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Shell Midstream Partners LP (NYSE:SHLX)
Q1 2020 Earnings Call
May 8, 2020, 1:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning. My name is Shalon, 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.

I would now like to turn the call over to Jamie Parker, Inventor Relations Officer. You may begin your conference.

Jamie Parker -- Investor Relations Officer

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 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 -- Director, Chief Executive Officer and President

Hey. Thanks, Jamie, and good morning, everyone, and welcome to our first quarter webcast. These are extraordinary times both within our industry as well as worldwide. So before we begin, let me acknowledge the dynamic circumstances that we're all facing and tell you how Shell Midstream is responding, keeping care of our people and our assets top of mind. Our operational teams are all taking recommended precautions while keeping our facilities fully operational and running safely to ensure we keep America's energy moving. And I'm very proud of my team who continues to give their best under these difficult circumstances. Shell has a long history of caring, listening, responding to our customers, our colleagues and communities.

And we will do what is necessary to manage and recover from this unique time in our history. So with the current landscape serving as the backdrop for today's call, I'll focus my comments in three areas -- the impacts we're seeing across our business, the actions that we are taking in the short term, and ultimately how we're positioned for long-term resilience, something we have always demonstrated. So let me start with the impacts that we're seeing across our business from the unprecedented supply/demand volatility. The assets currently experiencing the most impact are those transporting refined products. The industry has seen demand reduction across the country of approximately 50% for gasoline, 80% for jet fuel, and around 10% for diesel.

And these reductions are impacting pipeline throughputs as well as causing refineries in the US to lower run rates and in some cases shut down. So with refineries consuming less crude, crude is finding its way to storage which is quickly filling up, and this is causing producers in some basins to reduce production. The situation remains dynamic and our systems will be impacted by varying degrees should the demand imbalance continue. I'll leave it to Shawn to talk more about the second quarter later in his section. So how are we taking action in the near term to navigate through the uncertainty? There are three distinct levers we are pulling real-time. First, we are maximizing opportunities to grow revenue, particularly with storage. As an example, we've secured additional storage in the Mars caverns to meet customers' needs for crude storage on our systems given the contango market environment.

Second, we are actively reducing our costs, focusing on must-have activities not only to reduce exposure in the near term, but ultimately to achieve sustainable cost reduction, something I will discuss more in future quarters. And third, we are selectively reducing discretionary project spend without sacrificing long-term growth aspirations. It's important to note that despite the difficult environment, we continue to progress discussions with producers for the Mars expansion project. We expect to sign definitive agreements by the end of the year and have the project online in 2021. So now, let me talk about how we're positioned for long-term resilience. In the offshore and in general as it relates to crude, there's been much talk about lower price environment and which areas of crude production will be affected.

We believe that the production basins we serve will fare better than others. Let me tell you more about this. It's been reported that certain onshore and shallow water producers have started to shut in production. However, it's important to note that the majority of the customers we serve in the Gulf of Mexico are large investment-grade companies with the ability to weather the current environment. On top of that, volumes that we transport are predominantly medium-sour crude grade, which the refining centers in the Gulf Coast need to maximize diesel production. And diesel is the refined product in the highest demand in today's environment. This advantage is supplemented by our corridor systems optionality with access to multiple refining centers and access to storage hubs like Luke, St. James and the Strategic Petroleum Reserve, also with access to water.

To-date, the crudes being impacted the most both in terms of production as well as price are those that are landlocked with less access to water. With a unique optionality and crude-grade advantage along with a lower marginal cost of production, we feel strongly that the Gulf will retain its long-term strength, and as always, we believe we are well-positioned with one of the premier corridor networks to capture these benefits for the Partnership. Lastly, in our onshore portfolio, our assets span the commodity supply chain and possess unique advantages long term. Examples include Colonial and Explorer which are the most cost-efficient options to their respective demand centers and markets from the Gulf Coast, Zydeco, still one of the best connected systems onshore for crude in the Gulf Coast.

And in the case of our refinery gas pipelines and Norco Logistics assets, we transport and store the primary feed stocks to keep our affiliates running backed by long-term take or pay contracts. Like the offshore, we believe our onshore assets are well positioned and should ramp up once demand recovers. So before I turn the call over to Shawn, let me leave you with a few thoughts. While the entire country and our industry are dealing with difficult times, our portfolio is well positioned and is resilient. We are taking actions to manage the business in the short term, all the while progressing value-added long-term projects for the Partnership and Shell Midstream and our customers are well-positioned to weather the current macro environment. Clearly, there's uncertainty in the markets at this time. However, our forward outlook is more about U.S. demand recovery and less about commodity price, and I am confident in our ability to rebound with strength as demand in the U.S. moves toward recovery.

So with that, I'll turn it over to Shawn. Shawn?

Shawn Carsten -- Director, Vice President and Chief Financial Officer

Thanks, Kevin. Now, let me go over the full quarter results where we saw continued strength across our portfolio through the first quarter. For the quarter, the Partnership performed in line with our expectations earning $138 million in net income generating $196 million in adjusted EBITDA and delivering $170 million in cash available for distribution. Now when we look quarter-over-quarter, the primary drivers on an EBITDA and cash level basis were higher distributions from Colonial and Explorer and increased throughput on the Eastern Corridor, partially offset by not having the Mars reimbursement payment which was received last quarter. So now let me move quickly to our forward guidance. As Kevin discussed earlier, there are quite a few moving pieces that could affect the Partnership's earnings for the second quarter of 2020.

On April 1, we closed on the acquisition of the Mattox Pipeline and the Norco Logistics assets from Shell. And as previously discussed, the assets are backed by long-term fixed commitments and are expected to provide an estimated $125 million to $135 million of cash flow from operations, all this during the 12 months following the closing of the acquisition. Now in the capex space, we now plan to spend about $38 million for the year, of which around $6 million will be growth capital. Now, this is a reduction from prior guidance of $46 million of capex spend in 2020. This reduction is primarily related to maintenance capital as we have deferred projects to outer years and have slowed our Permian growth. And in the near term, we face headwinds related to reduced refined products demand across our finished product systems along with the subsequent impacts on crude storage and ultimately oil producers.

Now these challenges are primarily related to demand disruption, which backs up the value chain all the way to the crude. We anticipate our second quarter coverage ratio to be less than 1 times. But given the current levels of uncertainty, we're unable to provide a reliable range of outcomes at this time. The level of impact will be dependent on how long refined products demand remains low and if crude throughput on our systems is further curtailed. But let me remind everyone of our strong financial framework and a conservative balance sheet. We entered the current macro environment from a position of strength. We have over $1.2 billion of liquidity available to us and with very few facility covenants with our lender, Shell. And as highlighted earlier, we continue to hold a very positive long-term view on our onshore assets, which provide cost advantage transport to key demand centers along with access to export over the water.

We're also positive on our Gulf of Mexico where producers have already made their investment, and we believe the majority will continue to produce as long as they can place their barrels. Let there be no mistake, these are volatile times. So we'll update investors in future quarters as the market dynamics play out. Now, we currently intend to maintain our distribution rate of $0.46 per limited partner unit for the second quarter of 2020, and we'll utilize our balance sheet to cover any operational cash flow shortfalls where needed. Our board will monitor the current business environment and make decisions regarding future distributions on a quarter-by-quarter basis.

So with all that, we'll now take your questions. Operator?

Operator

[Operator Instructions] And your first question comes from the line of Shneur Gershuni.

Michelle -- Analyst

Hi. This is Michelle [Phonetic] on for Shneur. Just a quick question on the distribution policy. It seems the language in today's press release has changed on the distribution. And given the context that Shell cut its dividend, has the commitment changed and SHLX might follow the path of Shell or is it more a scenario that SHLX is closely following its own volume drivers for the virus and SHLX drivers are different than Shell?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. Thanks a lot for that question. No, I wouldn't read anything through to that from Royal Dutch Shell and what's happening there. COVID-19 has introduced just a tremendous amount of uncertainty. And as Shawn and I have said on the call, we're more driven by demand and what happens with demand recovery. We've seen some early signs of recovery just within this last week, but it's very early days and very difficult for us to predict what's going to happen for the routes. So we think it's a responsible thing to do to review the business on a quarter-by-quarter basis with the board. We feel confident in quarter two or halfway through quarter two and that's why we gave you the guidance for quarter two.

Shawn Carsten -- Director, Vice President and Chief Financial Officer

Yeah, Michelle, it's Shawn. Just to add in to what Kevin said, let me remind you that the RDS portfolio of the cost is the global portfolio across a number of businesses. Now our business is less about price and more about demand as Kevin highlighted. And so we have very little commodity exposure, and we believe strongly in the basins that we work in and the assets that we have, but we're a very small portion of the RDS. So you shouldn't read through from what RDS might have done to our assets or to our distribution policy.

Michelle -- Analyst

Great. That's helpful.

Operator

Okay. Your next question comes from the line of Theresa Chen, Barclays.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Hey, Theresa.

Theresa Chen -- Analyst

Good morning. Hi. Thank you for taking my questions. In addition to the Norco and Mattox assets, can you just remind us how much of our business as a whole is supported by volume commitments?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. So let me -- we haven't given the exact breakdown of that. But let me -- we have three kind of areas that I break it down into. We have take or pay contracts and it's like the Norco Logistics, the terminal assets that we have, refinery gas assets that we have. Zydeco has a take or pay. Then we have traditionally talked about our fee-based but ratable cash flow with a life of lease or dedication of lease offshore. And there's a high-switching cost of almost an insurmountable barrier to switching offshore. So once people connect to our corridor systems, it's a very ratable, but it's about production and production flows.

I think Shawn in that bucket kind of gave you information about once the producers make that sizable investment in those offshore production hubs, they have a very low marginal cost of production from wells. And this basin has -- the Gulf of Mexico has held up, comparatively speaking, to onshore shales and such. So those are ratable flows as well. And then the fee exposure that we have is on kind of the refined product systems. But remember, Colonial and Explorer serve some of the more key market demand areas for the United States, and they are the premier assets as far as the most efficient, cost effective way to serve those demand centers. So we feel like they're very strong. And as demand recovers, they'll have a position of strength.

Theresa Chen -- Analyst

Got it. And on the topic of potential uptick in demand to your earlier comments. So, across the board, there has been data and other anecdotal evidence from market participants as well as the DOE staff that while the year-over-year change is still negative as far as gasoline demand goes, the pace of decline seems to have eased. Is that what you were referring to or can you just speak generally to what you're seeing in terms of demand in your assets to refinery utilization as well as that interest in Explorer and Colonial?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yes. So I'll probably let Steve talk to you. He is closer to what we're seeing on demand and plugged into the marketplace with regards to gasoline, diesel and such.

Steven C. Ledbetter -- Vice President, Commercial

Hey, Theresa. This is Steve. As Kevin mentioned earlier, this is a pretty volatile dynamic situation, but we have regular active conversations with at all ports of our business as well as inside of midstream as well as our affiliates and we're monitoring storage constraints as well as reduction in demand patterns or increasing demand patterns on gasoline. But those all inform and play into the levers that we pull and how we position the business to maneuver over the next several quarters.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. So, Theresa, one thing we are seeing momentarily now is a move slightly back in the refining centers to gasoline, some early signs of gasoline picking up. But again, it's only been in the recent days and it's too early to draw conclusions from that.

Theresa Chen -- Analyst

Understood. And as you plan for the next call it 12 to 18 months and beyond, what underlies your fundamental assumptions? Is it a V-shaped recovery or U-shaped, are you baking contingency plans, should we see a second wave of the virus later this year? Can you share any color on your thinking around that?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. So that's kind of that COVID-19 uncertainty and the high degree and range of uncertainty that exists out in the marketplace. U-shape, L-shape, V-shape, W, we do run scenarios to manage and predict our business and what we would do under the circumstances. But again, we're focused on making sure that our assets are positioned that when the recovery comes, we actually benefit from that strength. And I guess I would highlight, so far in the Gulf of Mexico, when you look at what's happened with production and the production cuts, we have not seen a material cut to production offshore like you have seen onshore. A couple of maybe points that I'll throw it over to Steve to talk about the Gulf of Mexico strength which drives our thinking.

Steven C. Ledbetter -- Vice President, Commercial

Yeah. Yeah, thanks, Kevin. We like our position in the Gulf for a few reasons. One, we believe we're favorable from geographic exposure perspective with concentration of assets to the Gulf Coast in Pad 3 which offers efficient and cost effective access to refinery systems, storage and export across the water. Second, I'd say, is really favorable crude exposure versus some of the basins. We predominantly transport medium sour grade barrels which match the demand patterns currently needed for refineries as well as into the future. We also have favorable producer exposure. As Kevin mentioned, these are large cost effective, lower breakeven costs than some of the other basins and what you're seeing in the marketplace. And then again, we have limited exposure from a creditworthiness perspective. Again, most of our shippers, producers are large investment-grade producers. And we think this helps us not only weather this storm, but we also believe these are key points that continue to make us believe in the strength longer term and our position in the Gulf of Mexico.

Theresa Chen -- Analyst

Great. Thank you very much. Hope you all stay safe and well.

Kevin M. Nichols -- Director, Chief Executive Officer and President

You as well. Hope everyone's safe.

Shawn Carsten -- Director, Vice President and Chief Financial Officer

Thanks, Theresa.

Operator

Your next question comes from the line of Derek Walker from Bank of America.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Good morning, Derek. How are you?

Derek Walker -- Analyst

Good morning, guys. How are doing?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Good.

Derek Walker -- Analyst

Thanks for taking my question. Just a couple for me. Maybe let's start with some of these short-term actions. Kevin, you mentioned maximizing the revenue opportunities with the Mars cavern. Can you just give us a little bit more background of how that came about, what are some of the rates that you're charging and some of the customers there and is that more of a sustainable revenue for the remainder of the year or how do these contracts unfold?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. So, thanks, Derek. I'll turn it over to Steve. I don't know that we're going to give specifics on individual contracts. But he can talk to you more about the different storage opportunities that we've actually pulled the trigger on.

Steven C. Ledbetter -- Vice President, Commercial

Yeah. Thanks, Derek. I think what you're looking for is how we're leveraging our current assets and maximizing. We have various opportunities where we have storage assets across our systems, and we've several contracts we into leveraging some of the storage at and some water access across the docks, and then the second cavern in Mars provides available storage as well as ratability for the flows that are continuing to produce offshore. But in general, we'll continue to look for opportunities across our system and put those into our business.

Kevin M. Nichols -- Director, Chief Executive Officer and President

And our rates are competitive market rates with anybody that's out there looking to offer storage to folks.

Derek Walker -- Analyst

Yeah. I guess do you have a sense sort of like in the aggregate? What do you think the uplift is associated with that?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Well, we're not going to give guidance now around the additional revenue that's coming other than just know that wherever we have a barrel of storage, we're pulling that because there's -- storage is a hot commodity right now.

Derek Walker -- Analyst

Okay. Thanks. Appreciate that. And maybe on the Mars expansion. It sounds like you're starting to wrap things up by the end of the year. How should we think about the cadence or expansion in 2021 and the in-service? Is that more of a year-end kind of 2021, mid-year? How should we think about the timing of that project?

Kevin M. Nichols -- Director, Chief Executive Officer and President

So the timing on when it will be executed to come online, I believe, is that the question?

Derek Walker -- Analyst

Yes.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. So we're still in the midst of defining the commercial construct which will inform the final detailed design. The good thing is lots of conversations still progressing. The demand is still there. We anticipate final definitive agreements by the end of the year and we'll be online midyear timeframe in 2021.

Steven C. Ledbetter -- Vice President, Commercial

It's really in advance, Derek, ahead of Vito and Power Nap, which are still on the original schedule.

Derek Walker -- Analyst

Okay. Perfect. And then maybe just last one for me. I mean would you characterize -- since we have April under our belt, would you characterize that month as sort of -- particularly given that you've seen some uptick as sort of kind of the tougher month for 2Q? And if you were to kind of make April, sort of the May, June timeframe as well, do you have a sense of what the coverage ratio would be if April results will be kind of the full quarter?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah, so, again I think you're asking for us to be a little bit more definitive in that less than 1 times coverage ratio. And we're only halfway through the quarter. June is still out there. There's a lot of moving parts that still have to unfold. We've seen some positive recovery in gasoline and some demand. That is heading in the right direction. But what happens as states lift their restriction and whether or not they actually continue with that or they shut back down, there's just a lot of volatility for us to get exact with a range there.

Derek Walker -- Analyst

Okay, great. Thanks, guys. That's it for me. Appreciate it.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah, thank you. Stay safe, please.

Derek Walker -- Analyst

Likewise.

Operator

Your next question comes from the line of Robert Mosca.

Robert Mosca -- Analyst

Hi. Good morning, everyone.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Hey, Rob. How are you?

Robert Mosca -- Analyst

So in regard to your sub-1 time coverage anticipation for the second quarter, just given the distribution waiver beginning next quarter and contributions and dropdown assets, is that coverage rate being calculated a little differently to reflect what coverage would be without the waiver? Just seems like you guys might have some breathing room before going sub-1 with some of those items coming up next quarter.

Shawn Carsten -- Director, Vice President and Chief Financial Officer

Officer

Yeah. So the guidance that we provided is really around what we're seeing with the market. So we were pretty optimistic, if you recall, from the early part of the year when we announced the deal being completed. But with the COVID-19 hitting us kind of late March, it's just too difficult for us to see given the volatility in our earnings for the assets to provide any kind of more guidance. So in a normal world, yes, we have been well above 1.0 coverage. But we'll see where Q2 lands us.

Robert Mosca -- Analyst

Right, understood. And then if I could just add an operational question particularly on what you're seeing offshore. And I know you already answered the first part of my question speaking to the demand for Gulf of Mexico barrels and the Gulf refinery system, but could you perhaps opine on the Eastern Corridor volume reductions and then just anything you're seeing as far as the timeline for longer term exploration projects offshore?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. So, I'll start and then I'll turn it over to Steve. We've been talking about the Gulf of Mexico for a very long time, and it's gone through various different cycles around different crude price and that kind of thing. And with the funnel offshore that once people take their investment decision, those projects are pretty much committed. So the near term and the medium term is less likely to be affected with new projects coming on. As an example, Vito and Power Nap coming on next year, and there's a couple beyond that where they're well into construction. And so, what we -- if there was to be an impact, it would come and delays the new things coming into the funnel which have really more of that five, seven-year out time horizon. So we'll have to wait and see what happens. That will depend on volatility and how long we're in this kind of demand situation. With regards to the Eastern Corridor, I'll let Steve answer that.

Steven C. Ledbetter -- Vice President, Commercial

Yeah. Thanks. So I think the exposure on the East really is around concentration for smaller producers or higher cost to produce fields as well as some of the crude grades being more of an HLS-type exposed barrel that may not match up as well with the current demand patterns. We've seen very little impact to our business and impact to the Eastern Corridor to this point, but it's something we continue to monitor. Again, the majority of our crude that we transport through the Central Corridor and others is a medium sour, it matches up very, very well. And our exposure points that we mentioned earlier are relevant for this situation as well as the long term.

Robert Mosca -- Analyst

Okay, thanks. That's really helpful.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Thanks. Be safe.

Operator

Your next question comes from T.J. Schultz from RBC Capital.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Hey, T.J.

T.J. Schultz -- Analyst

Hey. Good morning. Just one follow-up on the distribution. So my understanding was that coverage would be tight this year in kind of a transition period and then grow over time, and you have the flexibility to withstand tighter coverage just given your asset mix and the balance sheet. So, has anything changed relative to your outlook on coverage improving beyond 2020? And if you're looking at the distribution on kind of a quarter-by-quarter basis now where you're keeping it flat in the second quarter in what might be a trough demand quarter? Just how you're thinking longer term for coverage improving?

Kevin M. Nichols -- Director, Chief Executive Officer and President

I think our story is still there with regards to the business that we see coming on board, the Mars expansion projects, some additional offshore production and some of the other projects that we see across our portfolio. That hasn't changed. What really has charged right now is just the level of uncertainty from COVID-19 and the demand destruction, and what really is going to happen with demand over the rest of the year. And so we'll have to watch and see what happens with demand. I think it's more of that refined product story. We think the basin in the Gulf of Mexico and crude holds up well. But we're going to have to wait and see what happens with demand. So I think that's really the big change.

T.J. Schultz -- Analyst

Okay. I appreciate it. Thank you.

Operator

Okay. Your next question comes on line of Joe Martoglio with J.P. Morgan.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Good morning, Joe.

Joe Martoglio -- Analyst

Good morning. I just wanted to ask, maybe dive in a little more on, I guess, what you're seeing offshore and the [Indecipherable]. I think Murphy said this morning they're dialing back production a bit. I'm wondering if that flows on to your systems and then also a lot of the production from the majors, I guess how -- if they're dialing back as much or what you're seeing there?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. And maybe I'll let Steve give you more detail. But overall, we have not seen a material impact to our systems offshore. And the other thing would be that I know people were focused on storage and it becoming physical that where you couldn't put your crude anywhere because there was more crude than there was needed to be refined and that would curtail. We have not seen that materialize. There are some players in shallow water and some of the smaller players for financial reasons that are either pulling their turnarounds forward to do it in this timeframe or for financial reasons they're choosing to do something. But it hasn't been material and it doesn't impact our large offshore production customers. Steve, anything you want to add here?

Steven C. Ledbetter -- Vice President, Commercial

No. I think you covered it well, Kevin.

Joe Martoglio -- Analyst

Okay. That makes sense. Thanks for that. And then also another one, appreciate the color you gave about kind of the overall refined product trends, but wanting to see I guess on your system, can you say, I guess, what you're seeing on kind of Colonial and Explorer quarter-to-date and is that consistent with the country's trends? And then maybe also on the crude side, I guess what you're seeing on Zydeco quarter-to-date?

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. I'll take the first part and I'll ask Steve to answer the Zydeco part. We don't talk on behalf of Colonial which is an independently run company that we're one owner of, but obviously Colonial is one of the large flagship finished product systems. And so it correlates to what you see demand happening across the country especially in the Northeast. It is the most cost efficient, most effective way to transport and meet demand in key market centers in New York Harbor and all those states in the Eastern Seaboard. So as demand returns, it would be the pipeline system that would recover with strength. On Zydeco, Steve, maybe you can comment.

Steven C. Ledbetter -- Vice President, Commercial

Yeah. So, on Zydeco, I mean, what we see is we still see strengths in volumes currently on the system and we believe that's again a testament to Zydeco remaining a strategic asset in the Gulf Coast that can compete, connects multiple trading hubs, refining centers, storage as well as export access across the water. So we're pleased with our position and Zydeco continued to perform well.

Joe Martoglio -- Analyst

Okay. Great. Thank you. I appreciate the color. That's all for me.

Kevin M. Nichols -- Director, Chief Executive Officer and President

Yeah. Thank you. Be safe.

Operator

Thank you. We have no further questions. I will now turn the call back over to Jamie Parker.

Jamie Parker -- Investor Relations Officer

All right. We thank everyone for their interest in Shell Midstream Partners. And if you have any additional follow-up questions following today's presentation, please feel free to give me a call directly. My contact information can be found on the presentation materials as well as on our website, shellmidstreampartners.com.

Operator

[Operator Closing Remarks]

Questions and Answers:

Duration: 32 minutes

Call participants:

Jamie Parker -- Investor Relations Officer

Kevin M. Nichols -- Director, Chief Executive Officer and President

Shawn Carsten -- Director, Vice President and Chief Financial Officer

Steven C. Ledbetter -- Vice President, Commercial

Michelle -- UBS -- Analyst

Theresa Chen -- Barclays Capital, Inc. -- Analyst

Derek Walker -- Bank of America Merrill Lynch -- Analyst

Robert Mosca -- Mizuho Securities -- Analyst

T.J. Schultz -- RBC Capital Markets LLC -- Analyst

Joe Martoglio -- J.P. Morgan Securities LLC -- Analyst

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