key and provide today's by assets performance. on which A through volumes, XXXX year XX our ], throughout captured as full benefits quarter we reported Full systems. Slide guidance. million are appendix full assumptions initial opportunities year, the of contains adjusted our Slides EBITDA and by Permian the summary as guidance of was increased outperformance guidance higher price the on well fourth February our detail X. $X.XX year more tariff For [ $XXX primarily walks above market-based primarily commodity billion, in located and which XX in X

long-haul growth to oil segment gathering a we now for and increased Cactus XXXX X, of anticipated consolidated is adjusted our in businesses, in walk is with reported segment oil barrels. billion tariff Slide as compared at to volume allowance increases our reduction consolidated fewer on in EBITDA year-over-year illustrated basis crude well proportional by prices financials as on assumption a pipeline volumes market-based the earnings in part basis. This in into segment. Growth expect PAA's XXXX $X.XX by ownership Looking our by in due a and Permian partially primarily loss of with and oil opportunities II, to the as our assumed our driven NGL billion, lower on an XXXX which in and crude EBITDA is $X.XX offset

NGL of spreads frac KFS result spec and I for CX+ to facility lower weighted XX% note volumes adjusted a that sale due the well We the interest. third-party year. product expect as hedged as as a lower of average sales our approximately our turnaround spec CX+ volumes product year-on-year sales would EBITDA are planned

we allocation, Slide X, committed significant of capital on as one, illustrated maintaining Regarding returns financial continued and X, flexibility. remain capital; to, discipline; X, capital

include related a action system. I expect Connect we approximately $X.X self-fund assumes distributions Well which $XXX $XXX sales, inclusive $X of a $XXX from investment of lawsuit, we and capacity intrabasin expect and now cash Fort increases; Sask proceeds of settlement $XXX includes on on cash amounts JV are flow, which expect to of future related asset credit outflow we note approximately bringing billion of sales. Intended and operations, insurance million would approximately and X.Xx. does Line of to the year-end X, capital million preferred flow million generate to net XXXX, $X.X retire of expansion; asset in billion to respective this of cash $XXX approximately which the billion flow, leverage and million one, million XXX hand growth anticipated the billion and potential support $X.X notes not senior common POP our For cash our facilities, in uses PAA, that and Delaware approved to Furthermore, class maintenance across debottlenecks capital to flow through of of expected combination to capital and working as inclusive collect debottlenecking three, XXXX. available allocate of free cash to follows: excludes

As of $XXX have the target. million we today, billion $X.X repaid of

on the are capital our Additional included XX. and detail XX program on and Slides balance sheet

the floating million. call rate increasing X.XXX% few housekeeping a preferred $XX in rate their In approximately our option fixed onetime details preferred a items. XXXX, regards Series by reprice of a owners security at addition to $XX which will provide wanted to B to annual This equity is November on increase payments Willie, the A to turn security few million. the to I shifting Before a I Series exercised by annual expected to equity payments back approximately in security, the

par, to unit. the which election, A $XX.XX we As security a result is of at of have redeem right that the XXX% par per the Series is

foresee near-term, longer-term to to We we changes our flexibility intend to do at But will our maintain continue securities not with the financial any this preferred time. evaluate respect structure. capital and

Second, Cactus we an related the Furthermore, of Willie. noncash assets. With consolidation entities million and call entity a a additional I'll investments resulted X% pipeline, in interest during that, gain the back $XXX our to the noncash of over II in XXXX unconsolidated $XXX California impairment purchased quarter, in include a the which million. results turn on to also

Wilfred Chiang

their to thank Al. execution. reflect progress and dedication a our team a and in and areas. and for members very performance business strong Plains inflection point the for Thanks, critical of Today's results like year all I'd acknowledge

to business current believe environment. well and continue American our world energy in North supply that will and We longer-term long-term perform that the the needs

is on appreciate 'XX today's unit-holders America. We distribution flexibility allocation forward updates to our yield, we turn capital to earnings flow Blake further I of on and support, X.X% Slide footprint your key of and a call from NGL across will well-positioned to that, conference takeaways continued such and over as of lead May. current As our through and significant improve targets are for strength and strategically Plains XX and sheet summary provided the the on goals our cash XX. With Q&A. through generation to balance our framework A returns interest call and XX, providing growth crude capital and that North Slides built illustrated us look on located to free in multiyear

Blake Fernandez

Willie. Thanks,

As we question follow-up. limit yourself and Q&A enter one one please the to session,

participants as please additional to questions, return free from queue. practical to available afternoon. and as time questions with feel many to allow This will are us the this address those For

available Additionally, the any now the for call open the IR will ready week may have. Andrew, you be questions. additional we're address to throughout to team questions

Operator

our And [Operator of from Michael Instructions] the question first Fargo. Wells line with comes Blum

Michael Blum

I Wonder if it's understand I relates running was start the you I Can one down today. you that just fact reduced And benefited from at quantify to then just if Keystone guess, the item, December? could quarter. in pressures

benefit all at XXXX? does So you that in

Wilfred Chiang

Jeremy?

Jeremy Goebel

December. Michael, Hi, Goebel. in this Jeremy is happened It

and month incorporated more and of But impactful modest, first some by impact December. trade but the impacting large, and facility. group was that's really impact at Canadian [indiscernible] from XXXX into our quarter in It see wasn't as periods. it throughput be The So guidance. you'll will didn't impacts It really our it much to XXXX. some forward the was as our

Michael Blum

Great. it looks down like just just budget. Okay. wanted flag well. about capital you that to projects major are number? maybe any to the maintenance And -- is ask so then then in to that year-over-year there can Maybe talk as I And

Wilfred Chiang

Yes, Chris you slight step-up the These capital levels kind a with of ones? are Michael. piece. cover key the expansion with pretty previous consistent would Chandler, in

Chris Chandler

We that's We're connects are based higher Chris a and link Chandler. forecasts. assumptions have It's costs wrapping the some do to up on additional Michael. year-on-year. well and producer that year project Lester little driving volume higher Sure, this

funding major primarily flexibility. costs to station supporting, not some by There and the driven that's Al course, are currently for work any any including mentioned, costs, related projects projects. debottlenecking Sask debottleneck We of incremental flow included. as Permian And assurance, Fort aren't reliability and we're

Operator

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

Brian Reynolds

in seems prior for to off there But seems per the the expectations. also growth to is volumes just start to long-haul day Permian shift on was in larger Plains like share year. it gathering Maybe expectations. cadence the prior compared a from slight like of capturing -- It lower barrels XXX,XXX

discuss the So guidance one, the assumptions around, if second, then just growth around drivers market 'XX? and and could Plains share margin into you curious Permian opportunities

Jeremy Goebel

Goebel. Jeremy is This

forecast. 'XX. production February, guided XXX,XXX approximately barrels and a roughly of growth the 'XX on First, we in Last day

of X.X to a in barrels 'XX on million X.X You're puts going day. range 'XX, million year. we exit roughly last at a Exit with barrels That where roughly X.X were day. you million at target a to

contributing are prior So we period cadence than consistent. The the to roughly rigs in the think XX is is we're XXX-ish working working today. that growth more today

roughly filled a confidence the XXX,XXX much producer XX% that level outlook at good us on look bottoms up our in we gives top-down as a increase we the throughout the across day plus barrels in forecast system So that the as well well pretty connects a from year have.

offset Some decline to we is down just is is production. higher of can from slowing what foresee incremental the potentially basin

You've across modest development value depletion And some DUCs level wells. continued the units system you conversion the the got maximizing a then as unbounded in had inventory of the a programs to rebuilding of last of the opposed because to year. of

So that books completed, combination and view you than a us based XXX,XXX out on just if a you higher to -- get day as historical gets barrels every growth. gives well ran

production considered this of kind the year. we factors for our out some So that's coming view of in of with

a we look as day That another as on top-down roughly coming highlight the moving As where to XX,XXX for we capture look I'd our us confidence rate forecast rate, would also well our our look. that a system at view. from and the gathering to contributions gives barrels as at bottoms-up producer capture pipe. long-haul is individual

really it's capture. an So intra-basin

So our type. long-haul some by third We being a that's party. gathered movement capture of intra-basin it to really

number XXX XXX look the XXX. opposed to relative XXX you XXX relative as at to to that So could as really

Brian Reynolds

'XX. quickly or margin then Is assume we basically down? And Or into just should same changes any the as upward XX? on it

Wilfred Chiang

about long-haul talking you or... Are margins

Brian Reynolds

Yes, long-haul margins. Permian oil crude

Jeremy Goebel

talked But based were capacities the were and successively year Contract margins you're all the would year directly for spot marginal These this change And higher versus incremental year. with the that's were forward, consistent levels. then we've it's additional 'XX Coast. what that space the contract at this to are So Gulf year, than what in capacity going we 'XX for at and looking on it. more of way if locked year, And to before. step-ups capacity levels can we this it. able they about roll-offs answering this we next last in year, be spot sold largely our higher capacity if

Brian Reynolds

And it. Appreciate Great. then for follow-up. quick a just

fee-for-service to be that NGL segment, curious from sale like the the the trending out component can On seems of the about forward, -- side and it you are talk if is just primarily looking asset seems there business? opportunities just term higher. driven I'm to this more

Jeremy Goebel

lower. adding prices, advancing opportunities I that come would some Chris contribution that of But about, decline as commodity think so would talked from the just we're being fee-for-service. potential in for

is you So the but way, I year into erosion that this may is the that see an longer-term some trend specifically think of of based commodity-based margins, forecast. which

Operator

from with the next comes our Research. Stanley And line of Wolfe question Keith

Keith Stanley

So first, on for guidance just the year. the

one Can you're outage talk where Are of And opportunities market-based in? opportunities? the baking conservative? the logistics high waterfall is staying marketing beyond level already you Are be are pretty what some picking Keystone in some if in opportunities you you that may referenced? for 'XX they you versus on drivers guidance in XXXX fewer you the and So just XXXX. the assuming

Wilfred Chiang

Keith, this Yes, is Willie.

of a what not that's capture complex as a got the was that be a lot we to scripts, pretty I capture. we've done for probable detailed on and trying actually things with arbitrage the lot as not what of a able range, too On be analysts conversations are kind went response could was when some of there. that system you is we you precise we was to mentioned that. to And tell of think know, into the there's then of prepared the on our put is, a variations, we've thought to to we it volumes would in flexibility are. with assessment where I going What guidance got get opportunities We're market-based,

we're there's telling long-winded we in, some know got it's got storage. that spreads. So crude to capture we the baked distressed you answer in And upsides we've think that a going downsides. of capture time and some We've it be whether and these into some buckets typical

is a that capture hedged us PLA that of or conducive to amount some not our able oil we've predominant the our give are got that. the lot. as would then We've lower. market frac as prices higher upside well if portions of some And unhedged if we're Sometimes got from spreads,

Harry Pefanis

quality Also -- Harry. is differentials This differentials impact that. can

Keith Stanley

it. Got

guidance just the in good you pointed the Last to quarter, NGL is pretty million so beat million for $XXX question year-over-year. down on Second year, you the impact, $XXX fourth quarter. that but

So 'XX in came actually higher.

You also had the Keyera sale.

than has is It better So update. fair your say last actually little business bit in to the it improving like the a is outlook NGL ways. feels just some gotten

Harry Pefanis

Yes, I a close assessment. to think later Sask this quarter. it's Fort And Keyera remember, fair expect we

be number it's past think So you'll will anything assessment. It But included hands. -- in see that prospective. I fair that a wasn't

Operator

question ] the line And with from Barclays. Salcedo next comes Mark of our [

Unknown Analyst

Maybe production outlook. perspective any from a sensitivity embedded in of Permian or the 'XX number just provide assumptions guidance XXX,XXX Is day to a guidance there follow-up your around Plains' range? could context growth on the within you barrel that the any terms EBITDA

Wilfred Chiang

the roughly would for The million of $XX a would be look $XX day million roughly long-haul at net business, it have a approach way -- it's different the Plains. barrels is to impact but EBITDA gathering simple we to XXX,XXX

if which be on So to. and just function gathering the that long-haul the market will it about think of a goes side you

decided to a our barrel add so that it that wanted additional go to shippers substantial ship rates, portion, since have we to Cushing Cactus higher And if at had margins. would or II on

with that's view the market-related rough side and gathering assuming So associated view that's opportunities and the a is your then that. fees no just gathering on of --

Unknown Analyst

of million context debt sheet of after X, year-end. of in million the also the as and Great. $XXX balance cash free That's $XXX the helpful. of cash you dividends net on referenced the reduction And then Slide have on you

the year for repayments a particular maturing. billion you there's have have this the context you net debt in if of wondering $X.X Just target

Al Swanson

talked X/XX leverage to that's what X.X, The we is about Al. $XXX we're roughly is going this down about from Yes, assuming. million basically X.X

it reduce net debt, in cash million. happen Again, but year debt change the will a So gross we've the our that, that will using embedded there's be this reduction partly about throughout things what's that $XXX assumptions that's the to but modeled at time. can

Operator

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

John Mackay

terms if barrels up levels. Corpus given kind Permian, Houston about of view for fill to thinking of capacity kind Maybe of to is think conversation? Corpus lines to the at potentially the going could looking the on actually the more 'XX again see or of expansions versus of you of Curious basis not happen need starting can a what to relative bound any or start lines a just that a share Corpus, going on be later you whether 'XX or the out export or in and

Jeremy Goebel

a say Goebel. the Midland. what Houston, the you're that moving fourth line in you'll to demand additional the market is Beaumont Wink-to-Webster is that movements there in This market. And see year, having into international same impact of is centers for filling say is Corpus on step-up Jeremy up up oil. because market larger waking I'd at I'd step-up crude is a the from Webster from then this centers quarter seeing

the you'll barrels spot think closer time, frac incentive pull to have on an I seeing you're markets moving at support tariffs to closer to they move as excellent margins Houston are you're where you draw construction. But and continue a today. build strong over levels and Cushing New off economics. of looking will there's to and just to build move term. and barrels, spreads or lot see continuing lower near to both capacity today, they're new markets market of barrels could more Corpus have will expansion into is So Zealand the pull to out today Corpus there. the from -- The impact additional in get based the don't an but those in

the Permian is the need a yields point, quality premium see standpoint from and dock clear. above most logistics and Corpus to of we the other So all it at But efficient a to market. the a this

others markets. it's and export you'll an capacity But flow going into look see that barrel, but quality pricing, lower if reasons to price into market, logistics and pull it's into for and the see other there's pull you'll purely those that Corpus to export. So

Wilfred Chiang

Jeremy when lag, And John, you can will you all in say, locations, times to there lead are or change we've got different markets know be but this, as access but those outlined, the the markets.

be sometimes able on up pull there. pipeline -- times end on attractive Cushing to and with a there's volumes we from basin and So Permian we're will where Corpus Cushing our to move up to

So to generally system market if when and to of is really I dynamic move capitalize about barrels have we for any it, that customers. think on that our is a able

John Mackay

Maybe on kind That's there out a on helpful. of to helpful. we the maybe lines, are to just now there? maybe going rates means what others of anything share XX for Is pickup, else flowing these could you long-haul be any again, one-off, that's be gathering the can on, would see your this a day more Anything opportunities that overall?

Wilfred Chiang

go of producers just offer to to just a I our is markets. preference that barrels. think customers for specific flexibility to of some shift We

said contract we to when space we sense. on the it earlier continue opportunistically As makes additional call,

so Wink-to-Webster and we've contracts to off impact it Cactus contract continue year, II contracts additional the roll do to contracts over Corpus that. our dynamics changes in other There's and new are can to this movements just time which we'll system. the and markets, in layered There step-ups to to in that. Corpus Cushing And we pieces, on as

something not they you that's to continue going shippers how barrels, we're So move to but disclose who are, see.

us attractive and wellhead an with work for like the system to we'll from one to customers. have We continue opportunities market, and people capture and operator gathering deal to that

Operator

with our question comes the of And Jeremy line next from Tonet JPMorgan.

Jeremy Tonet

might million the you're across gathering impact thoughts our as to in kind Slide those as if of overlay intra-basin of market of year? far able how share that provide here, want we high-level to the any there come EBITDA sensitivities $XXX as assume Is own the well as those, want assumptions long-haul. the on in X, the on kind assumptions back Just year-over-year to Permian to gains

Wilfred Chiang

I $XX in Goebel's probably as get. that XXX,XXX rough about of gathering can the comment in growth every is you to Permian. that if really you might what on put the more system at on. the a to a on million Jeremy volume going depends think the differently, we because an close understand, as was probably earlier to it hard sensitivity detailed sometimes day MVC it's if for roughly that's be on the -- -- million as empty It's it it's $XX a barrels will mean number go And and I system, benefit. wants

So there's a into, I'd million lot just $XX $XX to XXX,XXX. play of variables probably million per that that but with go

Jeremy Goebel

recognize Yes. long-haul capacity. we additional just the contracting And the through hedging to in put volumes very feel that Jeremy, the on of and additional side, confident in here we

that I see this lot we have think side long-haul movement So look, but don't that we going with of in a based what I'd on is you're demand, of the flexing of view day year. very XXX,XXX capture this we'll say long-haul a barrels to of know some system, market And growth, that. basin on good the a

Al Swanson

thing that's into kind of years of with past frac long-haul in amount the our One may have than locked year notably picked is you substantial Permian that in. we're volumes this coming year and of XX% up spreads our different this

in So what about different confidence as that's little we XXXX, done gives we've that more a past. than us but the think

Jeremy Tonet

it. a question, little maybe Al, helpful. Got this for bit And Matt kind That's of here. a

to lower level going level. seen We've the leverage right business for move as leverage forward? peers Just as what's a far larger the

leverage think -- do is longer guess, for you what you I curious, term? how just the this So business think right

Unknown Executive

We've that Good disclosure. question. seen Yes. same

XXXX, for communicating Our intend we We future. broader intend and now then we'll a just assess little migrated target to we below end. that them the kind of the low probably migrate to pass and lower the believe current to that. think energy we'll in into And hit. lowered them of our and operate what low take new view that assess we there. But look end established is needs targets historically. along versus below. what be have of that it leverage is math now kind We've And time the we operate I in now do below we're probably than been it's pandemic But kind got further that leverage and industry at just a establishing

Wilfred Chiang

Yes.

flexibility having is good I financial think additional a these thing days.

Operator

question And line our Neel America. from comes of Mitra of the Bank next with

Indraneel Mitra

First improving NGL were for about talk the you're question, frac you've parts spread, about hedged that the you XXXX versus from Could outlook. maybe when you this outlook know XX% last the moving the outlook the at AECO? I on basket what since talked look to

Jeremy Goebel

this is Jeremy. Neel, Sure.

Just gas spread think natural they in higher of in move natural NGLs. now. the November, AECO were quarter. propane Hub -- to able materially price, prices declined, relative as that as buying we substantially period in hedge -- quarter fourth it to fourth than Henry the subsequently and selling of were gas and were are through hedging into the and We not And to AECO have so and butane condensate for didn't prices

pricing, today. we've a priced gave took but forecast so volume. into additional us advantage move And of hedge the stronger That for we and that given that's outlook all

with consistent we hedging then an and the forward So market that's the that's we today. there outlook have have

Indraneel Mitra

That it. sense. makes Got

of Jeremy, lot Second with area had also. We question, the crude probably of kind for release Houston a the last you flooding SPR year.

that's have for Is versus there lot affected and it subsequently and same Houston Corpus year? to of outlook. push it that the gone, this exports a seemed improved exports Now to move

Jeremy Goebel

impacted crude growth that by and from a the the say more independent imports Canada light would imports than light more SPR Permian. those from light production year, from because The just last heavy increased crude locations. exports bit including are I and basins, other somewhat was XX%

those XXX,XXX SPR going releases heavy from for refineries, real over find calendar is to replacement replacements distillate going need for yield. side. They're to be need So barrels the a of the of on the day the year roughly to that average

really that a not yield look more is than to markets. at markets replacement So impact there. light We an it's in the of the it heavy on

draw best think and So logistics barrels still best additional the quality the will export. the we for

those at as increased product last look So of domestic independent we because exports and lights. year exports refiners of of kind the

in. we so look at And just those

Indraneel Mitra

could it. Got ask if one I just And clarification.

talked that about your between Corpus MEH, when you now? say, is Permian for Christi So market Permian or equity hedging spread, the let's that the you're and doing that volumes

Jeremy Goebel

Basin It's sales it's a price an contracts from it's pipelines. based also for for on price a the Midland or FOB

to you be a if at than basis, prompt longer-term looking about could just month, It's from Corpus, spread could standpoint, $X.XX if easily could a $X.XX. given be in on you're $X.XX the from a but it's a little in water the So of -- think and MEH market, it MEH. in basis, different it Corpus Houston be the excess the it to $X.XX the on

you're looking the the for at proxy, it's at But still started that market, since Wink-to-Webster if changed and a but sure. less Corpus the there's a MEH. for liquidity premium a has So as bit relationship

Wilfred Chiang

that I'm capture we not -- on barrels and margin sure the if your question that was question? Was your margin we move. the buy

Indraneel Mitra

was That it. color was But helpful. Jeremy's also very

Operator

line Dingmann Our from next question Truist. of Neal with comes the

Neal Dingmann

of of of I if simply want way. to get a now any a see you maybe at look difference of strategy ask sort to different I Kind trying just about been when I'm of asked, distribution? sense how in side comfortable that versus changed? And those have growth with that, think you're of distribution minimum growth maybe if either coverage then you on the part sort that things

Wilfred Chiang

in discipline is and this continues. do strategy everything discipline The Neal, hasn't changed. Yes, we Willie. Capital

time free preps of go opportunities flow, that cash debottlenecks pay when continue exciting financial potential flexibility. to down. extra continue some to with have lots on We've as we We've deal got goal to to want NGL very it's And optimal. Our of we we generate point in forward, at our the debt got some is some of that assets. want to

going take return. if we're capital forward, be or they're projects, you going some to to even go acquisitions be very or on us bolt-on see do So investments more else. very, anything it as strong be And we whether measured

about think we why it. that's So

Neal Dingmann

Very one. good. one then And last

that's a offline know Just Canadian had little you now? any just on the I bit or how you wondering mentioned I'm -- in previously update facilities. trending downtime of

Chris Chandler

XXXX. our completed assets, Empress We East turnaround a and at plants can our facility that Sask facilities Yes. the This that. Extraction across fractionation on in and Chandler. is at we're Fort strength Sarnia. in successfully, at the and Empress both the Chris back full I did Canadian We take late at both have at

Operator

Seaport next line question Global. Sunil the Sibal Our of comes from with

Sunil Sibal

the question first on My CapEx. was

of you've guided can is in higher a curious, the it similar did if since the this what forward, to big remains kind rate like we Permian CapEx no -- are I going you especially projects, assume last run of going bit growth than forward item little specific year. So range? seems same was kind the just there

Wilfred Chiang

Is understood I of question, you're growth of what if you're Sunil, asking in run kind that Yes, rate. trajectory your asking?

Sunil Sibal

Correct.

Wilfred Chiang

Yes.

do So we operating leverage. have

So we've intra-basin Permian got capacity markets. gathering and in multiple long-haul the

earlier then opportunities some there. opportunities well. will there some definitely shared NGL as be there I always as there's And So assets, the on

Sunil Sibal

then And question Okay. Al. one for

billion? cash I look of flow where financial from when walk flow So you billion at from of us to for X, you could cash the $X.X lay free out operations your $X.X Slide XXXX, assumptions

Al Swanson

and in the -- flow, non-controlling we're which million of embedded have $XXX capital cash be our from sales, both maintenance $XXX assuming well. Well, in would $X.X reduce CapEx, asset the it, would interest billion. And distributions increase as would million the think there to I it. Yes, the we Yes. calculation, it

free if it use to definition and are of the be same all some formula sense? it's as at get make pieces take able you'll flow, and look of cash So parts to the we parts you these there. our Does --

Sunil Sibal

leverage. from on one it. Yes, then got And follow-up previous question the

credit mid-BBB guided of also to kind you ratings. think I a

does you considering of to kind mid-BBB? are need get and that to So leverage the X.X% what also, producers there that X.XX% get environment X.XX% helps we hearing lower to on midstream to we you X.XX% are the in to your from other range previous of overall metrics

Al Swanson

get November, I the commensurate probably operate through-the-cycle in and us we time it would say the in path it But have we'd kind to kind operate we believe call on communication in to not, the the capital there. and lower against other to communicated band at as structure well. We intend operate out And our rating what below. lower financial will probably and the agencies we've as with just than at the of of is it and ratings we've band of band this of same kind call executing mid-BBB had or in we've of with take on again, basis. a lower dialogue that laid manage the plan to

so pleased progress will. we positive we're and outlook recently like deliver to one just we've far. the we with we're got get did execute So We hopeful, again, continue to think and

Operator

now Chiang I the any call remarks. turn will for Willie to over closing CEO, back

Wilfred Chiang

level When but we've think very some again, capture through going is that year. to of come we'll we of got When everyone, capital of would you course, some talked look discipline, talked going about about on thing. synergies able when for the about go what do intense do this the go probably other discipline think one NGL us afternoon, with same keeping financial these you we're want about disciplined we forward looked these, expansions. on updated some to be But up. acquisitions. take did threshold see our of forward you'll valuation thing we're we talked that great ultimately attention, add acquisitions. financial the And one things you We investments. as as think and look for, assets. We're more expect and system about anything we of financial -- to The they there, Thank out much. and at is we the playing us I you through of discipline. Thanks, joining very about us Thanks. at to to your to

Operator

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

Plains GP (PAGP) 8 Feb 232022 Q4 Earnings call transcript