EnLink Midstream, LLC

Greetings. Welcome to the NLINK midstream second quarter 24 earnings call on webcast. At this time all participants will be in listen only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during today's conference, please press star zero on your telephone keypad. Please note this conference is being recorded. At this time I'll turn the conference over to Brian Brungardt. Brian, you may now begin.

Thank you and good morning everyone. Welcome to NLINK's second quarter of 2024 earnings call. Participating on the call today are Jesse Aranivas, President and Chief Executive Officer, Delonta Simon, Executive Vice President and Chief Commercial Officer, and Vin Lam, Executive Vice President and Chief Financial Officer. Walter Pinto, Executive Vice President and Chief Operating Officer, is also in the room to answer any questions during the Q&A session. We issued our earnings release and presentation after the markets closed yesterday. and those materials are on our website. A replay of today's call will also be made available on our website at investors.inlink.com. Today's discussion will include forward-looking statements, including expectations and predictions within the meaning of the federal securities laws. The forward-looking statements speak only as of the date of this call, and we undertake no obligation to update or revise. Actual results may differ materially from our projections, and a discussion of factors that could cause actual results to differ can be found in our press release, presentation, and SET files. This call also includes discussions pertaining to certain non-GAAP financial measures. Definitions of these measures, as well as reconciliation comparable GAAP measures, are available in our press release and the appendix of our presentation. We encourage you to review the cautionary statements and other disclosures made in our press release and our SET filings, including those under the heading Risk Factors. We'll start today's call with a set of brief prepared remarks by Jesse, Delanca, and Ben, and then leave the remainder of the call open for questions and answers. With that, I would now like to turn the call over to Jesse Aranivas.

Thanks, Brian, and good morning, everyone. Thank you for joining us today to discuss our second quarter 2024 results. For the quarter, we generated $306 million of adjusted EBITDA, driven by our Target 2 plant pulling into service in the Permian. the return of volume that was impacted by weather or temporary shut-in in the first quarter, and normal seasonality in our Louisiana segment. These results were in line with our expectations and drove solid free cash flow after distributions of approximately $53 million. Consistent with our approach to return capital to investors, We repurchased approximately $50 million of units outstanding, taking our total buyback execution to more than 10% of unit outstanding over a little more than two years, all while continuing to invest in and grow our business. As we reported earlier this year, we previously agreed with ExxonMobil to reassess the Pecan Island CCS project with the expectation that other Joint CCS opportunities along the Gulf Coast might be prioritized ahead of the Pecan Island project. Since that time, we and ExxonMobil have been unable to find alternative CO2 transportation projects for Inland. We are now pursuing a financial agreement for the value to Inland of the Pecan Island CO2 transportation agreement. We plan to provide an update when appropriate. Despite the CCS business being slower to develop, I continue to be impressed by our team's execution on multiple fronts where we can create value for our unit holders. We'll discuss these in more detail later on the call, but I want to give you some quick highlights. On the commercial front, we announced last night the first expansion of our natural gas storage assets in Louisiana. We've talked in prior quarters about the shifting supply and demand markets And this new announcement represents our third project to meet this evolving market. On the operations front, we successfully brought on online our third relocated processing plant in the Permian, Tiger II. Consistent with our broader optimization approach, when compared to new build alternatives, this plant relocation strategy represents an efficient capital allocation with significant cost savings and shorter period to end service. On the balance sheet front, we announced last night a proactive step to simplify our capital structure with a significant reduction in the Series B preferred stock outstanding. In short, we've been very active over the last several months managing the parts of our business where we can create the biggest impact. With that, I'll turn it over to Lankan to provide an update on our commercial opportunities.