Financial Data and Key Metrics Changes - The company reported a quarter-on-quarter revenue increase of 7%, translating to a year-on-year growth of 2% [30][42] - The net profit margin improved to 21.4%, with a cash flow margin of 52.1% [31][55] - Year-on-year subscriber growth was 1.1%, with a 2% increase in the second quarter [32] Business Line Data and Key Metrics Changes - Digital revenue rose by 13%, with nearly 30% of total revenue now flowing through digital channels [7] - MyGP users grew by 12% year-on-year, contributing significantly to revenue [7][14] - The company saw a year-on-year increase in content revenue, driven by new affordable Internet packs [15] Market Data and Key Metrics Changes - The telecommunications industry in Bangladesh recorded a total of 187.61 million subscribers as of May 2025, reflecting an increase of 1.39 million since March 2025 [3] - Mobile data users increased by 1.46 million, reaching 117.68 million in May 2025 [3] Company Strategy and Development Direction - The company is modernizing its mobile network to a cloud-native architecture, preparing for 5G standalone capabilities [6] - A strategic focus on AI integration is evident, with plans to embed AI across operations and customer engagement [20][64] - The company is committed to maintaining dividend payouts, declaring an interim dividend of 11 Taka per share [8][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a stronger outlook as the political and economic landscape stabilizes [6] - The company is cautious about capital spending due to macroeconomic uncertainties but remains ready to invest when conditions allow [56][58] - The management highlighted the importance of maintaining ARPU growth in line with inflation to protect margins [40][41] Other Important Information - The company achieved a significant milestone in regulatory collaboration, allowing local mobile balances to be used internationally for the first time [10][11] - Cybersecurity remains a top priority, with advancements in AI-driven monitoring capabilities [61] Q&A Session Summary Question: What is the company's outlook on subscriber growth? - The company noted a positive development in subscriber growth, with a strong brand and network contributing to lower churn rates, now below 14% [35] Question: How does the company plan to manage costs amid rising data demands? - The company is focusing on cost discipline and leveraging cloud and AI technologies to manage operational costs effectively [44][46] Question: What are the expectations for ARPU in the coming quarters? - The company aims to keep ARPU growth in line with inflation to ensure financial capacity for future investments [40][41]

Financial Data and Key Metrics Changes - The telecommunications industry in Bangladesh recorded a total of 187.61 million subscribers as of May 2025, reflecting an increase of 1.39 million subscribers since March 2025 [3] - The company reported a quarter-on-quarter revenue increase of 7%, translating to a year-on-year growth of 2% [6][29] - The net profit margin improved to 21.4%, with a cash flow margin of 52.1% [30][56] - The company declared an interim dividend of 11 Taka per share, amounting to 15 billion Taka for shareholders [53] Business Line Data and Key Metrics Changes - Digital revenue rose by 13%, with nearly 30% of total revenue now flowing through digital channels [7] - MyGP users grew by 12% year-on-year, indicating stronger momentum in the digital business [7] - The company saw a year-on-year growth of 1.1% in subscribers, with a 2% increase in the second quarter [31] Market Data and Key Metrics Changes - The point-to-point inflation rate decreased to 8.48%, the lowest in 35 months, while the foreign exchange reserves stood at 20.9 billion USD [4] - Bangladesh's GDP growth for fiscal year 2024 and 2025 has been revised to around 3.8% [5] Company Strategy and Development Direction - The company is modernizing its mobile network to a cloud-native architecture, preparing for 5G standalone capabilities [6] - A strategic focus on digital growth is evident, with initiatives to expand products and capabilities in areas like content and edtech [7][12] - The company is embedding AI across operations, aiming to become an AI-native telecom [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a stronger outlook as the political and economic landscape stabilizes [6] - The company is taking a cautious approach to capital spending due to macroeconomic uncertainties [25][58] - Management highlighted the importance of maintaining ARPU growth in line with inflation to protect margins [40][41] Other Important Information - The company achieved a significant regulatory milestone by introducing tailored roaming packs, resulting in a year-on-year increase in roaming revenues [11] - The company is committed to cybersecurity, with AI-driven monitoring capabilities reducing threat detection time by half [62] Q&A Session Summary Question: What is the company's outlook on subscriber growth? - The company noted a positive development in subscriber growth, with a year-on-year increase of 1.1% and a 2% increase in the second quarter, supported by festive periods and holidays [31][32] Question: How is the company managing costs amid economic challenges? - The company emphasized a strong focus on cost discipline and capital discipline, resulting in stable costs despite revenue increases [44][50] Question: What are the company's plans for future investments? - The company plans to be cautious with capital expenditures in the upcoming quarters due to macroeconomic uncertainties but is ready to invest when conditions allow [58]

Financial Data and Key Metrics Changes - Revenue decreased by 10% sequentially to $3 billion, with net income attributable to Alcoa at $164 million compared to $548 million in the prior quarter, resulting in earnings per share of $0.62 [10][11] - Adjusted EBITDA was $313 million, down $542 million sequentially, primarily due to lower alumina and aluminum prices and increased U.S. Section 232 tariff costs [11][12] - Year-to-date return on equity was positive at 22.5%, with cash flow from operations providing $488 million [15][14] Business Line Data and Key Metrics Changes - In the Alumina segment, third-party revenue decreased by 28% due to lower average realized prices, partially offset by increased shipments [10] - The Aluminum segment saw a 3% increase in third-party revenue due to increased shipments and favorable currency impacts, despite a decrease in average realized prices [10][11] - Adjusted EBITDA for the Alumina segment decreased by $525 million, while the Aluminum segment's adjusted EBITDA decreased by $37 million, impacted by U.S. Section 232 tariff costs [12][13] Market Data and Key Metrics Changes - Alumina prices rebounded somewhat after a sharp decline, with over 80% of Chinese refineries operating at a deficit due to high bauxite prices [27] - U.S. Midwest premium increased to $0.68 per pound but remains below the estimated $0.75 needed to fully offset tariff costs [30][55] - Demand conditions remain steady in Europe and North America, with mixed sector performance; electrical and packaging sectors are performing well, while automotive is affected by tariff-related uncertainty [32] Company Strategy and Development Direction - The company is focused on executing its 2025 priorities, enhancing operational competitiveness, and navigating market dynamics to deliver long-term value [36] - Alcoa is advocating for trade policies that support both the company and the broader U.S. aluminum industry, while also redirecting Canadian production to non-U.S. customers to mitigate tariff impacts [9][77] - The long-term demand forecast for aluminum remains robust, driven by megatrends in transportation, construction, packaging, and electrical sectors [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while tariffs create near-term volatility, the broader outlook for aluminum demand remains strong, supported by global megatrends [23][26] - The company expects aluminum shipments to be adjusted to 2.5 to 2.6 million metric tons for the year, down from an initial estimate of 2.6 to 2.8 million metric tons due to disruptions at the San Ciprian smelter [16] - Management expressed confidence in navigating the challenges posed by tariffs and market dynamics, with plans to continue engaging with policymakers [8][77] Other Important Information - The company successfully concluded a five-year tax dispute in Australia with a favorable ruling, affirming no additional tax owed [7] - Alcoa's cash position at the end of the quarter was $1.5 billion, with plans to use proceeds from the sale of its stake in the Mauden joint ventures to pay related taxes and transaction fees [14][15] - The company is progressing with approvals for new mine regions in Western Australia, although timelines have been extended due to the complexity of the process [34][36] Q&A Session Summary Question: Impact of potential 50% tariffs on Brazil - Management indicated that the impact depends on whether alumina is excluded from the tariffs, with options to source from Western Australia if necessary [40][41] Question: Contingency plans for Western Australia - Management stated that no cost impact is anticipated for 2025 or 2026, with contingency plans in place to manage delays [42][46] Question: Tariff costs and Midwest premium offset - Management clarified that the second quarter tariff costs were approximately $115 million, with a Midwest premium uptick of about $60 million, resulting in margin compression [50][51] Question: San Ciprian cash burn expectations for 2026 - Management noted that while the smelter is expected to be profitable post-ramp-up, the refinery will likely incur losses [60][62] Question: Restarting spare capacity at Warrick - Management explained that restarting the fourth line at Warrick requires significant investment and time, making it contingent on tariff stability [68][70] Question: Discussions with the government regarding tariffs - Management emphasized ongoing advocacy efforts to educate the government on the aluminum market's tightness and the importance of U.S.-Canada supply chains [116][120] Question: Capital management and debt reduction - Management indicated progress in reducing net debt, with plans to evaluate capital allocation priorities once the target range is reached [120][121]

Financial Data and Key Metrics Changes - The company reported record full-year results of $2,800,000,000, up 20% over the prior year [8] - Adjusted EBITDA margin increased by 140 basis points to 11.8% in fiscal year 2025 [8] - Adjusted diluted earnings per share reached $3.91 compared to $3.33 last year, reflecting a 32% increase [9] Business Line Data and Key Metrics Changes - Parts Supply sales grew 17% to $306,000,000, with above-market growth of over 20% in new parts distribution activities [18][19] - Repair and Engineering sales increased 3% to $223,000,000, with organic sales growth of 8% when excluding the landing gear divestiture [21] - Integrated Solutions adjusted sales increased by 10% year over year to $181,500,000 [22] Market Data and Key Metrics Changes - Sales to government customers increased by 21%, while sales to commercial customers rose by 12% from the same period last year [17] - Total commercial sales accounted for 69% of total sales, with government sales making up the remaining 31% [17] Company Strategy and Development Direction - The company aims to expand market share in new parts distribution and parts supply, while also adding capacity to its heavy maintenance network [26][27] - Focus on achieving $10,000,000 in annual cost synergies from product support integration and continuing the rollout of paperless initiatives [27] - The company plans to pursue accretive acquisitions and optimize its portfolio for further growth [28] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales growth to approach 9% for fiscal year 2026, with Q1 sales growth projected between 6% to 11% [31][32] - The company remains confident in its position within the airframe MRO market, despite potential capacity cuts from competitors [78] Other Important Information - The company reduced its net debt leverage from 3.06 to 2.72x, driven by strong cash flow and proceeds from the landing gear divestiture [24] - The Trax software solution has doubled its revenue from $25,000,000 to $50,000,000 since acquisition, with significant growth opportunities ahead [46][47] Q&A Session Summary Question: Can you discuss the first quarter guidance for revenue growth? - Management indicated that the wide range in guidance is influenced by the USM environment and larger transactions that may fluctuate [38] Question: What caused the step down in adjusted EBITDA margins in the repair and engineering segment? - The margin decline was attributed to the closure of the New York facility, leading to stranded costs, which are expected to improve as the facility exits [40] Question: Where could we see the most margin improvement in 2026? - Management highlighted that repair and engineering has the most opportunity for margin improvement due to completed integration and expected synergies [41] Question: What is the long-term view of Trax's revenue potential? - Management expressed confidence in doubling Trax's revenue again, driven by new business wins and upgrades of existing customers to new offerings [46][47] Question: Can you provide details on the Kira joint venture? - The joint venture aims to access specific DoD markets and allows the company to bid on contracts it could not pursue independently [75]

Financial Data and Key Metrics Changes - For the second quarter, diluted earnings per share increased to $0.86 from $0.72 in the linked quarter [20] - Net interest income rose to $42.5 million compared to $38.5 million in the linked quarter [20] - The net interest margin (NIM) improved to 4.07% from 3.81% in the linked quarter, positively impacted by a one-time interest recovery [21] Business Line Data and Key Metrics Changes - Loans held for investment increased by $23.1 million, or 3% annualized, to $3.1 billion in the second quarter [12] - The yield on loans increased to 6.99% from 6.67% in the linked quarter, boosted by a one-time interest recovery [12] - Non-interest income grew to $12.2 million from $10.6 million in the linked quarter, primarily due to increased mortgage banking revenues [18] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $26 million to $1.01 billion, with heightened loan payoffs exceeding new loan production [16] - The indirect auto loan portfolio modestly decreased to $241 million from $243 million in the linked quarter, reflecting changes in consumer spending behavior [17] Company Strategy and Development Direction - The company is pursuing a strategy focused on both organic growth and mergers and acquisitions (M&A) to increase bank assets [7][9] - The organic growth strategy emphasizes expanding lending capabilities and enhancing core deposit growth [8] - The company remains interested in accretive acquisitions but has not yet found suitable opportunities that meet its criteria [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic growth in Texas and the potential for loan growth to reaccelerate [16] - The company is cautiously optimistic about maintaining resilient economic growth across Texas markets in the second half of 2025 [18] - Management highlighted the importance of proactive management of the loan portfolio to address challenges and maintain credit quality [5] Other Important Information - The consolidated common equity Tier one risk-based capital ratio was 13.86% as of June 30, 2025, indicating a strong capital position [10] - The company recorded a provision for credit losses of $2.5 million in the second quarter, largely due to increased specific reserves and net charge-off activity [23] Q&A Session Summary Question: Loan pipeline and growth outlook - Management indicated that loan growth is expected to be flat to low single digits for the third quarter due to higher loan payoffs, but they feel good about the pipeline and originations [27][28] Question: Balance between hiring and M&A - Management confirmed that they intend to continue hiring new lenders even if they find suitable M&A opportunities, emphasizing the importance of relationship banking [30][31] Question: Increase in specific reserves - The increase in specific reserves was attributed to several loans entering non-accrual status and a conservative approach to credit quality management [32][33] Question: Margin outlook and deposit costs - Management discussed the potential for NIM expansion and the impact of deposit pricing on overall margins, indicating a focus on managing costs effectively [38][39] Question: M&A environment and valuation expectations - Management noted that buyer expectations are a significant impediment to M&A activity, but they are actively looking for opportunities that align with their culture and financial criteria [44][45] Question: Mortgage banking performance - Management indicated that mortgage banking performance has been flat but remains profitable, with a focus on maintaining relationships during challenging times [50][51] Question: Non-interest bearing deposits growth - The growth in non-interest bearing deposits was attributed to improved treasury management solutions and a focus on relationship building with existing customers [63][64]

Financial Data and Key Metrics Changes - For the second quarter, diluted earnings per share increased to $0.86 from $0.72 in the linked quarter [21] - Net interest income rose to $42.5 million compared to $38.5 million in the linked quarter [21] - The net interest margin (NIM) improved to 4.07% from 3.81% in the linked quarter, positively impacted by a one-time interest recovery [22][24] Business Line Data and Key Metrics Changes - Loans held for investment increased by $23.1 million, or 3% annualized, to $3.1 billion in the second quarter [14] - The yield on loans rose to 6.99% from 6.67% in the linked quarter, boosted by a one-time interest recovery [14] - Non-interest income increased to $12.2 million from $10.6 million in the linked quarter, primarily due to higher mortgage banking revenues [19] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $26 million to $1.01 billion, driven by higher loan payoffs exceeding new loan production [17] - The indirect auto loan portfolio modestly decreased to $241 million from $243 million in the linked quarter, reflecting changes in consumer spending behavior [18] Company Strategy and Development Direction - The company is pursuing a strategy focused on both organic growth and mergers and acquisitions (M&A) to increase bank assets [8][10] - The organic growth strategy emphasizes expanding lending capabilities and enhancing deposit growth [9] - The company remains interested in accretive acquisitions but is cautious and selective, ensuring any deal aligns with its culture and financial goals [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic growth in Texas and the potential for loan growth to reaccelerate [17] - The company is closely monitoring the impact of expected tariffs on the local economy and consumer behavior [19] - Management believes the bank is well-capitalized and positioned to weather potential economic headwinds [12][13] Other Important Information - The allowance for credit losses to total loans held for investment ratio was 1.45%, reflecting a slight increase from the prior quarter [24] - The tangible common equity to tangible assets ratio was 9.98%, indicating a strong capital position [20] Q&A Session Summary Question: Loan pipeline and growth expectations - Management indicated that loan growth is expected to be flat to low single digits in the third quarter due to higher loan payoffs [28][29] Question: Balance between hiring and M&A - Management confirmed that hiring efforts will continue regardless of M&A opportunities, emphasizing the importance of building relationships [31] Question: Increase in specific reserves - The increase in specific reserves was attributed to several loans entering non-accrual status, not just one large credit [33][34] Question: Margin outlook and deposit costs - Management noted that while deposit costs are declining, the outlook for net interest margin remains stable [40][41] Question: M&A environment and valuation expectations - Management highlighted that buyer expectations are a significant impediment to M&A activity, but the regulatory environment has improved [46][47] Question: Mortgage banking performance - Management expects mortgage banking performance to remain flat but is confident in maintaining profitability [50] Question: Non-interest bearing deposits growth - The growth in non-interest bearing deposits was attributed to improved treasury management solutions and relationship management [65][66] Question: Hiring strategy and expense growth - Management acknowledged that hiring will impact expenses in the short term but views it as essential for long-term growth [68]

Financial Data and Key Metrics Changes - The company reported record full-year results of $2,800,000,000, up 20% from the prior year [8] - Adjusted EBITDA margin increased by 140 basis points to 11.8% in fiscal year 2025 [8] - Adjusted diluted earnings per share rose to $3.91 from $3.33 last year, reflecting a 17% increase [9] Business Line Data and Key Metrics Changes - Parts Supply sales grew 17% to $306,000,000 year over year, with above-market growth of over 20% in new parts distribution activities [18][19] - Repair and Engineering sales increased by 3% to $223,000,000, with organic sales growth of 8% when excluding the landing gear divestiture [20] - Integrated Solutions adjusted sales increased by 10% year over year to $181,500,000 [21] Market Data and Key Metrics Changes - Sales to government customers increased by 21%, while sales to commercial customers rose by 12% from the same period last year [16] - Total commercial sales accounted for 69% of total sales, with government sales making up the remaining 31% [16] Company Strategy and Development Direction - The company aims to expand market share in new parts distribution and parts supply, while also adding capacity to its heavy maintenance network [25][26] - Continued focus on cost efficiency and synergy realization, with expectations to achieve $10,000,000 in annual cost synergies [27] - The company plans to enhance its digital offerings and intellectual property through investments in Trax [28] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales growth to approach 9% for fiscal year 2026, based on the previous year's adjusted sales [30] - The company anticipates continued strong demand for airframe MRO services, despite potential capacity reductions from some airlines [76] - Management remains optimistic about the growth potential of the Trax software solution, aiming to double its revenue [46][47] Other Important Information - The company reduced its net debt leverage from 3.06 to 2.72x, driven by strong cash flow and proceeds from the landing gear divestiture [23] - The Oklahoma City and Miami MRO expansions are expected to add 15% capacity to the network, with demand already secured [51] Q&A Session Summary Question: Guidance for revenue growth in the first quarter - Management indicated that the wide range in guidance is influenced by the USM environment and larger transactions that may fluctuate [38] Question: Adjusted EBITDA margins in the repair and engineering segment - The decline in margins was attributed to the closure of the New York facility, with expectations for improvement as the integration is completed [39] Question: Long-term revenue potential for Trax - Management expressed confidence in doubling Trax's revenue, supported by new business wins and upgrades of existing customers [46][47] Question: Capacity in the Oklahoma City and Miami hangars - Management confirmed that the capacity is already sold, with eager customers ready to utilize the facilities as soon as they are operational [51] Question: Growth rate for the Triumph business - The Triumph product support business contributed to an 8% growth in the repair and engineering segment, now fully integrated into the results [50] Question: Long-term vision for the USM business - Management expects USM's contribution to sales to decrease as other segments grow, focusing on parts distribution as a major growth area [66] Question: Potential for restarting dividends or share repurchases - Management indicated that share repurchases would be prioritized over dividends if leverage targets are met without M&A activity [60]

Financial Data and Key Metrics Changes - Revenue decreased by 10% sequentially to $3 billion [11] - Net income attributable to Alcoa was $164 million, down from $548 million in the prior quarter, with earnings per share decreasing to $0.62 [12] - Adjusted EBITDA was $313 million, reflecting a sequential decrease of $542 million primarily due to lower alumina and aluminum prices [12][14] - Year-to-date return on equity was positive at 22.5% [16] Business Line Data and Key Metrics Changes - In the Alumina segment, third-party revenue decreased by 28% due to lower average realized prices, partially offset by increased shipments [11] - In the Aluminum segment, third-party revenue increased by 3% due to increased shipments and favorable currency impacts, despite a decrease in average realized prices [11][14] Market Data and Key Metrics Changes - Alumina prices rebounded somewhat after a sharp decline in the first quarter, with production cuts in China contributing to a more balanced market [29] - The U.S. Midwest premium increased to $0.68 per pound but remains below analyst estimates needed to fully offset tariff costs [32] - Demand conditions remain steady in Europe and North America, with mixed sector performance [34] Company Strategy and Development Direction - The company is focused on executing its 2025 priorities, enhancing operational competitiveness, and navigating market dynamics to deliver long-term value [40] - Alcoa is advocating for trade policies that support both the company and the broader U.S. aluminum industry [10] - The company is progressing approvals for new mine regions in Western Australia, although timelines have been extended [36][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while tariffs create near-term volatility, the broader outlook for aluminum demand remains robust, driven by megatrends in transportation, construction, and packaging [24][28] - The company expects to adjust its annual outlook for aluminum shipments due to reduced shipments from the San Ciprian smelter [17] Other Important Information - The company successfully concluded a five-year tax dispute in Australia with a favorable ruling [8] - Cash from operations was positive, providing $488 million, with a working capital release of $251 million [15] - The company ended the quarter with cash of $1.5 billion [15] Q&A Session Summary Question: Impact of potential 50% tariffs on Brazil - Management indicated that the impact depends on whether alumina is excluded from tariffs, with options to source from Western Australia if necessary [42][43] Question: Contingency plans for Western Australia - Management stated that they do not anticipate any cost impact in 2025 or 2026, with contingency plans in place for mining deeper in current pits [44] Question: Tariff costs and Midwest premium - Management clarified that the second quarter tariff costs were approximately $115 million, with a Midwest premium uptick of about $60 million, leading to margin compression [52][56] Question: San Ciprian smelter cash burn expectations - Management noted that while the smelter is expected to be profitable after full ramp-up, the refinery will struggle and move into a loss position for the rest of the year [64][66] Question: Restarting spare capacity at Warrick - Management explained that restarting the fourth line at Warrick would require significant investment and time, with current operations focused on three lines [71][72] Question: Discussions with the government regarding tariffs - Management emphasized ongoing advocacy efforts to educate the government on the aluminum market's tightness and the importance of Canadian supply chains [120] Question: Capital management and debt reduction - Management indicated that they are nearing the high end of their adjusted net debt target and will consider capital allocation priorities once that target is reached [124]

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]