Kinder Morgan Inc at Barclays CEO Energy Power Conference Transcript

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

Question: Theresa Chen - Barclays - Analyst : Yes. No, that tees up my next question very well. Specific related to the SNG expansion, can you provide some color on how this came to fruition? And of course, there's been some scuttlebutt out there of whether this is going to go forward or not. Remind us, these are binding commitments. Is that's correct? And what should we look for as far as next steps, timeline, and key hurdles to watch for from here?

Question: Theresa Chen - Barclays - Analyst : Great. And then in terms of the estimates between the base case of 3 to 6 Bcf per day incremental natural gas demand by 2030 for data centers versus your upside of 10 Bcf per day, can you give us like a sense of what drives the delta between the two? And realistically, based on where your assets are situated already, what kind of market share can Kinder capture? 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 / 5:15PM, KMI.N - Kinder Morgan Inc at Barclays CEO Energy Power Conference

Question: Theresa Chen - Barclays - Analyst : Understood. And then maybe turning to the supply front, okay, so I would love to get your views on the supply picture in the near term as well as the medium to long term. And just given the expansive geographical reach of your natural gas assets, any color by region in which you're situated would be helpful as well.

Question: Theresa Chen - Barclays - Analyst : Great, which leads to my next question on Permian residue egress in particular. With the recent FID of Blackcomb, with that project moving forward, does that have any impact on the commercialization efforts for the GCX expansion as it stands today? And maybe just more broadly, if you can comment on why it seems that producers have taken longer than expected to sign up for commitments despite the steeply negative pricing that they're experiencing right now?

Question: Theresa Chen - Barclays - Analyst : That makes sense. And then against this volatile pricing backdrop for the outlook on natural gas prices, plus robust anticipated demand growth, how do you view the value of your natural gas storage assets, much of which are under market-based contracts, right? So do you see additional attractive opportunities for brownfield or greenfield storage projects within your footprint? And any commentary on the base assets as well?

Question: Theresa Chen - Barclays - Analyst : So everything you've said so far kind of points to just the need for additional capacity on various parts of natural gas infrastructure and beyond natural gas as well. There have been a number of regulatory developments, court rulings, and such that have impacted infrastructure projects more broadly. With the growth opportunity you see ahead of you, but coupled with this regulatory backdrop, what are your expectations on the permitting and regulatory front? And how do you see this process evolving election, post-election, and beyond?

Question: Theresa Chen - Barclays - Analyst : Got it. Maybe turning to the liquids pipeline assets within your product segment. I'd love to touch on the pending conversion of HH to NGL service in 2026, which should facilitate the flow of Bakken NGLs to fractionation markets in Conway Bellevue. So how does this project tie into your longer liquid strategy? And how do you think this will impact potential competitive dynamics within the Bakken and around the Powder River Basin?

Question: Theresa Chen - Barclays - Analyst : Great. And maybe now shifting to the renewable side of things. So you spent time and capital investing in the renewable fuel infrastructure as far as renewable diesel goes as well as the RNG assets that you have ramped up three out of the four. Can you give us an update on how all that is progressing? And maybe any updated timeline on the fourth plant coming into service on the RNG side?

Question: Theresa Chen - Barclays - Analyst : Very good. And finally, I'd love to get your sense or update on the capital allocation priorities from here. So can you tell us about, a, what do you see a steady-state run rate CapEx for the organization? And how do you plan to balance that growth and/or inorganic growth versus maintaining comfortable leverage and returning cash to shareholders?

Question: Theresa Chen - Barclays - Analyst : Wonderful. Well, thank you so much for the time and all the insights.