Ladies and gentlemen, thank you for standing by, and welcome to Targa Resources Corp. fourth quarter 2022 earnings webcast and presentation. At this time, all participants' lines are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to your first speaker today, Sanjay Lad, Vice President, Finance & Investor Relations. Sir, please go ahead. Thanks, RJ. Good morning, and welcome to the first quarter 2022 earnings call for Targa Resources Corp. The first quarter earnings release, along with the first quarter earnings supplement presentation for Targa Resources that accompany our call are available on our website at targaresources.com in the investor section. In addition, an updated investor presentation has also been posted to our website. Statements made during this call that might include Targa Resources expectations or predictions should be considered forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in forward-looking statements. For a discussion of factors that could cause actual results to differ, please refer to our latest SEC filings. Our speakers for the call today will be Matt Meloy, Chief Executive Officer, and Jen Kneale, Chief Financial Officer. Additionally, the following senior management team members will be available for Q&A. Pat McAnany, President, Gathering and Processing, Scott Pryor, President, Logistics and Transportation, and Bobby Muraro, Chief Commercial Officer. With that, I'll turn the call over to Matt. Thanks, Sanjay, and good morning. We are continuing to perform well and are off to a good start to the year on a number of fronts. Record high quarterly EBITDA of $626 million, record volumes in the Permian, and record NGL transportation and fractionation volumes. We also achieved investment-grade ratings from all three agencies during the quarter. We completed our corporate simplification with the DevCo repurchase in January, and with the redemption of our preferred stock earlier this week. We continue to invest across our businesses with the ongoing construction of the Legacy I, Legacy II, and Midway plants in the Permian, plus the acquisition of bolt-on assets in South Texas. We repurchased additional common shares as part of our increasing return of capital to investors. Our reported leverage ratio at 3.4 times is in the bottom half of our long-term target range of 3-4 times. Pro forma for the repurchase of our DevCo interests, our preferred stock redemption, our South Texas acquisition, and our GCX sale, our leverage is 3.3 times. While we had a strong first quarter with EBITDA up $55 million versus Q4, commodity prices really began to move higher late in the quarter. We did not see a lot of first quarter price benefit as our realized prices were relatively flat compared to the fourth quarter. Since then, prices are providing some nice tailwinds for the balance of the year. Given the strong underlying fundamentals of Targa's businesses, we continue to expect that if prices average around current levels for 2022, we would exceed the top end of our previously disclosed full year financial guidance range. Let's now discuss operations in more detail. Starting in the Permian, our systems across the Midland and Delaware basins continued to perform well, averaging over 3 billion cubic feet per day inlet volume during the first quarter. Volumes across our Permian systems increased quarter-over-quarter, despite being impacted by winter weather conditions, particularly in January and February. Volumes quickly rebounded with March and April volumes up nicely over the first quarter average. We continue to see strong activity levels across both our Midland and Delaware footprints and expect to benefit from this positive momentum as we move through 2022. In Permian Midland, our systems continue to run near full, and our engineering and operations teams are working diligently to bring our next 275 million cubic feet per day Legacy plant online safely later this year. Our Legacy II plant, another new 275 million cubic feet per day plant in Permian Midland, is expected to begin operations during the second quarter of 2023. In Permian Delaware, volumes across our system are also continuing to ramp. Our new 275 million cubic feet per day Midway plant is expected to begin operations during the third quarter of 2023. Midway will provide us with additional flexibility to flow volumes between our Midland and Delaware systems, in addition to improving our overall operational performance in the region. For full year 2022, we continue to expect our average Permian inlet volumes to increase by 12%-15% over 2021 volumes. In our Central and Badlands regions, first quarter volumes were impacted by winter weather conditions, most notably in the Badlands. We are seeing stronger activity levels across several regions given the higher commodity price environment. In April, we completed the acquisition of assets in South Texas and are quickly integrating the assets and related contracts acquired in our South Texas Gathering and Processing operations and expect the acquisition to be immediately accretive. We would like to thank everyone involved in helping make the integration go smoothly. Shifting to our logistics and transportation segment. NGL transportation volumes continue to increase, and we transported a record 460,000 barrels per day to Mont Belvieu during the first quarter. Throughput volumes sequentially increased 6%, driven by increasing NGL production from Targa's Permian plants and third parties. Fractionation volumes at our Mont Belvieu complex during the first quarter rebounded to 3,000 barrels per day following fourth quarter's unplanned outage. Looking ahead, we expect NGL transportation and fractionation volumes to continue to benefit from increasing supply from our growing Permian GMP position. In our LPG export services business at Galena Park, we loaded an average of 10.2 million barrels per month during the first quarter. The outlook for our LPG export business remains strong. We are advancing our previously announced low-cost expansion project to increase our propane loading capabilities, which will add an incremental 1 million barrels per month of capacity by mid-2023. The longer-term outlook for Targa remains strong. Our premier integrated Permian NGL business, complemented by our talented employees and strong balance sheet, position Targa to deliver safe, reliable energy domestically and globally. Before I turn the call over to Jen, I would like to thank our employees for their continued focus on safety while executing on our strategic priorities and continuing to provide best-in-class services to our customers. With that, I will turn the call over to Jen. Thanks, Matt. Targa's reported quarterly Adjusted EBITDA for the first quarter was $626 million, increasing 10% sequentially as we benefited from the repurchase of our DevCo joint ventures and higher volumes across most of our assets, offset by the sale of our equity interest in Gulf Coast Express Pipeline and lower marketing margins. Targa generated adjusted free cash flow of $373 million in the first quarter. We are significantly hedged for 2022 and continue to add hedges for 2023 and beyond, while still benefiting from higher prices across our unhedged equity volume exposure and prices above K floors. Looking ahead, as a reminder, the integration of the recently acquired Southcross midstream assets and associated contracts for our South Texas GMP operations will be reflected in consolidated GMP segment earnings for the second quarter. Our consolidated leverage ratio was 3.4x at the end of the first quarter, and we had about $2 billion of available liquidity. In April, we successfully completed our inaugural TRGP notes offering in the investment-grade market, issuing $750 million of 4.2% senior notes due 2033, and $750 million of 4.95% senior notes due 2052. We really appreciate the support of our new and existing fixed income investors in our initial IG offering and are pleased to have been able to access the 30-year market for the first time. Earlier this week, we completed the redemption of all of our outstanding Series A preferred stock for approximately $973 million. The redemption of the preferred completes an important strategic goal to simplify our capital structure, and we were able to do so sooner than previous expectations as a result of our strong company performance. With respect to the sale of our interest in GCX, the call right process has concluded, and we expect to receive final payment on or around May 20th. As Matt mentioned, our pro forma leverage ratio is 3.3 times and trending lower, which puts us in excellent financial position with a lot of flexibility. We continue to expect to spend $700 million-$800 million on attractive organic growth capital opportunities in 2022, with approximately $121 million spent through the first quarter to support continued volume growth across our systems. We are paying an attractive $1.40 annualized dividend per common share for 2022, and have been able to return additional capital to our common shareholders through opportunistic repurchases, with $50 million of shares repurchased in the first quarter. Our continued investment in growing Targa's underlying businesses, supported by an attractive macro backdrop and the strength of our balance sheet, means we are in excellent position looking forward to continue to return an increasing amount of capital to our shareholders. Lastly, I'd like to echo Matt and thank our employees for their dedication and for continuing to prioritize safety. With that, I will turn the call back over to Sanjay. Thanks, Jen. For the Q&A session, we kindly ask that you limit to one question and one follow-up and reenter the Q&A lineup if you have additional questions. RJ, would you please open the line for Q&A? Thank you. As a reminder to ask a question, please press star followed by the number one on your telephone keypad. Again, that is star one. To withdraw your question, please press the pound or hash key. Please stand by while we compile the Q&A roster. Your first question comes from the line of Theresa Chen with Barclays. Your line is open. Good morning. Thank you for taking my questions. First, I'd just like to ask about your capital allocation priorities from here, given that you've streamlined your structure and fundamentals seem to be trending well. Can you talk about, you know, common share repurchases, increasing the dividend, and so on? Good morning, Theresa. This is Jen. I think from our perspective, you'll see us execute going forward sort of as we are today, increase the common share dividend 2022 versus 2021, and that's the dividend that we'll have for this year, and then we'll revisit next February. You're seeing us continue to invest in our business, and also you're seeing us execute on opportunistic share repurchases. I think that's going to be the formula for us going forward, and then it's just gonna be a matter of the opportunities in front of us to figure out where we think our capital is best spent. Got it. There's been, you know, so much momentum in your story and the macro tailwinds. I think all of that is pretty clear. In your mind, what do you think the key risks are from here? You know, Theresa, I think we feel really good about our business. You know, we've made a lot of improvements to the balance sheet over the years. We've simplified our structure. The risks that are out there, you know, inherent in our business are commodity prices and volumes. Even from both of those, I feel like we're better insulated and better protected to the downside today than we were, you know, a year or two ago. I think it's the same risks that we look at. We've made a lot of progress on recontracting and putting in fee floors in our G&P business. We also have significant amount of hedges, which reduces our commodity price exposure. Just as we continue to grow across our footprints, we have, you know, really strong, diverse customers across our G&P in multiple basins and a good, diverse customer set out in the Permian. The risks kind of, you know, remain in our business, but I think we've done a good job at trying to, you know, protect ourself from the downside. I think the starting point, if any risks do present themselves, is just so different for us today than it ever has been before. Right. We've just never been stronger, Theresa. I think we'll be able to withstand and perform exceptionally well, even if those risks do present themselves going forward. Thank you. Okay. Thank you. Your next question. Your next question comes from the line of Jeremy Tonet with JP Morgan. Your line is open. Hi, good morning. Hey, good morning. Just wanted to start off with the guidance here, if I could. Even the guidance, recognize it's early in the year. Just doing some simple math here, it seems like if you annualize first quarter, you'd be at the top end of the guide. In first quarter, didn't seem to benefit from commodity prices, I think, as you said there. Also January had a freeze-off weather impact weighing on the quarter. It doesn't seem like the guide includes the Southcross benefit. If I overlay spot commodity prices, it's something like a $250 million add to it. Just reconcile these different things. I know the commodity price isn't baked into the guide where it is right now, but Southcross annualizing first quarter all points to above the high end. Is there any offsets over the balance of the year that we should be thinking about? The only offset that I just start with, and then I'll turn it over to Matt, is just the sale of GCX. It was contemplated in our guidance. Yeah, I think that you've got the pieces directionally correct. Current spot prices, just given the backwardation that still exists as we look out for the balance of 2022 is part of the unknown for us right now. But we are very well hedged and are continuing to add hedges. I think we are in just an excellent position. Matt, anything? Jeremy, I think you laid it out pretty well. I feel like Q1 was a really good quarter for us. We had, you know, increasing volumes in the Permian, but if you look in the Permian Midland, it was up a little bit, almost flat, you know, Q1- Q4. We had some winter weather and operational issues in January and February, but we've seen volumes rebound nicely in March and April, so it sets us up for good volume growth from now through year-end. If you look at prices, NGLs were up a little bit, but gas was actually quarter to quarter for us, realized down. And as you know, you know, Waha prices now are much, much higher than our average in Q1. Between gas and NGL, if prices hang around here, we're gonna have a lot of uplift as we go throughout the year. We also had lower volumes, you know, due to some weather impacts up in the Badlands and across our central regions too. You know, with a little bit warmer weather, higher prices, I think it sets up really nicely for the balance of the year. Got it. I didn't hear anything to walk me away from kind of $2.7-$2.8 or more if commodity prices persist. We have not been that specific. We just said, I think we're in good shape as we kinda move throughout the rest of this year if prices hang around here. Even if prices don't hang around here, I think we're in really good shape. Got it. Yeah, it looks like that way to us as well. Maybe just pivoting more towards Permian logistics here. The numbers we run on the basin seems like processing capacities is pretty tight. Egress for natural gas, pretty tight as well. There's a number of solutions, I guess, out there on the egress side. Just wondering your appetite to participate in nat gas takeaway, kind of to match, I guess, your equity and your customers' nat gas production needs. Then on the G&P side, you have, you know, several plants in the hopper, but just wondering, I guess, overall growth expectations, you know, moving forward in the Permian on those two fronts. Sure. We've seen pretty good growth here in the Permian, just in the aggregate, and on our system over the last 12 months, and we think there's gonna be continued growth as we look forward. I'm gonna turn it over to Bobby, who can talk a little bit just about how we're thinking about residue takeaway opportunities. This is Bobby. On the residue side, we were excited to see, you know, the most recent announcements on the expansions. At the end of the day, we look like a producer relative to our exposure, so what we wanna know is that the gas flows, and then ultimately, we obviously want basis as well. Possible. We've known about it for a long time. We've known about the expectations of where our expectations of where supply was going. We're fully prepped for it on the Targa side, even before any of the new pipes come online. But yeah, we expect and hope for more pipes to get announced. Whether we participate in them or not, really, you'll see us in them at times when they need us to go, and if they don't need us to go, we won't be in them, right? I think as we think through those things, we just wanna see the pipes get built and the takeaway, egress get there in time for us to not see big basis blowouts. Got it. That's very helpful. I'll leave it there. Thanks. Okay, thanks, Jeremy. Your next question comes from the line of Colton Bean with Tudor, Pickering, Holt & Co. Your line is open. Morning. You all mentioned the weather impacts on the Badlands in Q1, and I think we've seen kind of a continuation of that severe weather year to date. Can you just update us what you've seen as we move through April? You know, are there any longer term infrastructure damage, you know, considerations that you have as you think about the balance of the year? Yeah, sure. I'm gonna turn it over to Pat to answer that one. Yeah, you're right. I mean, obviously, there's been a couple pretty significant weather events in April in the Badlands. About the time you get back up from the first one, you know, the second one follows up behind. They were pretty severe. They, you know, took production across the Badlands almost to nothing across everybody's systems. Certainly we're in the rebound mode. We're coming back up. We are not fully up, so will it impact our second quarter? Sure. April, it was impacted. We're still not fully up in May, but we're getting closer. You know, hopefully mid, late May, we'll officially be fully back up to where we were before, the weather impact. On our side at least, we do have some things that are positive throughout the remainder of the year that will help offset, you know, some of the occurrences relative to the weather here in April. Got it. Maybe just to clarify that, on the offsets, is that thinking for G&P in aggregate or Badlands specific? Badlands specific. Okay, great. Jen, last quarter, I think you mentioned that M&A was a consideration for the first time in a while. Can you just update us on what you all are seeing in the market and, you know, if that may still be a use of cash going forward? I think for us, you saw us execute on the Southcross acquisition, great acquisition for us. We're excited to have those employees join the Targa team. Integration is going well, and that's an example of a transaction where we think we're able to buy at really attractive prices and then benefit from synergies both near term and over the medium and longer term. There are more assets and companies available on the market today than there certainly have been over the last couple of years, which is understandable given the strength of commodity prices. For us, the bar continues to be very, very high, and that means that there are a number of unique characteristics that any transaction would have to meet in order for us to even consider looking at it. I think you'll see us continue to be very selective about anything that we spend our time on. Great. Appreciate the time. Okay, thank you. Your next question comes from the line of Brian Reynolds with UBS. Your line is open. Hi, good morning, everyone. Maybe to start off a little bit on future growth projects. No CapEx change with the earnings release, but kind of looking ahead towards 2023, you know, we've started hearing from many of your peers of adding additional frac capacity, and just kinda curious around, you know, Targa's thought process around pursuing a new build versus, you know, and securing 100% of the economics versus potentially unidling the JV frac that's in Mont Belvieu currently. Thanks. Hey, Brian. This is Scott Pryor. Just to touch base, you know, we do feel like the fractionation market is starting to tighten up. The number of inquiries that have come into us, both for short term as well as long term frac needs, has increased. Some of those are actually folks that I think are trying to get a little bit ahead of the tightening of the market by trying to secure fractionation that may start, you know, more dated into the future. We've got a permit in hand for Train 9. We continuously are evaluating when we need to formally start that, the construction of that, and we will stay well ahead of that relative to what our needs are. Recognize that we've got good transparency back to our producers behind our gas processing plants, and as a result of that timing of that, we will be well ahead of that. Again, I feel like the market is starting to tighten up, number of inquiries coming in, and, the view that we have back to our producers, we feel like it, there'll be a time in, here in the near future that we'll look at starting Train 9 and the construction of that. Great. Appreciate that color. Then maybe just as a quick follow-up on guidance and specifically the Permian inlet volumes. You know, so far this year, we've seen a major customer in the Delaware increase their production guidance expectations for the year. The Midland seems to be a little bit flattish the last two quarters. Ultimately wondering if this is related to, one, is there any change in cadence to that Permian outlook? Or maybe said differently, does the guidance effectively imply just a really strong back half of the year as it relates to just volumes flowing through your system, downstream? Thanks. Yeah, no, I think we continue to see really strong activity across our overall Permian footprint. You know, part of what you've seen in the Permian Midland is, and we've seen in previous years, we tend to get more of our growth in that system over the summer when it warms up, spring, summer timeframe. You know, at It has some seasonality in it. Again, we had January and February, which was, you know, kind of impacted more by, you know, cold weather and some operational issues, and we are seeing some of that increase already in March and April. We continue to expect growth across both Permian, Midland, and Delaware. We also have seen some of our larger producers stick with their, you know, kind of stick with their previous guidance and what they're telling us in terms of volume growth. Just 'cause they're getting higher prices doesn't necessarily mean they're going to ramp up production. It is a mixed bag there. We have seen some of our larger customers point to increasing the growth rate. I think that may have some impact on 2022, but perhaps that's more 2023. As we go forward, we are still seeing good activity across our smaller private E&P customers who are continuing to drill. No, I think we are pretty optimistic about our Permian growth from here going forward. Makes sense. Thanks for the time today. Okay, thank you. Your next question comes from the line of Keith Stanley with Wolfe Research. Your line is open. Hi. Thank you. First question, just with Gulf Coast Express, the sale proceeds coming in, should we assume you use that to repay any short-term borrowings you might have done to take out the prefs, or should we think of GCX cash as available for allocation with free cash flow over the rest of the year? The expectation would be that when we receive those proceeds, we'll use it to reduce borrowings under our revolver right now, Keith. Okay. Got it. Second question. Can you just give an update on where you're at for 2023 hedging, particularly for Permian gas basis, just% equity volumes or however you wanna frame it? Yeah, sure. We're significantly hedged on the gas side, and when we do hedge, you know, most of our volumes are, you know, Permian related, so we do hedge Waha basis. We try and cover as best we can, kind of the basis risk associated with our hedges. Where we have, you know, gas in Oklahoma, we'll hedge it at those physical points, as well. We were significantly hedged, you know, kind of earlier in the year, and we've added as we've seen strength in gas prices and NGLs. We've continued to layer on additional hedges, not only for this year, but for the next several years. I'd say, you know, with prices hanging around here, we'll continue with our programmatic approach to continue to add more hedges. Keith, our 10-Q will be published later today, so you'll be able to see in there the volumes that are now hedged across both gas, NGLs and condensate. Great. Thank you. Okay. Thank you. Your next question comes from the line of Spiro Dounis with Credit Suisse. Your line is open. Thanks, operator. Hey, team. Just wanted to talk about the quarter-over-quarter variance on slide 7. Two things that stuck out to me there, just on OpEx, it looks like, I guess I was a little surprised to see costs actually come down for G&P, for labor and chemicals, just given the inflationary environment that we're in. Just curious, is that sustainable? Is that part of a broader cost control initiative? The other item there was just on the G&P margin. Matt, I know you mentioned that commodity really didn't pick up till the end of the quarter, but just was surprised that that was a negative contributing factor. Curious if there was a mix shift in the quarter, any hedging impact there to be aware of. Good morning, Spiro. This is Jen. I'll take the first part of the question. Some of what we did in our G&P business was in the fourth quarter, we actually went ahead and bought fairly significant amount of chemicals ahead of time. Our chemical costs for the first quarter went down as a result of that. I'd expect our Q2 through really Q4 OpEx to step up as we move through time here, as we are seeing higher costs as a result of inflation and just difficulty getting certain things. Q1, I think a little bit of an anomaly. Also on the compensation side, we had a higher bonus that we ended up paying for the fourth quarter, and so that was reflected in the fourth quarter, and then we tend to accrue at a lower number as we begin a new year. That's what we're doing in the first quarter. That's part of what you're seeing as well that I think, again, creating a little bit of an anomaly Q1 relative to Q4. Yeah. Then on the mix shift, you know, when you look at first quarter versus fourth quarter, really the big increase in commodity price was relative to crude oil prices. We don't have that much exposure directly to crude oil prices. We have some, but not that much. It's really on the gas side and the NGL side, and gas was down, and NGLs were up almost offsetting. A lot of the run that we saw was in March, so we had some benefit, you know, kind of late in the quarter, but it's really kind of through April and then into, you know, kind of where we are now. Not a mix shift, it's just kind of the way all three of those different commodity prices moved relative to Q4. Got it. Okay. That's really helpful. Second one, just going back to some comments from last quarter around energy transition. I think you all had mentioned evaluating a few renewable or carbon capture opportunities. Just curious if there's been any update on that front. I'd say we are continuing to work on a, you know, potential carbon capture solution. I'd say that is ongoing. It's going to take a while for us to, you know, develop that. I think we're in good position to develop that. We are working with, you know, others at trying to put something together to see if we can't capture, you know, CO2 out in the Permian and move it downhole. There are discussions at other parts in and around our business as well. I think it's just gonna continue to make progress, but I think it's gonna, you know, be a while before we can, you know, move anything off the finish line too. Got it. Great. We'll stay tuned. Thanks for the time, guys. Okay. Thank you. Your next question comes from the line of Michael Blum with Wells Fargo. Your line is open. Thanks. Good morning, everyone. Wanted to ask about LPG export market. I know you're more heavily weighted to South America, but wondering if you're seeing any drop in demand in China, given the COVID-related lockdowns there. Then I guess just more broadly, any impact to volumes from some of the global supply constraints and some of the shipping bottlenecks we've been reading about. Hey, Michael. This is Scott. First off, I would say that when we initially started our export business, we were heavily weighted toward South America. Since then, much like the rest of the players in the marketplace, we have diversified heavily, more heavily, if you will, to the Far East and that growing demand that is there, places like China for PDH plants, for chemical plants, and even for domestic use. I would say when you look at our performance on a quarter-by-quarter basis, we continue to be very consistent. At times, there are some weather issues that may impact it. There might be some logistical challenges as it relates to the shipping market from time to time, and we have seen some of that and did see some of that in the first quarter of this year. All in all, the market is still very solid. Over time, we will continue to grow. We feel very good about the expansion that we're doing. It's small, but yet very complementary to our business, which will allow us some incremental capacity and provides additional reliability to our customers that are our historical lifters. Again, we've got a good portfolio of customers. They're strong. They stick with us. They appreciate the reliability that we provide. I think as we continue to see LPG's production increase here in the U.S., we will look for incremental ways to continue to debottleneck where it makes sense and push those across the water. Great. Thanks for that. Appreciate it. Other question I wanted to ask was just about ethane rejection and what you're seeing across your system, right now, and then how you see that trending for the balance of the year. Is there any upside to volumes, related to that? Thanks. Yeah, Michael. You know, we are in recovery across our systems, and we have been for some time, so I don't really see a big change for us there. You know, our exposure to ethane is really more on the price side than the volume side. As ethane moves up, you know, we have some hedge, but we do have some you know long on that, so we benefit from higher prices on ethane. I wouldn't expect to see you know with ethane prices moving up much of a volume impact really. Great. Thank you so much. Okay. Thank you, Michael. Your next question comes from the line of Sunil Sibal with Seaport Global Securities. Your line is open. Yes. Hi. Good morning, folks, and thanks for all the clarity on the call. I just had, like, one follow-up from previous discussion on OpEx. It seems like, you know, OpEx over the last couple of quarters has kind of, you know, swung around a bit. I was wondering, you know, is there a good way to think about your OpEx in fixed versus variable buckets, especially, you know, when you think about exposure to commodity chemicals and all that? I don't think that there's an easy framework that I can give you, Sunil, related to that. I think that as we think about OpEx Q2 going forward, it's likely to begin to look more like the fourth quarter than the first quarter. That's probably the best visibility that I can give you right now. We're also seeing prices increase real time. It's a little bit tough to predict as well. I think our operations teams and engineering teams are doing an excellent job of trying to stay in front of, inflation and rising costs as much as they possibly can and are doing an excellent job working with our suppliers. It's just a little bit difficult to predict right now. I think the best visibility I can give you is that second quarter and go-forward will look more like the fourth quarter than the first quarter. Oh, okay. Got it. Thanks for that. On the NGL marketing side, I think you mentioned in the press release also that there was less optimization opportunities. Obviously, some of that is seasonal too, but I was curious, you know, is there a good way to think about that part of your business, and what are the drivers of, you know, those optimization revenues for you? Yeah, yeah, sure. I'd say it's really probably more in the comparison, if you look at last quarter, we had some contango trades that were still unwinding when we had contango that we put on some dated trades. It's really just less of that in the first quarter relative to previous periods. I think that is the primary driver of that. Going forward, I guess, you know, Q2, Q3 are normally seasonally, you know, weak or, you know, seasonally weaker, and then you would expect that to kind of pick up, obviously overlaying some contango opportunities which may show up. Well, the seasonality part of it, we do have some where we get some benefit in both Q4 and Q1 from our seasonal wholesale propane business, and so that'll come off in Q2 and Q3. Yeah, as far as the contango or backwardation or those kind of opportunities that present our marketing team, that really just depends on market conditions. So I'd say in Q1, there was just relatively less of those compared to prior periods, and we'll see what Q2 and the go-forward quarters present us. Yeah. And Matt- Got it. This is Scott, real quick. On the wholesale side of our business, we did see a strong fourth quarter in certain areas of our business, especially those areas where we had nice pockets of field inventory. More of those volumes moved out during the fourth quarter than they did in the first quarter. As a result of that. Yeah We had some uplift, probably earlier in the winter season than we did in the latter part of the winter season, just where our position is on the inventories. Okay, got it. Thanks for all the clarity. Okay, thank you. Your next question comes from the line of Harry Mateer with Barclays. Your line is open. Hi. Good morning. First question, it, you know, seems like you guys made it up to investment grade just in time for the rates market to get turned on its head a bit. I'm curious whether you see more opportunities to optimize the capital structure and your interest expense in the second half now you've done your inaugural IG deal. Good morning, Harry. This is Jen. I think we'll have continued opportunities just moving forward. We do have some higher coupon notes, so depending on the callability and call prices of those notes, we'll be continuing to try to figure out how to best manage our liquidity and our notes positions going forward. I do think there is continued opportunities to benefit from savings, but the cadence of that is largely going to be dependent on the prices that we can call in those notes, and then where can we issue notes in the market going forward. We'll just have to see how that plays out. I think we're in an excellent position anyway. Okay, thanks. I know that earlier in the call you answered that the call on the GCX proceeds is gonna be towards paying down the revolver. Just, you know, would love to get a sense for how you structurally like to plan out liquidity, whether it's a cash balance you like to have, or, you know, what are some guardrails we can think about on a quarter-to-quarter basis that you like to, you know, keep in terms of available liquidity? I think a lot of the cash that you see on our balance sheet quarter to quarter really has more to do with the JVs and the terms of the JVs and when cash is distributed out of those joint ventures than anything else. We're generally trying to manage our liquidity position as optimally as we can. That means utilizing the available tools that we have, whether that be our revolver or accounts receivable facility, or just maintaining cash on the balance sheet. There isn't a hard and fast rule that we're following that I can give you. It's really just us trying to manage as best as possible to minimize interest expense and maximize the liquidity that we have at all times. Okay. Thanks, Jen. Thank you. Your next question comes from the line of John Mackay with Goldman Sachs. Your line is open. Hey, good morning. Thanks for the time. I wanted to go back to some of the comments on capital returns. We've seen some of your peers that, you know, saw distribution or dividend cuts in the past, kind of aiming to get back to where they used to be, and they've kind of started that process now. Just curious if that's on the table for you guys, or maybe, you know, just a little more detail on how you're thinking about that and, you know, whether or not it could be a payout that's more in line with a S&P 500 type framework. Thanks. Yeah, sure, John. Yeah, good question. I think as we you know really review our dividend you know payout, and as Jen mentioned, we'll plan to you know provide an update for you you know early part of next year. It's not our goal to get back to where we used to be. I think we're looking at you know market indicators. We are looking at S&P 400, S&P 500 in terms of. You know, we'll look at yield. We know that moves around with the share price. We'll look at you know percent return based on free cash flow and other cash flow metrics as well. I think we're gonna be in really good position you know to continue to move our dividend higher given all the free ch flow that we have. We'll just evaluate it, I'd say similar to we evaluated it last year. We'll look and say, where do we wanna be? We will look at our peers and see what they're paying out. We'll also look at, I'd say, a broader peer group of, you know, the S&P 400, S&P 500. I think both of those will inform our decision as we think about what we wanna do for 2023, but then also as we think about, you know, kind of a multiyear, how do we wanna be kind of layering in to a, you know, increased payout over time. That's great. Appreciate that, Matt. Yeah, definitely in the buyback camp over here for what it's worth. Okay. Maybe one more from my side. Some of the weather issues kind of masked some of the basin trends. Just wondering if you could give us an update on kind of what you're seeing in terms of green shoots or not in some of your other basins, kind of, you know, outside of the Permian. Thanks. Sure. Pat, do you wanna give a bit of an update there? Sure. You know, we have seen increased activity level across all our basins. We've seen, you know, not a huge uptick, but a pretty steady, nice uptick in our Oklahoma regions, more so, you know, on the southeast side of the state versus western Oklahoma. You know, certainly we've seen people that haven't drilled in two, three years employing rigs and drilling wells. We've seen a lot of recompletions. You know, I'd say we're stemming the tide there relative to, you know, past steady declines over the last 3, 4 years. We're seeing enough activity to offset decline and frankly, in some areas to actually grow. In the Barnett, we're seeing, you know, activity that we haven't seen in the past, and frankly, that's a little more lumpy. You'll see that showing up in our volumes as we go throughout the year. We have some, you know, positive tailwinds there. South Texas is, you know, such a competitive environment, it kind of gets lost in the sauce. Certainly with our New acquisition, there's different opportunities relative to sour gas capture, et cetera. We see opportunity in our South Texas region. You know, the balance is steady, is the best way to put it. The activity level is steady. Certainly, we've had weather events, but you know, we haven't seen a huge uptick, but we've seen good, steady activity levels. All right, appreciate that. Thank you. Okay, thank you. Your next question comes from the line of Neel Mitra with Bank of America. Your line is open. Hi, good morning. Thanks for taking my question. I wanted to follow up on the ethane recovery, specifically how it relates to Grand Prix. In 2023, the basin should probably move to full ethane recovery, and I'm wondering how your third-party shippers will fare on this, whether your incentive rates will go up or your volumes. How do you see the outlook for Grand Prix with ethane recovery for the basin and just trending up? Hey, Neil, this is Scott. As Matt said earlier, you know, when we look at our pipelines that are delivering into our fractionation facility in Mont Belvieu, both of the plants that are operating on our system we do have a few third-party plants that will evaluate ethane recovery based upon their situation, where they're located, and whatever their contracts are around their system. All in all, for the most part, we don't see a lot of swing on both our pipelines as well as the third-party pipelines that are coming into our system. I would say that it's not a big needle mover. Matt kind of indicated that earlier. I think that it, when you look at where the pricing is today, most plants should be in recovery, and that's what we're seeing on our system. Given the price advantage that we see on the petrochemical side, I think that that will continue for a while. There's gonna be some noise from time to time, but all in all, for the most part in our system, we assume that we're gonna be in recovery and bound to a fractionation footprint. Okay, thank you. Second question, I know you market a lot of your producer volumes, residue gas volumes at the tailgate, and you've been planning for a while for the gas egress issue. But can you kind of just walk me through how you plan for that when you have such massive growth on your systems, 10%+ every year, how far in advance you do that, and whether you see any potential issues running into 2023, even though you've started to plan for it early? This is Bobby. What I tell you is it's important to both have your own transport out of the basin, but then a vast majority of what we do is we team up with, I'll call it partners in the basin that have their own transport out of the basin. As you think about us being long both and we look to go sell gas at Waha, we will sell it to people that we know, for lots of different reasons, have that physical transport to get it out of the basin. They're very large counterparties that everyone on this call would know, and that's how we focus it. When you think about how long to go forward, we obviously look at when we think pipes will be coming online, when we expect there to be capacity issues out of the basin, and we make sure we're crossing across that. We don't try to get cute within months. We make sure we're well beyond when those expansions and pipes will come online. We've been doing that. We're still doing that. We've got everything that we think we need covered, and we even take out some insurance beyond that over time. It's one where we're able to plan as far out as we want because people wanna buy the gas for as long as we're willing to sell it. We try to do it and match it up with when we think there could be issues. Got it. That's really helpful. Thank you. Okay, thank you. Your next question comes from the line of Robert Mosca with Mizuho Securities. Your line is open. Hi, good morning, everyone. Just one question from me. Grand Prix volumes have grown pretty strongly over the last few quarters. Just hoping to get your latest thoughts on how that pipeline could be expanded in the medium term, and how early you think an expansion on the Permian segment would be required, just assuming that the potential residue constraint gets addressed. Thanks. Hey, Robert, this is Scott. We have been very pleased with the continuation of increased volumes on our transportation side of our business quarter in and quarter out. First quarter averaging 460,000 barrels a day into our Mont Belvieu complex. We have good transparency back to our customers and our producers behind our plant and the addition of gas processing plants in the Permian. We will continue to add pumps along the pipeline sector. We've got good operating leverage today. Remember, when we throw out those stats around 460,000 barrels, again, for the first quarter, that contribution is coming from North Texas and into Oklahoma from our operations in that area. We will evaluate the need for additional pipe and pipe expansions. We will be well ahead of that relative to what our needs are and the producers behind our system. It's something that we're gonna be well ahead of when it's necessary. Great. Thank you. There are no further questions at this time. I would now like to turn the call back to Sanjay. Thanks to everyone that was on the call this morning, and we appreciate your interest in Targa Resources. The investor relations team will be available for any follow-up questions you may have. Thanks, and have a great day. Ladies and gentlemen, this concludes today's conference call. We thank you all for participating. You may now disconnect.