So when you think about the pro forma, again, for us, the idea of diversification and the pro forma having
essentially NGLs, natural gas, crude oil, refined products. If you think about that diversified portfolio through time, we see that creating more opportunities. When you think about a long-term position of a pro forma company like this, we like to
think about it in terms of risk and opportunities. We think the diversification manages some of the risk. The pro forma company should be less risky, more stable, more resilient than either of our companies by themselves, frankly. And with that
diversification, it should also come more opportunity. And so if you put those two together, we think it makes a lot of sense for a pretty strong value proposition for the pro forma company going forward.
So to round it all together, the value we got for Magellan, we think is a fair value. So just looking at the upfront transaction. But when you consider the
potential of pro forma, we think it has the potential to be even better. And as you look at it on a risk-adjusted basis, we think we have more ways to win going forward.
<<Selman Akyol, Analyst, Stifel>>
And so as you
explain and describe that to people in your conversations, are they coming around and they agree and theyre seeing absolutely your viewpoint?
<<Aaron L. Milford, President and Chief Executive Officer>>
Yes, its taking a minute, Id say, getting past the surprise, getting folks to sit back and consider what the pro forma company can really look
like. And I think its starting to sink in. I think its just taken a moment or two for folks to sort of digest what just happened, so to speak, because it was so surprising.
<<Selman Akyol, Analyst, Stifel>>
Got it. I know
youre going to have a lot more information in your proxy, but Im just kind of curious, what is your thinking about your timing of getting your proxy out there?
<<Aaron L. Milford, President and Chief Executive Officer>>
Were still a few weeks away.
<<Selman Akyol,
Analyst, Stifel>>
Still a few weeks out. Okay. And you and I were talking a little bit about this before, but in terms of exports, I think more and
more people are wanting to get to the water, Im sure ONEOK was attracted to that. Could you just talk about maybe your different export facilities, which one has the greatest opportunity for expansion? Just sort of what the footprints look
like? And what might be the opportunity that you potentially could see there?
<<Aaron L. Milford, President and Chief Executive Officer>>
Sure. So just focusing on our facilities first. Weve got a joint venture terminal thats primarily focused on crude oil. We call it Seabrook.
And then we have our legacy Galena Park terminal in Houston, which is refined products and does a little bit of crude oil as well. And then we have another joint venture, we call it MVP, its in Pasadena, also in the ship channel thats
primarily all refined products. We also have a terminal in Corpus Christi, but just focusing on Houston for a moment.
If you look at the footprint of the
assets themselves, the one with the most space to build new things is our MVP terminal. Its our joint venture in Pasadena. We bought that land and built that facility several years ago, and we still have a lot of excess land at MVP to add
tankage stores, do things as we expand it.
Now thats not new for us. Weve been looking for ways to expand it and continue to grow that
facility. But from a footprint perspective, thats the one with the most sort of immediate footprint. Its available to us. But I also want to caution that I think at the end of the day, when we think about exports, the facilities are
important, but its really how long weve been operating export facilities for refined products and crude oil. Weve developed some expertise and how to build them, develop them, operate them.
And if you think about taking that expertise and putting that into the pro forma company with some of their objectives on the NGL side, we think its a
good fit just from a being able to actually execute on opportunities, whether its at existing facilities or whether its at new ones.