KMI - Earnings call 3 2023 | Kinder Morgan, Inc.

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Operator

Thank you for standing by, and welcome to the quarterly earnings conference call. [Operator Instructions] Today's conference is being recorded. [Operator Instructions] It is now my pleasure to turn the conference over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan. Sir, you may begin.

Richard Kinder

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

my at call, we statements of the risk the quarter biggest actual results that read cause our remarks our measures that on forward-looking and second Before materially and talked natural release about I of of as the at to set future KMI. attributable of to as described making SEC differ to those statements. In expectations anticipated beginning may investor from future full review filings end us you important forth LNG. any bullish our earnings why and our and growth strongly gas encourage is material The assumptions, that demand investment with about makes financial in for use demand decisions, of for non-GAAP forward-looking well factors disclosures in portion the latest such

in LNG Bcf grow a as that in that XX% exports, on to XX.X supply, regarding in Bcf U.S. by XX.X day estimates export global XXXX a almost day demand at this follow XXXX XX.X the to XXXX from latest share will it Global reviewing Commodity projects estimates IEA a of S&P will facilities. So me serve the a XX% in and let feed [XXXX]. LNG future demand gas XXXX. up gas grow speed LNG U.S. day XXXX to call (sic) to country's Insights and Bcf estimates LNG for

of is construction. which by of been most LNG FID'd, that of growth, course, numbers incredible demonstrate are new which currently export All facilities driven, had these under

meet this Kinder-Morgan? infrastructure just pipelines also does those the demand, header header from increased need and segment country increased to and Midstream terminals. to terminals, feed pipeline is not To affect demand export Energy the and this the going upstream but gas in the how Now specifically pipelines systems expansion significant additional

portion will capacity believe proximity LNG we Southeast Haynesville confirming Texas, the production all to export in because takeaway will problem from be the facilities. multiple supply able solve basins will its grow nitrogen Access Louisiana this also facilities these to to required. growth and important of LNG demand, to volumes of we basins fulfill is the not multiple help additional be While excess and

players particularly there of much think little extensive currently U.S. opportunity than turn excellent over are and so in where will the position a half network Kinder our is all because occur. And Morgan, While midstream Louisiana, to other advantage tremendous additional gas, of is less the pipeline of and of in we an this that, feed also to take demand LNG I'll it team. Kim transporting will of footprint the Texas benefit, which with

Kimberly Dang

it turn few Thanks, and We to you details. then and give Okay. quarter overall solid more make to a going to over I'll points, a financially. Rich. Tom I'm David had

of That continue at a We in year-to-date average attractive repurchases We $XX.X. to backlog. million shares opportunities share our brings to of at of $XX to million find repurchased price to an $XXX $XX.XX. very add price us

we XX%. from anticipated results budget. largely Overall, and increases by X%, well products our segments the CapEx, Financially, gas our because and of a in in particularly strong driven of quarter, up assets with increased up were our Products natural had contributions sustaining flat portfolio interest terminals. performed expense which

was guidance to expectations our we lower our gave all last as guidance, Versus last which we slightly below quarter, ETV versus the netting our place the attributed benefit example, you commodity can we last the offset other moving quarter. but that have we what year in pieces, in seen delays the same some budget, you full by all year with for the same that to be projects, For remain for commodity quarter, communicated prices. largely leave discussed from prices, our improved us approximately

X.Xx. We to additions. see into in than natural at beyond more The $X.X that gas. see the opportunities stands able now the good backlog, backlog And projects -- offset with to billion backlog an the opportunities multiple add with continue new we're to average to went and more especially of we service

growth LNG As Rich upstream that the competitively said, by are biggest secure supply. many is to is in demand expected driver where diverse and further more interested priced to exporters more of XX%, LNG, and than grow capacity

this also opportunities. as provide our in new conversions Power and demand will details Tom demand well plants and in seeing to on Mexico have future and natural exports coal minute. peaker provides incremental from gas, benefits from existing as more a power We're to and business opportunity that Texas

on out years for talking projects. diesel are West additional the maintain strategy see solid many a about according laid also renewable actively we One, delivering and customers the We opportunities to ago. to We're Coast sheet. balance

quarter quarter continuing and almost return billion to X.Xx billion the continue we cushion years versus of X XXXX, some the main capital XX% well-covered a over cap. With share X.Xx, long-term at target. is backlog, which three, to shareholders turn it Tom. that we opportunistic high-return internally that, Two, the to returned our our added Since to find the in good our fund. dividend and last market ended to our shareholders about we We've through repurchase. over of I'll projects And $X.X $XX.X prospects. to second invest We

Thomas Martin

Thanks, Kim.

volumes Mexico. to by the increased gas third increased dekatherms million and versus increased These about with demand. decreased day LNG increases the by for driven by service, Transport power return demand, quarter Line industrial natural X% partially X.X per increased demand of gas business unit. which quarter XXXX, starting were XXXX, So to is EP&G, offset exports

which the Bakken XX%, were compared volumes were volumes, in Ford quarter by 'XX, XX% up to were the were Haynesville up of quarter which and volumes gathering Eagle up gas natural X%. third Our XX%, up volumes, driven

plan, XX%, about sale. project X% to but below year, an expect by asset up and the be For our driven delays we gathering primarily nicely, egress volumes

while that the reinforce our gas the volumes were and natural Gasoline Products you day, this statistics and versus million XX volumes transmission X%, of day August pipelines volumes Diesel continue particularly renewable gas quarter as volumes monthly by 'XX. assets storage from California refined and in X.XX demand demand XX.X July highest XX of last in decatherms conventional dekatherms in diesel our other see were than displacing slightly overall We for robust. transported network diesel was These be the be quarter. notable this year. and support critical all-time X% our respectively. segment, of pipeline. methods role days lower in gathering Power day network of the XX were up volumes, initially primarily per X.XX on records, both up diesel, demand total down third the and per continue quarter. markets quarter million comparable power August, As volumes record the set can growth the to pipeline for demand products quarter to play power a sector. In growing peak were new million occurred

are projects true volumes take-or-pay does earlier us conventional we this the in year underpinned for reduction contracts. picture largely service the not RD in placed as reflect However, with diesel Hub economic the

our paid most revenue So not we if the get flow. even do of volumes

year versus considerably That XX,XXX QX a volumes jet increased quarter a segment, volumes renewable by in our Terminals said, condensate RD up online, day pipelines up volumes XX%. quarter at and the to X% our high liquids been 'XX. XXX and third have this hubs of quarter the diesel Ford Bakken on volumes. In Eagle ramping were in since 'XX, came lease driven capacity Overall day QX. business versus up X% the third in from fuel Crude for our quarter remains higher

for approximately Harbor increases Excluding continue third Houston XX% of and of in New quarter Utilization at the to strengthened York 'XX, required those tanks see in our inspections, the is lease. hubs as at we our improve. capacity rate quarter nice Channel and service markets key versus fundamentals Ship out

Act exercise. leased Jones XX% or likely options assuming were Our through tankers XXXX,

quarter the tonnage, offset pet lower partially from the overall ash. On soda X% primarily and side, down third in coke bulk grain metals volumes and in increases by coal, were 'XX,

minimal have our on financial volumes results. impact Grain

from So COX by our oil for NGLs, third excluding grain, quarter. escalations but our in the lower X%. benefited quarter. The from last X% year, about this production rate on plan the overall above decreased COX versus 'XX. book quarter segment experienced results third volumes Overall Financial were production prices down was and and quarter volumes the oil

SACROC. of turn as volumes These to better-than-expected I'll well it to 'XX the year, exceed our plan post the plan, February outage volumes price the offset we've we at from oil weakness some Michels. net to largely performance that, relative experienced. With David volume strong that helped as projects the expect favorable over due to For

David Michels

Thanks, right. Tom. All

So for we're is dividend. $X.XX $X.XXXX of of per per the share, dividend or quarter last which declaring year's third up share a X% from annualized QX,

of at X.Xx, million $XX.XX Kim a good share capacity share for year slightly Meanwhile, bringing natural of into an repurchases during terminals budget target than of see Tim ended as we repurchase with us unbudgeted full while, and businesses. on both with shares our price continued per of opportunistic performance, get mentioned, to we program, quarterly the performance X.Xx, value adjusted I explained third We the and be debt gas can average commodity million $XXX our below repurchases forecasting leaves of EBITDA, net Before despite the more We've our mentioned, quarter all good creating prices. EBITDA highlights. continue under our better-than-budgeted few to very to XX.X that share, in are lower-than-budgeted as our with by year. And total shareholders. year-to-date to be leverage around DCF which

of to of in is of which is to to which quarterly that year. revenues $X.X down $X.X Cost the $X.X third the We decline year down also from large generated Now billion, prices on commodity in billion, quarter the billion sales XXXX, is was due from and this billion. $X.X performance. down last

by offsetting recall, into not price. and positions both pipeline Texas our entered it an and impacted in that transportation purchase gas but while generally service, leaves our exposed margin sales, and As price results revenue sales our cost and we effective fluctuations intrastate to you meanwhile, natural system, is in will take-or-pay

driven attributable was as last million, expected, floating $XXX the our from to which Interest We rate third we generated net impacted KMI versus expense swaps. higher higher short-term down by $X.XX of the rates, quarter XXXX of income year.

per share $X.XX, from is which $X.XX was earnings 'XX. down Our

was flat quarter X% of down year. compared 'XX, earnings was million, our last and $XXX adjusted the with adjusted Our to EPS third

due XXXX Excluding have or repurchase count of year. X% $XX And our to from been the efforts. share last the impact to our million favorable interest down we would third versus share expense, was quarter

On performance The our terminals our natural which in and improvements product contributions but all gas COX natural performance, were segments, was favorable were gas by segment. greater segment partially offset those business were offset our recontracting and pipeline from as segment impacts sales intrastate by driven system, rates up, our at favorable margin on on unfavorable Texas our contributions as access. our well South Express EP&G Mid-Continent from on Texas partially by lower recontracting

in Our impacts second as escalations pricing Product multiple assets. segment pipeline as rate well year of was across up quarter last to unfavorable due the

mainly Act Our and our from expansion contributions. Terminals was due business up to tanker contributions segment improved project Jones

contributions to lower by segment from costs, NGL gas as partially business. higher and renewable down those price natural all were and due power volume COX our was and as offset well Our COX

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

was from were last favorable to to excluding X% year. $X.XXX And Again, our billion, last equal expense, interest was GCF year. down year. $X.XX we DCF Our last

ended the quarter on third We of net Moving billion debt. $XX.X balance to with our sheet.

of change on the quarter, reconciliation Our We've the $XXX that the $X dividends. in had operations. We sustaining net We've of paid million. pretty total in also settled $X.X debt gets capital million $X contributions the year. stock year-to-date. to net as basis, cash has expenditures, growth follows: close That debt $X.X billion billion decreased generated to billion $X.XX in through is a out And funded and we and year-to-date third includes since from million you beginning repurchases the JVs and of

And back I'll with that, to hand Kim.

Kimberly Dang

mean you I XX count, shares. million was And think, the down David, on share it

With will Okay. we questions. that, take

have the Ask and additional in welcome follow-up you in line is turn questions, that. you consideration to others back in when X waiting it to to ask it a of but get after limit queue, your questions if

it Michelle, operator, up So open please would for questions. you

Operator

[Operator Tonet JPMorgan. Instructions] Jeremy with

You ahead, may go sir.

Jeremy Tonet

the that the you of, adverse with past, the other Just commentaries I kind rolls if to high-level I said wanted headwinds has back given of some past. of just to off start a are could. a in lot business question, and the contract in guess, through And coming worked

current do this generation is or single-digit you If about growth, portfolio, for I asset Do growth growth framework us base? EBITDA you see EBITDA think helpful? could for the provide think you you how the mid-single-digit guess, any low other, this EBITDA as would be that

Kimberly Dang

Sure.

we think will 'XX weeks through next month, so. or in I So the our budget go X

a to high with have you're give couple the had were -- just no we analyst that level, the better rollovers. doing And our think for respect idea published et those stopped not that XXXX. at I for were will But longer we a us conference. cetera, some that in headwinds last right contract We you of years material. rollovers, for because

has the have much as charge services. need rates. higher you gas, utilization think filled your That to higher. I means you customers allows So that ancillary Average natural network That gone the know, up. and pipes also

have rates Storage significantly. increased

So we're we've a on result for to which we inflation some contracts in more especially improving the New nice Terminal York EBITDA help seen increases, the and and charge on side, Harbor. our of especially rate able Obviously, businesses. Terminals, And those escalators, markets, storage. in the as have increase Products

nice And so tailwinds. have some those businesses

I right forward been. on is it's is now. think curve in a are little right COX, above have we think average, XXXX where XXXX. below bit I is we obviously, it The where But now curve above the that

right in now. XXXX think I rent 'XX prices above

service. We will that projects are in have these

tailwinds of environment, we've I that think increase X lot would have over which last just thing a couple is this manage in I business. to have the coming say, we the So of the we years. regulatory seen

added some things of as budget, that a commentary. which are in backlog, through -- through my To opportunities And we'll lot of the went those still we -- on but backlog the lot go aren't gas. also some project a the XXXX I those many, in address to it's have we've so opening we And more yet. there's of but many done

to tailwinds hard terms are I it nice. on to get But -- specific boil until very think right down it's So now in we all very a rate numbers. the

Jeremy Tonet

little here. the of And been below like just bit capital maybe towards still of that see $XX. it helpful. That's X.Xx, think seems it. is Got below the leverage a here long-term I the allocation kind is pivoting gears done target And at have and most which buybacks

on update of capital thoughts allocation, do Just And there. think or the below you management so the you acquisitions for about wondering stock? thinks could see buyback your message when value value is retaining growth you us powder sending this think Or $XX how to dry the more you the about if CapEx? market in on

Kimberly Dang

up in with Sure. projects, I move and down we've have set project. on lot that the we think that to as the risk mean, we I stated our where from return a times of of is mid-teens. respect depending And the

cost returns nice very be to going and of are well those so capital. And above our

that over share said, are And have take going have priority being That we and we repurchase. flow, share opportunistic repurchase. will our cash at when do to priority excess set threshold the returns target so we when

And cash so don't share repurchases. do we to flow have unlimited

And so those, make a when sure to that we want very we price. attractive we're do getting

Operator

is Jean caller Bernstein. next Ann with Our Salisbury

Jean Ann Salisbury

these storage know occurring? prior how to able rising close understand a and on of storage be Tom. gas to I line about for of calls the wanted Bcf up time rates talked to should to rates a KMI's you've XXX minor higher I $X. that of eventually bit reset think I for getting much and

Thomas Martin

much I reservoir and single-cycle garner a more clarity. what step really storage I'll then high I mean multi-cycle that smaller of Yes. for mean capacity that you let which a which rates. Stifel the yes, percentage salt is level of is higher those But storage, in give storage, facilities, is

you is services. As regulated our of know, in storage part

those not we're that instances, services, So additional also there's longer regulatory can what we can you seeing have which we value we much limits to by And also, may be in as as But for caps. what services. extract those way another increases where are rate limited we're term. know, getting charge

question. sell, service number trend And that both answer and short so our well whether it's storage hard your power getting a do we growing fee-for-service services, cycle We're services. in do, we to But salt getting it's value storage. as or term, long of these as term put think that this to opportunistic through additional on duration we single out additional

Jean Ann Salisbury

was basically question my currently flow the XXX with it's associated was unused sense. there's I the start for -- Great. that? And I CapEx pipeline? that Or capacity in just just moving Wyoming Is That interstate makes using MMCFD. release. wondering saw on projects the material if just other about on WIC empty any that you

Unknown Executive

Stifel. is This

we've for really, We've on minimal from example infrastructure And Bakken this. standpoint, mostly interconnect got capital. and this a collaborative the that's today GRs on little with a time a of working project been very in maximizes So capital. our is an significantly. capital, partners side, rising Kinder our that We see existence long

Operator

with caller next is Our UBS. Reynolds Brian

Brian Reynolds

of to you start this release. natural to positioned It XX% little like by level in that in to Kinder's that this CapEx $X a well we for range. growth, gas could increase is off Kinder Maybe on seems see high $X the but support put demand XXXX billion trend positioning higher billion

greenfield these corridor, the of Permian potential that's that needed. and projects Louisiana GCX some debottleneck are expansion helping Texas, So more

talk the of looking supply Kinder's Kinder that of maintain forward? market around can curious, share sets opportunity comments that kind to XX% going LNG you Just given about prior level, high just has

Kimberly Dang

then in. and can side Yes. I'll and about add make high-level comments of Stifel a the opportunity couple Tom

front. the opportunities I multiple think LNG there's on

down South Texas. in So got next you've decade the

going incremental is pipeline infrastructure to require that probably. So

those of those lot Louisiana a them along in facilities some multiple and got coming header pipes, -- border, Texas, some of -- have existing the You've don't. of

are reach of back. them to further Some wanting

LNG As market have Gulf a a that southeast result on you is of Coast, of the sucking the supply. sound short

to And demand so to the pipeline there. opportunities expand of capacity help try into some Southeast there's meet to the

number opportunities building West a on for don't out think new There of some that's is of to Mexico. Coast plants, yet, of exports the they're Mexico power supply which have

new opportunity the to Mexico. going There's load. serve that there's that LNG also on are So plant West of Coast facilities power

they're opportunity natural and there's there. incremental they're Aliso extending so of Canyon. announced their of life California, And just facilities the they've that gas capacity In the increasing

And natural longer going understanding time for play to of role I that gas some a think what are previously so out big than is thought. people a period there people

seeing, driving as is conversions all Gulf Coast. We're talked natural the through Tom still coal the demand. there's demand, industrial to power seeing And then we're on which growth gas, Texas some

really are And -- think a the there market. the so in a Northeast. It's built driving to there think of is growth, are get southern I different I of factors hard but number it the into infrastructure most number of

XX% XX% WoodMac gas the occurring And growth so shows to demand in natural Louisiana. Texas of and in

Unknown Executive

only -- think I we're heavily competitive add competitive, to And network. the you differentiates so think about right? thing when what that, think I'll the we're landscape, is I us our

think we've that's focused And going aggregate our then think competition. ability bring nitrogen. and what's help balancing more what on-system the been recently, we'll expanding on our I from storage, I our is table us to the differentiate to capabilities, to

Kimberly Dang

Yes.

with outlets. provide the helps I'd fact is shippers can is that thing multiple we that say other different differentiate The

ships somewhere to but shipper can, into the have don't we go service LNG help they flows storage pipeline an storage, if that and markets. them have change have if else, we those if if the given they system markets other -- the service can storage So redirect international

Brian Reynolds

previous It's focus touch got follow-up backlog build the Maybe lot the quarters. my CapEx just few to Great. over on a of multiple. as

a seemed with increase higher it little bit of an the to this well. So trend backlog as quarter

kind just future there, is be rising would you of whether on moving Any it's So about driving environment impact having helpful. returns? the or if it rate wondering new color whether can talk pieces an projects the

Kimberly Dang

Sure. Absolutely.

on What little So not multiple a one, the about is projects. the our on we focus. the return focus we let start talked and quarter that last me with fact, is this bit backlog

projects And and or not is EBITDA understand multiple do and backlog what generate. a guys, and are we that And assume flow not. at so we for to the a first cash to assume going you a you long-term and translate or we look what -- or try into sort year terminal run value a help renewal and partial to just a of renewal these

up the -- the way attractive that saying on I'm backlog is these very move projects. and so But or all the down still may are multiple

Xx So down based again, average mid-teens projects the with what it's And not so Xx. service But we backlog this the that that about multiple on added backlog, projects IRR, we that Xx that do the or kind into were the adjusting we quarter, the about into that risk. saw placed into unlevered projects was flow come a only like and projects went slightly cash were roughly of we're at up a multiple.

on we projects to EBITDA. the X little reason project take of to the a EBITDA. is going think we And existing then longer in was that because we the time And year decreased that ramp the backlog, did into the X

be to happen time. year we'll And won't get in get It we'll one. backlog. It we just so in until won't EBITDA that was later the the -- think

project, pretty volume Now we that attractive there. that incremental a return. And on to feel add even going we ramped never I project very that are if we is good think still

Operator

Our next Richardson Tristan is caller with Scotiabank.

Tristan Richardson

transport and we kind certainly, do to you as guys are working midstream time, I you're year? you especially seeing next given look you I mean, in sales. guys are of but are into contribute growth see you percent business continuing little core midstream, plan, business and the asset less guess to over a as volumes maybe below growing just said, as the in a volumes the on

Kimberly Dang

and separating also midstream, say business, all is which when so from Texas the And Intrastate out you're processing gathering the in midstream? you

Tristan Richardson

Correct.

Kimberly Dang

Particularly focused on gathering and processing.

Tristan Richardson

Yes.

Kimberly Dang

and because a answer to you going overall What can percentage natural business. don't the I decrease don't is natural I is processing down, processing we gathering a think on the -- anticipate the the is I and tell demand gas I as of gas EBITDA of as gathering know overall is processing going business. the gathering the and biggest from are and the percentage our in need nice going natural places as and to are very X close Stifel Rich more that to has gas the has characteristics that it both low position Ford. very in mentioned, we're growing, the those the And Ford LNG continue in Haynesville gas have demand. Eagle has is Eagle to And molecules. And some some -- and nitrogen. side

think so those in that growth And to expect of I the I see coming would volumes to out basins. continue

Unknown Executive

mean I in Eagle as Kim's constrained, a think to Yes. the trying the But relative Ford processing approaching at gathering of overall think Haynesville, And might comparison some you differential see I percentage. look processing I when these in and Bakken secure full our projects, systems, you up. we're we capacity. large keep

if the far facilities And material. on. in proportionate it successful proportion, obviously And will getting as and see big are feeder as as depends so LNG LNG on -- I projects not, think those and the we these continue that come we're relative all trend these

Kimberly Dang

incremental be means Haynesville be the new the that to rate charge -- for capacity the there. as on may being capacity So Eagle There at that being Ford. on on processing projects volume going opportunities in processing constrained, there's increase to at opportunities

just Stifel clarify So was what saying. to

Tristan Richardson

Appreciate quick follow-up. a it. And then

capacity as online? out XXXX seeing you're the past particularly a RNG just maybe overall commercial around on transition you get potential of there, Autumn of sense Just and energy venture maybe Hills funnel, projects top comes activity the side,

Anthony Ashley

Tristan, Yes. Yes. Anthony. it's

North which look So have acquisition, as RNG do opportunities. American and gas within the conversion projects are we potential we natural XXXX electric some landfill projects, beyond, additional and

on bit got the clarity now And from more we're potential. little the so RINs EPA a

those getting up looking Hills. through Autumn beyond and projects ones, of our do projects focus yes, opportunities the really in generation organic have again. potential service and and operating we're would our wind potential, now growth has looking other we but I going been existing at say, have are potential process. at some we But well terms in few And a We that

Kimberly Dang

a we're we've the worked And facilities, on think there, in just mean we've X this largely We of for bringing an service had the I that update One, are year issues. operational in service. through. X few

The the the on end other ramping up. X be X is third expect year. to the we by And of

Operator

is caller with Neal next Our Dingmann Securities. Truist

Neal Dingmann

You I guess looking think my pipelines, just assets? is just I'm Or wondering wondering given natural current are talked a gas agnostic a you potentially M&A. I'm perhaps would various all bit adding sort other question about just at how various on about footprint, near-term there assets. M&A. your on preference? you is of

Kimberly Dang

Yes.

think easy to do. that are hard to imagine and I acquisitions

to do fit pretty a inception, strategy. looking have acquisitions and has process been opportunistic think One, There I always I we it's are asset are that and disciplined that we most it. so And say more around for the more part. -- to since what our us an criteria interested acquisitions acquisition. at is are would yes, And the X for our are in core have

return. that be to Two, not it which accretive -- dilutive it around our be three, it, attractive per it So share infrastructure. to means debt have of metric needs X.Xx attractive be And economics we debt it long-term prefer after-tax needs can't it to unlevered to fee-based, have the and energy right to DCF EBITDA. an to be needs

And generally, be very, was something relative to I very don't special. something would would debt that metric. think It that that do to is have we

Neal Dingmann

or you speak all also makes Kim, you could in say mentioned wondering, increase you this That I'm rents? maybe earlier, mentioned RIN price. your you the about then, you sense. something -- did DX think direction of the to just saw I And the of

Kimberly Dang

right think. gone I now, have DX the $X.XX to On they rent,

may haven't that think but their satisfied And 'XX new So or I yet, traded that pricing. before And RBOs. with pinpoint out and $X.XX. obligations the driving last below that, them came 'XX out be they the the there in in EPA there up exactly $X. we've is, were so, the that be and to seen $X to they when what around go June people of hard Post some week could

for good I RINs XXXX. So think now pretty look prices right

Operator

call is Wolfe next Research. Our Stanley Keith with

Keith Stanley

updated customers I if could missed Gulf expand that the comments with to forward. and move things discussions any Express Sorry soon are potential on Coast but where how in this, and

Kimberly Dang

which And discussions with have that, announce time. think yet. interested customers that don't we where And in this are continue people we of is I -- but were are kind last have anything there and to to quarter we at

Keith Stanley

Okay.

slightly And just $XX XXXX It million budget. was it we the EBITDA like seems on out. like X% of less even the below commentary saying much guys below kind QX, on below less question, anyway. on you in the seems calling maybe XXXX just below me when the are of small of to first plan pretty the than target? being it -- budget with Second It I half we're just line talking, company EBITDA maybe than mean, that slightly plan.

David Michels

Keith, it's below. amount slightly are we Yes, David. that's number performance why it's strong having It's we're really Yes. material disappointing that It's across below we said a because -- below. of categories hedges a less we through But in year, seen now so forth. commodity that additional our impactful base as impact price we've and put the some go we improvement. business. is The on not

commodity parts have in we've the less some some prices commodity year have improvement. offset we the weakness And materialize. other of of that continued business as improvement later in that of upside the to part So price

we're So much. little -- disappointing it's detail but bit don't slightly net-net, determination. that But have not additional it's to a you yes, a regard down, it's with still unfortunately, I for

Operator

Mizuho, ahead, with may go you Moreen Gabe sir.

Gabriel Moreen

question expiring quick you've on then to fixed to and hedges, on, fixed got some back soon. of the which are floating which a Just

for future Just that wondering year? thinking hedges of how the the expiring not-too-distant with expense for in some you're next interest about

Kimberly Dang

of So flow. we our about have deficit XX%

that. we in of about locked half XXXX, For

rate floating expired end of we on our that XX%. was for 'XX. XXXX, Those hedges So 'XX at about we the the it put --

expect have And so billion. do off you $X.XX go in off XX%. would XXXX that swaps But us roll swaps back Those to that and to in XXXX. we totaled swaps roll

be would on a swaps new or swaps, or a let just put We those have we decision on XX% We when fixed. yet to any made would at all expire, will swaps we as not floating if expire -- stay XX% just did not -- we put those whether put percentage. more

a generally The the float floating to strategy curve rates. of our has because -- our debt forward portion future on long-term overestimated has been

we've made $XXX million. years over swaps. those $X.X back we XX This year, last we've -- so made gave billion And through on last about the year,

exception about over rate So in cycle. X has the to hike billion. the been curve charts The $X that seen a forward rates to in we've we -- floating when you've made been predicting

And be going on. put we when so back as to I swaps new think flexible we're to

do wait future on. longer for period event think -- reasonable floating the those no to XX%. of in of in may I time put But percentage be back So we the on, but likelihood in swaps And a lower we there's that a in new some I than a term, may at may we some to go XX% swaps the XXXX. back decide put above would think

Gabriel Moreen

there's the a around intrastates And LNG whether then maybe and up if question opportunities more I thought aggregate these with export whether an taking yourselves to can marketing marry outside perhaps around facilities LNG another sees and need pipeline approach. up supply presence to similarly, stakes for some to sort of of follow integrated in of LNG opportunity develop to any the Kinder-Morgan the

Thomas Martin

Yes.

footprint we'll we'll us develop, we and our that our you suggest. mean, be we But We'll our opportunities there's things We market if go not do -- there. now I strategy. assets. a and been marketing international opportunities I exclusively, see LNG consider really off So may gas as really incremental from right small things opportunities to have going don't see but as there. an across into just the But consider really where business and market largely opportunities that, see don't on focused open actually domestic of hasn't

a our As out and LNG own again, space LNG facility, there's an a of as of taking and risk that. lot related to doing far capital lot

I be don't that And as provide the to see tended transportation so our in to fee-for-service capacity Island And have for both -- changing play it if international all. much, capacity pertains LNG Elba to facility and markets. at export we and more customers

Operator

Our next Van Zack with caller Company. DPH is &

Unknown Analyst

Bakken an up the or options side, you HH pipeline announcements up on to to Just after considered the guys go some back takeaway diversify gas NGL help of looked converting the there? want pipe seeing to to have the the into

Dax Sanders

are options got that. -- certainly repurposing of crude We've has right consider to have, -- element for an we X we would around is We've several residual of largely. obviously becoming deal. Dax. but on becoming XX more on of the -- at we continue it, It's roll, something day risk the this It's of that transport that's yes. with We a looked -- contracts it's different becoming We've and as those contracts being basis pipe. And incremental which a more them. about pipeline,

Unknown Analyst

you with go you there at And if And route? could all we that, you. similar capacity were if to a assume any expand to opportunities that were then convert that to it's Got NGLs? are

Dax Sanders

depends bit in. some do still in think adds ultimately, on more put I service, But capacity you but liquid with NGLs, a if pumps if what little it's It still you early. it maybe

Kimberly Dang

to for X early. like just have an other underutilized any I It's time we utilize, is asset. this Yes. opportunities pretty looking We're think

Operator

Global Sunil Securities. Seaport Sibal with

Sunil Sibal

But to I upon apologize your systems. gathering QX sequential volumes if the to regard various you condensate this. I just missed of crude saw on in also and kind with I wanted basins what trends gas and in touch

Kimberly Dang

gathering, they Sequential volumes. they volumes a were and were down cruise. second. on Sequential X% on Hang gas on down X%,

kind So a sequential on flattish basis. of

Sunil Sibal

the representative And across that's fairly basin?

Kimberly Dang

They're different basins.

Morgan. And for so total that is Kinder

And up it's mean, bit and Bakken. I crude, the little in little basins could were flattish, but down Eagle on the So minus down that's be would of Ford, I a gas, and X, those slightly. that a Haynesville, net of in were be primarily would kind primary some some -- bit -- Bakken, say

Operator

am I time, no questions. this at showing further And

Richard Kinder

and a And you day Okay. good have you. very Thank good Michelle, evening. thank much. everybody, a

Operator

concludes you. today's conference call. thank And This

may You this disconnect time. ahead and go at

Kinder Morgan (KMI) 18 Oct 232023 Q3 Earnings call transcript