Q3 2023 Energy Transfer LP Earnings Call

Good day and welcome to energy transfer of third quarter of 2023 earnings Conference call.

All participants will women listen only mode. If you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After today's presentation or the opportunity to ask questions.

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I turn the call over Mr. Tom long Cold C E. L. F energy transfer. Please go ahead.

Thank you operator, and good afternoon, everyone welcome to the energy transfer third quarter 2023 earnings call. I'm also joined today by Mackie Mccrea and other members of the senior management team who are here to help answer your questions. After our prepared remarks, hopefully you saw the press release, we issued earlier this afternoon.

As well as the slides posted to our website.

As a reminder, we will be making forward looking statements within the meaning of section 20 <unk> of the Securities Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to US and are discussed in more details in our Form 10-Q for <unk>.

The quarter ended September 32023, which we expect to file Tomorrow November the second.

I'll also refer to adjusted EBITDA, and distributable cash flow or DCF, both of which are non-GAAP financial measures you will find a reconciliation of our non-GAAP financial measures on our website.

Yeah.

We will start today by going over our financial results for the third quarter of 2023, we generated adjusted EBITDA of $3 $5 billion compared to $3 $1 billion for the third quarter of 2022.

And our base business, we had strong performance across our operations, including record volumes through our NGL pipelines, fractionator, and NGL and refined products terminals.

As well as record volumes in our crude segment.

In addition volumes in our intrastate and midstream segments remained near records.

DCF attributable to the partners of energy transfer as adjusted was $2 billion compared to $1 $6 billion for the third quarter 2022.

This resulted in excess cash flow after distributions of $1 billion.

On October 20th we announced a quarterly cash distribution of 31, and a quarter cents per common unit or $1 25 on an annualized basis.

This distribution represents an increase from the 26 and a half cents in the third quarter of 2022.

In August energy transfer senior unsecured credit rating was upgraded by S&P to triple B with a stable outlook.

We are pleased to have this third party recognition of all the hard work that we have done over the last several years and as we have placed significant focus on our balance sheet and leverage reduction.

As of September 32023, the total available liquidity under our revolving credit facility was approximately $2, one 2 billion <unk>.

During the third quarter of 2023, we spent $418 million on organic growth capital.

And in October we completed the sale of $4 billion of aggregate principal amount of senior notes and used the proceeds to repay borrowings on our revolving credit facility and pre funded 2024 maturities.

Now turning to our results by segment for the third quarter, starting with NGL and refined products adjusted EBITDA was $1 1 billion compared.

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Compared to $634 million for the third quarter 2022.

This was primarily due to strong performances across our transportation storage terminal and fractionation operations.

Thomas Long: I'd like to turn a call over to Mr. Tom Long, co-CEO of Energy Transfer. Please go ahead. Thank you, Operator, and good afternoon, everyone.

We also saw strong contributions from our optimization of hedged NGL and refined products inventories.

Thomas Long: Welcome to the Energy Transfer, a third quarter of 2023, learning's call. I'm also joined today by Mackay McCrea and other members of the Senior Management Team who are here to help answer your questions after our prepared remarks. Hopefully you saw the press release we issued earlier this afternoon, as well as the slides posted to our website. As a reminder, we will be making forward-looking statements within the meaning of section 21-E of the Security Exchange Act of 1934.

We recorded $107 million in marketing margin compared to a loss of $126 million in the third quarter of last year.

NGL transportation volumes on our wholly owned and joint venture pipelines increased 14% to a record $2 2 million barrels per day compared to $1 9 million barrels per day for the same period last year. This.

Thomas Long: These statements are based upon our current release, as well as certain assumptions and information currently available to us, and are discussed in more details in our form 10Q for the quarter-ended September 30, 2023, which we expect to file tomorrow, November the 2nd. I'll also refer to Adjusted Ebeda and Distributal Cash Flow, or DCF, both of which are non-gap financial measures. You'll find a reconciliation of our non-gap financial measures on our website.

This increase was primarily due to higher volumes from the Permian region and on our NGL pipelines that delivered into our Nederland terminal as well as on the Mariner East pipeline system.

Average fractionated volumes increased 9% to a record 1 million barrels per day compared to 940000 barrels per day for the same period last year.

Total NGL export volumes grew more than 20% over the third quarter of 2022, setting a new partnership record.

This was primarily driven by increased international demand for Ngls.

Thomas Long: We will start today by going over our financial results for the third quarter of 2023. We generated Adjusted Ebeda, $3.5 billion, compared to $3.1 billion for the third quarter of 2022. In our base business, we had strong performance across our operations, including record volumes through our NGL pipelines, fractionators, and NGL and refined products terminals, as well as record volumes in our crude segment. In addition, volumes in our interest state and midstream segments remained near records.

Through the first nine months of this year, we loaded more than 47 million barrels of ethane out of Nederland and approximately 21 million barrels of ethane out of Marcus Hook in total we continue to export more ngls than any other company during the third quarter and maintained an approximately.

20% market share of worldwide NGL exports as well as nearly 40% of U S exports.

For midstream adjusted EBITDA was $631 million compared to $868 million for the third quarter of 2022, we.

Thomas Long: DCF, a trivial to the partners of energy transfer as adjusted, was $2 billion, compared to $1.6 billion for the third quarter of 2022. This resulted in excess cash flow after distributions of $1 billion. On October 20, we announced a quarterly cash distribution of 31 and a quarter cents per common unit, or $1.25 on an annualized basis. This distribution represents an increase from the 26.5 cents in the third quarter of 2022. In August, energy transfer senior unsecure credit rating was upgraded by S&P to triple B with a stable outlook.

We saw near record throughput again, this quarter, which was the result of growth in the majority of our operating regions. The strong volume growth was more than offset by significantly lower natural gas and NGL prices.

Gathered gas volumes increased 4% to $19 8 million <unk> per day compared to $19 1 million Btu per day for the same period last year.

For our crude oil segment.

Adjusted EBITDA was $706 million compared to $461 million for the third quarter of 2022.

This was primarily due to higher volumes on several of our pipelines as well as the acquisition of the Lotus assets in May of this year and.

Thomas Long: We are pleased to have this third-party recognition of all the hard work that we have done over the last several years, and as we have placed significant focus on our balance sheet and leverage reduction. As of September 30, 2023, the total available liquidity under our Revolving Credit Facility was approximately $2.12 billion.

In addition, G&A expenses decreased $126 million as a result of one time charge related to the resolution of a legal matter in the prior period crude.

Crude oil transportation volumes were a record $5 6 million barrels per day compared to $4 6 million barrels per day for the same period last year. This was a result of higher volumes on our Texas pipeline systems, the Bakken pipeline as well as the acquisition of the Lotus assets and May have.

Thomas Long: Awards. During the third quarter of 2023, we spent $418 million on organic growth capital. And in October, we completed the sale of $4 billion of aggregate principal amount of senior notes and used the proceeds to repay barrings on our revolving credit facility and pre-funded 2024 maturities.

This year.

In our Interstate segment, adjusted EBITDA was $491 million.

Compared to $409 million in the third quarter of 2022. This increase was primarily due to placing the Gulf run pipeline into service in December of 2022, as well as higher contracted volumes and interruptible utilization on several of our wholly owned and joint venture pipelines.

Thomas Long: Now, turning to our results by segment for the third quarter, starting with NGL Refined Products, adjusted EBITDAW was $1.1 billion compared to $634 million for the third quarter of 2022. This was primarily due to strong performances across our transportation, storage, terminal, and fractionation operations. We also saw strong contributions from our optimization of hedged NGL Refined Products inventories, where we recorded $107 million in marketing margin compared to a loss of $126 million in the third quarter of last year.

Volumes increased 15% over the same period last year due to the Gulf run pipeline being placed into service as well as higher utilization on many of our Interstate pipelines, including Transwestern Rover Panhandle and trunkline, we continued to fully utilized zone one capacity on Gulf.

And we're also maximizing deliveries into our trunkline pipeline from zone two.

Thomas Long: NGL transportation volumes on our wholly owned and joint venture pipelines increased 14% to a record 2.2 million barrels per day, compared to 1.9 million barrels per day for the same period last year. This increase was primarily due to higher volumes from the Permian region and on our NGL pipelines that delivered into our needle and terminal, as well as on the Marineries Pipeline System. Average fractionated volumes increased 9% to a record 1 million barrels per day compared to 940,000 barrels per day for the same period last year.

And for our intrastate segment, adjusted EBITDA was $244 million compared to $301 million in the third quarter of last year.

Benefits from favorable storage optimization, and new contracts on our Texas and Haynesville pipelines as well as lower operating expenses were more than offset by decreases resulting from lower spreads across our intrastate pipeline network and lower natural gas pricing.

Now turning to our acquisition of Crestwood equity partners, which we announced in August of this year.

Thomas Long: Total NGL export volumes grew more than 20% over the third quarter of 2022, setting a new partnership record. This was primarily driven by increased international demand for NGLs. Through the first nine months of this year, we loaded more than 47 million barrels of ethane out of Marcoso. In total, we continue to export more NGLs than any other company during the third quarter and maintained an approximately 20% market share of worldwide NGL exports, as well as nearly 40% of US exports.

As many of you have probably seen earlier this week Crestwood unitholders voted to approve the merger between energy transfer and Crestwood. The acquisition is expected to be immediately accretive to DCF per unit upon closing.

In addition, this transaction will extend energy transfer's position in the value chain deeper into the Williston and Delaware basins, while also providing entry into the powder River basin.

These assets are expected to complement energy transfer's downstream fractionation capacity at Mont Belvieu as well as its hydrocarbon export capabilities from both our Nederland and Marcus Hook terminals.

Thomas Long: For mid-strain, adjusted EBITDA was $631 million compared to $868 million for the third quarter of 2022. We saw near record throughput again this quarter, which was the result of growth and the majority of our operating regions. The strong volume growth was more than offset by significantly lower natural gas and NGL prices. Gathered gas volumes increased 4% to 19.8 million MMBTUs per day compared to 19.1 million MMBTUs per day for the same period last year.

We also expect benefits within our NGL and refined products and crude oil businesses with the addition of strategically located storage in terminal assets. We now expect the acquisition to close on November 3rd and we expect to achieve approximately $40 million in annual cost synergies before additional.

Anticipated benefits from financial and commercial synergies.

Turning to our growth projects, starting with our Nederland and Marcus Hook export terminals September and October were our best months ever across our NGL export terminals and these terminals continue to benefit from increased demand both in the U S as well as from international customers.

Thomas Long: For our crude oil segment, adjusted EBITDA was $706 million compared to $461 million for the third quarter of 2022. This was primarily due to higher volumes on several of our pipelines, as well as the acquisition of the Lotus assets in May of this year. In addition, GNA expenses decreased $126 million as result of one-time charge related to the resolution of a legal matter in the prior period. Prudold Transportation Volumes were a record 5.6 million barrels per day compared to 4.6 million barrels per day for the same very last year. This was a result of higher volumes on our Texas pipeline systems, the Boccan pipeline, as well as the acquisition of the Lotus assets in May of this year.

Earlier this year, we did an expansion to our NGL export capacity at Nederland in order to address the growing demand.

We expect this expansion, which is projected to cost approximately $1 two 5 billion.

To add up to 250000 barrels per day of export capacity.

The project is expected to be in service in mid 2025, and will give us flexibility to load various products based upon customer demand construction is underway and we look forward to providing more specifics on this expansion as it progresses.

We also continue to pursue an optimization project at our Marcus Hook terminal.

We project would add incremental ethane refrigeration and storage capacity.

Thomas Long: In our interstate segment, Adjustee Badal was $491 million compared to $409 million in the third quarter of 2022. This increase was primarily due to placing the Boccan pipeline into service in December of 2022, as well as higher contracted volumes and interruptible utilization on several of our wholly owned and joint venture pipelines. Volumes increased 15% over the same period last year due to the Gulf Run pipeline being placed into service, as well as higher utilization of many of our interstate pipelines, including Transwestern, Rover, Panhandle, and Trunkline. We continue to fully utilize Zone 1 capacity on Gulf Run, and we are also maximizing deliveries into our Trunkline pipeline from Zone 2.

At Mont Belvieu, we placed frac eight into service in August, which brought our total Mont Belvieu fractionation capacity to over 115 million barrels per day as a result in October throughput at our fractionator has reached an all time high.

Out in the Delaware Basin, we are placed to 200 million cubic foot per day processing plants into service since December of 2022, and we now have a total of eight 200 million cubic foot per day processing plants operating in the Delaware Basin.

Our plant in <unk>.

<unk> near record highs and we continue to contemplate the necessity and potential timing of adding another processing plant in the Permian basin, while considering any available new capacity that we acquire the Crestwood acquisition.

Thomas Long: And for our Interstate segment, Adjustee Badal was $244 million compared to $301 million in the third quarter of last year. Benefits from favorable storage optimization and new contracts on our Texas and Haynesville pipelines, as well as lower operating expenses, were more than offset by decreases resulting from lower spreads across our interstate pipeline network and lower natural gas prices.

Next an update on our Lake Charles LNG project, we continue to see significant interest in our LNG capacity from U S producers and international markets. We are in negotiations with several significant equity partners and are ultimately targeting retaining an interest of approximately 20%.

Sent for energy transfer.

These potential equity partners are also interested in substantial volumes of LNG offtake.

Thomas Long: Now, turning to our acquisition of Creswood Equity Partners, which we announced in August of this year, as many of you have probably seen earlier this week, Creswood Unit Holders voted to approve the merger between Energy Transfer and Creswood. The acquisition is expected to be immediately accretive to DCF per unit upon closing. In addition, this transaction will extend Energy Transfer's position in the value chain deeper into the Williston and Delaware Basins, while also providing entry into the Powder River Basin.

We are in negotiations to finalize our EPC contract and we are receiving tremendous support from domestic and international customers community stakeholders and other interested constituents who are actively encouraging the department of energy to approve our pending export authorization application.

On an ex Pat expedited basis.

And now for an update on a few other projects on the carbon capture and sequestration front, we're continuing to make progress with capture point. This project entails the capture of Seo to from our treating plants in north, Louisiana, and the construction of a pipeline to a sequestration site in central.

Thomas Long: These assets are expected to complement Energy Transfer's downstream fractionation capacity at Montbell View, as well as its hydrocarbon export capabilities from both our Netherlands and Marcos of Terminals. We also expect benefits within our NGL-refined products and crude oil businesses with the addition of strategically located storage and terminal assets. We now expect the acquisition to close on November the 3rd, and we expect to achieve approximately $40 million in annual cost synergies before additional anticipated benefits from financial and commercial synergies.

Louisiana.

We are continuing to work with oxy to develop a Ccs project in Lake Charles Louisiana area. This would include the construction of our seal to pipeline connecting our industrial facilities to oxy propose sequestration site.

On the Blue ammonia front, we're working with several companies to evaluate the feasibility of ammonia projects that would include significant natural gas supply opportunities deepwater dock access and other infrastructure services on existing energy transfer property near our Lake Charles and Nederland facility.

Thomas Long: Turning to our growth projects and starting with our Netherlands and Marcos of Export Terminals. September and October were our best months ever across our NGL export terminals, and these terminals continue to benefit from increased demand both in the US, as well as from international customers. Cash. Earlier this year, we FID in expansion to our NGL export capacity at New Zealand in order to address the growing demand. We expect this expansion, which is projected to cost approximately $1.25 billion to add up to $250,000 barrels per day of export capacity.

Additionally, we are working on Ccs projects related to our processing plants and trading facilities in South, Texas, and West, Texas, and we are evaluating other seal two pipeline projects that would connect seal two emitters to cotwo sequestration sites in the Houston ship channel.

Panel corridor.

Finally, we are evaluating the use of some of our existing 250000 acres of land in Virginia, West, Virginia, and Kentucky for wind Solar fourth Street carbon credits and other uses the Virginia Department of energy has spent considerable time and effort evaluating a variety of projects.

Thomas Long: The project is expected to be in service in mid 2025, and will give us flexibility to load various products based upon customer demand. Construction is underway, and we look forward to providing more specifics on this expansion, as it progresses. We also continue to pursue an optimization project at our Marcus Sutt terminal that we project would add incremental ethane refrigeration and storage capacity. At Montvelview, we placed Fracke into service in August, which brought our total Montvelview fractionation capacity to over 1.15 million barrels per day, as result in October, throughput at our fractionators reached an all-time high.

65000 acres located in southwest Virginia.

Now looking at our growth capital spend for the nine months ended September 32023 energy transfer spent $1 2 billion organic growth projects, primarily in the midstream and NGL and refined product segments, excluding sun and USA compression capex for full year 2023.

We expect growth capital expenditures to come in slightly below our previously announced guidance of $2 billion.

Including growth capital related to Crestwood looking.

Thomas Long: Out in the Delaware Basin, we have placed 200 million cubic foot per day processing plants into service since December of 2022, and we now have a total of 800 million cubic foot per day processing plants operating in the Delaware Basin. Our plant remains near record highs, and we continue to contemplate the necessity and potential timing of adding another processing plant in the Permian Basin, while considering any available new capacity that we acquire via the Crestwood Acquisition.

Looking ahead, we continue to evaluate a number of other potential growth projects that we hope to bring to <unk>.

We expect to provide our 2020 for growth capital outlook on our fourth quarter earnings call.

However, as we look forward to a potential backlog of high returning growth projects. We continue to expect our long term annual growth capital run rate to be approximately $2 billion to $3 billion.

Now for adjusted EBITDA guidance.

For the full year 2023, we now expect our adjusted EBITDA to be between $13 5 billion and $13 $6 billion, including two months of Crestwood.

Thomas Long: Next, an update on our Lake Charles LNG project. We continue to see significant interest in our LNG capacity from U.S, producers and international markets. We are in negotiations with several significant equity partners and are ultimately targeting retaining an interest of approximately 20% for energy transfer. These potential equity partners are also interested in substantial volumes of LNG off-take. We are in negotiations to finalize our EPC contract, and we are receiving tremendous support from domestic and international customers, community stakeholders, and other interested constituents who are actively encouraging the Department of Energy to approve our pending export authorization application on an expedited basis.

We continue to see strong volumes and stable cash flows throughout our business segments with recently completed growth projects contributed during several records in the third quarter.

Looking ahead, we are excited to close on the acquisition of Crestwood later this week.

Look forward to working with the new Crestwood employees as we integrate these new assets into our energy transfer franchise.

We believe the combination of these businesses will present strategic commercial opportunities and efficiencies, we expect the newly acquired Crestwood assets as well as the growth projects completed throughout this year to provide additional opportunities and positive momentum for the rest of this year and going into next year.

Thomas Long: And now for an update on a few other projects on the carbon capture and sequestration front, we are continuing to make progress with capture point. This project entails the capture of CO2 from our treating plants in North Louisiana and the construction of a pipeline to a sequestration site in central Louisiana. We are continuing to work with OXI to develop a CCS project in Lake Charles, Louisiana area. This would include the construction of a CO2 pipeline connecting our industrial facilities to OXI's proposed sequestration site.

We will continue to pursue strategic optimization and expansion projects that enhance our existing asset base generate attractive returns and meet the growing demand.

For our products and services.

Our financial position remains strong and we remain committed to our targeted annual distribution growth rate, which we will continue to balance with leverage reduction increase.

Thomas Long: On the blue ammonia front, we are working with several companies to evaluate the feasibility of ammonia projects that would include significant natural gas supply opportunities, deep water dock access, and other infrastructure services on existing energy transfer property near our Lake Charles and New Zealand facilities. Additionally, we are working on CCS projects related to our processing plants and treating facilities in South Texas and West Texas, and we are evaluating other CO2 pipeline projects that would connect CO2 and Metters to CO2 sequestration sites in the Houston Ship Channel corridor.

Thomas Long: Finally, we are evaluating the use of some of our existing 250,000 acres of land in Virginia, West Virginia, and Kentucky for wind, solar, forestry, carbon credits, and other uses. The Virginia Department of Energy has spent considerable time and effort evaluating a variety of projects on 65,000 acres located in southwest Virginia.

In fact, your capital allocation philosophy think there's.

Somewhat newer slide in the deck, there maybe alludes to buybacks potential there or distribution increases as well. So just wondering if you could update us on these front.

Thomas Long: Now looking at our growth capital spend for the nine months ended September 30, 2023, Energy Transfer spent $1.2 billion for organic growth projects, primarily in the midstream and NGO and refined product segments, excluding Sun and USA Compression CapEx. For four-year 2023, we expect growth capital expenditures to come in slightly below our previously announced guidance of $2 billion, including growth capital related to Creswood. Looking ahead, we continue to evaluate a number of other potential growth projects that we hope to bring to FID.

Yeah for sure Jeremy and good afternoon to you.

Listen, we we've put out the guidance of that $2 billion to $3 billion a year and we still have you know at least a nicotine.

Returns are high Icke.

Type returns. So you can kind of see the growth rate from there we're going to stay with that 3% to 5% growth rate on the distributions at this time clearly we talk about that at every single board meetings. So that's kind of the math.

I think a home that growth that you can see now remember we still have the kind of the 80, 515% 85% 15%.

Thomas Long: We expect to provide our 2024 growth capital outlook on our fourth quarter earnings call. However, as we look forward to our potential backlog of high returning growth projects, we continue to expect our long-term annual growth capital run rate to be approximately two to $3 billion.

Fixed versus floating now it's moved into more of 90 can just because of the commodity prices are lower so that that scales around based upon where those prices are from that standpoint. So when you. When you factor all that in and then all the other optimization opportunities that we will we will definitely jump on when those opportunities.

Thomas Long: Now for adjusted EBITDA guidance. For the four-year 2023, we now expect our adjusted EBITDA to be between $13.5 billion and $13.6 billion, including two months of Creswood. We continue to see strong volumes and stable cash flows throughout our business segments with recently completed growth projects contributing several records in the third quarter. Looking ahead, we are excited to close on the acquisition of Creswood later this week. We look forward to working with the new Creswood employees as we integrate these new assets into our energy transfer franchise.

Themselves I think you can kind of look at look at that type of growth growth rate, but I will say that we're going to stay with our normal schedule, meaning that with the fourth quarter earnings results, we will update the 2024.

EBITDA got and suggest EBITDA guidance with Ya.

And the second part Jeremy did you Wanna just talk about the you know hold a buyback was that the the second part of your question. Yeah overall capital allocation I guess in in thoughts in light of you talked about for organic opportunities.

Thomas Long: We believe the combination of these businesses will present strategic commercial opportunities and efficiencies. We expect the newly acquired Creswood assets as well as the growth projects completed throughout this year to provide additional opportunities and positive momentum for the rest of this year and going into next year. We will continue to pursue strategic optimization and expansion projects that enhance our existing asset base, generate attractive returns, and meet the growing demand for our products and services. Our financial position remains strong and we remain committed to our targeted annual distribution growth rate, which we will continue to balance with leverage reduction, increasing equity returns, and maintaining sufficient cash flows to pursue growth opportunities.

Yeah well.

Well it's.

The captain allocation, Israel, consistent with what we've been saying for awhile, but who we're we're going to continue to focus on the balance sheet and it's a great place to be issue as you start approaching the the low end of our four to four and a half times leverage targets. So I think when you continue to look out and you look at all these these growth.

Project she looked at the distribution growth that we're looking at the.

Older buyback clearly remains.

As a as a option that will look at you you're probably gonna look at being at the you know the very very low end of that range. If it's not a it's not a three hand alone it.

The upper three before you could start seeing opportunistically starting to buy back units, but that's the way that you should probably look at that.

Thomas Long: This concludes our prepared remarks. Operator, please open the line up for our first question. Thank you. I'll begin the question and answer session. To ask a question, you may press star than one on your touchtone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star than two. And the best thing, of Time. We ask you to limit yourself to one question and one follow-up. This time we'll pause momentarily to assemble the roster.

[noise] got it that's that's helpful. Thanks, and then just wanted to I guess shift gears, a little bit towards the Permian just wondering if you could provide us.

Jeremy Tonet: First question will be from Jeremy Tai of J.P.

No I think he touched on a bit in your prepared remarks as far as growth opportunities there, but just wondering how you see that I guess.

Scaling over time, particularly as it relates to the NGL business and opportunities along that value chain. It seemed like the NGL and products business had a quite a nice step up this quarter and just wondering if you could highlight a bit more of what was happening there.

Thomas Long: Moreen, please go ahead. Hi, good afternoon. Hey, Jeremy. I just wanted to start off if I could. You know, if you could just provide a high level thoughts for us as the platform sits now after a number of acquisitions and projects. What type of organic growth, you know, level DC and Nate in your business? What type of EBITDA growth for your business DC? And also at the same time, I guess, how does this impact your capital allocation philosophy?

Yeah. Jeremy this is macky, what an exciting area you look at the consolidation that's going on upstream a lot of that of course is around the bigger deals and the Permian basin and as you know most on this call nobody better positioned to capitalize that transfer from every standpoint from gathering processing.

NGL takeaway intra Interstate poplin takeaway food takeaway and so it all kind of begins upstream with our G&P group.

And are in G L team working to.

Thomas Long: I think there's somewhat newer slide in the deck there that may be alludes to buybacks potential there or distribution increases as well. So just wondering if you could update us on these fronts. Yeah, for sure. Jeremy, good afternoon to you. Listen, we we've put out the guidance of that two to three billion dollars a year. And we still have, you know, at least the mid-teen type returns or high key. Type returns.

Purchase not only those barrels from our affiliate, but also barrels from others out in that base and then the word couldn't be more excited and well positioned to meet the growth out there.

It kind of feeds into the our entire partnership revenue stream.

When you take all the downstream and then ultimately.

Brackett and a lot of us were sitting our exports.

Markets now so what an incredible area of the world that.

We've heavily invested in and we see it paying off for many years ago.

Thomas Long: So you can kind of see the growth rate from there. We're going to stay with that three to five percent growth rate on the distributions. At this time, clearly, we talk about that at every single board meeting. So that's kind of the math. I think on the growth that you can see now. Remember, we still have the kind of that 85, 15%, 85%, 15% fixed versus floating. Now it's moved into more of 90, 10 just because the commodity prices are lower.

Thomas Long: So that that scales around based upon where those prices are from that standpoint. So when you factor all that in and then all the other optimization opportunities that we will definitely jump on when those opportunities present themselves. I think you can kind of look at look at that type of growth growth rate. But I will say that we're going to stay with our normal schedule, meaning that with the fourth quarter earnings results.

And if I could just follow up real quick on that I guess on the other side of the NGL equation, just how much demand D. C. Materializing, how the impacts pricing for Ngls D. C kind of the lpg's continuing to price to export or just any broader thoughts and NGL supply demand dynamics and impact on NGL pricing.

You know, it's it's hard to over exaggerate the ethane and more importantly, the L. P. G growth Oh assets cannot be built quick enough in the U S to meet the international demand or by noticed that all the <unk> that are being built.

And Asia, especially in China, others on it ethane crackers that are being built so you really can't bill quick enough, but it would've been very prudent we've announced our electrical projected flex work <unk>.

Projected so under budget on track.

We have that in service by the third quarter of 25 close to fully selling that out and we're analyzing another expansion it would be a much less expensive expansion and are much less cost or bearable to expand more so we're going to continue to make sure that all of the gas that were gathering processing.

Thomas Long: We will update the 2024 even dog out and suggest to even dog out and with him. And the second part, Jeremy, did you want to just talk about the, you know, hold it back. Was that the second part of your question? Yeah, overall capital allocation, I guess, and thought in light of what you talked about for organic opportunities. Yeah, well, it's the capital allocation is real consistent with what we've been saying for a while that we're going to continue to focus on the balance sheet.

We have a home for all those liquids. So we're looking ahead and we see significant growth in our NGL business is special events, where business both on the Gulf coast in in Marcus Hook up.

Once again for many years ago.

Got it makes sense seems to suddenly build momentum for Ya Panama initiatives. There I think he put the color I'll leave it there.

Thomas Long: And it's a great place to be as you as you start approaching the low end of our four to four and a half times leverage targets. So I think when you continue to look out and you look at all these these growth projects, you look at the distribution growth that we're looking at that the older buyback clearly remains as a option that we'll look at. You're probably going to look at being at the, you know, the very, the very low end of that range.

Like.

[noise] next question will be from Spiro Donald's Oh, a city. Please go in.

February.

Afternoon. Good just just Wanna go back to one of Jeremy's questions actually and Tom equally respect that you're not in a position to supervise twenty-four guidance, yet, but but maybe just looking at the S. Four finally agree prestwood as we looked at 2024 I know, it's not guidance, but soon as pro forma numbers seem to indicate you guys will be approaching 50.

Thomas Long: If it's not a, if not a three handle on it, you know, the upper three before you could start seeing opportunistically starting to buy back units. But that's the way that you should probably look at that. Got it. That's helpful there. Thanks.

$15 billion in your next year on a combined basis, so pretty meaningful step up from 2023. So just wondering qualitatively or however, you see fit maybe help us bridge from from 2023 to those esquina numbers and what parts of the business could be driving that outside.

John Mackay: And then just wanted to, I guess, shift gears a little bit towards the Permian. Just wondering if you could provide us. So I think you touched on a bit and you prepared to march as far as growth opportunities there. But just wondering how you see that, I guess, scaling over time, particularly as it relates to the NGL business and opportunities along that value chain. It seemed like the NGL and products business had quite a nice step up this quarter.

Yeah, and they'll listen it's it's great to be talking about a number that has a 15 an allowance so let's let's start with that.

When you.

When you look at that as for remember that those were estimates we take our estimates very seriously.

When we when we file these things obviously.

John Mackay: And just wondering if you could highlight a bit more of what was happening there. Yeah, Jeremy, this is Mackay. What an exciting area you look at the consolidation that's going on upstream. A lot of that, of course, is around the bigger deals in the Permian Basin. And as you know, most on this call, nobody's better positioned to capitalize that in the transfer from every standpoint, from gathering, processing, NGL takeaway, intra-interstate pipeline takeaway, group takeaway.

And we are still in the process of finishing up.

John Mackay: And so it all kind of begins upstream with our GMP group and our NGL team working to purchase not only those barrels from our affiliate, but also barrels from others out in that basin. And we couldn't be more excited and well positioned to meet the growth out there. And it kind of feeds into the entire partnership revenue stream. When you take all that downstream, and then ultimately, a bracket in a lot of, of course, in our export markets now.

The 2024 budget numbers et cetera, which I'll go into the the guidance and that's the reason will always wait until that fourth quarter.

To come out with the very best numbers that we can but listens squirrel, we sure we sure hope we get these numbers we.

It would be great. Even if we came out with something more but let us let us get through that before we put out any type of official guidance on that we're so excited about everything we're seeing at this at this stage you know and with closing on the transaction on Friday, it's going to give us now the the opportunity to even start digging deeper.

Into into the other synergies that we didn't make into any of the estimates.

Especially the the commercial synergies so.

Let us get you know get through the clothes on Friday, and we're going to be very excited to be able to you know.

Talk about what the 24 numbers should should look like but yeah, what what a great place to be to be up to.

John Mackay: So what an incredible area of the world that we've heavily invested in, and we see a panel for many years ago. And if I could just follow up real quick on that, I guess, on the other side of the NGL equation, just how much demand you see materializing, how the impact pricing for NGLs, you see kind of the LBGs continuing to price to export, or just any broader thoughts on NGL supply demand dynamics and impact on NGL pricing.

The earnings numbers decide so.

Yeah, No no fair fair enough in Lulu, our best to stay patient one quick follow up once again going back to camp return just as we think about the the distribution grow with you on this sort of nice cadence now that it's become predictable when you're talking about the three to five per cent range I guess I'm just curious what would you need to see to flex towards the higher end of that.

John Mackay: You know, it's hard to over exaggerate the ethane and more importantly, the LPG growth assets cannot be built quick enough in the U.S, to meet the international demand, or by knows about all the PDHs that are being built in Asia, especially in China. There's a lot of ethane crackers that are being built. So you really can't build quick enough, but we're very prudent. We've announced our flexible project. It's a flexible project that's under budget on track.

Is that a function of getting leveraged lower or is it something else, we're really focused on.

Well the the the leverage.

It's within our targets, so I wouldn't want to necessarily gadget toward that you know that four to four and a half you can already see that we got the one upgrade from.

From S&P like we mentioned and the other two have us on a positive outlook and we're gonna continue to continue to work with them to to get that those up to that that myth.

John Mackay: We have that in service by the third quarter of 25. We're close to fully selling that out. And we're analyzing another expansion. It would be a much less expensive expansion and a much less cost per barrel to expand more. So we're going to continue to make sure that all of the gas that we're gathering and processing that we have at home troubles liquids. So we're looking ahead and we see significant growth in our NGL business, especially our export business both on the Gulf Coast and at Marcus Hook, once again for many years ago. God, it makes sense. It seems to certainly build momentum for your Panama initiative there. Thank you for the color.

Kind of a triple the triple the level so.

Jeremy Tonet: I'll leave it there. Thank you.

I think the other component we always look at US we're always looking out at the.

At the coverage ratio.

Making sure that you know we're staying in a in a good solid range there, but it as much as any we're also looking at a at a lot of the growth opportunities. So you know the usual capital allocation debates that you have any.

Any company has here and that's what we're going to you know going to evaluate but it's not a matter of looking at any one single point in time, it as a matter of of looking out.

With the best Christian of all we have over the you know the.

Next three four or five years, so we try to make make decisions here that that we stick with without.

Sparrow Dounis: Next question will be from Sparrow Donuts. Oh, city, please go ahead. Nice operator.

Kind of jumped jumping up and down or moving around with them.

Sparrow Dounis: I'm sorry, afternoon guys. Just want to go back to one of Jeremy's questions actually and Tom fully respect that you're not in a position to provide 24 guidance yet, but maybe just looking at the S4 filing from Presswood as we look at 2024. I know it's not guidance, but some of those performance numbers seem to indicate you guys would be approaching $15 billion and even an next year on a combined basis.

Got it and then I'll leave it there thumb thanks for the time.

Oh, thank you.

Thank you [laughter] why shouldn't be from Michael Wells Fargo. Please go in.

Hey, Thanks, Good afternoon, everyone wanted to ask Capex. Both in terms of this year, just what exactly is driving the.

Sparrow Dounis: And so pretty meaningful step up from 2023. So just wondering qualitatively or however you see fit, we have to help us bridge from 2023 to those S4 numbers and I mean what part of the business could be driving that of that? Yeah, no, listen, it's great to be talking about a number that has a 15 annal on it, so let's start with that. When you look at that S4, remember that those were estimates, we take our estimates very seriously when we file these things, obviously.

The reduction there Ah slight reduction and then for next year, if I recall correctly your last update.

I noticed a long-term run right do you think is two to 3 billion, but I think at least has a lot of something you said you don't even have 2 billion of community projects for 24. So I just wanted to get the latest update on where that stands as well.

Yeah, Michael good good afternoon.

You know as far as the first part of your question.

Would say that we we continued.

Sparrow Dounis: And we're still in the process finishing up the 2024 budget numbers, etc, which all go into the guidance. And that's the reason we'll always wait till that fourth quarter to come out with the very best numbers that we can. But listen, Spiro, we sure hope we get these numbers, it would be great even if we came out with something more. But let us get through that before we put out any type of official guidance on that.

Work on some some very very good projects some of that is going to be like that.

Timing, but even with that I want to be careful using that word because it doesn't mean that.

2020 fours.

Necessarily going to go up but.

But that blend straight into the second part of your question. If you really kind of look at that $2 billion to $3 billion you could use $750 million a year that are just kind of those <unk>.

Growth capital projects that Ah well connects all the other great.

Sparrow Dounis: We're so excited about everything we're seeing at this stage, with closing on the transaction on Friday. It's going to give us now the opportunity to even start digging deeper into the other synergies that we didn't make in the any of the estimates, especially the commercial synergies. So let us get through the close on Friday and we're going to be very excited to be able to talk about what the 24 numbers should look like. But yeah, what a great place to be to be up to be up the earnings numbers this high.

Great projects, we have that are good high returning projects that that helped with the utilization optimization of our system overall, especially with the M&A that we've been so successful a lot of this projects.

Fall kind of in that category of that of that first $750 million.

I will say that with some of the stuff that we've talked about I know mackie's talked about here is that.

Those are the other projects that aren't necessarily to F. I D. So we can't say that we've got all of that failed in right now by any means the other the other 2 billion or so from that standpoint, <unk> will continue to work on them I think we feel good about a lot of the projects. So it's you know once.

Sparrow Dounis: So. Yeah, no, fair enough and we'll do our best to stay patient.

Thomas Long: One quick follow up once again, going back to capital return. Just as we think about the distribution growth here on this sort of cadence now that's become predictable. And you talked about the three to five percent range. I guess I'm just curious, what would you need to see to flex towards the higher end of that range? Is that a function of getting leverage lower or is it something else really focused on?

Again, it's probably a $750 million and then we'll be talking more about the other projects as as we get them to F. D. A.

The one that you know we did highlight and prepared remarks of course was flexible so.

Thomas Long: Well, the leverage is within our target. So I wouldn't want to necessarily guide you toward that, you know, that four to four and a half. You can already see that we got the one upgrade from S and D like we mentioned. And the other two have us on a positive outlook and we're going to continue to continue to work with them to to get that those up to that that myth, you know, kind of that triple B, triple B level.

Got it okay that helps thank you and then you know it sounds like a pretty encouraging up to them on Lake Charles So I guess, what I'm. What I'm wondering is what would be the earliest time frame from your perspective, where you think like Charles could actually get the S. D. And then and then in service.

Hey, My voice is mackey.

Thomas Long: So I think the other component we always look at is we're always looking out at the coverage ratio making sure that, you know, we're staying, you know, in a in a good solid range there. But as much as any, we're also looking at a lot of the growth opportunities. So, you know, the usual capital allocation debates that you have, you know, any company has here and that's what we're going to, you know, going to evaluate.

Question in that we've got a lot of balls in the air we've covered it pretty well with Tom's remarks were sitting in a really good position, we really need to get to <unk> to extend the permit we think they will we've got as we said a lot of folks involved behind the scenes trying to make that happen, including other countries other.

Businesses in other countries, but we're just keeping her head down pushing we don't really have a lot of estimate. We we are we are hopeful that we'll have some <unk>. Some time kind of mid first quarter were pushing the other others are also pushing into maybe do that sooner. We don't know if it's a regulatory agency that we're working closely with and.

Thomas Long: But it's not a matter of looking at any one single point in time. It is a matter of, of looking out, you know, with the best crystal ball we have over the, you know, the next three, four, five years. So we try to make make decisions here that, that, you know, we stick with without, you know, kind of jumping up and down or moving around with them. Got it.

Hoping to make that happen sooner than later, but in the meantime tone Mason and his team are working hard pack over there now.

Trying to finalize a lot of these contracts and agreements around the equity as well as new LNG, all takers and so.

Sparrow Dounis: I'll leave it there. Thanks for the time. God, thank you.

Thomas Long: Thank you.

Michael Blum: That question be from Michael Bloom of Wells Fargo. Please go in. Hey, thanks.

It's hard to kind of predict that but if everything went exceptionally well the second quarter it could be a possibility, but we'll we'll see how things go over the next three or four months.

Michael Blum: Good afternoon, everyone. I wanted to ask on CapEx, both in terms of this year, just what exactly is driving the reduction there, slight reduction. And then for next year, if I recall correctly, your last update, I know you say a long term run rate, you think is two to three billion, but I think at least as of last update, you said you don't even have two billion of committed projects yet for 24 or so.

Great. Thank you.

[noise]. Thank you next question will be from Brian Reynolds UBS. Please go in.

Hi, Good morning, everyone, maybe to follow up on some capex questions as it relates to the Permian natural gas egress. It seems like we could you know be seen the last brownfield expansion get contracted to hear over the near future, but beyond that it seems like we need a larger pipe, which you know warriors still exist out there. So it kind of just as it relates to the warrior project at this juncture.

Michael Blum: Just wanted to get the latest update on where that stands as well. Yeah, Michael, good afternoon. You know, as far as the first part of your question, I would say that we continue to work on some very, very good projects. Some of that's going to be a maybe a bit of timing, but even with that, I want to be careful using that word because it doesn't mean that, you know, 2024's, you know, necessarily going to, you know, go up, but that blends straight into the second part of your question.

You know it has the scope of size of the project changed or evolved you know since you started marketing the project a few years ago, just to perhaps me specific customer customer.

Customer needs and to get the project that ultimately F. I D. Thanks.

Yeah, Brian This is Matthew again, yeah, we actually started early aggressively marketing. This first part of this year, but.

We are pushing hard if we mentioned we've got about 25% already signed up.

Michael Blum: If you really kind of look at that two to three billion, you could use $750 million a year that are just kind of those growth capital projects that well connects all the other great projects we have that are good, high returning projects that that help with the utilization, optimization of our system overall, especially with the M&A that we've been so successful on. A lot of this projects fall kind of in that category of that first 750 million.

We're working on another several other shippers that would bring us to about 60 or 65%, but we're going to be pretty careful in this and we're very close like we always want what would it be prudent we're not going to move forward with an F. I D until we have a substantial amount of that capacity sold out.

And it also it will feed into not only markets today, we're already connected to with our interest state network, but also will have a lot of of kind of momentum. If some of these other LNG products get of projects get to F. I D. So we're kind of like a lot of these big projects working on there just taken time, we see spur.

Michael Blum: I will say that with some of the stuff that we've talked about, I know Mackie's talked about here, is that those are the other projects that aren't necessarily to FID, so we can't say that we've got all of that filled in right now by any means, the other, you know, the other two billion or so. From that standpoint, we're continuing to work on them. I think we feel good about a lot of the projects, so it's, you know, once again, it's probably 750 million and then we'll be talking more about the other projects as we get them to FID.

Reds other than a few.

Days or weeks, where it blows out a little bit to spread it very tight there's not a lot of pain right now at Wal Hawk for the most part we think that's gonna get really difficult as we go into 24 until the next poplin built. So we do think will pick up more momentum and we're going to push hard and and kind of similar to Ah Ah comments around LNG, we hope to maybe.

Get to F I D on warrior somehow.

Sometime maybe in the second quarter of next year.

Great Super helpful and maybe they just touch on the M&A for your you know with Crestwood in Lotus coming into the fold here can you just maybe talk about how some of these acquisitions of maybe perhaps helped to for some capital I know Crestwood has some permiam processing capacity and I think you alluded to in the prepared remarks that you know some of that excess process.

Michael Blum: The one that, you know, we did highlight in prepared remarks, of course, was flexible. Got it. Okay, that helps. Thank you. And then, you know, it sounds like a pretty quick update on Lake Charles. So I guess what I'm wondering is, what would be the earliest timeframe from your perspective, where you think Lake Charles could actually get to FID and then in service? Hey, my place is Mackie. You know, tough question in that.

Capacity, you might be able to differ a processing plant a little bit. So you know how how should we think about processing capacity for 24 25, do we need to you know see another newbuild come in the next year could we see you know some capital get deferred into the fall when you're as it relates to maybe the crude side lotus or or Crestwood on the NGL I'm processing side. Thanks [noise].

Michael Blum: We've got a lot of balls in the air. We covered it pretty well with Tom's remarks. We're sitting in a really good position. We really need to get the DOE to extend the permit. We think they will. We've got, as we said, a lot of folks involved behind the scenes trying to make that happen, including other countries, other businesses and other countries. But we're just keeping our head down pushing. We don't really have a lot of estimates.

Yeah, that's Matthew again, yeah, we as you can understand we haven't been able to really dig in to the Crestwood accent, yet we don't close officially til Friday, but from a high level. We certainly recognize some capacity. So they were really in all regions. Both in the <unk> in the powder as well as in the Delaware we're constantly value.

Michael Blum: We're hopeful that we'll have something to the DOE by sometime kind of mid first quarter. We're pushing the other others are also pushing them to maybe do that sooner. But we don't know if it's a regulatory agency that we're working closely with and hoping to make that happen sooner than later. But it's a meantime. Tom Mason is team of working hard back over there now trying to finalize a lot of these, contracts and agreements around equity as well as new LNG off-takers.

Waiting Gwyneth next time to kick off the next cryo to make sure we meet our obligations as we sign up producers, but clearly we believe that this is gonna give us some time to defer that decision. We were thinking we'd have to make that decision kind of the first quarter of next year, whether we're gonna start kick off another appointment, that's probably going to push it back at least.

Three to six months, so we'll see kind of as we fully are able to analyze and look at these assets and see how they logistically blend in but we're pretty confident that a minimalist delay.

Michael Blum: And so it's hard to kind of predict that, but everything would exceptionally well, you know, the second quarter could be a possibility, but we'll see how things go over the next three or four months. Great. Thank you.

Building, a new private at least some period of time.

Great. Thanks appreciate it I'll leave it there and then enjoy the rest of your afternoon. Thanks.

Okay.

[noise]. Thank you next question I'll be from doing sound barrier bursting. Please go ahead.

Brian Reynolds: Next question will be from Brian Reynolds. UBS, please go in. Hi, good morning, everyone. Maybe to follow up on some capex questions as it relates to Permian natural gas egress, it seems like we could, you know, be seeing the last brown field expansion get contracted here over the near future, but beyond that, it seems like we need a larger pipe of which, you know, warrior still exists out there. So kind of just as it relates to the warrior project at this juncture, you know, it has the scope or size of the project changed or evolved, you know, since you started a marketing the project a few years ago, just to perhaps meet specific customer needs and to get the project that ultimately FID.

Hi, there's a lot of new India coming to the Permian in 2025, and I think 18 is actually the only main company not getting an expansion. How long are positioned are at lunchtime with Texas, Gatwick gateway to whether that contractual duration wise and does it drive more interested in organic opportunities in the basin.

Yeah. This is Matthew again.

We have noticed that there was a lot of a lot of top line pronounce here, even the last couple of days, but what we try to do as a partnership is not really worry about what others are announcing what others are building, we kind of focused on what do we need to be able to accommodate our customers and to meet the demand growth of those that were working with and we're very well possess.

Brian Reynolds: Thanks. Yeah, Brian, this is Matthew again. We actually started really aggressively marketing this first part of this year, but we are pushing hard. If we've mentioned, we've got about 25% already signed up. We're working on another couple of several other shippers that would bring us to about 60 or 65%. But we're going to be pretty careful on this. We're very careful. Like we always are. We're going to be prudent. We're not going to move forward with FID until we have a substantial amount of that capacity sold out.

Right now we move about a third of every barrel of NGL. That's produced in the Permian Basin, we have the ability to move.

Plus more barrels we can add pumps and move probably in the neighborhood of $250 more barrels. We've got some kind of dropped powder dry capacity available capacity it will be able to expand on so I think any kind of considerations are determinations from us probably a year or longer way.

Brian Reynolds: And it also will feed into not only markets that we're already connected to with our interest rate network, but also will have a lot of kind of momentum if some of these other LNG projects get FID. So we're kind of like a lot of these big projects we're working on. They're just taking time. We see spreads other than a few days or weeks where it blows out a little bit. The spreads are very tight.

Even contemplating another pipeline, where we're positioned pretty well.

To move everything we signed up in addition to more growth that we expect.

From our our G&P business.

Great that makes sense, then to declare I am certainly not pushing 82 extant landfair, but that that's super helpful.

Brian Reynolds: There's not a lot of pain. Right now out of Walhawk to the most part, we think that's going to get really difficult as we go into 24 until the next pop line is built. So we do think we'll pick up more momentum. And we're going to push hard and kind of similar to my comments around LNG.

And for your Nederland NGL export expansion.

I know that you're talking to a lot of ethylene counterparties.

It seems like you haven't quiet and.

Sign the contract here is is there any way to think about it that given how tight L. P. T expert capacity and it'll probably start mostly it's L. P. J and then as your at then contracts eventually get signed and kept Ken <unk> will be kind of thing.

Brian Reynolds: We hope to maybe get to FID on warrior sometime, maybe in the second quarter of next year. Great. Super helpful.

Brian Reynolds: And maybe you just thought on the M&A for the year, you know, with Crestwood and Lotus coming into the fold here. Can you just maybe talk about how some of these acquisitions of maybe perhaps help defer some capital? I know Crestwood has some permeant processing capacity, and I think you alluded to. And the proprietary marks that, you know, some of that excess processing capacity might be able to defer a processing plan a little bit.

Yeah, Yeah, I think I would answer it this way we are in constant.

In negotiations across the board, we have probably at least 140000 barrels of ethane customers that we're negotiating with right now.

Which some prefer Marcus hooks on the Gulf Coast will have the ability to kind of swing the volume between either one.

Brian Reynolds: So, you know, how should we think about processing capacity for 24 or 25? Do we need to, you know, see another new build coming in next year or could we see, you know, some capital get deferred into the fall. And you're as it relates to maybe the crude side bonus or, or Crestwood on the NGL and processing side. Thanks. Yeah, this is Mackie again. Yeah, we, as you can understand, we haven't been able to really dig in to the Crestwood asset yet.

But clearly L. P. G is also in high demand and so we are.

There's not a shortage of international customers and we're very excited as we said earlier that were not only very well positioned to meet that but also very well positioned meet the growth two years from now and beyond so we do things space is gonna get pretty tight as you can see by results were moving more volume or we're hitting records almost.

Brian Reynolds: We don't close officially to Friday, but from a high level, we certainly recognize some capacity available really in all regions, both in the back end and the powder as well as in the Delaware. We are constantly evaluating when is the next time to kick off the next cryo to make sure we meet our obligations as we sign up producers. But clearly we believe that this is going to give us some time to defer that decision.

Every aspect of our NGL business, including our export and we're seeing the margins. What we think we will see that over the next couple of years and then we'll have new contracts lined up to come on line when our export. So we're pretty excited you know we we got in this export business a little later than most of our competitors certainly.

Brian Reynolds: We were thinking we're going to make that decision kind of first quarter of next year, whether we're going to start kick off another point that's probably going to push it back at least three to six months. So we'll see kind of as we fully are able to analyze and look at the assets and see how they would justly blend in. But we're pretty confident that a minimalist can delay building a new prior at least some. Great. Thanks. Appreciate it. I'll leave it there and enjoy the rest of your afternoon. Thanks. Thank you.

The our our biggest.

Biggest competitor, who we've kind of of gone from nowhere to the leading export or in the world and we're proud of that part of our commercial team was done all these deals proud of I R.

<unk> so quickly out of our operating team led by Greg Mcelwain, who runs the system's efficiently and reliably and more importantly safely. So we are very proud of our team and what we've done over the last five or six years to kind of start from nowhere wrote it where we're at today, we have such.

Jean Salisbury: That question will be from Jean Salisbury or Bernstein. Please go ahead. Hi. There's a lot of new NGO pipes coming to the Permian in 2025. I think ET is actually the only main company not doing an expansion. How well positioned are Lone Star and West Texas Gateway to weather that contractual duration wise, and does it drive more interest in organic opportunities in the basin? This is Mackay again. We have noticed that there's a lot of a lot of top lines announced here even the last couple of days.

A bright future on the assets that we are building now the contracts that we haven't.

Great I'll leave it there thank you.

Thank you next question will be from John Mccain Oh Goldman Sachs. Please go in.

Hi, everyone thinks so time, maybe just taking that last piece I mean talk about exports probably being the tightest part of the value chain for you right now or at least that's what we're we're picking up on but I guess, if you were looking at cross the kind of broader E. T. N E. T combined Crestwood footprint right now where else are you seeing relative tightness.

Jean Salisbury: But what we try to do as a partnership is not really worry about what others are announcing or what others are building. We kind of focus on what do we need to build to accommodate our customers and to meet the demand growth of those that we're working with. And we are very well positioned right now. We move about a third of every barrel of NGL that's produced in the Permian Basin. We have the ability to move 112,000 more barrels.

And you know a call on on the Mark of you guys are all there is to add incremental capacity.

The Haynesville is a moron processing and the Permian just curious or thoughts overall, if we're lucky maybe beyond excellent.

Yeah, Let me just hit every region real quick we've kind of address I Hope your question and so you start in the northeast were positioned incredibly well on any kind of.

Jean Salisbury: We can add pumps and move probably the neighborhood of 250,000 more barrels. So we've got some kind of drop powder or dry capacity available capacity that we'll be able to expand on. So I think any kind of considerations or determinations from us for probably a year or longer away on any even contemplating another pipeline. We're positioned pretty well to move everything we've signed up in addition to more growth that we expect from our G&P business.

Product growth up there, whether it's ethane or L. P. G. We are kind of the only outlet with our American franchise. So you know we call it dropped powder available capacity whatever you Wanna call. It we are ready to cats or any kind of gross up there and then as you come further south we mentioned that we've got the ability to grow our transport volumes from the Permian basin fairly signal.

<unk>, we're expanding our flex sport.

Significantly and we haven't really hit on this on this call, but there was a lot of gas in north, Louisiana, Yes, it's slowed down a little bit with gas prices are the last two or three months. We think is going to pick back up as prices have improved and will continue to improve their enormous reserves there, but on top of that we have multiple intrastate an interest.

Jean Salisbury: Great. That makes sense. To be clear, I'm certainly not pushing you to expand lunch there. But that's super helpful. And for your Neeterland NGL export expansion, I know that you're talking to a lot of Essene counterparties, but it seems like you haven't quite signed the contract yet. Is there a way to think about it that given how tight LPG export capacity is, it'll probably start mostly as LPG and then as you're ethane contracts eventually get signed and kicked in, a greater share will become Essene.

Pipelines that feed into east, Texas, and North, Louisiana, and so we're very optimistic on our golf run expansion.

We can add compression and add the D. C F. A day, but we think it's much more likely that we will sign up enough to loop alright existing Gulf runs on two pipeline.

Jean Salisbury: Yeah, I think I would answer it this way. We are in constant dialogue and negotiations across the board. We have probably at least 140,000 barrels of ethane customers that we're negotiating with right now, of which some prefer markets, some of the Gold Coast will have the ability to kind of swing the volume between either one. But clearly LPG is also in high demand. And so there's not a shortage of international customers.

Especially are lined with <unk>.

That's F I D.

We see that is certainly a a huge growth area for us on a large pipeline projects somewhere in the future along with what where everybody talks about our warrior.

Project in other areas so.

Anywhere the area is where either situated very well to grow with next no capital or we have such a excellent position to aggravate volumes to support a project like golf and expansion project playing golf.

Jean Salisbury: And we're very excited as we've said earlier that we're not only very well positioned to meet that but also very well positioned to meet the growth two years now and beyond. So we do think space is going to get pretty tight. As you can see by results, we're moving more volume. We're hitting records almost every aspect of our NGL business, including our export. And we're seeing the margins wide. And we think we'll see that over the next couple of years and then we'll have new contracts lined up to come online when our Flexboard.

Nope, that's clear thinking maybe just following up everything about twenty-three guidance. Overall can you just maybe a quick breakdown of how much of the step up was crestwood versus kind of underlying you know business outperformance and maybe if you're touching on the golf run contributions.

Third quarter Interstate was most particularly strong you know gossip were always pretty strong.

Particularly if we're kind of a shoulder season is this a clean new run right from here are there any kind of one off from there.

Jean Salisbury: So we're pretty excited. We got into the export business a little later than most of our competitors, certainly our biggest competitor. We've kind of gone from nowhere to the leading exporter in the world. And we're proud of that. And proud of our commercial team has done all these deals proud of our E&C team who build these assets so quickly, proud of our operating team led by Greg Makaline, who runs these businesses efficiently and reliably and more importantly, safely.

Yeah, no listen.

I think the best way to look best way to look at that as far as the guidance go goes in the split between the between the two is the.

The guidance, we had coming into this quarter that we've provided in the second quarter was 13.1% to 13.4 billion issue though.

Mmm.

As you really looked at the new numbers, we gave you could probably say that.

The existing business was right at the top end of that of that range and the rest of it would be crestwood presswood would be net transaction cost.

Jean Salisbury: So we are very proud of our team and what we've done over the last five or six years to kind of start from nowhere and grow to where we're at today. And we have such a bright future on the assets that we are building now in the contract. Great.

So that's what we're currently expecting right now still you know maybe some moving pieces as we get into the into the fourth quarter, but we feel pretty good about the 13.5 to 13.6.

Jean Salisbury: I'll leave it there. Thank you.

John Mackay: Next question will be from John Mackay.

John Mackay: Oh, Golden Facts, please go in. Hey everyone, thanks for the time. Maybe just taking that last piece. I mean, talked about exports, probably being the tightest part of the value chain for you right now, at least that's what we're picking up on. But I guess if you're looking across the kind of broader ET, kind of ET combined crestwood footprint right now, where else are you seeing relative tightness and, you know, a call on the market. You guys are others to add in parental capacity. You know, the Haynesville is a more unprocessing and the Permian just curious your thoughts overall if we're looking maybe beyond export.

That's cool I appreciate it.

Thank you next question will be from kneeling withdrawal Oh Bank of America. Please go ahead.

Hi, good afternoon, Thanks for taking my question Firstly.

It seems that pushing inventories are extremely low right now so wanted to understand how your centurion flows in your overall Lotus acquisition was able to materialize on on this dynamic in the third quarter.

John Mackay: Yeah, let me just hit every region real quickly to kind of address I hope your question in the, so you start in the northeast, we're positioned incredibly well. On any kind of product growth up there, whether it's ethane or LPG, we are kind of the only outlet with our Mariner franchise. So, you know, we call it dry powder or available capacity, whatever you want to call it, we are ready to capture any kind of growth up there.

Yeah, you bet. The Mac you again, you have to do a shot out to Chris hefty and his team and what they've done over the last two years just been phenomenal as you look at Ah.

Enable and kinda, what it's done over the last year and a half minutes introduce that we found in the same with Ah works.

And same thing we continue to look at significant commercial synergies around blending.

John Mackay: And then, as you come further south, we mentioned that we've got the ability to grow our transport volumes from the Permian Basin, fairly significantly. We're expanding our Plexport, fairly significantly, and we haven't really hit on this one this call, but there's a lot of gas in North Louisiana. Yes, it slowed down a little bit with gas prices. Here, last two of we must, we think it's going to pick back up as prices have improved and will continue to improve.

As we have made an announcement we are looping pipe. So that we can move more volume to benefit when the spread blows out between Midland in Cushing. So we're slowly positioning ourselves become a much bigger player to be able to move volumes between the Cushing in Midland areas as well as of course to the Gulf Coast or Houston Native terminal.

John Mackay: There's enormous reserves there. But on top of that, we have multiple entrustated and interstate pipelines that feed into East Texas and North Louisiana. And so, we're very optimistic on our Gulf Run expansion. You know, we can add compression and add a DCF today, but we think it's much more likely that we will find up enough to loop our existing Gulf Run zone two pipeline, especially aligned with L&T. If we get that to FID, but we see that as certainly a huge growth area for us on a large pipeline project, somewhere in the future, along with what we're talking about, our warrior project and other areas.

And and I think likewise, we're gonna see with the Crestwood a lot of the same Saturday. So we're.

Pretty excited about our ability to buy these assets at the the values whereby at their great stand alone companies in assets and then once we blend them in like your question with Lotus, We're finding significant synergies that we didn't recognize as we were pursuing these acquisitions.

Got it and then my second question you've had a lot of success building.

For me into to Mexico, natural gas pipelines and it seems like the Utilizations on Comanche traveling <unk> pay goes for picking up and you have a competitor looking to build a pipeline to the border as well with some of the west coast LNG demand and increased and does.

John Mackay: So, you know, depending on where the area is, we're either situated very well to grow with next no capital, or we have such an excellent position to aggregate volumes to support a project like Gulf Run, an expansion project like Gulf Run.

The demand and what's Mexico are you seeing any appetite for pipeline expansions down to the border or possibly participating in a new project to move gas to Mexico.

John Mackay: That's clear. Thank you.

Thomas Long: Maybe just following up. But if I think about 23 guidance overall, could you just maybe a quick breakdown of how much of the step up was Crestwood versus kind of underlying, you know, business outperformance. And maybe if you're touching on the Gulf Run contributions, you know, third quarter interstate was most particularly strong. Third quarter gas overall was pretty strong, particularly for kind of a shoulder season. Is it a clean, new run rate from here?

This is Matthew.

No. We we're not we're not pursuing anything right now as you mentioned, though we are ramping up our two pipelines out west, Texas did deliver to Mexico, we still have quite a bit of capacity to fill up to fully utilize those pipelines. We have some pipelines in south, Texas that we deliver either directly into Mexico or into other larger diameter pipeline.

Thomas Long: Are there any kind of one-offs in there? Thanks. Yeah, no, listen. I think the best way to look, the best way to look at that as far as the guidance goes in the split between the, between the two is, you know, the, the guidance we had coming into this quarter that we provided in the second quarter was 13.1 to 13.4 billion, as you know. As you really looked at the new numbers we gave, you can probably say that the existing business was right at the top end of that range, and the rest of it would be Cresswood, but it Cresswood would be net transaction cost. So that's what we're currently expecting right now, still maybe some moving pieces as we get into the fourth quarter, but we feel pretty good about the 13.5 to 13.6.

Thomas Long: Let's go ahead and appreciate it. Thank you.

No. We don't have anything on the drawing board. Yes, we are aware of some proposed pipelines out of the wall airy and waste, but hadn't west but.

But we are involved in any of those projects at this time.

Okay, great. Thank you very much.

[noise]. Thank you [noise] final question will come from game room, but let me go ahead.

First for the uplifting pricing on you're interested.

Clients and storage it seems like if I'm reading it right.

Maybe accelerating you just talk about sort of how you feel your position right cause how it comes is five and what to what extent that's still.

Gonna be window to your back's going forward, it's 2024.

He gave this is Mac you know apologize you're you're we started hearing about halfway through your question sorry.

Neil Mitra: Next question will be from Neil Mitra. Oh, Bank of America, please go ahead. Hi, good afternoon. Thanks for taking my questions. Firstly, it seems that pushing inventories are extremely low right now. So I wanted to understand how your centurion flows and your overall load. Its acquisition was able to materialize on this dynamic in the third quarter. Yeah, you bet this is Mackay again. Yeah, I have to do a shout out to Chris Hefty and his team and what they've done over the last two years has just been phenomenal as you look at a naval and kind of what it's done over the last year and a half in the synergies that we've found in the same width of wax.

Okay can you hear me now I'm actually.

Yes.

Okay, Great. Yeah, I was just gonna say to what extent repricing your Interstate gas pipeline and storage capacity is gonna be when did when did your box in 2024. It seems like some of them, it's accelerating as we progress through 23.

Yeah, you know years ago. This wasn't fun to talk about it is now when you look at the value for example on the M. A P. R. One tiger one golf wrong or even on sash, we're seeing growing growing demand on all of those assets T. W. I mean, just pick an asset and most of what we're doing right.

Now, it's either at terra or close to Tara.

The demand is there a lot of the gas throughout this country is trying to find his way to the Gulf Coast, we're very well positioned to benefit from that with all the iphones.

Neil Mitra: And what is the same thing we continue to look at significant commercial synergies around blending as we have made an announcement. We are looping pipes so that we can move more volume to benefit when the spread blows out between middle and end cushioning. So we're slowly positioning ourselves to become a much bigger player to be able to move volumes between the cushioning and middle and areas as well as, of course, to the Gulf Coast.

Just mentioned and others.

So we don't really unlike yours past, we've had some concern with contracts were terminating of what we could do with that available asked I mean Congress is a good example, tiger was about half empty with spread down to five or six cents and that we're running at full.

Much bigger spread so we're pretty excited about any available capacity.

Neil Mitra: To our Houston and native of terminal. And I think likewise, we're going to see with Chris with a lot of the same synergies. So we're pretty excited about our ability to buy these assets at the values where the buy at. They're great stand-alone companies and assets and then once we blend them in, like your question with Lotus, we're finding significant synergies that we didn't recognize as we were presenting that to the acquisition.

Once it comes out with a contract we think worst case were rolled over it somewhere if not higher rates than we already are at unless we're already a tariff.

Right.

Thank you.

Question and answer session to turn.

Turn to call back over to Mister Tom long for closing remarks.

Once again, thank all of you for joining US today, we greatly appreciate all your support and we look forward to talking to you in the near future.

John Mackay: Got it. And then my second question. You've had a lot of success building from me into to Mexico, natural gas pipelines. And it seems like the utilizations on Comanche, Trail, and Prince Picos are picking up. And I have a competitor looking to build a pipeline to the border as well. With some of the West Coast LNG demand had increased industrial demand in West Mexico, are you seeing any appetite for pipeline expansions down to the border or possibly participating in a new project to move gas to Mexico?

<unk> concludes our conference thing. Thank you for attending you may now disconnect.

John Mackay: Oh, this is Mackie. No, we're not, we're not pursuing anything right now. As you mentioned, though, we are ramping up our two pipelines out west Texas that delivered to Mexico. We still have a lot of capacity to fill up to fully utilize those pipelines. We have some pipelines south Texas that we deliver either directly into Mexico or into other larger diamond pipelines. But no, we don't have anything on the drawing board. Yes, we are aware of some proposed pipelines. One out of the wall, Harry and we, but we are involved in those projects this time.

Neil Mitra: Thank you very much. Thank you.

Gabriel Moreen: I have a question to come from Gabriel Moreen. I'll be able to go ahead. Part of sort of the uplift in pricing on your interstate gas pipelines and storage. It seems like if I'm reading it right, some of that uplift may be accelerating. You just talk about sort of how you feel your position, rate case outcomes is five, and what extent that's still going to be windage your backs going forward in 2024.

Gabriel Moreen: Hey, Gabe, this is Mack, you now apologize. You're, we started hearing about halfway to your question. Sorry. Okay, can you hear me now, Mackay? Yes. Okay, great. I was just going to say to what extent repricing your interstate gas pipeline and storage capacity is going to be windage your backs in 2024. It seems like some of that's accelerating as we progress through 23. Yeah, you know, years ago, this wasn't fun to talk about.

Gabriel Moreen: It is now when you look at the value, for example, on the MEP or on Tiger or on Gulf Run or even on SASH, we're seeing growing, growing demand on all those assets. I mean, just pick an asset. And most of what we're doing right now is either at tariff or close to tariff. The demand is there. A lot of the gas got this country is trying to find its way to Gulf Coast.

Gabriel Moreen: We're very well positioned to benefit from that with all the pipelines I just mentioned and others. So we don't really, unlike years past, we might have had some concern when contracts were terminating of what we could do with that available. I mean, Tiger is a very example of me. Tiger was about half empty with spread down to five or six cents, and now we're running it full at much bigger spread. And so we're pretty excited about any available capacity. You know, once it comes out from the contract, we think worst case, we'll world over it somewhere. If not higher rates than we already are at, unless we're already at tariff. Thanks, thank you. Thank you.

[music].

[music].

Thomas Long: I conclude to request your answer session.

Good day, and welcome energy Transfer's third quarter of 2023 earnings Conference call.

All participants are women listen only mode. If you need assistance. Please signal a conference specialist by pressing as Starkey followed by zero.

After today's presentation or the opportunity to ask questions.

Please note that this event is being recorded.

I'd like to turn the call over to Mr. Tom Long Cold C E. L. F energy transfer. Please go ahead.

Thank you operator, and good afternoon, everyone welcome to the energy transfer third quarter 2023 earnings call. I'm also joined today by Mackie Mccrea and other members of the senior management team who are here to help answer your questions. After our prepared remarks.

You saw the press release, we issued earlier this afternoon as well as the slides posted to our website.

As a reminder, we will be making forward looking statements within the meaning of section 20 <unk> of the Securities Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to US and are discussed in more details in our Form 10-Q for the.

Quarter ended September 32023, which we expect to file Tomorrow November the second.

I'll also refer to adjusted EBITDA, and distributable cash flow or DCF, both of which are non-GAAP financial measures you will find a reconciliation of our non-GAAP financial measures on our website.

Okay.

We will start today by going over our financial results for the third quarter of 2023, we generated adjusted EBITDA of $3 $5 billion compared to $3 1 billion for the third quarter of 2022.

And our base business, we had strong performance across our operations, including record volumes through our NGL pipelines, fractionator, and NGL and refined products terminals.

As well as record volumes in our crude segment.

In addition volumes in our intrastate and midstream segments remained near records.

DCF attributable to the partners of energy transfer as adjusted was $2 billion compared to $1 6 billion for the third quarter 2022.

This resulted in excess cash flow after distributions of $1 billion.

On October 20th we announced a quarterly cash distribution of <unk> 31, and a quarter cents per common unit or $1 25 on an annualized basis.

This distribution represents an increase from the $26.05 in the third quarter of 2022.

In August energy transfer as senior unsecured credit rating was upgraded by S&P to triple B with a stable outlook.

We are pleased to have this third party recognition of all the hard work that we have done over the last several years and as we have placed significant focus on our balance sheet and leverage reduction.

As of September 32023, the total available liquidity under our revolving credit facility was approximately $2 one 2 billion.

During the third quarter of 2023, we spent $418 million on organic growth capital.

And in October we completed the sale of $4 billion of aggregate principal amount of senior notes and used the proceeds to repay borrowings on our revolving credit facility and pre funded 2024 maturities.

Now turning to our results by segment for the third quarter, starting with the NGL and refined products. Adjusted EBITDA was $1 1 billion compared to $634 million for the third quarter 2022.

This was primarily due to strong performances across our transportation storage terminal and fractionation operations.

We also saw strong contributions from our optimization of hedged NGL and refined products inventories, where we recorded $107 million in marketing margin compared to a loss of $126 million in the third quarter of last year.

NGL transportation volumes on our wholly owned and joint venture pipelines increased 14% to a record $2 2 million barrels per day compared to $1 9 million barrels per day for the same period last year. This increase was primarily due to higher volumes from the Permian region and on.

Our NGL pipelines that delivered into our Nederland terminal as well as on the Mariner East pipeline system.

Average fractionated volumes increased 9% to a record 1 million barrels per day compared to 940000 barrels per day for the same period last year.

Total NGL export volumes grew more than 20% over the third quarter of 2022, setting a new partnership record.

This was primarily driven by increased international demand for Ngls.

Through the first nine months of this year, we loaded more than 47 million barrels of ethane out of Nederland and approximately 21 million barrels of ethane out of Marcus Hook in total we continue to export more ngls than any other company during the third quarter and maintained an approximately.

Thomas Long: I like to turn the call back over to Mr. Tom Long for closing remarks. Once again, thank all of you for joining us today. We greatly appreciate all your support. And we look forward to talking to you in the near future. Thank you.

Operator: A computer conference today. Thank you for attending.

20% market share of worldwide NGL exports as well as nearly 40% of U S exports.

Operator: You may now disconnect. Thank you.

Thomas Long: [inaudible] and thank you for your time,[inaudible] your time, and thank you for your time, and thank you for your time,[inaudible][inaudible] and thank you very much and thank you very much[inaudible] We will start today by going over our financial results for the third quarter of 2023. We generated a just a deba-dive, $3.5 billion, compared to $3.1 billion for the third quarter of 2022. In our base business, we had strong performance across our operations, including record volumes through our NGO pipelines, fractionators, and NGO and refined products, terminals.

For midstream adjusted EBITDA was $631 million compared to $868 million for the third quarter of 2022, we.

Thomas Long: As well as record volumes in our crude segment. In addition, volumes in our interest state and midstream segments remained near records. DCF, the Tribunal to the Partners of Energy Transfer, as adjusted, was $2 billion, compared to $1.6 billion for the third quarter of 2022. This resulted in excess cash flow after distributions of $1 billion. On October 20th, we announced a quarterly cash distribution of $31.25 per common unit, or $1.25 on an annualized basis.

We saw near record throughput again, this quarter, which was the result of growth in the majority of our operating regions. The strong volume growth was more than offset by significantly lower natural gas and NGL prices.

Gathered gas volumes increased 4% to $19 8 million <unk> per day compared to $19 1 million Btu per day for the same period last year.

Thomas Long: This distribution represents an increase from the $26.5 in the third quarter of 2022. In August, Energy Transfer's Senior Unsecure Credit Rating was upgraded by S&P to triple B with a stable outlook. We are pleased to have this third-party recognition of all the hard work that we have done over the last several years, and as we have placed significant focus on our balance sheet and leverage reduction. As of September 30th, 2023, the total available liquidity under our revolving credit facility was approximately $2.12 billion.

For our crude oil segment.

Adjusted EBITDA was $706 million compared to $461 million for the third quarter of 2022.

This was primarily due to higher volumes on several of our pipelines as well as the acquisition of the Lotus assets in May of this year and.

In addition, G&A expenses decreased $126 million as a result of one time charge related to the resolution of a legal matter in the prior period crude.

Crude oil transportation volumes were a record $5 6 million barrels per day compared to $4 6 million barrels per day for the same period last year. This was a result of higher volumes on our Texas pipeline systems, the Bakken pipeline as well as the acquisition of the Lotus assets and May have.

Thomas Long: During the third quarter of 2023, we spent $418 million on organic growth capital. And in October, we completed the sale of $4 billion of aggregate principal now of senior notes, and used the proceeds to repay barrings on our revolving credit facility and pre-funded 2024 maturities. Now, turning to our results by segment for the third quarter, starting with NGL, refined products, adjusted EBITDA was $1.1 billion compared to $634 million for the third quarter 2022.

This year.

In our Interstate segment, adjusted EBITDA was $491 million compared to $409 million in the third quarter of 2022. This increase was primarily due to placing the Gulf run pipeline into service in December of 2022, as well as higher contracted volumes.

Interruptible utilization on several of our wholly owned and joint venture pipelines vol.

Thomas Long: This was primarily due to strong performances across our transportation, storage, terminal, and fractionation operations. We also saw strong contributions from our optimization of hedged NGL refined products inventories, where we recorded $107 million in marketing margin compared to a loss of $126 million in the third quarter of last year. NGL transportation volumes on our wholly owned and joint venture pipelines increased 14% to a record 2.2 million barrels per day compared to 1.9 million barrels per day for the same period last year.

Volumes increased 15% over the same period last year due to the Gulf run pipeline being placed into service as well as higher utilization on many of our Interstate pipelines, including Transwestern Rover Panhandle and trunkline.

We continue to fully utilize zone, one capacity on Gulf run and we're also maximizing deliveries into our trunkline pipeline from zone two.

And for our intrastate segment, adjusted EBITDA was $244 million compared to $301 million in the third quarter of last year.

Benefits from favorable storage optimization, and new contracts on our Texas and Haynesville pipelines as well as lower operating expenses were more than offset by decreases resulting from lower spreads across our intrastate pipeline network and lower natural gas pricing.

Thomas Long: This increase was primarily due to higher volumes from the Permian region and on our NGL pipelines that delivered into our needle and terminal as well as on the Marineries Pipeline System. System. Average fractionated volumes increased 9% to a record 1 million barrels per day compared to 940,000 barrels per day for the same period last year. Total NGO export volumes grew more than 20% over the third quarter of 2022, setting a new partnership record.

Now turning to our acquisition of Crestwood equity partners, which we announced in August of this year.

As many of you have probably seen earlier this week Crestwood unitholders voted to approve the merger between energy transfer and Crestwood. The acquisition is expected to be immediately accretive to DCF per unit upon closing.

Thomas Long: This was 9 months of this year, we loaded more than 47 million barrels of ethane out of Niederland and approximately 21 million barrels of ethane out of Marcoshood. In total, we continue to export more NGOs than any other company during the third quarter and maintained an approximately 20% market share of worldwide NGO exports as well as nearly 40% of US exports. For mid-stream, adjusted EBITDA was $631 million compared to $868 million for the third quarter of 2022.

In addition, this transaction will extend to energy transfer's position in the value chain deeper into the Williston and Delaware basins, while also providing entry into the powder River basin.

These assets are expected to complement energy transfer's downstream fractionation capacity at Mont Belvieu as well as its hydrocarbon export capabilities from both our Nederland and Marcus Hook terminals.

We also expect benefits within our NGL and refined products and crude oil businesses with the addition of strategically located storage in terminal assets we have.

Thomas Long: We saw near record throughput again this quarter, which was the result of growth and the majority of our operating regions. The strong volume growth was more than offset by significantly lower natural gas and NGL prices. Gathered gas volumes increased 4% to 19.8 million MMBTUs per day compared to 19.1 million MMBTUs per day for the same period last year. For our crude oil segment, adjusted EBITDA was $706 million compared to $461 million for the third quarter of 2022.

Now expect the acquisition to close on November 3rd and we expect to achieve approximately $40 million in annual cost synergies before additional anticipated benefits from financial and commercial synergies.

Turning to our growth projects, starting with our Nederland and Marcus Hook export terminals September and October were our best months ever across our NGL export terminals and these terminals continue to benefit from increased demand both in the U S as well as from international customers.

Earlier this year, we did an expansion to our NGL export capacity at Nederland in order to address the growing demand. We expect this expansion, which is projected to cost approximately $1 two 5 billion.

Thomas Long: This was primarily due to higher volumes on several of our pipelines as well as the acquisition of the lotus assets in May of this year. In addition, GNA expenses decreased $126 million as result of one time charge related to the resolution of a legal matter in the prior period. Crude oil transportation volumes were a record 5.6 million barrels per day compared to 4.6 million barrels per day for the same period last year.

To add up to 250000 barrels per day of export capacity.

The project is expected to be in service in mid 2025, and will give us flexibility to load various products based upon customer demand construction is underway and we look forward to providing more specifics on this expansion as it progresses.

Thomas Long: This was a result of higher volumes on our Texas pipeline systems, the Bakken pipeline as well as the acquisition of the lotus assets in May of this year. In our interstate segment, adjusted EBITDA was $491 million compared to $409 million in the quarter of 2022. This increase was primarily due to placing the Gulf Run pipeline into service in December of 2022 as well as higher contracted volumes and interruptible utilization on several of our wholly owned and joint venture pipelines.

We also continue to pursue an optimization project at our Marcus Hook terminal.

We project would add incremental ethane refrigeration and storage capacity.

At Mont Belvieu, we placed frac eight into service in August, which brought our total Mont Belvieu fractionation capacity to over 115 million barrels per day as a result in October throughput at our fractionator has reached an all time high.

Out in the Delaware Basin, we have placed two 200 million cubic foot per day processing plants into service since December of 2022, and we now have a total of eight 200 million cubic foot per day processing plants operating in the Delaware Basin.

Thomas Long: Volumes increased 15% over the same period last year due to the Gulf Run pipeline being placed into service as well as higher utilization of many of our interstate pipelines, including Transwestern, Rover, Panhandle, and Trunkline. We continue to fully utilize Zone 1 capacity on Gulf Run and we are also maximizing deliveries into our Trunkline from Zone 2, and for our Intrastate segment, Adjusted Debidai was $244 million compared to $301 million in the third quarter of last year.

Our plant in <unk>.

<unk> near record highs and we continue to contemplate the necessity and potential timing of adding another processing plant in the Permian basin, while considering any available new capacity that we acquire the Crestwood acquisition.

Next an update on our Lake Charles LNG project, we continue to see significant interest in our LNG capacity from U S producers and international markets. We are in negotiations with several significant equity partners and are ultimately targeting retaining an interest of approximately 20%.

Thomas Long: Benefits from favorable storage optimization and new contracts on our Texas and Haynesville pipelines, as well as lower operating expenses, were more than offset by decreases resulting from lower spreads across our interestate pipeline network and lower natural gas pricing.

Sent for energy transfer.

These potential equity partners are also interested in substantial volumes of LNG offtake, we are in negotiations to finalize our EPC contract and we are receiving tremendous support from domestic and international customers community stakeholders and other interested constituents who are.

Thomas Long: Now turning to our acquisition of Creswood Equity Partners which we announced in August of this year, as many of you have probably seen earlier this week, Creswood Unit Holders voted to approve the merger between Energy Transfer and Creswood. The acquisition is expected to be immediately accretive to DCF per unit upon closing. In addition, this transaction will extend energy transfer's position in the value chain deeper into the Wilston and Delaware Basins while also providing entry into the Powder River Basin.

Actively encouraging the department of energy to approve our pending export authorization application on an ex Pat expedited basis.

And now for an update on a few other projects on the carbon capture and sequestration front, we're continuing to make progress with capture point. This project entails the capture of Seo to from our treating plants in north, Louisiana and the construction of a pipeline to a sequestration site in center.

Thomas Long: These assets are expected to complement energy transfers downstream fractionation capacity at Montbell View, as well as its hydrocarbon export capabilities from both our Nederland and Marcos of Terminals. We also expect benefits within our NGL refined products and crude oil businesses with the addition of strategically located storage and terminal assets. We now expect the acquisition to close on November the third and we expect to achieve approximately $40 million in annual cost synergies before additional anticipated benefits from financial and commercial synergies.

Louisiana.

We are continuing to work with oxy to develop a Ccs project in Lake Charles Louisiana area.

This would include the construction of our seal to pipeline connecting our industrial facilities to Oxy has proposed sequestration site.

On the Blue ammonia front, we are working with several companies to evaluate the feasibility of ammonia projects that would include significant natural gas supply opportunities deepwater dock access and other infrastructure services on existing energy transfer property near our Lake Charles and Nederland facility.

Thomas Long: Turning to our growth projects and starting with our Nederland and Marcos of Export Terminals, September and October were our best months ever across our NGL export terminals and these terminals continue to benefit from increased demand both in the U.S, as well as from international customers. Earlier this year, we FID and expansion to our NGL export capacity at Nederland in order to address the growing demand. We expect this expansion which is projected to cost approximately $1.25 billion to add up to 250,000 barrels per day of export capacity.

<unk>. Additionally, we are working on Ccs projects related to our processing plants and trading facilities in South, Texas, and West, Texas, and we are evaluating other seo to pipeline projects that would connect sale two emitters to cotwo sequestration sites in the Houston ship.

Channel corridor.

Finally, we are evaluating the use of some of our existing 250000 acres of land in Virginia, West, Virginia, and Kentucky for wind Solar fourth Street carbon credits and other uses the Virginia Department of energy has spent considerable time and effort evaluating a variety of projects.

Thomas Long: The project is expected to be in service in mid 2025 and will give us flexibility to load various products based upon customer demand. Construction is underway and we look forward to providing more specifics on this expansion as it progresses. We also continue to pursue an optimization project at our Marcos of Terminal that we project would add incremental ethane refrigeration and storage capacity. At Montveilview, we placed Fracke into service in August, which brought our total Montveilview fractionation capacity to over 1.15 million barrels per day as result in October through put at our fractionators reached an all-time high.

65000 acres located in southwest Virginia.

Now looking at our growth capital spend for the nine months ended September 32023 energy transfer spent $1 2 billion organic growth projects, primarily in the midstream and NGL and refined product segments, excluding sun and USA compression capex for full year 2023.

Three we expect growth capital expenditures to come in slightly below our previously announced guidance of $2 billion <unk>.

Including growth capital related to Crestwood.

Thomas Long: Out in the Delaware Basin, we have placed 200 million cubic foot per day processing plants into service since December of 2022. And we now have a total of 800 million cubic foot per day processing plants operating in the Delaware Basin.

Looking ahead, we continue to evaluate a number of other potential growth projects that we hope to bring to <unk>.

We expect to provide our 2020 for growth capital outlook on our fourth quarter earnings call.

However, as we look forward to a potential backlog of high returning growth projects. We continue to expect our long term annual growth capital run rate to be approximately $2 billion to $3 billion.

Thomas Long: Watson. Our plan remains near record highs and we continue to contemplate the necessity and potential timing of adding another processing plant in the Permian Basin while considering any available new capacity that we acquire via the Crestwood acquisition.

Now for adjusted EBITDA guidance.

For the full year 2023, we now expect our adjusted EBITDA to be between $13 5 billion and $13 $6 billion, including two months of Crestwood.

Thomas Long: Next an update on our Lake Charles LNG project, we continue to see significant interest in LNG capacity from US producers and international markets. We are in negotiations with several significant equity partners that are ultimately targeting retaining an interest of approximately 20% for energy transfer. These potential equity partners are also interested in substantial volumes of LNG off-take. We are in negotiations to finalize our EPC contract and we are receiving tremendous support from domestic and international customers, community stakeholders and other interested constituents who are actively encouraging the Department of Energy to approve our pending export authorization application on an expedited basis.

We continue to see strong volumes and stable cash flows throughout our business segments with recently completed growth projects contributed during several records.

In the third quarter.

Looking ahead, we are excited to close on the acquisition of Crestwood. Later. This week, we look forward to working with the new Crestwood employees as we integrate these new assets into our energy transfer franchise.

We believe the combination of these businesses will present strategic commercial opportunities and efficiencies, we expect the newly acquired Crestwood assets as well as the growth projects completed throughout this year to provide additional opportunities and positive momentum for the rest of this year and going into next year.

Thomas Long: And now for an update on a few other projects, on the carving capture and sequestration front, we are continuing to make progress with capture point. This project entails the capture of CO2 from our treating plants in North Louisiana and the construction of a pipeline to a sequestration site in central Louisiana. We are continuing to work with Oxy to develop a CCS project in Lake Charles, Louisiana area. This would include the construction of a CO2 pipeline connecting our industrial facilities to Oxy's proposed sequestration site.

<unk>.

We will continue to pursue strategic optimization and expansion projects that enhance our existing asset base generate attractive returns and meet the growing demand.

For our products and services.

Our financial position remains strong and we remain committed to our targeted annual distribution growth rate, which we will continue to balance with leverage reduction increasing.

Equity returns and maintaining sufficient cash flows to pursue growth opportunities. This concludes our prepared remarks operator. Please open the lineup for our first question. Thank.

Thomas Long: On the blue ammonia front, we are working with several companies to evaluate the feasibility of ammonia projects that would include significant natural gas supply opportunities, deep water dock access and other infrastructure services on existing energy transfer property near our Lake Charles and New Zealand facilities. Additionally, we are working on CCS projects related to our processing plants and treating facilities in South Texas and West Texas. And we are evaluating other CO2 pipeline projects that would connect CO2 emitters to CO2 sequestration sites in the Houston ship channel corridor.

Thank you. So I'll begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.

We are using a speakerphone please pick up your handset before pressing the keys.

Withdraw your question. Please press Star then two.

In the best interest of time, we ask you to limit yourself to one question and one follow up at.

At this time, we'll pause momentarily to assemble the roster.

First question will be from Jeremy.

With Jpmorgan. Please go ahead.

Hi, good afternoon.

Hey, Jeremy.

Just wanted to start off if I could.

Could you just provide a high level thoughts for us as the platform sits now after a number of acquisitions and projects what type of organic growth.

Thomas Long: Finally, we are evaluating the use of some of our existing 250,000 acres of land in Virginia, West Virginia and Kentucky for wind, solar, forestry, carbon credits and other uses. The Virginia Department of Energy has spent considerable time and effort evaluating a variety of projects on 65,000 acres located in Southwest Virginia.

Level do you see in your business what type of EBITDA growth for your base business do you see and also at the same time I guess.

How does this impact your capital allocation philosophy.

Somewhat newest slide in the deck, there, maybe alludes to buybacks potential there or distribution increases as well. So just wondering if you could update us on these fronts.

Thomas Long: Now looking at our growth capital spend for the nine months ended September 30, 2023, energy transfer spent $1.2 billion organic growth projects, primarily in the midstream and NGL Refined Product segments, excluding Sun and USA Compression CapEx. For four year 2023, we expect growth capital expenditures to come in slightly below our previously announced gardens of $2 billion, including growth capital related to Creswood. Looking ahead, we continue to evaluate a number of other potential growth projects that we hope to bring to FID.

Yeah for sure Jeremy and good afternoon to you.

Listen, we we've put out the guidance of that $2 billion to $3 billion, a year and we still have at least a nickname.

Returns are high.

Type returns. So you can kind of see the growth rate from there we're going to stay with that 3% to 5% growth rate on the distributions at this time clearly we talk about that at every single Board meeting so that's kind of the math.

I think on the growth that you can see now remember we still have.

Thomas Long: We expect to provide our 2024 growth capital outlook on our fourth quarter earnings call. However, as we look forward to our potential backlog of high returning growth projects, we continue to expect our long-term annual growth capital run rate to be approximately $2 to $3 billion.

Kind of that 80, 515, 85% 15%.

Fixed versus floating now it's moved into more of 90 10, just because of the commodity prices are lower so that scales around based upon where those prices are.

From that standpoint, so when you when you factor all that in and then all the other optimization opportunities that we will.

Thomas Long: Now for adjusted EBITDA guidance. For the full year 2023, we now expect our adjusted EBITDA to be between $13.5 billion and $13.6 billion, including two months of Crestwood. We continue to see strong volumes and stable cash flows throughout our business segments with recently completed growth projects, contributing several records in the third quarter. Looking ahead, we are excited to close on the acquisition of Crestwood later this week. We look forward to working with the new Crestwood employees as we integrate these new assets into our energy transfer franchise.

We will definitely jump on when those opportunities present themselves I think you can kind of look at.

Look at that type of growth growth rate, but I will say that.

We're going to stay with our normal schedule, meaning that with the fourth quarter earnings results, we will update the 2024.

EBITDA guidance adjusted EBITDA guidance with you.

And the second part Jeremy did you want to just talk about that.

Buyback was that the second part of your question, Yes, overall capital allocation I guess any thoughts in light of what you.

You talked about for organic opportunities.

Thomas Long: We believe the combination of these businesses will present strategic commercial opportunities and efficiencies. We expect the newly acquired Crestwood assets, as well as the growth projects completed throughout this year to provide additional opportunities and positive momentum for the rest of this year and going into next year. We will continue to pursue strategic optimization and expansion projects that enhance our existing asset base, generate attractive returns, and meet the growing demand for our products and services. Our financial position remains strong, and we remain committed to our targeted annual distribution growth rate, which we will continue to balance with leverage reduction, increasing equity returns, and maintaining sufficient cash flows to pursue growth opportunities.

Yeah, well it's a.

Capital allocation is real consistent with what we've been saying for a while in other words, we're going to continue to focus on the balance sheet and it's a great place to be issue as you start approaching the low end of our 4% to four five times.

Leverage targets. So I think when you continue to look out and you look at all of these these growth projects you look at the distribution growth that we're looking at.

Older buyback clearly remains.

As a option that we will look at Youre, probably going to look at being at the very the very low end of that range, if not if not a three handle on it.

The upper three before you could start seeing.

Opportunistically starting to buy back units, but that's the way that you should probably look at that.

Thomas Long: This concludes our prepared remarks. Operator, please open the line up for our first question. Thank you.

Got it that's helpful. Thanks, and then just wanted to I guess shift gears, a little bit towards the Permian just wondering if you can provide us.

Operator: Now, I'll begin the question in the intercession. To ask a question, you may press star than one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. To draw your question, please press star than two. In the best interest of time, we ask you to limit yourself to one question and one follow-up. This time will pause momentarily to assemble the roster.

So I think you touched on a bit in your prepared remarks as far as the growth opportunities there, but just wondering how you see that I guess.

Scaling over time, particularly as it relates to the NGL business and opportunities along that value chain. It seemed like the NGL and products business had a quite a nice step up this quarter and just wondering if you could highlight a bit more of what was happening there.

Jeremy Tonet: First question will be from Germany.

Thomas Long: Oh, J.P. Morgan, please go ahead. Hi, good afternoon. Hey, German. Just wanted to start off, if I could, you know, if you could just provide a high level thoughts for us as the platform sits now after a number of acquisitions and projects. What type of organic growth, you know, level DC and Nate in your business? What type of ebit of growth for your business DC? And also at the same time, I guess, how does this impact your capital allocation philosophy?

Yes, Jeremy this is mackie.

An exciting area you look at the consolidation that's going on upstream a lot of that of course is around the bigger deals in the Permian basin and as you know most on this call nobody is better positioned to capitalize that an internal transfer from every standpoint from gathering processing NGL takeaway and Interstate pipeline.

Take light crude takeaway and so it all kind of begins upstream with our G&P group.

And our NGL team working.

Thomas Long: I think there's somewhat newer slide in the deck there that may be alludes to buybacks, potential there, or distribution increases as well. So just wondering if you could update us on these fronts. Yeah, for sure, German. Good afternoon to you. Listen, we put out the guidance of that two to three billion dollars a year and we still have, you know, at least the mid-teen returns or high-key returns. So you can kind of see the growth rate from there.

Purchase not only those barrels from our affiliate, but also barrels from others.

Out net base, and then were couldnt be more excited and well positioned to meet the growth out there.

Steve.

Our partnership revenue stream.

You take all that downstream and then ultimately <unk>.

<unk>.

A lot of it's unfortunate in our export.

<unk> now so what an incredible area of the world.

We've heavily invested in and we see it paying off for many years ago.

Thomas Long: We're going to stay with that three to five percent growth rate on the distributions. At this time, clearly we talk about that at every single board meeting. So that's kind of the math. I think on the growth that you can see now. Remember, we still have the kind of that 85, 15%, 85%, 15% fixed versus floating. Now it's moved into more of 90, 10 just because the commodity prices are lower. So that that scales around based upon where those prices are from that standpoint.

And if I could just follow up real quick on that I guess on the other side of the NGL equation just how much.

Mandy see materializing, how that impacts pricing for Ngls do you see kind of the LPG is continuing to price to export or just any broader thoughts on NGL supply demand dynamics and impact on NGL pricing.

It's hard to over exaggerate, the ethane and more importantly, the LPG growth.

Assets cannot be built quick enough in the U S to meet the international demand or buying those battles PVH as theyre being built.

In Asia, especially in China.

Thomas Long: So when you factor all that in and then all the other optimization opportunities that we will definitely jump on when those opportunities present themselves. I think you can kind of look at that type of growth rate.

Ethane crackers that are being built so you really can't build quick enough.

Prudent we've announced our flexible project, it's a flexible projected so under budget on track.

Thomas Long: But I will say that we're going to stay with our normal schedule, meaning that with the fourth quarter earnings results, we will update the 2024[inaudible] and so forth. And the second part, Jeremy, did you want to just talk about the, you know, hold it by back, was that the second part of your question? Yeah, overall capital allocation, I guess, and thoughts in light of what you talked about for organic opportunities. Yeah, well, it's the capital allocation is real consistent with what we've been saying for a while that we're going to continue to focus on the balance sheet, and it's a great place to be, as you, as you start approaching the low end of our four to four and a half times leverage targets.

And have that in service by the third quarter of 25 close to fully sell on that out and we're analyzing another expansion it would be a much less expensive expansion and a much less cost per barrel to expand more so we're going to continue to make sure that all of the gas that we're gathering processing that way.

Have a home for all of those liquids. So we're looking ahead and we see significant growth in our NGL business, especially our export business both on the Gulf Coast and at Marcus Hook up once again for many years ago.

Got it makes sense seems to certainly build momentum for you.

Panama initiatives there. Thank you for the color I'll leave it there.

Thank you next question will be from Spiro Donald's all of Citi. Please go ahead.

Thomas Long: So I think when you continue to look out and you look at all these, these growth projects, you look at the distribution growth that we're looking at that the, you know, older buyback clearly remains as a option that we'll look at. You're probably going to look at being at the, you know, the very, the very low end of that range, if not a, if not a three handle on it, you know, the upper three before you could start seeing opportunistically, starting to buyback units, but that's the way that you should probably look at that. Got it. That's that's helpful there. Thanks.

Thanks, operator, good morning.

Sorry afternoon, guys just want to go back to one of Jeremy's questions actually and Tom.

Fully respect that youre not <unk>.

To provide 24 guidance, yet, but maybe just looking at the S. Four filing for Crestwood as we look to 2024.

No, it's not guidance, but some of those pro forma numbers seem to indicate you guys, maybe approaching $15 billion in EBIT next year on a combined basis, and so pretty meaningful step up in 2023. So just wondering qualitatively or however, you see fit maybe help us bridge from 2023 to those numbers and what parts of the business could be driving that upside.

John Mackay: And then just want to, I guess, shift gears a little bit towards the Permian. Just wondering if you could provide us. So I think you touched on a bit, and you prepared to march as far as growth opportunities there, but just wondering how you see that, I guess, scaling over time, particularly as it relates to the NGL business and opportunities along that value chain, seemed like the NGL and products business had quite a nice step up this quarter, and just wondering if you could highlight a bit more of what was happening there.

<unk>.

Yes, no listen it's a it's great to be talking about a number that has a 15 and allow it so let's let's start with that.

When you when.

When you look at that as four.

Remember that those were estimates we take our estimates very seriously.

When we when we file these things obviously.

And we're still in the process.

Yep.

John Mackay: Yeah, Jeremy, this is Mackie. What an exciting area you look at the consolidation that's going on upstream. A lot of that, of course, is around the bigger deals in the Permian basin. And as you know, and most on this call, nobody's better positioned to capitalize that and enter the transfer from every standpoint, from gathering, processing, NGL takeaway, and try interstate pipeline takeaway, group takeaway. And so it all kind of begins upstream with our GMP group, and our NGL team working to purchase not only those barrels from our affiliate, but also barrels from others out in that basin.

2020 for budget numbers et cetera, which I'll go into the guidance and that's the reason, we will always wait until that fourth quarter.

To come out with the very best numbers that we can but.

Listens spiral we sure we sure hope we hit these numbers.

It would be great. Even if we came out with something more but let us let us get through that before we put out any type of official guidance on that we're so excited about everything we're seeing at this stage with closing on the transaction on Friday, it's going to give us now the opportunity to even start digging deeper.

John Mackay: And we couldn't be more excited and well positioned to meet the growth out there. And it kind of feeds into our entire partnership revenue stream. When you take all that downstream, and ultimately, for our market and a lot of it, we're sitting our export markets now. So what an incredible area of the world that we've heavily invested in, and we see a panel for many years now. And if I could just follow up real quick on that, I guess on the other side of the NGL equation, just how much demand you see materializing, how the impact pricing for NGL is, you see kind of the LPG is continuing to price to export, or just any broader thoughts on NGL supply demand dynamics and impact on NGL pricing.

Into into the other synergies that we didn't bake in any of the estimates.

Especially the commercial synergies so let us get get through the close on Friday, and we're going to be very excited to be able to.

Talk about what the 2004 numbers should look like but yeah.

Right place debate.

Yep.

Yep.

Earnings numbers this high so.

Yes, no no.

Fair enough and we'll do our best to stay patient one.

Quick follow up once again going back to capital return just as we think about the distribution growth or on the sort of nice cadence now that that's become predictable and you talked about the 3% to 5% range I guess I'm just curious what would you need to see to flex towards the higher end of that range is that a function of getting leverage lower or is it something else, we're really focused on.

John Mackay: You know, it's hard to over exaggerate the ethane and more importantly, the LPG growth. Assets cannot be built quick enough in the U.S, to meet the international demand, or by knows about all the PDHs, they're being built in Asia, especially in China. There's a lot of ethnic crackers that are being built, so you really can't build quick enough, but we're very prudent. We've announced our flexible project. It's a flexible project. It's under budget on track.

Well.

The leverage.

Within our targets, so I wouldn't want to necessarily guide you towards that that $4 to $4. Five you can already see that we got the one upgrade.

From S&P like we mentioned and the other two have us on a positive outlook and we're going to continue to continue to work with them to to get those up to that.

John Mackay: We have that in service by the third quarter of 25. We're close to fully selling that out. And we're analyzing another expansion. It would be a much less expensive expansion and a much less cost per barrel to expand more. So we're going to continue to make sure that all of the gaps that we're gathering and processing that we have a home for all those liquids. So we're looking ahead and we see significant growth in our NGL business, especially our export business both on the Gulf Coast and at Marcus Hook, once again for many years come. God, it makes sense. It seems to certainly build momentum for your Panama initiative there. Thank you for the color.

<unk>.

Kind of that triple the triple B level so.

Jeremy Tonet: I'll leave it there. Thank you.

Sparrow Dounis: Next question will be from Sparrow Donuts.

I think the other component we always look at is we're always looking out at the.

At the coverage ratio, making.

Making sure that we're staying.

And a good solid range there, but as much as any we're also looking at a lot of the growth opportunities. So the usual capital allocation debates that you have.

Any company has here and that's what we're going to going to evaluate but it's not a matter of looking at any one single point in time. It is a matter of looking out.

With the best Crystal ball, we have over there.

The next 345 years, so we try to make make decisions here.

We stick with without.

Sparrow Dounis: Oh, city, please go ahead. Nice operator. I'm sorry, afternoon guys.

Kind of jumped jumping up and down or moving around with them.

Thomas Long: Just want to go back to one of Jeremy's questions, actually, and Tom fully respect that you're not in position to provide 24 guidance yet, but maybe just looking at the S4 filing press would as we look at 2024. I know it's not guidance, but some of those performance numbers seem to indicate you guys would be approaching. $15 billion and even a next year in a combined basis. And so pretty meaningful step up from 2023.

Got it I'll leave it there thanks for the time.

Got it thank you.

Thank you a question from Michael Blum Wells Fargo. Please go ahead.

Hey, Thanks, good afternoon, everyone.

I wanted to ask on Capex.

Both in terms of this year, just what exactly is driving the.

Thomas Long: So just wondering qualitatively or however you see fit. Maybe help us bridge from 2023 to those S4 numbers and what part of the business could be driving that upside. Yeah, no, listen, it's it's great to be talking about a number that has a 15 an allowance. So let's let's start with that. When you when you look at that S4, remember that those were estimates we take our estimates very seriously. When when we when we file these things, obviously, and we are still in the process of finishing up, you know, the 2024 budget numbers, et cetera, which all go into the guidance.

The reduction there a slight reduction and then for next year, if I recall correctly your last update.

I noticed that your long term run rate you think is $2 billion to $3 billion, but I think it would be.

The last update you said you don't even have $2 billion of committed projects yet for 24. So I just wanted to get the latest update on where that stands as well.

Yeah Michael.

Good afternoon.

As far as the first part of your question I would say that we continue to.

Work on some very very good projects some of thats going to be up.

Nevertheless, the timing, but even with that I want to be careful using that word because it doesn't mean that 2020 fours.

Thomas Long: And that's the reason we'll always wait till that fourth quarter to come out with the very best numbers that we can. But listen, Merrill, we sure, you know, we sure hope we we hit these numbers. We, you know, it would be great even if we came out with, you know, with something more. But let us let us get through that before we put out any type of official guidance on that. We're so excited about everything we're seeing at this at this stage, you know, with closing on the transaction on Friday.

Necessarily going to go up.

That blend straight into the second part of your question. If you really kind of look at that $2 billion to $3 billion you could use $750 million a year that are just kind of those call.

Growth capital projects that.

Well connects all the other.

Great projects, we have that are good high returning projects that.

Thomas Long: It's going to give us now the opportunity even start digging deeper into into the other synergies that we didn't make in the any of the estimates, especially the commercial synergies. So let us get, you know, get through the close on Friday, and we're going to be very excited to be able to, you know, talk about what the 24 numbers should look like. But yeah, what, what a great place to be to be up to a, you know, be up the earnings numbers this high, so. Yeah, no, fair enough and we'll do our best to stay patient.

Helped with the utilization optimization of our system overall, especially with the M&A that we've been so successful on a lot of this projects.

Fall kind of in that category of that of that first $750 million.

I will say that with some of the stuff that we've talked about I know mark you've talked about here is that.

Those are the other projects that arent necessarily to F. D. So we can't say that we've got all of that field in right now and by any means the other the other $2 billion or so from that standpoint, we're continuing to work on them I think we feel good about a lot of the projects. So it's.

Thomas Long: One quick follow up once again, going back to capital return, just as we think about the distribution growth here on this sort of nice cadence now that's become predictable when you talk about the three to five percent range. I guess I'm just curious, what would you need to see to flex towards the higher end of that range? Is that a function of getting leverage lower or is it something else really focused on?

Once again, it's probably $750 million and then we will be talking more about the other projects as as.

As we get them to.

The one that we did highlight in the prepared remarks of course was flex for so.

Thomas Long: Well, the leverage is within our target, so I wouldn't want to necessarily guide you toward that, you know, that four to four and a half. You can already see that we got the one upgrade from S&D, like we mentioned. And the other two have us on a positive outlook, and we're going to continue to work with them to get those up to that kind of that triple B level. So, I think the other component we always look at is we're always looking out at the coverage ratio, making sure that, you know, we're staying, you know, in a good solid range there, but as much as any, we're also looking at a lot of the growth opportunities.

Got it okay that helps thank you and then.

It sounds like.

Pretty encouraging update on Lake Charles So I guess, what I'm, what I'm wondering is what would be the earliest timeframe from your perspective, where you think lake Charles could actually get to RFID and service.

Hey, Matt this is mackie.

Question in that we've got a lot of balls in the air we've covered it pretty well with Tom's remarks, we're sitting in a really good position.

Really need to get the deal to extend the permit we think they will we've got as we've said a lot of folks involved behind the scenes trying to make that happen, including other countries. Other businesses in other countries, but we're just keeping our head down pushing we don't really have a lot of estimates.

Thomas Long: So, you know, the usual capital allocation debates that you have, you know, any company has here, and that's what we're going to evaluate. But it's not a matter of looking at any one single point in time. It is a matter of looking out, you know, with the best crystal ball we have over the, you know, the next three, four, five years. So, we try to make, make decisions here that, you know, we stick with without, you know, kind of jumping up and down or moving around with them. Got it. I'll leave it there, Sam. Thanks for the time. Yeah, thank you. Thank you.

Peter.

We're hopeful that we'll have something to do.

Sometime kind of mid first quarter were pushed into the other others are also pushing them to maybe do that sooner, but we don't know if its a regulatory agency that we're working closely with and hope to make that happen sooner than later, but at the meantime, Tom Mason and his team are working hard back over there now trying.

Trying to finalize a lot of these.

Contracts and agreements around equity as well as new LNG off takers and so.

Michael Blum: That question B from Michael Bloom of Wells Fargo, please go ahead. Hey, thanks. Good afternoon, everyone.

It's hard to kind of predict that but.

Everything went exceptionally well second quarter could be a possibility, but we'll see how things go over the next.

Michael Blum: I wanted to ask on CAPEX, both in terms of this year, just what exactly is driving the, the reduction there, slight reduction, and then for next year, if I recall correctly, your last update, I know you say your long-term run rate, you think is two to three billion, but I think at least as a last update, you said you don't even have two billion of committed projects yet for 24. So, just wanted to get the latest update on where that stands as well.

Three or four months.

Great. Thank you.

Thank you next question will be from Brian Reynolds UBS. Please go ahead.

Hi, Good morning, everyone, maybe to follow up on some capex questions as it relates to the Permian natural gas egress. It seems like we could be.

<unk> seen the last brownfield expansion get contracted here over the near future, but beyond that it seems like we need a larger pipe, which or youre still exist out there. So kind of just as it relates to the warrior project at this juncture has the scope or size of the project changed or evolved since you started marketing the project a few years ago, just to perhaps to meet specific customer.

Michael Blum: Yeah, Michael, good afternoon. You know, as far as the first part of your question, I would say that we continue to work on some very, very good projects. Some of that's going to be a, maybe a bit of timing, but even with that, I want to be careful using that word because it doesn't mean that, you know, 2024's, you know, necessarily going to, you know, go up. But that blends straight into the second part of your question.

Our customer needs and to get the project that ultimately thanks.

Yes, Brian This is Matthew again, we actually started early aggressively marketing. This first part of this year, but.

We are pushing hard as we've mentioned we've got about 25% already signed up we're working on another several other <unk>.

Michael Blum: If you really kind of look at that two to three billion, you could use $750 million a year that are just kind of those growth capital projects that, you know, well-connects all the other great projects we have that are good, high-returning projects that help with the utilization, optimization of our system overall, especially with the M&A that we've been so successful on. A lot of this projects fall kind of in that category of that first 750 million.

<unk> that would bring us to about 60 or 65%, but we're going to be pretty careful on this and we're very comfortable like we always are going to be prudent we're not going to move forward with that until we have a substantial amount of that capacity is sold out.

And it also it will feed into not only markets that were already connected to with our intrastate network, but also we'll have a lot of of kind of momentum.

Some of these other LNG products.

Projects get to <unk>.

Michael Blum: I will say that with some of the stuff that we've talked about, I know Mackie's talked about here, is that those are the other projects that aren't necessarily to FID. So we can't say that we've got all of that filled in right now by any means, the other, you know, the other two billion or so from that standpoint, but we're continuing to work on them. I think we feel good about a lot of the projects. So once again, it's probably 750 million and then we'll be talking more about the other projects as we get them to FID, for, so. Got it. Okay, that helps. Thank you.

So we're kind of like a lot of these big projects working on they're just taking time, we see spreads other than a few.

Days or weeks, where it was that a little bit the spreads are very tight theres not a lot of pain right now at Walmart for the most part we think that's going to get really difficult as we go into 'twenty four until the next pipeline built. So we do think we'll pick up more momentum and we're going to push hard and kind of similar to my comments around LNG, we hope to maybe.

D on warrior somehow.

Sometime maybe in the second quarter of next year.

Great Super helpful and maybe you could just touch on the M&A for the year with Crestwood and Lotus coming into the fold here can you just maybe talk about how some of these acquisitions of maybe perhaps helped defer some capital I know Crestwood has some Permian processing capacity and I think you alluded to in the prepared remarks that you know.

Mackay: And then, you know, it sounds like a pretty hurricane update on Lake Charles. So, I guess what I'm wondering is, what would be the earliest time frame from your perspective where you think Lake Charles could actually get to FID and then in service? Hey, my list is Mackay. You know, tough question in that we've got a lot of balls in the air. We covered it pretty well with Tom's remarks. We're sitting in a really good position.

Some of that excess processing capacity might be able to defer a processing plant a little bit so.

How should we think about processing capacity for $24 25, do we need to see another newbuild come into next year or could we see some capital get deferred into.

Into the following year as it relates to maybe the crude side Lotus or crestwood on the NGL processing side. Thanks.

Yeah. This is mackie again.

Mackay: We really need to get the DOE to extend the permit. We think they will. We've got, as we said, a lot of folks involved behind the scenes trying to make that happen, including other countries, other businesses, and other countries. But we're just keeping our head down pushing. We don't really have a lot of hasty much. We're hopeful that we'll have something from the DOE by some time kind of mid first quarter where pushing the other others are also pushing in to maybe do that sooner, but we don't know.

As you can understand we haven't been able to really dig in to the Crestwood asset yet we don't close officially till Friday, but from a high level, we certainly recognize.

Some capacity is available really in all regions, both in the Bakken and the powder as well as in the Delaware. We are constantly evaluating when is the next time to kick off the next cryo to make sure we meet our obligations as we sign up producers, but clearly we believe that this is going to give us some time to defer that decision we were thinking we would.

Mackay: It's a regulatory agency that we're working closely with, and hoping to make that happen sooner than later. But at the meantime, Tom Mason is team of working hard back over there now, trying to finalize a lot of these contracts and agreements around equity, as well as new LNG off-takers. So it's hard to kind of predict that, but everything would exceptionally well. The second quarter could be a possibility, but we'll see how things go in the next three to four months. Great. Thank you.

We expect that decision to kind of the first quarter of next year, whether we are going to start kick off another plant, that's probably going to push it back at least three to six months. So we will see kind of as we fully are able to analyze and look at these assets and see how they logistically blend in but.

We're pretty confident that a minimum that's going to delay.

A new cryo at least some period of time.

Great. Thanks.

I appreciate it I'll leave it there and then enjoy the rest of your afternoon. Thanks.

Thank you.

Thank you next question will be from Julian Salisbury of Bernstein. Please go ahead.

Brian Reynolds: Next question will be from Brian Reynolds. UBS, please go in. Hi, good morning, everyone.

Hi, there is a lot of new NGL pipes coming to the Permian in 2025, and I think it's actually the only company not doing an expansion.

Brian Reynolds: Maybe to fall upon some capex questions as it relates to the Permian natural gas egress, seems like we could be seeing the last brown field expansion get contracted here over the near future. But beyond that, it seems like we need a larger pipe of which warrior still exists out there. So kind of as it relates to the warrior projects at this juncture, it has the scope or size of the project changed or evolved since you started marketing the project a few years ago, just to perhaps meet specific customer needs and to get the project that ultimately FID.

<unk> positioned our lone star in West, Texas Gateway gateway to whether that contractual duration wise and does it drive more interest in inorganic opportunities in the basin.

Yes. This is mackie again.

We have noticed that there is lot of a lot of topline as announced here even the last couple of days, but what we try to do as a partnership is not really worried about what others are announcing what others are building, we kind of focus on what do we need to be able to accommodate our customers and to meet the demand growth of those that we're working with and we are very.

Brian Reynolds: Thanks. Yeah, Brian, this is Matthew again. We actually started really aggressively marketing this first part of this year, but we are pushing hard. If we've mentioned we've got about 25 percent already signed up. We're working on another couple of several other shippers that would bring us to about 60 or 65 percent, but we're going to be pretty careful on this. We're very careful. Like we always are, we're going to be prudent.

Well positioned right now we move about one third of every barrel of NGL. That's produced in the Permian Basin, we have the ability to move.

Plus more barrels we can add pumps and move.

Probably in the neighborhood of 250000 more barrels. So we've got some kind of dry powder or dry capacity available capacity, we will be able to expand on so I think any kind of considerations or determinations from us probably a year or longer way on a even contemplating another pipeline where we are.

Brian Reynolds: We're not going to move forward with FID until we have a substantial amount of that capacity sold out. And it also, it will speed into not only markets that we're already connected to with our interest state network, but also will have a lot of kind of momentum if some of these other LNG projects get FID. So we're kind of like a lot of these big projects working on. They're we see spreads other than a few days or weeks where it boils out a little bit.

Physician pretty well to.

To move everything we found that in addition to more growth that we expect from R. R.

Our G&P business.

Great that makes sense and to be clear.

Im certainly not pushing 82 ticks mainland.

Brian Reynolds: The spreads are very tight. There's not a lot of paint. Right now out wallhawk to the most part, we think that's going to get really difficult as we go into 24 until the next pipeline is built. So we do think we'll pick up more momentum and we're going to push hard and kind of similar to my comments around LNG. We hope to maybe get to FID on warrior sometime maybe in the second quarter of next year. Great, super helpful.

That's super helpful.

<unk>.

For your Nederland NGL export expansion.

I know that you are talking to a lot of ethane counterparties, but it seems like you haven't quite.

The contract is the right way to think about it that given how tight LPG export capacity is it will probably start mostly as LPG and then as your ethane contracts eventually get finding again greater shareholder.

Dan.

Mackay: And maybe you just touch on the M&A for the year, you know, with Crestwood and Lotus coming into the fold here. Can you just maybe talk about how some of these acquisitions of maybe perhaps help defer some capital? I know Crestwood has some permeant processing capacity, and I think you alluded to, and the preparatory marks that, you know, some of that excess processing capacity might be able to defer a processing plan a little bit.

Yeah, I think I would answer it this way we are constant.

And negotiations across the board, we have probably at least 140000 barrels of ethane customers that we're negotiating with right now.

Of which some preferred markets on the Gulf Coast, we will have the ability to kind of swing the volume between either one.

Mackay: So, you know, how should we think about processing capacity for 24 or 25? Do we need to, you know, see another new build coming in next year, or could we see, you know, some capital, get deferred into the fall and year as it relates to maybe the crude side lotus or Crestwood on the NGO and processing side. Thanks. Yeah, this is Mackay again. Yeah, we, as you can understand, we haven't been able to really dig in to the Crestwood asset yet.

But clearly LPG is also in high demand and so.

We are.

Yes.

Not a shortage of international customers and we're very excited as we have said earlier that we're not only very well positioned to meet that but also very well positioned to meet the growth two years now and beyond so we do think space is going to get pretty tight as you can see by our results. We're moving more volume we're hitting records almost every.

Mackay: We don't close, officially told Friday, but from a high level, we certainly recognize some capacity. It's available really in all regions, both in the back end and the powder as well as in the Delaware. We are constantly evaluating when is the next time to kick off the next cryo to make sure we meet our obligations as we sign up producers. But clearly, we believe that this is going to give us some time to defer that decision.

The aspect of our NGL business, including our export and we're seeing the margins. What we think we will see that over the next couple of years and then we will have new contracts lined up to come online when our flex board. So we're pretty excited.

Mackay: We were thinking we're going to expect that decision kind of first quarter next year whether we're going to start kick off another plant that's probably going to push it back at least three to six months. So we'll see kind of as we fully are able to analyze and look at these assets and see how they would justically blend in. But we're pretty confident that of minimalists could delay building a new cryo at least some period of time. Great. Thanks. Appreciate it. I'll leave it there and enjoy the rest of your afternoon. Thanks. Thank you.

We got in this.

Export business, a little later than most of our competitors certainly the our biggest competitor and we've kind of.

<unk> gone from nowhere to the leading exporter in the world and we're proud of that proud of our commercial team has done all these deals proud of our E&C.

E&C team, who build these assets so quickly out of our operating team led by Greg <unk>, who runs the system efficiently and reliably and more importantly safely. So we are very proud of our team and what we've done over the last five or six years to kind of start from nowhere to grow to where we're at today, we have such.

Jean Salisbury: That question will be from Juneine Southbury or Bernstein. Please go ahead.

A bright future on the assets, we are building now and the contracts that we haven't.

Mackay: Hi. There's a lot of new NGO pipes coming to the Permian in 2025. I think ET is actually the only main company not doing an expansion. How all positioned are low in star and west Texas get gateway to whether that can track actual duration wise and does it drive more interest in inorganic opportunities in the basin. Yeah, this is Mackie again. We have noticed that there's a lot of a lot of top lines announced here even the last couple of days.

Great I'll leave it there thank you.

Thank you next question will be from John <unk> of Goldman Sachs. Please go ahead.

Hey, everyone. Thanks for the time.

Maybe just taking that last piece I mean talked about exports probably being.

The tightest part of the value chain for you right now or at least that's what we're picking up on but I guess, if youre looking at across the kind of broader ETP and ETE combined Crestwood footprint right now where else are you seeing relative tightness and <unk>.

Mackay: But what we try to do as a partnership is not really worried about what others are announcing or what others are building. We kind of focus on what do we need to build to accommodate our customers and to meet the demand growth of those that we're working with. And we are very well positioned right now. We move about a third of every barrel of NGL that's produced in the Permian Basin. We have the ability to move 100 plus thousand more barrels.

Mackay: We can add pumps and move probably the neighborhood of 250 thousand more barrels. So we've got some kind of dry powder or dry capacity available capacity that we'll be able to expand on. So I think any kind of considerations or determinations from us for probably a year or a longer way only in even contemplating another pipeline. We're positioned pretty well to move everything we signed up in addition to more growth that we expect from our G&P business.

I'll call them on the market, either you guys or others to add incremental capacity.

The Haynesville is a moron processing in the Permian just curious your thoughts overall, if we're lucky maybe beyond export.

Yes, let me just hit every region real quickly kind of address I hope your question.

So you start in the northeast, we're positioned incredibly well on any kind of.

Growth up there, whether it's ethane or LPG, we are kind of the only outlet with our American franchise. So we call. It dry powder available capacity whatever you want to call. It we are ready to capture any kind of growth up there and then as you come further south we mentioned that we've got the ability to grow our transport volumes from the Permian basin fairly.

Were expanding our flex board.

Currently significantly and we haven't really hit on this on this call, but there is a lot of gas in north, Louisiana, Yes, it slowed down a little bit with <unk>.

Gas prices.

Last two or three months, we think is going to pick back up as prices have improved and will continue to improve there is enormous reserves there.

Mackay: Great, that makes sense. And for your Newterland NGL export expansion, I know that you're talking to a lot of ethane counterparties, but it seems like you haven't quite assigned the contract yet. Is the right way to think about it that given how tight LPG export capacity is, it'll probably start mostly as LPG and then as your ethane contract eventually gets signed and kicked in, a greater share will become ethane. Yeah, yeah, I think I would answer it this way.

Or that we have multiple intrastate and interstate pipelines that feed into east, Texas, and North, Louisiana, and so we're very optimistic on our Gulf run expansion.

Can add compression and had a bcf a day, but.

We think it's much more likely that we will sign up enough to loop, our existing Gulf run zone, two pipeline, especially aligned with <unk>.

Mackay: We are in constant dialogue and negotiations across the board. We have probably at least 140,000 barrels of ethane customer that we're negotiating with right now, of which some prefer markets, some of the gold coast will have the ability to kind of swing the volume between either one, but clearly LPG is also in high demand. And so, there's not a shortage of international customers and we're very excited as we've said earlier that we're not only very well positioned to meet that, but also very well positioned to meet the growth two years now and beyond.

We get that.

But we see that as a certainly a a huge growth area for us on a large pipeline projects somewhere in the future along with what we've already talked about our warrior.

Project.

In other areas, so depending on where the area is where either situated very well to grow with next no capital or we have such an excellent position to aggregate volumes to support a project like golf and expansion project.

All right that's clear thank you maybe just.

Following up if we think about 'twenty three guidance overall can you just maybe a quick breakdown of how much of the step up was crestwood versus kind of underlying.

Mackay: So we do think space is going to get pretty tight. As you can see by results, we're moving more volume, we're hitting records almost every aspect of our NGO business, including our export, and we're seeing the margins wide. And we think we'll see that over the next couple of years, and then we'll have new contracts lined up to come online when our flexboard. So we're pretty excited. We got in this export business a little later than most of our competitors, certainly our biggest competitor.

This outperformance and maybe if you're touching on the Gulf run contributions.

Third quarter Interstate was most particularly strong.

Gas overall, its pretty strong, particularly.

Particularly for kind of a shoulder season is this a clean new run rate from here are there any kind of one offs in there.

Yes, no listen.

I think the best way to look the best way to look at that as far as the guidance go.

Mackay: We've gone from nowhere to the leading exporter in the world. And we're proud of that. We're proud of our commercial team who's done all these deals, proud of our ENC team who build these assets so quickly, proud of our operating team led by Greg Muckleslein who runs these business efficiently and reliably and more importantly, safely. So we are very proud of our team and what we've done over the last five or six years to kind of start from nowhere and grow to where we're at today. And we have such a bright future on the assets that we are building now in the contracts that we have in the future.

And the split.

Between the two is the.

The guidance, we had coming into this quarter that we had provided in the second quarter was 13, 1% to $13 4 billion as you know.

As you really looked at the new numbers, we gave you can probably say that.

The existing business was right at the top end of that of that range.

And the rest of it.

With the Crestwood, but at Crestwood would be net of.

Transaction cost.

So that's what we're currently expecting right now still maybe some moving pieces as we get into the into the fourth quarter, but we feel pretty good about the $13 five to $13 six.

Mackay: Great. I'll leave it there. Thank you. Next question will be from John McKay. Oh, golden tax, please go ahead. Hey everyone, thanks for the time. Maybe just taking that last piece, I mean talk about exports probably being the tightest part of the value chain for you right now, at least that's what kind of ET combined crest with footprint right now. Where else are you seeing relative tightness and a call on the market, you guys or others to add in parental capacity?

Okay, that's clear I appreciate it.

Thank you next question will be from Neel Mitra with Bank of America. Please go ahead.

Yes.

Hi, good afternoon, Thanks for taking my question.

Firstly.

It seems that Cushing inventories are extremely low right now so wanted to understand how your centurion flows in your overall lotos acquisition.

Mackay: Is it the Haynesville? Is it more on processing in the Permian? Just curious your thoughts overall if we're looking maybe beyond export? Yeah, let me just hit every region real quickly kind of address. I hope you're questioned in the so you start in the Northeast were positioned incredibly well on any kind of product growth up there, whether it's ethane or LPG, we are kind of the only outlet with our American franchise.

Was able to materialize on this dynamic in the third quarter.

Mackay: So we call it dry powder or available capacity, whatever you want to call it, we are ready to capture any kind of growth up there. And then as you come further south, we mentioned that we've got the ability to grow our transport volumes from the Permian fairly significantly. We're expanding our flex fork fairly significantly and we haven't been able to hit on this on this call, but there's a lot of gas in North Louisiana.

You bet, Matthew again, yet to do a shout out to Chris <unk> and his team and what they've done over the last two years has just been phenomenal as you look at.

Enable and kind of what it's done over the last year and a half and the synergies that we found and the same with works.

And same thing we continue to look at.

Significant commercial synergies around blending.

As we have made an announcement we are looping pipe. So that we can move more volume to benefit when the spread blows out between Midland and Cushing. So we're slowly positioning ourselves to become a much bigger player to be able to move volumes between the Cushing and Midland areas as well as of course to the Gulf Coast are Houston and Nederland terminal.

Mackay: Yes, it slowed down a little bit with gas prices. Here last could be much. We think it's going to pick back up as prices have improved and we'll continue to improve. There's enormous reserves there, but on top of that we have multiple entrustated and interstate pipelines that feed into East Texas and North Louisiana. And so we're very optimistic on our Gulf Run expansion. We can add compression and add a DCF today, but we think it's much more likely that we will find up enough to loop our existing Gulf Run zone two pipeline, especially aligned with We get that FID, but we see that as certainly a huge growth area for us on a large pipeline project somewhere in the future, along with what we've already talked about our warrior project and other areas.

And I think likewise, we're going to see with the Crestwood a lot of the same.

Synergies so we're.

Pretty excited about our ability to buy these assets at the.

And the values, we are able to buy at their great Standalone companies and assets and then once we blend them in like your question with Lotus, We're finding significant synergies that we did recognize as we're pursuing these acquisitions.

Got it and then my second question you've had a lot of success building.

For me into Mexico, natural gas pipelines and it seems like the Utilizations on Comanche trail in Trans Pecos are picking up and.

Mackay: So, you know, depending on where the area is, we're either situated very well to grow with next no capital or we have such an excellent position to aggregate volume to support a project like Gulf Run, an expansion project like Gulf Run. Yeah, that's clear. Thank you. Maybe just following up. I think about 23 guidance overall. Maybe a quick breakdown of how much of the step up was crestwood versus kind of underlying, you know, business outperformance.

Do you have a competitor looking to build a pipeline to the border as well.

With some of the West coast LNG demand and increased.

Industrial demand and less Mexico are you seeing any appetite.

For pipeline expansion down at the border or possibly participating.

In a new project.

Move gas to Mexico.

This is mackie again.

No. We're not we're not pursuing anything right now as you mentioned, we are ramping up our two pipelines out in west, Texas that deliver to Mexico, we still have quite a bit of capacity to fill up to fully utilize those pipelines. We have some pipelines in south Texas that we do.

Mackay: And maybe if you're touching on the Gulf Run contributions, you know, third quarter interstate was most particularly strong. I think gas overall is pretty strong, particularly for kind of a shoulder season. Is it a clean new run rate from here? Are there any kind of one-offs in there? Thanks. Yeah, no, listen, I think the best way to look, the best way to look at that as far as the guidance goes in the split between the, between the two is, you know, the guidance we had coming into this quarter that we provided in the second quarter was 13.1 to 13.4 billion.

Deliver either directly into Mexico or into other larger diameter pipelines, but no. We don't have anything on the drawing board. Yes. We are aware of some proposed pipelines out of the water and waste.

Heading west.

But we are involved in any of those projects at this time.

Okay, great. Thank you very much.

Mackay: And as you know, as you really looked at the new numbers we gave, you can probably say that, you know, the existing business was right at the top end of that range. And the rest of it would be crestwood, but it would be net transaction cost. So that's what we're currently expecting right now. Still, you know, maybe some moving pieces as we get into the, into the fourth quarter, but we feel pretty good about the 13.5 to 13.6. Let's go ahead and appreciate it. Thank you.

Thanks.

Thank you no question will come from Gabe Moreen Matsuo. Please go ahead.

First sort of the uplift in pricing on your Interstate gas pipelines and storage it seems like if I'm reading it right.

Maybe accelerating can you just talk about sort of how you feel your position rate case outcomes and to what extent that's.

Still going to be wind at your back going forward into 2024.

Hey, Dave This is Mac and I apologize.

Started here about halfway through your question sorry.

Thomas Long: Next question will be from Neil Mitchell. Oh, Bank of America. Please go ahead. Hi, good afternoon. Thanks for taking my question. Firstly, it seems that pushing inventories are extremely low right now. So wanted to understand how your centurion flows and your overall low to acquisition was able to materialize on this dynamic in the third quarter. Yeah, you bet this is Mackie again. Yeah, to do a shout out to Chris F.D, and his team and what they've done over the last two years has just been phenomenal as you look at.

Okay can you hear me now.

Yes.

Okay, Great I was just going to say to what extent repricing your intrastate gas pipeline and storage capacity is going to be wind wind at your back in 2024. It seems like some of that is accelerating as we progressed through 'twenty three.

Yes years ago. This wasn't fun to talk about it is now when you look at the value for example.

MEP are on Tiger, one golf rounds are even on SaaS, we're seeing growing growing demand on all of those assets teed up yes, I mean, just pick an asset and most of what we're doing right now is either at or close to zero.

Thomas Long: Enable and kind of what it's done last year and a half and the synergies that we found in the same with wax. And what is the same thing we continue to look at significant commercial synergies around blending as we have made an announcement. We are looping pipes so that we can move more volume to benefit when the spread blows out between Midland and Cushing. So we're slowly positioning ourselves to become a much bigger player to be able to move volumes between the Cushing and Midland areas as well as of course to the Gulf Coast to our Houston and Neterland terminal.

The demand is there a lot of the gas throughout this country is trying to find its way to the Gulf coast.

We're very well positioned to benefit from that with all the pipelines just.

Just mentioned and others.

We don't really unlike years past, we might have had some concern with contracts were terminating of what we could do with that available capacity Tiger is a good example.

<unk> was about half empty with spreads down to five or six and that we're running at full.

At much bigger spread so we're pretty excited about any available capacity.

Once it comes out when a contract we think worst case will rollover at similar if not higher rates than we already are at unless we're already a tariff.

Thomas Long: And I think likewise we're going to see with Chris with a lot of, of the same synergy. So we're hurting side of our ability to buy these assets at the values we're able to buy at their great stand-alone companies and assets, and then once we blend them in, like your question with Lotus, we're finding significant synergies that we didn't recognize as we were presuming these acquisitions. Got it. And then my second question, you've had a lot of success building permeant to Mexico, natural gas pipelines, and it seems like the utilizations on Comanche, trail, and Transpacos are picking up, and I have a competitor looking to build a pipeline to the border as well.

Thanks, Greg.

Thank you that concludes our question and answer session.

I will turn the call back over to Mr. Tom long for closing remarks.

Once again, thank all of you for joining US today, we greatly appreciate all your support and we look forward to talking to you in the near future.

Thank you.

The conference today. Thank you for attending you may now disconnect.

Thomas Long: With some of the West Coast LNG demand and increased industrial demand in Let's Mexico, are you seeing any appetite for pipeline expansions down to the border or possibly participating in a new project to move gas to Mexico? Oh, Mr. Mack, you didn't. No, we're not. We're not pursuing anything right now. As you mentioned, though, we are ramping up our two pipelines out West Texas that deliver to Mexico. We still have quite a bit of capacity to fill up to fully utilize those pipelines.

Thomas Long: We have some pipelines to South Texas that we deliver either directly into Mexico or into other larger diameter pipelines, but we don't have anything on the drawing board. Yes, we are aware of some proposed pipelines out of the water area ahead in the West, but we aren't involved in any of those projects this time. Okay, great. Thank you very much. Thank you.

Thomas Long: I have a question.

Thomas Long: I'll come from Gamerin, a bazoo hole. Please go ahead. For us, sort of the uplift in pricing on your interstate gas pipelines and storage, it seems like if I'm reading it right, some of that uplift may be accelerating. You just talk about, sort of, how you fill your position, rate case outcomes aside, and what extent that's still going to be winded to your backs going forward in 2024? Hey, Gabe, this is Mackie and I apologize.

Thomas Long: We started hearing about halfway to your question. Sorry. Okay. Can you hear me now, Mackie? Yes. Okay, great. I was just going to say to what extent repricing your interstate gas pipelines, storage capacity is going to be winded to your backs in 2024. It seems like some of that's accelerating as we progress through 23. Yeah, you know, years ago, this wasn't fun to talk about. It is now. When you look at the value, for example, on the MEP, our own Tiger, our own Gulf Run, or even on sash, we're seeing growing, growing demand on all of those assets.

Thomas Long: I mean, just pick and ask that. And most of what we're doing right now is either at tear or close to tear. The demand is there. A lot of the gas got this country is trying to find its way to Gulf Coast. We're very well positioned to benefit from that with all the pipelines I just mentioned in others. So we don't really, unlike years past, we might have had some concern with contracts for terminating of what we could do with that available past.

Thomas Long: I mean, Tiger's a very example. Me, Tiger was about half empty with spread down the 5 or 6 cents. And now we're running it full at, at much bigger spread. And so we're pretty excited about any available capacity. You know, once it comes out from the contract, we think worst case, we'll roll it over it. Similar, if not higher rates than we already are at, unless we're already at tariff.

Thomas Long: Thanks, Frank. Thank you.

Operator: I conclude to request your answer session.

Thomas Long: I would like to turn the call back over to Mr. Tonet Long for closing remarks. Once again, thank all of you for joining us today. We greatly appreciate all your support, and we look forward to talking to you in the near future. Thank you.

Operator: I conclude the conference today. Thank you for attending. Thank you for joining us today.