Shell Midstream Partners, L.P. (NYSE:SHLX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 11:00 am ET


Shell Midstream Partners, L.P. (NYSE:SHLX) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Trusso, and I'll be your conference operator today. At this time, I would like to welcome everyone to today's webcast for Shell Midstream Partners. [Operator instructions]

I will now turn the call over to Jamie Parker, Investor Relations Officer. You may begin your conference.

Jamie Parker

Thank you. Welcome to today's webcast for Shell Midstream Partners. With me today are Kevin Nichols, CEO; Shawn Carsten, CFO; and Steve Ledbetter, VP Commercial and Business Development.

Slide 2 contains our Safe Harbor statement. We will be making forward-looking statements related to future events and expectations during the presentation and Q&A session. Actual results may differ materially from such statements, and factors that could cause actual results to be different are included here as well as in today's press release and under Risk Factors in our filings with the SEC.

Today's call will also contains certain non-GAAP financial measures. Please refer to the earnings press release and Appendix 1 of this presentation for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures. We will take questions at the end of the presentation.

With that, I'll turn the call over to Kevin Nichols.

Kevin M. Nichols

Hey. Thanks, Jamie. Good morning, everyone and welcome to our second quarter earnings webcast. Before I begin talking about our quarter performance, I want to take a pause and a moment to acknowledge the impact that the pandemic has had on individuals, from our staff, to our customers, to our investors and my heart goes out to those who have been affected by COVID-19. As I know, these are difficult times, and I hope through all of this that you're able to stay safe.

As I reflect back on the quarter and the uncertainties that the world was facing from the pandemic, demand destruction, supply/demand imbalance, we were unsure of the potential impacts and there were as many views as there were people willing to give them as to how the quarter would unfold. We believed in the resilience of our assets. However, there were many questions surrounding what would happen to demand and where production cuts would take place. Now as I look back on the quarter, we fared better than expected, both from our strong performance of our assets against the evolving landscape, but also from the real-time actions we were able to take to mitigate the impacts of these challenges.

So today, I'll focus on three areas. First, I'll provide an update on the actual impacts we saw this quarter against the uncertainties that we have been monitoring since the global pandemic and economic challenges began, and second, I'll share some detail on the levers we're pulling to enhance our long-term sustainability. And finally, I want to again highlight the resilience of our partnership assets.

So let me start with the impacts we saw across our business and how the quarter progressed operationally. As I mentioned before, we were observing two key market drivers, demand destruction around finished products and crude