Q2 2024 Energy Transfer LP Earnings Call

Good day and welcome to the Energy Transfer Q2 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I now would like to turn the conference over to Tong Wong, co-CEO. Please go ahead, sir.

Operator: All participants will be in Sonali mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note that this event is being recorded. And now I'd like to turn the conference over to Tom Wong, co-CEO. Please go ahead, sir.

Tom Wong: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer Second Quarter 2024 earnings call. I'm also joined today by Mackay McCrea and other members of the senior management team, who are here to help answer your questions after our prepared remarks. Hopefully, you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MD&A that goes through the segment results in detail, and we encourage everyone to look at the release, as well as the slides posted to our website, to gain a full understanding of the quarter and our growth opportunities. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934.

Operator: All participants will be in lesson only mode. Should you need assistance, please do a conference specialist for pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded.

Tong Wong: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer second quarter 2024 earnings call. I'm also joined today by Mackay McCrea and other members of the senior management team.

Tong Wong: who are here to help answer your questions after our prepared remarks.

Speaker Change: Hopefully you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MD&A that goes through the segment results in detail, and we encourage everyone to look at the release.

Thomas Long: I now would like to turn a conference over to Tom Long, co-CEO. Please go ahead, sir. Thank you, operator.

Thomas Long: Good afternoon, everyone, and welcome to the Energy Transfer Second Quarter 2024 earnings call. I'm also joined today by Mackie McCree and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MDNA that goes through the segment results in detail, and we encourage everyone to look at the release, as well as the slides posted to our website to gain a full understanding of the quarter and our growth opportunities.

Speaker Change: as well as the slides posted to our website to gain a full understanding of the quarter and our growth opportunities.

Speaker Change: As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934.

Tom Wong: These statements are based upon our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more detail in our Form 10-Q for the quarter ended June 30, 2024, which we expect to file tomorrow, August 8th. I'll also refer to Adjusted EBITDA and Distributable Cash Flow, or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website.

Speaker Change: These statements are based upon our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more detail in our Form 10-Q for the quarter ended June 30, 2024, which we expect to file tomorrow, August the 8th.

Speaker Change: I'll also refer to Adjusted EBITDA and Distributable Cash Flow, or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website.

Thomas Long: As a reminder, we will be making forward looking statements within the meeting of Section 21E of the Security Exchange Act of 1934. These statements are based upon our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more details in our Form 10Q for the quarter-ended June 30th, 2024, which we expect to file tomorrow, August 8th. I'll also refer to adjusted EBITDA and Distributal Cashflow or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website.

Tom Wong: I will start today by going over our financial results for the second quarter of 2024. We generated adjusted EBITDA of $3.76 billion compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expenses. Absent these transaction costs, Adjusted EBITDA would have been over $3.8 billion.

Speaker Change: I will start today by going over our financial results.

Speaker Change: For the second quarter of 2024, we generated a just EBITDA of $3.76 billion, compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expense.

Speaker Change: Absent these transaction costs, Adjusted EBITDA would have been over $3.8 billion.

Tom Wong: We had record volumes through our crude oil and NGL pipelines as well as record NGL exports. We also saw strong performance from our NGL fractionators and our refined products pipelines and terminals. DCF attributable to the partners of energy transfer, as adjusted, was $2 billion, compared to $1.6 billion for the second quarter of 2023.

Thomas Long: I will start today by going over our financial results. For the second quarter of 2024, we generated adjusted EBITDA of $3.76 compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expense. Absent these transaction costs, adjusted EBITDA would have been over $3.8 billion. We had record volumes through our Crudal and NGL pipelines, as well as record NGL exports. We also saw strong performance from our NGL fractionators and our refined products pipelines and terminals.

Speaker Change: We had record volumes through our Crudo and NGL pipelines.

Speaker Change: as well as record NGL exports.

Speaker Change: We also saw strong performance from our NGF fractionators and our refined products pipelines and terminals.

Speaker Change: DCF attributable to the partners of Energy Transfer, as adjusted, was $2 billion, compared to $1.6 billion for the second quarter of 2023.

Tom Wong: And for the six months of 2024, we spent approximately $1 billion on organic growth capital, primarily in the midstream and NGL and refined product segments, excluding Sun and USA Compression Capital. Now turning to our results by segment for the second quarter, let's start with NGL and refined products. Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023.

Speaker Change: And for the six months of 2024, we spent approximately $1 billion on organic growth capital, primarily in the midstream and NGL and refined product segments.

Tom Wong: The increase was primarily due to growth across our transportation, fractionation, and terminal operations, including records for both Mariner East and Permian Pipeline volumes, as well as NGL Export. In addition, we had higher gains from the optimization of hedged NGL inventory. For midstream, Adjusted EBITDA was $693 million, compared to $579 million for the second quarter of 2023. The increase was primarily due to the addition of the Crestwood assets, as well as higher volumes in the Permian Basin. For our crude oil segment, adjusted EBITDA was $801 million compared to $674 million for the second quarter of 2023.

Speaker Change: excluding Sun and USA Compression CapEx.

Speaker Change: Now turning to our results by segment for the second quarter, let's start with NGL and refined products.

Thomas Long: DCF, a trivial to the partners of energy transfer, as adjusted, was $2 billion compared to $1.6 billion for the second quarter of 2023. And for the six months of 2024, we spent a probably $1 billion on organic growth capital, primarily in the midstream and NGL and refined product segments, excluding Sun and USA Compression CapEx.

Speaker Change: Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023.

Speaker Change: The increase was primarily due to growth across our transportation, fractionation, and terminal operations, including records in both Mariner East and Permian Pipeline volumes.

Speaker Change: as well as NGL exports. In addition, we had higher gains from the optimization of hedged NGL inventory.

Thomas Long: Now, turning to our results, my segment for the second quarter, let's start with NGL and refined products. Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023. The increase was primarily due to growth across our transportation, fractionation, and terminal operations, including records in both marineries and Permian pipeline volumes, as well as NGL exports. In addition, we had higher gains from the optimization of hedged NGL For midstream, Adjusted EBITDA was $693 million compared to $579 million for the second quarter of 2023.

Speaker Change: For midstream, adjusted EBITDA was $693 million compared to $579 million for the second quarter of 2023. The increase was primarily due to the addition of the Crestwood assets as well as higher volumes in the Permian Basin.

Speaker Change: For our crude oil segment, adjusted EBITDA was $801 million, compared to $674 million for the second quarter of 2023.

Tom Wong: The increase was primarily due to record crude oil transportation throughput, an increase in our total crude oil exports, which were up 11%, as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023, respectively. Excluding these acquisitions, adjusted EBITDA and crude oil transportation volumes on our base business increased 4% and 8%, respectively. In our interstate segment, Adjusted EBITDA was $392 million compared to $441 million for the second quarter of 2023.

Speaker Change: The increase was primarily due to record crude oil transportation throughput, an increase in our total crude oil exports, which were up 11 percent, as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023, respectively.

Thomas Long: The increase was primarily due to the addition of the Crestwood assets as well as higher volumes in the Permian Basin. For our crude oil segment, Adjusted EBITDA was $801 million compared to $674 million for the second quarter of 2023. The increase was primarily due to record crude oil transportation throughput and increase in our tow crude oil exports which were up 11% as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023 respectively.

Speaker Change: Excluding these acquisitions, adjusted EBITDA and crude oil transportation volumes on our base business increased 4% and 8% respectively.

Speaker Change: In our interstate segment, adjusted EBITDA was $392 million, compared to $441 million for the second quarter of 2023.

Tom Wong: During the quarter, we saw higher contracted volumes on trunk line, pebble, gulf run, and MRT. However, this was offset by lower operational gas sales, a maintenance project cost of $12 million, as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case. For the intrastate segment, adjusted EBITDA was $328 million compared to $216 million in the second quarter of last year.

Speaker Change: During the quarter, we saw higher contracted volumes on trunk line, pebble, gulf run, and MRT. This was offset by lower operational gas sales.

Thomas Long: Exploding these acquisitions, Adjusted EBITDA and crude oil transportation volumes on our base business increased 4% and 8% respectively. In our interstate segment, Adjusted EBITDA was $392 million compared to $441 million for the second quarter of 2023. During the quarter, we saw higher contracted volumes on trunk line, pebble, gulf run, and MRT. This was offset by lower operational gas sales, maintenance project cost of $12 million as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case.

Speaker Change: maintenance project cost of $12 million, as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case.

Speaker Change: For the intrastate segment, adjusted EBITDA was $328 million compared to $216 million in the second quarter of last year. The increase was primarily due to approximately $75 million of increased gains related to pipeline optimization opportunities.

Tom Wong: The increase was primarily due to approximately $75 million of increased gains related to pipeline optimization opportunities, as well as favorable storage optimization opportunities. In July 2024, Energy Transfer completed the acquisition of WTG, which provides Energy Transfer with increased access to growing supplies of natural gas and NGL volumes and enhances our Permian operations and downstream business. Integration of the combined assets is underway, and we are really excited about the great customer base and the growing gas supply behind this asset.

Speaker Change: as well as favorable storage optimization opportunities.

Speaker Change: In July 2024, Energy Transfer completed the acquisition of WTG, which provides Energy Transfer with increased access to growing supplies of natural gas and NGL volumes and enhances our Permian operations and downstream businesses.

Thomas Long: For the interstate segment, Adjusted EBITDA was $328 million compared to $216 million in the second quarter of last year. The increase was primarily due to approximately $75 million of increased gains related to pipeline optimization opportunities as well as favorable storage optimization opportunities.

Speaker Change: Integration of the combined assets is underway and we are really excited about great customer base and the growing gas supply behind this asset.

Tom Wong: Since closing the transaction, the 200 million cubic foot per day Red Lake 3 processing plant has been placed into service. We expect volumes to ramp up quickly as more residue takeaway becomes available, also in July 2024. Energy Transfer and Sunoco LP announced the formation of a joint venture combining the respective crude oil and produced water gathering assets in the Permian Basin.

Thomas Long: In July 2024, Energy Transfer completed the acquisition of WTG which provides energy transfer with increased access to growing supplies of natural gas and NGO volumes and enhances our Permian operations and downstream businesses. Integration of the combined assets is underway and we are really excited about great customer base and the growing gas supply behind this asset. Since closing the transaction, the 200 million cubic foot per day Red Lake 3 processing plant was placed into service. We expect volumes to ramp up quickly as more residue take away becomes available.

Speaker Change: Since closing the transaction, the 200 million cubic foot per day Red Lake 3 processing plant was placed into service. We expect volumes to ramp up quickly as more residue takeaway becomes available.

Speaker Change: Also, in July 2024, Energy Transfer and Sunoco LP announced the formation of a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin.

Tom Wong: This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers. Now turning to our growth projects, and starting with our Niederland and Marcus Hook export terminals. Construction of the expansions to our NGL export capacity at Niederland continues to progress, and we remain on schedule for an anticipated start-up in mid-2025 for the initial phases of the project.

Speaker Change: This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers.

Tom Wong: And at our Marcus Hipp Terminal, construction continues to progress on the first phase of an optimization project. Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian Basin. We recently approved our ninth fractionator at Montbellview.

Thomas Long: Also in July 2024, Energy Transfer in Sonoco LP announced the formation of joint venture combining the respective crude oil and produced water gathering assets in the Permian base. This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers.

Speaker Change: Now turning to our growth projects and starting with our Niederland and Markasuk export terminals. Construction of the expansions to our NGL export capacity at Niederland continues to progress.

Speaker Change: And we remain on schedule for an anticipated in-service in mid-2025 for the initial phases of the project.

Speaker Change: And at our MARCUSIP terminal, construction continues to progress on the first phase of an optimization project.

Thomas Long: Now turning to our growth projects and starting with our Needle and Marcosook export terminals construction of the expansions to our NGO export capacity at Needle and continues to progress and we remain on schedule for an anticipated end service in mid 2025 for the initial phases of the project, and at our Marcoship Terminal Construction continues to press on the first phase of an optimization project. Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian Basin.

Speaker Change: Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian Basin.

Speaker Change: We recently approved our ninth Fractionator at Montbellevue. Fract-9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026.

Tom Wong: FRAC 9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026. This will bring our total fractionation capacity at Mount Bellevue to more than 1.3 million barrels per day. In addition, we recently placed a previously unutilized 2 million barrel butane storage well back into service, bringing our current NGL storage capacity at Montbellview to approximately 62 million barrels.

Speaker Change: This will bring our total fractionation capacity at Mount Bellevue to more than 1.3 million barrels per day. In addition, we recently placed a previously unutilized 2 million barrels butane storage well back into service.

Thomas Long: We recently approved our ninth fractionator at Montbell View. Fract 9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026. This will bring our total fractionation capacity at Montbell View to more than 1.3 million barrels per day. In addition, we recently placed a previously unutilized 2 million barrels butane storage well back into service, bringing our current NGL storage capacity at Montbell View to approximately 62 million barrels.

Speaker Change: bringing our current NGL storage capacity at Montbellview to approximately 62 million barrels.

Tom Wong: Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities, which will add approximately 200 million cubic feet of processing capacity in West Texas. And in June, we announced plans to construct a 200 million cubic feet per day badger processing plant in the Permian Basin. This plant, which is expected to be in service in mid-2025, will utilize an idle plant that is to be relocated to the Delaware Basin, which will help save capital versus building a new plant. In North Louisiana, we placed trains 1 and 2 of our AJAX treating facility into service in July. These trains have a combined treatment capacity of approximately 300 million cubic feet per day.

Speaker Change: Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities, which will add approximately 200 million cubic feet per day of processing capacity in West Texas.

Speaker Change: and in june we announced plans to construct the two hundred million cubic feet per day badger processing plant in the permian basin

Speaker Change: This plant, which is expected to be in service in mid-2025, will utilize an idle plant that is to be relocated to the Delaware Basin, which will help save capital versus building a new plant.

Thomas Long: Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities which will add approximately 200 million cubic feet per day of processing capacity in West Texas. And in June, we announced plans to construct the 200 million cubic feet per day badger processing plant in the Permian Basin. This plant, which is expected to be in service in mid 2025, will utilize an idle plant that is to be relocated to the Delaware Basin, which will help save capital versus building a new plant. In North Louisiana, we placed trains 1 and 2 of our Ajax treating facility into service in July. These trains have a combined treating capacity of approximately 300 million cubic feet per day.

Speaker Change: In North Louisiana, we placed trains 1 and 2 of our AJAX treating facility into service in July . These trains have a combined treating capacity of approximately 300 million cubic feet per day.

Tom Wong: Now for a brief update on our opportunities around power generation. With forecasts for electricity demand growth becoming increasingly bullish and the need for grid reliability becoming increasingly important, it is clear that natural gas will play a significant role in helping meet this demand. Given Energy Transfer's extensive interstate and intrastate natural gas pipeline footprint, we believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs. We currently serve gas-fired power plants in 15 states, with approximately 185 plants served via direct or indirect connections throughout these states.

Speaker Change: Now for a brief update on our opportunities around power generation.

Speaker Change: With forecasts for electricity demand growth becoming increasingly bullish, and the need for grid reliability becoming progressively more important, it is clear that natural gas will play a significant role in helping meet this demand.

Speaker Change: Given Energy Transfer's extensive interstate and intrastate natural gas pipeline footprint, we believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs.

Thomas Long: Now for a brief update on our opportunities around generation with forecast for electricity demand growth becoming increasingly bullish and the need for grid reliability becoming progressively more important. It is clear that natural gas will play significant role in helping meet this demand given energy transfers extensive interstate and interstate natural gas pipeline footprint. We believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs. We currently serve gas fired fire plants in 15 states with approximately 185 plants served via direct or indirect connections throughout the states. And we have recently signed deals across our systems to provide gas loads of over 500,000 MMBTUs per day.

Speaker Change: We currently serve gas-fired power plants in 15 states, with approximately 185 plants served via direct or indirect connections throughout these states, and we have recently signed

Tom Wong: And we have recently signed deals across our systems to provide gas loads of over 500,000 MMBTUs per day. In addition, as mentioned last quarter, we have approved the construction of eight 10-megawatt natural gas-fired electric generation facilities to support the partnership's operations in Texas. We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers. We also continue to make progress on the development of several other growth projects, including our Warrior Blue Marlin offshore project, Lake Charles LNG, a carbon capture and sequestration project with Capture Point, and Blue Ammonia hubs at Lake Charles and Nederland.

Speaker Change: deals across our systems to provide gas loads of over 500,000 MMBTUs per day.

Speaker Change: In addition, as mentioned last quarter, we have approved the construction of eight 10-megawatt natural gas-fired electric generation facilities to support the partnership's operations in Texas.

Speaker Change: We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers.

Thomas Long: In addition, as mentioned last quarter, we have approved the construction of 8 10 MW natural gas fired electric generation facilities to support the partnerships operations in Texas. We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers.

Speaker Change: We also continue to make progress on the development of several other growth projects, including our Warrior Blue Marlin offshore project, Lake Charles LNG, a carbon capture and sequestration project with Capture Point,

Tom Wong: We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID. Looking ahead at our 2024 Organic Growth Capital Guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion, which will be spent primarily in the NGL and refined products and midstream segments. The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker return projects in the crude oil segment related to the Crestwood acquisition.

Speaker Change: and Blue Ammonia Hubs at Lake Charles and Nederland.

Speaker Change: We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID.

Thomas Long: We also continue to make progress in the development of several other growth projects, including our Warrior, Blue Marlin, Offshore Project, Lake Charles LNG, a carbon capture and sequestration project with capture point, and Blue ammonia hubs at Lake Charles and Netherlands. We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID.

Speaker Change: Looking ahead at our 2024 Organic Growth Capital Guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion, which will be spent primarily in the NGL and refined products and midstream segments.

Speaker Change: The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker returning projects in the crude oil segment related to the Crestwood acquisition.

Thomas Long: Looking ahead at our 2024 organic growth capital guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion, which will be spent primarily in the NGL and refined products and midstream segments. The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker returning projects in the crude oil segment related to the Crestwood acquisition.

Tom Wong: Now turning to our adjusted EBITDA guidance, we are raising our 2024 adjusted EBITDA guidance to be between $15.3 to $15.5 billion compared to our prior guidance range of $15 to $15.3 billion. Our 2024 guidance has been updated to include our acquisition of WTG, which closed on July 15, and outperformance in the base business, even with over $100 million in transaction costs also included within our full year guidance. We continue to be excited about our business and the demand for our products and services, both domestically and internationally.

Speaker Change: Now turning to our adjusted EBITDA guidance, we are raising our 2024 adjusted EBITDA guidance to be between $15.3 to $15.5 billion compared to our prior guidance range of $15 to $15.3 billion.

Speaker Change: Our 2024 guidance has been updated to include our acquisition of WTG, which closed on July 15th, and outperformance in the base business, even with over $100 million transaction costs also included within our full year guidance.

Thomas Long: Now turning to our Justice EBITDA guidance, we are raising our 2024 Justice EBITDA guidance to be between $15.3 to $15.5 billion, compared to our prior guidance range of $15 to $15.3 billion. Our 2024 guidance has been updated to include our acquisition of WTG, which closed on July 15th and outperformance in the base business, even with over $100 million transaction costs also included within our full year guidance. We continue to be excited about our business and the demand for our products and services both domestically and internationally.

Speaker Change: We continue to be excited about our business and the demand for our products and services, both domestically and internationally.

Tom Wong: We're in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns. And we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate and increasing equity returns to our unit holders. In addition, we are pleased to see that, in June, Moody's upgraded our senior unsecured credit rating to BAA2, which further demonstrates the strides that we have made to strengthen our balance sheet and financial position.

Speaker Change: We're in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns.

Speaker Change: And we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate, and increasing equity returns to our unit holders.

Speaker Change: In addition, we are pleased to see that in June , Moody's upgraded our senior unsecured credit rating to BAA2, which further demonstrates the strides that we have made to strengthen our balance sheet and financial position.

Thomas Long: We are in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns. And we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate and increasing equity returns to our unit holders.

Operator: This concludes our prepared remarks. Operator, please open the line up for our first question. Yes, thank you. We will now begin the question and answer session.

Speaker Change: This concludes our prepared remarks. Operator, please open the line up for our first question. Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad.

Operator: Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing star. At any time when your question has been addressed and you would like to withdraw it, please press star then 2. At this time, we will pause momentarily to assemble the roster. And the first question comes from Jeremy Tonet of JP Morgan.

Speaker Change: If you are using a speakerphone, please pick up your handset before pressing the keys.

Thomas Long: In addition, we are pleased to see that in June. Moody's upgraded our Senior Unsecured Credit Rating to B-002, which further demonstrates the strides that we have made to strengthen our balance sheet and financial position.

Speaker Change: Anytime your question has been addressed and you would like to withdraw it, please press star then 2. At this time we will pause momentarily to assemble the roster.

Speaker Change: And the first question comes from Jeremy Tonet with J.P. Morgan.

Thomas Long: This concludes our prepared remarks.

Operator: Operator, please open the line up for our first question. Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speaker phone, please pick up your hands up before pressing the keys. Any time your question is unaddressed, you'd like to withdraw it, please press star then two.

Jeremy Tonei: Hi, good afternoon.

Jeremy Tonet: Just wanted to start off, if I could, I appreciate the call, but as it relates to WTG with a month in the books, I was just wondering if you could talk a bit more, I guess, on what you see as far as commercial opportunities there and, you know, similarly with the debut with Sun on New Star, just wondering what new opportunities you see in front of you post-CCL.

Jeremy Tonei: Good afternoon.

Jeremy Tonei: Jeremy.

Speaker Change: I just wanted to start off, if I could, I appreciate the caller on the call, but as it relates to WTG, with a month in the books, I just wondered if you could talk a bit more, I guess, on what you see as far as commercial opportunities there, and similarly with the

Operator: At this time, we will pause momentarily to assemble the roster.

Jeremy Tonet: And the first question comes from Jeremy Tunne with JB Morgan. All right, good afternoon. Good afternoon.

Speaker Change: J.B. with Sun on Newstar. Just wondering what new opportunities set you see in front of you post-CCO?

Mackay McCrea: Hey, Jeremy, this is Mackay. I'll start with your first one.

Mackie Mccrea: Jeremy, I just wanted to start off if I could appreciate the color and the call, but as it relates to WTG with a month in the book, so I just wanted it if you could talk a bit more, I guess, and what you see as far as commercial opportunities there.

Jeremy Tonei: Hey, Jeremy, this is Macky. I'll start with...

Mackay McCrea: We're very excited about WTG. Excuse me. As you just said, we're barely almost a month into it, and we still have a lot of rocks to turn over. But we couldn't be more excited, not only just about the asset itself, and the very credit-worthy producers that are supporting that with long-term, large agency dedications and all that that's going to support the cryos. But what's even more exciting to us, which we don't even put in our numbers when we do acquisitions like this, is how it's going to really feed into our residue business, our downstream residue business, as well So we're just getting our arms around it.

Mackie: Your first one, we're very excited about WTG, excuse me.

Mackie: As you just said, we're barely almost a month into it, so we still have a lot of rocks to turn over, but we couldn't be more excited, not only just the asset itself.

Mackie Mccrea: And similarly with the JB with Sun on Newstar, just wondering what new opportunities that you see in front of you post you feel.

Speaker Change: and the very credit-worthy producers that are supporting that with long-term, large agri-dedications and all that that's going to support the cryos.

Mackie Mccrea: Hey, Jeremy, this is Mackie. I'll start with your first one. We're very excited about WTG, excuse me. As you just said, we're barely almost a month into it. We still have a lot of rocks to turn over, but we couldn't be more excited, not only just the assets itself, and the very credit worthy producers. They're supporting that with long-term, large acedetications and all that is going to support the cryos. But what's even more exciting to us that we don't even put in our numbers when we do acquisitions like this is how it's going to really feed into our residue business, our downstream residue business, as well as our long-starred NGO, the transport and fractionation business.

Jeremy Tonei: But what's even more exciting to us that we don't even put in our numbers when we do acquisitions like this.

Speaker Change: is how it's going to really feed.

Speaker Change: into our residue business, our downstream residue business.

Mackie: as well as our Lone Star and NGL transport and fractionation business. So we're just getting our arms around it. We're very excited about it. There's enormous growth.

Mackay McCrea: We're very excited about it. Enormous growth in that part of the Midland Basin that we have had little exposure to on the gas side, so we're very excited and looking forward to a lot of good things coming out of that acquisition. With New Star, we're excited about that too. Joe Kim has done an incredible job growing Sunoco.

Mackie: in that part of the Midland Basin that we have had a little exposure to on the gas side, so we're very excited and looking forward to a lot of good things coming out of that acquisition.

Joe: With New Star, we're excited about that too. Joe Kim has done an incredible job growing Sunoco, a

Mackay McCrea: They've kind of been in different areas, and they're evolving kind of into our areas, you know, the pipeline side, and we welcome them. We have a really good partnership with them right now, and JC Nolan that's gone really well, moving diesel from the Gulf Coast to West Texas. We have some deals with them up in the Northeast on transporting our refined products, and a lot of stuff going on with them.

Speaker Change: They've kind of been in different areas, and they're evolving kind of into our areas, you know, the pipeline side, and we welcome them. We have a really good partnership with them right now on JC Nolan that's gone really well, moving diesel from the Gulf Coast to West Texas. We've got some...

Mackie Mccrea: So we're just getting arms around it. We're very excited about there's enormous growth in that part of the middle and basin that we have had a little exposure to on the gas sides. So we're very excited and looking forward to a lot of good things come out of that acquisition.

Mackie: Some deals with them up in the northeast on transporting our refined products and a lot of stuff going on with them They're great partners. We look very much forward to

Mackay McCrea: They're great partners. We look very much forward to what we're going to do with them and that JV. Once again, that's not new news.

Mackie Mccrea: With new star, we're excited about that too. Jo Keeham has done a incredible job growing snow coat. They've kind of been in different areas and they're evolving kind of entire areas. You know, the pipeline side and we welcome, we have a really good partnership with them right now on J.C. Nolan that's got really what gone really well. Moving diesel from the Gulf Coast West Texas. We've got some deals with them up in the Northeast on transporting our refined products and a lot of stuff going on with them.

Mackay McCrea: We're getting our arms around that, but the bottom line is that it's going to be a lot better for both our partnerships than just one-on-one. It's going to be a lot, add up to a lot more than three or four on what we're already seeing, and provide a lot of benefits to the producers out there as we team up, but also a lot of downstream value for both our partnerships. So we're excited about both of them.

Mackie: what we're going to do with them and that JV.

Mackie: Once again, that's new news. We're getting our arms around that, but the bottom line is that's gonna be a lot better for both of our partnerships than just one-on-one. It's gonna add up to a lot more than three or four on what we're already seeing.

Mackie: We'll provide a lot of benefits to the producers out there as we team up, but also a lot of downstream value for both our partnerships. So we're excited about both of those deals.

Mackie Mccrea: They're great partners. We look very much forward to what we're going to do with them and that J.V. Once again, that's, you know, new news where getting arms around that, but the bottom line is that's going to be a lot better for both our partnerships than just one on one. It's going to be a lot, you know, add up to a lot more than three or four of what we're already seeing.

Jeremy Tonet: Got it. That's very helpful. Thank you. And just want to pivot to the Permian itself, if I could, you know, curious how you guys see the egress situation right now across the three different hydrocarbon chains and the need for incremental takeaway. Do you still see more discussion with Warrior at this point? And what do you think about the crude oil takeaway side as well?

Speaker Change: You got it. That's very helpful. Thank you.

Speaker Change: Just wanted to pivot to the Permian itself, if I could, you know, curious how you guys see the egress situation right now across the three different hydrocarbon chains and the need for incremental takeaway. Do you still see, you know, more...

Mackie Mccrea: Well, you know, provide a lot of benefits to the producers out there as we team up, but also a lot of downstream values for both our partnerships. So we're excited about both of those deals. Got it. That's very helpful. Thank you.

Speaker Change: discussion with Warrior at this point and how do you think about the crude oil takeaway side as well?

Mackay McCrea: Okay. Well, I'll tell you. I'll start with crude oil. We don't see a lot with crude oil. But we do see, you know, there needs to be quite a bit more growth to fill up what's there. We're probably a year or two away from any concerns around that, at least from our business standpoint, but we'll certainly keep an eye on that. But on Warrior, yeah, we've had some questions, both internally but mainly externally, about what the announcement going to Oglebillsey will do for Warrior. I'll just summarize that: zero.

Mackay McCrea: Okay, well, I'll tell you. I'll start with...

Speaker Change: Okay, well I'll tell you, I'll start with crude oil. We don't see a lot with crude oil. We do see...

Mackie Mccrea: And just wanted pivot to the permanent self if I could, you know, curious how you guys see the egress situation right now across the three different hydrocarbon chains and the need for incremental takeaway. Do you still see, you know, more discussion with Warrior at this point and how do you think about the crude oil take away side as well. Okay.

Speaker Change: you know there need to be quite a bit more growth to fill like what's there were probably year to away from any concerns around that leice from

Speaker Change: from our business standpoint, but we'll certainly keep an eye on that.

Speaker Change: But on Warrior, yeah, we've had some questions, both internally, but mainly externally, about what does the announcement going to Oglebuffie do at Warrior?

Mackay McCrea: The vast majority of the customers that we've already signed up and that we're pressing to sign up over the next 60 to 90 days have no desire for either their gas to be in south Texas or the markets that are supporting this project. So by no means has that slown us down. We're very, and I know we've talked about this quarter after quarter, but it has picked up steam. There is a tremendous market east, not south, but east, you know, heading through Texas and other parts of the country, really.

Speaker Change: I'll just summarize that, zero.

Mackie Mccrea: Well, I'll tell you about our start with Poodle. We don't see a lot with Poodle. We do see, you know, there need to be quite a bit more growth to fill up what's there. We're probably a year to away from any concerns around that, at least from from our business standpoint, but we'll certainly keep an eye on that. But on Warrior, yeah, we had some questions for both internally, but mainly externally about what does the announcement going to augustly do it, Warrior.

Speaker Change: The vast majority of the customers that we've already signed up.

Speaker Change: and we're pressing the sign up over the next 60 to 90 days.

Speaker Change: have no desire for either their gas to be in South Texas.

Speaker Change: or the markets that are supporting this project. So, by no means has that slown us down. We're very, and I know we've talked about this quarter after quarter, but it has picked up steam. There is a tremendous market east, not south, but east.

Mackie Mccrea: I'll just summarize that. Zero. The vast majority of the customers that we've already signed up and we're pressing the sign up over the next 60 to 90 days have another desire for either their gas to be in South Texas or the markets that are supporting this project. So by no means is that Sloan is down. We're very, and I know we've talked about this quarter after quarter, but it has picked up steam.

Mackay McCrea: And so we're very excited about where we sit on Warrior, and I'll just say that I'll be disappointed. Certainly not implying that we're almost FID, but I'll be disappointed if we're not announcing FID by our next earnings. We're working hard, and we'll see if we can get there. If we do announce that, it will be fully sold out.

Speaker Change: We're heading through Texas and other parts of the country, really, and so we're very excited about where we sit on Warrior, and I'll just say that I'll be disappointed. Certainly not implying that we're almost FID, but I'll be disappointed if we're not announcing FID by our next earnings call.

Speaker Change: We're working hard and we'll see if we can get there. If we do announce that, it will be fully sold out. We're not going to take any risk on overbuilding out of that basin, but there's still a lot of gas and oil growth for many years to come out of that basin, in our opinion.

Mackay McCrea: We're not going to take any risk on overbuilding out of that basin, but there's still a lot of gas and oil growth for many years to come out of that basin in our region. And then last one, you mentioned all three, but NGLs; we never worry about what others are doing around NGLs. We will build the necessary pipelines to move NGLs out of that area to meet the requirements, because the contracts we have with our.

Mackie Mccrea: There is a tremendous market east, not south, but east. You know, ahead and through Texas and other parts of the country really, and so we're very excited about where we sit on Warrior and I'll just say that I'll be disappointed. Certainly I'm playing that we're almost FID, but I'll be disappointed if we're not announcing FID by our next earnings column. We're working hard, and we'll see if we can get there. If we do announce that, it will be fully, you know, sold out.

Speaker Change: And then last one, you mentioned all three, but NGLs, we never worry about what others are doing around NGLs. We will build the necessary pipelines to move NGLs out of that area to meet the contracts we have with our customers.

Mackie Mccrea: We're not going to take any risk on over building out of that basin, but there's still a lot of gas and oil growth for many years to come out of that basin, in our opinion. And then last one, you mentioned all three, but NGLs, whenever we're about what others are doing around NGLs, and we will build the necessary pipelines to move NGLs out of that area to meet the contracts we have with our customers. Got it. That's very helpful.

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

John Mackay: Thank you. And the next question comes from John Mackay with Goldman Sachs.

Speaker Change: Thank you. And the next question comes from John Mackay with Colvin Sachs.

John Mackay: Thanks, everybody. Thanks. Thanks.

John Mackay: Hey, good morning, good afternoon. Thanks for the time. I wanted to, and you touched on a couple of these drivers, but maybe just a little more on the underlying business performance for the guidance update. Maybe just a little more color there and kind of how that looks for the back half of the year.

Mackie Mccrea: Thank you for that.

Speaker Change: Hey, good morning, good afternoon, thanks for the time. I wanted to, and you touched on a couple of these drivers.

Tom Wong: Yeah, John, this is Tom. I'll start, and then, you know, Mackay can add more later.

Speaker Change: Yeah, John , this is Tom. I'll start and then, you know, Mackay can add more on.

John McKay: Thank you, and the next question comes to John McKay with Goldman Sachs. Good afternoon. Thanks for the time. I wanted to, and you touched on a couple of these drivers, but maybe just a little more on the underlying business performance for the guidance update. Maybe just a little more color there, and kind of how that looks for the back half of the year.

Tom Wong: You know, as we said in our prepared remarks, we feel very good about the base business, and that's the reason why we were able to bring it up in addition to the acquisitions, not just the WTG. So when you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to, you know, be able to see additional benefits as we look out over the year.

Speaker Change: You know, as we said in prepared remarks, we feel very good about the base business. And that's the reason why we were able to bring it up in addition to...

macie: the acquisitions, not just the WTG, so...

Speaker Change: When you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to, you know, be able to...

Thomas Long: Yeah, John, this is Tom. I'll start, and then Mackay can add more on. As we said in prepared remarks, we feel very good about the base business. And that's the reason why we were able to bring it up in addition to the acquisitions, not just the WTG. So when you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to be able to see different additional benefits as we look out over the year, but now it was great to be able to continue to walk the guidance up for the year, even in this commodity environment, because as you know, we get a lot of extra pop when natural gas prices are higher, et cetera. But even with that, we're able to continue to extract good value out of the optimization group. And then if we're in, thanks for that.

Tom Wong: But no, it was great to be able to continue to walk the guidance up for the year, even in this commodity environment, because, as you know, we get a lot of extra pop when natural gas prices are high, etc. But even with that, we're able to continue to extract good value out of the optimization.

macie: to see additional benefits as we look out over the year. But no, it was great to be able to continue to walk the guidance up for the year, even in this commodity environment, because as you know, we get a lot of extra pop when natural gas prices are high.

Speaker Change: But even with that, we're able to continue to extract good value out of the optimization group.

John Mackay: Thanks for that. If we're looking at the CapEx side, obviously talking about WTG as a bit of a new growth platform to your point on the Midland side, maybe you could just frame up kind of how you're thinking about your broader CapEx look over the next couple of years, now that the footprint's bigger, now that you've kind of pulled in some of the new star assets as well, how that should trend versus your two to three you've talked about in the past.

Speaker Change: Thanks for that. If we're looking at the CapEx side, obviously talking about

Speaker Change: WTG as a bit of a new growth platform, to your point, on the Midland side.

Speaker Change: Maybe if you could just frame up kind of how you're thinking about your broader CapEx look over the next couple of years, now that the footprint's bigger, now that you've kind of pulled in some of the new star assets as well, how that should trend versus your, you know, 2 to 3 you've talked about in the past.

Tom Wong: No, that's actually a very, very good question. You know, as you know, we've just now closed on some of these transactions, and we're working through them right now. So, you know, we'll, as usual, come out with our 2025 guidance whenever we get to the fourth quarter earnings release. And at that time, we will, you know, we'll be able to scrub kind of the normal run rate. But you absolutely nailed it with our growth in our scale, our size, and with everything we're doing. Let us, let us scrub that a little bit more.

Thomas Long: If we're looking at the CAPEX side, obviously talking about WTG as a bit of a new growth platform to your point on the Midland side, maybe you could just frame up kind of how you're thinking about your broader CAPEX look at, CAPEX look over the next couple of years. Now the footprint's bigger, and then you've kind of pulled in some of the new star assets as well, how that should trend versus your two to three you've talked about in the past.

Speaker Change: That's actually a very, very good question. As you know, we've just now closed some of these transactions and we're working through it right now. So, as usual, we'll come out with our 2025 guidance whenever we get to it.

macie: the fourth quarter earnings release, and at that time we will...

macie: You know, we'll have able to scrub kind of the normal run rate, but you absolutely nailed it with our growth and our scale, our size, and with everything we're doing. Let us scrub that a little bit more so we won't just do...

Thomas Long: Now that's actually a very, very good question. You know, as you know, we've just now closed on some of these transactions and we're working through it right now. So as usual, we'll come out with our 2025 guidance whenever we get to the fourth quarter earnings release. And at that time, we will, you know, we'll have a built scrub kind of the normal run rate, but you absolutely nailed it with our growth and our scale, our size, and with everything we're doing, let us, let us scrub that a little bit more.

Tom Wong: So we won't just give you the 2025 number; we'll also kind of give you that ongoing run rate. But as of right now, you know, we've always had that two to 3 billion. If anything, it'll probably be at that 3 billion. But let us, let us do some more work on that before we give any official long-term run.

Speaker Change: give you the 2025 number will also kind of give you that ongoing run rate, but as of right now, you know, we've always had that two to three billion.

Speaker Change: You know, if anything, it'll be probably at that $3 billion, but let us do some more work on that before we give any official long-term run rate.

John Mackay: All right. That makes sense. I appreciate the time. Thank you.

Speaker Change: All right. That makes sense. Appreciate the time. Thank you.

Keith Stanley: Thank you. The next question comes from Keith Stanley with World Research.

Thomas Long: So we won't just do, give you the 2025 number. We'll also kind of give you that ongoing run rate. But as of right now, you know, we've always had that two to three billion. And it, you know, if anything, it'll be, you know, it'll be probably at that three billion. But let us, let us do some more work on that before we give any official long term run rate.

Speaker Change: Yeah, thank you.

Keith Stanley: Hi, good afternoon. First, just wanted to ask about M&A. Most of your recent deals, including WTG, have been buying G&P businesses and leveraging NGLs. Is that still the main focus for future M&A, or could you broaden it out? And then, with the JV with Sun, could that partnership potentially play a role in M&A, or is the JV exclusively about optimizing the existing assets?

Speaker Change: Thank you. The next question comes from Keith Stanley with World Research.

Mackay McCrea: Yeah, okay. Yeah, I'll start with the end of that question. Yeah, right now, the way that is structured, the JV in the Midland Basin, it's not to go out and acquire that. That's not to say that if there are some gathering assets or other assets in that area that fall kind of within that AMI, that we wouldn't approach that together and, certainly, in our agreement with them, but right now, the main focus is really developing those systems together and achieving as much of the upside that we can downstream of that partnership with our other business.

Keith Stanley: Hi, good afternoon.

Keith Stanley: First, I just wanted to ask on M&A, most of your recent deals, including WTG, have been buying G&P businesses and leveraging the NGLs. Is that still the main focus for future M&A, or could you broaden it out? And then with the JV with Sun...

Thomas Long: All right. That makes sense. Appreciate the time. Thank you. Yeah. Thank you.

Speaker Change: Could that partnership potentially play a role in M&A, or is the JV exclusively about optimizing the existing assets?

Michael Blum: Hi, good afternoon. First, just wanted to ask on M&A, most of your recent deals, including WTG, have been buying G&P businesses and leveraging the NGLs. Is that still the main focus for future M&A, or could you broaden it out? And then with the JV with Sun, could that partnership potentially play a role in M&A, or is the JV exclusively about optimizing the existing assets?

Keith Stanley: Yeah.

Speaker Change: Okay, yeah, I'll start with the end of that question. Yeah, right now, the way that it's structured, the JV in the Midland Basin, it's not to go out and acquire it. That's not to say that if there's some gathering assets or other assets in that area that fall kind of within that AMI, that we wouldn't approach that together.

Keith Stanley: That's certainly in our agreement with them, but right now the main focus is really developing out those systems together and achieving as much of the upside that we can downstream of that partnership with our other business.

Mackie Mccrea: Yeah, I'll start with the end of that question. Yeah, right now, the way that is structured, the JV in the middle of the base, and it's not to go out in the garden. That's not to say that if there's some gathering assets or other assets, in that area that fall kind of within that AMI, that we wouldn't approach that together, and that certainly in our agreement with them, but right now, the main focus is really developing out those systems together and achieving as much of the upside that we can downstream of that partnership with our other business and further downstream revenues.

Tom Wong: Yeah, and listen, I'll chime in here, this is Tom, kind of the first part of your question, just in general where we focus. First off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream. And when you see how diversified we are across all the commodities, and we go all the way from the wellhead to the water, to our export facilities, we're looking really pretty much across the board.

Keith Stanley: and further downstream revenues.

Speaker Change: Yeah, and listen, I'll chime in here, this is Tom, kind of the first part of your question, just in general, where we focus.

Speaker Change: First off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream. When you see how diversified we are across all the commodities, and we go all the way from the wellhead to the water.

Tom Wong: We wouldn't want to dial you in to any specific area, but the way you asked the question was actually very good. Just like what Mackay said on the WTG, we are able to extract a lot of benefits downstream when we, let's say, get into the gathering and processing. And it's across all the commodities. It's not tied to any one commodity, so we think that we still have a lot of opportunities there, and we're going to continue to evaluate them.

Speaker Change: to our export facilities. We're looking really pretty much across the board. We wouldn't want to dial you in to any, you know, specific area. But the way you asked the question was was actually very good, just like what Mackay said on the WTG.

Thomas Long: Yeah, and listen, I'll chime in here at this time, kind of the first part of your question, just in general, where we focus. First off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream. And when you see how diversified we are across all the commodities, and we go all the way from the well head to our through the water, to our export facilities, we're looking really pretty much across the board.

Speaker Change: We are able to extract a lot of benefits downstream when we, let's say, get into the gathering processes, and it's across all the commodities.

Speaker Change: It's not tied to any one commodity, so we think that we still have a lot of opportunities there and we're going to continue to evaluate those opportunities.

Thomas Long: We wouldn't want to dial you into any specific area, but the way you asked the question was actually very good. Just like what Mackie said on the WTG, we are able to extract a lot of benefits downstream when we, let's say, get into the gathering and processing. And it's across all the commodities. It's not tied to any one commodity. So we think that we still have a lot of opportunities there, and we're going to continue to evaluate those opportunities.

Keith Stanley: Thanks for that. Second question: with Double H moving to NGL service out of the Bakken, has that impacted discussions on recontracting Dakota Access at all, and how are you thinking about recontracting on Dakota Access in terms of the timing and terms you're looking for?

Speaker Change: yeah

Michael Blum: Thanks for that.

Speaker Change: Thanks for that. Second question, with with Double H moving to NGL service out of the Bakken,

Speaker Change: Has that impacted discussions on re-contracting Dakota Access at all? And how are you thinking about re-contracting on Dakota Access in terms of the timing and terms you're looking for?

Mackay McCrea: Yeah, Keith, this is Mackay. No, that hadn't really spurred any new thoughts around that. I guess I'd summarize where we are. We are kind of the pipeline of choice out of there, as you know. We move more than 50% of the barrels out of the Bakken. We do have the ability to move significantly more if there's any growth. And certainly doesn't hurt our feelings if there's going to be 60,000 to 80,000 barrels that were leaving the basin that now we'll be looking for another way out because we think we'll continue to move the majority of the barrels out of that region.

Speaker Change: No, that hadn't really spurred any new thoughts around that. I guess I'd summarize where we're at. We are kind of the pipeline of choice out of there, as you know. We move more than

Keith Stanley: Second question with double-leach moving to NGL service out of the box. Has that impacted discussions on re-contracting Dakota access at all, and how are you thinking about re-contracting on Dakota access in terms of the timing and terms you're looking for?

Speaker Change: 50% of the barrel without the balk in.

Speaker Change: We do have the ability to move significantly more if there's any growth.

Speaker Change: certainly doesn't hurt our feelings if there's going to be 68,000 barrels that was leaving the base that now we'll be looking for.

Mackay McCrea: But we do think that we'll end up sooner than later rolling out or extending some of the agreements that we have. But we really don't have a lot of angst or concern for the reasons I just said. We offer more flexibility by going to the mid-continent refineries and, of course, all the way down to the Gulf Coast, to the Beaumont and Houston areas, as well as Bayou Bridge. So it's unparalleled with the flexibility and the optionality that we're given as producers. So we sit in a very good position, and we're very confident that we will keep Dakota access full at healthy spreads for many years. Thank you.

Speaker Change: another way out because we...

Speaker Change: We think we'll continue to move the majority of the barrels out of that region, but we do think that we'll end up sooner than later rolling or extending some of the agreements that we have. But we really don't have a lot of angst or concern for the reasons I just said.

Mackie Mccrea: Yeah, Keith, this is Mackie. No, that hadn't really spurred. He needs a new thoughts around that.

Mackie Mccrea: I guess I'd summarize where we're at. We are kind of the pipeline of choice out of there. As you know, we move more than 50% of the barrels out of the box, and we do have the bill to move significantly more if there's any growth, and it's certainly done under our feeling that there's going to be 60,000 barrels that was leaving the base, that now we'll be looking for another way out, because we think we'll continue to move the majority of the barrels out of that region.

Speaker Change: We offer more flexibility by going to the mid-continent refineries and, of course, all the way down to the Gulf Coast.

Speaker Change: in the Beaumont-Houston area as well as Bayou Bridge, so we just, you know, it's unparalleled with the flexibility and the optionality that we're giving for producers, so we sit in a very good position and we're very confident that we will keep Dakota Access full at healthy spreads.

Mackie Mccrea: But we do think that we'll end up through the later role in our extending some of the agreements that we have, but we really don't have a lot of angst or concern for the reasons I just said. We offer more flexibility by going to the mid-continent refineries, and of course, all the way down to the Gulf Coast, to the Beaumont, Houston area, as well as Bayou Bridge. So we just... You know, it's unparalleled with the flexibility and the optionality that we're given for producers.

Speaker Change: for many years. Thank you.

Theresa Chen: Thank you. The next question comes from Theresa Chen with Barclays.

Speaker Change: Thank you. And the next question comes from Theresa Chen with Barclays.

Theresa Chen: Good afternoon. Going back to the comments related to the downstream synergies following the formation of the Permian JV with Sun, can you talk about what timeframe the long-haul pipeline commitments will roll over from the legacy new star gathering system for the barrels that are not already on your long-haul system?

Speaker Change: Good afternoon. Going back to the comments related to the downstream synergies following the formation of the Permian-JV with Sun,

Mackie Mccrea: So we're sitting in a very good position and we're very confident that we will keep Dakota access full at healthy spreads for many years.

Speaker Change: Can you talk about what time frame the long-haul pipeline commitments roll over from the legacy New Star Gathering system for the barrels that are not already on your long-haul system?

Mackie Mccrea: Thank you.

Mackay McCrea: Yeah, this... This is Mackay again. No, most of the business that New Star had now, Sunoco and our JV, is just gathering dust. So it's gathering that base, and it's delivering it through pipelines like Energy Transfer or other competing pipelines in the area. So that JV is a large area, the AMI, that encompasses Energy Transfer's old gathering business in the Permian Basin but does not include any of the downstream pipelines, for example, that go to Neyland or up to Cushing. So that's, we're gonna work very closely with New Stars, I mean, sorry, with Finoco as part of that JV, but that's just confined to the gathering part of that business.

Theresa Chen: And the next question comes to Theresa Chen with Barclays. Good afternoon. Going back to the comments related to the downstream synergies.

Speaker Change: Yeah, this-

Mackay: This is Mackay again. No, most of the business that New Star had now, Sunoco and RJV, is just gathering.

Mackie Mccrea: Following the formation of the Permian JB with Sun, can you talk about what time frame the Long Hall pipeline commitments roll over from the legacy new star gathering system for the barrels that are not already on your long haul system? Yeah, this is Mackay again. No, most of the business that new star had now snoco and our JV is just gathering. So it's gathering that base and it's delivered through pipelines like energy transfer or other competing pipelines in the area.

Speaker Change: So it's gathering that base and it's delivered through pipelines like energy transfer or other competing pipelines in the area. So that JV is a large area, the AMI, the...

Speaker Change: encompasses energy transfer, oil gathering business in the Permian Basin, but does not include any of the downstream pipelines, for example, that go to Neyland or up to Cushy.

Speaker Change: So, that's, we're going to work very closely with New Stars, I mean, I'm sorry, with Finoco as part of that JV, but that's just confined in the gathering part of that business.

Mackie Mccrea: So that JV is a large here, the AMI that encompasses energy transfer, old gathering business in the Permian Basin. But does not include any of the downstream pipelines, for example, they go to me or up to cushy. So that's we're going to work very closely with with with new stars. I mean, I'm sorry with Sunoko as part of that JV, but that just confined in the gathering part of that business.

Theresa Chen: For the barrels that are not committed to Permian Express, when can you roll them onto Permian Express over the next few years?

Speaker Change: Right. I meant to ask, for the barrels that are not committed onto Permian Express, when can you roll them onto Permian Express over the next few years?

Mackay McCrea: I'd answer it like this: we're probably gathering 1.5 million barrels, and we can move less than that out of it. So we don't necessarily have any necessarily dedicated barrels from any particular area other than shippers that have taken space on our pipeline system. So right now, I really couldn't say what exact molecules will come from this JV may feed into our downstream business. We kind of take it as a whole.

Speaker Change: You know, I'd answer it like this, is that we're probably gathering 1.5 million barrels

Speaker Change: and we can move less than that out of it, so we don't have any.

Speaker Change: necessarily dedicated barrels from any

Speaker Change: any particular area other than shippers that have taken space on our

Mackie Mccrea: Right, I meant to ask for the barrels that are not committed on to Permian Express. When can you roll them on to Permian Express over the next few years? You know, the answer like this is that we're probably gathering 1.5 million barrels and we can move less than that out of it. So we don't have any necessarily dedicated barrels from any any particular area other than shippers that have taken space on our our pipeline system.

Speaker Change: pipeline systems. So right now I really couldn't say what exact molecules will come from this JV may feed into our downstream business.

Mackay McCrea: Also, there are different qualities of oil, whether it's WTL or WTI that come involved. So there's a lot more kind of thought process going into this. But yeah, at the end of the day, certainly this JV and the business of gathering oil will continue to feed our downstream business both in Nederland and at our Houston terminal, as well as one day, hopefully, to our Blue Marlin project.

Speaker Change: we kind of take it as a whole. Also, there's different qualities of

Speaker Change: Oil, whether it's WTL or WTI that come involved, so there's a lot more kind of thought process going into this. But yeah, at the end of the day, certainly this JV and the business of gathering oil

Speaker Change: will continue to feed our downstream business, both to Nederland, to our Houston terminal, as well as one day, hopefully, to our Blue Marlin project.

Mackie Mccrea: So right now, I really couldn't say what exact molecules will come from this JV may feed into our downstream business. We kind of take it as a whole. Also, there's different qualities of oil, whether it's WTL or WTL that come involved. So there's a lot more kind of thought process going into this. But yeah, into the day, certainly this JV and the business of gathering will continue to feed our downstream business both. Two needle and two are Houston terminal as well as one day, hopefully two are blue are the project. Got it.

Theresa Chen: Got it. And can you just provide some incremental detail on the marketing strengths in the NGLs and refined product segment this quarter? What drove that, and how much of that is repeatable?

Speaker Change: Got it. And can you just provide some incremental detail on the marketing strengths in the NGLs and refined product segment this quarter? What drove that and how much of that is repeatable?

Dylan Bramhall: Hi, this is Dylan. So for that NGL marketing line item, there's a lot of activities that go into that various optimization in the Gulf Coast and the Northeast. Over the last quarter, where we really saw the great performances from the Gulf Coast NGL group, it had a really strong quarter. And it's really comparing back to the second quarter last year, when we did have an LCM write-down on hedged inventory. And additionally, we also had some strong margins for both the butane and gasoline blending businesses in the North.

Speaker Change: This is Dylan. So that NGO marketing line item, there's a lot of activities that go into that, various optimization in the Gulf Coast and the Northeast.

Speaker Change: Over the last quarter, where we really saw the great performances from the Gulf Coast NGL group, it had a really strong quarter, and it's really comparing back to the second quarter last year when we did have an LCM write-down on hedged inventory. And additionally to that, we also had some strong margins for both the butane and gasoline blending businesses in the Northeast.

Dylan Bramhall: And can you just provide some incremental detail on the marketing strength in the NGL and refine product segment disorder?

Dylan Bramhall: What drove that and how much of that is repeatable?

Dylan Bramhall: Yeah, Jason, hi, this is this is Dylan. So that that NGL marketing line item is a lot of activities going to that various optimization in the Gulf Coast and Northeast over the last quarter where we really saw the great performances from the Gulf Coast NGL group. I had a really strong quarter and it's really comparing back to the second quarter last year when we did have an LCM right down on hedge inventory. And additionally to that, we also had some strong margins for both the butane and gasoline blending businesses in the North, please.

Dylan Bramhall: Thank you.

Constance Spiro Dounis: Thank you. And the next question is from Constance Spiro Dounis with Citi.

Speaker Change: Thank you.

Speaker Change: Thank you. And the next question, Constance Spiro Dounis with Citi.

Tom Wong: Good afternoon, team. First question, I actually wanted to ask you guys about your global growth ambitions. I know in the past you've talked about an NGL pipeline in Panama, and recently your name was sort of mentioned alongside another South American oil and gas project, and so I respect that you might not be able to talk about project specifics, but just curious, do you have ambitions to grow on a global level, and is that something that you do under the MLP structure?

Speaker Change: Thanks, everybody. Afternoon, team.

Speaker Change: First question, I actually want to ask you guys about your global growth ambitions. I know in the past you've talked about an NGL Panama pipeline and recently your name was sort of mentioned alongside another South American oil and gas project and so I respect that you might not be able to talk about project specifics but just curious, do you have ambitions to grow on a global level and is that something that you do under the MLP structure?

Spiro Dounis: And then ask questions from Spiro Dounis with City. Thanks, Everett, afternoon team. First question, I actually want to ask you guys about your global growth ambitions. I know in the past you've talked about an NGO, Panama Pipeline, and recently your name was sort of mentioned alongside another South American oil and gas project.

Tom Wong: Yes, this is Tom. That's the quick answer. We think it's the right thing to do for our partnership here. It makes a lot of sense with all that we've built out across all the commodities. So we continue to evaluate it, evaluate various opportunities when you look across the globe. I will tell you that we will always be very careful with any risk as we look at these.

Speaker Change: Yes, this is Tom. That's the quick answer. We think it's the right thing to do for, you know, for our partnership here. It makes a lot of sense with all that we've built out across all the commodities.

Speaker Change: So we continue to evaluate various opportunities when you look across the globe. I will tell you that we will always be very...

Thomas Long: And so I respect the amount of able to talk about projects, the specifics, but just curious, do you have an ambition to grow on a global level? And is that something that you do under the MLP structure?

Speaker Change: Careful with any risk as we look at these. We'll make sure they're good fits for us, that we can bring a lot of value. But we're well aware of the risk, country risk, etc., that come along with each of these.

Thomas Long: Yes, this is Tom. That's the quick answer. We think it's the right thing to do for, you know, for our partnership here. It makes a lot of sense with all that we built out across all the commodities. So we continue to evaluate it, evaluate various opportunities when you look across the globe. I will tell you that we will always be very careful with any risk. As we look at these, we'll make sure they're good fits for us that we can bring a lot of value, but we're well aware of the risk, country risk, et cetera, that come along with each of these.

Tom Wong: We'll make sure they're good fits for us, that we can bring a lot of value, but we're well aware of the risks, country risk, et cetera, that come along with each of them. And it's, you know, but we once again think that we've got the right team to be able to extract value when you look out globally, but we will, like I said, it'll be credit risk, country risk, etc.

Tom Wong: And when you get, you know, get involved with some of the, you know, some of these various companies that are in these other countries, you can do a lot of stuff with them globally. Look at it. So we will continue to evaluate but be very thorough in our evaluation.

Speaker Change: But we once again think that we've got the right team to be able to extract value when you look out globally. But we will, like I said, it will be credit risk, country risk, etc.

Speaker Change: And when you get involved with some of these various companies that are in these other countries, you can do a lot of stuff with them globally.

Speaker Change: When you look at it, so we will continue at least to evaluate, but be very thorough in our evaluation.

Thomas Long: And it's, you know, when you look out globally, but we will, like I said, it'll be credit risk, country risk, et cetera. And when you get, you know, you get involved with some of the, you know, some of these various companies that are in these other countries, you can do a lot of stuff with them globally when you look at it. So we will continue at least to evaluate, but be very thorough in our evaluation.

Constance Spiro Dounis: Yeah, helpful, Tom. Maybe to switch gears back here domestically, this power demand or power generation demand thesis kind of snuck up on a lot of the market here, and it sounds like you all have a few irons in the fire even on the data center side. So just curious if you could frame for us how you're thinking about the timing of when some of these projects start to show up in earnings, and maybe, as we think about the scope and size, are we talking about greenfield expansions here, brownfield, just help us understand the opportunity in front of you.

Tom: Got it. Helpful, Tom. Maybe to switch gears back here domestically, this power demand or power gen,

Speaker Change: Demand thesis kind of really snuck up on a lot of the market here, and it sounds like you all have a few irons in the fire, even on the data center side, so just curious you could frame for us how you're thinking about the timing of when some of these projects start to show up in earnings, and maybe as we think about the scope and size.

Speaker Change: Are we talking about greenfield expansions here or brownfields? Just help us understand the opportunity in front of you.

Mackie Mccrea: Yeah, it's helpful, Tom. And maybe switch gears back here domestically. This power demand or power gen demand thesis kind of really snuck up on a lot of the market here. And it sounds like you all have a few irons in the fire, even on the data center side. So just curious, you could frame for us how you're thinking about the timing of when some of these projects start to show up and earnings. And maybe as we think about the scope and size, are we talking about green field expansions here, brown field, just to understand the opportunity in front of you?

Mackay McCrea: Yeah, this is Mackay, and I'm actually not going to answer your question at first because I do want to make a statement. I thought about this when we were preparing.

Speaker Change: Yeah, this is Mackay, and I'm actually not going to answer your question at first, because I do want to make a statement. I thought about this when we were preparing.

Mackay McCrea: Bill Berg and his team do a great job of summarizing some of our competitors and their earnings calls and how they did, and I find it interesting as I think back on it, that we've got competitors talking about their oil business, which is the vast majority of what they do, or they talk about their NGL and oil business, which is the vast majority, or their all-natural gas, and what a blessing and how fortunate we are as a partnership with I mean, we are so well positioned to meet this demand growth across the board for natural gas and other commodities.

Speaker Change: Bill Berg and his team do a great job of summarizing some of our competitors and their earnings call and how they did.

Speaker Change: Now, I find it interesting as I think back about it, about we've got competitors talk about their oil business, which is the vast majority of what they do, or they talk about their NGL and oil business, which is the vast majority, or their all-natural gas, and what a blessing and how fortunate we are as a partnership with such great employees running this business.

Mackie Mccrea: Yeah, this is Mackie.

Mackie Mccrea: And I'm actually not going to answer your question at first, because I do want to make a statement. I thought about this and we're preparing Bill Bergen's team to a great job of summarizing some of our competitors and their earnings call and how they did. And I find it interesting. And I think back about it about, we've got competitors talked about their old business, which is the vast majority of what they do.

Speaker Change: and the breadth of our pipeline system, our terminal, our storage throughout the U.S. I mean, we're so well positioned to meet

Mackay McCrea: So, we feel very fortunate, and we're going to take advantage of that. In answering your question, you know, we keep hearing about transition for years, the last four years. Well, I guess everybody's kind of seeing the truth.

Speaker Change: This demand growth across the board for natural gas and other commodities, so we feel very fortunate and we're going to take advantage of that. So in answering your question, you know, we keep hearing about transition for years, the last four years, transition, well I guess everybody's kind of seeing the truth.

Mackie Mccrea: Are they talked about their NGL and old business, which is the vast majority? Are they, they're all natural gas? And what a blessing and how fortunate we are as a partnership with such great employees running this business and the breadth of our pipeline system, our terminal are stored throughout the U.S. I mean, we're so well positioned to meet the demand growth across the board for natural gas and other commodities. So we, we feel very fortunate and we're going to take advantage of that.

Mackay McCrea: The transition is, we're about to transition into untold demand for natural gas, and in that case, also natural gas liquids internationally. So, as I just mentioned, nobody's better positioned for us. Other than the Eastern Seaboard, if you look at our pipeline interstate network, as I just said, we have over 233 BCF of storage along all of our systems to really meet the demands. We're situated very well to meet all the upcoming demands. You mentioned data centers. Yes, we're in four or five different states in discussions with multiple data centers of different sizes.

Speaker Change: The transition is, we're about to transition into untold demand for natural gas, and for that case, also natural gas liquids internationally. So as I just mentioned, nobody's better positioned for us, other than the Eastern Seaboard, if you look at our pipeline intrastate network.

Mackie Mccrea: So in answering your question, we keep talking about here and about transition per year, the last four years transition. Well, I guess everybody's kind of seeing the truth. The transition is we're about to transition into untold demand for natural gas. And for that case, also natural gas liquids internationally. So as I just mentioned, nobody's better positioned for other than the Eastern Seaboard. If you look at our pipeline interest state, interstate network, you look at it what I just said, we have over 233 BCF of storage along all of our systems.

Speaker Change: You look at what I just said, we have over 233 BCF of storage along all of our systems.

Speaker Change: to really meet the demands. We're situated very well to meet all the upcoming demands. You mentioned data centers. Yes, we're in.

Mackay McCrea: Some of them, or many of them, want to put generation on site and are wanting as much as two or three hundred thousand CF for each one. So, it's an enormous opportunity for us. As I mentioned, we're very advantaged in many of these areas to capture a lot of this business, as well as for power plant demand for natural gas. We see that going up astronomically. We think we could increase the demand here for electricity over the next six to eight years by 30 or 40,000 megawatts, at least here in Texas.

Speaker Change: four or five different states in discussions with multiple data centers of different sizes. Some of them, or many of them, want to put generation on site and wanting as much as 200,000 or 300,000 CF for each.

Mackie Mccrea: Systems to really meet the demands. We're situated very well to meet all the up and demands. You mentioned data center. Yes, we're in four or five different states in discussions with multiple data centers of different sizes. Some of them are many of them want to put generation on site and wanting as much as two or three hundred thousand set for each one. So it's an enormous opportunity for us. As I mentioned, we're very advanced in many of these areas to capture a lot of this business.

Speaker Change: So it's an enormous opportunity for us. As I mentioned, we're very advantaged in many of these areas to capture a lot of this business, as well as for the power plant demand for natural gas. We see that going up astronomically. We think we could increase...

Mackie Mccrea: As well as for the power plant demand per natural gas. We see that going up astronomically. We think we could increase the demand here for electricity over the next six to eight years by 30 or 40,000 megawatts at least here just in Texas and that you go to other states similar type needs. Once again, we're very well positioned. And then you add on to that. I mean, we've got population growth in Florida and Texas.

Speaker Change: The demand here for electricity over the next six to eight years, about 30 or 40,000 megawatts at least.

Mackay McCrea: And that, you go to other states, with similar needs. Once again, we're very well positioned. And then you add on to that. I mean, we've got population growth in Florida and Texas behind all these gas utilities that we'll be feeding and growing our business. You've got, heck, Blue Ammonia.

Speaker Change: here just in Texas, and that you go to other states, similar type needs, once again, we're very well positioned. And then you add on to that. I mean, we've got population growth.

Speaker Change: in Florida and Texas, behind all these gas utilities that we'll be feeding and growing our business. You've got, heck, a little more. Just what we're working with along with a handful of folks.

Mackay McCrea: Just what we're working with along with a handful of folks. If it comes to fruition, the majority of that, we're looking at between one and two BCF of natural gas deliveries to our terminals, close to our terminals for Blue Ammonia. And then you throw in crypto, and on and on. So, yeah, we're very bullish. I know that's a long-winded answer to your question, but we couldn't be more excited about the transfer, I mean, the growth in natural gas demand and how we're going to be able to take advantage of that with our product.

Speaker Change: If it comes to fruition, the majority of that, we're looking at between one and two BCF.

Speaker Change: of Natural Gas Deliveries to our terminals.

Speaker Change: Close to our terminals for blue ammonia, and then you throw in crypto, and on and on. So yeah, we're very bullish. I know that's a long-winded answer to your question, but we couldn't be more excited about the natural gas demand growth.

Mackie Mccrea: But behind all these gas utilities that will be feeding and growing our business, you've got blue amount of just what we're working with along with a handful of folks. If it comes to fruition, the majority of that, we're looking at between one and two BCF of natural gas deliveries to our terminals close to our terminals for blue ammonia. And then you throw in crypto and on and on. So yeah, we're we're very bullish.

Constance Spiro Dounis: It's a great color, Macky. I'll leave it there. Thanks so much.

Speaker Change: and how we're going to be able to take advantage of that with our broad system.

Speaker Change: No, it's great color, Macky. I'll leave it there. Thanks so much.

Michael Blum: Thank you, and the next question comes from Michael Blum with Wells Fargo.

Speaker Change: Thank you. And the next question comes from Michael Blum with Wells Fargo.

Michael Blum: Thanks. Good afternoon, everyone. I want to go back to Kendra Morgan's Double H conversion announcement. I'm wondering if you could possibly participate in this project in any way, either upstream or downstream of Double H, and if you could remind us of the contract terms or the NGO vows you have under the Crestwood Act.

Michael Blum: Thanks, good afternoon everyone. I want to go back to Kinder Morgan's HH conversion announcement. Wondering if you could possibly participate in this project in any way there.

Mackie Mccrea: I know that long-winded answer to your question. But we're could be more excited about the transfer, I mean, the natural gas demand growth and how we're going to be able to take advantage of that with our broad system.

Michael Blum: Upstream or Downstream of Double H and if you could remind us on the contract terms of the NGO bowels you have from the Crestwood acquisition.

Mackie Mccrea: That's great fellow Mackie. I'll leave it there. Thanks so much. Thank you.

Mackay McCrea: Yeah, that's a good question, Michael, because that's really where we see a couple of benefits. But one of them is that we are chasing a couple of pretty big deals. And we've got available capacity that's already sitting there waiting for us, processing capacity with the Crestwood assets. We do intend to fill that, and now there's competition. Now, when you have a monopoly, it's hard to get a good net back price for your producer or for your business.

Michael Blum: And then that's question on some Michael Bloom with Wells Fargo. Thanks.

Speaker Change: yeah that's a good question michael because that's really where you know we see a couple of benefits but one of meuse we are chas a couple of pretty big deals and we've got available capacity that's alreadysitin a weight waititing for process the capacity with the crestwood assets

Michael Blum: Good afternoon, everyone. I want to go back to Kim and Morgan's double H conversion announcement. What are you if you could possibly participate in this project in any way there? Upstream or downstream of double H and if you could remind us on the contract terms of the NGO battles you have from the Crestwood acquisition. Yeah, that's a good question, Michael, because that's really where we see a couple of benefits. But one of them is we are chasing a couple of pretty big deals.

Speaker Change: And we do intend to fill that, and now there's competition.

Speaker Change: Now, when you have a monopoly, it's hard to get a good net back price for your producer or for your business, and that's changing. So we're excited and intrigued that Kendra is doing this. It's kind of something more like we do. So we love that. Like I said, it's not going to hurt our feelings that there may be 60,000 or 80,000 more barrels looking for a home on our property.

Mackay McCrea: And that's changing. So we're excited and intrigued that Kender is doing this; it's kind of something more like we do. So we love that, and like I said, it's not gonna hurt our feelings that there may be 60 or 80,000 more barrels looking for a home on our Dakota access. Now, downstream, we certainly are in discussions, and we love and feel like we probably will see some of those barrels at a minimum at a crack.

Michael Blum: And we've got available capacity that's already sitting there waiting for a processing capacity with the Crestwood assets. And we do intend to fill that in. Now there's competition. Now when you have a monopoly, it's hard to get a good net back price for your producer or for your business and that's changing. So we're we're excited and intrigued that that a tender is doing this. It's kind of something more like we do.

Michael Blum: on our Dakota Access. Now, downstream, we certainly are in discussions and...

Mackay McCrea: But we're just in early discussions and certainly see that as another potential upside for what Kender's doing. But mainly, we like what's going on up the basin and what it will do for our own assets.

Michael Blum: We love and feel like we probably will see some of those barrels at a minimum at our frack but we're just in early discussions and certainly see that as a

Michael Blum: Another potential upside for what Kinder's doing, but mainly we like what's going on up in the basin and what it'll do for our own assets up there.

Michael Blum: Okay, perfect. Thanks for that.

Michael Blum: So we love that. Like I said, it's not in her feelings that there may be six to 80,000 more barrels looking for a home on our on our Dakota access now downstream. We certainly are in discussions and we love and feel like we probably will see some most barrels at a minimum out of frack. But we're just in early discussions and certainly see that as another potential upside for what kinders doing. But mainly we like what's going on up the base and what it will do for our our own assets up there.

Michael Blum: Okay, perfect. Thanks for that.

Speaker Change: Okay, perfect. Thanks for that. And then just wanted to get your latest thoughts on what's happening in Haynesville, North Louisiana. Obviously, there's been the legal challenges. Some of that's sort of now transpired. So, just wanted to get your latest thoughts there.

Michael Blum: And then just wanted to get your latest thoughts on what's happening in Haynesville, North Louisiana. Obviously, there have been the legal challenges. Some of that's sort of already transpired. So just wanted to get your latest thoughts there. Okay, yeah, you know, Marshall.

Mackay McCrea: OK, yeah, Marcel, Utica, and Hainesville, tough areas over the last quarter. A lot of lean gas, a lot of drilling slowing down, even some shut-ins. So we've seen those two basins in Hainesville especially come off, what, 2, 2 and 1 half BCF, I think, just since the end of last year. But we are seeing it start to recover. And its prices start to recover.

Speaker Change: Okay, yeah, Marcel, Utica, and Haynesville, tough areas over the last quarter, a lot of lean gas, a lot of...

Marcel: You know drilling slowing down even some shut-in so we've seen

Michael Blum: And then just wanted to get your latest thoughts on what's happening in Haynesville, North Louisiana. She's been the legal challenges. Some of that sort of now transpired.

Speaker Change: Those two basins in Hainesville especially come off, what, two to an FBCF, I think, just since the end of last year.

Mackay McCrea: The enormous reserves in North Louisiana, we have multiple 42-inch pipes running through North Louisiana, actually three. We've got a Gulf Run extension to the south. We have the ability to increase the capacity on that relatively easily. And we've got a lot of potential to grow there, and so does the industry. When you're talking about the issues in Louisiana, I'll touch on those real quick.

Speaker Change: we are seeing start to recover as a process start to recover the enormous reserves north louviiana we have

Mackie Mccrea: So just wanted to get your your latest thoughts there. And then just wanted to get your latest thoughts there. Okay, yeah, you know, Marcel Utica and Haynesville, top areas, all the last quarter, you know, a lot of lean gas, a lot of, you know, drilling, slowing down even some shut-ins so we've seen those two basins, and Haynesville especially come off what to to an BCF, I think just sent to the end of last year, but we are seeing a start to recover as a process, start to recover.

Speaker Change: Multiple 42-inch pipes running through North Louisiana, actually three.

Speaker Change: We've got a Gulf Run extension to the south, we have the ability to...

Speaker Change: increase the capacity on that relatively easy.

Speaker Change: and

Speaker Change: and you know we've got a lot of potential to grow there and so does the industry. When you're talking about the issues in Louisiana, I'll touch on those real quick. You know we are

Mackay McCrea: We are in a lawsuit with one company, but at a high level, there were three companies that were looking for, I think it was 150, 160 crossings of our pipelines. And we deal with this every day, whether it's other pipeline companies, or utility companies, or electric companies, or whatever. It's a normal part of our business.

Speaker Change: in a lawsuit with one company. But from a high level, there were three companies that were looking for, I think it was 150, 160 crossings or pipelines. And we deal with this every day, whether it's other pipeline companies, or utility companies, or electric companies, or whatever, it's a normal

Mackie Mccrea: The enormous reserves in North Louisiana, we have multiple 42-inch of pipes running through North Louisiana, actually three, we've got a Gulf run extension to the south, we have the ability to increase the capacity on that relatively easy, and we've got a lot of potential to grow there, and so does the industry.

Mackay McCrea: But what happened was, with two of these pipeline companies, we needed technical data. We needed to work with them on where they were crossing it. How are they going to impact our rotaway? How are they going to impact our furrowed rotaways? How are they possibly going to adversely affect our safety, our employees? So it's important to us to have answers to our questions, as we always ask and get. And two of the pipelines work with us.

Speaker Change: Part of our business, but what happened was with two of these pipeline companies. We needed technical data We need to work with them on where are they crossing it? How are they going to impact our right-of-way? How are they going to impact our right-of-way our first right-of-ways? How are they maybe? any

Mackie Mccrea: When you're talking about the issues in Louisiana, I'll touch on those real quick, you know, we are in a lawsuit with one company, but from a high level, there were three companies that were looking for, I think it was 150, 160 crossings of our pipelines, and we deal with this every day, whether it's other pipeline companies, or utility companies, or electric companies, or whatever, it's a normal part of our business, but what happened was with two of these pipeline companies, we needed technical data, we need to work with them on where they cross, and how are they going to impact our route away, how are they going to impact our route away, our fourth route away, how are they maybe adversely possibly affect our safety, our employees, so it's important to us to have answers to our questions like we always ask and get, and two of the pipelines work with us, we have one pipeline that has rejected or refused to provide that technical data, and all we're doing is protecting our rights, and we'll continue to do this as a partnership, and we'll see how that plays out. Thank you.

Speaker Change: adversely, possibly affect our safety, our employees. So it's important to us to have answers to our questions, like we always ask and get. And two of the pipelines work with us. We have one pipeline that has rejected or refused to provide that technical data, and all we're doing is protecting our rights.

Mackay McCrea: We have one pipeline that has rejected or refused to provide that technical data, and all we're doing is protecting our rights, and we'll continue to do this as a partnership, and we'll see kind of how that plays out.

Speaker Change: And we'll continue to do this as a partnership, and we'll see kind of how that plays out.

Speaker Change: Thank you.

Operator: And this concludes our question and answer session. I would like to return the floor to Tom Long for any closing comments.

Speaker Change: Thank you. And this concludes our question and answer session. I would like to return the floor to Tom Long for any closing comments.

Tom Long: All right, well, we definitely appreciate you all joining us. I do want to add one more comment here at the end.

Tom Long: Alright, well we definitely appreciate y'all all joining us. I do want to add one one more comment here at the end.

Tom Long: You know, we do get a lot of inbounds. I'm gonna go back to the global question a little bit here. We have a lot of hard assets, second to none across this country, but another significant asset we... We mention occasionally but can't ever emphasize enough is the team, the human resource side of the team. All the inbounds that we get globally are a huge, huge compliment to the second-to-none team that we have, the operations team, and the BD team. I think it's recognized globally, and that's the reason a lot of inbounds do come to us. We take it as, like I said, a massive compliment that our name is used out there a lot.

Speaker Change: You know what? We do get a lot of inbounds. I'm going to go back to the global question a little bit here. We have a lot of hard assets, second to none across this country, but another significant asset we just...

Thomas Long: Thank you, and this concludes our question and answer session, I would like to return the floor to Tom Wong for any closing comments. All right, well we definitely appreciate y'all all joining us.

Speaker Change: with

Speaker Change: We mention occasionally, but can't ever emphasize enough is the team, the human resource side of the team.

Speaker Change: This all the inbounds that we get globally is a huge huge compliment to the second to none

Thomas Long: I do want to add one more comment here at the end. You know, we do get a lot of imbounds, I'm going to go back to the global question a little bit here. We have a lot of hard assets, second to none across this country, but another significant asset we just we we we mentioned occasionally, but I ain't ever mentioned emphasize enough is the is the is the team, the human resource side of the team.

Speaker Change: team that we have operations team bd team you know i think it's recognized globally and that's the reason a lot of inbounds do come to us and

Speaker Change: And we take it as, like I said, a massive compliment that our name is used out there a lot. But anyway, I wanted to make sure I got that in. But thank all of y'all for joining us, and we look forward to talking with all of you with any follow-up questions.

Thomas Long: This all the imbounds that we get globally is a huge, huge compliment to the second to none team that we have operations team, the DD team. You know, I think it's recognized globally, and that's the reason a lot of imbounds do come to us, and we take it as like I said, a massive compliment that our name is used out there a lot. But anyway, I wanted to make sure I got that in, but thank all of y'all for joining us, and we look forward to talking with all of you with any follow-up questions. Thanks. Thank you.

Speaker Change: Thank you. The conference has now concluded. Thank you for attending today's presentation made out of Central Alliance.

Operator: The conference has all concluded. Thank you for attending today's presentation, made out of centralized. Thank you very much.

Speaker Change: © The Bulletproof Executive 2013

Speaker Change: www.EnergyTonet.com www.EnergyTonet.com

Speaker Change: ? ? ? ? ? ? ? ? ?

Operator: [inaudible] 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To enjoy your question, please press star then two. Please note, this event is being recorded.

Speaker Change: www.EnergyTransferEquity.com www.EnergyTransferEquity.com

Speaker Change: why

Speaker Change: ohright

Operator: But anyway, wanted to make sure I got that in, but thank all of you for joining us, and we look forward to talking with all of you with any follow-up questions. Thanks. Thank you. The conference has now concluded. Thank you for attending today's presentation made by CenturyLine. BF-WATCH TV 2021 BF-WATCH TV 2021, [music]

Speaker Change: Good day and welcome to the Energy Transfer Q2 2024 Earnings Conference Call.

Speaker Change: All participants will be on listen-only mode.

Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. [music]

Speaker Change: Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.

Speaker Change: After today's presentation, there will be an opportunity to ask questions.

Speaker Change: To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note, this event is being recorded.

Operator: .......

Speaker Change: I now would like to turn the conference over to Tom Wong, co-CEO. Please go ahead, sir.

Tom Long: Good day, and welcome to the Energy Transfer Q2, Earnings Conference. All participants will be on the, if you need assistance. I'm pleased to do a conference specialist for Pressing the Star Key, folks. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 0. Please note, this event is being recorded. Now, I'd like to turn the conference over to Tom Long. Please go ahead, sir.

Tom Wong: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer second quarter 2024 earnings call. I'm also joined today by Mackay McCrea and other members of the senior management team.

Tom Long: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer Second Quarter 2024 earnings call. I'm also joined today by Mackay McCrea and other members of the senior management team, who are here to help answer your questions after our prepared remarks. Hopefully, you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MD&A that goes through the segment results in detail, and we encourage everyone to look at the release, as well as the slides posted to our website, to gain a full understanding of the quarter and our growth opportunities. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934.

Speaker Change: who are here to help answer your questions after our prepared remarks.

Speaker Change: Hopefully, you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MD&A that goes through the segment results in detail, and we encourage everyone to look at the release.

Thomas Long: I now would like to turn the conference over to Tom Long, co-CEO. Please go ahead, sir. Thank you, operator.

Thomas Long: Good afternoon, everyone, and welcome to the Energy Transfer Second Quarter 2024 earnings call. I'm also joined today by Mackie McCrea and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MDNA that goes through the segment results in detail and we encourage everyone to look at the release as well as the slides posted to our website to gain a full understanding of the quarter and our growth opportunities.

Speaker Change: as well as the slides posted to our website to gain a full understanding of the quarter and our growth opportunities.

Speaker Change: as a reminder we will be making forward-looking statements within the meaning of section twotwentyand one y of the security exchange act of onethousand ninehundred and thirtyfour

Tom Long: These statements are based upon our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more detail in our Forum 10Q for the quarter ended June 30, 2024, which we expect to file tomorrow, August 8th. I'll also refer to Adjusted EBITDA and Distributable Cash Flow, or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website.

Speaker Change: These statements are based upon our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more detail in our Form 10-Q for the quarter ended June 30, 2024, which we expect to file tomorrow, August the 8th.

Speaker Change: I'll also refer to Adjusted EBITDA and Distributable Cash Flow, or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website.

Thomas Long: As a reminder, we will be making forward-looking statements within the meaning of section 21e of the Security Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us. And are discussed in more details in our form 10Q for the quarter-ended June 30, 2024, which we expect to file tomorrow, August the 8th. I'll also refer to adjusted EBITDA and Distrivial Cash Flow or DCF, both of which are non-GAP financial measures. You will find a reconciliation of our non-GAP measures on our website.

Tom Long: I will start today by going over our financial results for the second quarter of 2024. We generated adjusted EBITDA of $3.76 billion compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expenses. Absent these transaction costs, Adjusted EBITDA would have been over $3.8 billion.

Speaker Change: I will start today by going over our financial results.

Speaker Change: For the second quarter of 2024, we generated a just EBITDA of $3.76 billion, compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expense.

Speaker Change: absent these transaction cost adjusted ebitda would have been over three point eight billion dollars

Tom Long: We had record volumes through our crude oil and NGL pipelines as well as record NGL exports. We also saw strong performance from our engine fractionators and our refined products pipelines and terminals. DCF attributable to the partners of energy transfer, as adjusted, was $2 billion, compared to $1.6 billion for the second quarter of 2023.

Thomas Long: I will start today by going over our financial results for the second quarter of 2024. We generated adjusted EBITDA of $3.76 billion compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expense. Absent these transaction costs, adjusted EBITDA would have been over $3.8 billion. We had record volumes through our Crudo and NGL pipelines as well as record NGL exports. We also saw strong performance from our NGL fractionators and our refined products pipelines and terminals.

Speaker Change: We had record volumes through our crude oil and NGL pipelines.

Speaker Change: as well as record NGL exports.

Speaker Change: We also saw strong performance from our NGF fractionators and our refined products pipelines and terminals.

Speaker Change: DCF attributable to the partners of Energy Transfer, as adjusted, was $2 billion compared to $1.6 billion for the second quarter of 2023.

Tom Long: And for the six months of 2024, we spent approximately $1 billion on organic growth capital, primarily in the midstream and NGL and refined product segments, excluding Sun and USA Compression Capital. Now turning to our results by segment for the second quarter, let's start with NGL and refined products. Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023.

Speaker Change: And for the six months of 2024, we spent approximately $1 billion on organic growth capital, primarily in the midstream and NGL and refined product segments.

Tom Long: The increase was primarily due to growth across our transportation, fractionation, and terminal operations, including records for both Mariner East and Permian Pipeline volumes, as well as NGL Export. In addition, we had higher gains from the optimization of hedged NGL inventory. For midstream, Adjusted EBITDA was $693 million, compared to $579 million for the second quarter of 2023. The increase was primarily due to the addition of the Crestwood assets, as well as higher volumes in the premium basis. For our crude oil segment, adjusted EBITDA was $801 million, compared to $674 million for the second quarter of 2023.

Speaker Change: excluding Sun and USA Compression CapEx.

Speaker Change: Now turning to our results by segment for the second quarter, let's start with NGL and refined products.

Thomas Long: DCF, a trivial to the partners of energy transfer, as adjusted, was $2 billion compared to $1.6 billion for the second quarter of 2023. And for the six months of 2024, we spent a probably $1 billion on organic growth capital, primarily in the midstream and NGL refined product segments, excluding Sun and USA Compression CapEx.

Speaker Change: Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023.

Speaker Change: The increase was primarily due to growth across our transportation, fractionation, and terminal operations, including records in both Mariner East and Permian Pipeline volumes.

Speaker Change: as well as ngll exports in addition we had higher gains from the optimization of hedged ngll inventory

Thomas Long: Now turning to our results by segment for the second quarter, let's start with NGL and refined products. Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023. The increase was primarily due to growth across our transportation, fractionation, and terminal operations, including records in both marinaries and Permian pipeline volumes, as well as NGL exports. In addition, we had higher gains from the optimization of hedged NGL inventory.

Speaker Change: for midstream adjusted ebitda was six hundred ninety-three million dollars compared to five hundred seventy-nine million dollars for the second quarter of two thousand and twenty three the increase was primarily due to the addition of the crereswood assets as well as higher volumes in the permiian basin

Speaker Change: For our crude oil segment, adjusted EBITDA was $801 million, compared to $674 million for the second quarter of 2023.

Tom Long: The increase was primarily due to record crude oil transportation throughput, an increase in our total crude oil exports, which were up 11%, as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023, respectively. Excluding these acquisitions, adjusted EBITDA and crude oil transportation volumes on our base business increased 4% and 8%, respectively. In our interstate segment, Adjusted EBITDA was $392 million compared to $441 million for the second quarter of 2023.

Thomas Long: For midstream, adjusted EBITDA was $693 million compared to $579 million for the second quarter of 2023. The increase was primarily due to the addition of the Crestwood assets as well as higher volumes in the Permian base, for our Crudal segment, Adjusted EBITDA was $801 million compared to $674 million for the second quarter of 2023. The increase was primarily due to record Crudal transportation throughput and increase in our total Crudal exports, which were up 11%, as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023 respectively. Exploding these acquisitions, Adjusted EBITDA and Crudal transportation volumes on our base business increased 4% and 8% respectively.

Speaker Change: The increase was primarily due to record crude oil transportation throughput, an increase in our total crude oil exports, which were up 11 percent, as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023, respectively.

Speaker Change: Excluding these acquisitions, adjusted EBITDA and crude oil transportation volumes on our base business increased 4% and 8% respectively.

Speaker Change: In our interstate segment, adjusted EBITDA was $392 million, compared to $441 million for the second quarter of 2023.

Tom Long: During the quarter, we saw higher contracted volumes on trunk line, pebble, gulf line, and MRT. However, this was offset by lower operational gas sales, a maintenance project cost of $12 million, as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case. For the intrastate segment, adjusted EBITDA was $328 million compared to $216 million in the second quarter of last year.

Speaker Change: During the quarter, we saw higher contracted volumes on trunk line, pebble, gulf run, and MRT. This was offset by lower operational gas sales.

Speaker Change: maintenance project cost of $12 million as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case.

Thomas Long: In our interstate segment, Adjusted EBITDA was $392 million compared to $441 million for the second quarter of 2023. During the quarter, we saw higher contracted volumes on trunk line, pebble, golf run, and MRT. This was offset by lower operational gas sales, maintenance project cost of $12 million, as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case.

Speaker Change: For the intrastate segment, adjusted EBITDA was $328 million compared to $216 million in the second quarter of last year.

Tom Long: The increase was primarily due to approximately $75 million of increased gains related to pipeline optimization opportunities, as well as favorable storage optimization opportunities. In July 2024, Energy Transfer completed the acquisition of WTG, which provides Energy Transfer with increased access to growing supplies of natural gas and NGL volumes and enhances our Permian operations and downstream business. Integration of the combined assets is underway, and we are really excited about the great customer base and the growing gas supply behind this asset.

Speaker Change: the increase was primarily due to approximately seventy-five million dollars of an increased gains related to pipeline optimization opportunities as well as favorable storage optimization opportunities

Speaker Change: In July 2024, Energy Transfer completed the acquisition of WTG, which provides Energy Transfer with increased access to growing supplies of natural gas and NGL volumes and enhances our Permian operations and downstream businesses.

Thomas Long: For the interest rate segment, Adjusted EBITDA was $328 million compared to $216 million in the second quarter of last year. The increase was primarily due to approximately $75 million of increased gains related to pipeline optimization opportunities, as well as favorable storage optimization opportunities.

Speaker Change: integration of the combined assets is underway and we are really excited about a great customer base and the growing gas supply behind this asset

Tom Long: Since closing the transaction, the 200 million cubic foot per day Red Lake 3 processing plant has been placed into service. We expect volumes to ramp up quickly as more residue takeaway becomes available, also in July 2024. Energy Transfer and Sunoco LP announced the formation of a joint venture combining the respective crude oil and produced water gathering assets in the Permian Basin.

Thomas Long: In July 2024, Energy Transfer completed the acquisition of WTG, which provides energy transfer with increased access to growing supplies of natural gas and NGL volumes, and enhances our Permian operations and downstream businesses. Integration of the combined assets is underway and we are really excited about great customer base and the growing gas supply behind this asset. Since closing the transaction, the 200 million cubic foot per day Red Lake 3 processing plant was placed into service. We expect volumes to ramp up quickly as more residue take away becomes available.

Speaker Change: Since closing the transaction, the 200 million cubic foot per day Red Lake 3 processing plant was placed into service. We expect volumes to ramp up quickly as more residue takeaway becomes available.

Speaker Change: Also, in July 2024, Energy Transfer and Sunoco LP announced the formation of a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin.

Tom Long: This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers. Now turning to our growth projects and starting with our Niederland and Marcus Hook export terminals. Construction of the expansions to our NGL export capacity at Niederland continues to progress, and we remain on schedule for an anticipated start-up in mid-2025 for the initial phases of the project.

Speaker Change: This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers.

Tom Long: And at our Marcus Hipp Terminal, construction continues to progress on the first phase of an optimization project. Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian Basin. We recently approved our ninth fractionator at Montbellevue. FRAC 9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026.

Thomas Long: Also in July 2024, Energy Transfer and Sonoco LP announced the formation of joint venture combining the respective crude oil and produced water gathering assets in the Permian base. This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers.

Speaker Change: Now turning to our growth projects.

Speaker Change: and starting with our neerland and barkcoo export terminals

Speaker Change: Construction of the expansions to our NGL export capacity at Needlin continues to progress.

Speaker Change: And we remain on schedule for an anticipated in-service in mid-2025 for the initial phases of the project.

Speaker Change: And at our MARCUSIP terminal, construction continues to progress on the first phase of an optimization project.

Thomas Long: Now, turning to our growth projects and starting with our needyland and markisook export terminals, construction of the expansions to our NGL export capacity at needyland continues to progress, and we remain on schedule for an anticipated end service in mid 2025 for the initial phases of the project. And at our Marcusip terminal construction continues to press on the first phase of an optimization project. Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian base.

Speaker Change: Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian Basin.

Speaker Change: We recently approved our ninth fractionator at Montbellevue.

Speaker Change: FRAC 9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026.

Tom Long: This will bring our total fractionation capacity at Mount Bellevue to more than 1.3 million barrels per day. In addition, we recently placed a previously unutilized 2 million barrel butane storage well back into service, bringing our current NGL storage capacity at Mont Belvieu to approximately 62 million barrels.

Speaker Change: this will bring our total fractionation fast at mont belvieue to more than one point three million barrels per day in addition we recently placed a previously unutilized two million barrels bututtained storage well back into service

Thomas Long: Jason. We recently approved our ninth fractionator at Montbell View. Fract 9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026. This will bring our total fractionation capacity at Montbell View to more than 1.3 million barrels per day. In addition, we recently placed a previously unutilized 2 million barrels butane storage well back into service, bringing our current NGL storage capacity at Montbell View to approximately 62 million barrels.

Speaker Change: bringing our current NGL storage capacity at Mont Belvieu to approximately 62 million barrels.

Tom Long: Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities, which will add approximately 200 million cubic feet of processing capacity in West Texas. And in June, we announced plans to construct the 200 million cubic feet per day Badger processing plant in the Permian Basin. This plant, which is expected to be in service in mid-2025, will utilize an idle plant that is to be relocated to the Delaware Basin, which will help save capital versus building a new plant. In North Louisiana, we placed trains 1 and 2 of our AJAX treating facility into service in July. These trains have a combined treatment capacity of approximately 300 million cubic feet per day.

Speaker Change: Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities, which will add approximately 200 million cubic feet per day of processing capacity in West Texas.

Speaker Change: And in June , we announced plans to construct the 200 million cubic feet per day badger processing plant in the Permian Basin.

Speaker Change: this plant which is expected be in service in mid two thousand and twenty -five will utilize an idle plant that is to be relocated to the delaware basin which will help save capital versus building a new planant

Thomas Long: Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities which will add approximately 200 million cubic feet per day of processing capacity in West Texas. And in June, we announced plans to construct the 200 million cubic feet per day badger processing plant in the Permian Basin. This plant which is expected to be in service in mid 2025 will utilize an idle plant that is to be relocated to the Delaware Basin which will help save capital versus building a new plant.

Speaker Change: In North Louisiana, we placed trains 1 and 2 of our AJAX treating facility into service in July . These trains have a combined treating capacity of approximately 300 million cubic feet per day.

Tom Long: Now for a brief update on our opportunities around power generation. With forecasts for electricity demand growth becoming increasingly bullish and the need for grid reliability becoming increasingly important, it is clear that natural gas will play a significant role in helping meet this demand. Given Energy Transfer's extensive interstate and intrastate natural gas pipeline footprint, we believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs. We currently serve gas-fired power plants in 15 states, with approximately 185 plants served via direct or indirect connections throughout these states.

Speaker Change: Now, for a brief update on our opportunities around pap regeneration.

Speaker Change: With forecasts for electricity demand growth becoming increasingly bullish, and the need for grid reliability becoming progressively more important, it is clear that natural gas will play a significant role in helping meet this demand.

Thomas Long: In North Louisiana, we placed trains 1 and 2 of our Ajax treating facility into service in July. These trains have a combined treating capacity of approximately 300 million cubic feet per day.

Speaker Change: Given Energy Transfer's extensive interstate and intrastate natural gas pipeline footprint, we believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs.

Thomas Long: Now for a brief update on our opportunities around generation with forecast for electricity demand growth becoming increasingly bullish and the need for grid reliability becoming progressively more important. It is clear that natural gas will play a significant role in helping meet this demand. Given energy transfers, extensive interstate and interstate natural gas pipeline footprint, we believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs. We currently serve gas fired power plants in 15 states with approximately 185 plants served via direct or indirect connections throughout these states.

Speaker Change: We currently serve gas-fired power plants in 15 states with approximately 185 plants.

Tom Long: And we have recently signed deals across our systems to provide gas loads of over 500,000 MMBTUs per day. In addition, as mentioned last quarter, we have approved the construction of eight 10-megawatt natural gas-fired electric generation units to support the partnership's operations in Texas. We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers. We also continue to make progress on the development of several other growth projects, including our Warrior Blue Marlin Offshore Project, Lake Charles LNG, a carbon capture and sequestration project with Capture Point, and Blue Ammonia Hubs at Lake Charles and Nederland.

Speaker Change: served via direct or indirect connections throughout these states. And we have recently signed deals across our systems to provide gas loads of over 500,000 MMBTUs per day.

Speaker Change: In addition, as mentioned last quarter, we have approved the construction of eight 10-megawatt natural gas-fired electric generation facilities to support the partnership's operations in Texas.

Speaker Change: We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers.

Thomas Long: We have recently signed deals across our systems to provide gas loads of over 500,000 MMBTUs per day. In addition, as mentioned last quarter, we have approved the construction of 8 10 MW natural gas fired electric generation facilities to support the partnerships operations in Texas. We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers.

Speaker Change: We also continue to make progress on the development of several other growth projects, including our Warrior Blue Marlin offshore project, Lake Charles LNG, a carbon capture and sequestration project with Capture Point, and Blue Ammonia Hubs at Lake Charles and Nederland.

Tom Long: We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID. Looking ahead at our 2024 Organic Growth Capital Guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion, which will be spent primarily in the NGL and refined products and midstream segments. The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker return projects in the crude oil segment related to the Crestwood acquisition.

Speaker Change: We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID.

Thomas Long: We also continue to make progress on the development of several other growth projects, including our Warrior, Blue Marlin Offshore Project, Lake Charles LNG, a carbon capture and sequestration project with capture point and Blue ammonia hubs at Lake Charles and Nataline. We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID.

Speaker Change: Looking ahead at our 2024 organic growth capital guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion, which will be spent primarily in the NGL and refined products and midstream segments.

Speaker Change: The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker returning projects in the crude oil segment related to the Crestwood acquisition.

Thomas Long: Looking ahead at our 2024 organic growth capital guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion, which will be spent primarily in the NGL and refine products and midstream segments. Awards. The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker returning projects in the Crude Oil segment related to the Crestwood Acquisition.

Tom Long: Now turning to our adjusted EBITDA guidance, we are raising our 2024 adjusted EBITDA guidance to be between $15.3 to $15.5 billion compared to our prior guidance range of $15 to $15.3 billion. Our 2024 guidance has been updated to include our acquisition of WTG, which closed on July 15th, and outperformance in the base business, even with over $100 million in transaction costs also included within our full year guidance. We continue to be excited about our business and the demand for our products and services, both domestically and internationally.

Speaker Change: Now turning to our adjusted EBITDA guidance, we are raising our 2024 adjusted EBITDA guidance to be between $15.3 to $15.5 billion compared to our prior guidance range of $15 to $15.3 billion.

Speaker Change: Our 2024 guidance has been updated to include our acquisition of WTG, which closed on July 15th, and outperformance in the base business, even with over $100 million transaction costs also included within our full year guidance.

Thomas Long: Now, turning to our Justice EBITDA guidance, we are raising our 2024 Justice EBITDA guidance to be between $15.3 to $15.5 billion. Compared to our prior guidance range of $15.3 billion. Our 2024 guidance has been updated to include our acquisition of WTG which closed on July 15th and outperformance in the base business, even with over $100 million transaction costs also included within our full year guidance. We continue to be excited about our business and the demand for our products and services, both domestically and internationally.

Speaker Change: We continue to be excited about our business and the demand for our products and services, both domestically and internationally.

Tom Long: We're in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns. And we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate and increasing equity returns to our unit holders. In addition, we are pleased to see that, in June, Moody's upgraded our senior unsecured credit rating to BAA2, which further demonstrates the strides that we have made to strengthen our balance sheet and financial position.

Speaker Change: We're in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns.

Speaker Change: And we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate, and increasing equity returns to our unit holders.

Thomas Long: We are in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns. And we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate, and increasing equity returns to our unit holders.

Speaker Change: in addition we are pleased to see that in june moodies upgraded our senior unsecured credit rating to be double two which further demonstrates the strides that we have made to strengthen our balance sheet and financial position

Operator: This concludes our prepared remarks. Operator, please open the line up for our first question. Yes, thank you. We will now begin the question and answer session.

Speaker Change: This concludes our prepared remarks. Operator, please open the line up for our first question. Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad.

Operator: Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing star. At any time when your question has been addressed and you would like to withdraw it, please press star then 2. At this time, we will pause momentarily to assemble the roster. And the first question comes from Jeremy Tonet of JP Morgan.

Thomas Long: In addition, we are pleased to see that in June, Moody's upgraded our Senior Unsecured Credit Rating to B-882, which further demonstrates the strides that we have made to strengthen our balance sheet and financial position.

Speaker Change: If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: me time your questions and addressed you'd liketowithdriveplease press start intoat this time we have falluse momentarily to cemble the roster

Speaker Change: And the first question comes from Jeremy Tonet with J.P. Morgan.

Thomas Long: This concludes our prepared remarks.

Operator: Operator, please open the line up for our first question. Yes, thank you. We will now begin the question and answer session. Do I ask a question you may press star them on on your telephone keypad? If you are using a speaker phone, please pick up your hands up before pressing the keys. If any time your question is unaddressed, do I withdraw it? Please press star them too.

Jeremy Tonet: Hi, good afternoon.

Jeremy Tonet: Just wanted to start off, if I could, I appreciate the call, but as it relates to WTG, with a month in the books, I just wondered if you could talk a bit more, I guess, on what you see as far as commercial opportunities there, and, you know, similarly with the debut with Sun on New Star, just wondering what new opportunities you see in front of you post-seasonally.

Jeremy Tonet: Good afternoon.

Jeremy Tonet: Jeremy.

Jeremy Tonet: I just wanted to start off, if I could, I appreciate the caller on the call, but as it relates to WTG, with a month in the books, I was just wondering if you could talk a bit more, I guess, on what you see as far as commercial opportunities there, and similarly with the

Operator: At this time, we will pause momentarily to assemble the roster.

Jeremy Tonet: And the first question comes from Jeremy John A, with JV Morgan. All right, good afternoon. Good afternoon.

Speaker Change: J.B. with Sun on Newstar. Just wondering what new opportunities set you see in front of you post-CCO?

Mackay McCrea: Hey, Jeremy, this is Mackay. I'll start with your first one.

Mackie Mccrea: Jeremy, I just wanted to start off if I could appreciate the color and the call, but as it relates to WPG with a month in the book, so I just wanted if you could talk a bit more, I guess, and what you see as far as commercial opportunities there. And similarly with the JV with Sun on NewStar, just wondering what new opportunities that you see in front of you post you feel.

Jeremy Tonet: Hey, Jeremy, this is Macky. I'll start with...

Mackay McCrea: We're very excited about WTG. Excuse me. As you just said, we're barely almost a month into it, and we still have a lot of rocks to turn over. But we couldn't be more excited, not only just about the asset itself, and the very credit-worthy producers that are supporting that with long-term, large agri-dedications and all that that's going to support the cryos. But what's even more exciting to us, which we don't even put in our numbers when we do acquisitions like this, is how it's going to really feed into our residue business, our downstream residue So we're just getting our arms around it.

Macky: your first one we're very excited about wtg excuse me as you just said we're barely almost a month into it we've still have a lot of rocks and over but we couldn't be more excited not only just they asked setss itself

Jeremy Tonet: And the very credit-worthy producers that are supporting that with long-term, large agri-dedications and all that that's going to support the cryos.

Mackie Mccrea: Hey, Jeremy, this is Mackie. I'll start with your first one. We're very excited about WPG. Excuse me. As you just said, we're barely almost a month into it. We still have a lot of rocks in turnover, but we couldn't be more excited if not only just the assets itself and the very credit worthy producers there supporting that with long-term, large age dedications and all that to support the cryos. But what's even more exciting to us that we don't even put in our numbers when we do acquisitions like this is how it's going to really feed into our residue business, our downstream residue business, as well as our long-star and NGO that transport and fractionation business.

Jeremy Tonet: But what's even more exciting to us that we don't even put in our numbers when we do acquisitions like this.

Jeremy Tonet: is how it's going to really feed.

Jeremy Tonet: into our residue business, our downstream residue business.

Jeremy Tonet: as well as our Lone Star and NGL transport and fractionation business. So we're just getting our arms around it. We're very excited about it. There's enormous growth in that part of the Midland Basin that we have had little exposure to on the gas side, so we're very excited and looking forward to a lot of good things coming out of that acquisition.

Mackay McCrea: We're very excited about it. There's enormous growth in that part of the Midland Basin that we have had little exposure to on the gas side, so we're very excited and looking forward to a lot of good things coming out of that acquisition. With New Star, we're excited about that too. Joe Kim has done an incredible job growing Sunoco.

Speaker Change: With New Star, we're excited about that too. Joe Kim has done an incredible job growing Sunoco. They've kind of been in different areas and they're evolving kind of entire areas, you know, the pipeline side, and we welcome them. We have a really good partnership with them right now and JC Nolan that's gone really well.

Mackay McCrea: They've kind of been in different areas, and they're evolving kind of into our areas, you know, the pipeline side, and we welcome them. We have a really good partnership with them right now, and JC Nolan that's gone really well, moving diesel from the Gulf Coast to West Texas and deals with them up in the Northeast on transporting our refined products and a lot of stuff going on with them. They're great partners.

Mackie Mccrea: So we're just getting arms around that we're very excited about. There's enormous growth in that part of the Midland Basin that we have had little exposure to on the gas side. So we're very excited and looking forward to a lot of good things coming out of that acquisition. Foundation. With Newstar, we're excited about that too, Joe Kim has done an incredible job growing Sonoco. They've kind of been in different areas and they're evolving kind of entire areas.

Speaker Change: Moving diesel from the Gulf Coast to West Texas, we've got some...

Speaker Change: some deals with them up in the northeast transporting our co reffinine products and a lot of stuff going on withddownn there are great partners we look very much forward to

Mackay McCrea: We look very much forward to what we're going to do with them and that JV. Once again, that's not news. We're getting our arms around that, but the bottom line is that it's going to be a lot better for both of our partnerships than just one-on-one. It's going to be a lot, and add up to a lot more than three or four on what we're already seeing. We can provide a lot of benefits to the producers out there as we team up, but also a lot of downstream value for both our partnerships. We're excited about both of them.

Speaker Change: what we're going to do with them and that JV.

Speaker Change: Once again, that's new news. We're getting arms around that. But the bottom line is that's gonna be a lot better for both of our partnerships than just one-on-one. It's gonna add up to a lot more than three or four on what we're already seeing.

Mackie Mccrea: You know, the pipeline side and we welcome, we have a really good partnership with them right now and JC Nolan that's got really gone really well, moving diesel from the Gulf Coast to West Texas. We've got some deals with them up in the Northeast on transporting our refined products and a lot of stuff going on with them. They're great partners. We look very much forward to what we're going to do with them in that JV.

Jeremy Tonet: will, you know, provide a lot of benefits to the producers out there as we team up, but also a lot of downstream value for both our partnerships. So we're excited about both of those deals.

Jeremy Tonet: Got it. That's very helpful. Thank you.

Mackie Mccrea: Once again, that's you know new news, we're getting our arms around that but the bottom line is that's going to be a lot better for both our partnerships than just one on one. It's going to be a lot, you know, add up to a lot more than three or four on what we're already seeing. We'll, you know, provide a lot of benefits to the producers out there as we team up but also a lot of downstream value for both our partnerships. So we're excited about both of those deals. Got it. That's very helpful. Thank you.

Speaker Change: You got it. That's very helpful. Thank you.

Jeremy Tonet: And just wanted to pivot to the Permian itself, if I could. You know, curious how you guys see the egress situation right now across the three different hydrocarbon chains and the need for incremental takeaway. Do you still see more discussion with Warrior at this point? And how do you think about the crude oil takeaway side as well?

Speaker Change: Just wanted to pivot to the Permian itself, if I could, you know, curious how you guys see the egress situation right now across the three different hydrocarbon chains and the need for incremental takeaway. Do you still see, you know, more...

Speaker Change: Discussion with Warrior at this point and how do you think about the crude oil takeaway side as well?

Mackay McCrea: Okay. Well, I'll tell you. I'll start with crude oil. We don't see a lot with crude oil. But we do see, you know, there needs to be quite a bit more growth to fill up what's there. We're probably a year or two away from any concerns around that, at least from our business standpoint, but we'll certainly keep an eye on that. But on Warrior, yeah, we've had some questions, both internally but mainly externally, about what the announcement going to Oglebillcy will do for Warrior. I'll just summarize that: zero.

Mackay McCrea: Okay, well I'll tell you what I'll start with...

Speaker Change: Okay, well I'll tell you, I'll start with crude oil. We don't see a lot with crude oil, we do see...

Mackie Mccrea: And just wanted pivot to the permeant itself if I could, you know, curious how you guys see the egress situation right now across the three different hydrocarbon chains and the need for incremental takeaway. Do you still see, you know, more discussion with Warrior at this point and how do you think about the Crude oil takeaway side as well? Okay. Well, I'll start with Crude oil. We don't see a lot with Crude oil.

Speaker Change: There needs to be quite a bit more growth to fill up what's there. We're probably a year or two away from any concerns around that, at least from...

Speaker Change: from our business standpoint, but we'll certainly keep an eye on that.

Speaker Change: but on warrior yet we had some questions with both internally but mainly externally about what does the announcement going to augwillilly do a waryor

Mackay McCrea: The vast majority of the customers that we've already signed up and that we're pressing to sign up over the next 60 to 90 days have no desire for either their gas to be in south Texas or the markets that are supporting this project. So by no means is that slowing us down. We're very, and I know we've talked about this quarter after quarter, but it has picked up steam. There is a tremendous market east, not south, but east, you know, heading through Texas and other parts of the country, really.

Speaker Change: I'll just summarize that, zero.

Speaker Change: the vast majority of the customers that we've already signed up

Mackie Mccrea: We do see, you know, there needs to be quite a bit more growth to fill up what's there. We're probably a year or two away from any concerns around that at least from our business standpoint but we'll certainly keep an eye on that but on Warrior. Yeah, we had some questions both internally but mainly externally about what does the announcement going to arguably do Warrior? I'll just summarize that zero. The vast majority of the customers that we've already signed up and we're pressing the sign up over the next 60 to 90 days have no desire for either their gas to be in South Texas or the markets that are supporting this project.

Jeremy Tonet: and we're pressing the sign up over the next 60 to 90 days.

Speaker Change: have not desire for either there a gas to be in south texas

Speaker Change: or the markets that are supporting this project. So, by no means is that slowing us down. We're very, and I know we've talked about this quarter after quarter, but it has picked up steam. There is a tremendous market east, not south, but east.

Mackay McCrea: And so we're very excited about where we sit on Warrior, and I'll just say that I'll be disappointed, certainly not implying that we're almost FID, but I'll be disappointed if we're not announcing FID by our next earnings announcement. We're working hard, and we'll see if we can get there. If we do announce that, it will be fully sold out.

Speaker Change: We're heading through Texas and other parts of the country, really, and so we're very excited about where we sit on Warrior, and I'll just say that I'll be disappointed, certainly not implying that we're almost FID, but I'll be disappointed if we're not announcing FID by our next earnings call.

Mackie Mccrea: So by no means is that slowing us down? We're very, and I know we've talked about this quarter after quarter but it has picked up steam. There is a tremendous market east, not South, but east, you know, heading through Texas and other parts of the country really. And so we're very excited about where we sit on Warrior and I'll just say that I'll be disappointed. Certainly not implying that we're almost FID but I'll be disappointed if we're not announcing FID by our next earnings call.

Speaker Change: We're working hard and we'll see if we can get there. If we do announce that, it will be fully sold out. We're not going to take any risk on overbuilding out of that basin, but there's still a lot of gas and oil growth for many years to come out of that basin, in our opinion.

Mackay McCrea: We're not going to take any risk on overbuilding out of that basin, but there's still a lot of gas and oil growth for many years to come out of that basin in our region. And then last one, you mentioned all three, but NGLs; we never worry about what others are doing around NGLs. We will build the necessary pipelines to move NGLs out of that area to meet the requirements. The contracts we have with our.

Jeremy Tonet: And then last one, you mentioned all three, but NGLs, we never worry about what others are doing around NGLs. We will build the necessary pipelines to move NGLs out of that area to meet the contracts we have with our customers.

Mackie Mccrea: We're working hard and we'll see if we can get there. If we do announce that it will be fully sold out. We're not going to take any risk on over building out of that basin but there's still a lot of gas and oil growth for many years to come out of that basin in our opinion. And then the last one, you mentioned all three but NGLs we never worry about what others are doing around NGLs and we will build the necessary pipelines to move NGLs out of that area to meet the contracts we have with our customers. Got it. That's very helpful. Thank you for that.

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

John Mackay: Thank you. And the next question comes from John Mackay with Goldman Sachs.

Jeremy Tonet: Thank you. And the next question comes from John Mackay with Goldman Sachs.

John Mackay: Hey, good morning, good afternoon. Thanks for the time. I wanted to, and you touched on a couple of these drivers, but maybe just a little more on the underlying business performance for the guidance update. Maybe just a little more color there and kind of how that looks for the back half of the year.

John Mackay: Hey, good morning, good afternoon, thanks for the time. I wanted to, and you touched on a couple of these drivers, but maybe just a little more on the underlying business performance for the guidance update. Maybe just a little more color there and kind of how that looks for the back half of the year.

John Mackay: Yeah, John, this is Tom. I'll start, and then, you know, Mackay can add more later.

Jeremy Tonet: Yeah, John , this is Tom. I'll start and then, you know, Mackay can add more on.

John McKay: Thank you and the next question comes to John McCay with Colman Sack.

Tom Wong: You know, as we said in our prepared remarks, we feel very good about the base business, and that's the reason why we were able to bring it up in addition to the acquisitions, not just the WTG. So when you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to, you know, be able to see additional benefits as we look out over the year.

Tom Long: Hey, good afternoon. Thanks for the time. I wanted to, and you touched on a couple of these drivers, but maybe just a little more on the underlying business performance for the guidance update. Maybe just a little more color there and kind of how that looks for the back half of the year.

Jeremy Tonet: um

John Mackay: You know, as we said in the prepared remarks, we feel very good about the base business. And that's the reason why we were able to bring it up in addition to...

Mackay: the acquisitions, not just the WTG. So, when you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to you know, be able to...

Tom Long: Yeah, John, this is Tom. I'll start and then, you know, Mackay can add more on you know, as we said in prepared remarks, we feel very good about about the base business and that's the reason why we were able to bring it up in addition to the acquisitions, not just the WTG. So when you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to, you know, be able to see different additional benefits as we look out over the year.

Tom Wong: But no, it was great to be able to continue to walk the guidance up for the year, even in this commodity environment, because, as you know, we get a lot of extra pop when natural gas prices are high, etc. But even with that, we're able to continue to extract good value out of the optimization.

Jeremy Tonet: to see additional benefits as we look out over the year. But no, it was great to be able to continue to walk the guidance up for the year, even in this commodity environment, because as you know, we get a lot of extra pop when natural gas prices are high.

Jeremy Tonet: etc. But even with that, we're able to continue to extract good value out of the optimization group.

John Mackay: And then if we're, thanks for that, if we're looking at the CapEx side, obviously talking about WTG as a bit of a new growth platform to your point on the Midland side, maybe you could just frame up kind of how you're thinking about your broader CapEx look at, CapEx look over the next couple of years, now the footprint's bigger, now that you've kind of pulled in some of the new star assets as well, how that should trend versus your, you know, two to three you've talked about in the past.

Speaker Change: Thanks for that. If we're looking at the CapEx side, obviously talking about

Tom Long: But now it was great to be able to continue to walk the guidance up for the year, even in this commodity environment, because as you know, we get a lot of extra pop, you know, when natural gas prices are higher, et cetera. But even with that, we're able to continue to extract good value out of the optimization group.

Speaker Change: WTG as a bit of a new growth platform to your point on the Midland side.

Speaker Change: Maybe you could just frame up kind of how you're thinking about your broader CapEx look over the next couple of years, now that the footprint's bigger, now that you've kind of pulled in some of the new star assets as well, how that should trend versus your, you know, two to three you've talked about in the past.

Tom Wong: That's actually a very, very good question. As you know, we've just now closed on some of these transactions, and we're working through them right now. So, as usual, we'll come out with our 2025 guidance whenever we get to the fourth quarter earnings release. And at that time, we'll be able to scrub kind of the normal run rate, but you absolutely nailed it with our growth and our scale, our size, and with everything we're doing.

Tom Long: And then if we're in, thanks for that. If we're looking at the CapEx side, obviously talking about WTG as a bit of a new growth platform to your point on the middle inside, maybe you could just frame up kind of how you're thinking about your broader CapEx look at CapEx look over the next couple years. Now the footprint's bigger than you've kind of pulled in some of the new star assets as well.

Speaker Change: That's actually a very, very good question. As you know, we've just now closed on some of these transactions and we're working through it right now. So, as usual, we'll come out with our 2025 guidance whenever we get to it.

Jeremy Tonet: the fourth quarter earnings release, and at that time we will...

Jeremy Tonet: You know, we'll have able to scrub kind of the normal run rate, but you absolutely nailed it with our growth and our scale, our size, and with everything we're doing. Let us scrub that a little bit more so we won't just do...

Tom Long: How that should trend versus your two to three you've talked about in the past. No, that's actually a very, very good question. You know, as you know, we've just now closed on these, you know, some of these transactions and we're working through it right now. So, you know, as usual, we'll come out with our 2025 guidance whenever we get to the fourth quarter earnings release. And at that time, we will, you know, we'll have a built scrub kind of the normal run rate, but you, you absolutely nailed it with our growth and our scale.

Tom Wong: Let us scrub that a little bit more, so we won't just give you the 2025 number. We'll also kind of give you that ongoing run rate. But as of right now, we've always had that $2 to $3 billion. If anything, it'll probably be at that $3 billion. But let us do some more work on that before we give any official long-term run rate.

Speaker Change: give you the 2025 number, we'll also kind of give you that ongoing run rate. But as of right now, you know, we've always had that $2 to $3 billion.

Jeremy Tonet: You know, if anything, it'll be, you know, it'll be probably at that $3 billion, but let us do some more work on that before we give any official long-term run rate.

John Mackay: All right, that makes sense. I appreciate the time, thank you.

Tom Long: Our size and with everything we're doing, let us, let us scrub that a little bit more so we won't just do give you the 2025 number will also kind of give you that ongoing run rate. But as of right now, you know, we've always had that two to three billion. And it, you know, if anything, it'll be, you know, it'll be probably at that three billion, but let us, let us do some more work on that before we give any official long term run rate.

Speaker Change: All right, that makes sense. Appreciate the time. Thank you.

Keith Stanley: Thank you. The next question comes from Keith Stanley with World Research.

Speaker Change: Yeah, thank you.

Keith Stanley: Hi, good afternoon. First, just wanted to ask about M&A. Most of your recent deals, including WTG, have been buying G&P businesses and leveraging NGLs. Is that still the main focus for future M&A, or could you broaden it out? And then, with the JV with Sun, could that partnership potentially play a role in M&A, or is the JV exclusively about optimizing the existing assets?

Speaker Change: Thank you. The next question comes from Keith Stanley with Forbes Research.

Keith Stanley: Hi, good afternoon.

Tom Long: All right. That makes sense.

Keith Stanley: First, just wanted to ask on M&A, most of your recent deals, including WTG, have been buying G&P businesses and leveraging the NGLs.

Tom Long: Appreciate the time.

Speaker Change: Is that still the main focus for future M&A or could you broaden it out? And then with the JV with Sun, could that partnership potentially play a role in M&A or is the JV exclusively about optimizing the existing assets?

Tom Long: Thank you.

Tom Long: Yeah, thank you. Thank you.

Michael Blum: That's closer to constantly before research.

Michael Blum: Hi.

Mackay McCrea: Yeah, okay. Yeah, I'll start with the end of that question. Yeah, right now, the way that is structured, the JV in the Midland Basin, it's not to go out and acquire that. That's not to say that if there are some gathering assets or other assets in that area that fall kind of within that AMI, that we wouldn't approach that together and, certainly, in our agreement with them, but right now, the main focus is really developing those systems together and achieving as much of the upside that we can downstream of that partnership with our other business.

Speaker Change: I'll start with the end of that question. Right now, the way that is structured, the JV in the Midland Basin is not to go out and acquire it. That's not to say that if there are some gathering assets or other assets in that area that fall kind of within that AMI that we wouldn't approach that together.

Mackie Mccrea: Good afternoon. First, just wanted to ask on M&A, most of your recent deals, including WTG, have been buying G&P businesses and leveraging the NGLs. Is that still the main focus for future M&A, or could you broaden it out? And then with the, with the JV with Sun, could that, could that partnership potentially play a role in M&A, or is the JV exclusively about optimizing the existence? Yeah, I'll start with the end of that question.

Mackie Mccrea: Yeah, right now, the way that it's structured, the JV in the middle of the basin is not to go out in the part of it. That's not to say that if there's some gathering assets or other assets in that area that fall kind of within the AMI, that we would approach that together, and that's certainly in our agreement with them, but right now, the main focus is really developing out those systems together, and achieving as much of the upside that we can downstream of that partnership with our other business and the further downstream revenues.

Jeremy Tonet: That's certainly in our agreement with them, but right now, the main focus is really developing out those systems together and achieving as much of the upside that we can downstream of that partnership with our other business.

Tom Wong: Yeah, and listen, I'll chime in here, this is Tom, kind of the first part of your question, just in general where we focus. First off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream. And when you see how diversified we are across all the commodities, and we go all the way from the wellhead to the water, to our export facilities, we're looking really pretty much across the board.

Speaker Change: furthether downstream revenues

Jeremy Tonet: Yeah, and listen, I'll chime in here. This is Tom, kind of the first part of your question, just in general, where we focus.

Tom: You know, first off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream. And when you see how diversified we are across all the commodities, and we go all the way from the wellhead to the water.

Tom Wong: We wouldn't want to dial you in to any specific area, but the way you asked the question was actually very good. Just like what Mackay said on the WTG, we are able to extract a lot of benefits downstream when we, let's say, get into the gathering and processing. And it's across all the commodities. It's not tied to any one commodity, so we think that we still have a lot of opportunities there, and we're going to continue to evaluate them.

Speaker Change: to our export facilities

Mackay: We're looking really pretty much across the board. We wouldn't want to dial you in to any specific area, but the way you asked the question was actually very good. Just like what Mackay said on the WTG, we are able to extract a lot of benefits downstream.

Thomas Long: Yeah, and listen, I'll chime in here this time, kind of the first part of your question, just in general, where we focus. First off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream, and when you see how diversified we are across all the commodities, and we go all the way from the well head to our to the water, to our export facilities, we're looking really pretty much across the board.

Speaker Change: when we, let's say, get into the gathering and processing, and it's across all the commodities. It's not, you know, it's not tied to any one commodity, so we think that we still have a lot of opportunities there, and, you know, we're going to continue to evaluate those opportunities.

Thomas Long: We wouldn't want to dial you into any specific area, but the way you ask the question was actually very good, just like what Mackie said on the WTG, we are able to extract a lot of benefits downstream. When we, let's say, get into the gathering and processing, and it's across all the commodities. It's not tied to any one commodity, so we think that we still have a lot of opportunities there, and we're going to continue to evaluate those opportunities.

Keith Stanley: Thanks for that. Second question, with Double H moving to NGL service out of the Bakken, has that impacted discussions on recontracting Dakota Access at all, and how are you thinking about recontracting on Dakota Access in terms of the timing and terms you're looking for?

Speaker Change: Thanks for that. Second question, with with Double H moving to NGL service out of the Bakken,

Speaker Change: Has that impacted discussions on re-contracting Dakota Access at all? How are you thinking about re-contracting on Dakota Access in terms of the timing and terms you're looking for?

Mackay McCrea: Yeah, Keith, this is Mackay. No, that hadn't really spurred any new thoughts around that.

Mackay: Yeah, Keith, this is Mackay. No, that hadn't really spurred any new thoughts around that. I guess I'd summarize where we're at. We are kind of the pipeline of choice out of there, as you know. We move more than 50% of the barrels out of the Bakken.

Mackay McCrea: I guess I'd summarize where we are. We are kind of the pipeline of choice out of there, as you know. We moved more than 50% of the barrels out of the Bakken. We do have the ability to move significantly more if there's any growth, and it certainly doesn't hurt our feelings if there's going to be 60 to 80,000 barrels that were leaving the basin that now we'll be looking for another way out, because we think we'll continue to move the majority of the barrels out of that region.

Mackie Mccrea: Thanks for that. Second question with double-leach moving to NGL service out of the back end. Has that impacted discussions on re-contracting Dakota access at all, and how are you thinking about re-contracting on Dakota access in terms of the timing and terms you're looking for? Yeah, keep this Mackie. No, that hadn't really spurred any new thoughts around that. I guess that's some where we're at. We are kind of the pipeline of choice out of there, as you know, we move more than 50% of the barrels out of the back end.

Speaker Change: We do have the ability to move significantly more if there's any growth.

Speaker Change: Certainly doesn't hurt our feelings if there's going to be 60 to 80,000 barrels that was leaving the base that now we'll be looking for.

Speaker Change: another way out because we think we'll continue to move the majority of the barrels out of that region. But we do think that we'll end up, sooner than later, rolling or extending some of the agreements that we have. But we really don't have a lot of angst or concern for the reasons I just said.

Mackay McCrea: But we do think that we'll end up sooner than later rolling out or extending some of the agreements that we have, but we really don't have a lot of angst or concern for the reasons I just said. We offer more flexibility by going to the mid-continent refineries and, of course, all the way down to the Gulf Coast, to the Beaumont and Houston area, as well as Bayou Bridge. So we just, you know, it's unparalleled with the flexibility and the optionality that we're given for producers. So we sit in a very good position, and we're very confident that we will keep Dakota access full at healthy spreads for many years.

Speaker Change: You know, we, uh...

Mackie Mccrea: We do have the bill to move significantly more if there's any growth, and it's certainly done under our peeling, if there's going to be 60,000, 80,000 barrels that was leaving the base that now will be looking for another way out, because we think we'll continue to move the majority of the barrels out of that region. But we do think that we'll end up at, you know, sooner than later, rolling or extending some of the agreements that we have, but we really don't have a lot of angst or concern for the reasons I just said.

Speaker Change: We offer more flexibility by going to the mid-continent refineries, and of course, all the way down to the Gulf Coast, to the Beaumont, Houston area, as well as Bayou Bridge, so we just...

Speaker Change: You know, it's unparalleled with the flexibility and the optionality that we're given for producers, so we sit in a very good position and we're very confident that we will keep Dakota Access full at healthy spreads.

Mackay: formany years

Theresa Chen: Thank you. The next question comes from Theresa Chen with Barclays.

Mackie Mccrea: We offer more flexibility by going to the mid-continent refineries, and of course, all the way down the Gulf Coast to the Beaumont and Houston area as well as Bayou Bridge. So we just, you know, it's unparalleled with the flexibility and the optionality that we're giving for producers. So we sit in a very good position and we're very confident that we will keep Dakota access full of it at healthy spreads for many years.

Speaker Change: Thank you. And the next question comes from Theresa Chen with Barclays.

Mackay McCrea: Good afternoon. Going back to the comments related to the downstream synergies following the formation of the Permian-JV with Sun, can you talk about what time frame the long-haul pipeline commitments will roll over from the legacy New Star Gathering system for the barrels that are not already on your long-haul system?

Speaker Change: Good afternoon. Going back to the comments related to the downstream synergies following the formation of the Permian JB with Sun.

Mackie Mccrea: Thank you.

Theresa Chen: Can you talk about what time frame the long-haul pipeline commitments roll over from the legacy New Star Gathering system for the barrels that are not already on your long-haul system?

Mackay McCrea: Yeah, this... This is Mackay again. No, most of the business that New Star had now, Sunoco, and our JV are just gathering. So it's gathering that base, and it's delivered through pipelines like energy transfer or other competing pipelines in the area. So that JV is a large area, the AMI, that encompasses energy transfer and the old gathering business in the Permian Basin but does not include any of the downstream pipelines, for example, that go to Neyland or up to Cushing. So that's, we're gonna work very closely with New Stars, I mean, sorry, with Sunoco as part of that JV, but that's just confined to the gathering part of that business.

Theresa Chen: And the next question comes to Teresa Chen with Barclays.

Speaker Change: Yeah, this...

Mackie Mccrea: Good afternoon. Going back to the comments related to the downstream synergies, following the formation of the Permian JV with Sun, can you tell us about what timeframe the long haul pipeline commitments roll over from the legacy and new star-gathering system for the barrels that are not already on your long haul system? Yeah, this is Mackay again. No, most of the business that Newstore had now, Sonoco and RJV is just gathering. So it's gathering that base and it's delivered through pipelines like Energy Transfer or other competing pipelines in the area.

Mackay: This is Mackay again. No, most of the business that New Star had now, Sunoco and RJV, is just gathering.

Speaker Change: So it's gathering that base and it's delivering through pipelines like energy transfer or other competing pipelines in the area. So that JV is a large area, the AMI, the...

Speaker Change: encompasses energy transferers all gathering business in the permian basin but does not include any of the downstream pipelines for example to go to neitherer order up to cushing

Speaker Change: So, that's, we're going to work very closely with New Stars, I mean, sorry, with Sunoco as part of that JV, but that's just confined in the gathering part of that business.

Mackie Mccrea: So that JV is a large here, the AMI that encompasses Energy Transfer, old gathering business in the Permian Basin. But does that mean does not include any of the downstream pipelines, for example, to go to nearer and up to cushy. So we're going to work very closely with Newstore. I mean, sorry with Sonoco as part of that JV, but that just confined in the gathering part of that business. Right, I meant to ask for the barrels that are not committed onto Permian Express, when can you roll them onto Permian Express over the next few years.

Theresa Chen: For the barrels that are not committed to Permian Express, when can you roll them on to Permian Express over the next few years?

Speaker Change: Right, I meant to ask, for the barrels that are not committed onto Permian Express, when can you roll them onto Permian Express over the next few years?

Mackay McCrea: I'd answer it like this: we're probably gathering 1.5 million barrels, and we can move less than that out of it. So we don't necessarily have any necessarily dedicated barrels from any particular area other than shippers that have taken space on our pipeline system. So right now, I really couldn't say what exact molecules will come from this JV may feed into our downstream business. We kind of take it as a whole.

Speaker Change: You know, I'd answer it like this, is that we're probably gathering 1.5 million barrels and we can move less than that out of it, so we don't have any necessarily dedicated barrels from any...

Speaker Change: any particular area other than shippers that have taken space on our...

Speaker Change: pipeline systems. So right now I really couldn't say what exact molecules will come from this JV may feed into our downstream business. We kind of take it as a whole. Also there's different qualities of

Mackay McCrea: Also, there are different qualities of oil, whether it's WTL or WTI that come involved. So there's a lot more kind of thought process going into this. But yeah, at the end of the day, certainly this JV and the business of gathering oil will continue to feed our downstream business both in Nederland and at our Houston terminal, as well as one day, hopefully, to our Blue Marlin project.

Mackie Mccrea: You know, an answer like this is that we're probably gathering 1.5 million barrels and we can move less than that out of it. So we don't have any necessarily dedicated barrels from any any particular area other than shippers that have taken space on our our pipeline system. So right now, really couldn't say what exact molecules will come from this JV may feed into our downstream business. We kind of take it as a whole.

Speaker Change: Oil, whether it's WTL or WTI that come involved, so there's a lot more kind of.

Speaker Change: thought process going into this. But yeah, at the end of the day, certainly this JV and the business of Gathering Worm will continue to feed our downstream business both to Nederland, to our Houston terminal, as well as one day, hopefully, to our Blue Marlin project.

Theresa Chen: Got it. And can you just provide some incremental detail on the marketing strength in the NGLs and refined product segment this quarter? What drove that, and how much of that is repeatable?

Speaker Change: Got it. And can you just provide some incremental detail on the marketing strengths in the NGLs and refined product segment this quarter? What drove that and how much of that is repeatable?

Mackie Mccrea: Also, there's different qualities of oil, whether it's WTL or WTL to come involved. So there's a lot more kind of thought process going into this. But yeah, into the day, certainly this JV and the business of gathering will continue to feed our downstream business both to Nederland to our Houston Journal, as well as one day, hopefully to our Blue Arland project. Got it.

Dylan Bramhall: Hi, this is Dylan. So for that NGL marketing line item, there's a lot of activities that go into that various optimization in the Gulf Coast and the Northeast. Over the last quarter, where we really saw the great performances from the Gulf Coast NGL group, it had a really strong quarter. And it's really comparing back to the second quarter last year, when we did have an LCM write-down on hedged inventory. And additionally, we also had some strong margins for both the butane and gasoline blending businesses in the North.

Dillon: Hi, this is Dillon. So that NGL marketing line item, there's a lot of activities that go into that. Various optimization in the Gulf Coast and the Northeast.

Speaker Change: Over the last quarter, where we really saw the great performances from the Gulf Coast NGL group.

Dylan Bramhall: And can you just provide some incremental detail on the marketing strengths and the NGLs and refine product segment disorder? What drove that and how much of that is repeatable? Yeah, this is this is billing so that that NGL marketing line item is a lot of activities go into that various optimization in the Gulf Coast and Northeast over the last quarter where we really saw the great performances from the Gulf Coast NGL group.

Speaker Change: It had a really strong quarter, and it's really comparing back to the second quarter last year when we did have an LCM write-down on hedged inventory. And additionally to that, we also had some strong margins for both the butane and gasoline blending businesses in the Northeast.

Constance Spiro Dounis: Thank you. And the next question is from Constance Spiro Dounis with Citi.

Speaker Change: Thank you.

Speaker Change: Thank you, and the next question comes from Spiro Dounis with Citi.

Tom Wong: Good afternoon, team. First question, I actually wanted to ask you guys about your global growth ambitions. I know in the past you've talked about an NGL pipeline in Panama, and recently your name was sort of mentioned alongside another South American oil and gas project, and so I respect that you might not be able to talk about project specifics, but just curious, do you have ambitions to grow on a global level, and is that something that you do under the MLP structure?

Speaker Change: and ever happ in teene

Dylan Bramhall: It had a really strong corridor and it's really comparing back to the second quarter last year when we did have an LCM right down on hedge inventory. And additionally to that, we also had some strong margins for both the butane and gasoline blending businesses in the Northeast.

Spiro Dounis: First question, I actually want to ask you guys about your global growth ambitions. I know in the past you've talked about an NGL Panama pipeline and recently your name was sort of mentioned alongside another South American oil and gas project and so I respect that you might not be able to talk about project specifics but just curious, do you have ambitions to grow on a global level and is that something that you do under the MLP structure?

Tom Wong: Yes, this is Tom. That's the quick answer. We think it's the right thing to do for our partnership here. It makes a lot of sense with all that we've built out across all the commodities. So we continue to evaluate it, evaluate various opportunities when you look across the globe. I will tell you that we will always be very careful with any risk as we look at these.

Dylan Bramhall: Thank you.

Spiro Dounis: And then ask questions for you are doing us with city.

Speaker Change: Yes, this is Tom. That's the quick answer. We think it's the right thing to do for our partnership here. It makes a lot of sense with all that we've built out across all the commodities.

Spiro Dounis: Thanks, Edward.

Speaker Change: So we continue to evaluate various opportunities when you look across the globe. I will tell you that we will always be very...

Tom Long: Afternoon team. First question, I actually want to ask you guys about your global growth ambitions. I know in the past you've talked about an NGL Panama pipeline and recently your name was sort of mentioned alongside another South American oil and gas project. And so I respect the amount of able to talk about project specifics, but just curious, do you have an ambition to grow on a global level? And is that something that you do under the MLP structure?

Tom Wong: We'll make sure they're good fits for us, that we can bring a lot of value, but we're well aware of the risks, country risk, et cetera, that come along with each of them. And we once again think that we've got the right team to be able to extract value when you look out globally. But we will, like I said, it'll be credit risk, country risk, et cetera. And when you get involved with some of these various companies that are in these other countries, you can do a lot of stuff with them globally. Look at it. So, we will continue to evaluate but be very thorough in our evaluation.

Speaker Change: We're careful with any risk as we look at these. We'll make sure they're good fits for us, that we can bring a lot of value, but we're well aware of the risk, country risk, et cetera, that come along with each of these.

Tom Long: Yes, this is Tom. That's that's the quick answer. We think it's the right thing to do for you know for our partnership here. It makes a lot of sense with all that we built out across all the commodities. So we continue to evaluate it, evaluate various opportunities when you look across the globe. I will tell you that we will always be very careful with any risk as we look at these. We'll make sure they're good fits for us that we can bring a lot of value, but we're well aware of the risk, country risk etc, that come along with each of them, of these.

Speaker Change: And it's, you know, but if we once again think that we've got the right team to be able to extract value when you when you look out globally, but we will, like I said, it'll be credit risk, country risk, etc.

Speaker Change: And when you get involved with some of these various companies that are in these other countries, you can do a lot of stuff with them globally.

Speaker Change: when you look at it. So, we will continue at least to evaluate, but be very thorough in our evaluation.

Tom Long: But once again, we've got the right team to be able to extract value when you look out globally. Like I said, it will be credit, risk, country risk, etc. When you get involved with some of these various companies that are in these other countries, you can do a lot of stuff with them globally when you look at it. We will continue, at least to evaluate it, but be very thorough when our valuation. Yeah, it's helpful, Tom.

Constance Spiro Dounis: Got it. Very helpful, Tom.

Speaker Change: Got it. Helpful, Tom. Maybe to switch gears back here domestically, this power demand or power gen demand thesis kind of really snuck up on a lot of the market here, and it sounds like you all have a few irons in the fire, even on the data center side. So, just curious if you could frame for us how you're thinking about the timing of when some of these projects start to show up in earnings, and maybe as we think about the scope and size.

Constance Spiro Dounis: Maybe to switch gears back here domestically, this power demand or power demand thesis kind of really snuck up on a lot of the market here. And it sounds like you all have a few irons in the fire, even on the data center side. So just curious if you could frame for us how you're thinking about the timing of when some of these projects start to show up in earnings, and maybe as we think about the scope and size, are we talking about greenfield expansions here, just help us understand the opportunity in front of you.

Speaker Change: Are we talking about greenfield expansions here or brownfield? Just help us understand the opportunity in front of you.

Mackay McCrea: Yeah, this is Mackay, and I'm actually not going to answer your question at first because I do want to make a statement. I thought about this when we were preparing.

Mackie Mccrea: Maybe to switch gears back here domestically, this power demand or power gen demand thesis kind of really snuck up on a lot of the market here. And it sounds like you all have a few irons in the fire even on the data center side. So just curious, you could frame for us how you're thinking about the timing of when some of these projects start to show up and earnings. And maybe as we think about the scope and size, are we talking about Greenfield Expansions here, Brownfield, to some of us understand the opportunity in front of you?

Speaker Change: Yeah, this is Mackay, and I'm actually not going to answer your question at first, because I do want to make a statement. I thought about this when we were preparing.

Mackay McCrea: Bill Berg and his team do a great job of summarizing some of our competitors and their earnings calls and how they did, and I find it interesting, as I think back on it, that we've got competitors talking about their oil business, which is the vast majority of what they do, or they talk about their NGL and oil business, which is the vast majority, or their all-natural gas, and what a blessing and how fortunate we are as a partnership I mean, we're so well-positioned to meet this demand growth across the board for natural gas and other commodities, so we feel very fortunate, and we're going to take advantage of that. So, in answering your question, we keep hearing about transition for years, the last four years, transition. Well, I guess everybody's kind of seeing the truth.

Speaker Change: Bill Berg and his team do a great job of summarizing some of our competitors and their earnings call and how they did.

Speaker Change: Now, I find it interesting as I think back about it, about we've got competitors talk about their oil business, which is the vast majority of what they do, or they talk about their NGL and oil business, which is the vast majority, or their all-natural gas, and what a blessing and how fortunate we are as a partnership with such great employees running this business.

Mackie Mccrea: Yeah, this is Mackie.

Mackie Mccrea: And I'm actually not going to answer your question at first, because I do want to make a statement. I thought about this and we're preparing. Bill Bergen has teamed to a great job of summarizing some of our competitors in their earnings call and how they did. And I find it interesting, and I think back about it, about we've got competitors talk about their old business, which is the vast majority or what they do.

Speaker Change: and the breadth of our pipeline system, our terminal, our storage throughout the U.S. I mean, we're so well positioned to meet

Speaker Change: This demand growth across the board for natural gas and other commodities, so we feel very fortunate and we're going to take advantage of that. So in answering your question, we keep hearing about transition for years, the last four years transition. Well, I guess everybody's kind of seeing the truth.

Mackie Mccrea: Are they talked about their NGL and old business, which is the vast majority? Are they all natural gas? And what a blessing and how fortunate we are as a partnership with such great employees running this business and the breadth of our pipeline system, our terminal, our storage throughout the U.S. I mean, we're so well positioned to meet the demand growth across the board for natural gas and other commodities. So we feel very fortunate and we're going to take advantage of that.

Mackay McCrea: The transition is, we're about to transition into untold demand for natural gas, and in that case, also natural gas liquids internationally, so as I just mentioned, nobody's better positioned for us, other than the Eastern Seaboard. If you look at our pipeline intrastate network, you look at what I just said, we have over 233 BCF of storage along all of our systems to really meet the demands. We're situated very well to meet all of the upcoming demands. You mentioned data centers. Yes, we're in four or five different states in discussions with multiple data centers of different sizes.

Speaker Change: The transition is, we're about to transition into untold demand for natural gas.

Speaker Change: case, also natural gas liquid internationally. So, as I just mentioned, nobody's better positioned for us other than the Eastern Seaboard. If you look at our pipeline intrastate network, you look at it, what I just said, we have over 233 BCF of storage along all of our systems.

Mackie Mccrea: So in answering your question, we keep talking here about transition for years, the last four years, transition. Well, I guess everybody's kind of seeing the truth. The transition is we're about to transition into untold demand for natural gas. And for that case, also natural gas liquid internationally. So as I just mentioned, nobody's better positioned for other than the Eastern Seaboard. If you look at our pipeline interest state, interstate network, you look at what I just said, we have over 233 B.C.F, of storage along all of our systems to really meet the demands.

Speaker Change: to really meet the demands. We're situated very well to meet all the upcoming demands. You mentioned data-centered. Yes, we're in.

Speaker Change: four or five different states in discussions with multiple data centers of different sizes. Some of them, or many of them, want to put generation on site and wanting as much as 200,000 or 300,000 CF for each.

Mackay McCrea: Some of them, or many of them, want to put generation on site and want as much as two or three hundred thousand BCF for each one, so it's an enormous opportunity for us. As I mentioned, we're very advantaged in many of these areas to capture a lot of this business, as well as for power plant demand for natural gas. We see that going up astronomically. We think we could increase the demand here for electricity over the next six to eight years by 30 or 40 thousand megawatts, at least, here just in Texas. And that, you go to other states, with similar types of needs, once again, we're very well positioned, and then you add on to that.

Speaker Change: So it's an enormous opportunity for us. As I mentioned, we're very advantaged in many of these areas to capture a lot of this business, as well as for the power plant demand for natural gas. We see that going up astronomically. We think we could increase...

Mackie Mccrea: We're situating very well to meet all the up and demands. You mentioned data centered. Yes, we're in four or five different states in discussions with multiple data centers of different sizes. Some of them or many of them want to put generation on site in the morning as much as 2 or 300 B.C.F, for each one. So it's an enormous opportunity for us. As I mentioned, we're very advantage in many of these areas to capture a lot of this business as well as for the power plant demand for natural gas.

Speaker Change: The demand here for electricity over the next six to eight years, about 30 or 40,000 megawatts at least.

Speaker Change: here just in Texas, and that you go to other states, similar type needs. Once again, we're very well positioned. And then you add on to that. I mean, we've got population growth.

Mackay McCrea: I mean, we've got population growth in Florida and Texas. Behind all these gas utilities that we'll be feeding and growing our businesses, you've got, heck, blue ammonia. Just what we're working with, along with a handful of folks, if it comes to fruition, the majority of that, we're looking at between one and two BCF of natural gas deliveries to our terminals, close to our terminals, for blue ammonia, and then you throw in crypto and on and on.

Speaker Change: in Florida and Texas, behind all these gas utilities that we'll be feeding and growing our business. You've got, heck, a little more than just what we're working with alone with a handful of folks.

Mackie Mccrea: We see that going up astronomically. We think we could increase the demand here for electricity over the next six to eight years, about 30 or 40,000 megawatts at least here just in Texas and that you go to other states, similar type needs. Once again, we're very well positioned. Then you add on to that. We've got population growth in Florida and Texas, behind all these gas utilities that we'll be feeding and growing our business.

Speaker Change: If it comes to fruition, the majority of that, we're looking at between one and two BCF.

Speaker Change: of Natural Gas Deliveries to our terminals.

Speaker Change: close to our terminals for Blue Ammonia and EUFU.

Mackay McCrea: So yeah, we're very bullish. I know that's a long-winded answer to your question, but we couldn't be more excited about the growth in natural gas demand and how we're going to be able to take advantage of that with our product.

Speaker Change: throwing crypto and on and on. So yeah, we're very bullish. I know that's a long-winded answer to your question, but we couldn't be more excited about the transfer, I mean, the natural gas demand growth and how we're gonna be able to take advantage of that with our broad system.

Mackie Mccrea: You've got heck, blue and yellow. Just what we're working with along with a handful of folks. If it comes to fruition, the majority of that, we're looking at between 1 and 2 B.C.F, of natural gas deliveries to our terminals, close to our terminals for blue ammonia and then you're throwing crypto and on and on. So yeah, we're very bullish. I know that long-winded answer to your question, but we could be more excited about the natural gas demand growth and how we're going to be able to take advantage of that with our money. Rodzist. That's great color, Mackay.

Constance Spiro Dounis: That's a great color, Macky. I'll leave it there. Thanks so much.

Speaker Change: No, it's great color, Macky. I'll leave it there. Thanks so much.

Michael Blum: Thank you. And the next question comes from Michael Blum with Wells Fargo.

Speaker Change: Thank you. And the next question comes from Michael Bloom with Wells Fargo.

Michael Blum: Thanks. Good afternoon, everyone. I want to go back to Kinder Morgan's Double H conversion announcement. I'm wondering if you could possibly participate in this project in any way, either upstream or downstream of Double H, and if you could remind us of the contract terms or the NGO vows you have under the Crestwood Act.

Michael Bloom: Thanks, good afternoon everyone. I want to go back to Kinder Morgan's HH conversion announcement. Wondering if you could possibly participate in this project in any way there.

Michael Bloom: Upstream or Downstream of Double H and if you could remind us on the contract terms of the NGO bowels you have from the Crestwood acquisition.

Mackie Mccrea: I'll leave it there. Thanks so much. Thank you.

Mackay McCrea: Yeah, that's a good question, Michael, because that's really where, you know, we see a couple of benefits, but one of them is that we are chasing a couple of pretty big deals, and we've got available capacity that's already sitting there waiting for us, processing capacity with the Crestwood assets. We do intend to fill that, and now there's competition. Now, when you have a monopoly, it's hard to get a good net back price for your producer or for your business, and that's changing.

Michael Blum: And then that's question on some Michael Blum with Wells Fargo. Thanks.

Speaker Change: Yeah, that's a good question, Michael, because that's really where, you know, we see a couple of benefits, but one of them is we are chasing a couple of pretty big deals, and we've got available capacity that's already sitting there waiting for us, processing capacity with the Crestwood assets.

Michael Blum: Good afternoon, everyone. I want to go back to Kendra Morgan's double-h conversion announcement. What are you if you could possibly participate in this project in any way, your upstream or downstream of double-h? And if you could remind us on the contract terms of the NGO battles you have from the Crestwood acquisition. That's a good question, Michael, because that's really where we see a couple of benefits. But one of them is we are chasing the couple of pretty big deals.

Michael Bloom: And we do intend to fill that, and now there's competition.

Speaker Change: Now, when you have a monopoly, it's hard to get a good net back price for your producer or for your business, and that's changing. So we're excited and intrigued that Kendra is doing this. It's kind of something more like we do. So we love that. And like I said, it's not going to hurt our feelings that there may be 60,000 or 80,000 more barrels looking for a home on our property.

Mackay McCrea: So we're excited and intrigued that Kenner is doing this; it's kind of something more like we do. So we love that, and like I said, it's not going to hurt our feelings that there may be 6,000 or 8,000 more barrels looking for a home on our Dakota access pipeline. Now, downstream, we certainly are in discussions, and we love and feel like we probably will see some of those barrels at a minimum at our frack, but we're just in early discussions and certainly see that as another potential upside for what Kenner's doing. But mainly, we like what's going on up in the basin and what it will do for our own assets.

Michael Blum: And we've got a available capacity that's already sitting there waiting waiting for a processing capacity with the Crestwood assets. We do intend to fill that. And now there's competition. Now, when you have a monopoly, it's hard to get a good net back price for your producer or for your business. And that's changing. So we're excited and intrigued that Kendra is doing this. It's kind of something more like we do. So we love that.

Michael Bloom: on our Dakota Access. Now, downstream, we certainly are in discussions.

Michael Bloom: We love and feel like we probably will see some of those barrels, at a minimum, at our frack, but we're just in early discussions and certainly see that as another potential upside for what Kinder's doing. But mainly we like what's going on up in the basin and what it will do for our own assets up there.

Michael Blum: Okay, perfect. Thanks for that.

Michael Blum: And like I said, it's not going to hurt our feelings that there may be 6,000 or 8,000 more barrels looking for a home on our Dakota access. Now downstream, we certainly are in discussions and we love and feel like we probably will see some most barrels at a minimum out of frack. But we're just in early discussions and certainly see that as another potential upside for what Kendra's doing. But mainly we like what's going on up the basin of what it'll do for our own assets up there.

Speaker Change: Okay, perfect. Thanks for that. And then, just wanted to get your latest thoughts on what's happening in Haynesville, North Louisiana. Obviously, there's been the legal challenges. Some of that's sort of now transpired. So, just wanted to get your latest thoughts there.

Michael Blum: And then just wanted to get your latest thoughts on what's happening in Haynesville, North Louisiana. Obviously, there have been the legal challenges, some of that has now transpired. So just wanted to get your latest thoughts there. Okay, yeah, you know, Marshall.

Mackay McCrea: OK, yeah, Marcel, Utica, and Hainesville, tough areas over the last quarter. A lot of lean gas, a lot of drilling slowing down, even some shut-ins. So we've seen those two basins in Hainesville especially come off, what, 2, 2 and 1 1 BCF, I think, just since the end of last year. But we are seeing it start to recover. And its prices start to recover.

Speaker Change: Okay, yeah, you know, Marcel, Utica, and Haynesville, tough areas over the last quarter, you know, a lot of lean gas, a lot of, you know, drilling slowing down, even some shut-ins, so we've seen...

Michael Blum: Okay, perfect, thanks for that.

Mackie Mccrea: And then just wanted to get your latest thoughts on what's happening in the Hainesville, North Louisiana. Obviously, it's been the legal challenges. Some of that sort of now transpired. So just wanted to get your latest thoughts there. Okay, yeah, Marcel Utica and Hainesville top areas all the last quarter get a lot of lean gas, a lot of drilling flowing down even some shut in. So we've seen those two basins and Hainesville especially come off what to do to an BCF.

Speaker Change: Those two basins in Hainesville especially come off what, two, two and a half BCF I think just since the end of last year. We are seeing it start to recover, its prices start to recover. The enormous reserves in North Louisiana. We have

Mackay McCrea: The enormous reserves in North Louisiana, we have multiple 42-inch pipes running through North Louisiana, actually three. We've got a Gulf Run extension to the south. We have the ability to increase the capacity on that relatively easily. And we've got a lot of potential to grow there, and so does the industry. When you're talking about the issues in Louisiana, I'll touch on those real quick.

Speaker Change: Multiple 42-inch pipes running through north Louisiana, actually three.

Speaker Change: We've got a Gulf Run extension to the south, we have the ability to...

Speaker Change: increase the capacity on that relatively easy.

Speaker Change: and

Speaker Change: and you know we've got a lot of potential to grow there and so does the industry. When you're talking about the issues in Louisiana, I'll touch on those real quick. You know we are

Mackie Mccrea: I think just sent to the end of last year. But we are seeing it start to recover as a process start to recover. The enormous reserves in North Louisiana, we have multiple 42-inch of pipes running through North Louisiana actually three. We've got a Gulf run extension to the south. We have the ability to increase the capacity on that relatively easy. And we've got a lot of potential to grow there and so does the industry.

Mackay McCrea: We are in a lawsuit with one company, but at a high level, there were three companies that were looking for, I think it was 150, 160 crossings of our pipelines. And we deal with this every day, whether it's other pipeline companies, or utility companies, or electric companies, or whatever. It's a normal part of our business.

Speaker Change: in a lawsuit with one company. But from a high level, there were three companies that were looking for, I think it was 150, 160 crossings or pipelines. And we deal with this every day, whether it's other pipeline companies, or utility companies, or electric companies, or whatever, it's a normal

Mackay McCrea: But what happened was, with two of these pipeline companies, we needed technical data. We needed to work with them on where are they crossing? How are they going to impact our rotaway? How are they going to impact our furrowed rotaways? How are they possibly going to adversely affect our safety, our employees? So it's important to us to have answers to our questions, as we always ask and get. And two of the pipelines work with us.

Michael Bloom: Part of our business, but what happened was with two of these pipeline companies. We needed technical data We need to work with them on where are they crossing it? How are they going to impact our right-of-way? How are they going to impact our right-of-way our first right-of-ways? How are they maybe?

Mackie Mccrea: When you're talking about the issues in Louisiana, I'll touch on those real quick. We are in a lawsuit with one company, but from a high level, there were three companies that were looking for, I think it was 150, 160 crossings of our pipelines. And we deal with this every day, whether it's other pipeline companies or utility companies, or electric companies or whatever, it's a normal part of our business. But what happened was with two of these pipeline companies, we needed technical data.

Michael Bloom: adversely possibly affect our safety, our employees. So it's important to us to have answers to our questions, like we always ask and get. And two of the pipelines work with us. We have one pipeline that has rejected or refused to provide that technical data, and all we're doing is protecting our rights.

Mackay McCrea: We have one pipeline that has rejected or refused to provide that technical data, and all we're doing is protecting our rights. And we'll continue to do this as a partnership, and we'll see kind of how that plays out.

Mackie Mccrea: We need to work with them on where they cross and how are they going to impact our route away? How are they going to impact our route away, our birth route away? How are they maybe adversely possibly affect our safety, our employees? So it's important to us to have answers to our questions, like we always ask and get. And two of the pipeline's work with us. We have one pipeline that has rejected or refused to provide that technical data and all we're doing is protecting our rights, and we'll continue to do this as a partnership and we'll see kind of how that plays out.

Michael Bloom: And we'll continue to do this as a partnership, and we'll see kind of how that plays out.

Mackie Mccrea: Thank you.

Operator: Thank you, and this concludes our question and answer session. I would like to return the floor to Tom Long for any closing comments.

Michael Bloom: Thank you.

Michael Bloom: Thank you. And this concludes our question and answer session. I would like to return the floor to Tom Long for any closing comments.

Tom Long: Well, we definitely appreciate you all joining us. I do want to add one more comment here at the end.

Tom Long: All right, well, we definitely appreciate y'all all joining us. I do want to add one more comment here at the end.

Tom Long: You know what? We do get a lot of inbounds. I'm gonna go back to the global question a little bit here. We have a lot of hard assets, second to none across this country, but another significant asset that we mention occasionally but can't ever emphasize enough is the team, the human resource side of the team. This, all the inbounds that we get globally, is a huge, huge compliment to the second-to-none team that we have.

Speaker Change: You know, we do get a lot of inbounds. I'm going to go back to the global question a little bit here. We have a lot of hard assets, second to none across this country, but another significant asset we just...

Operator: And this concludes our question and answer session.

Speaker Change: We mention occasionally, but can't ever emphasize enough is the team, the human resource side of the team.

Thomas Long: I would like to return the floor to Tom Long for any closing comments. All right. Well, we definitely appreciate y'all all joining us. I do want to add one more comment here at the end. You know, we do get a lot of imbounds. I'm going to go back to the global question a little bit here. We have a lot of hard assets second to none across this country. But another significant asset we just we we we mentioned occasionally, but I ain't ever mentioned emphasize enough is the is the is the team the human resource side of the team.

Speaker Change: This all the inbounds that we get globally is a huge huge compliment to the second to none

Tom Long: Operations team, BD team, you know, I think our name is recognized globally, and that's the reason a lot of inbounds do come to us. And we take it as, like I said, a massive compliment that our name is used out there a lot. But anyway, wanted to make sure I got that in, but thank all of you for joining us, and we look forward to talking with all of you about any follow-up questions. Thanks.

Speaker Change: team that we have, operations team, VD team, you know, I think it's recognized globally and that's the reason a lot of inbounds do come to us.

Tom Long: And we take it as, like I said, a massive compliment that our name is used out there a lot. But anyway, I wanted to make sure I got that in. But thank all of y'all for joining us, and we look forward to talking with all of you with any follow-up questions.

Thomas Long: And this all the imbounds that we get globally is a huge, huge compliment to the second to none team that we have operations team, the D team. You know, I think it's recognized globally and that's the reason a lot of imbounds do come to us and we take it as like I said, a massive compliment that our name is used out there a lot. But anyway, wanted to make sure I got that in, but thank all of y'all for joining us and we look forward to talking with all of you with any follow up questions. Thanks. Thank you.

Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Speaker Change: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Operator: The conference has now concluded. Thank you for attending today's presentation.