Kinder Morgan Inc Q1 2025 Earnings Call Summary

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

Question: Michael Blum - Wells Fargo Securities LLC - Analyst : Wanted to start talking about the potential additional gas pipeline investments that you are looking at with utilities and data centers. How would you characterize the pace of discussions with customers, I guess, since the last earnings call?

Question: Michael Blum - Wells Fargo Securities LLC - Analyst : That was really helpful. Maybe if I could just drill down on one particular area or region. Can you provide an update on any progress in Arizona regarding either an expansion of PNG or a greenfield project or just how you see that area developing. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 16, 2025 / 8:30PM, KMI.N - Q1 2025 Kinder Morgan Inc Earnings Call

Question: Jeremy Tonet - JPMorgan - Analyst : Maybe pick it up in Arizona, if we could, and the potential for expansion for the West. Just wondering, the docket that was opened in February, the natural gas infrastructure and storage docket that place chair opened. Are you expecting anything specific out of there that will inform us of the Par timing and sizing of expansion further west and just as you will give you further out, I think that the ECA 2 could be on the horizon, and we'll need to source gas as well. It seems like PNG would be in play there. So just wondering, those two dynamics, any thoughts you could share?

Question: Jeremy Tonet - JPMorgan - Analyst : Got it. That's very helpful there. And then just a higher-level macro question, if it could. We've seen WTI dip towards 60 and briefly below 60 here and concerns with regard to potential economic weakness ahead, as Rich talked about in the opening comments there. Just wondering, as far as your conversations with your producer customers, any change in tone there such as if WTI does step down into the 50s and stays there for a while and Bakken that of liquids-driven economics if you think that there could be changes in producer activity there and how that could impact KMI, although it's a smaller part of the business?

Question: Manav Gupta - UBS Securities LLC - Analyst : My question here is a little bit energy equities in general has started pricing in a little bit of a recession. You touch a lot of end markets, whether it's gas or refined products, even jet fuel in your system, are you seeing any early signs of recessionary demand or what we see in the market is the volatility, the underlying demand in your system is holding up pretty well.

Question: Manav Gupta - UBS Securities LLC - Analyst : My quick follow-up here is, can we get some more details about this new bridge project that you added to the backlog? And the reason I'm asking you is, last year, you announced the Mississippi Crossing project. And within one month, you ended up upsizing the project. what's the possibility of you upsizing this bridge project?

Question: John Mackay - Goldman Sachs - Analyst : I wanted to pull a couple of these together. I think on the last call, you kind of made the comment of saying, hey, we've done a lot of very big project announcements. Maybe the pace of those will slow. I think you showed today that you're still able to add a ton of small- to medium-sized ones to keep adding to that backlog. Is this -- not to put on the spot, was this an outsized kind of win? Or is this the kind of more regular way kind of backlog additions we could expect to see from here?

Question: John Mackay - Goldman Sachs - Analyst : Rich, I appreciate that. Maybe just one follow-up. Kim, you mentioned permitting really for reform earlier in the call. Just curious if you could give us kind of like latest state of play there? And then specifically, just on maybe related note, Bridge coming online in 2030, not outside the realm of normal kind of FERC time lines, but maybe if you can kind of tie that into your view on kind of how long it takes to get things permitted now and where that could maybe go if we get some relief.

Question: Theresa Chen - Barclays - Analyst : First, congratulations to Tom for his retirement and also congratulations to Dax and Mike were stepping into their new roles. I'd like to start by asking for an update on your strategy in the Bakken on the heels of Outrigger acquisition, coupled with the upcoming AH conversion to NGL. What are the next steps here for Kinder to capture more economic value in that value chain?

Question: Theresa Chen - Barclays - Analyst : Yes, or as much as you can at this point. On the liquid side of things, just looking towards the pending closures of refineries in California with another one announced this morning, how much volumetric exposure or EBITDA? Could this impact for your -- could this impact your California pipeline and terminal assets within the product segment? Unidentified Company Representative Yes. We don't think it will. I mean the announcement you saw today certainly is not the first announcement on a refinery closure. And it probably won't be the last one. But the key to the throughput on our pipelines is the demand at the end of our pipelines. And as long as the demand exists there as long as people in the interior California, Nevada and Arizona, are driving and flying, that demand will still be there. And we think that our pipelines are the safest and most economic way to get that product there. So the sources of supply may change, it may not be coming from the same refineries other refineries may make up four. You may have a waterborne barrels coming in either from Washington State or Asia, but we still think that the product has to get to the end markets and we're the best choice for it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 16, 2025 / 8:30PM, KMI.N - Q1 2025 Kinder Morgan Inc Earnings Call

Question: Neal Dingmann - Truist Securities - Analyst : My first question, folks is just on M&A specifically. It seems like given you all continue to be focused more on the natural gas demand megatrends, I'm just wondering, would you all consider selling down some energy transition assets to fund these gas initiatives?

Question: Neal Dingmann - Truist Securities - Analyst : No, that makes sense. And then, Kim, just -- something that just -- you talked about earlier, just you all mentioned in the prepared remarks, just the turbulent times. Is that -- I mean does that give you more, do you think opportunities to I don't know necessarily buy distressed assets, but it seems like there's still a lot of smaller deals out there. Does turbulent times like this provide maybe even more opportunities?

Question: Keith Stanley - Wolfe Research - Analyst : Wanted to start the statement in the release on pursuing substantial amount of additional LNG feed gas opportunities. Are you mainly competing to serve new under construction facilities? Or is that redundancy projects for existing LNG? And then relatedly, any update on commercial progress on expansion of Trident at some point?

Question: Keith Stanley - Wolfe Research - Analyst : Great. Second one, I just want to try again on the Double H conversion because it's kind of sneaking up on us early next year. Are the contracts you have with customers today to bring NGLs to Guernsey or do they go further than that? And I think you referenced in the prior question, wanting to secure incremental contracts. Can you elaborate at all on the strategy there?

Question: Zack Van Everen - TPH&Co. - Analyst : Maybe going back to the Haynesville, you mentioned growth in the '25 and '26, and we tend to agree with that statement. Could you just remind us I know you guys had the projects in '25 for [340] a day for the Haynesville. Could you remind how much capacity is open once those projects are online for that system?

Question: Zack Van Everen - TPH&Co. - Analyst : Perfect. That makes sense. And then maybe moving over to Texas, your announcement on the [TAOS] pipeline pretty low capital spend there. Is there an opportunity to upscale that or have other opportunities on your intrastate system within Texas around whether it's power or data center demand?