Enterprise Products Partners L.P. (NYSE:EPD) Q3 2023 Earnings Call Transcript

Neel Mitra: Okay, perfect. And then, not to beat a dead horse, but the 700,000 barrel per day crude oil increase in 2023. Just wondering, Tony, from your perspective, for 2Q and 3Q, it seemed like we had flat hydrocarbon growth in general out of the Permian, just with all the infrastructure constraints and the heat compression, et cetera. So are you expecting a big kind of September through December ramp? Because it seems like most of the growth that’s come year-to-date has been the first quarter, if I’m not mistaken.

Tony Chovanec: Yeah. I will tell you, it’s very hard to count production quarter-by-quarter. What people are looking at is the EIA numbers, which by their own admission, have been very erratic, sporadic, both of the above. But through the second quarter and through the third quarter, if you sat in our management meeting every Tuesday morning, you would hear about the amount of rich gas that wants to come to our plants and can’t wait till our plants get built. So we really didn’t see a massive lull. I understand that that’s what the EIA reported. The facts are the other thing people worried about is the rig drop because the rigs kept dropping. But you have to remember that we had a tremendous build in rigs in 2022 to just make up for what happened during COVID Couldn’t stay like that at those levels forever.

You had to replenish inventories and you did. So it’s very hard to look and say per quarter, but look, we’re on a path to exceed 600, and I don’t know what takes us from that path off of that path next year, end of story. Well one quarter have freeze offs and one be hotter than the other? Yes, sir. But it doesn’t matter. The calculus is so big because, as Jim’s pointing out, the basin is so large. There you have it.

Neel Mitra: Right? Okay. Thank you very much.

Operator: Thank you. Ladies and gentlemen, at this time, I would like to turn the call back over to Randy for closing remarks.

Randy Fowler: Thank you. Tawanda, we’d like to thank everybody for joining us today. That concludes our call. A replay of the call is available through our website via the webcast. And again, have a good day, and I’ll turn it back to you for any closing comments Towanda.

Operator: Thank you. Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.