Enterprise Products Partners L.P.

Hello, thank you for standing by. Welcome to the third quarter 2022 Enterprise Products Partners LP 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 the session, you'll need to press star 1-1 on your telephone. Please be advised that today's conference may be recorded. I would now like to hand the conference over to your speaker today, Randy Burkhalter, Vice President of Investor Relations. Please go ahead.

Thank you, Josh. And good morning, everyone, and welcome to the Enterprise Products Partners Conference call to discuss third 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 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. those in the forward-looking statements made during this call. And so with that, I'll turn it over to Jim.

Thank you, Randy. Today we reported exceptional results for the latest quarter. We reported adjusted EBITDA of $2.3 billion for the quarter. We also generated $1.9 billion distributable cash flow providing 1.8 times coverage. We retained $826 million in DCF, taking us to $2.6 billion for the first nine months. We achieved six operating records, including transporting a record 11.3 million barrels per day of oil equivalent in the form of NGL's crude oil, natural gas, refined products, and petrochemicals, We transported a record of 17.5 trillion BTUs per day of natural gas. We'll also set quarterly volumetric records for NGO fractionation, methane exports, butane isomerization, and fee-based natural gas liquids. Where am I? Y'all, just a minute. I've lost my place, and I won't tell you why. Earnings from our Midland Basin natural gas gathering and processing business and higher gross operating margins from our natural gas processing, octane enhancement, and natural gas pipeline businesses were particularly exceptional for the quarter. Today, uncertainties in the global economic environment are weighing on the petrochemical industry. where sluggish demand is leading to reduced runs and destocking. There are some serious concerns about recession, especially in Europe, where the question isn't whether they go into recession, but about the depth and length of the downturn. Meanwhile, on the other side of the globe, China's GDP has taken a nosedive from double-digit growth over the past number of years to low single digits at best. Thinking back on my career, first with Dow, And here at Enterprise, I can't count the number of downturns I've been through. At Dow, the downturns were always painful. But here at Enterprise, they always bring opportunity. And the current environment, while the uncertainties are real, the certainty that Enterprise will always deliver is real, too. Moving to CapEx, year-to-date growth CapEx, excluding our Minimum Basin Acquisition, a total of $973 million, and our current expectation for growth capital for 2022 and 2023 remains in the $1.5 to $2 billion. We currently have $5.5 billion of organic growth projects under construction, and we look forward to bringing our PDH-II plant, our PRACT-12, one plant each in the Midland and Delaware basins, and our TW product system online in 2023. We've been traveling domestically since the end of 2020, and now we're back on the road traveling internationally, and we're welcome in every country we visit. Brent and some of his folks just spent three weeks traveling across Asia, from Japan, Korea to Singapore to Asia, I mean India, and I joined them for some meetings in the last week of their trip. In the middle of a prolonged war in Europe and the outright weaponization of energy by Putin, a global energy and food crisis and inflation worldwide, our country is better positioned than any other thanks to our abundance of both energy and agricultural products. Notwithstanding that abundance, the critically low inventories of distillate in the Northeast United States were self-inflicted and could have been completely avoided by temporarily waiving the Jones Act. In our travels, executives in other countries no longer ask about the size of U.S. energy resources. They don't ask about where we think price is headed. or if we feel U.S. supplies will be competitive. Instead, in most meetings, we're asked if our politicians have a clue about the realities of the world's immediate and longer-term needs for U.S. energy. Unfortunately, with the rhetoric that comes from our government and inaction on badly needed permitting reform, for pipelines, transmission, infrastructure, and mining probably answers that question. Our government needs to understand that rhetoric matters. The United Nations has stated that there is a direct correlation between energy consumption per capita and quality of life. Much of India's population lives in poverty. One of India's most senior executives reminded me in our meeting that they have access to ample supplies of cold. And without access to U.S. resources, they're going to use any and all available resources to raise the standard of living for their people. Global coal consumption is predicted to hit an all-time high in 2022. And that's a trend that could continue as Russia's natural gas studies shut in. Meanwhile, Back in touch with reality, Europe recently declared both natural gas and nuclear energy as clean energy, resources that will be needed for years to come. And Asia continues to make no bones about their long-term appetite for U.S. energy. We at Enterprise have been emphatic that it's going to take all of the above in order to meet the world's growing energy needs. That's why, in addition to traditional midstream services, We're also focused on investments in lower carbon projects like carbon capture and sequestration and providing blue ammonia into export markets. U.S. hydrocarbons remain badly needed to support countries who live in poverty, energy poverty, and to support our closest friends, our allies in Europe who are in an energy crisis. We currently export about 60 million barrels of oil equivalent every month It's clear that the world wants and needs much more of what we have. We're back on the road traveling domestically, internationally. We're growing existing relationships and developing new ones for new opportunities. Sorry, I lost my place, Randy. All right.