Kinder Morgan (KMI) 17 Jan 242023 Q4 Earnings call transcript

Welcome to the quarterly earnings conference call. [Operator Instructions] I would like to inform all parties that today's conference is being recorded.

If you have any objections, you may disconnect at this time. I would now like to turn the conference over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan. you. Thank

begin. may You

Sheila. you, Thank

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

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

outlook As growth healthy share. EBITDA, projecting look our we at XXXX, we are DCF very for EPS per and in financial

real are Morgan, CapEx as primarily tailwinds always through expansion our investor is line. 'XX be for in and While Gas that our and expanding assets Kim at company you of delivering management Natural week. team appears strategy segment it in a the will to and taking detail great headwinds our budget conference there Kinder acquisitions through benefits next the the as bottom sizable our

outlook extensive to of which delivers repeating won't on you is grow gas our to this natural leading outline the natural exports tried In in XX% to LNG that my most remarks all years, I opportunities Mexico. on and the To of quarters, experts growth driven obvious the about nation's the the details throughput. tremendous coming our and supporting that expect relief to gas growth by be system, last these I've the calls over already but demand and primarily energy few exports over of we production call,

opportunities this than selective of expansion. and enormous usually expansion quickly the Gulf Coast, from where benefit permitting we system, these Thankfully, elsewhere. are our Through concentrated of most construction can more and along moves extension

a with conclude me of bit humor. Let

comparing that it XXXX, high-tech [ like Someone's I'd at race to [ [indiscernible] high-tech. of Tordis who moving of that ] would with think in ] to true, That's the you ] represented that And recently ] were said little the over looking then Tordis Kim. faster. probably our in is the by we to And to [ I'll in the compared remind turn that that, won a end. hare a I [ like growth fable companies, but

few Thanks, Tom turn details. give points Rich. make the to then I'll a overall and it and to you over David

be slightly can about are ended There on it budget, and more several about DCF than lower attributed on commodity prices. but all We to X% it's of X% different XXXX EBITDA. pieces, share moving per below

Just This -- roughly before assets Nextera market. demand our we Gulf these Mexico closed serving year-end, $X.X Coast asset fit the billion South existing and the Texas into system, Texas acquisition. nicely

be than done expected. get little a are transaction able more excited quickly to We we to that

contribute expect Texas expected of December in We've we 'XX year growth said, really unit Looking with incorporate last Rich to forward nice the to every released early incremental preliminary as the business to we guidance XXXX, South over budget updated earnings. acquisition.

growth As share in per now result, XXXX per in budget versus a final earnings our growth XX% share. projects XXXX DCF X% and

with which was budget. WTI final preliminary during consistent per the Our versus in budget for curve budget Henry of Hub forward unchanged natural and $X.XX our are We gas assumptions $XX the annual the barrel commodity assumed process.

their the our potential While final to change guidance lower, did over current update not in are we prices year. given prices

modest our commodity sensitivities, relatively commodity over would XXXX still we prices, expect However, strong given growth our even based on current exposure. at

barrel per grow and For share example, $XX X%. DCF at at share grow of and XX% Henry price $X.XX, 'XX per earnings would would versus per Hub a at WTI of

put $XXX versus confident at quarter, in the added the end to billion Despite fourth projects $X $X to in year quarter, for the During million service at high few approximately the still of last CapEx the we billion. our we're billion of to which backlog, next decline and the $XXX per ability spend years. currently range stands million $X discretionary

the to exports market Coast, confidence to Arizona natural XXXX, between supply by and some growth as is supported XX% Texas supply through projects, the exports, and demand. and gas driven demand. multiple exports exports by expansion egress markets, Louisiana Permian We're to well as industrial for our incremental Coast, LNG of from from now storage of significant in looking to expected Our size the and Coast in Mexico roughly at Southeast supply LNG power to incremental industrial bring Texas Mexico and expansion West and them the both the

XXXX. We're strong and XXXX as exit in a position move into we

We're by nice strongest the decade. nice the in that than growth XXXX, EBITDA expansion gas greater growth underpinned has in XX% leading natural is been is projecting which about sheet market, of KMI's business, is balance Our it and a opportunities. XX% for to

to capital to our return significant investors repurchase. continue through opportunistic share will dividends We and

set our give opportunity our our I'll Tom it And questions. conference, in week annual answer 'XX we to Next future turn quarter. the your budget performance for you to at will and much investor on industry and detail over that, all review with details more fundamentals the

distribution X% X.X quarter Gas with offset the and deliveries to volumes increased or EP&G's power unit. LNG local Kim. to demand driven These increased partially [ the turn feed Thanks, companies. by Line increased the for primarily XXXX day increases versus fourth Natural the quarter of demand. ] XXXX, decreased dekatherms Transport gas and business were per million Texas from Intrastate Starting by service

compared up XX%. which gathering grew Gathering were quarter Our XX%, to volumes and up in quarter XX% XX% 'XX, Eagle the compared volumes XXXX. up Ford volumes, were QX natural gas Haynesville by volumes Bakken fourth of the were driven XX% which volumes, up to

XX% gathering below year, slightly at volumes nicely over For up just and XXXX XXXX the our plan. are full

rates many is We market. demand contracts, and instances, assets, longer-term natural for project U.S. in see continue to in of high and growing higher opportunities our utilization increased a driving gas which

our increase up by the segment, slightly volumes. diesel volumes year. Pipeline flat product jet quarter by driven for fourth comparable were in the an were about of of reduction X% XXXX, versus quarter quarter In in fuel Products volumes refined slight the last partially a offset Gasoline for

earlier to to a we're slowing XX,XXX continue QX, We above expecting from California. our RD January. QX The ramp volumes pipeline in XXX projects service a currently a year volumes a in have Hub day in and from renewable and considerable diesel grown into day pipeline in in we this day placed well serving the see XX,XXX

take-or-pay As projects contracts with we facilities. stated largely underpin associated are Hub previously, with our terminal these RD

paid we So of our get do flow. revenue, if even those most volumes not

on collect However, when additional as pipeline, our tariff flow those RD barrels well. we the volumes actually in

were the favorable volumes by X% double quarter condensate fundamentals Bakken. and aged XXXX quarter transportation Crude up versus driven wellhead volumes from fourth the in and higher Highland

our liquids lease remains business high Terminals segment, In at capacity our XX%.

our versus in York Ship Excluding inspections, ]. tanks required Utilization Harbor out at Houston and fourth hubs capacity are of strengthened the our service New approximately the [ quarter of in for XXXX. leased key quarter Channel XX%

those levels. leasing all-time We near rate markets in increases remains continue record to see and nice

exercised. Our leased Jones XXX% are are Act likely through tankers XXXX, assuming options

and quarter in primarily XXXX bulk Grain ash from the offset from volumes X% our on coke tonnage, fourth were by minimal and financial aggregate volumes On side, overall soda results. pet volumes. the have grain metals, up partially decreases impact

Excluding X%. grain, bulk volumes were up

production lower by prices decreased production from and experienced our for quarter. volumes the NGL, plan COX on year segment on was quarter lower overall COX oil and and COX fourth The Overall this fourth last versus but oil quarter the XXXX. NGLs above X%

favorable better-than-expected from and volume largely SACROC strong projects at XXXX due over weaknesses plan that, helps oil turn the our to relative that volumes the offset February of to Michels. well base to outage net volumes year, have as performance the we experienced. I'll ] [ exceeded the SACROC. some For David it at price post as With plan, slightly Yates These

Tom. you, Thank

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

the shares shareholders. over repurchases We continued per value repurchase price $XX.XX good of fourth with bringing opportunistic total program million a average to in our for an year-to-date quarter, creating our XX at share, share our

We repurchased shares debt of $XXX with to Texas the and midstream net and that XXXX adjusted million of billion ended includes EBITDA our assets year-end. closing of the $X.X X.Xx, South before of acquisition

contribution X.Xx leverage included would from those a year Our we EBITDA adjusted assets. acquired been have full if had

saw Terminals XXXX just of that underperformance slightly and prices. the be We commodity lower-than-budgeted both below our for better-than-budgeted ended by Natural full more performance in businesses. year and can all explained than We Gas budget

a down $XXX Both was XXXX. quarterly $XXX of quarter from price performance, bit that Cost generated we were a for to in sales million. at those $X the of due more the of revenues reduction which billion down a year-over-year. were than commodity decline declines fourth of million of As

we offsetting price cost by is to our which margin why are fluctuations, impacted revenue you'll and sales price. in primarily As our is enter Texas Intrastate and sales purchase recall, positions our generally exposed business of but not

our driven floating fourth expected of $XXX rates generated million, KMI interest higher the swaps. to net XXXX impacting income down attributable expense quarter versus Interest rate short-term XX% by interest XXXX. from was as of We

was EPS from Our $X.XX XXXX. $X.XX, down

repurchased million due XX shares. by the X% reduced count share average Our shares or to

Natural up. fourth assets across contractual and For to new region. segment Terminals segments down Act well tank performance, XXXX rates the the Gas due was versus diesel assets mostly of and up were to our lease to improved Products Terminals segment winter rate Pipeline as existing Product business, higher projects on due were was COX The as from Jones XXXX. weather renewable segments in quarter in Northeast versus our our rates improved business rates assets. The including XXXX. on up was escalations down Natural due multiple contributions expansion Gas segment and mild

DCF down COX lower oil And $X.XX was Our and due to COX per from volumes. was share $X.XX, year. down last segment

last we expense, Excluding interest the year. favorable were

year-end year net at For that is. increase year-end we $XX.X with ended which XXXX the $XXX billion of million, sheet, debt, an was balance the from of

from we total reconciliation billion spent the for as close the a million $XXX repurchased to year-to-date the in spent in year net dividends, $X.X sustaining of South cash we So net spent we flow which million the debt gets generated is that $X.X change of debt and $XXX we and growth, operations, stock billion for full JVs, on XXXX we CapEx increase of Texas acquisition, includes in Midstream billion $X.X $X.X billion of high-level year. follows: the contributions to our you

guidance we As for the our Kim Texas December the that from we updated acquisition budget XXXX South mentioned, released.

with and XXXX both the on XX%, with for pleased and As our was be nice share of result a EPS With Investor said, annual accretive by EBITDA per in Kim. year-end providing as that, DCF of the DCF at from those the growth improvement acquisition quite growth to growth you and can behind per in very X.Xx We're EPS all we'll share. XXXX. our leverage see, today. X% to the meeting projected details week X back Day Rich And ratio

up until X And question and Sheila, if we those we'd open will the to additional to we get back questions, now request have limit and questions. everyone. stay it you X queue, would follow-up. here that you asking to for please if questions, like get please in We it

first Our with JPMorgan. Jeremy from [Operator come Instructions] Tonet question will

should a snap the in that Maybe cold Yuri, we cold starting been as off that time And probably of here, seeing just and but means, opportunities increased start and of we've by notable environment could to the it lot with in any granted general? It's opportunities country it's KMI wanted on off you any and well. Texas midstream shed led wondering about in I how magnitude you or last we saw not to recent are for order color this with snap the of the just if a across if here. kind seen same weather. think

opportunities right, weather, incremental for Jeremy. Yes, the I cold lead you're to does Sure, us. mean

do we right have assumptions. nervous do about magnitude the order progress When weather. think budget, the of also the with we achieving of those to not bit that on we achieving cold cold little weather And budget coming a that weather. our we I With given for warmer-than-expected good this budget as think some some cold our You're year, I is same this into on made Yuri. front, way were

So with today. I'm happy very the progress

sizable And there. to repurchases as talked Kinder M&A. back helpful Got come some it. capital past. That's And just year in wanted allocation, about we then this maybe we've also -- the execute to and seen on

walk it leverage X room buybacks, is and could we sheet us any here, wondering balance Just I pace go-forward if up through, to in today in of still there? that certain a is mind. guess, targets and could there X given up. wondering your thoughts is on or those the basis those how leverage as opportunities where Clearly, stack on specific Kinder you how a relates And cap should about just kind there think other stack

mean, I X have been on sheet. X-ish that we we balance years. the the times I We've flexibility last No. around think like for our

I think end were we 'XX, X.X. were year, we X.X. Last at of at

acquisition, adjusted X.X we're it Now, at for the will but at you EBITDA X.X. if the and

gives And That acquisitions. that repurchases. us flexibility to share do gives so flexibility do to us

the and acquisition, million, in balance we you the And do place heard were as we started we David ended so year, last sheet year. to a did We essentially same repurchase. billion $XXX say, made that able our $X.X share

So to our that it's metric. -- when attractive especially doing dilutive we're not debt when acquisitions,

And X.Xx. the acquisition acquired we so about at Nextera

so debt that debt we're it And relative dilutive. metrics, even our funded, though to XXX% wasn't

where think to gives balance that's, what I of look forward quite would well. and going flexibility, multiple XXXX. do So able as our to on during we frankly, execute sheet transactions And us opportunistic were lots we is,

Next Reynolds hear we with from will Brian UBS.

in maybe could segment, expected just just great we you the a in us storage. segment Kinder's given of year-over-year the contracted the Maybe marketing nat volatility just would in off this saw and maybe relates winter be But gas and amount kind Natural it specifically in Previously, that of it 'XX the decline 'XX. gas the by to kind on Jeremy the on as little guidance just ahead we view significant storms at But positioning gas it the performance exposure as Gas looking driven start refresh but if some price mostly business. of strategic quarterly XQ it bit, to on some point. earnings year-over-year forward touched given natural decline and of

basis Just think this kind we should last go-forward years. about of kind Kinder business maybe of versus curious marketing of how side a the the over X on

transmission let's interstate Well, the start side. on

to going a when flowing. going to more balancing services. so you need They're storm, need going more you're you are more storage have molecules And winter usage have to have more people because services,

order services their they and winter our storms And times customers is happens so they to what around we're serve of customers. providing ancillary that a lot these need to want in

business on the And side those interstate so incremental and you around see in some services.

our actually side, our On And storage the in intrastate there, some we as then -- we do name. well. hold have storage customers own

time So we stores that name. do of time make our amount money hold in own we from small to on the

need. we that of customers a also that significant it. of make in customers not services the It's of overall little our intrastate name. already hold need, haven't transport We we capacity on the same we also money types that have bit where can some then interstate but own And hedged the

on our come pull rates. above at premium those will services system and So over they their rights

see that margin. margin that weather we of have some incremental leads on those to so things are the the when you And types winter

Appreciate follow-up back a egress looking the LNG be going appear gas short seem Maybe to the decade. natural forward, we Permian in the gas Great. in online [ be to that. with half the to as aguadeltane natural coming demand forward market of ] --

talk including for and/or just potential there new expansion, about if are GCX the a term? what updates could of kind just longer potential curious So you new build projects, the

about those then ask of to I'll talk can I Sure. and CFO both add.

Permian be a is there we yes, for the of think half further egress the in going need back so And decade. to

that. generally being positioned -- think we that's we time. multiple for with built been we've consistent what have to They've We -- got close with saying. successfully. pipelines the very well are been We've I think on

offer We also competitors we that the Permian system can't. and our downstream a with can egress have on that and storage of interconnect pipeline, an think can I existing services some shippers so we other services

interested in very we're project approach attractive we the a be but it's that will to and returns make we sure it our think I shareholders. So how in, disciplined are

capacity, GCX obviously, the GCX, We've of in did with to existing if much if expansion on around of our dynamics system conversations participated to But mean, further the I it the of there think, market continued compression quicker. GCX, not build shippers could expansion, some get -- we and GCX. there X, that quite of with of be the yet. because same I we an on expansions some new existing systems. also have downstream

that's also we're so as that this. looking And part at something of

capacity. When the half decade, hearing -- probably a but Just just our 'XX, back customers we're get of say is think for late so there, from need we I'll you what sense. 'XX. We up the about little the follow early

here. in we're clearly, environment competitive So a

So to really, I to be a here actioned incremental line. won't through when quarters couple of meet just of X, demand you it something is And details, time in is think the probably that's to X the next needs but able pipe question the go or on. about lot coming be that

will Our Bernstein. come Ann Salisbury next question with from Jean

quarter end I guess, volumes, acreage wondering about lot talk a Haynesville It was of if you've couple there up last just whether you been like trajectory was a quarter. in it's a and your kind but your production around Haynesville of could the fourth or decline been seems from fourth what towards in I lot of month quite There's quarter reports decline months. in your for different of seeing third the the on and has X,

Yes.

think were, this, and was So Tom say over the Haynesville quarter-over-quarter, if you look at XX% didn't our up they Haynesville but -- in volumes, I XX%.

volumes. increase continued to in we've Haynesville our So see

[indiscernible]. Dave so And

wonderful our prime -- positioned X so our done in is Tier the -- with team acreage. job a We're acreage. acreage look, mean I Yes. has

for wave. the there LNG Our is planning upcoming largest customer

producers of smaller of think the that's seen while pull demand I the we coming everyone getting is so ready for way. have And our back, kind upcoming some

think pullback us. in helped And capacity. of physical so me, if to We've of I terms up with keep had has we're you trying a demand ask the the some bit -- little

on that hopefully, this customers to so the of year, take. our capacity and they're And to when rest and we'll get ready ready primed be support

over a couple pretty ride. of We've pretty the volumes doubled much it's years. our So good last

that see out helpful. that That's out a infrastructure do Bakken your then this risk basin as year? Great. gas year limit of you this follow-up, of the And might any growth

look, -- think we this think past is I our looking no, We Express. bringing We our coming we in that hub -- Bakken wave Cheyenne into day the Bakken service the Well, of just service think already this we're and last X had it at quarter. had the -- put We flowing talked II. the I about X I got we I out XX,XXX we've incremental a have full Phase was [ in Phase November. ] which first out Bakken. gas a into call That of and projects

don't So phase we gas especially the out. be anymore, factor will think second once the we limiting get

shape we're in good there. pretty think I

next will come Our with Goldman Mackay John Sachs. question from

how we frame year? in EBITDA think up? you simplistic I'm pretty change I X.X a that But were about to STX? answer. have those just ] guidance from of [ increase going other there for X.XX guiding ] on straightforward any a assets on one. of the there can this the you on going versus what might Is kind all [ to start do is XXXX terms in maybe that increase And that just

The ], X.X [ published, we [ it [ to up but rounded was ]. X.X it slightly when X.X below ]

between XXXX X were for Nextera the EBITDA then EBITDA we consistent X.XX the -- the NextEra what those the so with And is is on ], numbers and expecting. and difference only [ on

bounce Talk a much of where was RNG then That is trending gears. that? that by kind shifting 'XX budget 'XX? just quarter of year? the Kind maybe about And little the contributions back bit. ended in up for how And clear of in then. the much softness could versus driven How

not quarter say them as running the in mean now. would fourth consistently contribution we X small. run. to They're plants relatively I was RNG do service have the we from like I as Yes. would the And in plants

I over able recently think arms get may we're months management. And that's we'll what so our around think on We run on we we waste this, to couple now. I will get into once that think to we be That focused operations really of very get from XXXX, think running And these take consistently. consistently. but took a we

will hear from Tristan Next, with you Richardson Scotiabank.

what's And could driving Just question projects 'XX talk there or low-hanging assets, 'XX? on 'XX obvious the maybe fruit of sort are a to as sort those integration similar of near-term of the about the Could growth further in type with growth STX. even you that of a respect and then little drive versus of beyond? in part of integration bit type

Sure.

there and 'XX expansion online came late is online late project an 'XX, expansion between -- and project came year. contracted So last that -- very

longer-term we think that 'XX X But significant And that it. and that in coming that really locked so from talked some lot pipes. commercial between occurred the And by those by and by as don't X.X growth. driven but to can a was small between 'XX savings, we X with out. that we to incremental to 'XX some see X about is synergies anything the business EBITDA a some down and respect bring cost we With really incremental a being 'XX, X.Xx as bought and that amount customer contracts. multiple We driving years

of high leverage. I the can you the terms mean on color, maybe previous following Appreciate something on comfortable it Kim. around see in a you're high bit be end Where sizable talk leverage? of about you comfortable where of whether end you question And sort should M&A come then of see yourself organic little where across. the or sort a just

Yes.

target there's change So no our X.Xx, is leverage that. and in

cushion said Xx credit that's appropriate underpinned at our quality. our the value and/or if think it last are risk run, the that of X given as on we arise see opportunities And if earlier, opportunity contracts and size, years. we've some stability execute feel plenty having so that I gives some And so attractive. assets, the of they scope of we around sort capacity we in And us good take-or-pay of for with to customer I like by of end the contracts found

our seen I hole don't burning you've go earlier, Now I those as mean debt-to-EBITDA a isn't impact. assets, our today. to million us, We not not this multiple, pocket. much to talked shares, and this in out acquire purchased spend Nextera have we $XXX much money impact

things but there a And strategic our so to set attractive we've able we got impacts has and if been we've lot economics shareholders. without huge of good do find these is a capacity a lot of that for that something

Our next question Dingmann Truist. will come Neal with from

This ] question. is had I for [ X Jake clarification Neal. Neosho

earlier. Just guess, nat about expectation that has maybe kind that is we The some been Or tone hearing kind guys I the been of what has talking some of the you've that late were I changed customers, XXXX, time 'XX/'XX, were changed or you the all, what from customers that referring guess, [indiscernible] there. -- at to, from gas last X ago? Has there? quarter for quarters were

Yes. I changed think don't much. it's

expectation. been think I it's the

market probably a that in on that had solution a is I more need place, is more there we the do it's the ensure the little there's calls. both maybe match producing of urgent side as than together market sense the a think perfect to standpoint last in couple timing. think probably a LNG side, I But the from and I -- terms coming of of

what through that on you The California. guess, elaborating guys capacity there? And projects could to look X have that? that of you it. here, for subsequent extent time potential in me. guess, can, in that I Got phases, level see in just timing to release, that ramping then I And you guys follow-up guess, guess, the just to the mind RD expand I like expect Sure. capacity frame? I anchored guys note have what going you Do you would Sure. we

got X XX,XXX just is I Carson would And capacity. Between what of XXX,XXX Terminal, Yes. This now. we've Angeles the be hubs, barrels our Good the we've then a barrels in the about [ [indiscernible]. storage double kind Dax. day we've just easily we XX,XXX Harbor, question. of that, ] end year, day a well by Los storage in as got will of got Harbor, ] under I the of both rack Los throughput as could barrels fully capacity. Angeles think the [ that of [indiscernible] In reiterate

as hubs, get the the well. what we would roughly we've that us did, consistent call around XXX. rate would off in somewhat of we that double California, to supplied can On State If with those up be rate of XX, historically it, a throughput

a XXX,XXX uses barrels about day California Now diesel. of

there. think which just convert I now, think theoretically, converted we've facility so could XXX% -- through first And that renewable we above which no we've Sacramento even outside [ because ] going I our got see we'll to Bradshaw of is diesel, hydrocarbon diesel

the continuously customers by we'll ramp-up do refineries, to. mean -- watching it customers be market. and X these do of engaged with I all our will asked our determined we'll California but and So that, we be the whether whatever Northern

Bank from comes [ question next with Our of ] Neel Mitra America.

seeing the the gas just acquisition Ford volume you're in was I the for Eagle using with dynamics that you're ratios and maybe wondering the there activity? and assumptions on what STX side GOR

Yes.

we're Neil the [ with think, week. at ], all budget respect the to I next go going XXXX conference assumptions, of to through those

the and it at through can you if conference next hold we we'll 'XX detail. week budget when address So the in make sure we investor your go questions

of ratio you trending the if proper Xx? towards, Fair kind I in leverage equal, given X.Xx leverage make and under base? the you Or else then acquisition, you 'XX. Okay. guess, staying see were your asking question do asset an Do All don't in way. same still different And leverage maybe a lowering you X.Xx is enough. ratio the see volume

Yes.

of I scope given flow. our and at I X.Xx, cash stability as our think the and said we're size earlier, of comfortable assets

in And so some we the that a having years. see being cushion operating been value with and for we've of said, couple cushion last

ask one to going is since the to the Analyst I go X additional Can X Day. first

you what GCX downstream that the can by within explain expansion, said maybe you meant you assets, When support that comment? can

This [ Sital ]. is

think the GCX. is ability what talking to expand we was one, about I have -- what Kim

intrastate that I think carry market volumes market there's and into evolve, the corridor. probably some to industrial as do those downstream power expansions opportunity to an

what that's think Kim I was referring to.

And I our we the and add This think have to to just expand system. extend ability tremendous demonstrates just something.

think extensive we'll realize the repeatedly expand think And we of every upper $X out target, that we're the in opportunity flows end of why said opportunities this but to they're to a the more we'll exactly reason there range time brings I take people Texas, But hard necessarily expansion make we the put backlog, it's that's can CapEx into more that's through from billion Kim it the gas kind be of how range. a at Louisiana. for further has system, gas our into things downstream. be more big that at is as don't and and system. to we end They the And $X that advantage of seeing. it upper billion, on

Next, with we from Chen will hear Barclays. Theresa

much? longer-term with to over the CapEx acquisition. In a quick just years, is get associated that and multiple order the STX to how X the and multiple related on any follow-up to First, guidance X.Xx there

material. a be bit, may little but it's There not

state of refineries in supply bid for opportunities time there? the in the terminals ample state as an like backdrop, diesel waterborne side this areas, be state as Got produced convert. other on given is if incremental there in-state for imports, California, the product may gasoline looks renewable it. there your And into well are short being with gasoline diesel into it from With the the as state over entering

Yes.

pipelines. on are pad end supplied think they'll the [ of at refiners our the imported, fiber move think I day, whether ] barrels are I the the by

as think long our Bay the demand the comes whether move it that the in, there, as demand as California areas the in inland I way is across well is it's think there as our in and will produced it and under assets. areas I a or find LA the demand racks,

TPH Everen next Zack with Our comes Company. from & question Van

for make [indiscernible] pipeline, more a is [ it's a ] looking Just guys following back market up on to sense or the pipe? are towards, more you new whether there time Houston, that Permian or that Carthage the would

look, environment very it's them So we're that like in But all. a competitive I we in. as said,

locations, there's -- them all. probably a like them ultimately, like to we're I I'll we'd right? think said, say. need really, all. And not going trying all that's I'm so We're in get I both sure

but if that Eastern Gulf So pipe corridor, question, across that South Texas. to Coast get answered get a of the pipe needs your I there's a to Louisiana to needs probably there's ultimately to I the probably not think coast serve kind sure and to Louisiana

that. ultimately, And customer contracts the will drive

That's right.

out. market. or sense. your of U.S. And Okay. will for to just That some M&A? M&A. assets know out Curious it all of step mostly you And peers turning guys if then have one for on focused on rule don't assets the would year the I U.S. this makes you assets ever

to get. opportunity, will what would we at we that in I U.S. hard that's mean say. have returns the risk-adjusted to is that look I we of get I types like it's the would of general, what found would say, the outside

in generally, with And so And lower repatriating those depending market got because returns of been issues international different associated but you've most talking the you're which markets. on cash. about, have returns, tax

things sense I with what pass happens, saying existing whether has So think I'm at opportunities. are assets. up we and doubt looking that -- those but I that our could whether at make We don't is there and look evaluating that synergies will

leave So that. I'll at it just

Barclays. Mateer comes question from next Our Harry with

the First disclosing potential one with of past the quarters, range, effects you've the material. [indiscernible] for been high some EPA's [ couple the in your from of financial end XX-Q ] fairly

process if range? lower of an for eye wondering update in being one or end keep towards you on and us stand can we the whether higher effect can terms of that out the things the ultimate in you Just where

some the a in Every prevailed. we think is heavily requested It's I'll flawed repeat has state legitimately is stuff past. said that their And stay we've the of a and it was I flawed challenged rule that plans and on a state challenged. has mean, this process.

Supreme February. hearing eighth in sixth, federal circuit very Court we think with is later respect So and requested And that has Supreme has sign, and fifth, the the what this that courts. Court the happen in to ninth to will plan, the has a been appealed stayed a positive fourth,

stayed KMI there that and now only are not leaves -- states where right X is where us rule So where is is the KMI impacted.

impacts think much should we that so potential and And that the smaller, discussed The there in that I we so XX-K I well. are in the impact as disclosed say.

no time. at are We questions this further showing

you, Sheila. Thank

Have it. Appreciate you. Thank a good day.

That does you participating. conclude conference. for today's Thank

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