Kinder Morgan, Inc. (NYSE:KMI) Q3 2024 Earnings Conference Call October 16, 2024 4:30 PM ET

Company Participants

Rich Kinder - Executive Chairman
Kim Dang - Chief Executive Officer
Tom Martin - President
David Michels - Vice President and Chief Financial Officer
Sital Mody - President, Natural Gas Pipelines
Anthony Ashley - President, CO2 and Energy Transition Ventures

Conference Call Participants

John Mackay - Goldman Sachs
Michael Blum - Wells Fargo
Theresa Chen - Barclays
Zack Van Everen - TPH
Ann Salisbury - Bank of America
Neal Dingmann - Truist Securities
Jeremy Tonet - JPMorgan
Keith Stanley - Wolfe Research

Operator

Welcome to the Quarterly Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Today's call is being recorded. If you have any objections, please disconnect at this time.

I will now turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan.

Rich Kinder

Okay. Thank you, Ted. Before we begin, as usual, I'd like to remind you that KMI's earnings release today and this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and the Securities and Exchange Act of 1934, as well as certain non-GAAP financial measures.

Before making any investment decisions, we strongly encourage you to read our full disclosure on forward-looking statements and use of non-GAAP financial measures set forth at the end of our earnings release as well as review our latest filings with the SEC for important material assumptions, expectations, and risk factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements.

Over the past few quarters, I've talked about our view of the future demand for natural gas with strong growth being driven by LNG exports, exports to Mexico, and electric generation which is benefiting from the tremendous needs of AI and data centers. Our viewpoint is consistent with most other energy leaders and analysts in the field.

So, the next question is, what's the impact of this growth on a midstream company like Kinder Morgan? We believe it's substantial and positive. In fact, in my decades of experience in the mid-term arena, I've never seen a macro environment so rich with opportunities for incremental build-out of natural gas infrastructure. And at Kinder Morgan, we expect to be a major player in developing that infrastructure.

In July, we announced the approximate $3 billion South System Expansion 4 Project, which is underpinned by long-term shipper commitments and designed to increase our Southern Natural Gas South Line capacity by approximately 1.2 Bcf per day, helping to meet growing power generation and residential commercial demand in the Southeastern US market. Today, we are announcing the expansion of our GCX system in Texas, which will enable our customers who have signed long-term throughput agreements to move substantial additional gas out of the Permian Basin.