Kinder Morgan Inc Q2 2023 Earnings Call Transcript

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

Question: Brian Patrick Reynolds - UBS Investment Bank, Research Division - Analyst : My first question is just around the guidance. We've seen 1Q and 2Q come roughly in line with the original quarterly guidance outlined at the Analyst Day. But in the prepared remarks, you talked about how commodity headwinds have been really offset by base business outperformance. So kind of looking ahead to second half, should we expect continued outperformance in kind of the nat gas and terminaling segment? Or could we see a recovery in products in the back half as well?

Question: Brian Patrick Reynolds - UBS Investment Bank, Research Division - Analyst : Great. Really appreciate that color. As a follow-up, just wanted to talk RIN pricing. It's been very volatile year-to-date based on the RVO outlook. So just curious if you could help sensitize perhaps the ability for Kinder to utilize its RINs on the balance sheet that were held in the first half and then monetize in the back half of second half '23.

Question: Tristan James Richardson - Scotiabank Global Banking and Markets, Research Division - Analyst : Just a question on the midstream side. Obviously, seeing very strong year-over-year growth rates across your 3 primary basins. Maybe you also mentioned in the prepared comments, though, that you are seeing at the margin, maybe some smaller producers being a little bit more price sensitive, maybe curious about regionally where you're seeing that most. Across the 3 basins in midstream?

Question: Tristan James Richardson - Scotiabank Global Banking and Markets, Research Division - Analyst : That's great. And then quick follow-up on the Gulf Coast storage expansion you guys announced, I think, the Markham project. Can you maybe give some context around relative magnitude versus your overall storage portfolio? And then maybe just some of the logistics are we assuming third-party contracts? Or is this, all considered, perhaps new storage that would be available to new customers? Maybe just curious to touch on that one.

Question: Tristan James Richardson - Scotiabank Global Banking and Markets, Research Division - Analyst : Yes, that's very helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 19, 2023 / 8:30PM, KMI.N - Q2 2023 Kinder Morgan Inc Earnings Call

Question: Indraneel Mitra - BofA Securities, Research Division - Analyst : I wanted to follow up on LNG demand, specifically in the Corpus Christi area. Now that we have the Rio Grande project sanction, do you see any incremental interest in expanding GCX given that there's more demand in the Corpus Christi area and the last 2 pipes have been built to the Houston area?

Question: Indraneel Mitra - BofA Securities, Research Division - Analyst : Got it. And then the second follow-up on the contract structure, maybe for your Texas Intrastate network. We had a pretty weak basis in the second quarter. I think it averaged about $0.60 between Waha and Henry Hub because of the heat. So do you have marketing contracts or short-term contracts. How are you able to increase your earnings off of that with a narrow basis there this quarter?