Gabe Moreen

Gabe Moreen inquired about the impact of additional pore space on the Pathfinder project's efficiency and original cost estimates, and sought an update on third-party contracting progress.

Answer

CEO Oscar Brown stated that the pore space deal added capacity, improved flexibility, and allowed for rerouting a pipeline portion, enhancing Pathfinder's returns. He noted that third-party contracting is progressing well, with the Aris acquisition accelerating discussions and the regulatory environment shifting favorably for produced water solutions.

Gabe Moreen asked for an update on the Pathfinder project, specifically how the acquisition of additional pore space impacts its efficiency and the original cost estimates. He also sought an update on the progress of third-party contracting for the project. Additionally, he inquired about Western Midstream Partners' (WES) strategy for expanding gas and oil infrastructure into New Mexico within the newly acquired Aris footprint, and whether this expansion would be organic, inorganic, or both.

Answer

CEO Oscar Brown stated that third-party contracting for Pathfinder is progressing well, especially after the Aris acquisition enabled commercial team coordination. He noted that the pore space deal added capacity, flexibility, and allowed for pipeline rerouting, which improved Pathfinder's returns. Brown highlighted a favorable shift in the regulatory environment, increasing pressure on smaller players. Regarding New Mexico expansion, Oscar Brown confirmed WES would pursue both organic and inorganic opportunities, leveraging Aris's extensive footprint and WES's existing gas lines. He emphasized their success with multi-stream contracts in Texas-Delaware and sees water solutions as a critical leverage point in the New Mexico market.

Gabe Moreen inquired about the necessity of the next potential LEAP expansion, asking if recently completed egress projects, including LEAP Phase 4, are sufficient for the current round of LNG projects, or if more gas capacity is needed. He also questioned if inorganic growth, such as consolidating gathering systems, might be required to drive sufficient volumes for another LEAP expansion. Additionally, he asked about the implications of the upsized Mountain Valley Pipeline (MVP) expansion for the Stonewall expansion project.

Answer

President and CEO David Slater confirmed that more egress capacity is required to the Gulf Coast beyond existing projects, expecting current systems to fill quickly, and stated DT Midstream is proactively expanding connectivity to future load centers. He did not directly address inorganic growth for LEAP but emphasized winning their fair share of the large growth area. For Stonewall, Slater viewed the upsized MVP expansion as a very positive fundamental event, positioning Stonewall as a strategic independent supply source for Mountain Valley shippers.

Gabe Moreen asked about the need for further LEAP expansions given recent egress project completions, if inorganic growth (consolidation of gathering systems) is needed to drive volumes for another expansion, and the implications of the MVP (Mountain Valley Pipeline) expansion for the Stonewall expansion.

Answer

David Slater (President and CEO, DT Midstream) asserted that more egress capacity is needed to the Gulf Coast beyond current projects, as existing systems will fill quickly, and DTM is pre-positioning for future load. He viewed the MVP expansion as a very positive fundamental event for the Stonewall expansion, positioning Stonewall as a strategic, independent supply source and valuable outlet for Mountain Valley shippers.