KMI - Earnings call transcript Q3 2017

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Operator

Welcome and thank you for standing by. And welcome to the Quarterly Earnings Conference Call. At this time all participants are in a listen-only mode until the question-and-answer portion of today's call. [Operator Instructions] Today's conference is being recorded.

If you have any objections you may disconnect at this time. the to turn now will call Mr. over I Kinder Kinder, Executive of Chairman Rich Morgan.

may You begin.

Rich Kinder

Brendon. we the financial as and XXXX, provincial applicable Securities releases And I'd you within meaning and Litigation include thank Okay, measures. before outlook well financial Exchange remind KML and territorial this of statements that Private forward-looking and and like begin you today’s KMI Act Securities earnings laws, by and call as Canadian non-GAAP to always certain Act of securities Reform the of as XXXX

making review encourage forward-looking our Before and the to Commission may any filings and and measures to investment assumptions, Territorial outlook end important Securities financial the at strongly to results decisions, those will and and statements. in assets use that forward-looking us, and differ releases from actual results. making Steve our on Canadian a a and Kim and KML’s SEC you cause described of disclosures list forth few non-GAAP let of expectations financial for material outlook that behind financial and just we remarks. and With with once set full start statements of Provincial flow read Morgan. factors anticipated latest the such But Kinder strong and by financial the underpinning and me KMI’s the risk KMI of stability remains demonstrates again mind detail my earnings the in cash strength materially of

except the Kinder our essentially to was and our our flow prices sustainable CapEx segue and collapse remind but XX thin thick our That's XXXX cut December and we down in and fact reduce to me That changed by thus dividends generating it weakened to with the our had a make expansion strengthening $X.X our debt, the flow. paid seven approach We increments. that through cash out cash debt the quarters CapEx rollover balance sheet thereby we operandi? our we approximately our strategy How Well cash for within would to flow the markets we of and our that the our without capital equity, we needing the CapEx decided that oil through prime Morgan. after about forward modus we've fairly issuing to debt ratio debt growing all expansion around equity of strategy expensive for and to course in strong, fund going worked robust Xx. occurred, decision all became events after late our flow company. in the obligations. years, collapse time long-term billion let dividend. operating changed hardest oil that dividends in the cash balance investment cash and ever our of we've distribute our and access prohibitively a funding is of to dividends in for entirely markets live strengthen grade shareholders Until sheet at and At EBITDA paid done program flow to or of our of into equal and roughly our since debt Now you objective at out XXXX wanted that energy same we've expansion

dividend for of our in in $X.XX per further quarter's that's from XX% an increases annual and call our a consequence increasing which dividend current and dividend in a XXXX with As we last calls increase and $X.XX XX% in XXXX to $X.XX XXXX. the in results future XXXX XXXX, year of policy, announced which on $X

I capital remind needs KML, further publicly authorized share to CapEx fund is KMI out we And cash traded Trans period. affiliate, that our of to intend during board our repurchases all without you billion flow. in Canadian Mountain infusion. three-year and expansion addition, In being continue $X of course that funded our

this shareholder to sustainable turn those benefit largest I in for and the just over And is it I this As your company. reiterate Steve. company a points believe for that want and forward path this I’ll to reasonable

Steve Kean

financials. Alright, update Rich. it you you I’m thank to to then over on and through going Kim KMI you to performance turn take usual as the

update. third Following of give to over turn of quarter you that with to I'll the it Starting capital update take you first XXXX. KML questions KML, a good and and KML. on your and KMI, Sanders, quarters had three both a on raising CFO good KML Then Dax we’ll financial KMI and we

running plan are and as are been ahead flat after calling year of expect to we well the the the KML, year, for essentially impact all saying of be for timing we've We year-to-date, IPO, Harvey. plan as the adjusting impact of but Hurricane as that

in strength in first and Canadian quarter acceptable financing a all secured first second with the Mountain our we of self-funding quarters completed assets. Project, that balance of outlined our for value completed creating of strengthen year Expansion over we and return our liquefaction Looking our JV put consistent facility the We Elba in shareholders. the the beginning us back quarter, sheet the in steps of a entity three pipeline on to the turmoil the Island of we Trans year and assumptions to our key position to two have the budget

end the with at versus of We that times, continue projected X.X the to we ratio X.X of XXXX to beginning the expect EBITDA the year. debt that we’ll

a business segment Now highlights. performance for few

Permian our substantial announced to earlier are would customers. that proposition a First, the working finalize the provides to Texas our Targa, attractive access with we made X.X Express documents our Pioneer, networks Intrastate connect month DCP each Permian which this network. expansion Basin believe to commitments and and Texas JV day progress would Gulf of Intrastate bring our very and of definitive project. We combination Targa’s Coast significant DCP’s a pipeline market supplies We value promising volumes, existing on Bcf with growing gas that we Basin This project.

placed but on the advanced We have we in with this substantial backlog. core are earnings our shippers. transport not made agreements We've project stages in the call, last progress yet on since firm

agreements quarter. will We this we finalize the shipper are which we targeting when for

pleased pipeline we're West announce $XXX progress million into Susquehanna service projects ahead project X. gas KMI. our several to schedule placed September key in on We Second, of in

expansion, complete also system, schedule. nearly totaling spend. million little gas a are are pipeline of bit pipeline on other are either all pipeline about our Triad our little expansions are head gas natural $XXX Connecticut which these Ryan We three on TGP or on project ahead of We're and pipeline a time capital our Recall, These pipeline of in our an and December we in this on domain to We've million of line, NGL adverse $XXX on on third place schedule Utopia progress year. circuit the of call, it Ohio for courts. on have this eminent last decision the project. this expect excellent discussed received year, one call we service that made of that projects, in

work ahead an completing our now contributors drying In job of were by in legal the rest LNG our tie-ins right increase and the of complete, to than service hydro excellent great steady remain. ago offsetting testing slightly reroutes organization, placed existing final were Our including saw demand offset natural HDDs was additional and backlog. of away backlog and down This commissioning the get and second by slightly exports added The more acquiring Mexico of way, was and at management we in this the lower the from right to billion, power due projects to all our have quarter commercial projects where higher project year an volumes from the it is project transport purchase team we're to $XX pipe, schedule. of are necessary a the system. segment ground, of X%, we the of just now pipe being of did in the by exports key those update being is gas year-over-year. partially year-over-year The

Shifting impacted existing, Bcf, unsold new transport X.X are X% volumes We tangible I Bcf refined QX previously down with slightly business, Harvey more the Gulf evidence DD&A but – earnings Harvey's gas which, also Hurricane for of our year-to-date. slightly Volumes being that growing QX levels. volumes saw turn segment of a withstanding and flat, natural impact of but infrastructure Crude in system up impact we KMCC natural our some their condensate QX, on condensate essentially saw are the segment, on our the X the by year-over-year, our slightly Hurricane capacity impact crude above utilization. year-over-year are and NGLs now Pipeline up pre-Harvey were was products asset to about both volumes. existing. to new XXX Coast and volumes than capacity, is of In on and now KMCC asset divestitures about and terminals the Coast, on each of firm day demand in which affected gas refining agreements more Texas think, Gulf the XXXX a of Products before

oil vessels effective We and COX, have we discounting as In to Jones charter aggressive Act keeping do lower under of all lower to our year remained so. volumes. a and also compared necessary last in oil experienced price

have a the segment, This Sac are where in prices. in below have and some of historically zone producing. progress begun from three seen our to from where to promising we We've have we volumes stronger delineate seen been zone. oil now plan this we our part field, this on So just we due zone. Rock NGL at is capture In projects transition

segment to life to even comments in line of We and employees a here, also respond maintained Permian recover. that is increase responded add the to prepare, activity. and We've costs extend we on will Basin rapid this A Harvey, Hurricane magnificently reserves have and more work notwithstanding discipline this cost target couple our promising can in held but and field our the the on first, this essentially do further. development the

price, to many cash secured times by Second, to contract are level the usage flows as structures – pointed also usage our levels. minimize commodity changes we out exposure our in not only but our

our natural liquids based on charges where as to a based charge business, volumes, volume on and of generally plant, and And example, until we a as processing which don't terminals refining since some petcoke and our credits capacity operated are for volume mentioned, from our financial ancillary such pre-storm but refiners impact until operations, require after impacts gas throughput I as were contracts came well back So on assets, KMCC, the reservation period. are experienced had on levels. de down, rates charges recovered reduced reservation The the minimis Harvey grace which interstate petchems Central has the Houston which at as while and our lower up. – was

that With a say quarter execution. would to performance and and I’ll good at it financial year-to-date I over strong turn on overall progress with So strong Kim. KMI continued project

Kim Dang

and Okay, start you then budget. per me third quarter the the share, then Today performance. $XX.XX declaring per $X.XX share, we points DCF, way look we're a XXX%, of I'll with I'll thanks consistent to highlight dividend with is through first details. a which the take is the On numbers third and and versus I’ll XXXX. let think per about of Steve. earnings or performance, and our move GAAP earnings the numbers On share up few quarter

However, look is which prior at items the per flat, includes it adjusted way the share, period. we certain earnings versus

from result is $X.XX $XX in the Reduced contributions of performance Our our is third due million quarter of primary the judge down, revenue DCF share, approximately to XXXX. a we XX% third which service. sustaining These interest due SNG from sale multiple per TGP to assets quarter the XX% expense, primarily Canadian the in or the versus the reduced new pension of contributions attributable XXXX as by IPO lower to nice the Harvey, on assets. performance lower contributions, items and tankers well Jones Act entering reduced as and Hurricane are CapEx offset partially our higher build those as of interest way

largest natural but For our is O&M the year-to-date, contributor. as the that sustaining DCF CapEx largely of and quarter being ahead gas with and is Steve third mentioned budget, timing

be or each For and very absent X% the KML we on less hurricane the of the budget. impact than Harvey total, roughly to of to year budget. million DCF $XX be would in below the expect we expect the $XX impact into million full account, Taking and DCF KML

the contributions including KMI on the entity, spending from expansion debt exactly $X.X to June net down CapEx on received second our $X.X Because of but sheet, the i.e. the its in we’re of possible to contributed previously at to the expect be billion KML end fund end projecting EBITDA, KML the year. the CapEx year times is flat Mountain forecasting fund approximately where we from that KML from KML. On Currently include at to CapEx capacity not we $X.X as the budget $X.XX depending the this it proceeds does to down X.X times. year debt KML billion with year IPO. to KMI the CapEx, of down times X.X for billion. the from on the to self-funding IPO, we timing Expansion year, prior year still as X.X that draw primarily at a quarter last make forward On expansion we're to for land not to end of facility construction that balance of its we the any a and Mountain is ended But quarter, the of the the as result paying we fund balance communicated. equity has at expect Trans X.X does EBITDA billion that The to Trans may we on

Now details. of let some turning to the

$XXX for we share give change see quarter. of Therefore variance. of of net the you’ll at $X down were how were explained preliminary an our X%, fair resulting is of in per on is see which to $XX down $XX we under view million Looking After margin the in items gross derivatives the the are details in market items, SNG in contracts, in in million. we the of million down Pretax this pretty million with income would certain available sales that is expense consistent overall per is of common with More million a driver cost just with third shareholders $XXX expect to the we largest revenues million items moment. this value results revenues in was the how $X.XX of in $XX of also flat earnings accounts GAAP the XX% certain which be quarter by gross when transaction, a excluding associated Certain year I our and – or available or share, was the expense sales sale down. increase $XX you loss $XXX $XXX numbers. the to quarter than But midstream impact $XXX commodity million is physical income Typically quarter used will of quarter of income all or the of in versus million $X.XX certain margin. Net SNG a common primarily down, in are of which up XX% shareholders exposure see and our business benefit cost million, in DCF that when per in gas to million XXXX segment. a hedge by in the change items these the We our transaction COX hedges share third reflect and natural XXXX. the X% reduction for the statement, occurs. some interest

million example, with or in to are motors, for pumps, due cost Hurricane Harvey. notice Channel Ship flooding You to $X Houston and repair largely damage repair will These costs, our actuators also rebuild facility. associated

that in we'll We the deductible. fourth will and subject from repair to repair additional quarter our recoverable have that costs costs these $XX insurance be million expect

associated is You’ll the significant is $XX often certain tax on claim of return A being is to the recovery to claim opposed portion of only tax a oil able XXXX dollars. with benefit item there benefit enhanced a million deduction. able as the which notice to expense, our that being

page our reconciled to and turn numbers. GAAP for to quarter financials to DCF our of going shows and year-to-date second I'm which Now is the the

judges comparable $X.XXX DCF quarter billion We DCF in X%. this total earlier, million performance. or is $XX down measure on $X.XXX the said of primary for financial which the versus generated billion for I management the As XXXX, period

change, quarter-to-quarter Natural driver and Looking $XX at the million. certain items for breakdown is is the DD&A down earnings million. down of $XX gas segment the

and to the of result is Hurricane refined Kinder $X quarter EPNG SNG of we our offline in a the as to quarter CIG the segment impacted damages Products in Jones on transaction, was to the combined our with have terminals expect to Canada is is storm. divestiture. as versus and the excluding estimated in product would lower roughly proceeds and to tankers the up Morgan and G&A more or have down lower joint assets The last some COX placed The natural revenue million subject of reduced KML we lower expense quarter-to-quarter. impacts with of the reimbursed with higher Express collect cost to incurring not in that a processing assets. day and the $XX gathering use year. a $XX is associated down on included barrels $XX slightly our a and proof Items. income. just this After past, had At of by midstream transaction a segments a a volumes rate. up as IPO impact, been we during have in Terminals rate by reflect and This a we third is are did under million primarily variance that deductible case addition proceeds of slightly, where expansions consistent also Harvey. repair treated by of the versus the Harvey by and SNG and million small, we offsetting the will the the basis insurance, expense Harvey our oil lower price. sale $XX $X balance million, impact assets oil the our All impact the a which We and higher up which we by The our CapEx gas quarter new-build in how other as customers of the Harvey that XXXX, of segment XXX primarily Certain that natural gas the pay on the COX. hurricane be on production combined of segment is are $XX capacity increase insurance million, The X%, the Sustaining Hurricane service quarter-to-quarter, when SNG estimate loss segment result third results result is item primarily as being are certain and estimate per million the on interest Hurricane the driven Act sales the primarily barrel terminals slightly approximately $XX lower We net two million and Elba is associated $XX offset venture our and and to $XX from million million TGP, expansion. debt. over impact products nice be This

$X the the may that did is able were sustaining in KML��s CapEx segments the and contribution The make million items quarter interest $XXX and of reflects result of is share $X.XXX a third and $XX approximately XXXX of our $X.XX $X.XX you we we G&A cash walk savings. non-controlling we in you $XX impact as and certain from the of down $X.XX all million impacted $X in other the public be declared $XX the third net. the a than distributable dividend share last the versus higher million, made quarter and variances, for combined interest DCF dividends. taxes quarter-to-quarter as for variance, excess of Cash per of almost budgeted were I change. approximately the DCF offset taxes by by not was to of flow per as $X.XX, benefit impact are which in which XXXX from Other million for quarter somewhat reflected earnings quarter Totaling interest of over about actual in quarter a a one impact, XXXX. by $XX in CapEx, above As hurricanes. expense versus cash in share billion million year with in quarter above KML direct and million third higher the cash is million $XX to our DCF associated results $XX as about down are well KML XXXX until payments year-to-date by million approximately sustaining we as just defer pension $X.X through. change results million remember, the lower increase million XXXX. items $XX

KML ahead earlier, are quarter said and expect for we our on Harvey. the but budget, year I budget the full we to our the excluding year-to-date and for As of be Hurricane of impact

preferred we From see billion. than ended With two a impact the the is sheet. with the XX% debt would the sheet balance to the this treated quarter, the There been agencies preferred is balance two rating from has to turn budget. I’ll we that we less as Excluding and of treatment balance that, on sheet, is be X% expect including $XX.XXX net the treated DCF which you'll lines second our get below XX% XX% line those quarter as the net of events, debt KML debt of equity.

net reconcile quarter. debt, and that's in down reconcile mean the billion $XXX So year-to-date the when debt, first billion I $X.XX line million debt net $XX.XXX the down I

from So $XXX on million, investments. the were in proceeds million billion, $XXX DCF quarter expansion KML we the the $XXX contributions paid spent was offering to million. equity preferred $XXX and million, at dividends CapEx We $X.XXX down

$XX of $XXX cash with other and for and the uses million. use make being Asset and because at million, million, of tax million primarily items that’s paid working we million the of got $XXX $XX a accrued settlement sales which we million sales of cash and of debt our of largest $XXX capital $XXX of largest billion largest a IPO being million and debt which interest of use settlement interest payments of got working refund we that and in the pref issuance financing on associated KML $XX then and which other in Trans two May. DCF KML we about asset fees our on of terminal of $XX with was million, of repayment Elba debt third items of the first $XXX quarter. down completed And of million, times, was then proceeds most approximately Debt primarily the a Mountain improvement inventory expansion and intrastate investments gas we the But purchases a billion, for of for debt-to-EBITDA chance $X.XX to the it million primarily at Texas timing some million we use a $XXX the use back I of increased We billion, we with the legal contributions refund a million. legal ready then million, at X.X at that, cash said which times. for X.X I’ll about of being get you. the distributions season. and of quarter $XXX in billion, are of paid X.X for $X.XXX is as times interest expect $XX and $XXX ended the capital capital turn to on cash $X.XX tax JV accrued other $XXX With and million, end JV. cash about come was source winter equity And maybe JV proceeds to uses of of as $X.XX about our earlier, Steve, and dividends year JV the that the has the the Year-to-date was still capital,

Steve Kean

Okay.

time delivers the Trans Just of includes which delivering include of crude oil move or crude comes runs through the rail Crude our the for outlet includes terminal and joint budget Kinder is and to of last over Washington on a blending Mountain it have is the joint one which assets first reminder market, the Edmonton, our to KML XXXX. our pipeline Canadian continue position oil with XX early to which Keyera, Puget of or years world with sands crude for Alberta to from System, the we and transportation, Base pipelines tanks on built Line Mountain existing refineries our facilities. State in pipelines Sound other KML, Morgan and from and Northwest our Alberta also oil ocean venture with it and on on Edmonton We've system by Trans our merchant venture to tanks position to portion oil as condensate Trans it those consist coming sands so the expand terminals takes all full part down the Mountain in with terminal Canada of only on

commodity for of Canada and terminal terminal Finally in of harbor mineral KML. also Vancouver into Western Wharves, our part Vancouver is and bulk multi concentrates the gateway out

through for we is difficult the the mountain overrun to with on the token cash summary, are increased in existing platforms XXXX integral KML with has when go downs producers return shippers and ups costs as recall build. that We the shippers this I'm substantial the and capped for which costs fulfilling that up of the line build are the think this oil cost project refiners market same if project of cap us benefit above XXXX and through this more the the these a that that by important upside If comprised in in projection was also we economics. right vitally estimate and that’s of a toll the return if worth the that urban of more to storage higher needs our expansion, in Mountain benefit the other I control, costs this have difficult shippers our adjustment transportation Canada. absorb year reached product we result and Also associated and sands we to gave two the are the of Trans reduce based uncapped all our our So our customers. mind strong portions costs bearing sudden includes that associated business we capacity shipper milestone. call various reaffirming because the of to portions built-in and On to that which expansion. protections flow to and estimate in than the done, all need and to it the repeating of it's any. capacity blending was placed And QX any cost this from the we

We our environmental also have approval hand. federal our in BC and approval

key the parcels news us this that received access British Crown is confident so half of granting some to that now Columbia land project to in permitting the on front receive the We Columbia. so and access that we need recently can land project. good from on British we this Okay, officially nearly construct be to for as we permits ability

granting We well. positive access These also this Alberta as and Crown they've provinces, very recently. parcels that are of week developments many received occurred permits from undoubtedly to

therefore than off planned. and However, the permitting of we pace started our construction slower process the overall activity has

the what said we Again the we to nine release without up have is into as permitting of months. continue experienced in progress. Also but value. will promising maximize translates review of will recent shareholder ways we progress the spend to so KML delay we to far So manage mitigation to prudently we to that seek of and wisely mitigation, and the need our our construction continue schedule as accelerate

For example our the of been budgeted forecast from year spend and million about that our forecast last previous the reduced made. balance forecast about for our has internal we $XXX for by XXXX full by in year million CADXXX reduced we the

stewards going of tangible that I be to evidence think this KML we're continue capital. shareholders is careful very to

KML. of continue turn this on the development in it for the financial As that, I'll with permitting update to project. over we the Dax And

Dax Sanders

Thanks Steve.

Before I outlook highlight get capital bank into in recent a I markets front. and to results the want occurrence

launch in quarter the price upsize we response $XXX offering in in million reset During five the $XXX Canadian to we in significant approximately $XXX the rate August, million with in million completed coupon stock preferred to us were quarter, which netted [indiscernible] our first a able proceeds. we and demand

preferreds the and XX% was financing we of eyes during equity construction another for expansion. fully construction towards the get raise plan under the of of positive and those XXX% contemplates step this to billion the PMX period our treatment raising to success generally agencies. that facility rating Overall reminder, will KML $X.X the capital our a As offering the preferreds yet necessary finance project the

starting comparison we did preface viewed given the As KMI results part public in with I last it I the Interest significant comparisons unrealized. will with shareholder of the of items that you offering by which with is comments generated our value power quarter to to XXXX point true periods reporting budget wholly-owned KMI and for is which consistent and other a the will on that quarter-over-quarter we during quarter-over-quarter cycle as earnings balance discussed, be company what while there KML alluded see KML, time will publish budget obviously we've of don’t place and caveat to need reflective the have at the a not IPO, done previously outlook FX that was my KML where this we quarter loans this therefore a results, be for of the will quarter will a as these where and limited of year were most just but our would have are you ask published one we does. those want by was branches more I for comparing standalone focus

and unrealized larger with not from items create compared same which Sustaining the which the with higher and extinguishing. minute. intercompany $X.XX most due which dividend is with higher Trans Crude exchange largest respect voting $X.X public $X.X $X more $X over Trans earnings to in $XX the with projects. quarter are billion approximately $XX a being further should payable Segment reflective largest million reduction million the Adjusted restricted was loans approximately KML That that a associated quarter lower business That Mountain million the million moving which up quarter from annualized in Now $X I which compared provides about DCF third period time essentially with a unfavorable mainline DCF, of of coverage $X.XX board, With increase at tied same the will spent is versus XX%. audit primarily approximately for that into to as to see $XXX,XXX of greater DCF earnings interest results throughout, being FX earnings capital million, reflects and quarter cleared ancillary income, last segments foreign is with $XX was certain approximately is $XX of and segment was for to XXXX beginning KML derived XXXX cost per interest a to we volumes and QX of is discuss were QX from offset The the by consistent approximately pieces With net it capitalized previous or on largely fees voting Alberta voting in spend same approximately with the up terminals. for in rest to quarter terminal up to fees G&A approximately XXXX and overall small per and for segment million the XXXX Mountain XXX% FX. the quarter XXXX. were Interest company. approximately the items were XXX,XXX EBDA share pipeline tax a payout for the Total third into performance as guides. the of excludes $X.XXX is the is loans is restricted associated for to Today we're of XXXX. to flat up in certain of for of shares announcing interest per and of restricted to that and of the mainly before from net declared IPO. compared QX quarter comparable income, with respect which the that total of lower the was million the quarter with flat JV share same the the terminal south X.XXXX for set the due income quarter outlook certain any $XX net AEDC we’re of XXXX. is within approximately million a derived that moving quarter loans CapEx implemented the terminal result associated $XXX,XXX. at Edmonton the contracted contributor higher year. items compared of in associated at that intercompany the XXXX payable intercompany the KMI up a lower was the is the affected by cubic being was at repayment between ratio

AEDC million last to lower we $XXX expect expected $XXX and million million. specifics consistent to with that the to These year on including during to moving With in that we between balance full on and on EBITDA expectations and between project million expected $XXX we and $XXX year of XXXX Mountain last move to primarily sheet. with some EBITDA quarter the versus $XXX a IPO. of come the attributable on at $XXX periods $XXX million DCF for million full is DCF and comments million we IPO in respectively from expected Now pre lower $XXX end and XXXX, associated are mentioned Trans DCF quarter. XXXX A expect post I’ll $XXX the million decrease the the million what spend we to highlighted few that, to

of spending million other and primarily of for I working year offset million the is project. proceeds XXXX use plus increased the $XX to facilities. is XX, expansion the I $XXX For approximately by debt and cash unamortized net the increased draw September $XXX paid cash. million end on which construction primarily million to mentioned million of due which that CapEx $XX capital/other preferred mentioned construction and million which $XXX $XXX capital to cost charges due of the expansion cash, attributable assets net from on net for Deferred working PP&E the million paid $XX of $XX $XXX of million, and to $XXX million facilities DCF offering million issuance proceeds approximately fees, distribution debt actually increased on

we’ve The $XXX primarily hand facility balance on zero of sheet, million, increased On working almost the debt million had the Other liabilities side is decreased by the balance result by balance. million which short-term is current right intercompany the from off capital construction the of $XXX to facility. $XXX billion which $X.X quarter loan. result entities which decreased KML to decrease intercompany since in by end, of KMI the the to a minimize debt that endeavored zero and consummation almost long-term a IPO was payables paying

Steve in see, it back million $XX preferred our to even With As after of with net quarter net positive adding balance XX% I’ll that, million. ended of cash we equity cash to you our position still we net of can this turn are $XXX approximately

Steve Kean

on that, with KMI take we Okay, questions KML. will and

Brendon. Okay,

Operator

Thank you.

We question will first from the now with Salisbury Ann is [Operator begin our question-and-answer Instructions] session. And Bernstein. Jean

You may begin.

Jean Ann Salisbury

a getting next Hi, just in noticed afternoon. the getting it good to flows like materialized for nine last it since had six Permian Waha couple keeps more year the speak over about two you pricing Gulf the not have really Mexico Express outlook yet, to Permian worse. Coast for on seems like Can whether or I to basin are those months. seems – gas in

Steve Kean

people the a of here’s not has Mexico that the Okay, to that well, their any just move the really as to contracting other as to as I materialized. out is faster they are I the way Mexico if perhaps maybe pipeline Tom realizing see not going has that need another volumes quickly to to lot to capacity but fact speaking goes the going color, will think process speaking – that are nerves get said Waha, you materializing

get shippers becoming now a Gulf looking of market, so premium are Coast to there. more And the with definitely Texas

fair with up that we FPA that in the that’s agreements showing tangibly them. on say are I think to is working

serves is Permian it the Gulf Mexico with on including capacity differential our get the what power connections they the that market. a they coming the in can they pipeline Houston when access observe can also liquefaction to emerging get in line that they channel area is they our petchems industrial plus So basis Monterey, plus LNG when on the utility Coast the through demand today. ship between eased system And eased access obviously Houston Mexico

but prospects gives, the for and demand power it a market think think not And that what large depends shippers in on I it producers are. exploit different on for so – and speaking not the number of gives option varied Mexico I solely to speaking the or growth

Jean Ann Salisbury

sense. Make

has last sounds the really quarter like? up picked it it over So

Steve Kean

It has.

Jean Ann Salisbury

Okay, hit of XXXX? half and second then still [indiscernible] and FID

Steve Kean

we sometime about about, mean talk – done talked of to to on and talked are resolved the done. I And I get get things we done. we backlog Tom FID, terms this we about and Well, adding it this in but making completely need quarter and didn’t the quarter progress hopeful I think trying working toward are as its very think good not to we that it

Jean Ann Salisbury

the on And the expansion CapEx? of maximum no X.X that diameter, kind is real Okay. that

Steve Kean

I Yeah, max. think that’s

Jean Ann Salisbury

you. Thank all Okay, from great. That’s me.

Operator

Abrams is with question next from Our Morgan Tom Stanley.

open. is line Your

Steve Kean

are Hi, Tom, how you this afternoon?

Tom Abrams

good, I’m thanks.

the Coast Just the on Gulf we for your cost question, first quick I before – a is number follow-up a question. ask have yet? Do my portion

Steve Kean

below volume we to We cost have that that brought are contemplating cutting to exchange competitive being a numbers it’s there. we the project. put and have end out not the could additional a significant yield we or for out commitments go up return But XX% equity because interest situation a that we extent

Tom Abrams

see recontracting we’ll what But should X.X%, think you which that in your Day, question was gave it now? you any on there is reason and Analyst I Is why quite my more is then. the really or was on respectively XXXX on modest. you that risk was for it XX Okay, wait as X% in less thought like XXXX developments

Steve Kean

at to I mean nothing this can material that speak I point.

Tom Abrams

pipeline to and see level. $XX if wrong little then requirements at down pay on Correct that pay But through say you debt make I’m bit, Kim a debt a said, capital particular fact. right, attach working do to think pipeline level additional me I All you million in that your what comments, down heard the XXXX?

Kim Dang

and in the aggregate, equity that in to is just we distributions what’s $XX refers difference from in what investments. in DCF the The between – our million DCF got

has LNG out. between we number and distribution And lag a amortization at some and that DCF the whereas so some. cases, payments sometimes primarily coming that have includes timing, that just that’s level Gulf and have in it Ruby, quarter But also and the there’s with

Tom Abrams

Got anticipated pipeline level it. of of And debt pay the down? terms second then question in part

Dax Sanders

next we I Ruby million. joint $XXX than and year on ventures year guess of amortization, I mean on about FEP a about we other have have at million maturity of Anticipated $XXX a maturity, next

go we process as we debt budget it we the we have through – or whether decide so whether refinance that pay we’ll And off.

Tom Abrams

Alright I kind the in great. hear what at looking then stick quickly could talking. more of some just And of if you’re one

gathering to commentary declining accurate, maybe So gas the that? sales around and but seem volumes the be segment a any some gas numbers not in bit, little

Steve Kean

rates equivalent gathering month a actually had, is active to some certainly volumes transport – rock in up I for which Yes, decline in is not down basins exploiter the in gathering under think, pick amounts. month the on sequential access. example But declines on some to we we what think we’re we volumes. right, almost experienced exceeded we starting there see that have in sales had the up, good on basis been have their we processing the cases there But grown and key think, those we interest has declines year-over-year we I have And is The is volumes key overall basin which Haynesville, an primary is, very of what have acreage. year-over-year. think shipment we in

the to We change. haven’t recovery we yet. But seen expect there beginning that’s

say than So plus from I’d QX are more, XXXX. of little of in XXXX we’ve basins QX that to commensurate a are that the overall declines declines seen apparent

Rich Kinder

in growth fourth feel our much pretty more quarter, we’ve we the bottomed so all gathering like expect out also systems. We

Tom Abrams

great. All right, that’s sorry. I’m

Steve Kean

those each FEP of Ruby pipelines. answer obvioulsy you she Kim’s to back on are gave of coming Tom, eight-eights and we both own half those

Tom Abrams

that. get Alright, lot. thanks Thanks into back I’ll queue. a for

Operator

Shneur Our UBS. from Gershuni is next question with

line Your is open.

Rich Kinder

Hi Shneur, how are you?

Shneur Gershuni

you how Good, Rich. are

Rich Kinder

Great.

Shneur Gershuni

costs, previous but a terms realized Just you’d position Gulf the of can’t capital on Coast range wondering cost north because project you billion. an it that call it’s sort upper be to I Express. put entire I $X if are couple of the would you of in possible as… maybe questions of was a follow-up a a mention kind discuss in on

Rich Kinder

time to sticking billion. last it. And to think I billion I I’m $X $X said

Shneur Gershuni

Great.

Rich Kinder

fairly it’s cost any transparent. We want insight mean our give I particular competitors just into our Shneur. to there don’t

Shneur Gershuni

kind about be she if should could be it it’s of backlog similar by, it of No, enough. can’t returns or of would or fair lower? project the you it talk you potentially And your kind current is expect typically returns think to higher about really terms we in it

Rich Kinder

comparable gas think I backlog. to Yes,

Shneur Gershuni

your to this crude – revisit in in segment? segment a the are Okay, And stabilizing or of bit hedges off doing segment. plans with CXO of some selling Are great. with little then this any there sort something on potentially now rolling

Rich Kinder

a We we say can’t of way transactions, potential comment can in business. any specific look but on about that we this kind that like again

with invest. on We capital returns attractive happy this business. get We’re we that the

talented businesses got second it. we’ve recovery key fields doing really COX, niche scarce the is two two is for the but that with very And we One to is have a us, think I we oil advantages knows commodity. we enhanced they’re a what to and EOR that have. access team that specific business bring which

we to advantages for continue real and a it. to own happy is it we’re business to business niche us. this so And bring But think

Shneur Gershuni

it currently the question this do see Okay. last faster And pace of three-year outlined you at certainly that the you where any that quarter, buyback then are a final respect at? than was given to with plan scenarios execute a can where annonced prices potentially kind your share stock

Dax Sanders

trading Well, XXXX the trading that of is XXXX. to we’re our poorly, its share in is the price and we in it, our timing as is execute implementation return is price intention plan going particularly and But not over exact period. DCF stock our the part value and now, to clearly shareholders of on as basis. is be long-term of buyback XXXX, to just to said And well trading with happy that a sector and are far not three-year as we whole right the midstream

Shneur Gershuni

have one spend CapEx And haven’t the Okay. you COX final quarter? Do this question. for

Kim Dang

Yes about $XXX million.

Shneur Gershuni

very you much Thank guys. Perfect. Great.

Operator

with Zarahn is Mizuho. next Our question from Brian

is Your line open.

Rich Kinder

Brian. afternoon Good

Brian Zarahn

how Hi you? Rich, are

Rich Kinder

Good.

Brian Zarahn

on possibility there the following-up not capital market potentially out the markets equity soft, as and scenario – buyback grow authorization to just is Just the the expand question much that remains in years? the in midstream buyback dividend

Steve Kean

to And flow three to our shareholders expenditure saying is on what either repeatedly record dividend we’re all we or and next of level stock return the years. dividends above buybacks. cash Well, is our intend Brian for policy our capital we’ve said that our operating

anticipate would follow So I that. we would

evaluation for of Now the you the forseeable I’d where But we and the certainly believe a if the this case you this will share between get where to believe stock policy, think and this certainly we’ve policy that and committed we think, that’s I beyond time that I disconnect are look buyback period dividend this differently. what be point. disconnect would between it we at future, at and prices have

Brian Zarahn

and bit prior Okay, can as fair parameters of can Mountain, clarify should as you on in nine-month a Trans you about courts enough. now could think you comments about discuss that just of case contractor the the of likely we delay. XXXX date? can events an better bit otherwise of these understanding service a from potential the if perhaps unfolding then potentially how on the the And still more to and you some expect this Shifting efficiencies if and late or a appeal – execute if I

Rich Kinder

you and yes, of the with with I case lot to as think schedule, to delay, Okay, what’s several if back that add nine-months a and delays date which a we just XXXX in flow that’s December lot is in there’s mitigation, also just to through but day. service to where the a with the really that call release, experienced that in believe can the And we assumptions results a have unmitigated. not we

cost, done really assumptions the working which into and to terms and be And an and doing on on weeks so schedule and of them on we’ll mitigation, to months. work had work be And rest. on done that do in the our permiting, to bringing there’s with our we be examine coming there’s contractors, opportunity over haven’t

of think observations In terms appeals, we there. couple the a of the

So assessment of The BC in note very First federal that the current BC with okay. of BC there’s is it’s Nations the BC Order the the EA, defending terms prior we think provincial consultation Council. approval, government in government, by there’s worthy of environmental order, provincial adequacy the the approval the

noteworthy And so that’s I few a that’s a think last the weeks development, really. development within

is defending we the in federal noteworthy think automatic government whether automatic of Court someone into Council, federal that we proceeding not. appeal orders the in D.C. additional order relevant Canada, Northern the in meet It’s think, the all to of to that like that and the Order to it’s federal court what work identified did matters. that and excellent account it’s the the the do Gateway the the defending always took consultation we that everything the believe And say what or hard order issued of and, us job takes and work it On government happened here. would we we just and is predict not additional decision. terms not the order, that to an government also federal outcomes. think suddenly the northern advised it’s Appeal noteworthy a government But did prior I is Supreme I lot order that consultation in of gateway additional an concerns again did

Brian Zarahn

And lastly, an how is to just Court, Supreme then timing if do appeal scenario? federal in that the you think about there

Steve Kean

denied. that certificate on Loop very that of felt had court which appeal was We’ve and was experience had NED decision appealed, that project. NED national order Project, park provincial project Ultimately with we prevailed Again was or our and hard predict or the to through Anchor we a appeal. we it

the know until hard And see to so that play how it’s it’s – just it’s out facts. would we

Brian Zarahn

Steve. you, Thank

Operator

Darren next question with Horowitz Raymond is Our from James.

open. is Your line

Rich Kinder

Darren, are Hey you? how

Darren Horowitz

it’s agreements. Bcf/d the gas system But across I finalize ship one a as hope on level I very for you just doing guys taking Express. volume BPNG of having you Rich, And you’ve from Intrastate before had Coast Steve, as Gulf I Texas and thanks, appreciate you fluid access well. discussed volumes that fine everybody commitment I’m to quick out still a well. question

[ph] what the hills? of to of assets contribute that how terms to of targets So utilization KMTP of you including could ability their to sealed and X.X they’re Bcf/d and processing do capacity of pipe gas versus on and on plants out source got what the of you EPNG synergies gas what decision how upstream with get with regard with the be both associated going gates at economic the much do line from balance the could sand DCP you to coming course in have would

Steve Kean

a question. lot a as load always Darren you into

I at Intrastate portfolio transport of think for you’re getting we look State need getting ourselves, the now you’re our you’re at gas sales what activities which versus that. those Texas getting – in how commitments do what which is we purchasing

Darren Horowitz

Yes.

Steve Kean

out to the definitely to in accessing Eagle fair we’ve transport Ford Okay, an us looking of foremost we’re overcapacity is we first and now, But filling leveling both Eagle declines also of a out but are Ford. okay. think say something I the there’s That out it’s additional maybe with benefit at, sources commitments. seen gas that particularly XX-year as

to can needs. and for a is supply own as So is sources evaluating is adding that that system our into our of supply entering you use say, it agreements that purchase a we positive for something we’re

Darren Horowitz

you. Thank

Operator

Capital. Our is question Danilo next from BMO Juvane with

Your line open. is

Danilo Juvane

questions. are Thank the you for taking you today? How guys

Rich Kinder

Good.

Danilo Juvane

on Good. the has the only, pipeline that to ethane does shift on Quick of all pipeline? at from None contracted question impact me Utopia. the volumes

Steve Kean

No, change there’s to volumes. the no contracted

Danilo Juvane

advance fashion? arbitration assumptions there Got of it. And and ultimately this course process was you LNG. you guys updates if the liquid in planning Gulf the your filed year-to-date when I to wondering had you’re on any

Steve Kean

our is get we a arbitration of that believe year strong. two end We case. so by in case may things. the the Yes, Really proceeding, is result exceedingly the

In significant U.S. that Gulf across XXXX at uptick liquefaction really the market analyses then those kind continue to XXXX north across it’s terms that think on Coast the situation and LNG, we we opportunities place the see demand. I show But another think current taking I And evaluate. of are worldwide we’ve – most the really things to before across looking country, which for buildout of got

to to that waiting demand. may that And the ready start increase be may until, that you earlier than to until market now so meet waiting we start in be addressing is demand. But we have

off. ways that’s So

Danilo Juvane

question from final One appreciate I that. me.

project JV think, to the was that that since announced announced, Expansion, only You on the the I company? one Fairburn by announced is that SNGs we’ve project

Steve Kean

Yes.

Danilo Juvane

Do to you see growth visibility any expansion forward? a JV or this incremental as of going result

Rich Kinder

we’re there certainly marketplace. discussing are our opportunities mean with in that and the I partner

I would that see overtime. So expect more we’ll

Steve Kean

that contracting third-party have to Yes, takes preceeding fair capacity say interest on and Expansion expansion. Fairburn they well, for it is shipper time, too,

I according So think well, going to plan. that’s

Rich Kinder

Company partnership from both a good our standpoint and with standpoint. Southern very their partneship is Our

Danilo Juvane

order any magnitude growth that? Do of be you as to from incremental sort have what could

Steve Kean

an give time. I really we not Yes, estimate this can that, think you at

Danilo Juvane

That’s me. from Okay. it

Steve Kean

when and transaction associating relationship mean of we sheet according and I balance I active think value the that think think good. benefit the things not ourselves transaction about just large the we I plan. on that announced developer working those thought working it’s with I Company the to would at the that that we get, is an a are Southern materializing. customer but time quite of system And gas-fired generation capacity the

Danilo Juvane

I Thank you. answer. are appreciate the questions. Those my

Operator

Bean Our next Pickering, Tudor, question from is with Colton Holt.

line is open. Your

Rich Kinder

afternoon. good Colton,

Colton Bean

afternoon. Good

the on Gas speak to wanted Nat just I team. So

are moving process permitting Expansion on the Southbound guys currently You to NGPL project. the

you’ve at assuming have available how the ultimately in couple reversal capacity Rover that and Midwest. ahead, just got you goes the just would and looking years a a dropping gas bit and Alliance Nexus up expansion much So more quite project

So it seems like all south. home a further find that will be to looking

beyond queued any around So and timing potential just projects got up? currently what maybe you thoughts

Rich Kinder

as years Express. probably do couple some Rockies I that’s of out more the Canadian as thrid we XXX Gulf as producers are another could Coast extent to probably now mean the also there’s producers that but through expansions process, ongoing as well with even customers well those of and additional that discussions think XXX I

Steve Kean

that there’s find and gas right to et south will there think to You’ve market wants be to further be I get the another think to into coming also NGPL there, Mexico, we think identify that that be there LNG, do will – trend want Canadian additional its south to going is that supplies way to cetera. which we westbound

Colton Bean

you for term for do think, recently of so where on thinking TGP authorization NGL Thanks just just you’ve kind it. guess you currently? on guys about that. And takeaway also you’ve thoughts northeast, around Utopia, touched TGP, stand longer I and from received [indiscernible] that Got I so the on

Rich Kinder

project Yes, correct. advantment a that We on. continue did we get is it the to work

presumably be update with And coming to there think nothing at there’s to online, I material increasing capacity that all. takeaway it. but think, coming update the there production capacity I will behind and expansion new or to all

how is to I a going going basin. NGL want a production NGL of and of it capacity, it’s terms and find how going where what the of to out the wait facility of bit impact much other – the to out projects in of to to in and think Shell go, much way want is a be there’s the home is see that Pennsylvania expansion

think the months. several out I have there’s to that are So play – coming things there over

Colton Bean

Okay.

just comment to really but to on advance So continuing the new nothing project, that.

Rich Kinder

Right.

Colton Bean

thank you. Helpful. Alright, it. Got well

Operator

Our next question is from Faisel with Citigroup. Khan

Your open. line is

Rich Kinder

Faisel. afternoon Good

Faisel Khan

afternoon Steve good Hey, Rich, and Kim.

couple a questions. of Just

figured is – versus to if cost press The how understand the I the of that around you some Just Mountain. delay capital nine nine the text that the uncapped Trans months you release could? into line. mitigate months, I that in completely can Understanding want that the of cost

Rich Kinder

to Yes question. the it’s want really, Ian answer you

Ian Anderson

it I to capped Yes, nine-month think don’t for currently think the we uncapped delay scenario as that we the have I to proportionally It’s example, AFUDC, the additional it’s Anderson, If over fine. bearing on don’t nine-month, could would the a capped with period versus uncapped. based a Ian be have equally flow and

Faisel Khan

Okay then arguments Court what you’ve now, and briefs. I old if right understood. I And understand heard, and case the guess appeals Federal there

but a need, am one here? – for this of some if once understand the mean you So around the what final that is if sounds I ruling just can ruling not are mean that the DCEO, else stuff the like at challenges My I FCA, what get I assume what you this thesis you? mean you of I be and be against looking else

Rich Kinder

appeal infirmity fact have an appealed. we on council infirmity does that the outcome council. of results U.S. and the in court that where what that being and stop well mean, that for government’s doesn’t progress finds encountered on the and if of appeal continuing of doesn’t first terms that is, depending need ruling as mean example. necessarily of and it somebody us aspect construct this on It’s The the from the can’t But there’s a be order just we depending I might project. an find depending that we is order to in appealing federal certificate, the that in what the we

the outcomes this question. court the can’t government. proceedings one, is we key require the that we we look But of there’s and So have authorization from no federal predict

Faisel Khan

we approvals link depending permits of exclusive to some the to and or of And there mutually further is see is that the any that? FDA

Rich Kinder

things, different are things. those are different those No,

So we’re crown and Columbia were British to what and access from received for then last permits authorities the right and us recently about Friday here just lands. guess week talking Tuesday, provincial Alberta of we giving what I week example, this

court. separate having that’s a to a in of do appeal order on – separate So the with council the that’s federal set not that’s and permits,

Faisel Khan

it. I then regarding so the want on back this. on side, the commentary shifting And to to just U.S. on just okay, Okay, got – processing the understand

sequentially the down guess XXX so day guess volumes X% to a X.X quarterback, about So or are quarter or I million I the so Bcf/d.

much of rate We’re these understand and that much was to businesses, sort like, place just guess? the I trying taking related was in how two to hurricanes base decline of how

Rich Kinder

specifics any that ask to other he I’ll give has. Tom you Okay

if So volumes our affected look the to volumes are have XXXX, would XQ from of gathered by hurricane. XQ you been

And the where cascading the like a processing be stream cascading liquids effect upstream have we’re plants will like what I it to put Houston won’t so to gas, Central dried effect processing that’ll a the refineries, and because in mentioned can’t be not it have shot gas the that it specs, example, our extracted. plant, we gas petchems if for in been hasn’t out, quality earlier have

Faisel Khan

Okay.

Rich Kinder

and that if gas. their not pipeline box be to quality in producers so gas be you to turn who And shut if will the it’s to upstream have is then taken rich in too into

effects control whether a out and got to producers if like there shut we they couldn’t had pressures, situations take had risk. Now We there operations. effectively couldn’t physical Harvey down where rained their some

was And XXXX in of which two XXXX off periods Eagle performance, and now. talking again the fact we’re are When of declines the the to so a an impact explainable between number were volumes, factors. of some XXXX Ford. volume level to talking XQ XQ of before there I turn obviously XQ and XQ which around having there, gathering right that XXXX those was see would basin by the starting I about That of to have are in definitely of on we difference

here to where – And take are almost. some of is, I basin do basin other running of are think, minimum little maximizing where example, too. got a and people where But by behind it that’s for this function You we’re number factors. people volumes have also of a a optimizing, they obligations, basin

Faisel Khan

fair back Well, me the to two let I look guess, versus flattened like, up today way we if But ask where statement, that is are Are you points, declines you XQ, have on. XQ be the number it today like going look do you have out you then. this look and in a that I working a to worked flat sequentially. at when we’re

Steve Kean

yes was Ford. single we biggest are early from saw Copano was here quarter. QX that the declines fourth South which we in QX to And volumes up area Well, in Texas, the the Eagle pre-storm to back

we activity, there will that’s expect growth a system on also Kinder on we as proceed somewhat and as of that into timing fourth into hub largely that the We which our XXXX. quarter decline dependent and we BHP to volumes view fall

Faisel Khan

where a and are things Okay right and rates are the another where now guess got you vessel how from Act guys quarter it. Where things the market, right and rates trending do on Jones truck. me, versus just of now seeing The last question tanker are I think ago? sort and spot

Steve Kean

the Group is John Schlosser year, President Terminals this of so John. our

John Schlosser

Sure.

come entire year across year them Our a XX,XXX a XX,XXX rates back in fleet. fleet. of a the That’s roughly a entire decline down XXXX the we across day. this fleet. And high the hit we’ve an seen the Last were day they because around average day watermark XX,XXX

Steve Kean

fleet, Average correct.

Faisel Khan

– the or coming is if that contracts demand end off? Okay some and of then roll if back these

Steve Kean

continued same be anticipate will XXXX, is The more through soft that market We now. to XXXX soft. that think like we

Faisel Khan

that’s helpful. appreciate I guys Okay it. very Thanks

Operator

Our with question JPMorgan. is from Tonet next Jeremy

is line Your open.

Rich Kinder

are how Jeremy, you? Hi

Jeremy Tonet

thank Good afternoon. good

quick up questions here. of clean couple a Just

as the quarter clear as sure it. far as your hurricane impact results make for to want the treating Just on how you’re and

would any included for way about would right the to that for think of EBITDA quarter it? in million that lost business So be exclude the damages, the number. that but Is $XXX

Kim Dang

Yes.

Rich Kinder

That’s correct.

Jeremy Tonet

Okay.

there assets, now even of gotcha would point? guys have this are completed it look at process you that this you been as that other right you the do and So far then higher, have about – things portfolio might that. Thanks. that point kind you to thinking look without to through you’ve or think guys as at And going sell might non-core

Steve Kean

see list, particularly if a if business. higher done hands, think assets, nothing value I makes but But somebody we’ve say and bulk price cetera. it on somebody of sense something we and is the non-core Terminals you it’s that Group if evaluate of get sheet, continue in else’s on currently I higher think else’s our terminals whatever lot to et I the Yes, also hands in need done that balance we’ve the that divestitures a review, in would to some work work already. we There’s in

Jeremy Tonet

That’s you. me. from helpful. Thank That’s it

Operator

is your question with Capital RBC line Markets, Kwan Robert open. from next is Our

Rich Kinder

you? are how Robert,

Robert Kwan

Rich. thanks Good,

Just how granted wondering government? post you a needed change on the PC many were been permits came have of of NDP the Trans and how Mountain in when permit, the I’m had number

Steve Kean

can what to of to tracts access Ministry bundles we that in say that And week were is of of and there geographically kind that of come this XXX the are got will parcels by And those I we’ve example, past prioritized. XXX. many, location fact XXX. to numbers, it so permits the land for Transportation, Robert require Steve. of of down those difficult north BC, that boil Yes, given it’s that It’s we

land of all the a above we last little were that week. So more of BC needed, we than half access granted Crown

We’re to for the requirements process to Transportation. as satisfy required of them them condition and to schedule working construction on for many the hard tough permit satisfy marked there’s Ministry the next on the But of or really location. year, depending

that we in there then and We the influence. the get think hard is authorities four. to are a Columbia. working to British continued overall the but access, of statutory get hundreds And of the seat. seen to Robert three political any probably NDP work. the continue stream need that spread don’t things to and well evidence BCF of a that number any sections XX we’re since and And I there X,XXX the took of there the their There’s from do number see on life we’ve We’re bureaucracies ones other the kind message the smaller interior about anticipating soon. over Northern is were related wild like up And

Robert Kwan

what that, delaying spending all nature to are down you’re is I estimate of the understood. delay the spend activities to materials? lead time or of pretty lower with construction a XXXX have And and ordering in you into it also just contractor drilling longer the just of some much going on

Steve Kean

in as No and be we to of the land would out in sections delays that well. part it’s essentially related conditional varying all permitting access approvals need and that of construction release a

Rich Kinder

job to we’ve as in add be. been Ian here the me Steve need Let to we build on just And project doing what and great we we’re it. expected than said, that it think doing and obviously said permitting as this certainly in Steve that are the and release has permitting I and a order slower

going shareholder to We’re waste money. not

levels in Steve being that and we the of We’re spend continue situation accordingly. the in gave then how to go the we’ll and careful forward look very as dollars numbers you and because on spending currently we’re we as that’s at just

Robert Kwan

lead in question. Okay, final that’s actually great my

court instead delay given potential months. we’ve looking versus of to talked court try the a mitigate by do delay the the decisions? at assess risk you’ve you’re and for the now, over mitigate With the desire cases to up kind the few to to to you desire months some that that next nine right delay mitigate waiting about How your of got

Rich Kinder

means point cost play predict for flow in the and is work were we need keep of I’m our or can that but matter we viable will of do not play schedule actions we’re as very look And we of way. put they cases events on contractors our the result very those, to are schedule in ways and how out, said, of of not panel, ourselves. we impacts with now attaching processes think need contractors more authorities any to anything to course, schedule. it we’ll forward I the to work FCA mean, to of government good the efficiency weeks to to the that as or at delay I to with effects be optimistic and in the going And a mitigating but out court decisions when ecnouraging. about as optimistic that timeliness principly the relates federal And speculate assuming create I’m we last efficient can those Steve permitting a those a a and I’m maintain that in normal feel The as involve, the as those to this preceedings. of

Robert Kwan

much. Great, very you Thank understood.

Operator

is question Followill next Our U.S. Capital Advisors. from with Becca

open. is line Your

Rich Kinder

Hi, Becca, how are you?

Becca Followill

gas outline the was questions. – the in you can ask XXXX. in Good mind the one, that Why for that thank I’ll settlement to positive footnote looking $XX second are pipeline legal on you’ve for what and items the one those negative your terminals to you. you’re $XX amount? certain about, minor Can talked Three are? listed Kim, what negative million

Kim Dang

with was right associated away. settleement UPRr legal The the

Becca Followill

Okay.

Kim Dang

approximately items offline? was With that – $XX we respect And can don’t just to do this why certain I million. –

Becca Followill

we’ll Okay, do that.

Kim Dang

is example each I can thermals of with on about of that. probably sale our talk what on it’s associated to for deep the rock, you which those are, interest a and gain

the a Eaglehawk gain, associated impact. to with as probably charter which tax the terminals, is it’s rate to contract gas that going then potentially the report in natural that of positive because you’re that We is value a rate we have amortization Our settlement, record. increase which going revenue fair item. certain and But on

there’s do I’m host off line. whole happy it just of So items in which a to

Becca Followill

COX gross on Southwest going last something and are Production top down unusually is the numbers the question numbers segment, on Colorado that there is are there? the Okay,

Steve Kean

on pay that that pipeline out had non-consent, of expansion Did assets, absolute, of until gross our better investment. Okay. higher right? up in that so and our numbers benefit get expansion went we the that got one partner Yes, we Southwest and which ownership down, and an of of are the means Colorado I interest that

Kim Dang

that from right. the on COX, is volume This

Steve Kean

why from she gross about but is that talking net. different the is Yes, the

Kim Dang

pretty the production, were field. they from That’s the non-consent on

Steve Kean

On the field.

Kim Dang

On the the field not on pipe.

Steve Kean

expansion. Pipeline

out returns. So non-consent paid partner went the the partners then and interest project when

Becca Followill

all had. Okay, gotcha. you. I That’s Thank

Operator

Our next question with is Prudential. from Winans Dave

is Your open. line

Rich Kinder

Good evening Dave.

Dave Winans

Hey thanks guys.

what’s at capital easy Just adjustments the after total spending budget budget one, the now? KML

Steve Kean

In for XXXX.

Kim Dang

XXX roughly. QX and QX and are XXX

Dave Winans

from taking one appreciate for guys. it Thanks a bondholder,

Rich Kinder

Dave? Do that get you

Dave Winans

Yes, it. Thank you. I got

Operator

is Khan question Faisel next Citigroup. from Our with

Your line is open.

Faisel Khan

pension guys, in show year? quarter, just question. Sorry contribution one The that the of that last how was the much to the like sort in you for

Kim Dang

Yes make $XX and all to year. million we it’s that’s expect this

Faisel Khan

you. Thank

Operator

I’m this questions. no At further showing time

Rich Kinder

much. And will the very Yankee friends game, watch know be. you Thank I all fans Astros you. Well, the Okay. thank

Operator

Thank this at you for lines may conference. time. participating in today’s disconnect All

Kinder Morgan (KMI) 18 Oct 172017 Q3 Earnings call transcript