Q3 2025 Kinder Morgan Inc Earnings Call

Speaker #2: Good afternoon and thank you for standing by . Welcome to the third quarter , 2025 Earnings Results . Conference call . Your lines are in a listen only mode until the question and answer session of today's conference .

Operator: Good afternoon, and thank you for standing by. Welcome to the third quarter 2025 earnings results conference call. Your lines are in a listen-only mode until the question and answer session of today's conference. At that time, you may press star followed by the number one to ask a question. Please unmute your phone and state your first and last name when prompted. Today's conference is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan Inc.

Speaker #2: At that time, you may press star, followed by the number one, to ask a question. Please unmute your phone and state your first and last name when prompted.

Speaker #2: Today's conference is being recorded . If you have any objections , you may disconnect at this time . It is now my pleasure to turn the call over to Mr. Richard Kinder , Executive Chairman of Kinder Morgan .

Speaker #3: Thank you Michel . As usual , before we begin , I'd like to remind you that Cmi's earnings release today and this call include forward looking statements within the meaning of the private securities litigation Reform Act of 1995 and the Securities and Exchange Act of 1934 , as well as certain non-GAAP financial measures .

Rich Kinder: Thank you, Michelle. As usual, before we begin, I'd like to remind you that KMI's earnings release today and this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Act of 1934, as well as certain non-GAAP financial measures. Before making any investment decision, 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 filings 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. I think we all recognize the positives and negatives of publicly traded companies.

Speaker #3: Before making any investment decision , we strongly encourage you to read our full disclosure 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 filings 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 #3: I think we all recognize the positives and negatives of publicly traded companies . One of the biggest pitfalls is the undue concentration on quarter to quarter or even day to day issues .

Rich Kinder: One of the biggest pitfalls is the undue concentration on quarter-to-quarter or even day-to-day issues, many of which are relatively inconsequential in terms of the long-term success of the enterprise. With that in mind, I thought I'd take this opportunity to stress two important substantive factors that will impact the future of Kinder Morgan Inc.: the natural gas story and the long-term strategy of our company. Obviously, the two are intimately related. On the natural gas demand front, there are two huge drivers. The first is the continued rapid growth in LNG feed gas demand, driven by the enormous expansion of export facilities, primarily along the Gulf Coast. While industry experts differ somewhat, there's a pretty broad consensus that demand will at least double between 2024 and 2030.

Speaker #3: Many of which are relatively inconsequential in terms of long term success of the enterprise . With that in mind , I thought I'd take this opportunity to stress two important substantive factors that will impact the future of Kinder Morgan .

Speaker #3: The natural gas story and the long term strategy of our company . Obviously , the two are intimately related . On the natural gas demand front , there are two huge drivers .

Speaker #3: The first is the continued rapid growth in LNG , feed gas demand , driven by the enormous expansion of export facilities , primarily along the Gulf Coast .

Speaker #3: While industry experts differ somewhat , there's a pretty broad consensus that demand will at least double between 2024 and 2030 . In fact , S&P commodity Insights recently estimated that that increase at 130% , which implies a demand of 31 to 32 BCF a day in 2030 .

Rich Kinder: In fact, S&P's Commodity Insights recently estimated that increase at 130%, which implies a demand of 31 to 32 BCF a day in 2030. As an example of this growing demand, six LNG projects have reached FID so far in 2025. Feed gas demand for those facilities alone, when completed, will be 9 BCF a day. Now, there's more variance in assessing the impact of the second driver, which is the increasing demand for electricity, primarily to serve AI data centers. There will clearly be huge additional demand for electricity, but how much of that will be captured by natural gas? Let's look at the alternatives. Certainly, renewables will play a major role but can't handle the entire load, given AI needs for uninterrupted power 24/7, not just when the sun is shining or the wind is blowing.

Speaker #3: As an example of this growing demand, six LNG projects have reached FID so far in 2025. Feed gas demand for those facilities alone, when completed, will be 9 Bcf a day.

Speaker #3: Now there's more variance in assessing the impact of the second driver , which is the increasing demand for electricity primarily to serve AI data centers .

Speaker #3: They will clearly be huge . Additional demand for electricity , but how much of that will be captured by natural gas ? Let's look at the alternatives .

Speaker #3: Certainly , renewables will play a major role , but can't handle the entire load . Given AI needs for uninterrupted power , 24 over seven , not just when the sun is shining or the wind is blowing .

Speaker #3: But can't this be fixed by pairing wind or solar farms with massive batteries that store power and release it in a steady stream when needed?

Rich Kinder: Can't this be fixed by pairing wind or solar farms with massive batteries to store power and release it in a steady stream when needed? That sounds intriguing, but there are serious drawbacks to this option because batteries are expensive and limited in the time they can cover. Renewables of the size to serve AI data centers require enormous space. A recent article in The New York Times, of all places, estimated that to continuously produce just one gigawatt, a solar farm would need 12.5 million solar panels, enough to cover 5,000 football fields, and wind turbines would require even more space. Another source of power is nuclear, which generates steady power from a relatively small footprint. This is an industry that, unfortunately, has been basically dormant for over 40 years, and new nuclear facilities are very expensive and would likely take seven to ten years to come online.

Speaker #3: Well, that sounds intriguing, but there are serious drawbacks to this option because batteries are expensive and limited in the time they can cover.

Speaker #3: And renewables of the size to serve AI centers require enormous space . A recent article in The New York Times , of all places , estimated that to continuously produce just one gigawatt of solar farm would need 12.5 million solar panels , enough to cover 5000 football fields and wind turbines would require even more space .

Speaker #3: Another source of power is nuclear, which generates steady power from a relatively small footprint. But this is an industry that, unfortunately, has been basically dormant for over 40 years.

Speaker #3: New nuclear facilities are very expensive and would likely take 7 to 10 years to come online. This means that AI sponsors would not have the facilities when needed and would be gambling billions of dollars that the demand will still be there.

Rich Kinder: This means that AI sponsors would not have the facilities when needed and would be gambling billions of dollars that the demand will still be there a decade or so from now. That leaves natural gas, which is abundant and reasonably priced, and the infrastructure to produce power from natural gas is relatively quick to build. Recently, like I've just outlined, is why we believe that AI data center needs will supplement in a very meaningful way the tremendous increases in LNG feed gas demand. In combination, the two drivers will ensure a huge and growing market for natural gas in the years and decades to come. Now, let me conclude by again emphasizing the long-term strategy at Kinder Morgan Inc.

Speaker #3: A decade or so from now . That leaves natural gas , which is abundant and reasonably priced , and the infrastructure to produce power from natural gas is relatively quick to build reasonably like I've just outlined .

Speaker #3: It's why we believe that AI data center needs will supplement in a very meaningful way . The tremendous increases in LNG , feed , gas demand and in combination , the two drivers will ensure a huge and growing market for natural gas in the years and decades to come .

Speaker #3: Now , let me conclude by again emphasizing the long term strategy at Kinder Morgan , we are a prolific generator of cash and are fortunate to have the majority of our assets employed in a true growth segment of the energy business , namely the transportation of natural gas .

Rich Kinder: We are a prolific generator of cash and are fortunate to have the majority of our assets employed in a true growth segment of the energy business, namely the transportation of natural gas. These two characteristics dovetail nicely. The tremendous growth in natural gas demand drives the opportunity for expanding and extending our pipeline and terminal networks and adding new facilities, as evidenced by the $9 billion plus of projects already approved by our board. We generate the cash internally to fund those projects while maintaining a healthy and modestly growing dividend. To be clear, we have to complete these projects on time and on budget, but our track record in that regard is good, and we're benefiting from a federal regulatory process that is more supportive of projects like ours.

Speaker #3: These two characteristics dovetail nicely . The tremendous growth in natural gas demand drives the opportunity for expanding and extending our pipeline and terminal networks , and adding new facilities , as evidenced by the 9 billion plus of projects already approved by our board .

Speaker #3: And we generate the cash internally to fund those projects while maintaining a healthy and modestly growing dividend. Now, to be clear, we have to complete these projects on time and on budget.

Speaker #3: But our track record in that regard is good, and we're benefiting from a federal regulatory process that is more supportive of projects like ours.

Speaker #3: While our base business is relatively flat , these capital projects will drive substantial growth in EBITDA and EPs for years to come . This is a simple but in my mind , very compelling strategy .

Rich Kinder: While our base business is relatively flat, these capital projects will drive substantial growth in EBITDA and EPS for years to come. This is a simple, but in my mind, very compelling strategy. With that, I'll turn it over to Kim.

Speaker #3: And with that, I'll turn it over to Kim.

Speaker #4: Okay, thanks, Rich. We're pleased to report another strong quarter with EBITDA up 6% and adjusted EPS growing 16% year on year.

Kimberly Dang: Okay, thanks, Rich. We're pleased to report another strong quarter with EBITDA up 6% and adjusted EPS growing 16% year on year. These results reflect the strength of our underlying business and the continued execution on our growth projects. We currently expect to exceed our full-year budget due to the contributions from the Outrigger acquisition. This outperformance would be greater if not for lower than budgeted D3 RIN prices and RNG volumes. Currently, the RNG volumes are much closer to budget, but RIN prices remain weak. The natural gas segment, which accounts for two-thirds of our business, is outperforming its budget, even excluding Outrigger. Our expansion backlog remains flat at $9.3 billion, with the approximately $500 million of new projects all offset by projects placed in service. The backlog multiple continues to be below six times, consistent with our disciplined approach to capital deployment.

Speaker #4: These results reflect the strength of our underlying business and the continued execution on our growth projects . We currently expect to exceed our full year budget due to the contributions from the outrigger Acquisition .

Speaker #4: This outperformance would be greater if not for lower than budgeted D3 Rin prices and RNG volumes . Currently , the RNG volumes are much closer to budget , but Rins prices remain weak .

Speaker #4: The natural gas segment , which accounts for two thirds of our business , is outperforming its budget . Even excluding outrigger . Our expansion backlog remains flat at 9.3 billion , with the approximately 500 million of new projects offset by projects placed in service .

Speaker #4: The backlog multiples continue to be below six times, consistent with our disciplined approach to capital deployment. The mix of new projects added to the backlog this quarter is split roughly 50% natural gas, primarily supporting power generation, and 50% to refined product tankage.

Kimberly Dang: The mix of new projects added to the backlog this quarter is split roughly 50% natural gas, primarily supporting power generation, and 50% refined product tankage. Looking ahead, our opportunity set remains exceptionally compelling. We're actively pursuing over $10 billion in potential projects, primarily in natural gas, underscoring the continued demand for our services and the strength of our platform. As I mentioned last quarter, the scale of opportunities we're evaluating today is comparable to when our backlog stood at just $3 billion, highlighting the consistency and the resiliency of our growth pipeline. Our gas infrastructure, more than 66,000 miles of pipeline connecting all major basins and demand centers, positions us as a critical player in energy infrastructure. Today, we transport over 40% of the natural gas in the U.S., including more than 40% of the volume headed to LNG export facilities, 25% of the gas fueling U.S.

Speaker #4: Looking ahead , our opportunity set remains exceptionally compelling . We're actively pursuing over $10 billion in potential projects , primarily in natural gas , underscoring the continued demand for our services and the strength of our platform .

Speaker #4: As I mentioned last quarter, the scale of opportunities we're evaluating today is comparable to when our backlog stood at just $3 billion.

Speaker #4: Highlighting the consistency and the resiliency of our growth pipeline . Our gas infrastructure , more than 66,000 miles of pipeline connecting all major basins and demand centers positions us as a critical player in energy infrastructure .

Speaker #4: Today, we transport over 40% of the natural gas in the United States, including more than 40% of the volume headed to LNG export facilities.

Speaker #4: 25% of the gas fueling U.S. natural gas power plants and 50% of the gas exported to Mexico. Looking forward, our internal projections estimate 28 Bcf a day.

Kimberly Dang: natural gas power plants, and 50% of the gas exported to Mexico. Looking forward, our internal projections estimate 28 BCF a day increase in natural gas demand by 2030, driven primarily by growth in LNG exports as well as power and exports to Mexico. Wood Mackenzie forecasts a similar trend, projecting 22 BCF a day of growth in overall natural gas demand. With our strategically located assets, we are well positioned to capture a meaningful share of this expansion. Our current $9.3 billion backlog is a strong foundation for long-term, high-quality growth. A very significant portion of this backlog is supported by take-or-pay contracts, providing both stability and visibility into future cash flows. As we continue to advance our development pipeline, we expect to convert a portion of the $10 billion opportunity set into additional backlog, further reinforcing our growth trajectory.

Speaker #4: Increase in natural gas demand by 2030 , driven primarily by growth in LNG exports , as well as power and exports to Mexico .

Speaker #4: Wood Mackenzie forecasts a similar trend, projecting 22 Bcf per day of growth in overall natural gas demand. With our strategically located assets.

Speaker #4: We are well positioned to capture a meaningful share of this expansion. Our current backlog of $9.3 billion is a strong foundation for long-term, high-quality growth.

Speaker #4: A very significant portion of this backlog is supported by take or pay contracts , providing both stability and visibility into future cash flows .

Speaker #4: And as we continue to advance our development pipeline, we expect to convert a portion of the $10 billion opportunity set into additional backlog.

Speaker #4: Further reinforcing our growth trajectory, we remain confident in our strategy, our execution, and our ability to deliver long-term value for our shareholders.

Kimberly Dang: We remain confident in our strategy, our execution, and our ability to deliver long-term value for our shareholders. With that, I'll turn it over to Tom Martin to walk through the business performance in more detail.

Speaker #4: And with that, I'll turn it over to Tom Martin to walk through the business performance in more detail.

Speaker #5: Thanks, Kim. Starting with the natural gas business unit, transport volumes were up 6% in the quarter versus the third quarter of 2024, primarily due to LNG deliveries on the Tennessee Gas Pipeline.

Tom Martin: Thanks, Kim. Starting with the natural gas business unit, transport volumes were up 6% in the quarter versus the third quarter of 2024, primarily due to LNG deliveries on Tennessee Gas Pipeline, new contracts from expansion projects placed into service on the Texas Intra-State system, and increased Permian deliveries to Guaja and Mexico, on our El Paso natural gas system. Natural gas gathering volumes were up 9% in the quarter from the third quarter of 2024, with growth across all our GNP assets, the largest impacts from our Hainesville and Eagleford systems. Sequentially, total gas gathering volumes are up 11%. We experienced a significant ramp from our producer customers during the quarter to meet the growing LNG demand. The gathering volume growth trend continues in the early days of the fourth quarter, most notably on our Hainesville system, as it is approaching new daily volume records in October.

Speaker #5: New contracts from expansion projects placed into service on the Texas intrastate system and increased Permian deliveries to Waha and Mexico on our El Paso Natural gas system .

Speaker #5: Natural gas gathering volumes were up 9% in the quarter from the third quarter of 2020, with growth across all our GNP assets. The largest impacts came from our Haynesville and Eagle Ford systems sequentially.

Speaker #5: Total gas gathering volumes are up 11% . We experienced a significant ramp from our producer customers during the quarter to meet the growing LNG demand .

Speaker #5: The gathering volume growth trend continues in the early days of the fourth quarter , most notably on our Haynesville system , as it is approaching new daily volume records in October .

Speaker #5: For the full year , we now expect a gathering volumes to average 5% above 2024 . And looking forward , we continue to see significant incremental project opportunities across our natural gas pipeline network to expand our transportation and storage capabilities and support of growing natural gas market .

Tom Martin: For the full year, we now expect our gathering volumes to average 5% above 2024. Looking forward, we continue to see significant incremental project opportunities across our natural gas pipeline network to expand our transportation and storage capabilities in support of the growing natural gas market. For example, we are exploring more than 10 BCF a day of natural gas opportunities to serve the power generation sector. In our products pipeline segment, we find product volumes were down 1% in the quarter compared to the third quarter of 2024. For the full year 2025, we find products volumes are forecasted to be about 1% higher than 2024 and in line with our budget. Crude and condensate volumes are down 3% in the quarter compared to the third quarter of 2024.

Speaker #5: For example , we are exploring more than ten BCF a day of natural gas opportunities to serve the power generation sector in our product pipeline segment .

Speaker #5: We find product volumes were down 1% in the quarter compared to the third quarter of 2025. For the full year 2026, refined products volumes are forecasted to be about 1% higher than 2025.

Speaker #5: And in line with our budget , crude and condensate volumes are down 3% in the quarter compared to the third quarter of 2020 for .

Speaker #5: More than all of that decline is driven by taking double age out of service early . Earlier this quarter , for the NGL conversion project on Monday , Kinder Morgan and Phillips 66 , launched a binding open season for transportation service on the Western Gateway pipeline .

Tom Martin: More than all of that decline is driven by taking DoubleH out of service earlier this quarter for the NGL conversion project. On Monday, Kinder Morgan Inc. and Phillips 66 launched a binding open season for transportation service on the Western Gateway pipeline, a newly proposed refined products pipeline system that will facilitate the movement of products from origin points in Texas to key downstream markets in Arizona and California with connectivity to Las Vegas, Nevada. This open season is scheduled to run through December 19. Following the successful open season, the Western Gateway pipeline and KMI's SFPP East Line will be jointly owned by KMI and Phillips 66. We believe this project provides an attractive refined products alternative for markets in Arizona and California, given the decline in the California refining market. In our terminals business segment, our liquids lease capacity remains high at 95%.

Speaker #5: The newly proposed refined products pipeline system will facilitate the movement of products from origin points in Texas to key downstream markets in Arizona and California, with connectivity to Las Vegas, Nevada.

Speaker #5: This open season is scheduled to run through December 19th. Following the successful open season, the Western Gateway Pipeline and CMI's East Line will be jointly owned by CME and Phillips 66.

Speaker #5: We believe this project provides an attractive , refined products alternative for markets in Arizona and California , giving the decline in California refining market in our terminals business segment .

Speaker #5: Our liquids lease capacity remains high at 95%. Market conditions continue to remain supportive of strong rates and high utilization at our key hubs.

Tom Martin: Market conditions continue to remain supportive of strong rates and high utilization at our key hubs in the Houston Ship Channel and New York Harbor. Our Jones Act tanker fleet is fully leased today through the remainder of 2025. Assuming likely options are exercised, the fleet is 100% leased through 2026 and 97% leased through 2027. We have opportunistically chartered a significant percentage of the fleet at higher market rates and extended the average length of firm contract commitments to nearly four years. The CO2 segment experienced 4% lower oil production volumes, 4% higher NGL volumes, and 14% lower CO2 volumes in the quarter versus the third quarter of 2024. For the full year 2025, oil volumes are forecasted to be 4% below 2024 and 1% below our budget. With that, I'll turn it over to David Michels.

Speaker #5: At the Houston Ship Channel and New York Harbor, our tanker fleet is fully leased today through the remainder of 2025, assuming likely options are exercised.

Speaker #5: The fleet is 100% leased through 2026 and 97% leased through 2027. We have opportunistically chartered a significant percentage of the fleet at higher market rates and extended the average length of firm contract commitments to nearly four years.

Speaker #5: The CO2 segment experienced 4% lower oil production volumes , 4% higher NGL volumes , and 14% lower CO2 volumes . In the quarter versus the third quarter of 2020 .

Speaker #5: For . For the full year 2025 , all volumes are forecasted to be 4% below 2024 and 1% below our budget . With that , I'll turn it over to David Michels .

Speaker #6: Thank you . Tom . The quarter we're declaring a quarterly dividend of 29.2 $0.05 per share , or $1.17 per share annualized , which represents a 2% increase over our 2024 dividend .

David Michels: Thank you, Tom. For the quarter, we're declaring a quarterly dividend of $0.2925 per share, or $1.17 per share annualized, which represents a 2% increase over our 2024 dividend. For the third quarter, we generated net income attributable to KMI of $628 million and EPS of $0.28 per share, both in line with the third quarter of 2024. Last year's results included favorable mark-to-market impacts on hedges and a one-time non-cash tax benefit, both of which we treat as certain items. Excluding those items, adjusted net income and adjusted EPS grew 16% year over year, delivering strong double-digit growth. This growth was driven by greater contributions from our natural gas expansion projects placed in service, the Outrigger acquisition, and strong demand across our natural gas footprint for natural gas capacity and related services.

Speaker #6: For the third quarter, we generated net income attributable to KMI of $628 million and EPS of $0.28 per share, both in line with the third quarter of 2024.

Speaker #6: Last year's results included favorable mark to market impacts on hedges and a one time non-cash tax benefit , both of which we treat as certain items , excluding those items , adjusted net income and adjusted EPs grew 16% year over year , delivering strong double digit growth .

Speaker #6: This growth was driven by greater contributions from our natural gas expansion projects placed in service, the Outrigger acquisition, and strong demand across our natural gas footprint for natural gas capacity and related services.

Speaker #6: Moving on to the balance sheet , as we've continued to take a disciplined approach to capital allocation , our balance sheet has strengthened our net debt to adjusted EBITDA ratio , has improved to 3.9 times at the end of the third quarter , down from 4.1 times at the end of the the first quarter , which was immediately following the the outrigger acquisition .

David Michels: Moving on to the balance sheet, as we've continued to take a disciplined approach to capital allocation, our balance sheet is strengthened. Our net debt to adjusted EBITDA ratio has improved to 3.9 times at the end of the third quarter, down from 4.1 times at the end of the first quarter, which was immediately following the Outrigger acquisition. Year to date, our net debt has increased by $544 million, and here's a high-level reconciliation. We've generated cash flow from operations of $4.225 billion. We've paid out dividends of $1.95 billion. We've spent $2.245 billion in total capital. The Outrigger acquisition was $650 million, and all other items were a source of cash of approximately $75 million, which gets you close to that $544 million increase for the year. The rating agencies have recognized our strength in financial profile, and in August, Fitch upgraded our senior unsecured rating to BBB+.

Speaker #6: Year to date , our net debt has increased by $544 million . And here's a high level reconciliation . We've generated cash flow from operations of $4.225 billion .

Speaker #6: We've paid out dividends of $1.95 billion . We paid or spent $2.245 billion in total capital . The outrigger acquisition was $650 million , and all other items were a source of cash of approximately $75 million , which gets you close to that $544 million increase for the year .

Speaker #6: The rating agencies have recognized our strength in financial profile, and in August, Fitch upgraded our senior unsecured rating to B+. We were already on positive outlook by both S&P and Moody's, and we look for a favorable resolution of those in the near term.

David Michels: We were already on a positive outlook by both S&P and Moody's, and we look for a favorable resolution of those in the near term. As Kim mentioned, we expect to exceed our 2025 budget. As a reminder, we budgeted to grow adjusted EBITDA by 4% and adjusted EPS by 10% from 2024. With the outperformance, we expect to deliver even larger year-over-year growth. As we mentioned last quarter, the budget reconciliation bill delivers meaningful tax benefits for us, primarily from full expensing of investments. In addition, recent adjustments to the corporate alternative minimum tax are expected to provide additional substantial tax savings beginning in 2026. We are poised for a very strong full year 2025. We're on track to beat our budget and deliver double-digit earnings growth. We've sanctioned additional high-return projects that will support future growth.

Speaker #6: As Kim mentioned , we expect to exceed our 2025 budget , and as a reminder , we budgeted to grow adjusted EBITDA by 4% and adjusted EPs by 10% from 2024 .

Speaker #6: So with the outperformance , we expect to deliver even larger year over year growth . As we mentioned last quarter , the budget reconciliation bill delivers meaningful tax benefits for us .

Speaker #6: Primarily from full expensing of investments. In addition, recent adjustments to the corporate Alternative Minimum Tax are expected to provide additional substantial tax savings beginning in 2026.

Speaker #6: So we're poised for a very strong full year , 2025 . We're on track to beat our budgeted or excuse me , our budget and deliver double digit earnings growth .

Speaker #6: We sanctioned additional high project , high return projects that will support future growth . We've improved our balance sheet , resulting in enhanced credit ratings , and we expect meaningful cash flow benefits from tax reform , which will generate additional investment capacity .

David Michels: We've improved our balance sheet, resulting in enhanced credit ratings, and we expect meaningful cash flow benefits from tax reform, which will generate additional investment capacity. With that, I'll turn it back to Kim for Q&A.

Speaker #6: And with that, I'll turn it back to Ken for Q&A. Okay.

Kimberly Dang: Okay, Michelle, if you'll come back on, we'll take questions.

Speaker #4: Michelle , if you'll come back on and we'll take questions .

Speaker #2: Thank you . At this time , if you would like to ask a question , you may press star , followed by the number one .

Operator: Thank you. At this time, if you would like to ask a question, you may press star followed by the number one, and to withdraw your question, you may press star two. Please unmute your phones and state your name when prompted. Our first caller is Theresa Chen with Barclays. You may go ahead.

Speaker #2: And to withdraw your question, you may press star two. Please unmute your phones and state your name when prompted. Our first caller is Theresa Chen with Barclays.

Speaker #2: You may go ahead .

Speaker #7: Good afternoon . I wanted to go back to your growth outlook and specifically the over $10 billion opportunity set in unsanctioned projects under development up , I think , from the previous 7 to $11 billion range .

Theresa Chen: Good afternoon. I wanted to go back to your growth outlook and specifically the over $10 billion opportunity set in unsanctioned projects under development, up, I think, from the previous $7 to $11 billion range. What has driven this seemingly improved outlook over the past few months? How quickly do you think you can commercialize these growth opportunities, and where are you seeing the most interest for expansion projects amongst your customers?

Speaker #7: What has driven this seemingly improved outlook over the past few months? How quickly do you think you can commercialize these growth opportunities, and where are you seeing the most interest for expansion projects amongst your customers?

Speaker #4: Sure . So on the $10 billion , that's all the opportunities that that that's opportunity set . We're pursuing right now . It's mostly natural gas .

Kimberly Dang: Sure. On the $10 billion, that's all the opportunities in the opportunity set we're pursuing right now. It's mostly natural gas. It supports the themes that we've mentioned here today, export LNG, power, but there are also projects that support exports to Mexico and industrial growth. As I said, the opportunity set is very similar to when our backlog was at $3 billion. We haven't seen any diminishment in the projects that we're looking at. These projects are mostly across the southern U.S., so they go all the way from Arizona to potentially Florida. Most of them are smaller in size, I'd say less than $250 million, but there are a few that are $1 billion plus. It's all over the board. It's power in Arizona, power in Texas, power in New Mexico, power in Florida.

Speaker #4: You know , it supports the themes that we've mentioned here today . So export LNG power . But there's also some projects that support exports to Mexico .

Speaker #4: And industrial growth . And you know , as I said , the opportunity set is very similar to when our backlog was at $3 billion .

Speaker #4: So we haven't seen any diminishment in the projects that we're looking at . You know , these projects are mostly across the southern US .

Speaker #4: So they go all the way from Arizona to potentially Florida . And , you know , most of them are in smaller in size .

Speaker #4: I'd say less than 250 million , but there are a few that are billion dollar plus . So , you know , it's it's all over the board .

Speaker #4: It's , you know , power in Arizona . Power in Texas , power in New Mexico , power in Florida . You know , it's you know , we need more egress from the from all the producing basins , the Haynesville potentially the Marcellus , Utica .

Kimberly Dang: We need more egress from all the producing basins, the Haynesville, potentially the Marcellus Utica. We need more gas moving to LNG. As Rich said, we have 9 Bcf gas demand from the projects that have FID recently. It's across the board. Today, we have a potential project we're working on with respect to Western Gateway. There are a lot of different opportunities out there.

Speaker #4: You know, we need more gas moving to LNG. As Rich said, we've nine BCF of gas demand from the projects that have reached FID recently.

Speaker #4: So I mean it's it's it's across the board and then today , you know , we have potential projects we're working on with respect to Western Gateway .

Speaker #4: So there's there's a lot of different opportunities out there .

Speaker #7: Thank you . And on that last point , Kim , following this week's announcement of your open season for Western Gateway , can you talk about your projects positioning relative to One Oaks competing Sunbelt project ?

Theresa Chen: Thank you. On that last point, Kim, following this week's announcement of your open season for Western Gateway, can you talk about your project's positioning relative to Oneok's competing Sunbelt project? Assuming that Western Gateway solicits sufficient commercial interest during the open season, can you talk about potential gating factors, regulatory or otherwise, that Kinder Morgan and Phillips 66 may need to address before the project can be sanctioned?

Speaker #7: And assuming that Western Gateway solicits sufficient commercial interest during the open season , can you talk about potential gating factors , regulatory or otherwise , that Kinder and Philips may need to address before the project can be sanctioned ?

Speaker #4: Sure . So you know , relative to the competition , I think there pipeline just goes into into the Phoenix market . Currently , the Phoenix market is fed by us from the west as well as from the east .

Kimberly Dang: Sure. Relative to the competition, I think their pipeline just goes into the Phoenix market. Currently, the Phoenix market is fed by us from the west as well as from the east. The proposed project with Phillips 66 and us would reverse our west line and build a new pipeline from the border to Phoenix. We would be sending barrels from the east into the Phoenix market and reverse our west line so that barrels could potentially move into the California market and potentially into the Las Vegas market. I think from our perspective, it's a very good project for Arizona. Arizona is a growing market, so it gives additional capacity to serve the Arizona market. Arizona is no longer dependent on California, where California's got some closing refineries. California gets potentially additional barrels coming to the California market to the extent there are additional closures in California.

Speaker #4: The proposed project with P66 and US would reverse our West line and build a new pipeline from the border to Phoenix.

Speaker #4: And so we would be sending barrels from the east into the Phoenix market, and reverse our west line so that potentially barrels could move on into the California market and potentially into the Las Vegas market.

Speaker #4: So , you know , I think it's from our perspective , it's a it's a very good project for Arizona . Arizona is a growing market .

Speaker #4: So, it gives additional capacity to serve the Arizona market. Arizona is no longer dependent on California, where California's got some closing refineries.

Speaker #4: California gets potentially additional barrels coming to the California market to the extent there are additional closures in in California . And and I think it's a great project because you're accessing multiple markets .

Kimberly Dang: I think it's a great project because you're accessing multiple markets. You're not just going to one market. In terms of the open season, it ends on December 19. From there, we'll need various regulatory approvals, and we would target a 2029 in-service date.

Speaker #4: You're not just going to to one market . So , you know , in terms of the the open season ends on December 19th and then , you know , from there we'll need various regulatory approvals .

Speaker #4: And , you know , we would target a 2029 in-service date .

Speaker #7: Thank you .

Theresa Chen: Thank you.

Speaker #2: Thank you. Our next caller is Jeremy Tonet with J.P. Morgan.

Operator: Thank you. Our next caller is Jeremy Tonet with J.P. Morgan.

Speaker #8: Hi . Good afternoon .

Jeremy Tonet: Hi, good afternoon.

Speaker #4: Good afternoon .

Kimberly Dang: Good afternoon.

Speaker #8: Just wanted to follow up on some of the comments you had said there with KMI , seeing an opportunity to have more robust than at any time in the company's future and just wanted to , I guess , see if we could expand upon that in any way .

Jeremy Tonet: Just wanted to follow up on some of the comments you had said there with Kinder Morgan Inc. seeing an opportunity to have more robust at any time in the company's future. I just wanted to, I guess, see if we could expand upon that in any way. Just wondering how you think about, you know, the landscape given, you know, Kinder's competitive positioning. It seems like it's a competitive market out there. Any thoughts that you could provide around that? I guess what could be the cadence of how this capital could fall into plan at a high level over time?

Speaker #8: And just wondering how you think about , you know , the landscape given , you know , kinder's competitive positioning . It seems like it's a competitive market out there .

Speaker #8: And , you know , any any thoughts that you could provide around that . And I guess what could be the cadence of how this capital could fall into plan at a high level over time ?

Speaker #4: Yeah . So a couple of things . You know , I think I walked through some of the background on the on the $10 billion in opportunities .

Kimberly Dang: Yeah. A couple of things. I think I walked through some of the background on the $10 billion in opportunities. With respect to competition, look, we're not going to win all these projects, but we're going to get our fair share. What makes us very competitive is our existing footprint, which provides us with opportunities to build off of that footprint. We can provide our customer services that other competitors can't offer, including storage. That's really, at the end of the day, what differentiates us from our peers. We also have a good track record on bringing projects in on time and on budget, which I think is helpful when time is important to our customers. That's especially true, I think, for some of the data center and power customers. In terms of how this comes, how the project cadence of bringing these to FID, that is hard to project.

Speaker #4: But you know , with , with respect to on competition , you know , look , we're not going to win all these projects , but we're going to get our fair share .

Speaker #4: And you know , what makes us very competitive is our existing footprint , which , you know , provides us with opportunities to build off of that footprint .

Speaker #4: And we can provide our customers that other competitors can't offer . And so including storage and so , you know , that's really at the end of the day , what differentiates us from our peers .

Speaker #4: We also have a good track record on bringing projects in on time and on budget , which I think is helpful when time is important to our customers .

Speaker #4: And that's especially true , I think , for some of the data center and power customers . So I think in terms of , you know , how this comes , you know , how this the project cadence of bringing these to FID , you know , that is that's hard to project .

Speaker #4: And so I can't tell you exactly what that's going to look like . But I think we'll bring a significant projects to FID in 2026 based on that $10 billion backlog .

Kimberly Dang: I can't tell you exactly what that's going to look like, but I think we'll bring significant projects to FID in 2026 based on that $10 billion backlog.

Speaker #8: Got it . That's that's very helpful . Thank you . And then just a smaller question for me as it relates to the guide , it just seems like the language changed a little bit with how much you're going to exceed the guidance by outrigger in the two Q versus three Q , and seems like it's a little bit less at this point .

Jeremy Tonet: Got it. That's very helpful. Thank you. Just a smaller question for me as it relates to the guide. It just seems like the language changed a little bit with how much you're going to exceed the guidance by Outrigger in the Q2 versus Q3, and it seems like it's a little bit less at this point. Just wondering what other changes in the backdrop you see versus the Q2.

Speaker #8: Just wondering what other, I guess, changes in the backdrop you see versus the two Qs.

Speaker #4: Yeah , I mean , there was a slight change on that , and it's really , you know , related to the RNG rent , the RNG volumes and the rental price weakness .

Kimberly Dang: Yeah. I mean, there was a slight change on that, and it's really, you know, related to the RNG volumes and the RIN's price weakness.

Speaker #8: Got it. I'll leave it there. Thank you.

Jeremy Tonet: Got it. I'll leave it there. Thank you.

Speaker #2: Thank you. Our next caller is Julien Dumoulin-Smith with Jefferies. Your line is open.

Operator: Thank you. Our next caller is Julianne Dumoulin-Smith with Jefferies. Your line is open.

Speaker #9: Hey . Good afternoon team . Thank you guys very much for the time . Appreciate the opportunity . Maybe just picking up where the other guys just left off here .

Julianne Dumoulin-Smith: Hey, good afternoon, team. Thank you guys very much for the time. I appreciate the opportunity. Maybe just picking up where the other guys just left off here. Can you elaborate a little bit on how you're seeing the opportunities emerge as it pertains to the shadow backlog? I know you gave some of these examples, smaller and larger, but maybe regionally and how they pertain. Obviously, we've seen examples recently in the last week here with a private-backed pipeline FID in the Gulf Coast. Could you elaborate a little bit on the power opportunities, both in you as it pertains to Texas and also maybe as it pertains to the backlog opportunity in the Southwest? Obviously, we saw what your peer announced in the last few months, but how do you think about the future on the gas side in the El Paso system?

Speaker #9: Can you elaborate a little bit on how you're seeing the opportunities emerge as it pertains to the shadow backlog ? I know you gave some of these examples smaller and larger , but maybe regionally and how they pertain .

Speaker #9: I mean , obviously we've seen examples recently in the last week here with the private backed pipeline FID in the Gulf Coast . Could you elaborate a little bit on the power opportunities , both in as it pertains to Texas and also maybe as it pertains to backlog opportunity in the southwest ?

Speaker #9: I mean , obviously , we saw what your peer announced in the last few months , but how does how do you think about the future on the gas side in the El Paso system ?

Speaker #4: Yeah , I mean , I think there's continued power development . A lot of it is for data centers . But there's , you know , other things that are driving power development .

Kimberly Dang: Yeah. I mean, I think there's continued power development. A lot of it is for data centers, but there's other things that are driving power development. You know, coal retirements, some of those have pushed out, but some of them are still happening. What we see is you need more peakers to back up renewables, which is what we're seeing in Texas. On the data centers and the power conversions, we're seeing that in New Mexico. We're seeing it potentially in Arizona, some places where maybe the pipeline that got announced recently wouldn't serve. We're seeing some in Colorado. We're seeing some potentially more in Arkansas, in Florida. Again, I'll just repeat some of these and then Cecil will come in. We're seeing opportunities to build out of the Hainesville to get gas further to the market, get more volumes, potentially coming out of the Marcellus Utica.

Speaker #4: You know , coal retirements that some of those have pushed out some , but some of them are still are some of them are still happening .

Speaker #4: And so , you know , what we see . And there you need more peakers to back up renewables , which is what we're seeing in Texas .

Speaker #4: And so , you know , on the data centers and the power conversions , I mean , we're seeing that in New Mexico .

Speaker #4: We're seeing it potentially in Arizona . Some places where , you know , maybe the the pipeline that got announced recently doesn't go wouldn't serve .

Speaker #4: We're seeing some in Colorado. We're seeing some potentially more in Arkansas and Florida again. I'll just repeat some of these, and then Keith will come in.

Speaker #4: We're seeing you know , opportunities to build out of the Haynesville to get gas further to the market , get more volumes , you know , potentially coming out of the Marcellus Utica .

Speaker #4: So, there are a lot of different opportunities. Storage is a huge factor right now. People need a lot of storage. And so, we're looking at some opportunities to expand our storage and some new greenfield opportunities.

Kimberly Dang: There's a lot of different opportunities. Storage is a huge factor right now. People need a lot of storage. We're looking at some opportunities to expand our storage and some new greenfield opportunities.

Speaker #10: So one thing I'll add , especially out west is , you know , we have , you know , strong connectivity to Mexico .

Tom Martin: One thing I'll add, especially out west, is we have strong connectivity to Mexico. When you think about the power demands there, those are also rising, and not only from the base organic power, but Mexico also is evaluating their own data centers. Our footprint, especially out west, is very well connected along those lines. When you look out in the southeast, you've seen the IRPs that have been put out by all the various states. Clearly, there's demand that's coming, and as you all know, we're well positioned in that market to try and capture some of that growth. When I go to the Gulf Coast, we continue to debottleneck the plumbing to be able to get the molecules from the supply zones to the consuming markets. I think that's something you can kind of take away on things that we're working on.

Speaker #10: So when you think about the power demands , there , those are also rising . And not only from the , you know , base organic power , but but Mexico also is evaluating their own data centers .

Speaker #10: And so our footprint , especially out west is very well connected along those lines . And then when you when you look out in the southeast , you've seen the ERPs that have been put out by all the various states .

Speaker #10: You know , clearly there's demand that's coming . And as you , you know , as you all know , we're well positioned in that market to try and capture some of that growth .

Speaker #10: When I go to the Gulf Coast, we continue to see bottlenecks in the plumbing to be able to get the molecules from the supply zones to the consuming markets.

Speaker #10: I think that's something you can kind of take away from the things that we're working on. And then all of this gets put together with our, you know, when we evaluate storage and how to integrate storage and then supply access to these consuming markets. Those are kind of the big themes that we're seeing on the horizon.

Tom Martin: All of this gets put together when we evaluate storage and how to integrate storage, and then supply access to these consuming markets. Those are kind of the big themes that we're seeing on the horizon.

Speaker #9: Got it. And if I can nitpick a little bit, I know you just alluded to the Southeast opportunities on SMG. Does that line up with what we're seeing right now in the generation resource planning?

Julianne Dumoulin-Smith: Got it. If I can nitpick a little bit, I know you just alluded to the Southeast opportunities on SMG. Does that line up with what we're seeing right now in the generation resource planning? Obviously, they've upticked it pretty meaningfully here of late. Is that presently reflected, or is there a little bit of a mark-to-market to happen on your side? Also, on the Western Gateway, if you could just clarify what the ultimate economics are on your side, or at least the total dollars are.

Speaker #9: I mean , obviously they've upticked it pretty meaningfully here of late . Is that presently reflected , or is there a little bit of a mark to market to happen on your side ?

Speaker #9: And then also on the Western Gateway, if you could just clarify what the ultimate economics are on your side, or at least the total dollars are.

Speaker #10: So I'll take the first question and I'll turn it over to to Kim and Mike on the on the second one . So southeast look , in terms of what we're in , that 10 billion that Kim is referring to .

Tom Martin: I'll take the first question, and I'll turn it over to Kim and Mike on the second one. In terms of what we're in in that $10 billion that Kim is referring to, that is taking into account some of the IRPs that are out there, especially in the Southeast. That's what we see as infrastructure that's needed. I think to answer the first question, that is a subset of that $10 billion. I'll turn it over to Kim and Mike for the second piece.

Speaker #10: You know , that is about you know , taking into account some of the ERPs that are that are out there , especially in the southeast .

Speaker #10: I mean , that's what we see , you know , as as infrastructure that's needed . And so I think to answer the first question , that is a subset of that 10 billion .

Speaker #10: And then I'll turn it over to Tim and Mike for the second piece.

Speaker #4: I mean , in terms in terms of , you know , the cost to build that pipeline , we're not going to get into that because it's a as you know , there's a competitive project out there .

Kimberly Dang: I mean, in terms of, you know, the cost to build that pipeline, we're not going to get into that because, as you know, there's a competitive project out there. We don't want to compromise that position at this point in time.

Speaker #4: And so and so the we don't want to compromise that position at this point in time . .

Speaker #9: Completely understood. Thank you very much, guys. I look forward to working with you.

Julianne Dumoulin-Smith: Okay. Completely understood. Thank you guys very much. Look forward to working with you guys.

Speaker #2: Thank you. Our next caller is Michael Bloom with Wells Fargo. Your line is open, sir.

Operator: Thank you. Our next caller is Michael Blum with Wells Fargo. Your line is open, sir.

Speaker #11: Thanks . Good afternoon everyone . I wanted to ask about Highland Express , the NGL conversion project , just in terms of where do you stand on committed initial volumes and where do you think that can go ?

Michael Blum: Thanks. Good afternoon, everyone. I wanted to ask about Highland Express, the NGL conversion project, just in terms of where do you stand on committed initial volumes and where do you think that can go? I noticed in the press release you talked about potentially some takeaway out of the Powder River as well. I wonder if you can expand on that.

Speaker #11: And then I noticed in the press release , you talked about potentially some takeaway out of the powder River as well . So I wonder if you can expand on that .

Speaker #10: Yeah . So sticking to our previous discussions , you know , it's on track . You know , we're on track to be ready .

Tom Martin: Yeah. Sticking to our previous discussions, it's on track. We're on track to be ready first quarter next year for our initial commitment. Obviously, you all know we're also at a very aggressive competition with the incumbent there, so I won't get too much into the details on what's next. That being said, we have some assets that we're effectively repurposing to be able to position ourselves to draw incremental barrels to the pipeline. I'll leave it at that till we actually have the next set of announcements to make, hopefully very soon.

Speaker #10: First quarter next year for our initial commitment. Obviously, you all know we're also in a very aggressive competition with the incumbent there.

Speaker #10: So I won't get too much into the details on what's next . That being said , you know , we have some assets that we're we're , you know , effectively repurposing to to be able to position ourselves to draw incremental barrels to , to the pipeline .

Speaker #10: And I will leave it at that until we actually have the next set of announcements to make, hopefully very soon.

Speaker #11: Okay . Fair enough . And then I wanted to ask you about the behind the meter opportunities . I know in the past you've talked about maybe coming up with a solution with partners .

Michael Blum: Okay. Fair enough. I wanted to ask you about the behind-the-meter opportunities. I know in the past you've talked about maybe coming up with a solution with partners. I just wanted to see where that stands and if that can be a meaningful driver and if that's part of that $10 billion.

Speaker #11: So just wanted to see where that stands and if that can be a meaningful driver . And if that's part of that 1010 .

Speaker #4: If you're talking about investing in power, I think the answer is still that that's not something that we're interested in doing. I think we've got plenty of opportunity, plenty to say.

Kimberly Dang: If you're talking about investing in power, I think the answer is still that's not something that we're interested in doing. I think we've got plenty of opportunity, plenty to say grace over in our existing infrastructure business. You know, that is what we are good at. That's what we know how to do. Therefore, the growth that we're projecting is very high-quality growth, as I said, you know, largely backed by taker pay contracts. I think maybe where we're missing a little bit is I think in the past what we said is, you know, if there was a data center or something that wanted us to invest for some reason, maybe, you know, we might make a very small investment there. You know, that would just only be to facilitate a project getting done. That is not where we want to invest our dollars.

Speaker #4: Grace, over in our existing infrastructure business. You know, that is what we are good at. That's what we know how to do.

Speaker #4: And therefore the growth that we're projecting is very high quality growth . As I said , you know , largely backed by by take or pay contracts , I think maybe where we're missing a little bit is I think in the past what we said is , you know , if there was a data center or something that wanted us to invest for some reason , maybe , you know , we might make a very small investment there .

Speaker #4: But , you know , that would just only be to facilitate a project , getting done . That is not where we want to invest our dollars .

Speaker #4: And so what I would say is it is unlikely that we invest behind the meter .

Kimberly Dang: I would say it is unlikely that we invest behind the meter.

Speaker #10: But but what I but to add on to what Jim just said , you know , we are looking at working with our partners to supply gas in certain instances to be able to support , you know , a consortium of folks to be able to provide reliable power .

Tom Martin: To add on to what Kim just said, you know, we are looking at working with our partners to supply gas in certain instances to be able to support, you know, a consortium of folks to be able to provide reliable power. I mean, I think that's the way you would look at our participation in the opportunity. We would be looking to build the infrastructure to be able to support that.

Speaker #10: I mean, I think that's the way you would look at our participation in the opportunity. We would be looking to build the infrastructure to be able to support that.

Speaker #11: Thanks .

Michael Blum: Thanks.

Speaker #4: Well , supply the gas .

Kimberly Dang: will supply the gas.

Speaker #2: Thank you . Our next caller is John McKay with Goldman Sachs . Your line is open , sir .

Operator: Thank you. Our next caller is John Mackay with Goldman Sachs. Your line is open, sir.

Speaker #12: Hey , everyone . Thanks for the time . I'm going to go to the shadow Backlog two . I guess not to keep keep running through the same thing , but I guess I just want to ask one more way .

John Mackay: Hey, everyone. Thanks for the time. I'm going to go to the shadow backlog too, I guess, not to keep running through the same thing, but I just want to ask one more way. When you're looking at this $10 billion, how much of this is, "Look, it's a competitive environment. We'll see what we win. We have a lot to bring to the table," versus, you know, really waiting for actually that demand to materialize, you know, the next LNG FID, some larger power build-out across the Southeast, etc.? Maybe just what are the kind of buckets between the two in terms of what you see in front of you?

Speaker #12: When you're looking at this $10 billion , how much of this is . Look , it's a competitive environment . We'll see what we win .

Speaker #12: We have a lot to bring to the table versus , you know , really waiting for actually that demand to materialize . You know , the next LNG fid some larger power build out across the southeast , etc.

Speaker #12: , maybe just what are the kind of buckets between the two in terms of what you see in front of you ?

Speaker #4: Yeah , I mean , these are projects where we are actively talking to customers about them . And so , you know , I think we're having conversations with people , you know , we are putting together estimates on what what things would cost .

Kimberly Dang: Yeah. I mean, these are projects where we are actively talking to customers about them, and so, you know, I think we're having conversations with people. You know, we are putting together estimates on what things would cost. We're looking at returns. These are all things that are active conversations internally.

Speaker #4: We're looking at returns . These are all things that are active conversations internally .

Speaker #12: That's right. Maybe just a follow-up. Second question: I appreciate the comments on the guide around the RNG side being softer.

John Mackay: That's fair. Maybe just follow up, second question. Appreciate the comments on the guide around the RNG side being softer. Can you talk about the rest of the business? I mean, gas was relatively strong. Any more kind of one-offs in there, or is this a kind of healthier run rate?

Speaker #12: Can you talk about the rest of the business ? I mean , gas was relatively strong . Any more kind of one offs in there or is this a kind of healthier run rate ?

Speaker #4: I think gas is very strong . We didn't have , you know , much of a winner or much of a summer . And , you know , there's still even if you take out the outrigger acquisition , they're still going to nicely beat their budget terminals .

Kimberly Dang: I think gas is very strong. We didn't have, you know, much of a winter or much of a summer, and you know, they're still, even if you take out the Outrigger acquisition, they're still going to nicely beat their budget. Terminals is also doing very well this year and should exceed its budget. Products, I'd say, is kind of right on its budget, you know, slightly short, but it's pretty small. Then where the weakness is is really in the RNG and a little bit on CO2.

Speaker #4: It is also doing very well this year and should exceed its budget products. I'd say it's kind of right on its budget.

Speaker #4: You know , slightly short , but it's it's pretty small . And then the weakness is is really in the RNG and a little bit on on CO2 .

Speaker #12: That's clear . Thank you .

John Mackay: All right. That's clear. Thank you.

Speaker #2: Thank you . Our next caller is Spero Dudas with city . Your line is open sir .

Operator: Thank you. Our next caller is Spiro Dounis with Citi. Your line is open, sir.

Speaker #13: Thanks . Operator . Good afternoon team . I wanted to start with the 2026 outlook . I know we're going to be getting a formal update from you guys in a few weeks , but maybe just at a high level if you just talk about some of the variables , you could see impacting the various segments and maybe any reason 2026 growth would at least sort of match up to the 2025 growth rate .

Spiro Dounis: Thanks, operator. Good afternoon, team. I wanted to start with the 2026 outlook. I know we're going to be getting a formal update from you guys in a few weeks, but maybe just at a high level, if you could just talk about some of the variables you could see impacting the various segments and maybe any reason 2026 growth wouldn't at least sort of match up the 2025 growth rate.

Speaker #4: Well , I think , you know , we're going through a process , you know , right now . And so I think it's too early to talk about what the growth rates might be .

Kimberly Dang: I think we're going through a process right now, and I think it's too early to talk about what the growth rates might be. In terms of tailwinds, headwinds, something like that, tailwinds, we've got expansion projects. You've got a full year of the 25 that we'll get in in 2026, and then you've got partial year 2026 growth projects. We've got contract escalators in our terminals business and our products business. Interest rates are coming down, so that should be a tailwind for us. We're not expecting a significant increase in taxes given what we've seen on the big beautiful bill and the bonus depreciation. As always, we see a little bit of decline potentially in CO2 and oil volumes. What's unknown is, I think, commodity prices at this point in time. We'll just have to see where those come out.

Speaker #4: But , you know , in terms of , you know , if you want to go tailwinds , headwinds , you know , something like that , you know , tailwinds , you know , we've got expansion projects .

Speaker #4: You've got a full year of the 25 that , you know , we'll get in in 26 . And then you've got partial year 26 growth projects .

Speaker #4: We've got contract escalators . And our terminals business and our products business . You know , interest rates are coming down . So that should be a tailwind for us .

Speaker #4: You know we're not expecting significant increase in taxes given what we've seen on the big beautiful bill and the bonus depreciation . You know , as , as as always , you know , we see a little bit of decline potentially in in CO2 and oil volumes .

Speaker #4: And then you know , what's unknown is I think commodity prices at this point in time will just have to see , you know , where those come out .

Speaker #13: Yep . Fair enough . Thanks for that . Kim . Second one , if you can believe it . I do have another follow up on the opportunity set .

Spiro Dounis: Yep. Fair enough. Thanks for that, Kim. Second one, if you can believe it, I do have another follow-up on the opportunity set. Just curious, how would you think about the timeframe that either the $10 billion or the 10 BCF a day captures? I'm asking you from two different perspectives. To the extent these are all opportunities you're sort of chasing within the decade, is there an opportunity here to see investment per year, CapEx go up above $3 billion? Conversely, how should we think about your ability to maybe deliver more short-cycle cash flows? A lot of these projects sound later-dated, great projects, but just curious if you could sort of fill the front end up more too.

Speaker #13: So just curious , how we should think about the time frame that either the 10 billion or the ten BCF a day captures .

Speaker #13: And I'm asking you from two different perspectives . To the extent these are all opportunities , you're sort of chasing within the decade , is there an opportunity here to see investment per year , CapEx go up above 3 billion and then conversely , how should we think about your ability to maybe deliver more short cycle cash flows ?

Speaker #13: A lot of these projects sound later dated , create projects , but just curious if you could sort of fill the front end up more to .

Speaker #13: .

Speaker #4: Yeah , so I think , you know , if you think about these are going to be both on projects and regulated projects .

Kimberly Dang: Yeah. I think, you know, if you think about these are going to be both unregulated projects and regulated projects. The regulated projects now have a shorter time cycle than they have in the past, and that's very good. I think the FERC has gotten rid of 871, so that five months has gone. That five-month waiting period is gone. I think they're working really hard to get permits delivered more quickly. That's going to shorten, that should shorten up your capital cycle some. I think the gating item is probably going to be compression, and that's going to, that will limit how much you can probably shorten it up. I think in general, the FERC projects are going to be three, a little over three years probably, from the time you sanction them to the time you're in service.

Speaker #4: And so , you know , the regulated projects now have a shorter time cycle than they have in the past . And so that's , you know , that's very good .

Speaker #4: I think , you know , the Ferc has gotten rid of 871 . So that five months is gone . That five month waiting period is gone .

Speaker #4: And I think they're working really hard to get permits delivered . More quickly . So that's going to shorten that should shorten up your capital cycle .

Speaker #4: Some . I think the gating items probably going to be compression . And so , you know , that's going to that will limit how much you can probably shorten it up .

Speaker #4: But I think in general , you know , the Ferc projects are going to be three a little over three years , probably from the time you sanction them to the time you're in service .

Speaker #4: And I think , you know , shorter capital will be on the gathering side . And then on all the Texas intrastate projects .

Kimberly Dang: I think shorter capital will be on the gathering side and then on all the Texas intrastate projects, all the pipelines in Texas, and then potentially other intrastate pipelines in other states. Generally, I think you're going to start filling up the out years, but you may have some near-term capital which increases, you know, 2027, 2028 CapEx, somewhat. I think we have plenty of free cash flow and balance sheet capacity to be able to handle any increases that we see above $2.5 or, you know, $3 billion. If you think about it, I'm not giving any guidance here. I'm just throwing out a rough number. If we have $5.5 billion of DCFs and you've got $2.6 billion of dividends, you've got $2.9 billion of cash flow to support the expansion projects, then our balance sheet right now is sitting at 3.9 times. Every 0.1 times is $800 million.

Speaker #4: So all the pipelines in Texas and then potentially other interest intrastate pipelines and other states . So generally , I think you're going to start filling up the out years , but you may have some near-term capital which increases , you know , 27 .

Speaker #4: 28 CapEx somewhat . But , you know , I think we have plenty of free cash flow and balance sheet capacity to be able to handle any increases that we see above .

Speaker #4: Two and a half or $3 billion. If you think about it, I'm not giving any guidance here. I'm just throwing out a rough number.

Speaker #4: If we have five and a half , billion of DCF and you've got , you know , 2.6 of dividends , you've got $2.9 billion of , you know , cash flow to support the the expansion projects .

Speaker #4: Then our balance sheet right now is sitting at 3.9 times every point , one times is $800 million . You know , I don't we're probably not going to run it up to four and a half .

Kimberly Dang: I don't, we're probably not going to run it up to 4.5, but you've got a $3 billion-ish at least of room there. Over time, that debt to EBITDA is going to come down more as we bring these projects online. That balance sheet capacity is going to increase over time. I think there is also very attractive third-party capital out there if we wanted to access it. I think we've got, I'm not worried about capacity to finance these expansions. I think they are good return projects, and we will find ways to do them without compromising our balance sheet.

Speaker #4: But you know , you've got a $3 billion at least a room there . And then over time , you know that debt to EBITDA is going to come down more as we bring these projects online .

Speaker #4: And so that balance sheet capacity is going to increase over time . And then , you know , I think there is also very attractive third party capital out there .

Speaker #4: If we wanted to access it . So I think , you know , we've got I'm not worried about capacity to , to finance these , these expansions .

Speaker #4: I think they are good return projects. And we will, you know, we will find ways to do them without compromising our balance sheet.

Speaker #13: Got it . That's helpful . Kim I'll leave it there . Thank you .

Spiro Dounis: Got it. That's helpful, Kimberly. I'll leave it there. Thank you.

Speaker #2: Thank you. Our next caller is Keith Stanley with Wolfe Research. Your line is open.

Operator: Thank you. Our next caller is Keith Stanley with Wolfe Research. Your line is open.

Speaker #14: Hi . Good afternoon . Just wanted to follow up on Western Gateway , and no , you don't want to say a total capital cost , but my questions are more on the structure .

Keith Stanley: Hi, good afternoon. Just wanted to follow up on Western Gateway and know you don't want to say a total capital cost, but my questions are more on the structure. If Phillips 66 is building the new pipe, and I think your capital investment is just a line reversal and maybe some tankage, is it fair to think your portion of the CapEx is a lot smaller in this project? The second question is the structure of the JV. You're contributing SFPP, they build Western Gateway, and then is it roughly like a 50/50 JV from there?

Speaker #14: So if Phillips is building the new pipe , and I think your capital investment is just a line reversal and maybe some tankage , is it fair to think your your portion of CapEx is a lot smaller in this project ?

Speaker #14: And then the second question is the structure of the JV . So you're contributing SFP they build Western Gateway and then is it roughly like a 5050 JV from there ?

Speaker #4: Yeah , I think it's going to be around a 5050 JV . And so yeah , because we're contributing assets , you know , our capital expenditure for the new assets would be a little bit less to them .

Kimberly Dang: Yeah. I think it's going to be around a 50/50 JV. Because we're contributing assets, our capital expenditure for the new assets would be a little bit less than what Phillips 66 would have to contribute.

Speaker #4: What P66 would have to contribute .

Speaker #14: Okay . Great . And then second question , I think , Kim , you referred to potential TGP projects that would add egress out of the Appalachia region .

Keith Stanley: Okay, great. The second question, I think, Kim, you referred to potential TGP projects that would add egress out of the Appalachia region. I think there's been a few capacity reservations for projects. Can you just talk about what you think is possible or doable to increase capacity out of Appalachia on TGP?

Speaker #14: I think there's been a few capacity reservations for projects . Can you just talk about what you think is possible or doable to increase capacity out of Appalachia on TGP ?

Speaker #10: Yeah , so this is Keith . Keith . Yes . We've been we've been working , you know , diligently on trying to find ways to get incremental egress out of the basin .

Tom Martin: Yeah. This is Keith Stanley. Yes, we've been working diligently on trying to find ways to get incremental egress out of the basin. As these consuming markets develop with the demand that Rich Kinder talked about earlier, it's incumbent on us to get incremental gas out of the basin. In terms of what that capacity amount is, it's still being worked on. Needless to say, I would say just rough numbers north of half a Bcf is what we're trying to get. It's still early, and I'd take that with a grain of salt till we're done with all the diligence.

Speaker #10: You know , as the these consuming markets develop , you know , with the demand that Richard Kim talked about earlier , it's it's incumbent on us to get incremental gas out of the basin .

Speaker #10: You know , we're in terms of what that capacity amount is still being worked on . But needless to say , you know , I would say , you know , just , you know , rough numbers north of half a BCF is what we're trying to get .

Speaker #10: But still, it's early. And I take that with a grain of salt until we're done with all the diligence.

Speaker #14: Thank you .

Keith Stanley: Thank you.

Speaker #2: Thank you. Our next caller is Zach Van Oeveren with TF.

Operator: Thank you. Our next caller is Zack Van Everen with TPH.

Speaker #15: Hi all . Thanks for taking my question . Maybe going over to the Haynesville . Sounds like volumes continue to grow . There .

Keith Stanley: Hi, all. Thanks for taking my question. Maybe going over to the Hainesville, sounds like volumes continue to grow there. I think on the last few calls, you guys had mentioned you're getting close to capacity. Maybe an update there. Is this from your largest customer on that system, or are you seeing private start to flow volumes as well?

Speaker #15: I think on the last few calls you guys had mentioned , you're getting close to capacity . Maybe an update there . And then is this from your largest customer on that system , or are you seeing private start to flow volumes as well ?

Speaker #10: Yeah . So one , we are , as Tom mentioned earlier , we are we are pretty much at capacity . You know , we're just waiting for when we cross the record , hopefully any day now .

Tom Martin: Yeah. So, one, we are, as Tom mentioned earlier, we are pretty much at capacity. We're just waiting for when we cross the record, hopefully any day now. I think it's not only our largest customer, but there are a few of the other privates that are also looking to increase their drilling in response to the demand that's coming our way. We do see meaningful ramp-up next year in the Hainesville.

Speaker #10: But I think , I think it's , you know , not only our largest customer but but there are a few of the other privates that are also looking to increase their drilling and response to the demand that's coming our way .

Speaker #10: And so we do see meaningful ramp up next year in the Haynesville .

Speaker #4: Yeah . And I think , you know , quarter over quarter in the Haynesville volumes are up 15% . So we're you know , we're seeing our customers bring on these volumes .

Kimberly Dang: Yeah. I think, you know, quarter over quarter, in the Hainesville, volumes are up 15%. We're seeing our customers bring on these volumes. You might remember we announced last quarter a $500 million investment in the Hainesville, which is a lot of treating capacity, but also some incremental pipe capacity to be able to accommodate our customer volumes.

Speaker #4: And you might remember we announced last quarter $500 million investment in Haynesville , which is , you know , it's a lot of treating capacity , but also some incremental pipe capacity to be able to accommodate our customer volumes .

Speaker #15: Got it . That makes sense . And then maybe moving over to the .

Keith Stanley: Got it. That makes sense. Maybe moving over to the next.

Speaker #4: On the Haynesville is , you know , it is we expect it to be one of , you know , the strongest , probably the fastest growing basin .

Kimberly Dang: The thing I'll say on the Hainesville is, you know, we expect it to be one of the strongest, probably the fastest growing basin. You know, our internal projections are it's going to grow almost 11 Bcf a day between 2024 and 2030. It's going to go, you know, up to probably 23 Bcf a day in terms of production. I think, you know, you're seeing we're seeing opportunities today, but I expect we'll continue to see opportunities over time, both to invest in the Hainesville and to take molecules away from the Hainesville.

Speaker #4: You know , our internal projections are it's going to grow almost 11 BCF a day between 2024 and 2030 . So it's going to go , you know , up to probably 23 BCF a day in terms of production .

Speaker #4: So I think , you know , we're seeing opportunities today , but I expect we'll continue to see opportunities over time , both to invest in the Haynesville and to take molecules away from the Haynesville .

Speaker #15: Gotcha . Now that all that all makes sense , appreciate the color . And then maybe one on the Permian West expansion , open season , you know , it looks like that gas is , you know , heading westbound .

Keith Stanley: Gotcha. No, that all makes sense. Appreciate the color. Maybe one on the Permian West expansion open season. It looks like that gas is heading westbound. Just curious if that could be upsized if the demand is there. Maybe some color on the customer mix. There's obviously some data centers where that expansion is heading. Is there demand also beyond Texas as well?

Speaker #15: Just curious if that could be upsized . If the demand is there and then maybe a some color on the customer mix , you know , there's obviously some data centers where that expansion is heading .

Speaker #15: Is there demand also beyond Texas as well?

Speaker #10: Yeah . Look , I mean , I think I believe you're referring to the the smaller open season that we've got out there going west .

Tom Martin: Yeah. Look, I mean, I think you're referring to the smaller open season that we've got out there going west. That is to serve power, and as the open season closes, we'll evaluate the bids and look at what we can do to accommodate the capacity, clearly in and around that area. If you kind of flip over one state over into New Mexico, there's a lot of activity on the power side.

Speaker #10: That is , you know , that is to serve power . And , you know , obviously as the open season closes , we'll evaluate the bids and look at what we can do to accommodate the capacity .

Speaker #10: Clearly in and around that area . And then if you kind of flip over , you know , one state over in the New Mexico , there's a lot of activity on the power side .

Speaker #10: And so, we're just going to have to evaluate how the bids come across.

Operator: going to have to evaluate how the bids come across.

Speaker #15: Gotcha . Makes sense . Thanks for all the answers .

Operator: Gotcha. Makes sense. Thanks for all the answers.

Speaker #10: Absolutely .

Operator: Absolutely.

Speaker #2: Thank you . Our next caller is Brandon Bigham with Scotiabank . Your line is open sir .

Rich Kinder: Thank you. Our next caller is Brandon Bigham with Scotiabank. Your line is open, sir.

Speaker #16: Hey . Good afternoon . Thanks for taking the questions . Just one quick one here for me . Would just be curious as to what you guys think the longer term market dynamics are in California for the refined products market and whether or not there's upside potential for Western Gateway or any other future growth in into that market , just any high level thoughts you have ?

Kimberly Dang: Hey, good afternoon. Thanks for taking the questions. Just one quick one here from me. Would just be curious as to what you guys think the longer-term market dynamics are in California for the refined products market and whether or not there's upsize potential for Western Gateway or any other future growth into that market. Just any high-level thoughts you have.

Speaker #17: Yeah , I'd say we wouldn't want to speculate on the California markets and what's happening there . But if you think about our reversal of the West Line and that volume , eating out to be filled through the new gateway line into Phoenix , you've got this access into California .

Operator: Yeah, I'd say we wouldn't want to speculate on the California markets and what's happening there. If you think about our reversal of the West Line and that volume needing now to be filled through the new Gateway line into Phoenix, you've got this access into California. Depending on what that California refining market does, you've got the capacity across that West Line to continue to grow with changes in that market. As we've talked before, you also have access beyond through our CalNev line into Las Vegas, Nevada.

Speaker #17: So depending on what that California refining market does , you've got the capacity across that west line to continue to grow with changes in that market .

Speaker #17: And then, as we've talked about before, you also have access beyond through our Cal Nev line into Las Vegas, Nevada.

Speaker #16: Okay , great . That's helpful . I'll leave it there . Thanks .

Kimberly Dang: Okay, great. That's helpful. I'll leave it there. Thanks.

Speaker #2: Thank you . Our next caller is Jason Gabelman with TD Cohen . Your line is open , sir .

Rich Kinder: Thank you. Our next caller is Jason Gabelman with TD Cowen. Your line is open, sir.

Speaker #18: Yeah . Hey , thanks for taking my questions . I wanted to ask about the shadow backlog as well . And you mentioned both kind of large scale and smaller projects .

Tom Martin: Yeah, hey, thanks for taking my questions. I wanted to ask about the shadow backlog as well. You mentioned both kind of large scale and smaller projects. I was hoping to get a bit more color on the larger projects. If I look at the backlog that you have right now in projects in execution, it's kind of three large projects that are all serving Texas and Southeast. Should we assume the large projects in the backlog are kind of similar in markets they serve, or is it kind of a bit different? I noted, for example, you mentioned Mexico a couple of times and wondering if that's one of the larger projects in the backlog. Thanks.

Speaker #18: And I was hoping to get a bit more color on the larger projects . If I look at the backlog that you have right now in projects and execution , it's kind of three large projects that are all serving Texas and Southeast .

Speaker #18: Should we assume the large projects in the backlog are kind of similar in markets they serve , or is it is it kind of a bit different ?

Speaker #18: I noted , for example , you mentioned Mexico a couple of times and wondering if that's one of the larger projects in the backlog .

Speaker #18: Thanks .

Speaker #4: Well , so all these projects are competitive . Almost everyone that we're working on . And so that's why , you know , we haven't given it .

Operator: All these projects are competitive, almost every one that we're working on. That's why, you know, we haven't given it—we've tried to be very broad in how we describe the backlog. What I would say about the larger projects in the backlog is generally, they are around the themes of, you know, supporting export LNG and supporting power.

Speaker #4: We've tried to be very broad in how we describe the backlog . So what I would say about the larger projects in the backlog is generally they are around the themes of , you know , supporting export , LNG and supporting power .

Speaker #18: Okay , understood . And then my other question just on M&A , you know , given there's there's starting to see a once again , a bit of a larger multiple dispersion between natural gas and liquids names .

Tom Martin: Okay. Understood. My other question is just on M&A. Given there's starting to see, once again, a bit of a larger multiple dispersion between natural gas and liquids names, and given you do have a decent-sized non-natural gas business, I wonder if there's opportunities out there, or holes in the portfolio that you'd be interested in filling, especially if crude oil prices fall and some other companies become available. Thanks.

Speaker #18: And and given you do have a decent sized non-natural gas business , I wonder if there's opportunities out there or holes in the portfolio in the portfolio that you'd be interested in filling , especially if crude oil prices fall and some other companies become available .

Speaker #18: Thanks .

Speaker #4: Are you talking about buying? Yeah.

Operator: You're talking about buying? Mm-hmm.

Speaker #18: Okay . Yeah .

Tom Martin: Yeah.

Operator: Okay.

Tom Martin: Yeah.

Speaker #4: So look , I , I mean , I think acquisitions , M&A is always opportunistic . And so we will look at opportunities for assets that fit our strategy , which is owning , you know , energy assets , energy assets , infrastructure assets , fee based .

Operator: I think acquisitions, M&A is always opportunistic. We will look at opportunities for assets that fit our strategy, which is owning energy assets, energy infrastructure assets, fee-based, and we can do it on returns that we think are appropriate on a risk return basis and that we can do within keeping our balance sheet within the metrics, 3.5 to 4.5 times debt to EBITDA. I don't, I think our view is there's unlimited capital for good return, good risk return opportunities. We'll continue to look at those. We've done some in the recent past. We haven't done anything that's huge, but we did one at the beginning of this year in Outrigger. We did one last year as well. Those things are hard to predict. I think we either have the capital, depending on the size, or can find the capital to pursue those when they come about.

Speaker #4: You know , and you know we can do it on returns that we think are appropriate on a risk return basis . And that we can do within , you know , keeping our balance sheet within the metrics , three and a half to four and a half times debt to EBITDA .

Speaker #4: So I don't , you know , again , I think our view is there's unlimited capital for good return , good risk return opportunities .

Speaker #4: And so we'll continue to look at those we've done some in the recent past . We haven't done anything that's huge . But you know we did one at the end of the beginning of this year .

Speaker #4: And outrigger , we did one last year as well . And so you know , those things those things are hard to predict .

Speaker #4: But I think , you know , we either have the capital depending on the size or can find the capital to pursue those when they come about .

Speaker #18: Okay . Great . Thanks for the answers .

Tom Martin: Okay, great. Thanks for the answers.

Speaker #2: Thank you. Our next caller is Dave Williams with Prudential. Your line is open, sir.

Rich Kinder: Thank you. Our next caller is Dave Winnans with Prudential. Your line is open, sir.

Speaker #19: Hey , thank you for taking a buy . Side question . I appreciate it . You guys got a you guys got a great opportunity set in natural gas .

Kimberly Dang: Hey, thank you for taking my bite-sized question. I appreciate it.

Operator: Oh.

Kimberly Dang: You guys got a great opportunity set in natural gas, but just kind of switching gears a little bit here to the CO2 business. At least one operator is talking about, you know, potentially using CO2 sweeps in some of these tight plays out in the Midland and, you know, Delaware basins and such. Is that something you guys have looked at? Does that represent a business opportunity for Kinder Morgan, or do you need to see more proof of concept around something like that?

Speaker #19: But just kind of switching gears a little bit here to the CO2 business . At least one operator is talking about potentially using CO2 sweeps in some of these type plays out in the Midland .

Speaker #19: And , you Delaware basins and such . Is that something you guys have looked at ? Is that representing business opportunity for Kinder Morgan , or do you need to see more proof of concept around something like that ?

Speaker #20: Are you talking about participating in that , Dave ? Are you talking about supplying CO2 either ? I think with regards to supplying the CO2 , we certainly would be interested in that .

Tom Martin: Are you talking about participating in that, Dave, or are you talking about supplying the CO2?

Kimberly Dang: Either.

Tom Martin: I think with regards to supplying the carbon dioxide (CO2), we certainly would be interested in that. I think in terms of the other side of that, we would have to look at that a lot more closely and really seriously look at the risk return opportunity there before we would consider investing.

Speaker #20: I think in terms of the other side of that , I think we would have to look at that a lot more closely .

Speaker #20: And really seriously look at the risk return opportunity there . Before we would consider investing .

Speaker #4: Yeah . And it depends on , you know , my understanding on a lot of these , Anthony , is it depends on how they frack that field to begin with to whether they would be successful CO2 candidates .

Operator: It depends on, you know, my understanding on a lot of these, Anthony, it depends on how they frack that field to begin with, so whether they would be successful CO2 candidates. I think any time you're doing something new, you need to get a much higher return on that to compensate for the risk of doing something that you haven't spent a lot of time doing before. Obviously, we know what we're doing in CO2, but we haven't done a lot of flooding of these previously fracked fields.

Speaker #4: And I think anytime you're doing something new, you need to get a much higher return on that to compensate for the risk of doing something that you haven't spent a lot of time doing before.

Speaker #4: Obviously , we know what we're doing in CO2 , but we haven't done a lot of flooding of these previously fracked fields .

Speaker #19: Hey, thank you very much.

Kimberly Dang: Right. Thank you very much.

Speaker #2: Thank you . Our next caller is Jean Ann Salisbury with Bank of America . Your line is open .

Rich Kinder: Thank you. Our next caller is Jean Ann Salisbury with Bank of America. Your line is open.

Speaker #21: Hi , Kim , I just wanted to follow up on the comment that you made about needing to build pipelines from kind of tier two basins , not the Haynesville to the LNG .

David Michels: Hi, Kim. I just wanted to follow up on the comment that you'd made about needing to build pipelines from kind of tier-two basins, not the Haynesville, to the LNG that's coming online. One issue, I guess, that I had been thinking about is that it's a little bit unclear who would be willing to underwrite these contracts, with the LNG builders kind of being linked to Henry Hub and the E&Ps maybe not wanting to take long-term contracts. I was just wondering if you could give any color on if you see that being kind of a constraint to these being built and if you think it'll be a mix of end users, E&Ps, and marketers on those kinds of pipelines.

Speaker #21: That's coming online . One issue , I guess , that I had been thinking about is that it's a little bit unclear who would be willing to underwrite these contracts with the LNG builders kind of being linked to Henry Hub and the MPs ?

Speaker #21: Maybe not wanting to take long term contracts . So I was wondering if you could give any color on if you see that being kind of a constraint to these being built and just if you think it'll be a mix of end users , MPs and marketers on those kinds of pipelines .

Speaker #4: Yeah , I mean , on second tier basins , you know , something like the Eagle Ford , I think is very well positioned .

Operator: Yeah. I mean, on second-tier basins, you know, something like the Eagle Ford, I think, is very well positioned. I think there's, you know, one, that'd be great for us because we've got a great position in the Eagle Ford. I think that is a basin that could grow more than what is in a lot of the current projections, and a place where infrastructure is relatively easy to build. I think the Haynesville has a lot of growth to come to support this. But Cecil?

Speaker #4: And I think there's , you know , one that'd be great for us because we've got a great position in the Eagle Ford .

Speaker #4: And , you know , I think that is a basin that could grow more than what , you know , is in a lot of the is in a lot of the current projections and a place where infrastructure is relatively is relatively easy , easy to build .

Speaker #4: And then , you know , I think the the Haynesville has a lot of growth to come to , to support this . But .

Speaker #10: Yeah , you know , when we when we look at this , I think as the markets start figuring out what where they can actually get a molecule that'll drive .

Operator: Yeah, you know, when we look at this, I think as the markets start figuring out where they can actually get a molecule, that'll drive. I would, you know, the way that I would answer the question right now is that would be driven primarily by the market pulling from the supply and then some of the producing base, you know, producers, you know, kind of complementing. It's going to take a little bit of both, especially in the second-tier basins. I think that's going to evolve over time as the plumbing gets, you know, kind of discovered, where we can get gas, where you can source gas, and how that moves through the networks, through the grid, the pipeline grids to be able to get to the consumer. That's the way I would think about that.

Speaker #10: So, I would, you know, the way I would answer the question right now is that we'd be driven primarily by the market pulling from the supply.

Speaker #10: And then some of the , the producing base , you know , producers , you know , kind of complementing . It's going to it's going to take a little bit of both , especially in the second tier base basins , you know , and I think that's going to evolve over time as , as , as the plumbing gets , you know , kind of discovered where , where , where we can get gas , where you can source gas and how that , how that moves through the networks to the grid , the pipeline grids to be able to get to the consumer .

Speaker #10: That's the way I would think about that .

Speaker #21: Great . I'll leave it there . Thank you . For for taking my question .

David Michels: Great. I'll leave it there. Thank you for taking my question.

Speaker #2: Thank you. At this time, I am showing no further questions.

Rich Kinder: Thank you. At this time, I am showing no further questions.

Speaker #3: Okay . Michelle , thank you very much . And everybody have a good evening .

Kimberly Dang: Okay, Michelle, thank you very much. Everybody, have a good evening.

Rich Kinder: Thank you. This concludes today's conference call. You may go ahead and disconnect at this time.