Enterprise Products Partners L.P. (EPD) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 1, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Q4 2022 Enterprise Products Partners L.P. Earnings Conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session [Operator Instructions]. Please be advised that today's conference is being recorded.

It is now my pleasure to introduce Vice President of Investor Relations, Randy Burkhalter.

Randy Burkhalter

Thank you, Andrew. Good morning, everyone, and welcome to the Enterprise Products Partners Conference Call to discuss fourth quarter ‘22 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise’s General Partner, Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call today. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company, as well as assumptions made by and information currently available to Enterprise’s management team. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.

And with that, I'll turn the call over to Jim Teague.

Jim Teague

Thank you, Randy. At our Analyst Meeting last year, we ended the meeting with all senior management, including Miranda, onto the front to take questions. Becca Followill at the time with US Capital Advisors asked me, what I'd like to see in our future. My answer was that I was tired of eights, I'd like to see a nine. Meaning that I was tired of our adjusted EBITDA starting with an eight, I'd like to see it start with a nine. Some folks took that as guidance, which it wasn't, as at the time, I didn't think it was possible. Once we returned to the office, I was visiting with Tug Hanley, kicking around the idea of creating a company-wide goal of a nine. Doug said, let's call it Project 9. So Tug was immediately appointed Chairman of the Project 9 initiative. Tug was joined by 12 others to lead the effort, one of whom Rick Rainey, implemented an internal communications campaign designed to maintain our focus on Project 9 throughout the year with a poster themed around the Starship Enterprise, stating that we can boldly go where Enterprise’s never gone before. Tug Hanley, Yvette Longonje, [indiscernible] and Daniel Boss introduced the initiative via a company-wide webcast, and Starship Enterprise posters were sent to locations throughout the company. The prize was if we made $9 billion adjusted EBITDA, every employee up to and including senior directors would receive 3,000. And if we exceeded 9.3, they would receive 5,000. It was made clear that there would be no safety shortcuts.