ENLC - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to EnLink Midstream's Fourth Quarter 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this call is being recorded today, Wednesday, February 17, 2021 at 9:00 A.M. Eastern Time. to of meeting Investor like Walsh, to now President Vice Relations would turn over the Kate I and Tax. ahead. go Please

Kate Walsh

and Thank of our Davis, Pablo Vice are Financial Vice Chairman President Welcome yesterday Mercado, everyone. Chief Executive XXXX replay our Executive also prepared of on answers. good leave Davis. and Factors. we With Chief and with those call earnings expectations closed and release a laws. and discussion to the our can now Lamb, filings. results Ben our GAAP fourth undertake turn of filings, are We presentation We'll like remarks would under differ statements the or Risk these and speak encourage our you I of call will and questions open by results press on as Officer. release, and today's to Executive Ben heading the the and of of the predictions cause A Barry then other the of of to website. review release after Today's Participating revise. well update brief earnings Chief could of Actual in forward-looking Operating The to reconciliations forward-looking Barry, date include and are in of over press meaning to set call securities for President and materials including statements SEC call today remainder to and and Barry release be appendix and Officer; includes cautionary available quarter market found comparable This projections measures made issued financial discussion call. federal you that and start EnLink's morning, presentation and as also discussion www.enlink.com. those our measures. a that call today's Definitions actual Officer; the press call call at and will our from no in only within available be presentation. pertaining SEC disclosures differ this including may non-GAAP to factors on certain of the measures statements, obligation made We the Pablo our website the materially our as

Barry Davis

everyone. Thank Thank results. fourth us and you to joining morning today you, good discuss and for Kate, full year quarter our XXXX

our as it incredibly power After team XXXX that of strong We our ongoing spend impact acknowledge swift safe financial we EnLink to of have the also the also Thank and took recent challenges the hope most for operational results set. of the produce action home extreme our front XXXX impacted continue pandemic team all and and the solid proud the guidance that and targets doing. up staying beginning is unpacking time On behalf have year lives. thank all you're the to we foundation a running our that colleagues need to you, is for And weather performance. long number are continuously will aggressive and energy and EnLink's challenging a the stepped want have ensure and outlook. strength our EnLink truly you we the of an we at what we are XXXX having We to on I to healthy personally discussing our to XXXX, on results. operations EnLink, where want cold continue frigid who lines back is navigate members work battling to families significant get and those through event, to and to the severe states. of I your temperatures pandemic. up

another XX% cash strong have is by the distributions, periods free achieved total from achieved our elevated $XXX challenging This delivered EnLink of free $XXX in a segment Fourth adjusted right reduced and outcome reduced our EBITDA We free achieved over history. distributions execution guidance EBITDA of $XXX after expectations. all flow cash without ranges end of We cash our adjusted XXXX results from adjusted achieved line the distributions. We resilient quarter, during flow exceeded return of same where and tremendous removing rounded store what cash for million couldn't team. structure our down the We $XX CapEx costs most XX% and after essentially and quarter the our and flow and our structure. relentless four For business. both EnLink million drill into performance, flow asset of of net from quarter. EBITDA When million year. performance, overall XXXX we by leverage, segments year-over-year our capital over million thresholds with liquidity cost free our we strengthened we We one generated our fourth of in $X improved high is XXXX. the industry's for reduced over after billion we out

about let's we're in to talk Now what XXXX. going accomplish

four have focus that is executing our on areas We today. team key

First is operational excellence and innovation.

our to execute for returns. highest program companywide we ones rigorous a developed the and opportunities, the elevate mine efficiency have with We which

and accomplishing. leader Our with goal way well efficiency be in innovation our is are we on team and a our what to is

fully to and business We every challenging how embraced mindset operate better are have and each efficiency our day. in

improve operations, our which we utilization, push all achieve processes We minimizing identify, and which have while asset XXX maximize line. improvements capital bottom spending over forward initiatives and our how substantial in

we is certain in operational discussed, area sustainable the and I discipline XXXX achieved The are innovation financial largely cost and in can with we savings reduce and further focus likely and we flexibility. beyond, cost in tremendous XXXX areas. excellence think focus second just Our

very strong our XXXX. in in to to free of we approach year our year. cash and distributions are similar CapEx what continue capital flow forecasting XX% expenditures this after We sharpen achieved to another reducing we And XXXX, by

focus growth. area third is strategic Our

going be growth. approach disciplined are and to We with strategic to deliberate our

are Our plan bolt-on is neutral centered footprint better. highly our leverage that or around small, around finding accretive opportunities

an outsized portion We Coast our development increase our will business extensive opportunities finding efforts to natural which presence that leverage and gas infrastructure downstream. are our and Gulf dedicating NGL of

small-scale profiles type We number of around of the also capital-light, our searching opportunities types are are and a have truck-in efficient return that see assets capital for. of that compelling very we

completed gas Louisiana Storage network. a a and assets for our transaction discuss, have Hub us they Island we As acquired Henry Jefferson because provide Ben Hub the small unique will with we the These & assets. assets interplay of recently whereby natural our existing opportunity

through and to opportunity and we safety, today. and evaluate our will EnLink DNA we and to focus continue is our sustainability isn't return-on-investment standards platform in safety consider sustainability safety sustainability our every at fourth and is in accretive that strong do. everything lens execute that having not high And area final operate will the and we anything We highly for we

You innovation efforts, our public our and We to targets, will XXXX. year. emission carbon lower see in in footprint. technology up achieve goals, and working To we'll make our report, reduction this new both us ramp use we which on communication third with will substance our sustainability along

the months, to operations. to to I'll ever the one in going Ben for storms are best safety our the point, be it despite key that And been. renewable last EnLink our past increase own and performance we you operational over With example, use it continues turn distractions has XX For of energy the update. over

Benjamin Lamb

good and Barry, Thanks, morning everyone.

and we're Before mentioned event weather I that that we've experienced update, I Barry still address want recently our with. to give asset the severe dealing

weather As the grid. know wreaked ice the we in during areas cold operate energy which past which prolonged unusual XX days you the temperatures all with frigid levels experienced of havoc the extreme, along snow have on in and have

have business, sure gas cold the point, to EnLink have quantifiable, natural our to of we operating a the freezing thing is NGLs one not the mainly the at and short-term we've more and to Texas. is Our homes importantly our make are our for Oklahoma responded in to proud reduction the At how felt in repercussions they and financial heat online power operations isn't impact how lives. that we team but weather in recent but get our but and certain volumes, significant, only and back minimize impact for experienced this

the and X% land. that neighboring in primarily higher XX% return of exposure Pivoting sequentially achieved flat which the the XXXX. of Company-wide by in processing inventory Permian low-cost is reductions. and Average third in XXXX. quarter our compared segment total footprint cost is for venture million, Midland our ago to by quarter companies, footprint gas the the by the make from we on first permits. is quarter our start profit let's XXXX the talk quarter and for approximately walk X% own to gathering fourth of XX%. and have in in The let's primarily volumes the decreased fourth fourth of were very us a about natural quarter our of $XX for processing mind limited, Permian, the growth our natural on compared a of to driven in third area as than most capacity continues Mexico on the natural of with year Average business natural a approximately is the to the gas than days investment by XXXX. volumes exposure to from EnLink. producers the quarter drilling way limited XXXX. X% multi-year Drilling yesterday, profit proactive We Also these approximately approximately our operations higher with throughout gas segment the reporting a community XXXX be expansion. additional but strong contributions we higher for our part which were impact high X% assets strong lower very for Permian. Top approximately midstream when to the Now of side fourth we of consistent to of XX% fourth compared remains quarter around we driven New compared the quarter volumes business to accumulating increased of and been through our quarter fourth loaded our federal the gas results Strong net quarter activity joint for to to volumes announced Permian quarter is fourth

on Basin. Oklahoma Midland plant underutilized an our relocate to footprint going the to are We

driven We are add this projecting feet build. we cubic represent The second forward, during to primarily we look of to natural second will midpoint, to roughly When is the $XX strong will half of $XXX additional XX forecasting At day are which operational the need by the and over another why the of The of gas Midland half by processing we new the million, we are segment natural forecasting processing be savings our the XX% XX% Permian is cost in capacity year footprint, as business. of a profit expected a compared year. growth should year. expansion relocation the which million. million for our increase growth approximately capacity gas

it inventory and uncompleted will that We also wells on XXXX. drilled, is deep completed footprint have our our throughout expectation a but of get many

Turning quarter. gas primarily our transportation enhancements forecast at million for in similar at coming segment driven midpoint, $XX The be now from of fourth segment; the represents million. North of was it was segment also $XXX achieved This volumes strength bolstered to by a was the seasonal natural and we in XXXX in the and NGL XXXX. Louisiana, profit NGL Texas XXXX. coming strong strong out tailwinds increase profit in what quarter profit was a the for XXXX is increase throughout segment to from which is to sub the what very third XX% X% strong Louisiana by in quarter quarter a

focused be is Our is segment expected by rate XXXX. in in Venture natural Calcasieu business a result on the as additional with offset and facility, this growth from Pass of said, Global, the in in capacity like market. slightly business sub which demand fractionation lower month. Valley segment, excess to results the benefit natural opportunities is strong River Coast transportation of agreement the somewhat gas segment Ohio The gas throughout development current sub That run to very business our team LNG a began muted sub as our expected Gulf near-term NGL

assets downstream Island to which & capacity projects. emphasis of [indiscernible] working closed transaction an existing we and footprint Storage markets via new operate. at small accretive services access gas of transportation natural Jefferson These which and on Henry assets can tuck-in which quarter of our include because We are we're attractive bought valuable of and across the of our Island natural strategically the expanded base. gas us we assets, Louisiana that we footprint own system. variety Jefferson assets an provide cost these opportunities fourth connected pipelines, a the and a The to the Hub, strategy a is uniquely highly will our opportunities around on the types with our be Hub it's with of connectivity During across evaluating asset bolt-on great consistent focusing on of our with XXXX, example

Oklahoma be continues we X% processing by approximately were cash on of gathering XXXX. Natural for and gas of and sequentially lower of very down next, quarter strong quarter for us. XX% year-over-year. XXXX XXXX, which was Moving to of source fourth third and XX% flow Oklahoma year-over-year. $XXX to gas down the decreased volumes X% than sequentially Natural the volumes segment lower X% delivered a million decreased XX% quarter fourth than approximately profit the of

We off payments. an with bit MVC have contract volume with we the cash is step minimum roll-off that the that Devon, This significant been in roll see had last deficiency portfolio. had commitment the will a our in down flow collecting we where deficiency of of we XXXX

we the is than more reduction to are Segment XX% Oklahoma forecasting XXXX, of reduction profit related be representing MVC that a at $XXX roughly dollars to XXXX, expiration. For million the from half midpoint,

and The expect footprint which X% XXXX. impact a the quarter Devon's volume will in this from $XX NGL due BKV for driven volume compared expected XX% approximately Dow. this part up realize was January The processing brought During the XXXX. the third we the to was to profit our project results in joint we to million, rigs and to reduction see on the by begin of Texas, second lower quarter Louisiana by in our of decline venture realized our from while for to XXXX, fourth quarter early with modest fees charged North full JV segment half XXXX and receiving to the in by benefit mature with in XXXX project, basin we exchange part in from segment profit decreased Wrapping enhancements also in in of segment.

For gas predictable, XXXX, and could harvest of discuss over as to continue range. are segment we be for to the stable and be guidance $XXX our financial progresses. forecasting significant source With price year Texas we of additional midpoint cash there million to of if that see free at a North flow us profit upside consistency our pass natural the strength, in I'll it to to update. Pablo continues

Pablo Mercado

and I'll morning the with start you, Thank Ben, quarter fourth everyone. good highlights.

our stability repayment. strong our the of mentioned of same EBITDA. EnLink an distributions XXXX associated $XX achieved rate term million to last quarter, free including Barry after of as million and also resiliency loan $XXX million cash delivered and hedges fourth is adjusted of achieving with As a interest expense unwind flow This underscores for quarter $XX the the result platform. quarter EnLink fourth

our strong cash contributions. delivered four segments Importantly, all flow of

XXXX, EnLink end key and of our $XXX discipline ongoing billion free metrics adjusted of flow full-year after the of million. delivered capital We a and distributions teams' ranges control. $X.XXX execution, guidance For our strong result cash high of both for exceeded as cost EBITDA

begin work on Our do tremendous team all we fronts XXXX. continues as to

took efficiency of. is out our our administrative on us can and necessary environment. savings sustained that to the to relative are of proud allowed our reductions operating as swift XX% and and back operationally and We to structure be This although will come annual general focus cost and the XXXX, sustainable actions team truly control XXXX. in the from of success. front, XX% something On teams to variable be to increases, position take will XXX% long-term in expect nature some growth cost even industry EnLink in we of XXXX financially activity the for costs be XX% moderate

for and million will guidance the $XXX on our line net operate I embedded EnLink million that process great focus of with expenditures find our our in down to showing is a quarter from were was XXXX Capital team team step again down in cost, Along confident with full-year ways our a for midpoint. XXXX and to more will efficiently. XXXX. we in $XX capital improvement continuous CapEx have operations discipline. XX% repeatedly Additionally, am and tremendous

We approach are committed and a to investment disciplined hurdle quick with rates paybacks. high

XXX.X this our million One our during of position a financial securitization rate our and in priorities liquidity great completed team and facility of a work X-year, continues top $XXX maintaining with plus LIBOR to fourth be the quarter. AR basis an We strong attractive regard points. did

$XXX million coupon the a about with [indiscernible]. repay to We issued also term senior million $XXX loan. We of notes unsecured proceeds million X-year of used $XXX

keep continue in Although, million that there million revolver, the $XX through demand term so was on facility. remaining quarter, to ending repaid loan, on the fourth Also billion borrowings grow free the debt our the $X.XX nothing the chose to of to offering, we under ample can flow. the we with cash $XXX year we reduce drawn

to our was likely flow availability, the to by debt to a credit free per remaining loan our objective times X we a of the year-end below over repay million we and term adjusted the business and cash Our be generation year. our X.X of set ratio new agreement. strong at solidly ample as Reducing time. With $XXX end revolver balance times positioned EBITDA are objective lower calculated leverage will our continues

XXXX. XX% with not or very our our look maturity years for and next maturity bonds forward, senior we horizon we a another favorable not more XX have As notes until of debt maturity over

guidance $XXX million $XX When XXXX million $XXX close you to from during we the year-over-year. EBITDA the forecasting $X a announced standpoint, we to be the midpoint remove the EBITDA deficiency is billion an to of received are to adjusted million. MVC flat of with midpoint turn XXXX we payments of XXXX, adjusted me Devon let From range forecasted Next, yesterday.

In event, of on a as addition, we directly remaining XX% payments prices. linked don't [indiscernible] years. to the the MVC leaving one-time coming EBITDA Approximately expiring XX% are collecting significant have our MVC's which is roll-off we other commodity adjusted in based,

likely of based we the to NGLs, for from for capture $X.XX Our If for WTI. which contribute MMBtu average may prices the improves and on gallon volumes. is customers ramp-up activity, gas prices $X will throughout backdrop could able commodity natural guidance per also $XX additional some per and barrel be upside to per year,

We ramp to expect to our in half incremental fourth project million are with the discussed cost volumes as second that which relocation come quarter. online EBITDA forecasted the XXXX. normal seasonal the Horse, up of Louisiana the in business million XXXX to that between see additional expenditures, War we Total capital $XXX Ben and strength in be plant associated include in $XXX

Horse, expect that to War projects and XXXX and capital quick very heavily infrastructure well project Aside paybacks. weighted connects from gathering we have be returns to high

XXXX, XXXX XXXX. beyond that Although is level sufficient level this we less a XX% to growth EBITDA CapEx support modest believe of than is

segments small XXXX acquisition respect high XXXX flow our We cash our contributing. opportunities platform $XXX to to results. midpoint, distributions, our million a our will not have generation tuck-in to to all around continue and is range very million respect forecasting investments with similar evaluate With flow of The the bar million, free cash to tremendous but four a $XXX to which after deleveraging with is existing of free are objective. returns will $XXX clear impede footprints, those at we

cash sustainable We flexibility while opportunities are financial our of sheet a we capital feel return unitholders. pursue balanced committed disciplined balance the high flow, at objective, are other to very to the remains allocation distributions a deleveraging level. top and our We return to free our and have

XXXX to last addition, thank I to of program to dynamic our their I'll exceed for financial XXXX. our we approach. you strong commitment their million approximately the thing our to team repurchases unit to formulaic The our efforts in strengthen success execution of team's I want In our turn our in and having repurchase XXXX. rather am The a at yield to XX.X% and a our completed a have With of unit and position it helped $X of remain very deliver that, ability fourth focus. financial high we in Barry. platform mention our continue will back than is quarter and for to objectives confident us level team, with

Barry Davis

Pablo. you, Thank

know about assets of natural forward. lot business you a XX% As When about there going optimistic and our NGL I is services. to be gas EnLink's around is walk

high the natural network we this again and business are Our us. opportunity to and been for footprint Oklahoma, natural our on of and In JV NGLs on in since gas activity leading and very incremental rig Permian acreage forecasting the commodity a running Devon-Dow could in demand largest rig have continues year. state offer upside market a level incentivize see Louisiana early this pipeline the position stack double-digit we mid-stream our two the In growth we activity. for significant has environment gas and and bullish the have price rigs January

In addition, outlook lead position bolt-on and midstream asset Texas, rationalization, could in our we spur call that opportunities our around questions. footprint could as now you gas leading play, Barnett North the is have gas for activity strong see in the open attractive footprint. a it natural mature midstream which the And on the to new may compelling demand acquisitions progresses. a With small for we although natural year

Operator

first begin from Please James is question question-and-answer JP session. with The now ahead. will We Kirby [Operator Morgan. Instructions] the go

James Kirby

good morning. Hey,

Barry Davis

Good morning James.

Benjamin Lamb

morning. Good

James Kirby

start It wanted were to your looks Permian. sequentially. just like I off slightly the down processing volumes with

the Permian, peers lower then connection the cited for continue larger about, in year XXXX? picture thinking are volumes unloaded from you basin? how the you cadence that think are Midstream nearby, And well into you just in seeing I

Benjamin Lamb

Yeah, hey, James. It's Ben.

in quarter, happened volume full-service in volumes not down fine telling we it noted to but field be and unexpected, companies of Basin offset expecting that's first happen that's dedicated that's volumes bit, On acreage. and our production up see the this the need on so a Midland space that from were from question, expected the what growth to processing your gathered little were to midstream that frees particular because for part got we is we've more XXXX. neighboring And the you in up that and less it we're by that

terms it I In to first and will be think quarter busy a cadence, continue busy of the been it's well year. throughout connect

We fact have a as of drilled the at level record producers of cycle a of DUC frac result holiday. year, the our took kind times that inventory they a last through even

So we expect to see robust volume growth, especially Permian. on the the Midland Basin side of the - of

James Kirby

helpful. each it. and maybe if context is sensitivities kind mentioned in the Thanks. was of you end, Got shifting color of upper to can business, to That's guide that commodity And or - there? upper in is on then upside there that share the commentary wondering guide the any I there maybe is higher end maybe prices the into the a built of commodity you

Pablo Mercado

Yeah, question. this a is Pablo. good That's

minus $XX midpoint. me plus or So is range, the from to million guidance the let which first refer

there range. that X% of price and provided today's NGLs. a you prices the with we a commodity the that to would about for given little curve that's forward yes, that So guidance there, used bit We respect upside is deck particularly and note

ability the some So range. price of put to would and sort impact the top towards of us that have end the

Louisiana Basin activity and in our affect The how business. flow also is other the Oklahoma factor the up our the and Devon-Dow of of and ramp JV Midland in volumes with pace course can

what would to there. spread prices, a prices NGL suffice and because CX with upside pricing be little is there differentials it's gas complicated other So on CX, from it not just that factors, specific say pricing upside the but

James Kirby

Okay, I'll got there. I it. it, thanks. it leave appreciate

Barry Davis

Thank you, James.

Operator

Please Gabe with ahead. Mizuho. is question next The from Moreen go

Gabe Moreen

M&A, And circle you just tuck-in the certain as the acquisitions, Can like if at on target there everyone. bit midstream comments to I on this Hey, there curious areas trying little transaction I think characterize the of for as you mentioned maybe to good morning, NGL this clearly, nature tuck-in, announced a a major elaborate could and think was Barry, M&A more far thoughts morning back that I your that? you downstream. as deals would too? then precluding point, your bigger being strategically

Barry Davis

Yeah. Gabe. you, Thank

our doing we think if you've highlight, been in got a mean, And is just Texas the the that different I of off leveraging that see in opportunities or said focus I prepared on of I in around As footprint. more you our things consolidation today will. the go if type remarks, that to mean, are kind close-in for existing stages you I sometime mature areas readiness focus, North basin. we of really we've

think the I in is sometime and Permian think consolidation I certainly Oklahoma future. in the of a is the middle

Louisiana. merchant we're our are were there with as business see storage everything in a as So doing opportunities Island our is assets. really the focus. opportunities on Henry think deliver and complementary around in we'll there They to We hub Louisiana. in then the addition that and the something very bolt-on Jefferson existing far our the acquisition, in just that to facilities Glad and great Storage

our focus. that's So

lot things certainly is that what internal, lot in that it's opportunities we the about, I which close and in think or a like self-help thing. focused we said on do a we can those

we I doing announcement, our making most notwithstanding announcement good morning businesses I to last prepared answer and relates saw of all better, to was but around the it I that felt self-help more us this were question the focused say saying on internally would that guess I internally focused and scale, us on really are guess I by - larger night some work like things, of that. As but and that we're

thing. cost is subject to things on achieve efficiencies, can think market result a consolidation the in can do financial accomplish of to scale, increased continue market it's will the continue synergies combinations and think you When that when will that And of focus or the that. are I stronger you so think position good those I the I one good on and focus

today, if will look things is deliver be larger that's we and us to all to not do. for on Larger combinations. in the the game the for them. sake I got we future, got look of if at after, at things that is not So on to challenge that to we deliver we're - We deliver the have think what we've

Gabe Moreen

energy follow Thanks, on Jefferson be to if just And asset? that, is that could contracts Barry. any renewable And the you've if also, is of on ones. two I then spending can comments you'd Island, CapEx potential or kind smaller something willing behind up actually One just with contracting think renewable just cost it power? the and is on maybe that disclose incorporating for I

Benjamin Lamb

a was assets people a start actually tuck-in, Jefferson of most Island history the sold by Gabe. probably chose little about with really the don't $XX today. to the realize, Island. a was them by - small have It hey Barry And on of acquisition, bit we work says the developed what LIG when like that split owner I'll which up. previous Yeah, well system we assets, million is they own then LIG, Jefferson so

and to pretty were acquisition. that Hub is have And we're and offer to interconnectivity our our doing really assets and product cavern a it some built to so has putting so pretty assets is on together, let work we us what unique gas way unique didn't also integrate salt they back Henry but the storage dome connected us a that And directly together. gives a an system the market it's to with pipelines

Barry Davis

the Gabe, me towards your address let Yeah, question energy renewable end.

component our practical. with good for can better to will for I that better on in business today, and it. leverage Let Longer-term, now is got do to really just the about is sense the have won't business participate It's that the there can on position clear want is be extensive But sense, we we expand have can we me it's things renewable we're several opportunities that make of and that to next to things use and strategic associated become major things do this, be that make decades. off customers we've have right return our say to believe are global we be The focused really which lower we say done continue to of our those. got and do on energy. with renewable it's I are to we to make gas carbon we that focus our but us, that and natural the to our got to to relationships energy to chase natural assets this, of energy it business the gas XX% a think

And it. so to those when advantage we'll position be see opportunities, of take a in we

Gabe Moreen

Thanks, Barry.

Operator

Next question go UBS. is from Shneur Please Gershuni with ahead

Shneur Gershuni

I incremental Hi, prepared kind good here, mostly of talked go your XXXX you too. Maybe I understand about morning are on In cost as a remarks opportunities the that bit and growth, volumes just everyone. achieved and off costs little reductions the maintain on that could the being cost variable to in you to fact optimization start up focused side. with able wanted and focus to well

scenario set can and give a in volumes don't So you've now a pursuing? change, colors further reductions you dollar target just us done, or those respect? labor what type that hypothetically whether if there achieve cost are that some that Is in exercises is flat kind mostly opportunities kind of details holding around and it reduction you're cost internally to other of of

Barry Davis

Yeah sure.

all, we industry-leading - were that. of experience, by the able be highlight to prepared said first that XX%, reduce to savings of of the to remarks, again that proud think in believe very first we're we I all our we cost to what able

that were started out, in that well we taking early way going pandemic run global the adjustments into a we a business of position to Secondly, something started before so into In XXXX on and making XXXX, cost were XXXX. continue is we to our mindset. half it effort, working mindset is today. significant second the continues situation that and good got It the that of we we

focused this cost driving that very efficient. business the teams are more who of and getting have woke on up out morning, We

mentioned, I a better currently XXX business got 're efficiently. processes As we've job that initiatives running of we that we our do to are running and evaluating

predict Again we're in that come It's as better enough us in in to to going said to XXXX. all cost that are back. savings getting So see costs those hard the XXXX change see we we're saw XXXX we the for largely time. sustainable

get back could activity, see the that see but offset come into be will into we new as business. may cost XXXX, come we we that that more savings again, I certainly some will finding As the then think back, you of

much specific maintain to we So largely, be as our any would on can. goal that/ our Pablo, to challenge you of will areas Ben, go or and that we think

Benjamin Lamb

across it's that most find G&A solutions say, we expense, solutions We is and covered want all it's define Barry, We and those continuous of - control it's I'd Yeah, a but ourselves. just solutions it's operating then emphasize Shneur, the every facet over those implement you and what it, improvement importantly time. really to the business, process. it expense, measure it's I business and is

over by continue - and let that's as truly process. it's and drive can don't backslide. go in magic piece business we continuous done, never the time, our business efficiency So you're the to cost through drive we out the that's that and anything And a piece just

Shneur Gershuni

asking target dollar So percent question in you Ben, productivity target efficiency asking have differently, so productivity are are of or increase target, an our may instead a x during be and want you forth, tactically the we for efficiency to 'XX? little instead of like or setting

Benjamin Lamb

we There's those may of of that probably we already - the ourselves. the better industry. that's compressor kinds we one Shneur, pieces it's move is next and up, to would year if This example. an basis for that, XXX lend online easy so example. at - to give our I dozens we we for year in that a field - just points and time, it's Last goal XX.X% had it goal than we one doesn't we're of be you stations itself many but achieve set Yeah. XX% targets on think to that dozens soundbite, which the year say may

Shneur Gershuni

capture on can to and you way the question as on makes is on or too. if noticed the able to and are market capture faster - some that some side the remarks just revenue forth, that you give arrive, the talking pounce ask way when opportunities maybe they in your in that that a as slides And like centralizing centralizing the irregularities that revenue optimization is well you in plan also revenue Okay, I'm and well optimization sense. you opportunities? them examples about I to when wondering - you're - they so

Barry Davis

day. contractors managing Their team. job - is hard, they with our they're in - be the day. thinking of example amazing interacting in they Yes, we the the any the way about have do right in that operations are might and easy Shneur, but field that that plant fantastic jobs plant at is, they running maybe all the you're and every sites with operating teams field They're also an plant,

best that in and in temperature bit we recovery plant, screens that to so operators a change And get of that where layer could a ability monitoring make the in second rooms, location sees sees same also that in plants opportunity, an time pressure see of bit opportunity or miss plant for communicate control the we promotes second of real can have a all we layer within more a the change in that and we happens practice we the the sure and exact that use or central than in less fuel plant the never time, little with see can when real monitoring them little have sharing. the perhaps

translated field themselves. it's we so lot promotes our center the at monitoring also what You and a often communication one well in various of very between plant approach field it works can central and be know what, a operations others and between to find collaborative the

Shneur Gershuni

Maybe Pablo great. question Okay, for one here. final just

distribution directed free loan goal expected buybacks? there the this or is be will the be to year, flow some term cash off towards flexibility primarily for the after expected With paying generated

Pablo Mercado

that yeah, question. for Shneur, thanks

It's balance but sheet not is deleveraging the Our top approach formulaic, is really the clearly balanced a so priority. approach.

we financial growth to Barry with very We find of it's about likely program. capital on the doing and go our good that. cash we're with to high return flow which approach talked but repurchase distribution, on will very tuck-ins you flexibility can projects So see or through quick stable ourselves focus share the most formulaic returns on I do a a shareholders, paybacks. and also the not - think

Shneur Gershuni

perfect. and warm. right, I Thank much. today very appreciate safe stay the you stay and color All

Barry Davis

Sure. Thanks.

Operator

[Operator Schultz Capital with next Markets. T.J. ahead. go question Instructions] The is from RBC Please

T.J. Schultz

good morning. Hey, thanks. Great,

rather on like you've just year, this Midland busy the this outlook continue your that been docs provide sensitivity for first oil to maybe the far follow just even up mentioned, record it Can you so Just sounds or $XX if year. view pace oil outlook the price you to quicker that on activity Thanks. accelerate $XX oil? completion at for than the to to moves

Benjamin Lamb

T.J., it's Yeah, hi Ben.

the who set then the a they producers, think think incremental Permian, most largely doesn't higher part if So crude are this public big for XXXX for I their capital into turn to see that the and activity. of our account year becomes majority them that question in that for I business think the for allocation probably prices plans I

different in public or XXXX guys incremental prices incremental expectations perhaps I in. see bit think it be little of might could if private into a turn we those the among activity who would than customers, even do. have a change hang see little our activity, of pace bit from Where investor we base their

see set on most well part, that of with ducts set schedule fruition side. think pretty the the completion well environment, supportive and will around for have bit and little to well the the I is and will the we maybe upside the private edges a is good us, price it system of for on - table the think So news I come the number

T.J. Schultz

Jefferson And gave that growth is it the are for bolt-ons you may thanks. anticipated what capital about talked budget then Thanks or additive? and considered Okay, including tuck-ins within Island and be XXXX and all you've the

Pablo Mercado

T.J, would additive. Pablo, be those this

the Project would and budget Midland well anything the be the capital outside connects then of that and primarily plant, incremental. that's the Basin associated primarily infrastructure War Horse in in So

T.J. Schultz

thanks. Perfect,

Barry Davis

Thank you, T.J.,

Operator

This remarks. any I would session. conference concludes over question-and-answer to like Barry closing Davis to our for turn the back

Barry Davis

for call on today call our facilitating for you operator, your you, being everyone for Thank morning and the this and thank support.

and always, We results EnLink. day. and and you meantime, updating you investment in in stay a first with to stay appreciate interest continued our great quarterly the quarter healthy all we warm. Have well wish in we look your May forward As

Operator

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

now You may disconnect.

EnLink Midstream (ENLC) 17 Feb 212020 Q4 Earnings call transcript