ENBL - Earnings call transcript Q3 2018 | Enable Midstream Partners, LP

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Operator

Good day, and welcome to Enable Midstream Partners Third Quarter 2018 Earnings Conference Call and Webcast. All participants will be in a listen-mode, [Operator Instructions] Please note that this event this being recorded. I would now like to turn the conference over to Enable's Senior Director of Investor Relations, Mr. Matt Beasley. Please go ahead, sir.

Matt Beasley

morning, good and you, everyone. Thank morning's Presenting President Rod our are CEO; on and Officer. this and Financial John Sailor, Chief call Laws, our

the with issued our other management press release your have of our earnings Earlier room Form filed in XX-Q questions. we also answer SEC. today morning, We this and to the members team the

the earnings website. call are this press that presentation accompanies our release, Our of available Form Investor in the section XX-Q filing and Relations all

of replay the today's to We our in securities projections will a a also factors could include materially within filings. posting Today's SEC discussion website. statements laws. differ that from will can and cause meaning call be discussion our could be the the projections actual found from of differ Actual results forward-looking results of to

review also today's get will reconciled have the the Sailor. We on measures started, referencing We over statements that, presentation financial will the to and presentation. and which financial invite call disclaimers appendix be today's measures. measures Rod we'll turn non-GAAP we call, to With for both nearest the in to in forward-looking GAAP I this to non-GAAP you

Rod Sailor

thank the XXXX. third producer volumes EBITDA driven quarter, adjusted gross to continued contributed and for third net processed revenues, the activity joining both volumes, natural another total These DCF gathered strong you morning, on liquids today's higher margin, during volumes strategically. us and Operationally, and call.The and compared operationally Thanks, by Good quarter performance third gathered oil Matt. the record achieved quarter gas to natural well and was XXXX Enable, and of of crude for great for the production partnership results. increased gas quarter quarter income,

wellhead with fee-based transportation new contractual announced Enable's positions acquisition solutions expansions front, we offer value providing Energy and our production. extending I November acquisition strategy on these substantially and to our previously crude our reach to platform in Basin. ExxonMobil's adding target Velocity and are that assets, midstream This Enable's as continues across On Anadarko the call. to the Williston continue market the of better XTO condensate midstream the crude excited customers. gathering producers oil infrastructure complete subsidiary, for the market-leading cover scale us growth closed X, to share on increases commitments the will we to from strategic both the of later crude Basin in oil in Velocity, together of chain

next Turning to the slide.

natural last there drilling Due midstream with Basin, Wash. that Midstream We results Basin. platform Ark-La-Tex serve a Enable gas the and rigs are ability benefited year further between commodity Texas. the Anadarko continue differentials to in Belvieu, XX the the the XX Enable positioned activity currently during significant the well from including including quarter strong Enable's to Gathering the optimization our count, record rigs optimize XX% system. Granite to Sustained pricing, and volumes Enable's and has growth and natural in at we XX% in in increase of Plant, a week, us drove Velocity we SCOOP be in of the At XX Align are rigs Kansas rigs first at we gathered period.With STACK, assets also connected increased X NGL since which Waskom rigs last our are wells purchased there quarter assets, Conway, were natural enabling uniquely volumes the improved we expected and to Last gas prices XX quarter. connected Processing now increase our systems, see over seen gas for gathered to rigs the XXXX to the and producer strong provide In to seeing. the activity. market-leading rig our infrastructure, processed has production systems, volumes integrated same to our dedicated the in running gathering processed

rig movement favor our services in the slide. once XXXX Where our Turning extensive percentages we're we're on system highlighting basin, few the the and with again, which remained our we one Anadarko significant the of to with Velocity we our advantage, value header producers to saw to ability midstream profiles SCOOP the ability the versus activity the producers of Anadarko parts over current activity of Basin STACK and and system. see trend, service we with crude production enhance our strong. now proximity that With believe oilier offer of the providers customers, to the infrastructure drivers SCOOP, next within the focus XXXX, higher capture of the acquisition. This prospective STACK.

the increase our the producers map, system crude As to existing and the drilling content in our as you from can assets production and the footprint see capacity revenues SCOOP. acres XXX,XXX fee-based heart dedications Energy stream we positioned dedicated via Wynnewood, serve float Enable's Velocity, either base-load over water are backed that and the will McKenzie gathering which Basin, Counties up Williston the our current crude existing higher to SCOOP per portion crude approximately support Marathon shippers. segregated of highest With with XX,XXX of resources fee-based the add right In fee-based the perfectly target pricing XX,XXX the from pipeline and with now to day Continental gathering to activity provides design system. barrels plan Basin which Velocity's barrels and cushing basin, dedicated customers streams of day. fit undedicated substantial demand. the We of to under Williston for of that and are the our North value opportunity is arrangements. gathering in active can to volumes long-term premium from million gross relationships areas Dunn the large over ability Dakota's and offer number Velocity we with is systems Oil long business in play. or expanding XTO This and refinery, are crude a batch oil existing acquisition uniquely per The capacity, provides termed, acres The by secure system contracts Oklahoma-based add operators planes, system a from new expands further X with by to significant area near

connecting begun XXXX. expansion have constructing We first half assets for and start will of this in volumes the

distributable total and crude capital We in to to approximately starting expansions XXx, flow per unit expansions are Williston expect Basin the multiple These through to Xx XXXX. XXXX. EBITDA down to invested multiple expected a by adjusted be generate Velocity XXXX working of business an cash accretive

project utilize of in We Run U.S. announce supplies is move are on pleased including project our third most Bcf gas liquid to we're the Gulf designed X.XX received from we recently Total season a capabilities goal this X.XX Building Bcf some to negotiations per provide capital also interest but and in a of backed The access cornerstone X natural design X.X to shipper from capacity.We quarter, significant hubs, gas will U.S. closed of the CP, we by per prospective the gas-producing project's are transportation export for markets This that Bcf infrastructure, Coast. per with cornerstone in continued from growing day the currently day Gulf Pipeline to of existing adding prolific bidirectional shipper the move day to our liquefied now interest only to shipper with shippers. and capacity binding the agreement efficiency, our season for EGT precedent exceeds an natural forward the the abundant commitment. on project commitments prepared up regions additional open with is on natural to cornerstone open Line project. to

segment Transportation slide. next our on Turning the to and Storage

to further to Muskogee contracted Anadarko per into access project of multiple natural service October the solution opportunities flexibility XXXX, a market.With day have of and we gas X.X existing transportation capacity and Muskogee agreement, or XXXX. far in we believe in Electric expected firm pipelines to of dekatherms was our over producers per to expansion customer gas future. dekatherms the extending Power per XXX,XXX a end solutions continue XXX,XXX servicing Gulf reach day Company's EGT's Plant, The be X. Oklahoma Line dekatherms Gas and full in Run Basin is CP, another see to additional markets.The we service case of great bidirectional providing enhanced utilization premium get our may to project, the placed for with Gulf extended deal So and project by request is on million day new the production

$X allowance, June required the among When by with couple X, of corresponding in other of ADIT, allowance income onetime using Finally, a slide. income removal approximately form October FERC. XXXX elimination On to its required million on report increased XXXX, corresponding by effect the MRT'S compliance August tax over assumption data and of a cost take form XX an tax of XX with ADIT to a briefly regulatory things, made refund. The its to case year-end on rate EGT coupled the by removal XXX-G, want XX, filed showed the form. of filing. mention service and subject the reflect, filing a next I MRT updates January rates to

assumptions. We adjustments also and current the filed included an more used to addendum, which data

its warranted that a of time. at that is not EGT XXX-G, believe With this the indicated submission the does of it review rates

to access operate want how excited our which interconnected our the we As am value quarter, I demonstrate premium company. our I we plays customers. of my offer the just the the I of reiterate market after direction results our strength close of remarks, the about in and Quarter systems,

in operational position Gulf look project. build financial We XXXX. for strong execution on expansion to call continued over John to of And Basin and acquisition, our year results and another With and now the to the outlook turn to with forward that, Pipeline we Williston our quarter third our XXXX. Velocity will discuss further Run I market-leading

John Laws

key I morning, good and quarter. operational few cover our metrics and Rod, you, the will a for financial of now everyone. Thank

of in results and were in released detailed quarter always, and which you find operational our both and XX-Q, a earnings As this our third can of our financial comprehensive morning. earlier overview more release

Processing performance slide. operational continue our Customer Anadarko results Gathering to and and and Ark-La-Tex volume Basins the activity segment. well in drive in growth our Turning to

in compared see, the in volumes in As gas increase gas volumes year. XX% a processed natural we prior had of natural and XX% a to third you increase XXXX gathered the quarter total total can

saw systems. in XXXX also quarter year multi-well a pads volumes same gathered our the Basin oil driven Williston several by the primarily compared gathering period ago, on our to increases for third of online We crude coming

we for the was in production the result gathering, natural production and Rod records the gathered NGL mentioned, oil both in quarter. of set crude natural NGL processing, increase gas As for volumes gas The increase higher transported ethane. In from our The plant increased of Transportation natural gas LDC of recoveries a storage processed volumes and and usage and power customers. higher volumes was our segment. result

the Moving to financial slide. results our next on

expenses. adjusted discussed EBITDA noncash million associated volumes higher by as of XXXX. margin million O&M assets and higher NGL and $XXX gross interest flow of after slide, and equipment was management $XX along activity quarter and EBITDA increased Ark-La-Tex quarter to processed by higher third partially volumes million expense higher increased debt driven expenditures. adjusting third and increase and rental associated XXXX higher in due system The on cash with adjusted by G&A oil the and natural an with the service $XX partially offset assets, for higher maintenance to increase adjusted storage Our higher balance gathered was in previously interest Transportation $XXX increased higher gas crude higher in in higher to The on for higher gross higher the adjusted margin activities. by to by expenses, EBITDA, million items our rates capital additional prices Distributable offset with due outstanding

debt in growth under both XXXX third the commitment remain our and EBITDA of volumetric our distribution Our Gathering We to to measures After contracts to end, of quarter supported third ended of metrics, adjusted from revolver. quarter firm, Processing fee-based quarter with coverage are compared in XXXX. which the business maintaining by continued million the and XXXX. we ratio volume our by Enable metric an considering liquidity X.Xx the and net significant To generated for of segments. in approximately minimum and increased income investment-grade $XX declared, total third our the impressive the a X.Xx that business of committed distributions of quarter

our adjusted our the move anticipate I of would outlook, before I for share Lastly, the on XXXX or above flow. year. end for view the the EBITDA cash ranges that outlook to will to be remainder previously issued of and upper we at We like distributable

at outlook we to our acquisition. expansion previously our be XXXX common end the for income We Velocity capital expect or excluding above will range unit issued that and when outlook the upper net at the issued attributable of previously or

non-GAAP For and to previously first earnings issued presentation. refer XXXX outlook quarter reconciliations, and XXXX associated press Enable's please release

Turning XXXX. metrics. operational start key of our to outlook ahead I'll with the

in condensate X.X to With Basin Anadarko system day. crude As gas activity our barrels day be between SCOOP, producer and of between and in a system, X.X gathered and result the we in XXXX of be natural new X.X expectations the our the expect and expansion per continued condensate our and we X.X Cotton XXX,XXX TBtu our per oil Valley gathering between Haynesville gas volumes processed for and day XXXX expect be to volumes throughput per TBtu XXX,XXX our crude XXXX. plays, and volumes natural to our Williston and STACK,

We be X.X between per capacity Bcf firm and also X.X expect day. our to contracted XXXX interstate

Regarding capital basins, Anadarko and We expansion segment our Ark-La-Tex $XXX in natural Basin which of be expansion project. build-out $XXX estimate in will driven the further the and for by expenditures XXXX. Williston gas gathering capital million and Velocity million, build-out the system processing to be between Gathering and

years and activity ability infrastructure past, gathering we a expenditures accordance producer As levels. optimize in reminder, with as has compression demonstrated have and Enable in to the

gathered approximately As relates project. volume million Gulf capital outlook $XXX Basin million projects, million. in to $XXX of expect million Storage Transportation segment, expenditures with and the segment's When year $XX the The be capital between considering CaSE expansion the full to between of XXXX. impacts and and million to estimate XXXX associated common income it expansion Run expansion net we acquisition, includes $XX Velocity capital the Williston to the and be and we Muskogee growth, our $XX attributable units

adjusted billion our EBITDA billion. to $X.XX expect and $X.XX between we Additionally, be

$XXX We expect to generate between flow. $XXX million of and million distributable cash

profile the multiple appendix. outlook to debt total hedged a that Xx. or a sensitivities by a underpinned XX% to approximately margin be standpoint, continue EBITDA gross target financial Our of price in is we to adjusted commodity fee-based our XXXX approximately shown is expected and From are leverage

This in to coverage to is coverage expansion expected our X.X portion the program. be While of is expected fund range of significant our X.XXx. a capital to

our performance. business future capital plans, As distribution increases distribution light coverage conditions will continues capital we in to market evaluate increase, spending and of

Moving to my final slide.

Gulf leverage Run our build Our and strong Velocity, footprint. momentum on Williston Basin our and existing announcements commercial

to positioned to assets are strong performance Our continue financial drive we and XXXX. well finish for a great

leveraging deploying As remain to we'll on look assets up With efficiently. questions. existing we XXXX, open your will call for and capital focused the we that, our now

Operator

[Operator Please TJ RBC ahead, Instructions] Markets. And from Capital comes question. go question first with Schultz with your our

TJ Schultz

morning. good guys, Hey

you crude now undedicated you'd improvement? suite of assumed these the for in first Were the outlook just G&P and losing have dedications improves of full Clearly, both these services. from the XXXX you some And opportunities there Just or Velocity. position it but with side were your multiple are before operators? either the positioned of some on better get

Rod Sailor

Yes. TJ, we But question. were I the No, we for continue environment. felt this to losing we price No, any like say thanks date. in opportunities again, wouldn't

I we position had customers serve. think opportunities anybody to prepared don't better capture is better, that see that customers us where a in that able the to the in as the oilier fact, the is in opportunities targeting felt the Enable, in of really some to we other and You currently customers again, this the I producers portion And kind capture areas don't but remarks. our other business, of really our we we infrastructure, than be nobody with of put that said know, area more SCOOP in crude SCOOP gas

we And our, position the our it right this this with location to felt acquisition what So that is I a the asset, wanted by provides again, do allowed it. Anadarko that of that the in I for to crude services market-leading been think think suite us strongly into that transport Anadarko. and knowledge believe Williston we us we very the of we've in right down a and out it enhance is while, about the having talking to

TJ Schultz

on those, opportunities that mentioned with serve. customers you the Specifically, you don't

some confidence getting level or those on dedications? quickly how of Just

Rod Sailor

Yes. got the baked business look, that new not we've capabilities. And guidance, of got the the is relationships, we've track into again, the but lot a infrastructure, XXXX got we've operational of record

truck I those opportunities. infrastructure or or put So it win you're confident on feel fair to share our either than it. pretty going going we'll that have with share to of our fair you're more it Again, to

lays our the company And the oil it right now are that SCOOP. has of the on in infrastructure system. again, top header We

think position and in the it just feels that again, again, STACK SCOOP Enable the plays. unique once So incredibly if, on I an has

TJ Schultz

Okay, makes sense.

Just moving the to Ark-La-Tex.

expand region, Align that rig you the little. activity, just with optimization into connected just First, then Can general, And provides? Waskom. benefits the that on for down a in

think, a on cash any from over You're those out roll-off provide expectations can that little a you impact rolling of off MVCs flow for year I MVCs?

Rod Sailor

by the Yes, got good with the and allows to side. up felt No, about there us, things liquids some great some up Yes. allows no, strongly some some question. of again, always move into us that the service facility. NGL that molecules of ability we've Waskom additional This was again, our Waskom, margin Align customers we've coming hopefully to one the And volumes. connecting assets those customers out additional on capture

got Ark-La-Tex again, kind As on we've systems as primary in we've prior in region. systems of it the MVCs, X relates said calls, gathering to the

of the MVCs, systems of One we're producers other the target trying to, are system. now kind areas above growing of those what seeing is the of some to

we significant see the MVCs move on both we'll see in continue growth So systems. of in Might there again, fully to a above margin. those not until gas get we believe

is good that have any target their gross to really, the to our growing of production MVCs degradation those margin continue as producers kind don't really Did levels. think that news I your we're to see question? related from capture those we going the above

TJ Schultz

Yes, no. fair. That's

one long watch to in-service of shipper just to trying to Gulf your time get is last the I'm the kind on How Run. near-term the, real further line? on process and for sense build Just to on with FID that? -- time quick track of current a things

Rod Sailor

on we we've in-service Well, it come I service kind XXXX -- by the what in in targeted. XXXX. XXXX about talked is -- Could XXXX, believe of fully of

accelerate little bit, bit? reasonable so And but little that's Yes, we think we time. a a that a build could

in completion operational and So in fully XXXX 'XX.

TJ Schultz

Okay, thank you.

John Laws

Your FIDs near-term be milestone kicks really profile, in TJ, our the which at will that time. off

TJ Schultz

Okay, understood. Thanks.

Operator

The Jeremy Tonet your with go ahead, next from question. Please question JP with comes Morgan.

Jeremy Tonet

Just hasn't there. little other pick -- In been to peers. overtime. the players space more compression a That just midstream Velocity your here out of some with wanted for -- acquisitions always midstream multiples up talked turned want has big bit have to and in dive the in about

compression that baked What is third more gives business? How you wondering than was a -- you party in could here. a much that? I how more confidence much couple you XXx, extend bit Or kind of Just extend with of of level bit a contracts? if the years the new that? at could Or multiple is existing

Rod Sailor

on compression Again, SCOOP. you a lot No, can existing Yes. based in customer we very the of is and active the as STACK profile. are imagine, that the

around of gas growth side. on lot information the a have We production

-- trends oilier the both our targeting crude the question we I our gas again, we're under said, more with kind first around really that areas SCOOP. slides, seen, also or $X, remarks have the of we higher on and producers As and seeing $X think of

refinery. can a and ability significant we've is and in number -- our down. of seen lot beyond. see multiple undedicated are work customers. we've a we'll The the That Wynnewood in around trend -- some us of believe premium so that gives that XXXX confidence to and that system that And Velocity that's pricing to of There more been a provide

that to So expansions some even potentially, refinery. around ability

And flow that that to attract though ultimately it. of dedicated very that on feel -- acquisition volumes again, that's are our analysis ability system. good also a but and to on be we some -- to that customers from around going upside So but there's the the to just new lot our already customers

of our significant we're talk and see we can't and So future get could outlooks think again, I volume that volume and system. going very going what their about that look to information to further drill strongly but are a producers to feel growth, growth like, going what on we do lot

John Laws

pointed not that to to That market for customer about point commodity. real you'll names, SCOOP attractive the we've Jeremy, to bring is permitted Marathon, but to the tried we'll attractive of think incredibly try basin out. refiner. share similar could find a demand-pull which list the underappreciated, and the we incredibly in area of providing it's to is today. not mentioned are on connection pipeline you provides to entire are are Having our which markets to the a thesis been the volumes to that for as and refinery in couple of And I in asset, a Rod Continental this this I same in attractive. that that be in point incredibly that the pointing active it his of And area, a but call, so are is customers premium direct opening assets access also think with there that's there all the system others one things active in bear remarks just

about it we a go-forward on platform, think volumes how this As about think and basis. we what drives to

Jeremy Tonet

That's helpful.

Rod Sailor

Yes, a mean, Anadarko you again, anybody think step have in on producers I I the with plans. from we mean, this add. are perspective. intelligence just where I going their out than drilling basin to better when new

very we that we area made used well we this that know when again, acquisition. So this knowledge and an was

Jeremy Tonet

in here a as as might bit back here, more that as wondering you Run, if Great. want just to playing where integration well. touched a benefits guys examples lot little could you ground feel lot then see be go how on the from? you area. And upstream being or pool that There's far out? provide gas able SCOOP/STACK And this but points to And you a of have be a you see on Gulf that to you do mean, bit but the sourced touch there, that could I see. do

Rod Sailor

question. great that's Yes,

I was that, shipper were on able benefits think, again, fact of that build barrier the of the one we'll a to foundation break we that the the pie off with piece our We of Carthage access see lot and Line we'll CP, of of make has bidirectional. places. Perryville. getting at which think We'll those Line that CP to gas both a landed

So one the of source amount selling on going the the, SCOOP, Gulf an from the of activity. they're that STACK Northeast. be I incredible to including the a think one There our fact to of is the of able was gas and project points Run ultimately basins, multitude

seen Ark-La-Tex our volume on You've in Haynesville, region. with our growth system the it

to on they at. source opportunities from Run the Gulf than that the other other a know are of going I diverse be have probably opportunities. looked selection customers able gas system So as to basins to from

gas I I can else? again the So selected think, customer with again, of multiple us ability proposal liked that reasons, and areas. source and to foundation one provide, think the Anything we from was our our

Jeremy Tonet

That's it for me.

Operator

question And question. Tim go Stifel. comes your with Please Howard our next from ahead with

Tim Howard

Velocity, capital is incremental build-out to required provide you much to could that Back how system?

John Laws

it's where number have to this We're not going real to portion these and of brought to to going kind connect-type and incremental that rack we we're operations. there get we'll not as incremental that it's system to The do system that it's capital via well provided our specifically, for A be guidance not see some good it share this not number is lot broken in instances relates volumes a able out I'm a that that's for material and -- of these also already we've then to news well directly. happy so XXXX. synergy wellheads and but Most again, developing just but a opportunity that as of in attractively, truck the We've cases and truck of we capital. is, it got of material detected. to

Rod Sailor

Yes.

down number we operational invested fact, were going on asked mentioned, While processing, lot that story and got you -- the again, years move that couple to gas as our towards Wildcat down the of as Texas. our would of that our just in the And gathering facilities. up well -- the -- our so think, we talked we of add of completed and about didn't that of capital And wells. about already last we we But know, are specifically Anadarko, STACK down as SCOOP. capture system, gas -- we thing we've in we've move a moving a It's we once And I got system region began for that can again, to leverage the these build wherever header Super-Header now that actually capital question, continue in in that we SCOOP it again, the to, lot a into place. a significant the John with in the great opportunities we're infrastructure lot you already positioned we're have south, to some and we we've to go an announced capacity.

incrementally a of capacity side. matter built. crude a a lot getting already just a invested the on We've the -- it's lot lot gas -- of of just on or piece So of the invested gas capacity for

prepared again, oil activity we So as nobody's better capture into than to down opportunities the the those see migration SCOOP, think us. I of

Tim Howard

-- base be rail was these Do you case to very as think have volumes -- XXXX I your activity, saw do you Bakken, what's generally the wondering pipeline in incremental up will Bakken? -- where additionally, and kind headed? helpful. if up? seeing of And guys' then you to And release, then capacity just into I Or you're didn't I option into an what are the the XXXX. have lined subject drilling think That's get the just I that shifting for volumes to

Rod Sailor

Yes, Craig start and it kick here, largely an it again, to that Chief then dedication. over I'll our we'll acreage he's Officer. is But Commercial

that on. to to that that. that the know to something. activity start of a come system lot wells to anticipate some you -- don't We So on Craig, I proximity add mentioned completion if But want there's expect we we awaiting

John Laws

downstream capacity. takeaway what's customer, downstream on the was takeaway up XTO, Yes, has to lined capacity, guess, referring that I our

some plans you're customer So Bakken, our seeing impacting basis the not playing concerns the us for of region. out on differential the drilling nor the in

Tim Howard

Got more quick then ones, can. just if X And I it.

thoughts Focusing kind are there Wildhorse was the at just also Processing of XXXX. driving in Plant? or It on additional this? XQ Anadarko. are And guidance wondering seems like I volume the midpoint volumes the any what's a progress of then on

Rod Sailor

things we in the are being content. some of oil wells our that see this we a that that some as of the drilled have said one of shift crude opening was higher Yes, activity remarks

are what activity that as -- in year seen the robust growth, volume gas So the we as we STACK, to... expecting right? have STACK want this you not John, of some be may

John Laws

No.

be clearly, the what STACK, particularly been think, the rig I the rig activity by collectively. the the driven -- activity has to in to and through and strong date, the continued have the volumes SCOOP year, in

mentioned, an a from a the to of of area oilier SCOOP, the bit is Rod little transition to STACK As see beginning the we're which play.

growth. still again, little a gas cut I and these wells, see bit of guidance to heavier think we with we're So some expecting IP. be tend more crude within overall, see to a But lower there's,

Tim Howard

Got it. of, XXXX? wildcat kind expect Then should we to volumes last up fully one. of expansion, through the increase, kind that Is or is ramped

Rod Sailor

yes, we're full. is up we to, please, Wildcat open, it's fully

Operator

from with go comes Fargo. Baramov question ahead Wells the Ned with question. your And next Please

Ned Baramov

Bakken improvements of the the in overall return profile Velocity expansion in after further expect XXXX? you Do

John Laws

Yes.

the there, certainly there. is that not you I but think these if look guided areas, that's it beyond drilling down. at XXXX, ability We've inventory gets there

the we're are what slow we're necessarily activity we saying don't and assumptions reason levels. see at that this any And your for things looking to on at, to based activity So on time.

inventory ground to substantial system, be Bakken, certainly you're could with day there's XX,XXX be So example, bear. up new available that's in brought a something to about if talking a expansion. to the barrel the And in that for the

are these working into you X that there, can lot into You the capacity. investments got years. particularly accretive, and overtime, that infrastructure But, highly ramped that we've existing of the a more after build infrastructure given incremental are typically than take

Ned Baramov

maybe, for and specifically aspects the the your Sure. Velocity Bakken you assets there both And details talk commodity of then agreement? around contract any the if some can is for expansion, about of price-sensitive

John Laws

acreage are predominantly dedications they features, Generally, no. fee-based. minimum They're commitment filed not both instances. There's as in but volume also typically any

Ned Baramov

then And achieving your to believe a a from at Xx, Midstream Okay, a XXXX. bit little you time year acquisition of roughly by multiple got Align target switching had a it. gears ago. Xx I the

are curious of a the returns this year transaction. Just close where after

John Laws

more drilling the where area, seen, dry Yes, side the here we particularly little I'd with that we've respect sitting say, side. on bit sit today, rich than to a probably

around Waskom. would so would of be richer us the things And with would the that some on to the stronger be compel optimizing brought economics that gas of and some that

you overtime. had got producers, than So near the we've still probably Craig, not here in initially see additional term. acreage of growth yet see growth anything? seen we there hands but some, -- We've some expect it's but anticipated, had what little you slower and we've the would some compression bit offer there, change we a to

Craig Harris

Yes, issue mentioned. that do I to space, provides lot in on because And have side is on the market. an that, of Rod line becoming gotten service, in the as which synergies we rack the a think we have NGL

we're that John between East drilling back he's gotten gas we've drill somehow area, that now side, going, those So seeing in the kind multiple. plants. we're interconnected, the able And on focused taking our us the -- of But are reducing regardless where East we Texas and that on to as get rack have we've the been advantage lot area, plants the space they helps activity Texas, which able of, wield forth said, we a in to that Haynesville. of on of

gotten to So to synergies start that as those ramp-up line we've see we're starting in service.

Ned Baramov

being end to great. And that's then provide And program. for the obviously, the capacity the of the the on The capital Okay, you day? X shipper? I full could ends then book Gulf end question high just of capital a X.XX guess, being per Run quick capacity pipeline. Bcf construct low anchor

Rod Sailor

end, that previously what Yes. get we've our need think season we We out come want we on see on where yet the anything guide haven't upper before higher to to on that and discussed. given we really out than guidance through and I open

John Laws

that the season, Ned, previously. Look, in open about had didn't include, see the did scope disclosed you $XXX a and Yes. we we in it, case reference for million

Ned Baramov

obligatory Centerpoint? may there's IDRs from whether for on And Okay, question The last and that's helpful. updates be me. update the any

Rod Sailor

as not Well, splits the in again, we're today. we sit here

So that's we that issue have not an to deal with.

need we to Yes, take think supportive the sponsors we to have need extent right and sponsors we continue and on that about. then of that cost that. feel to that the something feel the confident our like have is we I'm now, like would to address would that. our steps we again, dialogue we I in open, we've update no of be to do been pretty to talk [indiscernible] will to future. But may we capital --

Operator

[Operator comes with Instructions] our from question Research. And Wolfe next Alex Kania

Alex Kania

growth. on a question thoughts Just around distribution

to be get do of Or I think see of wondering that just evolves. to cash sounds to that how may next -- you out kind if want sooner? coverage and next make So decide it a works need on full you towards the year? a of kind was sense how to just want wait there a just like industrial question year. end that any kind on to Just that you year into maybe, decision other, of there's,

Rod Sailor

that and to No, that's I our operational see build every again, appreciate have continues looking continue as to question. Yes. quarter and capital the I coverage mean, the performance we at we something needs evaluate we seen.

bring we that to as further continues operational XXXX around more closer again, firm into it and up think that. get to again, us positive outlook. our we'll evaluate think, I developments I But

Operator

over conference session. And for concludes question-and-answer like remarks. turn back would this any the to to closing Sailor Mr. our I

Rod Sailor

already to very only all us excited that quarter Well, importantly, we're our thank today. across you transportation Williston. to our Again, joining our the on third potential the the performance in seeing importantly we're expand more with system, with with and the for get our already call and in the in not opportunities and Velocity capacity acquisition more our about we we're but the have, that that expanding areas system, integrating presence the in

just a dedication. interest Again, you to you safe hard want very you. thank I employees and in much, for of the work again, all all for So on day. their thank our recognize closing, call. have your Everybody, Thank and

Operator

now has The for Thank presentation. concluded. conference today's attending you

You may disconnect. now

Enable Midstream Partners (ENBL) 7 Nov 182018 Q3 Earnings call transcript