Financial Data and Key Metrics Changes - The company reported strong financial results for Q1 2025, with natural gas demand growing by 6.8 billion cubic feet per day, driven by a 10% increase in residential and commercial demand and a 15% increase in LNG demand [14] - The project backlog increased to $8.8 billion after adding approximately $900 million during the quarter, with over 70% focused on serving power demand [15][16] - The acquisition of the Bakken Gathering and Processing System for $640 million was completed, although it had minimal impact on quarterly results due to a short ownership period [19][20] Business Line Data and Key Metrics Changes - Transport volumes in the natural gas business unit increased by 3% compared to Q1 2024, achieving new peak day volume records [25][26] - The largest project in the backlog, Bridge, is a $430 million extension of the Elba Express pipeline, expected to deliver 325 million cubic feet per day into South Carolina [16] Market Data and Key Metrics Changes - U.S. natural gas demand rose from approximately 60 BCF per day in 2005 to almost 109 BCF per day in 2024, marking an increase of roughly 80% [4] - Future growth in natural gas demand is projected to be between 20 and 28 BCF per day by 2030, primarily driven by increased LNG export demand [5][6] Company Strategy and Development Direction - The company remains bullish on U.S. LNG exports, citing factors such as increased demand from the EU and Asia to offset any potential loss from the Chinese market [9][10] - The company is focused on long-term contracts with creditworthy entities to support its projects, ensuring stable cash flow and a strong balance sheet [21] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for 2025 due to uncertainties surrounding tariffs and commodity prices, although they do not expect a material impact from tariffs [19] - The company anticipates that the $7 trillion in new U.S. investments could drive additional demand not currently captured in projections [15] Other Important Information - Management succession plans were discussed, with Tom Martin set to retire in January 2026, and Dax Sanders to succeed him as president [22][23] Q&A Session Summary Question: Impact of tariffs on project economics - Management does not believe tariffs will significantly impact project economics, estimating the impact to be roughly 1% of project costs for new large projects [17][18] Question: Performance of the Bakken Gathering and Processing System acquisition - The acquisition is performing in line with expectations, despite having only been owned for 45 days during the quarter [20]

Financial Data and Key Metrics Changes - The company expects its expansion capital program to be around $2 billion, with potential variations between $2 billion and $2.4 billion, indicating a stable financial outlook for future investments [49] - Current leverage is around four times, with expectations for it to drift lower over time as new projects come online, creating capacity for further share repurchases [51] Business Line Data and Key Metrics Changes - Kinder Morgan moves 40% of U.S. natural gas and serves about 20% of the power demand across the U.S., with 40% of the power demand within the Texas market, highlighting its significant market position [7] - The company has signed 1.2 Bcf per day of commitments for the Southern Natural Gas expansion project, which is a three Bcf per day project, indicating strong demand in the Southeast markets [11] Market Data and Key Metrics Changes - Wood Mackenzie projects natural gas demand to grow from 108 Bcf per day to 128 Bcf per day by 2030, with significant contributions expected from LNG and exports to Mexico [12] - The peak power demand in Texas increased from 70 gigawatts in 2018 to 86 gigawatts in 2023, reflecting a 16 gigawatt increase and indicating robust growth in power demand [6] Company Strategy and Development Direction - The company is focusing on expanding its natural gas infrastructure to meet increasing power demand driven by population migration and industrial growth in states like Texas and Arizona [4] - Kinder Morgan is also investing in renewable diesel and RNG assets, with ongoing projects aimed at enhancing its renewable fuel infrastructure [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of power demand, particularly from data centers and AI, and believes that the overall power demand is underestimated by some analysts [13][15] - The company is optimistic about the regulatory environment, noting recent positive rulings that could facilitate future projects [33][34] Other Important Information - The company has completed a 5 Bcf storage project and is looking at additional storage opportunities, indicating a proactive approach to increasing storage capacity amid growing market volatility [30] - The company is exploring both brownfield and greenfield storage projects, with expectations that greenfield storage will become viable as storage rates remain high [31] Q&A Session Summary Question: Can you provide insights on the macro backdrop for natural gas demand? - Management highlighted ongoing commercial discussions related to over five Bcf per day of opportunities, with 1.6 Bcf per day specifically tied to data center demand [2][3] Question: What is the status of the Southern Natural Gas expansion? - The company confirmed binding commitments of 1.2 Bcf per day for the expansion project, with an expected in-service date in late 2028 [11] Question: How does the company view the supply picture in the near and long term? - Management provided projections for supply growth from various regions, indicating a strong position to meet demand, particularly from the Eagle Ford and Permian basins [18][20] Question: What are the expectations regarding regulatory developments? - Management noted positive recent rulings and expressed optimism about navigating the regulatory landscape effectively [33][34] Question: Can you update on the renewable diesel and RNG projects? - The company reported progress in renewable diesel capacity and ongoing challenges in ramping up RNG facilities, with expectations for improved performance in the near future [44][46]