Kinder Morgan, Inc. (NYSE:KMI) Q3 2023 Earnings Call Transcript

Dax Sanders: We have, yes. We’ve – and this is Dax. We’ve looked at several different options for repurposing that being one of them. And – we are – we continue to transport crude on the pipe. It’s becoming more largely. We’ve got about 30 a day of residual contracts on that. It’s becoming – as those contracts roll, it’s becoming more of a basis pipeline, which obviously has an incremental element of risk around it, but that’s certainly something we would consider with the right deal.

Zack Van Everen: Got you. And then if you were to convert that, could we assume it’s a similar capacity with NGLs? And are there any opportunities to expand that at all if you were to go that route?

Dax Sanders: It depends on what you put it in. But ultimately, I think if it’s still in liquid service, you do NGLs, maybe a little bit more capacity with some pumps adds but still early.

Kim Dang: Yes. It’s just like any time we have an underutilized asset. We’re looking for other opportunities to utilize, I think this one is pretty early.

Zack Van Everen: Okay. Perfect. Thanks guys.

Operator: Thank you. Sunil Sibal with Seaport Global Securities. You may go ahead.

Sunil Sibal: Hi, good afternoon, everybody and I apologize if I missed this. But I just wanted to touch upon what kind of sequential trends you saw in Q3 with regard to your gas gathering volumes in various basins and also on the crude and condensate systems?

Kim Dang: Sequential volumes. Hang on a second. Sequential volumes on gas gathering, they were down 1%, and they were down 1% on crude. So kind of flattish on a sequential basis.

Sunil Sibal: And that’s fairly representative across the basin?

Kim Dang: They’re different basins. And so that is total for Kinder Morgan. So in gas, that would be – the primary basins would be Eagle Ford, Bakken, Haynesville, and some of those were up a little bit and some were down a little bit in net – I mean, minus 1, I could say that’s kind of flattish, but down slightly. And on the crude, it’s primarily Bakken.

Sunil Sibal: Got it. Thanks for that.

Operator: And at this time, I am showing no further questions.

Rich Kinder: Okay. Michelle, thank you very much. And everybody, have a good day and a good evening. Thank you.

Operator: And thank you. This concludes today’s conference call. You may go ahead and disconnect at this time.