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ET Conf CallExcerpt: Keith Stanley That does. That's very helpful. Thank you. Second question. I guess the company and Kelcy in particular have emphasized the importance of growth as an MLP. And today you're coming out and giving multiple years of pretty low CapEx numbers. So it's going to be a lot tougher to grow organically with that type of capital budget. So I guess, how do you think about that? And then what are the key criteria you would look for in a potential acquisition candidate? And I guess most importantly, I'm interested if acquisitions are one of the levers you would look at for your balance sheet strategy to reduce leverage. If you were to buy a business or a company that's less levered and can generate synergies from that? Kelcy Warren Yes. This is Kelcy. You're right. I mean, the -- as large as we are those growth CapEx numbers are low. And that's frustrating to me, but that's what we need to do. It's the right thing to do at this time due to our credit metrics. However, I want to remind everyone and it's been brought up in these discussions, but the backlog of growth that's going to be coming on in the fourth quarter and into the early part of 2021 is huge. And the dollars that are going to follow that are likewise huge. Mackie addressed some of that with the NGLs, but there's others as well. So we went through a very aggressive growth spurt and it's been painful, because it's lasted longer than we expected and cost more than we expected. But now, it's about over and we're relieved that it is. As far as M&A, I think most people in this sector believe that consolidation is necessary. It is very difficult for us to even contemplate anything really because our units are trading so poorly, it's just hard to do. However, as I said in the last quarter ,it would certainly -- any M&A that we contemplated or ultimately did I guess would need to be deleveraging. We would not undertake anything that was not. https://seekingalpha.com/article/4364967-energy-transfer-lp-et-ceo-kelcy-warren-on-q2-2020-results-earnings-call-transcript |
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Msg # | Subject | Author | Recs | Date Posted |
122057 | Re: EVA New 12.2% holder announces stake. | upthebayou | 4 | 8/6/2020 7:20:44 AM |