Enterprise Products Partners L.P.

Thank you for standing by, and welcome to Enterprise Products Partners LP's third 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.

Libby Strait Good morning and welcome to the Enterprise Product Partners conference call to discuss third quarter 2024 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises 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 Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available to enterprises management teams. 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-booking statements made during this call. With that, I'll turn it over to Jim.

Thank you, Libby. Today reported adjusted EBITDA of $2.4 billion for the third quarter compared to $2.3 billion for last year's third quarter. It generated $2 billion of distributable cash flow, providing 1.7 times coverage In addition, we retained $808 million of DCF. Our retained DCF totals $2.3 billion year-to-date. Operationally, we set five volumetric records, including 7.5 billion cubic feet per day of inlet natural gas processing volumes and 12.8 million barrels a day of crude oil equivalent pipeline volumes. We've benefited from contributions from the three new natural gas processing plants and wide natural gas price spreads between Waha and other market hubs. We're on track to complete construction of two additional processing plants in the Permian, our Bahia pipeline, Fract 14, phase one of our Natus River NGL export terminal, and the last phase of our Morgan Point Terminal flex expansion in 2025. And we'll have one additional process plant coming online in the Delaware in 2026. These projects provide visibility to new sources of cash flow for our company and enhance and expand the NGO value chain at the core of our business. We also announced yesterday that we completed the acquisition of pinyon midstream. These assets are highly complementary to our Permian processing footprint by providing treating services to a prolific area of the basin that generally has been infrastructure limited to the lack of sour natural gas treating and acid gas injection capacity. Opinion assets are also a very strategic addition to our NGO value chain that touches everything from the wellhead to the water. I'd be remiss if we didn't recognize the tireless efforts of over 200 of our employees at Montbellevue who rolled from our most comprehensive turnaround for the PDH-1 plant right into a turnaround for our PDH-2 plant. Our employees completed these 24-7 turnarounds with extreme diligence and without any lost-time accidents. We believe this time and investment will result in higher utilization rates and performance for both of these facilities going forward, and we look forward to their contributions in 2025. We're excited about the number of inbounds that we're getting related to new natural gas demand in Texas from both data centers and new gas-fired power plants that would be built under the Texas Energy Fund. There are a lot of people talking about exposure to data centers. It seems that it's a very sexy thing to say, and everybody who has a piece of pipe in Texas is talking it up. The reality is there's a very small list of companies with pipeline and storage assets best positioned to benefit from this build-out, and enterprise is one of them. It is difficult to quantify the ultimate demand and timing at this point, not knowing which projects will go forward. That being said, it is one of the most promising signals we've seen in natural gas in a long time, and we're looking forward to serving this new influx of demand. In enterprise, we take pride in the fact our organization is not siloed. Everyone is important. We all pull in the same direction every day. The dedication, commitment, and creativity of all our employees has always been the key to our success. We always strive to get better. We operate an integrated value chain, providing a wide range of services from the wellhead to the water. Our systems are highly automated and provide us with billions of data points. Each link in that chain presents an opportunity to provide a service, earn a fee, or enhance profitability by enhancing our margins or reducing our costs. Over the last five years, we have developed a very talented big data and data science team that works closely with all areas of our company. We're now using big data for everything from predictive maintenance to market analytics to asset optimization. One of the many examples is our pipeline controllers now use real-time profit optimizer programs to help determine when and how they run compressors and pumps based on real-time power and fuel cost. Data and the insights it can provide in many respects is the new currency. And our proprietary data will forever be an opportunity for enterprise. As we sit in the final quarter of 24 and head into 25, our work is not done. Each year presents new opportunities and new headwinds. We built a network of assets and a culture that delivers strong results throughout business cycles, administrations, and market conditions. Our company is built for the long run. As always, we've never been more excited for what the future will bring for our company. With that, Randy.