Q1 2025 Kinder Morgan Inc Earnings Call

Call is being recorded if you have any objections. Please disconnect at this time I will now turn the call over to Mr. Rich Kinder executive Chairman of Kinder Morgan. Thank you you may begin.

Speaker Change: Ted before we begin I'd like to remind you as we always do that.

Speaker Change: <unk> earnings release today and this call include forward looking statements within the meaning of the private Securities Litigation Reform Act of $19 95.

Speaker Change: And the Securities Exchange Act of $19 34, as well as certain non-GAAP financial measures before making any investment decisions. We strongly encourage you to read our full disclosures on forward looking statements and use of non-GAAP financial measures set forth at the end of our earnings release as well as review our latest filed.

Speaker Change: And as with the SEC for important material assumptions expectations and risk factors that may cause actual results to differ materially from those anticipated and described in such forward looking statements.

Speaker Change: On several of these investor calls I've expressed my view and that of other leaders and experts in our industry about the potential for extra ordinary growth and the demand for natural gas in America and abroad.

All forward looking statements and use of non-GAAP financial measures set forth at the end of our earnings release as well as review our latest filings with the SEC for important material assumptions expectations and risk factors that may cause actual results to differ materially from those anticipated.

Speaker Change: This optimistic view of the market and its favorable impact on the growth and prosperity.

Speaker Change: Midstream energy companies like Kinder Morgan was embraced during the last year or so by a significant number of investors and analysts that you seem to accelerate with the perceived opportunity for natural gas to fuel AI and data centers.

Described in such forward looking statements.

On several of these investor calls I've expressed my view and that of other leaders and experts in our industry about the potential for extraordinary growth in the demand for natural gas in America and abroad.

Speaker Change: Recently that optimistic view has been questioned by some on a couple of different grounds.

This optimistic view of the market and its favorable impact on the growth and prosperity of midstream energy companies like Kinder Morgan was embraced during the last year or so by a significant number of investors and analysts that do seem to accelerate with the perceived opportunity for natural gas to fuel.

Speaker Change: First in the aftermath of the deep sick steep seek announcement it seemed as some critics that growth in gas demand for data centers and electric power in general was too optimistic.

Speaker Change: Lee the announcement of expanded tariffs by the Trump administration inspired others to question, whether this would result in less demand for U S LNG, thereby reducing the amount of feed gas required in this country.

And data centers.

Recently that optimistic view has been questioned by some on a couple of different grounds.

First in the aftermath of the deep chicken out steep seek announcement it seemed to some critics that growth in gas demand for data centers and electric power in general was too optimistic.

Speaker Change: Let me try to put all of this in perspective by detailing how we view the drivers of natural gas demand growth over the rest of this decade.

Speaker Change: Start with some history as prologue for the future.

Secondly, the announced would've expanded tariffs by the Trump administration inspire others to question, whether this would result in less demand for U S LNG, thereby reducing the amount of feed gas required in this country.

Speaker Change: In 2005 U S demand for natural gas was approximately 60 Bcf a day in 2024 that demand was almost a 109 Bcf per day an increase.

Speaker Change: Roughly 80%, that's pretty astounding growth over that 20 year span now, let's look at the future growth between now and the end of this decade with all due deference to Mark Twain's famous quip that making predictions is very difficult, especially if they concern the future.

Let me try to put all of this in perspective by detailing how we view the drivers of natural gas demand growth over the rest of this decade.

Start with some history as prologue for the future.

In 2005 U S demand for natural gas was approximately 60 Bcf a day in <unk>.

Speaker Change: Most estimates of growth between now and 2030 range between 20, and 28 Bcf a day and our internal projections also fall in that range. The overwhelming driver of that growth is increased LNG export demand, we estimate that growth to be somewhere around 16 Bcf.

'twenty 'twenty four that demand was almost 109 Bcf per day an increase.

Roughly 80%, that's pretty astounding growth over that 20 year span now, let's look at the future growth between now and the end of this decade with all due deference to Mark Twain's famous quip that making predictions is very difficult, especially if they concern the future.

Speaker Change: Up to date with the great bulk of that coming from facilities already under construction or that have been <unk>.

Most of that's as much a growth between now and 'twenty 30 range between 20, and 28 Bcf a day at our internal projections also fall in that range. The overwhelming driver of that growth is increased LNG export demand, we estimate that growth to be somewhere around 16 Bcf.

Speaker Change: F D. A project means it is supported by long term contracts with creditworthy entities, otherwise these facilities simply could not be financed.

Speaker Change: I'd add parenthetically that our contracts with LNG export facilities are also supported by long term contracts, but notwithstanding those facts. The naysayers argued that a trade war with China will lead to a dimunition and need for U S. LNG and response, let me mention two countervailing fact.

The day with the great bulk of that coming from facilities already under construction or that have been up I D.

F idea project means it is supported by long term contracts with credit worthy entities otherwise these facilities simply could not be financed.

Speaker Change: <unk>.

Speaker Change: First China has not imported any U S. LNG since February and yet feed gas demand is setting records, averaging 15, five Bcf a day in the first quarter and approaching 17 Bcf a day on several recent days secondly, our view is that any law.

I'd add parenthetically that our contracts with LNG export facilities are also supported by long term contracts, but notwithstanding those facts. The naysayers argued that a trade war with China will lead to a degradation and need for U S. LNG and response, let me mention two countervailing fact.

Speaker Change: So the Chinese market will be more than offset by the efforts of governments in the EU and Asia to increase the imports of U S. LNG to reduce trade imbalances and put themselves in a better negotiating position with regard to U S tariffs.

First China has not imported in a U S. LNG since February and yet feed gas demand is setting records, averaging 15.5 Bcf a day in the first quarter and approaching 17 Bcf a day on several recent days secondly, our view.

Speaker Change: South Korea, and Indonesia for example are already in specific discussions on that strategy.

Is that any loss of the Chinese market will be more than offset by the efforts of governments in the EU and Asia to increase the imports of U S. LNG to reduce trade imbalances and put themselves in a better negotiating position with regard to U S tariffs.

Speaker Change: And regarding the EU, we believe Europe's apparent and off stated reluctance to ever again allow Russia to be the dominant supplier of natural gas to Europe will obviously increase its use of U S LNG base.

Based on all of these factors, we remain very bullish on growth in U S. LNG exports.

South Korea, and Indonesia for example are already in specific discussions on that strategy.

Speaker Change: In addition to growth in LNG feed gas demand, we see nice upticks and exports to Mexico power demand driven in part by the surge in AI and data centers and residential commercial use anecdotally the new projects, we have announced at Kinder Morgan over the last couple of quarters are supported in large part.

And regarding the au, we believe Europe's a parent and off state of reluctance to ever again allow Russia to be the dominant supplier of natural gas to Europe will obviously increase its use of U S. LNG based.

Based on all of these factors, we remain very bullish on growth in U S. LNG exports.

Speaker Change: By long term contracts with utilities in the south Eastern U S and indication of the need for more gas to feed electric generation the.

In addition to growth in LNG feed gas demand, we see nice upticks and exports to Mexico power demand driven in part by the surge in AI and data centers and residential commercial use anecdotally the new projects, we have announced at Kinder Morgan over the last couple of quarters are supported in large part.

Speaker Change: The point of all this detail is to put it into perspective perspective, the drivers of demand for the product we transport.

Speaker Change: So that any intelligent investor can make a reasoned assessment of the natural gas market for the rest of this decade and not be whipsawed by the perceived ups and downs of just one or two facets of the growth story and truth that growth is supported we believe by an array of factors that reflect the strength of <unk>.

By long term contracts with utilities in the south Eastern U S and indication of the need for more gas to feed electric generation.

The point of all this detail is to put it into project perspective, the drivers of demand for the product we transport.

Speaker Change: Natural gas as an important source of energy for years to come and with that I'll turn it over to Kim Okay. Thanks Rich.

So that any intelligent investor can make a reasoned assessment of the natural gas market for the rest of this decade and not be whipsawed by the perceived ups and downs of just one or two facets of the growth story and truth that growth is supported we believe by an array of factors that reflect the strength of that.

Kim: Good quarter.

Kim: <unk> resolved, which David will take you through are essentially in line with our expectations.

For the year, we currently expect to exceed budget by at least the contribution from the outright outrigger acquisition.

Kim: Our natural gas performance versus budget is very strong in the first quarter, we saw record natural gas demand with demand in the market growing by six 8 billion cubic feet, a day, driven by 10% increase in residential and commercial demand and a 15% increase in LNG demand.

Natural gas as an important source of energy for years to come and with that I'll turn it over to Kim Okay. Thanks Rich.

Kim: We had a good quarter the financial results, which David will take you through are essentially in line with our expectations.

Kim: For the year, we currently expect to exceed budget by at least the contribution from the outright outrigger acquisition.

Kim: Future natural gas fundamentals continue to be strong with demand expected to grow between now and 2030 as rich just pocket right.

Kim: Natural gas performance versus budget is very strong in the first quarter, we saw record natural gas demand with demand in the market growing by six 8 billion cubic feet, a day, driven by 10% increased in residential and commercial demand and a 15% increase in LNG demand.

Kim: And I would add that even if a portion of the roughly seven trillion dollars and new U S investment. The administration has announced the curve. We believe that would drive demand that is not currently captured in projections.

Kim: During the quarter, we added approximately $900 million to our project backlog, taking the backlog to $8 $8 million after adjusting for the projects placed in service.

Kim: Natural gas fundamentals continue to be strong with demand expected to grow between now and 2030 as rich just talking right and I would add that even if a portion of the roughly seven trillion dollars and new U S and vast monthly administration has announced the cars. We believe that would drive demand that is not.

Kim: Of the $900 million over 70% is primarily focused on serving power demand.

Kim: The largest project branch is a $430 million extension of our <unk> pipeline supported by a 30 year contract. It will deliver about 325 million cubic feet a day into South Carolina.

Kim: Currently captured in projections.

Kim: During the quarter, we added approximately $900 million to our project backlog, taking the backlog to $8 $8 million after adjusting for the projects placed in service.

Kim: Primarily served increased power demand and is easily expandable to over a bcf a day.

Kim: Of the $900 million over 70% is primarily focused on serving power demand.

Kim: Of course, there's been a lot of attention paid to Tara.

Kim: At this point, we do not believe that the tariffs will have a significant impact on project economics for.

Kim: The largest project branch is a $430 million extension of our Elba Express pipeline supported by a 30 year contract. It will deliver about 325 million cubic feet a day into South Carolina.

Kim: For our new large project, Mississippi crossing.

Kim: So from expansion or try that Acs and Brad that together comprise approximately two thirds of our backlog. We currently estimate the impact of terror and being roughly 1% of project cost.

Kim: Primarily served increased power demand and is easily expandable to over a bcf a day.

Speaker Change: Of course, there's been a lot of attention paid to Tara.

Kim: We've worked to mitigate the potential impact preordering certain equipment negotiating.

Speaker Change: At this point, we did not believe that the tariffs will have a significant impact on project economics for.

Kim: On tariff impact and securing domestic.

Speaker Change: For our new large project, Mississippi crossing doubtful from expansion or try that Acs and Brad that together comprise approximately two thirds of our backlog. We currently estimate the impact of terror and being roughly 1% of project cost.

Kim: Neil and milk capacity for these products actually locked in the call. The finished steel pipe and less than 10% is exposed to tariffs.

Kim: In addition.

Kim: Get some permitting really there may be the opportunity to bring these projects are portions of the project in service earlier than planned helping to offset any impact.

Speaker Change: We've worked to mitigate the potential impact by preordering certain equipment negotiating hat on tariff impact and securing domestic.

Kim: From an operations perspective, we're still in the process about evaluating the impact of terror.

Speaker Change: And no capacity for these products actually blocked in the call that the finished steel pipe and less than 10% is exposed to tariffs.

Don't expect it to be material to 2025, but the uncertainty of tariffs along with commodity prices did cause us to be a little bit more conservative and communicating our outlook for the year at this point.

Speaker Change: In addition, the extent we get some permitting really there may be the opportunity to bring these projects a portion of the project.

Kim: During the quarter, we closed on the previously announced $640 million acquisition of the Bakken gathering and processing system, which nicely complement our existing assets from that baseline.

Speaker Change: Service earlier than planned helping to offset any impact from.

Speaker Change: From an operations perspective, we're still in the process about evaluating the impact of tariffs.

Kim: When you look at the results for the quarter there isn't much impact from this acquisition given that we only owned it for 45 day and all the transaction costs were expense in the quarter, but it is performing in line with our expectations.

Speaker Change: Don't expect it to be immaterial to 2025, but the uncertainty of tariffs along with commodity prices did cause us to be a little bit more conservative and communicating our outlook for the year at this point.

Speaker Change: During the quarter, we closed on the previously announced 640 million acquisition of the Bakken gathering and processing system, which nicely complements our existing asphalt from that baseline. When you look at the results for the quarter there isn't much impact from this acquisition given that we only owned it for 45 days and all of the Transat.

Kim: Fight the volatility in the market, we have a very resilient business almost two thirds of the EBIT generated from take or pay contract.

Kim: 30% fee based or hedged with only 5% of our EBITDA.

Kim: <unk> rifle we.

We expect to continue to generate nice cash flow and fund our attractive backlog of projects, which are substantially backed by long term contracts from creditworthy entity, while maintaining a strong balance sheet.

Speaker Change: <unk> costs were expensed in the quarter, but it is performing in line with our expectations.

Speaker Change: Despite the volatility in the market, we have a very resilient and Cessna almost two thirds of the EBITDA is generated from take or pay contract roughly.

Kim: Finally on management succession, all Martin has announced his intention to retire in January 2020.

Speaker Change: Roughly 30% is fee based or hedged with only 5% of our EBITDA exposed to commodity prices.

Kim: At which time he will assume an advisory role to the board of directors and to the office of the chairman.

Speaker Change: We expect to continue to generate nice cash flow and fund our attractive backlog of projects, which are substantially backed by long term contracts from creditworthy entity, while maintaining a strong balance sheet.

Kim: In that role he will continue to help the company execute on our tremendous backlog of natural gas project.

At that time, Dax Sanders, who many of you already know sustained palm its part of that.

Speaker Change: Axis currently president of product of the products business segment and has a thorough understanding of the company having been here for approximately 23 years and served in a variety of different role.

Speaker Change: Finally on management succession Palm Martin has announced his intention to retire in January 2020 at which time he will assume an advisory role to the board of directors and to the office of the chairman.

Speaker Change: Tom and Dax will start the transition process in August at which time, Mike Garthwaite will become president of product pipeline. This.

Speaker Change: In that role he will continue to help the company execute on our tremendous backlog of natural gas project.

Speaker Change: This is the plan, we contemplated and prepare for and our succession planning and with that I'll turn it over to Tom to give you more detail on the business performance for the quarter.

Speaker Change: At that time, Dax Sanders, who many of you already know will sustain palm its positive.

Speaker Change: Taxes currently president of product of the products business segment and has a thorough understanding of the company having been here for approximately 23 years and served in a variety of different role Tom.

Tom: Thanks Kim.

Starting with our natural gas business unit transport volumes were up 3% in the quarter versus the first quarter of 2024 with New peak day volume Records on four of our five largest pipeline systems due to the Confluences of all the major demand drivers that is residential commercial power.

Speaker Change: Tom and Dax will start the transition process in August at which time, my garthwaite will become president of product pipeline.

Speaker Change: This is the plan, we contemplated and prepared for in our succession planning and with that I'll turn it over to Tom to give you more details on the business performance for the quarter.

Tom: Sure and LNG during prolonged cold weather in our major market areas in Texas, Louisiana, The Midwest and the east.

Tom: Thanks Kim.

Tom: Starting with our natural gas business unit transport volumes were up 3% in the quarter versus the first quarter of 2024 with New peak day volume Records on four of our five largest pipeline systems due to the constituents of all the major demand drivers that is residential commercial power.

Tom: Natural gas gathering volumes were down 6% in the quarter compared to the first quarter of 2024, driven primarily by lower Haynesville production.

Sequential total gathering volumes were down 2%.

Our producer customers are still ramping back up after the lower gas prices in Q2 through Q4 of 2024 for the full year, we expect our gathering volumes to average, 5% above 2024, but 2% below our 2025 budget we.

Tom: And LNG during prolonged cold weather in our major market areas in Texas, Louisiana, The Midwest and the east.

Tom: Natural gas gathering volumes were down 6% in the quarter compared to the first quarter of 2024, driven primarily by lower Haynesville production.

We anticipate gathering volumes will grow over the balance of 2025, given the higher price environment.

Tom: Sequential total gathering volumes were down 2% all.

Tom: Our conversations and plans and the need for increased production to meet storage refill demand and LNG LNG demand growth that is ramping up throughout the year.

Tom: Our producer customers are still ramping back up after the lower gas prices in Q2 through Q4 of 2024 for the full year, we expect our gathering volumes to average, 5% above 2024, but 2% below our 2025 budget.

Looking forward, we continue to see significant incremental project opportunities across our natural gas pipeline that work to expand our transport and storage capabilities in support of the growing natural gas market.

Tom: We anticipate gathering volumes will grow over the balance of 2025, given the higher price environment producer conversations and plans and the need for increased production to meet storage refill demand and LNG LNG demand growth that is ramping up throughout the year.

Tom: And our products pipeline segment refined products volumes were up 2% crude and condensate volumes were up 4% in the quarter compared to the first quarter of 2024.

Tom: Looking forward, we continue to see significant incremental project opportunities across our natural gas pipeline that work to expand our transport and storage capabilities in support of the growing natural gas market.

Tom: For the full year 2025 refined product volumes are forecasted to be up.

About 2% higher than 2024, but flat with budget.

Tom: In March 2025, TMI placed its approximately $17 billion, Florida jet fuel expansion project into service too.

Tom: And our products pipelines segment refined products volumes were up 2% crude and condensate volumes were up 4% in the quarter compared to the first quarter of 'twenty 'twenty four.

Tom: To enhance jet fuel deliveries to the Orlando, Florida market.

Tom: Spansion creates a continuous jet fuel system that increases pipeline transportation capacity into the Orlando International Airport, providing a faster return to service solution following hurricane related power outages the.

Tom: Full year 2025 refined product volumes are forecasted to be up about 2% higher than 2024, but flat with budget.

Tom: In March 2025, K M. I placed its approximately $17 billion, Florida jet fuel expansion project into service too.

The project is fully contracted with 10 year commitments from the Orlando airline consortium.

Tom: To enhance jet fuel deliveries to the Orlando, Florida market.

Tom: In our terminals business segment, our liquids lease capacity remains high at 94%.

Tom: Spansion creates a continuous jet fuel system that increases pipeline transportation capacity into the Orlando International Airport, providing a faster return to service solution. Following hurricane related power outages. The project is fully contracted with 10 year commitments from the Orlando airline consortium.

Refining cracks and blending margins have softened they remain supportive of strong rate and utilization at our key hubs that the Houston ship Channel and New York Harbor.

Tom: Our Jones Act tanker fleet is fully leased today, 97% leased through 2025 and 94% leased through 2026.

Tom: In our terminals business segment, our liquids lease capacity remains high at 94%.

Tom: <unk> likely options are exercised.

Tom: Opportunistically chartered a significant percentage of the fleet at higher market rates.

Tom: So refining cracks and blending margins have softened they remain supportive of strong rates and utilization at our key hubs.

Tom: And extended the average length of firm contract commitments to four years.

Tom: Houston ship Channel and New York Harbor.

Tom: The <unk> segment experienced slightly lower oil production production volumes about 1%, 5% higher NGL volumes at 7% lower C O two volumes in the quarter versus the first quarter of 2024.

Our Jones Act tanker fleet is fully leased today, 97% leased through 2025 and 94% leased through 2026.

Tom: Assuming likely options are exercised.

Tom: We have opportunistically chartered a significant percentage of the fleet at higher market rates.

For the full year of 2025 oil volumes are forecasted to be 1% below 2024, but 2% above budget.

Tom: And they extended the average length of firm contract commitments to four years.

Tom: In March 2025 km placed its autumn hills R&D facility into service.

Tom: The C O two segment experienced slightly lower oil production, our production volumes about 1%.

Tom: Plant's capacity at <unk> eight Bcf of RMG annually now brings <unk> total orangey capacity up to $6 nine Bcf per year.

Tom: 5% higher NGL volumes at 7% lower C O two volumes in the quarter versus the first quarter of 2024.

Tom: For the full year of 2025 oil volumes are forecasted to be 1% below 'twenty 'twenty, four but 2% above budget.

Speaker Change: With that I'll turn it over to David Michael's Alright, Thank you Tom.

Speaker Change: For the quarter were declaring a dividend of <unk> 29, 25 per share, which is $1 17 per share annualized in 2% up from last year's dividend.

Tom: In March 2025 can I placed its autumn hills Orangey facility into service the plant's capacity at a 0.8 Bcf of RMG Annualizing that brings Cam is total orangey.

Speaker Change: During the first quarter, we generated net income attributable to <unk> of $717 million.

Tom: Capacity up to $6 nine Bcf per year.

Speaker Change: Down 4% from the first quarter of last year, we generated EPS of <unk> 32 down one central last year much.

David Michael's: With that I'll turn it over to David Michael's Alright, Thank you Tom.

Much of that decline is attributable to unfavorable mark to market on hedges that have not yet settled and we treat as certain items.

Speaker Change: For the quarter were declaring a dividend of $29 25 per share, which is $1 17 per share annualized and 2% up from last year's dividend.

Speaker Change: On an adjusted net income basis, which excludes certain items, we generated $766 million and adjusted EPS of <unk> 34 up 1% and flat from last year, respectively.

Speaker Change: During the first quarter, we generated net income attributable to <unk> of $717 million.

Speaker Change: Down 4% from the first quarter of last year, we generated EPS of <unk> 32 down one central last year.

Speaker Change: This quarter growth was driven by greater contributions from our natural gas terminals and Sidoti businesses.

Speaker Change: Much of that decline is attributable to unfavorable mark to market on hedges that have not yet settled and we treat as certain items.

Speaker Change: Our main growth drivers were contributions from our Texas intrastate natural gas system attractive capacity sales and park and loan services on our Interstate natural gas assets greater renewable natural gas production and higher contributions from our Jones Act tankers.

Speaker Change: On an adjusted net income basis, which excludes certain items, we generated $766 million and adjusted EPS of <unk> 34 up 1% and flat from last year, respectively.

Speaker Change: I would note that some of the natural gas agreements, we entered into during the first quarter extend beyond the first quarter and therefore, therefore will add contributions during the remainder of the year.

This quarter growth was driven by greater contributions from our natural gas terminals and <unk> businesses.

Speaker Change: Our main growth drivers were contributions from our Texas intrastate natural gas system attractive capacity sales and park and loan services on our Interstate natural gas assets greater renewable natural gas production and higher contributions from our Jones Act tankers.

Speaker Change: These were offset by lower gathering and processing volumes as Tom mentioned.

Speaker Change: The impact from our planned splitter facility turnaround and lower RIN pricing.

Speaker Change: Yes.

Speaker Change: Moving onto our balance sheet, we ended the quarter with $32 8 billion of net debt and four one times net debt to adjusted EBITDA, which is in the middle of our leverage target range of three five to four five times to.

Speaker Change: I would note that some of the natural gas agreements, we entered into during the first quarter extend beyond the first quarter and therefore, therefore will add contributions during the remainder of the year.

Speaker Change: These were offset by lower gathering and processing volumes as Tom mentioned.

Four one times only includes.

Speaker Change: The impact from our planned splitter facility turnaround.

Speaker Change: A month and a half of EBITDA from our outrigger, but it includes all of the acquisition funding. So that metric will decline will improve as we add more quarters of the outrigger contribution.

Speaker Change: And lower RIN pricing.

Speaker Change: Renewable natural gas.

Speaker Change: Moving onto our balance sheet, we ended the quarter with $32 $8 billion of net debt and four one times net debt to adjusted EBITDA, which is in the middle of our leverage target range of three five to four five times to four one times only includes a month and a half of EBITDA from our outrigger.

Speaker Change: Our net debt increased by just over $1 billion from the beginning of the year.

Speaker Change: And here's a high level reconciliation of that change.

Speaker Change: Yes, working capital use of about three a little bit more than $300 million debt working capital deficit is made up of interest expense.

Speaker Change: But it includes all of the acquisition funding so that metric will decline will improve as we add more quarters of the outrigger contribution.

Speaker Change: <unk> payments and the first quarter typical first quarter payments of bonus and property tax.

Speaker Change: We generated cash flow from operations of $1 6 billion, we paid dividends of $650 million.

Speaker Change: Our net debt increased by just over $1 billion from the beginning of the year.

Speaker Change: And here's a high level reconciliation of that change.

Speaker Change: We expanded $770 million of total capex.

Speaker Change: Yes, we.

Speaker Change: <unk> capital use of about three a little bit more than $300 million debt working capital deficit is made up of interest expense payments and the first quarter and typical first quarter payments of bonus and property tax.

We closed on the outrigger acquisition, which was approximately $650 million and we posted collateral for some of our natural gas.

Hedges of about $90 million, which gets you close to the $1 billion increase in net debt for the year.

Speaker Change: We generated cash flow from operations of $1 $1 $6 billion, we pay.

Speaker Change: For the full year as Ken mentioned, while it's still early in the year and we expect to exceed budget by at least the contribution from the outrigger acquisition.

Speaker Change: It ends of $650 million.

Speaker Change: We expended $770 million of total capex.

Ken: And as disclosed in our full year budget, our budgeted adjusted EBITDA growth was 4%.

Speaker Change: We closed on the outrigger acquisition, which was approximately $650 million and we posted collateral for some of our natural gas hedges of about $90 million, which gets you close to the $1 billion increase in net debt for the year.

Just including the outrigger acquisition, our EBITDA growth will increase two 5% our adjusted EPS growth would still remain at an attractive 10% and we're also expecting to still end the year with net debt to adjusted EBITDA of three eight times.

Ken: For the full year as Ken mentioned, while it's still early in the year.

Ken: Back to exceed budget by at least the contribution from the outrigger acquisition.

Ken: Most of our 2025 budgeted growth comes from expansion projects.

Ken: And as disclosed in our full year budget, our budgeted adjusted EBITDA growth was 4%.

Now there were more than a quarter into the year. We can say we are on target to place. The vast majority of these expansion projects in service on time and on budget or with only minor variances.

Ken: Just including the outrigger acquisition, our EBITDA growth will increase two 5% our adjusted EPS growth would still remain at an attractive 10% and we're also expecting to still end the year with net debt to adjusted EBITDA of three eight times.

Ken: Largest expansion contributions come from our Evangeline Evangeline past expansion project, which is on track to come online this summer and multiple projects on our Texas intrastate system. The largest of which include our South Texas. The Houston project, which is near completion and a couple of additional projects that have already been in place.

Ken: Most of our 2025 budgeted growth comes from expansion projects.

Ken: Now there were more than a quarter into the year. We can say we are on target to place. The vast majority of these expansion projects in service on time and on budget or with only minor variances our largest expansion contributions come from our Evangeline Evangeline past expansion project, which is on track to come online. This summer.

<unk> into service, including our web County, and Central Texas expansion. So.

Ken: So we're off to a good start to the year.

Ken: We're on track to put our expansion projects in service.

Ken: <unk> favorable performance across our businesses and our sanction additional projects.

Ken: <unk> and multiple projects on our Texas intrastate system, the largest of which include our South Texas to Houston project, which is near completion and a couple of additional projects that have already been placed into service, including our web County, and Central Texas expansion.

That will drive growth well into the future.

Ken: Finally.

Ken: Based on Investor feedback, we do not plan to host a regular investor day presentation in person going forward like we did this year. We will continue to publish an annual company update which will include our budget for the year, but won't post the presentation in person.

Ken: So we're off to a good start to the year.

Ken: We're on track to put our expansion projects in service, we're experiencing favorable performance across our businesses and have sanction additional projects.

Ken: We will also maintain our objective to provide great transparency to an extensive engagement with our investors and with that I'll turn it back to Kim for Q&A. Okay.

Ken: That will drive growth well into the future.

Ken: Finally.

Ken: Based on Investor feedback, we do not plan to host a regular investor day presentation in person going forward like we did this year. We will continue to publish an annual company update which will include our budget for the year, but won't post the presentation in person.

Ken: If youll come back on we will take questions.

Ken: Yes. The phone lines are now open for questions. If you would like to ask a question over the phone. Please press star one and record your name to withdraw your question Press Star two.

Ken: We will also maintain our objective to provide great transparency to an extensive engagement with our investors and with that I'll turn it back to Ken for Q&A. Okay.

Speaker Change: The first question in the queue is from Michael Blum with Wells Fargo. Your line is now open.

Michael Blum: Thanks, Good afternoon, everyone.

Wanted to start.

Ken: If youll come back on we will take questions.

Speaker Change: Talking about the potential additional gas pipeline investments that you are looking at with utilities and data centers, how would you characterize the pace of discussions with customers I guess since the last earnings call.

Ken: Yes. The phone lines are now open for questions. If you would like to ask a question over the phone. Please press star one and record your name to withdraw your question Press Star two.

Speaker Change: The first question in the queue is from Michael Blum with Wells Fargo. Your line is now open.

Speaker Change: Hey, Michael This is April yet so one I think as it pertains to data centers.

Michael Blum: Thanks, Good afternoon, everyone.

Speaker Change: Wanted to start talking.

There is still.

Speaker Change: Talking about the potential additional gas pipeline investments are that you are looking at with utilities and data centers.

Speaker Change: We tried to determine kind of the site specific locations that they are looking at where we are it's still evolving as.

As it pertains to the utilities that are supporting some of these data centers.

Speaker Change: Or would you characterize the pace of discussions with customers I guess since the last earnings call.

Speaker Change: As you can see we are actively pursuing opportunities to provide supply.

Two to ultimately feed these upcoming data centers and so I would say the activity level is pretty strong.

Speaker Change: Hey, Michael this is stable yeah. So one I think as it pertains to data centers.

There's a lot of competition out there across the network.

Speaker Change: You know there is still as we tried to determine kind of the site specific locations that they are looking at where we are it's still evolving.

Speaker Change: We feel like we're positioned well.

Speaker Change: You know as we talk about bridge into South Carolina.

Speaker Change: Just kind of step one the platform for growth has been established and we see some incremental opportunities around power and potentially datacenters there as we've got this drop it in.

Speaker Change: As it pertains to the utilities that are supporting some of these data centers.

Speaker Change: As you can see we're actively pursuing opportunities to provide supply.

Speaker Change: Two to ultimately feed these upcoming data centers and so I would say the activity level is pretty strong.

Speaker Change: And I'll just add a couple of things to that one if you'd look at.

Speaker Change: You know theres a lot of competition out there across the network, we feel like we're positioned well.

The additions to the backlog this quarter.

Approximately 70%.

Speaker Change: You know as we talk about bridge into South Carolina. You know this is just kind of step one are the platform for growth has been established and we see you know some incremental opportunities around power and potentially datacenters there as we've got this drop it in.

Speaker Change: Those are related to power, so sometimes it's hard to differentiate between what.

Speaker Change: Data center related and whats power because the power could be going to the data Center I'll also say if you look at our total backlog by 50% of the projects in our overall backlog are related to power.

Speaker Change: And I'll just add a couple of things without one if you'd look at.

The additions to the backlog this quarter.

Where we have seen I think the most concrete activity to date on data centers has been largely regulated utilities. Thus far now there is a there are lots of discussions going on as.

Speaker Change: Approximately 70%.

Speaker Change: Those are related to power so sometimes it's hard to differentiate between what data center related and whats power because of the power can be going to the data Center also say if you look at our total backlog by 50% of our projects and our overall backlog are related to a power where.

As <unk> said a lot of those discussions are happening across the southern United States.

And that scenario, where we are particularly well positioned.

Speaker Change: We have seen I think the most concrete activity today on data centers has been largely the regulated utilities.

Speaker Change: Thanks for all that was really helpful. Maybe if I could just drill down on one particular area of the region.

Speaker Change: Can you provide an update on any progress in Arizona.

Speaker Change: Now there is a you know there are lots of discussions going on as.

Speaker Change: Regarding either an expansion of the P&G or greenfield projects or just how you see that that area developing.

Speaker Change: Staple side, a lot of those discussions are happening across the southern United States and that's an area, where we are particularly well positioned.

Speaker Change: Sure Michael So.

Speaker Change: One we see a need.

Speaker Change: Yeah.

Speaker Change: Out in the Desert southwest Arizona included.

Speaker Change: Thanks for all that I was really helpful. Maybe if I could just drill down on one particular area of the region can.

Speaker Change: <unk> been pursuing both brownfield and Greenfield opportunities, we're trying to look at that obviously, if we're in a competitive.

Speaker Change: Can you provide an update on any progress in Arizona are regarding either an expansion of the V. P N G or a greenfield project or just how you see that that area developing thanks.

Speaker Change: Situation here as we get if we get any progress here from a customer standpoint, we will make those announcements at the time, but I can tell you. This.

There is interest.

Speaker Change: And we do see we do see a need.

Michael Blum: Sure Michael So one we see a need out.

Speaker Change: Out west, especially the state of Arizona.

Speaker Change: Out in the Desert southwest Arizona included.

Speaker Change: <unk> been pursuing both brownfield and Greenfield opportunities, we're trying to look at that obviously, if we're in a competitive situation.

Okay.

Speaker Change: Yeah.

Speaker Change: Situation here as we get if we get any progress here from a customer standpoint will make those announcements at the time, but I can tell you theres a theres there is interest.

Speaker Change: Tad will take the next question.

Speaker Change: Yes. The next question is from Jeremy Tonet with Jpmorgan. Your line is open.

Jeremy Tonet: Hi, good afternoon.

Speaker Change: And we do see there we do see a need at west, especially the state of Arizona.

Speaker Change: Afternoon.

Speaker Change: Maybe pick it up in Arizona and the potential for expansion for the West just wondering the docket that was opened in February the natural gas infrastructure storage docket.

Speaker Change: And then did I understand this.

Speaker Change: Vice Chair open are you expecting.

Tad: Tad will take the next question.

Speaker Change: Specific out there that will inform our views as far as timing and sizing of expansion further west.

Speaker Change: Yes. The next question is from Jeremy Tonet with J P. Morgan Your line is open.

Jeremy Tonet: Hi, good afternoon.

And just as you look even further out I think that there could.

Speaker Change: Afternoon.

Speaker Change: Maybe pick it up in Arizona, if he could and the potential for expansion for the West just wondering the docket that was opened in February the natural gas infrastructure storage docket.

Speaker Change: Could be on the horizon, and we'll need to source gas as well it seems like <unk> would be.

Speaker Change: And play there. So just wondering those two dynamics any thoughts you could share.

Speaker Change: Well.

Speaker Change: Chair open are you expecting anything specific out there that will inform our views are as far as timing and sizing of expansion further west.

Speaker Change: Once again I'm going to keep it broad just because we are in a very competitive situation, but.

Speaker Change: Both.

Speaker Change: The.

Speaker Change: And just as you look even further out I think that there you could you could be on the horizon and we'll need to source gas as well it seems like E. P. N G would be in play there. So just wondering those two dynamics any thoughts you could share.

Speaker Change: The overall demand.

Speaker Change: We see coming right and I think really both both the the docket youre talking about and through our conversations with our customers point to the need for incremental capacity needs.

Speaker Change: Well, just once again I'm going to keep it broad just because you know where we are in a very competitive situation, but boat.

Speaker Change: And you mentioned Deca.

Speaker Change: Longer term play, possibly but.

Speaker Change: All of that bodes to the need for incremental capacity and how we get there ultimately be decided by our customers and the contracts that they signed.

Speaker Change: The overall demand.

Speaker Change: We see coming right and I think really both both see the docket, you're talking about and and through our conversations with our customers point to the need for incremental capacity needs.

Speaker Change: And let me just make a couple of points overall.

Speaker Change: That's all of our data center development.

In Arizona, I think the Arizona utilities need more power, especially with all the population migration from California, and other places and the Arizona.

Speaker Change: And you mentioned Deca, you know that that's a longer term play possibly but.

Speaker Change: All of that bodes to the need for incremental capacity and how we get there ultimately we decided by our customers and the contracts that they thought.

Speaker Change: I think Mexico has a couple of power plants on the other side of the border that theyre going to need natural gas and you've got the LNG potential off the west coast. So yes. There is a lot of good demand factors our pipeline <unk> at all and so I think.

Speaker Change: And let me just make a couple of points overall, I mean, well.

Speaker Change: All of our data center development and.

Speaker Change: Arizona, I think the Arizona utilities need more power, especially with all the population migration from California, and other places and the Arizona.

There is something out there you would have to point out.

Speaker Change: But it is it is a nice opportunity and the demand drivers that are present and that we're talking about here on the wap or what we're seeing broadly across our whole network.

Speaker Change: I think Mexico has a couple of power plants on the other side of the border that theyre going to need natural gas far and you've got the LNG potential off the west coast. So yeah. There's a lot of tenant demand factors our pipeline <unk> at all and so I think that's it.

And one more thing to add.

Speaker Change: Not necessarily just a greenfield opportunity right. There are significant we are looking at brownfield opportunities smaller expansions that may make sense to unlock incremental capacity into the basin.

Speaker Change: It is something out there you would have to quantify them, but it is you know it is a nice opportunity and the demand drivers that are proud of that and you know that we're talking about here on the WAF or what we're saying you know broadly across our whole network.

Got it that's very helpful. There and then just a high level macro question, if I could we've seen <unk> dip towards 60 and briefly.

Speaker Change: And one more thing to add is.

Speaker Change: Below 60 here.

Speaker Change: Not necessarily just a greenfield opportunity right. There are significant you know, we're looking at brownfield opportunities smaller expansions that.

Speaker Change: Concerns with regard to potential economic weakness.

We just talked about in the opening comments there I'm just wondering as far as your conversations with your producer customers.

Speaker Change: It may make sense to unlock incremental capacity into the basin.

Speaker Change: Any any change in tone, there such as Debbie Ti does step down into the fifties and stays there for a while and baked into that.

Speaker Change: Got it that's very helpful. There and then just a high level macro question. If I could you know we've seen W. T. I a dip towards 60 and briefly you know below 60 here and you know concerns with regard to potential economic weakness ahead as Richard talked about in the opening comments there.

Speaker Change: Liquids driven economics, if you think that there could be.

Speaker Change: Changes in producer activity, there and how that could impact <unk>, although it's a smaller part of the business.

Speaker Change: Just wondering as far as your conversations with your producer customers are any any change in tone there such as if you know Debbie Ti does step down into the fifties and stays there for a while and based and said I have a liquids driven economics, if you think that there could be.

Speaker Change: Yeah.

Speaker Change: Our gathering business I think is roughly 8% of our overall business.

Speaker Change: And if you look at it to date you know I think it's too early to make any calls.

Speaker Change: We haven't the conversations that we have had with our producers they haven't made any changes.

Speaker Change: <unk> in producer activity, there and how how that could impact came I, although it's a smaller part of the business.

Speaker Change: I'd say, if you look at our gathering assets, you've got the Bakken which is.

Speaker Change: Yeah, I mean, our gathering business I think is roughly 8% of our overall business.

Speaker Change: Oil base, but <unk> are going up.

Speaker Change: And then obviously one of our largest position.

Speaker Change: And if you look at it today, you know I think it's too early.

Also in the Haynesville and dry natural gas play.

Speaker Change: Like any call.

Speaker Change: And I would say that the conversations there with our with our customers as Tom alluded to earlier have been more bullish where what they're talking about potentially adding reg.

No we havent the conversations that we have had with our producers they haven't made any changes.

Speaker Change: You know I'd say, if you look at our gathering assets, you've got the Bakken, which are oil based but <unk> are going up.

Speaker Change: What we are.

Speaker Change: Fact that previously now that will take time, and we won't see that benefit till later in the year, but I'd say there is.

Speaker Change: And then obviously you know one of our largest position is also in the Haynesville and there that the dry natural gas play and I'd say that the conversations there with our with our customers as Tom alluded to earlier have been more bullish where what they're talking about potentially adding.

Speaker Change: The natural gas side has been I think stronger than the conversations have been stronger than what we were originally expecting.

Speaker Change: Yes, and I guess to add one more comment to that when you think about our geographic basins that we're we have our gathering systems in most of our acreage is in kind of the the connections that we're on with tier one acreage. So if you go back to when we were in Covid.

Speaker Change: <unk>.

Speaker Change: Beyond what we are we expect that previously now that'll take time, and we won't see that benefit until later in the year, but I'd say you know there is a the natural gas side has been I think stronger than the conversations have been stronger than what we were originally expecting.

Speaker Change: I think we withstood the storm pretty well from a price standpoint.

Speaker Change: Even in a liquid plays.

Speaker Change: And the natural the natural offset that Kim was mentioning as the dry gas plays when that happens when we do see is we do see gas demand increasing and so if the associated gas capacity, if the associated gas kind of tapers off a little bit even though we didn't see that we actually saw an.

Speaker Change: Yeah, and I guess to add one more comment to that when you think about our geographic basins that we're we have our gathering systems in most of our acreage is in kind of the you know the connections that we're on with tier one acreage. So if you go back to when we were in Covid.

Speaker Change: The increase when crude fell off.

Speaker Change: I think we would stood the storm pretty well from a price standpoint expect even in a liquid plays.

Speaker Change: We will see a pickup in the haynesville in the dry gas Eagle Ford plays.

Speaker Change: Because the demand has to be met.

Speaker Change: And the natural the natural offset that Kim was mentioning as the dry gas players win when that happens well. We do see is we do see gas demand increasing and so if the associated gas capacity, if the associated gas kind of tapers off a little bit even though we didn't see that we actually saw an <unk> increase when when Brent crude fell off.

Speaker Change: Yeah.

Speaker Change: Got it thank you for that.

Speaker Change: The next question in the queue is from Manav Gupta with UBS. Your line is open.

Speaker Change:

Manav Gupta: Good afternoon, my question here little bit.

Manav Gupta: Energy equities in general have started pricing and a little bit of a recession you touch a lot of end markets, whether it's gas or refined products, even jet fuel in your system are you seeing.

Speaker Change: We will we'll see a pickup in the haynesville in the dry gas Eagle Ford plays.

Speaker Change: Because the demand has to be met.

Speaker Change: Okay.

Speaker Change: Got it thank you for that.

Manav Gupta: Any early signs of recessionary demand on what we see in the market just wanted to let the underlying demand in your system is holding up pretty well.

Speaker Change: The next question the cues from Manav Gupta with UBS. Your line is open.

Manav Gupta: Oh good afternoon. My question here little bit you know energy equities in general has started pricing in a little bit of a recession you touch a lot of end markets, whether it's gas or refined products even jet fuel.

Manav Gupta: Well I mean, I'd say, a couple of things on that.

Manav Gupta: So far I think were holding up pretty well.

But refined products volumes in the quarter were up 2%.

Manav Gupta: We saw strong natural gas demand I think we're going to continue to see strong natural gas demand because and growing natural gas demand over the course of the year because a lot of what is driving that is there is going to be the export of LNG and that those volumes are coming on and.

Manav Gupta: Your system are you seeing any early signs of recessionary demand or what we see in the market is just the volatility the underlying demand in your system is holding up pretty well.

Manav Gupta: Well I mean, I'd say, a couple of things on that.

Manav Gupta: So far I think were holding up pretty well.

Manav Gupta: But in our refined products volumes in the quarter were up two of course that you know we saw strong natural gas demand I think we're going to continue to see strong natural gas demand because and growing natural gas demand over the course of the year because a lot of what is driving that is there is gonna be the export of LNG.

Manav Gupta: A lot of those have take or pay contracts associated with them. So I think youre going to see uptake and gas demand over the course of the year and as Tom said, we've got we've got a refill storage. So one I think we're too early.

Manav Gupta: And two I think when you look at natural gas, which is 60% of our business I think there are some different factors that you really have to consider there then just.

Manav Gupta: And you know that those volumes are coming on and and a lot of those have take or pay contracts associated with them. So I think youre going to see uptake and gas demand over the course of the year and as Tom said, we've got the we've got a refill storage. So one I think we're too.

Manav Gupta: U S recessionary pressures.

Manav Gupta: That drive that demand.

Speaker Change: Thank you my quick follow up here can we get some more details about this new bridge project that you added to the backlog and the reason Im asking is last year, you announced the Mississippi costing project and within one month you ended up upsizing. The project. So what's the possibility of you Upsizing. This bridge project. Thank you.

Manav Gupta: And two I think you know when you look at natural gas, which is 60% of our business. I think there are some different factors that you really have to consider there than just you know U S recessionary pressures.

Manav Gupta: Well.

Manav Gupta: Look the possibilities are great, but im not going to comment on the timing.

Manav Gupta: Drive that demand.

Manav Gupta: Okay.

Obviously, our customers are going to dictate when we expand I will tell you South Carolina, one of the fastest growing state that we see out there demand is growing from a power side from a from a residential need standpoint.

Speaker Change: Thank you my quick follow up here is can we get some more details about this new bridge project that you added to the backlog and the reason I'm asking is last year, you announced the Mississippi costing project and we didn't one month you ended up upsizing. The project. So what's the possibility of you Upsizing. This bridge project. Thank you.

Manav Gupta: And.

Manav Gupta: Like I said the opportunity set around potential data centers could be there. So I think overall, we feel like we're positioned well for future growth platforms. There now.

Manav Gupta: Well.

Look the possibilities are great, but I'm not going to comment on the timing.

Manav Gupta: You know obviously, our customers are going to dictate when we expand I will tell you South Carolina is one of the fastest growing state that we see out there demand is growing from a power side from a from a residential need standpoint.

Manav Gupta: It helps us establish the platform. Once this project is completed and we're excited about the opportunity in South Carolina.

Manav Gupta: Thanks, so much.

Speaker Change: Next question the cues from John Mackay with Goldman Sachs. Your line is open.

Manav Gupta: And you know like I said the opportunity set around potential data centers could be there. So I think overall, we feel like we're positioned well for future growth platforms. There now.

Speaker Change: Hey, Tim Thanks for the time I wanted to pull a couple of days together.

Speaker Change: I think on the last call.

Speaker Change: You've kind of made the comment of saying Hey, we've done a lot of very big project announcements, maybe the pace of those will slow I think you showed today that youre still able to add.

Manav Gupta: It helps us establish the platform. Once this project is completed and we're excited about the opportunity in South Carolina.

Ton of small to medium sized ones to keep adding to that backlog is this.

Speaker Change: Thank you so much.

Speaker Change: Next question the cues from John Mackay with Goldman Sachs. Your line is open.

Speaker Change: Not to put you on the spot was this a outsized kind of win or is this the kind of more regular way kind of backlog additions we could.

John Mackay: Hey team. Thanks for the time I wanted to pull a couple of days together you know I think in the last call you.

Speaker Change: To see from here.

Speaker Change: Yeah.

Speaker Change: It's hard to predict I think what exactly what we're going to be adding to the backlog but.

John Mackay: You've kind of made the comment of saying Hey, we've we've done a lot of very big project announcements, maybe the pace of those little slow I think you showed today that you're still able to add a ton of small to medium sized ones to keep adding to that backlog is this you know not to put you on the spot was this a outsized kind of win or is this the kind of you know more regular way kind of backlog.

Speaker Change: We've been saying this long haul I mean, the demand drivers behind the natural gas industry, which is over 60% of our business are very strong whether you look at LNG and rich pointed out there.

John Mackay: <unk> we could.

John Mackay: I expect to see from here.

Speaker Change: If you look the LNG demand is expected to double and most of that is.

John Mackay: I mean.

John Mackay: It's hard to predict I think what exactly what we're gonna be adding to the backlog but.

Speaker Change: You're going to be driven by projects that are <unk>.

John Mackay: You know what we've done.

John Mackay: Saying this long haul I mean, the demand drivers behind the natural gas industry, which is over 60% of our business are very strong whether you look at LNG and enrich pointed out there are that if you look the LNG demand is expected to double and most.

Speaker Change: Need or under construction and then he also pointed out.

Speaker Change: All of these as we go through tariff negotiations with some of these countries.

Speaker Change: Them buying natural gas from the U S may be a way that they thought the balance of payments with the U S.

Speaker Change: And so even if you're in a potential trade war with China.

John Mackay: <unk> of that is going to be driven by projects that are <unk> or under construction and then he also pointed out that some of these as we go through the tariff negotiations with some of these countries.

Speaker Change: Their demand.

Speaker Change: Make up for that or actually be greater than what the demand coming out of China with <unk>, because as rich pointed out they havent been taking very much and novel and LNG demand spent over 17 Bcf setting record.

John Mackay: Them buying natural gas from the U S may be a way that they solved the balance of payments with the U S.

Speaker Change: I think from the perspective of power NII when you look at AI.

John Mackay: And so even if you're in a potential trade war with China, there's other demand that could make up for that or actually be greater than what the demand coming out of China with anybody because as rich pointed out they havent been taking very much and that holds and the LNG demand spent over 17 Bcf setting record.

Speaker Change: I think that is going to be and our national security interest.

Speaker Change: When the AI.

Speaker Change: And so I think youll continue to see demand for AI and I think also is the cough there rich.

Speaker Change: Rich talked a little bit about <unk>.

Speaker Change: What you're hearing and what we've heard from a lot of the technology players as the cost of that technology comes down.

Speaker Change: Well I think from the perspective of power NII when you look at AI.

Speaker Change: Expect more people to use that and so that demand.

Speaker Change: I think that is going to be and our national security interests.

Speaker Change: That demand drivers firmly in place and then if we get more American manufacturer and vast.

Speaker Change: When the AI.

Speaker Change: And so I think you'll continue to see demand for AI and I think also as the cost there.

Speaker Change: I think.

Speaker Change: Rob.

Speaker Change: Demand growth for natural gas. So I think when you look at that and you say so what is your outlook for projects look like and it continues to be a robot.

Speaker Change: Rich talked a little bit about D C, but I think what you're hearing and what we've heard from a lot of the technology players as is the cost of that technology comes down we would expect more people to use that and so that demand.

Speaker Change: Outlook and I will tell you that.

Speaker Change: <unk> added 900.

Speaker Change: On a gross basis.

Speaker Change: That demand drivers firmly in place and then if we get more American manufacturer and that's why I think.

Speaker Change: The backlog.

Speaker Change: Today Theres, another $400 million projects that our board approved today roughly $400 million you know that we are close to signing contracts. So they approved on a contingent basis and we have added to the backlog because we don't add to the backlog until those contracts are signed so.

Speaker Change: Al will drive.

Speaker Change: Demand growth for natural gas. So I think when you look at that and you say so what is your outlook for projects look like and it continues to be a robust out our outlook and I will tell you that you know the.

Speaker Change: Added 900 on a gross basis.

Speaker Change: I think you can hear that I think we feel even in the current economic environment, where there is a lot of volatility out there we feel very good about our business and the opportunity set that we have in front of us.

Speaker Change: So the backlog.

Speaker Change: <unk>.

Speaker Change: You know today, there's another $400 million projects that our board approved today roughly $400 million you know that we are close to signing contracts. So they approved on a contingent basis and we haven't added to the backlog because we don't add to the backlog until those contracts are signed so I think yeah.

Speaker Change: Yes, I would just add that we have 70000 miles of gas pipelines, we moved 40% of the gas in America and beyond that were located in the right places all of this LNG feed gas demand the great bulk of it is along the Gulf Coast a great part of the electric generation growth is also in the <unk>.

Speaker Change: You can hear that I think we feel even and the current economic environment, where there is a lot of volatility out there we feel very good about our business and the opportunity set that we have in front of us.

Speaker Change: South Eastern United States, and along the Gulf Coast. So if you just look at where we operate and the size of our operations I think theres every opportunity to expand our positions and coming back to <unk> to answer a couple questions ago, the ability to expand off of these expansions that we've already announced.

Speaker Change: No I would just add that we have 70000 miles of gas pipelines, we moved 40% of the gas in America and beyond that were located in the right places all of this LNG feed gas demand the great bulk of it is along the Gulf Coast a great part of the electric generation growth is also in the south.

Speaker Change: There's going to be incredible over the next several quarters, we believe.

Speaker Change: Eastern United States and along the Gulf Coast. So if you just look at where we operate and the size of our operations I think theres every opportunity to expand our positions and coming back to see if those answer a couple of questions ago, the ability to expand off of these expansions that we've already announced.

Speaker Change: Rich I appreciate that and maybe just one follow up Jim you mentioned permitting really for reform earlier in the call. Just curious if you can give us kind of like latest state of play there and then specifically just maybe related note bridge coming online in 2030.

Speaker Change: Not outside the realm of normal kind of FERC timelines, but maybe if you can kind of tie that into your view on kind of how long it takes to get things permanent now and where that could maybe go if we get some relief.

Speaker Change: There's going to be incredible over the next several quarters, we believe.

Speaker Change: Yeah, Rich I appreciate that and maybe just one follow up Kim you mentioned permitting really for reform earlier in the call. Just curious if you can give us kind of like latest state of play there and then specifically just on maybe a related note you know bridge coming online in 'twenty 30, not outside the realm of normal kind of.

Speaker Change: Yeah, I think we've had some conversations with the administration on what the energy dominance counsel and I think those have all been.

Speaker Change: Positive conversations with everybody focused on how do we get these projects and service earlier and so.

Speaker Change: RC timelines, but maybe if you can kind of tie that into your view on kind of how long it takes to get things permanent now and where that could maybe go if we get some relief.

Speaker Change: You will see that we made a filing with the FERC on Monday.

Speaker Change: This week.

Speaker Change: And that could.

Speaker Change: Yeah.

Speaker Change: We've had some conversations with the administration on what their energy dominance counsel and I think those have all been positive conversations with everybody focused on how do we get these projects are in service our layer and so.

Speaker Change: That could.

Speaker Change: Accelerate timing on permits by up to five months.

Speaker Change: We'll have to see what the park Plaza.

Speaker Change: But I think the administration will be supportive of that I think <unk> seen the core come out and St. Louis Office announced.

Speaker Change: You will see that we made a filing with the FERC on Monday.

Speaker Change: Put out.

Speaker Change: Our preliminary guidance and then one of the other core officers put out final guidance, which reduces timeframes.

This week.

Speaker Change: And you know that could.

Speaker Change: That could ask.

Speaker Change: Accelerate timing on permits by up to five months.

Speaker Change: We've had very positive interactions with <unk>.

Speaker Change: We'll have to see what the part of dogs with that said I think the administration will be supportive of that I think you've seen the core come out and St. Louis Office are announced.

Speaker Change: Parks and.

Speaker Change: With fashion. So I think everybody is working in the same direction to try to get these these projects in service early now obviously, if we can get the.

Speaker Change: Put out some preliminary guidance and then one of the other core officers put out final guidance, which reduces timeframe we've.

Speaker Change: Yeah.

Speaker Change: The permitted earlier than we've got to move to the supply chain.

Speaker Change: That will be somewhat of a challenge, but we will be looking at ways to get.

Speaker Change: We've had very positive interactions with <unk>.

Speaker Change: To reduce the time that it takes to get there.

Speaker Change: At parks and and with fashion. So I think everybody is working in the same direction to try to get these all these projects in service early now obviously, if we can get the.

Speaker Change: These materials on.

Speaker Change: To the right away and then we will be looking at whether if we can't get the whole project and service can we get portions of the project in service early that bring good economic value.

Speaker Change: Yeah.

Speaker Change: The permitted earlier and we've got to move to the supply chain I think that.

Speaker Change: I think we've seen.

Speaker Change: Very good.

Speaker Change: That will be somewhat of a challenge, but we will be looking at ways to get.

Speaker Change: We've seen a commitment from the administration to try to expedite the timing Amit I'd also say from a deregulation perspective, we've seen good progress I think the good neighbor rule as it was drafted is essentially is essentially that you've seen the greenhouse gas reporting.

Speaker Change: To reduce the time that it takes to get there.

Speaker Change: These materials are onto the right away and then we'll be looking at whether if we can't get the whole project and service can we get portions of the project in service early that bring good economic value.

Speaker Change: And from the SEC.

Speaker Change: We've seen.

Speaker Change: From their support for that.

Speaker Change: Very good Oh, we've seen a commitment from the administration to try to expedite the timing Amit I'd also say from a deregulation perspective, we've seen you know good good progress I think the good neighbor rule as it was drafted is essentially is essentially that.

Speaker Change: And then you've seen other actions out of EPA, where theyre proposing too.

Ted I get rid of certain regulations so.

Speaker Change: I think all in all.

Speaker Change: Most of what the administration is doing is very.

Very positive or.

Speaker Change: Industry.

Speaker Change: Saying that greenhouse gas reporting from the se they've withdrawn their support for that and then you've seen other actions out of EPA, where theyre proposing to.

Speaker Change: Thanks for the time I appreciate it.

Speaker Change: The next question is from Theresa Chen with Barclays. Your line is open.

Theresa Chen: Hello, and thank you for taking my questions first congratulations to Tom for his retirement and also congratulations to Dan and Mike for stepping into their new roles.

Speaker Change: I get rid of certain regulations so.

Speaker Change: I think all in all.

Speaker Change: Most of what the administration is doing is very.

Speaker Change: Very positive for our industry.

Theresa Chen: I'd like to start by asking you for an update on your strategy in the Bakken.

Speaker Change: Thanks for the time I appreciate it.

Theresa Chen: On the heels of dockworker acquisition, coupled with the upcoming double H conversion to Ngls what are the next steps here and working to capture more economic to telling you in that value chain.

Speaker Change: The next question is from Theresa Chen with Barclays. Your line is open.

Theresa Chen: Glamour and thank you for taking my questions first congratulations to Tom for his retirement and also congratulations to Dan and Mike for stepping into their new roles.

Speaker Change: Hi, Theresa this is stable so one I think.

Speaker Change: The integration of the outrigger plant has gone very well, we've got it embedded into our operations I think the next step is.

Theresa Chen: I'd like to start by asking you for an update on your strategy in the market and on the heels of Dockworker acquisition, coupled with the upcoming couple H conversion to Ngls what are the next steps here and working to capture more economic to telling you in that value chain.

Speaker Change: Looking for operational synergies like I said strategically for US we've got a plant north of the river up in the Bakken, which complements our existing footprint.

Speaker Change: When you couple that with our residue takeaway and now our planned NGL takeaway.

Theresa Chen: Oh, Hi, Theresa. This is there's also a one I think.

Speaker Change: Just looking strategically at.

Theresa Chen: The integration of the outrigger plant has gone very well, we've got it embedded into our operations I think the next step is.

Speaker Change: Further elements of the value chain that that's really what I would say to this.

Speaker Change: At this point, obviously up there we're in a very competitive situation on the NGL side, So I won't comment until we get incremental contracts signed.

Theresa Chen: Looking for operational synergies like I said strategically for US we got a plant north of the river up in the Bakken, which complement our existing footprint.

Speaker Change: But needless to say, we are looking at ways to add incremental value and capture more of that full value chain.

Theresa Chen: When you couple that with our residue takeaway and now our planned NGL take away.

Speaker Change: Yes.

Speaker Change: Yes.

Theresa Chen: Just looking strategically at.

Speaker Change: Did I answer your question.

Speaker Change: Yeah.

Speaker Change: Yes.

Theresa Chen: Further elements of the value chain that that's really what I would say to this at this point, obviously up there we're in a very competitive situation on the NGL side. So I won't comment until we get incremental contracts signed.

Speaker Change: Alright as much as you can at this point thank you.

Speaker Change: On that.

Speaker Change: Liquid side of things and just looking towards the pending closures of refineries in California with another one announced this morning.

Theresa Chen: But needless to say, we're looking at ways to add incremental value and capture more of that full value chain.

Speaker Change: How much volumetric exposure or EBITDA.

Theresa Chen: Yes.

Theresa Chen: Did I answer your question.

Speaker Change: And passion for your.

Theresa Chen: Yes, or as much as you can at this point thank you.

Speaker Change: Impact to your California pipeline and terminal assets within the product segment.

Speaker Change: [noise] on that Oh liquid side of things and just looking towards the pending closures of refineries in California with another one announced this morning, Hum volumetric exposure or EBITA and dish and passion for your.

Speaker Change: Yes.

Speaker Change: We don't think it will I mean, the announcement you saw today. It certainly is not the first announcement.

Speaker Change: On a refinery closure.

Speaker Change: It won't be the last one.

Speaker Change: But.

Speaker Change: The key to the.

Speaker Change: The throughput on our pipelines is the demand at the end of our pipelines and as long as the demand exists there as long as people in the interior, California, and Nevada and Arizona.

Theresa Chen:

Theresa Chen: The impact to your California pipeline and terminal assets within the product segment.

Theresa Chen: Yeah.

Theresa Chen: We don't think it will I mean, the announcement you saw today. It certainly is not the first announcement.

Speaker Change: Driving and flying that demand.

Speaker Change: We will still be there and we think that our pipelines are the safest the most economic way to get that product. There. So the sources of supply may change it may not be coming from the same refineries. Other refineries may make up for you may have waterborne barrels coming in either from Washington State or Asia.

Theresa Chen: On a refinery closure and it probably won't be the last one.

Theresa Chen: But.

Theresa Chen: The key to.

Theresa Chen: The key to the throughput on our pipelines is the demand at the end of our pipelines and as long as the demand exists there as long as people in the interior, California, and Nevada, and Arizona are driving and flying that demand will still be there and we think that our pipelines are the safest and most economic way to get that product there. So the sources.

Speaker Change: But we still think that the product has to get to the end markets and where the best towards sport.

Speaker Change: Thank you.

Speaker Change: The next question comes from Neal Dingmann with <unk> Securities. Your line is open.

Theresa Chen: The supply may change it may not be coming from the same refineries. Other refineries may make up for you may have waterborne barrels coming in either from Washington State or Asia.

Neal Dingmann: Good afternoon, and thanks for the time My first question focuses just on M&A specifically it seems like given you all continue to be focused more on the natural gas demand Mega trends I'm. Just wondering would you all consider selling down some energy transition assets to fund these gas initiatives.

Theresa Chen: But we still think that the product has to get to the end markets and where the best choice for it.

Theresa Chen: Thank you.

Speaker Change: Well again.

Speaker Change: The next question comes from Neal Dingmann with true Securities. Your line is open.

Neal Dingmann: But we like the assets that we own.

Speaker Change: Good afternoon, and thanks for the time My first question focuses just on M&A specifically it seems like given you all continue to be focused more on the natural gas demand Mega trends I'm. Just wondering would you all consider selling down some energy transition assets to fund these gas initiatives.

Neal Dingmann: And I think right now we're fully able to fund our capex out of out of existing cash flow.

And so I don't think selling assets is.

Neal Dingmann: The best way generally.

Neal Dingmann: <unk>.

Neal Dingmann: Hello.

Neal Dingmann: We like the assets that our strategy and not the best way to fund growth and so we're going to fund our growth out of cash flow. We have we have capacity on our balance sheet.

Speaker Change: Well I guess you know.

Speaker Change: But we like the assets that we own.

Speaker Change: And I think right now we are fully able to fund our capex out of out of existing cash flow.

Neal Dingmann: Said that.

Neal Dingmann: Should we exceed cash flow and existing here with respect to expansion Capex.

Speaker Change: And so I don't think selling assets as you know.

Speaker Change: The best way General HR sometime.

Neal Dingmann: And then I think also if.

Neal Dingmann: If we ever wanted partners on something we can bring in partners on new project.

Speaker Change: And so we like the assets that our strategy and not the best way to fund growth and so we're going to fund our growth out of cash flow. We have a we have capacity on our balance sheet.

Neal Dingmann: At a very attractive cost of capital so.

Neal Dingmann: I don't look at selling those assets being the best for us.

Speaker Change: Should that.

Speaker Change: Should we exceed cash flow and existing here with respect to expansion Capex.

Speaker Change: No that makes sense and then Kim just something you talked about earlier just you all mentioned in the prepared remarks, just the turbulent times is that does that give you more do you think opportunities to I don't know necessarily buy distressed assets, but but it seems like there's still a lot of smaller deals out there.

Speaker Change: And then I think also if.

Speaker Change: If we ever wanted partners on something we could bring in partners on on New project at a very attractive cost of capital. So.

Neal Dingmann: Turbulent times like this provide maybe even more opportunities.

Speaker Change: I don't look at selling those assets things like that.

Neal Dingmann: Here's what I would say I'll take early and turbulence I would say that people tend to back away from the market a little bit.

Speaker Change: Asked twice.

Speaker Change: No that makes sense and then Kim just something that just you talked about earlier just you all mentioned in the prepared remarks, just the turbulent times does that mean does that give you more or do you think opportunities to I don't know necessarily buy distressed assets, but but you know it seems like there's still a lot of smaller deals out there does turbulent times like this provide maybe even more opportunities.

Neal Dingmann: Things settle out.

Neal Dingmann: Over the longer term if the turbulence causes people to get in trouble I think that would present opportunity for us over time.

Neal Dingmann: Well said thank you so much.

Speaker Change: Next question is from Keith Stanley with Wolfe Research Your line is open.

Speaker Change: Here's what I would say I'll take early and turbulence I would say that people tend to back away from the market a little bit to just one.

Keith Stanley: Hi, good afternoon.

Speaker Change: Wanted to start this statement in the release on pursuing substantial amount of additional LNG feed gas opportunities.

Speaker Change: Let things settle out.

Speaker Change: Over the longer term if the turbulence causes people to get in trouble I think that would present opportunity for us over time.

Speaker Change: Or are you mainly competing to serve new under construction facilities or is that redundancy projects for existing LNG and then relatedly any any update on commercial progress on expansion of training at some point.

Speaker Change: Well said thank you so much.

Speaker Change: Yeah.

Keith Stanley: Next question is from Keith Stanley with Wolfe Research Your line is open.

Keith Stanley: Hi, good afternoon.

Speaker Change: Sure. So so important to your first question on the on the incremental LNG demand I think.

Keith Stanley: Wanted to start a statement in the release on pursuing substantial amount of additional LNG feed gas opportunities or are you mainly competing to serve new under construction facilities or that redundancy projects for existing LNG and then relatedly any any update on commercial progress on <unk>.

Speaker Change: It's a combination where we're looking at new.

Speaker Change: No.

Speaker Change: To be able to supply new facilities that are looking to Friday and some that are very close to <unk> and we're also looking at folks that are optimizing their existing systems looking for diversity of supply. It's in all of the above approach and I think we're talking to both sides there.

Keith Stanley: Spansion of tried it at some point.

Keith Stanley: Sure. So so important to your first question on the on the incremental LNG demand I think it is.

Speaker Change: On your latter question in terms of.

Keith Stanley: It's a combination where we're looking at new compete to be able to supply new facilities that are looking to F. I D and some that are very close to half I doing in we're also looking at folks that are optimizing their existing systems looking for diversity of supply. It's in all of the above approach and I think we're talking to both sides there.

Speaker Change: Progress.

Speaker Change: And I just want to make sure.

Speaker Change: If you could just repeat the last question.

Speaker Change: Right right, yes, so progress on Trident.

Speaker Change: We're making we've made we've made significant strides here, where we're close to.

Speaker Change: Possibly expanding the scale of the project and hopefully here in the next quarter or so we will have some positive news to announce but.

Keith Stanley: On your latter question in terms of.

Speaker Change: Making good progress there's a lot of interest.

Keith Stanley: Progress.

Speaker Change: When we think about.

Keith Stanley: And I just want to make sure.

The the west to East movement that we've been talking about for some time.

Keith Stanley: If you could just repeat the last question just on.

Keith Stanley: Right right, Yeah, so progress on Trident.

Speaker Change: It's a continued theme there that we're seeing.

Keith Stanley: We made it we made some we've made significant strides here, where we're close to.

Speaker Change: Great. Thanks for that second one I just wanted to try again on the double H conversion, because it's kind of sneaking up on US early next year or are the contracts you have with customers today to bring Ngls to gearing to Guernsey or did they go further than that and I think you referenced in the prior question one.

Keith Stanley: Possibly expanding the scale of the project and hopefully here in the next quarter or so we'll have some positive news to announce but.

Keith Stanley: Making good progress there are a lot of interest.

Keith Stanley: About.

Keith Stanley: The the west to East movement that we've been talking about for some time. It's a continued theme there that we're seeing.

Speaker Change: <unk> to secure incremental contracts can you elaborate at all on the strategy there.

Speaker Change: Great. Thanks for that second one I just wanted to try again on the double H conversion, because it's kind of sneaking up on US early next year or are the contracts you have with customers today to bring ngls to to Guernsey or did they go further than that and I think he referenced in the prior.

Speaker Change: Well so at the risk of informing the competition I'm going to I'm going to pause on this.

Speaker Change: Detailed strategy, but I will tell you we are looking at getting molecules to both Conway and Mont Belvieu.

Speaker Change: Very high level.

Speaker Change: And in terms of trying to garner incremental volumes I think there is opportunities for us to to add to the portfolio in terms of volumes that we move down double H and.

Speaker Change: And wanting to secure incremental contracts can you elaborate at all on the strategy there.

Speaker Change: Well so at the risk of informing the competition I'm going to I'm going to pause on this you know.

Speaker Change: Probably all I'm going to tell you today I know Theresa tried earlier, but that's it.

Speaker Change: Detailed strategy, but I will tell you you know we are looking at getting molecules to both Conway and Mont Belvieu at a very high level.

Speaker Change: Understood. Thanks.

Speaker Change: Next question is from Zach <unk> with Tpa <unk>. Your line is open.

Speaker Change: And in terms of trying to garner incremental volumes I think there's opportunities for us to to add to the portfolio in terms of volumes that we move down double H and that's that's.

Speaker Change: Hi, Thanks for taking my question, maybe going back to the Haynesville.

Speaker Change: You mentioned growth in the 25 and 26 and we tend to agree with that statement could you just remind us I know you guys had the projects in 2005 for 340, a day for the Haynesville.

Speaker Change: Probably all I'm going to tell you today I know Theresa tried earlier, but that's it.

Speaker Change: Understood. Thanks.

Speaker Change: Could you remind how much capacity is open once those projects are online for that system.

Speaker Change: Next question is from it zach than ever and with T. P. H. Your line is open.

Speaker Change: Hi, all thanks for taking my question, maybe going back to the Haynesville. You know you mentioned growth in the 25 and 26 and we tend to agree with that statement could you just remind us I know you guys had the projects in 'twenty five for 340, a day for the Haynesville.

Speaker Change: Yeah. So.

Speaker Change: When we talk about hydraulic capacity in the Haynesville if I if I recall last January we were talking and we were kind of approaching capacity.

Speaker Change: And then we were planning on executing some projects in the second and third quarters, obviously in the price environment last year, we kind of fell off from a volume standpoint, I can tell you today, we're kind of approaching that same point. We are so we've got a little bit of flex in the system.

Speaker Change: Can you remind how much capacity is open once those projects are online for that system.

Speaker Change: Yes so.

Speaker Change: When we when we talk about hydraulic capacity in the Haynesville if I if I recall last January we were talking and we were kind of approaching capacity.

Speaker Change: But I can but what we see here is that across the summer I think we're going to be back at capacity in the Haynesville and we are actually discussing how do we get ahead of it once again.

Speaker Change: And then we were planning on executing some projects in the second and third quarters.

Speaker Change: So I think theres opportunities there for us to put some once again very capital efficient capital in terms of.

Speaker Change: Obviously in the price environment last year, we kind of fell off from a volume standpoint, I can tell you today, we're kind of approaching that same point. We are so we've got a little bit of flex in the system.

Speaker Change:

Speaker Change: Unlocking incremental capacity, but we've got to stay close to our producers and we're obviously going to be very cautious to make sure that we see those volumes coming and then put in the capacity.

Speaker Change: But I can.

Speaker Change: What we see here is that across the summer I think we're gonna be back at capacity in the Haynesville and we are actually discussing how do we get ahead of it once again.

Speaker Change: Perfect that makes sense and then maybe moving over to Texas Your announcement on the <unk> pipeline.

Speaker Change: So I think theres opportunities there for us to put some once again very capital efficient capital.

Speaker Change: Pretty low capital spend there is there opportunity to upscale that or have other opportunities on your intrastate system within taxes around whether it's power or data center demand.

Speaker Change: Terms of.

Speaker Change:

Speaker Change: Unlocking incremental capacity, but we've got to stay close to our producers and we're obviously going to be very cautious to make sure that we see those volumes coming and then put in the capacity.

Speaker Change: Yeah sure. So look that the Houston power. Gen Project is an example of kind of what we're trying to pursue.

Speaker Change: Perfect that makes sense and then maybe moving over to Texas Your announcement on the chaos pipeline.

Speaker Change: While relatively it may be small in scale compared to everything else, we've been talking about it.

Speaker Change: So pretty low capital spend there is there opportunity to upscale that or you don't have other opportunities on your intrastate system within taxes around whether it's power or data center demand.

Speaker Change: It's a pretty once again very capital efficient project.

Speaker Change: We just put in our central Texas pipeline right that they've talked to David talked about we put that into service. That's a 30 inch trunk that basically feeds off of PHP into the Austin area.

Speaker Change: Yeah sure. So look that that the Houston power. Gen project is an example of kind of what we're trying to pursue.

Speaker Change: Obviously, theres a lot of activity in and around that area, we're exploring power opportunities.

Speaker Change: <unk>, while relatively it may be small in scale compared to everything else, we've been talking about it.

Speaker Change: There is organic growth there and then we're also exploring some datacenter opportunities in that area. So I think we are we are positioned well with the platform and as rich talked about you know you got the strong there and then theres the ancillary fees that we can do on top of that strong.

Speaker Change: It's a pretty once again very capital efficient project.

Speaker Change: We just put in our central Texas pipeline right that they've talked to David talked about.

Speaker Change: Put that into service. That's a you know a 30 inch trunk that basically feeds off of P. H P into the Austin area, obviously, theres a lot of activity in and around that area. We're exploring power opportunities are there's organic growth. There and then we're also exploring some data center opportunities in that area. So I think you know we.

Speaker Change: So lots of activity on the intrastate systems.

Speaker Change: I think both the Houston power Gen to South, Texas to Houston, and Central Texas are all examples of.

Speaker Change: Capital efficient projects that can garner.

Speaker Change: We are we are positioned well with the you know the platform and as rich talked about you know you got the strong there and then theres the ancillary fees that we can do on top of that strong.

Speaker Change: Very good opportunities.

Speaker Change: Yes that makes sense.

Speaker Change: So I appreciate the time.

Speaker Change: Absolutely.

Speaker Change: So lots of activity on the intrastate systems.

Speaker Change: And Im showing no further questions at this time.

Speaker Change: I think both the Houston power agenda, South, Texas to Houston, and Central Texas are all examples of very capital efficient projects that can garner.

Speaker Change: Okay. Thank you very much have a good evening.

Speaker Change: This concludes today's call. Thank you for your participation you may disconnect at this time.

Speaker Change: Very good opportunities.

Speaker Change: Yeah.

Speaker Change: Yeah that makes sense I appreciate the time.

Speaker Change: Absolutely.

Speaker Change: And I'm showing no further questions at this time.

Speaker Change: Okay. Thank you very much have a good evening.

Speaker Change: This concludes today's call. Thank you for your participation you may disconnect at this time.