ETP (DAPL) Transcript -- 2Q19

Link here.

On DAPL:

If you look at the opportunities and the need to provide capacity up there, nobody compares to DAPL. And the beautiful thing about DAPL is that all we have to do is add pumps to move materially more volumes. We've already secured volumes to move forward on an optimization project. However, as everybody knows we're in the middle of an open season, we're very optimistic how that open season will go. And we will add pumps and other needed facilities to meet the contractual obligations that we'll have at the at the end of the open season, but couldn't be better timing.

Financial:

Our adjusted EBITDA hit another record for the second quarter of 2019, coming in at $2.82 billion. This was up 25% compared to the second quarter of last year. DCF attributable to the partners of ET as adjusted also increased almost 25%. We continue to see very strong performances in all of our major businesses and very high utilization across all of our assets.

The NGL and refined product segments delivered another record quarter as a result of the ramp up of ME2 and record frack volumes that were driven by Frac VI coming online earlier than planned and filling up almost immediately. Pricing differentials between markets have also continued to remain strong for much of 2019, driving outperformance in our optimization businesses.

Distribution coverage for the quarter was two times which resulted in excess cash flow after distributions of $800 million for the quarter. In addition, since the end of the quarter, we successfully brought on Arrowhead III processing plant online ahead of schedule. And the second phase of our Red Bluff Express pipeline is now operationally complete. We're also pleased to say that at the end of July, we loaded our first barge at Nederland with natural gasoline.

As a result of this strong performance and the completion of several key growth initiatives. For 2019, we are revising our adjusted EBITDA guidance higher. We are all lowering our full year CapEx guidance. We expect our 2019 adjusted EBITDA to be approximately $10.8 billion to $11 billion, which is up $200 million from our previous guidance range.

Much more at the link.