Shell Midstream Partners, L.P. (NYSE:SHLX) Q3 2020 Earnings Conference Call - Final Transcript
Oct 30, 2020 • 11:00 am ET
Good morning, my name is Dylan, 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. All participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I will now turn the call over to Jamie Parker, Investor Relations Officer. You may begin your conference.
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 and also in today's press release and under Risk Factors in our filings with the SEC.
Today's call 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.
Kevin M. Nichols
Thanks, Jamie. Hey, good morning, everyone, and welcome to our third quarter earnings webcast. Before I begin today, I want to recognize that we continue to live through an unprecedented time with the pandemic, as well as one of the most active hurricane seasons that I can remember and certainly since 2005. These combined events have impacted our communities, our staff, customers, and our investors, and our focus is on the safe operations, the safety of our employees, and we certainly hope that you are staying safe during this difficult time.
As I look back on the third quarter, we continue to see effects from the pandemic and these storms, as well as some planned turnaround activity from our customers. Against this backdrop, our diversified asset base continued to show strength despite a difficult macro environment. In the offshore, the partnership saw a temporary reduction in volumes as customers shut-in production several times throughout the quarter related to the storms in the Gulf. These shut-ins also impacted Zydeco as we saw slightly lower volumes coming in from the offshore. And our refined products systems continue to see the impacts related to the pandemic as demand destruction caused lower throughput in both the second and third quarters.
With the significant supply and demand imbalance in the second quarter, we were able to offset some of these impacts through storage opportunities. However, as supply and demand has come more balanced in the third quarter, we're seeing a reduction in these opportunities for storage as inventory levels are worked off.
To help offset the impacts to our earnings, our operations and commercial teams work to minimize business interruption in order to maximize business value from our assets during this challenging quarter. And despite