Energy Transfer LP

Good day, and welcome to the Energy Transfer Q2 2024 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I now would like to turn the conference over to Tong Wong, co-CEO. Please go ahead, sir.

Thank you, operator.

Good afternoon, everyone, and welcome to the Energy Transfer Second Quarter 2024 Earnings Call. I'm also joined today by Mackie McCree and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains information a thorough MD&A that goes through the segment results in detail, and we encourage everyone to look at the release, as well as the slides posted to our website, to gain a full understanding of the quarter and our growth opportunities. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us, and are discussed in more details in our Form 10-Q for the quarter ended June 30th, 2024, which we expect to file tomorrow, August the 8th. I'll also refer to adjusted EBITDA and distributable cash flow, or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website. I will start today by going over our financial results. For the second quarter of 2024, we generated adjusted EBITDA of $3.76 billion compared to $3.12 billion for the second quarter of 2023. This number includes over $80 million of transaction expense. Absent these transaction costs, adjusted EBITDA would have been over $3.8 billion. We had record volumes through our CRUDO and NGL pipelines as well as record NGL exports. We also saw strong performance from our NGL fractionators and our refined products pipelines and terminals. DCF, attributable to the partners of Energy Transfer, as adjusted, was $2 billion compared to $1.6 billion for the second quarter of 2023. And for the six months of 2024, we spent approximately $1 billion on organic growth capital, primarily in the midstream and NGL and refined products segments, excluding Sun and USA Compression CapEx. Now turning to our results by segment for the second quarter, let's start with NGL and refined products. Adjusted EBITDA was $1.07 billion compared to $837 million for the second quarter of 2023. The increase was primarily due to growth across our transportation, fractionation, and terminal operations including records in both Mariner East and Permian pipeline volumes, as well as NGL exports. In addition, we had higher gains from the optimization of hedged NGL inventory. For midstream, adjusted EBITDA was $693 million compared to $579 million for the second quarter of 2023. The increase was primarily due to the addition of the Crestwood assets as well as higher volumes in the Permian Basin. For our crude oil segment, adjusted EBITDA was $801 million, compared to $674 million for the second quarter of 2023. The increase was primarily due to record crude oil transportation throughput, an increase in our total crude oil exports, which were up 11%, as well as the acquisitions of the Lotus and Crestwood assets in May and November of 2023, respectively. Excluding these acquisitions, adjusted EBITDA and crude oil transportation volumes on our base business increased 4% and 8%, respectively. In our interstate segment, adjusted EBITDA was $392 million compared to $441 million for the second quarter of 2023. During the quarter, we saw higher contracted volumes on trunk line, pebble, Gulf Run, and MRT. This was offset by lower operational gas sales, maintenance project cost of $12 million, as well as a $35 million reduction in revenue for shipper refunds related to our pebble rate case. For the intrastate segment, adjusted EBITDA was $328 million, compared to $216 million in the second quarter of last year. The increase was primarily due to approximately $75 million of increased gains related to pipeline optimization opportunities, as well as favorable storage optimization opportunities. In July 2024, Energy Transfer completed the acquisition of WTG, which provides energy transfer with increased access to growing supplies of natural gas and NGO volumes, and enhances our Permian operations and downstream businesses. Integration of the combined assets is underway, and we are really excited about the great customer base and the growing gas supply behind this asset. Since closing the transaction, the 200 million cubic foot per day Red Lake III processing plant was placed into service. We expect volumes to ramp up quickly as more residue takeaway becomes available. Also in July 2024, Energy Transfer and Sunoco LP announced the formation of a joint venture combining the respective crude oil and produced water gathering assets in the Permian Basin. This is another exciting opportunity that highlights the creativity and optionality our family of partnerships brings to the table when we work together to expand our market and service offerings for our customers. Now turning to our growth projects and starting with our Nederland and Marcus Hook export terminals, construction of the expansions to our NGL export capacity at Nederland continues to progress, and we remain on schedule for an anticipated in-service in mid-2025 for the initial phases of the project. And at our Marcus Hook terminal, construction continues to progress on the first phase of an optimization project. Turning to Lone Star Express, our 90,000 barrels per day expansion project remains on schedule to be in service in 2026, bringing our total capacity of NGL transportation to over 1 million barrels per day out of the Permian Basin. We recently approved our ninth fractionator at Mont Bellevue. Fract 9 will have a design capacity of 165,000 barrels per day and is expected to be in service in Q4 of 2026. This will bring our total fractionation capacity at Mont Bellevue to more than 1.3 million barrels per day. In addition, we recently placed a previously unutilized 2 million barrels butane storage well back into service, bringing our current NGL storage capacity at Mont Bellevue to approximately 62 million barrels. Now taking a look at our Permian processing expansions, construction continues on upgrades to our existing processing facilities, which will add approximately 200 million cubic feet per day of processing capacity in West Texas. And in June, we announced plans to construct the 200 million cubic feet per day Badger processing plant in the Permian Basin. This plant, which is expected to be in service in mid-2025, will utilize an idle plant that is to be relocated to the Delaware Basin, which will help save capital versus building a new plant. In North Louisiana, we placed trains one and two of our Ajax treating facility into service in July. These trains have a combined treating capacity of approximately 300 million cubic feet per day. Now for a brief update on our opportunities around pipe regeneration. With forecasts for electricity demand growth becoming increasingly bullish and the need for grid reliability becoming progressively more important, it is clear that natural gas will play a significant role in helping meet this demand. Given energy transfer's extensive interstate and intrastate natural gas pipeline footprint, we believe we are extremely well positioned to benefit from the anticipated rise in natural gas needs. We currently serve gas-fired power plants in 15 states with approximately 185 plants served via direct or indirect connections throughout these states. And we have recently signed deals across our systems to provide gas loads of over 500,000 MMBTUs per day. In addition, as mentioned last quarter, we have approved the construction of eight 10-megawatt natural gas-fired electric generation facilities to support the partnership's operations in Texas. We continue to expect these facilities to go into service throughout 2025 and 2026. These facilities are expected to increase system reliability for energy transfer and for our customers. We also continue to make progress on the development of several other growth projects, including our Warrior Blue Marlin offshore project Lake Charles LNG, a carbon capture and sequestration project with capture point, and blue ammonia hubs at Lake Charles and Nederland. We look forward to providing more updates on these projects as customer discussions advance and we bring them closer to FID. Looking ahead at our 2024 organic growth capital guidance, we now expect 2024 growth capital expenditures to be approximately $3.1 billion. which will be spent primarily in the NGL and refined products and midstream segments. The primary driver of the increases from our previous guidance of $2.9 billion is the addition of growth capital related to WTG and quicker returning projects in the crude oil segment related to the Crestwood acquisition. Now turning to our adjusted EBITDA guidance, we are raising our 2024 adjusted EBITDA guidance to be between $15.3 to $15.5 billion, compared to our prior guidance range of $15 to $15.3 billion. Our 2024 guidance has been updated to include our acquisition of WTG, which closed on July 15th, and outperformance in the base business even with over $100 million transaction costs also included within our full-year guidance. We continue to be excited about our business and the demand for our products and services, both domestically and internationally. We're in a strong position to help meet this demand with strategic optimization and expansion projects that enhance our existing asset base and generate attractive returns. and we expect to maintain the flexibility to balance organic growth opportunities with further leverage reduction, maintaining our targeted distribution growth rate, and increasing equity returns to our unit holders. In addition, we are pleased to see that in June, Moody's upgraded our senior unsecured credit rating to BAA2, which further demonstrates the strides that we have made to strengthen our balance sheet and financial position. This concludes our prepared remarks. Operator, please open the line up for our first question.

Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If any time your question is unaddressed and you would like to withdraw it, please press star then two. At this time, we will pause momentarily to assemble the roster. And the first question comes from Jeremy Toney with J.P. Morgan.

Hi, good afternoon.

Good afternoon.

Jeremy? Just wanted to start off, if I could, appreciate the color on the call, but as it relates to WPG, with a month in the books, I was just wondering if you could talk a bit more, I guess, on what you see as far as commercial opportunities there, and similarly with the J.B. with Sun on New Star. Just wondering what new opportunities that you see in front of you post these deals.

Hey, Jeremy, this is Mackie. I'll start with your first one. We're very excited about WTG. Excuse me. As you just said, we're barely almost a month into it. We still have a lot of rocks to turn over, but we couldn't be more excited, not only just the assets itself, And the very credit-worthy producers, they're supporting that with long-term, large acreage dedications and all that to support the cryos. But what's even more exciting to us that we don't even put in our numbers when we do acquisitions like this is how it's going to really feed into our residue business, our downstream residue business, as well as our Lone Star and NGL transport and fractionation business. So we're just getting our arms around it. We're very excited about it. There's enormous growth. in that part of the Midland Basin that we have had a little exposure to on the gas side. So we're very excited and looking forward to a lot of good things coming out of that acquisition. With NuSTAR, we're excited about that too. Joe Kim has done an incredible job growing Sunoco. They've kind of been in different areas and they're evolving kind of entire areas, the pipeline side, and we welcome them. We have a really good partnership with them right now and JC Nolan that's gone really well moving diesel from the Gulf Coast to West Texas. We've got some deals with them up in the Northeast on transporting our refined products and a lot of stuff going on with them. They're great partners. We look very much forward to what we're going to do with them and that JV. Once again, that's new news. We're getting our arms around that, but the bottom line is that's going to be a lot better for both of our partnerships than just one-on-one. It's going to add up to a lot more than three or four on what we're already seeing will provide a lot of benefits to the producers out there as we team up, but also a lot of downstream value for both our partnerships. So we're excited about both those deals.

Got it. That's very helpful. Thank you. And just wanted to pivot to the Permian itself, if I could. Curious how you guys see the egress situation right now across the three different hydrocarbon chains in the need for incremental takeaway. Do you still see more discussion with Warrior at this point, and how do you think about the crude oil takeaway side as well?

Okay. Well, I'll tell you, I'll start with crude oil. We don't see a lot with crude oil. We do see there needs to be quite a bit more growth to fill up what's there. We're probably a year or two away from any concerns around that, at least from our business standpoint, but we'll certainly keep an eye on that. But on Warrior, yeah, we've had some questions, both internally but mainly externally, about what does the announcement going to Agua Dulce do at Warrior. I'll just summarize that, zero. The vast majority of the customers that we've already signed up and that we're pressing to sign up over the next 60 to 90 days have no desire for either their gas to be in South Texas or the markets that are supporting this project. So by no means has that slowed us down. We're very... And I know we've talked about this quarter after quarter, but it has picked up steam. There is a tremendous market east, not south, but east, you know, heading through Texas and other parts of the country, really. And so we're very excited about where we sit on Warrior, and I'll just say that I'll be disappointed. Certainly not implying that we're almost FID, but I'll be disappointed if we're not announcing FID by our next earnings call. We're working hard, and we'll see if we can get there. If we do announce that, it will be fully – sold out. We're not going to take any risk on overbuilding out of that basin, but there's still a lot of gas and oil growth for many years to come out of that basin, in our opinion. And then the last one, you mentioned all three, but NGLs, we never worry about what others are doing around NGLs. We will build the necessary pipelines to move NGLs out of that area to meet the contracts we have with our customers.

Got it. That's very helpful.

Thank you for that. Thank you. And the next question comes from John McKay with Goldman Sachs.

Hey, good morning. Good afternoon. Thanks for the time. I wanted to, and you touched on a couple of these drivers, but maybe just a little more on the underlying business performance for the guidance update. Maybe just a little more color there and kind of how that looks for the back half of the year.

Yeah, John, this is Tom.

I'll start and then Mackie can add more on. As we said in prepared remarks, we feel very good about the base business and that's the reason why we were able to bring it up in addition to the acquisitions, not just the WTG. So when you really look at it, I think the optimization group, a lot of the stuff we've been able to do, we just continue to be able to to see additional benefits as we look out over the year. But no, it was great to be able to continue to walk the guidance up for the year, even in this commodity environment. Because as you know, we get a lot of extra pop when natural gas prices are higher, et cetera.

But even with that, we're able to continue to extract good value out of the optimization groups.

Thanks for that. If we're looking at the CapEx side, obviously talking about WTG as a bit of a new growth platform to your point on the Midland side, maybe if you could just frame up kind of how you're thinking about your broader CapEx look over the next couple of years now that the footprint's bigger, now that you've kind of pulled in some of the new star assets as well, how that should trend versus your two to three you've talked about in the past.

That's actually a very, very good question. As you know, we've just now closed on some of these transactions and we're working through it right now. As usual, we'll come out with our 2025 guidance whenever we get to the fourth quarter earnings release. At that time, we'll have able to scrub the normal run rate, but you absolutely nailed it with our uh, growth in our scale, our size, and with everything we're doing, uh, let, let us, let us scrub that a little bit more. So we won't just do, uh, give you the 2025, uh, number. We'll also kind of give you that ongoing run rate. Uh, but as of right now, uh, you know, we've always had that two to 3 billion. Uh, it, you know, if anything it'll be, you know, it'll be probably at that 3 billion, but let us, let us do some more work on that before we give any official, uh,

long-term run rate.

That makes sense. Appreciate the time. Thank you.

Thank you.

Thank you. Next question comes from Keith Stanley with World Research.

Hi. Good afternoon. First, just wanted to ask on M&A. Most of your recent deals, including WTG, have been buying G&P businesses and leveraging the NGLs. Is that still the main focus for future M&A, or could you broaden it out And then with the JV with Sun, could that partnership potentially play a role in M&A, or is the JV exclusively about optimizing the existing assets?

Yeah. Okay, yeah, I'll start with the end of that question. Yeah, right now, the way that it's structured, the JV in the Midland Basin is not to go out and acquire it. That's not to say that... if there's some gathering assets or other assets in that area that fall kind of within that AMI, that we would approach that together, and that's certainly in our agreement with them. But right now, the main focus is really developing out those systems together and achieving as much of the upside that we can downstream of that partnership with our other business and further downstream revenues.

Yeah, and listen, I'll chime in here. This is kind of the first part of your question, just in general, where we focus. First off, we still feel like consolidation is going to occur in the midstream, similar to what is happening in the midstream. And when you see how diversified we are across all the commodities, and we go all the way from the wellhead to the water, to our export facilities, we're looking really pretty much across the board. We wouldn't want to dial you in to any you know, specific area. But the way you asked the question was actually very good. Just like what Mackie said on the WTG, we are able to extract a lot of benefits downstream when we, let's say, get into the gathering and processing. And it's across all the commodities. It's not, you know, it's not tied to any one commodity. So we think that we still have a lot of opportunities there and, you know, we're going to continue to evaluate those opportunities.

Thanks for that. Second question, with Double H moving to NGL service out of the Bakken, has that impacted discussions on recontracting Dakota Access at all, and how are you thinking about recontracting on Dakota Access in terms of the timing and terms you're looking for?

Yeah, Keith, this is Matt. Keith, no, that hadn't really spurred any new thoughts around that. I guess I'd summarize where we're at. We are kind of the pipeline of choice out of there as you know. We move more than 50% of the barrels out of the Bakken. We do have the ability to move significantly more if there's any growth and certainly doesn't hurt our feelings if there's going to be 60 to 80,000 barrels that was leaving the basin that now we'll be looking for another way out because we think we'll continue to move the majority of the barrels out of that region. But we do think that we'll end up at, you know, sooner than later rolling or extending some of the agreements that we have, but we really don't have a lot of angst or concern for the reasons I just said. We offer more flexibility by going to the mid-continent refineries and, of course, all the way down to the Gulf Coast to the Beaumont and Houston area as well as Bayou Bridge. It's unparalleled with the flexibility and the optionality that we're given for producers. We sit in a very good position and we're very confident that we will keep Dakota access full at healthy spreads for many years. Thank you.

Thank you. And the next question comes from Teresa Chen with Barclays.

Good afternoon. Going back to the comments related to the downstream synergies following the formation of the Permian JV with Sun, can you talk about what timeframe the long-haul pipeline commitments rollover from the legacy NuStar gathering system for the barrels that are not already on your long haul system?

Yeah, this is Mackie again. No, most of the business that NuStar had now, Sunoco and our JV is just gathering. So it's gathering that base and it's delivering to pipelines like energy transfer or other competing pipelines in the area. So that JV is A large area, the AMI, that encompasses energy transfer, oil gathering business in the Permian Basin, but does not include any of the downstream pipelines, for example, that go to Neyland or up to Cushing. So that's, we're going to work very closely with New Stars, I mean, sorry, with Sunoco as part of that JV, but that's just confined in the gathering part of that business.

Right. I meant to ask for the barrels that are not committed onto Permian Express? When can you roll them onto Permian Express over the next few years?

You know, I'd answer it like this, is that we're probably gathering 1.5 million barrels, and we can move less than that out of it, so we don't have any necessarily dedicated barrels from any particular area other than shippers that have taken space on our our pipeline system. So right now, I really couldn't say what exact molecules will come from this JV may feed into our downstream business. We kind of take it as a whole. Also, there's different qualities of oil, whether it's WTL or WTI that come involved. So there's a lot more kind of thought process going into this. But yeah, at the end of the day, certainly this JV and the business of gathering oil will continue to feed our downstream business, both to Nederland, to our Houston terminal, as well as one day, hopefully, to our Blue Marlin project.

Got it. And can you just provide some incremental detail on the marketing strength in the NGLs and refined product segment this quarter? What drove that and how much of that is repeatable?

Yeah, Teresa, hi. This is Dylan. So that NGL marketing line item, there's a lot of activities that go into that. various optimization in the Gulf Coast and the Northeast. Over the last quarter, where we really saw the great performance was from the Gulf Coast NGO group. It had a really strong quarter, and it's really comparing back to the second quarter last year when we did have an LCM write-down on hedged inventory. And additionally to that, we also had some strong margins for both the butane and gasoline blending businesses in the Northeast.

Thank you. Thank you.

And the next question, Constance Shapiro, doing this with Citi.

Thanks, Albert. Afternoon, team. First question, I actually wanted to ask you guys about your global growth ambitions. I know in the past you've talked about an NGL Panama pipeline, and recently your name was sort of mentioned alongside another South American oil and gas project. And so I respect that you might not be able to talk about project specifics, but just curious, do you have ambitions to grow Citi? on a global level, and is that something that you do under the MLP structure?

Yes, this is Tom. That's the quick answer. We think it's the right thing to do for our partnership here. It makes a lot of sense with all that we've built out across all the commodities. So we continue to evaluate various opportunities when you look across the globe. I will tell you that we will always be very – careful with any risk as we look at these. We'll make sure they're good fits for us, that we can bring a lot of value. But we're well aware of the risk, country risk, et cetera, that come along with each of these. And it's, you know, but we once again think that we've got the right team to be able to extract value when you look out globally. But we will, like I said, it'll be credit risk, country risk, et cetera. And when you get, you know, get involved with some of the You know, some of these various companies that are in these other countries, you can do a lot of stuff with them globally when you look at it. So we will continue at least to evaluate but be very thorough in our evaluation.

Got it. Helpful, Tom. Maybe to switch gears back here domestically, this power demand or power generation, the man thesis kind of really snuck up on a lot of the market here. And it sounds like you all have a few irons in the fire, even on the data center side. So just curious, you could frame for us how you're thinking about the timing of when some of these projects start to show up in earnings. And maybe as we think about the scope and size, are we talking about greenfield expansions here, brownfield, just help us understand the opportunity in front of you.

Yeah, this is Mackie and I'm actually not going to, answer your question at first, because I do want to make a statement. I thought about this when we were preparing. Bill Bergen and his team do a great job of summarizing some of our competitors and their earnings call and how they did, and I find it interesting as I think back about it, about we've got competitors talk about their oil business, which is the vast majority of what they do, or they talk about their NGL and oil business, which is the vast majority, or their all-natural gas, and what a a blessing and how fortunate we are as a partnership with such great employees running this business and the breadth of our pipeline system, our terminal, our storage throughout the U.S. I mean, we're so well positioned to meet this demand growth across the board for natural gas and other commodities. So we feel very fortunate, and we're going to take advantage of that. So in answering your question, we keep hearing about transition for years, the last four years, transition. Well, I guess everybody's kind of seeing the truth. The transition is we're about to transition into untold demand for natural gas. And for that case, also natural gas liquids internationally. So as I just mentioned, nobody's better positioned for us. Other than the Eastern Seaboard, if you look at our pipeline intrastate network, you look at what I just said, we have over 233 BCF of storage along all of our systems to really meet the demands. We're situated very well to... to meet all the upcoming demands. You mentioned data centers. Yes, we're in four or five different states in discussions with multiple data centers of different sizes. Some of them, or many of them, want to put generation on site and wanting as much as 200,000 or 300,000 CF for each one. So it's an enormous opportunity for us. As I mentioned, we're very advantaged in many of these areas to capture a lot of this business, as well as for the power plant demand for natural gas. We see that going up. Astronomically, we think we could increase the demand here for electricity over the next six to eight years by 30 or 40,000 megawatts at least here just in Texas. You go to other states, similar type needs. Once again, we're very well positioned. Then you add on to that. We've got population growth in Florida and Texas behind all these gas utilities that we'll be feeding and growing our business. You've got Heck, blue ammonia, just what we're working with alone with a handful of folks, if it comes to fruition, the majority of that, we're looking at between one and two BCF of natural gas deliveries to our terminals, close to our terminals for blue ammonia. And then you throw in crypto and on and on. So yeah, we're very bullish. I know that's a long-winded answer to your question, but we couldn't be more excited about the transfer, I mean, the natural gas demand growth and how we're going to be able to take advantage of that with our broad system.

That's great color, Mackie. I'll leave it there. Thanks so much.

Thank you. And the next question comes from Michael Bloom with Wells Fargo.

Thanks. Good afternoon, everyone. I wanted to go back to Kinder Morgan's double H conversion announcement. I'm wondering if you could possibly participate in this project in any way, either upstream or downstream of AAH, and if you could remind us on the contract terms or the NGO balance you have from the Crestwood acquisition.

Yeah, that's a good question, Michael, because that's really where we see a couple of benefits, but one of them is we are chasing a couple of pretty big deals, and we've got available capacity that's already sitting there waiting for us, processing capacity with the Crestwood assets. We do intend to fill that, and now there's competition. Now, when you have a monopoly, it's hard to get a good net back price for your producer or for your business, and that's changing. So we're excited and intrigued that Kendra is doing this. It's kind of something more like we do. So we love that, and like I said, it's not going to hurt our feelings that there may be 60 or 80,000 more barrels looking for a home on our on our Dakota access. Now downstream, we certainly are in discussions and we love and feel like we probably will see some of those barrels at a minimum at our frac, but we're just in early discussions and certainly see that as another potential upside for what Kinder's doing. But mainly we like what's going on up in the basin and what it will do for our own assets up there.

Okay, perfect. Thanks for that. Just wanted to get your latest thoughts on what's happening in Hainesville, North Louisiana. Obviously, there's been the legal challenges. Some of that's sort of now transpired. So just wanted to get your latest thoughts there.

Okay, yeah. You know, Marcel, Utica, and Hainesville, tough areas over the last quarter. You know, a lot of lean gas, a lot of, you know, drilling slowing down, even some shut-ins. So we've seen Those two basins in Hainesville especially come off, what, two, two and a half BCF, I think, just since the end of last year. But we are seeing it start to recover as prices start to recover. The enormous reserves in North Louisiana, we have multiple 42-inch pipes running through North Louisiana, actually three. We've got a Gulf Run extension to the south. We have the ability to increase the capacity on that relatively easy. And And we've got a lot of potential to grow there, and so does the industry. When you're talking about the issues in Louisiana, I'll touch on those real quick. We are in a lawsuit with one company, but from a high level, there were three companies that were looking for, I think it was 150, 160 crossings of our pipelines. And we deal with this every day, whether it's other pipeline companies or utility companies or electric companies or whatever, it's a normal part of our business. But what happened was with two of these pipeline companies, we needed technical data. We needed to work with them on where are they crossing at, how are they going to impact our right-of-way, how are they going to impact our right-of-way, our FERC right-of-ways, how are they maybe going to adversely possibly affect our safety, our employees. So it's important to us to have answers to our questions like we always ask and get, and two of the pipelines work with us. We have one pipeline that has rejected or refused to provide that technical data, and all we're doing is protecting our rights. And we'll continue to do this as a partnership, and we'll see kind of how all that plays out.

Thank you.

Thank you. And this concludes our question and answer session. I would like to return the floor to Tom Long for any closing comments.

All right. Well, we definitely appreciate you all joining us. I do want to add one more comment here at the end. You know, we do get a lot of inbounds. I'm going to go back to the global question a little bit here. We have a lot of hard assets, second to none across this country, but another significant asset we mention occasionally but can't ever emphasize enough is the team, the human resource side of the team. All the inbounds that we get globally is a huge, huge compliment to the second-to-none team that we have, operations team, BD team. I think it's recognized globally, and that's the reason a lot of inbounds do come to us. And we take it as, like I said, a massive compliment that our name is used out there a lot. But anyway, I wanted to make sure I got that in. But thank all of you all for joining us, and we look forward to talking – with all of you with any follow-up questions. Thanks.

Thank you. The conference has now concluded. Thank you for attending today's presentation.

May God bless your lives.