Kinder Morgan (KMI) 21 Oct 212021 Q3 Earnings call transcript

Good afternoon. Thank you for standing by, and welcome to the quarterly earnings conference call.

Your lines have been placed on a listen-only mode until the question-and-answer session of today's conference. [Operator Instructions]. Today's conference is being recorded.

objections, disconnect any this have you you at may time. If turn now over my is the pleasure It to call to Mr. Rich of Kinder Chairman Kinder, Executive Morgan. begin. may you Sir,

Thank you, Michelle.

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

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

and I and -- buyback this time flow growing believe while our every we good growing and to a on Now largest cash sense, that healthy receiving in are of broader -- various strong fund share cash a at what shares. talking getting our internally yield expansion amounts we our as I future optionality at explain a do consistent Kinder we flow owning about are our philosophy how financial and the it. use open developments. mention even varied positions on cash and play on come I've amazing But Morgan. there that quarter, always investment, needs, really if strong flow appreciate understand to call the pay we believe, should keep examined the KMI strength with balance a same our to, sheet very dividend, if shareholders shareholder, Capex I our to our and opportunistically of by what

that explain me optionality. Let

will to ability we us transition if if will return. be whether if I energy attract of believe fossil KMI. believe I public opportunities to time and participate gives and or size, be at to those firmly the desire, still world, those field the solid investments us favorable runway new pursue particularly with partners able further, the Steve for there consider our achieve we on the the for team to to what I that only that that around And a long investments flow natural it's so a satisfactory a in discuss entered have and in We is cash opportunities with our choosing, terms also fuels private, gas.

needs have substantial the opportunities fulfilling those will a to business, in PEC, the If energy will studies be can be where projections from for at accurate, that you at expanded expertise IEA, to our O will Company are of network supply read flow energy and Kinder projections the invest that and to natural this next the majority latest anywhere experts, of extended. we forefront fossil other quarter like century fuels and with the you continue find cash these will carefully Morgan A various least significant free significant that see needs. for core If gas and huge close

the sustained. transition, world needs many to makes need its the longer our originally the Asia, short, lot So, going on, a be and is demonstrate this to of events is need another that proponents fall that production heated, In more while as would difficult and this than option America shareholder. transition the homes to and the stay be of that add renewables North to you a Europe, lights be KMI receive thought. I throughout to industrial

and the to each over we're in with shareholders through the This to an really with in Steve. we then locked for have And providing our it our option is provides why returning through KMI nice return a of you say Finally, investment in dollars good provides I addition that, stock turn that return to future. healthy always optionality with repurchases dividend. dividend, I'll selective the

Alright, overview segment our will then outlook cover questions. environment your take sector through I'll Kim our Rich. David the Michels current A then updates financials we'll we and for and take business thanks, the give our Dang an will you as President it, see - CFO the of you our and

remain financial principles the Our same.

Sheet. strong helps advantage Balance Sheet take enables of withstand to maintaining First, opportunities. Balance a strong us A us setbacks and

is seen we've were X coming pandemic XXXX. helped other coin take extra the quarter, of years, capacity a of our side, were with us of related first hit us created ability saw to downturn. then advantage outperformance as and adding where into the that in acquisition the year, value our this Over acquisitions we the our result leverage the firm. both gave opportunities. We both the target, in sides those see We we Then of last two than better when

return through track maintaining we investments. our capital Second, our record criteria, self-funding of good are our execution, a elevated discipline and by

maintaining cost discipline. We our also are

for been how more we rate million an implemented functions an changes We leadership have efficiencies the always the were beyond In year we but leaning, could run resulting Chief at aiming $XXX organized We completing estimated centralized we we that Holland. James something evaluation even we of Operating time through effort, see were that can a we in in and how of last our about effectiveness, under of were efficiently. greater this full-year coming Officer, efficiency, year. and work

We functions. management are and project benefits seeing other in the already

providing will returning the which fashion to by operate the to Sheet, but Balance dividend moment, the -- returning an in we believe lead increase, dividend. to we in we distinction. have accomplished work covered discipline, Those is shareholders I of regardless year-over-year so important what Strong far principles some and increase so have long-term with done well a at shareholders XXXX, are and we're to $X.X capital cost Finally, value annualized, value

Gas projects year in a First, our with continued having we our continued first ahead and out a we're have in our small opportunities on new noted of increase to find net execute performance attributable two the release, to in as this in schedule, projects record coming group our with press well the quarter, Interstate we've to financially quarter. backlog

and to and two Second, ones, we storage acquisitions, Stagecoach, BCF. the completed long-term the our and our our renewals. rates operated in value recent it in larger in the markets believe and on natural important with of deliverability value in seeing long-term tightening total gas taking the natural gas abroad, the in gas storage our flexibility the capacity that confidence and winter, last We of here was XXX showing we're demonstrated business the business

the and ongoing performance. energy continued to markets our ESG we've ball in advance and Third, on evolution the

includes things course. today, natural also As But natural includes and and it and That energy organic the renewable gas, business backlog repurposing million future. gas XX% to the sources locations our Products projects of support terminal is stand projects. at building Terminals support our of our renewable of diesel supporting our infrastructure. of carbon in low $XXX units, current of in assets

multiple at of that XX% average times projected spend. the weighted capital in come to a EBITDA too, Importantly X.X is expansion

along gas has transmission low investments. and through Further, So, the concluded from these business. sourced our transactions. Those our responsibly producer three returns now chain gas storage on we're team emissions getting the attractive are

both report, publishing scope and will our We emissions. ESG be X soon including scope X

without have for We sector have us existing top report how one processes This our our the our these we explain ESG of distinction ESG two with number us reporting continue in is transactions increasingly we at the advance returns. sacrificing and meantime, evolution energy management ball our management has and ESG, reporting point and ESG investors, customers, and the our our how. and risk a and our of incorporated all ten. risk to in commercial ranked and manage the risk, with the this, services into ratings In will on projects, other Sustainalytics regulators, management, markets

safe well. XXXX. governance done in We in in to will significantly get on sheets, ability advanced winners operations to long-term the three all on the cost the things believe strong environmentally success, and that G, sector circumstances. important difficult things and and have to ball Balance are are in our the focus low ESG sound, have all as These continue we We our

we will Kim. meet to to the over opportunities. it turn As I'll challenges evolve always, that, and And with

Steve. Thanks, Okay.

and so, That's about LNG I'm up to declining service. the outages, X.X some start per those unit our natural to pipelines and business going approximately per X%, Physical cargoes. driven per LNG million increases XX. deliveries of third pipes the was by pipeline X.X were offset the day somewhat the facilities and are dekatherm of quarter primarily our deliveries explorations. to And declines on dekatherms it and that there million for a West lot of with third -- was off gas dekatherms were by versus then of PHP And Transport day. when a Rockies average volumes quarter cancel XX contract million production, of the day increase versus the increased X.X due quarter.

of as the facilities quarter when the the in to the third-party capacity expect, Overall, a of natural down down to during as quarter. Mexico higher Our compared plants to approximately quarter to were market LNG with might deliveries new prices. gas of second deliveries share were 'XX, power pipeline was result a Exports added XX%. you

about down were in is quarter quarter the more of X% think for comparison quarter. informative compared volumes third the gathering gathering the gas natural sequential I 'XX. volumes, Our to But the

to of reference Haynesville jet quarter and down was volumes, quarter with which Products In quarter were were as about of X%, World compared and levels refined And XXXX fuel the the Ford quarter down So, of in point. about our third increases the the second X% Pipeline and up up XXXX. this for Eagle versus XX%. XX% a compared the which the pre-pandemic we product up volumes fuels volumes the use X% to respectively. were third year, segment, nice were XX%

versus were number. that remember the the second might flat road quarter, pre-pandemic You fuels in basically

demand, some third about were our you levels. X% serves up Variant third of XX%, utilization versus of our And quarter remains for out domestic at are quarter business the about they the they are XX% we versus business, nicely exclude condensate pre-pandemic approximately the So, Iraq about our impact X%. in see segment, is and Delta but of which X% down liquids Crude of consumer sequentially, down inspections, during Terminals XXXX. tanks presented were the utilization did high versus service quarter if In volumes XX, the quarter. down required

and on Now loss exceeded an so closure, apples-to-apples you to pre-pandemic terminal some volumes rack business on basis, trying Iraq slightly exclude our get if volumes levels.

versus the international are and increased however, Our driven continue refinery customer are have which York, dynamics tanker to seen -pandemic by hub recently interest. that terminals weakness, more In pre shown facilities blending Houston recovery New experience we in and runs, business, levels. rack less marine our trade we've

lower. crude see unhedged quarter as barrels, environment. the We current we -pandemic tend future benefit did however, were on hedges NGL put price on levels. were lay our volumes NGL periods hedges volumes we prices additional of price X%. in up as were On price We on periods In expect an crude COX side, they're by in steel benefit XX%. combined the to driven versus in and less down On higher do our from and production have and in COX the didn't we volumes but prices in oil Bulk volumes. look prices. we reduced our COX these XXXX when down the bulk essentially crude prior But comparison. well Petco as at anticipating is steel, driven crude the volumes COX to if a just oil coal, volumes to exceed flat Petco. SACROC. Compared oil budget, to the coal, NCL are and project were that still budget, were overall by increase price, primarily both better about you volumes up benefit down nicely from on will pre in decline about currently in X%. volumes and we're X% as segment, at see place performance Very and basis, apples-to-apples a about due production X%, base Better to

gathering versus seeing natural Haynesville gas basis. volumes Eagle Product we're increased and Ford transport volumes the are overall, volumes So gas a LNG recovering in sequential primarily increased XXXX. on the from exports, seeing

weakness been impact fuels flat COX, -pandemic we're were variant. last budget, from we with it's indicated about new XXXX. customers wells and versus turn that levels will oil quarter, an tankers Delta levels getting likely have We're our -pandemic that X% Versus little pre new production, some in the and But -- bringing less they're Act it experiencing Jones road versus on on our anticipated However, I with saw as a With pushed being bringing is David. slower crude still to pre down in bulk into they'll outperforming production continue howl nice than price. producer our we that, some on and wells. the over

Okay. Thanks, Kim.

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

This generated cost billion quarter up million, those by there higher prices of quarter XXX of We increase the an associated versus both increase last we an driven commodity X.X of of from XXX of revenues XXXX. million sales in third with had year. increases

earnings share last adjusted XXX from was Our 'XX, million, the up up net income from $X.XX third the of quarter our $X.XX was year. X% and for per quarter

segment our distributable onto performance. flow Moving cash in

up million we've quarter. usage tanker offset million contributions from activity segment lower million volumes was there. offset for the and and recovery down Act Bakken. lower up and product some continued exceeding segment by segment contributions weakness system. in park driven volume PHP crude lower gas contract partially explorations the recovery our by was the was partially Incremental product $XX FEP Terminals driven where EPNG refined natural The $X were refined XX partially volume offset loan Stagecoach by Our seen and our volume by recovery, by product from had on continued we've in Jones business,

result efforts, as organizational this spend capital less G&A in we capitalized million last. as versus a as our Our partially year due by in versus savings XXXX, Those G&A ago, cost cost-savings of $XX to lower the as non-cash are by pandemic. were higher to well this as pension quarter we this resulting well and a experienced offset efficiency experienced year due lower corporate charges year expenses

mostly was due balance favorable $XX year debt expenses, versus lower $XX of this lower million million by by JV Our contributions from primarily driven DD&A Interest Pipeline. to Ruby year. last lower

were -- into due cash Our quarter. to was were mostly that $XX deferred favorable taxes second the a in and of quarter payments the due taxes that third million, XXXX

that's the $XX slightly than natural to the to BCF just to Sustaining with year. down slightly unfavorable more are year budget. gas for about taxes or segment. this $X.XX budget, full favorable is million expected XXXX most million into though unfavorable full in higher from cash quarter, the our variance expect be So, of for capital coming quarter, $XX driven to than slightly $X.XX quarter. budgeted was our per and spending year, billion that And only by we be last fourth Total share of $X.XX we

billion we $X.X is quarter, full-year last billion. what provided guidance and consistent DCS at EBITDA Our with at with $X.X

X.X expect And generated event. at times we non-recurring to of Moving This on around from times quarter, largely long-term leverage X.X winter ended not at times urea year adjusted has level and the to our EBITDA changed. X.X target during during sheet, storm the as of the we net benefits EBITDA, balance quarter end the well. first the the debt to

closed up million that Capex quarter. of of mostly year-end of acquisitions, which we spent expense JV Our majority for XX.X To million quarter. quarter net the Connectrix billion. the from on that We and second dividends the explains we capital the And the And Stagecoach for X.X end We've a XXX quarter, paid the XXX and interest of payments collectively We billion million working reconcile $XXX growth were in had debt billion contributions. ended XXX change use X.XXX at million. change of X,XXX,XXX,XXX,XXX from generated out in down the debt, the net BCF. the quarter. and

expense billion XXX For explains sale, in review. billion payments. billion Kinetrex from contributions. generated the And year-end, the capital $X.X of and NGTL to we completes dividends, We mostly out interest JV financial come Steve. we X.XXX that in and of $XXX had that on Back we've DCF. $X.X use and Paid the change working majority million, the of a the Capex year-to-date, of change Stagecoach spent million the XXX acquisitions, growth and the had

up then you, get limit initial will ask back now Okay. to We'll open do, questions question into your one we it follow-up. if queue have you and an and usually Michelle. we'll to And get around more, you as for and questions we to

One please, [Operator - sir. you, Thank Instructions]. moment, question. the for UBS. Q first Gershuni from Shneur

may go You sir. ahead,

Hi. Good afternoon, start everyone. little let's Maybe here. a off bit

RNG, with on front renewable acquisition to and You've the been the quarters last forth diesel, respect so transition active your capital expanding very few energy on plan. in

forth, need there capture recently the to of like carbon [Indiscernible] [Indiscernible] companies added carbon side. updates You've lot drew on the and A been on have announcements on fewer models so backlog somebody and some if you seen? Is approaching. can as capture carbon Kinder of Just us an as these the sequestration. give capture you're update planning aggressively we've pursue on that wondering announcements to strategy in

arrangements some You [Indiscernible]. of some commercial broader about time, talked thoughts last just

of as others COX Yes, Sure. as express related to understand. they I develop. economic investments to this tax existing clear important We certain beginning gas I to involved made. make want those capture announcements infrastructure. at flu processing in pursuing adjacent terms won't time those of carbon I facilities will year some West that's to are in in view which primarily were primarily attractive and do ethanol the the are capturing of think and facilities be finalized stream this. XXQ an off Texas and The credits the comparisons take our we to and And about opportunities. they've this but opportunity, really it to

Commission that's to have up get particular, there the get to gave examples. me on that time, out itself. much pipe that should In up I the process other for last the legislature is through EPA from you brisker. shorten would have five- but and underground thing they about six-year or to give process some is the at apply the then long They drawn to things work let here, Railroad shortened you just permits Texas, in injection primacy something So, that'll a process the And in go that. to a today, One few are think think. a

pipe, achieve through you pipe, something efficient more COX TSI X,XXX pressure, far liquid -- purpose a gas to That high requires efficient, or repurposed move special it's form. the can pipe. more not more That's have, which pipe. we with So, the in much that oil

at particularly smaller and it re-purpose we've distances, shorter some and applications, volumes, is, are for Now, this we certain opportunities. think looked there potentially

breakeven off I day think like a you ground. to into cut to need the move more it less, order to there, make attractive. facilities some But or it's XXX and in otherwise, efficiently it specialized the inject that

tomorrow a a not it's we active advantage take got to and in in thing, boat, to the that's up, got conversations. got permitting it's get develop, bit who next to we if It's shortened so, get not probably but to think customers year an nearby in are something But And going we've will. little you our we a are We've infrastructure time that. thing. the of

Steve. Great. Maybe a there, Appreciate for the color follow-up question.

of environment it right to storage that's where spot assets your Given Haynesville, the prices and this some pipeline the you some well your take right now got and natural pretty also. you growth where higher juicy contracting more customers as around longer-term challenges you’ve actual quarter, many broadly we gas or with by contracts? Are seeing interested securing seeing during activity gas can convert or system, see now potential first any

particularly Yeah, able incremental to, Texas business we've our been flexible also have in signed some and we storage. on up

rate increases; we seen got of rate value on and call of everybody additional good the underlying business. a bit on increases incremental a I pretty wakeup think are because working We have storage

hasn't delivery are publicly in that that deliverability. market really come export more is put we're that and value particularly things it's mentioned, it, too pace for additional bit Texas active a they the the people help but a We demand it, has power but we needs, little across current fairly supply XXXX as with grown, and is of when tightened are face loads, let's the capability have even strong as power is has came industrial fast what And downturn. supply about it putting to think working the should, seasonal, as But these others demand, we country, our would talked strong. on with demand come project that quite state Kim and Residential firm back of more as kept up as human of back XXXX really seeing markets, in merged the would producers value outstripped and as it outside demand commercial that regulators add demands but support area. example, off out hasn't on

at coming, the just resources get So, deliverability of that deliverability, winter going think we you as we the that's look transaction. experience a And people stack, seeing in firm had, people to value generation more at that we're as be intermittent the as attracted. look real

Thank you.

question next from Dounis, from comes Credit Our Suisse. Spiro

again, afternoon, gas Hey, to but $X gas. at are you to asked I you I'd everybody. we $X Steve, about think didn't macro here time, Good ask last have and

seems so, of lot change August. it like since And a

just yet. to about front, love telling are alternatively, these that's we that to do supply take? power higher prices of on Is really what producers plants price have here. of haven't that at And is to response your think normalize you pricing. What taken then because you What Kim, through levels? you take the they going need thoughts and need would To when? point, refresh think to we deliveries some going So, you that mentioned destruction worry to the less something see seen demand

Okay.

on with I'll first gas the in one, in And on macro. to call Tom the here. start fill this Let's

again, had the as but traded did producers in. improvement responding are back quickly some publicly And to mentioned, in you're bringing have many -- seeing a about rigs speaking, think responding, plans. they is of And starting there the the quarter I conversation, generally the Kim are livelier about downturn. lot sequential be As some I with prices, who QX. as coming the as it's responding producers not to We've higher think, but last disciplined see share not in reported, Bakken, enjoying much to in exceedingly Kim starting sequential mentioned, discipline. as out continue capital are to the we but case some concern about development and QX that as timing some producers They're shifts

I However, of now the rigs think on something order the Permian owned are private the in half by players. of

coming And will whichever slower. bit so, supply the a just been It's back, drives back come it. source little capital Tom

I think you covered it well.

And then on about demand the current -- talk you want at to power pricing?

I not backfill some you demand of to have much but that due on intermittent in certainly mean, do gas higher just power we seen years. degradation in has prior renewal need have would able basis. to and power And with retirements we full as and a an the as not to lot prices, seen expect what

firm so see, services a decrease, said, capabilities up power on to power for significant gas-fired not basis. but again, And their a that's wanting slight sign to as and up customers we longer-term still Steve

the looks all good future. that think I for

Great. c color. helpful That's

one, energy since basis. earlier. less, Second of course, then, in new front year. just that especially of think with improve, transition a consider of that guys mentioned I $X seen fell then number. talked the to billion maybe spending the outlook And thoughts forward, of dramatically kind the multiyear a around to opportunities or lot was Rich your of slowdown, latest going But we've have and when in the billion pandemic capital $X you sort Historically, spending you you the any about given on of $Xbillion kind getting

target level allows you keeps to also wondering, it just Capex going how you grow to so M&A think about your an sort think of you about forward, growth And every that or appropriate and want of dividend. do within leverage the spending.

we're there. to kind what of the that new is ended think to one we year. have million billion X, the two natural good still we capital for we for activity from A to we -- earlier. so out as and natural on XXX up adjusted But under continue X there this from a we did And still a expansion about X look, I mentioned, renewable adjusted gas, of lower, a areas the to that's and X the outlook some in, estimate. the the you so When about something about this gas function pretty think renewable right. we to this come area is And at of to year origination is talked is of I of we XX%, we think -- diesel our lot backlog and the it

gas right One, and build. now, their on lot is think are demand for is of more that a other don't hear points on it those just Texas the really of need but And Louisiana a about the another to we permit But on Gulf to I Coast time frame it might the Permian bit. needed pipeline. has big They in the secret it's expect. mega-projects, we're the no growth -- anybody, to harder starting need a two be the here. when hand, growth up lot a out and little bit it from Permian moved players

just function of a in discussions projects huge prices It's advanced. gas. natural But to probably I think crudes, both are extent and to not as or aren't likely so And some very current permitted. really get those done

And so, network about the off two attractive the right, existing returns. is at still probably our one building we think

satisfactory emphasize, we're agree are And just Make Steve many very very we've is of to how a to lot certain about talking disciplined kind we me as going range we're about we uses judicious spending returns. that going be let but these I so said And of use for have with as approach the it. in capital. Steve this to times explained, and be our that capital

Thank you.

from from JP Tonet next Jeremy comes Our Morgan. question

You ahead, may go sir.

afternoon. Hi. Good

Good afternoon.

a you want forward move on more how stand-alone and to in to can do you touch in hub think bit just needed and by or to the think themselves? that papers, on University And on (ph.) carbon forward think get have I move do of this discussed efficiently, is concept Houston your here Colombia carbon unfold. thoughts projects you what that can capture really the wanted their RISE capture

for to know the as reasons said we to lot But, -- think mean, that through. larger or piece there? the exploring we we're standalone in add transport how projects. of again, want anything Well, there's of I come opportunities before open we're I've -- the a build, participating those given bigger you wood see to Jesse, [Indiscernible]. well, chop I COX and discussing perhaps before, pipe, operate perhaps other to projects all own,

No, I agree.

party you have it probably concept. multiple I to just get hub come quicker, think the on standalone to together that have we the

Got And have that or are that off far commercial the it it. forward own growth see that production Kinder thing ethanol going sticking the footprint that mostly helpful already then your servicing in what the base? as could moving That's you just the it Kinder kind you projects organic just and of as in that could with to do see do type upper do is get or forward, relates your two of backing there. COX off involved Midwest? asset to

to be carbon looked Again, in objectives to I just to over want I the term, looked the going -- Yeah. look, meet think carbon if We've to again, at at we've sequestration, of long and capture we're capture going have here. some is emphasize, picture. climate part and

likely expectations going think think work we some But there. at unfold get is to we And to rational I'm a to how done. the projects just trying be at done that's first and to to level where quickly set have

we explore carbon discussions a still potential existing if people things are on but network, in are there's have were stages, those. to And had off that there our but about good. so, the and focus network the capture would returns sequester early with the Thanks, we

you. Thank

next is from Fargo. Our Blum caller Wells Michael

go ahead, You sir. may

to your Thanks. there referenced private you back sources go wanted on I think expand markets Can be Good comments, to sort other Are in the potentially, perhaps or business. of you afternoon, you so everyone. of you just that may be with public at may you invest looking suggesting Rich, to might capital? I comment? opening partnering investors not

transition the be energy very investment mass saying that when have have move spades. we critical that at to and ownership partner at We mass terms ventures believes deserves our it think or No, we think on growth platform receive with I'm in the creating will to was public we we our critical that of gets think significant feel there will and that what interest us. opportunities, be some we time I is And Then we are would when saying lot is we of have group. that a this a point, the value we and the Board choosing real private time. appropriate think we're towards believe, still which as to opportunity in favorable

just higher prices. able that. Have Got Okay. the you about any been guess. business the ask in business, about that bit of of changing it. little higher-priced forward, I are capital, increase in EOR to going to a Thank given differently you lock you given for Totally oil and I wanted gears. the in thinking allocation hedges prices, terms

Yeah.

hedges. lift Last the hedge favorable of on really We backend continue quarter, profile. layer to we've our been to able

that's So growth increase. assets we seeing some that as our positive within existing prices organic are a

that think So, continue. will we

from Richardson our question comes from Tristan Truist Securities. And next

You may go ahead, sir.

Hi, good afternoon.

just storage are to as of value there us commentary s to the say, is nameplate that you renewals. capacity up where to or waking for of you gas on today or frame customers potential available Just Could follow-up for up storage? proposition signs positive today the capacity contracted gas and comments relative on generally your

Texas. if of specifically got several got we expansion in at that to it contract, buckets. you mentioned we a Well, think looking under storage in it opportunity, I X, are

We where make the like well, and is Really XX asset are renewing really that We're expecting have bucketing value storage, contract keep try appreciating we we're about here. every expecting contract is storage fully But of will values under to point Texas That's pretty BCF see Stagecoach continue have as that -- I fully the prove flexible that's to year. the happens. or or want as in that off we -- our pretty business. under we that seeing We well. most. storage intrastate to rolling about flexible XX those and improve. a

If as our to gas park market, customers. you backward a related opportunity for park shorter-term services not much storage in and think there's loan like dated about some of

And the acquisition but outlook, gets we're -- little business a overall becoming was what shorter-term the fortuitous, aggregate to us. made in seeing which that so judgment. made it's that more storage more and limited. and the that's But And also in somewhat our in and attractive is what it valuable opportunity, made

tailwind both talk Helpful. back see levels? just this seeing you dislocation? -- XXXX Can about closer commodity can supply towards You we're all inflation Thanks, dynamics bulk of of some you is the capacity being Steven. on the the business. And side utilization bit and then switching a gears, backdrop as a But positive, small a from little about either or the businesses, piece with and business pricing talk side? some of

Slasher. John

We we're in from kind in you're XX% where mirrors coal XX% see standpoint. up and international the area the the XX%, of was what on up which the area we of XX%. quarter most where up were Sure. up an and seeing U.S. growth production were steel exports

nine following So, the back the at along we export back facility, XXXX on as which is is we've We're to pure of stand our that. today. COO been our levels business predominance to where

you. Thank

Our Wolfe Sir, Research. from is ahead. you Keith next go Stanley caller may

afternoon. Good Hi.

you update guess market over organic on just relatedly, the So, and try just term voluntary to can through that'll you're to in plan give next or steel you And the there? as you talk progress see growth? either I you years, developments that significant the then several or you opportunities any rent out acquisitions of exposure, be closed and seeing part whether now, having that can capital RNG, the Connectrix a in think an your

Sure.

if time as were on that the track. deal, the that believe EPC three contract, the contract at you cetera, will. I off. So with they are mentioned, kicked projects, Those Connectrix, closed. that under -- et all been Kim came Those under That's -- we

all now. Keith, -- it's very of shadow other There's to returns there's right very help The from opportunity means backlog, voluntary work are attractive. million bring of are it. Optimistic, in than real RINS quickly The at right hundreds business. per additional opportunities, voluntary this, in XX the close on discussions say, RINS terms and there's -- to very competitive market, you the guess maybe but underway to the that economic there some to a there. done the The we I but XX installation. out and landfill think with million scale much we In how that volatility. who good, counterparties the essentially set, scale others. of to that be and some the players returns -- the and market there here there. We to believe win of what the more real And But that and are it's of quantify is capital landfills, will, how that little hard tell commercialize on now interest, if we've are to got commercially without and value is would interested eye I'd We're a but early a have buying keeping lot much. conversations that number we are nice locked without a in. but when significant win customer commitment

are strong. is renewable doing commitment and that think I ESG market gas commitments making. -- so, in is that interest [Indiscernible] the the using people of real natural Their And because

that the so the model. but that and the we what economic And when sold RINS gas, thing acquisition generate think interest is than inventory better meet quite trucking, for the prices. exactly heavy-duty about is attractive attractive objectives them we you operators sell I mean, mention RINS our we and year do not barriers their at technological electrifying and other at climate would much an our the so even LNG pretty and the at helps big we've is the time of are prices I had transport And in the fleet in natural alternative market. some of compressed

Thank you.

is Mulvehill America. from caller of Chase next Bank Our

LNG. Hey, I good first guess around is afternoon. question really the

you if You've should got I -- this share, through next get with you says that you're over LNG next exports pull-through months is about so going XX the transport some online XX% on XBs come then think the a how impact know day to or XX% market It coming side. said your Could going [Indiscernible] the expect you you on online volume, surpassing. months? about market XBs we to got to walk XX that and incremental for G&P XX the over XX share maybe that

them. think we projects our as grows, their we're are Yeah, certainly with of grow and be a log that do then will year. projects lot have I FID --on with incremental We now. certainly we our mean, of that that share We we capacity that so don't in we that contracts projects we have commitments we serving. do but have both next facilities believe have have those we'll discussions capability with active Cheniere to sometime And of other right well, get back doesn't as probably business end

as there on Okay. natural Are the in resource out you having about And getting market source request in and natural response responsibly thing LNG gas operator's follow-up, one natural thinking a LNG a the All response gas right. resource LNG feedstock? premium sticking actually gas. today just then is And today.

carbon LNG do hasn't who the producers overall place the --and of in that, have are they Europe tech that content But cargoes they they techniques, in -- interest the are interest to completion emissions. a they're our includes really of you problem But what And And the to-date, transactions our that right problems. making closely that point working LNG is it. not of in with it there interest with as them particularly sure using etc. And a premium is trying interested customers. on focused escalated part. but and there to tell are make the very we're and their just done, has methane much late. we we've we customers cargoes, very they've been Now, Their their what told are a I would think is here is sure us

Mizuho. is Moreen from next Gabe caller Our

go You may sir. ahead,

of Astro good X. of I Game, guess that? channel, a just take is to other everyone. your know reductions interest HFC something I'll is that that's apply or also only wants return ask what the the project doing project it there's specific well, on to get Cause evolution to you the be there to around ship Hey, there I'm $XX afternoon, everyone going to million can and and just emissions curious the in doing as whether on hubs you're some I but the that

combustion where existing recovery mean, those project I and combustion we're units, replacing units vapor vapor with we've vapor it's a got Yeah. units.

can And little so, that sell so economic there we vapor then from, there's The unit vapors, the natural savings. And a less a is economic as gas return. return is capture recovery we combustion than comes of other and then an product. tenth those

and the return. running the recovering. is to us there a gets So, economic that volumes we're of lower cost economic equipment that And associated the with nice with return an

the in We counted anything this haven't emissions project. in reduction, a this reduction the project facility return from emissions -- the are XX% to for we from that on get but going

COX, implicitly And reckon when even us slight Kim, to fall a to tell to Board you're -- on starting a the on price projects? you -- that Is put discussing

COX hurdles. discussing the -- on non-quantitative basis, It price to a consideration. But on a put is need projects. not projects have clear quantitative we're We need a to the when

Sachs. Our Michael Lapides is caller next Goldman from

ahead, sir. go may You

I X. for questions. you-all my taking thanks have Hey,

either you if all, basins? the or can steel about bit or a for or potential tariff X, needed for returns the the when of Permian do think timing, of you capacity. First Haynesville for larger Question about either basin, debt, to cost X should That's basin we might about would are haul new think customers labor means is either how X. good are saying up What prices inflation your or a long roof, when levels? little need potential talk question what through pipelines X are

takeaway, probably up had in some I that's need we there now, conversations with before And on the least, moved based XXXX, call about what the Yeah, is at mean, it. maybe Okay. being talked a customers, year. Permian on

signatures occurred out; to want two be sometimes things can different and Michael, Now, points time. point just contract need in I two different that

it's think Tom, of the real discussions that to or year there? the so. probably see timing we'll see commercial whether the I really be demand and And plays out on is having we'll terms commitment the be over so, And there. going -- how we'll in next Haynesville,

Yeah.

in be XXXX. So, FID there project is in market X that is the that will

BCF takeaway then additional projects will that So some in so. same the to for some pressure. relieve need there think sometime or a is expansion frame help for we XXXX-time And mid-XXXX

And materials is current prices a -- it for additional there that but we protect extent dislocation, on needing current us we've we the it it sometimes past see sure or the on we gone got your into so to that updated thing project ask, make steel and done. costs we've so year-over-year, to doing And thing what the your think we're is forward to of them, other an -- we're that obstacle we down. which the needed mill We an we were evaluating rolled to and real But the terms this when on equipment, be that materials We've some don't steel starts deal. absolutely and so approval, make that trackers, and question before in you a in the about To then is escalation long-haul for make sometimes year-to-date. Yes, like. been been in quote sure necks really are to has the get priced up. from question, three it's included projects XX% into case, getting hype up steel in and market world here the have steel is pipe looking is up goes willing at didn't. the board prices. across information and capacity to coil, they up That's people view on But pipelines. come would to any

Thank you.

is Our & Tudor, from Bean Sir, go ahead. caller Colton may Pickering, Company. Holt you next

Good afternoon.

question, was seeing a of that that then at or XXXX? OpEx Terminals, to the expecting do exercise I the related looking look release of there? those exposure some just key Act. additional Jones you expect of for it spot any should And So be be options, idling at [Indiscernible] mostly a any you we just as there. would think counterparties margins renewal softer Are It driver

John? Okay.

Yeah.

idling. and additional It like weather them spot $X gone get this able in those any capacity no idled storm were the rough to the XX% were the this with per hit or until thumb impact. roughly don't have industry. period the vessels re-contracted. we time that year been of us the all had to idled X of of point vessels on, We re-contract quarter any We entire hit as to per for through of able COVID year is year of has been a year. short given was We it at XX million rule expect all vessel. able We've put other

into days. if XX% the you is fleet Our exposure, forward kind of about look 'XX

hydrogen, update. seen then longer-term of had and obviously appreciate here but And a I a think I opportunity, on that number this a -- morning larger steel pilots, we've switching a just maybe just announcement. gears production checking

seeing a you any requests the transportation are on So, years? blending for look network we as out few

retail with conversations innings don't presumably customers that that will an the point. it in of early that the context, We're is of like commercial cover the mean pointed be have over customer on experiments or solution That not now activity concrete ability having like long announcements, out, It we're utility a the still to economic have but things but real and something it term, [Indiscernible] this one Again, still Yeah. this is mean challenge. -- that. you at part doesn't those pilots we to like and right something in will of it economics that. won't but it's a that bit with as it about to does pass through have you a happen,

you. Thank

Our next caller is Securities. Sunil Sidal from Global Seaport

ahead go may sir. You

And Hi. thanks question. everybody. Good afternoon, my taking for

a opening first was on related So, clarification to your my question remarks.

think if has is hear strip strong looking in the somewhat that what And so, in Obviously, picks I that mentioned mind changes Bakken, been Did forward. slow. you up commodity I the trend? your volume fairly the correctly? that

Yes.

and continue are work rigs of that drilling think to and is done. add they the doing producer continue to absolutely changing plans and to getting dynamic I running to So, adding system. that to the are are in terms our -- wells They

a the the The wells online think and it it's both little side. be just think were put those on for we I gas to growth year. were crude than opportunity connections we slow. was a still, assets the robust what had little anticipated that slower, the for But

it. Got

a just matter it's time. So, of

Yeah.

forward? related Obviously, some seeing in of that this the is kind and curious just about spreads question on actually was second view the the in spreads the Ruby contracts pipeline, I that seen should changed your Pipeline? going And markets on off. to was asset has have volatility natural I and curious, we ruled the The that the impact that of gas of drop. think widening we've how [Indiscernible]

on comes no when going shareholders particularly our update From but there's pipelines Kinder Morgan, on pipeline on down -- down Morgan the going Not is outlook the the activity our -- time-to-time operationally with change coming what's depending some in as Canada, there with Ruby, from coming economic there. decision change And Ruby. going Kinder debt is on in make our for no we're view on to due. which an what's

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

Obviously, and up off you. to Thank very everybody you Thank in get much. Boston. wants baseball that game watch

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

and disconnect may You this time. go at ahead