Now that President Trump’s One Big Beautiful Bill Act is law, the fight has begun over who wins and who loses from its tax-and-spending changes https://t.co/z3iAwdJJDv ...

House Republicans are starting work on a follow-up to their recently enacted tax-and-spending law, aiming to pass provisions that were removed from Trump’s “one big, beautiful bill" https://t.co/MB2RCdBe2N ...

Core Insights - The article discusses the current state of the gold and silver markets, highlighting trends and price movements in these precious metals. Group 1: Gold Market - The article notes that fine gold is currently priced at 999.9, indicating high purity levels in the market [1]. - There is a mention of the historical context of gold prices, suggesting a long-standing value associated with gold as a commodity [2]. Group 2: Silver Market - Similar to gold, fine silver is also highlighted with a purity level of 999.9, reflecting its quality in the market [1]. - The article implies that the silver market is experiencing trends that may align with those observed in the gold market, although specific price movements are not detailed [2].

Core Insights - Verizon Communications reported record quarterly adjusted EBITDA of $12.8 billion, a 4.1% increase year-over-year, and wireless service revenue of $20.9 billion, up 2.2% year-over-year [1] - The company raised its full-year 2025 guidance for adjusted EBITDA growth to 2.5%-3.5%, adjusted EPS growth to 1%-3%, and free cash flow guidance to $19.5 billion-$20.5 billion, citing operational outperformance and tax reform benefits [1][9] Financial Performance - Year-to-date free cash flow reached $8.8 billion, a 3.6% increase compared to the prior year, while operating cash flow climbed to $16.8 billion [2] - The recently approved federal tax reform is expected to contribute an additional $1.5 billion to $2 billion in free cash flow for 2025, enhancing capital allocation flexibility [2][3] Infrastructure Development - Verizon surpassed 5 million fixed wireless access (FWA) subscribers, adding 278,000 net subscribers in the quarter, and is on track to reach 8 million to 9 million FWA subscribers by 2028 [4][5] - The C-band spectrum deployment is ahead of schedule, expected to cover 80%-90% of planned sites by year-end, while fiber build is also exceeding plans with a target of 650,000 new passings this year [4][9] Customer Strategy - Despite a consumer postpaid phone churn rate of 0.9%, Verizon reduced net losses to 51,000 from 109,000 in the prior year, and improved core prepaid net additions by 62,000 year-over-year [6] - The company expects prepaid to positively contribute to wireless service revenue growth for the remainder of 2025, reflecting effective brand segmentation and execution [7]

Financial Performance - The company reported strong financial performance with wireless service revenue of $20.9 billion, up 2.2% year over year [5][25] - Adjusted EBITDA reached $12.8 billion, marking a 4.1% increase year over year, setting a record for the best reported quarter [5][27] - Free cash flow for the quarter was $5.2 billion, bringing year-to-date free cash flow to $8.8 billion, an increase of over $300 million compared to the first half of 2024 [5][29] Business Line Performance - The company achieved over 300,000 net additions across Mobility and Broadband platforms in the second quarter [8] - Fixed wireless access subscribers surpassed 5.1 million, with a goal of reaching 8 to 9 million by 2028 [11][23] - Fios Internet net additions were 32,000, compared to 28,000 in the prior year period, indicating robust growth in broadband [23] Market Performance - The wireless market remains competitive, with elevated postpaid phone churn due to pricing actions and competitive pressures [10][18] - The company is focused on improving retention through enhanced value propositions and AI-powered customer experience innovations [10][19] - The company expects mid-single-digit growth in upgrade activity for the full year [22] Company Strategy and Industry Competition - The company is committed to disciplined execution and customer-centric innovation, focusing on profitable connections and customer relationship value [4][34] - The strategic segmented market approach is resonating with customers, driving significant sales momentum [6][35] - The company is raising its full-year guidance for adjusted EBITDA and free cash flow, reflecting strong operational performance and tax reform benefits [7][32] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the business's future, highlighting strong performance in the first half of the year and the effectiveness of their strategy [4][34] - The company anticipates continued service revenue growth, supported by healthy underlying customer economics [26][27] - Management noted that the regulatory approval process for the Frontier acquisition is progressing as planned, which will further accelerate fiber expansion [14][24] Other Important Information - The company is actively pursuing cost efficiency programs, including copper decommissioning and managed services initiatives [28][30] - The balance sheet remains strong, with a focus on reducing debt ahead of the Frontier transaction [31] Q&A Session Summary Question: Inquiry about free cash flow and capital allocation - Management indicated that capital allocation priorities remain unchanged, focusing on business investments, dividends, debt reduction, and potential buybacks [41][42] Question: Discussion on consumer wireless outlook - Management confirmed the ambition for consumer net add improvement in 2025, while maintaining financial discipline [46][47] Question: Clarification on postpaid ARPA growth deceleration - Management acknowledged the deceleration but highlighted ongoing growth drivers and the potential for future improvements [56][58] Question: Update on broadband market trends - Management noted a consistent performance in Fios and strong demand for fixed wireless access, with expectations for better performance in the second half of the year [75][76]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 6% and adjusted EPS increased by 12% compared to the previous year [7] - Net income attributable to Kinder Morgan was $715 million, a 24% increase from the second quarter of 2024 [19] - Adjusted net income was $619 million, with adjusted EPS of $0.28, reflecting a 13% increase from the previous year [20] - The company ended the quarter with $32.3 billion in net debt and a net debt to adjusted EBITDA ratio of 4.0x, down from 4.1x in the previous quarter [21] Business Line Data and Key Metrics Changes - Natural gas transport volumes were up 3% due to LNG deliveries, while natural gas gathering volumes were down 6% [14] - Refined products and crude volumes were both up 2% compared to the previous year [15] - The CO2 segment saw a 3% decrease in oil production volumes but a 13% increase in NGL volumes [18] Market Data and Key Metrics Changes - U.S. natural gas demand is expected to grow by 20% by 2030 according to Wood Mackenzie estimates [9] - LNG feed gas demand in the U.S. is projected to increase by 3.5 BCF per day this summer compared to 2024, and more than double by 2030 [5] Company Strategy and Development Direction - The company aims to own and operate stable fee-based assets core to energy infrastructure, using cash flow to invest in attractive return projects while maintaining a solid balance sheet [13] - The strategy remains focused on expanding natural gas pipeline networks to support growing demand, particularly in LNG and power sectors [15][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of natural gas, driven by increasing global demand and U.S. LNG exports [3][5] - The federal permitting environment has improved, allowing for quicker project approvals, which is expected to benefit future growth [10][90] Other Important Information - The project backlog increased from $8.8 billion to $9.3 billion during the quarter, with $1.3 billion in new projects added [11] - The company expects significant cash tax benefits in 2026 and 2027 due to recent tax reforms [10][52] Q&A Session Summary Question: Changes in the commercial landscape and competitive advantages - Management highlighted the existing asset footprint and a strong track record in project delivery as key competitive advantages [28][29] Question: Progress on natural gas infrastructure expansion in Arizona - Management acknowledged the need for more natural gas in Arizona and mentioned ongoing discussions regarding potential projects [31] Question: Capital allocation between gas pipelines and gathering investments - Management reiterated that investment decisions are based on risk-reward assessments, with no changes in their approach [36] Question: Update on behind-the-meter opportunities - Management noted that most activity is seen from regulated utilities, with potential for independent power producers to announce projects [40] Question: Trends in gas demand and project mix - Management indicated that while LNG is a significant driver of demand growth, power demand is also expected to grow substantially [49] Question: Impact of tax reform on cash flow and project financing - Management confirmed that tax reform will provide benefits starting in 2025, but it will not change their investment strategy or return thresholds [54] Question: Concerns about potential oversupply in the LNG market - Management stated that they have not seen a slowdown in discussions with LNG customers and continue to see new projects being announced [105][106]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 6% and adjusted EPS increased by 12% compared to the previous year [9] - Net income attributable to Kinder Morgan was $715 million, a 24% increase from the second quarter of 2024 [20] - Adjusted net income was $619 million, with adjusted EPS of $0.28, reflecting a 13% increase from the previous year [21] - Net debt at the end of the quarter was $32.3 billion, with a net debt to adjusted EBITDA ratio of 4.0x, down from 4.1x in the previous quarter [22] Business Line Data and Key Metrics Changes - Natural gas transportation volumes were up 3% due to LNG deliveries, while natural gas gathering volumes decreased by 6% [16] - Refined products and crude volumes both increased by 2% compared to the previous year [17] - The CO2 segment saw a 3% decrease in oil production volumes but a 13% increase in NGL volumes [19] Market Data and Key Metrics Changes - U.S. natural gas demand is expected to grow by 20% by 2030, with significant contributions from LNG exports [10] - LNG feed gas demand in the U.S. is projected to increase by 3.5 BCF per day this summer compared to 2024, and more than double by 2030 [7] Company Strategy and Development Direction - The company aims to own and operate stable fee-based assets, using cash flow to invest in attractive return projects while maintaining a solid balance sheet [14] - The project backlog increased from $8.8 billion to $9.3 billion, with new projects added and existing projects placed in service [12] - The company is focused on expanding its natural gas pipeline network to support growing demand [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of natural gas demand, driven by population growth and the transition to cleaner energy sources [4] - The federal permitting environment has improved, allowing for quicker project approvals [10] - Management expects significant cash tax benefits from recent tax reforms, with no material cash tax liability anticipated until 2028 [11] Other Important Information - The company declared a quarterly dividend of $0.29 per share, an increase of 2% from the previous year [20] - Moody's and S&P have placed the company's credit rating on a positive outlook [25] Q&A Session Summary Question: Has the commercial landscape changed with demand tailwinds? - Management noted that their existing asset footprint and track record in project delivery have allowed them to remain competitive in securing projects [28] Question: What is the progress on building additional natural gas infrastructure in Arizona? - Management acknowledged the need for more natural gas in Arizona and mentioned ongoing discussions regarding potential projects [31] Question: How does the company view capital allocation between gas pipelines and gathering investments? - Management emphasized that investment decisions are based on risk-reward assessments, with no change in their approach to capital allocation [36] Question: What is the outlook for behind-the-meter opportunities? - Management indicated that most activity is seen from regulated utilities, with potential for future projects as IPPs secure contracts [40] Question: How does the company view the risk of Permian overbuild? - Management expressed confidence in their existing contracts and the ability to extract value from their pipelines, viewing the risk as low [80][82] Question: What is the expected timeline for the Haynesville gathering project? - Management plans to have facilities in service by the end of the fourth quarter next year, with volume ramp-up expected [87]

Investment Rating - The report maintains an overweight stance on Financials and Industrials sectors, indicating a positive outlook for these areas [6][31]. Core Insights - The equity market has shown resilience despite new tariff announcements due to limited import cost exposure for S&P 500 industries, perceived temporary nature of higher tariff rates, and significant drawdowns already experienced by tariff-sensitive equities [5][7]. - The new tax bill is supportive of large-cap equity indices, with reinstated and expanded expensing likely to lower the "cash" tax rate, positively impacting cash flow for companies, particularly in Tech, Communication Services, and Healthcare sectors [21][22][30]. - Earnings revisions breadth has improved significantly, transitioning from -25% in mid-April to +3% currently, which has supported market stability amid trade and macroeconomic uncertainties [6][13]. Summary by Sections Tariff Impacts - Limited import cost exposure for S&P 500 industries due to exemptions and ongoing negotiations has mitigated immediate risks from tariffs [5][8]. - Significant risks remain if tariff rates on China increase or if the USMCA exemption for Mexico is discontinued, which could affect multiple industries with high import cost exposure [10][21]. Tax Bill Implications - The "One Big Beautiful Bill" is expected to enhance cash flow for large-cap corporates through upfront R&D expensing and bonus depreciation, particularly benefiting capital-intensive sectors [21][30]. - The Foreign-Derived Intangible Income (FDII) incentive is designed to encourage US companies to retain intellectual property domestically, benefiting sectors with significant foreign sales [34][35]. Earnings Revisions and Market Trends - The breadth of earnings revisions has shown a positive trend, with Financials and Industrials sectors experiencing the most significant rebounds [6][13][24]. - The upcoming earnings season is expected to reflect a low bar for 2Q earnings, with a consensus expectation of 4% year-over-year EPS growth and 3% sales growth [52][63].

Tax Policy & Economic Impact - The 2017 Tax Cut and Jobs Act included progrowth elements through redesigning the tax code [5] - The corporate tax rate cut was considered a thoughtful and well-done aspect of the 2017 tax law [3] - Individual tax provisions were temporary due to affordability and lower priority for economic growth [3] - Letting the 2017 tax cuts expire would have resulted in a tax hike for everyone [6] Bipartisan Elements & Middle Class Tax Cuts - The middle class tax cuts, Main Street 20% tax deduction, and child tax credit were intended to be bipartisan [5] - A significant portion of tax cuts will accrue to those who pay taxes [5] Medicaid & Social Safety Net - Dramatic cuts to Medicaid could increase the number of uninsured by 12 million [8] - Medicaid is considered a cost-effective program because it pays providers so little [10] - Philosophical opposition exists to leaving individuals without treatment, suggesting upfront insurance coverage is preferable [11][12]

Tax Reform - The government's approach to tax reform has been least impressive [1] - Britain's tax system is full of provisions that distort the economy and block growth [1]