Air Products and Chemicals Inc at Jefferies Industrials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Laurence Alexander - Jefferies - Analyst : Let's start with hydrogen. And I'll promise not to spend all my time on this. But can you just start with around the world state of play in terms of project discussions and funding, where activity is accelerating and where activity is pausing?

Question: Laurence Alexander - Jefferies - Analyst : And then second, can you lay out your priorities between blue and green hydrogen, green ammonia, green methanol, all the different alternatives? And to what extent are you aiming to capture spreads when shortages occur?

Question: Laurence Alexander - Jefferies - Analyst : And then I guess you mentioned distribution a few times. How are you thinking about the related infrastructure investments in either distribution, pumps, pipelines, conversion stations? How much of the $15 billion-plus you'll be spending over the next cycle would be for those kinds of assets?

Question: Laurence Alexander - Jefferies - Analyst : And you spoke of like the offtake. So I have to ask about the Total arrangement. Can you give an update or clarify how much is locked in, what is variable on that agreement? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 12:05PM, APD.N - Air Products and Chemicals Inc at Jefferies Industrials Conference

Question: Laurence Alexander - Jefferies - Analyst : And then a very high-level question. If you look at across the projects you have in the current wave, do you earn more or less if oil goes to 100 rather than 50? And then if you think about 2030, 2035, do you earn more or less if electricity benchmark prices are $0.10 or $0.02 per kilowatt?

Question: Laurence Alexander - Jefferies - Analyst : As you look at over the next decade, does Air Products need to keep a CapEx split between renewables and conventional industrial gas projects? Or is the split that we see just going to be driven by market demand?

Question: Laurence Alexander - Jefferies - Analyst : And then two questions about the JV model, just to nail this down was to keep getting asked them. How -- first of all, in terms of leverage, how much leverage do you expect your JVs to carry?

Question: Laurence Alexander - Jefferies - Analyst : And then if you invest in a JV that's in your equity affiliate line and then they buy a plant from you, how does that flow through EBITDA and cash flow from operations as a sale and CapEx on the sale of plant?

Question: Laurence Alexander - Jefferies - Analyst : And can we do a quick around the world on how you see industrial demand trends? Any significant shifts in end market conditions over the last couple of months?

Question: Laurence Alexander - Jefferies - Analyst : And then I have to -- I guess, it's a good place to close. I ask about the CEO transition, which will be very big shoes to fill for whoever comes in. What do you see as the main themes or structural issues a new CEO will need to address? And what are the right skill sets to watch for to say it's a good fit for what Air Products needs at this point?