- Earnings call transcript Q3 2022

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Operator

Welcome to the Quarterly Earnings Conference Call. [Operator Instructions] Today’s call is being recorded.

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

Rich Kinder

Thank you, Ted. meaning as KMI’s do, this XXXX earnings forward-looking measures. within begin, remind like call and we Securities as statements that Private certain Act you release the as the before Securities we Act of I’d always to include Litigation Exchange And Reform the XXXX of well of today financial and non-GAAP

this several model. today, bit capital-efficient agree gas transition in business assessment, infrastructure such financial our want efforts, measures latest factors we that statements. model the quarters And and energy sequestration. well full investment are described earnings recently Morgan making a diesel decisions, strongly use natural for call, of of to that encourage SEC business of natural to spend differ our and An important natural any as omits gas to including at risk actual discussing non-GAAP our Kinder a cause although on expectations and in results to disclosures as existing forth leveraged and I anticipated renewable our infrastructure filings capture gas, read with forward-looking that forward-looking significant set in with of the statements I last and carbon it Before renewable may I that time infrastructure those materially our on steps value you describing review the potentially largely today’s analyst end material the our spent from capital-efficient as release growth. environment. assumptions, described and

new the in Northeast it’s Coast. U.S. know, and become other build greenfield projects, pipeline particularly outside all the we Gulf areas increasingly difficult As to

such But an That’s additional markets. is, obvious use moat building ancillary to valuable. assets Herculean a customers new don’t value. a network Those equity around basis poor long an expand on permitting in opinion, task recognized step-out great While difficulty more assets without company widens existing that make source does can KMI. policy, public project. the provide company in place to affords extensive opportunity of our beyond existing facilities the a new this at yield that, sprays by already pipeline for of like our ours incremental having think good value very service the I shareholders. and to infrastructure The extend great and fully building our an and a even and is return in greenfield projects for it unfortunate like bucket situation and my

We are that Texas for infrastructure and fortunate and natural Louisiana, located. particularly additional that at states in where large of understand our a of the need for and new is the is throughput, much gas, KMI appreciate demand energy portion so network

XXXX and continue in to We last grow LNG by demand, which to expected number demand That’s LNG incorporates in on the demand absence roughly more Let day of doubling number will According XX natural XX the to that specific. shutdown XX number current which online. a come virtually years. new has project already Bcf grow day that the consuming decade. those over grow a the export for a LNG this Bcf has focus a been to end since let just is me The by as demand that to me That June. enormously Bcf a after Year-to-date, over by gas rest XXXX, be is driven be to facility, in grown growth but ‘XX, the by predicted day of and Global the Bcf forecast, projected states LNG X users, XXXX. facilities XXX% of X S&P day facilities. Freeport is is of from

me. in the today, asset which in seems huge contracts is business what respects this reasonable in the scenario the in of Given is and to and call it more That will and actually push. a Europe hyper pretty long-term growth usage than our result much pool, Asia, That’s in supply continuing many demand increase base situation occur where more in we, of so located. Texas will which pipeline Louisiana, valuable is most

To basis about know, As we or you to to the move expanding in maintain expect continuously LNG the gas customers, consumed we that all producers the growth we facilities are both and accommodate we our on expect. end an currently future. XX% and incremental share serve of our expand users, by system

examples that to result the grow system you and the demand, Louisiana the of to When Evangeline in that months. expansion generation enormous Just a serve Mexico of to value include coming which facility exports of for gas of a LNG capital and in the system effort Paris, the connects add to for basin, need in is system the the Permian electric the building company. massive the venture Pass PHP and natural that Plaquemine, industrial will projects couple grow Coast the expect turn opportunity of LNG announce our our additional our we to uses, manner, in increasing capital-efficient an Steve? Gulf

Steve Kean

Yes. Thanks, Rich.

year. good a having are We

projecting year-over-year year Kim nicely are better to you. the and David to as QX will show and substantially above be We QX, for plan

commercial tailwinds, price commodity also is operational and but are outperformance on up we the performance. of Some

Just a of couple highlights.

on they we are gas on Pipeline. offerings production our our in as elevated segment, though a when transportation intrastate in Existing not up prices And we processing were are even system plan. commodity system, talked and Midcontinent service previously gas SACROC interstate also it Our after capacity above we and in we year-over-year. it seeing storage and network. plan sales benefiting And our well and both up and is on on our are of growing are it from COX, is and major are in Texas Express and business is versus course, renewals seeing strong. challenged the natural higher prices we capacity value as In are systems across Gathering network this QX. our seeing

costs much of actually holding we our work doing measure hard the year. analysis of this It’s are to on because reliably what facing precisely, back in while we are inflation. But procurement added are cost based culture. but track, impacts performance headline well very can of we our headwinds, are that We appear you up, are this mostly well is operations below the half be we about work attributable teams Much PPI Actually, to good that seeing. good experiencing increase. numbers by to and our of and of

investors’ We our are with frugal money.

gas, have LNG capital-efficient of and that Rich our opportunity long-term I the are network. That emphasized Bcf in is give in $X.X particular, other serving as expansion network long-term that. we clearly The and ahead, our is X.X especially our Looking contracts seeing We opportunities you is that opportunities good LNG a under of illustration facilities. positioned. billion. across existing associated will very an investment well and day biggest There currently Bcf was X.X well. for are network

and We a and talked to customers our day industrial identified a about power have on plant, Bcf of system expansions. Texas each utility Intrastate over

and the I in acquired and products have backlog when $X.X of our experienced in natural about this happen, $X.X not that and course, have returns very under taking economic will already projects going feedstocks into add all renewable a On our construction over with of service investments, $XXX terminals is delay expect meaning of since to Transition everything gas million projects but EBITDA billion now EBITDA the Energy Ventures, that’s Of with account a the transition renewable billion little an biggest energy and right or have net in is to development a some and modest projects, we we ventures the what that that and at now cost multiple we and activity natural businesses. multiple running. the are is business, the backlog good increases of up quarter level rolled shows into of Xx it and up diesel strong. We in while projects over XX% invest basis quarter, almost of one gas, low-carbon last markets. that’s on

Elba multiple on value We enterprise quarter. was implied XXx. approximately also interest Liquefaction an during closed EBITDA sale sale in our the facility The the of to the of

of to that Again, business we proceeds, last years very the so our pay for our to think well X well we up expansion favorably price year in very use our of are aggregate project through us over as can multiple. the And about X.Xx in are setting terms a as good and future. of multiple having share

Our balance is sheet strong.

good renewables. and gas particularly seeing are We in natural value,

Kim. value We are executing to are finding we with to and on turn shareholders. attractive it returns projects returning And I will and over

Kim Dang

volumes power the offset for third-party by pipeline outage outage, Gas Thanks, Starting capacity segment, saw Rockies Natural added and the demand was Okay. we second were Freeport volumes flat increased versus on and continued quarter to and business LNG volumes Steve. the reduced the transport from that pipeline of as roughly in result decline the with Mexico ‘XX to production. market, quarter a EPNG, the

our robust Freeport in pretty the adjusted XXX to LNG about plants. due outage. of the per facilities outages, quarter. would That’s It’s nature, quarter the X% day They X%. summer pipe this up have than about Freeport that’s quarter driven temporary third were gas million to and you it’s incremental the were million per Deliveries been If Deliveries ‘XX, off moving to to XX%, second for than dekatherms our of dekatherms by about day. EPNG are that’s in lower plant demand, power LNG year. we but about volumes volumes record which averaged incredible. X.X of up power higher estimate power the Again,

of approaching for for gas as is quarter Bakken, strong, up and increases very and about for we Bcf XXX to XX%. the services gathering and about X%; track the was to our estimates Haynesville, to the increase to volumes Ford, group mentioned, Sequentially, Haynesville our the compared Rich gas which volumes we fundamentals driving budgeted the grow. XX%; that natural grow X% day and were up XX% Rich what storage demand market said, to gathering were with to Overall, about transport To XX% natural by demand on that both Steve Overall year on continue and ‘XX and big are to XXX X%. up natural in Bcf for add are about XXXX. Steve the volumes from volumes, gas up market demand currently and currently up roughly gas a third demand were XX%. our full by in expect driven natural Eagle quarter Our

U.S. the and EIA, reserves. the we supplier. to one reliable is the have positioned to producers from the of needs plus an environmental According And So the perspective, of in that United world. States gas the XX is world recoverable a natural supplier years of emission lowest be

the which in products slightly On demand. XX% segment, diesel of down the were we were quarter jet outperforming Gasoline third products see But increase did refined down was X% volumes ‘XX, X%, EIA, down and X% and versus the respectively. fuel X%. quarter an in about

the we reduction quarter. bit started results. the the offsetting On than condensate, For in little down X% month Ford an Bakken. increase Sequentially, with volumes a they Eagle and were were in October, the a than in crude the about more stronger QX X% down

business our segment, remains percentage high XX%. On the liquids at Terminals lease

to the out percentage drive X%, current renewable XX% ability that throughput, an it’s tanks by which does results, diesel required but over lease roughly volumes, of inspection, not you liquids of and in XX%. up of which renew about indicator our comprise gasoline, driven exclude volume. was so service our future If Liquids contracts for is

remaining over in and in currently York experience the XX vessels by all to firm New X Harbor that weakness years. lower the continued hurt our tankers continue of sailing was with business improve. contracts average We We has average under business rates, quarter to but have some terms

are XXX% ‘XX, XX% shipper have average days be at that under XXXX. firm of look exercised, the if approximately we contractual than higher rates For at charter. the it’s you options And vessel to likely

We interest years have several seen chartering vessels out. also in

and flat. were coke pet coal was mean, X% our up coke segment, Pet by steel, that that the – pet the offset lower and I steel. nicely, quarter production substantially steel COX but margin bulk were was was off higher On up nicely, the coke volumes budget. overall offset lower side, from but a versus the but up were perspective, metal in and coal

expenses combination about exceed about be are full be the positives production our X% COX volumes we For and These our budget, and are year, a expecting to operating of oil level/production to X% due our and offset budget higher inflation. budget. that’s of higher partially price to by above to activity

COX and the very was QX and volumes versus X%. plan to of volumes we difference higher of full and CapEx a the that versus was fourth expiration X%. project will and up had Overall, X% prices QX sustaining year X% production down carried the a X% board. by exceed For ‘XX, second the in were per year-to-date. share performance. into on year-to-date full were quarter the We DCF performance X% the were the expected year up DCF is project. about primary our the interest currently NGL driven that guidance XX% good by and sales share quarter. up of crude we on down was out EBITDA per and Timing third DCF the driver between our across

to And said, high-return increased million. a result, opportunities. our Steve more the that, seeing are end. to $X going range the expect we as over forward, to year, turn $X the through the progress quarter, $XXX billion will expansion our with backlog be In of And or as middle to about in it we we As maybe billion David I would Michels. higher

David Michels

you, Thank Tim.

XXXX, declaring up I X% dividend is financial performance. One are per from our a XXXX annualized we of So share, dividend. third quarter and the before the which for $X.XXXX highlight on start $X.XX of

advantage We to over this our what by repurchasing stock past of take quarter. reported quarter. last shares added of We to $XX we continue price million repurchases low

are $XX.XX going average approximately share. an those year-to-date, shares shareholders. attractive believe repurchases repurchased our so million price generate we And share of for at now to have We XX.X an return per

regard savings without Our X.X%. the is terminal to dividend dividend growth current from value alone the or

the For The XXXX. by of billion. cost we quarter from the financial generated $X.X $X.XX quarter, performance for sales of the also revenue associated third billion billion, of $X.XX up increased

those two, margin million our gross $XXX higher. combining So was

last up million, the $XXX from was year. income million net of $XXX third in Our XX% quarter

flow our up which was On system, a and strong. performance year. The items earnings, also Texas segment recontracting KinderHawk and prices $XX Haynesville, very certain distributable rates up to impacting basis, contributions third million on the excludes adjusted was and greater Our compared cash was Intrastate last of Texas. Copano XX% NGPL quarter Gas our Natural volumes greater systems MEP, higher South favorable Altamont with SNG, commodity from on our

our on Our inventory offset higher HH prices integrity system driven values, rate was million, $XX Product as segment a by higher lower crude commodity volumes as partially down by decline in year-over-year. our impacting well escalations costs

lower and up $X Kim with was York as from coal million coke year. segment Ship terminals our volumes mentioned, Harbor the greater quarter Terminal last pet Our – Channel and partially contributions Houston of versus liquids offset New by third

segment $XX favorable COX by up million, prices. driven commodity was Our mostly

year. both X% So $X.XXX was last billion, our last DCF EBITDA year, our XX% above our from share billion $X.XXX DCF up was of $X.XX, was per and

quarter, For X% the full was year, for X.X%. to And we DCF mentioned, budget. as of to the be Kim expect ahead budget by X% our above

the fourth DCF about sustaining to our presentation Day is of into in year. said would quarter in capital Investor this third of January, quarter. the of XX% a of reminder, at Some And our we due shift that come a as

DCF If that you last you XX% is quarter, we apply quarter. you to exceeded by which budgeted that would see we expectation to what increased this that our X%, guided

So, Day. shaping reminder provide Investor useful information at that our we a quarterly on helpful

net of captured ratio. contribution. XXXX, ratio from of the ended net Uri contribution excluding in Moving that billion X.Xx. Uri X.Xx, debt The We from EBITDA EBITDA Winter $XX.X year-end with the X.Xx was EBITDA the on at quarter the non-recurring to it sheet. in debt third balance to Storm year-end was the adjusted ratio up February year-end a and as That’s

to favorable metric So we this year-end the Uri. excluding nicely ended quarter

Our decreased $XX million decreased to year-to-date. $XX has or debt to net million

and Liquefaction approximately primarily sale capital related or a reconciliation companies. posted $XXX We’ve million quarter $XXX from to about through $XXX of paid billion. two go of to the payments and natural restricted which rate you of year-to-date I’ll million of $XXX We’ve interest gets for the of increased We’ve through repaid And generated cash of third in So company of activity. settlements. we’ve and had repurchased that. high-level in deposits, net $XXX the acquisitions, that contributed margin of stock gas $XXX end. to million some change and had other received We use, reconciliation is Elba million about had We joint growth sort the renewable which working and due to expense is mostly our million interest debt. legal our hedging $X.XX contributed of We’ve DCF close for ventures capital dividends year-to-date billion. that’s million. $X.XX We’ve

it completes that turn the financial So I’ll Steve. to overview, and back

Steve Kean

go I’ll got good one get limit and your hear yourself the up the more, channel sure and have just with open questions Ted, Session question. the if back then queue, on get we our you’ve and around take today, to remind get Question-and-Answer question and let’s I’ll of them a and and here businesses. Alright. here And answered. ahead team for management will you table you their let’s in And from questions Alright. follow-up. the that, about everybody, we sitting questions first that to also, make Ted, chunk a

Operator

First is of Mulvehill, Instructions] America. question Chase in [Operator from Bank queue the

is open. Your now line

Chase Mulvehill

Permian of thing afternoon, hit good first how talk could running. the you wanted of maybe is which system, would guess, much out back EPNG see kind on And Line Line you’ve egress. guess you I outage everybody. today. Hey, and is up about throughput residue And incremental I and of got to I basically XXXX timing XXXX gas just EPNG

Steve Kean

Okay. Tom Martin?

Tom Martin

Yes.

detail. see of in incremental west in just is much can’t and outage, XXX,XXX But service. flowing the we given that line that volumes between XXX,XXX back general, too day when somewhere So nature of a we say in

Chase Mulvehill

some it’s takes talk and I know not numbers we overall you’re see you unrelated know of the XXXX? exact but to follow-up, out give or kind going perfect. to as little Okay, early a look just XXXX. And anything, us to maybe I as business puts

Steve Kean

Yes. It early. is too

in process. middle our just annual of the budget We’re

always Natural talked will that And so today. knows we’ve next Gas give I nice got and to we the good here going do, a look tailwinds. some and information update we’ve project what our tailwinds Who commodity we we like But good think nice when we prices business mean, It’s some complete. will opportunities. as – we’ve in – of that things it’s year. backlog I an got But projects about you are have

are those the so And pluses.

On the to don’t minuses, of with but after about above $X.X year. is we next refinancings rates, – highest we our floating have about We billion some $X.X we don’t which happen going and what’s rate know billion another debt, on do billion, some renewals year interest see actually that. on $X.X or have year

big the And and those some of so puts takes. are

Chase Mulvehill

back Okay, will perfect. Steve. I over. turn it Thanks,

Operator

Next Tonet question JPMorgan. Jeremy with is from

now is line open. Your

Jeremy Tonet

afternoon. good Hi,

Steve Kean

Good afternoon.

Jeremy Tonet

as buybacks with the there? other do quarter. regards consolidation RNG weigh, to the growth out in Capital other debate market allocation CapEx allocation On the repurchases, a ramping or focused, is for could especially philosophy if one you capital wondering and is the pace of days? you update guess, the some how maybe to just you there saw I up if have, us these transition opportunities a laid energy case big made you you your see you are opportunities point to But relative as will how in be hand, there

Steve Kean

sure the operations, X.Xx. Yes. We first balance got we’ve do. sheet, And we’re those in this, record long-term the broken but approximately the of are a than all kind be at metrics things. course, to strong making on And of proving of a we order our look stronger of

well. beginning because want minuses. above is in our at we shape for positions good Then there. execute against – invest investors Having so year against said, little David thing, well capital and on the that well having from pluses good equity NPV a in in And projects capacity investor there, conference, including as can you we’re the cost to we of – also we’re the attractive high the a contract – the extra returning of for the confident it

what it’s growing backlog from value And and to. has so to to And a a Kim opportunities in goes that alluded there, well-covered but our returning combination see of then that’s you happened dividend. shareholders that and the

the amount repurchases, this opportunistic X% share we’re of a which year-over-year, mentioned, So significant we’ve then up dividend year. David done as of and

And mind so how operations order our for allocation to of kind of bringing that’s about of capital we value all investors. and in the think keeping it,

Jeremy Tonet

you to Got just helpful. with quick. for real want Elba Very it. circle Thank that. And up

Just and look similar assets monetize Elba of in expanded be to you more could future? might that or wondering, the

Tom Martin

MTPA any process know going there, early So are be mean, million the existing be apart but potentially now, can the opportunity we space that. days cash would yes, it on for I the incremental have work, MTPA and the really, early with little it. but be days tankage would looking selling And And over as very interest flows, we synergistic to at will there, that from that separate through there. – expanded, usage opportunity evaluation as whether and that far do would a and dock expansion again, X existing very X be

Steve Kean

I the more Tom at we own invested we made opportunity where than a And of XX% of the the very in good deals we’ve Elba, and outside – that referring nice pulled proceeds JV. position very we is facility, still it our be Yes. and very, attractive we expansion several to have like and actually got clear, mean in in multiples is to

would to we projecting so be we’re account. our are it’s for not that expansion, are today, to if our do we opportunity but not you an examining – – and And the we’re able backlog, which not in to

Jeremy Tonet

Thank very it. much. you Got

Operator

Solecitto is Barclays. The Marc question from with next

now line is open. Your

Marc Solecitto

Hi, afternoon. good

X% you to start So language, to just X% for referenced maybe budget EBITDA. above on guidance the trending

the other But subtle transaction, You language I about obviously quarter? any a come down talk strip last around Elba bit. the drivers has in if wonder change could from announced the you

David Michels

significant We’ve seen group. CapEx. outperformance in we’ve the got quarter, lower last gas sustaining the Since Yes.

in as anticipated, to Bakken commodity volumes hand, than for prices from seen recover storm lower the the longer higher and because primarily decreased. it products you We’ve other – interest. we refined them lower have took is April On volumes noted, an

Marc Solecitto

it. ban, be export if the helpful. of in the just about scenario, positioned thinking tankers Jones event that And you I your particularly That’s Got about would storage, product product then talk could a business? pipes how wonder in assets potential and Act

Steve Kean

But with Yes. and to, will start [indiscernible] John. we terminals

John Schlosser

a we we XX the From terminaling month will And we will about for side, at it a about think neutral negative be a there standpoint, decrease see us. on at And our XX,XXX. export handle docks. vessels

it’s see we on. Act see volumes. So each roughly on month in But million side, Jones $X will degradation positive increase the an you’ll

Explorer an increase and in there the largest York storage, price origin of my you’ll in point. in pipelines, were You’ll Colonial see Harbor. in of a volumes the both opinion, and which And in see New spike the

Steve Kean

And Dax from a products pipeline...

Dax Sanders

Yes, neutral for us, it’s to probably positive.

got then of benefit benefit clear and there. point you I well. CFPL particularly position on as I We Colonial products And in the the to clearly little certainly at think And into Southeast the some We Southeast Central Canaveral stay in reasonably out you’ve would in CFPL we expect have in that coming and that, on but have capacity neutral. John’s allocation. see a would if West moves to of up back would on if on off, move PADD Southeast important, bit products think is would that or Port as less storage got seeing I and backed to Coast think well. that Florida that get that get probably pipeline. continues some that I could the you’ve into But the look probably X probably imports product trucked you’re that

Steve Kean

to things on comment less global to not of thought improve won’t integrated going you and at And to some mean, just probability U.S. here. pump I is that think less as written have the becomes it and It’s about effect, think and – we desired right? market. this, that Marc, And consumers. I happen. through it the This as consequence, a likely for more, a it’s have

Marc Solecitto

helpful. Appreciate Got it. That’s very time. the

Operator

from is Ding Securities. Next Neal Truist question with

line now Your open. is

Neal Ding

– just on. magnitude you that? near-term Good can afternoon, a details. have any or and Obviously, you opportunities talk lot talk think just CCS, in talk of mentioned things on of type wondering stroke, about you of seeing may broad can about? I guys. I’m you going Could maybe the Maybe I’m you what wondering you be guys the

Steve Kean

to who that will start runs the IRA, and economic of I Ashley, I is out the in Inflation in. ask more of Act, Anthony group refundable and think, for the increase a XXQ to – credit COX made Yes, was Anthony in weigh credit sources – that which credit, Reduction look, an there But the capture. increase the has

plants so like things started processing plants. up with ethanol picking So of kind we ammonia and plants,

Now like it’s picking up plants. gas natural some things ammonia plants, cement, coal plants and some

seeing up. then Anthony? were discussions started worked kind pause we And those how picking that of that active out. while had going we so on And discussions

Anthony Ashley

Yes.

definitely the increased As since Steve IRA would activity say. seen mentioned, I passed,

are we will having processing happen the would opportunities opportunities. discuss U.S., around be the bigger space. a larger are seem especially be Our the plants, guys. smaller been most Texas much take little in that areas, around West to to focus existing able But bit the but with have emissions around probably those develop conversations near-term longer in a likely and to bit say off that gas you areas footprints our I which of those to are little

Neal Ding

going didn’t do say currently I is you Got what’s say you on anything, the it, details. there follow-up. – any Freeport, downtime what if just you if one say could know update with just the just mentioned And and could know then Great volumes don’t I of you there? guys. associated around

Steve Kean

than you reading company We in in from don’t what out public have can itself. anything and other the find

Neal Ding

it. Got

Okay, all. thank you

Operator

from Next Keith Stanley Wolfe Research. question is with

is Your line open.

Keith Stanley

I on Hi, thank wanted you. RNG. to start

on any how going over platform is takeaways run? development organic you guess thinking you’re clear open Or deal this? deal more the the you the like it about are BP, if a I competitive from landscape pretty to and larger have Just to you’re curious Archaea focus there? long And relatedly,

Steve Kean

prices less kind table. It’s investments, BP the identified $X.X M&A on the valuation and is multiple deal without a but well getting that a just earlier focus bring here and other acquisitions they basis on are that they to value, the that very speak that attractive the based say we’re those synergies bare point. things other our at to our and of that sources account on billion that this doing. EBITDA things is I above into taking would best where the and of on

are to We have a continue we that active discussions more nice but have organic platform there, growth.

Keith Stanley

you. Thank

just on interest rates. question Second

just that believe the of any the rates, the over you hedged if I a – that your you this at of I then you some had to all? it into a amount year. does variable done I for leverage alluded keeping higher So heading the what that past, make on to-date? cushion. of Or rate sustained exposure are they time, kind you’ve in to And that, for it. of guess financial little related done current more think you is target rethink maybe Have fair year

David Michels

the – the heading this about of hedged we year, $X.X of into So, billion $X.X the of swaps. billion $X billion

off So, ‘XX. that in to is going roll

now, opportunity we to billion and ‘XX we have any $X.X hedge good think that’s be So, floating we hedged have into right will that. able And going next of year. not don’t a in to

looked we the it over forward the rate where to we floating, terms because that debt periods long floating and on policy going have that floating looks trade. of of is our In curve over-predicts like reason is the policy time, have on

And to we of so that. take advantage want

less, to going more going that means are are we right. some going and to not so more. we for pay pay some that going less pay years, are we to to dollars, we In years, And are –

So, positive it us. value up a present net ends for being trade

And so is our higher think I not interest not that’s year, to have change don’t pay X – we in policy rates. going because to

Steve Kean

And years. well us it’s as Keith, know, you over very the for worked

So, has the the long term, value been over proven approach creative.

Keith Stanley

has. it Yes,

are comfortable X.X there the I target, to seems is leverage today. with and fluctuate leverage the on – still – things very like the too, Just this no you going you target like it mean is where are are

Steve Kean

Yes, we are. Yes.

we we that. capacity think asset targeting take of thing. as potential share as we repurchases, than that sort for to there be to Now said acquisitions, and the and in year, potential are of of value for David And that the said that is advantage better do at projects, having beginning

So, we a trended lower. little have

We lower right now, Thank you. yes. are

Keith Stanley

you. Thank

Operator

Next with question Ann from Salisbury is Jean Bernstein.

Your line is now open.

Jean Ann Salisbury

more Permian questions about Two Hi. takeaway. gas

So, late expansion. date Highway the XXXX start is the target Permian for

there late example, that that had you like that, project that’s compressor like demand if be brought earlier of that might XXXX? be sort gradually a gradually, wondering could was earlier the kind XXX, do and you for that I just of Given for adds on to that than

Tom Martin

– And that will we look the how really with marketplace to in to and today. if get speak year the need just to but if that do see we same have can, you do at certainty to do. we we will see Certainly nothing possible that’s into that can we the

Jean Ann Salisbury

open update season if the Okay. on That’s of helpful. GCX just maybe is we – expansion sort Thanks. should not And that relatedly, upcoming was consider if not or in then this round? I any there wondering

Tom Martin

market new really to report to continuing nothing it. Yes, there,

sort could in down, higher right but nothing past, some opportunities is be about fuel the there, really but marketplace prices to in issue prices, talked speak have at the the to as now. new of these come there the we As gas

Jean Ann Salisbury

Okay. Great. me. Thanks. That’s for all

Operator

Reynolds Next question is with UBS. from Brian

open. is line Your

Brian Reynolds

Maybe follow-up quick debt a ‘XX. for allocation taking the my maturities due coming significant capital everyone. question just There in are on question. Thanks Hi.

and if rates perhaps of you leverage thinking how you of flow So, about the rates just refinance about cash the near-term in in and near-term refinance debt rising lower the future. to curious, over of the ability that refinancing the and over are I just liquidity of about Kind using some ‘XX. the was and curious free you talk of to think can some better as Thanks. hope the target at the perhaps in that the rates back

David Michels

really more just Brian, budget budgeting our completed will process. we information our the begun Day. just Investor have Having have just a Yes. lot yet, – at we having

speaking, of the And than interest to I to just for past we have so many generally been provide have higher guess now have much don’t rates you. they been are lot and recent a detail But years. in

in think take patient these approach going I locking rates levels. towards are a we at so to And

$X have billion capacity to right available revolver the We that’s us. now of

of amount healthy a on sitting are cash. We

we addition, In so flexibility, have we and will patient. be

Brian Reynolds

That growth if was and of around nat supply implies that maintain gas gas of the growth gas previous next, share remarks. growth to the curious color nat Haynesville next And in your remarks Appreciate could the growth nat Northeast chain. call just to of of growth a along prepared XX% demand that Permian, opportunity the – And positioning of I talk could years. supply lot about XX that for you demand exports local over to expected on of you thanks Northeast Great. market LNG, for over around support X spend LNG both the Bs if years? Bs kind it, CapEx areas type curious value that. and just to the for was about given of Kinder’s talk future Thanks. X the XX trying

Steve Kean

Tom?

Tom Martin

Yes.

as clearly, So, it to Gulf – our Gas Louisiana. earlier the be Morgan Texas and whether remarks, Tennessee Texas, assets, proximity I the the Kinder of many Pipeline, from others, NGPL would in mean Intrastate, our our goes discussed Louisiana

LNG in nice support grow are mean Eagle a in network us is as as – We is really to Haynesville well. for nice Ford Texas, our expand well. support – I as the those nice to Permian the and opportunity grow position lean volumes great Louisiana markets growth with of And and also another extend Eagle Ford and the another a

the incremental there. Gulf volumes Marcellus/Utica, Coast a to lot mentioned harder – the You a to get lot base, resource great a

growing think the our is than the next that see we we projects maintaining not and XX% across Permian think and market concurrently Louisiana, incremental largely sooner, Eagle will position or So, I even we Ford in as Haynesville with, exceed wave Texas, really the great forward. supplying go the what of a if are to

Steve Kean

illustrate long-term do the the about X.X nature of of $X.X look think that under There and the absolutely of X.X ahead, on the that’s capital-efficient billion created to to that’s liquefaction it, about I these is proximity we a The the our to a be chunkier million million to number but I that right, that more of And projects, could think reach flowing time. prime have could facilities ones, our also network look, contract. we But There outlets, we our get really you as was network capital-efficient of as we And look expanded there be by right, but under that’s $XXX with bigger tried but may to relatively talking can the that not with ready expansions Bcf projects, we yet builds are is are more them XX people X at $XXX they look, with investment. for contract. that, mentioned. Bcf, there FID-ed, Bcf fair investments. than like look roughly capacity systems, call Rich on quantities who some Bcf bigger network, at we can where not and sitting as

Brian Reynolds

Good. That’s super helpful.

Operator

Next Michael Lapides Sachs. question is Goldman from with

Your open. line is

Michael Lapides

Thank question. my guys. I taking for Hi up. two had you actually

outage opportunity is Southern in volatility future to once the question. That’s expand there prices, first given gas is California all, any EPNG of the First the done.

over it cash and left kind from or curious assume negative cash a is for thoughts a from on Second reverses, temporary over year, muddiness XXXX? this $XXX that’s one there. the we David. probably Just first flow the of Should this been drag just impact little of has the the something Working of million. question kind is capital quarter

Steve Kean

Tom, start EPNG. with

Tom Martin

Yes.

certainly, at EPNG, look to those we continue opportunities. So,

projects I incremental proper there. take capital think it the would on term to getting the support is out that challenge

looking have at look storage opportunities continue in We been that. at Arizona to

power think the really, storage can to of about we think of deliverability the contracts kind think all support get is capital. better I revolves we demand, I a solution which around term at it’s that volatility are looking for I right But supporting largely high there. that. Again,

Steve Kean

David?

David Michels

And on a capital working high use, had year-to-date. our of use we working cash of amount capital the had

fourth, is going second little that are first quarters, expense The interest the bit. generally payments of a Some turn that heavier third to and and around around. the see the turn in you

full expect for around piece would I So, that the to bit. a year, turn

settlement – which also legal and we had a this We settlement were have rate unique XXXX. to a year,

as items. those see wouldn’t recurring I So,

out cash some margin, call. on had hedging fluctuations. reconciliation turn we commodity – Margin I could driven calls called in that’s commodity but price prices. which around, our depends on it by Finally, and earlier That’s my on activity, the

Michael Lapides

thanks guys. Much Thank it. appreciate you guys it. Got and

Operator

Next Energy question Pickering is Partners. from with Michael Cusimano

open. now is line Your

Michael Cusimano

mentioned curious earlier Archaea you RNG. Hi. versus what feel to road? the the – how earlier KMI Good vehicle a on attributed you Could value follow – was how everyone. To speculate valuation you down it on think afternoon like to quickly on feel options and about maybe question or maybe I the option Keith’s was the you public about about separate the

Steve Kean

Yes.

lot the things a am on So, I user okay. bunch they BP’s across going try their is there. There economics, table of – not to mean look, as on whole a commenting bring They I I have of that RINs. portfolio, their

in, call we least really couple earlier running. times comment it, all and my business what tars, multiple this to what a EBITDA it’s on just invested of So, looks about when those at focusing expect in have if apply the like are multiple that that middle up or facilities and was decade. you And invest

a Is with future we – business appropriate, we some why But in growing It’s and It’s also And there the in opportunity so growing reach it. are critical right. it. an the And you monetize we yes. a probably think to will point well opportunity. business. that’s and we mass, like do when at

compare And when so we get would there. have those alternatives we to

Michael Cusimano

today, those the structural recovered extra if also, about product bit like then That’s to prices affected can what’s and quarter? lower how what’s variable talk And Got refined little outage? to it. a like you give of the can volumes margins. have little weather a think lower it fully on crude from detail Trying helpful. this stands the segment, you product if then And where maybe on

Dax Sanders

Yes.

was for So, volumes. the crude the on in quarter driver biggest HH

basis decrease down of on has pretty the differential the that. HH, Cushing, X – decreased XX% upgraders which has on that both on Canadian think and roughly had, Bakken is I the premium has to biggest some were And PADD which they an refiners driver the are paying year-over-year. a good Guernsey for impact barrels, down, which had So,

some that has as to basis additional barrels that of has from see in little so or Hiland upgraders we And hopefully, the the Crude, come and start will your – back, see April. on winter to storms point, come that will Steve’s back we come to HH. a back come bit point,

And XXX, budget. in, We are than a forecasting from to, in looking flat a and now, the we we wells. we Crude reasonably the We in of, Crude. going budgeted good it, of close Hiland about those year, less to in our X% what we quarter, prior the for neighborhood bit hopefully the are prior in seeing flat to call kind Hiland at of some for are somewhere quarter. but fourth call little XXX coming on hoped fourth are had improvements year for Right are chunk it, above

hoping in are we the So, we seeing some – improvements quarter. to right now, are fourth

Michael Cusimano

to the think refined maybe forward? that and pricing product like business. on impacting I Okay. Great. And mostly any transmix how guess going then it’s comment the margins about on

David Michels

you you asking understand. ask? Are refined products, – don’t are or demand impacting We about you prices what about asking on did retail

Michael Cusimano

variability that refined product from prices? maybe your volumes that margin in about fluctuate Specifically with transmix you commodity any receive

Dax Sanders

adjustment Clearly, for we Well, inventory back a – low through comp where closing it low from we say at move it I But now, perspective. higher comp up. And write works September, Yes. adjustment, would than we as we had can’t – cycle point, they are of is it way price are, and to that higher with can we margin. we prices, what we marked can’t right prices LOCOM – a a where through works. David’s the we as had took

expect don’t would speaking, specific are number a that as on they but would through generally that, a and you inventory have that, I that be cycles high, So, positive.

Michael Cusimano

Appreciate it. all That’s Alright. was it. me. Got for That helpful.

Operator

Tonet Jeremy from is with JPMorgan. question Next

open. is line Your

Jeremy Tonet

me here for in squeezing back Thanks real quick. Hi.

gas Matterhorn, materialize at year Just think want the – what point? are do and might what that to that for on see, cadence Permian you infrastructure, after your what incremental type thoughts production need

Tom Martin

– it Is incremental Permian Permian, takeaway? again

Jeremy Tonet

Yes.

Tom Martin

than in mean I the customers but decade, on So, would I their that. later say very fluid. our think fundamentals based of desires say it’s I may destination some sooner the think

think at but ‘XX ‘XX, later. even I little the bit sometime earliest, So, fundamentals I may think say potentially a the between

Jeremy Tonet

range of like to thinking make to kind sure it, bookending ‘XX of ‘XX, a just what that you it are about understand I So correct? is

Tom Martin

Yes.

You got it.

Steve Kean

a big haul. for new That’s long

Tom Martin

Greenfield I mean still I but Yes. for big expansions be a think supported project. can along way the

think of timeline. I kind the that’s

Jeremy Tonet

Got marketplace thought Elba, have there. equity, right last see you might interest like see other it. obviously, just but rates Do And depress how interest some the the moving up, private price bids one you that market I quite real Just quick. nice in price a great tag now? got there. tag you wondering from

get to trying feeling market just transact. So, a the on your and desire to

Steve Kean

we infrastructure price we just helped I around happy to But to there. the price, Yes. some the from unique rates able with ability interest but maintain think around the assets. investors upside also and think assets, capitalize the Look, we interesting the of valuations not Elba a that historically for opportunity have the had in on I drive were base are

see continue those longer the the from for interest to we so little midstream into a rising bit infrastructure about space for particularly And terminal think assets probably the and space. are term returns that our across eating opportunities value people the investors, as

Jeremy Tonet

I you. That’s very helpful. will leave there. it Thank

Operator

of End further showing am this Q&A I time. no And questions at

Rich Kinder

for the And fans, Okay. Well, Series. League hours it’s thank American you you couple only of a to very Championship baseball much.

from New For Good people York. luck. all you of

Operator

This for call. your Thank today’s participation. concludes you

You time. may disconnect at this

Kinder Morgan (KMI) 20 Oct 222022 Q3 Earnings call transcript