Kinder Morgan (KMI) 22 Apr 212021 Q1 Earnings call transcript

Good afternoon, and thank you for standing by, and welcome to the Quarterly Earnings Conference Call. Today’s call is being recorded. [Operator Instructions] Your lines are in a listen-only mode until the question-and-answer session of today’s conference. [Operator Instructions] It’s my pleasure to turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan. begin. may you Sir,

Michelle. you, Thank Okay.

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

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

XXXX Just change. our detailing revised announcements our addition the earnings kick release two that David underpinnings EBITDA will Kim first explain and quarter full-year for in call We've important the we made substantially upward. in estimate of to today. Steve, DCF and off, results, our

We as also December. we increase promised of our an dividend increased our policy. rate back released we XXXX outlook indicator original for when two My $X.XX per judgment, an significant parts of in annualized a our this of share is to corporate financial

to shareholders. returning our shows it value intent are First, on we

are a up a storm perspective, natural philosophy, debt billion this billion have it XXXX in to internally, and paying to maintaining to remain $X.XX supply our our XXXX, customers, transition peak shareholders almost needs we $XX a examining fourth of financial an doing to long-term our recent our of for were opportunistic today, through CEO. sheet, the gas strength healthy over its since sheet is we that guided an and all this excess on with assets continuing winter And flow. from pursue with Texas for and fund of opportunities return we recipe quite in while over And having maintain opportunities the billion, our KMI consistent this improvement. balance Kean, of also is real demonstrates Steve share. Kinder share $XX.X increases balance focus energy reduced decrease what our deliverability we $XX and dividend corporate by think And to it our while that to is in We the believe Morgan, At I'll annual cash per annual Second, its cash were a turn our while increase dividend our in sound firm capital consecutive we and effort. highlighted by when dividends repurchases. accomplished in that, shareholders. a this success Put opportunities

right. Thank it the in Dang, is Rich. which focus what our turn drove to Kim you, I'll results winter business on Uri, financial to quarter. All Then I'll storm President, the updates. cover performance our our over during

will we Michels will through you Our the then your and take CFO, David take questions. financials

with starting So the performance.

that were During February preparation prepared winter storm, well. and we us the served

on our generators Our at on our previous were days compressor maximum We our withdrawal particularly on our assets where were several huge at in backup a our investments system. investments in storage assets, of for also help. key fields, stations helpful

team. real is our us Another for key

generators running to storm and here. before they deployed tested facilities team operations if our got deployed We in repair our and keep additional Our the them, down. advance went generators quickly

at many at home their Our cold water. that normally own and and bitter automated are in power undoubtedly had of families people they without were locations there the were them and

of a key Austin. compressor to keep the city Our gas delivery and storage point facilities, key including to points stations, flowing, team to went delivery

kept people us Our going.

especially and team terrible winterized our against us investments Our storm. a

our pipelines that operationally sale explain. and is We prices that result by I'll and serve was business and well A a many system I’ll intrastate supported too business purchase in transportation gas in business a our commercially The reference all an but high our assets. gas purchase in to That our we Texans Texas, have And but especially contrast, do COX prevailing and gas very Texas are gone too, deliverability also otherwise network. price. that We services. between storage pipeline power in performance is In this plants entire additional endured. unbundled a would We was our also across have in and and financial mitigating tragedy system storage Texas intrastate the key high and for utilities. intrastate pipeline strong performed to business. network, at wholesale of needs our customers mention reasons our difference that serve interstate with storage unmet, purchased to minute, we done we as generally nearly that some sale index exclusively gas, enabled Texas selling have our

causing and reliable sell across the prices Ship to course we something. minus we Houston in over on business existing the sales that do range, up view at our by our When conditions supply take-or-pay. have by result Channel margin value plus Houston it cause of of week. time which getting a index and gas perform we to during back price whether up prices value the our Channel incremental something very as well roughly proprietary periods. contracts or reveals able mean week, our week experienced for transact the We storage conditions of during It to additional $XXX this with under Ship are sales, who prices, down Channel intrastate preparation. value gas $X takes reliable go a margin In sophisticated MMBtu able of circumstances, also business a were by normal in storage arrangements normal reveals took to a customers supply example, Texas the In Ship and Many the go transport than and For storage that XXXx assets than did in circumstances, differences of purchase at that choices. like market purchases is Houston week extract from we and in In were at our from we are of using What $XXX at operations at longer-term? that reveals same to so or a and of earlier month. a prevailing as place a this and previous a buy range stable versus such financially volatility, sales the same our more we more higher as effectively demand and operationally. the pipeline XX% having February, and to demand XXXx, magnitude prices well the Market and as team. order place,

purchase of those us them choices is on do. from of One firm basis, and to services many a long-term

without contracting view even help parties value capital firm to we that reveals away in and results sales and taken I is experienced our more COX our non-recurring, of already the firm a for value additional an the mentioned help appropriate substantial that and we for business events business, we the investments rare and base amount bit changes would will is should There quarter. The The some structure weather a Kinder the is effect. consuming storage financial more deliverability pursuing be adequately us and our that to are and services so. of investment extraordinary customers hope do biggest big also, of the largely any this which in in Texas. in in in transport made be portfolio create future gain market event state better lesson the And extreme for would of and in we be positioned associated that different and business compensate in origination. first consistent capacity. everyone's interest results long-term should While be that power That's following our the should our incremental earnings February's storm, and in long-term incent firm is capacity Morgan. new our could

our prices. prices the headed, see Our his at power provider were team enables to us compensated load power where be power started they – and power Arenivas to and with Jesse started prevailing When load. contract looking shed shedding at

prices the oil prices substantial hour, it to They we and into market So back those drastically allocated we the needs. a shed and following notable were human serve human as to we've Jesse had while since the production load team letting a financial and available contract his then. made it be could better particularly $X,XXX be production That's needs. to worked restore for as a at The oil and megawatt as high accomplishment. the earned shutdown megawatts last where down higher great priority benefit designed able practice gotten quickly some and when fully longer-term, storm. year Also, went with

is flexibility great. built XXX consumes in megawatts the we've our flexibility part a into of is that state about This Our now great business that of Texas.

power to state the in good flexibility So the have market Texas. in of

and proud are those get of but learn and our for performance we we'll So we even at whole to very lessons use us better our weather team's severe for lessons to have too, customers. performance,

our but what Initially, financial it's net many remain a repeated reduction do same. of as to proceeds? course, will debt, we with the times, our the principles So we've

balance strong sheet. a First, maintain

maintained those some the I investments. we good as result through be opportunities track by discipline don't of of And record to we our our significant and may our incremental mentioned, expect investment capital for and criteria Second, XXXX. a as return We self-funding storm. execution see

We'll It's dividend including approach versus we our returning are the be alternative uses remains same. dividend Rich decisions well-covered the and increase we that exactly Finally, for selective, base that repurchases the assets. share cash generate, our mentioned. on returns with not to our shareholders the value or projects to We'll a programmatic. a

and additional gas the is sheet, financial, to are returning This offerings before team and with and Treasurer quantifying and to our Anthony Vice item like who engineering to during COX to group President balance on Kim. service of tailored sequestration. renewable of and an Transition put and those Energy opportunities Relations. shareholders, turn transition, ongoing business capital Ashley, assets including a carbon-capture reports President other talent the team Ventures Arenivas, of our as over and previously Jesse announced discipline, served by One I natural commercial it first headed as together and the on continues Investor for value to focus We things analyzing principles. We who cost energy formation quarter. So

in opportunities, time, last said more our for they've services already – working on renewable that the While days and and early of opportunities are focus it’s number units as to gas business to their our a this including I to our operations, power. and fit Also, identified still for such specific our effort, diesel, midstream services transportation come. energy storage support on with transition renewable in as using continue

announced to in in winners the another, will get are and We and also first our transactions responsibly low and of difficult emissions a opportunities. on performance balance done sound believe and as strong we quarter, our working circumstances. we produced they environmentally safe ESG with methane our in the in first We transported as participated Colorado marketing that between Springs and natural low performance, low ability are commercial have our our synergy cost methane Utilities, the gas. reliable, good emissions operations are sector things these It's one which sheet, speak. We

our prepared to come. culture, We I the and are be over and turn will opportunities challenges always, it that, proud our of Kim. meet With as we and to to team will

Steve. Thanks, Okay.

winter per the approximately about of first the LNG in dekatherms than and volumes versus volumes of off venture declines expiration storm to per our Rockies' weather First, Transport volumes, driven fog And X quarter XXXX. level increase greater for increase contract dekatherms day XXXX. fourth a which coming fundamentals about down These XX% in were the our Physical pipeline the things of the by our by million were EPNG by out the X.X I'm go joint approximately the the and deliveries Fayetteville. And winter first averaged and in were primarily coastal increased and through at the quarter XXXX. was partially deliveries very Northeast per our impact February. service. down on a of production quarter, driven production, business versus to declines and day. from lower alternatives Permian. I transportation approximately to X% LNG that quarter Uri two that starting pipe on of and export million out impacting the facilities, facilities That's gas offset the to were dekatherms in some X.X was And fundamentals. in Those talk with or due PHP high will full-year higher then of natural million forecast. volumes LNG going day

day. the to pipes storm, dekatherms up exports Exports Mexico to to per LNG volume first of moved XXXX. of approximately export LNG In total quarter XX% about compared Morgan During pipes our to the first were X the million quarter, dropped Kinder on facilities. X% the when under going

they share first more XXXX. higher the colder But down prices. Mexico informative XX% were down is up due were gathering in of the due quarter XX%. on compared volumes, power One, the Our the I of Deliveries to quarter. first LDCs sequential to comparison to volumes, quarter were the natural deliveries our plants, gas in think quarter about for natural Deliveries about ran gathering they weather. gas to to

So compared the rigs thirds deployed down volumes, to reduction quarter to But XX%. given that are first KinderHawk, Haynesville. there gathering Approximately fourth about related that in that our of the quarter XX% were asset basin. which in XX volumes is two

the versus those our increase We sequentially also than the will little that and our Ford each it down were although quarter will budget. balance a be will we of fourth the year, Eagle quarter be versus that volumes we for what expect bit down expect budgeted. volumes slower

takeaway the Ford options. tough Eagle remains oversupply very the market Now a of given

that's fourth be of versus relatively the improve about X% up XX%, result X% And impact. flat but March versus improvement plan The little or of Crude for our to Total better forecasting when in were of Products later the the they On XX% first quarter Gasoline volumes up versus they refined XXXX. first in that's down for the of that's were from and remain XX% And were our an the and a Pipelines weak I'll volumes the the the XXXX. product volumes about condensate Altamont of were diesel quarter first improvement the go big side, the the XXXX. versus volumes off quarter Bakken we we through they were refined Sequentially, quarter. in were And that the the fourth and be XXXX. segment, when products are pipes XXXX. the fourth pandemic year. continued just quarter. fourth volumes down quarter XX% Currently, expect each were through up plan, did about versus and to were XXXX, to volumes X%. on Jet quarter That's about down quarter slightly the up fourth X% quarter during the bit our a XX% volumes off versus quarter they XXXX. about moving comments. in the percentage my quarter from positive versus versus were month off and of down volumes

impacted first have the limited by business of short-lived to and the Act the continues for impact terminals to our quarter. is two storm, the our it the winter lingering is as with well events, Jones fundamentals impact and winter storm tankers. The as petroleum impact The volumes continued product been pandemic. demand Our pandemic the

petroleum reduced our products product contracts our is take-or-pay mentioned the we impact muted given capacity. tankage than more in for as demand have prior the tank of in fixed quarters, However, on pipelines

high utilization contract, reflects that remains the have liquids Our tank at we XX%. which percentage, under

of out tanks about for is utilization exclude inspection, required you service If XX%.

expirations weakness have refined but the in this weak tightening also much given the extent production have fleet that we engaged reduction number the a product WTI-Brent and The in market of oil and year, crude in that market, percentage the to a relatively contract tankers, of given volumes. the smaller is spread impacts service. On a ships lesser this

due our may product and up this to market in production lag demand, underlying petroleum demand activity COX but take expect mentioned. this grid power that recovery curtail later the the We that back Steve decision charter to was year tends and until quarter because The fundamentals. to improve the deliver in with to segment the supply to

was Excluding sales XX%. down COX approximately the storm volumes impact, oil were XX%. production down

about Our barrel. down per is net oil realized $X.XX price

currently the our However, will price budget, volume, and oil budget compared volumes realized to the net we for anticipating oil are COX exceed year.

Now, let high level me full-year forecast. give you very on a update our

billion $X.XX million our As We to we $X.X budget of this said of are very in $X.X impact, DCF that's was million very versus to add across our billion, versus $XXX we the currently of again, projecting billion. know segment that estimate roughly and numbers. rounded is up I the $XXX all Uri full-year our a billion are doesn't release, $XXX roughly because variance but of [indiscernible] $X leaving perfectly, large million budget. these

money, XX% Those by on COX oil in the DCF of roughly and that million spend to from approximately very $XX Texas COX two to million million our a higher me primarily start the offset opposed $XXX due tools positive $XX impairment. the the performance and to rural weaker Let pipe South segment volumes to is at What and gathering couple the with impact of sustaining renewal I'll roughly be obtain rates other estimate volumes pipe. repairing decision tankers. as running lower higher pricing. inspection and also in pipe replace products the classify there items variance. moving Those are budget as parts. and We some the larger continuing two to than that lot explain were pandemic-related CapEx other petroleum the will on lower able the attractive We includes volumes Act impact variance, Jones items Eagle Ruby of in Ford are A about of a and price. items but include

sale of creates Finally, assumptions difference petroleum on negative XX.X% and high-end our on versus certain products the the range our relates guidance primarily variance budget. Uri low of resolution tanker Act renewals, that the The the volumes, gas and to NGPL GMP a disputes. natural Jones in contractual interest of volumes,

just it's in these a but on the obvious, assumes case outcome I think end lower the items. more conservative of guidance range

X% that, high-end year for year. assumes range of about of David low-end the the over below the the guidance to versus the guidance of the the below volume are there for petroleum And X% assumes example, it Michels. with the balance products For balance of plan I'll turn plan

All Kim. right. you, Thank

XXXX, dividend quarter is the per are So quarter. $X.XX we X% as Rich for of first mentioned, share, last declaring which a up of from

Now the cost the financial quarter quarter generated at increase of versus looking year, first revenues offset in this for had of up $X.X billion the our we performance an with of $X.X billion, of of $X.X there. partial We last sales billion. first year

gross our during up So by strong the was million, winter storm. $XXX margin driven mostly performance our

item of note greater we of a result receivable. the and uncertainty that was segment as took million, million XXXX, note, Our was the through $XXX This on the reduction of And O&M first recoverability COX which Ruby which favorable impairments. quarter the $XXX explains divestitures past about loss the investments. million wrote-off we million driven quarter, $XXX regarding item by $XXX load in in segment, O&M that's impairments the value of of COX favorable shed the In amount. costs declined that also our walked line item equity main a Steve our of gain the – the power from in called earnings that in the most and subordinated

interest item. and sale gain other a net We also a on line the NGPL that $XXX in million partial appears the reflected in of

in we $X.XX year and share, before So earnings share the a is versus basis of per first adjusted net share XXXX. versus certain $X.XX overall, share per an which where generated per generated earnings $X.XX On items. share that's loss show we quarter the per favorable $X.XX of income ago. We per

EBDA Moving performance. Segment cash our flow distributable to and

performance. explained Tennessee million our revenue intrastate favorable margins, on February as the $XXX segment storm by Pipeline, the quarter mostly a Our result natural as winter both as gas for well Gas of up was increased

lower the favorable Double business. down We crude PHP, year lower contributions and was partially from also product the our these greater Product from $XX on at service lower by SFPP, rates was pipeline had our refined volumes H, by partially volumes placed offset million, by segment from rollovers. KMCC which on completing resulting and all offset are re-contracting contributions contributions transmix driven oil FEP from in XXXX lower contract

Our was demand $XX Terminal a related refined product volumes impacts. impacts storm lower pandemic-related segment down as well as due demand that's and continued winter million to

As utilization offset from and our also Storm-related to Jones mentioned, contributions been the all due refinery pandemic-related also decreased market our weakness. drove expansion resulting lower facilities, from were project somewhat down the Act has fleet petcoke these contributions were tanker outages contributions. by

year versus that partially again, segment shedding million by partially COX deliver was to grid and offset versus load QX and the volumes – COX power to Our was and QX quarter XXXX up a $XXX the lower offset and this XXXX. lower versus to ago, crude realized due crude prices lower by

Ruby by $X corporate XX% lower was depreciation. higher had $XXX than organizational to in our overhead investment adjusted offset capitalized recognized we JV less by which EBITDA, us million, G&A higher from expenses our resulting there savings. quarter were efficiency depreciation, DD&A in after that's lower Our JV a QX had That we Ruby charges entity million and level partially and there brings the asset and XXXX. impairment

favorability down EBITDA, on as debt. as lower $XX Moving by balance Their expense favorable interest interest and benefiting well lower our million. nice swaps below was rates debt a rate LIBOR drove our lower rates long-term

lower more loaded spend had to last the sustaining little pension have lower timing sustaining was we and versus year. bit favorable year, that the versus cash by $XX In for gas contributions year cash contributions to ago. XXXX. was by natural we driven a expect and terminals contributions back-end other, more a full-year pension plan segment versus spread This equally some our quarterly but and CapEx, quarter, is more capital all million, we capital of For that

XX% DCF Our share up per year’s $X.XXX $X.XX our from was and last $X.XX or $X.XXX was up was share. $X.XX, DCF billion per total and billion

We with on down with consistent X.Xx Moving adjusted projected the the the contributing And Kim in that's at to our debt than EBITDA that's year-end. current to balance And largely at resulted that sheet. to XXXX is – than from X.Xx ranges quarter net to the nicely ended cash result EBITDA, non-recurring X.Xx balance X.Xx we also and to a the benefits of it walked flow. but budgeted largely through. storm budgeted winter due greater debt of lower

of has Our not longer-term leverage target X.Xx changed.

We also have the a $XXX cash million have very of favorable liquidity almost position. consolidated We maturing billion the and ended $X.X only of hand, debt the rest quarter of with on for year.

billion, our debt, billion hand, net declined $XX.X year XX% has at the of includes year, $X.XXX by for our and ended billion on So or quarter QX almost which XXXX. now the down – since the net our cash from $XX.X debt

As worth that is Rich reiterating. mentioned, it

review. million million SFPP. change net paid to of to quarter, contributions JVs. DCF. in debt the made quarter rate financial as quarter we Our That reconcile we projects the the settlement uses, We $XXX payments, the – of We and debt first case majority million. AR approximately $X.XXX $XXX had the of sale, dividends our generated well and received million We $XXX NGPL interest in primarily increases growth $XXX and explains billion change from working capital to of completes billion expense on for change, million $XXX of of as $X.XX

to turn will back it I Steve. So

Thank right. you. All

going you to questions as we more, follow-up, one get courtesy person limit usual, to got a you. the will per everybody, with are the so and come and in back to back queue we And if to as Michelle? one

Tonet Thank first Jeremy JPMorgan. from you, sir. comes question Our [Operator Instructions] with

ahead, You may sir. go

afternoon. good Hi,

afternoon. Good

the and And of with are market assets the that ramification to the you been what. wondering kind get? paid, Just about, talked guess, for want storm have you being here your I to everything I more out. to of you value start clear coming and guess, expecting And the

business? any like? of If what for could you re-contracting that type more be uplift there could might the What quantify in sense look

Sure.

much in normal a might paid settlement most course. everybody So course. process but the It involved, big the everybody in as was the imagine pretty normal paid pretty numbers given you

say As you. need everyone reflect, we some think the in but reserve some disputes, disputes, numbers Kim otherwise but got that in Kim mentioned, to and the normal course have that and we or we've I'd do gave most we mostly unfounded, is anything reflected paid

think, early days, terms with enhancements are we the In make to system of ramifications in specific customers longer-term, specific have but very could them had conversations customers of ours. I we still firm we about make our to

capital. of enhancements those some to And bit a would enhancements – that. really require the some early call It's

upgrades particular doubles I to like will I a As it's of and of it said, will be sort get kind a that. location some millions time that take in level, up. but other I ramped of say, most mean, would projects possible or and singles triple-digit enforcing of the at or kind the upgrading lateral increasing compression

there of on that? you terms add So Tom, would else that anything color is in

I in that well. for values I and think uplift see as add as The that, well. transportation some we'll only think a quantified days there is potential I would capacity our existing uplift thing storage early see we'll Again, the

enough That's and here here? Biden on it. I but how energy if then Got transition carbon-capture, might just one see support anything impact around else that KMI’s wondering ambitions tax just early stages could, or that plan, infrastructure helpful. very And Specifically, on side? the utilization initiatives to how you form new credit more, storage, eventually, advance do might very that it's

Yes.

that those COX facilities, economic and year, stream. of a finalization COX in And was the gas happened that have XXQ ethanol early territory the regs have some certain pushed So sources high here. plants, in processing content those into there and are like, things

things. biggest it you the said, other part of we network answer kinds here the go wants carbon at that of those on out. capture Biden of and the we're is see at administration sequester opportunity But you believe pipelines we'll the takes looking country. that the COX to actions part play how and be we're so to We is in and And early as as do – today, that to the and we've days, of sequestration. the know, plan, looking We where got going administration do believe carbon-capture and

more good And there. a a we're lot for there's so I come think to in that. position But

Got it. I'll stop there. Thank you.

And from our Gershuni next question comes UBS. from Shneur

go may ahead, You sir.

frame versus with everyone. on – was maybe wondering help afternoon, carbon-capture for to Anthony, last wanted say I singles Is to say, renewable just it. should kind that the to just on each if that results the you projects? Good diesel consisting capture you to is wondering trying be how today. terms source the those charged go near now. of that backlog to and expectations of of a let's customers you've Great question to guess about or is expectations how Hi. in and worth if Energy thinking group I Or more idea JV partners capital for out the $X was the it us build and bigger help of Ventures frame group that of see doubles like I – could try of for to projects, so to the you billion of, we can and forth? Is leading find projects? follow-up group as I proceed. the

Yes.

these business fit. I There said. are bucket of of reiterate something doing that terms we a opportunities. Ventures think Energy buckets really already about to in are that in two Transition I'll So things our There's

right of – just team things example on team between his and renewable is an marketing That's Sanders Renewable today looking they're gas Energy and – group and renewable and not He diesel business. to do The use you but team during a and extraordinary we're the meet that “Hey, The Transition saying, control responsibly terms something criteria expect, business integration and have there quantify they're too. there. stellar. scheduling we it's our not they And business But operations well deals” and projects so business. dealing that, big biofuels working able like of saying, and generation and return that ultimately for or really find Tom out that We're as those. our transact Carbon-capture to today “Hey, is Tom the now. that there. gas as our storm. I'll Martin we're set, don't for go did focused with and deals with job really his as what way set on work as Look, what is an is as their we in part $X Shneur, leave was and backup operate we gas part We Schlosser Dax at. John is increases commercial, deals things goes in something his are opportunity dollars.” it those just doing find in sourced that business the immediate products our of Ventures and today. natural and hard does on we think extensions opportunity things more not that penetration. of can constantly on. good go It execute in we're units

that they've they some on. And got it's working what specific And I at things so and that's even are looking they're early, mean, though doing.

of look Okay. Great. Appreciate good some maybe forward certainly a to happen to for [indiscernible]. prepared part in response had in year, this there potential visits as blight Jeremy, there Maybe was remarks unlikely question, your size. to capital any follow-up and and you in your mentioned color the the and

the can of then this forth, confidence when said in which you this the so you out I have set sort us your And framework, hadn't right now, budget opportunistic some results, around on this the you completion you had the process for excess know budget and not wondering process. if when And us that capital the expecting it's you can million you color changing sort remarks that year. your this and of some thought at if making around think buyback I the you point $XXX really so give you about through more cash clearly you're of give Does XQ target? prepared the but weren't decision initially? opportunistic walk expected just

Yes.

the year. we articulated So that beginning at capacity we the of the had

we it. events offset went when call then the other we provides scenario on opportunistically. out As going the is capacity, XXXX, you. she to returns the metrics it place in balance that keep to not provide going of to our there. that do terms this though, we've had We We're we're which but our compared we done additional want into when to sale, capacity in some to It additional in said that after some account of to what the as uses amount for the of capacity. is, sheet on of the and buyback need were amounts you Uri taking to in mentioned, our include include actual budget, just going We're which And do NGPL and the in some to to we're Kim we an have where on Having out headwinds or – it pointed and we've capital. use based analysis pointed We alternative it partial you we're go side set through really offset opportunistically, been of didn't place recovery, communicating get away which didn't that all capacity. going negatives whenever same her pandemic of you that.

but everybody know more do for where given the prices, a I like we we years. that are, that's specificity in pointed last given And still the have capacity haven't we So lot around amounts, additional just wants out. as four not

capacity out. fair to was It's way? a larger that is you Is budget when that today than your it set the say perfect

absolutely. That's correct. That’s

color Really Perfect. Thank today. guys. appreciate the very you much,

you. Thank

from comes question next Wolfe with Research. Our Stanley Keith

You ahead, sir. may go

afternoon. Good Thanks.

either or you're producer legislature watching proposals that on on are Uri, government? the any Going could impact that from on or storm within buy back in other you're to services pushing there customers side? or proposals the power side any winter suggestions then requirements transport And the to your

of this are I'll too. Dave things that to watching. Conover we're weigh There on And in Yes. ask number

specialized I concerted think an and by do this – we is we're sure what something but want to likely bodies the constructive but to we to legislation, and There's others and examining happen to and think show a way we to be that better direction going participants better anything to state to on do. customers power want relating we do been I to not all that how you communicate of working in resolved already. very given industry a this is be and that also see we're determined our focus in again. as there that develop doesn't add is that? that regulatory going make on by to want all more in be a customers right lot things of headed and like Dave, can to detail the our industry and winterization energy going and now forward, and have in can with And working on gas with we're want benefit how can the things continued

No.

that. in within you've given for at, at There we'll bills terms think Steve. transport actively passed the likely legislature it's covered don't like I is And mandating see is the the I looking strong introduction legislature what has deadline stage the contracts. or incentivizing of this that no anything think push that firm of for

bills. in the securitization Texas shock guess House be news, did pending in a that pass bill price And Senate customers’ I helpful reducing retail would on the now other in that's

that bills ones of not the on last prices mean you ERCOT who specific some On paying customer Okay. just like retail point, were the market default the allocation? Great.

on gas Yes. the LDCs. side is This

it. Okay. Got

Okay. Great.

just a about your are with forward? opportunities? in you sector see maybe Second partner. thinking interests to How any situation the recovers? energy NGPL to opportunities curious, sales, question more on updated selling Just looking Is monetize thoughts asset asset potential the as at there assets more sell on down, have so how unique going I’m it sales like pursuing you're the assets? seems you Do

to We price to we continue right the asset premium benefit the work, and to and at well as just continue those to are are that asset. our sell those things a regularly percentage and that multiple smaller work. to buy continue and albeit a as We ownership as can the things get when look look is a for continue things they operate the we the when numbers with of NGPL to for right

more anything for approach been really And now. That's several to our years don't I so specific. have this

it's and on We’re looking value. looking side on the sales the about side, purchase all we're

you. Thank Great.

Thank you.

next Our Spiro with Credit from question comes Dounis Suisse.

You go ahead, may sir.

everybody. Hey. Good afternoon,

question… First

cutting out a you're bit. Spiro,

out cutting You're bit. a

Hey, Is better? Hopefully? sorry that guys.

Yes.

Let me know.

perfect. Okay, stays. that Hopefully

think facilities companies goes through bit Just XX% gas sourced one of you those increased on international about seeing demand a on think we're of your little lot the And to I I LNG something gas, now the sort natural more. a of going a of lot start of pipelines. seeing that responsibly Kim, market into mentioned,

the you RSG suppliers getting the that into just companies So and more middleman and basically playing curious markets? of how and LNG international between – the

Okay.

at out the there end. bit a cut You little

on So you follow-up. how topic? we're you if LNG But interacting to we something Tom, want with miss about talk do customers our this

certainly I off yes, mean, favorable mentioned very emission customers engaged ESG market. as leveraging actively to Firstly, and our metrics with again, the we’ve one our with feature And are that current LNG producers. we're working earlier,

to And opportunities producers our are connectivity, and think a identify of certified lot be system, there. so who able we have and which to connected as I willing we are given our

number that as days, we and but basins footprint as given do it I exposure think think have, we is early some our well of think that producers the I there I LNG is with there. So opportunities the and nice business

I Haynesville. area addressing curious hope on an And you as Second can you just I for question, an that, provide that just there you're optimism guys on guys was see update know of then any… discussions, if the producer you.

Okay.

You got – you on after cut Haynesville, question you your the out. out cut

you any risk I'll you just if on and apologize. discussions again. Sorry. producer I extent bottlenecks the there try see an wondering to of pipeline update I'm emerging. provide

that take to want you well? as do Tom, Okay.

Sure.

to increase producers maybe Certainly, downstream need basin we're as now. We've capability think there additional as on the year still looked grow to that those but on the Kim that need through. KinderHawk downstream market that grow, solution forward. those, some and But additional continue to with expecting mentioned have for that. and to work balance pursuing working and I our infrastructure to are there part just today issues this business of at capacity opportunities I our we there'll volumes of think are as the we'll grows, through point the we earlier, go be and As volumes has nothing volumes those done be to speak really at based some

guys. I it. Got all Thanks, That’s had.

you. Thank

Moreen comes with question next from Our Mizuho. Gabe

You sir. may go ahead,

everyone. afternoon, Good a quick I question. just had

I the and value, wondering, I'm storage lot outputs Texas, intrastate natural about see values capacity of whether of any on in potentially potential also got intrastate on we've think you got CapEx. the storm? on you the here you've the talked market or a some pipeline there intrastate, the just winter upside gas [indiscernible]

because network I our just but I focused the did network. to on – specifically specifically focus is our in lot than point anything about whole a well, as well Texas comment the Look, think on the yes, Tom, meant services want out? And you interest you intrastate. the opportunities interstate as we broader our do the of have I intrastate. that a

are we definitely No. customers you're emphasis but right. broader Nothing an specific, from Steve, here. be point the much mean broadly to is absolutely interest across in a mean, made I whole Texas, I that but footprint. seeing

medium-term? the Thanks. side? that I South is you And the the follow-up can other gathering then your any replacement near is that, know guess, very large, system long-haul to just could but see I in spend on in potential areas pipeline side, like Texas, obviously occurring on if I maybe the

it put I’ll you Tom, to again. back

the I'm one on be no gathering not that consequence intrastate coming and not pipe. anything or system, aware of systems down significance that our a of It’s would of

you. Thank Okay.

And our next Wells question comes from Fargo. Michael with Blum

to lower Thanks. allocation sort quarter, look kind question, leverage I rolls sort just down Thanks months around maybe let's capital that leverage XX would from of the impact still a this basis. this than I of like your it extra trailing of months, slightly be want looks for at call taking X.X, my question. profitable XX guess. of clarify I quarter Once If on after it. the off

Just kind that of say goal? you're want make sure to at you your So looking I'm at correctly? would

Kim?

Yes.

That's I to budgeted around will think take either apply if to you think then a and EBITDA you reasonable take balances, you X.Xx. that the calculation. debt our the I proceeds

Thank you much. very Great.

question Bernstein. Ann next from comes from Salisbury Jean Our

You may go ahead.

maintenance little FERC a sales. Hi. a Based about the a under NGPL light question reflection pipeline multiple, would on looks? NGPLs than or load pipeline, consider multiple sold I pretty I was which the tax data, there EBITDA a that XXx it or had it seems CapEx gas good good it gas that a at specific is. something little market looks better what about a was I caused think where to of like be Or the

Those said. the CapEx two associated with considerations, additional are Yes. amount which sustaining you fair of that a system. There's

will multiple also, a a get we're so a that's a C-Corp EBITDA off you of And you yes, and cash be then over owner. it that little XXx tax the when take payer and

of little a had two to want Michels, taxation layers double bit you David So there. – anything add that? of you to

said. No. But I think, underscore, Steve, just just to that you or point out

the balance entity cash had, in here we'll it because We hasn't a been or so – one NOL so. year become this an haven't taxpayer but of next been that

a So and beyond. it's haven't it we XXXX for something experienced, consideration but is that

me. really for That's you. all helpful. Thank That's Okay.

Thank you.

next question comes Cho from from Christine Our Barclays.

ahead. may go You

Hi.

quantify big it's said, side. You a early to energy opportunity it transition but your too opportunity, is

footprint step or about these would that to the interested accretive potential is ways do think leveraging this all just it, of existing even other cost things like So SPACs cash that could in curious, outside would when projects, to with fund of fund we there And or out flow or something given this, there chasing carbon-capture be your projects? low you sorts you only capital footprint? be your you would

Okay. and partners, of some interested capabilities, nice supplement will so kinds in alternative of capital the sources to and provide we supplement investments things. that synergy explore a and of want our that? might Anthony, do you those these definitely operational with to other Anthony this. JV evaluate that out ask evaluate having available we very I'm are would But, going to yes,

No.

I think on the I table you've covered for think us. everything's it. And

about that for [indiscernible] M&A, of changed, the about side? and has how your sale, would in regulatory not natural impediment and kind stuff up obviously willingness to on about you been step backdrop MLP footprint we your downstream holding transition which to gas how And anymore, world think think Okay. the think aside outside an have do existing asset. coming as then But Energy we integration there? you're should are as

answer Kim, would you to that? like

in Sure. think market. for The system, that's customers, different. on natural that Look, gas wholesale there we're a a I that obviously distribution very be step would returns retail out are us

And so not have step would and and be we looked strategy, that traditionally is our at fit definitely that out. existing existing would that fit what a not was strategy our things – that so

so. yes, I mean, unlikely, So, it's probably

you. Thank

Thank you.

Michael question comes Sachs. Lapides next from from Goldman Our

ahead, go sir. You may

my just and Hey, of question. macro thank you couple for taking questions,

First about basins you could your you talk where producer you plan? there think you think of in your do to think, there which Where all, XXXX customers, when do be do to meaning upside what's could expectations gas kind California be into and into downside? also most flows gas far the of Could and flows U.S., talk of meaning likely? Mexico you for Western just that address kind

downsides about mean, gave upsides Well, we upsides talking and to on the that forecast I today. I – into downsides, think you the we the tried incorporate updated and

excess budget downside And in Eagle budget. so, pipe lot where where there's a our versus is we have Ford, of capacity the our versus some just

we and downside the it projected started later a because got little have We bit than there bit in a what little of budget. that's Haynesville our activity a in just

you But and taken that gave likely today. upsides all the we some in have are We downsides into said, likely again, account as Altamont. upside, Bakken, I in guidance in those the

flows trends And even maybe little a you that? year especially into thinking just during relative of fourth kind and what quarter earlier and it. gas into kind California, are Got of Mexico thoughts Western terms of in the of than to in U.S., kind

Tom?

the resilient. the Yes. very say guess in been would I flows I Mexico have

flowing I market day Bcf consistently. over evolves think a the six

Kim earlier, we're we’re mentioned those XX% certainly, so XX% as of And to flows.

that so volumetric throughput from to and perspective upside that And a continue participating going forward. definitely in expect

as expectation summer. to of There any what hear. warmer westbound flows than don't is specific California far from other a really have As insight we there

year. than maybe year So to or have what that year, the different certainly California what of could flowing expected some additional last the we volumes saw last late at we beginning

Much it. Got offline. guys. follow-up I will you, appreciated. Thank

Citi. from Timm you. Schneider Thank

ahead, go sir. may You

question I a the Hey. comments you about renewable natural Thank gas made. had you.

the strategy how some and what could run the mean, take curious RNG us are be. LCFS RNG REMS, guys? related you and kind for you look Just your like you looking point of on risk also through that does this to I of at if infrastructure would develop assets

We you and to REMS transmission It's looking LCFS different is at is I And gas bit said, are business. from opportunities. long-haul assets and mean, natural renewable there our it component obviously – little it. as a

renewable However, natural a owners gas it looking there's also, transportation I and in example. see in this fleets as fleets, delivery for think, ways to secure or that their bit their of a maybe nail little source CNG as are down fleet you at

whatever more by some going green COX it commitments kind So so yes, part reduce that become in there's there own driven customer they're their out lot people ways exposure But to a the – plans emissions, of narrow their how there. to with and of coming maybe or going is to this way. of they're for

there's as as both will, as we’ve sure get you that how are pretty the look those. subsidies, they're everybody to and in driver because opportunities of said, the as, opportunities this make so the risks that making if got about understand presented good commitments the LCFS going to But for sector And green. work well REMS, well and as by and incentives, people to more as the you do the does they the

then And handle assets, they or the your remind terminals, it. follow-up you a portion refined products can them? maybe a us can biofuels Got here, of

I'll about to Go Dax John. John talk about talk to And ahead, can. ask Schlosser They his his. and then

Sure. of We largest We're ethanol. handle the it handler today.

million We handle we [indiscernible] pricing at We diesel of point the many and of Argo. barrels our XX Truck renewable Rack, facilities We and our Truck add have all there. handle at handle in biodiesel over our Rack.

existing converting our So of well. we're of doing as that. renewable than more we're capable products of more infrastructure And than capable to any

Okay. Dax?

do can On handle we and can majority be of ethanol, terminals one capabilities and as of in California biodiesel next – coming biodiesel them months. services most capable diesel are And of terminal do, terminal do Yes. handle the small well. products, all diesel couple into with do terminal has the renewable that a and first that and obviously, have renewable of a specifically in we our do

Appreciate you. it. Thank it. Got Okay.

Thank you.

from next Tristan Our with question Securities. Truist comes Richardson

Thank good on all Hey, storm. transparency the evening. you the for

and So really takes. puts great summary of the

initiative? prospects your competency umbrella on the a under this does follow-up business. on core area the addressing RNG, that power carbon-capture Just fall could that Appreciate a and the into comments for is vanilla and fall all ventures quick ventures as generation an

respond? He's And at again, all opportunities. I'll you Anthony, Yes. call – on to been these Anthony. this looking do want

I mean, at I But yes, Yes. early around looking that getting we're land. that. at Obviously, arms very quite of terms opportunities, on we stage footprint, a large we're something we're we’re looking we've be But at. in but a going think of got power at bit pretty renewable stage renewable opportunities. to early power our it's have

some Is refined Kim demand maybe recovery. million the then products product called $XX respect that related an And [indiscernible] with smaller I item smaller was that is of out? versus budget, you Anthony. mentioned or of to guidance Thanks, in Helpful. exclusively you items, Jones that what which to of Act kind or think one

versus the demand terminals and and tankers. product also budget across refined is products pipelines million $XX The Act Jones

all you three, will. it's if So

very much. Great. Thank you Very guys helpful.

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

a And Okay. you've questions for have good appreciate and evening. you asked conclude Good Well, very the the we'll call. much we your and attendance bye. thank

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

go ahead You this and may at disconnect time.