Q2 2025 Enterprise Products Partners LP Earnings Call

Paul at this time, all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone to remove yourself from the queue. You May Press Star one one again I would now like to.

And the call over to Larry straight Vice President of Investor Relations. Please go ahead.

Good morning, and welcome to the Enterprise products Partners Conference call to discuss second quarter 2025 earnings our speakers today will be co chief executive officers of Enterprise's General partner Denki and Randy Fowler.

Other members of our senior management team are also in attendance for the call today.

During this call we will make forward looking statements within the meaning of section 21 E.

<unk> Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available to Enterprise's management team.

Although management believes that the expectations reflected in such forward looking statements are reasonable it can be.

There's no assurance that such expectations will prove to be correct.

Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward looking statements made during this call with that alternative with Jim. Thank you. Thank you.

Despite facing considerable headwinds we delivered another good performance this quarter.

Seasonally the second quarter is always tough, but this time we are.

<unk> also faced macroeconomic and geopolitical challenges.

Today, we reported adjusted EBITDA of $2 4 billion.

One 9 billion of distributable cash flow.

About one six times coverage and we retained $740 million in DCF.

We set five volumetric records for the quarter.

Process, some 8 billion cubic feet of natural gas per day.

Moved 20 billion cubic feet per day through our natural gas pipeline network.

We transported over 1 million barrels per day of refined products in petrochemicals.

Unknown Executive: 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session.

Unknown Executive: 1.6 times coverage and we retained $740 million in DCS.

And we have even more plant frac capacity.

Of distributable cash flow.

Capacity coming online over the next 18.

Unknown Executive: We set five volumetric records for the quarter, process 7.8 billion cubic feet of natural gas per day, move 20 billion cubic feet per day through our natural gas pipeline network.

Providing 1.6 times coverage and we retain 740 million and DCF.

Unknown Executive: To ask a question during the session, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again.

Months, we've got nearly $6 billion worth of organic growth projects.

We set 5, volumetric records for the quarter.

Entering service and includes two gas processing plants in the Permian that are ramping as we speak and a third plant that is expected to startup in the first part of next year.

Process, 7.8 billion, cubic feet of natural gas per day.

Libby Strait: I would now like to hand the call over to Libby Strait, Vice President of Investor Relations. Please go ahead.

Unknown Executive: We transported over 1 million barrels per day of refined products and petrochemicals.

Move 20 billion cubic feet per day for our natural gas pipeline Network.

Unknown Executive: And we have even more plant, pipe, rack and duct capacity coming online over the next 18 months. We've got nearly 6 billion worth of organic growth projects. Entering Service. That includes two gas processing plants in the Permian that are ramping as we speak, and a third plant that is expected to start up in the first part of next year. Altogether, these three plants will bring our total Permian processing capacity to almost 5 BCF a day. producing 650,000 barrels a day of liquid. For the fourth quarter, we expect to start up at 600,000 barrels per day by HEAL Y-Grade Pipeline and our Pratt-Port team.

Libby Strait: Good morning and welcome to the Enterprise Products Partners conference call to discuss second quarter 2025 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises General Partner, Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call today.

Altogether. These three plants will bring our total Permian processing capacity almost five bcf per day producing.

We transported over 1 million barrels per day of retired, products and petrochemicals.

Producing 642000 barrels a day of liquids.

In the fourth quarter, we expect to start up 600000 barrel per day, Bahia y grade pipeline.

And we have even more plant Pipe Rack and Dot capacity coming online over the next 18 months. We got nearly 6 billion worth of organic growth projects.

Entering service.

Unknown Executive: During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, based on the beliefs of the company, as well as assumptions made by, and information currently available to, enterprises management teams. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Our Frac 14, recent investments bring more volumes into our NGL value chain.

That includes 2, gas processing plants in the peryam that are ramping as we speak.

And the third plant that it's expected to start up in the first part of next year.

We started operations at our nitrogen River terminal.

Initially the facility will have the capacity to load ethane at 120000 barrels a day.

Altogether at least 3 plants will bring our total puran processing capacity to almost 5 BCF a day.

First half of 2026 facility will be fully operational.

Producing 650,000 barrels a day of liquids.

Unknown Executive: Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this presentation.

The commissioning of the second trial that is a flex trend.

And the fourth quarter, we expect to start up the 600,000 barrels per day by heel wide, grade pipeline.

Unknown Executive: These investments bring more volumes into our NGO value chain.

This expansion will increase.

Prosody by an additional 180000 barrels a day of ethane are 360000 barrels a day of propane.

Jim Teague: With that, I'll turn it over to Jim. Thank you. Thank you, Libby. Despite facing considerable headwinds, we delivered another good performance this quarter. Seasonally the second quarter is always tough, but this time we also face macroeconomic and geopolitical challenges. Today we reported adjusted EBITDA of $2.4 billion, $1.9 billion of distributable cash flow, providing 1.6 times coverage, and we retained $740 million of DCS. We set five volumetric records for the quarter, process 7.8 billion cubic feet of natural gas per day, move 20 billion cubic feet per day through our natural gas pipeline network. We transported over 1 million barrels per day of refined products and petrochemicals.

Unknown Executive: We started operations at our Natchez River Terminal. Initially, the facility will have the capacity to load ethane at 120,000 barrels a day. The first half of 2026, the facility will be fully operational for the commissioning of a second train that is a flex train. This expansion will increase.

And our flag. 14 Le Investments, bring more volumes into NGL value chain.

We started operations at our nitrous River terminal.

This past quarter was dominated by headlines about tariffs and trade many of this close to home.

Initially the facility will have the capacity to load that thing at 120,000 barrels a day.

Especially regarding ethane and LPG.

In the first half of 2026, the facility will be fully operational with a commissioning of a second train, that is a flex train.

We managed to this.

Vacate these disruptions.

Unknown Executive: this is an album ad that knew we'd release in an edited form.

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We've been clear.

About the risk of Weaponize and U S energy exports.

This expansion will increase its capacity by an additional 180,000 barrels a day of ethane.

Unknown Executive: It was great fun playing along with Ann and the TOlern series.

Unknown Executive: But what we caught a thumbs up for was when suggested that we let the composer experience himself.

Unknown Executive: This past quarter was dominated by headlines about tariffs and trade, many of this being close to home, especially regarding ethane and LPG. We managed to navigate these disruptions.

These kind of actions rarely heard the intended target.

Or 360,000 barrels a day of propane.

And often backfires hurting our own industry more.

We're fortunate this administration understands the important.

Audience of energy.

This past quarter was dominated by headlines about tariffs and trade. Many of this being close to home especially regarding ethene and LPG.

And global trade.

Unknown Executive: That's it. have been clear about the risk of weaponizing U.S. energy exports. These kind of actions rarely hurt the intended target and often backfire hurting our own industry more. We're fortunate this administration understands the importance of energy. and Global Trade, even if the Commerce Department may need a little reminder.

Even if the Commerce Department May need a little reminder.

We managed to dis to navigate these disruptions. That said,

Unfortunately, we could face similar challenges in the future.

Jim Teague: And we have even more plant pipe rack and duct capacity coming online over the next 18 months. We've got nearly 6 billion worth of organic growth projects.

We've been clear about the risk of weaponizing US Energy exports.

We're growing rumors of midstream companies planning to enter the LPG export market.

This space has become increasingly competitive and the impact is already evident.

These kind of actions rarely hurt the intended target and often backfire hurting our own industry more.

Jim Teague: Entering Service. That includes two gas processing plants in the Permian that are ramping as we speak, and a third plant that is expected to start up in the first part of next year. Altogether, these three plants will bring our total Permian processing capacity to almost five BCF a day. producing 650,000 barrels a day of liquid. For the fourth quarter, we expect to start up the 600,000 barrel per day Bahia Y-Grade Pipeline and our Pratt 14. These investments bring more volumes into our NGO value chain. We started operations at our Natchez River Terminal. Initially, the facility will have the capacity to load ethane at 120,000 barrels a day.

Just a year ago spot terminal fees range from 10 to 15 cents per gallon.

We're fortunate this Administration understands the importance of importance of energy.

Unknown Executive: Unfortunately, we could face similar challenges in the future. There are growing rumors of midstream companies planning to enter the LPG export market. However, this space has become increasingly competitive and the impact is already evident. Just a year ago, spot terminal fees ranged from $0.10 to $0.15 per gallon. That is no longer the case. and the second quarter, our LPG export volumes rose by 5 million barrels quarter to quarter. Yet our gross operating margin declined by $37 million. This was driven by the recontracting of a legacy 10-year double-digit term agreement. Current Market Pricing, and by a 60% drop in spot rates.

That is no longer the case.

And global trade. Even if the Commerce Department, may need a little reminder.

In the second quarter, our LPG export volumes rose by 5 million barrels a quarter to quarter.

Unfortunately, we could face similar challenges in the future.

Yet our gross operating margin declined by $37 million.

We're growing Rumours of mid-stream, companies planning to enter the LPD export Market.

This was driven by the re contracting of our legacy 10 year double digit term agreement the current market pricing and by a 60% drop in spot rates.

However, this space has become increasingly competitive and the impact is already evident.

Just a year ago, spot terminal of these range from 10 to 15 cents per gallon.

That is no longer the case.

Increased throughput across our Houston ship channel pipeline system.

The second quarter, our LPG, export volumes, Rose by 5.

Mitigate the decline.

Barrels quarter to quarter.

Jim Teague: The first half of 2026, the facility will be fully operational for the commissioning of the second train that is a flex train.

It doesn't change the fact that this market.

As fundamentally shifting.

Yet, our gross operating margin declined by 37 million.

Despite the challenges however, we remain well positioned to succeed.

Jim Teague: This expansion will increase Thanks for watching. This past quarter was dominated by headlines about tariffs and trade, many of this being close to home, especially regarding ethane and LPG. We managed to navigate these disruptions.

Our competitive advantage from our existing export infrastructure enables us to meet customer needs through brown field expansions for.

Unknown Executive: Although increased throughput across our Houston Ship Channel pipeline system. help mitigate the decline.

This was driven by the recontracting of a legacy 10-year. Double digit term agreement, the current market pricing and by 60% drop in spot rates.

For Newbuild economics, simply don't work and we will aggressively.

Unknown Executive: doesn't change the fact that this market is fundamentally shit.

Although increased through F across our Houston Ship Channel pipeline system, helped mitigate the decline,

And our position.

Appetite for U S ethane and ethylene remained strong in both Asia and Europe.

Unknown Executive: Despite the challenges, however, we remain well-positioned to succeed. Our competitive advantage from our existing export infrastructure enables us to meet customer needs through brownfield expansion. or New Build Economics simply don't work and we will aggressively and acquisitions. The appetite for U.S. ethane and ethylene remains strong in both Asia and Europe. As to octane enhancement, we've seen margins normalize. After a few years of outsized earnings, the business remains healthy. Lower margins are a product of new supply in the market, not waning demand. hydrocarbons is a supply driven Our network of assets reflects that. The majority of our capital projects currently under construction.

It doesn't change the fact that this Market is fundamentally shifting.

As to octane enhancement, we've seen margins normalize.

Despite the challenges. However, we remain welcome position to succeed.

Jim Teague: That's it. have been clear about the risk of weaponizing U.S. energy export. These kind of actions rarely hurt the intended target and often backfire hurting our own industry more. We're fortunate this administration understands the importance of energy. and Global Trade, even if the Commerce Department may need a little reminder. Unfortunately, we could face similar challenges in the future. There are growing rumors of midstream companies planning to enter the LPG export market. However, this space has become increasingly competitive and the impact is already evident. Just a year ago, spot terminal fees ranged from $0.10 to $0.15 per gallon.

After a few years of outsized earnings, but the business remains healthy.

Margins are a product of new supply in the market not winding demand.

Our competitive Advantage from our existing export infrastructure, enables us to make customer needs through Brownfield field. Expansions

Andrew carbon is a supply driven business.

For new build economics, simply don't work and we will aggressively.

Depend our position.

And our network of assets reflects that the.

The majority of our capital projects currently under.

The appetite for us, ethene and ethylene remains strong in both Asia and Europe.

Construction directly support our supply strategy.

As to Octane enhancement, we've seen margins normalized.

But supply isn't the whole story.

What sets us apart is our extensive connectivity to end users.

after a few years of outsized earnings but the business remains healthy,

We are directly or indirectly linked.

Rural margins are a product of new Supply and the market not Wayne and demand.

The 100% of the ethylene plants in the U S and 90% of the refineries east of the Rockies.

Hydrocarbons is a supply driven business.

and our network of assets, reflect that,

Our export business continues to be a key part of our strategy.

Unknown Executive: directly support our supply strategy. What sets us apart is our extensive connectivity and use We are directly or indirectly at link. 100% of the ethylene plants in the U.S. and 90% of the refineries east of Milwaukee. Our export business continues to be a key part of our strategy. with the addition of the Natchez River Terminal expanded LPG loading at EHT. and increased ethylene export capability at Morgan's Point. We've taken the deliberate steps. Transcription by CastingWords through theming our access to global markets.

With the addition of the Natures River terminal.

Jim Teague: That is no longer the case. and the second quarter our LPG export volumes rose by 5 million barrels quarter to quarter. Yet our gross operating margin declined by $37 million. This was driven by the recontracting of a legacy 10-year double-digit term agreement. Current Market Pricing, and by a 60% drop in spot rates. Although increased throughput across our Houston ship channel pipeline system. help mitigate the decline.

The majority of our capital projects currently under construction directly support our supply strategy.

Expanded LPG loading of DHT.

Which Supply isn't the whole story.

And increased ethylene export capability at Morgan's point.

We've taken deliberate steps to enhance and expand our downstream footprint.

Strengthening our access to global markets and with that Randy I'll turn it over to you. Okay. Thank you Jim Good morning, everyone. Starting with the income statement net income attributable to common unitholders was one 4 billion for both the second quarter.

Part is our extensive connectivity to end users.

We are directly or indirectly at length.

The 100% of the ethylene plants in the US and 90% of the refineries east of the Rockies.

Our export business continues to be a key part of our strategy.

with the addition of the nation's River terminal,

25, and 2024 net income to common unit holders on a per unit basis increased 3% to 66 cents per common unit in the second quarter of 2025 compared to 64 cents per common unit for the second quarter of last year, both on a fully diluted basis.

Jim Teague: doesn't change the fact that this market is fundamentally shit. Despite the challenges, however, we remain well-positioned to succeed. Our competitive advantage from our existing export infrastructure enables us to meet customer needs through brownfield expansion. for a new build economics simply don't work and we will aggress and acquisitions. The appetite for U.S. ethane and ethylene remains strong in both Asia and Europe. As to octane enhancement, we've seen margins normalized. After a few years of outsized earnings, but the business remains healthy. Lower margins are a product of new supply in the market, not waning demand. Agricultures is a supply driven business.

Uh expanded LPG loading at EHT and increased ethylene export capability. At Morgan's Point.

We've taken the deliberate steps to enhance and expand our Downstream footprint.

Unknown Executive: And with that, Randy, I'll turn it over to you.

Randy Fowler: Okay, thank you, Jim.

Randy Fowler: Good morning, everyone.

Randy Fowler: Starting with the income statement, net income attributable to common unit holders was $1.4 billion for both the second quarters of 2025 and 2024. Net income to common unit holders on a per unit basis increased 3% to 66 cents per common unit in the second quarter of 2025 compared to 64 cents per common.

Adjusted cash flow from operations.

That is cash flow from operations before changes in working capital was $2 1 billion.

The second quarters of 2025, and 2020 for distributable cash flow increased $127 million or 7% to one 9 billion for the second quarter of 2025.

Randy Fowler: of the second quarter of last year, both on a fully deliberative basis.

Strengthening our access to global markets and with that. Randy, I'll turn it over to you. Okay, thank you. Jim, good morning everyone. Starting with the income statement uh, net income attributable. The common unit holders with 1.4 billion for both. The second quarter of 2025 and 2024. Net income to come in the unit holders on a per unit basis. Increased 3% to 66 cents for common unit in the second quarter of 2025 compared to 64 cents, per common unit,

Primarily due to lower sustaining capital expenditures compared to last year that had a higher level due to modifications in the turnaround that PTH one distributable cash flow provided one six times coverage of the distribution declared for the second quarter of this year and enterprise returning 704.

Randy Fowler: adjusted cash flow from operations. That is cash flow from operations before changes in working capital was 2.1 billion for both the second quarters of 2025 and 2024. Distributable cash flow increased 127 million or 7% 1.9 billion to the second quarter of 2025. primarily due to lower sustaining capital expenditures compared to last year that had a higher level due to modifications and the turnaround that PDA... Distributable cash flow provided 1.6 times coverage of the distribution declared for the second quarter of this year, and Enterprise retained $748 million of distributable cash flow. For the last 12 months, the partnership has retained $3.4 billion of distributable cash flow.

Jim Teague: Our network of assets reflects that. The majority of our capital projects currently under construction. directly support our supply strategy. What sets us apart is our extensive connectivity to end users. We are directly or indirectly at link. 100% of the ethylene plants in the U.S. and 90% of the refineries east of the Rockies. Our export business continues to be a key part of our strategy. with the addition of the Natchez River Terminal expanded LPG loading at EHT. and increased ethylene export capability at Morgan's Point. We've taken the deliberate steps. and expand our downstream footprint. Retheming Our Access to Global Markets.

8 million distributable cash flow for the last 12 months. The partnership has retained $3 4 billion of distributable cash flow.

For the second quarter of last year, both on a fully diluted basis. Adjusted cash flow from operations. Um, that is a cash flow from operations before changes in uh working capital was 2.1 billion for both. The second quarters of 2025 and 2024. Distributable, cash flow increased 127 million or 7% 1.9 billion of the second quarter of 2025.

We declared a distribution of <unk> $54.05 per common unit for the second quarter of 2025, which was three 8% increase over the distribution declared for the second quarter of 2024. The distribution will be paid August 14 to common unit holders of record as of the close of business on July 31.

Primarily due to lower sustained Capital expenditures compared to last year, that had a higher level due to modifications and a turnaround at pdh 1.

In the second quarter, the partnership purchased approximately $3 6 million common units off the open market for $110 million.

Randy Fowler: We declared a distribution of 54 and a half cents per common unit for the second quarter of 2025, which is 3.8% increase over the distribution declared for the second quarter of 2024. The distribution will be paid August 14 to common unit holders of record as of the close of business on July 31. In the second quarter, the partnership purchased approximately 3.6 million common units off the open market for $110 million. Total repurchases for the 12 months ended June 30, 2025, were 309 million or approximately 10 million common units, bringing total purchases under our $2 billion buyback program to approximately 1.3%.

Distributable cash flow provided 1.6 times coverage of the distribution declared for the second quarter of this year and Enterprise retained, 748 million? No! Distributable, cash flow for the last 12 months, the partnership has retained 3.4 billion of distributable cash flow.

Total repurchases for the 12 months ended June 32025 were $309 million or approximately 10 million common units, bringing total purchases under our $2 billion buyback program to approximately $1 3 billion.

Randy Fowler: And with that, Randy, I'll turn it over to you. Okay. Thank you, Jim.

Randy Fowler: Good morning, everyone. Starting with the income statement, net income attributable to common unit holders was $1.4 billion for both the second quarters of 2025 and 2024. Net income to common unit holders on a per unit basis increased 3% to $0.66 per common unit in the second quarter of 2025 compared to $0.64 per common of the second quarter of last year, both on a fully deliberative basis. Adjusted cash flow from operations, that is cash flow from operations before changes in working capital was $2.1 billion for both the second quarters of 2025 and 2024. Distributable cash flow increased $127 million or 7% to $1.9 billion for the second quarter of 2025.

In addition to buybacks our distribution reinvestment plan and employee unit purchase plan.

We declared the distribution of 54 and a half cents per common unit for the second quarter of 2025, which is 3.8%, increase over the distribution declared for the second quarter of 2024, the distribution will be paid August 14th, to common unit holders of record as of the close of business on July 31.

The combined five 5 million common units on the open market for $171 million during the last 12 months, including one 3 million common units in the open market for $41 million.

During the second quarter of 2025 of highlighted on past calls that almost 50% of our employees participate and the employee unit purchase plan. We did some analysis using our 2020 for type ones at December 31, 2024, as a group our employees retirees.

Randy Fowler: In addition to buybacks, our Distribution Reinvestment Plan and Employee Unit Purchase Plan purchased a combined 5.5 million common units on the open market for $171 million during the last 12 months, including 1.3 million common units on the open market for $41 million during the second quarter of 2025. I've highlighted on past calls that almost 50% of our employees participate in the Employee Unit Purchase.

And the second quarter, the partnership purchased approximately 3.6 million common units off the open market for 110 million total. Repurchases for the 12 months ended, June 30th 2025 or 309 million or approximately 10 million common units, bringing total purposes under our 2 billion dollar buyback program to approximately 1.3 billion,

And their families.

Earned over $40 million Apd units or almost 3% of outstanding units and made them. Our second largest unit holder after privately held <unk> at year end.

Randy Fowler: primarily due to lower sustaining capital expenditures compared to last year that had a higher level due to modifications and the turnaround that PDA Distributable cash flow provided 1.6 times coverage of the distribution declared for the second quarter of this year, and Enterprise retained $748 million of distributable cash flow. For the last 12 months, the partnership has retained $3.4 billion of distributable cash flow. We declared a distribution of 54 and a half cents per common unit for the second quarter of 2025, which is 3.8% increase over the distribution declared for the second quarter of 2024. The distribution will be paid August 14 to common unit holders of record as of the close of business on July 31.

For the 12 months ending June 32025 enterprise paid out approximately $4 6 billion in distributions to limited partners combined with $309 million of common unit purchases over the same period enterprises total capital returned was $4 9 billion, resulting in a payout rate.

Randy Fowler: We did some analysis using our 2024 K-1s. At December 31, 2024, as a group, our employees, retirees and their families owned over 40 million EPD units, or almost 2% of outstanding units, and made them our second largest unit holder after privately held EPCO at year end. For the 12 months ending June 30 2025, Enterprise paid out approximately $4.6 billion in distributions to limited partners. Combined with $309 million of common unit purchases over the same period, Enterprise's total capital return was $4.9 billion, resulting in a payout ratio of adjusted cash flow from operations of $57. Total capital investments in the second quarter of 2025 were $1.3 billion, which included $1.2 billion for growth capital projects and $117 million of sustaining capital.

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Adjusted cash flow from operations of 57%.

Total capital investments in the second quarter of 2025 to $1 3 billion, which included $1 2 billion for growth capital projects and $117 million of sustaining capital expenditures are expected range of growth capital expenditures for 2025, and 2026 remain unchanged.

In addition to BuyBacks our distribution, reinvestment plan and employee unit. Purchase plan purchases, to combine, 5.5.5 million, common units on the open market for 171 million during the last 12 months, including 1.3 million common units on the open market for 41 million. During the second quarter of 2025, I've highlighted on past calls that almost 50% of our employees. Participate in the employee unit purchase plan, we did some analysis using our 2024 k1s at December 31 2024. As a group, our employees retirees and their families owned over 40 million, epd units, for almost 2% of outstanding units and made them our second largest unit holder after privately held Epco at year end.

<unk> at four to $4 5 billion for 2025 and two to two.

Randy Fowler: In the second quarter, the partnership purchased approximately 3.6 million common units off the open market for $110 million. Total repurchases for the 12 months ended June 30, 2025, were 309 million or approximately 10 million common units, bringing total purchases under our $2 billion buyback program to approximately 1.3 � In addition to buybacks, our Distribution Reinvestment Plan and Employee Unit Purchase Plan purchased a combined 5.5 million common units on the open market for $171 million during the last 12 months, including 1.3 million common units on the open market for $41 million during the second quarter of 2025.

For the 12 months, ending June 30, 2025 Enterprise paid out, approximately 4.6 billion in distributions to limited partners combined with 309 million, a common unit rate purchases over the same period Enterprises. Total. Capital return was 4.9 billion. Resulting in a payout ratio of adjusted cash flow from operations of 57%.

5 billion for 2026, we continue to expect 2025 sustaining capital expenditures.

Approximately $525 million.

Randy Fowler: Our expected range of growth capital expenditures for 2025 and 2026 remain unchanged at $4-$4.5 billion for 2025 and $2-$2.5 billion for 2026. We continue to expect 2025 sustained capital expenditures to be approximately $525 million. Our total debt principal outstanding was approximately $33.1 billion as of June 30, 2025. Assuming the final maturity date for our hybrids, the weighted average life of our debt portfolio is approximately 18 months. Our weighted average cost of debt was 4.7% and approximately 98% of our debt was fixed rate. At June 30, 2025, our consolidated liquidity was approximately $5.1 billion, including availability under our credit facilities and unrestricted...

Our total debt principal outstanding was approximately $33 1 billion as of June 32025.

Assuming the final maturity date for our hybrids the weighted average life of our debt portfolio was approximately.

Yes.

Our weighted average cost of debt was four 7% and approximately 98% of our debt was fixed rate.

June 32025, our consolidated liquidity was approximately $5 1 billion, including availability under our credit facilities and unrestricted cash on hand.

Sustaining Capital expenditures to be approximately 525 million.

Randy Fowler: I've highlighted on past calls that almost 50% of our employees participate in the Employee Unit Purchase.

Our total debt principal outstanding was approximately 33.1 billion as of June 3020.

Our adjusted EBITDA for the second quarter was $2 4 billion for the last 12 months was $9 9 billion.

Randy Fowler: We did some analysis using our 2024 K-1s. At December 31, 2024, as a group, our employees, retirees and their families owned over 40 million EPD units, or almost 2% of outstanding units, and made them our second largest unit holder after privately held EPCO at year end. For the 12 months ending June 30 2025, Enterprise paid out approximately $4.6 billion in distributions to limited partners. Combined with $309 million of common unit purchases over the same period, Enterprise's total capital return was $4.9 billion, resulting in a payout ratio of adjusted cash flow from operations of $57 Total capital investments in the second quarter of 2025 were $1.3 billion, which included $1.2 billion for growth capital projects and $117 million of sustaining capital.

assuming the final maturity date, for our hybrids, the weighted average, life of our debt portfolios, approximately 18 years,

As of June 32025, our consolidated leverage was three one times on a net basis after adjusting our debt for the partial equity treatment of our hybrid.

Our weighted average cost of debt was 4.7% and approximately 98% of our debt was fixed rate.

And will reduce the partnership's unrestricted cash on hand, our leverage target.

Randy Fowler: Our adjusted EBITDA for the second quarter was $2.4 billion. And for the last 12 months was $9.9 billion. As of June 30, 2025, our consolidated leverage was 3.1 times on a net basis after adjusting our debt to the partial equity treatment of our hybrid debt and reduced by the partnerships unrestricted cash on hand.

It remains at three times, plus or minus two five firms without Libya I think we can open it up for questions. Thank.

At 10:30 2025 our Consolidated liquidity was approximately 5.1 billion including availability under our credit facilities and unrestricted. Cash on hand.

Thank you operator, we are ready to open the call for questions.

Thank you as a reminder to ask a question you will need to press star one on your telephone.

Remove yourself from the queue you May press Star one again.

Randy Fowler: Our leverage target remains at three times plus or minus 0.25 terms. With that, Libby, I think we can open it up for questions.

Please limit yourself to one question and one follow up or two questions to allow everyone the opportunity to participate.

Our first question.

Unknown Executive: We are ready to open the call for questions.

Our adjusted Eva doll for the second quarter was 2.4 billion. And for the last 12 months was 9.9 billion, as of June 30th, 2025 for Consolidated, leverage was 3.1 times on a net basis. After adjusting, our debt, to the partial Equity, treatment of our hybrid, uh, debt and reduced by the Partnerships unrestricted. Cash on hand, our leverage Target uh remains at at 3 times plus or minus 0.25 terms with that Libby. I think we can open it up for questions.

Comes from the line of Spiro <unk> of Citi.

Thank you, operator. We are ready to open the call for questions.

Unknown Executive: As a reminder, to ask a question, you will need to press star 1-1 on your telephone.

Randy Fowler: Our expected range of growth capital expenditures for 2025 and 2026 remain unchanged at $4-$4.5 billion for 2025 and $2-$2.5 billion for 2026. We continue to expect 2025 sustaining capital expenditures to be approximately $525 million. Our total debt principal outstanding was approximately $33.1 billion as of June 30, 2025. Assuming the final maturity date for our hybrids, the weighted average life of our debt portfolio is approximately 18 years. Our weighted average cost of debt was 4.7% and approximately 98% of our debt was fixed rate. At June 30, 2025, our consolidated liquidity was approximately $5.1 billion, including availability under our credit facilities and unrestricted capital.

Please go ahead Spiro.

Thanks, operator, good morning team.

Unknown Executive: To remove yourself from the queue, you may press star 1-1 again.

First question just wanted to maybe take a look at second half of 'twenty five.

Thank you as a reminder, to ask a question. You will need to press star 1, 1 on your telephone, to remove yourself from the queue. You may press star 1 1 again.

Jim you mentioned about $6 billion of assets coming online in the second half just curious how should we think about the ramp up of those assets are there are a lot of volumes behind the systems should we expect these processing plants to come online pretty full as well.

Please limit yourself to 1, question and 1, follow-up or 2 questions to allow everyone the opportunity to participate.

Our first question.

Spiro Dounis: Comes from the line of Spiro Dounis of Citi. Please go ahead, Spiro. Thanks, operator. Morning, team.

Zack what would be your.

To wrap up on slide 14.

Comes from the line of Spyro Dunes a city.

Jean will come up completely full.

Please go ahead Spira.

Unknown Executive: First question, just want to maybe take a look at second half of 25. Jim, you mentioned about $6 billion of assets coming online in the second half. Just curious, how should we think about the ramp up of those assets? Are there a lot of volumes behind the systems? Should we expect these processing plants to come online pretty full as well?

And our key we'll see a ramp as vlccs ordered and Natalie can chime in but I think the process implants, you got a pretty quick ramp to them as well.

Yes, that's right.

Delaware Midland combined is probably at about a 90% utilization today, but remember we just process two plants up.

Unknown Executive: Zach, what will be your ramp up on Pac-14? Dr. Latine will come up completely full, NRT will see a ramp as VLECs are ordered, and Natalie can chime in, but I think the processing plants are going to have a pretty quick ramp to them as well. Yes, that's right. And Delaware and Midland combined is probably around a 90% utilization today. But remember, we just brought those two plants up. By the end of the year, fourth quarter mainly driven Delaware, Delaware should be full and will be here to come up after her. BAHIA should come up probably around 50% first 12 months, probably closer to 60%.

By the end of the year fourth quarter, mainly driven Delaware, Delaware fallen session.

Thanks operator morning team. Uh first question just want to maybe take a look at second half of 25. Uh Jim you mentioned about 6 billion dollars of assets coming online in the second half just curious. How should we think about the ramp up of those assets? Are there a lot of volumes behind the systems? Should we expect these processing plants to come online pretty full as well?

Zack, what would be your ramp up on 514?

Bahir come up.

Yes.

But he I should come up.

Randy Fowler: Our adjusted EBITDA for the second quarter was $2.4 billion. And for the last 12 months was $9.9 billion. As of June 30, 2025, our consolidated leverage was 3.1 times on a net basis after adjusting our debt to the partial equity treatment of our hybrid debt and reduced by the partnership's unrestricted cash on hand. Our leverage target remains at three times plus or minus 0.25 times.

Around 50% first 12 months, probably closer to 60%.

That's middle of fourth quarter start up so you won't get a full quarters contribution until the first quarter of next year.

Got it got it very helpful.

Second question, maybe just shifting to capital allocation stepped up the buyback a little bit this quarter I imagine that was in response to just some volatility in the price, but as we sort of look forward, you're still sort of holding off that two to two 5 billion for 2026, So I wonder now as we're approaching that timeframe.

That's gonna come up completely full. Uh, nrt will see a ramp as as VCS are ordered and and Natalie can chime in, but I think the processing plants are going to have a pretty quick ramp to them as well. Yes, that that's all right. And um, Delaware and Midland combined is probably around a 90% utilization today. But remember we just brought those 2 plants up. Um, by the end of the year, fourth quarter, mainly driven Delaware Delaware should be full. And so

Over here. Come up at.

Dustin.

Libby Strait: With that, Libby, I think we can open it up for questions. Thank you, operator. We are ready to open the call for questions. Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again.

Unknown Executive: Again, that's middle of fourth quarter startup, so you won't get a full quarter contribution until the first quarter of next year. Got it.

Do you start ratcheting up the buyback in anticipation of 2026 being a lean year or really not until we get into it do we see any sort of let's call. It step change in our buyback program.

But here should come up, uh, probably around 50% first, 12 months probably closer to 60%. Um, again that's middle of fourth quarter startup. So you won't get a full course contribution until the first quarter of next year.

Unknown Executive: Second question, maybe just shifting to capital allocation, stepped up the buyback a little bit this quarter. I imagine that was in response to just some volatility in the price.

Hey, Spiro good morning, this is Randy.

We had said actually last quarter that our expectation. This year was we would probably do anywhere from $2 million to $300 million of <unk>.

Unknown Executive: But as we sort of look forward, you're still sort of holding off that $2 to $2.5 billion for 2026. So I wonder now, as we're approaching that time frame, do you start ratcheting up the buyback in anticipation of 2026 being a lean year, or really not till we get into it, do we see any sort of, let's call it step change in the buyback program?

Unknown Executive: Please limit yourself to one question and one follow up or two questions to allow everyone the opportunity to participate.

Buy backs youre right in the second quarter, we did see some.

Got it, got it all very helpful. Um second question, maybe just shifting to Capital allocation stepped up to buy back a little bit this quarter. I imagine that was in response to just some volatility in the price but as we sort of look forward, you're still sort of holding off that 2 to 2 and a half billion for 2026. So I wonder now

Spiro Dounis: Our first question. Comes from the line of Spiro Dounis of Citi. Please go ahead, Spiro. Thanks, operator. Morning, team.

Volatility and so we picked up the pace of purchases.

And I think we will continue to be opportunistic for the remainder of this year.

Randy Fowler: Hey, Spiro, good morning. This is Randy. You know, we, you know, we had said, actually last quarter that our expectation this year was we would probably do anywhere from $200 to $300 million of buybacks. You're right, in the second quarter, we did see some volatility. And so we picked up the pace of purchases. You know, and I think we'll continue to be opportunistic for the remainder of this year.

As we're approaching that time frame, you know, do you start ratcheting up the buyback in anticipation of 2026 being a lean year or, or really, not till we get into it. Do we see any sort of, let's call it step change in the buyback program.

I think the larger opportunity for the buybacks will come in.

Jim Teague: First question, just want to maybe take a look at second half of 25. Jim, you mentioned about $6 billion of assets coming online in the second half. Just curious, how should we think about the ramp up of those assets? Are there a lot of volumes behind the systems? Should we expect these processing plants to come online pretty full as well?

2026.

As we really start Pearl and off.

Much more free cash flow.

Great I'll leave it there thanks, everyone.

Thank you.

Our next question.

Jim Teague: Zach, what will be your ramp up on 514? Rockport team will come up completely full. NRT will see a ramp as VLECs are ordered and Natalie can chime in, but I think the processing plants are gonna have a pretty quick ramp to them as well. Yes, that's right. And Delaware and Midland combined is probably around a 90% utilization today. But remember, we just brought those two plants up. By the end of the year, fourth quarter mainly driven Delaware, Delaware should be full and Over here, come up back to her. BAHIA should come up probably around 50% first 12 months, probably closer to 60%.

Comes from the line of Jean Ann Salisbury of Bofa.

Please go ahead Jean Ann.

Randy Fowler: I think the larger opportunity for the buybacks will come in 2026, as we really start throwing off much more free cash flow. Great.

Hi, Good morning, I Wonder if you go back to some of them. It's commentary on the call and LPG export fees have fallen pipeline and frac might be of our balance as well and have some pressure there. How do you see this evolving hello enterprise talent defending market share with kind of maintaining our excellent return on capital.

Hey Spyro, good morning. This is Randy. You know, we uh you know, we had set up uh actually last quarter that our expectation. This year was we would probably do anywhere from 2 to 300 million dollars of BuyBacks. Uh, your ride in the second quarter. We did see some, uh, volatility and so we, uh, picked up the pace of purchases. Um, you know, and I, I think we'll continue to be opportunistic for the remainder of this year. Um, I think the the larger opportunity for the BuyBacks will come in in um 2026 uh, as we really start throwing off uh much more

Unknown Executive: I'll leave it there.

Cash flow.

Unknown Executive: Thanks, everyone.

Right, I'll leave it there. Thanks everyone.

Jean Ann Salisbury: Our next question comes from the line of Jean Ann Salisbury, a B of A.

Jean Ann this is Doug.

Thank you.

All right. Next question.

So it's from our perspective on specifically on LPG as we stand at 85%, 90% contracted through the balance of the decade.

Unknown Executive: Please go ahead, Jean Anne. Hi, good morning. I wanted to go back to some of Jim's commentary on the call. LPG export fees have fallen. Pipeline and FRAC might be overbuilt as well and have some pressure there. How do you see this evolving? And how will enterprise balance defending market share with kind of maintaining your excellent return on capital?

comes from the line of Gene and Salsbury, a B of A

please, go ahead and

And as far as our strategy brawl using brownfield economics over here, it's all bolt on infrastructure. So it allows us to be extremely competitive to continue to get term contracts, which we continue to sign up additional counterparties and will continue to do so.

Spiro Dounis: Again, that's middle of fourth quarter startup, so you won't get a full quarter's contribution until the first quarter of next year. Got it. All very helpful.

Unknown Executive: Hi, Jean Anne, this is Tug. So it's, from our perspective on specifically on LPGs, we stand 85 to 90% contracted through the balance of the decade. And as far as our strategy, we're all using brownfield economics over here, it's all built on infrastructure. So it allows us to be extremely competitive to continue to get term contracts, which we continue to sign up additional counterparties, and we'll continue to do so. You know, Jeanine, the other thing I think is important is... that export facility as a way of being a magnet for our pipelines and our fractionators and our stores.

Hi, good morning. Um, I wanted to go back to some of Jim's commentary on the call, um, LPG expert, fees have fallen uh, pipeline in F over bills as well and have some pressure there. How do you see this evolving and how will Enterprise balance defending market share with kind of maintaining your your excellent return on Capital.

The other thing I think is important is.

Spiro Dounis: Second question, maybe just shifting to capital allocation. Stepped up the buyback a little bit this quarter. I imagine that was in response to just some volatility in the price. But as we sort of look forward, you're still sort of holding off that $2 to $2.5 billion for 2026. So I wonder now, as we're approaching that time frame, do you start ratcheting up the buyback in anticipation of 2026 being a lean year?

That export facility as a way of being a magnet for our pipelines and our fractionator is on our storage.

That makes sense. Thank you.

And then I think as my follow up it's probably for Tony Theres, obviously, a lot of concern about potentially a slowing oil growth in the Permian next year, if oil growth does slow down or even is flat next year do you see the rate of gas to oil ratio growth changing if at all.

Tug. Um, so it's from our perspective on specifically, on lpgs We Stand 85 and 90% contracted through through the balance of the decade. Um and as far as our strategy, um we're all using Brownfield economics over here. It's all bolt-on infrastructure. So it allows us to be extremely competitive uh to continue to get term contracts, which we continue to sign up additional counterparties and we'll continue to do so.

Randy Fowler: Or Hey Spiro, good morning. This is Randy. You know, we, you know, we had said actually last quarter that our expectation this year was we would probably do anywhere from $200 to $300 million of buybacks. You're right, in the second quarter, we did see some volatility. And so we picked up the pace of purchases. You know, and I think we'll continue to be opportunistic for the remainder of this year.

you know, June and the other thing I think is important is, uh,

And how do you think about that.

Good morning, Jean Ann.

I think all thinking about that question first and foremost we believe the Permian basin producers have been and will always be looking for oil.

That export facility as a way of being a magnet for our pipelines, and our fractionators and our storage.

Unknown Executive: That makes sense.

Unknown Executive: And then I think as my follow up, it's probably for Tony. There's obviously a lot of concern about potentially slowing oil growth in the Permian next year. If oil growth does slow down or even is flat next year, do you see the rate of gas to oil ratio growth changing, if at all? And how do you think about that?

That said they've been drilling about 5000 locations a year for the last several years. So I would say, it's clear that the easiest and oil locations for the most part have been drilled up.

Spiro Dounis: I think the larger opportunity for the buybacks will come in 2026, as we really start throwing off much more free cash flow. Great. I'll leave it there. Thanks, everyone. Thank you.

Thus, we have been and we will be drilling cashier benches, and we've talked about that.

Unknown Executive: Good morning, Jean Anne. I think all thinking about that question, first and foremost, we believe the Permian Basin producers have been and will always be looking for oil. That said, they've been drilling about 5,000 locations a year for the last several years, so I would say it's clear that the easiest and oiliest locations, for the most part, have been drilled up. Thus, we have been and we will be drilling gassier benches. And we've talked about that, you know, for the last year or two. You know, you add to that that oil naturally declines faster than natural gas does, and we have this very large PDP and very large and growing PDP base in Permian.

That makes sense. Uh, thank you. And then I think as my follow-up, it's it's probably for Tony. Uh, there's obviously a lot of concern about potentially slowing oil. Growth in the Permian next year, if oil growth, does slow down or even as flat next year. Do you see the rate of gas to oil? Ratio growth changing if at all? Um, and and how do you think about that?

Uh, good morning, gan.

The last year or two.

I, I think, I'll

You add to that.

All naturally declines faster than this and then and then natural gas does and where you have this very large PDP and very large and growing PDP base in the Permian.

Think about that question. First and foremost, We Believe The permeation Producers have been and will always be looking for oil.

Jean Ann Salisbury: Our next question comes from the line of Jean Ann Salisbury of B of A.

Jean Ann Salisbury: Please go ahead, Jean Ann. Hi, good morning. I wanted to go back to some of Jim's commentary on the call. LPG export fees have fallen, pipeline and frac might be overbuilt as well and have some pressure there. How do you see this evolving? And how will enterprise balance defending market share with kind of maintaining your excellent return on capital?

So gena in any way you cut it all signs point to the Permian basin, continuing to get cash here.

That's sad. They've been drilling about 5,000 locations, a year for the last several years. So, I would say it's clear that the easiest and oiliest locations. For the most part have been drilled up.

Really for years to come.

Theres no question about it.

I think while we're at it.

On we're on the topic of the Permian, maybe I'll just talk about how we see the Permian.

Thus, we have been and we will be drilling gas, your benches. And we've talked about that, you know, for the last year or 2

Tug: Hi, Jean and this is Tug. So it's from our perspective on specifically on LPGs, we stand 85 and 90% contracted food through the balance of the decade. And as far as our strategy, we're all using brownfield economics over here, it's all built on infrastructure. So it allows us to be extremely competitive to continue to get term contracts, which we continue to sign up additional counterparties, and we'll continue to do so.

This is a good time to talk about it because theres been a lot of questions.

Unknown Executive: So, Jeanine, any way you cut it, all signs point to the Permian Basin continuing to get gashier, really, for years to come. There's no question about it.

What's that.

You know, you add to that that now, oil naturally declines faster than this, than, than natural gas does. And we have this very large PDP and very large and growing PDP bass in the Parian.

It's a great time.

Okay.

There's a lot of Thats happened over the last 60 to 90 days.

So, Gene in any way, you cut it all signs point to, uh, the Permian Basin continuing to get cashier.

First and foremost OPEC has abandoned their long standing market stability role in favor of market share in knowing the way to put them in a.

Unknown Executive: I think while we're When we're on the topic of the Permian, maybe I'll just talk about how we see the Permian if maybe this is a good time to talk about it. Watch out. It's a great time, Tony, thank you. Okay. You know, there's a lot that's happened over the last 60 to 90 days. First and foremost, OPEC has abandoned their longstanding market stability role in favor of market sharing, on the way to putting a couple of two million barrels of incremental production on in just a six-month time period. That's a lot. Then we had the Israel and Iran conflict break out to a full-fledged war, and all the oil facilities in Iran and throughout the Middle East were unscathed, so thus we had the war premium taken out.

Um, really for years to come? There's no, there's no question about it.

I think, while we're

A couple of.

2 million barrels of incremental production on in just a six month time period, that's a lot.

Tug: You know, Jeanine, the other thing I think is important is... That export facility has a way of being a magnet for our pipelines and our fractionators and our stores. That makes sense.

And then we had the Israel and Iran complex breakout to a full fledged war.

Talk about how we see the Permian. If, if maybe this is a good time to, to talk about it because there's been a lot of question.

And all of the oil facilities in Iran, and throughout the middle East around scale. So thus we have the war premium taken out.

Unknown Executive: Thank you.

Jean Ann Salisbury: And then I think as my follow up, it's probably for Tony, there's obviously a lot of concern about potentially slowing oil growth in the Permian next year. If oil growth does slow down or even is flat next year, do you see the rate of gas to oil ratio growth changing, if at all? And how do you think about that?

So while all that being said there is a lot of pressure one could see on oil. Meanwhile, we're sitting here in summer driving season around the world and strong demand in the middle East.

Okay. Um, you know, there's a lot of that's happened over the last 60 to 90 days. Um, first and foremost, OPEC has abandoned their long-standing Market stability, role in favor of market share. And on the way to putting a, a couple of 2 million, barrels of incremental, production on in just a 6-month time period. That's a lot.

So the question is is when when there's strong demand in summer driving season ends and middle East, which we use and all the oil for electrical generation what happens to oil.

Tony: Good morning, Jean Anne. I think all thinking about that question, first and foremost, we believe the Permian Basin producers have been and will always be looking for oil. That said, they've been drilling about 5,000 locations a year for the last several years, so I would say it's clear that the easiest and oiliest locations, for the most part, have been drilled up. Thus, we have been and we will be drilling gassier benches. And we've talked about that, you know, for the last year or two. You know, you add to that that oil naturally declines faster than natural gas does.

Yes, Gena and respectfully I see Theres a lot of people that are that have some pretty dire forecast and we feel differently and I think I will just point out the reason we feel differently.

Unknown Executive: So, all that being said, there's a lot of pressure one could see on oil. Meanwhile, you know, we're sitting here in summer driving season around the world and strong demand in the Middle East. So the question is, is when this strong demand ends, summer driving season ends in the Middle East, which is using all the oil for electrical generation, what happens to oil? And you know, I guess, Jean and respectfully, I see there's a lot of people that have some pretty dire forecast, and we feel differently. And I think, and I'll just point out the reason we feel differently is OPEC's been shorting the market.

And then we had the Israel and Iran conflict break out to a full-fledged War, uh, and and all the oil facilities in Iran and throughout the Middle East were unscathed. So thus, we had to work premium taken out

Opex been shorting the market.

At least 2 million barrels a day for two years running and more on top of that so there is a massive hole to be able to put oil into when and if the price drops. So assuming we have a price drop and we move from backwardation or contango oil is going to get a signal of a trade in.

Um, so all that being said, there's a lot of pressure 1 could see on oil. Meanwhile, you know, we're sitting here in in summer driving season around the world and strong demand in the Middle East.

So, the question is, is when, when the strong, the demand ends summer driving season ends in Middle East, which is using all the oil for electrical generation, what happens to oil?

Tony: And we have this very large PVP and very large and growing PVP base in the Permian. So, Jean, in any way you cut it, all signs point to the Permian Basin continuing to get gashier, really, for years to come. There's no question about it.

Into storage and that's that's the way we see it so.

We're probably not as bearish on price, although we don't have to call price, we're not as bearish as others, but from a fundamental standpoint, I will say, we're not as bearish as others.

Unknown Executive: 2 million barrels a day for two years running and more on top of that. So there is a massive hold to be able to put oil into when and if the price drops. So assuming we have a price drop and if we move from backwardation to contango, oil is going to get a signal to trade into storage and that's the way we see it. So, you know, we're probably not as bearish on price, although we don't have to call price, we're not as bearish as others, but from a fundamental standpoint, I will say we're not as bearish as others.

So what does that mean for U S. Producers, we had a brief period, where we touch $57.

Tony: I think while we're When we're on the topic of the Permian, maybe I'll just talk about how we see the Permian. If maybe this is a good time to talk about it, because there's been a great portion. Watch out. There's a lot that's happened over the last 60 to 90 days. First and foremost, OPEC has abandoned their longstanding market stability role in favor of market sharing on the way to putting a couple of two million barrels of incremental production on in just a six-month time period. That's a lot. Then we had the Israel and Iran conflict break out to a full-fledged war, and all the oil facilities in Iran and throughout the Middle East were unscathed, so thus we had the war premium taken out.

But we're at 65 this morning, and really when you look at 'twenty six 'twenty seven all the way up to 30.

We're at 62 to 63 Bucks for the Permian producer, which is where we're focused with our assets you had the improvement in gas basis.

New pipelines to takeaway and really.

Unknown Executive: So what does that mean for U.S. producers? We had a brief period where we touched $57, but we're at 65 this morning, and really when you look at 26, 27, all the way up to 30, we're at 62 to 63 bucks. For the Permian producer, which is where we're focused with our assets, you add the improvement in gas basis and new pipelines to take away, and really, Permian producer's bottom line is extremely profitable. So I think what we're going to see during earnings season for producers is you're going to see them hold their guidance and not go down.

And you know I guess Jean and respectfully I I see there's a lot of people that are that have some pretty dire forecast and we feel differently and I think and I'll just point out the reason we feel differently uh is opec's been shorting. The market, at least 2 million barrels a day for 2 years running and more on top of that. So there's a massive hold to be able to put uh, oil into when enough the price drops. So assuming we have a price drop and and we move from backwardation to contango, or oil is going to get a signal to trade and, and the into storage. And that's that's the way we see it. So, you know, we're we're probably not as bearish on price although we don't have to call Price. We're not as bearish as others but from a fundamental standpoint, I will say we're not as bearish as others.

In Permian producers Bottomline is extremely profitable.

I think what we're going to see earning season for producers since youre going to see them hold our guidance.

So, what does that mean? For us producers, we had a brief period where we touched $77.

And not go down while others are saying in the Permian is going to be flat to down and we just don't believe that's going to happen youll see them hold their guidance for the year and youll see that they've been aggressive in the catching 'twenty five 'twenty six and maybe even some of them 27 from a fundamental standpoint, that's how we see it Natalie.

Um but you know we're at 65 this morning and really when you look at 26 27, all the way out to 30 uh we're at 62 to 63 bucks.

Tony: So, all that being said, there's a lot of pressure one could see on oil. Meanwhile, you know, we're sitting here in summer driving season around the world and strong demand in the Middle East. So the question is, is when this strong demand ends, summer driving season ends, and Middle East quits using all the oil for electrical generation, what happens to oil? And, you know, I guess, Jean and respectfully, I see there's a lot of people that have some pretty dire forecast. And we feel differently. And I think, and I'll just point out the reason we feel differently is OPEC's been shorting the market.

What are you seeing.

Yeah.

For the perming producer, which is where we're focused with our assets, you had uh the Improvement in gas bases because in in new pipelines to take away and really uh human uh permanent producers, bottom line is extremely profitable.

Not hearing anything different I always spoke to in our last earnings call. We actually did get a surprise from one of our producers who bought wells forward in 2026.

Unknown Executive: What others are saying, the primary is going to be flat to down. We just don't believe that's going to happen. You'll see them hold their guidance for the year, and you'll see that they've been aggressive with catching 25, 26, and maybe even some of them 27. From a fundamental standpoint, that's how we see it.

During earnings season for producers is you're going to see them hold or died.

Our production plans there are a few production areas to our portfolio, where it's not declining as expected.

Just thinking about this in Midland This year, we will have brought on 463 wells.

Unknown Executive: Natalie, what are you seeing? We are not hearing anything different than what we spoke to in our last earnings call. We actually did get a surprise from one of our producers who brought wells forward in 2026 in their production plan. There are a few production areas, too, in our portfolio where it's not declining as expected. I'll just leave you with this. In Midland, this year, we will have brought on 463 wells. Next year, we are... We have 498 on the schedule.

Next year, we are.

Others are staying. The permission is going to be flat down. We just don't believe that's going to happen. You'll see them hold their guidance for the year and you'll see that they've been aggressive with hatching 25 26 and maybe even some of them 27 from a fundamental standpoint. That's how we see it. Natalie

We will we have 498 on the schedule just to give you some color.

That's super helpful. Thank you Tony if you have had a really good record.

What do you? What are you seeing? Are we? Yeah, we we are not hearing anything different than what we spoke to in our last names.

We actually did get a surprise.

Tony: 2 million barrels a day for two years running and more on top of that. So there is a massive hold to be able to put oil into when and if the price drops. So assuming we have a price drop and we move from back gradation to contango, oil is going to get a signal to trade into storage and that's the way we see it. So, you know, we're probably not as bearish on price, although we don't have to call price, we're not as bearish as others, but from a fundamental standpoint, I will say we're not as bearish as others.

You're forecasting that Gary Thank you for the very.

Go ahead Sir.

Thank you.

Thank you our next question comes.

Comes from the line of Theresa Chen Barclays. Please go ahead Teresa.

From 1 of our producers who brought Wells for and 2026 and their production plans. There are a few production areas too in our portfolio, where it's not declining is expected. And then I'll just leave you with this in Midlands. This year, we will have brought on 463 Wells.

Good morning, I wanted to go back to the topic of NGL exports and specifically what are the lessons we learned from the Pis ethane incident. During the second quarter do you think the views of your customers suppliers and other stakeholders on U S ethane exports to China.

uh, next year we are, um,

We will we have 498 on the schedule, just to give you some color.

Unknown Executive: You've had a really good record at your forecasting, so that carries some weight.

Unknown Executive: So thank you for the good answer.

Tony: So what does that mean for U.S. producers? We had a brief period where we touched $57. But you know, we're at 65 this morning, and really when you look at 26, 27, all the way up to 30, we're at 62 to 63 bucks. For the Permian producer, which is where we're focused with our assets, you add the improvement in gas basis and new pipelines to take away, and really, Permian producer's bottom line is extremely profitable. So I think what we're going to see during earnings season for producers is you're going to see them hold their guidance and not go down.

Well, that's, um, that's super helpful. Thank you, Tony. You've, uh, you've had a really good record at, uh, at your forecasting. So, as I carry some weight, so thank you for the very, uh, the good answer.

Thank you.

Theresa Chen: Our next question comes from the line of Theresa Chen of Barclays.

Do you think those of you have structurally changed at the split both at this event.

Doug: Please go ahead, Theresa. Good morning. I want to go back to the topic of NGL exports and specifically, what are the lessons learned from the BIS ethane incident during the second quarter? Do you think the views of your customers, suppliers, and other stakeholders on U.S. ethane exports to China, do you think those views have structurally changed as a result of this event? And if so, are you likely going to try to find alternate markets or end uses for incremental ethane exports from here?

So are you likely you're going to try to find alternate markets are ambitious for incremental ethane exports come here.

Thank you. Our next question comes from the line of Teresa Chen, a Barclays, please go ahead Teresa.

Doug do you want to take it yeah. So if you look at what's happened to the brs requiring <unk>.

Export license effectively for ethane I will say.

We were largely on.

Gabe It enterprise, but I'll remind you that we have a lot of international exposure.

Other countries other than China.

Call, It Vietnam, Thailand, India, Europe, Mexico, Brazil.

Tony: What others are saying, the permission is going to be flat to down, we just don't believe that's going to happen. You'll see them hold their guidance for the year and you'll see that they've been aggressive in the catching 25, 26, and maybe even some of them 27. From a fundamental standpoint, that's how we see it.

Good morning. Um, I want to go back to the topic of NGL exports and specifically what are the Lessons Learned um, from the bis, FAA incident during the second quarter, do you think the views of your customers suppliers and other stakeholders on us ethane exports to China? Um, do you think those of you have structurally changed as a result of this event and if so, are you likely going to try to find alternate markets or end uses for incremental ethane exports from here?

Doug: Doug, do you want to take it? Yeah. So, you know, if you look at what happened to the BIS requiring an export license, effectively for that thing, I will say... We were largely unscathed at Enterprise, but I'll remind you that we have a lot of international exposure to other countries other than China. I call it Vietnam, Thailand, India, Europe, Mexico, Brazil. But if it was going to be sustained, I could see it presenting a challenge for ethane structurally here in the U.S. But what it has done and where it's been a problem is you've really compromised the U.S.

But if it was going to be sustained I could see it presenting a challenge for ethane structurally here in the U S.

What it has done and where it's been a problem if you've really compromise the U S brand for reliable supply and energy security. When you just cut off of counterparty like that in fact, I would tell you.

Doug. Do you want to take it? Yeah. So you know if you look at what happened with the bis requiring uh export license. Effectively for ethane I will say

Natalie: Natalie, what are you seeing? We are not hearing anything different than what we spoke to in our last earnings call. We actually did get a surprise from one of our producers who brought wells forward in 2026 in their production plan. There are a few production areas too in our portfolio where it's not declining as expected.

Had a non Chinese based company that we are in discussions with about.

Contracting ethane with and the announcements made a decision to contract naphtha, which is supply globally versus is coming to the U S to get to get ethane. So from that perspective, it's been disruptive but in the short term, we were able to manage through it with our diverse contract mix.

We were largely, um, unscathed at Enterprise, but I'll remind you that we have a lot of international exposure, um, to other countries. Other than China, uh, call it Vietnam Thailand, uh, India, Europe, Mexico, Brazil,

Tony: I'll just leave you with this. In Midland, this year we will have brought on 463 wells. Next year we are... We will we have 498 on the schedule. Well, that's super helpful.

Doug: brand for reliable supply and energy security when you just cut off a counterparty like that. In fact, I will tell you, we had a non-Chinese-based company that we were in discussions with about contracting ethane with, and they've now since made a decision to contract NAFTA, which is supplied globally, versus just coming to the U.S. to get ethane. So from that perspective, it's been disruptive, but in the short term, we were able to manage to do it with our diverse contractors.

Thank you and then within the Pep, Ken and refined products services segment.

What's your outlook for PVH and as well as what is your view for whether it be the second half or into 2026 about <unk> spreads base businesses can you touch a little bit on the incremental supply we've seen op team that will persist from here.

Unknown Executive: Thank you, Tony. You've had a really good record at your forecasting, so that carries some weight.

Unknown Executive: So thank you for the good answer. Thank you.

Um, but if it was going to be sustained, I could see it presenting a challenge for for Ethan. Um, structurally here in the US but what it, what it has done and where it's been a problem. Is you've really compromised, the US brand, um, for Reliable Supply and energy security when you just cut off a counterparty like that. In fact, I will tell you we had a non-chinese based company that we were in discussions with about, um, Contracting effing with. And they now since

Theresa Chen: Our next question comes from the line of Theresa Chen of Barclays. Please go ahead, Theresa. Good morning.

Yeah sure <unk>. So this is Chris.

Made a decision to contract mapped the, which is, uh, supplied globally versus is coming to the us to get to get that signed. So from that perspective, it's been disrupted, but in the short term, we're able to manage through it with our diverse contract, mix.

Unknown Executive: Thank you. And then within the PetCam and refined product services segment, what's your forward outlook for PDH?

Doug: I want to go back to the topic of NGL exports and specifically, what are the lessons learned from the BIS ethane incident during the second quarter? Do you think the views of your customers, suppliers and other stakeholders on US ethane exports to China, do you think those views have structurally changed as a result of this event? And if so, are you likely going to try to find alternate markets or end uses for incremental ethane exports from here?

As far as PD agents go.

Operating rates.

Proved quite a bit versus the.

First quarter.

Unknown Executive: As well as what is your view for whether the second half or into 2026 about the spread space businesses?

Being said we are still not.

Happy and we haven't met expectations about what are what are on stream time should be.

Chris: Can you touch a little bit on the incremental supply you've seen opting that will persist from here? Yes, sure, Theresa. This is Chris. As far as PDHs go... Operating rates have improved quite a bit versus the first quarter. That being said, we're still not happy and we haven't met our expectations about what our on-stream time should be.

As far as our beef and octane enhancement goes.

We've had really a record last three years of.

Thank you. And then within the PCM and refined product Services segment. Um, what's your afford outlook for pdh? Um, as well as you know, what is your, uh, view for whether it be the second half or into 2026 about these spread space businesses? Can you touch a little bit on the incremental Supply you see in octane of that will persist from here?

High margins.

As Jim touched on in my opening remarks, we've kind of returned to historic kind of margin. So there's still really good and there's still some of the best margins. We have in the company, but it's not what we have had historically not been said so far for the month of July.

Yeah, sure. Teresa. This is Chris. Um, on as far as PD agents go,

Doug: Doug, do you want to take it? Yeah, so, you know, if you look at what happened to the BIS requiring an export license effectively for FDane, I will say... We were largely unscathed at Enterprise, but I'll remind you that we have a lot of international exposure to other countries other than China. I call it Vietnam, Thailand, India, Europe, Mexico, Brazil. But if it was going to be sustained, I could see it presenting a challenge for ethane structurally here in the U.S. But what it has done and where it's been a problem is you've really compromised the U.S.

For operating rates is is uh improved quite a bit versus the first quarter. That being said, we're still not.

Unknown Executive: As far as our beef and octane enhancement goes... We've had really a record last three years of high margins. And as Jim touched on in the opening remarks, we've kind of returned to historic kind of margins. So they're still really good. I mean, it's still some of the best margins we have in the company. But it's not what we have had historically. That being said, you know, so far for the for the month of July, the we've seen margins improve just, you know, part of that probably being driving season. We still see the pressure from China, you know, historically MTBE was more of a regionally a regional market where occasionally you would see some cargoes coming from Europe or from Asia and occasionally we would send some cargoes to Europe or Asia but by and large it was regional.

We've seen margins improve just part of that probably been driving season.

Happy and we haven't met our expectations about what our what our on-stream time should be.

We still see the pressure from China historically.

Uh, as as far as our beefs and octane enhancement goes.

<unk> was more of a regionally.

Regional market, where occasionally you would see some cargoes coming.

From Europe or from Asia, and occasionally we would send some cargoes to Europe or Asia, but by and large it was it was regional.

Doug: brand for reliable supply and energy security when you just cut off a counterparty like that. In fact, I will tell you, we had a non-Chinese-based company that we were in discussions with about contracting ethane with. And they've now since made a decision to contract NAFTA, which is supplied globally, versus just coming to the U.S. to get ethane. So from that perspective, it's been disrupted, but in the short term, we were able to manage to do it with our diverse contractors.

That's changed with all the additional capacity coming on from China, as we started seeing that pressure and Thats. Some of the reason why we've seen some weakness.

We've had really a record last 3 years of uh of of high margins and is is Jim touched on. In the opening remarks, we've kind of returned to Historic kind of margin. So there's still really good. I mean, there's still some of the best margins we have in the company but it's not what we have had. Historically that being said, you know, so far for the for the month of July, the we've seen margins improve just

You know, part of that probably being driving season.

Thank you.

We still see the pressure from China, you know, historically.

Thank you.

Mtbe was more of a regionally.

Our next question comes from John Mackay with Goldman Sachs. Your line is open John.

Regional market where occasionally you would see some cargos coming.

Hey, good morning, everyone and thank you for the time.

Want to go back to the margin compression conversation I think the narrative around.

Unknown Executive: That's changed with all the additional capacity coming on from China and we've started seeing that pressure and that's some of the reason why we've seen. Thank you.

Unknown Executive: Thank you.

Theresa Chen: And then within the PetCam and Refined Products Services segment, what's your forward outlook for PDH? As well as, you know, what is your view for whether it be the second half or into 2026 about the spreadspace businesses? Can you touch a little bit on the incremental supply you see in opt-in that will persist from here?

The LPG exports have as clear I guess, if you could just comment where do you stand in that process.

From Europe, or from Asia. And occasionally, we would send some cargos to Europe or Asia but but by and large it was, it was Regional. That's that's changed with all the additional capacity coming on from China. And we we started seeing that pressure and that's some of the reason why we've seen some weakness.

For repricing down this LPG exports does that kind of.

Thank you.

Theyre now or is there maybe a little bit more to work through and then maybe any comment you can make on a related side for anywhere else in the portfolio, particularly the <unk>.

John Mackay: Our next question comes from John Mackay of Goldman Sachs.

Thank you.

John Mackay: Your line is open, John.

Unknown Executive: Hey, good morning, everyone. Thank you for the time. I want to go back to the margin compression conversation. I think that the narrative around the LPG exports hub is clear. I guess if you could just comment, you know, where do you stand in that process? for repricing down those LPG exports. Is that kind of in there now, or is there maybe a little bit more to work through? And then maybe any comment you can make on a related side for anywhere else in the portfolio, but particularly the Permian NGL pipes. Thanks.

Permian NGL pipes.

I'll take it and then you can take it.

Chris: Sure, Theresa, this is Chris. As far as PDHs go, Operating rates have improved quite a bit versus the first quarter. That being said, we're still not happy and we haven't met our expectations about what our on-stream time should be.

I think you heard Doug say, we're 85%, 90% contracted on LPG exports.

My next question comes from John my of Goldman Sachs, your line is open. John

At the end of the decade.

Hey, good morning everyone, thank you for the time. I want to go back to the margin compression conversation. I think that the narrative around the LPG experts have is clear, I guess if you could just comment, you know, where do you stand in that process?

We're going to be full.

Simple.

We will defend it for how we have to.

Chris: As far as our beef and octane enhancement goes... We've had really a record last three years of high margins. And as Jim touched on in the opening remarks, we've kind of returned to historic kind of margins. So they're still really good. I mean, still some of the best margins we have in the company. But it's not what we have had historically. That being said, you know, so far for the for the month of July, we've seen margins improve just part of that probably being driving season.

And Doug you got anything to add other than where downloads on April.

For repricing down, those LPG exports. Does that kind of in there now, or is there maybe a little bit more to to work through? And then maybe any comment you can make on a related side for anywhere else in the portfolio of particularly the, uh, puran NGL pipes.

Unknown Executive: I'll take it, and then Ted. I think you heard Tug say we're 85-90% contracted on LPG exports through the end of the decade. We're going to be full. You and some. and we'll defend it ever how we have to. and Doug, you got anything to add other than we're damn well going to be full? No, we're full. We are full. We're in a continued contract pool, but I'll just tell you that we're still executing contracts. So whatever we're going to lose on margin compression, we're going to make up by volume.

We're full.

Therefore, we're going to continue to contract pool, but I'll just tell you that we're still executing contracts or whatever going to lose on margin compression, we are going to make up that volume.

I, I'll take it in and talk, you take it.

um, I think you heard Ted say we're 85, 90% contracted don't LPG, Sports through the end of uh the decade

And then just anything you can add on the Permian NGL pipe side.

Uh, we're going to be full.

Here in simple.

Yeah. Jonathan This is Justin I would say generally on on TNF, we have.

And uh we'll defend it ever. How we have to

um,

Chris: We still see the pressure from China, you know, historically MTBE was more of a regionally at from Europe or from Asia and occasionally we would send some cargoes to Europe or Asia but but by and large it was it was regional that's that's changed with all the additional capacity coming on from China and we started seeing that pressure and that's some of the reason why we've Thank you.

We have very little re contracting.

Work through the balance of the decade.

At our core we still expect production to grow so so long as supply growth as it's happening we don't expect to re contracting to play a role because we're going to continue to see volumes increase.

And talk. You got anything to add other than would damn world. Going to be full know. We're we're full. Um, we are full, we're going to continue to contract pool, but I'll just tell you that we're still executing contracts. So, whatever we're going to lose on margin compression. We're going to make up by going.

Justin Kleiderer: And then just anything you can add on the Permian and GL pipe set. That's John, this is Justin, I would say generally on on TNF, we have we have very little recontracting to work through to the balance of the decade. You know, at our core, we still expect production to grow. So, so long as supply growth is is happening, we don't expect recontracting to play a role because we're going to continue to see volume change. All right. That's clear, guys.

Yes.

Alright, let's clear guys I appreciate it I'll leave it there. Thank you.

And then just anything you can add on the uh, permanent jail pipe said.

Thank you.

And the next club Michael Blum of Wells.

As far as.

Unknown Executive: Thank you.

Yeah, John, this is Justin, I would say generally on on tnf, we have we have very little recontracting um, to work through to the balance of the decade.

John Mackay: Our next question comes from John Mackay of Goldman Sachs. Your line is open, John. Hey, good morning, everyone. Thank you for the time. I want to go back to the margin compression conversation. I think that the narrative around the LPG exports hub is clear. I guess if you could just comment, you know, where do you stand in that process? for repricing down those LPG exports. Is that kind of in there now or is there maybe a little bit more to work through?

Michael Please make sure your line is immediate and a speakerphone lift your handset.

Can you hear me, yes, Sir please proceed.

Great. Thanks, and good morning, everyone, I'm reading, a little bit about potentially an uptick in activity in the San Juan Basin I'm, just wondering if theres much to that are you seeing anything different from your producer customers up there and does that could that have a meaningful impact for you guys.

Um, you know, at our core, we still expect production to grow. So, so long as Supply growth is, is happening. We've done expect recontracting to play a role because we're going to continue to see volume increase.

Unknown Executive: I appreciate it.

Unknown Executive: I'll leave it there.

All right, that's clear guys. I appreciate it. I'll leave it there. Thank you.

Thank you.

Michael Blum: My next call is Michael Blum of Wells Fargo.

My next Club. Michael Blum. Oh well

well, as far

Definitely.

John Mackay: And then maybe any comment you can make on a related side for anywhere else in the portfolio, but particularly the Permian NGL pipes. Thanks.

Michael Blum: Michael, please make sure your line is immediate.

Not necessarily where.

Michael Blum: And if not, speak your phone, lift your handset. Hey, can you hear me? Yes, sir.

We are located I guess uptick in activity I don't know if youre talking about the recent acquisition of <unk>.

Michael. Please make sure your line is immediate and I speak your phone, Lift Your Hands Up.

Michael Blum: Please proceed. Great. Thanks.

Unknown Executive: Good morning, everyone. I've been reading a little bit about potentially an uptick in activity in the San Juan Basin. I'm just wondering if there's much to that. Are you seeing anything different from your producer customers up there? And could that have a meaningful impact for you guys? I'm not necessarily where we are located. I guess the uptick in activity, I don't know if you're talking about the recent acquisition of a player there. But as far as we can tell, our San Juan's pretty stable, flat. Slats are slightly, really small.

Hey, can you hear me? Yes sir, please proceed.

Jim Teague: I'll take it and then tug. I think you heard Tug say we're 85-90% contracted on LPG exports through the end of the decade. We're going to be full. and so on. and we'll defend it ever how we have to.

A player there, but as far as we can tell our San Juan is pretty stable.

Flat.

Flat to slightly really small groups.

Okay, Great I appreciate that and then just maybe just a follow up for Tony.

Great. Thanks. Good morning everyone. Um, been reading a little bit about potentially an uptick in, uh, activity in the San Juan Basin, and I'm just wondering if there's much to that, are you seeing anything different from your producer, customers up there? And there's could that have a meaningful impact for you guys.

All the all the commentary.

Is it fair to say if I think back to your I think it was like April 1st.

Tug: and Doug, you got anything to add other than we're damn well going to be full? No, we're full. We are full. We're in the continued contract pool, but I'll just tell you that we're still executing contracts. So whatever we're going to lose on margin compression, we're going to make up by volume.

<unk> production forecast that if you had to if you had to tweak that today that would be pretty minor tweaks to what what you were seeing back in April.

Michael That's a great question and I really appreciate it.

Idli um, not necessarily where we located, we are located. I guess, the uptick in activity, I don't know if we're talking about the recent acquisition of, um, a player there. But as far as we can tell, our son wants pretty stable.

Flat to.

Yeah.

Flat to slight, really small groups.

There if we had to tweak it today given the given the profitability of the of the Permian producer dose tweaks would be small so from a black oil standpoint, we were calling from 25 through 27, I think we were calling for 800000 barrels of growth could that be seven yes, Sir.

Justin: And then just anything you can add on the Permian and geopipe side. That's John, this is Justin, I would say generally on on TNF, we have we have very little recontracting to work through to the balance of the decade. You know, at our core, we still expect production to grow. So, so long as supply growth is is happening, we don't expect recontracting to play a role because we're going to continue to see volume change. All right. That's clear, guys. I appreciate it. I'll leave it there.

Unknown Executive: And then just maybe just to follow up for Tony, I appreciate all the commentary.

Unknown Executive: Is it fair to say, if I think back to your, I think it was like April 1st, updated production forecast that if you had to tweak that today, there would be pretty minor tweaks to what you were seeing back in April? Michael, that's a great question. I really appreciate it. Yeah. There if we had to tweak it today, given the given the profitability of the of the Permian producer, those tweaks would be small. So from a Blackwell standpoint, we were calling from 25 through 27. I think we were calling for 800,000 barrels of growth. Could that be seven?

Good.

If prices did go through a low spot if we if we had them.

Okay, great, appreciate that. And then just maybe just follow up for Tony. Um, appreciate all the, all the commentary is it fair to say? If I think back to your, I think it was like April 1st, uh, updated production, forecasts that if you had to, if you had to tweak that today, there would be pretty minor tweaks to what? What you were seeing back in April, I think.

All in prices when we go into contango and then waiting for people to start storing could that be a growth of six.

Well, that's a great question. I would really appreciate it. Um,

yeah.

I guess on the outside it said look we think we grew 350 last year or so.

Unknown Executive: Thank you.

Is it wind producers talk about their guidance as we all listen to their calls come in Michael and when they say, they're going to stick to their guidance and their guidance was 3% to 5% growth in the Permian as a general rule, it's not it's not hard math, it's yeah.

Michael Blum: and the next quote, Michael Blum of Welles Fire. Michael, please make sure your line is immediate, and if not, speak your phone, lift your handset. Hey, can you hear me? Yes, sir. Please proceed. Great, thanks.

Unknown Executive: Yes, certainly could. If prices did go through a low spot, if we if we had a fall in prices, and we go into Contango, and then you know, waiting for people to start storing, could that be a growth of six? I guess on the outside, it could look we think we grew 350 last year. So when producers talk about their guidance, as we all listen to their calls come in, Michael, and they say they're going to stick to their guidance, and their guidance was three to 5% growth in the Permian as a general rule. It's not it's not hard math.

I think we are on target Michael I think we are on target.

Unknown Executive: Good morning, everyone. I've been reading a little bit about potentially an uptick in activity in the San Juan Basin. I'm just wondering if there's much to that. Are you seeing anything different from your producer customers up there? And could that have a meaningful impact for you guys? Not necessarily where we are located. I guess the uptick in activity, I don't know if you're talking about the recent acquisition of a player there. But as far as we can tell, our San Juan's pretty stable, flat. Collapsed flight, really small.

And we've said before that liquids forecast is.

There, if we had to tweak it today, given the given the profitability of the of the permanent producer those tweaks would be small. So from a black wall standpoint, we were calling for 25 through 27. I think we were calling for 800,000 barrels of growth. Could that be 7? Yeah, certainly good. Uh, if if prices did go through a, a low spot if we if we had a a falling prices and we go into contango and then, you know, waiting for people to start storing, could that be a growth of 6?

He is on target to meet our forecast or producers continue to drill gas here. So we feel great about our with this forecast also and then Natalie's confirmed in Justin's confirm Zach just confirm that's what we're seeing in the business.

Yeah, I I guess on the outside, it could look. We think we grew 350 last year. So, um, it it it when producers talk about

Thank you.

Unknown Executive: It's it. I think we're on target, Michael. I think we're on target now. And we've said before that liquids forecast is, is on target to meet our forecaster, you know, producers continue to drill gas here. So we feel great about our liquids forecast also. And then you know, Natalie's confirmed and Justin's confirmed. Zach is confirmed. That's what we're seeing in the business.

We're not we're just not a sky is falling scenario.

Look the Permian producer is extremely profitable, especially in when you look at what's happening to natural gas basis out there.

Unknown Executive: Okay, great, I appreciate that.

Thank you.

Tony: And then just maybe just to follow up for Tony, appreciate all the commentary.

Our next question comes from the line of Manav Gupta of UBS. Your line is open that manav.

Michael Blum: Is it fair to say, if I think back to your, I think it was like April 1st, updated production forecast, that if you had to tweak that today, there would be pretty minor tweaks to what you were seeing back. Michael, that's a great question. I really appreciate it. Yeah. There if we had to tweak it today, given the given the profitability of the of the Permian producer, those tweaks would be small. So from a Blackwell standpoint, we were calling from 25 through 27. I think we were calling for 800,000 barrels of growth. Could that be seven?

Unknown Executive: Thank you.

Unknown Executive: We're not we're not as sky is falling scenario. Look, the the Permian producer is extremely profitable, especially when you look at what's happening to natural gas basis. Thank you.

Good morning, guys.

Sort of announcements on potential LNG projects and there is a.

Believe that Haynesville shale could be supplying some of them can you talk about your leverage to the Haynesville shale, maybe talk about the Acadian gas system understood. Thank you.

Thank you.

We're not, we're not a sky, is falling scenario. Look the the Parian producer is extremely profitable, especially when you look at what's happened to Natural Gas bases out there.

Great.

Sure.

Manav Gupta: Our next question comes from the line of Manav Gupta of UBS.

So we are getting gas system, we actually went up for instance, even on <unk>.

Manav Gupta: Your line is open, Manav.

Contract a rig contract re contracting.

Unknown Executive: Good morning, guys. There are a lot of announcements on potential LNG projects, and there is a belief that Haynesville Shale could be supplying some of them. Can you talk about your leverage to the Haynesville Shale? Maybe talk about the Acadian gas system a little? Thank you.

Thank you. Uh, next question comes from the line of manav, Gupta of UBS. Your line is open at manav.

Efforts on that pipeline actually timing is everything came up at the right time so.

Rates were going to achieve on that pipe.

Tony: Yes, certainly could. If prices did go through a low spot, if we if we had a fall in prices, and we go into Contango, and then you know, waiting for people to start storing, could that be a growth of six? I guess on the outside, it could look we think we grew 350 last year. So when producers talk about their guidance, as we all listen to their calls come in, Michael, and they say they're going to stick to their guidance, and their guidance was three to 5% growth in the Permian as a general rule. It's not it's not hard math.

This historical as two different times.

What we've seen before so.

A little bit more increase in activity, obviously in the Haynesville with.

Good morning, guys. Um, there is a lot of announcements on potential LNG projects and uh, there's a belief that hens will share could be supplying. Some of them. Uh, can you talk about your leverage to the hensville shield? Maybe talk about the Acadian gas system, a little, thank you.

Price of gas.

Unknown Executive: So our Canadian gas system, we actually went out for open season on, our recontracting efforts on that pipeline, actually timing is everything and came up at the right time. So the rates we're going to achieve on that pipe relative to historical is two to three times what we've seen before. So a little bit more increase in activity, obviously, in the Haynesville with the price of gas, and we'll reap benefits.

We?

We will benefit from that.

Okay, and then quickly since your Capex is dropping can you talk about the credit DDS you could possibly look at four possible bolt on opportunities as a company.

Our Canadian gas system? We actually went out for open season on. Um, are we contract? Are we contract recontracting?

Yes.

Thank you.

When we came in and sort of getting future guidance of two to two $5 billion, that's really taken into consideration some.

Tony: It's it. I think we're on target, Michael. I think we're on target. And we've said before that liquids forecast is, is on target to meet our forecaster, you know, producers continue to drill gas here. So we feel great about our liquids forecast also. And then you know, Natalie's confirmed and confirmed. Zach is confirmed. That's what we're seeing in the business.

Um efforts on that pipeline actually. Timing is everything and and came up with the right time. So the rates we're going to achieve on that pipe uh, relative to historical as 2 to 3 times. Um, what we've seen before. So, um, a little bit more increase in activity, obviously, in the hanesville with the with gap price of gas,

Granted growth that we could see in our system in the coming years, whether it's additional processing plants in the Permian or.

Um, and we'll re benefits from that.

Unknown Executive: Okay, and quickly since your CapEx is dropping, can you talk about the criteria you could possibly look at for possible bolt-on opportunities as a company? Yeah, I think, you know, When we came in and sort of gave future guidance of $2 to $2.5 billion, that's really taken into consideration some organic growth that we could see in our system in the coming years, whether it's additional processing plants in the Permian or something more on the distribution side of the downstream part of our system.

Something more on the distribution side of the downstream part of our system.

Okay and uh quickly since your capex is dropping um can you talk about the criteria? You could possibly look at for possible. Bolton opportunities as a company.

Thank you.

Unknown Executive: Thank you.

Yeah, no. But I I think you know,

Unknown Executive: We're not we're not a sky is falling scenario. Look, the the Permian producer is extremely profitable, especially when you look at what's happened to natural gas basis. Thank you.

Thank you.

Our next question.

From the line of Keith Stanley of Wolfe Research. Please go ahead Keith.

Hi, good morning.

To clarify some of the earlier questions around LPG exports. So your 85% to 90% contracted through the end of the decade.

Given that is it fair to assume the more meaningful re contracting headwinds on margins are now over with at this point.

Manav Gupta: Our next question comes from the line of Manav Gupta of UBS. Your line is open, Manav. Good morning, guys. There are a lot of announcements on potential LNG projects, and there is a belief that Haynesville Shale could be supplying some of them. Can you talk about your leverage to the Haynesville Shale? Maybe talk about the Acadian gas system a little? Thank you. Thank you for watching. Bye-bye.

The, when we came in and sort of gave future guidance of 2 to 2 and a half billion dollars, that's really taken into consideration some, um, organic growth that we could see in our system in, in the coming years. Uh, whether it's additional processing plants in the in the Permian or um, something more on on the distribution side of uh, the downstream part of our system.

Thank you.

This is to tell you that is correct.

Keith Stanley: Our next question comes from the line of Keith Stanley of Wolf Research.

Thank you.

Okay great.

And then had one on niches river. So the major projects under construction bucket went down $2 billion from seven 6% to five six.

Keith Stanley: Please go ahead, Keith. Hi, good morning. want to clarify some of the earlier questions around LPG exports. So you're 85 to 90% contracted through the end of the decade. Given that, is it fair to assume the more meaningful recontracting headwinds on margins are now over with at this point? This is Tug, that is correct.

Our next question comes from the line of Keith Stanley of wolf research. Please go ahead. Keith

Hi, good morning.

It looks like Thats, two processing plants and phase one of the export facility.

Unknown Executive: So our Canadian gas system, we actually went out for open season on our recontracting efforts on that pipeline. Actually, timing is everything and came up at the right time. So the rates we're going to achieve on that pipe relative to historical is two to three times what we've seen before. So a little bit more increase in activity, obviously, in the Haynesville with that price of gas, and we'll reap benefits.

Want to clarify some of the earlier, questions around LPG exports, so your 85 to 90% contracted through the end of the decade.

That implies the capital cost could be maybe $1 billion or more for phase one of Nature's River.

Thinking about that right just as a ballpark.

Given that can is it fair to assume the more meaningful recontracting headwinds on on margins are now over with at this point?

Unknown Executive: Okay, great.

Unknown Executive: And then had one on Natchez River. So the major projects under construction bucket went down $2 billion dollars from 7.6 to 5.6. It looks like that's two processing plants and phase one of the export facility. That implies the capital cost could be maybe a billion dollars or more for phase one of Natchez River. Am I thinking about that right, just as a ballpark? Yeah, that's on the ballpark. Okay, would phase two be similar to that? Not that much.

This is Tug, that is correct.

Yes.

That's in the ballpark.

Okay, and with phase two be similar to that.

Not that much.

Okay. Thank you.

Okay great. Um and then had 1 on uh, nature's river. So the major projects under construction bucket went down, 2 billion dollars from 7.6 to 5.6.

Thank you.

Our next question.

Comes from the line of Brandon <unk> of <unk>.

Scotia Scotiabank.

Unknown Executive: Okay, and quickly since your capex is dropping, can you talk about the criteria you could possibly look at for possible bolt-on opportunities as a company? Yeah, I think, you know, When we came in and sort of gave future guidance of $2 to $2.5 billion, that's really taken into consideration some organic growth that we could see in our system in the coming years, whether it's additional processing plants in the Permian or something more on the distribution side of the downstream part of our system. Thank you.

Brandon Your line is open.

Hi, good morning, Thanks for taking the questions I'd like to go back to capital allocation, if we could and maybe ask on the inorganic side in a different way.

Uh, it looks like that's 2 processes and Phase 1 of of the export facility. You know, that implies the capital cost could be maybe a billion dollars or more for Phase 1 of nature's river. Am I thinking about that, right? Uh, just as a ballpark.

Yeah, so that's that's on the ballpark.

Okay. And with Phase 2 be similar to that.

Just given all of the cash that you guys have and you have your priorities outlined pretty clearly would you consider maybe increasing.

Not that much.

Okay.

Thank you.

Thank you.

Activity in equity investments potentially into areas, where you currently do not participate or operate any assets, maybe like an LNG or just how should we think about all of the cash Gen moving forward.

Brandon Bingham: comes from the line of Brandon Bingham of Scotia, Scotia Bank. Brandon, your line is open. Hi, good morning. Thanks for taking the questions.

Our next question.

Comes from the line of Brandon Bingham of Scotia Scotia Bank.

Brandon, your line is open.

Hi, good morning. Thanks for

Brandon Bingham: I'd like to go back to capital allocation, if we could, and maybe ask on the inorganic side in a different way. Just given all of the cash that you guys have, and you have your priorities outlined pretty clearly, would you consider maybe increasing activity and equity investments, potentially into areas where you currently do not participate or operate any assets, maybe like an LNG? Or just how should we think about all of the cash gen moving forward? I imagine Randy's going to try to give it to you guys. Yeah, Brandon, I don't see us and I'm trying to read where you're going with your question is, are you asking would we make Passive Equity Investments in LNG Facilities Right, like taking taking a non upstake or an equity interest or just another way to deploy capital that maybe hasn't been discussed.

I imagine Randy is going to try to give it to you guys.

let me go back to

Yeah, Brian I don't see us.

Trying to read for you going with your question is are you asking would we make.

Keith Stanley: Our next question comes from the line of Keith Stanley of Wolf Research. Please go ahead, Keith. Hi, good morning.

Passive equity investments in LNG facilities.

Right like taken taken a non op stake or an equity interest just another way to deploy capital that maybe hasnt been discussed.

Tug: want to clarify some of the earlier questions around LPG exports. So you're 85 to 90% contracted through the end of the decade. Given that, is it fair to assume the more meaningful recontracting headwinds on margins are now over with at this point? This is Tug, that is correct. Okay, great.

The capital allocation if we could and maybe ask on the inorganic side and a different way, uh, get just given all of the cash in that you guys have and and you have your priorities outlined pretty clearly. Would you consider maybe increasing activity and Equity Investments, potentially into areas where you currently do not participate, or, or operate any assets? Maybe like an LG or just, how should we think about all of the cash in moving forward?

Yes.

Yeah.

I imagine Randy is going to try to give it to you guys.

Fair enough.

And then maybe just on 2026 growth spend could you remind us how much is currently committed and then where do you see the most pressing need to deploy capital or maybe asked another way where is the greatest opportunity across your operations right now.

yeah, Brandon I don't see us and

Unknown Executive: And then had one on Natchez River. So the major projects under construction bucket went down $2 billion dollars from 7.6 to 5.6. It looks like that's two processing plants in phase one of the export facility. That implies the capital cost could be maybe a billion dollars or more for phase one of Natchez River. Am I thinking about that right, just as a ballpark? Yeah, that's on the ballpark. Okay, would phase two be similar to that? Not that much. Okay, thank you. Thank you.

I'm I'm trying to read where you're going with. Your question is, are you asking would we make

Passive Equity investments in LNG facilities.

Yes, I think when we look at that in 2026 that range of two to two $5 billion. What's committed is approximately $2 2 billion.

Brandon Bingham: No. Yeah. Fair enough.

Right? Like taking taking taking a non-op stake or an equity interest or just another way to deploy Capital that maybe hasn't been discussed.

No. Yeah.

Unknown Executive: And then maybe just on 2026 growth spend, could you remind us how much is currently committed? And then where do you see the most pressing need to deploy capital? Or maybe ask another way, where's the greatest opportunity across your operations right now? Yeah, I think, you know, when we look at that, in 2026, that range of two to two and a half billion dollars, what's committed is approximately 2.2 billion. And where we go, I really like what we've done in terms of our ethylene. If I look back a few years, we didn't have anything in ethylene.

And where we go I really like what we've done in terms of our ethylene.

Fair enough.

Helane.

A few years, we didn't have anything in ethylene now we've got a pretty robust storage distribution and export system.

And.

Could you remind us how much is currently committed? And then, where do you see the most pressing need to deploy capital or maybe ask another way whereas the greatest opportunity across your operations right now?

Those things are cents per pound not cents per gallon.

Brandon Bingham: Our next question. comes from the line of Brandon Bingham of Scotiabank. Brandon, your line is open. Hi, good morning. Thanks for taking the questions.

Great. Thanks.

Yeah.

Thank you.

Yeah, I think, you know, when we look at that in 2026 that range of 2 to 2 and a half billion dollars. What's committed is approximately 2.2 billion.

Our next question.

It comes from the line of Jason gave woman of TV Cowen. Please go ahead Jason.

Randy Fowler: I'd like to go back to capital allocation, if we could, and maybe ask on the inorganic side in a different way. Just given all of the cash that you guys have, and you have your priorities outlined pretty clearly, would you consider maybe increasing activity and equity investments, potentially into areas where you currently do not participate or operate any assets, maybe like an LNG, or just how should we think about all of the cash gen moving forward? I imagine Randy's going to try to give it to you guys. Yeah, Brandon, I don't see us and I'm trying to read where you're going with your question is, are you asking would we make Passive Equity Investments in LNG Facilities Right, like taking taking a non upstake or an equity interest or just another way to deploy capital that maybe hasn't been discussed.

Unknown Executive: Now we've got a pretty robust storage, distribution, and export system. Those fees are cents per pound, not cents per gallon.

Hey, Thanks. Good morning, Thanks for taking my questions I'm afraid I'm going to ask another one on LPG exports and trying to understand it more from a strategic standpoint.

And where do we go? I really like what we've done in terms of our, uh, ethylene. If I look back a few years, we didn't have anything in that lane.

Now, we've got a pretty robust storage distribution and Export system and

Given the amount of.

Those fees are since per pound not since per gallon.

<unk> build out that the industry is pursuing on LPG exports have your upstream customers kind of told you that.

Unknown Executive: Great, thanks.

Great, thanks.

Thank you.

Jason Gabelman: comes from the line of Jason Gabelman of TD Cohen.

Our next question.

You need to more or less have that egress to compete for additional volumes from them. So as this LPG export build kind of driven by what the customer needs and to keep you competitive in contracting with those customers.

Jason Gabelman: Please go ahead, Jason. Hey, thanks, morning. Thanks for taking my questions.

Comes from the line of Jason. Gableman of TD Cohen. Please go ahead. Jason

Tug: I'm afraid I'm going to ask another one on LPG exports and trying to understand it more from a strategic standpoint, given the amount of build out that the industry is pursuing on LPG exports. Have your upstream customers kind of told you that you need to more or less have that egress to compete for additional volumes from them? So is this LPG export build kind of driven by what the customer needs and to keep you competitive in contracting with those customers?

I can't this is Doug I can't speak for what our competitors are doing relative to their capex or how much it costs them to build these greenfield facilities.

I can just tell you.

The success, we've had on contracting with our brownfield economics.

It's there.

Great, thanks. Good morning. Thanks for taking my questions. Uh, I'm afraid I'm going to ask another 1 on LPG exports and trying to understand it more from a strategic standpoint, uh, given the amount of, of, of build out that the industry is pursuing on LPG exports. Have your option, customers kind of told you that you, you you need to more or less. Have that new grad.

Brandon Bingham: You know, yeah. Fair enough.

You have to remind yourself as well the enterprise Mont Belvieu is the pricing point for call. It over 95% of total NGL production in United States and that's another competitive advantage we have in.

Randy Fowler: And then maybe just on 2026 growth spend, could you remind us how much is currently committed? And then where do you see the most pressing need to deploy capital? Or maybe ask another way, where's the greatest opportunity across your operations right now? Yeah, I think, you know, when we look at that in 2026, that range of two to two and a half billion dollars, what's committed is approximately 2.2 billion. And where we go, I really like what we've done in terms of our ethylene. If I look back a few years, we didn't have anything in ethylene.

Tug: I can't, this is Tug, I can't speak for what our competitors are doing relative their CapEx or how much it costs them to build these greenfield facilities. I can just tell you the success we've had on contracting with our brownfield economics. It's there. It's, you know, you have to remind yourself as well that Enterprise Mont Belvieu is a pricing point for call it over 95% of total NGL production in the United States. That's another competitive advantage we have and our customers are there to continue to take the LPG exports from our facility at a competitive fee.

To compete for additional volumes from them. So is this LPG, export build, kind of driven by what the customer needs and and to keep you competitive in in Contracting with those customers.

Our customers continue to take the LPG exports from our facility at a competitive fee.

I think it's worth noting that we've been dealing in the international market since 1983, when we put in an important facility and since 1999, when we built our export facility.

Created a lot of strong relationships and we've performed.

So.

I don't think I think I think we've got a rather sticky customer base.

Brandon Bingham: Now we've got a pretty robust storage, distribution, and export system. Those fees are cents per pound, not cents per gallon. Great, thanks.

To what we've been able to.

Tug: And I think it's worth noting that we've been dealing in the international market since 1983 when we put in an import facility. 1999 when we built our export. created a lot of strong relationships and we've performed. So, I think we've got a rather sticky customer base. add to what we've been able to do in the past.

I can't. This is Tug, I can't speak for what our competitors are doing relative to their capex or how much it costs them to build these Green Field facilities. I can just tell you um, the success we've had on Contracting with our Brownfield economics. Um, it's there. Um, it's, you know, you have 3 minor self as well, that Enterprise Mont Belle is the pricing point for call it over. 95% of total NGL production in the United States. That's another competitive Advantage we have and um, our customers are to continue to take to help each experts from our facility at a competency.

To do in the past.

Okay.

And my follow up is.

I I I think it's worth noting that we've been dealing in the international market since 1983.

Unfortunately, a topic that has also been already asked how much is capital allocation and I.

Unknown Executive: Thank you.

Jason Gabelman: Our next question. comes from the line of Jason Gabelman of TD Cohen. Please go ahead, Jason. Hey, thanks, morning. Thanks for taking my questions.

when we put in an import facility and since 1999, when we built our export facility,

I guess my question is.

The mid stream sector broadly has had multiple expansion given all of the growth opportunities that.

We've created a lot of strong relationships, and we've performed.

Jason Gabelman: I'm afraid I'm going to ask another one on LPG exports, and trying to understand it more from a strategic standpoint, given the amount of build out that the industry is pursuing on LPG exports, have your upstream customers kind of told you that you need to more or less have that egress to compete for additional volumes from them? So is this LPG export build kind of driven by what the customer needs and to keep you competitive in contracting with those customers?

<unk> been pursuing over the past couple of years.

So, I don't think I, I think, uh, I think we've got a rather sticky customer base.

And as you think about capital allocation moving forward how important is it to continue to have a robust.

Tied to what we've been able to to uh, do in the past.

Unknown Executive: And my follow-up is, unfortunately, a topic that has also been already asked on, which is capital allocation. And I guess the question is, you know, the midstream sector broadly has had multiple expansion given all of the growth opportunities that they've been pursuing over the past couple of years. And as you think about capital allocation moving forward, how important is it to continue to have a robust growth backlog that really competes with other companies in the industry to continue to attract equity investment? And how much does that kind of frame your strategic decisions on capital allocation moving forward?

Growth backlog that really competes with other companies in the industry to continue to attract equity investment and how much of it.

Does that kind of frame your strategic decisions on capital allocation moving forward.

Yes, let me.

I think first we feel like we're in a good place the basins that we operate in.

Tug: I can't, this is Tug, I can't speak for what our competitors are doing relative to their CapEx or how much it costs them to build these greenfield facilities. I can just tell you the success we've had on contracting with our brownfield economics. It's there. You know, you have to remind yourself as well that Enterprise Mont Belvieu is the pricing point for, call it, over 95% of total MGL production in the United States. That's another competitive advantage we have. And our customers are there to continue to take the LPG exports from our facility at a competitive fee.

Focus on the Permian focus on the Haynesville.

The sectors that we support the downstream sector pet Cam was a little soft right now but.

They will cycle through this.

So we like our footprint, we like where we are we think will have.

Okay, and my follow-up is uh unfortunately a topic that is also been already asked on which is capital allocation. And I, I guess the question is, you know, the the Midstream sector broadly has had multiple expansion. Given all of the growth opportunities that, um, they've been pursuing over the past couple of years and as you think about Capital allocation moving forward, how important is it to continue to have a robust. Um, growth backlog that really competes with other um companies in the industry to continue to attract um, Equity investment. And how much of does that kind of frame? Your strategic decisions on Capital allocation moving forward.

Bolt on opportunities.

Unknown Executive: Yeah, let me. I think, first, we feel like we're in a good place. The basins that we operate in, you know, focus on the Permian, focus on the Hainesville. You know, the sectors that we support, the downstream sectors, Pet Kim's a little soft right now, but again, they'll cycle through this. So we like our footprint. We like where we are. We think we'll have bolt-on opportunities from an organic standpoint and an inorganic standpoint as opportunities arise. When you come back in, especially look over the last 2024 and 2025, you know, our CapEx did step up.

From an organic standpoint, Guyana angle, an organic standpoint.

You're going to take it? Yeah, let me um

Opportunities arrives when you come back and especially over the last.

Tug: I think it's worth noting that we've been dealing in the international market since 1983 when we put in an import facility. 1999 when we built our export. created a lot of strong relationships and we've performed. So, I think we've got a rather sticky customer base. add to what we've been able to do in the past. Okay.

2024 and 2025.

Our Capex did step up a lot of that was a step change.

I think first, we feel like we're in a, in a good place, the basins that we operate in, you know, focus on the Parian focus on the hanesville. Um,

In capacity to be able to come in and be able to support the growth of our E&P customers coming out of the Permian. So I think we're in good shape. There I think we've got some low cost expansions that we can do on some of those assets that are coming into service and we're.

Here for the next couple of years anyway at that too.

$2 5 billion.

Our job is to keep our system reliable keep it up and we should throw off a lot of cash flow from those businesses and where we see opportunities to deploy it we will but honestly I think discretionary free cash flow is really about the tiger.

Unknown Executive: A lot of that was a step change in capacity to be able to come in and be able to support the growth of our E&P customers coming out of the Permian. So I think we're in good shape there. I think we've got some low-cost expansions that we can do on some of those assets that are coming into service. And we're, you know, here for the next couple of years anyway at that $2.5 billion. You know, our job is to keep our system reliable, keep it up, and we should throw off a lot of cash flow from those businesses.

Randy Fowler: And my follow-up is, unfortunately, a topic that has also been already asked on, which is capital allocation. And I guess the question is, you know, the midstream sector broadly has had multiple expansion given all of the growth opportunities that they've been pursuing over the past couple of years. And as you think about capital allocation moving forward, how important is it to continue to have a robust growth backlog that really competes with other companies in the industry to continue to attract equity investment?

<unk> in 2026, 2027, and that will give us an opportunity to come and return more capital to our investors.

Okay understood. Thanks for the answers.

Thank you I would now like to turn the conference back to only be straight for closing remarks.

Thank you to our participants for joining us today that concludes our remarks have a good day.

Unknown Executive: And when we see opportunities to deploy it, we will. But honestly, I think discretionary free cash flow is really about to take a step up in 2026, 2027, and that'll give us an opportunity to come and return more capital to our investors. Okay, understood.

And this concludes today's conference call. Thank you for participating you may now disconnect.

Randy Fowler: And how much does that kind of frame your strategic decisions on capital allocation moving forward? Yeah, let me. I think, first, we feel like we're in a good place. The basins that we operate in, you know, focus on the Permian, focus on the Hainesville. You know, the sectors that we support, the downstream sectors, Pet Kim's a little soft right now. But again, they'll cycle through this. So we like our footprint. We like where we are. We think we'll have bolt-on opportunities from an organic standpoint and an inorganic standpoint as opportunities arise. When you come back in, especially look over the last 2024 and 2025, you know, our CapEx did step up.

On some of those assets that are coming into service and uh, we're you know, here for the next couple of years. Anyway, at that 2 2 and a half billion, you know, our job is to keep our system reliable, keep it up and we we should throw off a lot of cash flow, uh, from those businesses and where we see opportunities to deploy it, we will. But honestly, I think discretionary free cash flow is really about to take a, a step up in in 2026 2027 and that'll give us an opportunity to come and return more Capital to, uh, to our investors.

Okay, understood. Thanks for the answers.

Libby Strait: I would now like to turn the conference back to Libby Strait for closing remarks.

Libby Strait: Thank you to our participants for joining us today.

Thank you. I would now like to turn the conference back to let me be straight for closing remarks madam.

Libby Strait: That concludes our remarks.

Libby Strait: Have a good day.

Unknown Executive: This concludes today's conference call.

Thank you to our participants for joining us today that concludes our remarks have a good day.

Unknown Executive: You may now disconnect.

This concludes today's conference call, thank you for participating. You may now disconnect

Randy Fowler: A lot of that was a step change in capacity to be able to come in and be able to support the growth of our E&P customers coming out of the Permian. So I think we're in good shape there. I think we've got some low-cost expansions that we can do on some of those assets that are coming into service. And we're, you know, here for the next couple of years anyway at that $2.5 billion. You know, our job is to keep our system reliable, keep it up, and we should throw off a lot of cash flow from those businesses.

Randy Fowler: And where we see opportunities to deploy it, we will.

Unknown Executive: But honestly, I think discretionary cash flow is really about to take a step up in 2026, 2027, and that'll give us an opportunity to come and return more capital to our investors. Okay, understood. Thanks for the answers.

Libby Strait: Thank you.

Unknown Executive: I would now like to turn the conference back to Libby Strait for closing remarks. Thank you to our participants for joining us today. That concludes our remarks. Have a good day. This concludes today's conference call. Thank you for participating. You may now disconnect.