Oneok (OKE) Q2 2026 earnings call transcript

Thank you, Jess. Welcome to Oneok's second quarter 2026 earnings call. We issued our earnings release and presentation after the markets closed yesterday, and those materials are available on our website. After our prepared remarks, management will be available to take your questions. Statements made during this call that might include one Oaks expectations or predictions should be considered forward-looking statements and are covered by the State Harbor provision of the Securities Acts of 1933 and 1934. Actual results could differ materially from those projected in forward-looking statements. For a discussion of factors that could cause actual results to differ, please refer to our SEC filings.

With that, I'll turn the call over to Pierce Norton, President and Chief Executive Officer.

Thank you, Megan. Good morning, everyone, and thank you for joining us today. Joining me on the call are Walt Pulse, our Chief Financial Officer, Randy Lentz, our Chief Operating Officer, and Sharon Swartz, our Chief Commercial Officer. Yesterday, we reported second quarter earnings and raised our 2026 financial guidance for the second time this year, reflecting strong year-to-date performance and continued momentum heading into the back half of the year. Our second quarter results were driven by record NGL throughput volumes, strong refined products demand, and continued volume growth across our systems. The quarter highlighted the positioning of our asset footprint, the value of our integrated platform, and the outstanding execution of our employees. The broader energy backdrop remains constructive, but the more important point for OneOak is that we are converting that backdrop into visible growth.

Our footprint connects key supply basins with domestic and international demand across natural gas, natural gas liquids, crude oil, and refined products. The connectivity across our business segments gives us multiple ways to grow earnings, optimize existing assets, and allocate capital toward opportunities with attractive returns. Importantly, these opportunities are not confined to a single commodity or region. Our integrated system enables us to create value across multiple demand drivers, a differentiator for Oneok.

Our confidence is reflected in our long-term outlook. We continue to target mid- to high-single-digit adjusted EBITDA growth over the next five to seven years, supported by three factors that are increasingly visible. Recently completed and soon to be completed projects draw structural growth spanning Permian Basin processing capacity, Powder River processing capacity, mid-continent fractionation capacity, refined products expansions, and natural gas transportation and storage capacity and LPG exports. Operating leverage available across our assets, requiring little to no capital investment, and allowing us to be flexible to customers' needs and timing. And finally, a growing pipeline of high-return organic projects, Voltone acquisitions, and commercial optimization are creating additional investment opportunities across our system, where commercial discussions are improving our confidence in timing, scale, and returns.

Our long-term strategy remains grounded in the same principles that have gotten us to where we are today. Operational excellence, financial discipline, and a value-driven approach to capital allocation. With that, I'll turn it over to Walt for a financial update. Walt.

Thank you, Pierce. As Pierce mentioned, our second quarter performance and strengthening outlook across our business supported a second increase to our 2026 financial expectations. We now expect a 2026 net income midpoint of $3.6 billion, a diluted earnings per share midpoint of $5.68, and an adjusted EBITDA midpoint of $8.35 billion. This represents net income and adjusted EBITDA increases of $150 million and $250 million, respectively, compared with our original guidance provided in February. At the segment level, natural gas pipelines and refined products and crude continue to perform toward the upper end of the adjusted EBITDA ranges provided in our original guidance.

Natural gas liquids and gathering and processing remain well positioned through the balance of the year. Across the portfolio, organic volume growth, EBITDA from recently completed projects, and attractive hedging and commercial opportunities are providing momentum in the second half of the year and into 2027.

Our 2026 capital expenditure guidance remains unchanged at $2.7 billion to $3.2 billion. We expect capital spending to accelerate through the second half of the year as several major projects move towards completion, bringing us towards the upper end of our CapEx guidance range.

Turning to the second quarter results, 1Oak reported net income of $965 million, or $1.53 per diluted share. A 13% increase year over year. Adjusted EBITDA totaled $2.12 billion, up 7%, driven by volume growth and strong segment-level performance. We continue to expect earnings to largely follow the normal seasonal cadence of our business as we move through the remainder of 2026. With the tailwinds I suggest, I just mentioned, supporting second-half results.

Our overall financial position remains strong and continues to provide the flexibility to invest in the business, return capital to our shareholders, and pursue opportunities that create long-term value. As additional guidance on the application of the One Big Beautiful Bill and the Inflation Reduction Act has become available, we've continued to evaluate the impact of the tax legislation, particularly as it relates to acquisitions and bonus depreciation. Based on our latest analysis, we now expect approximately $2.6 billion of cumulative cash tax benefits compared with the approximately $1.5 billion we previously discussed. These additional benefits, combined with our existing tax attributes, are expected to defer meaningful cash tax payments until 2031, extending our cash tax runway by approximately two years and further enhancing future free cash flow generation.

Higher earnings and improved free cash flow also support continued progress towards our long-term leverage target of 3.5 times debt-to-ebit tie. I will now turn it over to Randy for an operational and large capital projects update.

Thank you, Walt. Our teams continue to execute at a high level throughout the second quarter while maintaining focus on safety, reliability, and customer service. Performance across the system remains strong, supported by increasing customer activity, improving asset utilization, and contributions from recently completed projects. As volumes grow across our footprint, we're seeing the benefits of the connectivity and scale of our assets.

We continue to advance the project portfolio, and as of August 1st, our Denver Area Refined Products Expansion was placed in service. This project adds 35,000 barrels per day of capacity into one of the fastest growing markets in our footprint and provides a new direct jet fuel connection to Denver International Airport. In the Permian Basin, we continue to expand processing capacity to support growing producer activity. Following our recently relocated 150 million cubic feet per day plant in the Midland Basin, we remain on track to complete 110 million cubic feet per day of Delaware Basin plant expansion projects during the third quarter.

Additionally, based on production outlooks in the basin, we've increased the capacity of our Bighorn plant to 400 million cubic feet per day from an initial capacity of 300 million cubic feet per day. Vichorn remains on schedule for completion in mid-2027. Upon completion, our Permian processing capacity will increase to nearly 2.4 billion cubic feet per day. In addition, along with our initial 60 million cubic feet per day cutter plant in the Powder River Basin, which was previously announced, we've begun construction on another 120 million cubic feet per day cutter two plant, which we expect to be online in the first quarter of 2028.

And finally, phase one of our Medford fractionation project remains on track for completion during the fourth quarter. Medford Phase I will add 100,000 barrels per day of mid-continent fractionation capacity, with Phase II expected to be completed in the first quarter of 2027.

Looking ahead, the projects entering service over the next several quarters are expected to add visible earnings, increase system utilization, and support our long-term growth outlook. With that, I'll turn the call over to Sheridan for a commercial update.

Thank you, Randy. Firstly, commercial activity remains strong during the quarter, supported by favor of fundamentals across all four of our business segments. We delivered solid volume growth across our integrated system, driven by increased customer activity, healthy domestic and international demand, and continued production growth in key producing basins. Starting with the natural gas liquid segment, raw feed throughput volumes increased 7% year-over-year, with growth across all regions. Utilization continued to increase across the system, supported by improved seasonal demand and producer activity. The Gold Coast Permian region led performance, increasing 15% year-over-year, driven by increased production volumes and the continued ramp-up of recently connected third-party plants.

In the Rocky Mountain region, NGL volumes increased year-over-year, even taking into account a contract roll affected at the beginning of the quarter, which was previously discussed and assumed in guidance. This was more than offset by growth across the region and continued strength in ethane recovery. Higher NGL pricing and export demand continue to support ethane recovery across all regions, and we expect these dynamics to remain favorable into the third quarter. Global NGL demand remains strong, supported by growing petrochemical demand and continued interest in securing long-term access to reliable U. S. supply. We're pleased to announce that we've reached our targeted contracting threshold of 80% for our 200,000 barrels per day of LPG export capacity, which is currently under construction as part of our export dock joint venture.

The capacity is supported by high-quality counterparties, and customer interests remain robust, including discussions that extend beyond the initial contracted period and into the next decade. This underscores both the growing demand for U. S. sourced LPGs and the value of the terminal's advantage locations.

Turning to the refined product and crude segment, demand fundamentals remain positive during the quarter. Year-over-year refined products volume shift increased 8%, supported by gasoline and diesel demand, high refinery utilization, and refinery maintenance dynamics. Blended volumes were also strong during the quarter, driven by increased system throughput. Higher gasoline volumes allow us to blend more product and further optimize operations across our network. While our heads position limited our ability to fully capture the benefit of wider spring blending spreads we have secured additional fall hedges at higher prices and extended new hedges into spring 2027 improving visibility into future blending margins The location and flexibility of our refined product system and our ability to clear barrels in a dynamic market remain significant competitive advantages.

As refinery utilization remained high and product flows continue to evolve, our unique bidirectional connectivity between the Mid-Comp and Gulf Coast allow us to efficiently connect supply with the strongest demand markets, including an increasing pull for U. S. refined products and exports along the Gulf Coast. Demand for our marine export services also remain robust. At our Seabrook Crude Export Joint Venture, throughput increased approximately 20% compared with the first quarter, included record crude oil loadings in May. The facility remains highly contracted and under take-or-pay agreements for the foreseeable future. The midland crude gathering volumes increased 10% compared with the first quarter, reflecting continued strength in this higher margin business. Rigs have steadily increased on our midland crude gathering position throughout the quarter, and we currently have more than 30 rigs operating on our acreage.

In addition, strong Houston air refining and export demand drove outperformance on our long-haul crude oil pipelines. Moving to the natural gas gathering and processing segment, volumes increased across all regions compared with both the second quarter of last year and the first quarter of this year. Producer activity remains healthy across our footprint, and development plans continue to track largely in line with expectations communicated throughout the year.

We maintain good visibility to the remainder of 26 and into 27. In the Permian Basin, our recently added Midland capacity expansion positions as well to support increased development activity in the Barnett Formations, while our planned projects in the Delaware Basin provide additional capacity to support anticipated growth into 2027 and beyond. We currently have 11 rigs on our acreage in the Mid-Continent and 13 in the Rocky Mountain region, up two rigs in the Rockies compared with last quarter. Both areas experienced a seasonal pickup and activity during the second quarter, driven by higher well completions.

I'll close with our natural gas pipeline segment, where continued transportation demand and favorable market conditions drove another strong quarter. Waha to Katy location price differentials continued to benefit this segment during the second quarter. We expect lower earnings in the second half of the year as Permian take-away capacity enters service and differentials narrow, consistent with our full-year outlook and guidance assumptions.

Looking forward, power generation, LNG exports, and industrial development continue to support increasing natural gas demand across our footprint. We continue to advance commercial discussions supporting multi-large-scale data center developments. While these projects have not yet reached FID, continued commercial project reinforces our confidence in the scale and durability of the opportunity.

From the power generation perspective, we were recently awarded a supply agreement for a one gigawatt of power plant demand, further expanding our participation in a growing source of natural gas demand. Supporting electric generation has long been a core part of our business. Our intra-state natural gas pipeline system is already directly connected with numerous power plants across our footprint and is well positioned to serve future demand growth.

Pierce, that concludes my remarks.

Thank you, Sheridan, Randy, and Walt. As we step back, it's clear that demand fundamentals remain strong, and the long-term outlook for U. S. energy infrastructure remains compelling. And as we look across our business, the message is straightforward. We raised guidance for the second time this year, extended our cash tax runway, advanced key projects, and strengthened visibility into earnings growth and free cash flow through 2027. Our integrated multi-molecule platform positions us to capture opportunities across commodities, regions, and demand drivers, while maintaining financial and discipline flexibility.

And most importantly, none of this would be possible without the dedication of our employees and their commitment to safe, reliable, and disciplined execution. With that operator, we're ready to take questions.

I'd start out by saying that this is not one thing that's driving this, you know, this conclusion for us. We actually have a multi-reinforcing growth drivers. Our assets are positioned in these premier growth basins in the U. S. and especially in our export markets. And the growth across our footprint is actually underpinned by basically five things, not just filling the white space that you mentioned.

It's the continued strong Permian, Mid-Condent, and Powder River growth and the associated natural gas liquids. It's the stable Bakken growth through improved well productivity. It's the rising US LPG export market, and there's a shift definitely in the global crude oil demand to a more reliable and a more resilient supply. And then you've got your LNG exports. It's driving the natural gas increase across the United States. It's driven by that growing 30 BCF a day or over 30 BCF a day LNG export and your domestic natural gas fire generation and industrial demand. So these facts all give us the confidence that we have to that high single-digit EBITDA growth over the next five to seven years.

So it's not just one thing. It's a multitude of things, and it's across all five of our business segments.

Yeah, as we talk about the margins, you know, we did see a little bit of reduction in the margin, overall margin on certain parts of our system, and this was really driven by increased ethane. We saw versus how much the increase in C3 plus we had. That happened, you know, on all three of the seconds, Permian, Midcon, and the Bakken, where especially discretionary ethane out of the Bakken comes at a much lower rate Then what the C3 plus at full rate is getting out of the Bakken. And like I said, we did see both the increase in C3 plus in the Bakken, but we also saw a greater increase in ethane. Now, and that also became apparent in the mid-continent, where we had a large increase in ethane in the mid-continent.

And those rates are tiered rates that we've had for a period of time where we charge a higher TNF rate for the C3 plus than we charge for the ethane, even at full rates. And so as that more, I think, comes on, it can have a little bit of effect on our overall margins that we have in there. But we are seeing a lot of increase of volume across our system. And one area I kind of note is the permit on volume, where we've seen here in the last month or two a strong increase in our volumes, substantial increase in our volumes. And really looking at it was kind of tied to the way Waha to Katy spread.

But as that spread came in and Waha became positive, we saw a lot more volume than we had anticipated behind our NGL system come on in that area. So we've seen July has been a great month, and August is following suit on good uptick in volume on our NGL system.

Yeah, our rates out of the bucket are still extended for a period of time. We really don't have anything of material coming up until late this decade, and most of the stuff is into next decade. So we feel very good about our NGL rates out of the bucket at this time.

No, the $35,000 is signed up by firm take-or-pay contracts. Obviously, there may be a little opportunity that always our operating team finds a way to squeeze a little bit of volume out there that we may be able to get, be able to enjoy a little bit on a spread that happens there, but it's under, majority, almost all of it is under long-term contracts, long-term firm contracts.

Yeah, I mean, our egress for NGLs out of the Bakken is strong. We still have, we're running, you know, up around, sometimes up to 500,000 barrels a day, which gives us plenty more capacity to be able to move in there. And we can flex on the ethane if we want to. So we don't really see NGL egress out of the Bakken being an issue in our forward plan.

Yeah, we continue to have contracts that roll in the mid-continent different areas, and some of them were put on at a higher time where margins were higher. So there will be a little bit of – could be some of these contracts coming back to more of what we see the market is at this time. But typically, anytime we're dealing with customers on that, there's a give and take in areas that we work with. And so there is value shifted back and forth between different patients that we've talked about as we bundle rates with our large contractors. But most of our contracts in the mid-con still have some term on them. For a period of time, nothing's coming up here in the next month or two or even into next year.

This is Pierce. The only thing I add to that is the fact that any sort of contractual movement we already factored that you know into our guidance numbers So that fully baked in to market rates Okay, great.

You know, what I would say on your first question is we've come out and said that with the expansion, the mainline expansion of West Texas NGL pipeline, we have capacity up to 740,000 barrels a day.

So with that and what we're seeing today, we still have plenty of capacity to meet the demand that we have coming on, both from our processing plant expansions and the growth that we're seeing from third-party plants are coming on as well, As well as the opportunity to grow our processing even further than we have announced into the future. So we think we got a very good position there. A lot of operating leverage, as you would say, that we could move additional NGLs on that system. So we don't see how to expand that for a period of time.

What was your second part of the question? The second one was on the legacy NLINK volumes and recontracting and bringing some of that on to West Texas LPG. Yeah, as I said, there's a little over 50,000 barrels a day that we control that was previously contracted under NLINK on another third-party pipeline, and those contracts will start rolling off here starting a little bit later, 26 and 27, 28, and all that volume will come directly over to our NGL pipeline when they roll off.

Yeah, I think a little bit, going anytime with the producers get a little bit better netbacks than anything else, That helps them to increase their production or have more incentive to increase their production. In terms of our ethane, discretionary ethane that we have coming out of the Bakken, really it's based on a lot of what's coming out of Canada and what's held back out of Canada is still the incremental barrel, incremental MCF to come on the system. So we still think on the ethane side will be a nice spread for us to enjoy on the discretionary side as we continue to go forward into the future.

So I appreciate the question. I'm going to throw that question to Walt for the capital spending update there.

Well, you know, as we've been talking about, we have a pretty nice backlog that is building. We've got quite a bit being completed here in 26 and 27, all of which will then bring on that EBIT going forward.

The backlog that we have is more in the midsize projects. We don't have any billion-plus right now on the horizon, so that should moderate our capex from the current levels down into that $2.5 billion kind of run rate going forward. Of course, our commercial team is always out there looking for great opportunities, and to the extent we find them, we'll clearly jump on them. But I think that with that $2.5 billion run rate call, you're going to see some very significant free cash flows still coming to the bottom line.

Well, I'll take the first part on the AI data centers and PowerGen. And, you know, obviously in my prepared remarks, we talked about that we have secured a one gigawatt power gen supply contract that will be the main, will be the supplier of natural gas into that system. It's a really nice project. It's not a high capital. I mean, it's over $100 million capital we'll have to spend at a very nice return at firm demand. And we also are in late stages discussions with a couple other opportunities to be able to supply AI data centers. No doubt that commercialization has taken a little bit longer than what we had anticipated on some of these projects.

But I think we're seeing that across the board where it just takes a little bit longer time to get them across the finish line. But we're feeling really good about our position, especially where they're at. We have a strong competitive position, and that's why we've been able to advance these discussions as far as we have.

And then on the capital, I would just say that, you know, those types of projects are really what I was talking about. They're kind of singles and doubles. They're in that $100 to maybe $400 or $500 million top end, so fit really nicely into our capital budget going forward. And then clearly in Randy's remarks, he went through a list of other projects that we've got underway, all of which are very attractive and maybe doubles and triples there, a little bit bigger.

Well, I mean, obviously, we are very satisfied, very excited about reaching our threshold on the LPG export dock. And as I mentioned in my comments, we're actually starting conversations with potential offtakers that want to start looking at when these contracts roll off into the next decade and securing that going forward. We have seen since the war that there's been a lot of additional new entrants wanting to talk about the security of the U. S. supply for both LPG and crude oil. We talked about our Seabrook export dock is 100% contracted to the foreseeable future under firm take-or-pay contracts. So we are seeing growth across liquids demand.

One thing we don't mention very often is our refined products export capacity. We are seeing good volume growth on that, good pulls on that, very strong, which is pulling, obviously, volume throughout our whole system down there to go forward. So we see that opportunity to continue to grow. Whether or not to go forward anymore, as I said on the LPG side, we kind of want to get this up and going and show our customers that we can operate this at the level and reliability that we promised them. But we continue to look and see if there's something else out there and continue to engage with customers and continue to go forward. But there's definitely a resurgence of people wanting the security of U. S. energy supply.

Teresa, this is Pierce. You know, some of that upside could be in that extra 20 percent in our producing community, you know, wanting that full wellhead to water pull. So that's one of the other reasons that we left that position open, not only just for operational reasons, like Sheridan said, but looking at potential upside for us in the future with that grounding of that 80 percent was important for us.

Yeah, we're excited about getting this pipeline up and operating. You know, it's been – we've been working on it for some period of time. Operations has done a great job to get it on on time. As we've noted, we brought that on. We laid a 16-inch pipeline that has upwards of possibly 200,000 barrels a day of capacity. We're only running 35,000 barrels a day on that. We've seen for a period of time that pad four could need more volume going forward, and that could be supplied by this pipeline. So there's been some talk of some projects getting into the Salt Lake City that we feel we will play a part in those, be able to, that we can get the capacity there the cheapest and the quickest as we have set that pipeline up for expansions and going forward.

So getting this pipeline was very critical to us to show that and be able to show everybody that we can expand it and be able to supply that growing demand in Pat.

Well, it's really a combination of future CapEx and then, to quote Spiro there, the filling the white space. We've got plenty of operating leverage across our businesses. So as we are able to do brownfield expansions off of that, we'll continue to grab opportunities that really attractive capital. But coming back to some of the drivers on that, here in the short term, and we think going forward, Sheridan mentioned the world looking for diversity of supply. We've seen very significant volume growth on our refined products go into the Gulf Coast, and that can be really meaningful for us because it's pulling tariff across the system.

You know, we've got rigs up in every one of our basins, visibility to more coming. Commodities were well hedged here in 26 so we didn really get a big benefit from this pop here in 26 We enjoy it on the incremental supply that we get above what we had hedged but we going to really see that benefit as we roll into 27 And then one that we found really interesting, you know, while we did benefit from the Wahada-Katey spread, as that narrowed down, we really have seen a nice pickup in NGLs from volume that was shut in behind our system, And I'm mostly on the third-party plans.

So with this constructive backdrop here, we're confident in the new guidance. If the momentum holds, we might even be updating you in Q3.

Yeah, I would say we saw a significant increase in ethane recovery in the MidCon. That's probably one of the biggest ones at full rates, which has been good. But there was still up in the Bakken because of the difference in rate that you have between a full rate for C3 plus versus this discretionary ethane that we bring on. A little bit of volume can affect that by, you know, I think it was down a penny or so. It can affect that with those rates that we have there. So we saw good ethane recovery in the Bakken. And then, obviously, in the Permian, we also saw a little bit more of that coming on the Permian.

Actually, the growth in the Permian was much more weighted to the C3 plus side.

Yeah, this is Randy. We've got a little bit of both. I mean, we have existing customers that are really performing. As Walt mentioned, too, I think the Waha, you know, spread their narrowing has helped a lot. We're seeing that increase. But we're also just seeing our commercial people doing a really good job of doing additional deals and, you know, interest in existing customers to increase that. So it's a little bit of both.

Yeah, we would think that our EPS growth rate should exceed that EBITDA growth rate, especially as we move into more free cash flow and potentially take the opportunity to buy in some shares. So we're very constructive on EPS growth rate.

Yeah, so in the processing plants coming online in the near future in the Permian, you know, we have here in the third quarter, as Randy outlined in his comments, we have 110 million a day coming on in the third quarter. That will be in the Delaware, and they're going to fill up pretty quickly. That $110 million a day is going to fill pretty quickly. We have good line of sight on volume growth in that area. The Shadowfax plant in the Midlands is already up and going, and we'll be filling it as well quickly. Then we have the Bronco plant that will be also out in the Delaware, which will be into 27. We'll have that later into 27.

That will be filling as well, and that's the one that Randy had mentioned that we originally FID'd that $300 million a day due to what we're seeing with producer activity and commitments we have on our system. We've already upsized that. It was a very cheap upsize to $400 million a day, so that's making that project even look even better up there.

Well, you know, I think that, you know, we're seeing a nice pickup in producer activity. You know, clearly we've got a constructive market in the refined product side with a healthy spread on our upgrades there with the Arbob to butane spread. And the fact that we're seeing rigs across the board coming in, really nice strength in our crude gathering business with rigs coming in there. So it's really across the system we're seeing our customers wanting to take advantage of these slightly higher prices and positioning themselves for growth through 26, but really strongly into 27.

One thing I may add to that a little bit is that we came in pretty hedged in 26 on refined products, but with this increased volume we're seeing across our system, that is allowing us to hedge even more or allowing us to blend in even more, and that was not hedged at the lower prices. We're able on this incremental volume, we're able to capture that at a higher rate going forward. And if that volume continues into the later half of this year, the strong volume that we think could possibly happen, that's another thing that gives some tailwinds.

So this is, Pierce, I would say that the majority of that growth is the organic. It's everything that I mentioned. It's about continuing to optimize our systems. It's continuing to take advantage of synergies, continuing to, again, quote Spiro, fill that white space with very little capital. That's the majority of it. As it relates to the M&A, my message there is the same that it's always been, which is we're going to be intentional and disciplined about what it is that we're doing, and we're always looking to expand and extend our footprint in any of our bases.

So wherever those opportunities present themselves, we're going to be looking at those.

Yeah, that's right. We're staying with that.

Yeah, what I'd say is that we've seen probably the largest on our NGL coming from third-party plants. Obviously, we've seen some on the GNP. We need to see if that continues to go forward, but it has been substantial. It has at times has approached as much as 100,000 barrels.

I'd say in some areas there is a little bit of addition because we've talked to producers about adding more rigs on there. I mean, we know for sure there'll be another rig added into the Bakken. It's an area that we know is going in there. But it's either off of what rig count we have today or talking to producers what is coming in the future.

The only thing I'd add to that is we tend to be excited on the rig count as it relates to gas. I know that's associated gas, so that's some areas of dedication. But we're seeing significant, you know, activity on our dedicated oil gathering dedications. So, it's a reason we started including that in our prepared remarks because I think it's meaningful.

Yeah, this is Randy. So, you know, as I mentioned, we upsized Big Horn, and, you know, we had predicted that we would probably need to do that. And so we were able to take advantage of that at a pretty low capital increase. We've also gotten ahead of buying long-lead equipment that you're referring to. We already have another plant that effectively we've secured, so we'll be able to put that out into the permium and deploy that as needed. With the growth that we're seeing from existing customers, the plans they have, we're always staying ahead of that to make sure we can perform, and that's what we've done. So I feel like we've got a good handle on that.

Thank you, Jess. Our quiet period for the third quarter starts when we close our books in early October and extends until we release earnings in late October. We'll provide details for that conference call at a later date. Our IR team will be available throughout the day for any follow-up. Thank you for joining us and have a great day.