Kinder Morgan (KMI) 17 Jul 242024 Q2 Earnings call transcript

Welcome to the quarterly earnings conference call. [Operator Instructions] Today's call is also being recorded.

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

begin. may You

Sue. Thank you,

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

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

from this for to with that increased power increase investor need and Now perspective I've key I centers. issues driven in on the these energy by And driver expected last AI new for that on by call, consensus and another affect I'd of the there the demand data electric has significant talked previously LNG natural of astounding electricity on quarter, about growth discussion extensive calls, segment. with our demand the demand. midstream resulting growth our in the decade, gas developing the been that natural as will export end discussed facilities. Since you share like dramatically topic large part gas

supply anecdotal the to gets that regulators jaw-dropping. and the need the satisfied. sure particularly it it months been will from power users last in the And actual of evidence, anecdotal a has who the make that over the who and from believer evidence few when firm I'm have utilities comes

just you give examples. a few me Let

demand peak gigawatts of evidence the vigorous XX% estimate from will in gigawatts. This by from Other That's XXXX's of XXX new now largest year's state a XXXX. power the is scenario. also increase power XXX need estimate the for Texas, of about a market power XX ERCOT growth XXXX. predicts U.S., supports gigawatts up generation In last anecdotal

one years, the the alone being tech expected with XXX is large that several undertaken in need next data demand. over companies report example, centers consistent by to For expansions to the indicates chasing service AI Amazon other add

electricity averaged around demand XX has Annual over the growth years last X.X%.

last an projection range seen the a one industry growth predict now to of we've XX days, experts amazing annual of from XXXX until X.X% X.X%. Within at

the role and So play. demand will a will gas question how satisfied becomes how much be natural of that

on a recently natural Batteries increase nuclear and facilities. help would to developers nuclear only timely their renewables XX/X achieving renewables Journal want for out, likely electric by usage of prefer build some, is needed Street relying the for some but But gas use power. on their Many dedicated to reliance diverted will power replace are The lines which permit centers transmission data Wall and the basis. as difficult impossible, and will reliability growth to on new in now almost on tech to limited by they pointed is the companies for need rely power,

That transmission up loan the an was of evidence Gas I a best state Obama, Daily some In Again, end XX quote, of think, And just generating infrastructure today's extend result gigawatts this we Ernest program. in which additional and the But the "There's build some has low-cost in huge battery gas-fired loans are summed increased said, governor Perhaps projecting key. generators predicted gas-fired he Secretary capacity," There's President gas storage. electricity to would Energy it quote. need massively impediment, renewables. a official new is anecdotal that demand when clear program I that the low-cost XX ERCOT natural natural the is already Texas, evidence is facilities. suggested an oversubscription, for facilities under expanding could so for in inability Texas. oversubscribed, Moniz, to

example of reflected developing, world how years. of this Southeastern add S&P Gas United quoted to industry we next in utilities significant XXX the gas that that as players the new view see U.S. Global the are States reports an over announcing today. new As plants plan the in insights, project And Daily is several in

will peg natural increased we gas gas to midstream makes power, and significant the demand it even demand industry. overall this hard natural in believe for of it's be for result for an more all While estimate of electric as our a and future need exact growth for the robust

it to I'll over with that, Kim. turn And

our driven Thanks, quarter. refined Adjusted EPS a quarter to our Okay. increased our approved give in ended the overall David year all turn by end to to few and $X.XXXX segment it and I'll by increased our expect X.Xx Natural and of continue those a solid X significant we at we shareholders. We share, points, And then Tom you business and growth dividend to budget. and details. value I'll Rich. over Today, Board products debt-to-EBITDA, make We Gas the segments. roughly X%. had return on were per the to a X%. EBITDA by

as exports grow through. XX% took and gas as doubling to to Overall, with than of up export demand an gas gas in increase have backing natural Now long-term XX XXXX Bcf the stronger projects you just for and almost the with turn from Mexico. a year more about data expected a now course centers that natural over demand minute. between power in Rich the well WoodMac fundamentals this by and of talk gotten The LNG incremental

day projecting decrease in Bcf power However, a they a are demand. X.X

renewables. be power-related up case back growth coal As believe and shore associated Rich's conversions to reserve margins new and not AI in comments with data anticipated do we indicated, simply that will gas the given up capacity and demand the centers,

demand. of and in we Bcf number the demand, but said incremental the of the gas currently all fruition, that day a and expect day. that between day potential utilities X.X we're we're XXX update grow XX natural a to seeing related and since not Bcf come other years. At XXXX It's our early as gas took we're power of that products as well center in process, we Kinder that Rich gas gives in XX would AI. well plants estimates with IRPs. of subsidizing, start between are natural levels have the Certainly, be seen published you commercial with Bcf X and demand. the evaluating to activity these belief a X Utility have over reflect the power to through the demand releases a day supports of Bcf Texas center is of you includes of having press but next sense growth U.S. Bcf Most day gigawatts, will associated that opportunities projection data over now incremental their excess gas X.X and IRPs should of of new discussions a Let's a XXXX X.X XX and opportunities. demand, I on several Morgan, XX as contemplating

signed distribution demand a Bcf to by quarter. help the X.X Mainly up markets. Not of increase proposed by South the this meet power company growing $X.X capacity and completion, our this demand project in Upon this billion Southeastern backlog result billion the to will project, $X.X increased local X as during billion that's we're a activity is of Expansion System included the that Bcf day. approximately its X capacity SNG for open on $X season designed in its successful seeing to

continue In to the of that. past, thought and we demand gas have South to indicated us add backlog, the natural for project System an X allow that we to is the would example

project to backlog. multiple We on our current is to about The continue to substantial backlog beyond see opportunities X.Xx. our add this

we Court. some from also very nice quarter, the the decisions During saw Supreme

to On will we the plan, out the Plan do Neighbor a on the merits. be not Plan, few It together that but few and still compliance. that presidential likely play Neighbor implemented least There's likely or the be lot to beyond at a the stayed think revised to prevail form. the could finding in years put And here, current Good before a is got I we've a court its Good election. new plan be interim, a in are years for

on the for gave not also of help our that, when last mitigate regulatory the regulatory we've the I'll is performance to you law the positive. with couple to doctrine, overturning clear, some is agencies deference barrage decisions over over turn will business Tom The seen give details Chevron these quarter. the which a to years. And it of Together,

by Haynesville respectively. compared volumes were second Kim. gas Gas the gathering Eagle with XXXX. XX% up volumes, Natural in quarter Ford business quarter increased quarter and volumes the up were X%, slightly the Thanks, the the unit. driven Natural of XX% versus XXXX, Starting of to quarter second Transport which and in

Given our XXXX gathering gas still LNG gathering slight meet below from now demand we in volumes plan but average the in price be X% temporary, growth higher XXXX. We but volumes the production pullback X% view current environment, as will volumes necessary over to expect about to expected XXXX.

natural see to beyond. In the in were in refined incremental of X%. Crude our project quarter to flat XXXX opportunities condensate storage Products our XXXX. up between gas of volumes continue compared our Pipeline Gas we capabilities Natural segment, quarter and and growing network expand significant forward, Looking support capacity product and transportation were across second to markets Pipelines now, volumes the

refined expect product volumes about be our X% over slightly we year, plan XXXX. to full the but For below X%

support with project agreements, of into to our from and Harbor Utilization plans H Regarding the $XXX its service remaining anticipated Double in others the phase project high definitive service, to in natural Ship favorable liquids our is volumes capacity market system million supported key the including Houston hubs. Basin. In pipe to well XXXX and the remained York our Future key the New margins. Terminals approximately segment, incremental out of Basin quarter primarily business in could the liquid capacity due the crude crude producers the development River in remains to opportunities first to The Pipeline project and at gas strong, NGL service initial opportunities, of Powder convert capacity, leased XX%. very is by hubs Channel XXXX. be blend and provide phases providing with of at company Williston at oil

exercised. lower above And at Act XXX% remain lower the quarter lower at Jones market XX% through through and leased Our oil vessels' second volumes currently, experienced versus rates options leased COX XX%, X% XXXX. rates. The well at segment likely are quarter XXXX currently volumes production our the XXXX, are NGL COX contracted XX% assuming and volumes tankers in

For year, the and XXXX. below to be budget X% below XX% full volumes expect our we oil

and flip of optimized outlay decline COX take expertise, potential of Transition replace transactions segment Unit it sequestration that are many acquired transactions the Michels. transactions for group, to David potential Basin the leasehold a with an Energy existing recently million. customer an acres X and that, in COX space, to the capture turn through Permian attractive to sources our the field. that our segment net The in projects. In divested oil and Ship COX asset XX,XXX Ventures but with is barrels project our over During these fields day fields opportunities projects the The and in leased in continue Channel. emissions to its have These high of carbon impact to production and picking its our X,XXX a interest about pore Basin interest rates I'll $XX SACROC in develop, McElroy COX discussions advantage the producing fields Houston COX North undeveloped interest the directly up. With X quarter, X the level of network Permian currently new to activity time they portfolio take limited of utilize have flood of adjacent

Thanks, Tom.

So performance. the we items a before cover few quarterly

mentioned, per share, Kim our a share annualized, from X% $X.XX $X.XXXX declaring per up dividend As we're XXXX is dividend. of which

to budget first in from the Investor press biannual. as the disclosed normal. to annual early quarter publish plan presentation detailed As we're changing continue We'll Day our in release, our annual to

this our recognize preparation presented one for before thank quarterly release the Houston-based impacted meet many working going period. the by above of want holiday by challenges and business in colleagues reporting filing. to the missing X year already beat and our damage July I'd to not last with of Hurricane for beyond outages were and a I additionally, our our many and Beryl. tough you a get teams, and Also the at planners, have We involved performance. all to unit with legal to accountants, earnings analysis teams, our everyone regards power schedule. XX-Q the quarterly And close to during time we like

million last $X.XX For $XX the the quarter, we quarter generated revenue second up year. of from of billion,

cost X%. transportation $X and and We acquired so The contributions growth increased Terminals higher our Texas were greater gross asset. year-over-year saw our million, margin contributions of businesses. sales from Products our our Natural down Midstream gas drivers storage Our assets, contributions were natural and from services SFPP Gas, South from from by our main

X% Our due due the lower some down We in to due COX certain Midstream short-term excludes flat crude up up we volumes Texas X% year. $XXX last adjusted EPS higher is million. last oil to second to income QX year. business recovery KMI up was attributable XXXX. with South of of to $XXX year, generated produced to our quarter income of $X.XX, which expense was Interest from generated net part an due balance $X.XX, last debt in generated adjusted from million, net We XXXX. which timing unit of We mainly is versus basis, of of On oil items, of which the acquisition. EPS

Our shares or due average count our million XX share efforts share purchase to X% by reduced

Gap] [Audio

year. up X% from last

higher impacted least at both DCF lower sustaining part in due which quarter was to timing. second cash by are and taxes, Our of CapEx

for We and On last growth. X% full EPS expect be up so the with line EPS is year adjusted year. last cash a to year, is basis, be favorable X% good up taxes in from year-to-date sustaining for budget and capital the year, our to to full

net and a net of X.Xx second ratio, On quarter. $XX.X end adjusted we EBITDA which where quarter with billion sheet, with we consistent is debt to budgeted ended debt to our the balance

high-level net change. of from of a Our debt the the I'll $XXX has decreased that million beginning reconciliation provide year. And

and billion flow ventures. And We cash and from joint billion. the $X.X billion, spent million We've to sustaining $XXX about Kim. growth, contributions generated back our gets that the decrease of I'll We $X.X And CapEx that paid of close includes debt net capital, of operations uses you had year-to-date. $X.X other dividends to of to working of it we've million for including that, with in capital. year. And $XXX out turn

Okay.

it please. could for And on, if questions. now so open we'll Sue, come you up

with Our UBS. Instructions] [Operator question is first Gupta from Manav

went First went mean pretty just quick is backlog positive. a up good very a I multiple note, The question here. little. which up much. the also But

here. those just could the you if dynamics about So talk of X things

Sure. Okay.

by really one, driving also and that. backlog, as So are System X Double H South System $X.X the it's projects South That's the X I other the that said, we up It's billion. our share was that mentioned, of and is then as X. it

then with little a yes, it to the bit. increased respect And multiple,

reason so the give give to multiple returns on guys we we're to As we that be is can the of you you projects always say, these the you some that idea EBITDA. the getting that model able

these we specific our targeting and not is look the a multiple when it on at backlog multiple not -- a Now goal projects. we're getting specific of to ever

we're When internal at of rate looking we look an at return. these projects,

high our excess threshold is have well have for well, we And for project. we a risk And vary that of of well, that on in of then so pretty capital. And depending that. -- marginally a projects. around And our threshold threshold say, a threshold. and I'd our excess What in -- the of cost we

might to return connected still where much our and When a typically little it. But not And associated loop meeting pipeline multiple. something, that tend projects bit multiple to it's a higher to greenfield, have do or we're existing -- we so have thresholds. are they're having a have if with that we our infrastructure, those higher

the think these going of that very, little return still backlog a the because very is are -- these fact are I bit the despite so up very And on attractive projects. projects, multiple these

not My of coming quick They key are a center you we believe reliability than you. having companies. you conversations to data even you sentiment operators, Have has these data XX follow-up data operators, are here and were these from seen factor, a sources. you bigger to with change demand is, in where these or part months were with discussions gas talking agree centers, one ago? so talking at you XX a mentioned the point, When renewable the natural completely center become probably we only

Yes.

speed was One target and to is to market. is was two think reaction discussions started initial to are we this X probably their to renewables. -- But when yours similar we demand I Our going have perspective. from had see them, they're that the as key reliability, with things

And natural so key supplying data quarter, -- we energy last a to play, these role I reliability the of natural think centers. is given and but to believe, it Rich gas gas, going this in said

question next is Goldman Mackay from Our with Sachs. John

pick up little one, last a we'll that Maybe bit on surprisingly.

are a you're it the in curious interesting. little about guys to X of Is you but those you bit Would talking just of anything being right Is more be jurisdiction it Bcf in kind geographically. elsewhere power comment again, now. speed to market? demand that on FERC hear from you And would discussions a Texas? primarily Texas And So of of versus where on might portfolio? be can both terms of be discussion, that kind

guys is and supplement overall No, -- think Tom, X the Bcf power. -- here. But and I Sital the you this

up that's related reserve to of and of to coal AI, some it's backing related margins, renewables. some replacements, So just up shoring

in in I in So seeing Texas. Georgia, We're demand. board. in seeing We're in power of We're in it is it it's sort Arizona, some We're in increase the mean Arkansas. serve. it Desert across Kentucky. it Southwest. markets we seeing the all We're it seeing seeing almost

long of on how of could market time it on some maybe just ]. terms [ And those the of kind to in bring

to dependent much where going are be cited. very on It's these

an depends is it market. it a regulated it on is so market, unregulated And

the depending going location. just on market that's to So vary

And that. question. just second Appreciate

You some how could portfolio for release optimization overall maybe bit an over gas guys updated you're guess of I of on talked some on optimization little a I'd segment. kind the in There's pruning line just time. here. call the curious a thinking it, kind be view There's the about and swap. net in you asset I COX, guess about portfolio divesture

Okay.

divestiture natural gathering the during -- was not So year, but sure asset, that wasn't -- not earlier a quarter. this did we on a which have I'm gas, in

approach and that so was that wasn't And our just portfolio, to someone was it asset -- an had we core us.

And so the made sense. price

And so it. sold we

sale, opportunity for where X business, the floods. COX our had limited incremental fields that COX there On injecting we oil. X produce was is -- COX And is more to

COX And very property sold fields limited those And also so we some that McElroy, field think areas a had interest opportunity. in has a good And will North then most some which we adjacent a to we called flood SACROC great potential. that our at of flood prolific leasehold acquired opportunity. then is we be think acquired we that

next Keith Our Stanley question from with Research. is Wolfe

the the of it phased service South the project. all And for up or Wanted And project? coming is is construction? late to follow question. customer in assume regulatory line on just then it Is you approval, customer a sorry System -- multipart Or Can into XXXX SNG time start time? talk to Southern, project? it over the on this for here also base is supporting your fair partner, broader your to

Keith, a base. had is broad One, So We an Sital. this season. customer do open we have

FERC with targeted this plan competition, -- detail, to of 'XX. a time a clearly, into without summer always do then of in-service next we much late of filing, with regulatory is line, date and project XXXX, sometime scale there probably in-service a getting In too of terms an prefile

top I that's your view Did the on So question? line. answer probably XX,XXX-foot

come in you Or then XXXX? does Does say? -- the yes, all end time, And the is did. yes, contribution Yes. at phased in over you it it on as of just --

-- have trickling 'XX, volumes do in do year initial in we we the and phase after. So we have some have

Great. Okay.

the a Texas Texas today to power typical gas-fired Second gas-fired question, think the for next How say tie-in? I for So do the what share X gigawatts do Kinder wanted power loan on sort years. Just here? Texas can capital What power connecting mean system. thoughts of market touch for any on new opportunity about a have the to of the in type back to plants builds Intrastate opportunities and XX of you for plants. we over market plants? of it investment sort What's could plant program

and I XX%, have quote about don't take today, if we're in me probably So had this, Texas. on XX% to a share probably snapshot,

the a We -- and that vary and of be. going might it's connecting ultimate targeted the of really have think very low going little there actually involve depending to it's some connect, efficient, cost terms is where bit more in In quite capital unique capital. to it's I where terms opportunities opportunities do some location on are to

system to really It or they our lateral to capacity. like to it be requires how going gets are located opportunities are mainline and are -- to long then some be going how build need -- expansion there is to is where going on going to far a of be to that we existing how lateral some need and

means. Sital big the with what that's how is. depend So respect opportunity capital going to just to It's

is with Our question JPMorgan. Tonet next Jeremy from

the guess with on overall? to are any NGLs this pivot the back conversions the project project? -- at this other you are midstreamers wanted did Double with of say -- And I working H you Guernsey how out this point How here. on getting Just to

general this egress quite the and the on talked residue market NGL of basin to significantly. GORs to egress growing basin to about when and So you our I think a Belvieu. one, it it Mont being the calls about Conway is ago, the get both to And and are in opportunity We get we our goal The get rising. couple think market, broadly, side, see an desire side. on is

without to able leave Mont this, it because situation, that and structures Conway get here to in competitive complicated very getting we the just the a are markets. we are at so Belvieu into both And I'll

really crude. Sital the says NGLs the talking because and big we Yes. And GOR. increase gas the I'd When market in Jeremy. some He's of in say about growing, thing, growth don't other expect the the is

That's right.

it. Got

about highly market just talking And egress maybe pivoting gas is Okay. far as Permian natural competitive as concerned. when

updated the Just joint be even for provide brownfield could the or market getting to well with solution expansion, expanding potential you wondering thoughts different through market it GCX potential greenfield time. as at to the any a regards to a or same

you given market Permian looks evolving like gas vu over egress how that this wondering XXXX deja again. all see Just

Yes. have Look, We unfortunately, question, your for anything the this it's as prepared I good answer and time. is competitive GCX There don't in the discussions still pursuing question different We've project. firmed the to opportunity. a I -- been, sanction Still We on don't broader you a is Permian opportunity. said, aren't with space. have our -- customers up. egress

that are sorts on open consider to for what's front are structures the to basin. We willing and best all of

Our next Barclays. with Theresa question Chen is from

XXXX? line on tell Double once us of to how away follow expect be will And up highly I multi-year NGL to will the it or in be utilized line commitments? would Can the you the service? multi-quarter first there pipe a the in much H wanted capacity you to ramp questions. converted Or quarter potentially right be in

depend this So what capacity, hydraulic in that the this of is a they -- take our to. ultimately market going suppliers combinations terms of is and to on

the the the So a to scalable as we've both And is and Powder the going And commitment capacity Bakken the I X. think here it really ultimate customer. firm likely scale we takeaway that River. start on the is then depend is day got from project, will from

with question Spiro Dounis from next is Citi. Our

$X spending near about talk upper just end term. you've maybe the range. question, to sort spending longer capital talked that billion billion of Historically, $X of First about

seems that when there's you update. pretty For Rich contemplated at and statements Kim, I the opportunity sort it like set wasn't robust ahead that of us sort gave suggest combine if a outset, of to last maybe your

that So then still term? in curious referenced of if you're earlier, coming you track broader power projects you think SNG the $X billion demand about on long in to sort and on these larger like be

billion. Yes. $X just I'd could XXXX I be $X billion area anymore. is When got I about $X billion. say It $X.X billion. billion would like that say think it's be $X wouldn't just around we SNG, mean would $X a billion something around could We service. to an in you And say. in what say general

that's so capital that of construction. to X going just spending, math, you're it call And rough years be

most of 'XX. will capital So that in be and 'XX

that's so of outer filling out the And years CapEx. potential

billion. $X around So

Okay.

So And then... Got it a material from it. departure like sounds not before.

talking I'd Rich -- That's billion the that I the we're I projects are that are say today. backlog the stuff pursuing, right? day as the about, that that today, project Bcf said, not stuff and on that we're things X a pursuing in $X of

we on my Bcf part included SNG, point not of see day opportunity. the is beyond a to so opportunity And was of Bcf in X potential -- continue day X.X great a SNG. the the

number SNG of we'll to like come. to billion projects a think I that CapEx more confidence be So spending $X years out fill years continue for that in the outer and give us

it. Got

color. the that macro X or you forward, events of interest tailwinds know in with were look about some like year. your Can we as view bit the you but that is rate the that sort setting we're rise. I are sort on switching not sort later first? a year of as I is, helpful the That's of sort now guess what sure And it Okay. regulatory up then last here. of this seems cuts rates talk for got some gears factor And of one becoming of I'm

So maybe you just us. remind David, maybe could

tailwind you? XXXX? we is this think your does potential in for what And a exposure, floating like rate about look that As

date a is what XXXX is. year we've let I'll to experienced and the it potential today is the what And balance in below tailwind -- -- forward because Yes. curve of the is for XXXX

'XX. below floating rate you is exposure. So curve 'XX give an let our update But I'll on David

cuts if Yes, rate it Remember, we or we didn't be expected XXXX get bunch them. these cuts but actually not. We do additional We've floating to couple swaps on little a fair get rate the a -- years. could all in of it's well, we we'll of as amount in a exposure. down because last unfavorable have bit of rate been layer it debt intentionally see brought

come floating to And so from about $X.X about has rate billion our $X.X billion. exposure debt down

little the locked bit interest XXXX, seeing for that we've year. forward $X.X a next curve, the of favorable past practice take Additionally, billion rate of that rate curves interest forward of to we're some advantage in for to similar --

of think, a for rates. that coming XX% advantage rate us XXXX good cuts favorable I to about short-term The take at the So gives interest opportunity in rest any is it locked of we of to see market. that,

Michael is Blum from next Our with Wells Fargo. question

to seems sensitive, hyperscalers get the back wanted and higher power. willing It to like So to are I they're centers. much the pay to the secure data less discussion on PPAs price

you So into that pipeline some think than is quantify that? these you've any And returns do historically in potential of gas could earning way gotten higher there you to translate projects?

No, game. I early the we're think in

I you're judge market. I getting would hard be And guys to think their to from what say, the again, That's the they're PPAs. this going X hearing that's priorities point. are that's I at to reliability think when power -- what speed seeing. you're and on the

we these we're -- early our -- will be be we'll point, it's things to to think say get be exactly on these able hurdles return at some I these think going on I but meet projects I competition. And will that. think we are that generally, confident get what -- this So there'll to projects, too

wouldn't I any stretch. by so returns And expect get outrageous to us

-- of day. barrels a think, that more Double XX,XXX -- That sense. day so on pipe And was, oil makes one the capacity a believe then I H. barrels XX follow-up the Okay. just million capacity I

the that I'm kind wondering, just of So we capacity should similar? will NGL assume be

it depends on delivery. the I mean receiving

simple. I'll way. think real Just this just about it it make

it and pipe, If could be. you're beginning of pipe the the end the the at of at

middle just of I could the bringing the it mean be pipe in volumes, depends. you're it in If and more.

it And market. to get then to you got

fair. in then be well. as And mean, But so at it going coming yes, yes, I depends mean, going the pipe on the mean at as for various downstream as are itself, terminus, I points I to at But the out, Sital people well. think the matter downstream and H you're there coming I and may points, that's in if origin out Double points

Scotiabank. with Richardson question next Our from is Tristan

more new portfolio. new XXX with greater talk XXX here. there Can one opportunities spent noted the Historically, And with portfolio? to COX capital needs that flood you on the sort opportunities the about annually are assets. or just you've you Maybe of

of think the of you've XX-year curious in this the And a -- plan development deployment of in COX. then also in I million. past, changes Just kind noted context XXX how capital around

sort curious forward. the portfolio Just of going what kind looks of like new

Anthony. it's Tristan,

I mentioned a obviously assets. regards the think weren't capital are numbers material annual the on We expect lot the new There of the a -- wouldn't for COX. that assets. with divested you capital numbers to X change in opportunities any spending I

as Tom about think think that the that prove undeveloped said. there, be acreage we'll But SACROC we've that and And annual talking and I so become opportunity North excellent there's say the on Kim proving will McElroy, we out a first, got we're our that. part to of opportunity, opportunity. we'll out do more Once I think pilot we that have to numbers.

XX June to July. Can this below Lower the the maybe to you It late that refined driving on X% and products. like summer picked budget? in like about volumes season, then And have also seems your a you're what into start what's initial talk it just seeing contributing and later maybe perhaps seems up season but saw maybe

on total still I And decent the day reasonably mean, you we've the did day capacity. say saw quarter, capacity. a sorry, of the XX a We're We've our third hub -- would I diesel, renewable in on quarter diesel the in the as decent a West then got XX second capacity Coast, I renewable a in diesel. bit release. seen in we bit actually think below pickup fuel, flat. gasoline And primarily seen pickup a is a on renewable we've on of Yes. overall jet

on later As just year. flat that up. comes numbers additional year, pick probably had being that to slightly reasonably will prior this refinery we But respect in to there, with higher but gasoline our I think budget, below to continue we're the

Yes.

is one are I'd revenue, what the thing the some rather in moving volumes Price is is And the of we've component than longer-haul of barrels other. right? that generally shorter the say out seen other hauls. The the we're California on volumes

the from So good I we're think in shape products. standpoint, refined overall revenue an on

Mateer Barclays. is Our from Harry with next question

opportunity much at structure X, South opco we used think specifically, So Gas first you with have itself? that debt some Southern about JV financing to how nonrecourse there should Gas? be the is an Expansion funding of And how System entity for question for given Southern I guess the

question. good a it's Yes,

evaluating project of into of of But I think big so we build the to at been project opportunities. Because prefer level financing. of because the we're is pressure lot -- we it's it's options. our the amount our Generally going still course a all best parent puts on I get different But attractive. early forth. stages, to our and funding time evaluating fans of are we're service. forward. still capital -- we've don't evaluating really and these cost still arrangements, with It we're pipeline some fund time, to the never the JV

But be in they're fund order level at to entity so of likely we're looking fair a contributions to actively. opposed And it's as amount going that at itself. to equity the something that

where Energy Okay. right when in business? curious looking Transition potential and whether fit opportunities now And in in Ventures. you're growth I'm acquisition then might RNG at that second,

to But we've these in think I got have on more time, operating acquisition a that, just operate Yes. say plants have basis, that I get of the any can -- our I'll that we operating the get that think hopefully, at follow have around will point been plants and couple But half for has year. and at expected. this think until business of will, reevaluate existing And to of be things can opportunities. we Anthony we harder we've a are path We look, once result those that think of if on that, do we than the operations, consistent we down, fully will on I the And And this you that. we up. looking up significant second case sort that. hands would we to then consistently. as -- a stood

from Global Kedar is Seaport Sameer with question next Our Securities.

This is Sunil Sibal.

So you talk projects? durations starting bit behind off on those What a you the new projects that construct little X about those? of you could have contractual contract kind supporting announced,

contracts the project. then contract with And is -- underpinning Yes. take-or-pay that the also creditworthy System got that's we we've shippers. South Generally, on a Double XX-year have H X,

projects, how I done, So good-quality we've we consistent that mean, capital and got credit we've we sure make cash with good want our to flow how builds. other do that supporting are

year on little tracking you're the you little as you bit Then volumes bit talk are gathering I we basins, what cetera, as are et about far a at the a are of which Could expectations, tracking full think the below below start Understood. concerned. budget mentioned expecting year?

Yes.

is of the just so you know, think what relatively volumes this the that mean, we're are balance year I the first half with I assuming volumes the for year. flat of

assuming in the what big And half in basins ramp-up Pretty this not be big first Haynesville to and are Ford, be a saw the with X then are volumes we're year. Bakken. consistent going the second of terms So big we half. of -- going Eagle in the where in to we South

those, each more I think, the others. And so in Haynesville weakness, we've than in of little a in of probably seen a little bit the

a to Yes. the got which it's a Haynesville, saw of little prudent. pricing is But I we why bit in the react pullback. mean you producers

year year up. expect demand Brent as But ] next this the later that picks [ we to and

That's right.

And questions. at further are no this time, we showing

for good Thank have much right. evening. and very you All a listening,

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

time. You this may disconnect at