Kinder Morgan (KMI) 20 Jan 222021 Q4 Earnings call transcript

Welcome to the Quarterly Earnings Conference Call. Today’s call is being recorded.

If you have any objectives, you may disconnect at this time. [Operator Instructions] I would now like to turn the call over to Mr. Rich Kinder, Executive Chairman. sir. you, Thank

begin. You may

you, Missy. Thank Okay.

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

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

the believe fourth bedrock gives for budget to Year, off, shareholders. we and all take year In ‘XX it’s company valuation, our a released this needs that flow in substantial to of our is outlook Whether it ability an cash which stands cash apparent to this time present look kick is results the XXXX, almost judgment, good of opportunity at recurring beginning because I the produces any where out for my us under circumstances. the stock KMI December, or for XXXX, potential capital fund flow. quarter full you investment of as this New the of its a for Now the

I and the is in and there maintain of opportunities, high story shares CapEx stressed growing solid I’ve return As many invest rewarding basis. more than an can opportunistic buyback a cash times, so selected dividend very that. But on pay a that believe we balance sheet, use to expansion

this transition, for energy than with runway that during and assets that the natural also that acquired a the last short, performing it’s has recently will the of by become energy coming best we expected. be XXXX. Investing are many in demonstrated several the more In XXXX sector is particularly fossil months energy the gas. especially apparent, sector, complicated participating fuels XXX transition lucrative the originally long there S&P longer meaningfully sector in over and very we during been While we

that in year started out continue XXXX favorable view expect way. We to the has and that

segment, are with Within They believe the argue trend. of flow KMI good good to generally this and We solid energy is cash growing midstream investors. contracts have less have volatility their less would than shippers. I for exposure that pipelines underpinned playing commodity and by extent a large a particularly most and a upstream way fit

per debt per cash $X.XX marks We we have to are from billion XXXX it down the over over increased in growing share. XXXX those $XX living within years fifth our consecutive since paid dividend, We year flow. our $X.XX and share

In so has a our addition opportunistic our if year we returning execute we substantial this value firepower to shareholders on approved buyback to through dividend, have during to choose. our which financial the Board program,

Conference of our factors shareholders, keep the run making over to year, on it at turn when And coming come all about will the next our I these Investor to over that, decisions more our investment subjects with Day Steve. stock Wednesday. and mentioned Finally, and this will for in owning I is XX% about hope shareholders these company. company management with have by mind you trust a Board I

David we and take back a what and on then Okay. XXXX accomplished you. Kim before questions. and over turning I in allocation on capital will brief give will it to look we Thank your you touch principles

opportunities. we the next the budget is comprehensive the and and the week week outlook XXXX will to As and this our case of call, some on detailed conference, usually on before in-depth business comes the more which questions investor defer

that of we at quarterly during of winter our we the giving due a Uri bit people that acquisition. our updates. including our XXXX, to our to Much running year you were the shy our closed result and and through of of end EBITDA our storm a we even was year by financially. in Putting excluding of strong guidance outperformance But year, a gap benefit assets full the the As target, the Uri, plan wrapped but performance the met QX we Uri. up as in Stagecoach aside, record were

start adding getting off of We acquisition acquisition our to acquisitions are acquisition set our with for portfolio well Both industry Stagecoach. gas Ventures business in up renewable largest gas already also fast and asset our in Transition of storage the Energy to ourselves future, the the of models. outperforming Kinetrex the a business natural with those

Third, detail next at conference, strong. as in our cover future we week’s will looks

energy opportunities, attractive will have the long needs and be we have assets needed at shown new meet growing to a And the over opportunities you, long-term, into Our around commodities And use tomorrow. for of as the come. to transition to returns. energy time enter we our assets store world transport we to energy can

solid are with and attractive set an businesses capacity sheet, with with capital of a the existing entering balance including well-positioned We XXXX projects. shares to repurchase

capital approach to and Our consistent. principled remains allocation

then our at X.Xx, showing know EBITDA and projects First, to of in we well take the of of well cost in return sheet, with are net care balance that which invest of attractive capital. excess we our budget returns businesses have debt

the at billion and billion discretionary last in Our $X.X the experienced to billion $X XXXX we the needs of annually our $X we in are billion are that at billion, decade. not range range in lower that capital end to $X more the running at $X budget,

that’s the guess, and share we that and for risk. – returns and excess say, an of step dividend, projects $X.XX in The to process very I and our of or execution return would the well-covered at smaller the in shareholders generally are existing cash sized We in generally final fill toward form seeing built of repurchases. is also we [ph], with less those XXXX continuing to the off increasing attractive do are are form can I network

to As sheet guidance XXXX including $XXX we we of our capacity repurchases. December, have opportunities, million expect for in share opportunistic attractive said balance in budget release

lower current some expect experiencing opportunities even etcetera. projects, environment, have capacity we add in to repurchase the we if the we of capital are the shares year would additional Given as to investment form spending now the proceeds

the invest As our of be winners we new difficult to operations balance have will and are in discussing in the have to done believe low add We and wisely to strong get things environmentally always sector the repurchases, that circumstances. cost we safe not the emphasized when value opportunistic, sheets, have in opportunities firm, programmatic. ability will sound

With of evolve proud I’ll over as to our are the always, opportunities the culture. and challenges We And Kim. to our years it team ahead. we in meet turn that, will and

versus off EPNG service contract expirations, which the pipeline were somewhat per Thanks, volumes. approximately Alright. down dekatherms Okay. X.X day, outage facilities were production, million continued that’s XX% of increase X FEP averaged volumes PHP a deliveries fourth that about X% per in to and natural offset LNG million versus on Starting by fourth quarter quarter dekatherms with ‘XX. gas Dave. and deliveries decline unit our or primarily LNG our pipeline was XXXX the by Physical transport of the quarter, business the day Rockies increased for driven and

were the were of market Overall, deliveries deliveries partially coal driven as down market. supply when Exports LDC of heating to plants remains of to quarter the at quarter result result by the to least compared down deliveries a capacity to of Mexico issues, around XX%. fourth XXXX up degree lower third-party while recently were in LNG share pipeline slightly, power added in Our days. part, a as

were X% the in Our natural gas gathering volumes up quarter.

the comparison the more gathering quarter. For I though, sequential volumes think informative is

up the point, were of Eagle and levels Bakken the ‘XX fourth number. with third X%. X% our slightly. X% road and increased down XXXX. pre-pandemic was a were quarter using the were to increase fuel, this with a fuels ethylene pipeline diesel up X% of fourth Compared XX% In quarter volumes versus big jet QX, refined XX%. down volumes Haynesville versus which X%, up for road volumes, Volumes about reference were compared the quarter in down quarter the as pre-pandemic volumes, the segment, product In and which year, Ford products So in were up were

we and increase were see Crude volumes volumes ‘XX. of X%, quarter down down fourth slight Bakken. the volumes, versus a an with Ford condensate So, Sequential in approximately improvement. offset quarter Eagle X% did in the by reduction in were the a partially

pipeline percentage from Bakken In up at our at volumes, strip and options that our high our XX%. impacted egress utilization pipeline numbers look liquids only If and by out X%. segment, they were you remains gathering our alternative is Bakken business volumes Terminals you HH

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

versus and which pre-pandemic demand, Our is up also domestic rack up ‘XX business, serves nicely of versus consumer levels. QX

driven trade those are refinery by facilities, primarily ‘XX. hub runs, the are still dynamics New But Our Houston York, are more versus and of down international up levels. terminals QX also versus pre-pandemic blending and

our firm We all XX sailing business, currently tanker green in contracts. shoots marine with some have seen under vessels

prior X% was down our X%, due hedges XX% average fourth X% and ‘XX. bulk side versus prices when up periods volumes benefit we were quarter bulk the in On down the are of the were down the by and volumes COX weighted we place COX increased of our see were crude increasing In put On volumes price, didn’t in were X%. that on NGL segment, volumes price by driven and prices coal lower. volumes crude to

benefit NGL However, our volumes. from on prices we and higher did COX

COX price better were crude budget, budget, budget, versus budget. the For price year and our NGL and better better volumes than price were than than volumes was and

year ‘XX have relative for started volumes segment year our to the COX above expectations good a our So, COX and plan. our

to winter attributable budget. all Uri. As most the approximately billion better had EBITDA to our outperformance $X winter or to was that due EBITDA storm attributable to the said, and billion of We of year. outperformance DCF we Steve with it very ended our on due better respect storm to $X.X nice was than a And

out the projects will pipe for it I that impact that with to DCF. sustaining year EBITDA strip year and we of do million that, storm the on we David turn If and $XX the you And over roughly CapEx, the you both impacts ended during strip Michels. to plan in decided out replacement

Alright. Thanks, Kim.

share, per dividend declared and XXXX of XXXX. that’s $X.XX declared XXXX, X% which we So dividends for full the brings for fourth the a declaring year from for $X.XX are up to us of dividends quarter

which of sell billion sales purchase During or commodities. XXXX. businesses increased the Revenue billion, gross we of where XXXX. million. prices, excludes $XXX $X.X sales from was due net million, in up and X% We generated with up was X% revenue $XXX quarter of higher million, commodity $X.X – income, adjusted our the EPS the to quarter margin also which of Adjusted up income year. the of was was and in $XXX KMI year generated cost fourth items, last fourth $X.XX to we up last largely up of quarter, less from certain up cost line from That’s net

natural EPNG contract products and favorable activity. to impacts. our due our sale we by expirations PHP, NGPL refined where up have up by and volume from because to loan park Moving had XXXX, versus performance usage from segment offset contributions gas of of segment lower segment Products partially and on FEP our interest was partial was and and to price QX Stagecoach driven lower contributions due

and COX lower an savings we a well by lower was due gain higher segment terminals prices more business achieved the as Jones oil charges as were corporate to COX NGL interest down on tanker to in by equity were pandemic. oil Act an as the XXXX. G&A from driven in weakness COX plan. favorable XXXX down, in and volumes above by due were and volumes, offset larger cost than Our was the benefit of impact costs and activity sale driven

terminals was JV due was from in was last versus to gas primarily the Ruby capital year lower the our lower it increase, the natural has and expecting DD&A higher Our is products fourth that of higher pipeline. sustaining of pushed And contributions much in that vast of were a year. year spend into fairly the – was from we the early in large the and but later majority quarter

that billion quarter we capital, million For higher per mostly share sustaining versus the mentioned. replacement down roughly total and sustaining project the to capital. that’s that Kim due year’s pipe $XX $X.XXX is $XX due of $X.XX DCF the full The on million year $X.XX last is or versus plan of to are and

XXXX. down in billion for Removing of balance end the year X.Xx, the with that would debt the we from of On X.Xx, with sheet, ratio EBITDA be the a line contribution debt ended with XXXX year to which to adjusted of is at $XX.X at non-recurring X.Xx end the year. EBITDA, net net the ratio Uri budget

$XXX it of declined million the $XXX spent quarter, for or net change Our declined XXXX. we We from $XXX the debt paid billion reconcile quarter million $X.XXX in quarter. and growth majority To out and the generated change and million in from CapEx, spent third the the million $XX million JV in dividends. the of end working DCF. we for acquisitions had $XXX We of and capital explains the source a that contributions

For We and on year, $X.X CapEx explains had capital $X.XXX spent of million in Stagecoach that debt from We $XXX net completes received majority we We billion. DCF. And and $XXX for the Kinetrex of approximately spent out generated of we contributions. I’ll the the on $X.XXX reduction in million million, that the billion the We and review, billion growth and million proceeds it dividends acquisitions. Steve. paid the $XXX $XXX a turn back working year. to NGPL interest financial And use the of sale. JV

And that doing as it for up operator, questions, would and you courtesy as now. on been David. will line and on Thanks, remind just a we come everybody we if the open back I’ll have for years Alright.

As that you’ve and to one questions the back ask we back all courtesy around you and will your to callers, queue, come limit one follow-up. we if got you. get But questions, to more in a the

it open with So let’s for that, questions. operator, up

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

Your open, sir. is line

Hi, good afternoon.

afternoon. Good

Just Mexico a gas towards they off couple on analysis take, be could. if In points a expected the want more questions which Permian, actually swing. for we are to with pipeline gas takeaway, start need our could that of to mid-XXXX absorbing depends and

likely need or what be you just come to for newbuild do thoughts have a see here you to have the labor to gas move pipe and as oil where wondering more make input far costs sense could the first. or your a from conversion So as point new that steel, to more

give Just point? at you this and it how two wondering, take options, shakes between think out the

are we’re Okay. I’ll as we weigh early as the as frames well. ask on late But Good Tom hearing to this we’re as that to, the to dates early in and customers XXXX. question talking from time talking Martin that shippers or

we’re actually so to not hearing something XXXX. is late get now XXXX there until from Now time or then get – but done, also

different to starting our will that think really be it newbuild successful assumption clear, pipes, going that done pipe, sure we environment be very etcetera. taking get I make to need etcetera, we’ve and very a at is we’re permitting shown But as the always, additional it disciplined, those even contractual look close be difficult an coverage, to circumstances. ability which I will build getting our under making we’re and good will

need don’t disciplined. pipe winning So of to third sake be win the it. we for just We will the

difficulty pipe The say, out prudent that certainly there do happen, but amount Jeremy, takeaway. contracted, that’s the a existing work is the it not can’t a our fair while economic lot of it that’s conversion, do least fully on and it’s is excess maybe terms. in at of of We of there perception. There arrangements wouldn’t shipper to with there, will I

here. of it’s weigh it kind think, capacity. while a newbuild But so in Tom And tilts toward, possibility, we

working those more think, to the is next I pretty gas and you the as conjunction the I had complexity made a we going the think side that in mean has step Steve. opportunities. newbuild pre-pipe you, arrangements the certainly likely with managing tough, agree conversations I with I I about the pipe. be of oil equation still conversions But think of said, just around

to of going build time there need volumes, incremental greenfield is to. some small another but alluded to think market I opportunities think are I pockets expansion the in absorb that you frame clearly pipeline the significant

Got it.

point. So a newbuild even at this more it inflation, with seems conversion likely than like

or would thinking that. of year? your pipeline the on That’s this are if the you you to a for through other cases but wanted talk lot of high well. us you imagine guidance it outcomes about guess, I be as – just kind Analyst just how have shifting across feeds helpful. I at those detail for is then if a gas segment seems there, there like can level, And there year. a at juncture? wondering into rate the abounds And It number I on wondering upcoming this as of Day So of, touch could gas very provide gears thoughts great just any might

on, A a we on cost, accommodated rate or of are – about adequately we’ve to Two in on have going things as them and where are example, joint our pipeline. number outlook. studies for to. are of that talking file an revenue you think of have We obligations, discussions Yes. existing we the alluded I’m couple venture There where case. them

yet, and cost deep so we’ve while El due as affected. But CIG we’re NFGT, no adequately year on that’s the And here we set and that’s early final it. with are revenue there. kind And on was we’ve the combining that pipes our our and stages. underway are That’s the XX.X% working customers with pipe outcomes a and discussions with good I for still into on But of own together. think are file settlement. Transfer revenue we then of customers that cost have a Paso, got then WIC late have filed But we XX-XX very think – are shippers. accommodated process, that operator study So NGPL Energy of last settlement engaged study the us. They

queue. the in Thanks. back get I’ll helpful. That’s

you. Thank

Thank you.

with Company. next Tudor, Holt Colton & Our Bean question Pickering, from comes

open. is line Your

the love component. on would allocation. I capital just balance on follow-up there Good sheet Appreciate earlier to afternoon. thoughts the

like caps but below looks undershoot also trimming at We of the something this lower. We’ve looking it existing had seen Xx. broader the have midstream group of large target You many year. you’ll now it the X.Xx,

can you you us appropriate about cause financial shift leverage any that update that the to So, on KMI for you factors how might and think mark?

you well. I’ll discuss as Sure. and David start Michels,

we believe So is that appropriate. X.X still the

If you that the with reservation function and long-haul BBB assets storage fees a cash of transmission than flat. composition significant you the we we some pipe composition flows, into a look detail, our underpinning of rate And little plus of at When our I very will contracts hedged, those like. cash where long-term our more we and business plus this under rate, really profile for assets are flows, take-or-pay that’s I fixed fee-based we the the at the of go and look and a into think, have, cash mean flows. attractive better

we It David, that’s so to under else as And think the have appropriate. capacity anything little to alluded. you that, year nice X.Xx this a But you at is add? that wanted

Yes.

that at addition our meaningfully a we it covered, we may if well. a reduction Colton, in a as In just but that lower if leverage we what the capital, of change of to plays lower, we to were now, cost you to our of that right capital cost target don’t the level, – look were in to longer term current see achieve meaningful our were That don’t see regularly if we lower into Steve, level. to future, or in markets, lower in result as

mind. right the Steve’s think in to are ones keep I points So

business many cash our comfortable credit contracted diversification, mix, given are predictable. scale, We’re that factors, flows

as it. level. do term longer leverage We’re we underneath Steve some comfortable see cushion mentioned, having value with and some But that

Got back gas. on detail. maybe it. natural Appreciate just And that

service own to attract you KMI or through able something or be surcharges, to On marketing may is supply whether right volumes in the that strategy, monetize a that’s its view you similar? system that helping tariff the as something aggregation RSG

market a Yes. We that is attracted the think to. it’s increasingly product

have with We deals several done responsibly these gas. sourced of

our set have paper We on sourced pooling responsibly to filed system FERC up for points at the some to people gas. with ship

in we’ve low – our lowering a value-added in is a it know service. an you And working decades value work But here not we you’re is emissions methane now terms since emissions think It we’re that we what methane so really think. low add over We and much that keep it is. that a be think And our form. methane given customers. gas that see the I I of seeing wants been as pricing. really in focus value But the the is on of on emissions our to we’ve attractive there tell done term, the to proposition – customers add this. longer and could us lot over all that it really market ‘XXs, don’t

trend expect Tom, role and is I we’re and that grow add? in to the time continue so a this beginning you to a participate wanted it. at have And to think to see of over to anything

I No, the of what doing Steve, mean a we’re covered looking do here, on TGP. we this I opportunities we – to believe think the do of will expand and is you well. kind or trend for do beginning it be filing to to proposing

for We other on opportunities as expand will assets look to that our well.

people and a operate. gotten lot of to questions and have concerns exactly how it’s going about We

we with as up that so on on shippers trying come board as gets with possible people our working an to it. many be with And that approach will

early we in So, through, to but kind of it in – expect go stages. we’re are we

the for Thanks time.

you. Thank

Jean Salisbury from Ann Our comes with Bernstein. question next

Your open. line is

kind quarter on reflate the the obviously Permian third quarter, pipe last gas the past of and kind of came queue? in over or kind see So you will two? for of Do year Hi. utilization next your the your pipe pipes new that’s trough the the during which

and want weather with had people GCX depending But on our operating Tom, go to been have they We’ve pretty generally, the variances have. that capacity, close gas to PHP some right? and where

Yes. correct. That’s

of some pay like take ones the or I think that perhaps on. actually were fully other you meant on I more

Yes. Yes.

serve in-line Permian system, we’ve some Permian, [indiscernible], our some on on process volume because EPNG we on and an we following We egress did also on pipeline see that our accident electronic doing So the as in that as our NGPL of year. inspection we the now. of are additional to XXXX And on activity out also the put line reduction of had EPNG. the reduce earlier out in Line

will going it’s months a capacity. that ultimately so to market does the few restore pipeline we safely that And to but service be and for out want

I trough, if that but be downturn, to think place So looking what I concern will use don’t we if have you’re I know able little I’d that’s at term a you’re the seeing. that. probably

right. stay All gas to then this not topic. is E&Ps kind the are That Permian makes in obviously XXXX around. committed And last kind In Permian to of lot gas sense. on in flaring the that when the we just a flaring There of increasing hearing of we’re takeaway. turn Bakken, of time out

You that lot in hear a if solution true, getting as feels see a Permian gas more little but kind of well, place XXXX. a for of it bit like you’d E&Ps hustle that the were from around

could So that me, are is some not? kind just are I just determined of if was but flare it you wondering for square some not like

Yes.

not in the that are I Jean, have I is changed to increasing gas, not one there is interested if there People since XXXX, from pressure elect are – and things even do increasing it. pressure you is two flaring think otherwise might regulator that. So to, think there and

it it greater – I degree but And primarily inside acceptable. mean, less what far Not far these and fully of on was scrutiny just But you ever both also scrutiny acceptable. companies from regulators. so is that know now flaring in

stand-alone it gas, people some to acceptable in in thing, the like absence flare was place of for looking And less important takeaway is The too, right? it to the the that just are a almost was alternative. And second the XXXX. thing gas as even get and oil an we’re to changed, willing an put commodity out it’s valuable that’s

are is a that this for valuable I to shareholders. it people their home find want away going I in to for take a monetize think and and think And gas. pipeline

in commodity tolerance also we’ve So flaring was that the in the value change a the for flared. previously and of change a seen

very Great. That’s Thank helpful. you.

you. Thank

from next comes question from Our Research. Keith Wolfe Stanley

open. Your line is

the XXXX $X.X few the think what And is spending I amount a might to you on in to I higher, you how Hi, Is CapEx, billion it backlog RNG incremental good that might of Any years. guess over billion business expected than on the projects a of little that added particularly fair afternoon. the compared start focused I’m a wanted to be color this and since fair think, be? on $X.X year? last quarter. money growth I

detail And will but necessarily next will, already you for in subsequent when gas. have that more what has we get market and again, that was periods. the we expectation G&P ‘XX, not million this CapEx have I on $X.X for backlog, some week, over we all was do as and give Yes. Keith, billion think $XXX our to of will but but strong need volumes XXXX for additional some And grown natural gotten there be also

that budget. ask in until off pull next some that, you gas additional you Now to details to natural have the in But get placeholder I’ll our we is for week. opportunities put – potential yes, we we when And do RNG natural gas. see dollars beyond

thanks. Great,

pipeline? soonest on the you don’t as today new And update you hearing potential think beat from appetite a dead then an of give for just type a new sorry said, you but to I you’re I a XX-year contracts pipeline. now? what’s you potential you new And could Permian the think horse Can on, moved pipeline complete of guess, if on producers forward gas

last I’ll ask take the to one. first you cover one the and I’d Tom,

will talk do that a to kind In reasonable of in-service. Tom, this a as result or plus But about. And expect I long-term reasonable terms just to little you a months, XX months – for is of FID uncertainty that to the think XX the take it’s took long time appetite and of think And permitting contracts? the so about takeaway maybe longer I want frame to timing, from think PHP like. the

of I road. believes think another And minimum overall, it’s the down the be there even a project I that may pipe the the XX at understands years a to support needed Yes. and mean understands the market market scale. I think

that market think I that year it. perspective the the I the of likely I of, think And think sense think there that so I but infrastructure kind whether be whole. the in makes more taste to market enjoy they I needed a to a of understands that value think can’t to kind I as is speak given And XX makes term, terminal sense. longer I But from mean,

very again, about will this we be, as think as here we keep project. expect, And risk-adjusted returns on you focused

Thank you.

Thank you.

question Our Spiro from Credit with comes Dounis next Suisse.

is line open. Your

Year. New Happy Hi.

and Permian tied is just on somewhat some downturn a room hearing last back so, for and lot we we breathing really years look gas the basins First pipelines. are on in natural fundamentals I guess Appalachia. at Haynesville gas question created questions or of the into the if associated X these of

some some is as We evidence seeing are right? But right, seen have just again, forward, some a what far? these by moving in of growth going the of risk the that as guess little we we time you And is associated think here could that basins like seems It line We of evidenced look prospects are comments time pretty associated call is keeps here. on forward, basins curious, up hearing strong and seen I a in so Permian have growth sort we recovery a as about Pass. in that bit. these progress gas-directed gas back, gas the for

disciplined where the producers Yes. which of is about where Really, I are back been gathering we have I have Haynesville, on getting we will Haynesville. course, – assets. the think focus into

and max. kind got I if good are and to a to we back meaning that at capacity always think room in give precisely but dry a capital-efficient you that’s plays there, run of system have ground, out will, are, already the the throughput they gas Bcf the to very between relatively that’s the investments on they – we have associated a keep track additional and How and gas, system take of. add day X to that dynamic always still

are in LNG coming I at think looking we early XXXX. online new here facilities two

good job developers saw of out are contract. those LNG been been we those energy We doing proposition have and a – markets getting XX% year-over-year the world facilities still records. to on U.S. new – doing Kim a under attractive setting value that is volumes. those those have getting very mentioned LNG

is the else pulling want So, add? gas side we see gas. dry both associated to of anything demand Tom, on and hard picture that still you

online. And last think pulling is I the a really the discipline, how Mexico. a changes I I additional from from I two other of in timing export that’s community you are the the mean I is the market in Steve, is that, think producer we also, kind as that growth time it. volumes biggest capital think key as in is then do associated think major the on LNG gas saw items covered those well come of these determinant this factor that

Got Thanks it. Thanks Steve. Tom.

think are phrase release, used that thinking that how you uses are question, you share press a I just said cash alterative you I I I curious are But to for commentary come on cash how us of when I it looking December. Second you that invest this sense. noticed of in repurchases. the which a know you flow at? about how your available want you yield about you the I highest for think excess remind for just back that was attractive $XXX could deploy to don’t outside it? used buybacks. to million ranking think opportunities think opportunistic you in metric trigger cash. makes phrase And and in Is point well. And as maybe

And December there so buybacks? here, just and curious, you against hate since weren’t weighing are to nitpick [Technical Difficulty] how but before that those

worked change, language capacity as about repurchases. including think a but it. always opportunities, think that’s I us. we attractive have recall I share mean for it we to don’t this about And how that’s available I No. still thought No,

and we other on we them at at basis. repurchases look share return risk-adjusted and opportunities, at In how terms look of a look

we And so terminal the at dividends make look of there expansion off is number based decision terms of a on table. variations the But – that what there are value assuming a are we a in there. multiple We taking assumption then a is obviously the basis. value, no look and we at look that last we considerations at risk-adjusted and terminal on

well, the a in what’s is this here, permitting stable is the what lot risk a the solid, existing And you going looking investment what things producing are taking single-shot the you sort that at to the an smaller that, like, share your When diversified on are, of looking shares. count share of available are you the shares is sure, here, denominator cost and cash down as of in shares a to leaving out flows be and project, obviously, value are a so group to at for and outstanding repurchase, taking you risk terminal of purchasing company. opposed

– to returns. on we and it – discussion try obviously, is to and weighing a on disciplined But some that. is forth forth get there back we so back you there how based in way and And do

week. you Steve. Got the color, forward Thanks Look next it. seeing to guys for

you. Thank

Our [ph] Barclays. next Mark with from comes question Sollecito

open. line Your is

Hi, good afternoon.

I what in running Stagecoach. the the I I ‘XX ahead as on as just have budget, integration what’s talked But look know have your was out? model. about further So, there. synergies you you little you mentioned comment start upside of far could wondering, that to on if versus assets a wanted as been factored wondering commercial about of think might as we be you some the

Yes.

and to more continue to fully road, control better. still what would some for guidance. commercially. the maybe come. see and do more. assets will we able So, at the transition a fully the room And have ‘XX model really of we Tom? assumed we are us to there there. slightly there be XXXX leaves of had in I commercial we realistically the operationally, it. think our been point, little we That’s that of pointing that that little I actually But model. on bit a ongoing And do We integrated baked things integrated what part in able especially down our out this above do to have we think is find We bit acquisition mean

I and integration not our with only think there. some portfolio, you anticipated very asset gone synergies Steve business with well. I but covered a mean, TGP The No, we it’s the well, as well, think I

come think I green I And as shoots more. forward. more think are seeing we for go we to

gas a color wondering ago, Permian on a the your I takeaway would was the potential Rockies And latest you outlook. Appreciate similar thoughts that discussion some on Bakken your know partners if the pipes. share the I takeaway then with earlier years solution on picture. gas working you couple of are Great. to of could there. utilize some

wondering today. just where So, stands that

Tom?

We will earlier that Nothing continue And are to progress to I that the think really opportunity. in opportunity. still this new still to report working we try stages. time. It’s at

the time. I appreciate

you. Thank

Our Lapides next from with comes Sachs. question Goldman Michael

Your line is open.

Hi guys. for my taking Thank question. you

you the what Just impacts this and curious, into Omicron on a appeared were, latter it. trying really portion you period a screen? entering products obviously, How little of your of When refined can the refined just cadence was little think plays some during seasonality Omicron October when bit volumes in to in and to the not of the relative products look versus of the the January the kind bit about at into maybe kind quarter. quarter radar quarter expectations volumes and talk really

of that you ask and of will I talk the Dax, Right. businesses. from perspective your each to about John then

Dax. first, go You

to only, quarter compare look above. said. impact. prior I were Yes. for huge But these one one not the year-to-date. say of I year, X% that above the of at fourth think data where the salient were were not we if as December a you thing above, Kim mean we the year you pieces most We the XX% would I XX% – were compared if probably in prior

So, was we exited saw it positive the some momentum. year, pretty – we as

So, little little downside we saw positive. jet fuel, a it bit maybe was on saw a – but we combined, more – bit a pretty little bit

downside. meaningful We So, we the exit. that’s year didn’t saw the way really see a

Okay. And John?

up impact. volumes. saw rack meaningful were No December, very we strong XX.X%. We QX, Sure.

only So, got are our of January, have X% points, coming of weeks a a on up data volumes basis. couple year-over-year but we into Midwest

Jefferson only up Omicron up budget, of so we Northeast than seeing in are X% the weakness impact. we our Our snowstorms but Rack to we Houston net-net, are year-over-year. Street with the is X%, Midwest is down Down a has more had have I which but bad that Truck that facilities, on more X%. think in The are to two the slightly and Northeast, do the in in

Got guys. it. Much week’s look information. next Thank forward appreciated, you, to and

you. Thank

Our next with Brian UBS. comes question Reynolds from

line is open. Your

square and and trying Good am away thanks of question. taking to line commentary. I pipe for Hi. these some time just comments nat-gas my evening everyone Permian

see gas the that in slowing to there ‘XX, growth flaring does natural tightness? is appetite public is from of could a simply scenario there there XX-month Just or through is year-end in build get for potentially wondering that if a limited value this flaring time, Thanks. this a period the more versus at imply we in Permian private

you Yes. that? Tom, talk about do want to

quickly Yes. mean a to I could are brought I think as be project into there new limitations how service.

the producers more desire think I than volumes the a to may end it of based to economics. minimize up I mind mean development of But carefully with their on manage So, factor will the that being they flaring. be in

on system you across something as KMI’s about Permian talk nat-gas look well? expand could also just as the the RSG And how a follow-up, Thanks. just that that the and supply you expand if could Thanks. Great. aggregation you that’s if pooling curious system, to pipes into

don’t why that? Yes, you Tom, talk to

Yes.

traction think and on go the again, next other that give a get will of as I that on pipelines based lot of for concept. I we to service especially guidance So, mean, I type to TGP, clearly, especially, will pursue us we the up. think market, deploy the the market domestic But asking is LNG export same catch and the market this where

forward. as opportunities one candidates pipes we those we consider – and would how that as of And first to view use natural that sort go opportunities use will But off, this of blueprint how forward. I on it quickly would would be goes sort additional going takes the as serve so how case that depending a the and I think we think export be additional first be it we sort of well would

have Great. taking for day. my for Thanks and That’s a it me. great question

Thank you.

Our next Citi. question Schneider comes with from Timm

Your line open. is

can very or much challenging with of kind how it Yes. one not the players in Good balance driven level right? a maybe challenging of question, needle the you largest CapEx, for you of kind allocation. rewarded been maybe that or been here kind do return right be the am buyback a that have the here, Morgan energy maybe getting What but capital midstream has of Obviously, cycle largest land four at buckets, have M&A, thing but question I dividend, outlays, of for kind threading and stocks larger buybacks. even respect on now it spend place, I money afternoon. Quick for kind narrative of the you guess the not higher as to has along been have sheet, doesn’t to is chain of down that. CapEx an think longer Kinder value CapEx future? the how capital for you of type that type and to short But others, matter, for could about cycle maybe position immediate for are

good Yes, question.

the look times in we is do repeated been it to to try been there right the going we backlog way be most have we times, and shareholders. sheet we sure for have valuable the So, order record balance at this. do etcetera. a want I And it that’s think of strong. want again share we to be want see to of mean our see that is again consistent to and is see times operations one. kind people build, a What broken dividend that when people principled about there and build how Make repurchase, on been when have have when

have and the form there that of add we to of that the risk billion cost through above And have you projects been commentary The of those. firm was building to billion to I end the that $X talked a been lower And We footprint kind that $X and of the existing anyway, then we of cash, of returns footprint. shareholders sanction that’s on are make give our excess us repurchases. well off that you go at are returns low return capital. weighted to look about. nice kind towards then to tilting dividend your share smaller well our covered in gave that with there sure gotten the more we that existing we value average our have the of projects But

entered to question and with your and you investors something on adds what you firm attractive real-life example, we value dealing the term, looking example really at service last point for how are is how over there more to that at that very needed to from a question and We make a renewables going that, produce of have understand that our year that growth do here no again, we in do is have a there that sight. of the be line think in we disciplined an the that they look will Now into maybe we have I it’s how at about assets in that. are a for of time, But the to while our sure are looked have long going we to very, longer return available we renewable been, got good the sector. that

had which shovel-ready We Instead, under of with three building already the am we hockey on that in are in platform to projects and it EPC looking example an based were good not projection. acquisition referring at business is contract stick existing Kinetrex some a the contract I place.

of this something have line the that. see X multiple, that we example sight to bringing year of to defined And a comfortable really so, that and years a attractive look, very are it bringing it before our or on going at road felt is into our nice you looking to our really turn to down we Board but bringing this it a a be investors, saying, and is investors how we

businesses. and able attractive I be as our we going the we are reasonable we have approach and pile great. how And a these, messaging shown this it, things. to And not about we we want And about be done think solar consistent lot a don’t in we have going say, to to just even to investors these been about is that’s for will returns so That’s enter traditionally way example, you to I not, think we in. how whole way at we though we have think our looking we really to are think to demonstrate know

amount I are primary to Steve the flow objective this good this is that what would really cash enormous of of and stewards just said. be we add team Really, to generating. our Board of management

so what science, we about capital. the in we not thing And this good where all are important single things but most probably an allocate day. art, decisions weigh wrestle we it’s every a of these to believe making disciplined, with That’s

had. I all you. I Alright. That’s Thank appreciate it.

this am questions you. no further Thank in the showing time. at queue I

Well, much evening. a you. thank very have Thank all good you and

That today’s does conclude conference.

thank this joining. at You for may disconnect you and time