DCP Midstream, LP Common Units

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 BCP Midstream 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. To ask a question during this session, you will need to press star 1 on your touchtone telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your host, Senior Director of Investor Relations, Sarah Sandberg. Madam, please go ahead.

Thanks, Lateef. Good morning, and welcome to the DCP Midstream third quarter 2020 earnings call. Today's call is being webcast, and I encourage those listening on the phone to view the supporting slides, which are available on our website at dcpmidstream.com. Before we begin, I'd like to point out that our discussion today includes forward-looking statements. Actual results may differ due to certain risk factors that affect our business. Please review the second slide in the deck that describes our use of forward-looking statements, and for a complete listing of the risk factors, please refer to the partnership's latest SEC filing. We will also use various non-GAAP measures, which are reconciled to the nearest GAAP measure in schedules in the appendix section of the slide. Badr Van Kimpen, CEO, and Sean O'Brien, CFO, will be our speakers today, and after their remarks, we'll take your questions. With that, I'll turn the call over to Badr.

Thank you, Sarah, and thanks, everyone, for joining us. I hope you're all safe and well. Our team has delivered another strong quarter as we successfully navigate the ongoing challenges of 2020, and I offer my thanks to each and every DCP employee for their continued hard work. As a result of our multiyear strategic evolution, We started this year on a strong foundation, and that has served us very well throughout this period of uncertainty. Over the past decade, we made investments to fully integrate our value chain to capture more earnings, while right-sizing the portfolio to ensure a high-caliber footprint in the country's premier basins. We diligently executed the supply-long, capacity-short strategy, while optimizing existing assets and functions with a digital transformation established in 2016. These strategies enable us to be well prepared heading into this downturn, and we expect them to accelerate our recovery in a post-COVID world. Specifically, looking to our Q3 performance, with an unwavering focus on operational excellence, we have maintained top safety and reliability performance, while driving emission reductions, and I look forward to talking about this more later in the call. Turning to our financial performance, As a result of our discipline and optimization efforts, in Q3, our assets generated 331 million of adjusted EBITDA, totaling 963 million year-to-date. We expect to beat our year-over-year cost production target of 120 million, and we have delivered 71% reduction in total capital expenditures year-to-date. What started a swift and aggressive sell-off measures at the onset of the downturn has now evolved into a sustainable restructuring of our cost basis. Couple this cost and capital discipline with the proven earnings power of our asset base, and we have generated 152 million of excess free cash flow year to date. And we define excess free cash flow as distributable cash flow, less distributions, and less expansion capital expenditures. We've delivered our commitment to deliver the company with $156 million of debt reduction in Q3 and an improved bank leverage ratio of 3.95. And despite disruptions in our business from the coronavirus, we remain committed to our DCP 2.0 transformation and sustainability efforts. Specifically to advancing our sustainability goals. Earlier this year, in partnership with Kairos Aerospace, we launched the largest industry-led methane survey in the United States. to detect and repair fugitive emissions within our asset footprint. We continue to explore and pilot additional technologies to reduce our Scope 1 and Scope 2 emissions. And these efforts, in combination with our sustainability and DCP 2.0 advancements, were recently recognized by the World Economic Forum. DCP Midstream was one of 10 new additions to the World Economic Forum's global lighthouse network, which is a community of world-leading companies that have succeeded in the adoption of fourth industrial revolution technologies at scale. Of the 54 total sites and companies within the World Economic Forum's lighthouse designation, DCP Midstream is one of only five companies in North America, and is the only U.S.-based oil and gas company to receive this distinction. And we're so incredibly, incredibly proud of our team for this, and for all the other accomplishments this year. So now to talk through the details of our Q3 results, our financial position and outlook, let me turn it over to Sean.