Eli Jossen

Eli Jossen inquired about the visibility in the contract compression business, specifically supporting the 750,000 HP growth through 2030 and the potential for continued mid-single-digit EBITDA growth, and asked for an update on the overall pricing outlook for the Contract Services business.

Answer

Mickey McKee, President and CEO, affirmed the intent for continued 'up and to the right' trajectory in the compression business, complemented by the power business. He highlighted high visibility, with multi-year recontracting discussions (7-10 year renewals) already underway for 2028 capacity, underpinning stable cash flows and earnings. Mr. McKee stated that pricing conversations remain constructive with no significant changes expected. While a smaller percentage of the fleet is up for recontracting in 2026 (low 20s% vs. 40% in 2025), the ability to raise prices remains strong, and the target of $24 per horsepower per month by year-end is on track.

Eli Jossen inquired about the high visibility Kodiak Gas Services has in its contract compression business, specifically the 750,000 horsepower growth target through 2030, and whether this supports a mid-single-digit EBITDA growth rate for the compression business alone. He also asked about the overall pricing outlook, particularly the target of reaching $24 per horsepower per month by year-end.

Answer

President and CEO Mickey McKee affirmed the intent to continue the 'up and to the right' trajectory in the compression business, with high visibility into growth, including discussions for 2028 capacity and multi-year renewals (7-10 years) on existing equipment. He confirmed the goal of reaching $24 per horsepower per month by year-end, noting that while less of the fleet is up for recontracting in 2026 (low 20s% vs. 40% in 2025), pricing conversations remain constructive and strong.

Eli Jossen of JPMorgan Chase & Co. inquired about customer demand for electric versus gas-driven compression for 2026 and beyond, and whether the upward trend in revenue per horsepower per month is sustainable.

Answer

President & CEO Mickey McKee confirmed that demand for electric-drive compression remains significant, particularly from large customers, though access to power is a key constraint. He affirmed the goal is to continue increasing revenue per horsepower through new, higher-rate contracts. EVP & CFO John Griggs cautioned that the timing of new unit deployments within a quarter can cause fluctuations in this metric that do not reflect market softness.

Eli Jossen asked about the evolving discussions regarding generation types and the long-term outlook for renewables in Florida, specifically concerning Tampa Electric's generation mix shift. He also inquired about the nature of discussions for large load tariffs, such as data centers, in Tampa, including the size of opportunities and overall structure, given other contracting in the state.

Answer

Scott Balfour, President and CEO, stated that natural gas constitutes over 70% of Tampa Electric's generation, with plans for additional capacity, alongside continued investment in solar due to its economic benefits for customers. He noted the one remaining coal unit is rarely used, with retirement options being explored. For large load tariffs, he confirmed an approach aligned with other utilities, ensuring new large loads fully cover incremental costs and contribute to reducing rate pressure for other customers. He indicated capacity to serve approximately 300 MW in the near term, with modest growth thereafter, not multi-gigawatt scale.

Eli Jossen asked about the evolving discussions regarding generation types in Tampa Electric's mix shift and the long-term outlook for renewables in Florida. He also inquired about the nature of discussions concerning data center opportunities in Tampa, specifically regarding the size of opportunities and overall structure of large load tariffs, referencing other contracting seen in the state.

Answer

Scott Balfour, President and CEO, stated that natural gas is a critical component, comprising over 70% of Tampa Electric's generation, with plans for additional gas capacity. He confirmed continued meaningful solar investment in Florida, as it saves customers money, and mentioned exploring retirement options for the one remaining coal unit. Regarding data centers, Balfour explained that discussions align with ensuring new large loads fully cover incremental costs and contribute to the broader system. He indicated capacity to serve approximately 300 MW in the near term, with modest growth potential, not multi-gigawatt opportunities.

Eli Jossen inquired about the strategic leadership changes, including Greg Blunden's transition and Jared Green's arrival, and the top priorities for Emera moving forward. He also asked about potential pockets of upside beyond the current plan for Florida's attractive growth, specifically mentioning industrial and data center opportunities.

Answer

Scott Balfour, Emera's President and Chief Executive Officer, explained that the leadership changes are aimed at strengthening the bench, bringing in fresh talent and perspective, and ensuring thoughtful succession planning to maintain strong performance. Regarding Florida growth, Mr. Balfour reiterated that there is no shortage of capital investment opportunities, but Emera is balancing this with customer affordability, execution capacity, and supply chain constraints. He noted active interest from data centers in their service territories, particularly Florida, but nothing material to share yet. He believes data center growth could help support affordability for broader customers and aims to sustain the 7-8% rate-based growth profile.

Eli Jossen asked about the top priorities for Emera following the strategic leadership changes, specifically the CFO transition. He also inquired about potential pockets of upside beyond the current plan for Florida's attractive growth, such as industrial or data center opportunities, and how these might impact the capital investment strategy.

Answer

President and CEO Scott Balfour stated that the leadership changes are about strengthening the bench and ensuring thoughtful succession planning, bringing in fresh talent and perspective. Regarding Florida growth, Balfour reiterated that there's no shortage of capital opportunities, but Emera prioritizes balancing capital investment with customer affordability, execution capacity, and supply chain constraints. He noted active interest from data centers in their service territories, particularly Florida, which could potentially support the 7-8% rate-based growth and mitigate cost impacts for broader customers, though nothing material is ready to be shared.

Eli Jossen inquired about the impact of bolt-on acquisitions on the SUNC dividend and Sun distribution equivalence, specifically whether these investments could help extend the guidance for minimal corporate income taxes and long-term tax protection.

Answer

Scott Grischow, Senior Vice President of Finance, reiterated the expectation of minimal corporate income taxes for at least five years, attributing this to the business outlook and ongoing investments, including acquisitions and growth capital. Joe Kim, President and Chief Executive Officer, further added that material growth beyond current modest assumptions would enhance their long-term tax protection.

Eli Jossen asked about the outlook for bolt-on M&A, specifically if the $500 million annual target represents upside to the current guidance and the contribution from earlier roll-up acquisitions. He also inquired about the impact of these bolt-ons on the SUNC dividend and Sun distribution equivalence, and if the guidance for tax protection might be extended.

Answer

Joe Kim, President and Chief Executive Officer, stated that the $500 million bolt-on M&A target is a floor, sustainable multi-year, and represents a long-term growth story across expanded geographies (U.S., Canada, Greater Caribbean, Europe). He noted that valuations remain attractive due to Sunoco's ability to bring material synergies. Scott Grischow, Senior Vice President of Finance, and Joe Kim confirmed that minimal corporate income taxes are expected for at least five years, and continued investment and material growth would further support this outlook, ensuring distribution equivalence between SUNC and Sunoco LP.

Elias Jossen asked for an update on Indiana House Bill 1002, its potential impact, and discussed the recent IURC appointment changes, inquiring about their view on NiSource's business and customer affordability. He also asked if the high end of the GenCo range reflects the full upper bound of Amazon's ramp or a more conservative scenario.

Answer

CEO Lloyd Yates expressed support for House Bill 1002, detailing its components (multi-year rate plans, performance-based components, mandatory budget billing, low-income plan funding) and noting its current status in the Indiana Senate. He also commented that the three new IURC appointments are balanced and that Indiana will remain a constructive regulatory jurisdiction. EVP and CFO Shawn Anderson explained that the GenCo range reflects various scenarios, with faster construction leading to lower financing costs and potentially a higher position in the range, while slower construction could lead to a lower position. He added that incremental customers or timeline changes could represent further upsides beyond the current 2033 guidance.

Eli Jossen inquired about the current status and potential impact of Indiana's House Bill 1002, broader implications of recent IURC appointment changes on NiSource's business and affordability, and whether the high end of the GenCo earnings range fully reflects Amazon's ramp or a more conservative scenario.

Answer

President and CEO Lloyd Yates expressed support for House Bill 1002, highlighting its components (multi-year rate plans, budget building, low-income funding) and anticipating a constructive regulatory environment with the new, familiar IURC commissioners. EVP and CFO Shawn Anderson explained that the GenCo earnings range incorporates various scenarios, with faster construction and lower financing costs potentially positioning NiSource higher in the range, while slower timelines could lead to a lower position. He noted that incremental customers or timeline changes could represent further upsides beyond the current 2033 guidance.

Eli Jossen from JPMorgan Chase & Co. asked about the key learnings and business expertise gained from the initial data center contracting announcement, and how NiSource plans to leverage this for future execution. He also requested more details on the downside and risk protections embedded in these contracts.

Answer

EVP Michael Luhrs emphasized that the Genco structure creates a strategic platform for growth, doubling the system load and building 3,000 MW of generation, which enhances future execution capabilities. He also noted that thoughtful consideration of risk led to built-in protections, including cost-sharing provisions, to maintain NIPSCO's financial integrity.

Eli Jossen from JPMorgan Chase & Co. asked about the key learnings and business expertise gained from the first data center contracting announcement and how these would be leveraged for future contracts, as well as the types of downside and risk protections included.

Answer

Michael Luhrs, EVP of Technology and Customer and Chief Commercial Officer, stated that the project creates a strategic platform for growth, enhancing NiSource's ability to execute future opportunities due to regulatory speed, EPC partnerships, and long-lead equipment. He noted that thoughtful risk management and cost-sharing provisions are built into contracts to maintain NIPSCO's financial integrity.

Eli Jossen inquired about the evolving regulatory backdrop in New Jersey, specifically how affordability efforts pertain to future rate case filings and the overall regulatory strategy. He also asked about the opportunities for Clean Energy Ventures (CEV) stemming from Executive Order 2, including the backlog of installs, safe-harboring, and impacts of recent legislation.

Answer

Stephen D. Westhoven, President and CEO, stated that affordability is a long-standing priority, supported by hedging, energy efficiency, and assistance programs. He noted that a rate case was completed 14-15 months ago, so no immediate filing is needed, and they will work with the administration. For CEV, he found permit reform and accelerated interconnects encouraging for developing safe-harbored assets, indicating these tailwinds could accelerate development.

Eli Jossen inquired about the evolving regulatory backdrop in New Jersey, specifically how affordability efforts might impact future rate case filings and the overall regulatory strategy for the utility. He also asked about the opportunities for Clean Energy Ventures (CEV) presented by the second executive order (EO2), including the backlog of installs, safe-harboring, and the segment's outlook.

Answer

Stephen D. Westhoven, President and CEO, highlighted New Jersey Resources' ongoing commitment to affordability through gas hedging, energy efficiency, and customer assistance. He noted that a recent rate case was completed, and the company plans to work proactively with the administration on capacity needs. For CEV, he expressed optimism about permit reform and accelerated interconnects, which could expedite the development of safe-harbored assets and bring capacity to market.

Eli Josen asked about the EPS growth outlook, specifically if any headwinds in other business segments (e.g., Clean Energy Ventures) might offset the upside from Leaf River storage capacity and overall Storage and Transportation (S&T) earnings. He also questioned if there is material upside from the S&T business within the stated growth range, assuming project execution.

Answer

Steve Westhoven (President and CEO, New Jersey Resources) affirmed that the company is an energy infrastructure and services provider, and with the country's increasing energy needs, investments are being made for growth across all segments, indicating a positive outlook. He acknowledged that there is "always upside" in the business, citing past performance and the potential to accelerate infrastructure projects with favorable policy initiatives, suggesting that while the plan is executable, additional upside is possible.

Eli Jossen asked about the implications of extended time on location for recontracting discussions and pricing opportunities. He also sought insight into current input cost trends, particularly for OEMs and labor, and their potential impact on margins across different basins.

Answer

President and CEO Brad Childers explained that longer time on location supports repricing opportunities, with 60-65% of contracts open for repricing annually through built-in mechanisms or contract rollovers. Senior VP and CFO Doug Aron added that historically low stop activity further enhances repricing power. Regarding costs, Mr. Childers noted overall low single-digit inflation for OEMs and materials, moderated lube oil pricing, but mid-single-digit labor cost pressure in the Permian. He expects the ability to pass on cost increases through rate adjustments.

Eli Jossen asked how the extended time units stay on location impacts recontracting discussions, particularly regarding pricing opportunities. He also inquired about the trending of input costs, especially from OEMs and labor in the Permian, and their long-term impact on margins, considering Archrock's ability to pass on cost increases.

Answer

Brad Childers (President and CEO) explained that longer time on location (over six years) reflects Archrock's focus on large horsepower and midstream positioning, leading to greater operational stability. He noted that 60-65% of contracts are open for annual repricing through built-in mechanisms or contract rollovers, allowing for continued pricing increases in the current high-utilization market. Doug Aron (Senior VP and CFO) added that historically low stop activity further supports repricing opportunities. Childers stated that overall input costs, excluding labor, are trending at low single-digit inflation, with lube oil moderating. Labor costs, especially in the Permian, are in the mid-single digits due to tightness. He expects the ability to pass on cost increases through rate adjustments.

Eli Jossen of JPMorgan Chase & Co. inquired about Archrock's outlook for capacity additions and capital expenditures in 2026, asking how the current order book compares to the previous year. He also asked about the forecast for pricing, specifically revenue per horsepower, and any evolution in contract terms with customers.

Answer

President & CEO D. Bradley Childers explained that the 2026 order book is robust, with customers ordering earlier than usual, prompting early guidance for a minimum of $250 million in growth CapEx. He anticipates pricing to increase in the mid-single digits, reflecting inflation, while noting that profitability is also driven by operational efficiencies and high margins. Childers highlighted that while contract terms remain three to five years for large horsepower, units are now staying on location for an average of over six years, indicating significant stability.

Eli Jossen inquired about Archrock's outlook for capacity additions and capital expenditures for 2026, the strength of the current order book, and recent trends in pricing and contract terms.

Answer

President & CEO D. Bradley Childers explained that the 2026 order book is already robust, prompting early guidance of at least $250 million in growth CapEx. He noted that pricing is seeing normalized, mid-single-digit increases, but profitability is also driven by high margins and operational efficiencies. Mr. Childers highlighted that compressor units are now staying on location for an average of over six years, and all new build orders are backed by firm customer contracts.

Eli Jossen of JPMorgan Chase & Co. inquired about Archrock's outlook for capacity additions in 2026, the strength of the order book compared to the previous year, and the trajectory for pricing and contract terms.

Answer

President & CEO D. Bradley Childers explained that the 2026 order book is robust, prompting early guidance of at least $250 million in growth CapEx. He noted that pricing increases are normalizing to mid-single digits, with profitability also driven by operational efficiencies. Childers highlighted that equipment is now staying on location for over six years on average, a 52% improvement since 2021, and all new build orders are backed by firm customer contracts.

Eli Jossen from JPMorgan Chase & Co. asked for specific operational and financial milestones to watch for regarding the Jamaica platform. He also inquired about the amount of incremental LNG supply needed to support targeted growth and how future supply agreements might be structured.

Answer

President, CEO & Director Steven Kobos highlighted that the company has already begun making incremental LNG and natural gas sales and smaller investments for optimization in Jamaica, promising transparency on future milestones. EVP & Chief Commercial Officer Oliver Simpson added that the Venture Global offtake is larger than current demand, providing room for growth. He noted the proximity to the U.S. allows them to access incremental LNG supply efficiently as customer demand materializes.

Eli Jossen, on behalf of JPMorgan, asked about the strategic role of the McNeil Ranch in WES's long-term plans for pore space and surface use. He also requested information on customer feedback for the ARRIS deal, particularly from ConocoPhillips and Chevron, and inquired about potential hurdles to closing the transaction.

Answer

President and CEO Oscar Brown described the McNeil Ranch as a long-term 'call option' with upside potential for water disposal and other surface uses. He noted strong support for the ARRIS deal, including from 42% of ARRIS shareholders and key customers like ConocoPhillips, with whom WES has a strong relationship. He characterized the remaining hurdles as standard regulatory and shareholder approval processes, expecting a Q4 close.

Eli Jossen from JPMorgan inquired about any shifts in the market between electric motor drive and natural gas-driven compression. He also asked about capital allocation priorities, specifically the potential for distribution increases once refinancing is addressed.

Answer

VP & COO Christopher Wauson stated that discussions around electric drive opportunities have subsided, with natural gas engine-driven compressors remaining the top choice for customers. On capital allocation, VP, CFO & Treasurer Christopher Paulsen reiterated that the distribution is 'sacrosanct' and the primary focus is achieving a leverage ratio at or below 4.0x before considering distribution upside.

Eli Jossen asked for an update on the market for electric motor drive compression, including any shifts in preference between electric and natural gas units. He also questioned the company's capital allocation priorities, particularly the potential for distribution increases following upcoming debt refinancing.

Answer

Chief Operating Officer Christopher Wauson noted that discussions around electric drive opportunities have subsided, with natural gas engine-driven compressors remaining the preferred choice for customers. On capital allocation, CFO Christopher Paulson reiterated that the distribution is 'sacrosanct' and the primary focus is achieving a leverage ratio at or below 4.0x. He suggested a refinancing could lower interest costs, which would support business growth and, longer-term, potential distribution upside.

Elias Jossen from JPMorgan Chase & Co. inquired about how data center commercialization opportunities could affect the growth outlook for the Utilities segment. He also asked for an update on the Trigon litigation, including its potential impact on the business and expected timeline.

Answer

President of Utilities, Blue Jenkins, noted ongoing conversations for medium-sized data centers and plans for shorter-term recovery contracts. President and CEO Vern Yu added that data center projects could potentially increase the Utilities' rate base CAGR from 8% to around 9%. Regarding the litigation, Yu stated that AltaGas has exclusive rights to develop bulk liquid exports at Ridley Island, which it will defend vigorously, and that the port authority was in court seeking a summary dismissal of Trigon's lawsuit.

Elias Jossen, on behalf of Jeremy Tonet at JPMorgan Chase & Co., asked about the commercialization opportunities from data centers within AltaGas's footprint and their potential impact on the Utilities segment's outlook. He also inquired about the expected impact and timeline related to the ongoing Trigon litigation.

Answer

Blue Jenkins, President of Utilities, noted ongoing conversations for medium-sized data centers, with rate-based CapEx potentially recovered over shorter 5-10 year contracts. CEO Vern Yu added that success in this area could increase the utility rate base CAGR from 8% to approximately 9%. Regarding the litigation, Yu stated that AltaGas has exclusive rights for bulk liquid exports at Ridley Island, which the company will vigorously defend, and noted a hearing for summary dismissal was underway.

Elias Jossen of JPMorgan Chase & Co. questioned how data center opportunities might impact the Utilities segment's outlook and asked for an update on the Trigon litigation, including its potential impact and timeline.

Answer

Blue Jenkins, President of Utilities, noted that data center projects are being pursued and could involve faster cost recovery contracts. President and CEO Vern Yu added that success in this area could increase the utility rate base CAGR from 8% to approximately 9%. Regarding the litigation, Mr. Yu affirmed that AltaGas has exclusive rights to develop bulk liquid exports at Ridley Island, a right they will vigorously defend, noting the significant time and capital already invested.

Elias Jossen, on behalf of Jeremy Tonet from JPMorgan Chase & Co., asked how data center opportunities might impact the outlook for the Utilities segment. He also inquired about the potential impact and timeline of the ongoing Trigon litigation.

Answer

Blue Jenkins, President of Utilities, confirmed ongoing data center discussions, with CapEx being rate-based and potentially recovered over shorter contract terms. President and CEO Vern Yu added that successfully adding a few data centers could increase the utility rate base CAGR from 8% to approximately 9%. Regarding the litigation, Mr. Yu stated that AltaGas and the Port Authority will vigorously defend their exclusive rights to develop bulk liquid exports at Ridley Island, which are critical for recovering significant upfront investment.