Neal Dingmann: Thank you. Thanks guys.
Operator: Thank you. And our next question today comes from Theresa Chen with Barclays. Please go ahead.
Theresa Chen: Hi. I wanted to ask related to the line of commentary around the synergies. Can you just help us think about how much commercial synergies are in that $450 million to $470 million 2023 refined products and crude EBITDA guidance for the year. And specifically, are there incremental butane blending opportunities during this winter and 4Q outside of what MMP had locked in during this past summer? Just in light of still elevated octane spreads versus historical levels and your natural length in butane, coupled with your marketing and optimization capabilities?
Sheridan Swords: Theresa, yes, we do think there is a little bit this quarter. As you said it, a lot of it has been locked down or been hedged, but we do have some above that, and we are seeing wider spreads at this time, so availability is there, and also with our position, legacy normal butane position. There is opportunity there. We will have the butane available, and we can work a little bit on logistics cost. We think most of that’s really going to come as we come into next year where we will see a much bigger opportunity for synergies in the butane blending in the 2024 timeframe.
Theresa Chen: Thank you.
Operator: Thank you. And our next question today comes from Keith Stanley at Wolfe Research. Please go ahead.
Keith Stanley: Hi. Good morning. First, just a follow-up on West Texas LPG, it’s a big step-up in capacity from 300 a day to 740 a day. Do you see any strategic rationale to building or buying Permian plants to bolster your long-term NGL supply position? It would seem like you would have a lot of synergies doing that and a lot of operating leverage as you fill the pipeline.
Sheridan Swords: Keith, we continue to look at that, and we have looked at a lot of different opportunities out there. What I can tell you is just by us expanding, we started off at about 140,000 barrels a day, now we are going up to 700,000 barrels a day. It has not been an impediment for us to be able to contract NGLs on that pipeline. But we will continue to look at as opportunities come if we need to get into the G&P space. And if it makes sense, we will get into it and do that. But so far, we have been able to contract and expand that pipeline without having a G&P presence. And a lot of that is, as you think about it, we have a very integrated value chain in touch. A lot of the producers out there in many different areas, so if we look holistically across our system, we can create and offer a very attractive program to them to incentivize barrels coming on to our West Texas system.
Pierce Norton: Keith, this is Pierce. I think this is the point in the call where I would tell you that we are going to be intentional and disciplined about any future M&A opportunities.
Keith Stanley: Got it. Thanks for that. Second question on SWRO [ph], and sorry if I missed this, but – can you say, are you in discussions or looking at working with potential partners on the project, or do you think it’s more likely you would move forward on that by yourself?
Walt Hulse: We are in a position right now where we are working towards FID and expecting the presidential permit here by the end of the year. And we will lay out the full program if and when we get to that FID point in time.
Keith Stanley: Okay. Thank you.
Operator: Thank you. And our next question comes from Sunil Sibal with Seaport Global Securities. Please go ahead.
Sunil Sibal: Yes. Hi. Good morning everybody and thanks for taking my questions. So, my first question was related to the West Texas LPG and I apologize if I missed this, could you indicate what is that system running at right now? It seems like, you had a little bit of a step down in volumes.
Sheridan Swords: West Texas LPG throughput, yes, we can – I am sorry, as soon as your question about how – what are our volumes looking at like on the West Texas throughput today?
Sunil Sibal: Yes, ballpark.
Sheridan Swords: Yes, our volumes continue to – we continue to grow that volume, especially as we bring some of these plants online. But right now, we are running about 430,000 barrels a day is coming through our whole Gulf Coast – Permian and Gulf Coast system on the LPG. And we have capacities when we get this completed, we will be able to have capacity for over 740,000 barrels a day.
Sunil Sibal: Okay. And thanks for that. And then my second question was a little bit more broader. We have seen a number of E&P deals announced over the course of last few months. And I was curious if you had any dialogues with your E&P customers with regard to that, and how is that impacting your dialogue with the producer customers?
Pierce Norton: So, I will kind of take – I think that’s a big picture question. First of all, I think with – go all the way back to OXY with what they did with Anadarko and then fast forward to what Exxon has done and the most recently, Chevron. We actually view that as very positive because most of those companies are kind of reinvesting in domestic production, very large companies. So, we see that as a positive for domestic production here in the United States, so that’s the first thing I would say. The second thing was as we do business with all of those people, and now that we are not only in gathering and processing, but in natural gas pipelines, in the NGL business, refined products and crude that goes into this bundling concept where when you have that as a producer, one of your areas, you have added different businesses going forward.
We just feel like there is even going to be more opportunities to bundle different deals together to get more and more businesses with these larger companies.
Sunil Sibal: Okay. Thanks. Thanks Pierce.
