Spiro Dounis

Spiro Dounis asked about Cheniere's commercial progress, specifically if the next SPAs would underwrite expansions beyond Phase 1 of Sabine Pass and Corpus Christi, and where market LNG contracted margins stand given competing projects. He also inquired about the progress in dealing with nitrogen and inert gas issues, asking if the problem is fully resolved.

Answer

EVP and Chief Commercial Officer Anatol Feygin stated that the first train of super brownfield expansions is fully contracted, with modest work remaining for the second. He acknowledged the competitive market but highlighted Cheniere's bespoke product and premium for reliability. President and CEO Jack Fusco reiterated the value of Cheniere's 10-year export history. CFO Zach Davis pointed to the company's over 95% contracted position through 2030/2035. Regarding gas issues, Jack Fusco clarified that more work is needed, attributing hiccups to feed gas variability (heavies, C12s) and noting that adjusted operating modes and solvents are showing benefits. Zach Davis added that current guidance includes planned maintenance for resiliency efforts.

Spiro Dounis inquired if future SPAs would underwrite expansions beyond Phase 1 of Sabine Pass and Corpus Christi, current market LNG contracted margins, and the progress on addressing nitrogen and inert gas issues in feed gas.

Answer

Anatol Feygin (EVP and Chief Commercial Officer) indicated the first train of super brownfield expansions is commercially secured, with modest work remaining for the second. He noted a competitive market but Cheniere's reliability commands a premium. Jack Fusco (President and CEO) and Zach Davis (EVP and CFO) confirmed that while nitrogen is an inert gas, variability in feed gas (C12s) was the main challenge. Operating teams have implemented new modes and solvents, showing benefits, with capital deployed for long-term resiliency.

Spiro Dounis of Citigroup inquired about the pace of new SPA commercialization and Cheniere's ability to maintain premium pricing. He also asked about the drivers and durability of CMI's optimization activities year-to-date.

Answer

President & CEO Jack Fusco credited a supportive U.S. administration for aiding customer talks. EVP & CCO Anatol Feygin emphasized that Cheniere's decade-long performance record allows them to secure favorable terms with partners who value reliability over the lowest price. EVP & CFO Zach Davis explained that optimization across the value chain offset lower market margins earlier in the year, and that de-risking 2025 open capacity and completing maintenance has secured the company's financial outlook.

Spiro Dounis requested an update on the '2020 Vision' capital allocation plan's progress and asked for color on the 2025 guidance, noting strong Q1 results and potential upside from Train 4.

Answer

EVP and CFO Zach Davis confirmed that over $15 billion of the $20 billion target has been deployed and they are on track to surpass the goal before 2026. Regarding guidance, he explained that proactive hedging and optimization efforts offset the recent drop in market margins, keeping them comfortable with the midpoint of the range. He cautioned that Train 4 would be in commissioning and not a material contributor this year.

Spiro Dounis asked about Kinetik's renewed confidence for 2026, the drivers behind the EBITDA range, growth expectations beyond 2026, the impact of Permian gas egress, and updates on NGL recontracting.

Answer

Jamie Welch, President and CEO, attributed renewed confidence to successful restructuring of two large legacy Durango Midstream contracts, significant commercial activity in the Northern Delaware, and a refreshed capital allocation strategy focused on organic growth. He highlighted Kinetik's sour gas treating capabilities and the potential for Kings Landing 2. Trevor Howard, SVP and CFO, noted a 7% year-over-year EBITDA growth for 2026 (excluding EPIC Crude sale) and a strong setup for 2027. Jamie Welch also mentioned the constructive impact of 5.3 Bcf/day of Permian egress and aggressive NGL players in the market for recontracting.

Spiro Dounis asked about Kinetik's renewed confidence and the basis for its 2026 EBITDA guidance, then inquired about growth prospects beyond 2026, dividend policy, the impact of Permian gas egress, and NGL recontracting updates.

Answer

Jamie Welch, President and Chief Executive Officer, attributed renewed confidence to successful contract restructurings, increased commercial activity, and a refined capital allocation strategy focusing on organic growth, particularly in sour gas handling and Gulf Coast pricing for Northern Delaware customers. Trevor Howard, Senior Vice President and Chief Financial Officer, added that 2026 growth is projected at 7% (excluding EPIC Crude divestiture), with a strong setup for 2027, supported by significant Permian egress projects and NGL recontracting opportunities.

Spiro Dounis of Citigroup inquired about the potential for NGL recontracting tailwinds to materialize earlier than 2026 and asked about the progress toward a Final Investment Decision (FID) for the Kings Landing 2 expansion.

Answer

CEO Jamie Welch confirmed it is a favorable market for recontracting NGLs due to ample pipeline capacity, with Kinetik having serial contract expirations through the end of the decade. For Kings Landing 2, Welch stated they are "midway" through the process for an FID, which is expected before year-end, pending commercial agreements, acid gas injection (AGI) permits, and power arrangements. SVP of Commercial, Kris Kindrick, added that the ECCC pipeline enhances their ability to use offloads to optimize the system.

Spiro Dounis of Citigroup inquired about the key drivers supporting Kinetik's 10% compound annual growth rate (CAGR) through 2029 and questioned the recent capital allocation pivot towards share buybacks versus organic growth and M&A.

Answer

CEO Jamie Welch detailed that the growth is underpinned by contractual resets, the Barilla Draw acquisition, and producer growth in New Mexico, with the potential for a Kings Landing 2 expansion. CFO Trevor Howard and CEO Jamie Welch explained the buyback reflects a flexible, opportunistic strategy driven by the stock's 'incredible' undervaluation, citing strong near-term EBITDA growth and a solid balance sheet.

Spiro Dounis of Citigroup inquired about the execution risk and infrastructure required to achieve Kinetik's 10% five-year EBITDA CAGR target and asked about the M&A outlook for 2025.

Answer

CEO Jamie Welch explained that Kinetik's outsized market share growth, combined with organic projects like Kings Landing II, NGL contract roll-offs, and OpEx reduction initiatives (such as a potential power generation facility), supports the growth target with low execution risk. Regarding M&A, Welch noted that while opportunities exist, the company maintains a very high bar for returns, especially when compared to compelling internal projects.

Spiro Dounis asked for an expansion on the statement that Golar is seeing 'more demand than ever before' for LNG infrastructure, inquiring if this is macro-related or specific to FLNG solutions. He also asked if the latest Gimi refinancing serves as a blueprint for future financings and what lessons were learned.

Answer

CEO Karl Fredrik Staubo attributed the increased demand to two factors: growing industry recognition of FLNG's efficiency (up to 40% CapEx discount to land-based, flexibility) and the appeal of sourcing cheaper molecules compared to Henry Hub. CFO Eduardo Maranhão confirmed that the Gimi refinancing ($1.2 billion, 5.6x annual EBITDA) proves the bankability of Golar's FLNG contracts. He noted that applying similar multiples to Hilli and Mark II could unlock significant financing capacity (over $1.5 billion and $2 billion, respectively) for these long-term, 20-year agreements.

Spiro Dounis from Citi asked for elaboration on the reported increase in demand for LNG infrastructure, specifically whether it is driven by macro factors, the appeal of FLNG solutions, or a combination of both. He also inquired about the implications of the recent Gimi refinancing, asking CFO Eduardo Maranhão if it serves as a blueprint for future financings and what lessons were learned regarding the bankability of Golar LNG's contract structures.

Answer

CEO Karl Fredrik Staubo explained that increased demand stems from both growing industry recognition of FLNG's efficiency (up to 40% CapEx discount and flexibility) and the strategic advantage of sourcing cheaper gas molecules compared to Henry Hub-linked U.S. production. CFO Eduardo Maranhão confirmed that the Gimi refinancing, which secured $1.2 billion (5.6x annual EBITDA), validates the bankability of Golar LNG's long-term contracts and provides a blueprint for potential future financings for Hilli and Mark II, which could raise over $1.5 billion and $2 billion respectively.

Spiro Dounis asked about the 2026 outlook, specifically where conservatism was built into the guidance, commodity assumptions, and potential upside from optimization opportunities like Rocky ethane recovery. He also inquired about the power opportunity, when announcements could be expected, and if these opportunities were scaling up.

Answer

CFO Walt Hulse explained that the guidance assumes a conservative WTI crude price range of $55-$60 per barrel, with potential upside if prices strengthen. CCO Sheridan Swords detailed commercial optimization opportunities including discretionary ethane out of the Bakken, spot offloads in Permian GNP, NGL spreads between Conway and Mont Belvieu, and refined products blending. Regarding power opportunities, CCO Sheridan Swords indicated advanced negotiations with hyperscalers are underway, with a positive outlook and increasing scale, hoping for announcements in the near future.

Spiro Dounis asked about ONEOK's 2026 outlook, specifically where conservatism was built into the guidance, commodity assumptions, and potential upside from optimization opportunities like Rocky ethane recovery. He also inquired about the power opportunity, customer engagement, expected deal announcements, and if these opportunities are scaling up.

Answer

CFO Walt Hulse discussed conservative crude price assumptions ($55-$60/bbl) and potential upside from stronger pricing. Chief Commercial Officer Sheridan Swords highlighted commercial upsides from discretionary ethane in the Bakken, spot offloads in Permian GNP, NGL spreads, and refined products blending. Swords also confirmed advanced negotiations with hyperscalers for power opportunities, expecting announcements soon, and noted that these opportunities are scaling up.

Spiro Dounis asked about ONEOK's capital allocation strategy for future CapEx, specifically identifying the most attractive basins or asset types among NGLs, gas, and liquids. Spiro Dounis also inquired about ONEOK's perspective on the Sunbelt Connector project, its competitiveness against other open seasons, and the sufficiency of demand in Arizona for multiple projects.

Answer

Walt Hulse, Chief Financial Officer, Treasurer, and Executive Vice President, stated that ONEOK evaluates each project on a standalone basis, prioritizing expansions of its existing asset base. He anticipates CapEx will trend down over the next several years due to significant operating leverage. Sheridan Swords, Executive Vice President and Chief Commercial Officer, expressed confidence in the Sunbelt Connector's competitiveness, citing its extensive connectivity to Mid-Continent refiners and Gulf Coast refining centers. He noted significant customer interest and openness to strategic partnerships.

Spiro Dounis asked about ONEOK's capital allocation strategy for CapEx, specifically where the next marginal dollar would be invested and which basins or asset types (NGLs, gas, liquids) are most attractive. Dounis also sought ONEOK's perspective on the Sunbelt Connector project, its competitiveness against other open seasons, and if sufficient demand exists in Arizona for multiple projects.

Answer

Walt Hulse, Chief Financial Officer, Treasurer, and Executive Vice President, Investor Relations and Corporate Development, explained that ONEOK evaluates each project on a standalone basis, utilizing an 'expand and extend' strategy from its existing asset base, and anticipates CapEx to trend down over the next several years due to operating leverage. Sheridan Swords, Executive Vice President and Chief Commercial Officer, affirmed the Sunbelt Connector's competitiveness, citing its extensive connectivity to Mid-Continent refiners and Gulf Coast refining centers, and noted significant customer interest during the open season.

Spiro Dounis of Citigroup inquired about the 2026 outlook, asking for details on the projected growth and how much is secured by contracts and synergies versus being dependent on volume growth. He also asked about the drivers of outperformance in the natural gas segment and the progress of discussions related to AI and data center demand.

Answer

President and CEO Pierce Norton and EVP & CFO Walt Hulse attributed the tempered 2026 outlook to market volatility and tighter spread differentials. Hulse clarified that growth is primarily supported by projects coming online, synergy realization, and refined products expansions, rather than just producer activity. EVP & CCO Sheridan Swords explained the natural gas outperformance is due to asset integration and optimization. Regarding AI, Swords noted active discussions with over 30 parties and some contracted industrial demand.

Speaking for Spiro Dounis, Doug Irwin asked how potential LPG tariffs have affected the commercial strategy for the new export project and how a steep crude contango market might create storage tailwinds for the company.

Answer

Chief Commercial Officer Sheridan Swords stated that potential tariffs have not impacted their LPG export project strategy, as U.S. LPG is a byproduct that must clear to international markets. He also confirmed that with significant crude storage capacity, a contango market would present a strong opportunity to store product for forward sales, creating a financial tailwind.

Spiro Dounis asked about the 2026 and 2027 outlook, specifically inquiring about the ratability of the Q4 2025 exit rate for 2026 growth projections (3%-5% range) and the risks or commodity environment supporting the double-digit growth expected in 2027.

Answer

Co-CEO Jim Teague indicated that Q4 2025 was more ratable due to fewer outsized spreads compared to prior years. Co-CEO Randy Fowler clarified that 2026 cash flow and EBITDA growth would likely be at the lower end of the 3%-5% range, with modest growth expected.

Spiro Dounis inquired about Enterprise Products Partners' 2026 and 2027 outlook, seeking clarification on the drivers for 2026 growth relative to the strong Q4 2025 exit rate and the underlying commodity environment and risks supporting the projected double-digit growth in 2027.

Answer

Co-CEO Jim Teague indicated that Q4 2025 was more ratable due to fewer outsized spreads compared to prior years. Co-CEO Randy Fowler added that 2026 cash flow and EBITDA growth is expected to be modest, likely at the lower end of the 3%-5% range, with double-digit growth anticipated in 2027 as new assets reach full utilization.

Spiro Dounis of Citigroup inquired about the expected ramp-up and utilization rates for the nearly $6 billion in assets coming online in late 2025, and also asked about the future pace of the company's share buyback program.

Answer

Co-CEO A.J. Teague, SVP Natalie Reagan, and SVP Tug Hanley detailed the asset ramp-up, noting Frac-fourteen and processing plants would be near or at full capacity quickly, while the Bahia pipeline would start around 50-60%. Co-CEO Randall Fowler added that while buybacks were opportunistic in Q2, a larger opportunity for repurchases will emerge in 2026 with increased free cash flow.

Spiro Dounis of Citigroup inquired about the expected ramp-up timeline for the $6 billion in assets coming online in the second half of 2025 and the company's capital allocation strategy, particularly the pace of share buybacks.

Answer

Co-CEO A.J. Teague, SVP of Natural Gas Assets Natalie Reagan, and SVP of Pipelines & Marketing Tug Hanley provided ramp-up details, noting the Bahia pipeline will start at 50% capacity and processing plants near 90%. Co-CEO Randall Fowler stated that buybacks were increased due to recent volatility but the larger opportunity for repurchases will be in 2026 as free cash flow increases.

Spiro Dounis asked about the expected EBITDA ramp and cadence from the $6 billion in projects starting up in 2025, questioning how much of the potential $800 million in EBITDA is secured versus dependent on future growth.

Answer

Co-CEO A. Teague, along with executives Natalie Reagan and Tug Hanley, confirmed that the new projects are expected to be highly utilized upon startup. Reagan stated new gas processing plants will be 60-75% full or higher, while Hanley noted export projects are 85-90% contracted. Teague concluded they are confident the projects will be 'fairly full' when they come online, suggesting a strong initial ramp.

Spiro Dounis inquired about the 2025 financial outlook, asking if Q4 2024 results serve as a good run-rate, and also questioned the status of the SPOT deepwater port project, including the likelihood of a 2025 FID and license expiration timing.

Answer

Co-CEO Randy Fowler confirmed the company's view of potential mid-single-digit cash flow growth for 2025, with contributions from new projects weighted toward the second half of the year. Regarding SPOT, Co-CEO Jim Teague stated they are not concerned about permit renewals, having already extended the air permit to 2028, and declined to rule out a 2025 FID.

Spiro Dounis questioned the rationale for buying versus building the Piñon Midstream assets and inquired about the potential impact of a proposed new setback rule in New Mexico on operations.

Answer

Co-CEO A. Teague explained that acquiring Piñon was a strategic decision for speed-to-market, as a greenfield build would have taken approximately three years. Regarding New Mexico, Executive Tony Chovanec stated that the industry can adapt to new rules once they are finalized and that modern horizontal drilling provides operational flexibility.

Spiro Dounis asked about the acceleration in commercial activity within the Gas Distribution and Storage segment, particularly regarding demand from data centers and power generation, inquiring about the driving factors, specific regions, and expected materialization timeframe. He also asked for an update on Line 5 construction, including the Wisconsin Reboot and Michigan tunnel, and how outstanding Michigan items impact next steps.

Answer

Michelle Harradence, EVP and President of Gas Distribution and Storage, explained that demand is broad-based across Ontario, Ohio, and Utah, with significant early and mid-stage data center developments in Ohio and Utah, and coal-to-gas conversions in North Carolina. She noted that data center and power generation opportunities represent about 20% of GDS capital opportunities, alongside core utility growth and storage. Greg Ebel, President and CEO, highlighted the unexpected upside from data centers in Ohio. Collin Grending, Head of Liquids Pipeline Business Unit, stated that Line 5 permitting is gaining momentum, with Wisconsin Reboot findings expected soon for a 2027 completion, and the Michigan tunnel a few years behind.

Spiro Dounis asked about the acceleration in commercial activity within the Gas Distribution and Storage segment, particularly regarding demand from data centers and power generation, inquiring about the driving factors, specific regions, and expected materialization timelines. He also followed up on the Line 5 project, seeking an update on construction plans following a favorable Army Corps decision and the interplay with outstanding Michigan regulatory items.

Answer

Michelle Harradence, EVP and President of Gas Distribution and Storage, explained that acceleration is seen across all utilities, with baseload demand in Ontario, Ohio, and Utah; significant early and mid-stage data center growth in Ohio and Utah (up to 8 GW and 6 GW respectively); and coal-to-gas conversion in North Carolina. Greg Ebel, President and CEO, highlighted unexpected data center opportunities in Ohio and broader tertiary growth from DC/AI. Collin Grending, Head of Liquids Pipeline Business Unit, provided an update on Line 5, noting permitting momentum for the Wisconsin Reboot and Michigan tunnel, with Wisconsin expected to complete in 2027 and the tunnel a few years later, expressing confidence in the DAPL EIS.

Spiro Dounis inquired about Energy Transfer's broader growth backlog beyond currently sanctioned projects, asking if the company could quantify a multi-billion dollar opportunity set or provide a new run rate for CapEx in the current environment. He also sought an update on the Desert Southwest Pipeline, specifically regarding additional interest, plans for upsizing its diameter, and further details on the 400,000 dekatherms per day demand source along the route.

Answer

Tom Long (Co-CEO) stated that while they have a strong backlog of high-returning projects, they couldn't provide specific guidance beyond the $5 billion projected for 2026, but affirmed continued opportunities. Mackie McCrea (Co-CEO) confirmed significant additional interest in the Desert Southwest Pipeline, with at least 1 Bcf above the already sold-out 1.5 Bcf. He indicated the capability to increase capacity by 0.5 Bcf to 1 Bcf, with decisions on pipe size (42 to 48-inch) to be made in the next five to six weeks, having already locked in steel prices. He noted confidentiality prevented further details on the 400,000 dekatherms/day demand source.

Spiro Dounis asked about Energy Transfer's broader growth backlog beyond sanctioned projects, seeking a potential quantification of the total opportunity set or a new run rate for capital expenditures. He also requested an update on the Desert Southwest pipeline, specifically regarding its upsizing potential, additional interest, and a new 400,000 dekatherms/day demand source.

Answer

Tom Long (Co-CEO) mentioned the $5 billion CapEx for next year and a strong backlog of high-returning projects, but could not provide a specific long-term number. Mackie McCrea (Co-CEO) confirmed significant interest in Desert Southwest (at least 1 Bcf above the 1.5 Bcf sold), with capability to increase capacity by 0.5-1 Bcf and flexibility on pipe size, while noting confidentiality on the 400,000 dekatherms/day demand source.

Spiro Dounis from Citigroup Inc. asked about the Hugh Brinson pipeline, questioning the timing for Phase II given that demand exceeds capacity, potential downstream bottlenecks, and the customer types driving demand. He also asked if the $5 billion CapEx plan still supports high growth amid market volatility.

Answer

Executive Mackie McCrea stated that demand for the Hugh Brinson pipeline from customers, including power plants and industrial users, is significantly higher than Phase II capacity. Regarding the $5 billion CapEx, he noted that while they have the flexibility to defer costs if a slowdown persists, it is premature to make such decisions, and the company remains bullish on its long-term outlook and the value of its projects.

Spiro Dounis from Citigroup inquired about the capital return policy, asking if strong EBITDA growth could accelerate distribution growth, and questioned the role of M&A given the high organic CapEx budget.

Answer

Executive Thomas Long reiterated the 3-5% distribution growth target but expressed a desire to move toward the higher end of that range. He stressed that while high-return organic projects are the current focus, M&A remains a crucial component of the company's long-term growth strategy for consolidation in the midstream sector.

Spiro Dounis asked about Targa Resources Corporation's operational leverage and the anticipated free cash flow inflection, specifically questioning the need for future processing plants and fracs beyond current announcements. He also sought details on the intra-basin residue gas opportunity set and its expected return profile.

Answer

CEO Matt Meloy explained that after Speedway and the larger LPG export expansion come online in late 2027, downstream spending should be modest, primarily for rateable fracs depending on G&P growth. Chief Commercial Officer Bobby Muraro detailed the intra-basin residue gas strategy, emphasizing coordination with producers for reliability and redundancy, and confirmed that these investments offer high-quality returns similar to other projects in Targa's portfolio.

Spiro Dounis inquired about Targa Resources Corporation's operational leverage and the upcoming free cash flow inflection, specifically asking about the need for additional processing plants and frac expansions after Speedway and the LPG export expansion. He also asked for details on the intra-basin residue gas opportunity, its potential size, and expected return profile.

Answer

Matt Meloy, CEO, stated that after Speedway and the larger LPG export expansion come online in late 2027, downstream spending should be modest, primarily for rateable fracs, leading to significantly higher EBITDA and strong free cash flow. Bobby Muraro, Chief Commercial Officer, described the intra-basin residue gas strategy as coordinating with producers to enhance reliability and redundancy, generating good fees, and offering high-quality returns consistent with other Targa projects.

Spiro Dounis asked about Targa's ability to continue outperforming Permian basin growth and questioned the medium-term outlook for NGL margins amid concerns of an overbuild and narrower export arbitrage.

Answer

CEO Matthew Meloy attributed Targa's outperformance to its premier asset footprint over the best rock and its strong, stable producer base. President of Logistics & Transportation D. Scott Pryor addressed NGL margins, highlighting that Targa's growing, integrated supply and highly contracted export position insulate it from spot market volatility, while global LPG demand remains strong.

Spiro Dounis asked about Targa's ability to consistently outperform Permian basin growth and for an update on the medium-term outlook for NGL margins amid concerns of an overbuild.

Answer

CEO Matthew Meloy attributed Targa's outperformance to its premier asset footprint over the best rock and its base of large, active producers. President of Logistics & Transportation, D. Scott Pryor, addressed NGL margins, highlighting that Targa's growing, integrated system and highly contracted export business provide resilience against spot market volatility and new competition.

Spiro Dounis inquired about Targa's ability to benefit from market volatility, referencing past optimization gains, and asked for an update on the company's hedging strategy and position relative to its fee floors.

Answer

CEO Matt Meloy confirmed that Targa's growing footprint provides more opportunities to monetize positions, particularly in gas and NGL marketing, which contributed to a strong Q1. He noted that Targa is currently below its fee floors across its G&P footprint, a situation unchanged from the start of the year. Meloy reiterated that the company's hedging strategy is robust, with 90% of its remaining length hedged through 2026, significantly reducing commodity price impact on operating results.

Spiro Dounis inquired about synergies beyond the targeted $40 million, specifically when commercial benefits from being a three-stream operator and revenue synergies from the Aris integration are expected to materialize.

Answer

CEO Oscar Brown stated that commercial conversations are ongoing but specific timelines are hard to control due to customer schedules. He expects revenue synergies on the water side to show up next year, leveraging Aris's systems and relationships. He also anticipates operating synergies beyond the $40 million overhead target, with an update expected in February.

Spiro Dounis asked about Western Midstream Partners' (WES) approach to expanding gas infrastructure in New Mexico, specifically addressing the Acid Gas Injection (AGI) component, and whether it presents a barrier to entry. He also inquired about the timeline for realizing commercial and revenue synergies from the Aris acquisition, beyond the confident $40 million cost synergy target, particularly from becoming a three-stream operator.

Answer

CEO Oscar Brown acknowledged that AGI is a significant challenge in New Mexico due to sour gas, requiring specific skill sets for evaluation and operation, and time for permitting. He affirmed WES's internal capabilities to manage these challenges. Regarding synergies, Oscar Brown expressed high confidence in achieving the $40 million in overhead synergies, noting the integration is progressing rapidly. He anticipates revenue synergies from three-stream operations will take time due to customer timetables but expects water-side revenue synergies to emerge next year, leveraging the combined Aris and WES footprint. He also mentioned potential operational synergies beyond the $40 million, with updates expected in February.

Spiro Dounis of Citigroup asked how Western Midstream's capital allocation priorities might shift in a slower growth environment and questioned the specific drivers for the expected stronger performance in the second half of the year.

Answer

CEO Oscar Brown stated that WES's capital allocation strategy and priorities would not change, emphasizing that a slower organic growth environment could create opportunities for acquisitions. He noted the M&A market is currently robust. For the second half, Brown reiterated that the outlook hasn't materially changed, with growth still expected to be driven by West Texas and the Uinta Basin, and that the company is prepared to adjust capital spending if customer activity changes.

Spiro Dounis of Citigroup inquired about Western Midstream's capital allocation priorities in a potential slower growth environment and sought clarity on the drivers for the expected stronger performance in the second half of 2025.

Answer

CEO Oscar Brown stated that the capital allocation strategy remains unchanged, with a potential shift towards M&A if organic growth slows. He confirmed the outlook for a stronger second half is intact, driven by volume growth in the West Texas and Uinta basins, and reiterated that the company is on track to meet its guidance.

Spiro Dounis of Citigroup Inc. inquired whether the approximately $4 billion annual growth capital expenditure is the right target for the next few years, given the increased pace of commercialization and activity in power innovation across multiple states. He also asked about the balance sheet's capacity to sustain these investment levels. Additionally, Mr. Dounis sought Williams' perspective on the impact of high utility bills and growing opposition to data centers on consumer electric bills, and provided an update on the NESI and Constitution projects post-election day.

Answer

CFO John Porter stated that Williams has identified high-returning organic investment opportunities that align with its balance sheet capacity, aiming to maintain leverage within the 3.5x to 4x target range. He noted that non-regulated power innovation projects are expected to provide significant cash tax deferrals for many years. President and CEO Chad Zamarin emphasized natural gas as an "affordability superpower" for managing energy costs, expressing hope for increased support for natural gas infrastructure. General Counsel Lane Wilson added that the elections are not expected to impact NESI or Constitution, with NESI on a quicker timeline, and both projects are being positioned for readiness upon permit approval.

Spiro Dounis asked about the company's growth outlook and capital spending, specifically if the $4 billion annual CapEx target is sustainable given the increased pace of commercialization, and the balance sheet's ability to support these levels. He also inquired about the impact of high utility bills and growing opposition to data centers on Williams, and provided an update on the NESI and Constitution projects, including any potential influence from election day.

Answer

CFO John Porter explained that the balance sheet's deleveraging after 2025 creates significant capacity for high-returning organic investments, allowing the company to remain within its 3.5-4x leverage target. He noted cash tax deferrals from non-regulated power innovation and the quick online nature of these projects. President and CEO Chad Zamarin emphasized natural gas as an 'affordability superpower' and expressed hope for increased support for infrastructure. General Counsel Lane Wilson stated that election day would not impact NESI or Constitution, and both projects are in good shape, with NESI on a quicker timeline.

Spiro Dounis of Citi asked about the project mix and CapEx profile for the 2028-2030 timeframe. He also inquired about downstream opportunities from the Sabre acquisition and the strategy behind recent smaller-scale M&A.

Answer

President & CEO Chad Zamarin described a strategy of layering long-cycle projects like Power Express with quick-turnaround Power Innovation projects for predictable growth, noting CapEx might rise but remain within balance sheet capacity. He explained the Sabre acquisition extends their Haynesville footprint with future integration potential and reiterated a disciplined M&A approach focused on strategic, bolt-on acquisitions rather than reacting to the market.

Spiro Dounis of Citi questioned the mix of long-cycle versus short-cycle projects in the 2028-2030 timeframe and the associated CapEx outlook. He also asked about the strategy behind the Sabre acquisition and the recent focus on smaller M&A deals.

Answer

President & CEO Chad Zamarin explained their strategy involves layering long-term transmission projects with faster-turnaround Power Innovation projects for predictable growth, noting CapEx might rise but will stay within balance sheet capacity. He described the Sabre deal as a strategic bolt-on that extends their Haynesville footprint, emphasizing that the broader M&A approach remains disciplined and focused on opportunities that leverage their existing assets.

Spiro Dounis questioned whether elevated capital expenditures will be a feature for the next few years given the growing project backlog and if there are any self-imposed spending limits. He also asked about the timing and rationale for the CEO leadership transition.

Answer

CFO John Porter stated that the company has significant balance sheet capacity to fund its high-return organic projects while staying within its 3.5x-4.0x leverage target. CEO Alan Armstrong added that the quick returns from power projects further expand this capacity. Regarding the transition, Armstrong cited the company's strong performance and culture as making it the right time, while EVP Chad Zamarin affirmed his mandate is to continue the successful gas-focused strategy.

Spiro Dounis sought updated thoughts on trade relations and their impact on Cheniere's SPA and commercialization efforts, particularly in light of the President's trip to Asia. He also asked for clarification on the 2026 volume forecast, the cadence for Trains 5 through 7 substantial completion, and the possibility of Train 8 coming online in 2026.

Answer

Jack Fusco, President and CEO, expressed optimism for increased opportunities in Asia, identifying it as a key growth region, and mentioned his upcoming trip. Zach Davis, EVP and CFO, ruled out Train 8 coming online in 2026 due to its current construction status. For Trains 5 through 7, he indicated an expected cadence of spring, summer, and fall substantial completion, respectively, noting that while the current 2026 production range is conservative, further acceleration or improved operational reliability could lead to higher volumes.

Spiro Dounis asked for an update on Cheniere's trade relations and how they impact commercialization efforts, particularly in light of the President's visit to Asia and potential new LNG announcements. He also questioned the conservative nature of the 2026 volume forecast, seeking clarity on the assumed cadence for Trains 5-7 and if Train 8 could potentially start in 2026.

Answer

Jack Fusco, President and CEO, expressed optimism for more opportunities in Asia, which he sees as the primary growth region for the next one to two decades, noting his upcoming trip there. Zach Davis, EVP and CFO, firmly stated that Train 8 will not start in 2026, as it is only 20% complete with no construction. For Trains 5-7, the assumed cadence for substantial completion in 2026 is spring, summer, and fall, respectively. He acknowledged that faster commissioning times (first LNG to substantial completion) could boost P&L volumes and EBITDA, but the current forecast accounts for operational variability.

Spiro Dounis followed up on Cheniere Marketing's (CMI) ability to capitalize on market dislocations, particularly in June. He also asked for management's view on whether widespread cargo cancellations could put significant downward pressure on Henry Hub prices.

Answer

EVP & CCO Anatol Feygin noted that while CMI has the option to lift canceled cargoes, it's not always simple, and opportunities would be limited. Regarding Henry Hub, he suggested that the market is already attempting to price in various factors, including expectations of reduced flows to LNG facilities, making the outcome uncertain.

Spiro Dounis asked about Guardian pipeline's potential to expand further north into Wisconsin, given recent utility announcements and increased interest, and its connection with Viking. He also inquired about the composition of the recently added $500 million to the sanctioned backlog, specifically the mix of pipeline versus gathering projects, and the nature of the remaining $600 million.

Answer

President and CEO David Slater confirmed significant market growth in the Minnesota, Wisconsin, Iowa corridor, noting Guardian's expandability and Viking's strategic location. He expressed focus on disciplined expansion beyond current announcements. Regarding the backlog, Slater highlighted that a disproportionate amount is in the FERC pipeline segment, expressing confidence in the remaining projects and confirming an updated backlog review on the year-end call.

Spiro Dounis inquired about Guardian Pipeline's ability to expand further north into Wisconsin, potential increased interest in Guardian with Viking, and the composition of DT Midstream's sanctioned backlog, specifically the mix of pipeline versus gathering projects.

Answer

David Slater (President and CEO, DT Midstream) affirmed Guardian's expandability and Viking's strategic location, noting robust demand growth in the Minnesota, Wisconsin, Iowa corridor, and DTM's disciplined expansion focus. He expressed satisfaction with the pace of backlog execution, confirming a disproportionate amount is in the highly valued FERC pipeline segment, and promised an updated backlog on the year-end call.

Spiro Dounis from Citigroup asked for an update on quantifying the total growth opportunity set from the recently acquired Midwest pipelines and the expected cadence of future modernization project announcements. He also questioned if 2026 CapEx could be similar to 2025 and asked about the company's self-imposed capital spending limits.

Answer

President & CEO David Slater stated that while the company is excited about the half-billion-dollar investment already sanctioned on the Midwest assets, it plans to update its long-term capital backlog annually rather than quarterly. Regarding future spending, Slater noted that DTM's goal is to fund organic growth with free cash flow. The company's strong balance sheet and investment-grade rating provide flexibility and 'dry powder' to pursue opportunities exceeding free cash flow without jeopardizing its financial health.

Spiro Dounis asked for the latest thoughts on the timeline for the next LEAP pipeline expansion, considering the ramp-up in Haynesville activity and the Woodside LNG FID. He also requested more detail on the expected earnings cadence for the year, given the guidance for a Q2 dip followed by a strong second half.

Answer

President and CEO David Slater reiterated that LEAP expansions will likely continue in 'bite-sized' increments and that the company is well-positioned competitively. He noted the Woodside FID is a positive catalyst but the market needs time to digest it and the new competing pipelines coming online. EVP and CFO Jeffrey Jewell confirmed the second half of the year is planned to be stronger, driven by volume growth and new projects coming online. Slater added that Q1 benefited from robust seasonality due to a colder-than-normal winter.

Spiro Dounis asked about the scale of opportunities beyond the announced projects, whether the $2.3 billion backlog includes data center projects, and for more detail on the outperformance of the Utica system and the nature of its downstream opportunities.

Answer

President and CEO David Slater explained the $2.3 billion backlog is a probability-weighted figure with a significant opportunity set behind it, particularly from the newly acquired ONEOK assets. He clarified that downstream opportunities in the Utica refer to transmission pathways out of the basin, not processing, and expressed high confidence in continued growth and expansion in that region.

Spiro Dounis asked about the 2025 CapEx outlook, the headroom for new projects while remaining free cash flow positive, and the relative attractiveness of M&A given the company's strong organic backlog and equity performance.

Answer

David Slater, President and CEO, and Jeff Jewell, EVP and CFO, reiterated their strict financial policy of operating within free cash flow. Slater noted the commercial team's success in contracting the backlog provides high confidence in growth. On M&A, Slater restated that DTM's disciplined strategy as a pure-play, gas-only midstream company with no commodity exposure remains the 'north star' for evaluating any potential transaction.

Spiro Dounis asked for a high-level overview of the 2026 outlook, including variables impacting various segments and any reasons why 2026 growth might not match 2025. He also questioned the timeframe for the $10 billion / 10 Bcf/day opportunities, the potential for annual CapEx to exceed $3 billion, and the ability to deliver more short-cycle cash flows.

Answer

Kim Dang, CEO of Kinder Morgan, stated it's too early to provide specific 2026 growth rates but outlined tailwinds such as expansion projects, contract escalators, lower interest rates, and tax benefits. Potential headwinds include declines in CO2 and oil volumes, and unknown commodity prices. She explained that regulated projects now have shorter cycles (around three years from sanction to in-service) due to FERC changes, while gathering and intrastate projects are shorter. Ms. Dang affirmed ample free cash flow and balance sheet capacity (3.9x net debt to adjusted EBITDA, with significant room) to handle potential CapEx increases, noting attractive third-party capital is also available.

Spiro Dounis asked for a high-level 2026 outlook, including variables impacting segments and reasons why growth might not match 2025. He also inquired about the timeframe for the $10 billion opportunity set, potential for CapEx above $3 billion, and the ability to deliver short-cycle cash flows.

Answer

Kim Dang (CEO) stated it's too early for specific 2026 growth rates but listed tailwinds like expansion projects, contract escalators, lower interest rates, and tax benefits, alongside headwinds such as potential CO2/oil volume declines and unknown commodity prices. For the $10 billion opportunities, Ms. Dang noted FERC projects typically take 3+ years, but gathering and Texas intrastate projects offer shorter cycles. She expressed confidence in Kinder Morgan's free cash flow ($2.9 billion after dividends) and balance sheet capacity (3.9x debt to EBITDA) to fund potential CapEx increases.

Spiro Dounis of Citi asked for clarity on the visibility of the unsanctioned project backlog, given the $2.5 billion annual spend forecast against the $8.1 billion sanctioned backlog. He also inquired about the operational impact of recent weather events in Q1.

Answer

Kimberly Dang (Executive) clarified that the $2.5 billion annual spend forecast already includes some expectation of future project additions beyond the current backlog, and there is potential for that number to grow. She also stated that recent weather events, including California fires and cold weather, had no material impact on operations due to effective preparation and response.

Spiro Dounis asked for clarification on the second-half 2025 guidance, which appears flat to slightly lower despite volume growth, and questioned the company's ability to execute on bolt-on M&A before the NGL sale closes.

Answer

EVP & CCO Jeremy Goebel explained that the second-half outlook reflects the impact of contract roll-offs on the Cactus I, Cactus II, and Sunrise pipelines, with volume growth helping to backfill that impact. Chairman, CEO & President Willie Chiang stated that the company's financial flexibility and balance sheet capacity allow it to pursue M&A opportunities of all sizes as they arise, independent of the NGL sale's closing timeline.

Spiro Dounis asked for an update on Plains' open long-haul capacity position for 2026 and plans to secure contracts. He also questioned if each bolt-on acquisition increases the potential for a larger-than-baseline distribution increase.

Answer

Jeremy Goebel, an executive, stated the long-haul position is consistent, with Corpus Christi assets contracted and a preference for shorter-term deals on the Basin pipeline until tariffs improve. Willie Chiang, Chairman and CEO, confirmed that accretive bolt-ons conceptually increase the ability to grow the distribution, as the capital allocation framework is designed to return more capital to unitholders when the company performs better.

Spiro Dounis inquired about early producer discussions for 2025 Permian volumes and how recent high-valuation public M&A deals might affect the bid-ask spread for crude pipeline bolt-ons and the company's view on its own stock value for buybacks.

Answer

Chairman & CEO Willie Chiang and EVP & CCO Jeremy Goebel indicated that while 2025 guidance is not set, they anticipate a similar Permian growth range as 2024 (200k-300k bbl/d). Regarding valuations, Goebel emphasized that Plains remains disciplined, noting that its integrated system allows it to capture unique synergies. Chiang added that they believe Plains' stock is undervalued and they are focused on driving its value higher.

Spiro Dounis sought to quantify the open contract capacity on Permian egress pipelines and asked about the drivers behind the updated volume guidance, where intra-basin volumes increased while gathering volumes decreased.

Answer

Executive Jeremy Goebel declined to provide specific figures on open capacity but noted small amounts exist on the Cactus and Basin systems. He explained the guidance change was due to shifting pipeline dynamics, with more barrels moving via intra-basin systems to Colorado City to access alternative takeaway routes like TMX and Wink-to-Webster's extension.

Spiro Dounis of Citigroup inquired about the Parkland acquisition, asking for an update on synergy targets and the impact of recent tax legislation on the Suncorp C-Corp structure. He also asked for the outlook on fuel margins for the second half of 2025 and into 2026.

Answer

COO Karl Fails stated that Sunoco feels 'as good or better' about the Parkland acquisition and is confident in achieving the $250 million synergy target and returning to a 4x leverage target within 12-18 months. Treasurer & SVP - Finance Scott Grischow added that Suncorp dividends are expected to remain at parity with Sunoco LP distributions well past the initial two-year period, aided by favorable tax law changes. CCO Austin Harkness addressed fuel margins, noting that while portfolio changes have impacted reported CPG, the underlying margin environment remains bullish due to elevated breakevens, positioning the segment for a strong second half.

Spiro Dounis of Citi questioned the change in language to "at least 5%" for distribution growth, asking what prompted the change and what could accelerate growth beyond that level. He also inquired about the expected 7-Eleven makeup payment in Q1.

Answer

President and CEO Joseph Kim stated that the "at least" language reinforces strong confidence in the business, its fundamentals, and its ability to accretively grow, calling 5% the floor for 2025 and signaling a multi-year outlook for increases. Chief Commercial Officer Austin Harkness confirmed the 7-Eleven payment is trending higher than last year and will be approximately $30 million.

Spiro Dounis from Citigroup asked for clarification on the Dow contract, including plans for the de-ethanizer tower, payment obligations, and capital redeployment. He also inquired about the status of discussions to expand the Alliance Pipeline.

Answer

SVP Jaret Sprott explained that Pembina continues to evaluate the most cost-effective supply options for the Dow agreement, with the RFS III de-ethanizer remaining a logical choice. He noted that minimal capital was planned for 2025, so the delay has no material impact on current spending. Regarding Alliance, Sprott confirmed strong demand for gas egress and that Pembina is evaluating expansion opportunities, including a full-path expansion or shorter-haul options.

Spiro Dounis asked if recent tariff discussions have reshaped Pembina's long-term project strategy and if new opportunities are emerging. He also requested an update on the potential $200 million capital expenditure increase mentioned in previous guidance.

Answer

President and CEO J. Burrows stated that while there's no immediate financial impact from tariffs, there are positive tailwinds from a changing political sentiment that could speed up project approvals. SVP & CFO Cameron Goldade clarified that about half of the potential $200 million CapEx increase has progressed through internal gates, primarily for the RFS de-ethanizer and Northeast B.C. spending.

Spiro Dounis of Citi requested more detail on the commercialization of McNeil Ranch, including timelines and potential monetization, and asked about the durability of cash flow, particularly how produced water volumes would react to a slowdown in completion activity.

Answer

President and CEO Amanda Brock reported that McNeil Ranch is exceeding expectations with significant inbound interest for surface use like solar and battery storage, and that Aris has already secured 11 permits on the Texas side. She described it as being in the "early innings." Regarding cash flow, executive David Tuerff explained that produced water volumes (70% of the business) are tied to resilient oil production, not just completion activity. Founder and Executive Chairman Bill Zartler added that a completions slowdown could temporarily increase interruptible produced water volumes flowing into their system for disposal.

Speaking on behalf of Spiro Dounis, an analyst from Citi asked for an update on capital allocation priorities and the M&A landscape, given that Aris's leverage is below its target range. A second question focused on the next steps for the company's mineral extraction initiative following the recent iodine milestone.

Answer

CFO Stephan Tompsett reiterated the capital allocation framework: maintaining a strong balance sheet, funding attractive organic and inorganic growth, and sustainably increasing shareholder returns. President and CEO Amanda Brock addressed M&A, noting recent sector activity but emphasizing Aris's disciplined approach to valuation. Founder and Executive Chairman Bill Zartler added that the company is patient for the right opportunities. On mineral extraction, Amanda Brock explained that the letter of intent for iodine involves a partner funding the facility's capital, with Aris likely receiving a royalty, marking a significant step in its beneficial reuse strategy.

Spiro Dounis asked about the operational ramp-up of the expanded Morgan's Point terminal, the strategy for contracting its offtake capacity, and the status of selling three older vessels, including potential buyers and the use of proceeds.

Answer

EVP Randall Giveans confirmed the terminal is fully operational and capable of running at maximum capacity, with a strategy to contract about 90% of the offtake to leave a buffer for spot cargoes. The primary hurdle for new contracts is the tight ethylene arbitrage. CEO Mads Peter Zacho added that discussions to sell the three older vessels are ongoing with multiple potential buyers, and the company believes it is an opportune time to sell given robust vessel values and the ships' age.

Asked about the next steps for the Louisiana gas strategy across its three phases and inquired about the timing for the next Permian processing plant and the directional outlook for 2025 CapEx.

Answer

The Louisiana strategy involves ongoing re-contracting, debottlenecking projects for various demand sources, and planning for the next storage expansion. The next Permian plant is being planned for the Midland Basin, and 2025 CapEx is expected to be roughly flat as Louisiana projects offset reduced CCS spending.