Q1 2023 EnLink Midstream LLC Earnings Call
Speaker 1: The.
Speaker 2: Greetings. Welcome to the N-Link Midstream First Quarter 2023 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host.
Speaker 2: Brian Grungart, Director of Investor Relations. You may begin. Thank you and good morning everyone. Welcome to Enlink's first quarter of 2023 earnings call. Participating on the call today are Jesse Arenivas, Chief Executive Officer, and Ben Lam, Executive Vice President and Chief Financial Officer.
Speaker 3: Walter Pinto, Executive Vice President and Chief Operating Officer is also in the room to answer any questions during the Q&A session. We issued our earnings release and presentation after the markets closed yesterday, and those materials are on our website. A replay of today's call will also be made available on our website at investors.nlink.com.
Speaker 3: Today's discussion will include forward-looking statements, including expectations and predictions within the meaning of the federal securities laws. The forward-looking statements speak only as of the date of this call, and we undertake no obligation to update over rise.
Speaker 3: Actual results may differ materially from our projections and a discussion of factors that could cause actual results to differ can be found in our press release, presentation, and SEC files.
Speaker 3: This call also includes discussions pertaining to certain non- GAAP financial measures. Definitions of these measures as well as reconciliation and comparable GAAP measures are available in our press release and the appendix of our presentation. We encourage you to review the cautionary statements and other disclosures made in our press release and our SEC filings.
Speaker 3: With that, I would now like to turn the call over to Jesse Aeronivas.
Speaker 3: Thank you, Brian , and good morning, everyone. Thank you for joining us today to discuss our first quarter 2023 results. The momentum we entered the year with continues as customers remain active across each of our segments.
Speaker 3: Later on the call, Ben will provide more color on our results, but we generated approximately $324 million adjusted EBITDA in the first quarter of 2023.
Speaker 3: which includes an adverse impact of approximately $6 million due to the lingering impact of winter weather and an earthquake we experienced at the end of 2022. Despite this impact, in-link is on pace to achieve the midpoint of our adjusted even our guidance range of $1.305 billion to $1.4 million.
Speaker 3: above our historical average.
Speaker 3: This saw the level of activity drives our growth today and sets us up well for the future.
Speaker 3: In the most recent quarter, we've seen gathered volumes in the Permian more than double over the past three years to nearly 1.7 million MMBTUs per day.
Speaker 3: We remain laser focused on continuing to reinvest in attractive projects and meeting producer needs.
Speaker 3: phantom plant which added over 2,35 million cubic feet a day of capacity to our Midland system.
Speaker 3: We also recently announced our third plant relocation and our first to the Delaware Basin, where we will add approximately 150 million cubic feet a day of processing capacity in the second quarter of 2024. This growth in our GNP platform helps drive our Louisiana business where we service industrial end users.
Speaker 3: with both gas and NGLs. This supply growth helped drive our decision, along with our partners, to restart Gulf Coast fractionators earlier than was originally planned.
Speaker 3: As we look to 24 and beyond, we're very excited about our growth prospects in Louisiana, both for our traditional gas and NGL business and for our CO2 business. Last week, the state of Louisiana received some promising news on the policy front as the EPA decided that, subject to public comment period,
Speaker 3: It plans to grant the state's application for primacy over Class VI wells.
Speaker 3: which are used to inject CO2 deep underground for permanent storage.
Speaker 3: We believe granting Louisiana primacy is an important milestone for accelerating commercial CCS deployment in the state.
Speaker 3: As we discussed at our recent investor day, Enlink's Carbon Solutions Group is executed on our first mover advantage and is building out. It's a scalable CCS business.
Speaker 3: Admitters are now selecting sequestration providers and the decision over primacy will serve as a real catalyst to Louisiana becoming a global leader in low carbon manufacturing.
Speaker 3: We're pleased to see Louisiana continuing to leverage its unique business advantages, support for innovation and climate action to spur new business development. Last year, the state received nearly 21 billion in new business developments and investments. These investments....
Speaker 3: include meaningful build out of our nation's LNG export capacity.
Speaker 3: There is 8 BCF operational, BCF a day operational capacity in Louisiana today. An additional 11 BCF a day of capacity is either under construction or approved and awaiting FID in the state of Louisiana.
Speaker 3: Other industries are making large investments in the state of Louisiana. For example, CF Industries in Mitsui are evaluating a site in the Ascension Parish for the construction of a new $2 billion Blue Ammonia production facility.
Speaker 3: Investments like these serve to expand the CO2 market beyond the current 80 million metric tons along the Mississippi River corridor. They also increase the demand for natural gas and transportation services. In summary, despite the recent volatility in commodity prices, we are very excited about 2023 and beyond.
Speaker 3: We remain focused on creating sustainable value through investing in high return projects to meet the needs of our customers and our growing downstream business.
Speaker 3: With that, I'll turn it over to Ben to provide an overview of our operations and our financial results.
Speaker 3: Thanks Jesse and good morning everyone. Let's start with our largest segment, the Permian, where segment profit for the first quarter of 2023 came in at $96 million.
Speaker 3: Segment profit in the quarter included approximately $0.4 million of operating expenses tied to plant relocations and $6.3 million in unrealized derivative gains.
Speaker 3: Excluding plant relocation OpEx and unrealized derivative activity, segment profit in the first quarter of 2023 decreased 10% sequentially, but grew over 3% from the prior year quarter.
Speaker 3: As we indicated in our February call, the first quarter results were adversely impacted by lower volumes due to the lingering impact of winter weather and an earthquake that we experienced at the end of 2022.
Speaker 3: These impacts amounted to about $4 million in the Permian in the first quarter of 2023. Despite those impacts, it was a record quarter for gathered volumes, with average natural gas gathering volumes approximately 6% higher compared to the fourth quarter of 2022, and 25% higher from the prior year quarter.
Speaker 3: Our March volumes averaged about 1.8 million MMBtus a day, an exit rate that reflects strong growth absent the impacts of weather and the earthquake.
Speaker 3: Turning now to Louisiana, we experienced another quarter of solid performance in the gas segment, and we saw seasonal strength in the NGL segment in the first quarter.
Speaker 3: Segment profit for the first quarter of 2023 came in at $96.4 million.
Speaker 3: Segment profit included unrealized derivative losses of $9 million.
Speaker 3: Excluding the impact of unrealized derivative activity, segment profit in the first quarter of 2023 increased approximately 5% sequentially and 10% from the prior year quarter. Moving up to Oklahoma, we delivered segment profit of 94.7M dollars for the first quarter of 2023.
Speaker 3: Segment profit in the quarter included unrealized derivative losses of approximately $1.4 million. Excluding plant relocation op-X and unrealized derivative activity, Segment profit in the first quarter of 2023 decreased 7% sequentially that grew approximately 1% from the prior year order.
Speaker 3: The first quarter results were adversely impacted by approximately $2 million due to the lingering impact of winter weather experienced in the fourth quarter of 2022.
Speaker 3: Despite the weather impact, average natural gas gathering volumes increased 10% sequentially and 18% compared to the prior year of quarter.
Speaker 3: We have been pleased with the resilience our Oklahoma business has shown despite headwinds from lower commodity prices.
Speaker 3: as we continue to see robust drilling activity levels.
Speaker 3: We have not seen a meaningful change in our volume outlook for 2023, and we expect to see double digits of growth in gathered volumes compared to 2022.
Speaker 3: Wrapping up with North Texas, segment profit for the quarter was $76.1 million, including unrealized derivative gains of $2.7 million.
Speaker 3: Excluding unrealized derivative activity, segment profit in the first quarter of 2023 decreased 3% sequentially, but grew 23% from the prior year quarter. The improvement over the prior year was driven in part by the acquisition that closed in the third quarter of 2022.
Speaker 3: Natural gas gathering volumes were 5% lower sequentially, but were 19% higher compared to the prior year quarter. We continue to make solid progress to reduce our CO2 emissions intensity. The previously announced project with our largest customer in North Texas, BKV, to capture and permanently store CO2 from our Bridgeport facility is progressing ahead of schedule, and we now expect an in-service date in early fourth quarter 2023. These solid results were in line with our expectations.
Speaker 3: guidance in February .
Speaker 3: Capital expenditures net to in-link, plant relocation expenses, and investment contributions were $157 million in the first quarter of 2023. This included a $43.5 million contribution to our Matterhorn Joint Venture and a $6.2 million contribution to Gulf Coast fractionators.
Speaker 3: The timing of these investment contributions resulted in higher overall catbacks during the quarter, but this timing was as expected and we still generated free cash flow after distributions of approximately $6 million.
Speaker 3: On the balance sheet side, we continue to be in a strong position.
Speaker 3: with a leverage ratio of 3.4 times at the end of the first quarter in ample liquidity.
Speaker 3: We remain investment grade at Fitch and one notch below investment grade at S&P and Moody's with a positive outlook at S&P.
Speaker 3: In early April , we closed a $300 million TACON offering to our 2030 notes to take advantage of favorable interest rates, reduce our floating rate exposure, and maximize our available liquidity.
Speaker 3: Consistent with our capital allocation plan to return capital to investors, we maintained our common unit distribution of 12 and a half cents per unit in the first quarter, which represents an 11% increase over the first quarter of 2022.
Speaker 3: Additionally, we remain active with our Common Unit repurchase program, with approximately $50 million spent in the first quarter.
Speaker 3: This puts us on pace to complete our $200 million unit repurchase program for 2023.
Speaker 3: In summary, the in-link team delivered solid results in the first quarter of 2023, and we expect them momentum to continue for the rest of the year. Despite their recent volatility, our assets are well positioned to grow, led by our largest segment today, the Permian.
Speaker 3: I'm proud of the Anlington team for their solid execution in the first quarter of 2023. Placing as well on our way to achieve the midpoint of our 23 Adjusted EBITDA guidance.
Speaker 3: which would be another record year for in-league. With that, you may now open the call for questions.
Speaker 2: And at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.
Speaker 2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start keys.
Speaker 2: And our first question comes from the line up. EJ Stoltz with RBC Capital. Please proceed with your question.
Speaker 4: Great, thanks. Good morning, guys. My first question, just on the active discussions for the additional 20 million.
Speaker 4: tons of CO2 transportation in Louisiana.
Speaker 4: What are some of the gating factors to get deals ink? I think at your analyst day you mentioned the lengthy due diligence process that emitters were going through to choose the best sequestration. Can you just provide any more color on how your discussions are advancing if you're talking mainly to emitters?
Speaker 3: or to the sequestration providers or both. Thanks. Thanks, TJ. Good morning. This is Jesse. Look, I think what we said in the investor day is consistent with what we're seeing today. We're seeing a lot of activity both on the emitter side and the sequester side.
Speaker 3: To date, most of our discussions have been with sequestration providers. Those are progressing. I think when you think about the privacy issue in Louisiana, I think that's a catalyst to get some of these deals off and running.
Speaker 3: But the activity levels are robust. We were very optimistic that in 2023 we will be able to announce a good portion of that 20 million metric tons. So we're well on track. As we said, the sequestration providers and the emitters are making their choices now.
Speaker 3: The good news is, is in-link is the provider, the transportation provider, a choice in most of those discussions. So, very positive outlook for 2023.
Speaker 4: Okay, make sense. And then you mentioned some projects such as the...
Speaker 4: Blue Ammonia production facility in Ascension Parish that could expand the addressable market in the Mississippi River corridor, I think, 80 million metric tons. How meaningful are some of those projects to the addressable market, just trying to gauge the upside to the 20 million tons that you are currently engaged on? Yeah, I think those are in discussions now.
Speaker 3: on what their volumes will be, but we see a lot of activity in that industrial space for growth as the international markets are hungry for this. And Ben? I think TJ, just to kind of broaden that.
Speaker 3: I think something that's underappreciated a bit is the very fact that we and ExxonMobil and some of our other potential sequestration providers are able to provide a cost-effective CCS solution. That fact in and of itself creates markets.
Speaker 3: Because if you're a large industrial company and you want to produce a blue product, a necessary prerequisite is you have to produce that product in a place that offers CCS solutions. And because we can do that in South Louisiana, that gives South Louisiana an advantage over other places, not just in North America, but in the world.
Speaker 3: when you think about the competitiveness of the blue economy. So I think that the blue ammonia facility is one example. I think in the coming years we'll see many examples of those kinds of facilities being cited in South Louisiana, creating markets both for CCS and for natural gas.
Speaker 3: So I think that the Blue Ammonia facility is one example. I think in the coming years we'll see many examples of those kinds of facilities being decided in South Louisiana, creating markets both for CCS and for natural gas.
Speaker 4: Okay, makes sense. Just one more for me, kind of switching gears. On Oklahoma, you're still guiding to double digit volume growth despite lower natural gas prices. Can you just talk about activity on your acreage in Oklahoma? How many rigs are operating? What would have to change from an activity standpoint to meaningfully change your view on volume growth?
Speaker 3: with four of those rigs being...
Speaker 3: being operated by Devon and the remainder being operated primarily by small cap publics and private companies.
Speaker 3: maybe a couple of wells around the edges, but it really has been around the edges.
Speaker 3: It would take a substantial reduction from that six to eight RIDS before we would be concerned about not seeing double digit volume growth. If you just look in the numbers we reported, you're already seeing it today when you look at the 1Q number for this year versus the 1Q number for last year.
Speaker 3: take a substantial reduction from that six to eight rigs before we would be concerned about not seeing double digit volume growth. If you just look in the numbers we reported, you're already seeing it today when you look at the 1Q number for this year versus the 1Q number for last year.
Speaker 3: And so, you know, again, very, very pleased and I guess the last comment I'd make there is just to remind you that when we gave the guidance range, including the midpoint that we're reiterating today.
Speaker 3: We considered the possibility that we would see some slowdown in North Texas and Oklahoma in the second half. Now we haven't seen that yet. We still think that we may see it. And even if we do see it, we still feel good about being at the midpoint of the adjusted EBITDA guidance range.
Speaker 3: possibility that we would see some slowdown in North Texas and Oklahoma in the second half. Now, we haven't seen that yet. We still think that we may see it. And even if we do see it, we still feel good about being at the midpoint of the adjusted EBITDA guidance range. Great. Thank you. Great.
Speaker 2: Our next question comes from the line of Cade Moraine with Mizzouho. Please, we'll see which is your question. Good morning, guys. Maybe I can start off. There's been a little bit of a delay to permeant egress capacity with the PHP expansion.
Speaker 5: Can you just talk about how EndLink again is positioned to deal with that as far as how comfortable you are feeling getting out of the basin until a matter of horn comes out? Come online.
Speaker 3: Yeah, good morning, Gabe. It's been... We feel good about being able to get out of the basin, and here's why.
Speaker 3: When we entered into the transportation agreement that went along with our Matterhorn investment, we negotiated for some bridge capacity on the Whistler pipeline.
Speaker 3: That taken together with the capacity that we hold on Northern Natural and on other pipelines, we feel confident about being able to get out of the basin until Matterhorn comes into service because we have the benefit of that rich capacity. From a price perspective, we're going to have to be able to get out of the basin and get
Speaker 3: We hedged substantially all of our natural gas, flat price risk, and we also has almost almost all of our WAHHA basis risk for this year. So we're in good shape in the Permian both in terms of egress and in price expectations.
Speaker 5: Thanks Ben. Then maybe if I can ask about, I guess, any additional M&A potential out there. I guess with the gas curve coming down here, are you seeing any other ancillary, I guess, private equity backed systems around yours where maybe seller expectations have become a little bit more reasonable here?
Speaker 3: I think it's a little too soon to tell. It takes time to adjust to what may be a new reality.
Speaker 3: There has been some deal flow and as we've said in the past, we look at a lot of things, but we're very disciplined in what we execute on. And I think if you look at the two deals that we did last year, they're good blueprints.
Speaker 3: for the kinds of deals that we would be looking at in this environment, you know, not dependent on drilling activity to make the economics work more reliant on operational and capital synergies. That's been the recipe that's worked well for us. And so we may have an opportunity to do some M&A as the year goes on.
Speaker 3: meaning the 200 million that you're targeting, any chance you could see accelerating that considering some of the share price volatility? Yeah, thanks Gabe. You know, I think we're committed to our process, right? The programmatic approach has worked very well the last couple years. I think when you see the pullbacks, we'll be opportunistic when it's appropriate, but clearly this is probably a good time to do that.
Speaker 3: targeting, any chance you could see accelerating that, considering some of the share price volatility? Yeah, thanks Gabe. You know, I think we're committed to our process, right? The programmatic approach has worked very well the last couple years. I think when you see the pullbacks, we'll be opportunistic when it's appropriate, but clearly this is probably a good time to do that. Understood. Thanks everyone.
Speaker 2: All right, next question comes from the line of Spiro doing this with Citi. Please proceed with your question.
Speaker 3: Thanks, operator. I guess first question, just want to touch on the outlook for the rest of the year. You mentioned getting to the midpoint of the range. And as a bit of a full year, it sort of implies a fairly strong ramp off the first quarter, but you also are pretty comfortable with the plan in place. So, I'm just curious if you could speak to the pathway to get there and maybe look at the point of the year.
Speaker 3: Yes, Bureau, I think when you look at our outlook for 2023, we feel very confident based on the current activity levels in each basin, especially the Permian. We've accounted for that ramp in the third and fourth quarter.
Speaker 3: So we feel very confident based on our producer activity and the current rig counts that we have. So Ben, do you have anything to add there? Yeah, you know, Spiro, if you just look at the segment process that we reported.
Speaker 3: a judge for the weather impacts that we've provided and annualize those. You'll see and compare that to the second profit that we gave you in guidance. You'll see that we're easily on track in Louisiana and North Texas.
Speaker 3: Permian, we have a little bit of a ramp there. The segment profit that we provided, excluding plant relocation expenses for the year, was $460 million versus a run rate in the first quarter of about $400 million. We expect to see a significant ramp in the Permian as the year goes on and to a lesser extent in Oklahoma. So from where we sit today...
Speaker 3: Got it. Got it. Okay. Second question. Just thinking about commodity sensitivity from here. As we look at the quarter, you know, once again, margins in Oklahoma and Permean seem to be the biggest variance for us on expectations. Volumes kind of came at about right for us anyway. I assume most of that was commodity driven maybe some weather impacts your point as well.
Speaker 3: Once again, as we think about the rest of the year, how are you guys approaching commodity sensitivity? Does 1Q maybe represent a floor for margins? Are you sort of well hedged at this point?
Speaker 3: Yeah, well, so our guidance was premised on $80 crude and the NGO prices that result from that. In reiterating the midpoint today, we're incorporating in our thinking the fact that crude is lower than 80 today. And so we, you know, we recently did a refresh at $75 crude, recognizing that the market food yesterday probably could get a little bit of a load.
Speaker 3: $25 for the balance of the year, we feel good about where we are.
Speaker 2: Great. Appreciate the color, guys. Thanks again. Our next question comes from the line of Jeremy Tone with JP Morgan. Please, we'll see what your question.
Speaker 6: Hi, good morning. Good morning, Jeremy. I realize I'm probably getting a bit ahead of myself at this point, but wanted to just kind of ask, I guess, as we look a little bit further, maybe into 24. What type of trends, I guess, are you guys expecting, and kind of this more bald-o-commodity cape and, you know, I could think of...
Speaker 7: levels given the pullback in commodity prices.
Speaker 7: We're still very optimistic that 24 and beyond will be growth. The Dow, specifically the Dow, we don't have all the details on the Dow, Devin, JV, but clearly that's a strategic joint venture.
Speaker 7: From what we understand today, that is working well, that there's no plans to change that. We would anticipate that rolls into 2024. But, you know, it is early. But based on the activity levels we're seeing today at the current commodity price, in the current price environment, we feel very, very confident that the robustness of our system will benefit beyond 2023. Most typically are indicator AG, the price component of our system isassy. It's kind of important that we monitor theeuructics of our system. Yeah.
Speaker 3: I completely agree with that. I certainly don't see any change to the long-term growth outlook in the Permian, which as you know is our largest segment. Obviously Oklahoma and North Texas are a bit more commodity sensitive and so commodities will matter, but we're seeing a good robust level of activity today even with challenged commodity prices. What is your
Speaker 3: We would expect commodities to be a little bit better next year, all else being equal, and then long term...
Speaker 3: We are bullish on natural gas and we're bullish on the ability of Oklahoma and North Texas to contribute.
Speaker 3: beyond 2024 alongside the Permian segment.
Speaker 6: Got it, that's very helpful. Thanks and just kind of pivoting here towards TCS. Just wondering if you could provide any updated thoughts when it when it thinks when it relates to the, I guess the classics. Well, you know, process the regulatory process overall. In Louisiana doesn't have primacy yet so it's hard to say exactly how it works, but it seems like they have a lot of tools in their belt that they've outlined to kind of
Speaker 6: move the process through swiftly. But just in your mind right now, classics well going to the EPA versus if Louisiana when they get primacy I guess how long do you expect it to take on either side or just any thoughts in general on the processes one versus the other.
Speaker 7: Yeah Jeremy, I think it's a positive, right? You know, the EPA historically has taken upwards of five years to approve a classics well permit. Our understanding with the primacy was that it would be 18 to 24 months.
Speaker 7: The good news here is the sequester that we're talking to have been running a parallel process. So the expectation is our deal is to come online in 2025. We think with the primacy that's very doable.
Speaker 7: But however, Exxon and others have been working these permits in parallel, so they're not starting from scratch once Louisiana gets primacy. So again, they don't have the primacy yet, but the timeline should be halved at a minimum.
Speaker 7: and others have been working these permits in parallel. So they're not starting from scratch once Louisiana gets primacy. So you know you know again they don't have the primacy yet but the timeline should be you know halved at a minimum if not better.
Speaker 6: That's very helpful. Just real quick last 1 if I could, as it relates to the environment to construct and construct projects supply chain general, we saw PHP was pushed back just a little bit there. Just wondering if you're seeing any issues like that on your projects. You know, what have you just trying to get a sense for how the.
Speaker 7: that you can see outlook is at this point. Yeah, with respect to Whistler, we are not aware of any matter forms. Sorry, I don't know what I said that to you earlier, but to that matter form, with respect to matter form, we are not aware of any permitting or construction delays. You know, we, the last update we have on it is we're on track.
Speaker 7: With respect to the CCS business, you know, we've started the procurement process. We have ample time. We have not.
Speaker 7: heard of any bottlenecks or supply chain disruptions that would cause a delay on that project. Permitting is off to a good start. You know, we started that well ahead of the exon agreement. So we feel very good about the permitting and the supply chain with respect to the CCS project. So still on line.
Speaker 2: Got it. I'll leave it there. Thank you. And our next question comes from the line of Praneeth Satish with Wells Fargo. Please proceed with your question. Thanks. Good morning. So, I think obviously Louisiana potentially getting primacy is a positive for your CCS business. Could get deals to the finish line, but I guess on the flip side...
Speaker 7: I think the latter, the parallel process is ongoing, so they're not waiting on that. The issue around the primacy, I think it's very positive. It's been entered into the Register, and you've got the comment period. It's a matter of clearing that. I think the certainty around
Speaker 7: Louisiana Gaining Privacy and if you remember North Dakota, other states have this so there is a blue threat and a road map to get there I think they're at the finishing stage here So we don't we don't be that as a roadblock to getting deals signed. I think if anything it's a catalyst to get them
Speaker 2: over the hop here. Got it. And then I think you reiterated your EBITDA guidance for the year, but I just wanted to clarify on 2023 CAPEX has that changed at all from the initial guidance of I think it was $510 million. And then maybe if you could provide any early indications on 24 CAPEX would you?
expect that to be flat with 23 or could it trend lower?
Yeah, the pick open is done. The range on CAPEX for 23 has not changed.
Now, having said that, there's going to be some puts and takes.
And we've seen the opportunity already to accelerate some spending that we thought was going to happen in 24 into late 23 to accommodate some additional volume growth in the Delaware. So we expect we're going to be a little bit higher there. We may see some decreases in other places.
If, particularly if, we see some degradation in activity, say in Oklahoma or in North Texas, the year goes on, again, too soon to say. So while today we're reiterating the midpoint of adjusted EBITDA, we're not updating the range or telling you where we're tracking on SCFAD other than to say we're within the range.
and it's a little bit too soon in the year to tell whether we're going to be towards the bottom end or the top end of the range. It just depends on how some of the puts and takes on capital go over the course of the year. For next year, it's a little bit too soon to say. I'll say the obvious. We'll have a heavier spending year next year on CCS as we prepare for the EXON project to go and service in.
As things stand right now, we don't have an announced Permian plant project next year. That may change as the year goes on, but right now we don't. Again, they'll be puts and takes as the year goes on. It's a little too soon to be too specific about 2024 CapEx.
As things stand right now, we don't have an announced Permian plant project next year. That may change as the year goes on, but right now we don't. Again, they'll be puts and takes as the year goes on. It's a little too soon to be too specific about 2024 CapEx. Got it. Thank you.
And we have reached the end of the question-and-answer session. I'll now turn the call back over to Jesse Arenilis for close remarks.
Thanks to Shemali for facilitating our call this morning and thank everyone for being on the call today and for your continued support. As always, we appreciate your continued interest in investment in N-Link. We look forward to updating you with our second quarter results in August .
In the meantime, we wish you well, stay healthy, and have a great day. And this concludes today's conference and you may disconnect your line at this time. Thank you for your participation..
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