Plains GP Holdings LP (PAGP) 2023 Q2 法說會逐字稿

Good morning, and thank you for standing by. Welcome to the PAA and PAGP Second Quarter 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.

早安，感謝您的支持。歡迎參加 PAA 和 PAGP 2023 年第二季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Blake Fernandez, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給今天的發言人、投資者關係副總裁布萊克費爾南德斯 (Blake Fernandez)。請繼續。

Thank you, Michelle. Good morning, and welcome to Plains All American's Second Quarter '23 Earnings Call.

謝謝你，米歇爾。早安，歡迎參加 Plains All American '23 年第二季財報電話會議。

Today's slide presentation is posted on the Investor Relations website under the News and Events section at plains.com, where an audio replay will also be available following today's call. Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on Slide 2. Highlights from the quarter are provided on Slide 3, a condensed consolidating balance sheet for PAGP and other reference materials are located in the appendix.

今天的幻燈片簡報發佈在 plains.com 投資者關係網站的新聞和活動部分下，今天的電話會議後也將提供音訊重播。有關前瞻性陳述和非 GAAP 財務指標的重要揭露請參閱投影片 2。投影片 3 提供了本季的重點內容，PAGP 的簡明合併資產負債表和其他參考資料位於附錄。

Today's call will be hosted by Willie Chiang, Chairman and CEO; and Al Swanson, Executive Vice President and CFO, as well as other members of our management team.

今天的電話會議將由董事長兼執行長 Willie Jiang 主持；執行副總裁兼財務長 Al Swanson 以及我們管理團隊的其他成員。

With that, I will now turn the call over to Willie.

這樣，我現在將把電話轉給威利。

Thank you, Blake. Good morning, everyone, and thanks for joining us. In our release earlier this morning, we announced strong second quarter results, along with the closing of a Permian gathering Bolt-On Acquisition on July 28, and we provided an update on our NGL segment optimization efforts at Fort Saskatchewan. These announcements reflect meaningful progress towards executing on our full year '23 targets and goals.

謝謝你，布萊克。大家早安，感謝您加入我們。在今天早上早些時候發布的新聞稿中，我們宣布了強勁的第二季度業績，以及7 月28 日完成的二疊紀油氣藏Bolt-On 收購，並提供了薩斯喀徹溫堡NGL 部分優化工作的最新情況。這些公告反映了我們在執行 23 年全年目標方面取得的有意義的進展。

As a result, our year-to-date performance and Bolt -- the result of our year-to-date performance and the Bolt-On Acquisition, we now expect to be at the high end of our $2.45 billion to $2.55 billion adjusted EBITDA range for 2023. Our revised outlook also contemplates slightly lower-than-expected Permian production, driven by lower commodity prices and some weather-related impacts that occurred in June and July. A high-level overview of our updated '23 guidance is located on Slide 4, and I will share additional detail in his portion of the call.

因此，我們的年初至今業績和 Bolt（我們年初至今業績和 Bolt-On 收購的結果）現在預計將達到 24.5 億美元至 25.5 億美元調整後 EBITDA 的上限2023 年的產量範圍。我們修訂後的展望還考慮到，由於大宗商品價格下跌以及6 月和7 月發生的一些與天氣相關的影響，二疊紀產量略低於預期。我們更新的 '23 指南的高級概述位於幻燈片 4 上，我將在他的電話會議部分分享更多詳細資訊。

As summarized on Slide 5, our Permian JV acquired the remaining 43% non-operated interest in the OMOG JV from Diamondback Energy via a negotiated transaction for $225 million or approximately $145 million net to Plains' interest, which was funded with excess free cash flow.

如投影片5 所示，我們的二疊紀合資企業透過協商交易以2.25 億美元（相當於Plains 權益淨值約1.45 億美元）從Diamondback Energy 手中收購了OMOG 合資企業剩餘43% 的非經營權益，該權益由超額自由現金流提供資金。

This further aligns us with Diamondback in the core of the Midland Basin and is consistent with our objective of capital discipline and efficient growth, complementing our existing footprint. With regard to updates on our NGL business optimization, a summary of today's announcements are provided on Slide 6.

這進一步使我們與位於米德蘭盆地核心的 Diamondback 保持一致，符合我們資本紀律和高效成長的目標，並補充了我們現有的足跡。關於我們 NGL 業務優化的更新，投影片 6 提供了今天公告的摘要。

In summary, we sanctioned a 30,000 barrel a day Fort Sask Train 1 debottleneck and expansion. We also added connectivity projects to both our Co-Ed and wide-grade gathering pipeline and our Fort Sask fractionation complex, which further integrates and expands our NGL system. We entered into commercial commitments substantially increasing the weighted average contract tenured to 10 years across our Fort Sask fractionation capacity in our Co-Ed pipeline.

總之，我們批准了薩斯克堡 1 號線每天 30,000 桶的產能去瓶頸和擴建。我們還為我們的混合和寬級收集管道以及薩斯克堡分餾綜合體增加了連接項目，這進一步整合和擴展了我們的液化天然氣系統。我們做出了商業承諾，將我們 Co-Ed 管道中薩斯克堡分餾產能的加權平均合約期限大幅延長至 10 年。

Overall, we expect the NGL projects to generate unlevered returns in excess of our hurdle rate on approximately $200 million of investment capital. This multiyear investment fits within our previously communicated expectations for total average annual capital growth -- capital spend of $300 million to $400 million a year net to PAA over the coming years.

總體而言，我們預計 NGL 專案將產生超過我們約 2 億美元投資資本的最低預期回報率的無槓桿回報。這項多年期投資符合我們先前傳達的對平均年資本成長總額的預期——未來幾年 PAA 每年淨資本支出為 3 億至 4 億美元。

Lastly, we have a third-party supply agreement that expires at the end of 2024, which reduces our overall frac spread exposed volumes by approximately 15,000 barrels a day. The combinations of these announcements is expected to be EBITDA neutral in 2025 and beyond in a $0.55 to $0.60 per gallon frac spread environment, with the contributions from the Fort Sask expansion, associated connectivity projects, in Co-Ed pipeline agreements offsetting the expiry of the NGL supply agreement.

最後，我們有一項將於 2024 年底到期的第三方供應協議，這將使我們每天的整體壓裂價差暴露量減少約 15,000 桶。在每加侖壓裂價差為 0.55 至 0.60 美元的環境下，這些公告的組合預計在 2025 年及以後將實現 EBITDA 中性，其中薩斯克堡擴建項目、相關連接項目以及聯合管道協議中的貢獻將抵消液化天然氣供應協議。

Importantly, the end result is a more predictable and durable level of fee-based earnings in our NGL segment underpinned by long-term contracts. Additionally, we're no longer exploring a joint venture and a higher cost expansion of Train 2 at the Fort Sask facility as it did not meet our required return thresholds.

重要的是，最終結果是在長期合約的支持下，我們的 NGL 部門的收費收入水準更加可預測和持久。此外，我們不再探索在薩斯克堡工廠建立合資企業和以更高成本擴大 2 號列車，因為它不符合我們要求的返回閾值。

Before turning the call back over to Al, I want to leave you with 3 messages. First, we've exceeded our EBITDA targets through midyear, and we expect to be at the high end of our full year guidance range. Second, we closed an attractive Permian Bolt-On Acquisition that further improves our Permian footprint in an efficient, disciplined manner. And third, we announced several strategic actions in our NGL segment, which will help improve the long-term durability and the quality of our cash flow stream over time.

在將電話轉回給 Al 之前，我想給您留下 3 條訊息。首先，到年中我們已經超越了 EBITDA 目標，並且我們預計將達到全年指導範圍的高端。其次，我們完成了一項有吸引力的二疊紀螺栓收購，以高效、規範的方式進一步改善我們的二疊紀足跡。第三，我們宣布了 NGL 部門的幾項策略行動，這將有助於隨著時間的推移提高現金流的長期耐用性和品質。

All of these actions align with our goals of remaining capital disciplined, generating multiyear free cash flow, reducing leverage and increasing returns of capital to our unitholders. With that, I'll turn the call over to Al.

所有這些行動都符合我們維持資本紀律、產生多年自由現金流、降低槓桿率和增加單位持有人資本回報的目標。說完，我會把電話轉給阿爾。

Thanks, Willy. We reported a second quarter adjusted EBITDA attributable to PAA of $597 million. This includes benefits from increased volumes across our systems in our crude oil segment. As mentioned on our last call, the NGL segment experienced lower sales volumes as a result of planned turnaround and seasonally weaker demand. Slides 11 and 12 in today's appendix contains walks, which provide more detail on our second quarter performance.

謝謝，威利。我們公佈的第二季調整後 EBITDA 歸屬於 PAA 為 5.97 億美元。這包括我們原油部門系統產量增加所帶來的好處。正如我們在上次電話會議中提到的，由於計劃週轉和季節性需求疲軟，液化天然氣部門的銷售量下降。今天附錄中的幻燈片 11 和 12 包含步行，其中提供了有關我們第二季業績的更多詳細資訊。

An overview of our updated 2023 guidance is located on Slide 7. As a result of business performance in both our crude oil and NGL segments year-to-date, and the partial benefit of the OMOG acquisition, we now expect to be at the high end of our full year adjusted EBITDA guidance of $2.45 billion to $2.55 billion. We continue to expect year-over-year growth in our crude oil segment, driven by Permian tariff volume increases.

我們更新的 2023 年指引概述位於幻燈片 7。由於我們的原油和 NGL 領域今年迄今的業務表現，以及 OMOG 收購的部分收益，我們現在預計將處於最高水平全年調整後EBITDA 指導值為24.5 億美元至25.5 億美元。我們繼續預計，在二疊紀關稅量增加的推動下，我們的原油業務將實現同比增長。

For the NGL segment, we remain highly hedged and do not expect a material impact from the lower frac spreads or Canadian wildfires. Shifting to capital allocation, as illustrated on Slide 8, we remain committed to: one, significant returns of capital to our equity holders, two, continued capital discipline; and three, reducing debt and increasing financial flexibility.

對於液化天然氣領域，我們仍然高度對沖，預計壓裂價差較低或加拿大野火不會產生重大影響。轉向資本配置，如投影片 8 所示，我們仍然致力於：第一，為我們的股東提供可觀的資本回報；第二，持續的資本紀律；第三，減少債務並提高財務靈活性。

For 2023, we expect to generate $2.5 billion in cash flow from operations, $1.6 billion of free cash flow, with $600 million of free cash flow after distributions available for net debt reduction, resulting in year-end leverage below 3.5x. We will continue to self-fund $325 million and $195 million of 2023 investment and maintenance capital net PAA, which is consistent with previous guidance and includes the anticipated capital related to today's NGL announcements. With that, I'll turn the call back to Willy.

到 2023 年，我們預計將產生 25 億美元的營運現金流、16 億美元的自由現金流，以及 6 億美元的分配後自由現金流可用於淨債務削減，從而使年末槓桿率低於 3.5 倍。我們將繼續為 2023 年投資和維護資本淨 PAA 提供 3.25 億美元和 1.95 億美元的自籌資金，這與先前的指導一致，並包括與今天 NGL 公告相關的預期資本。說完，我會把電話轉回給威利。

Thanks, Al. Today's results reflect another quarter of strong execution and we remain very confident in our ability to continue delivering on our goals and initiatives. Macro uncertainty continues to drive volatility in both the crude and NGL markets. However, we previously took steps to proactively mitigate this risk by entering into a combination of short-term crude contracts and hedges in the long-haul crude business, along with our substantial hedge position in our NGL business.

謝謝，艾爾。今天的業績反映了另一個季度的強勁執行力，我們對繼續實現目標和舉措的能力充滿信心。宏觀不確定性持續推動原油和液化天然氣市場的波動。然而，我們先前採取了措施，透過簽訂短期原油合約和長途原油業務的對沖以及我們在液化天然氣業務中的大量對沖頭寸來主動降低這一風險。

Over the long term, Plains remains well positioned as North American supply will continue to be critical to meeting growing global demand. As previously outlined in our capital allocation framework, we remain focused on continuing to meaningfully increase returns of capital to unitholders through targeted multiyear distribution growth. We have a 7.5% distribution yield, significant free cash flow generation and balance sheet strength as shown on Slide 9.

從長遠來看，普萊恩斯仍處於有利地位，因為北美供應將繼續對滿足不斷增長的全球需求至關重要。正如先前在我們的資本配置框架中概述的那樣，我們仍然致力於透過有針對性的多年分配成長，繼續有意義地增加單位持有人的資本回報。我們擁有 7.5% 的分配收益率、顯著的自由現金流產生和資產負債表實力，如投影片 9 所示。

We appreciate your continued interest and support, and we will look forward to providing further updates on our earnings conference call in November. With that, I'll turn the call over to Blake to lead us into Q&A.

感謝您持續的關注和支持，我們期待在 11 月的收益電話會議上提供進一步的更新。接下來，我會將電話轉給 Blake，讓他帶領我們進行問答。

Thanks, Willie. As we enter the Q&A session, please limit yourself to one question and one follow-up. For those with additional questions, please feel free to return to the queue. This will allow us to address questions from as many participants as practical in our available time this morning. Additionally, the IR team will be available to address any additional questions you may have. Michelle, we're now ready to open the call for questions.

謝謝，威利。當我們進入問答環節時，請將自己限制在一個問題和一個後續行動上。對於還有其他問題的人，請隨時返回隊列。這將使我們能夠在今天早上的空閒時間內盡可能多地回答參與者提出的問題。此外，IR 團隊將隨時解答您可能遇到的任何其他問題。米歇爾，我們現在準備開始提問。

(Operator Instructions) The first question comes from Spiro Dounis with Citi.

（操作員說明）第一個問題來自花旗銀行的 Spiro Dounis。

First question, maybe to start with the guidance. From what I could tell, you all were trending, probably towards the upper half of the range even before this Bolt-On acquisition. So I'm curious, can you maybe speak to how much of that upgraded outlook is legacy operations versus the Bolt-On. It sounds like maybe there could be some puts and takes into the end of the year.

第一個問題，也許要從指導開始。據我所知，甚至在此次 Bolt-On 收購之前，你們都處於趨勢之中，很可能處於該範圍的上半部分。所以我很好奇，您能否談談升級後的前景中有多少是遺留業務與螺栓連接。聽起來年底可能會有一些看跌期權。

Yes, Spiro, the way I would characterize it is -- the Bolt-On is really a smaller piece of the amount -- the transaction is expected to close here hasn't closed yet. So -- or actually, it has closed, it's going to be 5 months, but it's predominantly overperformance in the business.

是的，Spiro，我的描述方式是——Bolt-On 實際上只是金額中較小的一部分——預計在此結束的交易尚未結束。所以——或者實際上，它已經關閉，將持續 5 個月，但主要是業務表現出色。

Great. That's helpful. Thanks, Willie. Second one, just going to the NGL segment. So Train 2 didn't meet the hurdle rates. Curious, maybe you can just go through some of the dynamics there and maybe what could bring that project back on to the burner here? And then beyond what's been announced today in Canada, anything else you're still pursuing around optimization there?

偉大的。這很有幫助。謝謝，威利。第二個是 NGL 部分。因此，2 號列車沒有達到最低要求。很好奇，也許你可以回顧那裡的一些動態，也許什麼可以讓這個計畫重新回到這裡？除了今天在加拿大宣布的內容之外，您還在那裡進行哪些優化？

Yes, I'm going to let Jeremy touch on that, but I want to open with one comment on this. When you think about all the things -- there's a lot of moving parts around this whole optimization project. But the thing to think about is we always drive for the capital discipline, high-return option as we think about these options. Jeremy?

是的，我會讓傑里米談談這一點，但我想首先對此發表評論。當你考慮所有的事情時——整個優化專案有很多變化的部分。但需要考慮的是，當我們考慮這些選擇時，我們始終追求資本紀律和高回報選擇。傑里米？

Sure. Spiro, I think the way to think about it is, we were looking at alternatives, Chris and his team have identified some lower cost groundfield opportunities around our Train 1 system. The comment -- we were able to offer a package that between that and some existing capacity we have in the East at Sarnia, we're able to meet our needs through doing that. So we found a substantially more capital efficient way to get to the same place. And us and our partner decided that a commercial arrangement versus a partnership was a better way to solve the problem.

當然。 Spiro，我認為思考這個問題的方法是，我們正在尋找替代方案，Chris 和他的團隊已經在我們的 Train 1 系統周圍找到了一些成本較低的地面機會。我們能夠提供一攬子計劃，加上我們在東部薩尼亞現有的一些能力，我們能夠透過這樣做來滿足我們的需求。因此，我們找到了一種資本效率更高的方式來達到相同的目的。我們和我們的合作夥伴認為商業安排比夥伴關係是解決問題的更好方法。

Understood. And then in terms of -- anything else in terms of Canada and optimization, is it kind of different now? Or are you still more potentially in the background?

明白了。然後就加拿大和優化方面的其他方面而言，現在有什麼不同嗎？或者你更有可能處於幕後？

Chris?

克里斯？

This is Chris Chandler. We continue to find some pretty compelling opportunities across our system. Of course, we just talked about the opportunities in Edmonton at our Fort Sask facility. But we also have the NGL extraction plants at Empress outside of Medicine Hat. And as Jeremy mentioned, we have some unutilized capacity at our Sarnia, Ontario fractionation facility. So we look at ways to optimize all of those and we're making small targeted investments to further grow our business in all those areas. So I think there's -- there continues to be opportunities and we're excited to pursue them.

這是克里斯錢德勒。我們繼續在我們的系統中發現一些非常引人注目的機會。當然，我們剛剛討論了薩斯克堡工廠在埃德蒙頓的機會。但我們在梅迪辛哈特外的 Empress 也設有液化天然氣提取廠。正如傑里米所提到的，我們安大略省薩尼亞分餾設施有一些未利用的產能。因此，我們正在尋找優化所有這些方面的方法，並且我們正在進行小規模的有針對性的投資，以進一步發展我們在所有這些領域的業務。所以我認為機會仍然存在，我們很高興能夠抓住這些機會。

And Spiro, the way these things typically work as you build some of these things out, you end up finding additional optimization opportunities. So it's kind of a continuing process as we go through things.

Spiro，當你建造其中一些東西時，這些東西通常的工作方式，你最終會發現額外的優化機會。因此，當我們經歷事情時，這是一個持續的過程。

The next question comes from Brian Reynolds with UBS.

下一個問題來自瑞銀集團的布萊恩雷諾茲。

Maybe just as a follow-up to the guidance update, just kind of questions around your intra-basin volumes going forward, just given the [pure] acquisition that took place in 2Q or whether you're seeing any fundamental shifts in the back half Permian volume expectations?

也許只是作為指導更新的後續行動，只是考慮到第二季度發生的[純]收購，或者您是否看到後半段發生任何根本性變化，只是關於您未來流域內交易量的問題二疊紀產量預期？

Okay. So I think there was two questions there. On intra-basin volumes, the acquisition doesn't impact those. This was a Midland Basin acquisition. So basically, it's something we already operate, so gross volumes flow straight into Midland. There's no intra-basin component to it.

好的。所以我認為有兩個問題。就流域內的交易量而言，此收購案不會對其產生影響。這是米德蘭盆地的收購。所以基本上，這是我們已經在運營的東西，所以總量直接流入米德蘭。它沒有流域內的成分。

As far as -- I think your second question was overall expectations for the Permian. What I would say is the first part of the year, we're exceeding expectations. The last few months have been behind a bit. The activity so far this year has been largely in line, I'd say it's trending a little bit below at this point, but productive capacity is still to get there. So it's going to be a function of timing of completions through the second half of the year.

至於──我認為你的第二個問題是對二疊紀的整體期望。我想說的是，今年上半年，我們超出了預期。最近幾個月有點落後了。今年迄今的活動基本上符合預期，我想說的是，目前的趨勢略低於這一點，但生產能力仍需達到目標。因此，這將取決於下半年的竣工時間。

And Spiro, you're aware that we ended up with some weather problems in the back half of June and July. It was really weather-related, hot weather. There were some gas plant issues and the producers have been very disciplined not to flare. Also, we had a lower flat price in that period of time. So there's probably not as much incentive to try to produce. So we think we're through that. Oil prices have been more constructive highlighted by the OPEC decisions today with a little more support behind it.

Spiro，你知道我們在六月下半月和七月遇到了一些天氣問題。這確實與天氣有關，天氣炎熱。一些天然氣廠出現了問題，生產商非常嚴格地不放火。此外，我們在那段時間的統一價格較低。所以可能沒有那麼多的動力去嘗試生產。所以我們認為我們已經度過了難關。歐佩克今天的決定凸顯了油價更具建設性，並為其提供了更多支持。

So as we think about the rest of the year, we've incorporated all of this into our outlook on guidance. We actually have Permian guidance -- volume guidance just a little bit below our 500. But even with that, we still think we're going to be at the high end of the range.

因此，當我們考慮今年剩餘時間時，我們已將所有這些納入我們的指導展望中。我們實際上有二疊紀指導——成交量指導僅略低於 500 點。但即便如此，我們仍然認為我們將處於該範圍的高端。

Great. I appreciate all that color. And then maybe as a follow-up, can you just give us an update on the minimum volume commitments that are being worked through in 2023? And how we should think about that as we look ahead into 2024? Will those be fully worked through? And could that be a tailwind as we think about 2024 early numbers?

偉大的。我很欣賞所有這些顏色。作為後續行動，您能否向我們介紹 2023 年正在落實的最低數量承諾的最新情況？展望 2024 年，我們該如何思考這一點？這些會徹底解決嗎？當我們考慮 2024 年的早期數據時，這會是一個順風車嗎？

The way I would look at it is there's two pipelines that are accruing deficiencies. I would say that the time period to work through those deficiencies, they're still accruing some on the pipelines. So I would view it as something that's going to take a few years to work through. Just because of the other commitments on the pipeline, you have to look at it as the -- using deficiency credits is the last barrel that's shipped -- the barrels that are committed, ship first, any spot barrels or next and then deficiency.

我的看法是，有兩條管道正在累積缺陷。我想說的是，在解決這些缺陷的時間內，他們仍在累積一些缺陷。所以我認為這需要幾年的時間才能解決。僅僅因為管道上的其他承諾，你必須將其視為 - 使用缺陷信用額是最後運輸的桶 - 承諾的桶，首先運輸，任何現貨桶或下一個，然後是缺陷。

So from a capacity standpoint, working through the deficiency barrels on a space available basis, so that takes time to get through it. It will take probably a couple of years to do that.

因此，從容量的角度來看，在可用空間的基礎上解決不足的問題，因此需要時間來解決它。做到這一點可能需要幾年的時間。

And Brian, our outlook hasn't changed. We still expect the spreads to strengthen as capacity shrinks with increasing production. As you probably know, we've chatted about on the Permian takeaway capacity on the Gulf Coast, we've essentially made sales and contracts to kind of protect that for the next -- predominantly for this year and '24. So that gives us a little bit of buffer, and we would expect that the rates between Permian and the Gulf Coast should expand out to ultimately incremental transportation costs.

布萊恩，我們的前景沒有改變。我們仍然預計，由於產能隨著產量的增加而縮小，利差將會擴大。你可能知道，我們已經討論了墨西哥灣沿岸二疊紀的外賣能力，我們基本上已經進行了銷售和合同，以保護明年的能力——主要是今年和 24 年。因此，這給了我們一點緩衝，我們預計二疊紀和墨西哥灣沿岸之間的費率應該擴大到最終增加的運輸成本。

The next question comes from Gabriel Moreen with Mizuho.

下一個問題來自 Mizuho 的 Gabriel Moreen。

I was wondering if you can maybe speak to your CapEx outlook for this year in light of a little bit of the tweaking to the Permian outlook. You're running a little bit late, I think, of your guidance, if you, I guess, annualize it. So I'm just wondering, is there a possibility -- you coming to the lower end of the CapEx range given that Permian volume outlook?

我想知道您是否可以根據二疊紀前景的一些調整來談談今年的資本支出前景。我認為，如果你將其年度化，我認為你的指導有點晚了。所以我只是想知道，考慮到二疊紀產量前景，是否有可能達到資本支出範圍的下限？

Gabe. Chris Chandler will cover that. There's a lot of work that we go through to keep capital discipline across the company. Chris?

加布.克里斯錢德勒將對此進行報道。為了在整個公司範圍內保持資本紀律，我們做了很多工作。克里斯？

Yes. Gabe, we do continue to optimize our spend for 2023. Speaking in buckets, for our gathering system projects, we're pacing our investment timing with our customer schedules. And Willie mentioned some color there with leaving a period of some adverse weather and lower prices, we expect that to kind of pick up in the second half of the year.

是的。 Gabe，我們確實會繼續優化 2023 年的支出。就我們的收集系統專案而言，我們正在根據客戶的時間表調整投資時間。威利提到了一些顏色，留下了一段時期的惡劣天氣和較低的價格，我們預計這種情況會在下半年有所回升。

On Permian infrastructure investments, we do have complete projects as needed to match expected production growth in the different regions of the Permian. So we try to time that appropriately.

在二疊紀基礎設施投資方面，我們確實擁有所需的完整項目，以滿足二疊紀不同地區的預期產量成長。所以我們嘗試適當地安排時間。

And then remember, we just announced a new NGL project at Fort Sask and we're going to be able to fund the 2023 portion of that project within our existing guidance of $325 million net to Plains for 2023. So there are some moving parts there, but we're reiterating our current guidance for the year.

請記住，我們剛剛宣布了在薩斯克堡的一個新NGL 項目，我們將能夠在2023 年向Plains 淨提供3.25 億美元的現有指導範圍內為該項目的2023 年部分提供資金。因此，在那裡有一些變動的部分，但我們重申了今年的當前指導。

Understood. And then maybe on this M&A deal and a little bit of a 2-parter. One is, to what extent when you do these gathering deals within the JV. Are you either extending or renewing further downstream commitments? I realize that may be a commercially sensitive question to ask and then just kind of lay the land in terms of getting more of these gathering acquisition? And kind of done at what it's looking like.

明白了。然後也許是在這次併購交易和一點點兩方合作中。一是，您在合資企業內進行這些聚集交易的程度如何。您是否會延長或更新進一步的下游承諾？我意識到這可能是一個商業敏感問題，然後就可以為獲得更多這些採集收購奠定基礎？並且按照它看起來的樣子完成了。

Sure. The way I look at it is if we're buying from a producer, generally, there's an improvement in the contractual relationship. We had one as being partners with them, but we converted it a bit to something that was more appropriate for us not being business partners and us being the owner and then being the shipper or the producer.

當然。我的看法是，如果我們從生產商那裡購買，一般來說，合約關係會有所改善。我們有一個與他們的合作夥伴，但我們將其轉換為更適合我們而不是商業夥伴的東西，我們是所有者，然後是托運人或生產商。

So there is a -- the terms were strengthened to reflect that relationship. We have a great relationship with Diamondback and look forward to growing with them in this area.

因此，這些條款得到了加強，以反映這種關係。我們與 Diamondback 有著良好的關係，並期待與他們在這一領域共同成長。

The next question comes from Michael Blum with Wells Fargo.

下一個問題來自富國銀行的麥可布魯姆。

So I just wanted to stay on this tuck-in acquisition here and just get your thoughts on whether this is kind of as a one-off opportunity? Or do you think there's going to be other potential kind of tuck-in deals here that we should expect to see over the next couple of years?

因此，我只是想繼續關注這一臨時收購，並了解您對這是否是一次性機會的看法？或者您認為未來幾年我們應該會看到其他潛在的交易？

So Michael, this is Willie. I mean, the way we look at this is we've got a great [France rise] across North America, particularly around the Permian. And if there's anyone that can extract synergies in these opportunities, it should be us. But we're going to remain very, very disciplined as we approach this. And so when you think about what we might do, it's things like these Bolt-On acquisitions, bite size Bolt-On acquisitions that make a lot of sense to us.

邁克爾，這是威利。我的意思是，我們看待這個問題的方式是，我們在整個北美地區，特別是在二疊紀地區，都出現了巨大的[法國崛起]。如果有誰能夠在這些機會中發揮協同作用，那應該是我們。但在我們處理這個問題時，我們將保持非常非常自律。因此，當你考慮我們可能會做什麼時，像這些 Bolt-On 收購這樣的事情對我們來說很有意義。

So I would expect that we are going to continue to look at opportunities there. And if there are strong return projects that are strategic and meet the hurdle rates of our returns, we are going to consider them. But we've got to stay disciplined and we look at a lot of things, and we end up with a few. Jeremy, anything to add on this?

因此，我預計我們將繼續在那裡尋找機會。如果有具有策略性且回報豐厚的專案並且滿足我們回報的最低要求，我們就會考慮它們。但我們必須保持紀律，我們考慮了很多事情，最終得到了一些結果。傑里米，有什麼要補充的嗎？

No. Michael, I would just say that it's consistent with the Advantage transaction, the West, [purchased] -- the West's interest in Cactus II last year and this one. So this is a trend, but it's something like Willie said, it's got to fit for us. It's got to work for them. We're going to be very disciplined. As we said, we look at a lot, but it's got to compete for capital with the rest of our potential uses.

不，邁克爾，我只想說，這與西方的優勢交易一致，[購買]——西方去年和今年對仙人掌二號的興趣。所以這是一種趨勢，但就像威利所說，它必須適合我們。它必須對他們有用。我們會非常遵守紀律。正如我們所說，我們關注了很多，但它必須與我們其他潛在用途爭奪資本。

Okay. Great. That helps. And then just in light of today's announcement on the Canada investment that you're going to be making. Just wanted to confirm that your long-term kind of annual capital spend rates are unchanged.

好的。偉大的。這有幫助。然後根據今天關於您將要進行的加拿大投資的公告。只是想確認您的長期年度資本支出率沒有改變。

I'll take that one. Absolutely. We expect to stay between the $300 million to $400 million range as we go forward. We've said average, I guess, there could be some lumpiness in some of the timing around the projects, but you can expect us to stay within that range for a number of years.

我會接受那個。絕對地。隨著我們的發展，我們預計價格將保持在 3 億至 4 億美元之間。我們已經說過平均水平，我猜，專案的某些時間安排可能會出現一些波動，但你可以預期我們會在幾年內保持在這個範圍內。

The next question comes from Keith Stanley with Wolfe Research.

下一個問題來自沃爾夫研究公司的基斯‧史丹利。

I wanted to stay on the frac expansion project. And so, just want to clarify, the project is EBITDA neutral in 2025 and beyond because of the existing contract rolling off. I assume that existing contract you have is in the money or favorable in some way. Could you just give more color on the dynamics there on why the EBITDA from the project itself would be offset?

我想繼續參與壓裂擴建工程。因此，我想澄清一下，由於現有合約即將到期，該專案在 2025 年及以後的 EBITDA 是中性的。我認為您現有的合約是物有所值的或在某種程度上是有利的。您能否對專案本身的 EBITDA 為何會被抵銷的動態進行更多說明？

Sure, Keith. This is Jeremy. So that contract was entered into in about 25 years ago, and so we're changing the relationship that we have with that counterparty unit. So I view this is -- depends on how your view of commodity exposure is. We gave you a sense for where it is at $0.50, it would be in the money at $0.70, it wouldn't be. But you have to look at the $200 million as a series of projects. It's gathering projects is connectivity between facilities. The frac expansion is just a small portion. That's the uniqueness of the brownfield expansion.

當然，基斯。這是傑里米。該合約是在大約 25 年前簽訂的，因此我們正在改變與該交易對手單位的關係。所以我認為這取決於你對商品風險的看法。我們讓您了解它在 0.50 美元的位置，在 0.70 美元的位置它是價內的，但它不會。但你必須將 2 億美元視為一系列項目。它的聚集項目是設施之間的連接。壓裂膨脹只是一小部分。這就是棕地擴張的獨特之處。

So this is a series of projects with diverse customer bases for very long term. So we're excited about the durability of the cash flow and predictability. So it's basically taking 1/3 of our frac spread exposure and converting it to a durable cash flow but we are changing the contractual nature that we have servicing this customer as part of this process.

因此，這是一系列具有長期多元化客戶群的專案。因此，我們對現金流的持久性和可預測性感到興奮。因此，它基本上需要我們 1/3 的壓裂價差敞口並將其轉換為持久的現金流，但我們正在改變我們為該客戶提供服務的合約性質，作為此過程的一部分。

And Keith, maybe to add one thing. This just reinforces the integrated system we have, but when you really look at it, we talk about our saddle and the seasonality of it. It goes back to trying to increase a portion of our cash flow to the fee-based side and it should flatten that saddle as we go forward. So we think that predictable more durable earnings long term should help as far as we think about valuation for our units.

基思，也許要補充一件事。這只是加強了我們擁有的整合系統，但當你真正觀察它時，我們會談論我們的馬鞍和它的季節性。它可以追溯到嘗試將我們的部分現金流增加到收費方面，並且隨著我們的前進，它應該會壓平這個鞍座。因此，我們認為，就我們考慮我們單位的估值而言，可預測的、更持久的長期收益應該會有所幫助。

Got it. And sorry, I'm going to stick with NGLs for my second question. Just -- obviously, frac spreads came down a lot in Q2, although propane is kind of coming back with oil now. Can you comment at all on where you stand on 2024 exposure? And how open you are to pricing? And then relatedly, just looking at NGLs in 2024, these turnarounds seem like they have a pretty big impact this year, $50 million in Q2. So should we assume that turnaround impact would reverse and be a benefit in 2024 looking forward? Or how should we think about that?

知道了。抱歉，我將繼續使用 NGL 來回答我的第二個問題。顯然，第二季的壓裂價差大幅下降，儘管丙烷現在與石油一起回歸。您能否對 2024 年的曝光發表一下評論？您對定價的態度如何？與此相關的是，只要看看 2024 年的 NGL，這些轉變似乎對今年產生了相當大的影響，第二季達到 5,000 萬美元。那麼，我們是否應該假設扭虧為盈的影響將會逆轉，並在 2024 年帶來利益？或者說我們該如何思考這個問題？

Sure. There's two questions there. On the turnaround, I don't think we have any material turnaround projected for next year. And I don't think the impact was quite that big for this year. So I would view it from a capital standpoint, yes, there substantial maintenance capital that goes into them. But -- so from a cash flow standpoint, you won't have the maintenance capital and you'll have some additional production. But I don't think the impact is in the neighborhood of $50 million. Your other question can you repeat that?

當然。這裡有兩個問題。關於扭虧為盈，我認為我們明年不會有任何實質的轉虧為盈。我認為今年的影響不會那麼大。所以我會從資本的角度來看，是的，有大量的維護資本投入其中。但是——所以從現金流的角度來看，你不會有維護資金，但你會有一些額外的生產。但我認為影響不會在 5000 萬美元左右。你的另一個問題可以重複嗎？

Really, frac spread exposure, and I'll take this. Keith, we don't disclose what we're going to do on frac spread exposure. You're right, frac spread exposure were high. They've come off significantly. They're coming back. And what I would tell you is we look at -- we try to time and be very thoughtful about how we do hedge forward. And as we go forward into 2024, we'll probably share -- we'll definitely share more at the end of the year, but the market is improving as far as the frac spread environment for 2024.

真的，壓裂傳播曝光，我會接受這個。基思，我們不會透露我們將如何處理壓裂價差風險。你是對的，壓裂價差風險很高。它們已經明顯脫落。他們回來了。我要告訴你的是，我們會努力花時間並深思熟慮如何對沖未來。當我們進入 2024 年時，我們可能會分享——我們肯定會在年底分享更多，但就 2024 年的壓裂價差環境而言，市場正在改善。

The next question comes from Neal Dingmann with Truist Securities.

下一個問題來自 Truist Securities 的 Neal Dingmann。

Can you just talk about twofold, one on the '24 CapEx, expand a little more detail. And then secondly, just on capital allocation around that [3.5] target?

您能否只談談兩方面，一是關於 '24 資本支出，並展開更多細節。其次，只是圍繞 [3.5] 目標進行資本配置？

Al? The first question was on capital. Neal?

艾爾？第一個問題是關於資本。尼爾？

For '24.

對於'24。

For '24? I would -- $300 million to $400 million is what we're going to stick with for the next number of years. And your second one, could you -- ask your second question? Neal, are you still there?

24 歲？我認為，3 億至 4 億美元是我們未來幾年將堅持的金額。你的第二個問題，你可以問你的第二個問題嗎？尼爾，你還在嗎？

I'm sorry, I just got cut off for one second.

抱歉，我剛才被打斷了一秒鐘。

Did you hear my comment on '24 CapEx? '24 CapEx will be $300 million to $400 million, consistent with our targets across the years. And then could you ask your second question on capital allocation?

您聽到我對 '24 資本支出的評論了嗎？ '24 資本支出將為 3 億至 4 億美元，與我們多年來的目標一致。那麼可以問一下關於資本配置的第二個問題嗎？

Yes, just on -- I know you've got the 3.5 target. So I'm just wondering, would you -- if you keep -- what we have for free cash flow, you can get below that? Would you keep taking it below? Or how do you think about sort of payout versus taking that debt load?

是的，就在——我知道你已經達到 3.5 的目標了。所以我只是想知道，如果你保留我們擁有的自由現金流，你能得到低於這個值嗎？下面你還敢繼續用嗎？或者你如何看待支付與承擔債務負擔的關係？

Yes. At this point in the year, our guidance is that we expect to be a little below the 3.5x at year-end. Clearly, a function of that will be what is our working capital requirements in the back half of this year that can move it a little bit. Our stated range still remains 3.75% to 4.25%. And as we've articulated over the last few quarters, we intend to operate below that for the near term.

是的。今年此時，我們的指導是預計年底時的成長率將略低於 3.5 倍。顯然，其中一個函數將是我們今年下半年的營運資金需求，這可以稍微推動它。我們規定的區間仍為 3.75% 至 4.25%。正如我們在過去幾個季度所闡明的那樣，我們打算在短期內以低於該水平的價格運作。

And so really, there's no really other moving part. If we get a little extra cash flow will reduce debt in the back half. But the rest of the capital allocation is lined out. Clearly, if we're successful with another Bolt-On acquisition, that can change the dynamic a little bit. But we do still expect to be at that 3.5x or below.

事實上，沒有其他真正的移動部分。如果我們得到一點額外的現金流將會減少後半部的債務。但其餘的資本配置已列出。顯然，如果我們成功進行另一次 Bolt-On 收購，這可能會稍微改變這種動態。但我們仍然預計會達到 3.5 倍或更低。

Neal, does that answer your question?

尼爾，這能回答你的問題嗎？

The next question comes from Neel Mitra with Bank of America.

下一個問題來自美國銀行的 Neel Mitra。

Willie, I think you alluded to some of the issues in the second quarter with just Permian growth and seeing that in your slides with gathering, intra-basin and intra-basin. And I was wondering if you could just speak to some of the issues that were faced in the second quarter. I think some of your peers alluded to this, but just wanted to understand what underpinned some of the production issues that are now resolved?

威利，我認為您提到了第二季二疊紀增長的一些問題，並在您的幻燈片中看到了聚集、流域內和流域內的情況。我想知道您是否可以談談第二季面臨的一些問題。我想你們的一些同行提到了這一點，但只是想了解現在已經解決的一些生產問題的基礎是什麼？

Yes. In my earlier comments, Neel, it really was a lot of hot weather issues that affected gas processing. And what we've seen is the producers have remained very disciplined around not wanting to flare and you also had a lower price environment that probably didn't give people an incentive to try to push any harder. So there's capital discipline and the producers had. And it was really back half of June and July. And since then, it's kind of improved. I don't know if there's more that you were looking for, I don't know. Jeremy, do you have anything to add?

是的。尼爾，在我之前的評論中，確實有很多炎熱的天氣問題影響了天然氣加工。我們看到的是，生產商仍然非常自律，不想爆發，而且價格環境也較低，這可能不會激勵人們更加努力地推動。所以有資本紀律，製片也有。那確實是六月和七月的後半段。從那時起，情況有所改善。我不知道您是否還需要尋找更多內容，我不知道。傑瑞米，你還有什麼要補充的嗎？

Yes. I would say a lot of that led to producers not completing wells into that environment. So they're going to produce what they had, they throttle wells that they had, maybe not complete all the wells that they were intending to, that push completions into the August and forward time period.

是的。我想說，其中很多因素導致生產商無法在這種環境下完井。因此，他們將生產他們擁有的產品，他們限制他們擁有的油井，也許不會完成他們打算完成的所有油井，從而將完井時間推遲到八月及以後的時間段。

Okay. Perfect. And then for my second question, I wanted to understand how you're looking at recontracting Cactus II, maybe with, when it extends ahead of possibly a competitor coming out with an open season or if that affects how you look at recontracting. I know that the forward curve has improved. So just your general thoughts on the long-haul type recontracting.

好的。完美的。然後，對於我的第二個問題，我想了解您如何看待續約 Cactus II，也許是在它提前於可能的競爭對手推出開放賽季的情況下，或者這是否會影響您對續約的看法。我知道遠期曲線已經改善。這只是您對長途類型再承包的一般想法。

Sure, Neel, what I would say is we continue to have constructive dialogue with our customers. The back end of the view of prospective rates hasn't been nearly as volatile at the front end. So those discussions continue. There's options to extend on the Cactus II pipeline at attractive rates for our customers. So that one is pretty clear. I'd say for Cactus I and others, our integrated business model and asset base provides us unique advantages and aligns us with our customers for long periods of time. So we fully expect to do that as a function of when and timing and we'll update you guys when we have more information.

當然，尼爾，我想說的是我們繼續與客戶進行建設性對話。預期利率觀點的後端並沒有前端那麼波動。所以這些討論仍在繼續。我們可以選擇以對我們的客戶有吸引力的價格擴展 Cactus II 管道。所以這一點非常清楚。我想說，對於 Cactus I 和其他公司來說，我們的綜合業務模式和資產基礎為我們提供了獨特的優勢，並使我們與客戶長期保持一致。因此，我們完全希望根據時間和時機來做到這一點，當我們有更多資訊時，我們會向大家通報最新情況。

The next question comes from Sunil Sibal with Seaport Global.

下一個問題來自 Seaport Global 的 Sunil Sibal。

So I just wanted to understand a little bit better about Bolt-On acquisition. So it seems like those volumes are already reported as part of your gathering volumes and just that will get better economics on those? And if you could talk about kind of return on this kind of bolt-on acquisition.

所以我只是想更了解 Bolt-On 的收購。那麼，這些數量似乎已經作為您收集量的一部分進行了報告，這樣就能獲得更好的經濟效益？您是否可以談談這種補強收購的回報。

Jeremy?

傑里米？

Sure. You're correct. Because we operated the asset and had over 50% interest that was consolidated and the gross gathering volumes wouldn't change. That specific asset doesn't impact long-haul or intra-basin. I think we said it before, it just further aligns us with -- they want to drill well and be in it. They feel very comfortable with the relationship with us as operators. So it makes sense for us to acquire that position. And Diamondback can recycle that into however it wants to use this capital.

當然。你是對的。因為我們經營該資產並擁有超過 50% 的權益，且該權益已合併，因此總收集量不會改變。該特定資產不會影響長途或流域內的航班。我想我們之前說過，這只是進一步讓我們與他們保持一致——他們想要好好鑽研並參與其中。作為運營商，他們對與我們的關係感到非常滿意。因此，我們獲得這個職位是有道理的。響尾蛇可以將其回收利用，以任何它想要的方式使用這筆資金。

Okay. And then second is a little bit broader question on capital allocation. So it seems like the bond maturity you have coming up in the second half, you should be able to take care of that. And it seems like you still want to target higher than where you will end up in 2023, in terms of the leverage metrics. So I'm just kind of curious, is this geared towards more of -- kind of creating capacity for perhaps taking out perhaps over a longer period of time? Or what are the kind of longer-term thought process in terms of that leverage goal of [3.75% to 4.25%]?

好的。第二個是關於資本配置的更廣泛的問題。因此，看起來下半年債券到期，你應該可以處理好這個問題。就槓桿指標而言，您似乎仍然希望設定比 2023 年最終目標更高的目標。所以我只是有點好奇，這是否是為了創造更多的能力，以便在更長的時間內拿出來？或者就[3.75% 至 4.25%] 的槓桿目標而言，是什麼樣的長期思考過程？

Sunil, this is Willie. I'll give you my thoughts on capital allocation, and then Al can certainly add to it. As we think about capital allocation, there's two primary things. One, we need to drive free cash flow. You don't -- you can't do anything if you're not driving free cash flow. And the second one is really around disciplined around everything we do, but particularly on CapEx. So as we think of the order and what we -- how we allocate going forward.

蘇尼爾，這是威利。我會告訴你我對資本配置的想法，然後艾爾當然可以補充。當我們考慮資本配置時，有兩個主要問題。第一，我們需要推動自由現金流。如果你不推動自由現金流，你就什麼都做不了。第二個問題其實是圍繞著我們所做的一切進行紀律，特別是在資本支出方面。因此，當我們考慮順序以及我們未來如何分配。

One, we want to protect our commitment to return capital to the unitholders. We laid out this capital allocation framework. So that's going to be high on the list. And then we go to strategic high-return Bolt-On projects that we will consider that makes sense to help us efficiently grow the business, opportunistic buybacks and the [press] are probably further down the list because we want to maintain financial flexibility and a strong balance sheet.

第一，我們希望履行向單位持有人返還資本的承諾。我們制定了這個資本配置架構。所以這將在列表中名列前茅。然後我們會考慮策略性高回報螺栓項目，我們認為這些項目有助於我們有效地發展業務，機會主義回購和[媒體]可能會排在名單的後面，因為我們希望保持財務靈活性和強勁的資產負債表。

So that's what we kind of juggle back and forth. But as you think about the priority and the way I see it, that's kind of the way that the order. Al?

這就是我們來回處理的事情。但當你考慮優先順序和我的看法時，這就是順序的方式。艾爾？

Yes. No, that is accurate, Willie. I would add, yes, the note we have coming up in October, $700 million. We exited June with $900 million of cash, so that will be repaid out of that. Again, as I commented on an earlier question, we've left our leverage target the same at [3.75% to 4.25%] and intend to operate at the low end or below. And that is partially to have some capacity on our balance sheet to be able to weather through the industry ups and downs as well as be able to fund things as we need to.

是的。不，這是準確的，威利。我想補充一點，是的，我們在 10 月發布的票據是 7 億美元。 6 月我們帶著 9 億美元的現金退出，因此我們將用這些現金來償還。同樣，正如我在先前的問題中評論的那樣，我們將槓桿目標保持在 [3.75% 至 4.25%] 不變，並打算在低端或以下運行。這在一定程度上是為了我們的資產負債表上有一定的能力，能夠經得起行業的起起落落，並且能夠為我們需要的事情提供資金。

Ultimately, at some point in the future, we will look to address the press, but there's no near-term plan to do that. But over time, we would expect that would be a good use of some of that capacity. And hopefully, it would be taking those out with that. We don't believe we should be using common equity at this time due to the valuation.

最終，在未來的某個時候，我們將向媒體發表講話，但近期沒有計劃這樣做。但隨著時間的推移，我們預計這將很好地利用其中的一些能力。希望它能把那些東西一起消滅掉。由於估值原因，我們認為此時不應該使用普通股。

I show no further questions at this time. I would now like to turn the call back to the company for closing remarks.

我目前沒有提出任何進一步的問題。我現在想將電話轉回公司以發表結束語。

Thanks. Well, listen, everyone, thanks for your time and joining us this morning. We hope to see you soon and have a nice weekend.

謝謝。好吧，聽著，大家，感謝您今天早上抽出時間加入我們。我們希望很快見到您並祝您週末愉快。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。