Q4 2025 DT Midstream Inc Earnings Call

February 19, 2026

Speaker #1: Please go ahead, sir. Good morning and welcome, everyone. Before we get started, I would like to remind you to read the safe harbor statement on page 2 of the presentation.

Todd Lohrmann: Good morning, and welcome, everyone. Before we get started, I would like to remind you to read the safe harbor statement on page 2 of the presentation, including the reference to forward-looking statements. Our presentation also includes references to non-GAAP financial measures. Please refer to the reconciliations to GAAP contained in the appendix. Joining me this morning are David Slater, Executive Chairman and CEO, and Jeff Jewell, Executive Vice President and CFO. With that, I'll go ahead and turn the call over to David.

Speaker #1: Including the reference to forward-looking statements. Our presentation also includes references to non-GAAP financial measures. Please refer to the reconciliations to GAAP contained in the appendix.

Speaker #1: Joining me this morning are David Slater, Executive Chairman and CEO, and Jeff Jewell, Executive Vice President and CFO. With that, I'll go ahead and turn the call over to David.

Speaker #2: Thanks, Todd, and good morning, everyone, and thank you for joining. During today's call, I'll discuss our 2025 accomplishments, recap the strategic milestones DTM has achieved since our spin-off approximately five years ago, and provide an update on our organic growth project backlog and our outlook for 2026 and beyond.

David Slater: ... Thanks, Todd, and good morning, everyone, and thank you for joining. During today's call, I'll discuss our 2025 accomplishments, recap the strategic milestones DTM has achieved since our spin-off approximately 5 years ago, and provide an update on our organic growth project backlog and our outlook for 2026 and beyond. I'll then close with some observations on the current natural gas market fundamentals before turning it over to Jeff to review our financial performance and guidance. So with that, 2025 was another record year for DTM. Our Adjusted EBITDA exceeded our increased guidance midpoint and represents a 17% increase from the prior year, driven by significant growth in the pipeline segment, which has been a strategic focus for the company since we spun.

Speaker #2: I'll then close with some observations on the current natural gas market fundamentals before turning it over to Jeff to review our financial performance and guidance.

Speaker #2: So with that, 2025 was another record year for DTM. Our adjusted EBITDA exceeded our increased guidance midpoint, and represents a 17% increase from the prior year.

Speaker #2: Driven by significant growth in the pipeline segment, which has been a strategic focus for the company since we spun. The end of 2025 also marked one year since our Midwest pipeline acquisition, and I'm very pleased to report that we have successfully completed the integration of these assets. I'd like to take a moment to recognize and thank the team for their hard work on this effort.

David Slater: The end of 2025 also marked 1 year since our Midwest pipeline acquisition, and I'm very pleased to report that we have successfully completed the integration of these assets, and I'd like to take a moment to recognize and thank the team for their hard work on this effort. From a commercial perspective, last year, we advanced more than $1 billion of organic opportunities from our backlog, of which 80% is for pipeline projects. On the construction front, we continued our successful track record of project execution. Most notably, our construction team placed the LEAP Phase Four expansion into service early and on budget, increasing the capacity of LEAP to 2.1 BCF/d. Additionally, we placed several gathering projects into service across our footprint, which enabled us to achieve record-high throughput in 2025.

Speaker #2: From a commercial perspective, last year we advanced more than $1 billion of organic opportunities from our backlog, of which 80% is for pipeline projects.

Speaker #2: On the construction front, we continued our successful track record of project execution, most notably our construction team placed the LEEP Phase 4 expansion into service early and on budget, increasing the capacity of LEEP to 2.1 BCF per day.

Speaker #2: Additionally, we placed several gathering projects into service across our footprint, which enabled us to achieve record-high throughput in 2025. We also continued our disciplined financial management, prioritizing a strong balance sheet and achieved investment-grade credit ratings across all three rating agencies.

David Slater: We also continued our disciplined financial management, prioritizing a strong balance sheet, and achieved investment-grade credit ratings across all three rating agencies. So I am very pleased with our overall performance last year, which reflects the continued focused execution of our core strategy: pure play natural gas, leading contribution from the pipeline segment, long-term demand-based contracts, and a high-quality portfolio of strategically located assets. Since we spun the company nearly five years ago, DTM has consistently outperformed the broader market and our midstream peers, delivering total shareholder return of approximately 280%, including 12% compounded annual Adjusted EBITDA growth and a consistently growing and durable dividend. Our high-quality natural gas pipeline segment has driven this growth, increasing from 50% of our business to 70% today, the highest among our peer group.

Speaker #2: So I am very pleased with our overall performance last year, which reflects the continued focused execution of our core strategy: pure-play natural gas leading contribution from the pipeline segment, long-term demand-based contracts, and a high-quality portfolio of strategically located assets.

Speaker #2: Since we spun the company nearly five years ago, DTM has consistently outperformed the broader market and our midstream peers. Delivering total shareholder return of approximately $280%, including 12% compounded annual adjusted EBITDA growth, and a consistently growing and durable dividend.

Speaker #2: Our high-quality natural gas pipeline segment has driven this growth. Increasing from 50% of our business to 70% today, the highest among our peer group.

Speaker #2: Our portfolio continues to be well-contracted, with 95% demand-based agreements and an average contract tenor of eight years, which reflects how the market values these assets and our ability to continually replenish the contract tenor.

David Slater: Our portfolio continues to be well contracted, with 95% demand-based agreements and an average contract tenure of eight years, which reflects how the market values these assets and our ability to continually replenish the contract tenure. We have also successfully executed focused, strategic bolt-on acquisitions that have increased our ownership in regulated pipeline assets. All of these great accomplishments could not have been achieved without the hard work and dedication from our team, to whom I am forever grateful and who continue to be the foundation of our success. Their commitment to safety, performance excellence, and customer service are core elements of our exceptional results, and I'm excited for the future and our ability to deliver on the tremendous opportunities ahead.

Speaker #2: We have also successfully executed focused strategic bolt-on acquisitions that have increased our ownership in regulated pipeline assets. All of these great accomplishments could not have been achieved without the hard work and dedication from our team, to whom I am forever grateful and who continue to be the foundation of our success.

Speaker #2: Their commitment to safety, performance excellence, and customer service are core elements of our exceptional results. And I'm excited for the future and our ability to deliver on the tremendous opportunities ahead.

Speaker #2: Turning to 2026 and beyond, we are very well positioned within the natural gas ecosystem to serve the increasing demand across our footprint and continue our track record of premium, high-quality natural gas pipeline growth.

David Slater: Turning to 2026 and beyond, we are very well positioned within the natural gas ecosystem to serve the increasing demand across our footprint and continue our track record of premium, high-quality natural gas pipeline growth. Supported by strong fundamentals, we are embarking upon a window of generational investment opportunities and have updated our overall organic project backlog to reflect this, increasing it by approximately 50% to $3.4 billion over the next five years, with pipeline projects leading the way, comprising approximately 75% of the backlog. Our growth backlog represents our FID projects and probability-adjusted future organic opportunities that we are committing to execute on and can be fully funded with our strong cash flows and healthy balance sheet. The gross backlog is much larger, which is an indicator of the extraordinary opportunity set that exists.

Speaker #2: Supported by strong fundamentals, we are embarking upon a window of generational investment opportunities, and have updated our overall organic project backlog to reflect this.

Speaker #2: Increasing it by approximately 50% to 3.4 billion over the next five years. With pipeline projects leading the way comprising approximately 75% of the backlog, our growth backlog represents our FID projects and probability-adjusted future organic opportunities that we are committing to execute on, and can be fully funded with our strong cash flows and healthy balance sheet.

Speaker #2: The growth backlog is much larger, which is an indicator of the extraordinary opportunity set that exists. We will continue our prudent capital allocation through this investment cycle and expect to deliver growth above our long-term growth rate guidance in the later part of the decade.

David Slater: We will continue our prudent capital allocation through this investment cycle and expect to deliver growth above our long-term growth rate guidance in the later part of the decade, driven by sizable projects being placed in service. With that, I'm pleased that 2026 is already off to a great start, and we are announcing that we've reached FID on 2 new projects in our pipeline segment. The first is an expansion of Viking to serve load growth in Grand Forks, North Dakota, and is anchored by an investment-grade utility customer under a long-term negotiated rate contract and is expected to go into service in Q4 2027. The second is our next phase of Interstate Pipelines Modernization program, which will be focused on Midwestern Gas Transmission and will improve the reliability of this critical capacity serving the market corridor between Chicago and Nashville.

Speaker #2: Driven by sizable projects being placed in service, with that, I'm pleased that 2026 is already off to a great start. And we are announcing that we've reached FID on two new projects in our pipeline segment.

Speaker #2: The first is an expansion of Viking to serve low-growth in Grand Forks, North Dakota. And is anchored by an investment-grade utility customer under a long-term negotiated rate contract and is expected to go into service in Q4 2027.

Speaker #2: The second is our next phase of interstate pipelines modernization program. Which will be focused on Midwestern pipeline, and will improve the reliability of this critical capacity serving the market corridor between Chicago and Nashville.

Speaker #2: With these projects commercialized, we have approximately $1.6 billion committed out of our $3.4 billion backlog. We are also advancing additional pipeline projects toward FID.

David Slater: With these projects commercialized, we have approximately $1.6 billion committed out of our $3.4 billion backlog... We are also advancing additional pipeline projects towards FID. Vector Pipeline closed a successful binding open season for an expansion to increase westbound capacity into Chicago by approximately 400 million cubic feet per day, and has the contractual support needed to move forward, subject to final approvals from both owners and is expected to be in service in Q4, 2028. Millennium Pipeline has obtained contractual support for the R2R project, as long-term agreements have been executed with two utilities and an existing power plant. Subject to final approvals from both owners, the project is expected to be fully in service in Q1, 2027. We will provide more updates once these projects are formally approved.

Speaker #2: Vector pipeline closed a successful binding open season for an expansion to increase westbound capacity into Chicago by approximately $400 million cubic feet per day, and has a contractual support needed to move forward, subject to final approvals from both owners.

Speaker #2: And is expected to be in service in Q4 2028. Millennium Pipeline has obtained contractual support for the R2R project, as a long-term agreements have been executed with two utilities and an existing power plant.

Speaker #2: Subject to final approvals from both owners, the project is expected to be fully in service in Q1 2027. We will provide more updates once these projects are formally approved.

Speaker #2: Turning to Project Construction, we placed the Stonewall Mountain Valley Pipeline Expansion into service early and on budget at the beginning of February. And deliveries are being made to Mountain Valley for multiple customers.

David Slater: Turning to project construction, we placed the Stonewall Mountain Valley Pipeline expansion into service early and on budget at the beginning of February, and deliveries are being made to Mountain Valley for multiple customers. In addition, our Phase Three Appalachia Gathering System expansion has now reached full in-service, also early and on budget. All other previously announced growth investment projects remain on track and on budget. Finally, I'd like to take a moment to provide our view on the natural gas market fundamentals. Natural gas has firmly established itself as a core North American fuel, offering unmatched affordability and reliability, lower emissions, and the security of a domestic resource base. It underpins the onshoring of manufacturing, rapid data center development, and the continued build-out of LNG exports, all key drivers of long-term demand and foundational to America's global competitive posture.

Speaker #2: In addition, our Phase 3 Appalachia Gathering System Expansion has now reached full in service. Also early and on budget. All other previously announced growth investment projects remain on track and on budget.

Speaker #2: Finally, I'd like to take a moment to provide our view on the natural gas market fundamentals. Natural gas is firmly established itself as a core North American fuel, offering unmatched affordability and reliability lower emissions and the security of a domestic resource base.

Speaker #2: It underpins the onshoring of manufacturing, rapid data center development, and the continued build-out of LNG exports. All key drivers of long-term demand and foundational to America's global competitive posture.

Speaker #2: With these tailwinds, the stage is set for specific opportunities driving our strategy, and we are seeing these strong structural demand signals across our operating footprint.

David Slater: With these tailwinds, the stage is set for specific opportunities driving our strategy, and we are seeing these strong structural demand signals across our operating footprint. Demand for natural gas to serve power continues to accelerate across the Upper Midwest, with approximately 35 gigawatts of coal plant generation expected to retire in the next 10 to 15 years, and increasing announcements of new large loads and data centers being cited. This demand is largely going to land with the utilities in these states, who have announced contracted and potential large load opportunities of approximately 50 gigawatts and are planning to invest close to $150 billion in new generation over the next 5 years to keep pace with load growth.

Speaker #2: Demand for natural gas to serve power continues to accelerate across the upper Midwest, with approximately 35 gigawatts of coal plant generation expected to retire in the next 10 to 15 years.

Speaker #2: And increasing announcements of new, large loads and data centers being sited. This demand is largely going to land with the utilities in these states.

Speaker #2: Who have announced contracted and potential large load opportunities of approximately 50 gigawatts, and are planning to invest close to $150 billion in new generation over the next five years.

Speaker #2: To keep pace with low growth. These are large numbers, and while not all power demand will be served by natural gas, we see an addressable opportunity set of up to 13 BCF per day and a pathway that could easily result in 5 to 8 BCF per day of potential incremental gas demand in the upper Midwest.

David Slater: These are large numbers, and while not all power demand will be served by natural gas, we see an addressable opportunity set of up to 13 BCF per day and a pathway that could easily result in 5 to 8 BCF per day of potential incremental gas demand in the upper Midwest. DTM's extensive interstate gas pipeline network is uniquely located across this region and is already serving many of the utilities that will experience this load growth, positioning us to fuel many of these opportunities. On the LNG front, we saw 4 terminals reach FID in 2025, as well as international companies vertically integrating in the Haynesville to extend their natural gas value chain, both of which will support strong and sustained export demand. We expect LNG demand to grow by 11 BCF through 2030, with two-thirds being served by the Haynesville.

Speaker #2: DTM's extensive interstate gas pipeline network is uniquely located across this region and is already serving many of the utilities that will experience this low growth.

Speaker #2: Positioning us to fuel many of these opportunities. On the LNG front, we saw four terminals reach FID in 2025, as well as international companies vertically integrating in the Haynesville to extend their natural gas value chain.

Speaker #2: Both of which will support strong and sustained export demand. We expect LNG demand to grow by 11 BCF through 2030, with two-thirds being served by the Hanesville.

Speaker #2: And our integrated system, with its leading connectivity to both supply and demand markets, is exceptionally well positioned to capitalize on these strengthening trends. I'd also like to address the recent cold weather.

David Slater: And our integrated system, with its leading connectivity to both supply and demand markets, is exceptionally well-positioned to capitalize on these strengthening trends. I'd also like to address the recent cold weather. It has illuminated the tightness that exists today in the North American market, resulting in extreme price volatility across our entire footprint, a signal of capacity constraints driven by demand growth. The natural gas pipeline and storage network performed very well during the cold, demonstrating its reliability to serve its existing firm customers. However, the price volatility is a strong signal that we need to build and expand the pipeline network to bring more natural gas to serve the growing demand. For DTM, this winter, our storage complex recorded all-time high withdrawals, and many of our pipelines experienced record-high peak day throughputs.

Speaker #2: It has illuminated the tightness that exists today in the North American market. Resulting in extreme price volatility across our entire footprint. A signal of capacity constraints driven by demand growth.

Speaker #2: The natural gas pipeline and storage network performed very well during the cold. Demonstrating its reliability to serve its existing firm customers. However, the price volatility is a strong signal that we need to build and expand the pipeline network to bring more natural gas to serve the growing demand.

Speaker #2: For DTM, this winter our storage complex recorded all-time high withdrawals. And many of our pipelines experienced record high peak day throughputs. Pulling this all together today's natural gas market fundamentals makes DTM's natural gas infrastructure critically important.

David Slater: Pulling this all together, today's natural gas market fundamentals makes DTM's natural gas infrastructure critically important and positioned for growth. With that, I'll pass it over to Jeff to walk you through our financial results and outlook.

Speaker #2: And positioned for growth. And with that, I'll pass it over to Jeff to walk you through our financial results and outlook. Thanks, David. And good morning, everyone.

Jeff Jewell: Thanks, David, and good morning, everyone. For 2025, DTM's adjusted EBITDA was $1.138 billion, an increase of 17% over the prior year, supported by our pipeline segment's 27% growth, which was driven by the Midwest pipeline acquisition and higher LEAP and storage revenue. For Q4, we delivered overall adjusted EBITDA of $293 million, a $5 million increase from the prior quarter, which was driven by increased seasonal demand on our JV pipelines and higher LEAP revenue. Our gathering segment results were in line with Q3. Operationally, for the quarter, we achieved a record high in total gathering volumes, with the Haynesville averaging above 1.9 Bcf/d, slightly down from Q3 due to upstream maintenance....

Speaker #2: For 2025, DTM's adjusted EBITDA was $1.138 billion, an increase of 17% over the prior year. This was supported by our pipeline segment's 27% growth, which was driven by the Midwest Pipeline Acquisition and higher LEAP and storage revenue.

Speaker #2: For the fourth quarter, we delivered overall adjusted EBITDA of $293 million, a $5 million increase from the prior quarter, which was driven by increased seasonal demand on our JV pipelines and higher LEAP revenue.

Speaker #2: Our gathering segment results were in line with the third quarter. Operationally, for the quarter, we achieved a record high in total gathering volumes, with the Hanesville averaging above $1.9 BCF per day.

Speaker #2: Slightly down from the third quarter due to upstream maintenance. Average volumes in the Northeast ramped in the fourth quarter to approximately $1.3 BCF per day, in line with our expectations of flat entry to exit for the year.

Jeff Jewell: Average volumes in the Northeast ramped in Q4 to approximately 1.3 BCF/d, in line with our expectations of flat entry to exit for the year. In 2026, Winter Storm Fern drove some production curtailments, which is contemplated in our 2026 guidance range. Moving forward to our financial outlook for 2026 and beyond, as we have done in the past, we are providing the current year guidance as well as an early outlook for the following year. For 2026, our Adjusted EBITDA guidance range is $1.155 to 1.225 billion, with the midpoint representing 6% growth over our 2025 original guidance midpoint.

Speaker #2: In 2026, winter storm Fern drove some production curtailments, which is contemplated in our 2026 guidance range. Moving forward to our financial outlook for 2026 and beyond, as we have done in the past, we are providing the current-year guidance as well as an early outlook for the following year.

Speaker #2: For 2026, our adjusted EBITDA guidance range is $1.155 to $1.225 billion. With the midpoint representing 6% growth over our 2025 original guidance midpoint. Our 2027 early outlook range for adjusted EBITDA is $1.225 to $1.295 billion.

Jeff Jewell: Our 2027 early outlook range for Adjusted EBITDA is $1.225 to 1.295 billion, with the midpoint representing a 6% increase over the 2026 guidance midpoint. Our Adjusted EBITDA guidance for 2026 and for 2027 is supported by the incremental contribution from our organic growth investments, as well as expected activity from our major producer customers. Our 2026 growth capital guidance is $420 to 480 million, and we've increased our committed capital to reflect the new FID growth projects, with approximately $390 million now committed. For 2027, we expect the level of growth investments to be above 2026, and we already have approximately $430 million committed.

Speaker #2: With the midpoint representing a 6% increase over the 2026 guidance midpoint. Our adjusted EBITDA guidance for 2026 and for 2027 is supported by the incremental contribution from our organic growth investments, as well as expected activity from our major producer customers.

Speaker #2: Our 2026 growth capital guidance is $420 to $480 million. And we've increased our committed capital to reflect the new FID growth projects, with approximately $390 million now committed.

Speaker #2: For 2027, we expect the level of growth investments to be above 2026. And we already have approximately $430 million committed. As David mentioned, we have reached FID on a Viking pipeline expansion.

Jeff Jewell: As David mentioned, we have reached FID on a Viking pipeline expansion, and we expect to invest a total of $30 to 40 million for the project. We have also FID-ed Phase Two of our interstate modernization program, which has a planned investment range of $140 to 160 million and an expected first half 2028 in-service date. The capital associated with this project will be included in the next rate case. From a balance sheet perspective, we are very pleased with obtaining investment-grade credit rating in 2025, which we are committed to preserving, as evidenced by our 2026 year-end forecast for on-balance sheet leverage of 2.9 times and proportional leverage of 3.5 times.

Speaker #2: And we expect to invest a total of $30 to $40 million for the project. We have also FID'd phase two of our interstate modernization program.

Speaker #2: Which has a planned investment range of $140 to $160 million. At an expected first half 2028 in-service date. The capital associated with this project will be included in the next rate case.

Speaker #2: From a balance sheet perspective, we are very pleased with obtaining investment-grade credit rating in 2025. Which we are committed to preserving. As evidenced by our 2026 year-end forecast for on-balance sheet leverage of 2.9 times, and proportional leverage of 3.5 times.

Speaker #2: With our cash flows being strong, and our healthy balance sheet, we will fully fund our project backlog with significant headroom for additional future growth opportunities.

Jeff Jewell: With our cash flows being strong and our healthy balance sheet, we will fully fund our project backlog with significant headroom for additional future growth opportunities. Finally, our board has declared a quarterly dividend of $0.88 per share, which represents a 7.3% increase from the prior year and continues our track record of providing leading dividend growth. Our approach to delivering a secure dividend has not changed, as we plan to grow it in line with Adjusted EBITDA and are committed to maintaining a strong coverage ratio above our 2x floor, which was 2.6x for 2025. With that, I will now pass it back over to David for closing remarks.

Speaker #2: And finally, our board has declared a quarterly dividend of $0.88 per share, which represents a 7.3% increase from the prior year, and continues our track record of providing leading dividend growth.

Speaker #2: Our approach to delivering a secure dividend has not changed. As we plan to grow it in line with adjusted EBITDA. And our committed to maintaining a strong coverage ratio above our two times floor.

Speaker #2: Which was 2.6 times for 2025. And with that, I will now pass it back over to David for closing remarks.

Speaker #1: Thanks, Jeff. So in summary, we're highly confident in delivering on our guidance, continuing our track record of strong performance. Looking ahead, the fundamentals supporting our business are exceptionally strong.

David Slater: Thanks, Jeff. So in summary, we're highly confident in delivering on our guidance, continuing our track record of strong performance. Looking ahead, the fundamentals supporting our business are exceptionally strong, and our integrated footprint sits in the most advantaged corridors to benefit from this generational investment opportunity. Our sizable organic project backlog, with potential for additional opportunities, reflects our disciplined, focused capital allocation to high-quality natural gas pipeline projects. We will continue our consistent execution of this strategy, which has delivered dependable, best-in-class growth and will continue to create significant value for years to come. And with that, we can now open up the line for questions.

Speaker #1: And our integrated footprint sits in the most advantaged corridors to benefit from this generational investment opportunity. Our sizable organic project backlog, with potential for additional opportunities, reflects our disciplined, focused, capital allocation, to high-quality natural gas pipeline projects.

Speaker #1: We will continue our consistent execution of this strategy, which has delivered dependable, best-in-class growth and will continue to create significant value for years to come.

Speaker #1: And with that, we can now open up the line for questions.

Speaker #3: Thank you, sir. And everyone, if you would like to ask a question today, please press star one on your telephone keypad. Once again, that is star one if you have a question.

Operator 3: Thank you, sir. And everyone, if you would like to ask a question today, please press star one on your telephone keypad. Once again, that is star one if you have a question. We'll go first to Teresa Chen from Barclays.

Operator: Thank you, sir. And everyone, if you would like to ask a question today, please press star one on your telephone keypad. Once again, that is star one if you have a question. We'll go first to Teresa Chen from Barclays.

Speaker #3: We'll go first to Teresa Chen from Barclays.

Speaker #4: Good morning. Thank you for taking my questions. is encouraging to see such a robust project backlog be breadth and depth of the opportunities, is impressive.

Theresa Chen: Good morning. Thank you for taking my questions. It's encouraging to see such a robust project backlog. The breadth and depth of the opportunities is impressive. Can you discuss the expected pace and cadence of commercialization from here, the key drivers behind that trajectory, and how it informs your outlook for capital spending beyond 2027?

Speaker #4: Can you discuss the expected pace and cadence of commercialization from here? What are the key drivers behind that trajectory, and how does it inform your outlook for capital spending beyond 2027?

Speaker #5: Good morning, Teresa. thanks for the question. And yes, we're extremely excited about the opportunity set that's presenting, in our in our footprint right now.

David Slater: Good morning, Teresa. Thanks for the question. And yes, we're extremely excited about the opportunity set that's presenting in our footprint right now. I'll say this, it's a very fluid market, and as we laid out all these utility announcements that have been happening over the last couple weeks, as they've talked about their year-end and their outlook, the opportunity set continues to grow. So it's a very fluid market, opportunity-rich market. All of our assets, especially our upper Midwest assets, these utilities are our current customers, so we're in detailed conversations with them about their growth trajectory and their needs. So again, I think these will move forward in a very disciplined, rational way.

Speaker #5: It, it I'll say this, it's a very fluid market. And, as we laid out, all these utility announcements that have been happening over the last couple weeks is, as Dave talked about, their year-end and, and their outlook.

Speaker #5: the opportunity set continues to grow. So it's a very fluid market. opportunity-rich market. all of our assets, especially our upper Midwest assets, these utilities are our current customers.

Speaker #5: So we're in detailed conversations with them about their growth trajectory and their needs. so again, I think these will move forward in a very disciplined, rational way.

David Slater: Many of these demands are anchored in a state regulatory framework, so they'll go through a very disciplined process with utilities, as they go through their approval process. But I think it results in a very strong and durable opportunity set for us to contract into. You know, I'd say our Guardian project last year is a really good indication of what we expect this to look like going forward. The Vector expansion into Chicago, again, anchored, utility anchored. So we're just seeing this theme kind of rolling through our asset footprint. And if I turn to the south and talk LNG briefly, again, a really clear line of sight on LNG growth.

Speaker #5: Many of these demands are anchored in a state regulatory framework. So they'll go through a very disciplined process with the utilities, as they go through their approval process.

Speaker #5: But I think it results in a very strong and durable opportunity set for us to contract, into. you know, very I, I'd say our guardian project last year was a really good indication of what we expect this to look like going forward.

Speaker #5: The vector, expansion into Chicago—again, utility-anchored—so we're just seeing this theme kind of rolling through our asset footprint. And if I turn to the South and talk LNG briefly, again, I have a really clear line of sight on LNG growth.

Speaker #5: Two-thirds of the Haynesville is expected to meet that growth. And we continue to see that demand pull. And we're in a really good position to participate in that demand growth, with LEAP.

David Slater: Two-thirds of the Haynesville is expected to meet that growth, and we continue to see that demand pull, and we're in a really good position to participate in that demand growth with LEAP.

Theresa Chen: Thank you. Maybe specifically turning to Midwestern Gas Transmission. The potential expansion of that pipeline, how are conversations progressing at this point? What scale or scope could this ultimately reach? And how are you thinking about the opportunity generally at this stage, knowing the multiple sources of demand as well as optionality for supply connectivity here?

Speaker #4: Thank you. maybe specifically turning to, Midwestern gas transmission, the potential expansion of that pipeline, how are conversations progressing at this point? What scale or scope, could this ultimately reach?

Speaker #4: And how are you thinking about the opportunity generally at this stage, knowing the multiple sources of demand as well as optionality for supply connectivity here?

Speaker #5: Yeah, that's a really exciting one, Teresa. we're in deep conversations, with our existing customers on Midwestern. For both in Northern expansion and a Southern expansion, and just if you can visualize the asset, Rex cuts right across the middle of the asset.

David Slater: Yeah, that's a really exciting one, Teresa. We're in deep conversations with our existing customers on Midwestern for both a northern expansion and a southern expansion. Just if you can visualize the asset, REX cuts right across the middle of the asset. So supply can come in from Appalachia, and it can come in from the Rockies. So there's supply diversity through the REX connection and strong demand signals to bring more gas north into the greater Chicago, upper Midwest. But we're also seeing strong demand signals to push gas south into what I'll call that greater Nashville region, that is also experiencing tremendous power demand growth.

Speaker #5: So supply can come in from Appalachia and it can come in from the Rockies. So there's supply diversity. Through the Rex connection. And, strong demand signals to bring more gas north into the greater Chicago, upper Midwest, but we're also seeing strong demand signals to push gas south into what I'll call that greater Nashville region that is also experiencing tremendous power demand growth.

Speaker #4: Thank you.

Theresa Chen: Thank you.

Speaker #3: Up next, we'll take a question from Julian Domolin Smith from Jefferies.

Operator 3: Up next, we'll take a question from Julian Dumoulin-Smith from Jefferies.

Operator: Up next, we'll take a question from Julian Dumoulin-Smith from Jefferies.

Speaker #1: Hey, good morning, everyone. It's Rob Mosko on for Julian. So pick up morning, guys. So big update here with the, the five-year growth CapEx outlook.

Rob Mosca: Hey, good morning, everyone. It's Rob Mosca on for Julian.

David Slater: Morning, Rob.

Rob Mosca: Morning, guys. So big update here with the five-year growth CapEx outlook, but hoping you could dive into how you arrive at that number, maybe how you're risk adjusting that outlook for the uncommitted CapEx, and how you characterize the texture, the geography within that uncommitted capital outlook. I'm just hoping you could dig into that gross number a little bit more.

Speaker #1: But hoping you could dive into how you arrived at that number, maybe how your risk-adjusting that outlook for the uncommitted CapEx, and, and how, how you characterize, the texture, the geography, within that uncommitted capital outlook.

Speaker #1: I'm just hoping you could dig into that gross number a little bit more.

Speaker #5: Sure. I mean, it, it's really increased from our last, outlook a year ago. And I, and I think we've talked about that as the years progressed.

David Slater: Sure. I mean, it's really increased from our last outlook a year ago, and I think we've talked about that as the years progressed, and that's the fluidity of the market. The backlog continues to grow. We're highly confident in the increase that we laid out for the investors. About half of that is FID already. The other half is highly probable. We look at our gross backlog, which, by the way, is multiples of this committed backlog that we're committing to execute on. So it's probability adjusted based on our kind of historical success ratio. So we're highly confident in deploying that $3.4 billion.

Speaker #5: And that's the fluidity of the market. The backlog continues to grow. We're highly confident in the increase that we laid out for the investors.

Speaker #5: About half of that is FID already. the other half is highly probable. We, we look at our gross backlog, which, by the way, is multiples of this committed backlog that we're committing to execute on.

Speaker #5: so it's probability adjusted based on our kind of our historical success ratio. so we're highly confident in deploying that 3.4 billion. And, as I said earlier, this is an extremely fluid market, with incremental waves of demand that seems to be showing up, every time we talk to our customers.

David Slater: And, as I said earlier, this is an extremely fluid market, with incremental waves of demand that seems to be showing up, every time we talk to our customers. So we're very bullish right now. You know, we're, we're also very disciplined, and we tend to have a conservative view on running the business, which delivers these very consistent results. So, you know, we're, we're just really in a, in a sweet spot right now in the market. The assets are in the right location, both in the north and in the south, and the fundamentals around our assets are very strong. So our job here is to commercialize this and, do it in a really, rational and, prudent manner. And I expect we're gonna continue to deliver great returns, for the investors.

Speaker #5: So we're very bullish right now. you know, we're, we're also very disciplined and we tend to have a conservative view. On running the business, which delivers these very consistent results.

Speaker #5: So you know, we're, we're, we're just really in a in a sweet spot right now in the market. The assets are in the right location.

Speaker #5: both in the north and in the south. And the fundamentals around our assets are very strong. So our job here is to commercialize this.

Speaker #5: And, do it in a really, rational and, prudent manner. and I expect we're gonna continue to deliver great returns, for the investors.

Speaker #1: I appreciate that commentary, David. and, you know, there's seems like there's a large open season for a pipeline. right now, it would serve some of that growing Midwest demand.

Rob Mosca: I appreciate that commentary, David. You know, seems like there's a large open season for a pipeline, right now, that would serve some of that growing Midwest demand. I think you alluded to in your prepared remarks. Just wondering how that expansion or other third-party expansions in the region could impact your ability to execute some of those planned pipeline expansions that you guys have or are seeking to FID, or should we not think about it as being mutually exclusive?

Speaker #1: I think you alluded to in your prepared remarks. Just wondering how that expansion or other third-party expansions in the region could impact your ability to execute some of those, those planned pipeline expansions that you guys have or, or, or seeking to FID.

Speaker #1: Or should we not think about it as being mutually exclusive?

Speaker #5: Yeah, Rob, we're, we're not afraid of competition. you know, the projects that we FID'd last year, also had competitive attention around them. You know, Guardian, Vector, so that, that's not an issue for us.

David Slater: Yeah, Rob, we're not afraid of competition. You know, the projects that we FID last year also had competitive tension around them, you know, Guardian, Vector. So that's not an issue for us. I think locationally, our assets are in the right location. It's somewhat like real estate, location matters, connectivity matters, track record matters. The other thing I'd say, you know, in my opening remarks, I kind of laid out the addressable opportunity set of 5 to 8 BCF a day, which is sizable in the upper Midwest. There's plenty of room for others to participate in that and for us to have outstanding results. You know, we don't need to get all 5 to 8 BCF. I mean, we get 1 or 2, and that's gonna be outstanding results for the company.

Speaker #5: I think locationally, our assets are in the right location. It's somewhat like real estate. Location matters. Connectivity matters. track record matters. the other thing I'd say, you know, in my opening remarks, I kind of laid out the addressable opportunity set of five to eight BCF a day, which is sizable in the upper Midwest.

Speaker #5: There's plenty of room for others to participate in that. And for us to have outstanding results, you know, we don't need to get all five to eight BCF.

Speaker #5: I mean, we get one or two, and that's gonna that's gonna be outstanding results for the company. so I, I'm not concerned about competition.

David Slater: So I'm not concerned about competition. We're focused on the market right now and on those relationships and working, you know, sort of, you know, customer by customer to provide the right answer, the right solution for their growth. And, you know, talking to these utilities, they're experiencing generational growth as well. And I think that's gonna the domino effect is gonna, you know, fall across our assets. And what I'm really excited about with our assets is the connectivity that we have across multiple assets. So, you know, you sort of, you can see it with Vector. You know, Guardian was FIDed last year. We're on the doorstep of FIDing Vector. That domino effect is playing out across our asset footprint right now, and I expect that to continue.

Speaker #5: I'm for we're focused on the market right now and on those relationships. And working you know, sort of w you know, customer by customer to, provide the right answer, the right solution.

Speaker #5: for their growth. And, you know, talking to these utilities, they're they're experiencing generational growth as well. And, I think that's gonna domino the domino effect is gonna, you know, fall across our assets.

Speaker #5: And what I'm really excited about with our assets is the connectivity that we have across multiple assets. So you know, you sort of you can see it with Vector.

Speaker #5: you know, Guardian was FID'd last year. We're on the doorstep of FIDing Vector. That domino effect is playing out across our asset footprint right now.

Speaker #5: And I expect that to continue.

Speaker #1: Got it. Appreciate the time this morning, everyone.

Rob Mosca: Got it. Appreciate the time this morning, everyone.

Speaker #3: Michael Bloom from Wells Fargo has the next question.

Operator 3: Michael Bloom from Wells Fargo has the next question.

Operator: Michael Bloom from Wells Fargo has the next question.

Speaker #1: Hey, good morning, everyone. Yeah, one of wanted to ask, on the backlog again, so you mentioned the gross backlog i-is much larger than the, the risk-adjusted backlog number that you, you provided.

Michael Blum: Hey, good morning, everyone.

David Slater: Good morning.

Michael Blum: Yeah. Wanted to ask on the backlogs again. So you mentioned the gross backlog is much larger than the risk-adjusted backlog number that you provided. I'm wondering if you're willing to give us, you know, that gross number or some way to size what that is, what some of your pipeline competitor peers would call the shadow backlogs, so we can get a sense of the total magnitude of the opportunity set.

Speaker #1: I'm wondering if you're willing to give us, you know, that gross number or, or some way to size, what that is, what some of your, pipeline competitor peers would call the shadow backlog so we can get a sense of, of the, the total magnitude of the opportunity set.

Speaker #5: Hey, Michael. I was expecting someone would ask that question. I'll say it's multiples, and I'm going to leave it at that. You guys can infer a number or a range.

David Slater: Hey, Michael, I was expecting someone would ask that question. I'll say it's multiples, and I'm gonna leave it at that, and you guys can infer a number or a range. But it's you know I use the word generational investment opportunity. It truly is. And I think for us, when I think about the sector, and we're just super focused on our core business right now, on our pipelines in our core region, and deploying capital in a really proper fashion, so that the returns show up on the other side of these large capital outlays. Certainly I recall what happened a decade ago in the sector. That didn't end well.

Speaker #5: But, it's, you know, I use the word generational investment opportunity. It's, it truly is. And, I think for us, when I think about the sector and we're focused on we're just super focused on our core business right now, on our pipelines.

Speaker #5: in our core region and deploying capital in a in a really in a proper fashion so that the returns show up on the other side of these large capital outlays.

Speaker #5: certainly, I, I, I recall what happened a decade ago in the sector. That didn't end well. We're committed that we will be deploying capital in a very prudent, rational way.

David Slater: We're committed that we will be deploying capital in a very prudent and rational way as we approach another, you know, super cycle or generational cycle of capital investment opportunity. So, you know, we're super focused on it. You know, a very robust opportunity set is a healthy backdrop for us to work within. You know, it's gonna allow us to be selective, and very focused, and do the right thing for the investors.

Speaker #5: As we, approach another, you know, super cycle or generational cycle, of capital investment opportunity. So, you know, we're super focused on it. you know, the a, a very robust opportunity set is a healthy backdrop for us to work within.

Speaker #5: You know, it's going to allow us to be selective and very focused, and do the right thing for the investors.

Speaker #1: Got it. Appreciate that. And then just wanted to ask a question on the on the growth capex. you came in a little light versus your own guidance, for '25.

Michael Blum: Got it. Appreciate that. And then just wanted to ask a question on the growth CapEx. You came in a little light versus your own guidance for 2025, and I think you had even reduced that number during this past in 2025 last year. So can you just speak to what's going on there? And is that just capital efficiency on your part, or is it timing, and that CapEx is just gonna show up in 2026?

Speaker #1: And, and I think you had even reduced that number during, this past in 2025, last year. So can you just speak to what, what's going on there?

Speaker #1: capital efficiency on your part? Or is it timing and that capex is just gonna show up in 2026?

Speaker #5: Yeah, yeah. Y-you're bang on. It's performance—you know, capital efficiency, I call it performance—and it's timing. So, it's no more complicated than that.

David Slater: Yeah. Yeah, you're bang on. It's performance, you know, capital efficiency. I call it performance, and it's timing. So it's no more complicated than that.

Speaker #1: Great. Thank you.

Michael Blum: Great. Thank you.

Speaker #3: From Goldman Sachs, John McKay has the next question.

Operator 3: From Goldman Sachs, John Mackay has the next question.

Operator: From Goldman Sachs, John Mackay has the next question.

Speaker #1: Hey, good morning, Ta guys. Thank you for the time. You know, David, you've talked a lot in the past about wanting to stay kind of front-of-meter with the utilities.

John Mackay: Hey, good morning, guys. Thank you for the time. You know, David, you've talked a lot in the past about wanting to stay kind of front of meter with the utilities. We have seen kind of behind the meter pick up some momentum again recently. I'd be curious just to hear a little bit on your view there, where it sits now, particularly in the context of a broader focus on affordability for the utilities.

Speaker #1: We have seen kind of behind the meter pick up some momentum again recently. I'd be curious just to hear a little bit on your view there where it sits now, particularly in the context of a broader focus on affordability for the utilities.

Speaker #5: Yeah, John. We're, we're seeing some of the, you know, the, the energy island load, knocking on the pipeline's door, so to speak. And, we're, we're very happy to contract with that on, on the main lines.

David Slater: Yeah, John, we're seeing some of the, you know, the energy island load knocking on the pipeline's door, so to speak. We're very happy to contract with that on the main lines, you know, long-term contracts on the main lines. So we are seeing some of that demand manifesting across the footprint. The utilities have done an exceptional job here, reeling in this market. They're doing it through a regulatory construct. When you monitor their filings, they're being very particular about explaining how it lowers the cost to their, the rest of their customers, so there's no cross-subsidization occurring. You know, and these large load customers/data centers really like the fact that the utilities are counterparty because they get a lot of comfort in that.

Speaker #5: You know, long-term contracts on the main lines. So w-we are seeing some of that demand manifesting across the footprint. the utilities have done an exceptional job here.

Speaker #5: Reeling in this market. They're doing it through a regulatory construct. When you monitor their filings, they're being very particular about explaining how it lowers the cost to the rest of their customers.

Speaker #5: So there's no, cross-subsidization occurring. You know, and, and these, these large load customers slash data centers, really like the fact that the utilities are counterparty because they get a lot of comfort in that.

Speaker #5: They're connected to the grid. There's diversity. Really strong counterparty. so there's a lot of features that the utilities are offering to this segment of the market that seems to be very attractive.

David Slater: They're connected to the grid, there's diversity, really strong counterparty. So there's a lot of features that the utilities are offering to this segment of the market that seems to be very attractive. And we're very happy to work closely with our existing utility customers to participate in bringing the fuel to these projects. So we, we like how it's playing out. It's sort of been. We've been observing this for the last 12 months, utilities being more successful than in the past, and we really like the fact that it's going into a regulated construct, which I believe provides long-term durability to the demand.

Speaker #5: and we're very happy to work closely with our existing utility customers to participate in bringing the fuel to these projects. So we, we like how it's playing out.

Speaker #5: It's sort of been we've been observing this for the last 12 months. utilities being more successful, than in the past. And we really like the fact that it's going into our regulated construct.

Speaker #5: Which I believe provides long-term durability to the demand.

Speaker #1: All right. That's clear. Thank you. S-second one from me. Is, you know, when you a l a lot of the projects you've been announcing are effectively, you know, brownfield expansions of existing assets.

John Mackay: No, that's clear. Thank you. Second one from me is, you know, when a lot of the projects you've been announcing are effectively, you know, brownfield expansions of existing assets. I'd be curious your view on the opportunity for anything on the greenfield side and/or opportunities for you to do incremental kind of bolt-on M&A and, and try to repeat what you did with the, with the ONEOK assets. Thanks.

Speaker #1: I'd be curious your view on the opportunity for anything on the greenfield side, and/or opportunities for you to do incremental kind of bolt-on M&A and try to repeat what you did with the OneOK assets.

Speaker #1: Thanks.

Speaker #5: Yeah. We are focusing predominantly on, you know, what I'll call in the footprint expansions. They're, they're easier. they're typically more economic 'cause you can scale it.

David Slater: Yeah, we are focusing predominantly on, you know, what I'll call in-the-footprint expansions. They're easier, they're typically more economic 'cause you can scale it, and they're lower risk from a execution/regulatory perspective. So I think there's a lot of features to addressing this demand through that mechanism, if you can, versus a brand-new greenfield. When we did NEXUS 10 years ago, that was a heavy, heavy lift to get that through, and then if you remember, there was a 1-year delay, a regulatory delay on that project. So it's super big capital, that if you get any delays, can have a pretty material impact on you pretty quickly. So we like the risk profile of the brownfield. In terms of greenfield, where we are seeing greenfield, you know, we continue to pursue greenfield storage opportunities.

Speaker #5: And they're lower risk from a execution slash regulatory perspective. So I think there's a lot of features to, addressing this demand through that mechanism if you can, versus a, a brand new greenfield.

Speaker #5: When we did Nexus 10 years ago, that was a heavy, heavy lift to get that through. And if you remember, there was a one-year regulatory delay on that project.

Speaker #5: So it's super big capital. That, if you get any delays, can have a pretty material impact on you pretty quickly. So we like the risk profile of the brownfield.

Speaker #5: In terms of greenfield, where we, w-where we are seeing greenfield, you know, we continue to pursue greenfield storage. opportunities. some of the, the fundamentals that we laid out in the deck where you see the extreme price volatility across our footprint.

David Slater: Some of the fundamentals that we laid out in the deck, where you see the extreme price volatility across our footprint, it's really screaming for more capacity, both pipeline and storage capacity. That's probably where we see more of a greenfield opportunity in the near term. John?

Speaker #5: It's really screaming for more capacity, both pipeline and storage capacity. So that's probably where we see more of a greenfield opportunity in the near term, John.

Speaker #1: All right. That's great. Appreciate the time. Thank you.

John Mackay: All right. That's great. Appreciate the time. Thank you.

Speaker #3: The next question comes from Jeremy Tennett from JPMorgan.

Operator 3: The next question comes from Jeremy Tonet from JP Morgan.

Operator: The next question comes from Jeremy Tonet from JP Morgan.

Speaker #1: Hi. Good morning.

Jeremy Tonet: Hi, good morning.

Speaker #5: Good morning, Jeremy.

David Slater: Morning, Jeremy. Good morning.

Speaker #6: Good morning.

Speaker #1: Just wanted to come, to slide 10 if we could. And there's been a, a lot of discussion on the capital side. But just, wondering if you could dial in a little bit more on the translation to EBITDA growth.

Jeremy Tonet: Just wanted to come to slide 10, if we could. And there's been a lot of discussion on the capital side, but just wondering if you could dial in a little bit more on the translation to EBITDA growth. The slide here says, elevated organic growth, and it points, you know, post-2027. I was just wondering if you could expand a bit more on what that looks like, what the, you know, the quantity of this elevated growth looks like.

Speaker #1: The slide here says elevated organic growth. And it points, you know, post-2027. I was just wondering if you could expand a bit more on what that looks like, what the, the, you know, the quantity of this elevated growth looks like.

Speaker #5: Sure, Jeremy. Well, I'd start with the backlog update, right? That's the fuel that goes into the equation that drives the EBITDA growth.

David Slater: Sure, Jeremy. Well, I'd start with the backlog update, right? That's the fuel that goes into the equation, that drives the EBITDA growth. And most of that capital, 75% of that capital, is deploying into the pipeline segment, which is FERC regulated, which has a longer capital invest to EBITDA generation cycle. You know, it's a 2.5- to 3-year cycle, right? So it's really going to supercharge the back end of our 5-year plan. You know, I didn't want to put a number on that. I don't want to cap that because the market is so fluid right now. The opportunity set is robust, and every time we take a fresh look at it, it seems to get more robust.

Speaker #5: And most of that capital, 75% of that capital, is deploying into the, pipeline segment, which is work-regulated, which has a longer capital invest to EBITDA generation cycle.

Speaker #5: You know, it's a two-and-a-half to three-year cycle, right? So it's really going to supercharge the back end of our five-year plan. You know, we've— I didn't want to put a number on that.

Speaker #5: I don't want to cap that because the market is so fluid right now. The opportunity set is robust, and every time we take a fresh look at it, it seems to get more robust.

David Slater: So we're early in the cycle, and I think we want to let it, let it run for a little bit before we start to try to stick the landing, so to speak, at the back of our five-year plan. But, you know, it's green, the arrow's up. We're very bullish to fundamentals. We laid out what those fundamentals are here in the deck for you, and I think this will be a conversation we can, we can have as the year unfolds, Jeremy, as to how we're feeling about this and how this starts to commercialize, and sort of the picture will take shape, for lack of a better word.

Speaker #5: so we're early in the cycle. And I think we want to let it let it run for a little bit before we start to, try to stick the landing, so to speak, at the back of our five-year plan.

Speaker #5: But, you know, it's green. The arrow's up. We're very bullish on the fundamentals. We laid out what those fundamentals are here in the deck for you.

Speaker #5: And, I think this will be a conversation we can we can have as of the year unfolds, Jeremy, as to how we're feeling about this and how this starts to commercialize and, and sort of the picture will take a cl take shape for lack of a better word.

Speaker #1: Got it. That's, that makes sense. Don't want to put a, a, a ceiling on it given all the opportunities that I was wondering, not to push too much here, but could we put a floor on it?

Jeremy Tonet: Got it. That's. That makes sense. Don't wanna put a ceiling on it, given all the opportunity set. I was wondering, not to push too much here, but could we put a floor on it? I mean, if it's 5 to 7%, you say now, and I would assume that that elevated growth is at least 7% plus, or any other way to think about what a floor might look like.

Speaker #1: I mean, if it's, five to seven percent, you say now, and I would assume that that elevated growth is at least seven percent plus or any other way to think about what a floor might look like.

Speaker #5: I think you just said it really well, Jeremy. I won't add anything to your comment there.

David Slater: I think you just said it really well, Jeremy. I won't add anything to your comment there.

Speaker #1: Got it. Great to hear. I'll leave it there. Thanks.

Jeremy Tonet: Got it. Great to hear. I'll leave it there. Thanks.

Speaker #3: The next question will come from Jean Anne Salisbury from Bank of America.

Operator 3: The next question will come from Jeanne Salisbury from Bank of America.

Operator: The next question will come from Jeanne Salisbury from Bank of America.

Speaker #7: Hi. Good morning. it looks like the gathering in the new backlog is up by a couple hundred million. even though several 2025 gathering projects came online, so I guess my question is, versus a year ago, is this an increase in expected gathering spend?

Jean Ann Salisbury: Hi, good morning. It looks like the gathering and the new backlog is up by $200 million, even though several 2025 gathering projects came online. So I guess my question is, versus a year ago, is this an increase in expected gathering spend? Is it primarily driven by the Haynesville or Appalachia, or both?

Speaker #7: Is it primarily driven by the Haynesville or Appalachia or both?

Speaker #5: Oh, that's a good question. I'd start with just reminding everybody that our gathering assets are all interconnected to our pipelines, right? So they, they feed our pipelines.

David Slater: Oh, that's a good question. I'd start with just reminding everybody that our gathering assets are all interconnected to our pipelines, right? So they, they feed our pipelines. You know, the gathering. Can we get back to you on that, Jeanne, because-

Speaker #5: you know, the gathering it I'm gonna can we get back to you on that, Jean Anne? Because.

Speaker #7: Yeah, yeah.

Jean Ann Salisbury: Yeah, yeah.

Speaker #5: I'm not I c I'm not 100% sure the answer to your question. I don't want to guess at it. But we'll follow up with you.

David Slater: I'm not 100% sure of the answer to your question. I don't wanna guess at it, but we'll-

Jean Ann Salisbury: Yeah.

David Slater: Follow up with you. How does that sound?

Speaker #7: Okay. Yeah. No, no problem. I'll, I'll, I'll circle back to with Todd. and then a-as my follow-up, you know, th-there's a comment in the deck about future LEAP expansions, likely being tied to the next wave of LNG in 2028 to 2030.

Speaker #5: How's that sound?

Jean Ann Salisbury: Yeah, no, no problem. I'll circle back to with Todd. And then as my follow-up, you know, there's a comment in the deck about future LEAP expansions likely being tied to the next wave of LNG in 2028 to 2030. I kind of wanted to clarify what that meant. I guess my understanding was that most of the LNG projects under construction had already kind of tied up their gas supply. I guess, you know, maybe that's wrong, or if you basically, if you are expecting a whole wave of new contracting to come as these projects under construction start to come online.

Speaker #7: I kind of wanted to clarify what that meant. I guess my understanding was that most of the LNG projects under construction had already kind of tied up their gas supply.

Speaker #7: I guess, you know, maybe that's wrong. Or if you basically—if you are expecting a whole wave of new contracting to come as these projects under construction start to come online.

Speaker #5: Yeah. I think I think you've got two projects that just came online. You know, the second half of last year. And that's getting absorbed into the market.

David Slater: Yeah, I think you've got two projects that just came online, you know, the second half of last year, and that's getting absorbed into the market. I think this next wave is going to be the wave that drives the next round of incremental expansion. We're in detailed conversations with numerous shippers on this topic right now, so it feels very ripe for us. So I would just stay tuned and as we commercialize these, we'll be sharing them.

Speaker #5: And I think this, this next wave is going to be the wave that drives the next round of incremental expansion. We're in detailed conversations with numerous shippers on this topic right now.

Speaker #5: So, it feels very ripe for us. So I would just stay tuned. And, as we commercialize these, we'll, we'll be sharing them.

Speaker #7: All right. Thank you very much.

Operator 2: All right. Thank you very much.

Jean Ann Salisbury: All right. Thank you very much.

Speaker #5: You're welcome.

David Slater: You're welcome.

Speaker #3: Keith Stanley from Woolf Research is up next.

Operator 3: Keith Stanley from Wolfe Research is up next.

Operator: Keith Stanley from Wolfe Research is up next.

Keith Stanley: Hi, good morning, and I'd like to circle back on slide 10. So, David, know you don't want to put a cap on the 2030 outlook, but, you know, that green bar, you can kind of figure out where it's going if you just extrapolate the chart. I guess I'm curious, in that 2030 figure, you know, we're getting to, like, a 7 to 8% CAGR through 2030. Is that directionally right over a five-year period? And when you show that green bar, is that only baking in sanctioned projects to date, or is that including a fair amount of executing on the unsanctioned projects that you've identified as well?

Speaker #8: Hi, good morning. And I'd like to circle back on slide 10. So, David, no, you don't want to put a, a, a cap on the 2030 outlook.

Speaker #8: But, you know, that green bar, you can you can kind of figure out where it's going if you just extrapolate the chart. I, I guess I'm curious in that 2030 figure, you know, we're getting to, like, a seven to eight percent CAGR through 2030.

Speaker #8: Is that directionally right over a five-year period? And when you show that green bar, is that only baking in sanctioned projects to date? Or is that including a fair amount of executing on the unsanctioned projects that you've identified as well?

Speaker #5: Keith, that green bar boxes out to the updated backlog—the $3.4 billion. So that's kind of the way to think about it.

David Slater: Keith, that green bar boxes out to the updated backlog, the $3.4 billion. So that's kind of the way to think about it. And, you know, what I'll say, it's exceeding our the high end of our $5 to 7. And again, I, we're at this point, we're just too early in the game and there's too much fluidity in the market right now in terms of putting a number on it. As I said, I don't want to cap it. I want to let the market unfold a little bit, and we'll be the first people to give you better clarity on that once we're confident in our execution.

Speaker #5: And, you know, what I'll say: it's exceeding the high end of our five to seven. And again, at this point, we're just too early in the game.

Speaker #5: And there's too much fluidity in the market right now in terms of putting a number on it. As I said, I don't want to cap it.

Speaker #5: I want to let the market unfold a little bit, and we'll be the first people to give you better clarity on that once we're confident in our execution.

Speaker #8: Got it. So just to clarify on that, the green bar is effectively the $3.4 billion divided by the EBITDA build multiples that you're assuming in that outlook.

Keith Stanley: Got it. So just to clarify on that, the green bar is effectively the $3.4 billion divided by EBITDA build multiples that you're assuming in that outlook?

Speaker #5: That—that would be the back-of-the-envelope math, Keith, what you just said.

David Slater: That would be the back-of-the-envelope math, Keith, what you just said.

Keith Stanley: Okay, great. Thanks for that. Second question, just following up on the Midwestern expansion potential. Any better sense of timing? You said you're in deep conversations. I assume you need an open season there. Just any sense of when you're hoping to get more clarity on that project? Is it next six months? Is it beyond that? Just how would you, how would you put that?

Speaker #8: Okay. Okay. Great. Than-thanks for that. second question, just following up on the Midwestern expansion potential. Any better sense of timing? You said you're in deep conversations.

Speaker #8: I, I assume you need an open season. Is there any sense of when you're hoping to get more clarity on that project? Is it in the next six months?

Speaker #8: Is it beyond that? Just, how would you—how would you put that?

Speaker #5: Yeah. It's definitely in front of us right now, Keith. Like, right in front of us. you know, so there-there's clearly, a need for more volumes into Chicago.

David Slater: Yeah, it's definitely in front of us right now, Keith, like, right in front of us. You know, so there, there's clearly a need for more volumes into Chicago. You know, we commercialized the Vector piece. We've turned our attention now to Midwestern. We'll turn our attention back to Vector as well, for another round there. But, yeah, it's front and center, and it's on everyone's mind right now. All of our customers are looking closely at all of this. As I kind of alluded to, we're in deep discussions with a lot of the shippers, predominantly the regulated entities on those lines. And, you know, we're going to move at their pace, and that's what I'll say right now, but it's a hot topic right now, so.

Speaker #5: You know, we commercialized the Vector piece. We've turned our attention out of Midwestern. We'll turn our attention back to Vector as well for another round there.

Speaker #5: But, yeah, it's front and center. And it's on everyone's mind right now. All of our customers are looking closely at all of this. As I kind of alluded to, we're in deep discussions with a lot of the shippers.

Speaker #5: predominantly, the U the, the regulated entities on those lines. and, you know, we're, we're gonna move at their pace. And that's what I'll say right now.

Speaker #5: But it's, it's a hot topic right now, so.

Speaker #8: Got it. Thank you.

Keith Stanley: Got it. Thank you.

Speaker #3: Your next question is from Samantra Banerjee from UBS.

Operator 3: Your next question is from Symantra Banerjee from UBS.

Operator: Your next question is from Symantra Banerjee from UBS.

Speaker #9: Hi. Good morning. Thanks for taking the question. I was just curious about the additional modernization opportunities that you mentioned. in the deck and great to see the phase two interstate pipeline modernization.

Operator 2: Hi, good morning. Thanks for taking the question. I was just curious about the additional modernization opportunities that you mentioned, in the deck, and great to see the Phase Two interstate pipeline modernization get updated. So just curious about that.

Sumantra Banerjee: Hi, good morning. Thanks for taking the question. I was just curious about the additional modernization opportunities that you mentioned, in the deck, and great to see the Phase Two interstate pipeline modernization get updated. So just curious about that.

Speaker #9: Get updated. So, just curious about that.

Speaker #5: Yeah. Thanks for the question. yeah, that phase two is going to be focused on Midwestern.

David Slater: Yeah, thanks for the question. Yeah, that phase two is going to be focused on Midwestern, and it's going to be focused on reliability, predominantly compression, replacing some aging, you know, end-of-life compression. And yeah, that'll roll through the next rate case on Midwestern. So, feeling real good about those investments. They're very much needed. And yeah, I think it'll be a pretty standard play for us to make those investments and roll them through the next rate case.

Speaker #3: Okay.

Speaker #9: And it's going to be focused on reliability, predominantly compression, replacing some aging, you know, end-of-life compression. And yeah, that'll roll through the next rate case.

Speaker #9: On Midwestern, so really feel good about those investments. They're very much needed. And, yeah, I think it'll be a pretty standard play for us to make those investments and roll them through the next rate case.

Speaker #9: Got it, that's really helpful. And then the second question I had was just a general one on capital allocation priorities going forward, and how you're looking at balancing dividend growth versus keeping leverage maintained.

Operator 2: Got it. That's really helpful. And then the second question I had was just a general one on capital allocation priorities going forward and how you're looking at balancing dividend growth versus keeping leverage maintained.

Sumantra Banerjee: Got it. That's really helpful. And then the second question I had was just a general one on capital allocation priorities going forward and how you're looking at balancing dividend growth versus keeping leverage maintained.

Speaker #5: Yeah, I mean, we're very focused on capital allocation. If you look at the backlog, the majority of the backlog's going to be allocated into our pipeline segment—predominantly, the regulated pipeline segment.

David Slater: Yeah, I mean, we're very focused on capital allocation. If you look at the backlog, the majority of the backlog's going to be allocated into our pipeline segment, predominantly the regulated pipeline segment. So those tend to be backed by long-term, 10-, 20-year contracts, again, predominantly with utilities, so investment-grade counterparties. So very strong cash flows, you know, security of those cash flows over the long term. We've committed, since we spun the company, to grow the dividend in line with EBITDA growth, and I think over the last five years, you can see us doing that consistently. Our plan is to continue to do that going forward. And I'll maybe, Jeff, you can talk about the balance sheet and how our thoughts on managing the balance sheet and the dividend. Yeah, sure. Sure can.

Speaker #5: So those tend to be backed by long-term, 10- or 20-year contracts—again, predominantly with utilities. So, in re: investment-grade counterparties, very strong cash flows, you know, security of those cash flows over the long term.

Speaker #5: We've committed since we spun the company to grow the dividend in line with EBITDA growth. And I think over the last five years, you can see us doing that consistently.

Speaker #5: Our plan is to continue to do that going forward. And maybe, Jeff, you can talk about the balance sheet and how our thoughts are on managing the balance sheet and the dividend.

Speaker #10: Yeah. Sure.

Speaker #9: Sure can.

Speaker #10: Yeah. So what our plan is—and again, we've been talking about this since the spin—is as we fund our internal capital allocation plan with our free cash flow, we're going to naturally, and have been naturally, deleveraging.

Jeff Jewell: ... Yeah, so what our plan is, and we've been talking about this since the spin, is as we fund our internal capital allocation plan with our free cash flow, we're going to naturally, and have been naturally, deleveraging. And so, with that, we're able to fund all the projects and everything that David's been talking about and the growing dividend inside of our capital capacity or credit capacity.

Speaker #10: And so, with that, we're able to fund all the projects and everything that David's been talking about, and the growing dividend inside of our capital capacity or credit capacity.

Speaker #5: And I'd say.

David Slater: And I'd say-

Speaker #9: Got it.

Operator 2: Got it.

Sumantra Banerjee: Got it.

Speaker #5: You know, we work pretty hard. We work pretty hard to get to an investment grade.

David Slater: You know, we worked pretty hard, we worked pretty hard to get to investment-grade.

Speaker #10: Right.

Jeff Jewell: Right.

David Slater: Now that we've crossed that threshold, we're firmly staying on that side of the line.

Speaker #5: And now that we've crossed that threshold, we're firmly staying on that side of the line.

David Slater: Now that we've crossed that threshold, we're firmly staying on that side of the line.

Speaker #10: Yep. Yeah. We've got plenty of room between—on the credit metric. So again, we're very confident in our capacity to be able to fund any and everything that we're seeing coming at us.

Jeff Jewell: Yep. Yeah, we've got plenty of room on the credit metrics. So again, we're very confident in our capacity to be able to fund any and everything that we're seeing coming at us.

Speaker #9: Got it. That's very helpful. Thank you so much.

Operator 2: Got it. That's very helpful. Thank you so much.

Sumantra Banerjee: Got it. That's very helpful. Thank you so much.

Speaker #3: Moving on to Zach Van Everen from TPH & Co.

Operator 3: Moving on to Zach Van Everen from TPH & Co.

Operator: Moving on to Zach Van Everen from TPH & Co.

Speaker #11: Hi, all. Thanks for taking my questions. Maybe first on the Haynesville. We've continued to see the rate counts step up into the beginning of '26.

Zack Van Everen: Hi, all. Thanks for taking my questions. Maybe first on the Haynesville, we've continued to see the rig count step up into the beginning of 2026. Curious on conversations with producers and just views on overall capacity needs in the basin.

Speaker #11: Curious on conversations with producers and, and just views on overall capacity needs in the basin.

Speaker #5: Sure. let me tackle that, Zach. so you've seen we saw a nice ramp in the Haynesville in Q3 and Q4. we're expecting you know, to see those robust volumes, you know, going into, this year.

David Slater: Sure. Let me tackle that, Zach. So you've seen, we saw a nice ramp in the Haynesville in Q3 and Q4. We're expecting, you know, to see those robust volumes, you know, going into this year. You know, our biggest customer is public, and I think they've just recently shared their thoughts on their Haynesville growth for the year. So that's probably a good yardstick to measure our activity against. We do have a number of other producers that are also undergoing growth or growing their portfolio. And we certainly are going to participate and see some activity there that'll be helpful to the cause as well. But the big shipper, the big anchor is XE, so I'll point you to XE's public disclosures.

Speaker #5: You know, our biggest customer is public, and I think they've just recently shared their thoughts on their Haynesville growth for the year.

Speaker #5: So that's probably a good yardstick to measure our activity against. We do have a number of other producers that are also experiencing growth or growing.

Speaker #5: Their portfolio and we certainly are gonna participate and see some activity there. That'll be helpful to the cause as well. But the big ship or the big anchor is Exce.

Speaker #5: So, I'll point you to Exelon's public disclosures.

Speaker #11: Perfect, appreciate that. And then maybe one in the Northeast—you know, with the open season on Vector and some producers up in the Northeast, you know, talking about more growth coming into the next few years.

Zack Van Everen: Perfect. Appreciate that. And then maybe one in the Northeast. You know, with the open season on Vector and some producers up in the Northeast, you know, talking about more growth coming into the next few years, could you maybe give an update on Nexus and the ability to expand that? What size that could look like and any conversations going on currently around that pipe?

Speaker #11: Could you maybe give an update on Nexus and the ability to expand that? What size that could look like, and any conversations going on currently around that pipe?

Speaker #5: Sure. so it's somewhat that domino effect that I spoke of earlier. you know, we're seeing this play out across our portfolio as, you know, what I'll call we expand the last-mile pipe.

David Slater: Sure. So it's somewhat that domino effect that I spoke of earlier. You know, we're seeing this play out across our portfolio as, you know, what I'll call, we expand the last mile pipe, then, you know, you got to look at an expansion upstream, and it keeps going upstream and eventually falls its way back to where the production is. So as we see Vector expanding, pulling 400 million a day of incremental supply out of Michigan, you know, that's going to have to get made up some, some way, somehow. We're obviously working closely with potential shippers to utilize NEXUS to do that. NEXUS is easily expandable with compression and, you know, blocks of a couple 100 million a day with compression.

Speaker #5: Then, you know, you gotta look at an expansion upstream. And it keeps going upstream. And eventually falls its way back to where the production is.

Speaker #5: So as we see Vector expanding, pulling 400 million a day of incremental supply out of Michigan, you know, that's gonna have to get made up some way, somehow.

Speaker #5: we're obviously working closely with potential, shippers, to utilize Nexus to do that. Nexus is easily expandable with compression. And, you know, blocks of, you know, a couple hundred million a day with compression.

Speaker #5: So that is forefront in our minds right now, as this market evolves and the demand grows in the Upper Midwest, is how do we unlock additional, what I'll call, egress freeways out of Appalachia to sort of ramp up and bring incremental supply into this region.

David Slater: So that is forefront in our minds right now as this market evolves and the demand grows in the upper Midwest, is how do we unlock additional, what I'll call, egress freeways out of Appalachia to sort of ramp up and bring incremental supply into this region? And again, if our fundamental assessment is accurate, that there's 5 to 8 BCF a day that is in flight, growth that's in flight, you know, over the next 5 years, that's going to demand some pipelines or multiple pipelines to expand into this region, out of the supply basins. And Appalachia is the closest basin. You know, Rockies is right there. They can come back into the Midwest.

Speaker #5: And again, if, if our fundamental assessment is, is accurate, that there's 5 to 8 BCF a day that is in flight growth that's in flight, you know, over the next five years, that's going to demand some pipelines or multiple pipelines to expand into this region.

Speaker #5: Out, out of the supply basins. And, Appalachia is the closest basin. You know, Rockies is right there. that can come come back into the into the Midwest.

Speaker #5: So, you know, we're really excited to work on these projects, and I really like the domino effect across the portfolio as we work our way back into the basin.

David Slater: You know, we're really excited to work on these projects, and I really like the domino effect across the portfolio as we work our way back into the basin.

Speaker #11: Perfect. Makes sense. Thank you so much for the time.

Zack Van Everen: Perfect. Makes sense. Thank you so much for the time.

Speaker #3: And everyone, at this time there are no further questions. I'll hand the conference back to the company for any additional or closing remarks.

Operator 3: Everyone, at this time, there are no further questions. I'll hand the conference back to the company for any additional or closing remarks.

Operator: Everyone, at this time, there are no further questions. I'll hand the conference back to the company for any additional or closing remarks.

Speaker #5: Well, thank you. I just want to thank everyone for joining us today. Thank you for your interest and support of the company, and I look forward to seeing everybody in person at one of the next conferences.

David Slater: Well, thank you. I just want to thank everyone for joining us today. Thank you for your interest and support of the company, and look forward to seeing everybody in person at one of the next conferences. Have a great day.

Speaker #5: Have a great day.

Operator 3: And once again, everyone, that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.

David Slater: And once again, everyone, that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.

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