Earnings call transcript Q1 2023

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Operator

Welcome to the Quarterly Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Today’s call is being recorded.

If you have any objections, you may disconnect at this time.

I’ll now turn the call over to Mr. of Chairman Executive Kinder, Kinder Morgan. Rich

Rich Kinder

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

as of forward-looking the well may statements. non-GAAP assumptions, cause earnings material you latest described Before measures making from review that to to expectations, results encourage statements and any our and forward-looking disclosures materially full release strongly at differ filings use SEC for investment forth read such actual on financial our factors set the those with decisions, our of and we risk anticipated end as important in

will there and a off through Steve, size, our while David details, today, start moving of is good take Now XXXX we to parts. but are lots you always company believe a Kim the in

a will we that program, and our I well with think KMI, for expenditure solid positioning XXXX year and capital ourselves for beyond. are XXXX be

Board top one the transparency utilizing benefit our basis. level, the growing by repurchasing the returns which produce an strong of opportunistic healthy we and remain excess in and way, XXX dividend, balance to cost of our and paying terms yield, capital, on maintaining committed our capital of cash is to a of the shares flow a in and XX S&P by that projects management our shareholders strong both funding At sheet, well in

and facilities, cleaner renewable in are our diesel, we through investments natural the addition, in transition and carbon gas, capture sequestration In to energy. participating renewable

to will with the decades by conclude view, energy our fuels majority experts energy me Let worldwide, needs great of that for fossil come. planet's that of the supply consistent most reiterating

the in XX% Outlook energy new world I of “the the example, events supply Energy week, our that will gas current fuels given demand recent XXXX. the this For predicts And Assistant and of fossil state needs investment”. world's IEA just that of absolutely Secretary World Energy quote, stated

While will coming the as substantially. an rapid investors deflates the fossil over argument especially value. increase the growth Thus will whole in continued energy gas who a they demand years, In fuels assets important long-term produce our because that expect outlook our role for also segment transition. use playing judgment, we the driving of my those this not the avoid natural believe will renewables with do experience energy of coming

Steve. I'll And it over with that, to turn

Steve Kean

All right. and Thanks, will Kim of the your Rich. I'll questions. David substance our then details business, make a about and then cover we'll few take performance, key our and points and

The overview is this.

Our balance sheet strong. is

to natural returns, continues show budget this backlog largest both. investment up strength. of on have more our those. share couple year and is business, sheet gas opportunities of and balance Our growing and incremental opportunistic available built repurchases to details our for capacity we enable with of at A attractive done each projects We

in with investments aggregate, multiple EBITDA on of slate we Investor there year, relative how returns a and here with the to a from our to have chain every well-above current challenging original currently supply deliver Day, the assumptions. perform basis, are very of attractive capital. time the Second, in expect well. a we starting even you to an our And we attractive projects period, backlog performed projects showing been but XXXX those cost have XXXX returns. very we It's at standpoint, At challenge

multiple had of Our an X.Xx. aggregate $X.X up current million $XXX and is billion, backlog EBITDA quarter-to-quarter

business decreases the at renewals are in as natural more business the tightens XXXX increases, the the showed year the gas network renewals, increasing on showing supply how and budget demand. in base Third, beginning we of our with our especially

backlog So balance good in our a base signs business. growing and a sheet, strong

backdrop points performance. the other broad about few macro underpinning A this

needed becoming to is reliable in The goes very it's be infrastructure to as long and backstop affordable a clear and human First, as transportation natural storage time use. for come to Rich gas mentioned, its and on current as time advance renewables. development, world to it going needs assets and needs energy hydrocarbon

well the of energy Second, our positioned forms assets are also the future. for

You terminals liquid feedstocks projects renewable fuels renewable products that and and in our with businesses. can the -- see products

difficulty transportation infrastructure country. Third, the and growing increasing the tightens our parts this and grid siting effect volatility. storage over Compounding network gas more many with new in valuable increasing is existing demand the of natural is as time, of

value the gas our we mild unremarkable in the on otherwise was in had strong was West, first network display business performance a where and the for The of what winter. except and quarter,

on for country of Gulf it the new other in our Finally, hand, build the is where well possible primarily. network infrastructure, the positioned parts those expansion to Coast is

well is growth natural of Texas and XX% is point the network storage Louisiana, gas in growth where over and place. demand to natural projects backlog. take in our well expected transportation in by gas demonstrated positioned gas This Our is

With Kim. that overview, I'll turn it over to

Kim Dang

Thanks, Steve. Okay.

natural start unit as usual. the let's gas business So with

to result EPNG volumes transport increased service in low a colder by power the outage, decreased to Mexico in XX% XXXX. Line a of the increase prices. and XXXX to volume was of quarter Here, versus deliveries That East. about reduced and attributable left, first driven by the the mid-February, return HDDs was were export for X% LNG as Midwest coal reduced top retirement increases the quarter plants Texas, in gas by to and The Freeport that in offset weather

of up volumes. volumes, and Eagle by XX% increase quarter quarter gathering compared a first the XX% were and in gas that in XXXX, increase the XX% Haynesville driven in was to volumes a Natural Ford

products versus variability was components. volumes in flat were quarter of first with segment, Sequentially, In the line total EIA, although some there's gathering up roughly quarter products pipeline XXXX the refined were our for X%. the volumes that in

was fuel but we down the and fuels Bakken. XX% of volumes in volumes driven Road quarter and coming locational lower international HH that X%. a increased. travel were were up first Crude jet quarter by Sequentially, volumes versus basis of condensate the X% increase in out unfavorable were result of X%, down differentials a as saw as XXXX the

liquids capacity business our at remains segment, high In lease our XX%. Terminals

tanks out of service XX% Excluding leased. for approximately our capacity required is inspection, of

the XXX% market and From Terminal rates Jones some to continues a the markets. and York QX nice liquids Harbor, XX% been have the leased there's is effectively Channel, In strengthen. since firmed up, our in Houston market perspective, QX New leased our major of had improvements Act XXXX. throughput we're Carteret the In strongest effectively and Ship

were side, and pet to increased on was and volumes coke, X%, up overall COX bulk On due the were the steel commodity. On the to volumes, depending about segment, COX prices coal, that In down, X%. volumes the down volumes flat grain. were in

which both volume, the XX field two-thirds which at an down had February, production, The and completely full NGL field January, our net SACROC, is oil during impacted oil took our accounts to we and it days and for in volumes. roughly late to up for days to was outage ramp seven early quarter, respect With largest of our production. another then

if Despite comparing the estimate first the to that It's -- be of to we hard to been results. to as rough have million net first of comparing been X% to is didn't overall production for down being segment first but our or the and These this quarter would still more overall oil our have year. net happened have NGL quarter up budget very what X%, added have better the volumes on up the volume XXXX $XX being outage, to quarter would volumes have we expect recreate opposed X% XXXX down or versus oil would would XX%. roughly outage,

I'll to it David that, turn with over And Michels.

David Michels

Okay. Kim. Thank you,

first per from per which XXXX, dividend quarter with we're declaring the XXXX the for start I'll of X% a a share few So dividend. $X.XX annualized, of is highlights. share, $X.XXXX up

We billion ended capacity with quarter times. X.X good around of which drawn over us the and with debt We hand adjusted leverage $X revolver XXXX capacity. on $XXX target of ended a of cash amount our X.X our of leaves under quarter with the times, EBITDA nothing million to net first on of

majority quarter, at million we needs shares rates. per interest the bonds share, year at of favorable X.X additional for the of an average rest and $X.X the entered the our We addresses during short-term also repurchased billion funding We issued $XX.XX of which into locks. of price rate

interest exposure than our through us We rate rate budget. have rate eliminated and an helps from interest pressure floating the protect rate our on now locks about short-term better further XXXX. slightly half average of That debt have

for sheet create Our our liquidity balance to continue strong, shareholders and we are value in multiple ways. and

lot a budget full still guidance year are It's year, and could the we For XXXX early in change. our the in place. leaving

as We the are below prices, to as curves forward facing well both in from pressure realized budgeted as our prices are commodity prices. date

pressure performance, by our natural being offset gas business However, units. terminals better-than-expected our substantially forecast shows operational particularly that and in

on going to our disclosure non-GAAP this to more is aligned notice guidance, updated. you has particularly disclosure financial recent quarterly disclosure. will with updated the Before related that performance, We believe been SEC

Now we quarter from is the down XXXX. million revenue of performance, on first $XXX $X.X generated to the quarterly of which billion,

$XXX down sales of to cost million Our billion. $X.X was

unit performance, business business were items We of compared were up expected, the first million, As COX was from Adjusted X% earnings, and income quarter our last Natural in segments products our from Terminals up quarter to up of interest the were Gas and down down. total, On generated million, segments was year. the XXXX. net quarter our certain and our of first excludes versus expense $XXX and XXXX. X% first XXXX X% of segments up $XXX which

coming at Our margin up Texas Express Pipeline. favorable with sales on intrastate Natural our Gas rates largest our and system drivers was recontracting greater the on segment Midcontinent from

prices, Our down quarter our mostly to first commodity XXXX favorable was transmix benefited which due Product Pipeline businesses. segment

volume, was escalations due in segment volumes Terminals costs. rate NGL lower higher and our and COX due and volume bulk to up stronger was and pipeline segment Our businesses, lower down to oil integrity prices terminals mainly our

versus of expenses We the higher capital for to have XXXX. than slightly year. last the be And sustaining we're interest first for And in budget sustaining last quarter, forecasting budgeted full year. only the quarter year. XXXX higher capital additionally, currently, and higher to first higher had G&A we sustaining versus capital versus Our were

some spend also quarter. had we the accelerated year also over Well, being into due some first last is to of quarter -- variance the but quarter

our quarter, EBITDA So billion year. was up adjusted the last X% for from $X.XXX

from down last was our and DCF X% year, $X.XX, down share DCF was Our per billion, $X.XXX from last year. X%

XXXX. and Moving on balance times ended debt, with it quarter billion ratio $XX.XXX sheet. net was X.X same year-end at of our is as the We to our first the

in approximately million in billion the that stock the contributions approximately We operations. change. and flow $XXX Our you that over of and dividends. debt. and sustaining paid reconciliation that million net spent out million growth includes total $X.XXX well high-level repurchases. is capital We from quarter. capital, generated a we gets cash $XX joint close debt spent And to as million ventures, both our $XX on decreased And here of as change million for We net $XXX to $XXX

Finally, first since winter our are main is business, utilization. expected we rates to and I'd research higher EBITDA of like our on our on to EPS, seasonality breakdown generate strong pipeline distributed. due in our which fourth natural capacity of we driver remind annual quarters DCF. yearly that resulting metrics, results and greater quarterly The in that gas and our evenly a that margin provide demand our typically And not several analysts budget do

Additionally, tax we payments. to greater quarter usually in due have expenses second estimated -- the we have

billion disclosed the for expected for DCF example, that seasonality. the DCF budgeted reflecting second billion, quarter approximately quarter that first our while So was we $X.X $X.X for approximately budgeted our was

point, for due capital quarter actual lower at Our budget, guidance. a number that DCF And to the line there to appear that a capital billion, this be analysts our spending. -- estimates of out of this $X.XXX are partially with little accelerated quarterly was first than sustaining

we you as necessary. So encourage to guidance revisit that

to With that, it back Steve. I'll turn

Steve Kean

from far, so good make it I'll the the just open addition up them their team table and that got around we'll on to businesses. portion try And out people in now. you've the have heard Ted, to you we've questions you point management opportunity an from sure get about hear a we'll our of questions here to Okay. to

open it Ted, let's So up.

Operator

is queue Reynolds question Brian with First Instructions] in UBS. [Operator the from

line Your open. is

Brian Reynolds

start on Hi, guidance. good to off everyone. Maybe the afternoon, EBITDA

is which You crude base perhaps the about nat offset quarter, slightly slightly deck business gas gas lower and outperforming talked product and the terminals and the by volumes. during nat

as puts and then January, guess, provide while base volumes some the offset? deck relative PHP delay takes and original go-forward partially perhaps I to the outperforms the to perhaps So forward-looking product basis on a January on and a guide Thanks. commodity relative basis guide business the nat could you in gas

David Michels

Yes.

that's performance and higher our summary that weakness talked our also and the think line that, coming with bit commodity the some sales our had we system budgeted. commodity seeing natural operational gas pressuring that and is the in -- in bottom gas in across a we're far the a offset offset rate are so and in what price the of offsetting business, outperformance than poles our I values business of intra-states is you escalations particularly -- are little in natural those commodity capacity business, I higher in lot and is business, price, higher terminals, that year think prices largely natural so being about COX business for items that largely business gas

Brian Reynolds

Great. months, and then pushed you backlog TGP year, could East pressure follow-up the next? into PHP a Thanks. a on as projects a some get there Tennessee coming Valley and Is maybe that into projects XXX CapEx or growth Thanks. this CapEx, And any have few of on upward apparently. Authority delayed the

Steve Kean

making the emerged CapEx, the Yes. our seeing discretionary new think don't not expenditures year, we're the there's pressure due uptick I year. but -- in of this upward capital to a have material but to been investments capital that overall we're some Look, slight largely for there's what the expenditures is year, that's on -- course over opportunities Really it's that

this seeing inflation XXXX. course started since of up managing we crop look, been the we've over And

up examine We to continue we're assumptions. remarks, basis, the -- we're date. times in to We're on cetera. monitoring et I projects, various And are expecting our to we're do the work. well I to that sanction new making sure a and lead do capital and overall, my think when cost for our key continue that like schedule putting we on And to always and very said routine that estimates components,

Brian Reynolds

it. Appreciate Have great it evening. Great. rest I'll leave a there. of the

Operator

queue the from with in is Tonet question Next Jeremy JPMorgan.

Your line is open.

Jeremy Tonet

good Hi, afternoon.

Steve Kean

Good afternoon.

Jeremy Tonet

color follow-up a quarter wanted performance better last that Texas doing as of to on the renewals expected. point, durability opportunities budget or contract of operational Just just was that to bit it to a noted versus that I Just long-term in are kind relates there trends. better-than-expected marketing the drivers interstate based? function get guess, the than Is at of trying the that more rates, spread on and those

Steve Kean

it's across Yes, business we're it's well. do business on doing, I any mean, short-term board. really kind new It's getting and you there? other have of Sital the It's rates that on contract we're for renewals. on that comments as

Sital Mody

a I -- also piece. mean big improve really storage values I and

Jeremy Tonet

bit PHP year. seen Natural then it, Waha little would of across as kind Got that's the a we've the would and here, I helpful just shifting very persist whole. a And to that Permian gas egress, volatility there. in imagine pushed with off prices being

for in guess, the type pipe needed be of that in participate Permian could project. and Kinder I when thoughts, your wondering could egress next of Just the

Just wondering on gas thoughts their Permian updated egress an side? natural

Steve Kean

front of page Waha now has gas result, and Yes. of to a you're kind of there's but continued combination production. it's of been growth of of pressure some course, Also, there's some in sort right, a sort media. page Well, thing, back been faced and maintenance, which mainstream be daily used just as

business. there's there's in growth But underlying that, the the

-- there. And that quick a clearly, capability so out we expansion basis. of pretty additional provides on PHP we need

doing and of are bit addition out small but fast a just largely a that seeing capacity compression there. pipe was with delay, we're We that tiny

needed, term long-haul any to making some but on believe continue the XX--. updates evaluate expansion, right in boards not that. or it to egress, We now, commitments project of customers. on we're continue the the be there pipe probably we terms longer with We'll to real are In Sital talk but will

Sital Mody

XXXX. XXXX,

Steve Kean

timeframe. XXXX, XXXX

So we'll continue on to work it.

Jeremy Tonet

XXXX, construction? when XXXX a or in new pipe start would service

Steve Kean

service. In

Jeremy Tonet

Thank you. helpful. That's very

Operator

is from queue in Bean Pickering, question Tudor, next with The the Colton Holt.

open. is line Your

Colton Bean

Good November it there afternoon. looks to versus PHP, two-month Xst. expectations one like Maybe delay on sticking the initial just

And those So, to driving service? in the chain do detail are which we any in supply to on hand, see hit shift? improvement now is need are still the some then components first, or December

Steve Kean

in Well, I hand. about know don't

is -- have it's the provider have identified. and this They're getting upstream of And electrical So, our of that been providers they certain compression equipment. but it's they really, it, delayed.

and chain And done. so delay. we're a that's tangled what is little to bit that's get why reflected still we the -- a We're supply going thing just seeing It's there. this still

Colton Bean

Okay.

before So based seeing still on everything seems you're sometime it like today, year-end?

Steve Kean

Yes. Yes. Yes.

Colton Bean

XXXX. comment rate interest or mentioned for see through XXXX do David, then, for time in for in end you I that and how floating rates roughly exposure half to in you stands where And generally, next plays contend guess you being? market Great. locking year locking out the year can more on the have the

David Michels

Yeah, taken it's we've something is a good question. at. a It look

for year floating some first for it rates locked haven't in interest We to we low. really, exposure, in yet. -- started really our locking rates rate interest anything of address were was when When next

So started for this doing some in doing there forecasted because it it. there the downside volatility very We little that we was year. year was

continue off to next on of we weigh And environment take what too looks eye downside that the on it. for us Still in so to potential to pressure the some early keep year, table. but wanted an we'll like

Kim Dang

at And expire? the slots

David Michels

think the some do Kim mature good end of year. $X.X swaps we I have it's portfolio our we of some the of the by that have Kim. reminded this yeah, billion a -- year me that's point, And about, do swaps

future in swaps. also we're a about going into to we're that component take that's locking So thinking when account

Operator

with in question Michael the Next from queue Fargo. Blum Wells is

open. is line Your

Michael Blum

I just come you wonder, remind economics projects? quite RNG your this impacts bit down about They've the ask Thanks. us Hi, if to prices. wanted can a how DX recently. RIN I of everyone.

Steve Kean

Ashley? Anthony

Anthony Ashley

Yeah, Yeah. Michael, hi.

it So EPA of I clearly, were were, of They then into think, that of short-term seen, too the and phenomenon market a with proposed excess came I resulted what realizes we've RVO bit last which and proposal market out the targets, a -- out supply. November. so think, the is out kind with came low through

current no in. liquidity there's prices today, The really

basis think in So necessarily any there's numbers. don't I those

recover half of a expect for to in in comes when there's and June out the final we targets, prices second increase ruling think it fully substantial I year. the EPA to evidence its those of the RIN

Steve Kean

maybe seller a Anthony. points, RINs. just forced of two We're And DX not other

-- to not or this market but come for we're to point the look don't this under sure other this good. pricing and returns we do scenarios funding So that And test this the or to out sector projects stress make forced different we is made still look there's project the into still in then investments returns financing point. our good RINs reasons other and at we routinely, we've

Michael Blum

My second that. Okay. question, Thanks I about to want the for all balance sheet. talk

long-term reduce that target get will should budget So would go there? the over reduce X.X. your X.X leverage Thanks. back this if time, that what And that expect your X.X, to we Any is is X.X. is times does, thoughts for year over or that leverage target to But time? your it level you

David Michels

question, it's Yeah, good Michael. a

around changing don't an our of So no, target anticipation we have leverage of X.X times. long-term

that below we advantage out capacity take of, think see have should that's have to or some those to we opportunities. We any cushion, operating headwinds, there we of favorable we can opportunities advantage prudent. could of It give utilize us take it, some should been

I that, have and we we like we right table do utilization that But see think the say be particular ones some think those to of what on available with can capacity, now. like. disciplined I having we'd our of us. any that because think have just you don't I look to would cushion we -- wait would

Michael Blum

Thank you.

Operator

next The in Dingmann from is queue Securities. Neal the question with Truist

is open. Your line

Neal Dingmann

you obviously, reflects guys. heavy is natural I'm out the storage natural storage. I'm spread contango gas Afternoon, opportunities My pretty question the there, time wondering how view just now. wondering, gas given right all

spread opportunities of So a a And you capture? of lot how curious, growth around there's much I'm just that? was wondering I if maybe could possibly

Steve Kean

curve to a a supply demand the So flipped from moving and direction. We curve. we've Yeah, backward Contango Neal, a in see positive fundamentals dated

take And the we're at so just seeing a when across you back network. volatility storage, step and look

build what late the at of new value I build, north new probably in and the we get storage think $X terms is mark. We've that. right, of to of renewing mark been can as

think we renewals – move longer-term I to forward, so we continue as higher-priced renewals. And see well as as

Neal Dingmann

it. Got

you on Okay. that seeing heard or that And you lastly, address just horizon then market you all RNG, just on from It other opportunities be haven't maybe as overall. just just might could much again, just just recently that seems on the there? wondering

Steve Kean

Anthony?

Anthony Ashley

Yeah.

today the we we of that we've is the I a acquired three think think has couple on building for are It focus of I acquisitions place front, out the become of where projects frothy have years. on is our us. last that in it been more done an market where over a with we M&A effectively bit little

focus organic has we the there. so growth and building And have our been out projects future

Neal Dingmann

you. Very good. Thank

Operator

Jean from is Salisbury with question Bernstein. next The Ann

Your is open. line

Jean Ann Salisbury

big the the Good about backlog better current Can X.X, into or long than it for brownfield your it ticket read Does at a much raising talk backlog, multiple generally, of and the obviously, too couple to you with a projects, a average. of and is items the kind reflect of that shouldn't term? Hi. bar afternoon. I specific historical expectation current

Steve Kean

turns in the and we with you're very off flows, to on Yeah. to before long-term project do It's that projects flows a if which be bigger rate the contracts, not multiple. bar. difference talked about We've cash consistent there's hurdle had that, of out that starting of seeing a really then a kind and why XX% a raising secure about that gets of a we've we point, of you flex cash

multiple return, be and of who they done The investments bigger competing there long-haul are in tend where others EBITDA. for a that, a projects good environment but with and higher an the bigger a end of are we bit to up

about Alba period of this we're PHP, an rate our had in talking as place. think of GCX, we've where time example, think hurdle that I over So

been there when so guys showing And have we've you on projects, investor those Xx update at do of kind our multiples historically been the in conference. of the we more our mix when annual EBITDA

And existing existing very these of lot build-offs attractive network are – projects of now at high-return the returns. a

so attractive. a lower EBITDA a The And multiple is more multiple ends lot the as up a result. lot being

So function rate, not haul, function long the a of hurdle of a short it. call and haul more of composition

Jean Ann Salisbury

Great. Yuri, have That makes through. that's pipelines about, of of insurance, you there been And guys to looks Storm and sense. in like Winter then after as of flowing willingness form talked kind should gas as and kind been a storage pay Texas more it for

view these for I I guess Morgan gas suppose about competing Texas pipeline does through, for my The if been it's it plants insurance that negative capacity. positive a talk go capacity? way, Kinder or your sort as building energy of this storage question a in with program. and of there's some for you insurance spare power out Would is, all thing about insurance

Steve Kean

It with a Not would really customer be it. it. competing for

here. in in into the is, other gas-fired is, public improve to it in whether so, grid, I'll the on from gas policy, or refrain the reliability they But break And that. look, thing state if of Texas electric capacity we'll good Texas. that's good commenting two One companies a and its build for new not

continue who build footprint already to have and happening building our debate things them, could ought and a there those at building, you the I long people to or least debate along to build to a on build in the whether you incent Austin them, their long just having state simply is have opposed them guess. as been let But

Jean Ann Salisbury

Okay. Thank you. That’s for all me.

Operator

from Citi. Spiro Next with Dounis question is

open. is line Your

Spiro Dounis

Afternoon, you. first for operator. Kim, one Thanks, guys.

demand and you hasn't point, to the in system of think play a lower positive yet? lot some demand think from if that mentioned maybe attracting back natural seen and had of snap that this or at of a gas as I lot out think you maybe reacted Curious there's in prices power latent capacity you lower customers. elasticity prices industrial factor we've back sort do a

Kim Dang

terms In demand demand, the XX% quarter first of I'd the the well, power the in of we power up XXXX. say saw was versus quarter first

power winner all we So have in didn't center the But we really. the way increases of country nice a saw the demand. in East

And that power what have had the had higher. more saw could we been we plants therefore, think demand higher we than gas that power would during the so, have those winter, I moved HDDs and been to

Spiro Dounis

it. Got

helpful. That's Okay.

on also the just XXXX, if could, look question, out trajectory here. which And as on prices. all guess to coming, prices capacity natural be I to thinking should a And XXXX nat maybe you lot curious we your supportive. get gas LNG of I see of gas beyond Second from

react now maybe close your I and given see is an what of just But prices you're And $X? to if think prices between then, and here fall kind there how do further. curious expectation customers, you below are producers down could we push that supply hearing guys just to maybe you'd expect

Kim Dang

Sure.

associated much are in you discussions would on think, said, basins, that XXXX there there. say. We've of breakeven comes a but some to of the as pretty So lot with obviously, demand that in improve. with the LNG it the expect had producers those gas, impact dry respect don't low, as gas There's I is the what could again, we and go prices lower, the XXXX always potential our

we've do our has As off budget, to to budget. and that the in part X% the budget of our the of Haynesville Eagle small of as to larger gathering are of reason prices within off talked producers with And outlook volumes of medium-sized, our look in with from seen we're for the year, X% the list delay our some project. has our a that pullback we've and we're and our the really Ford, produce on we nothing do to the at the producers continuing

So of that's seeing. what we're kind

Spiro Dounis

Appreciate guys. had. all I all color. Got the it. That's Thanks

Operator

Seaport Securities. Sibal the is with And next Sunil from Global question

line Your is open.

Sunil Sibal

Yes. Good everybody. afternoon Hi.

fact flush a the Waha few up wanted EPNG that seems It just volatility at have So prices, long-haul the in look little months it seems in Permian gas to the you to last the capacity restored. when despite pipeline been has natural gone I over outage bit. like

conversations building of a you the just your major What the nature sticking before a clear to of the regard if So project are points talk there? customers bit about little with capacity with big could new ahead? go kind could

Steve Kean

basis So to what Waha, for this yes, at as there's that you long-term with there -- going to look we all clearly we're taking is take is the on, be -- going -- out going when solved needs to is I mean, look LNG to be demand look, what's really coming commercialization. the differential take

and about facility the third been customers market we discussions need talking the basin, have ultimately having next. that bridge sides as gets FID both of gap. down side, with from pipe to which gets you to comes the perspective. the as supply with And and commercializing where I on And we've return from pointed But on out been well the LNG side it as our market side a timing know, think the rate ultimately, depends trying really, an of market appropriate

Sunil Sibal

for it. Got Thanks that.

Operator

no this And showing time, at further questions. I'm

Rich Kinder

joining you good have thank us Well, today, a much and Okay. very evening. for

Operator

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

this time. You may disconnect at

Kinder Morgan (KMI) 19 Apr 232023 Q1 Earnings call transcript