Kinder Morgan, Inc. (NYSE:KMI) Q4 2022 Earnings Call Transcript

But I think just overall, experiencing the winter weather and the volatility that occurred in pricing both before and after that winter event, if you have storage and transport, you’re able to take advantage of that, and we did.

Jeremy Tonet: Got it. That’s helpful. And congrats, everyone, again.

Operator: Next question in the queue is from John Mackay with Goldman Sachs.

John Mackay: I wanted to talk maybe just a little more on some of the regional gas movements on the gathering side. Can you just touch again on, I think Kim, you mentioned Haynesville volumes were flat quarter-over-quarter. Just wondering if you could comment on if that’s producer-driven or takeaway issues? And then, anything else you can share maybe on what you’re seeing across the Rockies in terms of production. Thanks.

Tom Martin: So yes, the KinderHawk volumes were basically flat from quarter-to-quarter, but we do expect a nice uplift as we move into 2023, and that is — it is largely capacity constraints, both on our gathering system, we’re spending some capital in 2023 to create some additional capability there and then also a downstream capacity comes online as well. So, we see some really nice opportunities to continue to grow on KinderHawk and in the Haynesville play overall. And that’s not limited to just our gathering and processing opportunities, but we also see some nice interstate rate increase and utilization opportunities as we go forward. So yes, a nice story. Haynesville is a nice good story for us. And then, as far as the Rockies, I mean, yes, there’s — we’re not seeing a whole lot of growth there.

There’s a few a few pockets of green shoots in the DJ. But overall, we’re not seeing a great deal of growth there, although on our ultimate gathering system, we certainly, the Uinta, we’re seeing some nice growth there and expect that to grow as we go into 2023 as well.

John Mackay: Great. Thanks for that. Maybe just shifting gears to the Red Cedar announcement. Curious on how much else could be out there in terms of shifting away from, I guess, what we call natural CO2 sources to kind of recovered CO2. I mean, how much of the mix of your overall CO2 kind of EOR business, either your own or selling to third parties could be the recoveries end up making up over time?

Steve Kean: Anthony?

Anthony Ashley: Yes. So, the Red Cedar deal that we’re talking about that’s up to 20 a day, put it into context, we’re currently moving over 900 a day down our Cortez pipeline to West Texas. And so, there’s a ways to go before effectively that those natural resources get replaced. Really, when you’re talking about opportunities around kind of the Permian and the infrastructure there, that’s largely gas processing assets, which are going to be lower. And so with regards to, I guess, replacement of our existing source capacity be a very long time before that would be replaced.

John Mackay: All right. We’ll see if we go ones for next week. Thanks for the time. And congrats, everyone, on the new roles.

Operator: Next question is from Jean Ann Salisbury with Bernstein.