Q1 2022 Enterprise Products Partners LP Earnings Call
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Good day and thank you for standing by welcome to the Enterprise product Partners L. P earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session. Please be advised that today's conference is being recorded to ask a question. During the conference. Please press star one on.
Your telephone if you require any further assistance during the call. Please press Star then zero I would now like to hand, the conference over to todays speaker, Mr. Randy bulk excuse me Burkhalter VP of Investor Relations. Please go ahead.
Thank you John .
Good morning, everyone and welcome to the Enterprise products conference call to discuss our first quarter 'twenty two earnings our speakers today will be co chief executive officers of Enterprise's General partner, Jim Teague and Randy Fowler.
Other members of our senior 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 at 1934 based on the beliefs of the company as well as assumptions made by and information currently available to Enterprise's management team.
Management believes that the expectations reflected in such forward looking statements are reasonable we can give no assurance that such expectations will prove to be correct.
Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward looking statements made during this call.
So with that I'll turn it over to Ian.
Thank you Randy.
Two numbers to start off with two.
$2 $3 billion in EBITDA.
One eight times distribution coverage I think that says it all.
Looking back it seems like the first quarter of each of the last three years has been a quarter of the nims.
First quarter 2020, COVID-19 shut everything down and you had too much for everything.
We were.
And our people did pretty good.
Last year in the first quarter of 2021 Winter storm Yuri wreak havoc on the entire state of Texas shutting in production like we've never seen our folks did pretty good.
And then in late February of this year the world rather suddenly found itself.
With the invasion of Ukraine, Russia.
And dealing with having to supplement.
Russia and energy to our allies in Europe , along with coming to grips with the growing importance of energy security in all three scenarios pandemic massive weather events and a sudden global energy shortage.
Our people delivered.
If for some reason you missed our analyst meeting, we announced seven new projects.
Then going in to that analyst meeting notwithstanding.
And we've grown we were bullish from both the supply and demand perspective.
U S oil natural gas and Ngls and we're planning for growth.
Our meeting we announced seven growth projects related to both supply and demand we're going to build our six processing plant in the Midland Basin.
Steve.
That's the assets we bought from <unk>.
In the Delaware, we're going to build our second plant at <unk> com.
In Louisiana, we are expanding our Acadian haynesville natural gas pipeline about 400 million cubic foot a day.
In Texas, we're reversing our chaparral NGL pipeline and a portion of our mid America pipeline to move refined products from the Gulf Coast to West, Texas, and Mexico, Colorado and Utah.
Just outside of Mont Belvieu.
But still in Chambers County, we're going to build our 12 NGL fractionation.
We announced that we're going to build an ethane export terminal at a site to be determined.
On the Louisiana, Texas Gulf Coast, we announced that we were going to double our ethylene export capacity.
And then shortly after the analyst meeting, we issued a press release with Oxy.
Stating that oxy and enterprise, we're going to team up to build.
The carbon capture sequestration header system between Beaumont.
In Houston.
Behind these projects, we have announced will still fall within the one and a half to $2 billion annual Capex.
And then I wanted to end today with a few thoughts about the world's energy situation and how the U S is ideally positioned to step up with ample and reliable U S oil and gas.
<unk> has the capability to repair place, Russia is exports of oil products and natural gas to our European allies, If we would unleash forgot given shale resources.
We are blessed with.
After being dependent on the middle East for nearly 50 years. The U S became energy secure and then mix net exporter of hydrocarbons over the last 10 years, well Europe moved the other way, depending on renewables and Russian natural gas.
As Russia marched on Ukraine.
<unk> came face to face with reality.
I have to be this way and it's not too late to correct. It if we would start being honest about the importance of fossil fuels that importance being for decades to come.
Unless we are ready to take a huge step back and human development unit U S oil and gas production and production must continue to grow.
Regulatory uncertainty politics, and Green hyperbole.
Led to a gap in funding worldwide and we're finding out the hard way that.
Finding and producing these resources.
On autopilot.
Skilled people, new infrastructure time and money.
Look no further than the cancellation of Keystone suspension of federal leases the numerous cancel projects to get gas out of Appalachia, our plight of the mountain Valley pipeline to see the constant roadblocks caused by the attitude in Washington and in the courts.
The U S is going to reach its full potential and provide global leadership in the face of Russias tyranny, our politicians regulators and the courts must start being honest about the world's need for energy and step up and support the needed infrastructure, including pipelines plants and LNG export.
Facilities.
Was we'll find ourselves increasingly be hold on to bet despotic regimes for energy and for minerals and metals required to add green energy solutions for Andy.
Thank you Jim good morning.
Starting with the income statement.
Net income attributable to common unit holders for the first quarter of 2022 was $1 $3 billion or <unk> 59 per unit.
Compared to $1 $3 billion or <unk> 61 per unit for the first quarter of last year.
Net income was reduced by noncash asset impairment charges of $14 million or <unk> <unk> per unit for the first quarter of this year. This compares to.
Noncash asset impairment charges of $66 million or <unk> <unk> per unit in the first quarter of 2021.
Jim discussed distributable cash flow and coverage so moving on to adjusted cash flow from operations.
Which is our what we call adjusted cash flow from operations.
Which is.
Excludes working capital changes it was $2 billion for the first quarter of 2022, and this compares to $1 9 billion for the first quarter of last year.
We declared a distribution of <unk> $46.05 per common unit with respect to the first quarter 2022.
This represents a three 3% increase compared to the distribution declared for the first quarter of last year.
This distribution will be paid may 12 to our common unit holders of record as of the close of business on April 29.
For the last 12 months, we returned $4 billion of cash distributions to limited partners and $200 million of buybacks, our payout ratio of adjusted free cash flow, which again.
Excludes the effect of working capital changes and it also if we exclude the three in a quarter billion dollars of an avid policy midstream was 80%.
Total capital expenditures in the first quarter of 2022 or $3 $6 billion, which included the acquisition of <unk> midstream $275 million of organic growth capital projects and $75 million of sustaining capital expenditures for 2022.
Currently expect growth capital investments to be approximately $1 5 billion and sustaining capital expenditures to be approximately $350 million.
Our total debt principal outstanding was approximately $29 $8 billion at the end of the quarter, assuming the final maturity of our hybrids. The average life of our debt portfolio is approximately 21 years, our average cost of debt is four 3%.
And at March 31, approximately 95% of our debt was fixed rate.
In February 2022, we repaid all of the maturing one 4 billion of senior notes.
And so you see using cash on hand, and proceeds from the issuance of short term notes under our commercial paper facility.
Our consolidated liquidity was approximately $3 9 billion at March 31.
Including availability under our credit facilities and $231 million of unrestricted cash since the close of the first quarter, we elected determinant to terminate a $500 million delayed draw term loan, which we had not been which had not been utilized.
Reported adjusted EBITDA.
It was $8 4 billion for the 12 months ended March 31, 2022, our consolidated leverage ratio was three four times after adjusting for the.
After adjusting debt for the partial equity treatment of our hybrid notes.
And.
And also reduced by cash on hand.
And with that Randy I think we can open up for questions. Okay. Randy. Thank you Tanya we're ready to take questions from our audience.
As a reminder to ask a question you need to press star one on your telephone.
Withdraw your question. Please press the pound key please limit your questions to one and a follow up one moment.
And our first question comes from Colton Bean of Tudor Pickering <unk> Company. Your line is open.
Good morning, So just starting off on pet Chem, realizing jumping ahead, a bit here into Q2, but it looks like some of the spreads have gapped higher over the last months, specifically butane to ISO and then MTBE can you just remind us of your ability to capture those spreads in beauty and in operating businesses and whether any profit.
Any earnings might be sustainable.
Hi, Colton. This is Christina we're about 75% hedged so we realize the benefit of what were not hedged on.
75% is throughout the remainder of this year.
Got it and is that true in both the butane and the octane businesses.
That's just the octane business.
Okay, and then on mute, yes, when we still realize any any any benefits from.
Some uplift in the market as well.
Okay, Great and then just on the on the balance sheet any update as to how youre thinking about the leverage profile. It seems like with the current earnings trajectory in commodity backdrop, youre likely to drop below the lower end of that target range at three in a quarter debt to EBITDA.
Yes.
<unk>.
Again, we just finished with three four for the for the quarter.
Sure.
Well again stay in our range of three five times, plus or minus a quarter.
And.
As we go through and see what kind of growth capital opportunities. If we have what kind of acquisition opportunities that might be out there will come in and adjust accordingly.
Got it so it sounds like Capex would be still.
Our primary directive in terms of staying within that range, yes.
We've come in and done buybacks for four years in a row.
The last two years, we've done about $200 million I'll do expect for us to do buybacks. Later this year, we didn't do it in the first quarter because obviously, we had the three in a quarter billion dollar of <unk>. So we didn't do any buybacks in the first quarter.
Great I appreciate that.
Thank you. Our next question comes from Brian Reynolds of UBS. Your line is open.
Hi, Good morning, everyone first wanted to touch on the Permian near term growth expectations versus the long term tightening outlook.
The Midland to Echo crude volumes declined quarter over quarter and was curious feedstock Permian basin, NBC and competition for spot volumes.
Impacting <unk> crude volumes and ultimately when can we expect EPS.
Permian crude equity volumes to inflect back towards the positive.
<unk>.
<unk> growth in line with an expectation thanks.
Hi, This is Brent.
I think on the volume when you look at the structure and the market. There is some contracts. So those term contracts, but I think people are looking at the backwardation in the market.
And trying to figure out when those barrels them out on the other side. So we saw some.
Contracted customers not ship.
In terms of overall profitability it doesn't really affect us with the nature of those contracts.
But when those come back I think youll see when production growth an arb start opening back up.
You'll see the volumes come back on our system.
Thanks, Archie Yeah in terms of the profitability side.
It doesn't really impact enterprise, but in terms of volumes, how you look at it.
When structure gets that buyer.
<unk> see some some some barrels come off our system.
Okay makes sense, one follow up maybe just to pivot to that 300000 barrel per day expansion of the way that you've talked about at the recent analyst day.
First question is could you maybe just talk about the demand that youre seeing for this project given the demand markets in Houston and for export and then secondly, do you see a scenario, where just the increase and can make Canadian supply pushes back on Permian barrels slowing up into Cushing.
Ted.
So you want to take that.
Yes. This is the first answer your question.
With respect to the expansion thats going to flange up with Enbridge decisions upstream of Cushing.
With regards to the Canadian growth that those guys are saying so.
Poised to turn that online as soon as we see the need to do that and then for the second question.
So I went back to Brendan.
Theres some sticky barrels that go from Permian up the testing just because of some of the refiners that want those barrels.
My personal belief that I've had this for quite some time as much capacity.
That we saw you had pointed to the Gulf coast.
But ultimately more of those barrels would fill the pipelines going toward the water, but we are seeing some pretty good resilience, even when we thought those barrels should've been pointed toward the water.
There is a certain amount of demand up there in Cushing that will probably persist throughout this and it's a different type of barrel then obviously.
Comes down from Canada does refiners want up there.
Great. Thanks for the color have a great day.
Our next question comes from Jeremy Tonet of Jpmorgan. Your line is open.
Hi, good morning.
Morning.
Just wanted to start off with the Sidoti LOI as you guys press.
Press release recently might be you'll get a little bit more detail there as far as what type of timeline would you expect I guess before final investment decision whether to move forward here.
Just wanted to get a sense to the extent you're able to share how sizable can this project be hub could be a lot of stuff going on and how much would it be brownfield versus greenfield.
Any any details here youre able to share would be very helpful. Thanks.
Okay.
Hi, Jamie It's Kerry Weaver.
So on your first question on this.
The details.
We're looking at this as a complementary relationship with <unk>.
LLC D, where we provide the transportation and day provide the sequestration, we've been talking to potential customers for <unk>.
Several months now and so.
These products will take time to develop.
Got a lot of great feedback from the customers in and believe is there.
We're ready to say go we'll be able to move forward with the project.
The Gulf Coast.
Most primed for a project like this with the emissions and the proximity of the emissions and so we think there is a great opportunity in this area.
And I think the second question as far as.
Newbuild versus existing pipelines.
If you take a look at our map really.
Any of the pipes, we have could be put in most of the pes Anthony <unk> Sidoti service or that Tony.
Cafes R&D.
Den stays and so it's just an evaluation of where we have those opportunities where we might have pipe capacity.
And then growing from there.
Got it that's helpful. Thank you and then second question I just wanted to see with regards to Permian gas egress, you talked a bit about that at the analyst day, and obviously there seems like there is clear need for that and just wondering if there's any updated thoughts with the potential for enterprise too.
Expand existing assets like we've seen some other asset announcements recently or just any other thoughts on enterprise's ability to partaken Nat gas egress needs.
So.
We don't have any expansion capabilities on our existing 36 engine at <unk>.
Looking at opportunities to provide the based on with takeaway capacity.
And obviously, we've got some space.
And for ourselves.
Call It middle of this year end of the year.
And that we talked about analyst day.
Jeremy I think what she's saying is yes, we've got a project, but no we're not going to tell you about it.
Yeah.
Got it got it.
Makes sense. Thank you. Thank you for the thoughts I'll leave it there.
Our next question comes from Chase Mulvehill of BLA. Your line is open.
Hey, good morning.
I guess first question just kind of around Frac rates.
Kind of curious what youre seeing on Frac rates today.
Obviously, it seems like things are kind of tightening up there from the.
Elevation standpoint.
It would kind of expect that frac rates, maybe have moved up that five cents per gallon range. So just kind of any updates what youre seeing out there in the market.
On track rates and maybe some utilization.
I would say this is Brent sucrose on Frac fees, we are seeing please trend up and I'd say, that's pretty much a general comment for a lot of midstream services.
In terms of volume.
<unk> volumes were a little bit down in the first quarter a lot of that had to do with freeze offs and turnarounds that we had scheduled although we've moved up because of freeze offs, but if you look at the projections of.
The Y grade receipts, we have coming in and its going up pretty much month over month.
Okay, Alright, and then pivoting over to ethane exports I think in the press release, I think I read that the average ethane export fees increased in <unk>.
<unk> sorry in <unk>.
I guess I'm kind of curious what's driving that I don't know if you I don't think you have commodity price exposure, there, but maybe I'm wrong. So I don't know kind of is that new contracts are or.
Or is it commodity price exposure, that's driving those export diesel.
Hey, Jay suggested quieter I'd say in general.
We probably spent seen a trend in one spot volumes are available and the fees associated those still go higher than what we've seen over the last call. It 12 to 18 months.
For the most part the ethane export story is really a volume story.
Okay.
Find me again, how much whats your contracted versus spot.
On ethane exports.
We call we'd call our day to day capacity, a shade over 200000 barrels a day so call. It we've got 20 to 25, a day as we sit here.
Okay.
Alright, perfect I'll turn it back over.
Yes.
And our next question comes from Theresa Chen of Barclays. Your line is open.
Good morning.
Doug I wanted to ask first about your Texas Western product system.
Been helpful in providing some color at analyst day that the capacity at origination how.
How many barrels per day, you can ship out.
On the Houston area, but can we get a sense of the delivery capacity by market between the endpoints and the Permian Albuquerque, New Mexico in Grand Junction and where do you see.
The incremental demand coming from.
Sure. So I'll just take it by segment.
Chaparral could do up to.
Full capacity around 90000 barrels a day.
And then if you were to look at the Rockies segment.
Full capacity could be up to 75000 barrels a day.
If you go to Albuquerque, as you drop barrels out there the capacity will go down as you go further north towards Grand Junction. So the difference in those two numbers is what you'd be able to drop off and the Permian.
I'm sorry, what was the second question you had.
Just where do you see the most demand coming from those.
Those are great markets.
Yes, I think if you look at those markets.
And the fact that the need competition I would say that Grand junction.
Which is presently catheter to local supply and rail that'll be a big step up in demand.
However, it is not the market size is not as big as Albuquerque. For example, so it's going to be a combination of those in the Rockies.
In addition supply in the Permian producers in the Delaware.
As well our gel terminal.
Thanks.
I also wanted to ask about the downstream implications from the ethane perspective kind of going back to that answer to your question, but just seeing the supply chain and logistical issues on the polymer side and the.
Economic run cuts, we're seeing at some of your customers I was just curious how do you see this play out and maybe Chris can help shed some light on.
The next steps from here.
Yes, I would say.
From the ethane balancing point.
We're starting to see slight build of ethane.
In our storage systems, so as you say depressed natural gas prices.
Permian Basin, you see more ethane get recovered.
Out of that area and you look at the NGL volumes that you've seen step up on our system.
<unk> I think there's going to be.
<unk>.
Some gives and takes on the pet Chem side until these things get worked out and for it to work on a more fluid basis.
Thank you guys see starts and stops throughout the process.
Thank you.
This is Jim I think you definitely see in supply chain somewhat concentrated.
You are right. It's we're realizing.
<unk>, some economic run cuts and ethylene plants.
We're expecting our polyethylene.
But that ultimately gets resolved.
This is still the most price advantaged market in the world.
Thanks, Jim.
And our next question comes from Jean Ann Salisbury of Bernstein. Your line is open.
Hi, good morning, Hello.
Enterprise be affected if the Permian does run out of gas takeaway in the next year across your different segments and would you expect the net result on EBITDA to be positive or negative if that happens.
Gina.
Brent has been stressing out over what question you would ask.
So we're going to let him answer.
I think the benefits G&A and I'm not going to sit here and quantify how this all plays out but obviously what the exposure we have on natural gas and that capacity that 300, a day, obviously where benefit beneficiaries of it.
You go downstream to what I, just talked about on the NGL pipelines.
The amount of ethane thats going to be forced into recovery.
I think is incredibly beneficial for our franchise.
The pipeline segment coming out of there and then you go downstream from there and you look at fractionation you look at the ethane Doc you look at our storage complex I think theres a lot of ways for us to benefit as enterprise.
No different than the last question. It is not going to all work and we talked about that there is going to be opportunities and there's going to be dislocations and thought its going to go step by step, but ultimately when stuff like that happens and I've been around this company for a while there is a lot of ways for enterprise the benefit.
Alright, and you feel good that it will probably at least offset losses in graduate term NGL production, there if that gets flared or shut in.
Yes, and then we'll see how it all plays out I mean, we're seeing opportunities on our processing side to accommodate.
Other other.
Creating processing companies too to handle those volumes.
I just think when you look at our our footprint jinan or something like that happens and it gets delayed.
Just think there's a lot of opportunities for us.
And you still had tender announced that we're going to expand.
The gas pipeline is about 500 million a day each bottleneck by the fourth quarter next year, So I mean, yes.
Yes, youre going to have.
Some issues in the short term, but those things always get fixed.
Thank you.
And then as a follow up I think you had been expecting some material rollout in the Eagle Ford and South Texas This year.
Is that looking a lot better now the Eagle Ford gas Israeli rebounding.
We've been expecting what this is telling me to say that again, Jean Ann I think that you had kind of guided to expecting some rollouts on rate and your south, Texas and inculcate defense Aero.
Your next but now it feels like we're kind of headed back to a previous highs in the Eagle Ford. So I wanted to see if I said sort of take that model G&A and I mean, there is a big contract roll off on Etfs that that rolls off at the end of the second quarter.
Yes.
Volumes are contracted.
Volumes still contracted its long term dedications to us it just at a different fee I do say on the dry gas side and on the processing side, we're seeing some benefits.
Throughout the entire Eagle Ford system.
But from a total dollar perspective, you're going to see you're going to see some impact for what rolls off on Etfs.
Our full year plants in Eagle Ford Natalie.
We're full and we're actually restarting a plant.
Capital on a couple of years.
And then we don't talk about it a lot, but we are processing over 400 million a day of oil and gas today in Eagle Ford.
Customers asking for taking capacity every day.
Great and thanks, everyone for taking my question.
Thank you. Our next question comes from Spiro <unk>.
Credit Suisse. Your line is open.
Thanks, operator.
Just had a follow up to <unk> earlier question actually just thinking about sustainability of results overall, rather than just pet Chem I'm thinking about the rest of the year, you've obviously got some tailwind here with <unk> ramping up some growth projects that you just mentioned.
A bit of a headwind there with some contracts rolling off but I think about how youre tracking your ready only one quarter and youre sort of hitting that $9 billion run rate already that you guys had mentioned during the analyst day. So just curious if you think about the rest of the year. What are you looking at in terms of puts and takes that maybe gets you there.
We can do the math.
Okay.
Okay.
Well Stanford.
This is Brian I think when you look at.
What we have going forward I feel like we're in a pretty good spot I mean things change, but when we look at we're the pace and the trajectory of where this thing is going and the opportunities that we see before us.
You can look at some contract roll off but it's not significant.
I feel like what we're offering is a company and you heard Tony talk about it during the analyst day with the volumes that we see coming on.
Things get more and more constrained what we have to offer just goes up in value. So.
I know, we don't give guidance, but in terms of the cadence I feel pretty good about where we're at.
Perfect. That's all I had today guys. Thank you.
And our next question comes from Michael Blum of Wells Fargo. Your line is open.
Good morning, everyone.
Really one kind of high level question for me. So Jim you referenced the seven new projects that you announced at the Investor Day.
<unk> forecast, it's pretty bullish for volumes underpinning a lot of those projects. So my question really is how do you reconcile that.
U S public E&P stands to remain capital discipline in the face of high commodity prices.
Natalie we see in our throughput.
Yes, the Delaware, but has gone up and we've been disciplined with.
With the growth or with the build of new plants.
The private operators are drilling and then.
We've got forecasts from other operators.
So we've got to have plenty of capacity.
That's the worst in fall.
Sure.
Every day.
You see in years ago.
Yes on the Frac side. This is <unk> on the Frac side, we continue to see volume growth and even the publics that are saying theyre not growing are out trying to contract.
Whether it be spot volumes or a shorter term volumes, so I hear what they're saying, but what we've seen and the candidates it a little bit.
Michael I'd also add that probably 70% between 75 and 80% of the rig count in the United States as Permian Haynesville and Eagle Ford.
Yes. This is Tony so I'll add one other thing if you look at the weekly numbers by the EIA is showing somewhere between 200 and 300000 barrels a day of increase since the first of the year.
So these numbers are okay.
They are slowly inching up.
If you if you look at the amount of rigs that very qualified operators have and still getting.
Increased efficiencies out of them.
They don't necessarily have to spend a tremendous amount of more money.
Put more a tremendous amount of rigs out in the field to grow their production. So we had said $1 5 million barrels between the.
22, and 'twenty three not knowing exactly how it is going to fall it looks like it's going to fall.
Findings won't start increasing until call it the third or probably even the fourth quarter of 'twenty two to where people really start looking but we're absolutely seeing it everywhere in our system.
Yes. This is Todd I'll, just add similarly zacks note.
Now I spoke to the equity production that she sees in the enterprise has been third party volumes are continuing to increase as well.
Shin Oak as an example, we had a record quarter.
<unk> just under 500000 barrels a day so.
Going up.
Yes.
Thank you everybody I appreciate it.
Our next question comes from Keith Stanley of Wolfe Research. Your line is open.
Hi, good morning.
Two follow up questions first on the Texas Western products expansion.
Just curious since the analyst day, if you are seeing with conversations with customers any.
Demand for long term contracts, there or if you think it will operate more on a spot basis.
And then second question just following up on I guess, the pet Chem segment and the strength you saw in Q1.
Just any more color you are seeing in the market and pet Chem and how repeatable you think $400 million type margin quarters are in that segment. This year.
Thank you.
B career limiting for Christiana, if we don't see it.
Thanks Bruce.
I guess second question first I mean, if you look at where spreads.
Have gone you see normal or Bob.
Congratulate widen throughout the first quarter, so look and looking for the rest of the year, it's pretty strong.
Meanwhile, on the propylene side spreads from the start up call. It last year have have marginally compressed.
And I think I talked about last year how.
We expect to continue to see wider spreads as long as the supply chain issues persist.
I don't know if that helps but.
Alright.
This is Chuck going back to your first question.
Yes.
I'll just say this I think it's an understatement as far as how much interest we have received as we started talking to our customers on tw products.
<unk> has been significant.
Now I will say that.
The rack market in nature as somewhat of a short term market typically those contracts are between one and two years.
And quite frankly, I think there are certain things that we like to keep shortened term in nature due to that.
And market opportunities in those markets.
Thank you.
Thank you. Our next question comes from Michael Lapides of Goldman Sachs. Your line is open.
Hey, guys. Thank you for taking my question I know <unk> had never thought it's only for a number of weeks now, but just curious and this maybe a little bit of a follow on from an earlier question.
How different is the commentary kind of for the end of 'twenty two and through 2023 production growth are you hearing from your Delaware producer customers versus your Midland.
Okay.
When you say commentary what are you referring to meaning when you're talking to your producers and they're talking about how much. They want to grow can you just talk about how different what youre hearing from producer customers are in the Delaware versus the Midland.
Hello.
Delaware has more majors were exposed the majors in the Delaware versus Midland.
And then more private.
I would say most of said flat to grow.
But then when we get production forecast, David a little bit different.
And then in the middle.
In Midland and we have a.
A lot of.
Yes.
One four on loads from other processors.
There's quite a few people still flaring and.
In Midland.
But not too much different other than a typical private public type of story.
Got it and then turning to the ethane export facility you talked about at the analyst day, and it's still a couple of years out from trying to think about COPD, but just curious how capital intensive of a project and what are some of the milestones we should be monitoring.
As analysts or investors just to kind of track where you all are in terms of signing up contracts, if youre going to try and fully contracted and just kind of take it from something thats on the drawing board to something that's in operation.
We have a contract for that expansion. So we have a pretty good size banker.
Just to pick it up.
Yes.
Yes, I think as we talked about in the analyst day I think.
Key paths right now is just site location.
I think once once we determine that then.
About pulling the trigger I mean, we're committed to build it and iOS is backed it and as soon as we are.
Fine tune our location and then we're going to be going on and we have numerous conversations going on with others.
Got it thanks, guys I'll follow up offline.
Thank you. Our next question comes from Michael Tuesday, Mono Pickering Energy Your line is open.
Hey, good morning.
I have a few follow up questions.
Related to your commentary on Jean's question can you quantify how much ethane youre seeing rejected in your Permian system. Today. So you can get an idea as to what that upside looks like.
<unk>.
Dan.
And Permian total across all Permian basin is probably around 250 of them and some of it's hard to be recovered in summit.
An integrated type plants.
200 to 250, Tony I agree with that yes.
Okay and Thats as of today.
Jason.
Well, it's over the last few weeks it comes and goes because midstream operators like ourselves.
Step in when we can.
Okay.
Hello.
And then to follow on from an export question earlier.
Can you talk through the dynamics, you're seeing across the docks, one on rates and demand you're pointing to lower fees at DHT on the NGL side, but high on crude and then the commentary around Morgan's point.
Curious to get from a high level.
Maybe any flows might be shifting on that system as well.
Yes, the commentary around rates would be helpful.
Yes, I mean, I think every commodity has its dynamics, but at the end of the day similar to our commentary from analyst day, I mean, they're all going to have their day, where supply starts to exceed at which the industry can export and so in general we think the trend is up into.
To the right in terms of expertise.
And when you look at our U S barrel compared to everything else. There is no comparison.
And we don't think theres going to be because we are we remain constructive on crude prices.
Got it that's helpful. Thank you.
Thanks.
I am not showing any further questions at this time the replay for this call is available until May nine at 11, 59 PM by dialing 805 859056.
4045373406, the conference I'd is nine 780, 8240, I would now like to turn the conference back to Mr. Randy Burkhalter for closing remarks.
John .
That's all it does concludes our remarks today, so we'd like to thank all of our participants for joining us.
Have a good day. Thank you.
Ladies and gentlemen. This concludes today's conference. Thank you for participating you may now disconnect.
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