Q3 2020 Enterprise Products Partners LP Earnings Call

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Introduce your speakers today Mr., Randy Burkhalter, Vice President Investor Relations. Please go ahead Sir.

Thank you Brian Good morning, and welcome everyone to the enterprise products Partners Conference call to discuss third quarter 2020 earnings our speakers today will be co chief executive officers of Enterprise's General partner, Jim Teague, Randy Fowler.

Other members of our senior management team management team are also in attendance for the call today.

During this call we will make forward looking statements within the meaning of section 21 E of the Securities and Exchange Act 1934 based on the beliefs of the company as well as assumptions made by and information currently available enterprises management team.

Although management believes that the expectations reflected in such forward looking statements are reasonable it can give no assurance that such expectations will prove to be correct. Please.

Please refer to our latest filings with the FCC for a list of factors that may cause actual results to differ materially from those in the forward looking statements made during this call.

With that I'll turn the call over to Jim Randy.

The third quarter, we reported adjusted EBITDA of $2.1 billion compared to $2 billion for the same quarter last year.

Our DCF totaled $1.6 billion and provided a solid 1.7 times coverage, we retained around $669 million in the quarter now totaling 1.8 million for the first nine months.

Businesses continue to perform well, even as the U.S. and world are still dealing with the go live with the carbon pandemic the oil price crash and the ensuing oil inventory overhang.

In addition to our integrated business model, our profits continue to be protected by strong base.

Arm customer obligations, coupled with our activities around our marketing and storage systems.

The petrochemical industry is reporting strong demand for our products, especially ethylene driven in part by individuals serving type products as the world deals with the pandemic.

Propylene is also strong as strong demand demand manufacture badly needed PT pp.

Bob Patel, the CEO of Glendale, probably said it best on their second quarter earnings call. When he said the pandemic has generated a renewed appreciation for the value of our chemical and polymer products for society total.

Total capital investments were $705 million in the third quarter and 2.7 billion for the first nine months of the year.

During the third quarter, our commercial team responded to customer requests and changing industry conditions to amend agreements that enabled us to increase volume commitments over the long term.

Utilizing existing pipeline capacity.

We were able to cancel the Midland to echo for crude oil pipeline.

In total we have reduced our planned growth capex for 2020 and 2021 around.

Around $1.5 billion.

We've also focused on cost control for the first nine months of this year enterprises operating costs were 260 million below budget and our sustaining capital expenditures for the year are expected to be $100 million lower than our original budget.

We're turning over every rock in order to manage costs, but we're doing so without sacrificing safety or reliability and.

In discussing our performance and capital reductions I think it also goes without saying that our people matter.

We are extremely proud of the way our folks have responded and base in that but in the face of the pet pandemic.

And all the other chaos, we've had this year.

Early on in the pandemic, we went to a skeleton staff at our headquarters consisting of management.

Our marketing desk and a few of our operations folks with everyone else working from home.

We've made adjustments to be able to open back up and protect our employees, including things like social distancing guidelines and common areas and installing flexi glass around the building.

Biggest change we made was requiring based coverings at all times.

We also had a steady stream of employee communications, including several that emphasize that none of these measures work unless each as each of US also take personal responsibility and the decisions we make when we're away from work.

I have to say our employees responded.

Since the second half of June I think I think that's right Randy we have been pretty much fully staffed in our offices and our case count has been minimal thanks to the safety measures put in place and our people accepting personal responsibility.

We don't believe that our performance would come close to matching today's announcement without the kind of collaboration that comes from actually being together.

Especially during times of chaos, which create their own opportunities.

I'm hard pressed to find a law firm or buying back in the office among downtown company someone recently told me we were somewhat.

Of an anomaly I.

I think thats synonymous with competitive advantage.

Then came the storms.

Luckily for most of the 2020 active hurricane system was nightly news, but for US there were five major storms on the Gulf Coast three Hurricanes, one a category four and now we've got another one on the way all.

All of these impacted our people our operations and the operations of many of our customers want.

We'll also power in 2020 was a major event for people and businesses, especially refiners and petrochemicals along the upper Gulf Coast. So why are we talking about special charges are big earnings it's related to what has been the historical Gulf Hurricanes. This season I.

Well again, its because of our people.

Some power outages in Louisiana last did well over a month and.

And we are appreciative to our engineering and operations personnel, who planned for aren't quickly responded to these events I mean again, we have people.

Who regardless of being impacted in their personal lives are still going to be the extra mile.

The assets they look after up and running.

Spend a few minutes discussing our views of the global energy environment near.

Near term global economies is reopening from a self imposed sudden stop do COVID-19.

The pace of the recovery berries, but with the exception of air travel much of Asia is returned to near normal well you.