Plains All American Pipeline, L.P.

We remain focused on disciplined investments and our outlook is summarized on slide 10. This is consistent with our May guidance and we do not anticipate any meaningful changes in our capital program for the balance of the year. I also want to share a few comments on how inflation impacts our business. Generally speaking, our inflation impacts are more moderate than some of the other energy sectors. Our capital program is modest and we have proactively managed some costs through earlier purchases of materials. As expected, fuel and energy prices are higher as a result of the higher commodity prices, and we are seeing increased pricing on equipment, materials, and services, which we are mitigating through strategic sourcing, utilizing bulk orders, and rebidding. All of this being said, we continue to expect annual escalators to offset expenses and provide a modest net benefit. On capital allocation, our framework remains consistent. We are generating meaningful free cash flow and increasing the allocation to equity holders while reinforcing balance sheet strength and flexibility. Year to date, we have repurchased approximately $75 million of common units out of the up to $100 million or so we earmarked for 2022. Longer term, we will continue to be opportunistic with repurchases as we monitor our business outlook, leverage, equity valuation, and yield, as well as discipline future capital investment opportunities. A summary of our current financial profile is located on slide 11. With that, I will turn the call back over to Willie.

Thank you, Al. Today's results reflect another solid quarter of performance and execution. Fundamentals remain constructive, and our asset base and business continue to perform well in the higher commodity price environment. capturing incremental growth via the operating leverage within our system. Looking forward, we continue to build momentum into 2023, and Plains is very well positioned to generate meaningful cash flow to the benefit of our investors. Over the last few years, we've made solid progress on optimizing our assets, completing our multi-year capital build-out, forming numerous strategic JVs, including the Plains Oryx Permian JV, and continuing to improve our safety, environmental and sustainability performance. Additionally, as we've detailed in our remarks, we've continued to improve our balance sheet and have increased capital return to unit holders. Given the acceleration of our deleveraging and improved financial flexibility, we plan on having discussions regarding our capital allocation framework with our board of directors, and I look forward to sharing additional thoughts with you in the coming quarters. In summary, we've accomplished numerous initiatives over the last few years, and we believe our business is very well positioned today and going forward. A summary of our execution and positioning as well as key takeaways from today's call are provided on slides 12 and 13. With that, I'll turn the call back over to Roy to lead us into Q&A.

Thanks, Willie. As we enter the Q&A session, please limit yourself to one question and one follow-up question, then return to the queue if you have additional follow-ups. This will allow us to address the top questions from as many participants as practical in our available time this evening. Additionally, our investor relations team plans to be available throughout the week to address additional questions. Cherie, we're now ready to open the call for questions.