Zack Van Everen

Zack Van Everen from TPH&Co. asked if the record Haynesville volumes are now above the minimum volume commitment (MVC) levels in their contracts. He also sought clarification on the expected volume ramp in the Northeast, questioning if Q3 would be flat before a larger increase in Q4.

Answer

President & CEO David Slater declined to provide specific details on MVC levels due to contract sensitivity but noted the downside protections performed as intended and the basin is now in a growth phase. For the Northeast, Slater and CFO Jeff Jewell reiterated expectations for a flat entry-to-exit rate for the full year, with a typical seasonal ramp into the winter. Q2 volumes were impacted by maintenance and the timing of producer activity.

Zack Van Everen inquired about Haynesville volumes, asking if the system is nearing capacity and the mix of customers driving growth. He also asked about the Permian West expansion open season, its potential for upsizing, and the customer mix, including data centers.

Answer

Sital Mody (President of Natural Gas Pipelines) confirmed the Haynesville system is near capacity, expecting new daily volume records, with growth from both the largest customer and other private producers. Kim Dang (CEO) added that Haynesville volumes are up 15% quarter-over-quarter, with a $500 million investment in the basin, and projected 11 Bcf/day growth by 2030. Mr. Mody stated the Permian West open season is for power (including data centers), and bids will be evaluated for capacity accommodation, noting activity in New Mexico.

Zack Van Everen asked for an update on Haynesville volumes, including whether the system is nearing capacity and the customer mix driving this growth. He also inquired about the Permian West expansion open season, specifically if it could be upsized, the customer mix, and if demand extends beyond Texas.

Answer

Sital Mody, President of Natural Gas Pipelines, confirmed that the Haynesville system is nearing capacity and is expected to cross a new daily volume record soon, with growth coming from both the largest customer and other private producers. Kim Dang, CEO, added that Haynesville volumes are up 15% quarter-over-quarter, supported by a $500 million investment, and projected the basin to grow by almost 11 Bcf/day by 2030. Mr. Mody stated that the Permian West expansion serves power demand, and the company will evaluate bids from the open season to accommodate capacity, noting significant power activity in New Mexico.

Zack Van Everen from TPH&Co. inquired about the capacity being added in the Haynesville expansion and the customer mix driving it. He also asked if the Tennessee Gas Pipeline could be further expanded to serve a potential expansion of the Plaquemines LNG facility.

Answer

CEO Kimberly Dang confirmed the Haynesville demand comes from both large public customers and private producers, driven by forecasts of significant production growth. Sital Mody, President of Natural Gas Pipelines, explained that a Plaquemines expansion would create more opportunities for KMI's debottlenecking projects that bring gas from west to east, and they would evaluate all supply options, including from the Haynesville.

Zack Van Everen from TPH&Co. asked if using their own newly acquired LNG carrier for the Atlantic Basin supply deal would create cost savings or upside. He also requested a high-level breakdown of the projected $80-$110 million in Jamaica EBITDA between existing asset synergies and new growth projects.

Answer

EVP & CFO Dana Armstrong confirmed that owning the vessel is cheaper than chartering, which will lead to enhanced, more accretive returns on the Atlantic Basin contract. EVP & Chief Commercial Officer Oliver Simpson explained that while a portion of the projected EBITDA comes from optimizing existing assets with minimal CapEx, all the growth opportunities are enabled by the Jamaica platform, making a precise split difficult. He emphasized the platform gives them a 'right to win' on new projects.

Zack Van Everen of TPH&Co. noted a downward shift in the Powder River Basin's share of the capital program and asked if this was due to lower spending or simply the addition of the North Loving II project. He also asked for a breakdown of expected volume growth in 2026 and whether the DJ Basin outlook remains flattish.

Answer

SVP & CFO Kristen Shults confirmed that spending in the Powder River Basin is slightly lower due to project timing shifts into 2026, and the addition of North Loving II capital also increased the Delaware's share. For 2026, she expects Delaware volumes to increase but stated that a clearer outlook for the DJ Basin and other areas depends on forthcoming producer forecasts.

Zack Van Everen from TPH&Co inquired about the potential EBITDA contribution from new AI-related power projects and asked if the new NGL pipeline looping project was driven by incremental producer growth or by shifting existing volumes.

Answer

Co-CEO Marshall "Mackie" McCrea stated it was too early to provide a specific EBITDA range for the AI power projects but noted they will be "very impactful" and the company is bullish on the opportunity. He confirmed the NGL looping project is to accommodate "incremental growth" from new processing capacity and producer activity in the Delaware Basin.

Zack Van Everen of TPH&Co. asked about the source of initial gas flows for the new Louisiana Energy Gateway (LEG) project. He also requested a macro view on Haynesville and Northeast volumes for the rest of the year amid lower gas prices.

Answer

EVP & COO Larry Larsen explained that LEG volumes are a mix of new well productivity and producers shifting from other markets to access LNG demand. President & CEO Chad Zamarin noted low prices reinforce gas demand. Larry Larsen added that they expect volume growth in the Haynesville and, to a more moderate degree, the Northeast in the second half of the year due to producer activity.

Zack Van Everen of TPH&Co asked about the source of initial gas flows on the new Louisiana Energy Gateway (LEG) project and sought a macro view on producer activity in the Haynesville and Northeast basins.

Answer

EVP & COO Larry Larsen clarified that LEG volumes are a mix of new production ramp-ups and producers shifting from other pipelines to access Gulf Coast markets. President & CEO Chad Zamarin noted that low gas prices are reaffirming demand. Larsen added that rig activity is increasing in the Haynesville, particularly from private operators, while the Northeast is seeing more mixed but still growing activity.