Energy Transfer LP (NYSE:ET) Q3 2023 Earnings Call Transcript

Mackie McCrea: Hey, Gabe, this is Mackie, and I apologize. We started hearing about halfway through your question. Sorry.

Gabe Moreen: Okay. Can you hear me now, Mackie?

Mackie McCrea: Yes.

Gabe Moreen: Okay, great. I was just going to say to what extent repricing your interstate gas pipeline and storage capacity is going to be winded to your backs in 2024? It seems like some of that’s accelerating as we progress through 2023.

Mackie McCrea: Yes, years ago this wasn’t fun to talk about. It is now. When you look at the value, for example, on the MEP or on Tiger or on Gulf Run or even on SESH, we’re seeing growing, growing demand on all of those assets. GW, 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 $0.05 or $0.06, and now we’re running at full at much bigger spread.

And so, we’re pretty excited about any available capacity. Once it comes out from the contract, we think worst case we’ll roll it over it somewhere, if not higher rates than we already are at unless we’re already at tariff.

Gabe Moreen: Thanks, Mike.

Operator: Thank you. That concludes our question-and-answer session. I’d like to turn to call back over to Mr. Tom Long for closing remarks.

Tom Long: Once again, I 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.

Operator: Thank you. That concludes our conference today. Thank you for attending. You may now disconnect.