Enterprise Products Partners L.P.

Good day, and thank you for standing by. Welcome to the Enterprise Product Partners LP earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. To ask a question during the conference, please press star 1 on your telephone. If you require any further assistance during the call, please press star then 0. I would now like to hand the conference over to today's speaker, Mr. Randy Burkhalter, VP of Investor Relations. Please go ahead.

Thank you, Tanya. Good morning, everyone, and welcome to the Enterprise Products Conference call to discuss our first quarter 22 earnings. Our speakers today will be co-chief executive officers of Enterprise's general partner, Jim Teague 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 21E of the Securities and 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 give 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. And so with that, I'll turn it over to you, Jim. Thank you, Randy.

Two numbers to start off with. $2.3 billion in EBITDA, 1.8 times distribution coverage. I think that says it all. Looking back, it seems like the first quarter Of each of the last three years, it's been a quarter of events. First quarter of 2020, COVID-19 shut everything down, and you had too much of everything everywhere, and our people did pretty good. Last year in the first quarter of 2021, winter storm Uri wreaked havoc on the entire state of Texas, shutting in production like we've never seen. Our folks did pretty good. And then in late February this year, the world rather suddenly found itself dealing with the invasion of Ukraine by Russia and dealing with having to supplement Russian energy to our allies in Europe, along with coming to grips with the growing importance of energy security. In all three scenarios, pandemic, massive weather events, and a sudden global energy shortage, our people delivered. If for some reason you missed our analyst meeting, we announced seven new projects. And going into that analyst meeting, notwithstanding the invasion of Ukraine, we were bullish from both the supply and demand perspective for U.S. oil, natural gas, and NGLs, and we're planning for growth. During our meeting, we announced seven growth projects related to both supply and demand. We're going to build our sixth processing plant in the Midland Basin. That's the assets we bought from Navitas. At the Delaware, we're going to build our second plant at Minton. In Louisiana, we're expanding our Acadian-Hainesville natural gas pipeline by 400 million cubic foot a day. In Texas, we're reversing our Chaparral-NGL pipeline and a portion of our Mid-America pipeline to move refined products from the Gulf Coast to West Texas, New Mexico, Colorado, and Utah. Just outside of Mount Bellevue, but still in Chambers County, we're going to build our 12th NGL fractionation train. We announced that we're going to build an ethylene export terminal at a site to be determined on the Louisiana-Texas Gulf Coast. We announced that we were going to double our ethylene export capacity And then shortly after the analyst meeting, we issued a press release with Oxy, stating that Oxy and Enterprise were going to team up to build a carbon capture sequestration header system between Beaumont and Houston. But combined, these projects we have announced will still fall within the $1.5 to $2 billion annual capex. And then I want to end the day with a few thoughts about the world's energy situation and how the U.S. is ideally positioned to step up with ample and reliable U.S. oil and gas. The U.S. has the capability to replace Russia's exports of oil products and natural gas to our European allies if we would unleash the God-given shell resources that we are blessed with. After being dependent on the Middle East for nearly 50 years, the U.S. became energy secure and a net exporter of hydrocarbons over the last 10 years, while Europe moved the other way, depending on renewables and Russian natural gas. As Russia marched on Ukraine, their ideology came face-to-face with reality. It didn't have to be this way, and it's not too late to correct it, if we would start being honest about the importance of fossil fuels. that importance being for decades to come. Unless we're ready to take a huge step back in human development, U.S. oil and gas production must continue to grow. Regulatory uncertainty, politics, and green hyperbole have led to a gap in funding worldwide, and we're finding out the hard way that finding and producing these resources isn't on autopilot. Take skilled people, new infrastructure, time, and money. Look no further than the cancellation of Keystone, suspension of federal leases, the numerous canceled projects to get gas out of Appalachia, and the foul plight of the Mountain Valley Pipeline to see the constant roadblocks caused by the attitude in Washington and in the courts. The U.S. is going to reach its full potential and provide global leadership in the face of Russia's tyranny. Our politicians, regulators, and the courts must start being honest about the world's need for energy and step up and support the needed infrastructure, including pipelines, plants, and LNG export facilities. Otherwise, we'll find ourselves increasingly beholden to despotic regimes for energy and and for minerals and metals required to add green energy solutions. Randy? Thank you, Jim.