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Industry Trend & Opportunity - Power demand is experiencing a generational opportunity with increased demand not seen in decades [2] - The energy sector needs to add nuclear to the fuel mix for a sustainable, clean, and reliable system [2] - Economic development in Kansas requires nuclear energy [6] Technology & Project - TerraPower's Natrium reactor in Wyoming is scheduled to load nuclear fuel in 2030 [5] - TerraPower is examining deploying Natrium reactors in Evergy's service region in Kansas after the first Wyoming reactor [6] - Natrium reactors are expected to need less than half the concrete, steel, and labor to build, improving the ability to deliver plants at scale [11] - Natrium plant is expected to be a fairly large plant, a third of a gigawatt (0.33 GW) per plant, with built-in energy storage [12] Company Strategy & Collaboration - Evergy will meet near-term power needs with natural gas and solar, but will add nuclear for a sustainable system [2] - Evergy and TerraPower are collaborating to examine deploying Natrium reactors in Kansas [6] - Evergy's safe operation of the Wolf Creek plant for 30+ years has built confidence in nuclear safety and made Kansas welcoming to new nuclear [7] Challenges & Solutions - The main obstacle to nuclear energy is the capital expenditure (capex) [10] - Moving to new technology like TerraPower's Natrium reactor is essential to reduce capital intensity [8][11]

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Project Overview - Utah is collaborating with TerraPower, backed by Bill Gates, to identify locations for a nuclear reactor project [1] Energy Demand - Utah aims to meet increasing power demand through this project [1]

Weather Forecast - Japan's national weather forecaster predicts high temperatures will persist for another month [1] Power Demand - The sustained heat could keep power demand high [1]

Power Outage - Iraq experienced a near nationwide blackout due to high power demand caused by extreme heat [1] - Transmission line failure triggered the blackout [1]

Weather Impact - Nearly half of the US population will experience hot and humid conditions, increasing power demand [1] - Elevated temperatures and humidity from Chicago to NYC and New Orleans pose health risks [1]

Power Demand & Supply - The largest US grid's business and household customers will pay $16.1 billion to ensure sufficient electricity supply [1] - This payment addresses soaring power demand [1]

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]

Demand Forecast - UK power demand is set to increase due to higher population growth rates [1] - Electrification of the economy contributes to the increase in power demand [1] Source - National Energy System Operator provides the forecast [1]