ENLC - Earnings call transcript Q1 2019

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to EnLink Midstream's First Quarter Earnings Call. [Operator Instructions] Please note that this call is being recorded today, Wednesday, May 1, 2019 at 09:00 AM Eastern Time. I would now like to turn the meeting over to Kate Walsh, Vice President of Investor Relations. Please go ahead.

Kate Walsh

morning, good and you, everyone. Thank joining Thank Midstream's to EnLink today quarter you of for first XXXX discuss us earnings. Officer; Vice Participating on and Operating Garberding, Executive Officer. Mike Davis, Ben Executive Batchelder, the call President today President are Lamb, Executive and and Financial and Chief President Barry Vice Chairman; Eric Officer; Executive Chief Chief To and our the to portion of operations website. call, Investor have our posted we today's report accompany earnings release press Relations our website. available Shortly on after a will make call, today's webcast we also replay I that including conference expectations meaning considered you security will about or call within federal statements be this remind laws. during made statements should the the our future, the forward-looking of predictions, is Actual in statements. these results forward-looking differ may from what described materially

and forward-looking no revise Forward-looking update or we statement. to statements only this undertake of speak obligation any as the date call of

Definitions of comparable measures the on we SEC press information described as earnings under release is for these Additional results actual filings. that herein cautionary the this in the those cause the available disclosures in also certain call well make these This as from at are non-GAAP press other certain factors made GAAP enlink.com. earnings to enlink.com and operations our and includes located what reconciliations differ in our and operations report forward-looking earnings including sources release statements press release you in of accompanying our report statements heading call and in our could available filings, review to measures are and our on measures. encourage financial Risk We Factors. statements SEC and

question-and-answer the we period. start call of XXXX done Davis. segment are leave With our align turn reporting then The call at to Barry Barry, segment and reminder, business. segment into a remarks now modified would of Any open the and methodology. XXXX are segment the our As better remainder we between reporting be I call running XXXX will recast level by prepared with XXXX a like structure Eric, for results the the comparisons with using how a to to to Mike and over that, quick

Barry Davis

Thank our as and outlook morning, simplified quarter good EnLink. you discuss us report as we And you, all everyone. today first a joining our for Kate. newly Thank

As generating and integrated ability very with key we've platform our corporate been to off with purposeful intentional paying strong highly EnLink's structure, projects. and That flows approach centers. supply cash premier our accretive the building repeatedly is business basins demand with large in asset bolt-on

out back X we I have the and together, look business things As stand built at stand for me.

asset with First, only level well. We're our from financial XXXX long-term flows performing the not our on achieve well platform but exceeding our our market's differentiated expectations expectations, is and diversified objectives. to operations company as very track cash

and with our Second, expectations. now natural we III expansion accretive highly Lobo on place the our will We activity projects and excellence execute gas exceed plant increased continue producer into completed with ramp original service. to volume footprint, recently processing

And XXX,XXX with transport pipeline out our pace processing recently a me gas natural III million fractionators the Mont supportive be emerging. asset and two, increasingly relationships drive we platform bolstering flow operating returns return see announced of over Permian even strong is We for Number to side, our we and opportunities and in high the in capital efficiencies, a Midland the financial hub the attractive the our a a to Belvieu from long our us. to strength. to which community growing And to completed have sustainable environment. advances ensuring some free growth XXX plants recently Louisiana. access supply oil enhancing EnLink new also customer Basin. we NGL Riptide that our Basin third an term. driving of continues continued barrels will within in a allocation have facility on to three, of growth We to Number able price project constructive our Delaware macro-trends Cajun-Sibon stands and the is cash focused that the NGLs combination additional And one, in on new capital we thing expansion, environment. plant number accelerate more the in living have day producer drilling capacity

relates growing drilling capital large of multi-zone of developments. the One efficiencies producers scale to key areas for

from rigs. being the shortened wells leading As the field significantly with drilling times exploration phase to producers transitioned fewer drilled cycle more to full development phase,

consistency Specifically for strong years growth basins. our we've across seen few rig EnLink, over past the

rig we you ahead, as expect come down during XXXX color give the will portion. Ben efficiency throughout naturally likely to Looking see more Q&A on ramps. count this rig

allocation like plans returns. development evolve As development strategies, and improved midstream integrated companies areas their will us their producers capital the focused optimized ultimately in increasingly their we be believe well positioned productivity, their of key beneficiaries

day of and what macro-trends all the the creation with over long value make term. returns decisions attractive side, advanced based exports heart that end and to value it commodities of value terms of in are to attractive the our of to is in I'll to we team We're EnLink. at are a stakeholders number With position the the in for returns drive are create on making the vetting play companies return role every our at meaningful every all to decisions turn growth. energy return that, day projects certainly stages returns. Mike. day, over us of that and of And developing, rise. the negotiating and a perfectly In the all At on Louisiana demand assets We've

Mike Garberding

Thanks, everyone. good Barry. And morning,

very performing from where summed very are. business well cash strong segments. we flows up is I with diversified think our nicely The Barry operating generated X being

deep projects relationships EnLink of in has Basin execute driving relationship example announced subsidiary upsized driving excellence in deep longstanding platform. be who incremental honored with Permian Basin. opportunities provider differentiated expansion projects. with A Delaware one service to we relationships key a is the customer be bolt-on of operators XTO infrastructures continue XTO, our accretive a is a the and We plans yesterday. return along right And midstream and highly to to great is a key are the ExxonMobil, developing plants our production the and we one most for them. their will EnLink recently customers required in of growth Permian. active growing high XTO's the of with

nearing forecast Lobo full added at gas will up Our additional our in XX in updated capacity capacity processing to months. outlook processing next complex requiring XXXX the be natural be

among $XXX be be approximately million to to range expected X including of growth expansions. all X construct capital that plant to plant We we compression around commitment and to Delaware and highly estimate develop new times venture, million net capital accretive will effective a and the infrastructure, the changes result, areas. our Texas gathering EBITDA this Basin. we'll a part Delaware And per The times of cubic project, associated EnLink is our XXXX. expected we're expenditure million demonstrates our spent with period. million invest growing over $XX asset plan to our allocation NGP around the XXX no this partner during gas adjusted the EnLink's through around feet with cost processing investment doing to to of share As XXXX multiple in project's day project to net $XXX as with joint

to Oklahoma. now Turning

very counties First the X as acreage growth Midland Not STACK's growth consistent best are the Oklahoma of we and a with come the an Canadian, is area and we believe same, economics. tier belief Kingfisher. long-term all the in top where based unwavering on Blaine in foremost, play. the and we've factors some but position have together, This

lower Second, Encana sequentially newly which factors continues its as transitory is XXXX continues quarter optimize its plans of public and to the on the field as the to a today. the being and transitions still transition. in Oklahoma to Roan integrate XXXX driven compared is and in customer primarily segment completion executing first saw for as as new by of drilling strategy adapts acquisition independent these it volumes Devon establish such well quarter we other company. weather. fourth to were The

quarter a strength While year many we our seeing the and meaningful of end taken asset being great schedules. have longer for to provided economics some Of still transition in we this XXXX. we're for Oklahoma one we of company-wide a see years in financial come. years quarters in The and already aspects and is the to including have and down see came for with core at we're many our to XXXX compression first now From we supply capital top remaining expect be a placed XX% adjusted XXXX will In in scale bit compared online growth our as outlook wells of of volumes the XX% gas to first producer best X% majority anticipated, XXXX. it growth XXXX year, the a number our the expect expect infrastructure. to the STACK. we very the as fewer and to growth midpoint the undoubtedly competitive we and expect the during volumes diversity Overall, Oklahoma, segment balance a wells long-term EBITDA of of first and is and positions almost for average of business seeing than of saw perspective, than contributor to of up we online on April volume Oklahoma to continue with growth we program to XX% with STACK Oklahoma the Because $X.XX and a the those of of quarter. confidence than gathering for growth known on ahead, this year We're expenditures realized believe volume billion we XX% through have volume of the spent be tier the in play growth are for locations us at in the crude and and maintaining double total online approximately outlook the we quarter. volumes average higher the the April the approximately quarter,

X a Now relatively through turning consolidate competitor's EBITDA operational small acquisition, diversified made times to X Running a step less out continues times on to side the has acquisition we segments approximately a flows. is flows. to North million, adjusted X cash position Texas, of to cash our of growing is an be and of than efficiently in contributor Louisiana. forward Barnett our multiple Recently southwest $XX strong footprint. operations a The

a online and in continues barrels NGLs our III Our be to steady to transport to Louisiana. us. fractionation complex growth brought We for mentioned, XXX,XXX Louisiana area recently, approximately of Barry able like Cajun-Sibon segment we'll

market, have we secured. the capacity the good place right of closely fractionation We are with in a NGL continue to monitor the evolution now

volumes this natural network to due positive and Louisiana for continue saw tremendous We a of uptick to steady processing a our quarter remains see Louisiana across source volumes gas in environment. we an commodity opportunity us. transmission

favorable our As Barry right exporting there're asset around strengths. some mentioned, platform into macro-trends very play that

encouraged on We in how is achieve. call exactly update EnLink in we outlook. a right Stepping I'll projects plan. and need turn all with what back performance number set importantly, give commodities to financial on to do Eric achieving over of to striving is an more look confident we total developing. With us at executing we out exactly what set are across projects we're are the not accomplishing. for the are pursuing We're most these could team and company, and very the where to and taking be returns on I out that, potential to now now our be, a

Eric Batchelder

And you, Thank good everyone. morning, Mike.

both Mike million and $XXX of the highlighted, strong street first results for We the of and cash flow expectations. EnLink exceeded adjusted company achieved for quarter, delivered Barry XXXX. have which EBITDA As quarter

street Our coverage again cash for company company quarter expectations. $XXX line targeted distributable both was of X.X expectations of range X.XX in for flow X.X our street exceeding the long-term with times to and also and Distribution times. exceeded times the million and quarter,

quarter of solid profit XXXX when XXX% increased to growth reported when segment business segment Our XXXX. XXXX. XX% first profit the profit growth. first segment Permian to in quarter Louisiana also comparing first quarter achieved And compared quarter XXXX over Oklahoma over in first of the

commitments profit with As which the end XX%, segment expected, the North Energy expiration of Texas was driven minimum in volume Barnett decreased of at for XXXX. approximately Devon by by our the

perspective, and the focus optimization, of management for result diversification the of expectations the our of team's of we strength first as as the of credit achieved X.X per facility, in business, expense long-term continued quarterly financial we flows a distributions. from From goals. the exceeded segment quarter. our first on compared an cash is XXXX declared which EnLink X% flow with a to However, and from when cash North annualized EBITDA Texas consistent leverage Because ratio with quarter a to our XXXX its increase calculated of the distributions times increase debt-to-adjusted approximately solid our

We the quarter a liquidity maintain position and availability continue of with to $X.X billion. around flexible exited revolver

notes metrics. We need our to also million $XXX allocation closed business From while a with offering capital our access to value return projects fund markets. priorities to and a cash the accretive in highly stakeholders the remain April, create senior and significantly very reduces successful maintaining our which financial key flow standpoint, from capital our increasingly

it up longer conversations. we briefly support to to One like comes is future opportunities. topic potential partner continue because lot infrastructure item view to address evaluate larger asset partners projects, we in as would As a dated, the I sales other of global a

years calls, don't steps any taken sales there prior we time. and small grade on to planned we've this few a this high at base asset asset time. discussed we've magnitude but have of here nothing There over may our that be last asset significant the As at and monetize,

XXXX outlook of $XXX range net continues for million projected capital million to in the expenditure Our EnLink. to to growth $XXX be EnLink

of spent in-service During we year. expenditures be first capital $XXX quarter most on will growth first XXXX, the approximately the larger of half million of projects as during the our

incremental by We in February closing million to has expenditures XXXX the to the joint Delaware for from about of X growth range. $X.X with related XX. capital a reaffirmed for to financial in to on be of billion outlook range $X.X on average a materials segments. what We partner the with times in growth said us X will a recorded venture net expect to ranges project plant the income. level capital expansions earlier goodwill our $XX that our transaction presented aggregate billion our of other connection expenditures reduced our maintain Permian basin and in XXXX new and simplification our contributions returns offset expectation on the of of have downward in on XXXX, the being on growth January the revised capital income times be Mike X-year XX exception result we company been plan to $XX impairment on we track as guidance released with Net Building million

X.X long-term growth with of as to XX% to Excluding guidance unit adjusted and to and net target impact, unchanged our facility. guidance. plus X.X continue from financial outlook XXXX tenants time this time of to per original our by XXXX, noncash credit long-term perspective, income to X.X we distribution X EBITDA our remain coverage goodwill distributable time of consistent is debt flow From time, a cash calculated

to over our Our term. commitment turn value to sustainably and long I'll that, With the supports strong creating stakeholders back to now it over outlook returning financial Mike.

Mike Garberding

us. value what Thanks, we and creation Eric. creation is is tremendous up, projects for driving it To value are accretive highly executing on sum all focused

each customer to talented up start We and us. EnLink industry make call about better opportunities continue have we're accomplishments robust that, relationships to all and provide we to the team day and a deep have for a come. open for that and how may stronger, excited to you wakes questions. With for is XXXX thinking off that great up

Operator

Dennis first come from of Merrill Our question America Lynch. Instructions] [Operator Coleman of will Bank

Dennis Coleman

a guidance, same the should, into we some remains volumes translate might guidance bit hit and like Oklahoma numbers I confusing. start I with the wonder lower to little It for seems but guess, if XXXX. that EBITDA, there's the some likely a in

just that. there, guess us put help you out to that I so if And square question broad can

Mike Garberding

is this Mike. Dennis,

start with this. let So me

also we're there what had seeing outlook. and you the We have company-wide that mentioned, concerns in revisions business, our XXXX Like in and the around confidence guidance. with to questions is mean does execution or in great Oklahoma to

you missing. need truly you thing is results. I take may that's business first first driving people something the But again think is can be our see the that if I the quarter, to that. And you away with think start diversified

execution at which as that over-performance on around and today. relationship quarter not contracts break are relatively the a as $XXX accretive new Texas of So seeing apart North part just so bolt-on you the we're level because for over-performance to this is that understanding acquisition margin look really what's quarter if was great Permian performance, today. but one-for-one that's market Oklahoma quarter in going performance, for accretive. added Ben about over-performance for really start too Louisiana And with is and was volume Oklahoma driving which it. company still expectation, for assuming the EBITDA. and quarter. performance, growing. is address just or the look really the that to EBITDA up you what above equal you think mentioned, how flat, And with of

consideration do all first you start the how guidance? again then that So So for take in with quarter.

of So ahead first cash-flow expectations the on. first the projects four of million market In quarter from big we is coming $XX a have year, half standpoint.

Thunderbird, Avenger Cajun-Sibon We and and have and we are Lobo running. Of Lobo have up Cajun-Sibon III. III III, that, already III

drivers flow. new cash big of So

you example. X used segments quarter, If guidance just about talked I on first about, of segments I those the think voiced strength an as XXXX those

of So and X North and about if Permian, high, $XX Texas, that's look between those Louisiana that's at difference mid again segments you the million.

doing, as providing well is that at which look the the as is you X in If accretive bolt-on to also acquisition, new the opportunities both results we're things the XXXX. Permian

Oklahoma it that low, When Oklahoma, low that at you that's further end Ben about see at at in Oklahoma we look and and we will and $XX around mid on you growth somewhere million. If between look that. look talk

diversified feel the for about all over-performing and what today, of those are that of and driving that's the that up and story. us confidence. we're seeing a again of what cash add business, story that you great but today gives piece flow Oklahoma a it's We assets is when all So again business that drivers the

about trajectory we of Dennis, business. good So, the feel the again

Dennis Coleman

Okay. on That's something Oklahoma… great. Was Ben add there going to

Ben Lamb

Yes, Dennis.

I understand X out the change people couple think came through what's is in And research last coming there. night there of in better now that factors wanting to really Oklahoma. the is

The customer of in as Mike well about transitions is result that count remarks. and those first timing his a prepared talked factor

well fewer first just the really we turn So than quarter, to expected sales delays. had in

some some XX% We the XX% in also paired trued of for that year where have up levels. we of balance to some updates all the with had morning. And them that came from the we've producers revision this of out activity

is lower thing by some second in Oklahoma lives. for done rates. The aggressively are the decline the we've we've more resulting What We the choke this We reflected winter. early thing rates, decline late have reflected understand in at not lower had doing X EUR fairly in over really in is new improve point IP And the production hit think estimate of growth that all time We've seen they around that because they strategy. will the their our rates. that in that the but producers freezing mid-continent significant was weather. third we lower wells events

And at a MMBtu's you so look day. XX,XXX that XX,XXX was when to those,

volumes February, We're said, in in April result. So and great. volumes already X% expected. together quarter differently really on January, March, how We gas saw still first the in month above the than But was Mike came looking April. our of in our QX the highest we result quarter as volumes got that's lower we volumes lower

change producer talked come that of So XX% all that again don't Mike margins the about thing range the you we've X doesn't year. given of said, on for necessarily our said fruition the point, are the the the margin handful with the change that expect who of year of a already remember, year, through plants. end because and volume seeing smaller higher give It's the we've of in team quality to of schedules accounts us some factors wells into data for And better And capture that. the than XX% we out recoveries we on provided translate a results of XX% about. maybe to fuel that's the one-to-one in margin important to those the factors We're other unit to burn like April. Mike the being bit expected our remainder able to at exceptions as through and that's little per guys and to the we've Oklahoma, the been optimizing

that would So is that same volume best assume maybe because their necessarily margin not be by is to by that it x%, down assumption percentage. down

Dennis Coleman

detail. end the low sure correctly, you helpful. of That's for be low towards super will the could just it still little be range end bit may guess Oklahoma Do below? it that of Thanks the so range. Okay. I'm make the to of or hearing all think you a hit I

Mike Garberding

this Dennis, is Mike.

today, we as where I we're we as the think range. innings, the sit in around end sit far as again of low early

we to call said, key period Ben to yesterday Encana continue transition had do really of there, And a doing and producer As their a of Encana. can we're in lot there's the as -- in about their again that a transaction for initial just they there's they a successes quarter. but things of said, we our are lot disclosed first talked Devon that business. and what customers, optimize

transition. productivity what love Oklahoma and quarter of have again a belief a seeing the but long-term look, this really in what in so represents we're strong And we seeing, we're

to first the hear is So when cash sit around you the is year, the that guidance. the flow think need about company side diversification the from closed to driving of of for statement low you we quarter. in how it business you get do business But standpoint, a we back that of the

Operator

RBC Our Schultz next from Markets. come question will TJ of Capital

TJ Schultz

just so plants in to the you in kind changing the with the levels the understand STACK. in or of and the guidance? previously do plants that connect some on of any XXXX well you were the activity But still XXXX, capital expect well are to STACK placing return of in CapEx billion bulk of assumptions just that given and in producer to billion I XXXX $X.X for growth The connects $X.X that's through XXXX

Eric Batchelder

Eric. it's TJ,

think note billion the a because down well, the terms the the as as up activity. changed referred Ben Mike not billion. hasn't STACK of represents going the $X.X and some we all outlined cash, mix going you and confidence with changes the laterals, Like to $X.X what's his few $X.X of and be have happen remarks things bit and that spend. flags incorporated build of to continue the you in and mentioned, in to compression We But Mike $X.X changed years guidance as into billion to and billion of year's and strong as plant out that to to little in mix this that's over to I prepared that said, have which processing still as continue like will we that quick part overall

Mike Garberding

is cash is done about was flat the to platform, and I alluding then a us XXXX. truly lot quarter it's which of capability continue our do. do like of like we have Mike. of and level to capital, And it's and really because will be optimization in the timing to this still the And to and TJ, think capital first for timing some the of quick that you're we talked for we

have incredibly around filling shift people in have capability that for is it Oklahoma projects growth to still our and between that's I platform but too. hear important think still to that accretive

TJ Schultz

for mean Okay. needs of next lastly, couple capacity the does Oklahoma just for then what utilization And and out years? your the downstream Thanks. over trajectory frac just of now,

Ben Lamb

with mean and doesn't multiple in anything do to of XXXX West our Texas filling frac Ben. volumes that it's but the North from we a ways Oklahoma for have also portion only NGLs We really volumes It volumes because our fractionators. the processing with of the not Texas those now Louisiana. addition fill them TJ, opportunity in in we business,

the our I the change for being So year. fractionators to of don't in any full second half the outlook see

XXXX and the call at As capacity third Belvieu. in on term changed with beginning market have really talked about equity either. us seeing far luxury late we of the positioned you to that the we have expect in capacity frac hasn't projects so through at party in When GCF develop think gives frac last are frac on since frac already we we flight as also longer we the many the deal well fractionators that are the combine quarterly the XXXX, XXXX, that comes that our that of and in how that Mont outlook,

Operator

will next Morgan. of Our come from Jeremy Tonet question JP

Jeremy Tonet

to with just start maybe want I Louisiana.

think noted you incremental on quarter. I was events that there processing opportunity the helped

wondering that could explain if of and those you the more of do Just you balance year? the recurring see little bit kind over a

Ben Lamb

things. processible. lean we Ben. in of it's a streams One It's some to Jeremy, Yes, able off coming couple processible, is the of it's gas, successful gas was of were interstate being plants processing direct to but that It's pipelines.

Sometimes see that happens Northeast. because you ethane rejection in the

to in some Louisiana up our neighboring the and pipeline also seen of benefit. facilities operational issues. ends to their handle in volumes coming so unable had We've ethane Louisiana they've the that accrues And to because our

well. And on that capitalize so to we've as been able

to NGLs. we balance with of some whether handle dependent. home fractionators And we of obviously capacity the for the will the of gas pipelines, that expect expect XXX,XXX, yes, year the necessarily balance have for a opportunity And to the is Yes. expanded composition for possibility. certainly But wouldn't off interstate for a really control the the what the is able issues about opportunity So that continue operational be those to the year. coming of year. neighboring that now gas is through But it's throughout where

Mike Garberding

Yes.

much so opportunities gas those in opportunity And one of have XX-XX the side and the product gas is the you last you it I the Louisiana, months the think, it's to processing you look because market. too at for into saw is really see continue history capability look that growth system, at Jeremy, of when over moving you exactly of that can that. in And you market. that

So we what as in about feel seeing we're far really good Louisiana as additional opportunities. those

Jeremy Tonet

versus just maybe that little plants the from results onetime frac onetime kind is more, events spread of of quarter a seen possibly the were very versus would kind how some coming a the events in you say strongest peeling much online, this straddle time. new Maybe because Louisiana long bit the those or of projects we've

just kind ratable figure what of number about trying to going a so out And forward. to think

Ben Lamb

the Permian probably low fairly Yes, or in I'd all propane ethane. gets ethane now, a the I way that the spot $X.XX the on whichever mid-continent. either not and Jeremy. gas field number, case, we've the are us, It's hesitate and ratable like propane. right And it's seen It's market you to to give to a ethane gas lean primarily from in $X.XX gas, opportunity right? mean,

And so the we the since barrel it us when business frac get to costs, for it's some thin. we all is great cost is it. operating marginal But own and us the fractionate fractionators great, spread

Mike Garberding

But margin alluded business other. it is the as to Ben compared to, lower

Jeremy Tonet

I out was any Got going as far there? spreads based is Perryville, one of the if you. just to last Louisiana just fee one on in And as kind basis around helped any -- there or really Louisiana gas could, there that uplift everything quarter

Ben Lamb

load actually it's see. expected the we and when in stronger seen normally factor was everyone that to of us. as through winter see what really great hot and factor summer a their not outside gas. for A We've you're in seen the Louisiana trying factor we've on. which we than saw urban markets last spring, that performance is, that kind air has conditioners more good that's understand it our One No, we to in in the the

Jeremy Tonet

was just top explain could, the there? goodwill with little bit make one happening clear if could there. sure a Just that impairment, the And we're off I to you wanted Great. more what last

Mike Garberding

and when Look, allocated was Yes, by goodwill formed owned was that it Jeremy. was gets there the created were sure. that to in XXXX, IDRs a Thanks EnLink ENLC.

January, requires GAAP close and cancelled operating we IDRs previously out the that to those simplification goodwill when in corporate So gets level segments. were allocated that the

to book goodwill And the market so, of to and business of is have effectively the then first, the to And segment segments. compared allocated each then relative segment. the then each each the you And to gets value ceiling. value value the the out calculate that of of overall

IDRs the Louisiana segment. corporate require around to fair the a I that the And down It's move they away segments. of, of book led market and so said, GAAP-driven for like really sort the push across the to level that analysis between a that goodwill it's going and and you part value difference

Operator

The next Gershuni from UBS. question of come Shneur will

Shneur Gershuni

guidance the margin impact side if little margins color the to on with respect contrast some you we you to that today. the as was can I theoretical have on of there's the give of the responses, and had contract at more about be time volumes a the mix, well crude you your a against bit off us Just questions as around the that may in sorry talked up EBITDA that wondering starting in pick XX that same if can But under-appreciating. guidance. with margin again, on crude it fact reduced you

can taking of we of up, the what's if volumes down. of impact Oklahoma versus sort So pieces offset get negative taking the the what what's it the

Mike Garberding

think months level and how had Ben. is on past set Shneur, more it's the come or crude, Oklahoma projects X Michael. it about of in just I so. venture start coming crude projects: then I'll really the because the pass the in we talked over X a standpoint and Delaware into big then X in play you've from to But to

So time. for that continue a game more to of see us, of volume growth it's you'll been over

have stable. as ORV, in stability So for decently good as We've far I seen margins, on been for too. crude some volumes think example, margins

growing So over there. then to plus it Ben. I'll stable And turn

Ben Lamb

clarify and of need Shneur, I said. to some I maybe what

solely in not I side margin entire was the crude. Oklahoma, talking speaking about to the was On segment. I

not that than volume just now across level we're trying to I'm see. expected if growth an we're seeing Oklahoma margin assume say while stronger things like day think profit we range certain All forecasting providing day things to performance driven And burn. volume in fact out. the driven team marketing. So by been today, that when piece necessarily lower Oklahoma, should segment of profit again, are we're we by business in Oklahoma volumes does driven percentage out we a fuel forecasting a making the is, the well, of downshifted shouldn't about had all you level. same like by recoveries. you we're is in like saying that segment for updated by because that things It's x and It's on lower so that you shift margin. better things product And that a that's up our It's by a the percentage,

Shneur Gershuni

side million, about surprising your understand details have gives you the point better. that And overestimating can guess better so fact that on But the guidance, taking that my so and so maybe understand the of may projects of crude trying had think side stays same. questions we been the the on I and you've kind EBITDA you've impact guess, we effectively gas I of question us volumes and what underestimating side. get side? about for we million, guess, impact helpful And the that And away margin other about being adding they I the $XX side. know the value listeners it today. we're better the the really the on versus us to many of, that I No, collective across side but is, margin so cost gas real the the down that why volumes we just us around gas understand trying the help think the would sort some gas the your surprising forth. are It can understand And to we more if board like what I we versus for question that there's today. theoretical and overestimating -- was And impact that's one that square be would guidance $XX the crude clarify I

Mike Garberding

Yes, Shneur. good a again. This Mike is question. It's

you can't that's term confidence have of not point us, think we're longer think we're Oklahoma, a I view. happening. in what again hear again and what's here, enough and I seeing the from exactly transition we Again talking about a

through you low we'd end for you segment that the do the in when Ben margin, commented around atoma. be gas about the the say I so think the how about Oklahoma side and walked And when think you

basis. And so and and percentage from is again margin to are overestimating our think about change pieces seeing is X that as volume a It's crude to in growth point, change volumes you're smaller get our been doing and which piece is Oklahoma continue a we're margin greater prepared business. capability a impact. using that do provide people in to the a I talked margin overall One opportunities And think is, second in is saying the starting what through, we gas the absolute piece volumes. growing comments on is a in there's to for the I really have of Ben the our but is gas what people walked crude margin. very what script And the crude it basically of

all combined the it think confidence give business. and point seeing. I making so helps And But importantly, most you're to a is that we're us in gets diversified what

of in lot a are have our driving across confidence that we We that give guidance. of where things opportunities happening platform good us are

Shneur Gershuni

Okay, to questions counts great of Oklahoma of forth. fair some guidance some of and digging for gave prior volume the color and enough. In in just well the you on so in sort terms Ben,

doing we we this we at specifically trend forth. And the thinking Devon's about numbers really and we different we've so guided now guidance and it's are about EMPs numbers? volumes net had interests about volume actually as about sort down, as forth, how X you talked revenue or so different it should sort and of look of couldn't of call this to and think You X seems forth what during Can But the and fourth look because think to be about why that a I they're you it XXXX? and Devon's are still trend. back following quarter

Ben Lamb

Shneur. Yes,

us the and that in last things We the you net to too operated gross producer their in in is look Marathon, group revenue numbers that and their is really Encana is their different accounts Certainly we've their the XX% With play, -- saying is caution you What to about done the I taking growth. and we closely the see, we they're EURs. is and versus that that against talked quarter, as their percentage you something higher the Devon look because the Devon certainly to though into and into what the which expectations in this look particular gross for account time, from that's previously production we net. for numbers We what saw because X account production about Devon production. So quarter, X production IP in the gross and outlined net as gross a about lower factors the is to about the result reservoir. in what others. play, in I we saw just on comments But what would resetting interest. wells other but our in of saying their the which still the a timing, to it's in the is production anyone's you can strategy their should that to first the can I strategy production that the different guidance so the call, timing little they're what we we producers' of today quarter. any Roan interest around and XX% lowered matters bit and of expected tying to they're all part had can matters think weather, you producers interests -- net impact them doing than saw a Devon, of think our what really is managing working we've fullness or our IPs come we production taking those with big In

on lower since see, actually data not from make yet over to judgment, time. we thinking that we yet. decline haven't yet it for don't enough our rates we have a benefit but have data what That's to any into or accounted We expect factored

Shneur Gershuni

enough. Fair Okay.

you a on and that. color little Exxon will us talk discussion whole leaving for takeaway be more have be I if can they in handling you bit CapEx. about potential just wondering opportunity I was Just bit Do the or little wondering NGLs for guidance was handling that? that, gas a for will Exxon if capacity the can you give here, growth

Ben Lamb

that. happy talk about Yes, Shneur, to

Investor that was Exxon's XXXX. by to they in followed But they a day by going Day how was XXXX our XXXX a didn't, in in people What were said XXXX. that big they grow X play industry. of to lot case a think XXX,XXX day BOEs anyone their now part given I just BOEs million communication a

time within that that period. standing because the to a to of we're shorter close be And beneficiaries customers in our of basin. we're one longest is going So doubling fortunate XTO

includes Exxon's focus And so in our XTOs that acreage. increase

you know, and invested far As and their themselves sure all of a to gas arrangements, for in have for they themselves have that their they they they've the that as projects downstream as make crude. infrastructure takeaway handle of that number

and So and the what the we're underpins our of of in new volume, today that's processing compression gathering that facility announcement on focused Delaware. cryogenic

Operator

The next question Tudor, Pickering, will Holt. of from Bean come Colton

Colton Bean

question come to the TJ's to back there Just on spend. CapEx

North Texas your you guys acquisition CapEx and Riptide prior in provided think I included look bucket was flex expense. updated think and million reconciliation of the the $XX XXXX and was the I that around the

$X.X by to like all if over that from time X-year for how Oklahoma accounted of implication $X.X reduction frame just effectively the Because XXXX. X% maybe the we $XX-ish over and again it for down seems million that that is or is even accounted modestly so, came that context billion So billion? Oklahoma that in think for about do in

be helpful. would thoughts So there any

Eric Batchelder

related on into Oklahoma, and would the I years, that lot And There's on. across of impact looking at first adjustments of that to move directly sit the flex. at things, has other a There's different has an some say a I X that or in as there's cost lot a whether wouldn't of platform today it's flows. along right. ebbs going that all quarter go to as we Yes, next direct things things further we activity X say, certain come here of things it's all diversification segments that and that

to look flow nature solitude some the period, of of we broad a going of I an think the short past. $X.X get various over referenced billion out over And in Ben which expect why still look we when ebb has backs But term, to the billion and the business think to overall. we the whole so $X.X the in we're periods to that when as entirety the in have across we that's time be that range period, that X-year

Colton Bean

based expectations the just it or commentary those And slightly prior as even for XXXX like that and the are move relates for it that on sounds to higher Oklahoma, flat XXXX? potential and

Mike Garberding

Yes.

and you is, areas, Mike. the this shifting and capital in doing when Oklahoma, we're Yes, think to how of a about what really so think project So in other term highest about it's we things.

we have to so And do again that that. capability

seeing mentioned volume Oklahoma, and and think when see So about that year. X% over growth growth we'll you That continue volume we'll that starting continue to in we're Ben volumes in April continue have growth will the to capital.

on said of Riptide it also example. X-year some Eric what to also I But on, broader we we're at consideration Over that the a talked spending periods. in way bit than expansion about have as about between capital you in right to to the capital that that again X is period changed. I past, the things thought, of the the smaller talked in So capital for we're to when more Riptide times go it about we you is how used shifting like little think efficient what executing take number but we whole. think volume

of are So couple I think those pieces it. it's driving

Colton Bean

QX call, gathering in I think off had Louisiana, you a on had roll all briefly contract the just noted division. you And there on the

we watch the course through year? out result, QX Given phase anything that of or the for the still re-contracting effectively are over to

Mike Garberding

that you're had have Louisiana over year, the business some What that segment and roll-off. in leg for that you we a in north year. still do course but of of we've already of bit little in earlier contracts transportation is about We this the talking the will was all that accounted guidance roll-off Yes. gave

up in coming regard. So there's surprises certainly that no

Operator

question next Citi. Mirek of Zak come will from Your

Mirek Zak

also are come elsewhere, activity the what the you reduction or specific or expectations And some move producer EnLink? customer dedicated that color contract if around around color not in are provide rework or your can mix back helpful. acreage STACK those SCOOP you permanently have the rigs the Any on to those perhaps would more as producers Can be of, volumes? producers the seen more the Oklahoma provide and expected to play to you

Ben Lamb

that. to little happy Mirek, Yes, bit a about talk

With his me a one as factors. add have So or their public of in with was any go with Mike acquisition We we integrating in isolated field that transition. into are And X their producer. the strategy that and Roan, new actually That well impacts to timing let first producers have form play producers one it's transition it's it's number going that on said a could of list. saw company of Devon, prepared a the others around the number count. and remarks, we of Encana, through through other bucket not

it any certainly not So one producer. was

In terms at has no not the picked That's one up of long-term expectations, their there's who all. toys home. gone case no, and

their number changing. For all funded X and of portfolio our number in big, significant producers, the is STACK the either that don't their asset X we or see

today number that do What lower too that is gathering XXXX, we into growing MMBtu's a speculate a it's for the XXXX million get we'd $X.X large until the future in and of to while activity, still this an asset have around that it's early way XX% the about asset budget XX% the that we a lot to of fall won't what we've is given cycle. So while hope is know confidence guidance than we you and producer know we today for, very against day. about north

Mike Garberding

Mirek, is again. Yes, Mike this

on what Devon they're report development slide transition X wells. to example X can wells has think happening ops around X the and great in their those last on They transition. months. the really talks which you seeing been continued a to over I the a as the that use have And about X

your continuing having necessarily that transition on. it's And so development new picking it's to through not up, the rigs work to success point to of they're them which

to thing. Encana, Roan look the same can same You the and thing

It going STACK in is So the we're to long-term STACK. we're what confidence what we're today. that for us, continue growth year to a see seeing of and But in to We XX% growth. on again the seeing that to XX% still what it's this transition. term lead is great going longer to have

Mirek Zak

new Delaware thoughts party would fully this were maybe around committed plant and outlook suffice there involved commitments XTO is to there. And it. are the your XTO or how volumes growth Got years? here third additional Meaning, the XTO this of and Okay. next give processing your you XTO of how actually And if over to many at see out also can you the has plans few for idea rigs us point. an acreage expect on Permian plant

Ben Lamb

fully to it now. Yes, be the committed at relative the will of us XTO will XTO, Lobo our increase is led to But this of so terms in what it's expectation the to complex; the all serve is like of in announcement year Mirek, just from first activity producers. not. It whether it our make

by driven the activity complex increase largely in we near-term our XTO. and change from have now in being the So sight, the with expectation line full of original Lobo is today XXXX

they But been are a As as know market don't as customer. honest XTO, know, it's we XXXX of at from XXXX, a That's the at this they insensitive plan, off far company like is I since count that top the ramp red to as them we say on plan ahead thing to activity had in They've too footprint which a relatively the all having minute. don't I hot my year. answer. XXXX, today, activity a another rig activity. there's changes some and looking early significant far about very drilling head we're this know

Operator

The Satish with next Praneeth from question come will Fargo. Wells

Praneeth Satish

up other LPG EnLink just about in is you the like project, advantages competition may competitive export have be there. can On potential seems the area? versus It would talking the incumbents picking

Ben Lamb

Praneeth. Yes,

now and it's picture position just big business the LPG broader was exports. previously baskets, they have thing an matter on Belvieu and like really fractionation in Louisiana. than rigs Mont in think our one and the Gulf a offers for So just crude that, had same all to We we nice Belvieu, built in in commanding diversification Belvieu that X their alternative that LPG for Louisiana export, rigs being and can on not basket the Louisiana have and producers for a that Coast Mont who in the it's is for

one most advantage Houston obviously come is strategic that American logistical operational the so fact export is challenges the and in LPG some offering Ship away that diversification some Channel for that. North And spot today potentially from the our of and that and there capacity with are

Praneeth Satish

just talk in have Okay, on you I the just of do Louisiana, those about much to that of gas gets you the that LNG export there? capacity guess you thanks. new then support the sticking much one capacity projects? And have there how projects event guess can available I system FID'ed, maybe could one how

Ben Lamb

there's couple layers So of a there.

the First, bullet. easy capacity the to of not put system a into is Louisiana pity

a refer a over other a points. of market lot into I of it lot to likes from over runs deliveries, pipelines. points have, has It to who that business XX XX capacity deliveries it's The receipt reticulated for system. as think We fellow points counting us to other of not lot a

of large little are so some capacity And that in LNG adding capacity that at We've some way diameter that couple ground have But we already do pipe. basis a to thousand line affirm than the some little efficient to uninterruptible extension. much just we ability bigger very bit that it's in looking the to of system capital or or available. pipeline that up. the miles it serve But by That's compression to hard of of with on benefit to add and have and opportunities load. have is available done capacity looping of little line say picture we we having capital bit a a of the of a very extra of

Praneeth Satish

And guys? Meaning, just the on moving just how I last development cost CapEx connect to touch are the there me. guess efficiencies STACK, on question operating it. from then the well any Got with you impacts that side? either can in there you cube or Encana

Ben Lamb

a yesterday as last efficiency dollars to that rig Devon you're the really is getting and specifically and drill expect as producer of time to pads number focus complete Encana. field it to talked is the X-rig as and in in when they And matter similarly STACK to they and back limit program about what the new than Encana saying drilling complete comparison and at but the they for able they the comment and they many level fewer encourage from rigs call were that intend was in around almost. leader the it on the run wells a generally to and loaded wells doing efficiencies Delaware an a we the multi-well at moving areas almost be yesterday smaller efficiency And XX-rig look the drill that and the made they were basin. Yes, wells same were even take all I'd acreage. program. quite, realize and they of delineating at what Encana to Basin play Not as with But talked between won't go really I But their matures, Certainly fewer across their in capital just STACK. lot and said. everybody it's call. I their a market about

Operator

Dounis from will Suisse. question come from next Our Spiro Credit

Spiro Dounis

You in mentioned GIP projects. on increasingly partner earlier the just call seeing as a growth

seeing so broadly more that take? that what's there, a what I if that it color [indiscernible] making you equity? that or little And on as I a through is it sort project more of partner a then and specifically does directly form was increasingly that JV a wondering brought the say now you're Is you is guess

Mike Garberding

Spiro, it's Mike.

and business a with very starts we've We we our all platform this been on. focused grow is It think perfect something So from. have to platform.

you've overall market represent the We a opportunities also that us. for shift think that in seen

differentiate that this in And things do big what to access with we've is to the the based parties market of do GIP their of on in history what to capital. done One and willingness seen capability they've past is really investments. a

platforms the to thoughtful, partner. them very And us, to capability as out a is to and our continue so with in we be see build a around basins what selective for

position we with you. up different it's not We coming owns quite platform position in. that so others. a be it's to than large a that's think think the in, It's And financing partner structured great building it's a

with we market couldn't at we going is the platform build So a for us, give to our again great be us think it again better position then starts to that. and capabilities because around

Spiro Dounis

projects the And here would see be on appreciate up your come or current now? on CapEx partner and that projects them I color. Okay. then could incremental just in to we from budget clarify, in

Mike Garberding

of and allocation as think of a all to among above again you Louisiana could the we Ben of $X.X Yet commodities that small opportunities something Louisiana. us a capital the I alluded Louisiana, had any have lot of are $X.X because it's, to see is billion in in for billion.

can be some things So that we see interesting. pretty there

and be it could our it that platform. we be those. things it And core around M&A, level, So how be to on could going but we're it's to can disciplined again, all straight away do of be going at very be

Spiro Dounis

your efficiencies. not naturally last out rates? I I proven smaller One have the just by risk around for a your been larger offset you come I Oklahoma, think it's by scale from either Ben, slower or decline producer or customers, me, accounting quick. being that guidance has well do believe you rigs just was in comment yet expecting of down the and but the customers your beyond I to one on that or curious, guess it some was risked from obviously it. Got

Ben Lamb

Yes, so first efficiency part of gains? your question, the has yes. as is been answer it to de-risked That

the year. down can bit at rigs just a think to X little last their wells versus year That's XX there's in of spuds. last Devon's it's year X whereas last doing XX well This what they're of from to turn this I most sales, You year year terms to But running look year. ran about XX year. count this X for they

said think the I all. yesterday to I'd you for happening So also is the I second we their again it point in that world. can call repeat that real what time Newfield And to say and won't in

Oklahoma, XX% far lat-long those informs over when the the I'd year, as volume that name our the schedule 'XX us just with As to Oklahoma volumes of our we build guidance XX% of on has the that it. XXXX. and are growth reiterate on generally producer up risking XX% for rest given as wells rig

world that's at been business sure it's as be we're we've see activity gets. we because guarantees but real always hard mean than change, are of not point how it this in provided. we with the to any can So writing of I more that as could the the communication that

Operator

and to Ladies back our and for conference closing session. remarks. At to Mike this time, I'd the conclude gentlemen, turn question Garberding any answer over like will this

Mike Garberding

for for call quarter participation second Allison, you still everyone and you, today. for results your for this call August. doing Thank look support. and We you our with in to on our Thank updating morning your the forward

Operator

you. The concluded. thank now everyone for attending today's is Thank We conference presentation.

may You lines. now disconnect your

EnLink Midstream (ENLC) 2 May 192019 Q1 Earnings call transcript