Enterprise Products Partners L.P.

Thank you for standing by, and welcome to Enterprise Products Partners, LP's second quarter 2024 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 will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to Libby Strait. Senior Director of Investor Relations. Please, go ahead.

Good morning, and welcome to the Enterprise Products Partners conference call to discuss second quarter 2024 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises General Partners, Jim Peek 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 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 those 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. With that, I'll turn it over to Jim.

Thank you, Libby. We had another solid quarter, both in terms of volume and cash flow. We reported adjusted EBITDA of $2.4 billion compared to $2.2 billion in the same quarter last year. We generated $1.8 billion of distributable cash flow. We had 1.6 times the coverage for the quarter. We retained $661 million of DCF in the second quarter. and we're at 1.5 billion here today. Even though the second quarter can be seasonally our weakest quarter, our company handled a near record 12.6 million barrels per day of crude oil equivalent volumes and 2.2 million barrels a day of marine terminal volumes, as well as record natural gas processing and record NGL pipeline and fractionation volumes. Our investments to support growth in the Permian Basin are visible both volumetrically and financially in our NGL pipeline and service segment, which reported a 19% increase in gross operating margin compared to the second quarter of last year, primarily attributable to our four new natural gas processing plants in the Permian and our 12th NGL fractionator at our Montbellevue area complex. In addition, we also benefited from improvements in natural gas processing margins compared to last year. Our natural gas pipelines and service segment also reported a 23 percent increase in gross operating margin compared to the same quarter in 2023. This increase was primarily driven by higher transportation revenues and higher marketing margins associated with the wider spreads between Oaxaca and higher valued market hubs. We had a very good quarter in spite of the challenges of our PDH plants. They've been somewhat of a headwind throughout the year. We recently completed our turnaround at PDH 1. Planning for the turnaround took over a year and involved a dedicated turnaround team in addition to field engineering and maintenance personnel. This team documented every issue we've had with this plant and developed solutions for each one. The turnaround took 100 days, a few factoids. At turnaround, there was over 1.25 million hours worked. At the peak, we had 1,250 people per shift. We had 590 work packages executed. 17 million pounds of catalyst handled, 1,465 crane lifts, 190 18-wheeler deliveries, 52,800 bricks hand inspected, over 41,000 replaced. Those bricks are the catalyst support and the catalyst reactor. The plan is now up and running. and exceeding its nameplate. PDH 2 is currently in turnaround. We expect it to be producing PGP sometime around mid-August. The PDH 2 turnaround is not nearly as involved as PDH 1. I'd like to thank our Mount Bellevue team and our supporting service providers. for their long hours and hard work during these back-to-back turnarounds. We're confident that these two plants will be a tailwind the rest of the year. We also completed our diluent open season on the TE product system. We closed the open season with 100,000 barrels a day of new and re-contracted commitments, and I think those are five-year deals. We can accommodate this incremental demand with a suite of deep bottlenecks and horsepower additions while ensuring we do not impact our existing customers. Finally, our company has $6.7 billion of projects under construction that provide visibility to future earnings and cash flow growth. These projects include three processing plants, one in the Midland Basin, two in the Delaware and associated gathering, our Bahia NGL pipeline, Fract 14, and export expansions at the Natchez River Terminal and the Ship Channel. All of these projects are backed by long-term contracts and significantly enhance what is already a very strong NGO value chain. And as has been the case for several years running, we continue to see even more rich gas volumes coming from the Permian than we had previously forecasted And Tony may give something on this in the Q&A. And with that, I'll turn it over to Randy.