麥哲倫石油 (MMP) 2022 Q1 法說會逐字稿

Greetings, and welcome to the Magellan Midstream Partners First Quarter '22 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded, Thursday, May 5, 2022. I would now like to turn the conference over to the President and Chief Executive Officer, Aaron Milford. Please go ahead.

大家好，歡迎參加麥哲倫中游合夥公司2022年第一季財報電話會議。 （操作員指示）提醒一下，本次會議將於2022年5月5日（星期四）進行錄音。現在，我想將會議交給總裁兼執行長Aaron Milford。請繼續。

Hello, and thank you for joining us today to discuss Magellan's first quarter financial results. Before getting started, we must remind you that management will be making forward-looking statements as defined by the Securities and Exchange Commission. Such statements are based on our current judgments regarding the factors that could impact the future performance of Magellan, but actual outcomes could be materially different. You should review the risk factors and other information discussed in our filings with the SEC and form your own opinions about Magellan's future performance.

大家好，感謝您今天加入我們，共同討論麥哲倫第一季的財務表現。在開始之前，我們必須提醒您，管理階層將根據美國證券交易委員會的定義做出前瞻性陳述。此類陳述是基於我們目前對可能影響麥哲倫未來表現的因素的判斷，但實際結果可能存在重大差異。您應該閱讀我們提交給美國證券交易委員會的文件中討論的風險因素和其他信息，並對麥哲倫的未來業績形成您自己的看法。

Since this is my first opportunity to speak publicly as Magellan's CEO, I would like to express how honored I am to lead this exceptional organization. As you know, I've spent my entire career with the company, including serving as Chief Financial Officer and most recently, as Chief Operating Officer. So even though I'm new to the CEO role, I've been around for a while. And I intend to remain focused on the overarching goal of maximizing long-term investor value while retaining our strong financial position and consistent disciplined approach that Magellan is known for.

這是我第一次以麥哲倫執行長的身份公開發表講話，我非常榮幸能夠領導這家卓越的公司。正如你們所知，我的整個職業生涯都在公司度過，包括擔任首席財務官，以及最近的首席營運官。所以，儘管我剛剛擔任首席執行官，但我已經在這裡工作了一段時間。我將繼續專注於最大化長期投資者價值的首要目標，同時保持我們強勁的財務狀況和麥哲倫一貫的嚴謹作風。

As reviewed at our recent Analyst Day, no matter which industry projections you consider, we expect our services to be needed for a very long time, and our company is poised to serve our nation's critical energy needs for decades to come. We remain committed to doing things the right way, ensuring that we are operating in a safe and efficient manner at all times. I'm confident in Magellan's future and our ability to create long-term value for our investors.

正如我們最近在分析師日上所回顧的那樣，無論您考慮哪種行業預測，我們都預計我們的服務將在很長一段時間內受到青睞，並且我們公司已準備好在未來幾十年內滿足我國關鍵的能源需求。我們始終致力於以正確的方式行事，確保我們始終以安全且有效率的方式運作。我對麥哲倫的未來以及我們為投資者創造長期價值的能力充滿信心。

With that, I'll turn the call over to our CFO, Jeff Holman, to briefly review our first quarter financial results. Then I'll be back to discuss our latest outlook for the year as well as the status of a few of our expansion projects before answering your questions.

接下來，我將把電話轉給我們的財務長傑夫·霍爾曼，他會簡要回顧我們第一季的財務表現。之後，我會回來討論我們今年的最新展望，以及一些擴張項目的進度，然後再回答大家的問題。

Thanks, Aaron. First, let me mention that, as usual, I'll be making references to certain non-GAAP financial metrics, including operating margin, distributable cash flow, or DCF, and free cash flow. And we've included exhibits to our earnings release that reconcile these metrics to their nearest GAAP measures.

謝謝，Aaron。首先，我要提一下，和往常一樣，我會參考一些非GAAP財務指標，包括營業利益率、可分配現金流（DCF）和自由現金流。我們在財報中附上了這些指標與其最接近的GAAP指標的對照表。

Earlier this morning, we reported first quarter net income of $166 million compared to $221 million in the first quarter of 2021. At a high level, the year-over-year decline primarily resulted from mark-to-market adjustments on commodity hedges in the current period as well as from the favorable impact of winter storms on our 2021 results.

今天早上，我們公佈了第一季淨收入為 1.66 億美元，而 2021 年第一季為 2.21 億美元。從高點來看，年減主要是由於本期商品對沖的按市價調整以及冬季風暴對我們 2021 年業績的有利影響。

Adjusted earnings per unit for the quarter, which excludes the impact of mark-to-market adjustments, was $1.10, exceeding our guidance for the quarter of $1.02 primarily due to the impact of higher commodity prices and our tender revenue and product gains as well as higher-than-expected refined product shipments.

本季度調整後每單位收益（不包括按市價調整的影響）為 1.10 美元，超過了我們對本季度的預期 1.02 美元，這主要歸因於大宗商品價格上漲以及我們的招標收入和產品收益以及成品油出貨量高於預期的影響。

DCF for the quarter of $265 million was $11 million lower than last year primarily due to the favorable impact on the prior year results of the 2021 winter storms just mentioned. As a reminder, we estimated a favorable impact of about $25 million from those storms last year.

本季的現金流折舊為2.65億美元，較去年同期減少1,100萬美元，主要原因是剛才提到的2021年冬季風暴對上年業績產生了有利影響。需要提醒的是，我們去年估計這些風暴帶來的有利影響約為2500萬美元。

Free cash flow for the quarter was $240 million, resulting in free cash flow after distributions of about $19 million. A detailed description of quarter-over-quarter variances is available in the earnings release we issued this morning. So as usual, I'll just touch on a few highlights of the quarterly results.

本季自由現金流為2.4億美元，分配後自由現金流約1,900萬美元。季度環比差異的詳細說明請參閱我們今天上午發布的財報。因此，和往常一樣，我只想簡單介紹季度業績的幾個亮點。

Starting with our refined products segment. Operating margin of $235 million was approximately 10% lower than the '21 period mainly due to the mark-to-market adjustments I already mentioned. Our fee-based refined products business actually increased between periods. As we've seen throughout the past year, we continue to benefit from overall demand recovery as life has gotten more and more back to normal, along with additional contributions from our Texas expansion projects. Overall, we saw an 11% increase in total refined transportation volumes relative to the prior year period.

首先從我們的成品油業務開始。 2.35億美元的營業利潤率比2021年同期下降了約10%，這主要是由於我之前提到的以市價計價的調整。我們的收費型成品油業務實際上在各個時期都有所成長。正如我們在過去一年中所看到的，隨著生活逐漸恢復正常，我們繼續受益於整體需求的復甦，以及我們德州擴建計畫的額外貢獻。整體而言，我們的成品油運輸總量與去年同期相比成長了11%。

Average transportation rates were slightly lower as a higher proportion of short-haul shipments, which move at a lower tariff, more than offset midyear 2021 tariff increases. As we've noted before, we expect this trend to continue throughout the year mainly due to the final ramp of commitments on our East Houston-to-Hearne project to move at a shorter distance and at a lower rate than our average shipment.

平均運輸費率略有下降，因為短程貨運量佔比較高，且運費較低，抵銷了2021年年中運費上漲的影響。正如我們之前所指出的，我們預計這一趨勢將持續全年，這主要是因為我們東休士頓至赫恩計畫的承運量最終增加，運輸距離更短，運費也低於我們的平均水平。

Operating expenses for the refined products segment decreased slightly between periods, a benefit from more favorable product overages, which reduced operating expenses, more than offset other expense increases we experienced this quarter, including higher power costs, which were higher primarily due to the benefit in the prior year from gains on power hedges, again in connection with the winter storms I already mentioned.

煉油產品部門的營運費用在各期間略有下降，這得益於更有利的產品過剩，從而降低了營運費用，這足以抵消我們本季度經歷的其他費用增加，包括更高的電力成本，這主要是由於前一年從電力對沖收益中獲得的收益，這又與我已經提到的冬季風暴有關。

Equity earnings decreased due to the sale of a portion of our interest in our Pasadena joint venture. You'll recall that, that sale occurred in April of last year. So this should be the last time we need to mention this variance.

股權收益的減少是由於我們出售了帕薩迪納合資公司的部分股權。您還記得，那筆出售發生在去年4月。所以這應該是我們上一次需要提及這個差異了。

Product margin, the largest variance for the quarter, decreased between periods. As already noted, this was due to unrealized losses on our hedging activities in the current period as a result of the recent increase in commodity prices versus unrealized gains in the prior year.

產品利潤率是本季最大的差異，且各期間內有所下降。如前所述，這是由於近期商品價格上漲導致本期對沖活動產生了未實現損失，而去年同期則出現了未實現收益。

With respect to our gas liquids blending sales, our realized margins actually increased year-over-year to about $0.40 per gallon versus closer to $0.30 per gallon in the prior year period.

就我們的氣液混合銷售而言，我們的實現利潤實際上同比增長至約每加侖 0.40 美元，而去年同期為每加侖 0.30 美元左右。

Turning to our crude oil business. First quarter operating margin was approximately $104 million, down 5% from the same period last year. Longhorn volumes averaged about 235,000 barrels per day during both periods, while we benefited from the higher average rate during the recent quarter due to the mix of customer volumes moved during the period.

談到我們的原油業務。第一季營業利潤約1.04億美元，較去年同期下降5%。長角牛原油在兩個季度的平均日產量約為23.5萬桶，而最近一個季度的平均產量較高，這得益於當季客戶量的變化。

On our Houston distribution system, lower tariff shipments were offset by higher terminal throughput fees as more customers elected to use the simplified pricing structure for our services within the Houston area.

在我們的休士頓配送系統中，較低的關稅運輸量被較高的終端吞吐量費用所抵消，因為更多的客戶選擇在休士頓地區使用我們服務的簡化定價結構。

We've seen growing customer interest in such simplified pricing arrangements, with the result that even though we have added connections to the HDS and the volume of physical barrels we moved has increased, the resulting incremental revenues are showing up as terminal throughput fees rather than as transportation revenues that are reflected in our transportation statistics.

我們看到客戶對這種簡化定價安排的興趣日益濃厚，結果儘管我們增加了與 HDS 的連接，並且運輸的實體桶數量也增加了，但由此產生的增量收入卻顯示為終端吞吐量費，而不是反映在我們的運輸統計數據中的運輸收入。

So to be clear, while this change impacts our reported volumes, such that our HDS volumes for the year will be different from our original guidance, this change really just reflects a change in which bucket the related revenue falls in.

因此需要明確的是，雖然這項變更會影響我們報告的銷售量，以至於我們今年的 HDS 銷售將與我們最初的預期不同，但這項變更實際上只是反映了相關收入所屬類別的變化。

Looking briefly at expenses, although operating expenses for the crude oil segment declined only slightly, I'll note that the '21 period also benefited from the winter storm-related power hedge gains already mentioned. Lower integrity spending and lower pipeline rental costs more than offset the relatively higher power expense in the current period.

簡單回顧一下費用支出，雖然原油部門的營運費用僅略有下降，但我注意到，21年期間也受益於上文提到的冬季風暴相關的電力對沖收益。完整性支出和管道租賃成本的降低足以抵銷本期相對較高的電力支出。

Moving on to our crude oil joint ventures. BridgeTex volumes were approximately 285,000 barrels per day in the first quarter of '22, down from nearly 300,000 barrels per day in 2021 partially due to the timing of when our committed shippers have elected to move volumes under their commitments, while Saddlehorn volumes increased to more than 220,000 barrels per day compared to approximately 180,000 barrels per day the year before primarily driven by the ramp-up of new commitments associated with the pipeline's expansion.

再來說說我們的原油合資企業。 2022年第一季度，BridgeTex的原油日產量約為28.5萬桶，低於2021年的近30萬桶，部分原因是我們承諾的承運商選擇按承諾運輸原油的時間安排。而Saddlehorn的原油日產量則從前一年的約18萬桶增至22萬桶以上，這主要得益於與管道擴建相關的新承諾的增加。

I did also want to point out that we recognized additional deficiency revenue for both BridgeTex and Double Eagle pipelines during the quarter, which more than offset lower average rates on Saddlehorn, resulting in a slight increase in overall equity earnings for the crude oil segment.

我還想指出的是，我們在本季度確認了 BridgeTex 和 Double Eagle 管道的額外虧空收入，這足以抵消 Saddlehorn 較低的平均費率，從而導致原油部門的整體股權收益略有增加。

It's important to note that although this recognition of the efficiency of revenue results in higher equity earnings, associated cash payments were already received from customers in prior periods and our proportionate share of those payments were distributed to us by our joint ventures and recognized by us as DCF at that time.

值得注意的是，儘管這種對收入效率的認可會帶來更高的股權收益，但相關的現金支付已在前期從客戶處收到，而我們的合資企業已將相應份額的這些支付分配給我們，並在當時被我們確認為 DCF。

Just a few other items I would like to touch on. First, G&A expense increased $18 million between periods primarily due to higher incentive compensation costs related to the recent retirement of our former CEO, which resulted in an acceleration of the expense associated with his outstanding incentive comp awards. In addition, we also reported higher incentive comp expense overall just due to Magellan's improved financial results.

我還想談幾點。首先，一般及行政費用（G&A）在各期間增加了1800萬美元，這主要是由於我們前任執行長近期退休導致激勵薪酬成本增加，這導致與其未償激勵薪酬相關的費用增加。此外，由於麥哲倫財務表現改善，我們報告的激勵薪酬支出整體也出現了成長。

Net interest expense increased slightly during the current quarter primarily due to a higher average debt balance. As of March 31, the face value of our outstanding debt was $5.3 billion, with the weighted average interest rate on that debt of about 4.2%.

本季淨利息支出略有增加，主要原因是平均債務餘額增加。截至3月31日，我們未償還債務的面值為53億美元，該債務的加權平均利率約為4.2%。

Our leverage ratio at the end of the quarter was 3.65x for compliance purposes, which incorporates the gain we realized on the sale of part of our interest in Pasadena in 2021. Excluding that gain, leverage would have been a little over 3.8x.

出於合規目的，我們在本季末的槓桿率為 3.65 倍，其中包括我們在 2021 年出售帕薩迪納部分權益所獲得的收益。如果不包括該收益，槓桿率將略高於 3.8 倍。

And that brings us to the last item I'll touch on today, which is capital allocation. As you've heard us say before, we remain committed to maintaining the financial discipline we are known for while delivering long-term value for our investors through a combination of capital investments, cash distributions and equity repurchases. During the first quarter, we repurchased over 1 million units at an average purchase price of just under $48 for a total spend of $50 million, bringing total repurchases since inception to 17.5 million units for $850 million.

這就引出了我今天要談的最後一點，那就是資本配置。正如大家之前所說，我們將繼續致力於維護我們一貫的財務紀律，同時透過資本投資、現金分配和股權回購等方式為投資者創造長期價值。第一季度，我們以略低於48美元的平均購買價格回購了超過100萬股股票，總支出達5,000萬美元，使公司自成立以來的總回購量達到1,750萬股，總支出達8.5億美元。

As previously stated, we currently expect free cash flow after distributions to generally be used to repurchase our equity. Of course, as we are always careful to note, timing, price and volume of the unit repurchases will depend on a number of factors, including expected expansion capital spending, free cash flow available, balance sheet metrics, legal and regulatory requirements as well as market conditions and the trading price of our equity.

如前所述，我們目前預計分配後的自由現金流將主要用於回購我們的股權。當然，正如我們始終謹慎指出的那樣，回購股權的時間、價格和數量將取決於多種因素，包括預期的擴張資本支出、可用的自由現金流、資產負債表指標、法律和監管要求以及市場狀況和我們股權的交易價格。

In particular, I'll note that we remain committed to our long-standing 4x leverage limit and also, that the timing of the proceeds from the independent terminal sale remains subject to the government review process, which we believe is nearing completion.

特別是，我要指出的是，我們仍然致力於長期的 4 倍槓桿限制，而且獨立終端銷售收益的時間仍然取決於政府審查程序，我們認為該程序已接近完成。

And with that, I'll turn the call back over to Aaron.

說完這些，我將把電話轉回給亞倫。

Thank you, Jeff. Considering our better-than-expected first quarter results as well as our outlook for the remainder of the year, we have increased our 2022 DCF guidance by $15 million to $1.09 billion. As everyone knows, the commodity pricing environment is higher than originally expected for the year, which has benefited the value of our product overages, as Jeff just noted. One might naturally expect our butane blending margins to also benefit from the increase in commodity prices. However, we're still forecasting an average blending margin of about $0.40 per gallon for the full year.

謝謝，傑夫。考慮到我們第一季業績好於預期以及今年剩餘時間的展望，我們將2022年DCF指引上調了1500萬美元，達到10.9億美元。眾所周知，今年的大宗商品價格環境高於最初的預期，正如傑夫剛才提到的，這有利於我們產品過剩的價值。人們自然會預期，我們的丁烷混合利潤率也會受益於大宗商品價格的上漲。然而，我們仍然預測全年平均混合利潤率約為每加侖0.40美元。

A significant reason for the muted impact of higher prices on our blending business is that we had already hedged margins for most of our spring blending activity before most of the run-up in prices had occurred. In addition, as we discussed a few weeks ago at our Analyst Day, the basis differential for gasoline sold in our Mid-Continent markets has been quite unfavorable recently and has resulted in lower net margins than we had originally expected.

油價上漲對我們調合業務影響不大的一個重要原因是，在油價大幅上漲之前，我們已經對大部分春季調合業務的利潤進行了對沖。此外，正如我們幾週前在分析師日討論的那樣，近期我們在美國中部大陸市場銷售的汽油基差相當不利，導致淨利潤率低於我們最初的預期。

Although we utilize futures contracts to hedge most of the product margin exposure related to our liquids blending activity, our ability to hedge Mid-Continent basis differentials efficiently is limited. And so we are generally subject to those differentials at the time we actually sell the blended gasoline, which, of course, means lower net margins when differentials are as unfavorable as they have been lately.

雖然我們利用期貨合約對沖了大部分與液體汽油調合業務相關的產品利潤風險，但我們有效對沖中部地區基差的能力有限。因此，我們通常在實際銷售調合汽油時會受到這些基差的影響，這當然意味著，當基差像最近這樣不利時，淨利潤會更低。

For the year, these lower near-term margins are expected to be essentially offset by higher margins for the fall blending season. We have made significant progress locking in fall blending margins at this point, with about 80% of expected fall activity hedged at margins of around $0.50 per gallon. Given the attractive margins currently available, we've also started hedging next spring as well, with about 40% of our spring 2023 activity hedged at margins of about $0.60 per gallon. Of note, these margin estimates assume the basis differential returns to be more in line with historical trends as the year progresses.

今年，這些較低的近期利潤率預計將基本被秋季調油季的較高利潤率所抵消。目前，我們在鎖定秋季調油利潤率方面已取得重大進展，約80%的預期秋季活動已對沖，利潤率約為每加侖0.50美元。鑑於目前可獲得的利潤率頗具吸引力，我們也已開始在明年春季進行對沖，約40%的2023年春季活動已對沖，利潤率約為每加侖0.60美元。值得注意的是，這些利潤率估算假設基差收益在未來一年內將更符合歷史趨勢。

With our higher overall DCF guidance, we now expect distribution coverage of 1.24x for 2022, which represents more than $200 million of excess cash. Combined with the $435 million of proceeds we expect to receive in the next month or so from the pending sale of our independent terminals, we should have significant cash flow available to create additional value for investors, consistent with our capital allocation priorities.

鑑於我們上調了整體現金流折現率指引，我們目前預計2022年的股利分配覆蓋率將達到1.24倍，這意味著我們將擁有超過2億美元的超額現金。加上我們預計在下個月左右出售獨立終端後獲得的4.35億美元收益，我們應該擁有充足的現金流，能夠為投資者創造更多價值，這與我們的資本配置重點一致。

As Jeff previously mentioned, we currently expect free cash flow after distributions to generally be used to repurchase our equity. However, we also continue to pursue low-risk expansion capital projects that meet or exceed our 6x to 8x EBITDA multiple threshold to create future value for our investors. Based on projects already committed, we now expect to spend approximately $70 million in 2022 on expansion capital. This estimate is $20 million higher than last quarter, in part due to the addition of a new investment to further improve connectivity of our Cushing crude oil terminal.

正如 Jeff 之前提到的，我們目前預計分配後的自由現金流將主要用於回購我們的股權。不過，我們也會繼續推動符合或超過 6 倍至 8 倍 EBITDA 倍數門檻的低風險擴張資本項目，以期為投資者創造未來價值。基於已承諾的項目，我們目前預計 2022 年擴張資本支出約為 7,000 萬美元。這項預估比上季高出 2,000 萬美元，部分原因是新增了一項投資，用於進一步改善庫欣原油碼頭的連通性。

We also launched an open season last week for a potential 15,000 barrel per day expansion of our Texas refined products pipeline to El Paso. From El Paso, the gasoline and diesel fuel can be further distributed to New Mexico through our system or continue on to Arizona or Mexico via connections to third-party pipelines that deliver to those important markets. If we end up moving forward with this project, which we have not yet included in our updated spending estimate for the year, we expect the expansion to cost around $25 million and to be completed by mid-2023.

上週，我們也啟動了一項開放期，計畫將德州至埃爾帕索的成品油管擴建至每日1.5萬桶。從埃爾帕索出發，汽油和柴油可以透過我們的系統進一步輸送到新墨西哥州，或透過連接第三方管道繼續輸送到亞利桑那州或墨西哥，這些管道將輸送到這些重要的市場。如果我們最終推進這個項目（我們尚未將其納入年度最新支出預算），我們預計擴建工程將耗資約2500萬美元，並將於2023年中期完工。

This potential opportunity is consistent with the theme of other pipeline expansions currently underway, which have also been designed to fill current supply gaps created by changing market conditions, mainly resulting from recent closures or repurposing of refineries within our asset footprint. Because of the extensive nature of our system, we were able to satisfy market demand by sourcing product from a broad set of origin points, demonstrating the flexibility of our refined product system that can access nearly 50% of our nation's refining capacity.

這項潛在機會與目前正在進行的其他管道擴建項目的主題一致，這些項目也旨在填補市場變化造成的供應缺口，這些缺口主要源於我們資產覆蓋範圍內近期關閉或重新規劃的煉油廠。由於我們系統覆蓋範圍廣泛，我們能夠透過從廣泛的產地採購產品來滿足市場需求，這體現了我們成品油系統的靈活性，能夠覆蓋全國近50%的煉油產能。

Along those lines, our current refined products pipeline expansion to Albuquerque is expected to start up next week after a short delay related to some additional pump work that needed -- that was needed. In addition, our Kansas to Colorado expansion is progressing and still expected to be in service by the end of the year to help meet demand in the Denver market.

除此之外，我們目前通往阿爾伯克基的成品油管道擴建項目預計將於下週投產，此前由於一些必要的額外泵送工作，該項目曾短暫延遲。此外，我們堪薩斯至科羅拉多州的管道擴建項目正在推進中，預計仍將於年底投入使用，以滿足丹佛市場的需求。

That concludes our prepared remarks. Operator, we're ready to open the call for questions.

我們的準備好的演講到此結束。接線員，我們現在可以開始提問了。

(Operator Instructions) Our first question comes from the line of Praneeth Satish with Wells Fargo.

（操作員指示）我們的第一個問題來自富國銀行的 Praneeth Satish。

I guess I just wanted to see if I could get an update on the potential project to reverse Longhorn, I guess, what feedback have you received from customers and shippers so far. And if you do get enough contracts to move forward, but one, when would you expect more information on that, and two, do you anticipate any significant permitting challenges?

我只是想了解一下關於「逆轉Longhorn」計畫的最新進展。到目前為止，您從客戶和托運人那裡得到了什麼回饋？如果您確實獲得了足夠的合約來推進項目，第一，您預計什麼時候能獲得更多資訊？第二，您預計會遇到哪些重大的授權挑戰？

Starting with the first part of your question, we continue to evaluate the potential to reverse Longhorn. We don't have a significant update for you today as what we really want to see and understand is what does the market need and want. A first step to that, in some respects, is to understand what kind of demand we get for this open season we have out there that we started last week, where we can do the 15,000 barrel-a-day expansion with our current assets without the need to reverse Longhorn. But depending upon the demand, that may or may not bring the Longhorn reversal potential forward.

從您問題的第一部分開始，我們將繼續評估逆轉Longhorn產量的可能性。今天我們不會發布重要的更新，因為我們真正想了解的是市場的需求。從某種程度上來說，第一步是了解我們上週開始的這個開放期的需求情況，這樣我們就可以以現有資產實現每天1.5萬桶的產能擴張，而無需逆轉Longhorn產量。但這取決於需求情況，這可能會或可能不會提前實現Longhorn產量逆轉的可能性。

Now to the second part of your question regarding regulatory hurdles, to reverse the line from crude back to refined products, and recall that the line was originally in refined products, we do expect a permitting process that we're going to have to go through. And that's one of the things that we continue to evaluate.

現在回到你問題的第二部分，關於監管障礙。要將原油供應線恢復到成品油供應線，回想一下，這條供應線原本是成品油供應線，我們預計需要經過一個審批程序。這是我們持續評估的事項之一。

So the reversal of Longhorn isn't something that we can just sort of snap our fingers and make happen overnight. It's something that we'll need to evolve. But a first step in that is to really evaluate what's the demand for refined products out West and is it needed.

所以，扭轉長角牛油的局面並非彈指一揮間就能實現的。這需要我們不斷改進。但第一步是真正評估西部地區對精煉油的需求，以及這種需求是否必要。

Got it. And maybe just a follow-up on this, on Longhorn. I mean it sounds like the whole process to convert Longhorn, if you did it, it would take a while. And at the same time, I mean, production is starting to pick up in the Permian. Permian oil could kind of tighten back up in the 2025 time frame.

明白了。關於長角牛，或許可以跟進一下。我的意思是，聽起來改造長角牛的整個過程，如果真的要改造的話，需要一段時間。同時，二疊紀盆地的產量正開始回升。到2025年，二疊紀盆地的石油儲量可能會再次收緊。

So is it fair to assume that if you did convert Longhorn, you would do it so that you would earn a higher return than if you kept it in crude service and potentially benefited in 2025 from contracting at, say, $1.50 or $1.75?

那麼，是否可以公平地假設，如果您確實轉換了 Longhorn，那麼您這樣做是為了獲得比繼續將其用於原油服務更高的回報，並且可能在 2025 年以 1.50 美元或 1.75 美元的價格簽訂合約並從中受益？

Yes. Certainly, part of the analysis is, Longhorn, it's valuable today in the service that it's in. So if we make the decision to reverse it, it would be along the lines of what you just described. We see more value in reversing it than keeping it in its current service. So you're right, that's part of the overall valuation.

是的。當然，部分分析是，Longhorn 目前在其服務中仍然很有價值。所以，如果我們決定撤銷它，情況會和你剛才描述的情況類似。我們認為撤銷它比保留它在現有服務中更有價值。所以你說得對，這是整體估值的一部分。

And certainly, the -- with Permian production increasing, you're seeing some fundamentals, I think, improve in the Permian Basin for pipeline transportation. That's part of the equation, is evaluating where do we think it's going to be and what creates the most value for us.

當然，隨著二疊紀產量的增加，我認為二疊紀盆地的管道運輸基本面正在改善。這是方程式的一部分，我們正在評估我們認為它將走向何方，以及什麼能為我們創造最大的價值。

Our next question comes from the line of Theresa Chen with Barclays.

我們的下一個問題來自巴克萊銀行的 Theresa Chen。

I first wanted to ask about the FTC process as far as the Southeast terminal sales go. How is that going? And related to your comments about using excess cash flow towards repurchases, especially once you get the proceeds, can you give us a sense of the pace of repurchases that you plan?

我首先想問關於東南終端銷售的聯邦貿易委員會（FTC）流程。進展如何？關於您提到的利用過剩現金流進行回購，尤其是在獲得收益後，能否透露您計劃的回購速度？

Well, Theresa, I'm going to start with your first question. The FTC process has been a long one. It started last year. The good news is, is we're hopeful that we're approaching the end of that process, and it's consistent with -- I mean, all the guidance we gave this year assumed that we owned the independent terminals through the middle part of the year and we seem to be on that track. So we think we're reaching the end of that process, and we're hopeful that we're going to close, as I said, in the next month or so.

特蕾莎，我先回答你的第一個問題。聯邦貿易委員會的審批流程很長，從去年就開始了。好消息是，我們希望這個過程即將結束，而且這與——我的意思是，我們今年給出的所有指導都假設我們在年中之前擁有獨立航站樓，而我們似乎正朝著這個方向發展。所以我們認為這個過程即將結束，我們希望像我之前說的，在下個月左右完成。

In terms of the pace of buybacks, the pace is one that -- it will depend. It will depend on where our units are trading. It will depend on what growth capital projects we would come up with. So we don't have sort of a defined pace to tell you, Theresa. It will be x amount over these amount of months.

至於回購的速度，這個速度取決於具體情況。這取決於我們各部門的營運情況，也取決於我們計劃推出哪些成長資本項目。所以，Theresa，我們沒有一個明確的回購速度可以告訴你。回購速度會是這幾個月的x倍。

All I would tell you is, obviously, we're going to generate free cash flow just from our operations, and then we're going to have these proceeds on top of it. So we're going to have ample opportunity to make the decisions that we need to make, in terms of buying our units back. But I don't have a prescribed pace for you to think about. All I would suggest is that you consider the amount of proceeds that we have and our ability to buy back units, contingent upon all the caveats that we put around it.

我想告訴你的是，顯然，我們僅憑營運就能產生自由現金流，然後我們還會在此基礎上獲得這些收益。因此，在回購股票方面，我們將有充足的機會做出必要的決定。但我沒有一個固定的節奏讓你參考。我建議你考慮我們擁有的收益金額以及我們回購股票的能力，這取決於我們設定的所有限制條件。

Understood. And on the refined products side, clearly, you spend a lot of time going through the various projects and the debottlenecking opportunities and additional capacity westward, including your service to Albuquerque, the expansion currently under contemplation, seeking commitments to El Paso by mid-2023 as well as additional capacity towards the Colorado markets.

明白。在成品油方面，顯然您花了很多時間研究各種項目、突破瓶頸的機會以及向西拓展產能，包括您服務阿爾伯克基的項目，目前正在考慮的擴建項目，尋求在2023年中期之前在埃爾帕索獲得產能承諾，以及增加科羅拉多市場的產能。

One of your large-cap MLP competitors has similar projects out there, to very similar markets or exact markets. I'm just curious, as you look towards the medium term, do you think that there could be some overcrowding in these spaces, such that the tariff or the commitments could be competed away. How should we think about that?

您的一家大型MLP競爭對手在非常相似的市場或完全相同的市場中也有類似的項目。我很好奇，您展望中期，是否認為這些領域可能會出現過度擁擠，以至於資費或承諾可能會被競爭所抵消？我們該如何看待這個問題？

Well, in terms of competing projects, we think our expansions that we have into El Paso, specifically, we're considering those competing projects that are out there as are the folks making commitments to us. So it's a known quantity in terms of what we're each trying to do. We still think there's a lot of demand going west. So we're still very optimistic about getting the commitments that we will need to expand our pipeline.

嗯，就競爭項目而言，特別是我們在埃爾帕索的擴張項目，我們正在考慮那些現有的競爭項目，以及那些向我們做出承諾的買家。所以，就我們各自正在努力做的事情而言，這是一個已知的數字。我們仍然認為西部地區的需求很大。因此，我們仍然非常樂觀地認為，我們將獲得擴大管道所需的承諾。

And then if you look at the markets themselves, they don't overlap perfectly. If you put them on a map, they're in slightly different geographic areas. But we're not ignoring the fact that there's potentially new capacity coming into these markets, which can access all the way up to Western Colorado. So we're taking that into account.

如果你觀察一下這些市場本身，你會發現它們並非完全重疊。如果你把它們放在地圖上，你會發現它們位於略有不同的地理區域。但我們並沒有忽略一個事實，那就是這些市場可能會有新的運能進入，這些運能可以一路延伸到科羅拉多州西部。所以我們會考慮到這一點。

We think if you look at the growth that's happening in Colorado overall, if you look at the growth in volume that's occurring in El Paso, Mexico, points further west of that, look at the growth that can occur within the even the Permian, I don't think we're at a point where we're overly worried about too much capacity as we move forward. We still see quite a bit of opportunity out there. But we'll have to see.

我們認為，如果你看看科羅拉多州整體的成長情況，看看埃爾帕索、墨西哥以及更西邊地區的產量成長情況，再看看二疊紀盆地可能出現的成長情況，我認為我們目前還不需要過度擔心未來產能過剩。我們仍然看到不少機會，但我們還需拭目以待。

Got it. And lastly, just as we think about product balances and shifts, and specifically the Gulf Coast, I was wondering, one, are you connected to the Lyondell Houston refinery, and if that eventually shuts down, will that be taking some volumes off of your refined product system.

明白了。最後，正如我們考慮產品平衡和轉移，特別是墨西哥灣沿岸地區時，我想知道，第一，你們是否與利安德爾休斯頓煉油廠有聯繫？如果該煉油廠最終關閉，這是否會減少你們成品油系統的產量？

And two, as the Gulf Coast seems to be the incremental supplier of clean products, especially diesel, to international markets that seem to be tighter and tighter given the Russian distillates coming off the market, do you see kind of like a pull away from your system that pipes to the Mid-Con and beyond in favor of exports? How should we think about that?

第二，墨西哥灣沿岸地區似乎是清潔能源產品（尤其是柴油）的增量供應地，隨著俄羅斯餾分油退出市場，國際市場的供應似乎越來越緊張。您是否認為，您的系統是否會受到某種拉動，轉向中西部地區及其他地區，轉而支持出口？我們該如何看待這個問題？

So let's take the first part. We do have a connection to the Lyondell refinery. But what I would say is we don't have a lot of exposure. So I wouldn't draw any conclusions from as that refinery shuts down, that, that should mean something negative for our assets because frankly, we're connected to a bunch of other refineries and the demand that we have at the end of our pipe is the demand. So I don't foresee any significant risks related specifically to Lyondell.

那麼，我們先來談談第一部分。我們確實與利安德爾煉油廠有聯繫。但我想說的是，我們在這方面的風險敞口並不大。因此，我不會就該煉油廠的關閉得出結論，認為這會對我們的資產產生負面影響，因為坦白說，我們與許多其他煉油廠都有聯繫，而我們管道末端的需求就是需求。因此，我預計不會有任何與利安德爾相關的重大風險。

Now to your question about how should we think about export markets. Obviously, things are really tight with diesel. The world demand and the draw from the Gulf Coast is heavy for diesel demand. So that impacts the price of the Gulf Coast, which draw -- tends to draw barrels to the Gulf Coast for sure.

現在回答你關於我們應該如何看待出口市場的問題。顯然，柴油供應非常緊張。全球需求以及墨西哥灣沿岸地區的柴油需求都很大。這影響了墨西哥灣沿岸地區的價格，而墨西哥灣沿岸地區的石油需求往往會吸引原油流向墨西哥灣沿岸地區。

But you're also talking about many of the markets we're connected to are still premium markets that have to be supplied. So it all just starts working out in the netback equation for the refiners. And if one refiner wants to ship more barrels overseas, the diesel, the price has to change and the markets have to adapt because the reality is, the demand is still there and someone has to fill it.

但您也提到，我們所關聯的許多市場仍然是高端市場，需要供應。所以，這一切才剛開始在煉油廠的淨回值方程式中發揮作用。如果煉油廠想將更多柴油運往海外，價格就必須發生變化，市場也必須做出調整，因為現實情況是，需求仍然存在，總得有人來滿足。

The beauty of our system is really the flexibility that we have, Gulf Coast origin, up to the group potentially, which hasn't made a lot of sense of late like it did last year because of exactly what you're talking about. There's more demand in the Gulf Coast for products. So we're seeing fewer moves from the Gulf Coast, up into the Mid-Continent.

我們系統的優點在於彈性，從墨西哥灣沿岸出貨，到整個集團都有可能出貨。最近，由於您所說的原因，這種情況不像去年那麼合理。墨西哥灣沿岸的產品需求較大。因此，我們看到從墨西哥灣沿岸到美國中部大陸的運輸量減少了。

But the opposite can also occur, to some degree, where it actually draws. As Gulf Coast refiners export more, it can draw barrels from the Mid-Continent to places in Texas and even potentially further west. So there's a bit of a balance there, that the thing I would keep in mind is, at the end of our pipes, we're serving the demand that exists and that demand is not going away.

但在某種程度上，相反的情況也可能出現，尤其是在實際的輸送管道。隨著墨西哥灣沿岸煉油廠出口增加，它可以將原油從美國中部大陸輸送到德克薩斯州，甚至可能更西邊的地方。所以這裡面存在著一種平衡，我要記住的是，在我們管道的末端，我們滿足的是現有需求，而這種需求不會消失。

So as the supplies shift and given the breadth of our system, we're able to adapt to that and keep those markets supplied from many different origins. We're not just, of course, single-threaded to the Gulf Coast. So that's the -- really one of the strengths of our system. Did that answer your question?

因此，隨著供應的變化，鑑於我們系統的廣度，我們能夠適應這種情況，並從許多不同的產地為這些市場提供供應。當然，我們並非只專注於墨西哥灣沿岸地區。所以，這確實是我們系統的優勢之一。這回答了你的問題嗎？

Yes. Thank you very much for the thorough responses.

是的。非常感謝您詳盡的回覆。

(Operator Instructions) Our next question comes from the line of Jeremy Tonet with JPMorgan.

（操作員指示）我們的下一個問題來自摩根大通的 Jeremy Tonet。

I just wanted to pivot a little bit here and talk about, I guess, your splitter here, where I think that the contract for the Corpus Christi condensate splitter is coming up in the not-too-distant future. And just wondering how you think about that asset at this point and when that expires, would you look to do another tolling arrangement, would you look to sell the asset, would you use the asset yourself.

我想稍微轉換一下話題，談談你的分離器。我認為科珀斯克里斯蒂凝析油分離器的合約不久後就會到期。我想知道你目前對這項資產有何看法？合約到期後，你會考慮再做一筆代工交易嗎？你會考慮出售這項資產嗎？還是你會自己使用它？

It seems like there's some pretty good economics there with diesel. And just wondering how you think about your options at that point.

看來柴油的經濟效益相當不錯。我想知道您目前對其他選擇有何看法。

We think we have a pretty good slate of options, given that, for the most part, we don't like to take a lot of commodity risk where it's not justified or we don't have expertise per se. So we recently did a tolling deal. Our customer pays us a fee, and then they're arranging the crude oil and then taking the offtake and making money doing so.

我們認為我們有很多不錯的選擇，因為在大多數情況下，我們不願意在沒有合理性或我們缺乏專業知識的情況下承擔過多的商品風險。所以我們最近做了一個代加工交易。我們的客戶向我們支付一定費用，然後他們安排原油，然後承購原油，並從中獲利。

So if we can toll it in a reasonable way, that's probably our preferred option, frankly. But at the same time, we're also developing a lot more expertise through the years. So if it came to we needed to run it, we could probably do that. Even though that's not our first -- maybe our first choice, I think we have the capability to do that if we chose to do it.

所以，坦白說，如果我們能以合理的方式收費，這可能是我們的首選。但同時，我們這些年來也在累積更多的專業知識。所以，如果我們需要經營它，我們或許可以這麼做。雖然這不是我們的第一選擇——也許是我們的首選，但我認為，如果我們選擇這樣做，我們有能力做到。

So from the splitter side of things, how we think about it is the asset has gone up in value in terms of the money that you can make and the margin that is available with that asset. So we should have a number of options, including just renewing the toll that we have right now, to sort of sustain the economic benefit of that splitter to us. Which path we would take is a little uncertain right now. We just don't know. We're not at the point where decisions have been made, but we're not overly concerned about continuing to drive significant value from the splitter.

所以從分流器的角度來看，我們認為，就可賺取的利潤和可獲得的利潤而言，資產的價值已經上升。因此，我們應該有多種選擇，包括延長目前的收費標準，以某種方式維持分流器為我們帶來的經濟效益。目前，我們究竟會選擇哪條路還不太確定。我們根本不知道。我們還沒有做出決定，但我們並不太擔心能否繼續從分流器中獲得可觀的價值。

Got it. That's helpful context there. And maybe just kind of taking a step back in overall demand recovery. If you could just expand a bit more, I guess, on what trends you're seeing out there currently in your markets and pace of demand recovery and expectations over the balance of this year or further, if you're willing to share. Just trying to get a sense for how that looks for you.

明白了。這很有幫助。也許整體需求復甦放緩。如果您願意分享的話，能否進一步闡述您目前在市場上看到的趨勢、需求復甦的速度以及對今年餘下時間或未來一段時間的預期？只是想了解一下您目前的情況。

So you may recall, at the beginning of the year, we gave guidance that we thought, on a year-over-year basis, so 2022 for the year versus 2021 for the year, we expect volumes to increase 4%. And that's still where we expect it to be. So on a serial basis, we expect growth in our refined products volumes. And that growth, of course, is driven by recovery, which we're still seeing in some of our markets and also the contribution from our growth projects that we brought on over the last few years.

大家可能還記得，年初我們給了指引，我們預計2022年的產量將年增（即2021年產量與2022年產量相比）將成長4%。現在我們仍然保持著這個預期。因此，我們預計成品油產量將持續成長。當然，這種成長是由復甦推動的，我們目前在一些市場仍能看到復甦的跡象，同時也得益於我們過去幾年啟動的成長項目。

So we continue to expect growth of year-over-year, about 4%. We've got some markets up in the northern part of our system, frankly, that have been a little slower to recover, but they are recovering. And so we've got a pretty, I think, an optimistic outlook for what our volumes are going to grow this year versus last year.

因此，我們預期年比成長率仍將達到4%左右。坦白說，我們北部地區的一些市場復甦速度稍慢一些，但正在復甦。因此，我認為，我們對今年銷量與去年相比的成長前景相當樂觀。

Our next question comes from the line of Michael Lapides with Goldman Sachs.

我們的下一個問題來自高盛的邁克爾·拉皮德斯。

And again, I mentioned this at the Analyst Day, congrats on the new role. Just a cost question. We all kind of know, and you talk a lot about kind of what the revenue per barrel increases are on both the index and on the competitive side for the refined product system, can you talk to a little bit -- to us a little bit in this kind of high inflationary market what you're expecting cost-wise this year and whether you think it stays elevated that way going into 2023?

我在分析師日上再次提到這一點，祝賀您出任新職位。只是關於成本的問題。我們都知道，您也經常談論每桶收益的成長，無論是指數方面還是成品油系統的競爭方面，您能否稍微談談——在這種高通膨市場中，您對今年的成本預期如何，以及您是否認為到2023年成本是否會保持高位？

Well, it's a good question, Michael, and thank you for the well-wishes as well. Inflation, it's interesting. We see pockets of our business today, where we're seeing some inflation, primarily on labor. Think about our maintenance capital, where we're doing work, hiring contractors. We are seeing some rate inflation there, although I wouldn't raise the alarm bell about the inflation. It's -- we're seeing it, but it's hard for us to really see how much that's going to translate or extrapolate or change from here.

邁克爾，這個問題問得好，也謝謝你的祝福。通貨膨脹，這很有意思。我們目前看到業務中有些環節出現了通貨膨脹，主要是勞動成本。想想我們的維護資本，我們在那裡工作，僱用承包商。我們看到那裡出現了一些通貨膨脹，儘管我不會對通貨膨脹敲響警鐘。我們確實看到了通貨膨脹，但我們很難真正預測這會在多大程度上轉化、推斷或改變現在的情況。

And then when you -- so we're seeing some of it, but again, I wouldn't raise any alarm bells on the expense side. Secondly, you have to combine what's happening on the inflationary front with a lot of the work we're doing to optimize our business. So when you look at overall expense growth for our business, we're shooting to come in well under inflation in total regardless of where that is because we're optimizing our business while, at the same time, experiencing some inflation, that we hope to offset most of.

然後，當你——所以，我們看到了一些，但再次強調，我不會在費用方面敲響任何警鐘。其次，你必須將通膨方面的情況與我們為優化業務所做的大量工作結合。所以，當你看我們業務的整體費用增長時，無論通膨來自哪裡，我們都力爭總體上遠低於通膨水平，因為我們正在優化業務，同時也經歷了一些通膨，我們希望能夠抵消大部分通膨。

So we think we have a good equation for managing our costs as we move forward, even if we do see some inflation in certain parts of our business. So we're not changing our outlook with that. But we're going to have to wait and see to some extent as well how the rest of the year plays out.

因此，我們認為，即使我們業務的某些部分確實出現了通貨膨脹，我們仍然有一個很好的成本管理方案。因此，我們不會因此改變我們的預期。但在某種程度上，我們還需要拭目以待，看看今年剩餘時間的走勢如何。

Mr. Milford, there are no further questions at this time. I'll turn the call back to you. Please continue with your presentation or closing remarks.

米爾福德先生，目前沒有其他問題了。我會把電話轉給您。請繼續您的演講或結束語。

Well, thank you all for your time today and your interest in Magellan. And I hope you guys have a great day.

好的，感謝大家今天的寶貴時間以及對麥哲倫的關注。祝大家今天過得愉快。

That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

今天的電話會議到此結束。感謝您的參與，請您掛斷電話。