Jeremy Tonet

Jeremy Tonet asked about potential outcomes from hyperscalers heading to D.C. next week, particularly regarding discussions of 'bringing their own generation' and its impact on market architecture. He also inquired about the evolution of gas contracting discussions, hyperscaler appetite for gas risk, and the possibility of fixed capacity plus heat rate arrangements.

Answer

Mac McFarland, President and CEO, stated that the specific commitments from hyperscalers are unknown, but their public commitment to pay a 'fair share' is key. He noted that PJM's RTO model is not based on incremental load paying for incremental generation, and Talen Energy is in a generation-long LSE. Cole Muller, CFO, explained that hyperscaler appetite for gas risk varies by counterparty, and Talen Energy has explored various contracting structures. Mr. McFarland added that Talen Energy advises buyers to let commodity risk managers handle the gas risk, offering a full suite of services including credit support and physical/financial gas management.

Jeremy Tonet inquired about the potential outcomes of hyperscalers' discussions in D.C., particularly regarding 'bringing their own generation,' and how this might impact market architecture.

Answer

Mac McFarland, President and CEO, expressed uncertainty about hyperscaler commitments, highlighting that the definition of 'fair share' is key. He noted that PJM's RTO structure doesn't necessarily mean incremental load pays for incremental generation, and Talen is well-positioned in a generation-long LSE. Cole Muller, CFO, added that hyperscaler appetite for gas risk varies, and Talen has explored diverse contracting structures, with its commercial desk capable of managing commodity positions with appropriate premiums. Mac McFarland emphasized Talen's ability to provide a full suite of services, including managing commodity and physical gas delivery risk.

Jeremy Tonet from JPMorgan Chase & Co. asked for updated views on PJM supply and demand trends following the recent capacity auction, how Talen's assets compete with new generation initiatives, and how the company values long-term capacity prices in its acquisition models.

Answer

CFO Terry Nutt and CEO Mac McFarland described the PJM capacity market as constructive and working as intended, sending signals for new supply. McFarland emphasized Talen's advantage in acquiring existing assets at a discount to new-build costs. He and CCO Chris Morice noted that while they see constructive signs, their long-term financial outlook does not underwrite the recent high auction clearing prices.

Jeremy Tonet from JPMorgan Chase & Co. asked for Talen's perspective on the recent PJM capacity auction results, including supply-demand trends and the impact on the Freedom and Guernsey acquisitions. He also questioned how Talen's assets compete with new state-backed initiatives like PPL's Genco and how to value long-term capacity prices.

Answer

CFO Terry Nutt and CEO Mac McFarland described the PJM auction as constructive, noting that while there was a supply response, the market is working as intended to signal the need for more generation. McFarland emphasized that acquiring existing assets at a discount to new-build costs is advantageous. He stated that while their outlook for 2027-2028 will be constructive, it will not underwrite the recent high clearing prices long-term, reflecting a disciplined approach to valuation.

Jeremy Tonet inquired about the influence of the strong Asian demand backdrop, particularly the significant uptick in 2026-2030, on Cheniere's commercial conversations for locking in more supply agreements. He also asked about any impact from Winter Storm Fern on Cheniere's operations.

Answer

EVP and Chief Commercial Officer Anatol Feygin explained that moderate prices are beneficial for the industry, anticipating increased global LNG demand driven by Asia, and highlighted the appeal of long-term contract economics. President and CEO Jack Fusco emphasized the premium customers pay for Cheniere's decade-long reliability and flawless performance. CFO Zach Davis underscored the strong contracted position and cash flow visibility. Regarding Winter Storm Fern, Jack Fusco noted that operating teams managed well, resulting in a slight positive impact from optimization, which CFO Zach Davis confirmed was baked into January's guidance.

Jeremy Tonet asked about the influence of the projected 2026-2030 Asian demand uptick on commercial conversations for new supply agreements, and the impact of Winter Storm Fern on Cheniere's operations and optimization.

Answer

Anatol Feygin (EVP and Chief Commercial Officer) stated that moderate prices are beneficial for the industry, expecting a recalibration of the 2040 outlook and continued need for Cheniere's reliable supply. He noted 17 million tons of long-term contracts signed in Q4. Jack Fusco (President and CEO) and Zach Davis (EVP and CFO) confirmed Winter Storm Fern had a slight positive, non-material impact on Q1 optimization due to effective emergency preparedness and managing around Haynesville force majeure.

Jeremy Tonet from J.P. Morgan asked how recent EU energy purchase agreements impact customer conversations and what key milestones investors should watch for regarding FID on future growth projects at Sabine Pass and Corpus Christi.

Answer

President & CEO Jack Fusco and EVP & CCO Anatol Feygin stated that while the political backdrop is favorable, Cheniere's strong track record and reliability are the ultimate drivers of commercial agreements, which must meet their strict financial criteria. EVP & CFO Zach Davis identified the FERC permitting process as the primary milestone for future growth, outlining a phased approach to FID the most accretive, brownfield trains first, likely in late 2026 or early 2027.

Jeremy Tonet inquired about the current LNG contracting market, particularly how trade agreements are influencing discussions, and asked for an expansion on Cheniere's competitive advantages in a crowded market.

Answer

EVP and CCO Anatol Feygin described the commercial environment as robust, noting that LNG's role in the U.S. trade balance is a tailwind. He emphasized that Cheniere is selective with partners who value its reliability. EVP and CFO Zach Davis added that the company's conviction in a 90%+ contracted model for new projects is stronger than ever, allowing them to achieve strong returns on brownfield expansions.

Jeremy Tonet asked for an expanded view on the macro environment, particularly concerns about returning Russian gas and new LNG supply, and how stable prices might incentivize Asian demand. He also questioned how Cheniere balances its aggressive share buyback program with attractive brownfield growth opportunities.

Answer

EVP and CCO Anatol Feygin stated that global demand for LNG remains robust, especially in Asia, and that Europe will have a significant supply deficit to fill even if some Russian gas returns. EVP and CFO Zach Davis explained that Cheniere's strong cash flow and balance sheet allow it to simultaneously fund over $2 billion in 2025 CapEx for growth while continuing its significant share repurchase program, dividend growth, and debt reduction, noting the previous year's $2.25 billion buyback shouldn't be an anomaly.

Jeremy Tonet inquired about the potential reduction in Stage 3 project costs from commissioning cargoes and how the recent FDA authorization impacts the commercialization of the SPL expansion.

Answer

EVP and CFO Zach Davis explained that approximately 1 million tonnes of commissioning volumes are expected to offset Stage 3 CapEx by 'hundreds of millions of dollars' rather than contributing to EBITDA. EVP and CCO Anatol Feygin added that for the SPL expansion, Cheniere is well-positioned with counterparties and will maintain its target of being over 90% contracted with a 7x CapEx to EBITDA ratio, likely pursuing a phased approach.

Jeremy Tonet from JPMorgan Chase & Co. inquired about the future of generation in New Jersey, specifically asking for updated thoughts on the likelihood of Small Modular Reactors (SMRs) coming to fruition in the state.

Answer

Dan Cregg, EVP and CFO, stated that PSEG advocates for large nuclear facilities due to their property and footprint, though they would be open to SMRs if policymakers desired. Ralph M. LaRossa, President, Chair, and CEO, added that PSEG's Early Site Permit is technology-agnostic, allowing for flexibility. He also mentioned that PSEG has a suitable site with existing infrastructure for a gas facility.

Jeremy Tonet from JPMorgan Chase & Co. asked for updated thoughts on future generation in New Jersey, specifically the likelihood of Small Modular Reactors (SMRs) coming to fruition, and PSEG's capacity to host SMRs versus large nuclear plants.

Answer

Dan Cregg, EVP and CFO, stated PSEG advocates for large nuclear due to its existing property and footprint, while acknowledging SMRs might be suitable elsewhere. He also mentioned PSEG's sites are well-suited for new gas facilities with existing infrastructure. Ralph LaRossa, President, Chair, and CEO, added that PSEG's Early Site Permit is technology agnostic, allowing for flexibility in nuclear technology.

Jeremy Tonet from JPMorgan asked for more details on the system investments required to support data center and EV load growth and whether this would be additive to the current capital plan. He also requested further thoughts on the impact of EVs.

Answer

Ralph LaRossa, Chairman, President and CEO, indicated that the capital plan would be updated at year-end and that investment needs for data centers vary significantly by site. He described EV growth as "slow but steady" and aligned with existing plans. Daniel Cregg, EVP and CFO, highlighted that competitive PJM transmission solicitations related to data centers represent an additional opportunity not currently in their base plan.

Jeremy Tonet asked how the transmission system might evolve with the addition of data center load, what PSEG's role would be, and how tariffs could be structured to protect existing ratepayers from bearing additional costs.

Answer

Chair, President and CEO Ralph LaRossa advised stakeholders to closely watch the PJM RTEP process for insights into grid evolution. He clarified that for behind-the-meter solutions, ratepayers are shielded from new infrastructure costs, as cost allocation is managed through PJM interconnection agreements. For front-of-the-meter developments, individual state tariffs and economic development policies would govern the process.

Jeremy Tonet of JPMorgan Chase & Co. asked how the transmission system is expected to change with growing data center and offshore wind demand, and what PSEG's role will be in that evolution.

Answer

Chair, President and CEO Ralph LaRossa advised monitoring the PJM RTEP process, which will incorporate new load forecasts. He noted that new interconnections and generation sources will impact grid topology, creating opportunities across the PJM footprint. LaRossa also explained that behind-the-meter solutions would not burden ratepayers with new infrastructure costs, and in-front-of-the-meter projects are handled by existing state tariffs.

Jeremy Tonet from JPMorgan inquired why Vistra had not updated its 2027 midpoint opportunity despite significant recent developments like the Cogentrix acquisition and Meta PPAs, and asked for insights into further upside drivers. He also sought categorization of the current level of long-term PPA discussions for nuclear versus gas assets compared to the past.

Answer

Kris Moldovan, EVP and CFO, Vistra, stated that the company typically doesn't update guidance quarterly and plans to update 2026 guidance and the 2027 midpoint opportunity after the Cogentrix deal closes in the second half of the year. He indicated that Cogentrix and Meta PPAs could add $700-$750 million to 2027, excluding other impacts. Moldovan also projected that with future cash allocation to share repurchases, free cash flow per share could reach $22-$25 by 2030. Stacey Doré, Chief Strategy and Sustainability Officer and Executive Vice President of Public Affairs, Vistra, characterized current PPA interest as very high, with customers now focusing on actionable and credible opportunities, which benefits Vistra's diverse fleet and development capabilities.

Jeremy Tonet questioned why the Meta opportunity was not included in the 2027 midpoint opportunity guidance, seeking clarification on further upside drivers for free cash flow per share. He also asked for a high-level categorization of the current long-term PPA discussions, distinguishing between nuclear and gas.

Answer

Kris Moldovan, Executive Vice President and Chief Financial Officer, Vistra, explained that guidance updates typically occur after major deal closings, with a full update expected post-Cogentrix closing. He estimated the Meta and Cogentrix transactions could add $700-$750 million to 2027, excluding other impacts. Mr. Moldovan projected that with future cash allocation to share repurchases, free cash flow per share could reach $22-$25 by 2030. Stacey Doré, Chief Strategy and Sustainability Officer and Executive Vice President of Public Affairs, Vistra, characterized PPA interest as very high, with customers now focusing on actionable and credible opportunities, positioning Vistra favorably due to its extensive sites and development capabilities.

Jeremy Tonnet asked for quantification of the 'meaningfully higher adjusted free cash flow before growth' and 'compelling growth rate over the next three to five years' mentioned in the prepared remarks. He also sought color on contracting discussions, specifically trends related to gas-fired generation versus nuclear, and inquired about the 2027 hedging price levels.

Answer

Chris Moldovan, EVP and CFO, Vistra Corp, stated that due to numerous opportunities and varying timing, providing a specific growth rate would be a disservice, but updates would be provided annually. Jim Burke, President and CEO, Vistra Corp, added that current guidance for 2026-2027 is based on a highly hedged position, and further out, wide variability makes precise quantification difficult, though fundamentals are strong. Regarding contracting, Mr. Burke noted significant investment in growth (people, capital) due to unprecedented engagement levels across gas and nuclear options. Stacey Doré, Chief Strategy and Sustainability Officer and EVP of Public Affairs, Vistra Corp, confirmed record interest across the portfolio and new builds, with demand accelerating and customers seeking longer-dated deals. Mr. Burke declined to provide 2027 hedging price levels, stating it's part of the next quarter's typical disclosure cadence, but indicated an expected year-over-year increase.

Jeremy Tonet from JPMorgan Chase & Co. asked for an assessment of the momentum in Vistra's data center contracting opportunities compared to the previous quarter. He also inquired about the relative attractiveness of long-term contracts across different markets like ERCOT and PJM, and between nuclear and natural gas assets.

Answer

President & CEO Jim Burke noted that while conversations ebb and flow, the overall activity level this quarter appears even greater than the last. He described colocation deals as complex, long-term partnerships. Burke reiterated his view that carbon-free resources like nuclear and co-located deals command a premium. He explained that the price spectrum depends on factors like speed-to-market, land use, and expansion potential, with different customers having different preferences.

Jeremy Tonet asked for Vistra's perspective on how the new PJM auction collar impacts new build incentives and to contrast that with the market backdrop in Texas for data center development. He also inquired whether signing new data center contracts could interfere with the pace of share buybacks.

Answer

President and CEO James Burke explained that the PJM collar provides a stable investment signal, whereas Texas has not yet sent the same clear price signals for new dispatchable generation. He believes ERCOT can serve the initial 8-10 GW of data center load with existing assets. An executive, Stacey Dore, added that Texas and Ohio are actively working on supportive policies. Burke also confirmed that data center negotiations do not affect their 10b5-1 share repurchase program, which has run continuously without pause.

Jeremy Tonet questioned how Vistra compares the opportunity sets in ERCOT versus PJM following the recent ISA ruling and asked whether current forward power curves fully reflect future demand growth.

Answer

President and CEO James Burke argued that PJM's capacity market structure provides a clearer investment signal than ERCOT's energy-only market, making the opportunities distinct. Head of Wholesale and Generation Stephen Muscato added that he believes the curves do not yet reflect the full extent of forecasted load growth, citing recency bias from a mild summer and uncertainty around the Texas Energy Fund (TEF) as contributing factors.

Jeremy Tonet asked for an update on the Kings Landing (KL) ramp-up, its current utilization, and expected trajectory throughout the year given macro dynamics. He also inquired about the normalized business growth and Kinetik's long-term EBITDA growth rate.

Answer

Jamie Welch, President and Chief Executive Officer, stated Kings Landing is at 65%-70% utilization, expecting to reach 2 Bcf/d inlet by the second half of 2026. He noted that while the previous 10% EBITDA CAGR target was not met in 2025, Kinetik anticipates 'above average growth' through 2028, dependent on commodity prices and activity. Trevor Howard, Senior Vice President and Chief Financial Officer, added that despite macro headwinds, Kinetik is more bullish on its opportunity set, citing deconsolidation in Delaware South and testing of deeper zones.

Jeremy Tonet inquired about the current utilization and expected ramp-up of Kings Landing over 2026, and Kinetik's normalized EBITDA growth rate for the business over time, considering lumpy years.

Answer

Jamie Welch, President and CEO, stated Kings Landing is at 65-70% utilization, expecting to reach 2 Bcf/day inlet by the second half of 2026. Regarding long-term growth, he reiterated that Kinetik aims for 'above average growth' and feels good about the line of sight to 2028, but avoided a specific CAGR due to commodity price and activity dependencies. Trevor Howard, SVP and CFO, added that while macro conditions are down, Kinetik is more bullish on its opportunity set, citing increased confidence in Durango assets, deconsolidation in Delaware South driving volumes, and deeper zone testing. He noted that drilling efficiencies and higher well density benefit Kinetik's capital efficiency and visibility.

Jeremy Tonet of JPMorgan Chase & Co. asked for a breakdown of the components supporting the Q4 2025 annualized adjusted EBITDA target of $1.2 billion and inquired about the expected cadence of share repurchases.

Answer

CEO Jamie Welch explained that the ramp to the $1.2 billion run rate is driven by the full contribution from the King's Landing project, incremental volumes from other systems, and the fact that significant operating cost impacts have already been absorbed. Regarding buybacks, Welch stated the pace is a function of the stock price, noting that the company views its shares as "incredibly compelling" in the low $40s.

Jeremy Tonet of JPMorgan Chase & Co. asked about the potential pace of the share buyback program and how Kinetik is evaluating investment hurdles for new growth projects, like Kings Landing 2, in the current market environment.

Answer

CEO Jamie Welch confirmed Kinetik is able to 'actively engage' in the buyback program immediately, noting that with 65% of 2025 CapEx soon to be spent, a free cash flow inflection is imminent. Welch and CFO Trevor Howard stated that investment hurdles are now even higher, requiring 'ironclad certain' conviction, but emphasized that the organic growth opportunity set has not diminished.

Jeremy Tonet from JPMorgan Chase & Co. asked for more detail on the drivers behind the 10% long-term EBITDA CAGR goal and questioned the outlook for producer activity given potential Waha gas price volatility.

Answer

CEO Jamie Welch stated the outlook is part of a transparent communication strategy, similar to their previous $1 billion target, and is driven by organic opportunities like Kings Landing II and OpEx initiatives. Welch and Kris Kindrick, an executive, noted that while 2024's negative Waha prices were an 'eye-opener' for producers, activity remains robust, particularly in New Mexico. Kindrick added that Kinetik's ability to offer Gulf Coast pricing helps insulate customers and supports their drilling programs.

On behalf of Jeremy Tonet, Bob Methti sought clarification on curtailed gas volumes, distinguishing between the 170 MMcf/d and 100 MMcf/d figures, and asked about Kinetik's role in industry consolidation.

Answer

CFO Trevor Howard and CEO Jamie Welch clarified that the 170 MMcf/d was a gross number for price-related curtailments in the Delaware South, while the 100 MMcf/d refers to volumes shut-in at the northern Durango system due to a lack of processing capacity. On consolidation, Welch commented that Kinetik's destiny is 'not necessarily for ours to control.'

Jeremy Tonet asked if Archrock's growth CapEx figure could see upside due to opportunistic horsepower procurement or swelling customer demand, despite extended supply chain lead times. He also inquired about Archrock's geographic strategy, particularly its focus on the Permian Basin and potential expansion into other basins.

Answer

Brad Childers, President and Chief Executive Officer, confirmed that upside to growth CapEx is possible if opportunities arise, but acknowledged that full shop space for 2026 makes it challenging. He stated that Archrock has a diversified footprint across all U.S. natural gas-producing basins, with a primary focus on the Permian due to customer growth and capital deployment. However, he noted net horsepower growth in six basins in 2025, including dry gas plays, reflecting a strategy of prudent diversification alongside Permian opportunities.

Jeremy Tonet asked if Archrock's growth CapEx figure could see upside given strong customer demand and potential opportunistic procurement of horsepower, and what visibility Archrock has on this. He also inquired about the company's geographic strategy, specifically its focus on the Permian Basin and Eagle Ford, and whether it's looking to expand within other basins.

Answer

Brad Childers, President and Chief Executive Officer, confirmed potential upside to growth CapEx but noted challenges due to full shop space for 2026, though Archrock would be ambitious if opportunities arise. He affirmed the continued focus on the Permian Basin due to customer capital expenditure, but highlighted net horsepower growth in six basins in 2025, including dry gas plays, emphasizing a strategy of prudent diversification.

Jeremy Tonet from JPMorgan Chase & Co. asked how Archrock is balancing opportunities for higher pricing on shorter-term contracts versus securing longer-term deals, and questioned the potential impact of increased dry gas basin activity on the business.

Answer

President and CEO Brad Childers stated that in the current strong market, Archrock can achieve both favorable pricing and longer contract terms, especially for new build deployments. He noted that while about 30% of 2025 capital will be deployed outside the Permian, significant new investment in dry gas plays is not expected to match the scale of the Permian in the near term.

Jeremy Tonet asked for an update on how recent acquisitions (Magellan, EnLink, Medallion) are performing against expectations, specifically which ones are meeting or falling below targets. He also inquired about the drivers behind the delta between the previous expectation of approaching $9 billion EBITDA and the current 2026 outlook of $8.1 billion, beyond lower commodity prices.

Answer

CFO Walt Hulse stated that Magellan shows the most progress and synergies due to longer integration time and asset overlap. He noted EnLink is on pace with contractual arrangements rolling off, and Medallion has quickly enhanced the gathering system. Hulse attributed the EBITDA outlook difference primarily to lower producer activity (Bakken volume) and narrowing spreads due to lower prices, while highlighting future growth from projects like Denver, Medford, and Shadowfax.

Jeremy Tonet asked for an update on the performance of recent acquisitions, specifically which ones (Magellan, EnLink, Medallion) are meeting or falling below expectations. He also inquired about the drivers behind the delta between the previous expectation of $9 billion EBITDA for next year and the current 2026 outlook, beyond lower commodity prices.

Answer

CFO Walt Hulse stated that Magellan is leading in synergy capture due to longer integration time and asset overlap. EnLink is progressing as planned, with contractual arrangements rolling off over time. Medallion has quickly enhanced the gathering system by leveraging the balance sheet. All acquisitions are on pace. Regarding the EBITDA delta, CFO Walt Hulse attributed it primarily to lower producer activity, resulting in $100 million per day lower volume in 2025 than expected, and narrowing spreads across businesses due to lower commodity prices. He highlighted building blocks for 2026 and 2027 growth.

Jeremy Tonet of JPMorgan Chase & Co. requested more detail on the synergy capture expected in the second half of the year, asking for concrete examples. He also inquired about the recent BridgeTex transaction, seeking information on its economics, synergies, and whether it will be consolidated.

Answer

EVP & CCO Sheridan Swords detailed synergies from connecting Mont Belvieu NGL assets to refined products infrastructure, which will boost blending volumes and reduce costs, with similar plans for the Mid-Continent in 2026. President and CEO Pierce Norton described the BridgeTex deal as an opportunistic acquisition to increase ONEOK's stake to 60% at an attractive multiple, but confirmed it will not be consolidated due to a fifty-fifty governance structure.

Jeremy Tonet inquired about the durability of ONEOK's synergy and growth outlook for 2025 and 2026 amid market uncertainty, and asked about the nature of recent conversations with producers regarding potential service concessions.

Answer

President and CEO Pierce Norton affirmed the outlook, citing long-term drivers like LNG and AI data center demand. Chief Commercial Officer Sheridan Swords added that many synergies, such as liquids blending and operational efficiencies, are not dependent on production volume growth. Regarding producer talks, management described them as constructive, focusing on creating win-win bundling opportunities across the newly integrated value chain.

Jeremy Tonet sought clarification on the Coastal Virginia Offshore Wind (CVOW) turbine installation timeline, specifically the difference between 'early 2027' and 'July 2027.' He also asked for an update on how CVOW might face reduced energy deliverability due to PJM transmission upgrades and the impact on Dominion, and what specifically comprises the 7% of the capital plan focused on nuclear.

Answer

CEO Bob Blue clarified that 'early 2027' is a general expectation, while 'July 2027' represents the budget contingency for weather delays, noting that early installation phases are deliberately slower due to weather and refinement. Regarding CVOW deliverability, he stated that PJM interim deliverability studies are ongoing, and the company has assumed 50% deliverability for the rider, with updates if needed. For nuclear capital, Bob Blue explained that the lion's share is nuclear fuel, categorized as capital, along with SLR and maintenance.

Jeremy Tonet sought clarification on the CVOW turbine installation timeline, distinguishing between 'early 2027' and 'July 2027.' He also asked for an update on how CVOW might face reduced energy deliverability until PJM transmission upgrades are completed and requested a breakdown of the 7% capital plan allocated to nuclear, specifically what is included in that bucket.

Answer

Robert M. Blue clarified that 'early' means early, without a specific date, and that the current budget includes contingency for weather delays through July 2027. He cautioned against drawing conclusions from early installation stages due to weather and initial learning curves. For CVOW deliverability, he stated that PJM is conducting an interim study, and the company has assumed 50% deliverability for the rider, which will be updated if needed. He explained that the nuclear capital allocation primarily includes fuel, SLR (Subsequent License Renewal), and some maintenance.

Diana, on behalf of Jeremy Tonet, asked about the anticipated impacts from the Omnibus Budget Bill (OBB) across Dominion's operations, specifically concerning tax credits and whether the company would pull projects forward to safe harbor them.

Answer

EVP & CFO Steven Ridge responded that the company is pleased with the OBB's outcome and is confident in preserving all forecasted tax credits. He noted that projects like CVOW are not impacted and only 20-25% of total credits require active mitigation, for which plans are in place. Ridge clarified that these mitigation plans, such as safe harboring, are part of the normal course of business and would not likely require pulling forward project in-service dates.

Jeremy Tonet requested updates on PJM network cost upgrades, the potential impact of changes to tax credit transferability, and the strategy for using the ATM program to de-risk future equity needs.

Answer

Robert Blue, Chair, President and CEO, said there was no new information on PJM upgrades, with a final number expected in July. Steven Ridge, EVP and CFO, explained that tax equity would be an effective mitigant if transferability rules change. He also confirmed Dominion would opportunistically use its ATM program to de-risk future financing needs, including for 2026.

Jeremy Tonet questioned the reaction from Virginia stakeholders to the significant data center growth, focusing on potential impacts to customer bills. He also asked about the upcoming Virginia biennial review and any key issues to watch beyond affordability.

Answer

Chair, President & CEO Robert Blue explained that Virginia policymakers are supportive of data center growth due to its economic benefits, such as increased tax revenue. He noted that spreading system costs over more megawatt-hours can benefit all customers and expects the 'fair share' cost allocation debate to be addressed in the upcoming biennial review. Blue described the upcoming rate case as 'straightforward,' stating that with strong reliability and below-average rates, Dominion is in a constructive position and does not anticipate any 'exotic' issues.

Jeremy Tonet asked about the factors driving the revised REC value in the CVOW project's LCOE, the potential scale and timing of the PJM transmission opportunity, and the impact of load growth and EPA rules on coal retirements and gas plant plans.

Answer

CFO Steven Ridge attributed the lower LCOE for CVOW to higher expected REC prices, driven by rising RPS demand and a new Virginia-sourcing requirement. CEO Robert Blue described the joint PJM transmission proposal as a significant opportunity, with project selections expected in Q1 2025. Blue also stated that due to load growth, the IRP includes no fossil retirements in its 15-year horizon and that the plan accounts for EPA rules by adjusting capacity factors, not by adding CCS technology.

Jeremy Tonet (JPMorgan Chase & Co.) asked about the potential timing of announcements for contracts related to the Blackstone joint venture (Genco) and whether such announcements would occur outside of earnings calls. He also inquired if the JV would bid into the Base Residual Auction or a special PJM auction, and sought more color on the "alternative generation solutions" mentioned for data center ramping requirements.

Answer

PPL President and CEO, Vince Sorgi, confirmed that significant JV contract announcements would likely be made off-cycle, not necessarily during earnings calls. He stated that the JV is currently evaluating participation in a special PJM auction for new generation, depending on its structure and alignment with the company's risk profile, but not the normal Base Residual Auction. Sorgi preferred not to disclose specific alternative generation technologies but indicated they aim for online dates in the 2028-2029 timeframe, faster than larger combined cycle gas turbines.

Jeremy Tonet asked about the timing of potential contract announcements for the GenCo joint venture, whether the JV would participate in PJM's Base Residual Auction or special auctions, and details on the alternative generation solutions being considered for data centers.

Answer

Vince Sorgi, PPL President and CEO, stated that a significant JV contract announcement would likely occur off-cycle, not necessarily during an earnings call. He indicated that the JV is unlikely to participate in normal PJM auctions but might consider special auctions depending on the final structure and risk profile. Sorgi preferred not to disclose specific alternative generation technologies but noted they aim for online dates in the 2028-2029 timeframe, faster than larger combined cycle units.

Jeremy Tonnet inquired about the Pennsylvania data center pipeline, specifically the 20.5 gigawatts in advanced stages, asking for more details on its sizing and the cadence for formalizing parts of the pipeline. He also asked for incremental thoughts on the Blackstone joint venture and potential news flow, and sought clarification on whether the Mill Creek 2 O&M number quoted was an annualized figure.

Answer

President and CEO Vince Sorgi referred to slide 25 for ramp rates, highlighting the phenomenal growth due to PPL's strong transmission grid, speed to market, and cost competitiveness. He emphasized that the 20.5 GW projects have signed ESAs or LOAs with significant financial commitments. Regarding the Blackstone JV, Mr. Sorgi noted extensive activity with hyperscalers and developers, indicating that while no announcement was imminent, discussions were shifting towards shoring up generation. For Mill Creek 2, he clarified that the $30 million O&M and $40 million CapEx figures represented total incremental costs between now and 2030.

Jeremy Tonnet inquired about the details, sizing, and formalization cadence of the 20.5 GW data center pipeline in Pennsylvania. He also asked for an update on the Blackstone joint venture and any expected news flow, and sought clarification on the Mill Creek 2 O&M figures.

Answer

President and CEO Vince Sorgi referred to slide 25 for ramp rates, emphasizing the strength of PPL's transmission grid, speed to market, cost-competitiveness, and the significant financial commitments (ESA/LOA) from counterparties for the 20.5 GW. For the Blackstone JV, Mr. Sorgi noted extensive activity with hyperscalers and developers, acknowledging the complexity of deals but highlighting increasing interest from data centers in securing generation. He clarified that the Mill Creek 2 O&M and CapEx figures represented total increases between now and 2030.

Jeremy Tonet inquired about the $17-19 billion capital expenditure needed for Pennsylvania data centers, the potential solutions between the new JV and regulated generation, how power risk would be managed in the JV, and the company's future equity needs.

Answer

President & CEO Vincent Sorgi clarified the $17-19 billion is an estimate for PPL's service territory alone, contingent on 14.5 GW of data center projects materializing. He stated the need would likely be met by a combination of the JV, IPPs, and potentially PPL Electric Utilities. Sorgi emphasized the JV's focus on regulated-like, long-term contracts to maintain PPL's risk profile. EVP & CFO Joseph Bergstein added that the ATM program has been an effective means for issuing equity and they are nearing their 2025 target.

Jeremy Tonet inquired about the $17-19 billion capital expenditure need in Pennsylvania for data centers, PPL's preference between its Blackstone JV and regulated generation, potential market share, the allocation of power risk within the JV, and future equity issuance plans.

Answer

President & CEO Vincent Sorgi explained the $17-19 billion CapEx estimate is for PPL's service territory alone, driven by 14.5 GW of advanced-stage data center projects. He stated that a combination of the JV, IPPs, and PPL Electric Utilities would likely meet this need. Sorgi emphasized the JV's regulated-like, long-term contracted model to avoid merchant risk, a structure supported by Blackstone. EVP & CFO Joseph Bergstein added that the At-The-Market (ATM) program remains a cost-effective way to issue equity and that PPL is approaching its full-year target.

Speaking on behalf of Jeremy Tonet, an analyst asked about PPL's exposure to potential trade tariffs, specifically how they might impact the planned 400 megawatts of battery storage in Kentucky. They also inquired about a potential data center project in Oldham County, Kentucky, and its implications for future generation needs.

Answer

CFO Joe Bergstein addressed the tariff question, noting that for the two battery projects, one is already under construction where they are working to minimize impacts, and for the second, there is time to work with vendors and potentially benefit from increased U.S. production. CEO Vincent Sorgi commented on the Oldham County project, confirming it is part of the 6 GW of interest in the queue and that PPL is working with the developer, viewing it as a positive indicator of continued demand.

Jeremy Tonet from JPMorgan Chase & Co. questioned the impact of the increased capital plan on customer bills, the outlook for Kentucky regulatory filings, and the expected cadence of the 6-8% EPS growth.

Answer

President and CEO Vince Sorgi reiterated a focus on affordability, stating that O&M savings help fund capital investments and that bill increases are expected to stay within the rate of inflation. He characterized the upcoming Kentucky CPCN filing as straightforward and anticipates linear EPS growth, with the 2025 forecast representing a 7% increase from the 2024 base.

An analyst from JPMorgan asked about the expected timeline for formal data center deal announcements and the company's relationship with the newly composed Kentucky Public Service Commission (KPSC).

Answer

President and CEO Vincent Sorgi projected that the first major data center announcement could happen by the end of 2024, potentially triggering more announcements. He described the relationship with the KPSC as 'incredibly constructive' and expects this to continue, attributing it to the company's thorough and well-supported regulatory filings.

Jeremy Tonet asked about the parameters driving the high and low ends of the earnings guidance, including equity ratio assumptions, and how the significant growth in front of the company might impact future bill trajectory, potentially leading to downward pressure, particularly for the 2029-2030 period.

Answer

CFO David P. Poroch explained that guidance is built on exhaustive scenarios and bounding exercises, with durability derived from contracts, population in-migration, customer growth, and business expansion, while also noting upside potential. Chairman, President, and CEO Christopher C. Womack reiterated the company's focus on rate stability in Georgia and Alabama through 2027 and 2028, emphasizing that large load contracts provide opportunities for downward pressure on rates for existing customers, aiming for continued rate stability into the future.

Jeremy Tonet inquired about the parameters driving the high and low ends of Southern Company's guidance, including equity ratio assumptions, and sought further insights into affordability questions, specifically how growth might impact future bill trajectory and rate stability for 2029 and 2030.

Answer

David P. Poroch, CFO, explained that the guidance is built on exhaustive scenarios and bounding exercises, providing durability and visibility from signed contracts, population in-migration, and economic expansion. Christopher C. Womack, Chairman, President and CEO, emphasized the focus on rate stability in Georgia and Alabama through 2027 and 2028, and the opportunity for downward pressure on rates for existing customers due to large load project pricing.

Jeremy Tonet from J.P. Morgan asked for the timeline on investment opportunities in Alabama and Mississippi, visibility on FERC-regulated gas pipeline expansions, and the company's strategy regarding the use of equity forwards for its financing needs.

Answer

CEO Chris Womack noted advanced discussions for projects in Alabama and Mississippi are ongoing, while CFO Dan Tucker added that investments are already occurring to serve over 1,000 MW of data centers. Tucker also explained that gas pipeline expansion potential is tied to new generation builds and load growth in the region. David Poroch, SVP & incoming CFO, stated that the ATM program functions as a forward, locking in prices for future delivery, and affirmed they will continue to use flexible tools to meet equity needs.

Jeremy Tonet asked about potential levers to manage customer bills in the upcoming Georgia Power rate case and inquired about the company's outlook on the IRA, particularly regarding the impact of potential changes to transferability.

Answer

Chairman, President and CEO Chris Womack acknowledged that factors like large load pricing, fuel cost recovery roll-offs, and storm cost recovery are all considerations for the rate filing, but it's too early for specifics. Chief Financial Officer Dan Tucker stated that the company is not heavily reliant on tax credit transferability, estimating a potential impact of only 10-20 basis points to FFO to debt if it were unavailable. Chris Womack added that they continue to advocate for the value of these credits to policymakers.

Jeremy Tonet requested more color on data center growth in Alabama and Mississippi and sought updated thoughts on new nuclear development, particularly regarding risk mitigation.

Answer

CEO Chris Womack confirmed significant data center activity is migrating westward, citing the Meta project in Alabama and the Compass project in Mississippi. On nuclear, he stated emphatically, 'This country needs more nuclear,' and stressed that risks must be mitigated, whether through federal action or private participation, to enable future development. He highlighted the value and efficiency gains demonstrated by the Vogtle project.

Jeremy Tonet asked for details on the potential for nuclear uprates across the legacy fleet, the impact of demand on coal retirement timelines, the viability of carbon capture, and the specifics of the Southern Natural Gas pipeline expansion.

Answer

CFO Dan Tucker noted that while historically uneconomic, IRA benefits make uprates at their six legacy nuclear units more viable, though still a significant investment. CEO Chris Womack stated EPA rules will inform coal retirements and that the company's research has shifted to carbon capture for natural gas, which he sees as essential. Regarding the pipeline, Tucker confirmed it's a late-decade project where Southern would be a large participant.

Jeremy Tonet asked about Targa's resilient double-digit growth outlook for 2026 compared to industry peers, and the confidence in future above-average growth post-2026. He also inquired about the drivers behind the higher $2.5 billion mid-cycle capital expenditure, suggesting an expectation of even better growth.

Answer

Matthew Meloy, CEO, attributed Targa's strong 2026 growth to its extensive Permian footprint, strong producer relationships, existing customer activity, and commercial success in 2024-2025, expressing increased positivity for 2027 and beyond. Jen Kneale, President, clarified that the updated $2.5 billion multi-year average growth capital post-Speedway reflects a larger base, an assumption of 2.5-3 plants per year, incremental field/compression/residue spending, and carbon capture investment, all supported by robust existing contracts and commercial wins.

Jeremy Tonet inquired about Targa's resilient double-digit growth outlook for 2026, contrasting it with industry retrenchment, and sought insights into the drivers of this strength and confidence in future above-average growth beyond 2026. He also asked for clarification on the higher $2.5 billion mid-cycle capital expenditure, its drivers, and whether it signals expectations for even better growth.

Answer

CEO Matthew Meloy attributed Targa's strong growth to its extensive Permian footprint, robust producer relationships, and significant commercial success in 2024 and 2025, which enhances existing dedicated acreage growth. President Jen Kneale elaborated on the increased capital expenditure, explaining it reflects a larger operational base, continued commercial success, and incremental spending for field, compression, residue projects, and carbon capture, indicating a strong free cash flow generation post-Speedway completion.

Jeremy Tonet inquired about the factors driving Targa Resources Corporation's strong performance and guidance upgrade, specifically asking if it was due to more wells, better productivity, or other elements. He also sought insight into the medium-term Permian growth outlook based on producer forecasts.

Answer

President Jen Kneale attributed the strong 2025 performance to the materialization of a forecasted back-half volume ramp, consistent or better than initial expectations, driving record Permian NGL transportation and fractionation volumes. She also noted incremental natural gas and NGL marketing opportunities from market volatility. CEO Matt Meloy emphasized the confidence in multi-year Permian growth, underpinned by bottom-up forecasts from high-quality producers across Targa's best-in-class footprint.

Jeremy Tonet asked about the factors driving Targa Resources Corporation's adjusted EBITDA towards the top end of its guidance range, inquiring whether it was due to more wells, better productivity, or other elements. He also asked for a medium-term growth outlook for the Permian, considering key producers' long-dated forecasts.

Answer

Jen Kneale, President, explained that the strong performance was primarily due to the forecasted back-half volume ramp materializing as expected or better, driving record Permian NGL transportation and fractionation volumes. She also noted incremental natural gas and NGL marketing opportunities from market volatility. Matt Meloy, CEO, added that bottom-up forecasts from high-quality producers in Targa's Permian footprint underpin confidence for continued multi-year growth, even with a flat to modestly declining rig count.

Jeremy Tonet requested more specific data points to support management's confidence in an even stronger operational position heading into 2026.

Answer

CEO Matthew Meloy provided concrete volume data, stating that after a strong ramp in Q2, volumes in July alone increased by another processing plant's worth of gas. He noted this momentum continued into August and that the new Pembroke II plant would provide further relief to their highly utilized Midland system, strengthening their exit rate for the year.

Jeremy Tonet requested more specific data points to support management's confidence in an even stronger operational position heading into 2026.

Answer

CEO Matthew Meloy highlighted a significant volume ramp late in Q2 that accelerated in July, with volumes increasing by a 'processing plant worth of gas.' He explained this momentum, combined with the new Pembroke II plant coming online to relieve system constraints, provides a strong exit rate for 2025 and a robust start to 2026.

Jeremy Tonet asked about Targa's differentiation from peers regarding producer activity amid oil price volatility and the outlook for 2026 CapEx in relation to share buybacks.

Answer

President Jennifer Kneale explained that Targa feels differentiated due to its premier G&P footprint in the best areas of the Midland and Delaware basins, serving well-capitalized producers with multi-year drilling programs. She noted this resilience was proven in 2020. Regarding 2026 CapEx, Kneale emphasized that a strong balance sheet is paramount, allowing for opportunistic buybacks as seen in Q1. Future spending will be driven by activity levels, particularly the need for gathering and compression, but the company is well-positioned with its current project slate.

Jeremy Tonet inquired about Targa's forward outlook, specifically the drivers behind the back-half weighted growth expected in 2025 and the resulting trajectory for 2026. He also asked if the $100 million in 2024 optimization opportunities could represent potential upside to the 2025 guidance.

Answer

CEO Matt Meloy confirmed a stronger multiyear growth outlook, attributing the 2025 back-half weighting to producer forecasts and the timing of new commercial deals, and noted that 2026 could see even stronger growth than 2025. President Jen Kneale added that while optimization opportunities are not formally baked into guidance, they represent potential upside, similar to what materialized in 2024.

Jeremy Tonet asked for insights into producer conversations regarding activity levels, how Targa's New Mexico position provides a competitive advantage, and the outlook for future gas egress needs from the Permian basin.

Answer

Executive Matt Meloy noted that while producer activity is mixed, gas volumes are broadly exceeding expectations due to higher well productivity. He credited the 2022 Lucid acquisition for providing a best-in-class Delaware footprint. Executive Patrick McDonie reinforced this, citing commercial success from the integrated system. Executive Robert Muraro stated Targa supports all new egress projects and expects the need for new pipes to accelerate.

Jeremy Tonet with JPMorgan asked for a more detailed breakdown of Western Midstream's low- to mid-single-digit EBITDA growth, specifically inquiring about the expected growth rate for the water business segment. He also questioned Western Midstream's competitive positioning and optimal scale within an industry experiencing significant midstream consolidation.

Answer

Oscar Brown, CEO, indicated that the water business is anticipated to grow at a higher rate than both natural gas and crude oil for the next several years, while the core gas and oil assets are expected to grow around 2-3% on average. He affirmed that Western Midstream is currently at a good size, emphasizing that scale is important, particularly in the water business where WES holds a significant lead. Oscar Brown also noted that current and future projects within their G&P competency are manageable at the company's existing scale.

Jeremy Tonet questioned Western Midstream's competitive position and need for further scale in an industry marked by significant midstream consolidation.

Answer

Oscar Brown, CEO of Western Midstream Partners, asserted that WES is at a good size and can grow, emphasizing the importance of scale, particularly in the water business where WES is an order of magnitude larger than its next competitor. He clarified that WES focuses on gathering, processing, and treating (GMP) projects, which are well within its current operational capacity and do not necessitate competing in long-haul pipelines.

Jeremy Tonet sought insights into the 2026 business outlook, specifically how the core business (excluding Aris) is trending and the potential impact of commodity prices.

Answer

CFO Kristen Shults projected overall product growth across all three streams but noted that continued commodity price weakness in 2025 could lead to declines in price-sensitive basins like PRB and DJ in 2026. She highlighted the Delaware Basin's continued strength and the expected continuation of cost savings into 2026.

Jeremy Tonet asked about Western Midstream Partners' (WES) strategy for opportunistic inorganic deals, inquiring if there are specific portfolio gaps they aim to address and the general parameters for such interests. He also requested insights into the business trends for 2026, excluding the Aris acquisition, particularly concerning volume metrics and commodity price sensitivity across different basins.

Answer

CEO Oscar Brown reiterated that WES's financial parameters for inorganic deals remain unchanged. He indicated a preference for opportunities that offer synergies through existing footprint or customer relationships, with New Mexico being an obvious area of interest. Brown noted a bias towards gas opportunities, given WES's strong position in Delaware Basin water. CFO Kristen Shults projected overall product growth across all three streams for 2026. She cautioned that continued commodity price weakness in late 2025 and into 2026 could lead to modest declines in commodity-sensitive basins like the Powder River Basin (PRB) and DJ Basin, while the Delaware Basin is expected to remain strong. Cost-cutting initiatives are also anticipated to continue contributing savings in 2026.

Jeremy Tonet of JPMorgan Chase & Co. questioned whether WES has seen changes in producer forecasts and how the company is positioned for a potential market downturn.

Answer

Executive Kristen Shults stated that WES has reaffirmed its guidance, as conversations with producer customers have not indicated any material changes to forecasts for the year. She emphasized that in a downturn, the first lever WES would pull is reducing capital expenditures. Shults also highlighted the company's strong position, with leverage below 3x and significant operational efficiencies implemented since the COVID era, making WES resilient for a potential cyclical turn.

Jeremy Tonet of JPMorgan asked for an update on producer customer conversations amid recent market volatility and CapEx cuts, and how WES might perform in a hypothetical scenario of lower oil prices and flat Permian growth.

Answer

CEO Oscar Brown confirmed that the commercial team is in real-time contact with customers and that while producers are running scenarios, WES has not seen changes significant enough to alter its guidance. In a lower-growth scenario, Brown explained that WES's cash flows are protected by its contract structures. A pullback in growth projects would reduce CapEx, freeing up capital for other opportunities like M&A or buybacks, positioning the company to operate from a position of strength.

Jeremy Tonet from JPMorgan Chase & Co. questioned the recency of discussions with producer customers amid industry-wide CapEx cuts and asked how WES would perform in a lower commodity price scenario with flat Permian growth.

Answer

CEO Oscar Brown assured that conversations with customers are happening in real-time and that, to date, their customers' plans have not changed enough to alter WES's guidance. In a hypothetical low-price, flat-growth scenario, Brown explained that the impact would be more on the growth outlook than on free cash flow, potentially freeing up capital for M&A or buybacks and allowing WES to leverage its strong financial position.

Jeremy Tonet asked for more detail on the translation of DT Midstream's capital investments to EBITDA growth, specifically regarding the "elevated organic growth" projected post-2027 on slide 10, and its expected quantity. He also pressed for a potential "floor" on this elevated growth rate, beyond the current 5-7% guidance.

Answer

David Slater, Executive Chairman and CEO, explained that the updated $3.4 billion backlog, with 75% allocated to the FERC-regulated pipeline segment, will "supercharge the back end of our five-year plan" due to the 2.5-3-year capital investment to EBITDA generation cycle. He refrained from capping the growth rate due to the fluid and robust market opportunities, stating that the arrow is "up" and the company is bullish on fundamentals. Mr. Slater agreed with Jeremy Tonet's suggestion that the floor for elevated growth would be "at least 7%+".

Jeremy Tonet asked about the translation of capital spending to EBITDA growth, specifically seeking more detail on the 'elevated organic growth' projected post-2027 and its potential quantity. He then pressed for a 'floor' on this elevated growth, suggesting it might be at least 7% or higher.

Answer

Executive Chairman and CEO David Slater explained that the updated backlog fuels EBITDA growth, with 75% of capital deployed into the FERC-regulated pipeline segment, which has a 2.5-3 year capital-to-EBITDA generation cycle, thus supercharging the back end of the five-year plan. He refrained from capping the number due to market fluidity but indicated a bullish outlook. When asked about a floor, Mr. Slater agreed with Jeremy's suggestion of at least 7% without adding further specifics.

Jeremy Tonet asked about DT Midstream's network potential to support growing data center demand for gas-fired generation in Louisiana, the growth trajectory of Haynesville volumes, implications for LEAP expansions, Western Haynesville potential, and upstream Chicago opportunities via Vector, NEXUS, or Midwestern pipelines, including gas storage options.

Answer

David Slater (President and CEO, DT Midstream) confirmed robust demand in Louisiana from data centers and LNG, stating DTM is aggressively pursuing these markets. He expressed excitement for Western Haynesville's long-term LNG supply potential and noted Q3 Haynesville volume ramp was earlier than expected due to producer nimbleness, anticipating similar Q4 volumes. For Chicago, he highlighted positive Upper Midwest fundamentals, Vector's active 400 MMcf/d expansion discussions, and DTM's exploration of Midwestern and NEXUS pathways, along with storage, to offer 'wellhead to market' solutions.

Jeremy Tonet inquired about DT Midstream's network potential to support growing data center demand in Louisiana for gas-fired generation, the growth trajectory and sustainability of Haynesville volumes, including implications for LEAP expansions and Western Haynesville development, and sought clarification on upstream Chicago opportunities via Vector, Nexus, or Midwestern pipelines, along with details on gas storage locations.

Answer

President and CEO David Slater confirmed robust demand growth in Louisiana from data centers and LNG, stating DT Midstream is aggressively pursuing these opportunities and expects to secure its fair share. He noted excitement for Western Haynesville as an emerging play adding significant runway for long-term LNG sourcing, expecting Q4 Haynesville volumes similar to Q3 due to producer nimbleness. For upstream Chicago, Slater highlighted Vector's active 400 million a day expansion discussions, expected open season within a month, and the potential for Midwestern and Nexus to bring incremental supply, offering a 'wellhead to market solution' in the upper Wisconsin region.

Jeremy Tonet of JPMorgan Chase & Co. asked about the changing regulatory and power demand environment in New York and its potential impact on the Millennium expansion project. He also inquired about producer activity in the Haynesville shale, specifically how private operators are responding to price signals and driving the basin's production ramp.

Answer

President & CEO David Slater confirmed a positive shift in New York, noting strong power demand and a growing recognition of the need for gas infrastructure, but emphasized that state support is a critical gating item for a Millennium expansion FID. On the Haynesville, Slater explained that private producers have been quicker to increase activity, boosting volumes on DTM's system, and he expects public producers to follow suit as market conditions and pricing improve.

Jeremy Tonet inquired about the recently announced open season for the Millennium pipeline, asking for color on its outlook and whether it's included in the current project backlog. He also asked for perspective on whether sentiment for energy infrastructure is improving at the state and local levels, and questioned the opportunities stemming from the recent Woodside LNG FID.

Answer

President and CEO David Slater described the Millennium open season as a response to strong inbound interest and a market realization of a material capacity shortage in New York and New England. He confirmed this project is not yet in the backlog, indicating the unadjusted backlog is growing. Slater affirmed a positive shift in sentiment due to renewable project delays, reliability concerns, and a public recognition of the need for affordable domestic energy. He also noted the Woodside FID is very positive, as the associated header system is designed to connect directly into DTM's LEAP pipeline.

Jeremy Tonet asked for insights on the read-through from the 2024 guidance increase to 2025, potential operating leverage, and opportunities related to Louisiana's Henry Hub connectivity.

Answer

David Slater, President and CEO, explained that the portfolio's durability drove the 2024 guidance increase. He noted that the new LEAP Phase 4 expansion signals renewed growth interest in the Haynesville for 2025. Slater emphasized that DTM's highly interconnected 'wellhead to water' system is designed to meet customer demand for access to Gulf Coast and LNG markets, addressing concerns about hub connectivity.

Jeremy Tonet asked for more details on the timeline and size of opportunities related to smart meters and undergrounding initiatives in Houston. He also inquired about the sustainability of O&M reductions, given the significant accomplishments already achieved by the company.

Answer

Christopher Foster, EVP and CFO, stated that a new smart meter program filing is expected in Q4, which will provide CapEx upside. An update on the downtown revitalization effort (relocating substations) is anticipated in the second half of the year. Strategic undergrounding work for the system resiliency plan begins this year, with the next plan filing in 2028, feeding the back half of the decade. Jason P. Wells, Chair, President, and CEO, believes they are in the 'early innings' for O&M reductions, citing 100 million outage minutes saved in 2025 and ongoing automation as significant tailwinds.

Jeremy Tonet asked for more details on the timeline and opportunity size for smart meters and undergrounding initiatives in Houston, and the sustainability of O&M reductions given past accomplishments.

Answer

Christopher Foster, EVP and CFO, outlined that a new smart meter program filing is expected in Q4, an update on downtown revitalization in H2, and the next system resiliency plan filing in 2028. Jason P. Wells, Chair, President, and CEO, believes O&M reduction is still in early innings, citing 100 million outage minutes saved last year and ongoing automation efforts as significant tailwinds.

Jeremy Tonet asked for more details on how the Ohio Gas LDC asset sale would be credit accretive and its potential impact on earnings over time. He also questioned the role and value of the seller's note in facilitating the capital plan and managing future earnings.

Answer

Chris Foster, CFO, stated the sale is directly beneficial to the financing plan and earnings, reducing cash lag by 25%-30%. He explained that proceeds would be redeployed into higher-growth Texas electric and gas businesses, with accelerated CapEx replacing the Ohio rate base by early 2027. Foster described the seller's note as a straightforward instrument with a 6.5% annual coupon for 2027 on over $1 billion, settling quarterly, providing clarity and a helpful component to the plan.

Jeremy Tonet of JPMorgan Chase & Co. questioned if the finalization of SB 6 has impacted interconnection interest, asked for more details on the Houston revitalization work, and inquired about potential upward pressure on the EPS CAGR from increased CapEx without new equity.

Answer

CEO Jason Wells stated that SB 6 has not changed the velocity of interconnection requests. He described the Houston revitalization as a multi-decade project for the region, with CenterPoint's work being front-end loaded over the next five to six years to modernize the underground network. Regarding EPS, Wells acknowledged more tailwinds than headwinds and confirmed a comprehensive update on earnings guidance would come with the new ten-year plan.

Jeremy Tonet of JPMorgan Chase & Co. questioned if SB6 has impacted interconnection interest, asked for more details on the Houston revitalization project, and queried if higher CapEx without new equity implies upward pressure on the EPS growth rate.

Answer

CEO Jason Wells stated that SB6 has not changed the velocity of interconnection requests. He described the Houston revitalization as a multi-decade project where CenterPoint will play a key role in upgrading the downtown underground network. Regarding EPS, Wells acknowledged more tailwinds than headwinds, citing constructive regulatory outcomes, and confirmed an earnings guidance update would be provided later in the quarter.

Jeremy Tonet from JPMorgan Chase & Co. raised questions about potential risks from tariffs on equipment costs and the impact of a potential recession across CenterPoint's service territories.

Answer

CEO Jason Wells stated that tariff risk is low due to primarily domestic sourcing. He described the Houston economy as diversified and potentially benefiting from onshoring, insulating it from recessionary pressures. CFO Christopher Foster added that as a wires-focused company and a cash taxpayer, CenterPoint is well-positioned against potential federal tax policy changes and has minimal exposure to transferability risks.

Jeremy Tonet requested an update on the mobile generation transaction discussions with stakeholders, the potential impact of Texas Senate Bill 6 on large load charges, and financial guardrails for the transmission CapEx opportunity based on the upcoming voltage standard decision.

Answer

CEO Jason Wells stated that dialogue on the mobile generation solution is constructive, with a resolution expected in the coming month. Regarding SB 6, he noted it's a cost allocation issue and the company is working with all parties for a fair outcome. He clarified that the $3B+ transmission CapEx estimate is based on a 345kV standard, and a 765kV standard would push that figure "well north" of $3B.

Jeremy Tonet inquired about the trend in stakeholder conversations in Texas following the GHRI Phase 1 work and asked for a breakdown of the offsets allowing the company to reaffirm its 2024 guidance despite a Q3 O&M drag.

Answer

CEO Jason Wells reported that stakeholder conversations are improving, with appreciation for the progress on grid resiliency and communications. CFO Christopher Foster explained the 2024 guidance is supported by consistent benefits from capital recovery trackers, a Q4 benefit from O&M work being accelerated into Q3, and a favorable year-over-year comparison to Q4 2023, which had elevated O&M.

Jeremy Tonet sought clarification on the financing components for the combined cycle natural gas turbine (CCGT) project, specifically the breakdown of the remaining 50% after the Department of Energy loan. He also asked about earned returns on equity (ROEs), identifying jurisdictions with the biggest gap versus allowed returns, and FirstEnergy's perspective on the evolving PJM auction and its potential future role in regulated generation.

Answer

Brian Tierney, CEO and President, clarified the CCGT financing: 50% from a DOE loan, 15% from cash recovery during construction, and 35% from new equity. He explained that earned ROEs lag in jurisdictions with significant incremental investments, necessitating rate cases. Jon Taylor, Senior Vice President and Chief Financial Officer, added that 75% of investments are in formula rate programs, driving most growth. On PJM and regulated generation, Mr. Tierney noted the ongoing stakeholder process, focusing on affordability and resource adequacy. He highlighted West Virginia as the clearest path for regulated generation investment, given Ohio's legislative restrictions and challenges in New Jersey and Maryland, while remaining open to considering it in Pennsylvania if desired.

Jeremy Tonet sought clarification on the financing components for the CCGT project (50% DOE loan, and the remaining 50%). He also asked about identifying jurisdictions with the largest gap between earned and allowed ROEs and the key focus areas for improving earned returns. Finally, he inquired about FirstEnergy's thoughts on the evolution of the PJM auction and its potential role in future regulated generation.

Answer

Brian Tierney (CEO and President) clarified the CCGT financing: 50% DOE loan, 15% cash recovery during construction, and 35% new equity. He explained that earned ROE gaps are largest in states where significant incremental investments are made, necessitating regular rate cases. Jon Taylor (SVP and CFO) added that 75% of investments are in formula rate programs, driving most growth. Brian Tierney discussed the PJM stakeholder process, focusing on affordability and resource adequacy. He noted that regulated generation opportunities are primarily in West Virginia, given Ohio's legislation and challenges in New Jersey/Maryland, with Pennsylvania as a potential future consideration.

Jeremy Tonet asked about FirstEnergy's appetite to build new generation in other PJM states, beyond West Virginia, if the proper foundational support existed, and the nature of ongoing conversations. He also sought more details on the backdrop of the Ohio base rate case and what a multi-year rate plan filing might entail.

Answer

Brian Tierney, Chair, President, and CEO, stated that West Virginia is currently the only state with a clear window and supportive regulatory environment for new generation, making building in other states speculative at this time. For Ohio, he expects a base rate case order in Q4 2025, after which FirstEnergy plans to immediately file a multi-year rate plan to ensure timely recovery of investments made since the May 2024 test year, given the absence of trackers and riders.

Jeremy Tonet asked about FirstEnergy's appetite to build new generation in other PJM states, assuming proper foundational support, and any new developments in those discussions. He also sought more details on the Ohio base rate case and the plan to file a multi-year rate plan 'as soon as practical' after the order.

Answer

Brian Tierney, Chair, President, and CEO, stated that West Virginia is the only state with a clear window for new generation due to supportive government, and building in other states would be speculative. For Ohio, he expects a base rate case order in Q4, after which FirstEnergy will immediately file a multi-year rate plan to ensure timely recovery of investments made since the May 2024 test year, given the absence of trackers and riders.

Jeremy Tonet inquired about the factors driving the pace of data center negotiations and the potential scope for incremental generation needs in West Virginia ahead of the upcoming Integrated Resource Plan (IRP) filing.

Answer

President, CEO & Chairman Brian Tierney explained that the pace of data center development is dictated by customer demand from developers who have secured land and are ready to sign contracts. Regarding West Virginia, Tierney indicated the IRP will likely highlight the need for new dispatchable generation, potentially over 1,000 megawatts of gas-fired capacity over the next decade to support reliability and economic growth.

Jeremy Tonet sought more detail on the levers available to manage the Ohio regulatory situation and asked for color on which parties are involved in the settlement discussions.

Answer

Brian Tierney, Chair, President and CEO, emphasized that the investment period in question is limited and manageable. Jon Taylor, SVP and CFO, added that they have significant flexibility to redeploy capital, citing opportunities in Grid Mod II, the PA LTIP, and transmission projects in Maryland and West Virginia. Regarding settlement, Tierney declined to name specific parties but reiterated that discussions were productive and involved all key parties initially.

Jeremy Tonet questioned the firmness of the 'no equity issuance' plan, asking what events could change this stance. He also requested an update on customer bill headroom following recent PJM and New Jersey auction results.

Answer

Executive K. Taylor explained that the company targets a 100-basis-point cushion in its credit metrics and that significant incremental capital, such as for new data centers, could be funded with a portion of equity. Executive Brian Tierney addressed bill headroom by stating that FirstEnergy's customer bills are at or below peers and represent less than 5% of the customer's share of wallet, providing a relative position of strength.

Jeremy Tonet from J.P. Morgan Securities asked for more color on the trends in the 'other 40%' of Plains' business outside the Permian, including volumes and EBITDA, and sought further details on the sensitivity of a 0.1 MMbpd change in total Permian production to the business.

Answer

Jeremy Goebel, EVP and Chief Commercial Officer, described the 'other 40%' as largely flat and stable, with excitement around Canadian expansion opportunities (Rainbow, Rangeland), consistent high throughput at Cushing, and South Texas as an extension of the Permian. He noted that the 0.1 MMbpd Permian sensitivity ($10-$15 million) would likely remain in a tight band due to the business's size, with potential impact on long-haul margins as differentials widen.

Jeremy Tonet from JPMorgan Chase & Co. asked for more color on the trends in volumes and EBITDA for the 40% of the business outside the Permian, and how the sensitivity of a 100,000 barrels per day change in Permian production ($10-$15 million impact) might evolve, considering linearity and differential interplay.

Answer

Jeremy Goebel, EVP and Chief Commercial Officer, described the non-Permian business as largely stable and contracted, with excitement around Canadian expansion opportunities (Rainbow, Rangeland), high Cushing throughput, and South Texas's wellhead gathering. He clarified that the $10-$15 million sensitivity for 100,000 barrels/day change in Permian production is likely to remain in a tight band due to the business's size, with potential impact more on long-haul margins as differentials widen.

Jeremy Tonet asked for more detail on the M&A strategy, comparing a mature Mid-Con asset with a Permian asset offering organic growth. He also requested a macro view on crude oil prices and key growth basins.

Answer

Jeremy Goebel, an executive, used the Stroud and CVR deals as examples of Mid-Con acquisitions that create long-term platforms and stable cash flow. Willie Chiang, Chairman and CEO, highlighted the system's flexibility. On the macro outlook, Goebel described it as constructive, with policy and tight inventories supporting prices. He identified the Permian, Canada, and pockets in the Rockies and Eagle Ford as key growth areas where Plains is well-positioned.

Jeremy Tonet asked for the company's current thoughts on entering the water disposal business in the Permian and for an update on the strategic outlook and growth initiatives for its Canadian platform.

Answer

Chairman & CEO Willie Chiang stated that while Plains is not currently in the water business, it would evaluate any opportunity that offers clear synergies with its existing asset base. For the Canadian platform, Chiang highlighted the strategic focus on core areas and completing the Fort Saskatchewan expansion, which is key to enhancing the durability of fee-based cash flows. He noted they remain open to synergistic bolt-ons in Canada.

Jeremy Tonet questioned the depth of the M&A opportunity set for bolt-on acquisitions and asked for more color on customer conversations regarding tightening Permian egress capacity.

Answer

CEO Willie Chiang described the bolt-on M&A environment as "target-rich" due to Plains' unique ability to capture synergies, and noted they will remain disciplined on any larger-scale consolidation. Executive Jeremy Goebel characterized customer dialogues on Permian egress as "constructive," stating that Plains is being patient and retaining some capacity to capture value as the market tightens.

Jeremy Tonet requested more color on the other 40% of the business (non-Permian), including volume and EBITDA trends. He also asked about the sensitivity of the business to a 100,000 barrels per day change in total Permian production, and if this sensitivity is linear or could inflect.

Answer

Jeremy Goebel, Executive Vice President and Chief Commercial Officer, provided an overview of the other 40% of the business: Canada shows expansion opportunities but is largely flat; Rockies, north, and west of Cushing are stable and contracted; Cushing throughput is at all-time highs; South Texas is an extension of the Permian with integration opportunities; and assets east of Cushing are being pursued for longer-term contracting. Regarding Permian sensitivity, he stated that the $10-$15 million impact per 100,000 bpd change likely still applies due to the business's size, with potential for more impact on long-haul margins if differentials widen.

Jeremy Tonet asked about the potential impacts of recent geopolitical developments in Venezuela on Plains All American, including how flows on assets, utilization, or asset repurposing might be affected. He also inquired about the current stage of consolidation within the crude oil infrastructure industry, asking Willie Chiang for his perspective on what 'inning' the industry is in.

Answer

Jeremy Goebel, Executive Vice President and Chief Commercial Officer, explained that initial Venezuelan oil sales widened Canadian and other heavy sour differentials, creating quality optimization opportunities. Longer-term, substantial investment and time would be needed for repurposing pipelines, but Plains is monitoring the situation. Willie Chiang, Chairman and CEO and President, stated that while Plains is focused on executing recent large transactions, more consolidation opportunities are expected, particularly in key basins like the Permian and Western Canada, with a disciplined financial approach.

Jeremy Tonet asked about CMS Energy's expectations or thoughts regarding the upcoming state of the state address, given that utilities have been a topic of discussion in similar addresses in other states.

Answer

Garrick Rochow, President and CEO, emphasized CMS Energy's 23-year track record of consistent financial performance, attributing it to Michigan's energy law, staggered commission terms, and bipartisan support. He highlighted CMS Energy's significant role as a large investor, property taxpayer, and job provider in the state. Mr. Rochow explained their strategy of engaging with gubernatorial candidates as solution providers, offering policy recommendations to enhance affordability, which fosters a collaborative environment and contributes to successful outcomes.

Jeremy Tonet asked about CMS Energy's expectations for the upcoming state of the state address, particularly given that utilities have been a prominent topic in similar addresses in other states.

Answer

Garrick Rochow (CEO, CMS Energy) emphasized CMS Energy's 23-year track record of consistent financial performance, attributing it to Michigan's stable energy law, staggered commissioner terms, and the company's significant role as a large investor, taxpayer, and job provider in the state. He highlighted their proactive approach of engaging gubernatorial candidates with policy solutions to enhance affordability, positioning CMS Energy as a partner in addressing state-level issues.

Jeremy Tonet inquired about the timeline for integrating the $25 billion+ capital expenditure opportunities into the plan and the potential mix of gas plant types (simple or combined cycle) for future capacity needs.

Answer

Garrick Rochow, President and CEO, indicated that more details on the capital plan would be provided in the Q4 call, anticipating increased investments in electric reliability, renewable energy (8 GW solar, 2.8 GW wind), and Integrated Resource Plan (IRP) related projects, including battery storage and natural gas capacity. He confirmed the company is evaluating the mix of simple and combined cycle gas plants to meet both retiring facility needs and existing/future load growth.

Jeremy Tonet from JPMorgan Chase & Co. asked about the timeline for integrating the additional $25+ billion in capital expenditure opportunities into CMS Energy's five-year plan, and sought details on the potential gas plant capacity, specifically whether it would be simple or combined cycle and considerations for turbine procurement.

Answer

President and CEO Garrick Rochow indicated that portions of the $25+ billion in opportunities, including electric reliability, renewable energy, and IRP-related investments (battery storage, natural gas capacity), would be evident in the Q4 call's updated five-year plan. He noted that the specific mix of simple or combined cycle for gas capacity is still being evaluated, but emphasized the company's preparedness and ongoing planning.

Jeremy Tonet questioned the company's appetite for a settlement in the pending gas rate case, whether storm cost deferral approval is assumed in guidance, and the earnings exposure from NorthStar's unregulated business.

Answer

President and CEO Garrick Rochow described the gas case staff testimony as a 'constructive starting position' and affirmed he is open to a settlement but confident in going the full distance. EVP and CFO Rejji Hayes confirmed that approval for the deferred accounting order is not presupposed in guidance. Hayes also detailed that NorthStar is guided to contribute $0.18-$0.22 to 2025 EPS, with about 75% from two solar projects due to a planned outage at the DIG facility.

Jeremy Tonet asked for an update on the Dearborn Industrial Generation (DIG) business, particularly regarding contracts rolling off and the future trajectory given capacity needs. He also questioned how CMS thinks about its long-term EPS growth rate compared to peers who are raising forecasts.

Answer

President and CEO Garrick Rochow stated that the NorthStar business, including DIG, continues to perform well operationally and financially, with bilateral contracts being secured at prices above plan. EVP and CFO Rejji Hayes added that with 25-30% open margin in outer years, they are seeing reverse inquiries at significantly higher capacity prices ($5-6/kW-month vs. historical $3-3.50). Regarding EPS growth, both executives expressed high confidence in strengthening and lengthening the 6-8% CAGR, citing decades of investment opportunities in renewables, grid resiliency, and gas system hardening, but reiterated their focus on delivering consistent, compounded growth off actuals rather than raising the formal range at this time.

Jeremy Tonet inquired about the recontracting outlook for the DIG asset, the Q3 weather forecast's impact on cost management, and the potential for data center load growth in Michigan.

Answer

President and CEO Garrick Rochow confirmed that upward pressure in energy markets creates strong recontracting opportunities. CFO Rejji Hayes noted that while the Q3 weather outlook is fair, it is too early to consider pulling forward 2025 cost savings. Garrick Rochow added that data center interest remains strong, independent of state legislation, and the company is conservative in its sales forecasts.

Jeremy Tonet sought clarification on Enterprise Products Partners' buyback methodology, specifically the allocation of discretionary free cash flow (e.g., 50%-60% of $1 billion) towards buybacks. He also asked about the potential uplift from recent freeze-offs compared to the Yuri event.

Answer

Co-CEO Randy Fowler confirmed that with approximately $1 billion in free cash flow, 55%-60% would be allocated to buybacks, utilizing both opportunistic and programmatic purchases. Tug Hanley, a Company Representative, stated that production fall-off during recent freeze-offs was similar to prior winter events, and the system was optimized to compensate, but the Yuri event was an exception, so a similar uplift is not expected.

Jeremy Tonet asked for more detail on Enterprise Products Partners' share buyback strategy and pace, specifically inquiring about the methodology for allocating free cash flow to buybacks, referencing a 50%-60% allocation for $1 billion in free cash flow. He then followed up by asking if recent freeze-offs could lead to a sizable uplift in optimization opportunities, even if not comparable to Winter Storm Uri.

Answer

Co-CEO Randy Fowler confirmed that for 2026, with approximately $1 billion in free cash flow, 55%-60% would be allocated to buybacks through opportunistic and programmatic purchases. Company Representative Tug Hanley stated that while production fell during recent winter events, system optimization more than compensated, though an uplift comparable to Winter Storm Uri is not expected.

Jeremy Tonet asked about the impact of market volatility on the company's share buyback strategy and whether repurchases could increase in 2026 as CapEx declines. He also inquired about management succession plans.

Answer

Co-CEO W. Fowler addressed buybacks, stating that for 2026, lower growth CapEx could leave approximately $1.5 billion in excess distributable cash flow available for debt paydown and buybacks. On succession, Co-CEO A. Teague emphasized the company's deep bench of talent and long-term focus but did not provide specific details on future management changes.

Jeremy Tonet asked for updated thoughts on potential policy changes from Washington D.C., such as permitting reform, and requested an update on the operating run rates and 2025 outlook for the PDH 1 and 2 facilities.

Answer

Co-CEO Jim Teague expressed skepticism about meaningful permit reform but noted that the lack of it makes existing assets more valuable. Executive Graham Bacon stated that while the PDH plants have not met expectations due to mechanical and design issues, the long-term target remains upper 90% utilization for both facilities.

Jeremy Tonet asked for an update on the macro production outlook based on producer conversations and inquired about the timeline shift for the Bahia pipeline and the current view on NGL pipeline egress.

Answer

Executive Tony Chovanec noted that Permian production growth is on track, with a notable shift by producers toward gassier basins. Executive Justin Kleiderer attributed the Bahia pipeline's delay to Q3 2025 to minor permit issues and stated that updated forecasts show industry NGL pipeline utilization reaching over 90% by 2028, reinforcing the project's necessity.

Jeremy Tonet from JPMorgan Chase & Co. asked about Hess Midstream's growth drivers towards the 2028 timeframe, specifically how cost-cutting contributes to the outlook, and the potential for further CapEx flexibility.

Answer

CEO Jonathan Stein highlighted that EBITDA growth is driven by inflation escalators and gas volume growth, with free cash flow growth further boosted by reduced capital spending, projecting a decrease to less than $75 million by 2028. CFO Mike Chadwick added that CapEx for Q1 2026 is expected to be lower than Q4 2025, with the 2027-2028 target of $75 million or lower reflecting the completion of the compression and gathering pipeline buildout.

Jeremy Tonet followed up on capital expenditures, asking how low CapEx could potentially be flexed in the future.

Answer

CFO Mike Chadwick outlined CapEx projections of $150 million for 2026 (with $25 million for buildout completion) and less than $75 million for 2027 and 2028. CEO Jonathan Stein added that this reduction is due to leveraging historical investments, tight integration with Chevron for optimized upstream/midstream planning, and the shift to longer laterals which reduce well connect capital requirements.

An analyst from JPMorgan asked about Chevron's post-merger perspective on the Bakken rig count, the sensitivity of Hess Midstream's EBITDA to rig changes, and the company's appetite for share buybacks at current prices.

Answer

President & COO John Gatling stated that the current four-rig program is performing well and any updates to the development plan with Chevron will be incorporated into guidance issued in January. CFO Michael Chadwick and CEO Jonathan Stein reaffirmed the existing capital return strategy, including the ~$1.25 billion financial flexibility through 2027 for repurchases, with no change to the general cadence of approximately $100 million per quarter.

Jeremy Tonet asked about the recent uptick in wind additions, inquiring if this indicates developing "green shoots" in the wind sector. He also questioned NextEra Energy's strategy regarding Small Modular Reactors (SMRs), specifically if they would partner with a single technology OEM, and sought insights into rough timing for design approval and construction, as well as the impact of federal government support for SMR development.

Answer

Chairman, President, and CEO John Ketchum acknowledged wind additions in 2028 and 2029, noting continued balance in opportunities but anticipating a trend towards more solar, storage, and gas relative to wind. Regarding SMRs, John Ketchum stated NextEra has a dedicated SMR team evaluating OEMs and greenfield opportunities, but any advancement requires appropriate commercial terms, risk-sharing, and capped financial exposure. He emphasized creating competition among suppliers rather than locking into one. Executive Vice President Mark Hickson clarified that SMRs are not in the base plan but represent potential upside. John Ketchum praised the administration's efforts in enabling American energy dominance and creating opportunities for a four-party discussion (OEM, hyperscaler, government, developer) for SMR projects.

Jeremy Tonet inquired about recent wind additions, asking if they indicate developing 'green shoots' and the expected future trend for wind relative to other generation types. He also asked about NextEra Energy's strategy for Small Modular Reactors (SMRs), including potential partnerships with specific OEMs, and rough timelines for design approval and construction. Finally, he asked what additional federal government support could further accelerate SMR and nuclear development.

Answer

Chairman, President, and Chief Executive Officer of NextEra Energy John Ketchum acknowledged recent wind additions in the 2028-2029 backlog but reiterated the trend towards more solar, storage, and gas. Regarding SMRs, John Ketchum stated NextEra has a dedicated SMR team evaluating OEMs for development at existing nuclear sites and greenfield opportunities, but any advancement requires appropriate commercial terms, risk-sharing, and capped financial exposure. He noted that SMRs are currently upside to the base plan. Executive Vice President of NextEra Energy Mark Hickson confirmed SMRs are not in the base plan but represent potential upside. John Ketchum praised the administration's support for nuclear and SMRs, seeing existing programs as enabling constructive four-party discussions (OEMs, hyperscalers, government, developers).

Jeremy Tonet of J.P. Morgan asked about the outlook for renewable PPA pricing post-OBBBA, the company's opportunity in gas generation following the PJM auction, and the latest thinking on Small Modular Reactors (SMRs).

Answer

John Ketchum, President, CEO & Chairman, asserted that NextEra has a significant pricing advantage due to its large project inventory and speed of execution. He noted the PJM auction results reflect the need for new generation, where NextEra's development skills are a key advantage. On SMRs, he confirmed a dedicated team is actively evaluating the technology as part of their long-term 'all of the above' energy strategy.

Jeremy Tonet requested an update on the GIP partnership and inquired how natural gas power is being factored into generation solutions for hyperscale data center customers, given their decarbonization goals.

Answer

John Ketchum, Chairman, President and CEO, confirmed that the framework agreement with GIP is advancing, highlighting a recent joint customer event. Regarding hyperscalers, he noted a strong preference for front-of-the-meter grid solutions but acknowledged their consideration of gas power. He emphasized that NextEra is uniquely positioned to offer hybrid solutions that pair gas-fired generation with renewable PPAs to create a large-scale, carbon-neutral power source, which is highly attractive to these customers.

Inquired about the evolving demands of hyperscale customers, specifically their openness to natural gas and behind-the-meter solutions, and asked about the strategic fit of XPLR.

Answer

Hyperscalers prioritize speed and cost, which favors renewables, but they are increasingly interested in gas for capacity to support those renewables. Behind-the-meter gas is discussed but is not seen as a primary solution for large-scale needs due to reliability challenges. Questions about XPLR's strategy were deferred to a future call.

Jeremy Tonet from JPMorgan Chase & Co. inquired about conversations with hyperscaler customers, asking if their tone has changed regarding openness to natural gas and if behind-the-meter gas solutions are being discussed more frequently.

Answer

President & CEO of NextEra Energy Resources Rebecca Kujawa responded that hyperscalers' primary concerns remain speed to market and cost. They view natural gas pragmatically as a way to provide capacity value that enables more low-cost renewables. She noted that while behind-the-meter gas is discussed, it is not likely to be the prevalent solution due to the complexity and the inherent value of the existing electric grid. CEO John Ketchum deferred questions on XPLR's strategic fit to a later call.

Asked about balancing growth investments with dividend growth, how the E&P business competes for capital, and for details on backlog changes, including project removals and additions in later years.

Answer

Capital allocation is prioritized for renewables and transmission due to strong returns, funded via traditional methods like tax equity, project finance, and transferability. Recent backlog removals were project-specific, mainly due to higher interconnection costs, and are considered de minimis in the context of the large portfolio. These megawatts are likely to return to the backlog later.

Jeremy Tonet asked about potential opportunities arising from Waha egress issues during cold weather, drawing a comparison to past events like Uri, and the implications for Kinder Morgan's footprint. He also inquired about data center-driven and coal-to-gas switching opportunities for NGPL in the Midwest.

Answer

Sital K. Mody, President of Natural Gas Pipelines, noted that Kinder Morgan leverages basis dislocations and has a significant storage portfolio for such events, but CEO Kimberly Dang clarified that the current storm is not comparable to Uri in duration or significance. Sital K. Mody added that NGPL sees significant interest from power and organic markets in the Midwest, with ongoing discussions for binding commitments, but emphasizes securing appropriate returns for FID projects.

Jeremy Tonet inquired about Kinder Morgan's thoughts on Waha egress and opportunities presented by cold weather events, drawing a comparison to Uri. He also asked about data center-driven opportunities in the Midwest, coal-to-gas switching, and their implications for Kinder Morgan's NGPL assets.

Answer

President of Natural Gas Pipelines Sital Mody noted KMI's ability to leverage basis dislocations given its footprint and storage portfolio, while CEO Kimberly Dang clarified that the current storm was not a Uri-level event. Both emphasized that the tight gas transportation market creates opportunities. Mody discussed significant discussions and EBB postings for NGPL, with interest from power and organic markets in the Midwest, aiming to secure returns for FID projects.

Jeremy Tonet inquired about Kinder Morgan's robust opportunity landscape, competitive positioning, and the potential cadence of capital deployment for these projects. He also asked for clarification on the slight change in language regarding exceeding full-year guidance compared to the previous quarter.

Answer

Kim Dang, CEO of Kinder Morgan, highlighted the company's competitive advantages, including its existing footprint, storage capabilities, and track record for on-time and on-budget project delivery. She indicated that while the exact cadence of project FIDs is hard to predict, a significant project is expected in 2026. Ms. Dang attributed the slight adjustment in guidance outperformance to lower RNG volumes and weaker D3 RIN prices.

Jeremy Tonet inquired about Kinder Morgan's competitive positioning given the robust opportunity set, the cadence of capital deployment, and the slight change in language regarding exceeding full-year guidance compared to the previous quarter.

Answer

Kim Dang (CEO) emphasized Kinder Morgan's competitive advantages, including its existing footprint, ability to offer storage, and track record for on-time, on-budget project delivery. She noted that while the exact cadence is hard to project, a significant project is expected to reach FID in 2026. Ms. Dang attributed the slight change in guidance language to weaker RNG volumes and RIN prices.

Jeremy Tonet from J.P. Morgan asked for details on the Texas-Arkansas power project, its potential for further expansion, and whether the recent Georgia Power IRP filing creates upside for KMI's expansion plans in the Southeast.

Answer

Sital Mody, President of Natural Gas Pipelines, confirmed the Arkansas project supports power demand and that KMI sees a robust pipeline of opportunities across the Midwest corridor. CEO Kimberly Dang added that they don't always have visibility into the ultimate end-user (e.g., data centers). Regarding the Southeast, Mr. Mody stated that the fundamentals look sound and KMI is well-positioned to pursue ancillary expansion opportunities.

Jeremy Tonet asked for more detail on the Arizona expansion potential, referencing a state regulatory docket and future LNG demand, and also questioned how falling WTI prices might impact producer activity in the Bakken.

Answer

An unnamed executive acknowledged the Arizona docket and customer conversations point to a need for incremental capacity, including for longer-term LNG projects, but kept details broad due to competition. CEO Kimberly Dang reiterated the strong demand drivers in Arizona from population growth, Mexican power plants, and potential West Coast LNG. On producer activity, she stated it's too early to see changes, noting that while the Bakken is oil-based, the Haynesville is seeing more bullish producer sentiment due to strong natural gas fundamentals.

Jeremy Tonet of JPMorgan asked if any federal policy changes might alter Kinder Morgan's outlook on Northeast expansions, which have been hindered by state-level permitting. He also inquired about how the company is managing cost inflation risks for its large projects.

Answer

Kimberly Dang (Executive) stated that the primary hurdles in the Northeast are state-level permits and commercial structures, neither of which are expected to change, so the outlook remains the same. Regarding cost inflation, she confirmed that KMI is already actively engaged in procurement for its major pipeline projects, including securing agreements for pipe and compression to mitigate risk.

Jeremy Tonet from JPMorgan Chase & Co. asked about Kinder Morgan's operating leverage and capital-light growth potential from higher asset utilization, and inquired how far the company might extend its services for power customers, including behind-the-meter solutions.

Answer

President Kimberly Dang explained that while some gathering systems have spare capacity, transmission pipes are largely full, meaning upside will come more from contract renewals and ancillary services rather than volume growth. She also confirmed KMI can serve power plants regardless of meter location and is exploring concepts like co-locating power plants with storage facilities for enhanced reliability, though no concrete plans exist yet.

Jeremy Tonet asked for more color on South Bow's organic growth opportunities, including project types, geographical focus, and whether BlackRod serves as a template. He also inquired about how the Milepost 171 remediation plan could reduce the DRA and provide upside, detailing the process, expected timing, and its integration into guidance.

Answer

Bevin Wirzba (President and CEO) stated that growth opportunities would be a key topic at the upcoming investor day, noting increased constructive environments in Canada and the U.S. and ongoing customer conversations. He confirmed maturing growth opportunities as a 2026 priority. Richard Prior (Senior VP and COO) detailed the Milepost 171 remediation, including six inline inspection runs and 37 integrity digs, with a remedial work plan to be filed with PHMSA. He anticipates phased pressure restriction lifts in 2026. Van Dafoe (Senior VP and CFO) added that even with lifted restrictions, tighter differentials might limit spot volume EBITDA.

Jeremy Tonet inquired about the range of potential financial outcomes following the Milepost 171 incident and any broader learnings or systemic changes being considered to prevent future incidents.

Answer

President and CEO Bevin Wirzba emphasized that the company's outlook is stable as 90% of EBITDA is contracted, insulating the base business from risk. He stated that while the root cause analysis is ongoing and will inform future maintenance, potential scenarios have already been modeled into the updated guidance. Wirzba also highlighted significant historical investments in pipeline integrity and plans for more in-line inspections to ensure future safety and reliability.

Jeremy Tonet requested an update on the progress at Three Mile Island. He also asked for Constellation's perspective on recent energy price movements in power markets, their potential trajectory, and their impact on contract discussions.

Answer

President and CEO Joe Dominguez confirmed that progress at Three Mile Island is going well, with critical items completed and the plant in better condition than anticipated, with no new challenges emerging. Regarding power markets, Mr. Dominguez noted a favorable strategic impact on pricing expectations and asset sales. EVP and Chief Commercial Officer Jim McHugh elaborated, stating that while nearby gas prices have seen a small rebound, power upside has been longer-duration and stronger in outer years, outperforming gas. He attributed this to expanding heat rates and spark spreads driven by data and load growth, continued retirements, and limited new megawatts, leading to expectations of higher energy prices alongside capacity price increases.

Jeremy Tonet of JPMorgan Securities LLC inquired about the PJM capacity auction, focusing on the role of demand response and what it would take to increase its participation. He also asked about expected state-level actions following the auction and potential opportunities for Constellation.

Answer

President & CEO Joseph Dominguez explained that an upcoming increase in the ELCC (electric load carrying capacity) value for demand response from under 70% to over 90% will significantly improve its economics in future auctions. He also suggested that states may need to rethink fossil fuel retirement deadlines to ensure reliability and noted that while the market design was flawed, competitive markets remain the best solution for attracting investment.

Jeremy Tonet of JPMorgan Securities LLC inquired about the level of demand response in the recent PJM capacity auction and what is needed to increase it. He also asked about expected state-level actions following the auction and potential opportunities for Constellation.

Answer

President & CEO Joseph Dominguez explained that a low ELCC (electric load carrying capacity) value limited demand response in the last auction, but this value will increase to over 90% for the next auction, which should boost participation. Regarding state actions, he suggested states might rethink fossil fuel retirement dates and emphasized that recent PJM price increases were due to fixing a flawed market design, not a market failure.

Jeremy Tonet inquired about Constellation's progress on long-term data center agreements, asking if customer comfort with deal structures has increased and whether policy clarity from FERC is still a prerequisite for finalizing deals. He also asked for the expected timeline to resolve the FERC 206 proceeding.

Answer

President and CEO Joe Dominguez stated that while FERC clarity is welcome, it is not a roadblock, as customers are pivoting to on-grid deals to maintain momentum. He noted that utilities have accelerated interconnection processes, making on-grid sales attractive. Executive David Dardis added that FERC has sufficient information for a ruling and expects a resolution, either via settlement or a direct order, within a "handful of months."

Jeremy Tonet asked for any foreshadowing regarding the upcoming December update on the 5% EBITDA growth potential post-2026. He also inquired about Western Canada's gas storage, specifically customer conversations and the unfolding market dynamics with LNG Canada ramping up, and how this impacts rates and economics.

Answer

Greg Ebel, President and CEO, reiterated confidence in the 5% growth due to portfolio benefits, power demand, policy changes, and GDP growth, seeing acceleration. Pat Murray, EVP and CFO, emphasized adding clarity to back-end growth. Cynthia Hansen, Head of Gas Transmission Business Unit, confirmed tailwinds for storage, highlighting the Aitken Creek expansion (40 BCF, 50% contracted) and strong opportunities for West Coast system expansion, while stressing the need for government support for LNG export projects.

Jeremy Tonet asked for insights into the upcoming December guidance update, specifically regarding the 5% EBITDA growth potential post-2026, and how the company views this outlook. He also inquired about customer conversations and market dynamics in Western Canada's gas storage, particularly with LNG Canada ramping up, and how this unfolds for logistics, rates, and economics.

Answer

Greg Ebel, President and CEO, indicated confidence in growth across the portfolio, driven by power demand, policy changes, and GDP growth, seeing acceleration rather than pullback scenarios. Pat Murray, EVP and CFO, emphasized that recent project announcements aim to clarify the back-end of the decade growth rate. Cynthia Hansen, Head of Gas Transmission Business Unit, confirmed strong tailwinds for storage, citing the Aitken Creek expansion with 50% long-term contracts and opportunities from LNG Canada Phase Two, while also noting the need for government support for long-term LNG export growth.

Jeremy Tonet from JPMorgan Chase & Co. inquired about the scale and timeline of natural gas expansion opportunities tied to power and data center demand, and sought details on the cost increase for the Woodfibre LNG project.

Answer

President & CEO Gregory Ebel and EVP & President of Gas Transmission Cynthia Hansen detailed a broad set of opportunities across the U.S. footprint, highlighting projects like Line 31 and connections to facilities like Homer City. For Woodfibre, Ebel explained the cost increase was due to factors like code changes and permitting delays, but emphasized that the contract structure protects their low double-digit return.

Jeremy Tonet asked for more detail on the opportunity set and timeline for expanding the natural gas pipeline network to serve growing power and data center demand. He also questioned how the year was shaping up against guidance and sought clarity on quarterly earnings seasonality.

Answer

President and CEO Greg Ebel highlighted that Enbridge has already secured projects to serve 5 GW of power generation. Cynthia Hansen, EVP of Gas Transmission, detailed a $14 billion opportunity set, with $1-2 billion in projects expected to be announced in the next 6-18 months. CFO Pat Murray reaffirmed 2025 guidance, noting the strong Q1 start and explaining that the addition of U.S. utilities enhances the typical Q1/Q4 earnings seasonality.

Jeremy Tonet of Morgan Stanley inquired about the growth opportunities and timeline for Western Canadian Sedimentary Basin (WCSB) production, and the potential impacts of a new U.S. administration on Enbridge's operations, particularly Line 5.

Answer

President & CEO Greg Ebel and EVP, Liquids Pipelines Colin Gruending explained that Enbridge is focusing on low-capital, brownfield projects to meet rising production and demand, with more details to come at Investor Day. Ebel added that the company's diverse 'all of the above' energy portfolio provides resilience against political shifts and that he anticipates a more rational approach to permitting, downplaying concerns over potential tariffs due to the highly integrated North American energy system.

Jeremy Tonet inquired about potential data center growth opportunities in Canada, north of the 49th parallel. He also requested more detail on the long-term outlook for the Mainline pipeline, particularly regarding incremental egress opportunities.

Answer

Michele Harradence, EVP of Gas Distribution and Storage, confirmed significant data center inquiries in Ontario, especially in the Greater Toronto Area, creating opportunities for behind-the-meter gas support. Greg Ebel, President and CEO, added this is analogous to the historical growth of the greenhouse business in the region. Colin Gruending, EVP of Liquids Pipelines, stated the company is designing and socializing a capital-efficient, 150,000 bpd Mainline expansion for the late 2026-2027 period to meet industry demand.

Jeremy Tonet inquired about the impact of large load customers on Atmos Energy's Refresh Capital plan, seeking quantification of demand included in the plan versus potential incremental demand. He also asked about the optimization of capital recovery speed and its integration into future growth plans, and whether the company targets the upper half of its 6-8% EPS CAGR to reach the 2030 implied range.

Answer

Kevin Akers, President and CEO, explained that 85% of capital spend is for safety and reliability, with modest growth included for fortifications based on long-range planning models and population growth. He clarified that capital recovery speed is part of a consistent planning process since 2011, driven by identified system needs and demand forecasts. Chris Forsythe, Senior Vice President and Chief Financial Officer, confirmed the company intends to pursue the 6-8% growth rate off the rebased guidance midpoint.

Jeremy Tonet asked if the balance of tailwinds versus headwinds is currently favorable for TC Energy's guidance period. He also sought an updated perspective on the potential monetization of TC Energy's Mexico assets.

Answer

Sean O’Donnell, Executive Vice President and Chief Financial Officer, affirmed that TC Energy is experiencing more tailwinds than headwinds, citing supportive regulatory reforms, strong customer demand, and improved project IRRs and rate case outcomes. Regarding Mexico, Sean reiterated that while it's a phenomenal business, there are no updated thoughts on monetization at this time. He stated that the company remains committed to exploring alternatives in 2026, pending clarity on USMCA and progress on CFE power plant connections, with an update expected by mid-to-fall 2026.

Jeremy Tonet asked if the balance of tailwinds versus headwinds, as presented on slide 23, is accurately reflected in the current guidance, suggesting the guide might be conservative. He also sought an update on potential monetization opportunities in Mexico.

Answer

Sean O’Donnell (EVP and CFO) agreed that there are more tailwinds than headwinds, citing regulatory reforms, strong customer demand, higher project IRRs, and improved rate case outcomes. He acknowledged the guide's conservatism, attributing it to ensuring the durability of these tailwinds through the end of the decade. Regarding Mexico, he reiterated that it's a phenomenal business, with SGP demonstrating commercial viability. TC Energy remains committed to exploring capital market and partnership opportunities starting in 2026, with potential updates by mid to fall 2026, pending clarity on USMCA and CFE's power plant connections.

Jeremy Tonet of JPMorgan Chase & Co. requested more detail on the cadence of project announcements, particularly in Pennsylvania, and asked about the company's ability to continue delivering projects under budget and how this impacts balance sheet capacity for new growth.

Answer

President & CEO François Poirier and EVP & COO Tina Faraca highlighted the strong demand backdrop, noting over 30 active discussions with data center developers and a focus on high-grading projects. Poirier attributed strong project execution to disciplined preparation and a focus on smaller, brownfield expansions, which improves returns and capital efficiency without needing large greenfield projects.

Jeremy Tonet asked about the potential for data center development in Alberta, questioning why it receives less attention than U.S. opportunities and what it could mean for the NGTL system. He also asked for reconciliation of the 2025 CapEx outlook, wondering if project savings would push spending to the low end of the range.

Answer

CEO Francois Poirier, President of U.S. Natural Gas Pipelines Tina Faraca, and EVP of Strategy and Corporate Development Greg Grant addressed the Alberta data center opportunity. They noted a significant 12 GW development queue and active discussions, but emphasized a selective approach, leveraging existing assets without starting a new IPP. CFO Sean O'Donnell and CEO Francois Poirier clarified that 2025 leverage will be elevated, with deleveraging in 2026. They stated that project savings were already factored into the guidance, and the company may add short-cycle projects, so spending will not necessarily be at the low end of the range.

Jeremy Tonet asked for quantification of potential upside to the financial guidance and inquired about the expected cadence of new project sanctions through 2030, given the strong project backlog.

Answer

EVP and CFO Sean O'Donnell highlighted potential upside from continued strong performance at Bruce Power, favorable FX rates, and successful rate case outcomes. President and CEO Francois Poirier outlined a strategy to fill the remaining ~$8 billion in capital capacity by the end of 2026 through a regular cadence of smaller, low-risk projects, potentially bringing some 2027-2028 capital forward to create more capacity.

Ratan Reddy, on behalf of Jeremy Tonet from JPMorgan Chase & Co., asked for an elaboration on the data center opportunities in Canada and Mexico and requested an update on the company's cost-saving initiatives.

Answer

Executive Stanley Chapman detailed significant data center growth opportunities across North America, including in Canada and Mexico, beyond the primary U.S. market. He also confirmed the company is on track to meet its $750 million synergy savings target by 2025, having already realized approximately $410 million.

Jeremy Tonet asked about the financial impact of Energy Transfer's recent data center deals, seeking an understanding of the magnitude these agreements could have on the business. He also inquired about the high-level drivers for the company's performance in 2026, considering both the base business and upcoming organic growth projects.

Answer

Mackie McCrea (Co-CEO) expressed excitement about the data center opportunities, highlighting the Hugh Brinson pipeline as a potentially highly profitable asset due to its strategic location and demand pull from data centers. He mentioned significant revenues from east-to-west backhaul capacity with no additional capital. Dylan Bramhall (Group CFO) identified Flexport coming online, continued Permian plant fill-up and new plant construction, and Frack 9 as main drivers for 2026 performance, with Hugh Brinson also contributing by year-end.

Jeremy Tonet from J.P. Morgan asked for an update on the EPC contract status for the Lake Charles LNG project and inquired about Energy Transfer's approach to managing construction cost risk and tribal land issues for the Desert Southwest Pipeline.

Answer

Co-CEO Marshall "Mackie" McCrea stated that the EPC contract costs for Lake Charles LNG are in line with expectations and that the company is pushing to reach FID in the next couple of months. For the Desert Southwest Pipeline, McCrea noted they expect to have zero right-of-way across tribal lands and that ET will manage cost risk traditionally, with contingencies built into the project's budget.

Jeremy Tonet from JPMorgan Chase & Co. asked about the impact of commodity price volatility and falling rig counts on production outlook, based on recent producer conversations. He also questioned the opportunity set for servicing growing power and data center demand in Texas and Arizona.

Answer

Executive Mackie McCrea highlighted Energy Transfer's diversified business model as a key mitigator of cyclical volatility. While acknowledging a recent slowdown in drilling, he conveyed long-term bullishness on natural gas demand from LNG and data centers. He described the data center opportunity as a 'gold mine,' noting their assets are ideally located, requiring low capital for connections, and that significant announcements are expected within weeks.

Jeremy Tonet of JPMorgan Chase & Co. asked for help quantifying the total addressable market for data centers and questioned the impact of the new political administration on major projects like Lake Charles LNG.

Answer

Executive Marshall "Mackie" McCrea highlighted ET's favorable position to serve data centers due to its extensive infrastructure. He expressed strong optimism that the new administration's pro-energy stance would streamline regulations, significantly benefiting projects like Lake Charles LNG. He added that ET is actively negotiating over 20 million tons for the project and is targeting a Final Investment Decision (FID) in Q4 2025.

Jeremy Tonet inquired about the potential impact and timeline for new natural gas demand from power plants and data centers, the status of the South Mississippi Pipeline open season, and the progress toward a Final Investment Decision (FID) for the Warrior pipeline.

Answer

Executive Mackie McCrea expressed significant optimism about the demand pull from data centers and power plants, noting many are being sited near Energy Transfer's existing pipelines. He confirmed a "tremendous response" to the South Mississippi Pipeline open season due to strong East Coast demand. Regarding the Warrior pipeline, McCrea stated an FID is likely "within weeks," as the company has already secured an option to purchase steel for the project, which he described as crucial for connecting Permian supply to new demand centers.

Jeremy Tonet asked for an update on the Amazon Transmission Services Agreement (TSA) and developments in the large load pipeline. He also questioned Exelon's $10 billion-$15 billion transmission CapEx and how the company plans to maintain competitive growth rates compared to peers.

Answer

Jeanne Jones, CFO of Exelon, detailed the TSA approach, initiated with the PECO data center, to solidify projects and protect existing customers. She explained the two-step process (cluster study, TSA signing) for moving large load projects to 'highly probable' and reiterated Exelon's commitment to strong core business execution and only including certain, bankable transmission opportunities in its plan.

Jeremy Tonet asked for an update on the Amazon Transmission Services Agreement (TSA) and Exelon's strategy for managing large loads. He also questioned the probability weighting of the $10-$15 billion transmission CapEx and how Exelon plans to maintain competitive growth rates compared to peers.

Answer

Jeanne Jones, CFO of Exelon, explained the TSA's role in solidifying projects and protecting customers, citing the PECO data center as an example and the proposed ComEd large load tariff. She emphasized Exelon's strong core business performance and its commitment to including only 'certain and bankable' transmission projects in the plan, focusing on execution and delivering at the high end of commitments.

Jeremy Tonet asked for an update on the power innovation opportunity set, including the pace of conversations, urgency for speed to market, and the geographic footprint. He also inquired about the strategic rationale behind the recent LNG deal, the 'wellhead to water' connectivity, and the company's plans for the LNG offtake capacity.

Answer

President and CEO Chad Zamarin highlighted robust engagement and interest in power innovation, noting a $5 billion investment backlog and a 6 GW pursuit, with a strong pipeline of opportunities extending through the end of the decade across a diverse footprint. COO Larry Larsen added that the company is focused on opening additional markets. Regarding the LNG deal, Mr. Zamarin explained it's a demand-driven strategy to connect customers to end-use markets, involving a small LNG investment, building the Line 200 pipeline, and transitioning upstream ownership to JERA. He clarified the offtake is a small percentage of earnings, intended to offer international market access to producer customers without taking international price exposure. EVP of Corporate Strategic Development Rob Wingo noted Line 200 connects to multiple systems.

Jeremy Tonet of JPMorgan Chase & Co. inquired about the current opportunity landscape for Williams' power innovation business across its footprint, including the pace and urgency of ongoing conversations. He also sought clarification on the strategic rationale and industrial logic behind the recent LNG deal, particularly regarding the wellhead-to-water connectivity and the company's strategy for its LNG offtake capacity.

Answer

President and CEO Chad Zamarin highlighted robust engagement and interest in power innovation, noting a strengthening backlog of opportunities extending through the end of the decade and beyond, with discussions spanning Williams' diverse geographic footprint. Regarding the LNG deal, Mr. Zamarin emphasized its demand-driven strategy to connect customers to international markets, leveraging a small LNG facility investment to build a strategically important pipeline (Line 200) and transition upstream ownership to an international buyer. He clarified that the 1.5 million ton per year LNG offtake, representing less than 1% of earnings, is intended to offer international market access to producer customers without taking international price exposure. EVP of Corporate Strategic Development Rob Wingo added that capital protection measures are in place for the LNG facility's construction.

Jeremy Tonet of J.P. Morgan inquired about the likelihood of project FIDs in the second half of 2025, specifically asking about Transco expansions versus a Northwest system project. He also asked new EVP Rob Wingo about his strategic approach.

Answer

President & CEO Chad Zamarin highlighted the significance of the NESE and Power Express projects. EVP & COO Larry Larsen added that an open season for the Rockies Columbia Connector project was closing with strong interest. EVP Rob Wingo stated his goal is to execute the existing successful strategy, leveraging his upstream and midstream experience to capture the robust opportunity set.

Jeremy Tonet of J.P. Morgan asked about the likelihood of new project FIDs in late 2025, specifically contrasting Transco expansions with opportunities on the Northwest system. He also asked new EVP Rob Wingo about his strategic approach.

Answer

President & CEO Chad Zamarin highlighted momentum on Transco with projects like Power Express and NESE. EVP & COO Larry Larsen added that the Rockies Columbia Connector project in the Northwest is seeing strong interest in its open season. EVP Robert Wingo stated his focus is on executing the company's existing successful strategy while leveraging his upstream and midstream experience.

Jeremy Tonet asked about Williams' competitive advantage in securing behind-the-meter power projects compared to other energy companies or IPPs. He also inquired about how management sees the natural gas market unfolding and the impact on Williams' systems.

Answer

EVP Chad Zamarin credited the company's success to strong internal collaboration and the ability to offer integrated solutions, including gas supply and pipeline expertise. CEO Alan Armstrong added that strong, long-term supplier relationships are a key differentiator. Regarding the gas market, Armstrong noted a strong call on dry gas basins, positioning Williams' assets favorably despite potential market choppiness.

Jeremy Tonet of JPMorgan Chase & Co. asked about the geographic differences in data center opportunities across Williams' footprint, particularly in Wyoming, and explored the potential to capitalize on favorable spark spreads in constrained gas regions like Pennsylvania.

Answer

CEO Alan Armstrong noted that areas with friendly state politics and available energy resources, like Wyoming and the Salt Lake market, are attractive for new data center campuses, representing a "chapter 2" of development. EVP Chad Zamarin added that in core areas like Virginia, Pennsylvania, and Ohio, Williams can offer a direct natural gas solution to new power loads that is cost-effective, low-emission, and potentially more competitive than grid power, representing a key strategic theme.

Jeremy Tonet inquired about 2025 producer activity, the potential for a production rebound, and the operating leverage on Williams' gathering systems. He also asked for the company's perspective on large-scale industry consolidation versus smaller bolt-on acquisitions.

Answer

CEO Alan Armstrong highlighted that while major pipelines are mostly full, expansion opportunities exist through interconnects. COO Micheal Dunn noted there is significant latent capacity in gathering systems, with about 4 Bcf/day of shut-in or drilled but uncompleted (DUC) wells in the Marcellus and Haynesville, creating a "loaded spring" for growth. Regarding M&A, Armstrong stated that while they evaluate all options, the high hurdle of their strong organic growth makes bolt-on acquisitions that are strategically aligned, like recent storage assets, the more likely path.

Jeremy Tonet asked if organic initiatives alone would suffice to achieve MPLX's mid-single-digit long-term EBITDA growth, or if inorganic initiatives are also necessary. He also inquired about the future distribution growth policy following the two recent 12.5% increases.

Answer

Maryann Mannen (President and CEO, MPLX) indicated that while organic opportunities are pursued, given MPLX's substantial EBITDA, inorganic opportunities (M&A) are likely needed to sustain mid-single-digit growth over the longer term, provided they meet strategic and return criteria. Kris Hagedorn (CFO, MPLX) added that recent acquisitions also generate new organic project opportunities. Mannen stated that MPLX anticipates a path to 12.5% distribution growth for the next couple of years (beyond 2024 and 2025), with future evaluations beyond that timeframe.

Jeremy Tonet asked whether organic initiatives alone would be sufficient to underpin MPLX's long-term mid-single-digit EBITDA growth, or if inorganic initiatives would also be necessary. He also inquired about the future distribution growth policy following the recent two 12.5% raises.

Answer

Maryann Mannen, President and CEO, MPLX, indicated that given the size of MPLX's EBITDA, inorganic opportunities would likely be needed to complement organic growth to achieve mid-single-digit growth. Kris Hagedorn, CFO, MPLX, added that recent acquisitions also create new organic project opportunities. Maryann Mannen stated that MPLX sees a path to 12.5% distribution growth for the 'next couple of years' beyond 2024 and 2025.

Jeremy Tonet asked for an expansion on MPLX's strategy in New Mexico following the Northwind acquisition, given the state's regulatory framework and competitive backdrop. He also inquired about the potential for similar adjacent bolt-on opportunities.

Answer

EVP & COO Gregory Floerke explained that the acquisition accelerates their organic growth into Lea County, New Mexico, an area with attractive crude rock that produces sour gas. He noted the Northwind assets augment MPLX's treating capabilities and offer blending opportunities. President and CEO Maryann Mannen added that while they always look for opportunities, this deal was a perfect strategic fit that they might have built organically otherwise.

Jeremy Tonet asked for more detail on MPLX's strategy in New Mexico following the Northwind acquisition, particularly regarding the state's regulatory framework and competitive landscape. He also inquired if similar bolt-on opportunities exist adjacent to MPLX's footprint.

Answer

EVP & COO Gregory Floerke described the acquisition as a strategic move into an area with some of the best crude oil rock in the basin, which requires the specialized sour gas treating capabilities Northwind provides. He noted the system is perfectly adjacent and complementary to MPLX's existing assets. President & CEO Maryann Mannen added that the deal accelerates what would have been an organic growth plan and represents a near-perfect strategic and geographic fit, though they always evaluate other opportunities.

Jeremy Tonet sought details on the NGL strategy, asking if the fractionation component involves a take-or-pay contract insulating MPLX from commodity risk. He also inquired if legacy MarkWest assets could be integrated into the new system and what role MPLX might play in serving data center power demand.

Answer

SVP David Heppner confirmed the contracts with parent MPC are structured as term agreements that shield MPLX from commodity exposure. EVP and COO Gregory Floerke explained that Permian assets will connect via the BANGL pipeline and that other basins' NGLs could also be directed to the new facilities. Regarding data centers, both Maryann Mannen and Gregory Floerke highlighted MPLX's position to supply processed natural gas for the sector's growing power needs.

Jeremy Tonet inquired about MPLX's strategy for balancing organic growth initiatives with potential bolt-on acquisitions or larger M&A. He also asked for an update on the Rio Bravo pipeline project following a recent court decision vacating its FERC authorization.

Answer

Maryann Mannen, President and CEO, emphasized that the primary focus is on organic growth opportunities to achieve mid-single-digit growth, citing the recent Utica Summit bolt-on as an example of opportunistic acquisitions. Regarding the Rio Bravo pipeline, she stated the project is proceeding on schedule and that a request for a rehearing has been filed, which she characterized as a normal part of the process.

Jeremy Tonet inquired about the pace and trajectory of Cheniere's share repurchase program, and later asked for more details on the LNG market's inflection point, specifically how lower prices might incentivize demand in Asia and the company's outlook on the pricing range presented.

Answer

Zach Davis, EVP and CFO, highlighted the opportunistic nature of buybacks, driven by strong liquidity and attractive valuations, expecting the program to continue at a robust pace and likely require a board authorization upsize next year. Anatol Feygin, EVP and CCO, discussed the significant increase in global LNG supply and the expected moderation of market tightness, emphasizing the potential for increased demand from price-sensitive Asian markets, particularly in power generation and industrial sectors, while Cheniere maintains its highly contracted business model.

Jeremy Tonet inquired about the accelerated pace of share buybacks in the past quarter and the future trajectory of the program. He also asked about the LNG market, specifically how lower prices might incentivize demand in Asia, the depth of that demand, and how pricing might evolve compared to the forward curve and consultant forecasts.

Answer

Zach Davis, EVP and CFO, explained that the buyback pace was driven by ample liquidity, attractive valuation (buying at a significantly lower EV/EBITDA than other FID projects), and strong company performance. He anticipates needing to seek an upsized authorization next year. Anatol Feygin, EVP and CCO, noted that 2026 is expected to be a transition year for the LNG market, with significant supply additions. He highlighted power generation (especially China's underutilized fleet), industrial, and residential/commercial demand as key drivers in Asia, expecting choppy absorption and continued volatility, which Cheniere mitigates by maintaining a 95%+ contracted portfolio.

Jeremy Tonet of JPMorgan Chase & Co. questioned the positive factors driving Cheniere to the high end of its EBITDA guidance despite falling spreads and European logistical issues. He also asked about the outlook for European gas storage refills in 2023 without Russian supply.

Answer

EVP and CFO Zach Davis attributed the strong performance to an extra cargo, higher subchartering revenue, and proactive selling before the market softened. EVP and CCO Anatol Feygin stated that while Europe is adding regasification capacity, refilling storage next winter will be very challenging and potentially more difficult than in 2022, as this year benefited from Russian gas flows in the first half.

Jeremy Tonet of JPMorgan Chase & Co. inquired about the potential pace of new long-term contracts, particularly those contingent on expansions beyond Corpus Christi Stage III. He also asked about Cheniere's capital allocation strategy, specifically the approach to share buybacks versus other uses of cash.

Answer

President and CEO Jack Fusco detailed significant brownfield expansion opportunities at both Corpus Christi and Sabine Pass, highlighting a clear path to expand Corpus Christi's capacity to over 30 million tonnes. EVP and CFO Zach Davis explained that due to accelerated cash flow, the company will issue a revised capital allocation plan, likely recalibrating the ratio of debt paydown to shareholder returns and pursuing opportunistic share buybacks.

Jeremy Tonet of JPMorgan Chase & Co. inquired about a potential new agreement with a Chinese counterparty and its implications for the broader LNG contract market. He also questioned the capital allocation strategy, specifically the timing of initiating a dividend versus other uses of free cash flow.

Answer

President & CEO Jack Fusco and EVP & CCO Anatol Feygin confirmed a new agreement with Foran Energy, viewing it as a positive sign of China's market reforms and growing demand. SVP & CFO Zach Davis addressed capital allocation, stating that while a dividend is an eventuality, the current priority is debt paydown and share buybacks are more attractive at the current stock price.

Jeremy Tonet asked whether the business model was functioning as expected amid cargo cancellations and if a large volume of non-liftings would stress the system. He also questioned if there was a shift in long-term strategy regarding hedging and capital allocation, given the market's focus on free cash flow.

Answer

President & CEO Jack Fusco affirmed that the organization has performed exceptionally with no surprises, highlighting strong internal coordination. EVP & CCO Anatol Feygin added that customers value the contractual flexibility to cancel cargoes. Jack Fusco reiterated the company's conservative risk management strategy, noting they were materially hedged for the year.

Jeremy Tonet asked about the forward capital outlook, particularly how capital deployment might shift closer to plant commercial operation dates (COD) and the momentum of investment beyond the current plan period. He also sought details on the Google project ramp in Arkansas, local stakeholder views, and commission priorities. Additionally, Tonet inquired about the tone and pace of commercial discussions with hyperscalers and opportunities for increased transmission deployment to enhance flexibility and connectivity.

Answer

Kimberly Fontan, CFO, clarified the $41 billion CapEx extends through 2029, with some alternate financing shifting spend. She confirmed expectations for continued investment beyond this period. Drew Marsh, Chair and CEO, added that turbine slots for 2029-2030 CODs represent further opportunities. Regarding Arkansas, Kimberly Fontan, CFO, noted the Google project is in early stages with customer ramp progressing and minimum bills supporting construction. Drew Marsh, Chair and CEO, highlighted strong local and state support for the economic development and associated solar/battery facilities. Kimberly Fontan, CFO, indicated strong and increasing hyperscaler discussions, reflected in the pipeline growth from 5-10 GW to 7-12 GW. Drew Marsh, Chair and CEO, affirmed robust, customer-driven transmission opportunities, with significant investment expected to adapt to grid growth.

Jeremy Tonet inquired about the new industrial customer in Arkansas, asking for details on the industry and ramp-up timeline, and sought clarification on the 7 GW of available gas generation capacity.

Answer

Chair and CEO Drew Marsh explained that specifics about the new Arkansas customer would be disclosed in regulatory filings within a few weeks. He clarified that the 7 GW of gas generation capacity is reserved for future, unannounced customer growth projects with commercial operation dates between 2029 and 2031, and is not yet included in the current capital plan.

Jeremy Tonet inquired about the drivers for the strong residential sales growth, the impact of macro uncertainty on industrial activity, and the nature of current conversations with data centers and other large industrial users.

Answer

CFO Kimberly Fontan stated that while quarterly residential numbers can be volatile, the full-year expectation is about 1% growth. She noted that industrial customers make 30-year decisions, making them resilient to short-term volatility, and highlighted a strong pipeline. CEO Drew Marsh added that a 1% change in annual industrial sales has only a ~$0.01 EPS impact due to high demand charges, de-risking the outlook.

Jeremy Tonet asked for an update on economic development efforts in Arkansas related to data centers and whether large customers are showing interest. He also inquired how Entergy is financing $3 billion of incremental CapEx with only $300 million in new equity.

Answer

CEO Andrew Marsh confirmed significant customer interest in Arkansas for data centers and other industries, with Entergy actively working with state stakeholders. CFO Kimberly Fontan detailed the financing strategy, which relies on optimizing operating cash flow, benefits from a fully funded pension, and financial contributions from new customers through mechanisms like minimum bills, which helps maintain a 10-15% equity financing ratio over the forecast period.

Jeremy Tonet asked if the tariff structure for the new large customer is a replicable framework for future deals and inquired about the evaluation timeline and customer dependency for planned nuclear uprates.

Answer

Executive Kimberly Fontan confirmed the framework, where new customers pay their fair share and support the broader system, is replicable. Executive Andrew Marsh explained that the timeline for nuclear uprates varies by project, with some already underway and more complex ones requiring dedicated customer support. Most opportunities are in Arkansas and Louisiana.

Jeremy Tonet inquired about the dividend per share (DPS) CAGR over the plan period, particularly focusing on the back half of the plan, and sought further clarification on the EPS CAGR for 2028-2030, asking if it's year-over-year or a CAGR from 2026.

Answer

Trevor Mihalik, EVP and CFO, stated that the board recently raised the dividend by 2% and is signaling a 50-60% payout ratio due to the robust capital plan. He noted that the plan assumes dividends increase by the number of shares outstanding, with the board committed to growing the dividend over time, maintaining AEP's 115-year history of dividend payments and recent growth. Mihalik clarified that the 2028-2030 growth rate is year-over-year, with the first two years of the plan growing below the midpoint of the 7-9% range, and the back three years growing at or above 9%, resulting in an overall 9% CAGR from the 2025 midpoint.

Jeremy Tonet sought further clarification on the EPS CAGR for 2028 through 2030, asking if it represents a year-over-year growth rate or a CAGR from 2026.

Answer

Trevor Mihalik, EVP and CFO, clarified that the growth rate for 2028, 2029, and 2030 is expected to be year-over-year at or above the 9% high end of the range, contributing to an overall 9% CAGR from the 2025 midpoint.

Jeremy Tonet from JPMorgan Chase & Co. asked about the role of asset sales in the funding plan, the potential for Grid Enhancing Technologies (GETs) to accelerate projects, and the company's preference for SMRs over larger nuclear reactors.

Answer

President & CEO William J. Fehrman responded that his focus is on growth, not selling assets as a primary strategy. He stated that while GETs offer small benefits, the scale of demand requires major 765kV backbone additions. Regarding nuclear, he noted the current focus is on site permitting, but customers lean toward SMRs for their operational diversity.

Speaking for Jeremy Tonet, Ian Kelly asked for a reconciliation of the Q1 retail sales trends with the higher full-year 2025 forecast and questioned the implications of Ohio's House Bill 15, which shifts from ESPs to multi-year forward-looking test years (MYPs).

Answer

Trevor Mihalik, EVP and CFO, explained that while near-term earnings from new C&I load are muted due to lower margins compared to residential, the rapid growth creates headroom and enhances affordability, supporting long-term capital deployment. William Fehrman, President and CEO, described HB 15 as highly constructive, noting it introduces a multi-year forward-looking test year with a true-up, which promotes timely recovery. He added that the bill grandfathers two existing behind-the-meter fuel cell projects. Mihalik clarified the OVEC impact from the bill would be manageable at less than $10 million annually.

Jeremy Tonet from JPMorgan Chase & Co. sought more detail on 'custom solutions' like the Bloom Energy fuel cells, asking to frame the potential CapEx impact for AEP. He also inquired about the current state of stakeholder relationships in West Virginia.

Answer

President and CEO William Fehrman clarified that all costs for the fuel cell projects are covered by the large customers under stand-alone contracts requiring state commission approval. EVP and CFO Trevor Mihalik added that the capital impact is part of the $10 billion upside opportunity. Regarding West Virginia, Fehrman stated he has been actively engaging with stakeholders and offered an innovative securitization option in the current rate case to support customer affordability.

Jeremy Tonet asked about the settlement dynamics for the Ohio data center tariff, the benefits of the transmission joint venture with FirstEnergy and Dominion, and the drivers for the Generation & Marketing (G&M) segment's performance and its expected decline in 2025.

Answer

President and CEO William Fehrman explained the Ohio tariff aims to protect existing customers from new load costs and expressed confidence in the transmission JV's competitive strength. He also noted the G&M segment's contribution is expected to be lower by approximately $0.24 per share from 2024 to 2025 due to reduced scope and lower margins.

Jeremy Tonet asked about settlement dynamics for the Ohio data center tariff, the benefits of the transmission JV with FirstEnergy and Dominion, and whether the 2025 step-down in G&M earnings implies asset sales.

Answer

CEO William Fehrman explained the Ohio tariff aims to protect existing customers and highlighted the transmission JV's strength in bidding for PJM projects. He confirmed a $0.24 per share lower contribution from G&M in 2025 but did not comment on specific asset sales, stating all options are being considered.

Jeremy Tonet from JPMorgan Chase & Co. sought clarification on the 'partial final award' terminology from the arbitration 8-K and asked for the company's outlook on the 2026 LNG market and its strategy for locking in prices.

Answer

General Counsel Keith Larson clarified that 'partial final award' is ICC nomenclature meaning the core matter is resolved, with only the allocation of legal fees remaining. CEO Michael Sabel added they are 'very bullish' on 2026 demand and are layering in contracts over time ('dollar cost averaging') rather than predicting prices, noting returns are attractive even at levels below current prices.

Jeremy Tonet of JPMorgan Chase & Co. sought clarification on the term "partial final award" from the arbitration filing, asking about potential financial obligations. He also asked for the company's 2026 LNG market outlook and its strategy for balancing contracted sales versus retaining exposure to market prices.

Answer

General Counsel Keith Larson clarified that "partial final award" is ICC nomenclature; the matter is fully resolved, and it's "partial" only because a residual proceeding to determine responsibility for legal fees remains. CEO Michael Sabel added they are very bullish on 2026 demand, seeing attractive net spreads. He stated their strategy is to layer in contracts over time ("dollar cost averaging") rather than making price predictions.

Jeremy Tonet inquired about the target contracting levels for the CP2 project, Venture Global's competitive position in securing new contracts, and the operational ramp-up at the Calcasieu Pass facility.

Answer

CEO Mike Sabel explained that due to Plaquemines' strong production performance (140% of nameplate), the company has a greater appetite for signing more 20-year contracts for CP2. He noted the company's cost advantage strengthens its competitive position. Regarding Calcasieu Pass, he said current production guidance is conservative, and while improvements are planned, the larger upside opportunities are at Plaquemines and CP2.

Jeremy Tonet questioned the potential for upside to the 2025 guidance if volumes exceed forecasts and asked for an assessment of the current regulatory environment for LNG development compared to the past.

Answer

CEO Mike Sabel stated that while train performance is exciting, the guidance remains conservative and is sensitive to the forward commodity curve. He emphasized the long-term strategy of compounding earnings by rapidly adding liquefaction trains. Sabel described the current permitting environment as likely the 'best in decades,' which he believes will allow Venture Global to be responsive to market demand and displace competitors with more attractive pricing.

Jeremy Tonet of JPMorgan Chase & Co. asked for details on the go-forward LPG export strategy, commercial progress and timing for Project Greenlight, and the tone of commercial discussions for the Cedar LNG project.

Answer

President & CEO Scott Burrows stated they are satisfied with their current LPG export position via the AltaGas agreement and Prince Rupert optimization, with a focus on execution. SVP & Corporate Development Officer Stuart Taylor reported that Project Greenlight secured a viable megawatt allocation and is progressing toward a 2029 in-service date, with active commercial talks. On Cedar LNG, Scott Burrows noted that being FID'd with visible construction progress has generated significant interest from multiple counterparties, creating optimism for finalizing deals soon.

Jeremy Tonet of JPMorgan Chase & Co. inquired about producer drilling plans amid potential WTI price drops, the range of outcomes for the Alliance Pipeline's regulatory review, and Pembina's potential to use its strong balance sheet for M&A.

Answer

CEO Scott Burrows noted that while some producers are discussing delaying well completions, no material changes to overall CapEx plans have been seen. SVP Jaret Sprott stated that Alliance customers value the pipeline's reliability and risk-sharing model and do not want a traditional cost-of-service structure. CFO Cameron Goldade confirmed that while large-scale M&A is not a focus, Pembina is positioned to act on smaller, value-add bolt-on opportunities.

Jeremy Tonet inquired about the drivers behind the outperformance of the Alliance and Aux Sable acquisitions and the new opportunities presented by full ownership. He also asked about the sustainability of mid-single-digit volume growth post-2024 and the capital investment required to support it.

Answer

President and CEO J. Burrows attributed the outperformance to strong frac spreads at Aux Sable, driven by low gas and high NGL prices, and noted full control will help capture long-term synergies. SVP Jaret Sprott explained the 2024 volume guidance revision was due to weather, turnarounds, and timing, but the long-term growth thesis remains intact, requiring latent capacity use in Alberta and new pipelines in Northeast BC. SVP and CFO Cameron Goldade added that CapEx would likely run between $1B-$1.25B for the next couple of years, consistent with Investor Day guidance.

Eli on behalf of Jeremy Tonet from JPMorgan Chase & Co. asked about Sunoco's capital allocation priorities after the Parkland and Tanguid deals close, specifically regarding the future M&A approach. He also requested an update on the timing of the ICA filing for the Parkland transaction.

Answer

President & CEO Joseph Kim stated that post-closing, the top priorities are integration, achieving synergies, and deleveraging to their 4x target. He affirmed that future growth opportunities will be evaluated using their consistent criteria of stable cash flow, growth potential, synergies, and attractive valuation, highlighting flexibility across segments and geographies. Treasurer & SVP - Finance Scott Grischow noted that all regulatory processes are 'proceeding as expected' for a Q4 close but did not provide a specific filing date.

Jeremy Tonet from J.P. Morgan requested high-level thoughts on the upcoming Carolinas IRP filing and asked for more detail on current load trends that support the full-year guidance.

Answer

President & CEO Harry Sideris described the upcoming IRP as an 'all of the above' plan focused on reliability and affordability, including gas, batteries, and solar. EVP & CFO Brian Savoy explained that while large customers are currently cautious due to macro uncertainties, this is seen as transitory, and the company remains on track for its 1.5% to 2% volume growth target for the year.

Jeremy Tonet inquired about economic activity in the Midwest service territories and the potential impact of the new presidential administration on long-term strategy, particularly for nuclear energy.

Answer

President Harry Sideris confirmed strong growth in Indiana, led by advanced manufacturing. CEO Lynn Good stated that Duke Energy's long-term strategy aligns with federal and state goals for reliability and affordability. She affirmed their commitment to nuclear for the 2030s and beyond, noting their participation in a DOE grant consortium to advance new nuclear technologies.

Ian Kelly, on for Jeremy Tonet of JPMorgan Chase & Co., asked for more details on the 2 gigawatts of new data center load, the potential impact of election results on strategy, and a quantification of the annual value from tax credit transferability.

Answer

CFO Brian Savoy explained the 2 GW of data center agreements are confidential but represent customers with secured land, with formal energy service agreements to be negotiated over the next year. He noted the Carolinas' carbon-free energy mix is a major draw. CEO Lynn Good stated the company looks forward to working with the new federal and state administrations, emphasizing that their focus on affordable, reliable energy aligns with government priorities. Savoy reiterated that tax credit sales are expected to be $300-$500 million annually for the next several years.

Jeremy Tonet from J.P. Morgan asked for an update on the FFO to debt metrics for the second quarter and sought takeaways from the New Hampshire rate case outcome, including views on settlements versus litigation.

Answer

EVP, CFO & Treasurer John Moreira confirmed continued progress on the FFO to debt metric, expecting to reach the '13 handle' in coming quarters. President, CEO & Chairman Joseph Nolan described the New Hampshire rate case as a 'fantastic' and constructive process, viewing the outcome as fair and a positive example for other jurisdictions. Moreira also highlighted the successful inclusion of a PBR structure.

Jeremy Tonet asked for an updated FFO to debt metric for the second quarter and for key takeaways from the New Hampshire rate case, including views on settlements versus litigation.

Answer

John Moreira, Executive VP, CFO & Treasurer, stated that FFO to debt momentum from Q1 continued and he expects to reach the 13% range in coming quarters. Joseph Nolan, President, CEO & Chairman, described the New Hampshire rate case outcome as "fantastic" and constructive, highlighting the fair process, the 9.5% ROE, and the establishment of a PBR structure as positive developments.

Jeremy Tonet from JPMorgan Chase & Co. asked for the outlook on FFO to debt metrics into 2026 and questioned the collaboration process with Orsted on Revolution Wind cost estimates.

Answer

EVP and CFO John Moreira indicated that FFO to debt will continue to improve into 2026, aided by debt reduction from the Aquarion sale and better alignment of rates with costs. He also confirmed that the cost estimation process for Revolution Wind is collaborative, with routine forecast updates shared between Eversource, Orsted, and GIP to ensure alignment.

Jeremy Tonet requested more detail on the earnings headwinds and tailwinds for 2025, specifically asking how the company plans to offset the earnings contribution from the divested Aquarion business.

Answer

Executive VP and CFO John Moreira clarified that for 2025, Aquarion's earnings are included up to the expected closing date, mitigating the impact for that year. He explained that the transaction is accretive, and starting in 2026, the reduction in interest expense from using the $1.6 billion in sale proceeds to pay down debt will more than replace the lost earnings.

Jeremy Tonet asked for an update on the Aquarion water business sale process, including the level of interest and timing. He also sought to confirm if the recent equity issuances were executed as forward sales.

Answer

Chairman, President and CEO Joseph Nolan reported that interest in Aquarion exceeded expectations and the process is now in its second phase with a shortlist of bidders. He anticipates announcing a buyer by Q1 and closing the sale in 2025. EVP, CFO and Treasurer John Moreira confirmed the equity was not issued on a forward basis and the cash has been received.

Jeremy Tonet of JPMorgan Chase & Co. inquired about Ameren's data center load pipeline, the significance of its unchanged gigawatt figure, efforts to de-risk future turbine supply, and the adequacy of natural gas access for planned generation projects.

Answer

President, CEO, & Chairman Martin Lyons stated that the data center pipeline remains robust with strong momentum and that developers are now requesting studies for expansions beyond the current 2.3 GW of signed agreements. Senior EVP & CFO Michael Moehn added that the broader regional economy is also strong, with notable manufacturing growth. Moehn confirmed Ameren has secured near-term turbine needs through 2028, is actively negotiating for its 2031 plant, and feels confident about gas transmission access for all planned projects.

Jeremy Tonet asked for clarification on the incremental data center load additions, the resulting impact on new generation needs, and the potential effects on Ameren's plans if the IRA's tax credit transferability provisions were altered.

Answer

Michael Moehn, Senior Executive VP and CFO, clarified that the company signed an additional 500 MW of data center construction agreements, bringing the total to 2.3 GW. Marty Lyons, Chairman, President and CEO, added that this reinforces their confidence in sales growth estimates and that the current Integrated Resource Plan (IRP) can serve this demand. Regarding the IRA, Mr. Lyons emphasized the credits' importance for customer affordability, while Mr. Moehn stated that any impact would be manageable due to a strong balance sheet and financial flexibility, even without issuing additional equity.

Jeremy Tonet asked how Ameren could fund a $4.4 billion increase in CapEx with only a minor increase in planned equity, and whether pending legislation represented quantifiable upside to the financial plan.

Answer

EVP & CFO Michael Moehn explained that the minimal need for incremental equity is a direct result of the company's historical practice of proactively managing and protecting its strong balance sheet, which provided capacity to absorb the new investments. CEO Martin Lyons characterized the potential legislative benefits as enablers that would help the company earn closer to its allowed return on deployed capital, rather than direct, quantifiable upside.

Jeremy Tonet of JPMorgan Chase & Co. asked how Xcel incorporates competitive transmission opportunities into its capital plan. He also requested more detail on the contracting progress for data centers, including counterparty types and load ramp-up. Finally, he inquired about the nature of the gain on debt repurchases during the quarter.

Answer

EVP & CFO Brian Van Abel clarified that competitive transmission projects are not included in the capital plan unless they are won, emphasizing a disciplined focus on their own service territories. Chairman, President, & CEO Robert Frenzel detailed that 1.1 GW of data centers are under contract, with a goal to contract another 1 GW by year-end, and a robust pipeline of 7 GW behind that. Mr. Van Abel added that the gain on debt repurchase was an opportunistic move to offset mark-to-market losses in venture capital investments and was not a core earnings driver.

Jeremy Tonet from JPMorgan Chase & Co. asked about the expected regulatory recovery of wildfire O&M costs, the expansion of the data center pipeline beyond Minnesota, and the strategy for balancing investment and potential bill inflation in Colorado.

Answer

CFO Brian Van Abel explained that their guidance assumes constructive regulatory outcomes, citing the Colorado settlement which includes concurrent O&M recovery and deferral filings in other states. On data centers, he confirmed expansion with projects in Colorado and Wisconsin, and growing interest in the Dakotas. Regarding Colorado, he noted bills are currently low, and they are focused on affordability through mechanisms like securitization and leveraging low-cost renewables, as highlighted by CEO Robert Frenzel, to attract economic development which benefits all customers.

Jeremy Tonet asked for an outlook on wildfire policy, the potential for federal changes, and the role of natural gas generation in the face of higher load growth and a shifting D.C. focus.

Answer

CEO Robert Frenzel acknowledged active dialogues at federal and state levels on wildfire risk, suggesting federal action is more likely in the second half of the year. He also affirmed that natural gas has a key role as a dispatchable resource to support their 80% carbon reduction goal, noting plans for new peaking gas resources. CFO Brian Van Abel added that the core tenets of the IRA, including transferability, are expected to remain intact.

Jeremy Tonet asked about the strategic thinking behind raising the long-term EPS CAGR to 6-8% and guiding to the high end of that range. He also requested details on key milestones for the incremental CapEx opportunities over the next 12 months.

Answer

EVP and CFO Brian Van Abel attributed the increased guidance to the strong 9.4% rate base growth from the base plan, combined with a massive generation opportunity of 15,000-30,000 MW needed to replace coal plants and serve over 5% load growth. He listed key near-term milestones, including decisions on MISO Tranche 2.1, SPP projects, the SPS RFP, and the Minnesota resource plan. Chairman, President and CEO Robert Frenzel added that the company's proven transmission development capabilities are a key asset in executing this plan.

Jeremy Tonet of JPMorgan Chase & Co. asked for more detail on in-basin demand opportunities, referencing recent developments like the Pennsylvania Energy and Innovation Summit and Meta's new facility, and also requested an update on the Clearwater facility lawsuit.

Answer

Brendan Krueger, CFO of Antero Midstream, highlighted West Virginia's microgrid bill as a key catalyst for data center demand. He noted AM could benefit either from increased volumes for its sponsor, Antero Resources, or by directly building and owning new supply infrastructure. On the lawsuit, Krueger stated there was no new update, as they are awaiting a decision from the Colorado Supreme Court on whether it will hear the appeal.

Jeremy Tonet inquired about the growth potential for in-basin natural gas demand from data centers, the outlook for the LPG market and its impact on Antero Midstream, and the possibility of future expansion at the JV fractionation facility.

Answer

Brendan Krueger, CFO of Antero Midstream, noted that while discussions around in-basin power demand are in early stages, there is significant momentum and Antero Midstream is well-positioned with its existing infrastructure. Executive David Cannelongo expressed long-term confidence in the LPG market, highlighting its necessity in residential/commercial markets and its unique role in petrochemical production. Mr. Krueger added that the JV frac facility has room to increase throughput beyond its current rate, which is already over nameplate capacity, but the current focus is on maintenance capital.

Eli, on behalf of Jeremy Tonet from JPMorgan Chase & Co., asked about Kodiak's appetite for M&A, specifically smaller bolt-on acquisitions or asset packages, should valuations become more attractive, given the company's prior focus on integrating the CSI acquisition.

Answer

CEO Mickey McKee confirmed that Kodiak is 'absolutely' in the market for opportunistic bolt-on acquisitions, particularly if customers seek to monetize their compression assets. He noted that the CSI integration is substantially complete and the ERP implementation is progressing well, positioning the company to actively evaluate future M&A opportunities.

Jeremy Tonet from JPMorgan Chase & Co. asked about Aris's competitive standing, especially against other midstream companies increasing their focus on water, and sought updated thoughts on expanding beneficial reuse applications, such as for datacenters.

Answer

President and CEO Amanda Brock addressed competitive pipeline announcements, stating that projects like Western's Pathfinder are south of Aris's operations and do not impact them. She emphasized that Aris's geographic position and future plans for the McNeil Ranch keep them well-positioned. On beneficial reuse, Brock confirmed they can treat water for datacenters but see it as an early-stage market. She highlighted progress in reducing desalination costs for other uses and noted the site for the first iodine facility has been selected.

On behalf of Jeremy Tonet, an analyst from JPMorgan Chase & Co. asked about the sustainability of Aris's strong operating margins into 2025 and beyond. He also inquired about the timing of potential dividend hikes and the expected cadence of dividend growth, given the company's strong balance sheet and raised EBITDA guidance.

Answer

CFO Stephan Tompsett affirmed that margin improvements from electrification and other operational efforts are sustainable, reiterating a long-term target of $0.43 per barrel, which will increase with contractual CPI escalators. He noted recent outperformance was aided by one-time items. On shareholder returns, Tompsett stated that while they intend to provide long-term, consistent dividend growth, increases should not be expected every quarter. Founder and Executive Chairman Bill Zartler added that the company maintains a long-term view, prioritizing a strong balance sheet while evaluating all opportunities.

Jeremy Tonet of JPMorgan Chase & Co. questioned the potential impact of an IRA repeal, particularly regarding tax credit transferability, and asked about the competitiveness of the new Very Large Customer (VLC) tariff in attracting business to Wisconsin.

Answer

Executive Scott Lauber and CFO Xia Liu clarified that they are actively safe-harboring projects to secure PTCs through 2029. They noted that since nearly 80% of planned PTC transfers are from projects already in service, the impact of a potential repeal on future projects would be limited. Scott Lauber emphasized the VLC tariff was co-developed with large customers to be fair and prevent cross-subsidization, making it a clean and competitive offering.

Jeremy Tonet inquired about the role of new natural gas generation, its link to LNG facility investments, the outlook for reserve margins, potential impacts on coal plant retirement schedules, and the viability of carbon capture.

Answer

Executive Scott Lauber explained that new gas generation is critical for dispatchable power and that new LNG facilities ensure fuel supply reliability. He stated the generation plan is designed to stay ahead of MISO's reserve margin requirements. He confirmed coal retirement plans are unchanged, as adding CCS would be cost-prohibitive for customers due to the lack of local storage options.

Jeremy Tonet from JPMorgan Chase & Co. asked for an interpretation of a recent split vote at the Wisconsin commission, questioning what it might signal about the commission's future direction.

Answer

President and CEO Scott Lauber advised against over-reading the situation, suggesting it was too early to tell. He believes the commission was simply seeking additional information on the economics and benefits of the proposal. He stated the company will review the final order, gather the requested information, and likely ask for reconsideration, expressing no major concern.

Jeremy Tonet inquired about the Energy Trading segment's performance and outlook for the year, as well as DTE Vantage's strategy in light of potential IRA changes.

Answer

EVP and CFO David Ruud reported a strong quarter for Energy Trading ($34 million) and noted potential for continued favorability. He also confirmed DTE Vantage's strategy is unchanged by federal discussions, as its projects are safe-harbored and the focus is shifting to utility-like investments. Chairman and CEO Gerardo Norcia added that overall business strength is being used to bolster plans for 2026 and 2027.

Jeremy Tonet from JPMorgan Chase & Co. sought more details on the DTE Vantage segment, specifically asking about the project pipeline and timelines for RNG, custom energy solutions, and carbon capture. He also inquired about the possibility of portfolio rotation to fund potential increases in utility capital spending.

Answer

EVP and CFO David Ruud highlighted a strong pipeline for Vantage, mentioning an RNG project coming online this year, opportunities in custom energy solutions supported by the IRA like the Ford project, and smaller, advancing on-site CCS projects. Chairman and CEO Gerardo Norcia confirmed that as utility capital opportunities increase, the company will manage Vantage's investment levels and earnings expectations, placing a greater emphasis on utility capital in the future.

Jeremy Tonet inquired about the progress of hyperscale data center negotiations, the impact of pending Michigan tax legislation, the timing of tax impacts in the Corporate & Other segment, and the drivers behind the strong performance in the Energy Trading business.

Answer

CEO Gerardo Norcia stated that hyperscale interest remains strong pending the expected passage of tax legislation in the fall. CFO David Ruud explained the Q2 tax favorability in the Corporate & Other segment was a timing issue that will reverse by year-end. Ruud also attributed the Energy Trading strength to contracted and hedged positions in the power and gas portfolios, with Norcia adding that these are multiyear contracts.

Jeremy Tonet followed up on the potential for asset sales within the DTE Vantage portfolio, asking about market interest, and requested more detail on the company's upcoming renewable energy plan.

Answer

Chairman and CEO Gerardo Norcia clarified that while DTE likes its Vantage assets for their high returns, they constantly evaluate market value. He stated that currently, a sale would not create incremental value over their long-term plan, but they would act if such an opportunity arose. Regarding renewables, Norcia highlighted the success of the voluntary program, which is nearing its 2,500 MW goal, suggesting an update is forthcoming. He also noted the IRP could drive further investment beyond the current 5-year plan.

Jeremy Tonet of JPMorgan Chase & Co. inquired about gross margin drivers, including pricing trends and the potential impact of steel tariffs. He also asked for more quantification on new build payback periods and explored whether compressor units could be used for alternative applications like power generation.

Answer

CFO Chris Paulsen noted that customers are favoring longer-term contracts to lock in pricing and that it's too early to determine the impact of potential steel tariffs. He reiterated that new builds are expected to pay back within their contract term. President and CEO Micah Green explained that standard compressors are not suited for power generation, but their dual-drive technology offers grid-unloading benefits, which is a key opportunity.

Jeremy Tonet asked for details on gross margin drivers, including pricing trends and the potential impact of steel tariffs. He also requested quantification of new build payback periods and asked if compressor units could be used for other applications like power generation.

Answer

CFO Chris Paulsen noted that customers are favoring longer-term contracts, suggesting they anticipate future price pressure, and stated it's too early to determine the impact of steel tariffs. He reiterated that new builds are expected to pay back within their contract term. President and CEO Micah Green explained that while compressors are purpose-built, their dual-drive units offer flexibility to unload the power grid, but bespoke power solutions are not a focus.

Asked about the expected run-rate for backlog additions, future market share projections, and the current opportunity mix between solar, wind, and battery storage.

Answer

Backlog additions will fluctuate quarterly but reflect strong underlying demand, and the company is comfortable with its long-term development targets. A market share of around 20% is achievable, with a focus on balancing share and margin. Solar and storage opportunities are very strong due to economics and capacity needs, while wind remains a complementary part of the portfolio.

Inquired about the expected timeline for the CCS market to mature and asked about the company's commodity price exposure, questioning the cause of lighter margins in the Permian and North Texas.

Answer

The CCS market development timeline is uncertain and depends on emitters, but EnLink feels well-positioned long-term. The company has minimal commodity exposure (~10% and hedged). Lighter margins were attributed to some POP exposure in the Permian and, more significantly, the full quarterly impact of a contract reset in North Texas.

Inquired about the scope and timeline of Louisiana growth projects, the potential for near-term announcements, and confidence in Oklahoma and North Texas guidance.

Answer

The Louisiana strategy includes quick debottlenecking projects and longer-term storage/pipeline expansions, with a potential storage FID in the coming quarters. The company remains confident in its Oklahoma and North Texas guidance despite Q1 headwinds.

An associate for Jeremy Tonet inquired about AltaGas's long-term tolling strategy for the Midstream business, particularly with REEF and Pipestone II coming online, and also asked about the company's approach to reducing the ROE gap in its Utilities segment.

Answer

President and CEO Dai-Chung Yu stated a long-term goal of being approximately 60% tolled, with lumpy but high-return growth expected from Midstream projects. EVP and CFO D. James Harbilas noted the current ROE gap is around 140 basis points, with cost-saving initiatives expected to reduce it by 50-60 basis points. President of Utilities Donald Jenkins added that rate cases in DC and Maryland are the primary tools for recouping capital investments.