Good day, and welcome. Energy Transfer Third Quarter of 2023 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. Please note that this event is being recorded. I'd like to turn the call over to Mr. Tom Long, Co-CEO of Energy Transfer. Please go ahead. Thank you, operator, and good afternoon, everyone. Welcome to the Energy Transfer third quarter 2023 earnings call. I'm also joined today by Mackie McCrea 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 well as the slides posted to our website. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities 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 September 30, 2023, which we expect to file tomorrow, November 2. I'll also refer to Adjusted EBITDA and Distributable Cash Flow, or DCF, both of which are non-GAAP financial measures. You'll find a reconciliation of our non-GAAP financial measures on our website. We will start today by going over our financial results for the third quarter of 2023. We generated Adjusted EBITDA of $3.5 billion, compared to $3.1 billion for the third quarter of 2022. In our base business, we had strong performance across our operations, including record volumes through our NGL pipelines, fractionators and NGL and Refined Products terminals, as well as record volumes in our crude segment. In addition, volumes in our Intrastate and Midstream segments remained near records. DCF, attributable to the partners of Energy Transfer, as adjusted, was $2 billion, compared to $1.6 billion for the third quarter of 2022. This resulted in excess cash flow after distributions of $1 billion. On October 20, we announced a quarterly cash distribution of $0.3125 per common unit, or $1.25 on an annualized basis. This distribution represents an increase from the $0.265 in the third quarter of 2022. In August, Energy Transfer's senior unsecured credit rating was upgraded by S&P to BBB with a stable outlook. We are pleased to have this third-party recognition of all the hard work that we have done over the last several years, and as we have placed significant focus on our balance sheet and leverage reduction. As of September 30, 2023, the total available liquidity under our revolving credit facility was approximately $2.12 billion. During the third quarter of 2023, we spent $418 million on organic growth capital. In October, we completed the sale of $4 billion of aggregate principal amount of senior notes and used the proceeds to repay borrowings on our revolving credit facility and pre-funded 2024 maturities. Now, turning to our results by segment for the third quarter, starting with NGL and Refined Products. Adjusted EBITDA was $1.1 billion, compared to $634 million for the third quarter of 2022. This was primarily due to strong performances across our transportation, storage, terminal, and fractionation operations. We also saw strong contributions from our optimization of hedged NGL Refined Products inventories, where we recorded $107 million in marketing margin, compared to a loss of $126 million in the third quarter of last year. NGL transportation volumes on our wholly owned and joint venture pipelines increased 14% to a record 2.2 million bbl per day, compared to 1.9 million bbl per day for the same period last year. This increase was primarily due to higher volumes from the Permian region and on our NGL pipelines that delivered into our Nederland terminal, as well as on the Mariner East pipeline system. Average fractionated volumes increased 9% to a record 1 million bbl per day, compared to 940,000 bbl per day for the same period last year. Total NGL export volumes grew more than 20% over the third quarter of 2022, setting a new partnership record. This was primarily driven by increased international demand for NGLs. Through the first nine months of this year, we loaded more than 47 million bbl of ethane out of Nederland and approximately 21 million bbl of ethane out of Marcus Hook. In total, we continued to export more NGLs than any other company during the third quarter and maintained an approximately 20% market share of worldwide NGL exports, as well as nearly 40% of U.S. exports. For Midstream, adjusted EBITDA was $631 million, compared to $868 million for the third quarter of 2022. We saw near-record throughput again this quarter, which was the result of growth in the majority of our operating regions. The strong volume growth was more than offset by significantly lower natural gas and NGL prices. Gathered gas volumes increased 4% to 19.8 million MMBtus per day, compared to 19.1 million MMBtus per day for the same period last year. For our Crude Oil segment, Adjusted EBITDA was $706 million, compared to $461 million for the third quarter of 2022. This was primarily due to higher volumes on several of our pipelines, as well as the acquisition of the Lotus assets in May of this year. In addition, G&A expenses decreased $126 million as a result of one-time charge related to the resolution of a legal matter in the prior period. Crude oil transportation volumes were a record 5.6 million bbl per day, compared to 4.6 million bbl per day for the same period last year. This was a result of higher volumes on our Texas pipeline systems, the Bakken Pipeline, as well as the acquisition of the Lotus assets in May of this year. In our Interstate segment, Adjusted EBITDA was $491 million, compared to $409 million in the third quarter of 2022. This increase was primarily due to placing the Gulf Run Pipeline into service in December of 2022, as well as higher contracted volumes and interruptible utilization on several of our wholly owned and joint venture pipelines. Volumes increased 15% over the same period last year due to the Gulf Run Pipeline being placed into service, as well as higher utilization on many of our Interstate pipelines, including Transwestern Pipeline, Rover Pipeline, Panhandle, and Trunkline Pipeline. We continue to fully utilize Zone One capacity on Gulf Run Pipeline, and we are also maximizing deliveries into our Trunkline Pipeline from Zone Two. For our intrastate segment, Adjusted EBITDA was $244 million, compared to $301 million in the third quarter of last year. Benefits from favorable storage optimization and new contracts on our Texas and Haynesville pipelines, as well as lower operating expenses, were more than offset by decreases resulting from lower spreads across our Intrastate pipeline network and lower natural gas pricing. Now turning to our acquisition of Crestwood Equity Partners, which we announced in August of this year. As many of you have probably seen, earlier this week, Crestwood unitholders voted to approve the merger between Energy Transfer and Crestwood. The acquisition is expected to be immediately accretive to DCF per unit upon closing. In addition, this transaction will extend Energy Transfer's position in the value chain deeper into the Williston and Delaware Basins, while also providing entry into the Powder River Basin. These assets are expected to complement Energy Transfer's downstream fractionation capacity at Mont Belvieu, as well as its hydrocarbon export capabilities from both our Nederland and Marcus Hook terminals. We also expect benefits within our NGL and Refined Products and Crude Oil businesses, with the addition of strategically located storage and terminal assets. We now expect the acquisition to close on November the 3rd, and we expect to achieve approximately $40 million in annual cost synergies before additional anticipated benefits from financial and commercial synergies. Turning to our growth projects, and starting with our Nederland and Marcus Hook export terminals. September and October were our best months ever across our NGL export terminals, and these terminals continue to benefit from increased demand, both in the U.S. as well as from international customers. Earlier this year, we FID-ed an expansion to our NGL export capacity at Nederland in order to address the growing demand. We expect this expansion, which is projected to cost approximately $1.25 billion, to add up to 250,000 bbl per day of export capacity. The project is expected to be in service in mid-2025 and will give us flexibility to load various products based upon customer demand. Construction is underway, and we look forward to providing more specifics on this expansion as it progresses. We also continue to pursue an optimization project at our Marcus Hook Terminal that we project would add incremental ethane refrigeration and storage capacity. At Mont Belvieu, we placed Frac VIII into service in August, which brought our total Mont Belvieu fractionation capacity to over 1.15 million bbl per day. As a result, in October, throughput at our fractionators reached an all-time high. Out in the Delaware Basin, we have placed two 200 million cubic foot per day processing plants into service since December 2022, and we now have a total of eight 200 million cubic foot per day processing plants operating in the Delaware Basin. Our plant inlet remains near record highs, and we continue to contemplate the necessity and potential timing of adding another processing plant in the Permian Basin while considering any available new capacity that we acquire via the Crestwood acquisition. Next, an update on our Lake Charles LNG project. We continue to see significant interest in our LNG capacity from U.S. producers and international markets. We are in negotiations with several significant equity partners that are ultimately targeting retaining an interest of approximately 20% for Energy Transfer. These potential equity partners are also interested in substantial volumes of LNG offtake. We are in negotiations to finalize our EPC contract, and we are receiving tremendous support from domestic and international customers, community stakeholders, and other interested constituents who are actively encouraging the Department of Energy to approve our pending export authorization application on an expedited basis. Now for an update on a few other projects. On the carbon capture and sequestration front, we are continuing to make progress with Capture Point. This project entails the capture of CO2 from our treating plants in North Louisiana and the construction of a pipeline to a sequestration site in central Louisiana. We are continuing to work with Oxy to develop a CCS project in Lake Charles, Louisiana, area. This would include the construction of a CO2 pipeline connecting our industrial facilities to Oxy's proposed sequestration site. On the blue ammonia front, we are working with several companies to evaluate the feasibility of ammonia projects that would include significant natural gas supply opportunities, deepwater dock access, and other infrastructure services on existing Energy Transfer property near our Lake Charles and Nederland facilities. Additionally, we are working on CCS projects related to our processing plants and treating facilities in South Texas and West Texas, and we are evaluating other CO2 pipeline projects that would connect CO2 emitters to CO2 sequestration sites in the Houston Ship Channel corridor. Finally, we are evaluating the use of some of our existing 250,000 acres of land in Virginia, West Virginia, and Kentucky for wind, solar, forestry, carbon credits, and other uses. The Virginia Department of Energy has spent considerable time and effort evaluating a variety of projects on 65,000 acres located in Southwest Virginia. Now looking at our growth capital spend. For the nine months ended September 30, 2023, Energy Transfer spent $1.2 billion on organic growth projects, primarily in the Midstream and NGL Refined Product segments, excluding SUN and USA Compression CapEx. For full year 2023, we expect growth capital expenditures to come in slightly below our previously announced guidance of $2 billion, including growth capital related to Crestwood. Looking ahead, we continue to evaluate a number of other potential growth projects that we hope to bring to FID. We expect to provide our 2024 growth capital outlook on our fourth quarter earnings call. However, as we look forward to our potential backlog of high-returning growth projects, we continue to expect our long-term annual growth capital run rate to be approximately $2 billion-$3 billion. Now for adjusted EBITDA guidance. For the full year of 2023, we now expect our Adjusted EBITDA to be between $13.5 billion and $13.6 billion, including two months of Crestwood. We continue to see strong volumes and stable cash flows throughout our business segments, with recently completed growth projects contributing several records in the third quarter. Looking ahead, we are excited to close on the acquisition of Crestwood later this week. We look forward to working with the new Crestwood employees as we integrate these new assets into our Energy Transfer franchise. We believe the combination of these businesses will present strategic commercial opportunities and efficiencies. We expect the newly acquired Crestwood assets, as well as the growth projects completed throughout this year, to provide additional opportunities and positive momentum for the rest of this year and going into next year. We will continue to pursue strategic optimization and expansion projects that enhance our existing asset base, generate attractive returns, and meet the growing demand for our products and services. Our financial position remains strong, and we remain committed to our targeted annual distribution growth rate, which we will continue to balance with leverage reduction, increasing equity returns, and maintaining sufficient cash flows to pursue growth opportunities. This concludes our prepared remarks. Operator, please open the line up for our first question. Thank you. I'll begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. In the best interest of time, we ask you to limit yourself to one question and one follow up. This time, we'll pause momentarily to assemble the roster. First question will be from Jeremy Tonet of JP Morgan. Please go ahead. Hi, good afternoon. Hey, Jeremy. Just wanted to start off, if I could, you know, if you could just provide a high-level thoughts for us. As the platform sits now after a number of acquisitions and projects, what type of organic growth, you know, level do you see innate in your business? What type of EBITDA growth for your base business do you see? And also, at the same time, I guess, how does this impact your capital allocation philosophy? I think there's a somewhat newer slide in the deck there that maybe alludes to buybacks potential there or distribution increases as well. So just wondering if you could update us on these fronts. Yeah, for sure, Jeremy, and good afternoon to you. Listen, we, we've put out the guidance of that $2-$3 billion a year, and we still have, you know, at least a mid-teen type returns or high-teen type returns. So you can kind of see the growth rate from there. We're going to stay with that 3%-5% growth rate on the distributions at this time. Clearly, we talk about that at every single board meeting. So that's kind of the math, I think, on the growth that you can see. Now, remember, we still have the kind of the 85%, 15%, you know, fixed versus floating. Now, it's moved into more of 90/10 just because the commodity prices are lower, so that, that scales around based upon where those prices are, from that standpoint. So when you, when you factor all that in, and then all the other optimization opportunities that we will, we will definitely jump on when those opportunities present themselves, I, I think you can kind of look at, look at that type of growth, growth rate. But I will say that, we're going to stay with our normal schedule, meaning that with the fourth quarter earnings results, we will update the 2024 EBITDA guidance, adjusted EBITDA guidance with you. And the second part, Jeremy, did you want to just talk about the, the unitholder buyback? Was that the second part of your question there? Yeah, overall capital allocation, I guess, and thoughts in light of what you talked about for organic opportunities. Yeah. Well, it's the capital allocation is real consistent with what we've been saying for a while. In other words, we're going to continue to focus on the balance sheet, and it's a great place to be as you start approaching the low end of our 4x-4.5x leverage target. So I think when you continue to look out, you look at all these growth projects, you look at the distribution growth that we're looking at, that the unitholder buyback clearly remains as a option that we'll look at. You're probably going to look at being at the, you know, the very low end of that range, if not a three handle on it, you know, the upper three before you could start seeing opportunistically starting to buy back units. But that's the way that you should probably look at that. Got it. That's, that's helpful there. Thanks. And then just want to, I guess, shift gears a little bit towards the Permian. Just wondering if you could provide us thoughts. I think you touched on it a bit in your prepared remarks as far as, growth opportunities there, but just wondering how you see that, I guess, scaling over time, particularly as it relates to the NGL business and opportunities along that value chain. Seemed like the NGL and products business had quite a nice step-up this quarter, and just wondering if you could highlight a bit more of what was happening there. Yeah, Jeremy, this is Mackie. What an exciting area! You look at the consolidation that's going on upstream. A lot of that, of course, is around the bigger deals in the Permian Basin. And as you know, and most on this call, nobody's better positioned to capitalize that than Energy Transfer from every standpoint, from gathering, processing, NGL takeaway, intra-intrastate pipeline takeaway, and crude takeaway. And so it all kind of begins upstream with our G&P group, and our NGL team working to purchase not only those bbl from our affiliate, but also bbl from others out in that basin. And we couldn't be more excited and well-positioned to meet the growth out there. And it kind of feeds into our entire partnership revenue stream when you take all that downstream and then ultimately frac it and a lot of it, of course, hitting our export markets now. So what an incredible area of the world that we've heavily invested in, and we see it paying off for many years to come. If I could just follow up real quick on that, I guess on the other side of the NGL equation, just how much demand do you see materializing? How that impacts pricing for NGLs? Do you see kind of the LPGs continuing to price to export, or just any broader thoughts on NGL supply-demand dynamics and impact on NGL pricing? You know, it's hard to overexaggerate the ethane and, more importantly, the LPG growth. Assets cannot be built quick enough in the US to meet the international demand, or by those about PDHs that are being built in Asia, especially in China. There's a lot of ethane crackers that are being built, so you really can't build quick enough. But we're being very prudent. We've announced our Flex Export project. It's a Flex Export project that's under budget, on track. We expect to have that in service by the third quarter of 2025. We're close to fully selling that out, and we're analyzing another expansion. It would be a much less expensive expansion and a much less cost per barrel to expand more. We're going to continue to make sure that all of the gas that we're gathering and processing, that we have a home for all those liquids. We're looking ahead, and we see significant growth in our NGL business, especially our export business, both on the Gulf Coast and at Marcus Hook, once again, for many years to come. Got it. Makes sense. Seems to certainly build momentum for your Permian initiatives there. Thank you for the color. I'll leave it there. ... Thank you. Next question will be from Spiro Dounis of Citi. Please go ahead. Thanks, operator. Morning, guys—or sorry, afternoon, guys. Just, just want to go back to one of Jeremy's questions, actually. And Tom, fully respect that you're not in a position to provide 2024 guidance yet, but, but maybe just looking at the S4 filing from Crestwood as we look to 2024, I know it's not guidance, but some of those pro forma numbers seem to indicate you guys would be approaching $15 billion in EBITDA next year on a combined basis, and so pretty meaningful step up from 2023. So just wondering qualitatively or however you see fit, maybe help us bridge from 2023 to those S4 numbers, and, I mean, what parts of the business could be driving that upside? Yeah. No, listen, it's great to be talking about a number that has a 15 handle on it. So let's start with that. When you look at that S4, remember that those were estimates. We take our estimates very seriously when we file these things, obviously. And we're still in the process of finishing up, you know, the 2024 budget numbers, et cetera, which all go into the guidance. And that's the reason we'll always wait till that fourth quarter to come out with the very best numbers that we can. But listen, Spiro, we sure hope we hit these numbers. We. You know, it would be great even if we came out with something more. But let us, let us get through that before we put out any type of, official guidance on that. We're so excited about everything we're seeing at this, at this stage, you know, and with closing on the transaction on Friday. It's going to give us now the, the opportunity to even start digging deeper, into, into the other synergies that we didn't bake into any of the estimates, especially the, the commercial synergies. So let us get, you know, get through the close on Friday, and we're gonna be very excited to be able to, you know, talk about what the, the 2024 numbers, should, should look like. But yeah, what a, what a great place to be, to be up to a, you know, be up, earnings numbers this high, so. Yeah. No, no, fair enough, and we'll do our best to, to stay patient. One quick follow-up, once again, going back to capital return. Just as we think about the, the distribution growth, you're on this sort of nice cadence now that's, that's become predictable, and you talked about the 3%-5% range. I, I guess I'm just curious, what would you need to see to flex towards the higher end of that range? Is that a function of getting leverage lower, or is it something else you're really focused on? Well, the leverage is within our target, so I wouldn't want to necessarily guide you toward that, you know, that 4x-4.5x. You can already see that we got the one upgrade from S&P, like we mentioned, and the other two have us on a positive outlook, and we're gonna continue to work with them to get those up to that mid, you know, kind of that triple B level. So, I think the other component we always look at is we're always looking out at the coverage ratio, making sure that, you know, we're staying, you know, in a good, solid range there. But as much as any, we're also looking out at a lot of the growth opportunities. So, you know, the usual capital allocation debates that you have, you know, any company has here, and that's what we're going to, you know, evaluate. But it's not a matter of looking at any one single point in time. It is a matter of looking out, you know, with the best crystal ball we have over the, you know, the next three, four, five years. So we try to make decisions here that, you know, we stick with without, you know, kind of jumping up and down or moving around with them. Got it. I'll leave it there, Tom. Thanks for the time. Thank you. Thank you. Next question will be from Michael Blum of Wells Fargo. Please go ahead. Hey, thanks. Good afternoon, everyone. Wanted to ask on CapEx, both in terms of this year, just what exactly is driving the reduction there, slight reduction? And then for next year, if I recall correctly, your last update, I know you say your long-term run rate, you think is $2 billion-$3 billion, but I think at least as of last update, you said you don't even have $2 billion of committed projects yet for 2024. So just wanted to get the latest update on where that stands as well. Yeah. Michael, good afternoon. You know, as far as the first part of your question, I would say that we continue to, you know, work on some very good projects. Some of that's gonna be maybe a little bit of timing, but even with that, I want to be careful using that word because it doesn't mean that, you know, 2024 is, you know, necessarily going to, you know, go up. But that blends straight into the second part of your question. If you really kind of look at that $2-$3 billion, you could use $750 million a year that are just kind of those growth capital projects that connects all the other great projects we have that are good, high-returning projects that help with the utilization, optimization of our system overall, especially with the M&A that we've been so successful on. A lot of these projects fall kind of in that category of that first $750 million. I will say that with some of the stuff that we've talked about, I know Mackie's talked about here, is that those are the other projects that aren't necessarily the FIDs. So we can't say that we've got all of that filled in right now by any means, the other, you know, the other $2 billion or so. ...From that standpoint, we're continuing to work on them. I think we feel good about a lot of the projects. So it's, you know, once again, it's probably $750 million, and then we'll be talking more about the other projects as we get them to FID. The one that, you know, we did highlight in prepared remarks, of course, was Flex Export, so. Got it. Okay, that helps. Thank you. And then, you know, it sounds like a pretty encouraging update on Lake Charles. So I guess what I'm wondering is, what would be the earliest timeframe from your perspective, where you think Lake Charles could actually get to FID and then in service? Hey, Michael, this is Mackie. You know, tough question in that we've got a lot of balls in the air. We've covered it pretty well with Tom's remarks. So we're sitting in a really good position. We really need to get the DOE to extend the permit. We think they will. We've got, as we've said, a lot of folks involved behind the scenes trying to make that happen, including other countries, other businesses in other countries. But we're just keeping our head down, pushing. We don't really have a lot of estimates. We're hopeful that we'll have something from the DOE by sometime mid first quarter. We're pushing, and others are also pushing them to maybe do that sooner, but we don't know. It's a regulatory agency that we're working closely with and hope to make that happen sooner than later. But in the meantime, Tom Mason and his team are working hard back over there now, trying to finalize a lot of these contracts and agreements around equity, as well as new LNG offtakers. And so, it's hard to predict that, but if everything went exceptionally well, you know, the second quarter could be a possibility, but we'll see how things go over the next three or four months. Great. Thank you. Thank you. Next question will be from Brian Reynolds, UBS. Please go ahead. Hi, good morning, everyone. Maybe to follow up on some CapEx questions as it relates to the Permian natural gas egress. It seems like we could, you know, be seeing the last brownfield expansion get contracted here over the near future. But beyond that, it seems like we need a larger pipe, of which, you know, Warrior still exists out there. So just as it relates to the Warrior project at this juncture, you know, has the scope or size of the project changed or evolved, you know, since you started marketing the project a few years ago, just to perhaps meet specific customer, customer needs and to get the project to ultimately FID? Thanks. Yeah, Brian, this is Mackie again. Yeah, we actually started really aggressively marketing this first part of this year, but we are pushing hard. As we've mentioned, we've got about 25% already signed up. We're working on another couple several other shippers that would bring us to about 60 or 65%. But we're going to be pretty careful on this, and we're very careful, like we always are. We're going to be prudent. We're not going to move forward with FID until we have a substantial amount of that capacity sold out. And it also, it will feed into not only markets that we're already connected to with our Intrastate network, but also we'll have a lot of kind of momentum if some of these other LNG projects get to FID. So we're... Like a lot of these big projects we're working on, they're just taking time. We see spreads other than a few days or weeks where it blows out a little bit. The spreads are very tight. There's not a lot of pain right now out in Waha, for the most part. We think that's going to get really difficult as we go into 2024 until the next pipeline is built. So we do think we'll pick up more momentum, and we're going to push hard. And kind of similar to my comments around LNG, we hope to maybe get to FID on Warrior sometime maybe in the second quarter of next year. Great. Super helpful. And maybe to just touch on the M&A for the year, you know, with Crestwood and Lotus coming into the fold here. Can you just maybe talk about how some of these acquisitions have maybe perhaps helped defer some capital? I know Crestwood has some Permian processing capacity, and I think you alluded to in the prepared remarks that, you know, some of that excess processing capacity might be able to defer a processing plan a little bit. So, you know, how should we think about processing capacity for 2024 or 2025? Do we need to, you know, see another new build coming in next year, or could we see, you know, some capital get deferred into the following year as it relates to maybe the crude side, Lotus or Crestwood on the NGL and processing side? Thanks. Yeah, this is Mackie again. Yeah, we, as you can understand, we haven't been able to really dig into the Crestwood assets yet. We don't close officially till Friday, but from a high level, we certainly recognize some capacity is available really in all regions, both in the Bakken and the Powder, as well as in the Delaware. We are constantly evaluating when is the next time to kick off the next cryo to make sure we meet our obligations as we sign up producers. But clearly, we believe that this is going to give us some time to defer that decision. We were thinking we're going to have to make that decision kind of first quarter of next year, whether we're going to start kick off another plant, that's probably going to push it back at least 3-6 months. So we'll see, kind of as we fully are able to analyze and look at these assets and see how they logistically blend in. But, we're pretty confident that at minimum, it's going to delay building a new cryo at least some period of time. Great. Thanks, appreciate it. I'll leave it there and then enjoy the rest of your afternoon. Thanks. Thank you. Thank you. Next question will be from Jean Ann Salisbury of Bernstein. Please go ahead. Hi. There's a lot of new NGL pipes coming to the Permian in 2025. I think ET is actually the only main company not doing an expansion. How well-positioned are Lone Star and West Texas Gateway to weather that contractual, duration-wise, and does it drive more interest in inorganic opportunities in the basin? ... Yeah, Jean, this is Mackie again. We have noticed that there's a lot of, a lot of pipelines announced here, even the last couple of days. But what we try to do as a partnership is not really worry about what others are announcing or what others are building. We kind of focus on what do we need to build to accommodate our customers and to meet the demand growth of those that we're working with. And we are very well positioned right now. We move about a third of every barrel of NGL that's produced in the Permian Basin. We have the ability to move a hundred plus thousand more bbl. We can add pumps and move probably in the neighborhood of 250,000 more bbl. So we've got some kind of dry powder or dry capacity, available capacity we'll be able to expand on. So I think any kind of considerations or determinations from us are probably a year or longer away on even contemplating another pipeline. We're positioned pretty well to move everything we've signed up, in addition to more growth that we expect from our G&P business. Great, that makes sense. To be clear, I'm certainly not pushing you to expand Lone Star. But that's super helpful. And for your Nederland NGL export expansion, I know that you're talking to a lot of ethane counterparties, but it seems like you haven't quite signed the contracts yet. Is the right way to think about it that given how tight LPG export capacity is, it'll probably start mostly as LPG, and then as your ethane contracts eventually get signed and kicked in, a greater share will become ethane? Yeah. Yeah, I think I would answer it this way. We, we are in constant dialogue in negotiations across the board. We have probably at least 140,000 bbl of ethane customers that we're negotiating with right now, of which some prefer Marcus Hook, some the Gulf Coast. We'll have the ability to kind of swing the volume between either one. But clearly, LPG is also in high demand. And so, we're, yeah, there's not a shortage of international customers, and we're very excited, as, as we've said earlier, that we're not only very well positioned to meet that, but also very well positioned to meet the growth two years from now and beyond. So we do think space is gonna get pretty tight. As you can see by our results, we're moving more volume, we're hitting records in almost every aspect of our NGL business, including our export, and we're seeing the margins widen. And we think we'll see that over the next couple of years, and then we'll have new contracts lined up to come online on our Flex Export. So we're pretty excited. You know, we got in this export business a little later than most of our competitors, certainly our biggest competitor, and we've kind of gone from nowhere to the leading exporter in the world. And we're proud of that, and proud of our commercial team who's done all these deals, proud of our E&C team who built these assets so quickly, proud of our operating team, led by Greg McIlwain, who runs these systems efficiently and reliably, and more importantly, safely. So we are very proud of our team and what we've done over the last five or six years to kind of start from nowhere and grow to where we're at today. And we have such a bright future on the assets that we are building now and the contracts that we have. Great. I'll leave it there. Thank you. Thank you. Next question will be from John Mackay of Goldman Sachs. Please go ahead. Hey, everyone. Thanks for the time. Maybe just taking that last piece, I mean, talked about exports probably being the tightest part of the value chain for you right now, at least that's what we're picking up on. But I guess if you're looking across the kind of broader ET and kind of ET combined Crestwood footprint right now, where else are you seeing relative tightness and, you know, a call on, on the market, either you guys or others, to add incremental capacity? You know, is it, is it the Haynesville? Is it more on processing in the Permian? Just curious your thoughts overall, if we're looking maybe beyond export. Yeah. Let me just hit every region real quickly to kind of address, I hope, your question. In the, so you start in the Northeast, we're positioned incredibly well. On any kind of product growth up there, whether it's ethane or LPG, we are kind of the only outlet with our Mariner franchise. So, you know, we call it dry powder or available capacity, whatever you want to call it, we are ready to capture any kind of growth up there. And then as you come further south, we mentioned that we've got the ability to grow our transport volumes from the Permian Basin fairly significantly. We're expanding our Flex Export fairly significantly, and we haven't really hit on this on this call, but there is a lot of gas in North Louisiana. Yes, it's slowed down a little bit with gas prices here the last two or three months. We think it's gonna pick back up as prices have improved and will continue to improve. There's enormous reserves there. But on top of that, we have multiple Intrastate and Interstate pipelines that feed into East Texas and North Louisiana. And so we're very optimistic on our Gulf Run expansion. You know, we can add compression and add a BCF today, but we think it's much more likely that we will sign up enough to loop our existing Gulf Run Zone Two pipeline, especially aligned with LNG if we get that to FID. but we see that as certainly a huge growth area for us on a large pipeline project somewhere in the future, along with what we've already talked about, our Warrior project, and other areas. You know, depending on where the area is, we're either situated very well to grow with next to no capital, or we have such a excellent position to aggregate volumes to support a project like Gulf Run, an expansion project. ... All right, that's clear. Thank you. Maybe just, following up, if we think about 2023 guidance overall, can you just, maybe a quick breakdown of how much of the step-up was Crestwood versus kind of underlying, you know, business outperformance? And maybe if you're touching on the Gulf Run contributions, you know, third quarter Interstate was particularly strong. Third quarter, you know, gas overall was pretty strong, particularly for kind of a shoulder season. Is this a clean new run rate from here, or are there any kind of one-offs in there? Thanks. Yeah. No, listen, I think the best way to look, best way to look at that as far as the guidance go, goes in the split between the, between the two is, you know, the guidance we had coming into this quarter that we'd provided in the second quarter was $13.1 billion-$13.4 billion, as you know. As you really looked at the new numbers we gave, you can probably say that the, the, you know, the existing business was right at the top end of that, of that range, and the rest of it would be Crestwood, but Crestwood would be net of transaction cost. So that's what we're currently expecting right now. Still, you know, maybe some moving pieces as we get into the fourth quarter, but we feel, we feel pretty good about the 13.5-13.6. All right. That's clear. I appreciate it. Thank you. Next question will be from Neel Mitra of Bank of America. Please go ahead. Hi. Good afternoon. Thanks for taking my questions. Firstly, it seems that Cushing inventories are extremely low right now. So wanted to understand how your Centurion flows and your overall Lotus acquisition was able to materialize on this dynamic in the third quarter. Yeah, you bet. This is Mackie again. Yeah, to do a shout-out to Chris Hefty and his team, and what they've done over the last two years has just been phenomenal. As you look at Enable and kind of what it's done over the last year and a half, and the synergies that we've found, and the same with WEX. And Lotus, same thing. We continue to look at significant commercial synergies around blending. As we have made an announcement, we are looping pipes so that we can move more volume to benefit when the spread blows out between Midland and Cushing. So we're slowly positioning ourselves to become a much bigger player to be able to move volumes between the Cushing and Midland areas, as well as, of course, to the Gulf Coast, to our Houston and Nederland Terminal. And I think likewise, we're going to see with Crestwood a lot of the same synergies. So we're pretty excited about the our ability to buy these assets at the values we're able to buy at. They're great standalone companies and assets, and then once we blend them in, like your question with Lotus, we're finding significant synergies that we didn't recognize as we were pursuing these these acquisitions. Got it. And then my second question, you've had a lot of success building Permian to, to Mexico natural gas pipelines, and it seems like the utilizations on Comanche Trail and Trans-Pecos are picking up, and, you have a competitor looking to build a, a pipeline to the border as well. With some of the West Coast LNG demand and increased industrial demand in West Mexico, are you seeing any appetite, for pipeline expansions down to the border or possibly participating in a new project to, to move gas to, to Mexico? This is Mackie again. No, we, we're not. We're not pursuing anything right now. As you mentioned, we are ramping up our two pipelines out in West Texas that deliver to Mexico. We still have quite a bit of capacity to fill up to fully utilize those pipelines. We have some pipelines in South Texas that we deliver either directly into Mexico or into other larger diameter pipelines. But no, we don't have anything on the drawing board. Yes, we are aware of some proposed pipelines out of the Waha area heading west, but we aren't involved in any of those projects this time. Okay, great. Thank you very much. Thank you. Final question will come from Gabe Moreen of Mizuho. Please go ahead. As far as sort of the uplift in pricing on your Interstate gas pipelines and storage, it seems like if I'm reading it right, some of that uplift may be accelerating. Can Can you just talk about sort of how you feel you're positioned, rate case outcomes aside, and to what extent that's still going to be wind at your backs going forward into 2024? Hey, hey, Gabe, this is Mackie, and I apologize. You're, you're—we started hearing you about halfway through your question. Sorry. Okay. Can you hear me now, Mackie? Yes. Okay, great. I was just going to say, to what extent repricing your Interstate gas pipeline and storage capacity is going to be wind at your backs in 2024? It seems like some of that's accelerating as we progress through 2023. Yeah, you know, years ago, this wasn't fun to talk about. It is now. When you look at the value, for example, on MEP or on Tiger or on Gulf Run or even on SESH, we're seeing growing demand out on all of those assets. TW, I mean, just pick an asset, and most of what we're doing right now is either at tariff or close to tariff. The demand is there. A lot of the gas throughout this country is trying to find its way to the Gulf Coast. We're very well positioned to benefit from that with all the pipelines I just mentioned and others. So we don't really, unlike years past, we might have had some concern when contracts were terminating of what we could do with that available capacity. I mean, Tiger is a great example. I mean, Tiger was about half empty, with spreads down to 5 or 6 cents, and now we're running it full at much bigger spreads. And so, we're pretty excited about any available capacity. You know, once it comes out from under contract, we think worst case, we'll roll it over at similar, if not higher, rates than we already are at, unless we're already at tariff. Thanks, Mackie. Thank you. That concludes our question and answer session. I'd like to turn the call back over to Mr. Tom Long for closing remarks. Once again, thank all of you for joining us today. We greatly appreciate all your support, and we look forward to talking to you in the near future. Thank you. That concludes our conference today. Thank you for attending. You may now disconnect.