Q4 2023 Enterprise Products Partners LP Earnings Call

[music].

Operator: Are you ready? Good day, and thank you for standing by. Welcome to the Q4 2023 Enterprise Products Partners LP earnings conference call. At this time, all participants are in a listen only mode.

Good day and thank you for standing by welcome to the Q4 2023 enterprise products Partners L. P earnings Conference call.

This time, all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to hand the call.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations. Thank you, Josh.

Over to your speaker today, Randy Burkhalter, Vice President of Investor Relations.

John Randy Burkhalter: Thank you Josh.

Randy Burkhalter: Good morning, everyone, and welcome to the Enterprise Products Partners conference call to discuss fourth quarter 23 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises General Partner Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, based on the beliefs of the company as well as assumptions made by and information currently available in Enterprises Management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

John Randy Burkhalter: Everyone and welcome to the Enterprise products Partners conference call to discuss fourth quarter 23 earnings our speakers today will be co chief executive officers of Enterprise's General partner GMT and Randy Fowler.

John Randy Burkhalter: Other members of our senior management team are also in attendance for the call.

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

John Randy Burkhalter: Although management believes that the expectations reflected in such forward looking statements are reasonable it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward looking statements made during this call and with that.

Unknown Executive: Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. And with that, I'll turn it over to Jim. We generated $7.6 billion of distributive cash flow in 2023, providing 1.7 times coverage, and we retain $3.2 billion. We set nine financial records and 13 operating records in 2003. Our 23 operating results included records in NGO Pipeline Transportation. Ethanexport.

John Randy Burkhalter: I'll turn it over to Jim Thank you.

Jim: We generated $7 6 billion.

Jim: Distributable cash flow in 2023.

Jim: Providing one seven times coverage and we retained $3 $2 billion.

Jim: We said non financial records and 13 operating records in 2013.

Jim: Our 23 operating results included records in NGL pipeline transportation.

Jim: Ethane exports.

Unknown Executive: Total MGL Marine Terminal Volumes. NGO Approximation Volume, eBase natural gas process, and crude pipeline and natural gas transportation, barrels of oil equivalent per day. Enterprise transported a record 12.2 million barrels a day in 2023, compared to 11.2 million barrels a day in 2022. During the fourth quarter, we transported 12.7 million barrels a day, compared to 11 and a half million barrels a day in the fourth quarter of 2022. We exported a record 2.3 million barrels a day of liquid hydrocarbon, and that includes everything from crude oil to LPG. Ethane, Refined Products, and Basic Petrochemicals Ethane and Propolis.

Jim: Total NGL Marine term terminal volumes NGL fractionation volumes.

Jim: Based natural gas processing volumes and.

Jim: And crude pipeline and natural gas transportation volumes.

Jim: Barrels of oil equivalent per day.

Jim: Enterprise transported a record $12 2 million barrels a day in 2023.

Jim: Compared to $11 2 million barrels a day in 2022.

Jim: During the fourth quarter, we transported 12 7 million barrels a day.

Jim: Compared to 11, and a half million barrels a day in the fourth quarter.

Jim: 2022.

Jim: We exported a record two 3 million barrels a day.

Jim: Liquid hydrocarbons.

Jim: That includes everything from crude oil to LPG.

Jim: Ethane refined products and basic petrochemicals ethane and propylene.

Unknown Executive: When you look at our exports, it's clear that Enterprise is not a one-trick pony. It is quite remarkable that volumes across all our pipes and facilities increase sequentially each quarter. 2023, supported by the Strong Supply and Demand Fundamentals for Hydrocarbons from the Permian and other basins we serve, integrated with the midstream services that we have, including exports that we just discussed, relative to commodity markets, 2023 was a relatively weak year, especially for natural gas and natural gas liquids. Nonetheless,

Jim: When you look at our exports it's clear.

Jim: That enterprise is not a one trick pony.

Jim: It's quite remarkable that volumes across all of our pipes and facilities increased sequentially each quarter in 2023 supported by the strong strong supply and demand fundamentals for hydrocarbons from the Permian and other basins we serve.

Jim: Integrated with the midstream services, we have.

Jim: Including exports that we just discussed.

Jim: Relative to commodity markets 2023 was a relatively weak year, especially for natural gas and natural gas liquids. Nonetheless.

Unknown Executive: Enterprise proved once again that we don't need really high prices to make substantial returns. Financial Records and 13 operating records, summarized, were achieved in a commodity price environment where natural gas prices were down almost 60% from 22. Crude was down nearly 20%, propane was down 36%, ethane was down almost 50%, and the NGO processing basket was down 35% Relative to the several 23 records at our Marine Terminal. We have long said that hydrocarbons with a price to export will prove once again in 2023, and Growth Capital. During 23, we completed construction of three and a half billion dollars of process projects. Significant assets put into service include two new natural gas processing plants in the Permian Basin and our 12th NGO fractionator in Chambers County. All of these assets were essentially full after operations.

Jim: <unk> proved once again that we don't need really high prices to make substantial returns.

The financial records and 13 operating record summarized.

Jim: Cheap and the commodity price environment, where natural gas prices were down almost 60% from 2002.

Jim: Crude was down nearly 20%.

Jim: Propane was down 36%.

Jim: Ryan was now almost 50% and the NGL processing basket was down 35%.

Jim: Relative to the several 23 records at our Marine terminals, we have long said that hydrocarbons would priced export proven once again in 2023 and.

Jim: And growth capital during 'twenty, three we completed construction of $3 $5 billion of process projects.

Significant assets put into service include two new natural gas processing plant in the Permian Basin, and our 12 NGL fractionator in Chambers County.

Jim: All of these assets were essentially full after operations began.

Jim: While production of our <unk> facility was completed in the third quarter of 'twenty. Three we spent much of the remainder of the year addressing startup issues. As a result, this plant did not meet our expectations and earnings in 'twenty three.

Jim: We believe most of these issues have been resolved and we anticipate much higher utilization rates this year.

Unknown Executive: While production of our PDH2 facility was completed in the third quarter of 2023, we spent much of the remainder of the year addressing startup issues. As a result, this plant did not meet our expectations and earnings in 2023. We believe most of these issues have been resolved, and we anticipate much higher utilization rates this year. We begin 24 with 6.8 billion of major organic projects under construction, with three projects representing approximately $1.1 billion in capital investment are expected to be completed this year. Major 24 projects include our Texas Western Products pipeline system, to and from additional processing plants in the permit.

Jim: We began 24 with we begin 'twenty four with $6 8 billion of major organic projects under construction with three projects, representing approximately $1 $1 billion in capital investment expected to be completed this year.

Major 24 projects include our Texas Western products pipeline system.

Jim: Two it and two additional processing plants in the Permian.

Jim: We have considered a considerable amount of growth capital underway.

Operator: Josh, are you ready? Good day, and thank you for standing by. Welcome to the Q4 2023 Enterprise Products Partners LP earnings conference call. At this time, all participants are in a listen-only mode.

Jim: All of these projects provide strategic growth to our system.

Jim: Add considerable visibility to new sources of cash flow.

Jim: I wanted to take a minute to talk about project nine three we started this project in 'twenty two as an incentive for all employees and innovative ways to improve the bottom line.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations. Thank you, Josh.

Jim: This was especially important as we and the industry were re engaging after COVID-19 and face the challenges of a slower global economy in 'twenty three.

Unknown Executive: We have a considerable amount of growth capital underway. All of these projects provide strategic growth to our system and can add considerable value to new sources of cash flow. I wanted to take a minute to talk about project 9.3. We started this project in 22 as an incentive for all employees to find innovative ways to improve the bottom line. It was especially important as we in the industry were reengaging after COVID and faced the challenges of a slower global economy in 23. We achieved the goals we set for ourselves both in 2022 and 2023. We are very proud of our employees for that accomplishment. That said, we will not have a Project 9-type program.

Jim: We achieved the goals we set for ourselves both in 2022 and 2023.

John Randy Burkhalter: Good morning, everyone, and welcome to the Enterprise Products Partners Conference call to discuss fourth quarter 23 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises General Partner Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, based on the beliefs of the company as well as assumptions made by and information currently available in Enterprises Management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Jim: We're very proud of our employees for that accomplishment.

Jim: That said, we will not have a projected nine type program for 2024.

Jim: You've always heard me say if you wanted to know where we're going look at what we're doing.

Jim: The Permian basin has been the cornerstone for much of our growth capital is.

Jim: As we look at 2024 and beyond.

Jim: We see supply and demand opportunities as the Permian continues to grow.

Jim: And the World continues to have an ever increasing appetite for U S hydrocarbons.

Jim: We noted in the press release that these might be the most geopolitically challenging times since World War two.

John Randy Burkhalter: Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. And with that, I'll turn it over to Jim. We generated $7.6 billion of distributive cash flow in 2023, providing 1.7 times coverage, and we retained $3.2 billion. We set nine financial records and 13 operating records in 2003. Our 23 operating results included records in NGO pipeline transportation, at thine export. Total MGL marine terminal volumes, in geo-approximation volume, eBase natural gas process, and Crude Pipeline and Natural Gas Transportation Body, barrels of oil equivalent per day. Enterprise transported a record 12.2 million barrels a day in 2023, compared to 11.2 million barrels a day in 2022. During the fourth quarter, we transported 12.7 million barrels a day, compared to 11.5 million barrels a day in the fourth quarter of 2022. We exported a record 2.3 million barrels a day of liquid hydrocarbon, and that includes everything from crude oil to LPGs, ethane, refined products, and basic petrochemicals such as ethane and propolis.

Jim: But it's abundantly clear that all of this chaos, leading itself to a growing appetite.

Jim: Alright, and the most stable hydrocarbon suppliers in the World USA.

Jim: Spite of government and regulatory challenges.

Unknown Executive: You've always heard me say, if you want to know where we're going, look at what we're doing. The Permian Basin has been the cornerstone for much of our growth capital. As we look at 2024 and beyond, we see supply and demand opportunities as the Permian continues to grow, and the world continues to have an ever-increasing appetite for U.S. hydrocarbons. We noted in the press release that these may be the most geopolitically challenging times since World War II, but it's abundantly clear that all of this chaos is leading itself to a growing appetite for the most stable hydrocarbon supplies in Without a doubt, relative to energy, our nation's biggest geopolitical challenge continues to be self-inflicted.

Jim: Without a doubt relative to energy, our nation's biggest GOP geopolitical challenges.

Jim: Continue to be self inflicted.

Jim: Enterprise has one of the world's leading natural gas liquids franchise, and we have the liquids hydrocarbon storage and export franchise.

Jim: Top of all of that we have.

Jim: Dedicated employee base that creates value regardless of the <unk>.

Jim: Environment.

Jim: 2023 marked our 20 <unk> anniversary as a public company.

Jim: It's been a great quarter century.

Jim: It has been for the U S energy industry and included the downfall of the energy merchants.

Jim: The great financial crisis.

Jim: Innovation of the E&P and oilfield service industries to unlock the potential of the shale plays which is still continuing.

Jim: It included the near Deb and remarkable Renaissance of the U S petrochemical industry from having the highest cost feedstock pre shale to now the lowest cost.

Jim: It included two OPEC price wars, a once in a century pandemic and the re emergence of geopolitical upheaval.

Jim Teague: When you look at our exports, it's clear that Enterprise is not a one-trick pony. It is quite remarkable that volumes across all our pipes and facilities increase sequentially each quarter. 2023, supported by the Strong Supply and Demand Fundamentals for Hydrocarbon from the Permian and other basins we serve, integrated with the midstream services that we have, including exports that we just discussed. Relative to commodity markets, 2023 was a relatively weak year, especially for natural gas and natural gas liquids.

Jim: During this time.

Jim: Two our objective of investing capital.

Jim: At reasonable returns.

Unknown Executive: Enterprise has one of the world's leading natural gas liquids franchises, and we have the liquids hydrocarbon storage and export franchise. On top of all of that, we have a dedicated employee base that creates value, regardless of..., and Barm. 2023 marked our 25th anniversary as a public company. It's been a great quarter for US Energy. It included the downfall of the energy merchants, The Great Financial Crisis.

Jim: <unk> reliable value added services.

Jim: Customers consistently returning cap capital to our partners and increasing the value of the <unk>.

Jim: <unk> for the long term.

Jim: During this time the enterprise value of the partnership has grown from $1 2 billion.

Jim: Almost $90 billion.

Jim: The value of our partnership units has increased almost 400%.

Jim: We increased our distribution 25 consecutive years at an approximately 7% compound annual growth rate.

Jim Teague: Enterprise proved once again that we don't need really high prices to make substantial returns; financial records, and 13 operating records summarized, were achieved in a commodity price environment where natural gas prices were down almost 60% from 22. Crude was down nearly 20%, propane was down 36%, ethane was down almost 50%, and the NGO processing basket was down 35%, relative to the several 23 records at our Marine Terminal.

Jim: We've returned $52 billion of capital.

Jim: To investors through distributions and buybacks.

Jim: We have high quality employees and we thank our employees.

Unknown Executive: Innovation of the EMP Oilfield Service Industries to unlock the potential of the Shell Place, which is still continuing. It included the near death and remarkable renaissance of the US petrochemical industry, from having the highest cost feedstock pre-shell to now the lowest. It included two OPEC price wars, a once in a century pandemic, and the Reemergence of Geopolitical Upheavals. During this time, we stuck to our objectives of investing capital at reasonable returns, providing reliable value-added services to customers, consistently returning capital to our port, and increasing the value of the partnership for the long term. During this time, the enterprise value of the partnership has grown from 1.2 billion. It's almost 90. The value of our partnership units has increased almost 400% We've increased our distribution for 25 consecutive years at an approximately 7% compound annual growth rate. We've returned $52 billion of capital to investors through distributions and buyback.

Jim: We thank our customers our service providers, our banks and our investors for the contributions to the success.

Jim: We're looking forward to the exciting opportunities and challenges for the next 25 years as the world's population quality of life and demand.

Jim: For energy reaches new Heights quit frankly.

Jim: Based on what I see in the future for energy.

Jim Teague: We have long said that hydrocarbons with a price to export will be proven once again in 2023. In growth capital during 23, we completed construction of $3.5 billion in projects. Significant assets put into service include two new natural gas processing plants in the Permian Basin and our 12th NGO fractionator in Chambers County. All of these assets were essentially full after operations.

Jim: I'd give anything that I could turn the clock back and be 50 years or so with that I'll turn it over to Randy.

Randy: Thank you Jim good morning, everyone.

Randy: Starting off with the income statement.

Randy: Yes.

Randy: Net income attributable to common unit holders for the fourth quarter.

Randy: <unk>.

Randy: 2023 was $1 6 billion or 72 cents per common unit on a fully diluted basis. This compares to $1 4 billion or.

Randy: <unk> 65 per common unit for the fourth quarter of 2022.

Randy: Adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital was $2 2 billion for the fourth quarter of <unk> 23, compared to $2 1 billion for the fourth quarter of 'twenty two.

Jim Teague: While production of our PDH-2 facility was completed in the third quarter of 2023, we spent much of the remainder of the year addressing startup issues. As a result, this plant did not meet our expectations and earnings in 2023. We believe most of these issues have been resolved, and we anticipate much higher utilization rates this year. We begin 24 with 6.8 billion of major organic projects under construction, with three projects representing approximately $1.1 billion in capital investment. And that is expected to be completed this year. Major 24 projects include our Texas Western Products Pipeline System and two additional processing plants in the Permian.

Randy: We declared a distribution of <unk> 51, and a half cents per common unit for the fourth quarter of 2023.

Randy: It was a five 1% increase over the distribution declared for the fourth quarter of 'twenty two.

Randy: Distribution will be paid February 14 to common unitholders of record as of the close of business on January 31.

Randy: In the fourth quarter. The partnership purchased three 7 million common units of the open market for $96 million total purchases for 2023 were $187 million or $7 2 million.

Unknown Executive: We have high-quality employees, and we thank our employees. We thank our customers, our service providers, our banks, and our investors for their contributions to this success. We're looking forward to the exciting opportunities and challenges for the next 25 years. As the world's population, quality of life, and demand for energy reach new heights, put blankly, based on what I see in the future, I'd give anything if I could turn the clock back and be 50 years old.

Randy: Common units, bringing total purchases under our buyback program to over $900 million.

Randy: I mentioned it on the last call looking at our five largest midstream peers by market cap.

2019 enterprise as the only midstream energy company to reduce absolute outstanding units outstanding without significant asset sales.

Randy: In addition to buybacks or.

Jim Teague: We have a considerable amount of growth capital underway. All of these projects provide strategic growth to our system and can add considerable visibility to new sources of cash flow. I wanted to take a minute to talk about project 9.3. We started this project in 22 as an incentive for all employees to find innovative ways to improve the bottom line.

Randy: Our distribution reinvestment plan and employee unit purchase plan purchased a combined six 6 million common units on the open market for $172 million during 2023.

Randy: For 2023 enterprise paid out approximately $4 3 billion in distributions to limited partners. These distributions combined with the buybacks for the year, resulting in our having a payout ratio of adjusted cash flow from operations of 56% and a payout ratio of adjusted free cash flow.

Randy Burkhalter: With that, I'll turn it over to Randy. All right. Thank you, Jim. Good morning, everyone.

Randy Burkhalter: Starting off with the income statement, the net income attributable to common unit holders for the fourth quarter of 2023 was $1.6 billion, or $0.72 per common unit on a fully diluted basis. This compares to $1.4 billion, or $0.65 per common unit, for the fourth quarter of 2022. Adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital, was $2.2 billion for the fourth quarter of 2023, compared to $2.1 billion for the fourth quarter of 2022. We declared a distribution of 51 and a half cents per common unit for the fourth quarter of 2023, which is a 5.1% increase over the distribution declared for the fourth quarter of 2022. The distribution will be paid February 14 to common unit holders of record as of the close of business on January 31. In the fourth quarter, the partnership purchased 3.7 million common units off the open market for $96 million.

Jim Teague: This was especially important as we in the industry were re-engaging after COVID and faced the challenges of a slower global economy in 23. We achieved the goals we set for ourselves both in 2022 and 2023. We are very proud of our employees for that accomplishment. That said, we will not have a Project 9-type program.

Randy: <unk> of 94%.

Randy: Total capital investments in the fourth quarter of 2023.

Randy: $1 billion, which included $823 million for growth capital projects $65 million for the acquisition of a small natural gas storage facility that we have historically leased and $129 million of sustaining capital expenditures.

Randy: Capital investments for the year of 2023 were $3 3 billion.

Randy: Which includes $2 seven $5 billion of organic growth capital projects $100 million in asset acquisitions, and 413 million of sustaining capital expenditures.

Jim Teague: You've always heard me say, if you want to know where we're going, look at what we're doing. The Permian Basin has been the cornerstone of much of our growth capital. As we look at 2024 and beyond, we see supply and demand opportunities as the Permian continues to grow, and the world continues to have an ever-increasing appetite for U.S. hydrocarbons. We noted in the press release that these may be the most geopolitically challenging times since World War II, but it's abundantly clear that all of this chaos is leading itself to a growing appetite for the most stable hydrocarbon supplies in Without a doubt, relative to energy, our nation's biggest geopolitical challenge... continues to be self-inflicted.

Randy: During the third quarter call, we estimated $3 billion of organic growth capital expenditures in 2023, and a range of three to three 5 billion in 2024 due to the timing of expenditures, we had approximately $250 million.

Randy: The Capex shift from 2023 into 2024, therefore, we now expect our 2024 gross capital expenditures totaled 325 to $3 75 billion.

Randy: We expect 2020 for sustaining capex will be approximately $550 million, which includes.

Randy: Dollars per planned turnarounds at <unk> one.

Randy Burkhalter: Total purchases for 2023 were $187 million, or 7.2 million common units, bringing total purchases under our buyback program to over $900 million. I mentioned it on the last call looking at our five largest midstream peers by market cap. Since 2019, Enterprise is the only midstream energy company to reduce absolute outstanding units outstanding without significant asset sales.

Randy: <unk>.

Randy: EBITDA in our high purity <unk> facility. These scheduled turnarounds typically occur every three years to four years for these type plants are.

Our total debt principal outstanding was approximately 29 billion as of December 31, 2023, assuming the final maturity date of our hybrids. The weighted average life of our debt portfolio was approximately 19 years, our weighted average cost of debt is four 6% at December 31.

Randy: Approximately 96% of our debt was fixed rate our consolidated liquidity was approximately $3 9 billion at the end of the fourth quarter, which includes availability under our credit facilities and unrestricted cash.

Randy Burkhalter: In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 6.6 million common units on the open market for 172 million dollars during 2023. For 2023, Enterprise paid out approximately $4.3 billion in distributions to limited partners. These distributions combined with the buybacks for the year, resulting in us having a payout ratio of adjusted cash flow from operations of 56% and a payout ratio of adjusted free cash flow of 94%.

Randy: Adjusted EBITDA as Jim mentioned earlier was $9 3 billion for 2023, we ended the year with a consolidated leverage ratio of 3.0 times on a net basis after adjusting debt for the partial equity treatment of our hybrid debt.

Jim Teague: Enterprise has one of the world's leading natural gas liquids franchises, and we have the liquids hydrocarbon storage and export franchise. On top of all of that, we have a dedicated employee base that creates value, regardless of their background, and Barb. 2023 marked our 25th anniversary as a public company. It's been a great quarter for U.S. Energy. It included the downfall of the energy merchants.

Randy: <unk> reduced by partnerships unrestricted cash on hand, our leverage target remains three times, plus or minus a quarter turn so 275% to three five times in January we issued $2 billion of senior notes comprised of $1 billion of three year note.

Randy: <unk>.

Randy: Coupon of four 6% and $1 billion of 10 year notes at a four.

Randy: 5% coupon.

Jim Teague: The Great Financial crisis, innovation of the EMP and all field service industries to unlock the potential of the shell place, which is still continuing. It included the near-death and remarkable renaissance of the U.S. petrochemical industry, from having the highest cost feedstock pre-shell to now the lowest. It included two OPEC price wars, a once in a century pandemic, and the reemergence of geo

Randy: Proceeds from this offering will go toward an upcoming $850 million debt maturity in February I guess this month and funding our capital expenditure program. We appreciate the continued support of our debt investors.

Randy Burkhalter: Total capital investments in the fourth quarter of 2023 were $1 billion, which included $823 million for growth capital projects, $65 million for the acquisition of a small natural gas storage facility that we have historically leased, and $129 million of sustaining capital expenditures. Capital investments for the year of 2023 were $3.3 billion, which included $2.75 billion of organic growth capital projects, $100 million in asset acquisitions, and $413 million of sustaining capital expenditures. During the third quarter call, we estimated $3 billion of organic growth capital expenditures in 2023 and a range of $3 to $3.5 billion in 2024. Due to the timing of expenditures, we had approximately $250 million of CapEx shift from 2023 into 2024.

Randy: Moving on to future events enterprise will host an analyst and Investor call on Wednesday April 3rd this will be in lieu of our in person analyst day. This call will include overviews on our current outlook near term objectives allocation of capital.

Randy: As well as fundamentals update from Tony QE.

Randy: Q&A will follow our prepared remarks more information will be provided in the coming weeks.

Jim Teague: During this time, we stuck to our objectives of investing capital at reasonable returns, providing reliable value-added services to customers, consistently returning capital to our port, and increasing the value of the partnership for the long term. During this time, the enterprise value of the partnership has grown from $1.2 billion to almost $90. The value of our partnership units has increased almost 400 percent.

Randy: Before we open the call up to questions, Jim and I would like to take a moment to recognize Randy Burkhalter, Our vice President of Investor Relations. After a 46 year career in the jewelry industry. Randy has announced his retirement for April of this year.

Randy: Andy has led our Investor relations effort for the past 21 years when he joined US shortly after our acquisition of the mid America Seminole pipelines.

Randy: Through through the annual institutional Investor magazine, All American team surveys enterprise and our Investor Relations team have been consistently recognized while the sell side and buy side community as one of the best in the midstream sector.

Jim Teague: We increased our distributions for 25 consecutive years at an approximately 7% compound annual growth rate. We've returned $52 billion of capital to investors through distributions and buybacks. We have high-quality employees, and we thank our employees. We thank our customers, our service providers, our banks, and our investors for their contributions to this success. We're looking forward to the exciting opportunities and challenges for the next 25 years as the world's population, quality of life, and demand for energy reach new heights. I'd give anything if I could turn the clock back and be 50 years old.

Randy Burkhalter: Therefore, we now expect our 2024 growth capital expenditures to total $3.25 to $3.75 billion. We expect 2024 sustaining capex to be approximately 550 million, which includes dollars per plan turnarounds at PDH1, our IBDH, and our high purity isobutylene facility. These scheduled turnarounds typically occur every three to four years for these types of plans. Our total debt principal outstanding was approximately $29 billion as of December 31, 2023. Assuming the final maturity date of our hybrids, the weighted average life of our debt portfolio was approximately 19 years.

Randy: Randy has been integral to leading this effort we are grateful for Randy service his integrity his attention to customer service and as industry renowned social prowess.

Randy: Yes.

Randy: Please.

Speaker Change: Join us in congratulating, Randy Owen is 46 year career, and a job well done.

Speaker Change: Cost of you have met <unk> strike <unk> will succeed Randy and leading our IR effort. Libya is one of our young all stars who joined the company in 2013 and worked in commercial roles of increasing responsibility across several of our business units before joining our team.

Speaker Change: 2019, shaken Michael <unk>, another one of our all stores will comprise our.

Speaker Change: Our team.

Speaker Change: And R&D as it relates to Randy Burkhalter, I think it's fair to say.

Speaker Change: We have.

Speaker Change: Already scheduled.

Speaker Change: Quarterly visits by Randy the building to have a couple of Scotches.

Speaker Change: Our downtown at least once a quarter.

Randy Fowler: With that, I'll turn it over to Randy. All right. Thank you, Jim. Good morning, everyone.

Speaker Change: With that I think we're now ready to open the call up to questions.

Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please limit yourself to one question and one follow up one moment for questions.

Randy Burkhalter: Our weighted average cost of debt is 4.6%. At December 31st, approximately 96% of our debt was fixed rate. Our consolidated liquidity was approximately $3.9 billion at the end of the fourth quarter, which included the availability of our credit facilities and unrestricted cash. Adjusted EBITDA, as Jim mentioned earlier, was $9.3 billion for 2023. We ended the year with a consolidated leverage ratio of 3.0 times on a net basis after adjusting debt for the partial equity treatment of our hybrid debt and reduced by partnerships' unrestricted cash on hand.

Randy Fowler: Starting off with the income statement, the net income attributable to common unit holders for the fourth quarter of 2023 was $1.6 billion, or $0.72 per common unit on a fully diluted basis. This compares to $1.4 billion, or $0.65 per common unit, for the fourth quarter of 2022. Adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital, was $2.2 billion for the fourth quarter of 2023, compared to $2.1 billion for the fourth quarter of 2022. We declared a distribution of 51 and a half cents per common unit for the fourth quarter of 2023, which is a 5.1% increase over the distribution declared for the fourth quarter of 2022. The distribution will be paid on February 14th to common unit holders of record as of the close of business on January 31st. In the fourth quarter, the partnership purchased 3.7 million common units off the open market for $96 million.

Speaker Change: Our first question comes from Michael Blum with Wells Fargo. You May proceed.

Michael Blum: Thanks, Good morning, everyone and congrats Randy and Jim. Please send me the invite for the Scotch get together.

Michael Blum: I wanted to I wanted to start with maybe.

Michael Blum: Your latest views on Permian growth in 'twenty for both.

Michael Blum: For oil and for gas and then kind of a related topic. Clearly there is it seems like there will be need for another Permian gas takeaway you had talked about a brownfield project a little outback, it's been kind of quiet lately. So I wanted to get your latest thoughts on Permian gas takeaway solution in light of the your growth outlook.

Michael Blum: Yeah, Michael this is Tony.

Michael Blum: Our last analyst meeting, which was <unk>.

Michael Blum: March of 2023, we've talked about growth in the United States of call. It $1 8 million barrels I'll just go to oil right. Now we gave you some basic metrics as to.

Randy Burkhalter: Our leverage target remains three times plus or minus a quarter term, so 2.75 to 3.25 times. In January, we issued $2 billion of senior notes comprised of $1 billion of three-year notes at a coupon of 4.6% and $1 billion of 10 year notes at 4.85%. Proceeds from this offering will go toward an upcoming $850 million debt maturity in February and fund our Capital Expenditure Program. We appreciate the continued support of our debt investors. Moving on to future events, Enterprise will host an analyst and investor call on Wednesday, April 3.

Tony D. Auld: As to what happens with the oil, but one 8 million barrels in the 'twenty three 'twenty four 'twenty five timeframe.

Tony D. Auld: Obviously, the there was a lot of pushback when we published that forecast from all sides, including producers that hadn't looked at a number like we had in.

Tony D. Auld: What I'll say about that number now of that one point that we should one five in the Permian basin.

Tony D. Auld: Certainly given the performance of producers during 2023.

Tony D. Auld: Our producer community is on track to meet and likely beat those numbers.

Randy Fowler: Total purchases for 2023 were $187 million, or 7.2 million common units, bringing total purchases under our buyback program to over $900 million. I mentioned this on the last call, looking at our five largest midstream peers by market cap. Since 2019, Enterprise is the only midstream energy company to reduce absolute units outstanding without significant asset sales.

Tony D. Auld: And I don't I.

Tony D. Auld: I don't know how that changes at this pace and then.

Combined growing wedge of PDP that a lot of people forget about in key basins.

Randy Burkhalter: This call will be in lieu of our in person analyst day. This call will include overviews of our current outlook, near-term objectives, allocation of capital, as well as a fundamentals update. Q&A will follow our prepared remarks. More information will be provided in the coming week. Before we open the call up to questions, Jim and I would like to take a moment to recognize Randy Burkhalter, our Vice President of Investor Relations. After a 46-year career in the energy industry, Randy has announced his retirement in April of this year.

Tony D. Auld: With the continuous improvement in efficiency and productivity that we see from the producer community.

Tony D. Auld: So.

Tony D. Auld: We'll talk about it more in early April but.

Tony D. Auld: I think the cliff notes now.

Tony D. Auld: What we know is it's really going to be hard not to at least meet and likely would be that number as we look at the three year period.

Randy Fowler: In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 6.6 million common units on the open market for 172 million dollars during 2023. For 2023, Enterprise paid out approximately $4.3 billion in distributions to limited partners. These distributions combined with the buybacks for the year, resulting in us having a payout ratio of adjusted cash flow from operations of 56% and a payout ratio of adjusted free cash flow of 94%.

Very much Permian dominated.

Tony D. Auld: Relative to gas pipelines.

Tony D. Auld: We've talked about a simple metrics before for every million barrels incremental that you have with oil.

Randy Burkhalter: Randy has led our investor relations effort for the past 21 years when he joined us shortly after our acquisition of the Mid-American Seminole Pipeline. Through the annual Institutional Investor Magazine All-American Team Surveys, Enterprise and our Investor Relations Team have been consistently recognized by the sell-side and buy-side community as one of the best in the midstream sector. Randy has been integral to leading this effort. We are grateful for his service, his integrity, his attention to customer service, and his industry-renowned social prowess. Please join us in congratulating Randy on his 46-year career and a job well done. Most of you have met Libby Strait.

Tony D. Auld: You have somewhere in the neighborhood of available.

Tony D. Auld: $4 to 500000 barrels of Ngls and four rich gas call that anywhere from three to five years to three five Bcf. Okay. So you do the math you look at.

Tony D. Auld: And what we have today and incremental capacity over the next two years is coming on as appreciable will there need to be more between now and 2030, yes, the answer to that yes in some form or fashion.

Randy Fowler: Total capital investments in the fourth quarter of 2023 were $1 billion, which included $823 million for growth capital projects, $65 million for the acquisition of a small natural gas storage facility that we have historically leased, and $129 million of sustaining capital expenditures. Capital investments for the year of 2023 were $3.3 billion, which included $2.75 billion of organic growth capital projects, $100 million in asset acquisitions, and $413 million of sustaining capital expenditures. During the third quarter call, we estimated $3 billion of organic growth capital expenditures in 2023 and a range of $3 to $3.5 billion in 2024. Due to the timing of expenditures, we had approximately $250 million of CapEx shift from 2023 into 2024. Therefore, we now expect our 2024 growth capital expenditures to total $3.25 to $3.75 billion.

Tony D. Auld: Whether it would be brownfield on existing pipes or or or another greenfield pipe.

Speaker Change: Okay, great. Thanks for all that Tony maybe it would just stay on gas.

Speaker Change: Question I just wanted to ask about the pause in LNG permitting and while I know you are not.

Speaker Change: Don't have an LNG asset per se curious how if at all of this would impact your business in 'twenty four and beyond thanks.

Speaker Change: Okay. Michael This is Jim I guess.

Jim: I wonder is it truly a pause.

Jim: Is it something more.

Jim: And what goes where those projects that are not under construction.

Operator: Libby will succeed Randy in leading our IR effort. Libby is one of our young all-stars who joined the company in 2013 and worked in commercial roles of increasing responsibility across several of our business units before joining the IR team in 2019. She and Michael Cesarek, another one of our all-stars, will comprise our IR team. Randy, as it relates to Randy Burkhalter, I think it's fair to say we have already scheduled a quarterly visit by Randy to the building to have a couple of scotches at a bar downtown at least once a quarter. With that, I think we're now ready to open the call to questions. Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please limit yourself to one question and one follow-up.

Jim: Going through the regulatory process be allowed to continue to go through that process. During this temporary pause.

Jim: We will all work stop.

Jim: On the metals groups as well have 75 years of reserves at current production with current technology.

Jim: You look at our LNG is.

Jim: Huge difference to our allies.

Jim: In 2019, we averaged one eight Bcf a day to Europe.

Jim: In 2023.

Jim: We exported one averaged seven five Bcf a day, where the winter peak of over nine Bcf a day.

Jim: We went from less than 10% market share LNG into Europe.

Jim: The 50% market share.

Jim: Rusty, Brazil, and us are being blocked this morning, Hasnt excellent right up on this issue.

Speaker Change: So really you have to sit back and wonder.

Speaker Change: Is this a temporary pause.

Speaker Change: Is it a political pause.

Randy Fowler: We expect 2024 sustaining CapEx will be approximately 550 million, which includes dollars per plan for turnarounds at PDH 1, our IBDH, and our high-purity isobutylene facility. These scheduled turnarounds typically occur every three to four years for these types of plans. Our total debt principal outstanding was approximately $29 billion as of December 31, 2023. Assuming the final maturity date of our hybrids, the weighted average life of our debt portfolio was approximately 19 years.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Neel Mitra with Bank of America You May proceed.

Neel Mitra: Hi, good morning, Congratulations Randy.

Neel Mitra: First question is on the NGL exports and hitting a quarterly record.

Neel Mitra: Can you maybe comment on the export dynamics right now.

Neel Mitra: Just with the weaker PTH demand in the plants coming up slower than normal, but also lower NGL prices in the U S and how that are trending for 2024.

Michael Jacob Blum: One moment for questions. Our first question comes from Michael Blum with Wells Fargo. You may proceed. Thanks. Good morning, everyone. And congrats, Randy. And, Jim, please send me the invite for the scotch.

Neel Mitra: Yes. This is Tom handling so.

Tom: We've had strong operational performance on our UHT asset.

Tom: Healthy volumes going across the dock. There's also been a decrease in freight values, we've seen which is continuing to support stronger par values with respect to the weaker Pete.

Randy Fowler: Our weighted average cost of debt is 4.6%. At December 31st, approximately 96% of our debt was fixed rate. Our consolidated liquidity was approximately $3.9 billion at the end of the fourth quarter, which included the availability of our credit facilities and unrestricted cash. The adjusted EBITDA, as Jim mentioned earlier, was $9.3 billion for 2023. We ended the year with a consolidated leverage ratio of 3.0 times on a net basis after adjusting debt for the partial equity treatment of our hybrid debt and reduced by partnerships' unrestricted cash on hand.

Unknown Executive: I wanted to start with maybe your latest views on Permian growth in 2024, both for oil and for gas, and then kind of a related topic. Clearly, it seems like there will be need for another Permian gas takeaway. You had talked about a brownfield project a little while back. It's been kind of quiet lately.

Speaker Change: <unk> margins on an international level.

Speaker Change: The PVH margins have improved but theres still a lot of overcapacity, so necessarily weak weak margins don't lead to decreased NGL demand.

Speaker Change: Because it's still the demand is ultimately there.

Speaker Change: Got it.

Speaker Change: And then my.

Speaker Change: Second question.

Unknown Executive: So I want to get your latest thoughts on Permian, Michael. This is Tony. In our last analyst meeting, which was March of 2023, we talked about growth in the United States of, call it 1.8 million barrels. I'll just go to oil right now. We gave you some basic metrics. As to what happens with the oil, but 1.8 million barrels in the 23, 24, 25 timeframe. Obviously, there was a lot of pushback when we published that forecast from all sides.

Speaker Change: Paul.

Paul: And I was just wondering if you could maybe give some puts and takes its toll.

Paul: Where you can see additional volumes ticked up.

Paul: Blake novel path.

Paul: They are system right now maybe the lucid volumes somewhat.

Paul: For re contracting and kind of later in the decade.

Paul: And where you could see some additional opportunities to pick up volumes.

Paul: That aren't contracted onto your system right now.

Speaker Change: And Neal it's just inquire.

Neal: Yes, so kind of like three buckets of Bahia that we think about first and foremost is our growing GMP footprint. So you think about a metric of every new gas plant, we put on will yield about $40 to 45000 barrels a day of Ngls into the here.

Randy Fowler: Our leverage target remains three times plus or minus a quarter term, so 2.75 to 3.25 times. In January, we issued $2 billion of senior notes comprised of $1 billion of three-year notes at a coupon of 4.6% and $1 billion of 10-year notes at 4.85%.

Unknown Executive: Including producers that hadn't looked at the number like we had, and you know what I'll say about that number now: of that 1.8, we should only get 1.5 in the permeable basin. Certainly, given the performance of producers here in 2023, the producer community is on track to meet and likely beat those numbers, and I don't know how that changes at this pace and then the combined growing wedge of PDP that a lot of people forget about in key basins coupled with the continuous improvement in efficiency and productivity that we see from the producer community. So we'll talk about it more in early April. But I think the cliff notes now say what we know.

Neal: So we're growing our footprint both in the Delaware and Midland.

Neal: So that's always the base load as we think about the here and then on top of that we have a robust set of third party agreements. We've got 40 connections on a Y grade system that gives us a lot of.

Randy Fowler: Proceeds from this offering will go toward an upcoming $850 million debt maturity in February and funding our Capital Expenditure Program. We appreciate the continued support of our debt investors. Moving on to future events, Enterprise will host an analyst and investor call on Wednesday, April 3.

Neal: A lot of diversity.

Neal: To go capture incremental third party volumes as that market ebbs and flows.

Neal: And we got a good runway of contracts on those that get us to the backend of the decade without having to really worry about any contract roll off.

Neal: And then third.

Neal: Our expectation is that something that will won't be in NGL service once <unk> comes online.

Neal: You add all those up and Thats kind of how we land on the capacity that we've created out of the gate, it's just harder to debt.

Neal: Natalie do you think we're through building processing plants up there I don't know printer.

Randy Fowler: This call will be in lieu of our in-person analyst day. This call will include overviews of our current outlook, near-term objectives, allocation of capital, as well as a fundamentals update. Q&A will follow our prepared remarks. More information will be provided in the coming weeks. Before we open the call up to questions... Jim and I would like to take a moment to recognize Randy Burkhalter, our Vice President of Investor Relations. After a 46-year career in the energy industry, Randy has announced his retirement in April of this year.

Natalie: Okay, great. Thank you very much.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Theresa Chen with Barclays. You May proceed.

Theresa Chen: Good morning, I'd like to Echo the congratulations to Randy on his retirement after a stellar career and we wish you continued social power and also congratulations to Bolivia and Michael.

Unknown Executive: It's really going to be hard not to at least meet and likely beat that number as we look at the next three years, very much Permian dominance relative to gas pipelines. We've talked about a simple metric before: for every million barrels of incremental that you have with oil, you have somewhere in the neighborhood of available four to 500,000 barrels of NGLs. And for rich gas, call that anywhere from 3.25 to 3.5 B

Theresa Chen: When we look at your organic project backlog.

Theresa Chen: Robust set of opportunities and as we look beyond 2025.

Theresa Chen: Trying to think about what a run rate should be knowing that you can still do you have some projects under development.

Randy Fowler: Randy has led our investor relations effort for the past 21 years when he joined us shortly after our acquisition of the Mid-American Seminole Pipeline. Through the annual Institutional Investor Magazine All-American Team Surveys, Enterprise and our Investor Relations team have been consistently recognized by the sell-side and buy-side community as one of the best in the midstream sector. Randy has been integral to leading this effort. We are grateful for his service, his integrity, his attention to customer service, and his industry-renowned social prowess. Please join us in congratulating Randy on his 46-year career and a job well done. Most of you have met Libby Strait.

Theresa Chen: Sizable is that three or three plus billion dollar number as a run rate or how should we think about that.

Theresa Chen: Yeah.

Speaker Change: So I'll start off.

Theresa Chen: Yeah.

Unknown Executive: Okay, so you do the math, and incremental capacity over the next two years coming on is appreciable. Will there need to be more between now and 2030? Yes, the answer to that is yes, in some form or fashion. Whether it be brownfield, you know, on existing pipes or another greenfield.

Theresa Chen: $6 8 billion worth of projects under construction.

Theresa Chen: Again this year it will range from three three in a quarter to $3 75 billion $2025 3 billion and then theres a little bit of a roll off with that $6 8 billion that creeps over into <unk>.

Theresa Chen: 2026.

Speaker Change: One thing I would just note is in that $6 8 billion.

Speaker Change: We've had we've got two lumpy projects.

Unknown Executive: Great, thanks for all that. Tony, maybe we'll just stay on gas. My second question just wanted to ask about the Pause in LNG permitting, and well, I know you're not, you don't have it, an asset per se. Curious how, if at all, this would impact, Michael, this is Jim. And I guess I wonder, is it truly a pause? Or is it something more?

Speaker Change: B in Bahia pipeline and also.

Speaker Change: The export facility that we're building on the niches River.

Speaker Change: And so we feel.

Speaker Change: I come in and look forward and.

Speaker Change: Your expectation will continue to see build out with natural gas processing with the gas gathering and compression that supports that.

Operator: Libby will succeed Randy in leading our IR effort. Libby is one of our young all-stars who joined the company in 2013 and worked in commercial roles of increasing responsibility across several of our business units before joining the IR team in 2019. She and Michael Cesarek, another one of our all-stars, will comprise our IR team. Randy, as it relates to Randy Burkhalter, I think it's fair to say we have already scheduled a quarterly visit by Randy to the building to have a couple of scotches at a bar downtown at least once a quarter. With that, I think we're now ready to open the call to questions. Thank you. As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please limit yourself to one question and one follow-up.

Speaker Change: I keep coming back, but I really think that going forward.

Speaker Change: Absent spot.

Unknown Executive: And will those projects that are not under construction but are going through the regulatory process be allowed to continue to go through that process during this, quote, temporary pause, or will all work stop? Our fundamentals group says we'll have 75 years of reserves at current production. Current Technology. I don't know, you know, you look at it; our LNG has had a huge difference to our allies. In 2019, we averaged 1.85 BCF a day to Europe.

That were more in the $2 billion range.

Speaker Change:

Speaker Change: As where I keep coming out just again, because we've had some lumpy projects.

Speaker Change: Put.

Speaker Change: PD H two.

Speaker Change: Two into service in 2000.

Speaker Change: 2023 that was another lumpy project so.

Just don't foresee a lot of those lumpy projects coming.

With the exception of spot.

Speaker Change: Got it. Thank you respond thats, probably a three year construction cycle.

Speaker Change: Understood and in terms of projects.

Speaker Change: That are coming online near term for your Texas West products system can you remind us how much of that is written.

Speaker Change: Underwritten by third party commitments it versus open capacity that you hope to market and capture that art and especially in light of the fact that since you announced the project one of your midstream competitors, who also has significant marketing capabilities bought a huge refined product system and is also looking to close patchy.

Unknown Executive: In 2023, we exported on average seven and a half BCF a day with a winter peak of over nine BCF a day. We went from less than 10% market share of LNG into Europe to 50% market share. Rusty Brazil, in his RBN blog this morning, has an excellent write-up on this issue. So really, you have to sit back and wonder. Is this a temporary pause, or is it a political party

<unk>.

Hey, Theresa.

Speaker Change: On <unk> again.

Speaker Change: Doug May chime in on a piece of that as well but.

Speaker Change: As we develop the project, it's really it really has developed into really our rack marketing model.

Speaker Change: We had the first phase of startup really pending.

Michael Blum: One moment for questions. Our first question comes from Michael Blum with Wells Fargo. You may proceed. Thanks. Good morning, everyone, and congrats, Randy. And, Jim, please send me the invite for the scotch.

Unknown Attendee: Thank you. One moment for questions. Our next question comes from Neal Mitra with Bank of America. You may proceed. Hi, good morning.

Speaker Change: And the timing of the rest of it should be laid out in the deck.

Speaker Change: But we've got significant interest we have got 43rd party contracts agreed to across the terminals and we're signing up more seemingly daily.

Unknown Executive: Congratulations, Randy. The first question was on NGL exports and hitting a quarterly record. Could you maybe comment on the export dynamics right now? Just with weaker PDH demand and the plants coming up slower than normal, but also lower NGL prices in the US and how that orb is trending for 2024? Yeah, this is Tug Hanley.

Speaker Change: So people are just itching for it to come on.

Speaker Change: But we do think similar to Dixie and our legacy propane.

Speaker Change: Long haul pipelines being sort of an on contracted rack based model that thats the model that we're going to see on tw.

Tony D. Auld: I wanted to start with maybe your latest views on Permian growth in 2024, both for oil and for gas, and then kind of a related topic. Clearly, there seems like there will be need for another Permian gas pipeline. You talked about a brownfield project a little while ago. It's been kind of quiet lately, so I wanted to get your latest thoughts on the Permian. Michael, this is Tony. In our last analyst meeting, which was March of 2023, we talked about growth in the United States of call it 1.8 million barrels. I'll just go to oil right now.

Speaker Change: Thank you. Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Jeremy Tonet with J P. Morgan Securities You May proceed.

Jeremy Bryan Tonet: Hi, good morning good.

Unknown Executive: So, we've had strong operational performance on our EHT assets, which has led to healthy volumes going across the dock. There's also been a decrease in freight values we've seen, which is continuing to support stronger FOB values. With respect to the weaker PDH margins on an international level, the PDH margins have improved, but there's still a lot of overcapacity. So necessarily, weak margins don't necessarily lead to decreased NGL demand because the demand is still ultimately there. Got it. And then my second question is related to Bahia. And I was just wondering if you could maybe give some input as to where you can see additional volumes picked up. I believe Navitas isn't going through your system right now.

Jeremy Bryan Tonet: Good morning.

Jeremy Bryan Tonet: And Randy one Ricky wish you. Congratulations here good luck with everything going forward you will be missed and thank you.

Jeremy Bryan Tonet: Thank you Jeremy.

Speaker Change: And I just wanted to start off I guess with.

Speaker Change: The recent Houston ship channel enhancements that we've seen over time here I'm wondering if you could comment on how thats impacted your LPG.

Speaker Change: Export capabilities have you seen any kind of.

Speaker Change: Improvements there given the changes just curious how that has developed.

Speaker Change: Yes. This is Bob Sanders late in the fourth quarter last year, the Houston pilots removed the daylight restriction on LPG ships. So we can sell 24 hours a day loaded are empty and we are incrementally picking up the number of vessels, we're bringing in to try to maximize the utilization of the refrigeration units that we've got right now so we are seeing.

Tony D. Auld: We gave you some basic metrics as to what happens with the oil, but 1.8 million barrels in the 23, 24, 25 timeframe. Obviously, there was a lot of pushback when we published that forecast from all sides, including producers that hadn't looked at the number like we had, and you know what I'll say about that number now: of that 1.8, we should see 1.5 in the permeable basin. Certainly, given the performance of producers here in 2023, the producer community is on track to meet and likely beat those numbers, and I don't know how that changes at And then there is the combined growing wedge of PDP that a lot of people forget about in key basins, coupled with the continuous improvement in efficiency and productivity that we see from the producer community.

Speaker Change: Direct benefit.

Unknown Executive: Maybe the lucid volumes will come up for recontracting and, kind of, later in the decade, and you could see some additional opportunities to pick up volumes that aren't contracted onto your system right now. Neal, it's Justin Kleiderer. Yeah, so kind of like three buckets of Bahia that we think about first and foremost is our growing GMP footprint. So you think about a metric for every new gas plant we put on, we yield about 40 to 45,000 barrels a day of NGLs into Bahia. So we're growing our footprint both in Delaware and the Midland. So that's always the baseload as we think about Bahia.

Speaker Change: Got it and just curious if that's a minor or maybe bigger expansion and also Tony I guess I'm curious I guess with that.

Speaker Change: Thoughts on LPG pricing here I guess, there is concern in the marketplace. The LPG exports might be maxed out and that could dislocate domestic pricing relative to international price markers. So just wondering how you see that playing out.

Tony D. Auld: I'll answer the first piece a little bit we're seeing about a 5% to 7% gain at this point.

Speaker Change: Okay.

Speaker Change: Reising.

Speaker Change: You've seen you've seen ngls catch a bit here recently.

Speaker Change: Some of what Bob.

Speaker Change: Mention his help with pricing.

Speaker Change: As freights come off there's been a benefit to certainly to propane and butane.

Speaker Change: On the flat price, but if you look at the growth that Tony mentioned earlier.

Unknown Executive: And then on top of that, we have a robust set of third-party agreements. You know, we've got 40 connections on our wide grade system that gives us a lot of diversity to capture incremental third-party volumes as that market ebbs and flows. And we've got a good runway of contracts on those that will get us to the back end of the decade without having to really worry about any contract roll-off. And then third, you know; we're kind of our expectation is that Seminole won't be an NGL service once Bahia comes online.

Speaker Change: We have Ngls is growing at a faster pace than crude oil we're seeing it across our system.

Speaker Change: Storage is going to become more increasingly valuable.

Tony D. Auld: So we'll talk about it more in early April, but I think the cliff notes now are that it's really going to be hard not to at least meet and likely beat that number as we look at the three years. Very much Permian dominance. Relative to gas pipelines, we've talked about a simple metric before: for every million barrels of incremental that you have with oil, you have somewhere in the neighborhood of available four to 500,000 barrels of NGLs. And for rich gas, call that anywhere from 3.25 to 3.5 BCF.

Speaker Change: Expansions don't come on until $45 46 timeframe.

Speaker Change: So we expect the docs to remain at capacity and then ultimately.

Speaker Change: The flat price of Ngls will be reflective of that yes. This is Todd I'll just add that we're actually seeing that already manifest itself on our spot dark values.

Todd: Upwards in the double digits right now.

Speaker Change: Got it that's very helpful. Thank you for that.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Brian Reynolds with UBS you May proceed.

Brian Reynolds: Hi, good morning, everyone and Randy Thanks again for all the time you spent with me in the community over the last 21 years and thanks for leaving the team in good hands with Libyan Michael.

Unknown Executive: You add all those up, and that's kind of how we land on the capacity that we created out of the gate at $600. Natalie, do you think we're through building processing plants up there? I don't think we're through. Okay, great. Thank you very much.

Brian Reynolds: Thank you Brian.

Jim Teague: Okay, so you do the math, and incremental capacity over the next two years coming on is appreciable. Will there need to be more between now and 2030? Yes, the answer to that is yes, in some form or fashion. Whether it be brownfield, you know, on existing pipes or another greenfield.

Brian Reynolds: Maybe just start off on the NGL macro Jim on the last call you kind of talked about competitive market dynamics, right now where <unk> seems to be threading, the needle of maximizing return, while preventing some new entrants into the integrated NGL value chain.

Brian Reynolds: Well I appreciate some of the opening remarks from Tony to Michael's question around Permian growth just kind of curious if how we should think about maybe volume growth is going to be really attractive over the next few years, but kind of curious if we could talk about how transportation frac and export rates should book relative to what they've been in the past decade, just really attractive.

Unknown Attendee: Thank you. One moment for questions. Our next question comes from Theresa Chen with Sparkly, so please proceed. Morning.

Unknown Attendee: I'd like to echo the congratulations to Randy on his retirement after a stellar career. We wish you continued social progress. And also, congratulations to Libby and Michael.

Unknown Attendee: When we look at your organic project backlog, it's a robust set of opportunities. And as we look beyond 2025, just trying to, you know, think about what a run rate should be knowing that you still do have projects under development and are sizable. Is that three or three plus billion dollar number a good run rate? Or how should we think about that?

Jim Teague: Great, thanks for all that. Tony, maybe we'll just stay on gas. My second question is, I just wanted to ask about the pause in LNG permitting, and well, I know you're not, you don't have an asset per se. Curious how, if at all, this would impact your, Michael, this is Jim, and I guess I wonder if this is truly a pause or is it something more? And will those projects that are not under construction but are going through the regulatory process be allowed to continue to go through that process during this, quote, temporary pause, or will all work stop? Our fundamentals group says we'll have 75 years of reserves at current production, current technology. I don't, you know, you look at it. RLNG has made a huge difference to our allies. In 2019, we averaged 1.85 BCF a day to Europe.

Brian Reynolds: Hey, Brian This is Brian.

Brian Reynolds: It varies based on the service I think everything that you see on our processing side.

Brian Reynolds: Certainly on the kind of long haul pipeline as a newbuild economic type number fractionation is probably in that group too.

I think when you look across.

Brian Reynolds: Sure.

Randy Burkhalter: Yeah, Theresa, I'll start off, you know We have $6.8 billion worth of projects under construction, and, you know, again this year, it'll range from 3, 3.25 to 3.75 billion. 2025 is 3 billion. And then there's a little bit of a roll-off with that 6.8 billion that creeps over into 2026. The one thing I would just note is that in that $6.8 billion, we've got two lumpy projects, being the Bahia Pipeline and also the Export Facility that we're building on the Neches River. And so if you, if I come in and look forward, and the expectation will, you know, continue to see build out with natural gas processing with the gas gathering and compression that supports that, I keep coming back that I really think that going forward, absent a spot that we're more in the $2 billion range, is where I keep coming out. Just again, because we've had some lumpy projects. You know, we just put PDH 2 into service in 2023. That was another lumpy project.

Brian Reynolds: NGL docs when you look at the entrance that are that are in our space right now I think.

Brian Reynolds: Buddy who wants to be in that space is going to have to compete with brownfield economics.

Brian Reynolds: And if you look at where.

<unk> values or go on for both ethane and LPG is it is incredibly incredibly difficult to make a project accretive that's a new entrant in that space.

Brian Reynolds: So Brent put it mildly put directly while tug says on our.

Brian Reynolds: Bought deals we have double digit <unk>.

Brian Reynolds: <unk> values, what can you do a five year deal there.

Jim Teague: In 2023, we exported on average 7.5 BCF a day, with a winter peak of over 9 BCF a day. We went from less than 10% market share of LNG into Europe to 50% market share. Rusty Brazil in his RBN blog this morning has an excellent write-up on this issue. So really, you have to sit back and wonder. Is this a temporary pause, or is it a political party?

Brian Reynolds: I think when you look at.

Brian Reynolds: I don't want to.

Brian Reynolds: Totally specific on this but.

Brian Reynolds: The fees on Lpg's are considerably less than what we're seeing today.

Brian Reynolds: Don't think anybody is going to go out there and try to justify a project based on values that we see today.

Brian Reynolds: We have capacity that we're contracting I think others have capacity that are contracting and then on the <unk> piece.

Brian Reynolds: It's a very competitive market.

Brian Reynolds: I would have a hard time taken enterprise would be in that market. If we haven't been.

Brian Reynolds: One of the first ones in that market.

Brian Reynolds: So so.

So so you couldnt build a greenfield terminal based on what we think the terminalling fees are going to be absolutely not okay.

Neel Mitra: Thank you. One moment for questions. Our next question comes from Neel Mitra with Bank of America. You may proceed. Hi, good morning.

Unknown Executive: So just don't foresee a lot of those lumpy projects coming with the exception of got it. Thank you. That's probably a three-year construction project, understood. And in terms of projects that are coming online near term for your Texas West product system, can you remind us how much of that is underwritten by third-party commitments versus open capacity that you hope to market and capture, especially in light of the fact that, you know, since you announced the project, one of your midstream competitors, who also has significant marketing capabilities, bought a huge, refined product system Hey, Theresa, it's Justin Kleiderer again.

Speaker Change: Great. Thanks, I appreciate all that.

Tug Hanley: Congratulations, Randy. The first question was on NGL exports and hitting a quarterly record. Could you maybe comment on the export dynamics right now, just with weaker PDH demand and the plants coming up slower than normal, but also lower NGL prices in the US and how that orb is trending for 2024? Yeah, this is Tug Hanley. So, we've had strong operational performance on our EHT asset, which has led to healthy volumes going across the dock. There's also been a decrease in freight values we've seen, which is continuing to support stronger FOB values. With respect to the weaker PDH margins on an international level, the PDH margins have improved, but there's still a lot of overcapacity, so necessarily weak margins don't necessarily lead to decreased NGL demand because the demand is still ultimately there. Got it. And then my second question is related to Bahia. And I was just wondering if you could maybe give some input as to where you can see additional volumes picked up. I believe Navitas isn't going through your system right now.

My follow up maybe just an update on the spot license and permit process.

Speaker Change: You alluded to some some some comments around LNG and maybe have some having some impacts on the upcoming U S elections, just kind of curious if we should.

Speaker Change: See any risks to the timeline around the spot licensing and permitting process relative to maybe expectations from last year.

Robert Sanders: This is Bob.

Speaker Change: Bob Brian I didn't.

Speaker Change: Didn't say anything about the elections by the way.

Speaker Change: Right now we haven't we've got a record of decision and I'll, let Bob tell you what else. We've got right now we don't see anything that should preclude us getting that license.

Unknown Executive: Doug may chime in on a piece of that as well, but, you know, as we develop the project, it's really, it really has developed into a rack marketing model. You know, we had the first phase of startup really impending, and the timing of the rest of it should be lined out in the deck. You know, but we've got significant interest. We've got 40 third-party contracts agreed to across the terminals, and we're signing up more seemingly daily. So people are just itching for it to come on.

Speaker Change: So where we are with <unk>, we have completed all of the requirements to receive the license. We are in constant contact with myriad as a matter of fact, we have seen a draft of the license, which they asked us to comment on which we've commented on and they've accepted our changes so.

Speaker Change: Everything is basically done we're just waiting on knowledge that we've got the life.

Speaker Change: Great to hear I'll leave it there enjoy the rest of your day and thanks again.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Neal Dingmann with true Securities You May proceed.

Neal Dingmann: Good morning, all thanks for the time and Randy Congrats and look forward to hearing what's next for you I can only imagine.

Neal Dingmann: My first question is on guys on marketing, specifically I'm disappointed gel capture some of the commodity price volatility experienced with this last I guess I'd call. It the January cold snap.

Unknown Attendee: But we do think, similar to Dixie and our legacy propane, long haul pipelines being sort of an uncontracted rack-based model, that that's the model that we're going to see on TW. Thank you. Thank you. One moment for a question. Our next question comes from Jeremy Tonet with JPMorgan Securities. You may proceed. Hi, good morning.

Neel Mitra: Maybe the lucid volumes will come up for recontracting and, kind of, later in the decade, and you could see some additional opportunities to pick up volumes that aren't contracted onto your system right now. Hey Neel, it's Justin Kleiderer. Yeah, so kind of like three buckets of Bahia that we think about first and foremost is our growing GMP footprint. So you think about a metric for every new gas plant we put on, we yield about 40 to 45,000 barrels a day of NGLs into Bahia. So we're growing our footprint both in Delaware and the Midland. So that's always the baseload as we think about Bahia.

Neal Dingmann: Perhaps in Oaxaca, the HFC spread.

Brent: Neil This is Brent.

Speaker Change: We were able to capture some there were some.

Speaker Change: Kind of puts and takes on that hole.

Speaker Change: A whole weather event, there were some operational issues that we had in Midland that or.

Brent: But are getting fixed.

But from a marketing perspective, there was there were some arbitrage arbitrage capture on our side.

Jeremy Bryan Tonet: Morning. And Randy, I want to wish you congratulations here, good luck with everything going forward. You will be missed, and thank you.

Brent: Pulled all of our great versus what you're saying.

Speaker Change: Okay, Great and then my second question just on the PTH plant just wondering it sounds like for the second quarter ROE you all mentioned a bit of operational challenges maybe with the reactor licenses issue I'm. Just wondering I think Randy you mentioned I think last quarter you thought they would maybe be more one off and just wondering if something <unk>.

Unknown Attendee: Thank you. And I just wanted to start off, I guess, with the recent Houston Ship Channel enhancements that we've seen over time here. I was wondering if you could comment on how that's impacted your LPG. Export Capabilities. Have you seen any kind of improvements there given the changes? Just curious how that has developed. Yeah, this is Bob Sanders. Late in the fourth quarter last year, the Houston pilots removed the daylight restriction on LPG ships.

Randy: Sure and maybe just talk about your sort of future view of the ops there.

Randy: This is Graham yes, we did have some operating issues in the fourth quarter.

Justin Kleiderer: And then on top of that, we have a robust set of third-party agreements. You know, we've got 40 connections on our wide grade system that gives us a lot of diversity to capture incremental third-party volumes as that market ebbs and flows. And we've got a good runway of contracts on those that get us to the back end of the decade without having to really worry about any contract roll-off. And then third, you know, our expectation is that Seminole won't be an NGL service once Bahia comes online.

Randy: <unk> plant.

Randy: Some of those are really.

Randy: Some of those were related to some construction related startup issues some.

Randy: Design issues at this point, we think we've got.

Randy: The unit is up and operating.

Randy: We're not quite at 100% capacity, but we've got line of sight on the fixes that we want to be.

Bob Sanders: So we can sell 24 hours a day, loaded or empty. And we are incrementally picking up the number of vessels we're bringing in to try to maximize the utilization of the refrigeration units that we've got right now. So we are seeing a direct benefit.

Randy: Taken place here soon and I think at that point, we can expect we will have.

Randy: Good operating unit all the other parameters of the unit.

Randy: We look at in terms of robustness and ability to maintain operations are really looking good right now there's just one one issue one more issue we've got to get past Opex will be what kind of a good unit there.

Speaker Change: Very good thanks for the details guys.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Justin Kleiderer: You add all those up, and that's kind of how we land on the capacity that we created out of the gate at $600. Finally, do you think we're through building processing plants up there? I don't think we're through. Okay, great. Thank you very much.

Speaker Change: Our next question comes from Tristan Richardson with Scotiabank you May proceed.

Tristan Richardson: Hi, Good morning, guys. Congrats to Randy we appreciate all the time you spent with us over the years.

Unknown Attendee: Just curious if that's a minor or maybe, you know, bigger expansion. And also, Tony, I guess I'm curious about thoughts on LPG pricing here. I guess there's a concern in the marketplace that LPG exports might be maxed out, and that could dislocate domestic pricing relative to international price markers.

Tristan Richardson: Mr <unk>.

Tristan Richardson: You guys have framed up the return of capital side for a long time.

Theresa Chen: Thank you. One moment for questions. Our next question comes from Theresa Chen with Sparkly, so please proceed. Morning.

Tristan Richardson: We've seen that payout ratio that adjusted payout ratio increase overtime and just curious with the stability you're seeing in the earnings base.

Randy Fowler: I'd like to echo the congratulations to Randy on his retirement after a stellar career. We wish you continued social progress and also congratulations to Libby and Michael. When we look at your organic project backlog, it's a robust set of opportunities. And as we look beyond 2025, just trying to, you know, think about what a run rate should be, knowing that you still do have some projects under development and some of them are sizable. Is that three or three plus billion dollar number a good run rate? Or how should we think about that? Yeah, Theresa, I'll start off, you know.

Tristan Richardson: And the stability you're seeing in.

Tristan Richardson: Capex sort of as you mentioned over the long term do you see that payout ratio changing meaningfully over time or is there a way to think about our long term target for that at adjusted cash flow ratio, particularly when you sit in such an advantaged position from a leverage standpoint.

Unknown Executive: So just wondering how you see that. I'll answer the first piece a little bit. We're seeing about a five to 7% gain at this point. I think on pricing. You've seen NGLs catch a bid here recently.

Tristan Richardson: Yeah.

Tristan Richardson: The.

Speaker Change: I'm thinking of how to frame that because you had quite a quite a bit in there.

Unknown Executive: I think some of what Bob mentioned has helped with pricing. As freights come off, there's been a benefit certainly to propane and butane on the flat price. If you look at the growth that Tony mentioned earlier, we have NGLs growing at a faster pace than crude oil. We're seeing it across our system. Storage is going to become increasingly valuable. These expansions don't come on until the 25-26 timeframe.

Speaker Change: Several of our peers in the energy sector have come in with a formulaic approach on returning capital and I think we've just been hesitant to do in doing that.

Speaker Change: Because we live in a very dynamic world.

Speaker Change: And opportunities come up and so really coming in and locking into a formula so much distribution and so much buyback.

Randy Fowler: We have $6.8 billion worth of projects under construction, and you know, again this year, it'll range from three and a quarter to $3.75 billion. 2025 is $3 billion. And then there's a little bit of a roll-off with that $6.8 billion that creeps over into... 2026. The one thing I would just note is that in that $6.8 billion, we've got two lumpy projects, being the Bahia Pipeline and also the export facility that we're building on the Neches River. And so if you and I come in and look forward,

Speaker Change: More often than not when I'm.

Speaker Change: We're seeing companies come in with those formulas, they're forever tweaking them or re sending them in.

Unknown Executive: So we expect the docks to remain at capacity, and then, ultimately, the flat price of NGLs will be reflective of that. Yeah, this is Todd.

Speaker Change: And they really have a short shelf life.

I really just come back and look at.

Speaker Change: Jim Jim went through.

Unknown Executive: I'll just add that we're actually seeing that already manifest itself on our spot. Dock values are upwards of double digits right now.

Speaker Change: Some of our history of returning capital for our first 25 years.

Speaker Change: To continue to come in and do that.

Brian Patrick Reynolds: That's very helpful. Thank you for that. Thank you. One moment for questions. Our next question comes from Brian Reynolds with UBS. You may proceed. Hi, good morning, everyone.

Speaker Change: As far as distribution growth I think you've seen over the last two or three years, we're back to mid single digit.

Speaker Change: Distribution growth, which is good to be there.

Speaker Change: And then we've been doing buybacks steadily.

Speaker Change: On this end.

Unknown Executive: And Randy, thanks again for all the time you spent with me in the community over the last 21 years. And thanks for leaving the team in good hands with Libby and Mike. Thank you, Brian. Maybe to start off on the NGL macro, Jim, on the last call, you kind of talked about competitive market dynamics, you know, right now, where EPD seems to be threading the needle of maximizing return while preventing some new entrants into the integrated NGL value chain. Well, I appreciate some of the opening remarks from Tony to Michael's question about Permian growth. Just kind of curious how we should think about maybe, you know, volume growth is going to be really attractive over the next few years, but kind of curious if we can talk about how transportation frack and export rates should look relative to, you know, what they've been the past decade. Really attractive. Thanks. Hey Brian, this is Brent. I mean, it kind of varies based on the service. I think everything that you see on the processing side, certainly on the kind of long haul pipeline, is a new build economic type number. Fractionation is probably in that group too.

Speaker Change: I think.

Speaker Change: Obviously, we come into an era, where we're not spending as much capex.

Speaker Change: Then one more.

Speaker Change: We will have more flexibility to come in and do buybacks there'll still be opportunistic buybacks and I think you saw that when the third quarter. The unit price was really pretty strong and we just opted.

Randy Fowler: The expectation will continue to see build out with natural gas processing, with the gas gathering and compression that supports that. I keep coming back that I really think that going forward, absent a spot, that we're more in the $2 billion range. That's where I keep coming out. Just again, because we've had some lumpy projects. You know, we just put PDH 2 into service in 2023. That was another lumpy project. I don't foresee a lot of those lumpy projects coming, with the exception of... I think with Spock, that's probably a three-year construction process.

Speaker Change: Not to come in and do any buybacks in the third quarter of 2023.

Speaker Change: When we got into year end tax selling and solve the weakness in 2024, we executed buybacks at a better level, even considering the distribution.

Speaker Change: That we the November.

Speaker Change: Distribution, we still executed at a better buyback level.

Speaker Change: In the fourth quarter than what was available in the third quarter. So I think we will continue to be opportunistic going forward.

Speaker Change: And then I think we just need to see what kind of opportunities that we have in the future.

Speaker Change: Yes.

Speaker Change: Again, I come back in and I don't know of another midstream.

Speaker Change: Maybe other than.

Speaker Change: What's the Canadian.

Speaker Change: Correct.

Speaker Change: Our.

Speaker Change: That has.

Speaker Change: Successfully returned capital the way that we have over the last 25 years.

Speaker Change: No.

Speaker Change: That was long winded, but.

Speaker Change: I hope that helps.

Speaker Change: I appreciate it Randy and then maybe just on the <unk> question to ask in a different way I think given the pace of the NGL pipeline volumes today, plus Tony's forecast and Justin's earlier comments.

Justin Kleiderer: understood. And in terms of projects that are coming online near term, for your Texas West product system, can you remind us how much of that is underwritten by third-party commitments versus open capacity that you hope to market and capture, especially in light of the fact that, you know, since you announced the project, one of your midstream competitors, who also has significant marketing capabilities, bought a huge, refined product system and is also looking to close PATU and PAT4R Hey Teresa, it's Justin Kleider again.

Unknown Executive: I think when you look across NGL Docs and you look at the entrants that are in that space right now, I think anybody who wants to be in that space is going to have to compete with Brownfield Economics. And if you look at where FOB values are going for both ethane and LPG, it is incredibly, incredibly difficult to make a project accretive that's a new entrant in that space. I'll put it directly on.

Speaker Change: Is there an opportunity for the.

Speaker Change: The capacity of the heat to expand as you progressed through construction as we go into 'twenty five or are we seeing enough competing pipes in the market where this is this should be pretty balanced and 25.

Speaker Change: Yes, Tristan this is Justin.

Justin: We picked 600 for the reasons before but you think of a 30 inch pipeline. If it's fully horsepower that could do upwards of $1 million.

Speaker Change: We're trying to be capital efficient about how we phase into it. So if our forecasts are right and we need more than what we have today, we can add pumps upsizing.

Unknown Executive: While TUG says on our spot deals we have double-digit volatility values, what can you do a five-year deal on? I think when you look at, I don't want to be totally specific on this, but... You know, the fees on LPGs are considerably less than what we're seeing today. I don't think anybody's gonna go out there and try to justify a project based on values that we see today.

Speaker Change: Appreciate it thank you guys very much.

Speaker Change: Thank you.

Justin Kleiderer: Doug may chime in on a piece of that as well, but as we develop the project, it really has developed into a rack marketing model. We had the first phase of startup really impending, and the timing of the rest of it should be lined out in the deck. You know, but we've got significant interest. We've got 40 third-party contracts agreed to across the terminals, and we're signing up more seemingly daily. So people are just itching for it to come on.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Keith Stanley with Wolfe Research you May proceed.

Keith Stanley: Hi, good morning, and congrats as well Randy you've definitely been one of the most helpful and friendly IR.

Keith Stanley: People that I've got a chance to work with thank you.

Keith Stanley: I wanted to start just on the outlook the outlook for the year, so understanding you're not giving the employee goal for EBITDA for 2024.

Jeremy Bryan Tonet: But we do think, similar to Dixie and our legacy propane long haul pipelines being sort of an uncontracted rack-based model, that that's the model that we're going to see. Thank you. One moment for a question. Our next question comes from Jeremy Tonet with JPMorgan Securities. You may proceed.

Keith Stanley: At a high level, though you had a lot of momentum exiting 2023, and your results yet a fair amount of capital entering service with PVH to in a couple of plants.

Unknown Executive: Because we have capacity that we're contracting, I think others have capacity that they are contracting, and then on the FAA piece, that's a very competitive market. I would have a hard time thinking Enterprise would be in that market if we hadn't been, you know, one of the first ones in that market. So you couldn't build a Greenfield terminal based on what we think the terminaling fees are going to be? Absolutely

Youre still constructive on volumes is it fair to say 2024 should be a relatively stronger growth year or are there any headwinds or things you would point to.

Keith Stanley: Versus 2023 that could be could be an offset.

Jeremy Bryan Tonet: Morning. And Randy, I want to wish you congratulations here. Good luck with everything going forward. You will be missed, and thank you. Thank you.

Keith Stanley: I think Tony this is Jim I think 2020 shaping up to be a better year in 2023.

Okay.

Jim: It's not just the assets we brought on were seeing.

Jim: For example, and <unk> got some information on processing margins.

Brian Patrick Reynolds: Great, thanks. I appreciate all that. You know, as my follow-up, maybe just an update on the spot license and permit process. You alluded to some comments around LNG that might have some impacts on the upcoming US elections. Just kind of curious if we should see any risks to the timeline around the spot licensing and permitting process relative to maybe expectations from last. This is Bob Sanders. Hang on, Bob. Brian, I didn't, I didn't say anything about the elections, by the way.

Jim: What is not fee based is looking better you might want to address yes. If you just look at the fourth quarter on what we have floors in our processing contract, especially around the Midland Basin.

Robert Sanders: The recent Houston Ship Channel enhancements that we've seen over time here, I'm wondering if you could comment on how that's impacted your LPG export capabilities. Have you seen any kind of improvement there given the changes? Just curious how that has developed. Yeah, this is Bob Sanders. Late in the fourth quarter last year, the Houston pilots removed the daylight restriction on LPG ships.

Jim: So in the fourth quarter I think those floors.

Jim: We're at around they were all hit at about 97% of those contracts hit the floor.

Jim: In fact December was 100%.

Jim: So as things get more constructive on gas and we'll see if that happened certainly we were there were some benefits in January.

Jim: We're seeing some benefits.

Jim: In the current months.

Robert Sanders: So we can sail 24 hours a day, loaded or empty. And we are gradually picking up the number of vessels we're bringing in to try to maximize the utilization of the refrigeration units that we've got right now. So we are seeing a direct benefit, got it. Just curious if that's a minor or maybe you know bigger uh, expansion. And also, Tony, I guess with your thoughts on lpg pricing here, I guess there's a concern in the marketplace that lpg exports might be maxed out, and that could dislocate domestic pricing relative to international price markers, so just wondering how you see that. I' I think on pricing... You've seen NGLs catch a bid here recently.

Jim: On Ngls, but that.

Jim: That number is probably around 62% in January they hit the floor. So I think.

Bob Sanders: Right now, we haven't, we've got a record of decision, and I'll let Bob tell you what else we have, but right now, we don't see anything that should preclude us getting that license. So, where we are with MIRAD, we have completed all the requirements to receive the license. We're in constant contact with MIRAD. As a matter of fact, we have seen a draft of the license which they asked us to comment on, which we've commented on, and they have accepted our changes.

Jim: From a processing standpoint, there's definitely benefits across the portfolio.

Jim: But we'll see.

Speaker Change: Okay. Thank you.

Speaker Change: It seems like each quarter, we transport more and more hydrocarbons.

Speaker Change: Yes.

Speaker Change: Right, Yeah, Q4 volumes are definitely strong.

Speaker Change:

Speaker Change: And Keith This is Keith this is Randy I think the other thing is just as you.

Randy: I think we've again, we've got a pretty good track record that if you look out over time.

Randy: Our average return on capital has been I mean, it's and when you look at the total company is range from 10% to 13% and then when you come in and you look at the.

Bob Sanders: So, everything is basically done. We're just waiting for the knowledge that we've got the license. Great to hear. I'll leave it there. Enjoy the rest of your day. Thanks again.

Randy: Capex specifically.

Randy: The projects that we're putting into service and the level of capital expenditures that we have.

I think what that translates to over a three four year period is probably mid single digit EBITDA growth, you're not going to be able to use a ruler on that number but thats about what it what it works out to be and then.

Neal David Dingmann: Thank you. One moment for questions. Our next question comes from Neal Dingmann with Truist Securities. Morning, all. Thanks for the time. And Randy, congrats, and I look forward to hearing what's next for you. I can only imagine. My first question is for the guys in marketing, specifically, I'm just wondering if you captured some of the commodity price volatility experience with this last, I guess I'd call it the January cold snap, you know, perhaps in Oaxaca or the HSE spreads? Uh, Neal, this is Brent.

Robert Sanders: I think some of what Bob mentioned has helped with pricing. As freights come off, there's been a benefit certainly to propane and butane on the flat price. If you look at the growth that Tony mentioned earlier, we have NGLs growing at a faster pace than crude oil. We're seeing it across our system. Storage is going to become increasingly valuable. These expansions don't come on until the 25, 26 timeframe.

Randy: Then you may have some variability in and around that.

Randy: A number but I think if you come back in and just.

Randy: Look at what we've what we've been able to do in the past and looked at the amount of capital investment that we're making I think thats, where it would take to the other.

Randy: The thing is look at.

Randy: Our people are relentless.

Randy: And visiting customers.

Randy: Getting new deals have been shocked at the appetite for example, our ethane export dock.

Robert Sanders: So we expect the docs to remain at capacity, and then, ultimately, the flat price of NGLs will be reflective of that. Yeah, this is Ted.

Randy: So we'll.

Ted Durbin: I'll just add that we're actually seeing that already manifest itself on our spot. Doc values are upwards of double digits right now.

Randy: We're probably going to mill new processing plants in the.

Randy: In the Permian and I would expect that we're going to fill up our ethane export docks and our LPG dock. So the other thing we're seeing is more crude flows to Houston, So we're seeing more crude across our docks.

Unknown Executive: Um, we were able to capture some, there were some... kind of put some takes on that whole, the whole weather event. There were some operational issues that we had in Midland that are getting fixed. But from a marketing perspective, there was some arbitrage arbitrage capture on our side. Right. Right. Transcribed by https://otter.ai. That's great.

Brian Reynolds: That's very helpful. Thank you for that. Thank you. One moment for questions. Our next question comes from Brian Reynolds with UBS. Hi, good morning, everyone.

Speaker Change: That's all very helpful and Tim if I can kind of follow up on that last point.

Brian Reynolds: And Randy, thanks again for all the time you spent with me in the community over the last 21 years. And thanks for leaving the team in good hands with Libby and Mike. Thank you, Brian. Maybe I'll start off on the NGL macro.

Speaker Change: NGL export volumes were very strong in Q4, and you noted that removal of the daylight restriction is helping you.

Tim: Can you give a sense of how close the company has to its capacity based on that Q4 export number are you able to keep increasing exports. This year before some of the expansion start up in 2025.

Brent B. Secrest: Jim, on the last call, you kind of talked about competitive market dynamics, you know, right now, where EPD seems to be threading the needle of maximizing return while preventing some new entrants into the integrated NGL value chain. Well, I appreciate some of the opening remarks from Tony to Michael's question about Permian growth. Just kind of curious how we should think about maybe, you know, volume growth is going to be really attractive over the next few years, but kind of curious if we can talk about how transportation fracking export rates should look relative to, you know, what they've been the past decade, really attractive. Thanks. Hey Brian, this is Brent. I mean, it kind of varies based on the service.

Unknown Attendee: And then my second question, just on the PDH plans, just wanted to sound like for the second quarter, you all mentioned a bit of operational challenges, maybe with the reactor and license issues. I'm just wondering, Randy, you mentioned, I think, last quarter, you thought they'd maybe be more one-offs, and just wondering, has something changed here? And maybe just talk about your sort of future view of the operations there. Graham.

Tim: And I think if you look at Ngls as a whole and maybe crude oil yes.

Tim: You look at LPG.

Tim: Things are going to be tight in terms of dock space on LPG that gets resolved.

Tim: Blue mid next year.

Tim: But.

Tim: 24, and maybe part of 'twenty five.

Tim: LPG is going to.

Tim: We're gonna be.

Tim: Pretty tight.

Tim: You have something.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Jean Ann Salisbury with Bernstein, You May proceed.

Speaker Change: Good morning, do you forecast Permian processing utilization staying as tight as it is now over the next couple of years.

Unknown Executive: Yes, we did have some operating issues in the fourth quarter with the pH plant, and some of those are related. Some of those related to some construction-related startup issues and some design issues. At this point, we think we've got the unit up and operating. We're not quite at 100% capacity, but we've got line of sight on the fixes that will be taking place here soon, and I think at that point, we can expect we'll have a good operating unit. All the other parameters of the unit that we look at in terms of robustness and ability to maintain operation are really looking good right now. There's just one more issue we've got to get past. Looking at a good unit there.

Speaker Change: Said another way is it a stretch to say that the timing of processing coming on.

Speaker Change: The pace of Permian growth in your view.

Speaker Change: We will take that.

Speaker Change: Jean Ann this is Brian.

Brent B. Secrest: I think everything that you see on the processing side, certainly on the kind of long haul pipeline, is a new build economic type number. Fractionation is probably in that group too. I think when you look across the industry and Gail Dox, and you look at the entrants that are in that space right now, I think anybody who wants to be in that space is going to have to compete with Brownfield Economics. And if you look at where FOB values are going for both ethane and LPG, it is incredibly, incredibly difficult to make a project accretive that's a new entrant While Tuggs says, on our spot deals, we have double-digit volatility values, what can you do a five-year deal at? I think when you look at, I don't want to be totally specific on this, but... You know, the fees on LPGs are considerably less than what we're seeing today. I don't think anybody's going to go out there and try to justify a project based on the values that we see today.

Jean Ann Salisbury: I expect it to stay tight when we look at our build out and the contracts that come on that.

Speaker Change: May be a short little window that.

Speaker Change: Theres excess capacity, but it fills up very quickly.

Speaker Change: While Leila and Tony for his forecast, but what Tony has told us in years past.

Speaker Change: Certainly come through if not it's been even more prolific in them.

Speaker Change: When you look at it.

Speaker Change: Capacity right now I think there is gas it's being held back in the basin, it's waiting on compression.

Speaker Change: It's waiting on processing capacity.

Speaker Change: Okay.

Speaker Change: So it's not just processing some of its gathering compression in the field that's behind.

Speaker Change: So once we can see that bottleneck kind of get fixed oilseed processing get full very quickly.

Unknown Executive: Very good. Thanks for the details, guys. Thank you. One moment for questions. Our next question comes from Tristan Richardson with Scotiabank. Hi, good morning, guys. Congratulations to Randy. We appreciate all the time you spent with us over the years. Mr. Fowler, you.

Speaker Change: That's very helpful. Thank you.

Speaker Change: Then one more.

Speaker Change: Discussion of upcoming Haynesville gas pipeline, possibly being delayed due to legal issues and is there any further expansion potential on acadian or is that maxed out here.

Tristan James Richardson: You guys have framed up the return of capital slide for a long time, and we've seen that payout ratio, that adjusted payout ratio, increase over time. And just curious with the stability you're seeing in the earnings base and the stability you're seeing in CapEx, sort of, as you mentioned, over the long term. Do you see that payout ratio changing meaningfully over time? Or is there a way to think about a long-term target for that adjusted cash flow ratio, particularly when you sit in such an advantaged position from a leverage standpoint? I'm thinking of how to frame that because you had quite a bit in there. Several of our peers in the energy sector have come in with a formulaic approach to returning capital, and I think we've just been hesitant to do it, doing that, because we live in a very dynamic world, and opportunities come up, so really coming in and locking into a formula of so much distribution and so much buyback. More often than not, when I've seen companies come up with those formulas, they're forever tweaking them or rescinding them, and they really have a short shelf life.

Speaker Change: We're maxed out after our last expansion I'd say the only benefit.

Speaker Change: We may be a benefactor of that project slate.

Speaker Change: However, haynesville is flat.

Speaker Change: Thanks, a lot and I'll, just say that Tony.

Speaker Change: Yeah.

Speaker Change: There's so much discussion about the haynesville and what's going to happen in honestly.

Speaker Change: Somewhat befuddled by it and I think that's the right term.

Speaker Change: We've got LNG coming on in the Louisiana area.

Speaker Change: Call. It is four five to five Bcf over the next two years.

Speaker Change: Okay.

Speaker Change: And.

Speaker Change: That's a big number.

Speaker Change: It has there is nothing that the whole permitting thing that has recently happened and Jim addressed so well. This morning impacts that so we think that our we talk like Louisiana in the Haynesville has the chance to go to Hell in a handbasket.

Brent B. Secrest: Because we have capacity that we're contracting, I think others have capacity that they are contracting, and then on the FAA piece, that's a very competitive market. I would have a hard time thinking Enterprise would be in that market if we hadn't been, you know, one of the first ones in that market. So you couldn't build a Greenfield terminal based on what we think the terminaling fees are going to be? Absolutely

Speaker Change: I'm, sorry, I just don't see it.

Speaker Change: Unless I'm missing something.

<unk>.

Speaker Change: The haynesville last but not least test.

<unk> is one of the primary basins for a massive amount of long term storage of gas reserves no question about it.

Speaker Change: We still see it.

Speaker Change: As an ideal in kind of a cornerstone basis cornerstone basin for us relative to natural gas.

Speaker Change: Great. Thanks for that Tony and thank you Randy for all of your help over the years and you'll be missed that's all for me.

Randy Burkhalter: I really just want to come back and look at, you know, Jim went through some of our history of returning capital for our first 25 years. You know, we're going to continue to come in and do that as far as distribution growth is concerned. I think, you know, you've seen over the last two or three years, we're back to mid-single digit distribution growth, which is good to be there. I think, obviously, if we come into an era where we're not spending as much capital, then we'll have more flexibility to come in and do buybacks, but they'll still be opportunistic buybacks. And I think you saw that, you know, when the third quarter came around, the unit price was really pretty strong, and we just opted not to come in and do any buybacks in the third quarter of 2023.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Brian Reynolds: Great, thanks, I appreciate all that. You know, as my follow-up, maybe just an update on the spot license and permit process. You know, you alluded to some comments around LNG that maybe have some impacts on the upcoming US elections. Just kind of curious if we should see any risks to the timeline around the spot licensing and permitting process relative to maybe expectations from last time. Hang on Bob, Brian; I didn't say anything about the elections, by the way. Right now, we haven't, we've got a record of decision, and I'll let Bob tell you what else we have, but right now, we don't see anything that should preclude us from getting that license.

Speaker Change: Our next question comes from Spiro <unk> with Citi. You May proceed.

Spiro: Thanks, operator.

Spiro: Any team two very quick follow ups from me one Randy just want to go back to the distribution growth and follow up on <unk> question.

Spiro: The cadence the last call. It two years or so has been an increase in bad every few quarters tracking around that 5% annual growth I know you'd like to keep us guessing so as we think going forward.

Spiro: Opportunistic is the distribution growth from here or is that something we should really kind of expect going forward.

Spiro: Yes.

Speaker Change: Yes, Spiro again I'll just go back to our track record, we don't like to get out in front run our board.

Speaker Change: Sure.

Speaker Change: Again, I think with the.

Speaker Change: With the Capex with the Capex, we're deploying and the return on capital that we're expecting to get.

Speaker Change: Coming in and we've been increase in distribution of 25 years in a row.

Speaker Change: Feel pretty good about 26 so.

Jim Teague: So where we are with MIRAD, we have completed all the requirements to receive the license. We're in constant contact with MIRAD. As a matter of fact, we have seen a draft of the license which they asked us to comment on, which we've commented on, and they have accepted our changes.

Speaker Change: We've been doing it around.

Speaker Change: Mid single digits.

Speaker Change: Alright fair enough second one just around M&A you all purchase of natural gas storage assets in the quarter pretty small for you. So I'm going to read into it too much but just curious is this sort of at the beginning of a bigger push into natural gas storage or is it more opportunistic as you look at the rest of your asset base or the more opportunities like that.

Unknown Executive: But when we got into year-end tax selling and saw the weakness in 2024, we executed buybacks at a better level, even considering the distribution that we, the November distribution, we still executed at a better buyback level in the fourth quarter than what was available in the third quarter. So I think we'll continue to be opportunistic going forward. And then I think we just need to see what kind of opportunities we have in the future. But, but, you know, again, I come back in, and I don't know of another midstream, maybe other than, What's Canadian? or preeminent, that has successfully returned capital the way that we have over the last 25 years.

Speaker Change: On.

Speaker Change: On the Wilson storage that we've leased for years and years and then the contract they have the right to put it to us and they put it to us and it was a reasonable price. So we werent upset.

Robert Sanders: So everything is basically done. We're just waiting for the knowledge that we've got the license. Great to hear. I'll leave it there. Enjoy the rest of your day. Thanks again.

Speaker Change: And.

Speaker Change: And that was legacy going back to Gulf Terra energy partners, we sort of inherited that when we when we acquired <unk>.

Brian Reynolds: Thank you. One moment for questions. Our next question comes from Neal Dingman with Truist Securities. Morning, all. Thanks for the time. And Randy, congrats and look forward to hearing what's next for you. I can only imagine. My first question is about the guys in marketing.

Speaker Change: Okay.

Speaker Change: Great. Thanks, guys I will save my project 10 question for the April call. Thanks, everyone.

Speaker Change: Josh This is Randy let me cut and we have time for one more question.

Speaker Change: Thank you.

Randy: One moment for questions.

Randy: And our next question comes from John <unk> with Goldman Sachs. You May proceed.

Hey, everyone. Good morning, Thanks for the time.

John: I just wanted to touch one more time on.

Neal Dingman: Specifically, I'm just wondering if you captured some of the commodity price volatility experienced with this last, I guess I'd call it the January cold snap, you know, perhaps in Oaxaca or the HSE spread? Neil, this is Brent. We were able to capture some, there were some... kind of put some takes on that whole, the whole weather event. There were some operational issues that we had in Midland that are getting fixed. But from a marketing perspective, there was some arbitrage, arbitrage capture on our side. Great. Thank you. That's right.

John: On the export side I understand that.

Tristan James Richardson: So, that was long-winded, but I hope that helps. Appreciate it, Randy. And then maybe just on the Bahia question, to ask it another way, I think, you know, given the pace of NGO pipeline volumes today, plus Tony's forecast and Justin's earlier comments, Is there an opportunity for capacity that he had to expand as you progress through construction as we go into 2025, or are we seeing Heating Pipes in the Market, where this should be pretty balanced in 2025? Yeah, Tristan, we, this is Justin. We picked 600 for the reasons before, but you know, you think of a 30 inch pipeline, if it's fully horsepower, it could do upwards of a million. But we're trying to be capital efficient about how we phase it into it. So if our forecasts are right, and we need more than what we have today, we can add pumps on it to upsize it. Thank you, guys very much. Thank you.

John: F O b spreads out from your premiums are really high right now.

John: But you talked about kind of outer coming down further is it really just.

John: We are going to see these rates stay high until yours and your competitors' projects come online in 2025 or would you expect some benefit there once once our F. The Panama Canal starts to clear up.

John: Okay.

John: Yes, we expect the rates to remain.

John: Elevated until the expansion comes online.

John: From us and our competitors call that mid 'twenty five.

John: With respect to the Panama now.

John: Issues and even issues in the Red Sea really haven't seen that.

John: Impact of Fob value too much the VLCC fleet has done a really good job of repositioning itself has over 380 vlccs on the water to help mitigate those issues in fact as I mentioned earlier, we've seen freight come down so don't really see that impacting the F&B values too much. Let's now says how many vlccs came on.

Neal Dingman: That's great. And then my second question, just on the PDH plans, just wanted to sound like for the second quarter row, you all mentioned a bit of operational challenges, maybe with the reactor and license issues. I'm just wondering, I think, Randy, you mentioned last quarter that you thought they'd maybe be more one-offs and just wondering, has something changed here? And maybe just talk about your sort of future view of the operations there. Graham, yes, we did have some operating issues in the fourth quarter with the PDH plant.

John: <unk> three and how many do we expect in 'twenty four yes call. It around north of 40, Vlccs came online in 2023, and they're going to be another 22, or so coming online in 'twenty four.

Keith T. Stanley: One moment for questions. Our next question comes from Keith Stanley with Wolf Research. You may proceed. Hi, good morning.

Speaker Change: Alright, Thats, great appreciate that and maybe just one more clarification from earlier I appreciated the color on the fee floors on processing.

Unknown Attendee: And congratulations as well, Randy, you've definitely been one of the most helpful and friendly IR people that I've gotten a chance to work with. Why don't we start just on the outlook for the year? So understanding you're not giving the employee goal for EBITDA for 2024. At a high level, though, you had a lot of momentum going into 2023. In your results, you have a fair amount of capital entering service with PDH2 and a couple of plans. You're still constructive on volumes. Is it fair to say 2024 should be a relatively stronger growth year? Or are there any headwinds or things you would point to versus 2023?

Speaker Change: In the Permian just one thing we wanted to try to frame up I mean, if we look year over year Permian processing volumes are up about half a b, but margins effectively flat.

Speaker Change: Just curious if you can comment is that all commodity impact or is there some kind of you know.

Graham: Some of those are related, some of those related to some construction-related startup issues, some design issues. At this point, we think we've got the unit up and operating. We're not quite at 100% capacity, but we've got line of sight on the repairs that will be taking place here soon. And I think at that point, we can expect we'll have a good operating unit. All the other parameters of the unit that we look at in terms of robustness and ability to maintain operation are really looking good right now. There's just one more issue we've got to get past. Looking at a good unit there.

Speaker Change: Underlying deflation on the fee side as well.

Speaker Change: It's all commodity.

Speaker Change: Yes.

Speaker Change: Alright makes sense that's it.

Speaker Change #100: Thanks, Ken.

Speaker Change #100: Thank you I would now like to turn the call back over to Randy Burkhalter for any closing remarks.

John Randy Burkhalter: Thank you Josh.

John Randy Burkhalter: Before we close out I'd like to thank.

John Randy Burkhalter: Randy.

John Randy Burkhalter: The comments in the offer for me Jim.

And Ah.

John Randy Burkhalter: And many thanks to all of you have worked with through the years.

John Randy Burkhalter: [laughter].

John Randy Burkhalter: Okay.

John Randy Burkhalter: Literally motions.

Unknown Executive: That could be could be an offset. Jim, I think 2024 is shaping up to be a better year than 2023. I know it's not just the assets we brought on. We're seeing, for example, Brent has some information; our processing margins on what is not fee-based are looking better. You might want to address that. Yeah, if you just look at the fourth quarter on what, you know, we have floors in our processing contracts, especially around the Midland Basin. So in the fourth quarter, I think those floors were at around 97% of those contracts hit the floor. In fact, December was 100%.

John Randy Burkhalter: Hi.

John Randy Burkhalter: Yes.

John Randy Burkhalter: Thank you.

Graham: Very good. Thanks for the details, guys. Thank you.

John Randy Burkhalter: It doesn't.

John Randy Burkhalter: Okay.

Speaker Change #101: I guess with that we'll end the call. Thank you everyone for your participation.

Tristan Richardson: One moment for questions. Our next question comes from Tristan Richardson with Scotiabank. Hi, good morning guys.

Speaker Change #102: Thank you Greg.

Speaker Change #103: Thank you for your participation you may now disconnect.

Tristan Richardson: Congratulations to Randy. We appreciate all the time you've spent with us over the years. Mr. Fowler, you guys have framed up the return of capital slide for a long time, and we've seen that payout ratio, that adjusted payout ratio, increase over time. And just curious, with the stability you're seeing in the earnings base and the stability you're seeing in CAPEX, sort of, as you mentioned, over the long term. Do you see that payout ratio changing meaningfully over time? Or is there a way to think about a long-term target for that adjusted cash flow ratio, particularly when you sit in such an advantaged position from a leverage standpoint? Yeah, um...

Speaker Change #103: [music].

Speaker Change #103: Okay.

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Okay.

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Unknown Executive: So as things get more constructive on gas, and we'll see if that happens, certainly, there were some benefits in January. We're seeing some benefits in the current month on NGLs, but that number is probably around 62% in January; they hit the floor. So I think, from a processing standpoint, there are definitely benefits across the portfolio that we'll see. It seems like each quarter we transport more and more hydrocarbons. Right, yeah, Q4 volumes are definitely strong. Hey, Keith, this is Randy. I think the other thing is, you know, just as you and I have a pretty good track record, if you look out over time, our average return on capital has been, I mean, when you look at the total company, it's ranged from 10 to 13%. And then when you come in and you look at the capex, specifically, the projects that we're putting into service and the level of capital expenditures that we have, I think Now, you're not gonna be able to use a ruler on that number.

Speaker Change #103: [music].

Randy Fowler: The, I'm thinking of how to frame that because you had quite a bit in there. You know, several of our peers in the energy sector have come in with a formulaic approach to returning capital, and I think we've just been hesitant to do it, doing that, because we live in a very dynamic world, and opportunities come up, so really coming in and locking into a formula of so much distribution and so much buyback. More often than not, when I've seen companies come up with those formulas, they're forever tweaking them or rescinding them, and they really have a short shelf life. I really just want to come back and look at, you know, Jim went through some of our history of returning capital for our first 25 years.

Speaker Change #103: Yes.

Speaker Change #103: Okay.

Speaker Change #103: Dan.

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Randy Fowler: You know, we're going to continue to come in and do that as far as distribution growth is concerned. I think, you know, you've seen over the last two or three years, we're back to mid-single-digit distribution growth, which is good to be there. And then we've been doing buybacks steadily on this. You know, I think if we come into an era where we're not spending as much capital... And, you know, we'll have more flexibility to come in and do buybacks. They'll still be opportunistic buybacks.

Speaker Change #103: [music].

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Randy Fowler: And I think you saw that, you know, in the third quarter, the unit price was really pretty strong, and we just opted not to come in and do any buybacks in the third quarter of 2023. But when we got into year-end tax selling and saw the weakness in 2024, we executed buybacks at a better level; even considering the distribution that we, the November distribution, we still executed at a better buyback level in the fourth quarter than what was available in the third quarter. So I think we'll continue to be opportunistic going forward. And then, I think we just need to see what kind of opportunities we have in the future. But again, I come back in, and I don't know of another midstream, um, maybe other than uh, What's the Canadian?

Speaker Change #103: Yes.

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Randy Burkhalter: But that's about what it works out to be. And then, you know, then you may have some variability in and around that, that kind of number. But I think if you come back in and just look at what we've done in the past and look at the amount of capital investment that we are making, I think that's where it would take you. The other thing is look at our people. They are relentless in visiting customers and getting new deals. I've been shocked at the appetite, for example, for our ethane export. And so, so. We're probably going to build new processing plants in the Permian and in Asia. And I would expect that we're going to fill up our ethane export docks and our LPG docks. The other thing we're seeing is more crude flows to Houston. So we're seeing more crude across our, Jim, if I can kind of follow up on that last point.

Speaker Change #103: Okay.

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Speaker Change #103: Sure.

Randy Fowler: I'm going to have... that has successfully returned capital the way that we have over the last 25 years. So, that was long-winded, but. I hope that helps, appreciate it Randy, and then maybe just on the Bahia question to ask it a different way. I think you know given the pace of NGO pipeline volumes today plus Tony's forecast and Justin's earlier comments, Is there an opportunity for Capacity Vahid to expand as you progress through construction as we go into 2025, or are we seeing a Yeah, Tristan, we, this is Justin. We picked 600 for the But you know, if it's fully hp, it could do upwards of a million.

Justin Kleiderer: But we're trying to be capital efficient about how we phase into it. So if our forecasts are right, and we need more than what we have today, we can add pumps on it to upsize. Thank you, guys very much. Thank you.

[music].

Keith Stanley: One moment for questions. Our next question comes from Keith Stanley with Wolf Research. You may proceed. Hi, good morning, and congratulations as well, Randy. You've definitely been one of the most helpful and friendly people I know.

Speaker Change #103: Yes.

Keith Stanley: Thank you to all of the people that I've gotten the chance to work with. Why don't we start just on the outlook for the year? So, understanding that you're not giving the employee goal for EBITDA for 2024. At a high level, though, you had a lot of momentum going into 2023.

Speaker Change #103: Yes.

Speaker Change #103: Okay.

Speaker Change #103: [music].

Speaker Change #103: Thanks.

Jim Teague: In your results, you have a fair amount of capital entering service with PDH 2 and a couple of plans. You're still constructive on volumes. Is it fair to say 2024 should be a relatively stronger growth year, or are there any headwinds or things you would point to versus 2023 that could be an offset? Jim, I think 2024 is shaping up to be a better year than 2023.

Speaker Change #103: [music].

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Jim Teague: It's not just the assets we brought on. We're seeing, for example, Brent has some information; our processing margins on what is not fee-based are looking better. You might want to address that. Yeah, if you just look at the fourth quarter on what, you know, we have floors in our processing contracts, especially around the Midland Basin. So in the fourth quarter, I think those floors were at around 97% of those contracts hit the floor. In fact, December was 100%.

Unknown Executive: The NGLX 4 volumes were very strong in Q4, and you noted the removal of the daylight restrictions helped you. Can you give a sense of how close the company is to its capacity based on that Q4 export number? Are you able to keep increasing exports this year before some of the expansions start up in 2025? I think if you look at NGLs as a whole, and maybe crude oil, yes.

Speaker Change #103: Yes.

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Sure.

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Unknown Executive: If you look at LPG, I think things are going to be tight in terms of dock space on LPG. That gets resolved probably mid-next year. But for our 24 and maybe part of 25, LPG is going to be pretty tight. You have something?

Speaker Change #103: Okay.

Brent B. Secrest: So as things get more constructive on gas, we'll see if that happens. Certainly, there were some benefits in January, and we're seeing some benefits in the current month on NGLs. That number is probably around 62% in January that hit the floor, so I think, From a processing standpoint, there's definitely benefits across the portfolio that we'll see. It seems like each quarter we transport more and more hydrocarbon. Right, yeah, Q4 volumes are definitely strong. And Keith, this is, hey Keith, this is Randy.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Yes.

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Unknown Executive: Thank you. One moment for questions. Our next question comes from Gina in Salisbury with Bernstein. You may proceed. Hi, good morning.

Speaker Change #103: Okay.

Jean Ann Salisbury: Do you forecast Permian processing utilization staying as tight as it is now over the next couple of years? Said another way, is it a stretch to say that the timing of processing coming on will dictate the pace of Permian growth in your view? Oof, take that. Hi there, Jean, and this is Brent. I expect it to stay tight.

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Unknown Executive: You know, when we look at our build out and the contracts that come on, there may be a short little window when there's excess capacity, but it fills up very quickly. We'll lean on Tony for his forecast. But what Tony has told us in years past has certainly come true. If not, it's been even more prolific. And then When you look at the capacity right now, I think there is gas that's being held back in the basin. It's waiting for compression, and it's waiting for processing capacity.

Speaker Change #103: Yes.

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Randy Fowler: I think the other thing is, you know, just as you and I have a pretty good track record that if you look out over time, our average return on capital has been, I mean, when you look at the total company, it's ranged from 10 to 13 percent. And then when you come in and you look at the CAPEX, specifically the projects that we're putting into service and the level of capital expenditures that we have, I think what that translates to over a three, four-year period is probably mid-single-digit, even double-digit growth. Now, you're not going to be able to use a ruler on that number, but that's about what it works out to be, and then you may have some variability in and around that kind of number, but I think if you go back in and just look at what we've been able to do in the past and look at the amount of capital investment that we're making, I think that's where it would take you.

Speaker Change #103: Yes.

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Unknown Executive: That's exactly what I was going to say. It's not just processing. Some of it's gathering compression in the field that's behind. So once we see that bottleneck kind of get fixed, we'll see processing get full very quickly. That's very helpful. Thank you. And then one more.

Speaker Change #103: Okay.

Jean Ann Salisbury: There's some discussion of the upcoming Hainesville gas pipelines possibly being delayed due to legal issues. Is there any further expansion potential on Acadian, or is that maxed out here? We're maxed out after our last expansion. I'd say the only benefit is that we may be a benefactor if that project's late. However, Cranesville's flat to... Staying flat, would you say that, Tony?

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Okay.

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Okay.

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Okay.

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Okay.

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Unknown Executive: Yeah. You know, Jeannie, there's so much discussion about the Haynes bill and what's going to happen. And honestly, I'm somewhat befuddled by it.

Speaker Change #103: Yes.

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Unknown Executive: And I think that's the right term, uh, we've got LNG coming on in the Louisiana area, the call it is four and a half to five bcf over the next two years, Okay, and that's a big number. And it has, there's nothing that the whole permitting thing that has recently happened in Jim Address so well this morning, impacts that. So we think that, or we talk like Louisiana and Hainesville have a chance to go to hell in a hand basket. And I'm sorry, I just don't see it.

Okay.

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Speaker Change #103: Okay.

Speaker Change #103: Okay.

Jean Ann Salisbury: Unless I'm missing, The Haynesville, last but not least, is one of the primary basins for a massive amount of long-term storage of gas reserves, no question about it. So we still see it as an ideal and kind of a cornerstone basin for us relative to natural gas. Great, thanks for that, Tony. And thank you, Randy, for all of your help over the years. You'll be missed.

Speaker Change #103: [music].

Speaker Change #103: Okay.

Speaker Change #103: Yes.

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Speaker Change #103: [music].

Spiro Michael Dounis: That's all for me. Thank you. One moment for questions. Our next question comes from Spiro Dounis with Citi. You may proceed. Thanks, operator. Morning team.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Randy Burkhalter: Two very quick follow-ups from me. One, Randy, I just want to go back to the distribution growth and follow up on Tristan's question. You know, the cadence for the last call for two years or so has been an increase about every two quarters tracking around that 5% annual growth. I know you like to keep us guessing. So as we think going forward, you know, how opportunistic is the distribution growth from here? Or is that something we should really kind of expect going forward? Yeah. Spiro, again, I just go back to our track record. We don't like to get out and front run our board.

Speaker Change #103: Thanks.

Speaker Change #103: Yes.

Speaker Change #103: Okay.

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Speaker Change #103: Yes.

Speaker Change #103: [music].

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Okay.

Okay.

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Okay.

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Okay.

Speaker Change #103: [music].

Spiro Michael Dounis: But I, you know, when I think about the CapEx, you know, with the CapEx we're deploying and the return on capital that we're expecting to get, you know, I think coming in, and you know, we've been increasing distribution 25 years in a row, and I feel pretty good about 26. So, you know, and you know, we've been doing it around, you know, mid single digits. So, All right. Fair enough. Second one, just around M&A, you all purchased some natural gas storage assets around the quarter. Pretty small for you, so I don't want to get into it too much.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

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Speaker Change #103: Yes.

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Speaker Change #103: [music].

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Okay.

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Unknown Executive: But just curious, is this sort of the beginning of a bigger push into natural gas storage, or is it more opportunistic? As you look at the rest of your asset base, are there more opportunities like this to bolt on? We on the that's a Wilson storage facility that we've leased for years and years. And in the contract, they had the right to put it up to us. And they put it on us. And it was a reasonable price. So we weren't upset.

Speaker Change #103: Okay.

Speaker Change #103: Yes.

Jim Teague: The other thing is, look at our people. They are relentless in visiting customers and getting new deals. I've been shocked at the appetite, for example, for our ethane export. And so, so.

Speaker Change #103: Yes.

Speaker Change #103: Yes.

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Okay.

Speaker Change #103: Thanks.

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Speaker Change #103: Thanks.

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Speaker Change #103: Yes.

Speaker Change #103: Yes.

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Sure.

Jim Teague: We're probably going to build new processing plants in the Permian and in the Permian Basin, and I would expect that we're going to fill up our ethane export docks and our LPG docks. The other thing we're seeing is more crude flowing to Houston. So we're seeing more crude on our docks. That's all very helpful, and Jim, if I can kind of follow up on that last point. The NGLX 4 volumes were very strong in Q4, and you noted the removal of the daylight restrictions was helping you. Can you give a sense of how close the company is to its capacity based on that Q4 export number? Are you able to keep increasing exports this year before some of the expansions start up in 2025? I think if you look at NGLs as a whole and maybe crude oil, yes.

Speaker Change #103: Sure.

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Yes.

Speaker Change #103: Thank you.

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Speaker Change #103: Sure.

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Speaker Change #103: Thanks.

Speaker Change #103: Yes.

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Speaker Change #103: Thanks.

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Yes.

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Unknown Executive: And that was a legacy going back to Golterra Energy Partners. We sort of inherited that when we acquired Golterra. Okay, perfect. Thanks, guys. I will save my Project 10 question for the April call. Thanks, everyone. Josh, this is Randy.

Speaker Change #103: Sure.

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Josh: Let me cut in. We have time for one more question. Thank you. One moment for a question. And our next question comes from John Mackay with Goldman Sachs. Hey, everyone. Good morning.

Speaker Change #103: Okay.

Jim Teague: If you look at LPG, I think things are going to be tight in terms of dock space on LPG. That gets resolved probably mid-next year, but for 24 and maybe part of 25, and L.P.G.'s gonna be pretty tight. Do you have something?

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Jim Teague: Thank you. One moment for questions. Our next question comes from Gina in Salisbury with Bernstein. You may proceed. Hi, good morning.

Speaker Change #103: Yes.

Speaker Change #103: [music].

John Ross Mackay: Thanks for the time. I just wanted to touch one more time on the export side, you know, understand that, you know, FOB spreads, FOB premiums are really high right now, but you talked about kind of the outer layer coming down farther.

Speaker Change #103: Okay.

Jean Ann Salisbury: Do you forecast Permian processing utilization staying as tight as it is now over the next couple of years? Said another way, is it a stretch to say that the timing of processing coming on will dictate the pace of Permian growth in your view? Oof, take that. I think, Jeannie, and this is Brent. I expect it to stay tight.

Speaker Change #103: Okay.

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Yes.

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Unknown Executive: Is it really just, you know, we are going to see these rates stay high until yours and your kind of competitors' projects come online in 2025? Or would you expect some benefit there once or if the Panama Canal starts to clear up? We expect the rates to remain elevated until the expansion comes online, from us and our competitors call that the mid-25, but with respect to the Panama Canal issues and even issues in the Red Sea, we really haven't seen that impact the FOB values too much. The VLGC fleet has done a really good job of repositioning itself. There are over 380 VLGCs on the water to help mitigate those issues. In fact, as I mentioned earlier, we've seen freight come down, so I don't really see that impacting the FOB values too much from the canal. How many VLGCs came on in 23 and how many do we expect in 24?

Speaker Change #103: Okay.

Speaker Change #103: Thanks.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Brent B. Secrest: You know, when we look at our build out and the contracts that come on, there may be a short little window that there's excess capacity, but it fills up very quickly. We'll lean on Tony for his forecast. But what Tony has told us in years past has certainly come true, if not more prolific. When you look at...

Speaker Change #103: Okay.

Speaker Change #103: Okay.

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Speaker Change #103: Okay.

Speaker Change #103: Thanks.

Speaker Change #103: Sure.

Brent B. Secrest: The capacity right now, I think there is gas that's being held back in the basin that's waiting for compression, and it's waiting for processing capacity. That's exactly what I was going to say; it's not just processing. Some of it's gathering compression in the field that's behind. So once we see that bottleneck kind of get fixed, we'll see processing get full very quickly. That's very helpful, thank you.

Speaker Change #103: Okay.

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Jean Ann Salisbury: And then one more, there's some discussion of the upcoming Hainesville gas pipelines possibly being delayed due to legal issues. Is there any further expansion potential for Acadian, or is that maxed out here? We're maxed out after our last expansion. I'd say the only benefit is that we may be a benefactor if that project's late. However, Hainesville's flat to... Staying flat, would you say that, Tony?

Speaker Change #103: Okay.

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Tony D. Auld: Yeah. You know, Jeannie, there's so much discussion about the Hanes Bill and what's going to happen, and honestly, I'm somewhat befuddled by it, and I think that's the right term. We've got LNG coming on in the Louisiana area, the call it is four and a half to five bcf over the next two years, OK. And that's a big number. And it has, there's nothing that the whole permitting thing that has recently happened in Jim Address so well this morning impacts that. So we think that, or we talk like Louisiana and Hainesville have the chance to go to hell in a hand basket. And I'm sorry; I just don't see it.

Speaker Change #103: Okay.

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Unknown Executive: Yeah, I was calling around north of 40 VLGCs came online in 2023, and there's going to be another 22 or so come online in 24. All right, that's great. I appreciate that.

Speaker Change #103: Thanks.

Speaker Change #103: Sure.

Speaker Change #103: Okay.

Speaker Change #103: Yes.

Speaker Change #103: Okay.

John Ross Mackay: And maybe just one more clarification earlier, appreciated the color on the fee floors on processing in the Permian. Just one thing we wanted to try to frame up. I mean, if we look year over year, Permian processing volumes are up about half a billion, but margins are effectively flat. Just curious if you can comment, is that all commodity impact, or is there some kind of, you know, underlying deflation on the fee side as well?

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Tony D. Auld: What's on the mission? The Haynesville, last but not least, is one of the primary basins for a massive amount of long-term storage of gas reserves, no question about it. So we still see it as an ideal and kind of a cornerstone basin for us relative to natural gas. Great. Thanks for that, Tony. And thank you, Randy, for all of your help over the years. You'll be missed.

Speaker Change #103: Okay.

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Speaker Change #103: Yes.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Sure.

Speaker Change #103: Thanks.

Jean Ann Salisbury: That's all for me. Thank you. One moment for questions. Our next question comes from Spiro Dounis with City. You may proceed. Thanks, operator. Morning team.

Speaker Change #103: Okay.

Speaker Change #103: [music].

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Unknown Executive: It's all about camaraderie. All right, makes sense. That's it for me. Thanks again. Thank you. I would now like to turn the call back over to Randy Burkhalter for any closing remarks. Thank you, Josh.

Spiro Dounis: Two very quick follow-ups from me. One, Randy, I just want to go back to the distribution growth and follow up on Tristan's question. You know, the cadence for the last call for two years or so has been an increase about every two quarters tracking around that 5% annual growth. I know you like to keep us guessing. So as we think going forward, you know, how opportunistic is the distribution growth from here? Or is that something we should really kind of expect going forward?

Speaker Change #103: Okay.

Speaker Change #103: Okay.

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Speaker Change #103: Yes.

Speaker Change #103: Hi.

Speaker Change #103: Sure.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Thank you.

Randy Burkhalter: Before we close out, I'd like to thank Randy for the kind comments and the offer from EGMP. And, you know, and many thanks to all of you I've worked with through the years. He's getting a little emotional, y'all.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

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Okay.

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Randy Burkhalter: Thank you. It was an outlet. And I guess with that, we'll end the call.

Speaker Change #103: Okay.

Speaker Change #103: Yes.

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Operator: Thanks to everyone for your participation. Thank you. Thank you for your participation. You may now disconnect... , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? , , , , , ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day, and thank you for standing by.

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Yes.

Speaker Change #103: Sure.

Speaker Change #103: Yes.

Randy Fowler: Yeah. Yes, Spiro, again, I just go back to our track record. We don't like to get out and front run our board.

Speaker Change #103: Yes.

Speaker Change #103: [music].

Speaker Change #103: Yes.

Spiro Dounis: But I, you know, when I think about the CapEx, you know, with the CapEx we're deploying and the return on capital that we're expecting to get, you know, I think coming in, and you know, we've been increasing distribution 25 years in a row, and I feel pretty good about 26. So, you know, and you know, we've been doing it around, you know, mid single digits. So, All right, fair enough.

Speaker Change #103: Okay.

Speaker Change #103: Yes.

Randy Burkhalter: Welcome to the Q4 2023 Enterprise Products Partners LP earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations. Thank you, Josh.

Jim Teague: Second one, around M&A, you all purchased some natural gas storage assets around the quarter. Pretty small for you, so I don't want to read into it too much, but just curious, is this sort of the beginning of a bigger push into natural gas storage, or is it more opportunistic? As you look at the rest of your asset base, are there more opportunities like this to bolt on? That's a Wilson Storage facility that we've leased for years and years, and in the contract, they had the right to sell it to us, and they sold it to us, and it was a reasonable price, so we weren't upset. And that was a legacy going back to Golterra Energy Partners. We sort of inherited that when we acquired Golterra.

Speaker Change #103: Yes.

Speaker Change #103: Sure.

Speaker Change #103: Yes.

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Yeah.

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Speaker Change #103: [music].

Jim Teague: Okay, perfect. Thanks, guys. I will save my Project 10 question for the April call. Thanks, everyone. Josh, this is Randy. Let me cut in.

Speaker Change #103: Okay.

Operator: We have time for one more question. Thank you. One moment for a question. And our next question comes from John McKay with Goldman Sachs. He may

Speaker Change #103: Okay.

Speaker Change #103: Okay.

Speaker Change #103: Yeah.

John Edwards: Hey, everyone. Good morning. Thanks for the time. I just wanted to touch one more time on the export side, you know, understand that, you know, FOB spreads, FOB premiums are really high right now, but you talked about kind of the outer layer coming down farther.

Speaker Change #104: Good day and thank you for standing by welcome to the Q4 2023 Enterprise products Partners LP Earnings Conference call. At this time, all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session. Please press star one on your telephone and wait.

Robert Sanders: Is it really just, you know, we are going to see these rates stay high until yours and your kind of competitors' projects come online in 2025? Or would you expect some benefit there once or if the Panama Canal starts to clear up? Yeah, we expect the rates to remain elevated until the expansion comes online, from us and our competitors call that the mid-25. But with respect to the Panama Canal issues and even issues in the Red Sea, we really haven't seen that impact FOB values too much. The VLGC fleet has done a really good job at repositioning itself. There are over 380 VLGCs on the water to help mitigate those issues. In fact, as I mentioned earlier, we've seen freight come down, so I don't really see that impacting the FOB values too much from the canal. How many VLGCs came on in 23? And how many do we expect in 24?

Randy Burkhalter: Good morning, everyone, and welcome to the Enterprise Products Partners conference call to discuss fourth quarter 23 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises General Partner Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available in Enterprises Management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. And with that, I'll turn it over to Jim.

Speaker Change #104: For your name to be announced to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations.

John Randy Burkhalter: Thank you Josh.

John Randy Burkhalter: Everyone and welcome to the Enterprise products Partners conference call to discuss fourth quarter 23 earnings our speakers today will be co chief executive officers of Enterprise's General partner GMT and Randy Fowler other members of our senior management team are also in attendance for the call.

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

John Randy Burkhalter: Although management believes that the expectations reflected in such forward looking statements are reasonable it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward looking statements made during this call and with that I'll.

Unknown Executive: We generated $7.6 billion of distributive cash flow in 2023, providing 1.7 times coverage, and we retained $3.2 billion. We set nine financial records and 13 operating records in 23. Our 23 operating results included records in NGO pipeline transportation, at thine export. Total MGL Marine Terminal Volumes.

John Randy Burkhalter: I'll turn it over to Jim.

Jim: We generated $7 $6 billion of distributable cash flow in 2023.

Jim: Adding one seven times coverage and we retained $3 2 billion.

Robert Sanders: Yeah, call it around north of 40 VLGCs came online in 2023, and there's gonna be another 22 or so come online in 24. All right, that's great. Appreciate that. And maybe just one more clarification earlier; I appreciated the color on the fee floors on processing in the Permian. Just one thing we wanted to try to frame up. I mean, if we look year over year, Permian processing volumes are up about half a billion, but margins are effectively flat. Just curious if you can comment on that. Is that all commodity impact, or is there some kind of, you know, underlying deflation on the fee side as well? It's all about camaraderie.

Jim: We said non financial records and 13 operating records in 2013.

Jim: 23 operating results included records in NGL pipeline transportation.

Jim: <unk> exports.

Jim: Total NGL marine term terminal volumes.

Unknown Executive: NGO Approximation Volume, eBase natural gas process and crude pipeline and natural gas transportation in barrels of oil equivalent per day. Enterprise transported a record 12.2 million barrels a day in 2023, compared to 11.2 million barrels a day in 2022. During the fourth quarter, we transported 12.7 million barrels a day, compared to 11 and a half million barrels a day in the fourth quarter of 2022. We exported a record 2.3 million barrels a day of liquid hydrocarbon, and that includes everything from crude oil to LPG. Ethane, Refined Products, and Basic Petrochemicals Ethane and Propolis.

Jim: Fractionation volumes ebay.

Jim: Fee based natural gas processing volumes.

Jim: And crude pipeline and natural gas transportation volumes.

Jim: In barrels of oil equivalent per day <unk>.

Jim: Enterprise transported a record $12 2 million barrels a day in 2023.

Jim: Compared to $11 2 million barrels a day in 2022.

John Edwards: All right, that makes sense. That's it for me. Thanks again. Thank you. I would now like to turn the call back over to Randy Burkhalter for any closing remarks. Thank you, Josh.

Jim: During the fourth quarter, we transported 12 7 million barrels a day.

Jim: Compared to $11 5 million barrels a day in the fourth quarter.

Jim: 2022.

John Randy Burkhalter: Before we close out, I'd like to thank Randy for the kind comments and the offer from EGMP. And, you know, and many thanks to all of you I've worked with through the years. He's getting a little emotional, y'all.

We exported a record two 3 million barrels a day.

Jim: Liquid hydrocarbons.

Jim: That includes everything from crude oil to LPG.

Jim: Ethane refined products and basic petrochemicals ethane and propylene.

Unknown Executive: When you look at our exports, it's clear that Enterprise is not a one-trick pony. It's quite remarkable that volumes across all our pipes and facilities increase sequentially each quarter. Although 2023 was supported by the strong strong supply and demand fundamentals for hydrocarbons from the Permian and other basins we serve, integrated with the midstream services that we have, including exports that we just discussed, relative to commodity markets, 2023 was a relatively weak year, especially for natural gas and natural gas liquids. Nonetheless,

Jim: When you look at our exports it's clear.

Jim: That enterprise is not a one trick pony.

Jim: It's quite remarkable that volumes across all our pipes and facilities increased sequentially each quarter in 2023 supported by the strong strong supply demand fundamentals for hydrocarbons from the Permian and other basins we serve.

Jim: Integrated with the midstream services, we have.

Jim: Including exports that we just discussed.

Jim: Relative to commodity markets 2023 was a relatively weak year, especially for natural gas and natural gas liquids. Nonetheless.

Unknown Executive: Enterprise proved once again that we don't need really high prices to make substantial returns. Financial Records and 13 operating records summarized, were achieved in a commodity price environment where natural gas prices were down almost 60% from 22. Crude was down nearly 20%, propane was down 36%, ethane was down almost 50%, and the NGO processing basket was down 35% Relative to the several 23 records at our Marine Terminal.

Jim: <unk> proved once again that we don't need really high prices to make substantial returns.

John Randy Burkhalter: Thank you, www.larryweaver.com, And I guess with that, we'll end the call. Thanks to everyone for your participation. Thank you. Thank you for your participation. You may now disconnect. ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day, and thank you for standing by.

Jim: The financial records and 13 operating record summarized.

Jim: Cheat and the commodity price environment, where natural gas prices were down almost 60% from 2000 to crude.

Jim: Crude was down nearly 20%.

Jim: Propane was down 36%.

Jim: Brian was now almost 50%.

Jim: In the NGL processing basket was down 35% realm.

Jim: Relative to the several 23 records at our marine terminals.

Unknown Executive: We have long said that hydrocarbons with a price to export proven once again in 2023. In growth capital during 23, we completed construction of $3.5 billion in projects. Significant assets put into service include two new natural gas processing plants in the Permian Basin and our 12th NGO fractionator in Chambers County. All of these assets were essentially full after operations.

Jim: Long said that hydrocarbons would priced export proven once again in 2023.

Operator: Welcome to the Q4 2023 Enterprise Products Partners LP Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Jim: And growth capital during 'twenty, three we completed construction of $3 $5 billion of process projects.

Jim: Significant assets put into service include two new natural gas processing plant in the Permian Basin, and our 12 NGL fractionator in Chambers County.

Jim: All of these assets were essentially full after operations began.

Unknown Executive: While production of our PDH2 facility was completed in the third quarter of 2023, we spent much of the remainder of the year addressing startup issues. As a result, this plant did not meet our expectations and earnings in 2023. We believe most of these issues have been resolved, and we anticipate much higher utilization rates this year.

Jim: While production of our <unk> II facility was completed in the third quarter of 'twenty. Three we spent much of the remainder of the year addressing startup issues. As a result, this plant did not meet our expectations and earnings in 'twenty three.

Jim: We believe most of these issues have been resolved and we anticipate much higher utilization rate this year.

Unknown Executive: We begin 24 with 6.8 billion of major organic projects under construction, with three projects representing approximately $1.1 billion in capital investment expected to be completed this year. Major 24 projects include our Texas Western Products Pipeline System and two additional processing plants in the Permian. We have a considerable amount of growth capital underway. All of these projects provide strategic growth to our system and can add considerable value to new sources of cash flow. I wanted to take a minute to talk about project 9.3.

Jim: We began 24 would we begin 'twenty four with $6 8 billion of major organic projects under construction with three projects, representing approximately $1 $1 billion in capital investment expected to be completed this year.

Jim: Major 24 projects include our Texas Western products pipeline system.

Jim: Two and two additional processing plants in the Permian.

Jim: We have considered a considerable amount of growth capital underway.

Jim: All of these projects provide strategic growth.

Jim: All of these projects provide strategic growth.

Jim: Our system.

Jim: Add considerable visibility to new sources of cash flow.

Jim: I wanted to take a minute to talk about project nine three we started this project in 'twenty two as an incentive for all employees and innovative ways to improve the bottom line.

Unknown Executive: We started this project in 22 as an incentive for all employees to find innovative ways to improve the bottom line. This was especially important as we in the industry were reengaging after COVID and faced the challenges of a slurred global economy in 23. We achieved the goals we set for ourselves both in 2022 and 2023. We are very proud of our employees for that accomplishment. That said, we will not have a Project 9-type program.

This was especially important as we and the industry were re engaging after COVID-19 and face the challenges of a slower global economy in 'twenty three.

John Randy Burkhalter: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations. Thank you, Josh.

Jim: We achieved the goals we set for ourselves both in 2022 and 2023.

Jim Teague: Good morning, everyone, and welcome to the enterprise products partners conference call to discuss fourth quarter 23 earnings. Our speakers today will be co-chief executive officers of enterprises general partner Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available in Enterprises Management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. And with that, I'll turn it over to Jim.

Jim: We're very proud of our employees for that accomplishment.

Jim: That said, we will not have a project type program for 2024.

Unknown Executive: You've always heard me say, if you want to know where we're going, look at what we're doing. The Permian Basin has been the cornerstone for much of our growth capital. As we look at 2024 and beyond, we see supply and demand opportunities as the Permian continues to grow, and the world continues to have an ever-increasing appetite for U.S. hydrocarbons. We noted in the press release that these may be the most geopolitically challenging times since World War II, but it's abundantly clear that all of this chaos is leading itself to a growing appetite for the most stable hydrocarbon supplies in Without a doubt, relative to energy, our nation's biggest geopolitical challenge continues to be self-inflicted.

Jim: You've always heard me say if you wanted to know where we're going look at what we're doing.

The Permian basin has been the cornerstone for much of our growth capital.

Jim: We look at 2024 and beyond.

Jim: We see supply and demand opportunities.

Jim: Permian continues to grow.

Jim: And the World continues to have an ever increasing appetite for U S hydrocarbons.

Jim: We noted in the press release that these might be the most geo politically challenging times since World War two.

Jim: But it's abundantly clear that all of this chaos, leading itself to a growing appetite.

Jim: Alright, and the most stable hydrocarbon suppliers in the World USA.

Jim Teague: We generated $7.6 billion of distributive cash flow in 2023, providing 1.7 times coverage, and we retained $3.2 billion. We set nine financial records and 13 operating records in 23. Our 23 operating results included records for NGO pipeline transportation, at thine export, and total MGL marine terminal volumes, in geo-approximation volume.

Jim: Despite of government and regulatory challenges.

Jim: Without a doubt relative to energy our nation's biggest.

Jim: Geopolitical challenges.

Jim: Continue to be self inflicted.

Unknown Executive: Enterprise has one of the world's leading natural gas liquids franchises, and we are the liquids hydrocarbon storage and export franchise. On top of all of that, we have a dedicated employee base that creates value, regardless of... and Bar. 2023 marked our 25th anniversary as a public company. It's been a great quarter for US Energy, and it included the downfall of the energy merchants. The Great Financial Crisis and innovation by the EMP and oilfield service industries to unlock the potential of the Shell Place, which is still continuing. It included the near-death and remarkable renaissance of the U.S. petrochemical industry, from having the highest cost feedstock pre-shell to now below a; It included two OPEC price wars.

Jim: Enterprise has one of the world's leading natural gas liquids franchise, and we have the liquid hydrocarbon storage and export franchise.

Jim: On top of all of that we have a dedicated employee base that creates value regardless of the.

Jim Teague: The base natural gas process, and Crude Pipeline and Natural Gas Transportation, barrels of oil equivalent per day. Enterprise transported a record 12.2 million barrels a day in 2023, compared to 11.2 million barrels a day in 2022. During the fourth quarter, we transported 12.7 million barrels a day, compared to 11.5 million barrels a day in the fourth quarter of 2022. We exported a record 2.3 million barrels a day of liquid hydrocarbon, and that includes everything from crude oil to LPGs, ethane, refined products, and basic petrochemicals ethane and propolis. When you look at our exports, it's clear that Enterprise is not a one-trick pony. It is quite remarkable that volumes across all our pipes and facilities increase sequentially each quarter. 2023 was supported by the Strong Supply and Demand Fundamentals for Hydrocarbons from the Permian and other basins we serve, integrated with the midstream services that we have, including exports that we just discussed. However, relative to commodity markets, 2023 was a relatively weak year, especially for natural gas and natural gas liquids. Nonetheless,

Jim: Environment.

Jim: 2023 marked our 20 <unk> anniversary as a public company.

Jim: It's been a great quarter century.

Jim: It has been for the U S energy industry and included the downfall of the energy merchants.

Jim: Great financial crisis.

Jim: The innovation of the E&P and oilfield service industries to unlock the potential of the shale plays which is still continuing.

Jim: It included the near Deb and remarkable Renaissance of the U S petrochemical industry from having the highest cost feedstock pre shale to now the lowest cost.

Jim: It included two OPEC price wars.

Jim: Yeah.

Jim Teague: Enterprise proved once again that we don't need really high prices to make substantial returns. Financial records, and 13 operating records summarized, were achieved in a commodity price environment where natural gas prices were down almost 60% from 22%. Crude was down nearly 20 percent, propane was down 36%, ethane was down almost 50%, and the NGO processing basket was down 35%, relative to the several 23 records at our Marine Terminal.

Jim Teague: We have long said that hydrocarbons with a price to export will be proven once again in 2023. In growth capital during 23, we completed construction of $3.5 billion in projects. Significant assets put into service include two new natural gas processing plants in the Permian Basin and our 12th NGO fractionator in Chambers County. All of these assets were essentially full after operations.

Jim Teague: While production of our PDH2 facility was completed in the third quarter of 2023, we spent much of the remainder of the year addressing startup issues. As a result, this plant did not meet our expectations and earnings in 2023. We believe most of these issues have been resolved, and we anticipate much higher utilization rates this year. We begin 24 with 6.8 billion of major organic projects under construction, with three projects representing approximately $1.1 billion in capital investment. And that is expected to be completed this year.

Jim Teague: Major 24 projects include our Texas Western Products Pipeline System and two additional processing plants in the Permian. We have a considerable amount of growth capital underway. All of these projects provide strategic growth to our system and can add considerable value to new sources of cash flow. I wanted to take a minute to talk about project 9.3.

Jim Teague: We started this project in 22 as an incentive for all employees to find innovative ways to improve the bottom line. This was especially important as we in the industry were re-engaging after COVID and faced the challenges of a slurred global economy in 23. We achieved the goals we set for ourselves both in 2022 and 2023. We are very proud of our employees for that accomplishment. That said, we will not have a Project 9-type program.

Jim Teague: You've always heard me say, if you want to know where we're going, look at what we're doing. The Permian Basin has been the cornerstone of much of our growth capital. As we look at 2024 and beyond, we see supply and demand opportunities as the Permian continues to grow, and the world continues to have an ever-increasing appetite for U.S. hydrocarbons. We noted in the press release that these may be the most geopolitically challenging times since World War II, but it's abundantly clear that all of this chaos is leading itself to a growing appetite for the most stable hydrocarbon supplies in Without a doubt, relative to energy, our nation's biggest geopolitical challenge continues to be self-inflicted. Enterprise has one of the world's leading natural gas liquids franchises, and we are the liquid hydrocarbon storage and export franchise. On top of all of that, we have a dedicated employee base that creates value, regardless of their background, and Barr. 2023 marked our 25th anniversary as a public company. It's been a great quarter.

It has been for the U.S. Energy. It included the downfall of the energy merchants. The Great Financial Crisis. Innovation of the EMP and oil field service industries to unlock the potential of the Shell place, which is still continuing. It included the near-death and remarkable renaissance of the U.S. petrochemical industry, from having the highest cost feedstock pre-shell to now below. It included two OPEC price wars, a one...