Good afternoon and thank you for standing by and welcome to the quarterly earnings conference call your lines are in a listen only mode until the question and answer session of today's conference at that time you may press star followed by the number one to ask a question please unmute your phones and state your first and last name when prompted today's conference is being recorded if you have any objections you may disconnect at this time it is now my pleasure to turn the call over to Mr. Rich Kinder executive chairman of Kinder Morgan sir you may begin hey thank you michelle and before we begin as we always do i'd like to remind you that kmi's earnings released today and this call include forward-looking statements

within the meeting of the private securities litigation reform act of 1995 and the securities exchange act of 1934 as well as certain non-gap financial measures before making any investment decisions we strongly encourage you to read our full disclosure on forward-looking statements and use of non-GAAP financial measures set forth at the end of our earnings release, as well as review our latest filings with the SEC for important material assumptions, expectations and risk factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements. Review of developments present and future in the midstream energy space, with special emphasis on the various growth drivers for natural gas demand. These drivers are creating enormous opportunities for expansion of the natural gas pipeline and storage system across America, and especially in the Gulf Coast and Southeast regions. At the beginning of this new calendar year, I thought it might be appropriate to be a little more specific about Kendra Morgan's response to those opportunities. In the last few months, we have announced the FID of four new major projects, the expansion of our GCX system out of the Permian Basin, our SS4 expansion on our southern natural gas system, our Mississippi crossing line which will serve SS4 and other increased demand in the southeast, and our Trident line which we announced today which will serve growing demand in the southeast Texas region including the new Golden Pass in excess of $5 billion and will have the capacity to transfer 5 BCF a day of natural gas. And all of these projects, I would point out, are supported by long-term contracts with creditworthy customers almost entirely on the demand side. While for obvious reasons we're not disclosing specific IRR targets for these projects, I know you realize our board would not have approved without returns that are significantly above our cost of capital. In addition to these projects, we're seeing other sizable opportunities to grow our business, as exemplified by our recently announced outriggers transaction, which will expand our position in the Bakken. In fact, this is the most exciting time to be in the midstream natural gas market that I've seen in my long decades in this business. investments as they come online will drive growth in EBITDA and EPS for years to come. That, I'll turn it over to Kim.

2024 was a very good year in terms of our financial performance. We grew EBITDA and EPS, and we improved our leverage metrics. And we set the company up for future success, securing commercial costs $0.3 billion in new expansion projects that will add growth for the future. Today, we announced we're proceeding with the $1.7 billion Trident project, as Rich just said, and we also announced today that we successfully secured contracts to upsize our previously announced MSX project by 300 million cubic feet a day to 1.8 BCF a day. For the quarter, we added $3.5 billion in expansion projects to the backlog, which is primarily comprised of Trident and MSX. For the year, we have added $6.3 billion in projects to the backlog and placed $1.2 billion of projects in service, growing the backlog from $3 billion at the beginning at the end of last year to $8.1 billion today. These projects will pay benefits for many years to come. As a result of the projects added to the backlog, we now expect to spend approximately $2.5 billion per year in expansion CapEx for the next several years, approximately $2 billion per year. During the quarter, we also agreed to purchase a natural gas gathering and processing system in the Bakken, which is complementary to our existing Bakken assets for $640 million. The system is backed by long-term contracts from credit-worthy counterparties. On a GAAP basis, the purchase price translates into an eight-times multiple, but based on the cash we receive in 2025, the multiple is approximately six times. In addition, in the future, we expect the acquisition to reduce CapEx that we would have otherwise had to spend to expand for our customers. As we look to the future, we continue to see additional growth opportunities in natural gas between LNG, exports to Mexico, power, and industrial growth. Our internal number for growth in the overall natural gas business is roughly 28 BCF a day of growth between now and 2030. Our assets are well positioned to serve this growth. We currently serve approximately 45% of the export LNG demand, 50% of the exports to Mexico, and 45% of the power demand in the combined region of the desert southwest, Texas, and the southeast. 2024 was a successful year that brought numerous opportunities and nice growth, and we're looking forward to further growth and capitalizing on additional opportunities in 2025. And with that, I'll turn it over to Tom to give you more details on the business performance.

Thanks, Kim. Starting with the natural gas business unit, actually unchanged in percent in the corridor compared to driven by Lower Haynesville and Bakken volumes. Sequentially gathering volumes were flat. Here our gathering volumes averaged 8% below our 2024 plan. The 6% over 2023% increase in 2025 versus necessary. we continue to see significant incremental project opportunities across our natural gas pipeline network to expand our transportation and storage in North America, the value of Kinder Morgans and the location of our CO2 volumes in the quarter versus the quarter 2023. For the full year, oil volumes were down 6% versus 2023, but within...

All right, thanks, Tom. so for the quarter we're declaring a dividend of 28.75 cents per share which is a dollar 15 per share annualized and up two percent from 2023 during the quarter during the fourth quarter we generated net income attributable to kmi of 667 million dollars or up 12 percent from the fourth quarter of 2023 generated eps of 30 cents up 11 percent from last year and on an adjusted net income basis which excludes our certain items we generated 708 million dollars of net income and adjusted eps of 32 cents those two items are 12 and 14 percent up from last year respectively This year-over-year growth was driven by greater contributions from our natural gas products and terminals businesses, with the main growth drivers being contributions from our acquired South Texas midstream assets, which we acquired at the end of 2023, greater contributions from our Texas intrastate natural gas system, as well as from natural gas projects that were placed in service. For the full year, we generated EPS of $1.17, which was up 10% over last year, and our adjusted EPS was up 7% from last year. As we've messaged for the last two quarters, we finished 2024 a little bit below our budget, mainly driven by commodity prices lower than what we had budgeted and lower production from our R&G plants. But despite those headwinds, we still experienced nice growth from 2023. Moving to our balance sheet, we ended the year with $31.7 billion of net debt and a 4.0 times net debt to adjusted EBITDA ratio, which is right in the middle of our leverage target range of 3.5 to 4.5 times. Our net debt decreased $112 million from the beginning of of 2024, and here's a high-level reconciliation of that change. We generated $5.6 billion of cash flow from operations. We spent $2.6 billion in dividends. We spent $2.7 billion of capital, and that's growth, sustaining, and our contributions to our joint ventures, and then we had about $200 million of other uses, and that gets pretty close to the $112 million decrease in net debt for the year. For 2025, as we previewed in December, we expect another good year of growth. We expect net income growth of 8% from 2024, EBITDA growth of 4%, and adjusted EPS growth of 10%. We also expect to see our balance sheet improve further, ending the year at 3.8 times. As we say in the press release, we'll be publishing our budget materials on February 5th, and that'll provide more detail behind the summary budget that we provided in December. Our budget does not include the recently announced outrigger acquisition, which we expect to close in the first quarter, and we expect that acquisition to be immediately accretive, and we expect our year-end leverage will remain at 3.8 times, even after taking into account that transaction. With that, I'll turn it back to Kim.

Michelle, if you'll come on, and we'll take questions, and one follow-up, and then if you have further questions, please get back in line.

Thank you. And once again, that is Star 1, if you would like to ask a question. Our first caller is Theresa Chen with Barclays. You may go ahead.

Theresa Chen Good afternoon, and thank you for taking my questions. When we look at the last update at the backlog, including CO2 and GMP, comparing the backlog today, the implied multiple of 6.4 times, it's pretty compelling. So for projects like Mississippi Crossing and Trident and future natural gas infrastructure projects, can you talk about the economic moat that you have, competitive moat that you have, the financial considerations, and how you can maintain these types of multiples and returns for growth projects under development?

Sure. And let me just say, there's been, you know, no change in our return criteria and the way we think about and the way we look at these projects. As you know, required depending on the risk inherent in the cash flows. And so we do have different returns for different risk projects that make up the overall multiple of the backlog that is. I think that these projects are competitive, and as you know, on MSX, we were competing for that project. We also competed on the Trident project with other people that were attempting to build. I do think that having the infrastructure that we have, having the reputation that we have as an operator, in a timely manner for us to be successful as we go out and try to get new projects and new business achieved over time on these projects.

Understood. And related to the Outreaker acquisition, can you expound a bit on the strategic rationale behind this and outlook for downstream synergies if Y-grade eventually flows onto double H once converted to NGL service, for example.

Yeah, let me make a couple of comments on that. So, there are these assets fit in well with our synergies and commercial synergies with our existing assets. You know, at this point in time, you know, we're not quantifying exactly what those are just because because those can move around, you know, based on including the producers drilling schedule. But I think, you know, that we're in a good position to deliver at least some of those synergies and hopefully we will get significant synergies from them. In terms of downstream synergies, I think that, you know, there are some existing contracts in place, and we may have a potential for down come later in time. There's nothing immediate with respect to downstream synergies.

Got it. Thank you. Thank you. Our next caller is Manav Gupta with UBS. You may go ahead, sir.

Good morning. A quick observation. I think on December 9th, when you announced your CapEx, you were looking for an adjusted UPS growth of 8%, and today it's already 10. And I'm hoping as the year progresses, this number just moves up. And can you help us understand some of the macro trends or favorable factors which could help you push even higher than 10% EPS growth in 2025?

Sensitivity to commodity prices. And so we've got upside on the first two. We've got a little bit of downside on the last one. But when you net all those together, today there's some some upside on the overall commodity picture now it's early in the year and commodity prices can move and so i don't you know i don't think you can take that to the bank at this point is not in the budget and so there's you know that's going to be um accretive and uh and will be a positive uh versus our budget you know there's the potential i think for some upside on the on the jones act tankers uh that we've got that we budgeted our market is so i think see some upside on GMP volumes over time, you know, and if we continue to deplete the inventory, the winter weather, you know, we probably did a little bit better than what we budgeted, but again, it's early in the year. There's a lot of different moving parts in our budget, and so I'd just say it is a nice start today.

Perfect. My quick follow-up is it looks like we have a new administration which is really pushing the ai goals here 500 billion dollar investment announced yesterday and i'm trying to understand in terms of this execution are we still in very early stages of this positive macro trend where this trend could continue for like five seven eight or nine years as these data centers come on and the demand for power just keeps rising and how kinder fits into that. Thank you.

Yeah, I think we are early in the data center trend and the power that's going to be needed there. And so I think that the encouragement that this administration has given on the data center development, their desire, I think all plays into a nice long-term trend for natural gas demand. We think the natural gas by 28 BCF a day between now and 2030, and part of that is power. Those numbers, though, we only have power demand up about 3 BCF a day. I think, you know, there are a lot of numbers 3 BCF a day in terms, you know, I've seen numbers at 10 BCF a day, and so I think, you know, there is the potential for upside, you know, above the 28 BCF of growth.

Thank you.

Thank you. Our next caller is Michael Bloom with Wells Fargo. You may go ahead, sir.

Thanks. Good afternoon, everyone. So maybe staying on President Trump's recent infrastructure announcement, it does, one of the projects involved there seems like it's going to be a large data center campus in Abilene, Texas, which if I'm not mistaken, Sorry, can you hear me?

Yes, now I can.

Okay, great. Sorry about that. So, you hear me okay?

No, something in Texas.

Trump's AI data center announcement includes a large data center in Abilene, Texas, which I think is pretty close to some of your pipelines. I'm wondering if there's an opportunity there for you, and do you have availability to address it?

So, Michael, this is Cecil. One, it's a good announcement. Our intrastate footprint, our NGPL footprint, you know, it's all in and around the area. I think it's an opportunity. But once again, you know, there's a lot of folks that are going to be chasing the opportunity. So I think we're well positioned to partake in some of that growth.

Okay, great. And then I also want to ask about the open season on Kindermore, Louisiana, like a Texas header project. Can you just tell us how that's progressing and the potential scope of that project?

Absolutely. So, you know, part of, you know, one, I think the open season closed, and we do have binding commitments to, you know, to build that segment. And, you know, part of the overall strategy here is there is a lot of interconnectivity needed with all the gas, you know, coming from multiple directions. And so I think this is a good platform for us to establish that kind of initial leg with the, you know, prospective possibility of, you know, extending that into the Louisiana corridor. And so I think that when you think about it, you know, this first phase here is contracted. and ready to go, and this is a position as well for future growth.

And let me just, you know, the existing future, you know, it's there. We have future expansion, another project, you know, that we would get approved at that time.

Yeah, so, you know, the KMLP expansion is...

Thank you.

Thank you. Our next caller is Neil Dingman with Truist Securities. You may go ahead, sir.

Hey, good afternoon. This is Jack Wilson on for Neil. Can you at least speak to your positioning in regards to LNG exports specifically?

Yeah, sure. You know, we serve about 50% of that market, so it's just under that. It's 45%. I think our total contracts that we've got in place for LNG exports is about 10.7 BCF a day. Not all of that is online today, but that's the position that, you know, we will grow into over time. I think it's a little less than 10 today. And, you know, the opportunity set is in the range of 15 BCF a day is, you know, the future capacity BCF a day of growth that we see between now and 2030. We focused on trying to capture some of those opportunities. And then a lot of times, as we said before, you know, there's the initial opportunities to, you know, connect to the header system. And then a lot of times, LNG export facilities and customers are looking for to go back to get more competitively priced. So, you know, in addition, sometimes some of them are looking for some insurance capacity, and therefore they, you know, contract for more than just the capacity of the facility to make sure that they can get molecules there. So, you know, a lot of times those initial projects lead to future projects. So there's a, you know, there's a lot of opportunity on the export element.

Thank you very much.

Thank you. Our next caller is Keith Stanley with Wolf Research.

Hi, good afternoon. First question, just curious, you just did an acquisition a couple weeks ago. How you're thinking about incremental acquisitions at this point? So on the one hand, you have greatly increased organic investment opportunities, so you probably want some excess financial capacity. But you also have a much improved currency, and it's probably pretty easy to make deals accretive at this point. So just how are you balancing those factors and thinking about M&A?

Yeah. So, you know, we think about M&A on a very opportunistic basis, and so, you know, we can't predict that. Criteria in terms of acquisitions hasn't changed, so it's still the same. And then we just evaluate each one as it comes. You know, right now, you know, we are able to fully fund all internally generated cash. We have no need to issue equity. You know, if we saw some big, huge acquisition, you know, not opposed to issuing equity, but it would have to make economic sense. And so we would just have to view it in the context of the overall deal when that opportunity came before us.

Thanks for that. The second one, just wanted to follow up on the quarter. So Q4 EBITDA was about $100 million below the initial quarterly budget, and you talked about commodities, volumes, and some of the R&G headwinds. Is there anything else you'd flag for the quarter in particular, or are those the main factors?

The commodity headwind was part of it. We had some – the R&G sales were down relative to what we had expected. And then we had some of the RINs that we produced in the quarter were pushed out of the year into the next year because there was a lack of liquidity in the market. So that also contributed to it. But you hit the main ones.

Thank you.

Thank you. Our next caller is Jean-Ann Salisbury with Bank of America.

Most of what Kinder Morgan has announced over the past year has been typical large diameter, big CapEx projects. So S&G, GCX, MSX, Trident. From here forward, do you see any shift in the type of the future projects to being mostly more like end-user projects, like laterals to power plants or data centers, which might be lower absolute CapEx, but better multiples, or you're not really ready to call that shift yet?

It's hard to call. I think we're going to have opportunities on both fronts. I think more of the opportunities probably come in what I call the singles and doubles, connecting to power plants. And, you know, that's largely just because the larger projects, to do those, you've got to put together a lot of customers. You know, it's just a lot more complicated and a lot harder to do. But that being said, we do have some opportunities that we're evaluating and looking at that have the potential to come to fruition. It's just harder to call your shots on those, again, because you face competition and a lot of different factors have to come together to make those possible. It's going to continue just to be a combination of things, Jean-Ann. But I do think that the larger ones will frequent then opportunities, singles and doubles. It's harder to hit the home run. We were very fortunate this year that we got a number of them in one year.

Yeah, that makes sense. Great. And then as a follow-up, can you kind of talk about how you're forecasting the cadence of Haynesville volumes coming back? I think rig count in that basin is falling more than most would have thought, and you've seen some producers saying that you need far higher prices than today's strip for them to come back.

Gene, this is Cephal. Well, yes, so I think, you know, last year we did see a little pullback in the Haynesville as a result of kind of the price environment in light of what we're seeing, you know, currently and the expectation of the LNG demand coming on, we are seeing activity pick back up in the Haynesville, and, you know, if any of this price is sustained as, you know, kind of we hope it is, I think you'll see a lot more activity.

Thank you. Our next caller is Spirial Dunas from Citi. You may go ahead, sir.

Thanks, Apparator. Afternoon, team. I just want to go back to the project backlog again. Now at $8.1 billion, largest we've seen in a while here. And, Kim, you mentioned the $2.5 billion a year annually. And I guess if we sort of track that through 2028, it gets you to about $10 billion all So just curious, is that the right way to think about maybe your visibility on the sort of unsanctioned backlog from here, at least through 28? And in that context, you know, kind of what Jan was getting at, you added over $5 billion of projects in this last year. Sounds hard to repeat. But at the same time, you also did mention being in the early stages of data center demand and potentially some new LNG FIDs coming this year. So when do you think we do see a year like that again? I know it's hard to predict, but just thinking about it.

Well, I hope next year. But this has been a pretty spectacular year is what I would say in terms of backlog additions. And, you know, we have outlined there's going to be a lot of growth at the end of the day again between now and 2030. That's a large amount of demand growth. You know, a really good position in the southeast, or that's going out to the desert southwest. And so, you know, I think we've tried to give you, you know, two and a half billion dollars a year. Yeah, that, you know, we've filled in a few things there, patience on what's going to happen. You know, there is the opportunity for that, you know, to happen, is that we continue to add. We're going to be placing, not sure how to tell you exactly how much we can add over time.

Understood. That's helpful. Second question, quickly, just thinking about some weather events that have kind of occurred so far here in the first quarter. Obviously, we have the L.A. fires. I know you guys have assets out in that region. We've also had some cold weather just along the U.S. Gulf Coast. So just curious how much either of those events has kind of impacted operations so far in the first quarter.

Yeah. In terms of, you know, California, no impact on our assets, I mean, we were down for two days on some pipes, but I'd be able to make it up. and then you know on the cold weather i mean our operations guys have done a fantastic job we went out and manned stations and yeah we had something go off but they would get it right back on so um really no impact of being able to operate uh from the fires or from the cold weather i'll leave it there thanks for the time thank you our next caller is zach van evan with tph you may go ahead sir

Hey, thanks for taking my question. Maybe first one on the Bakken acquisition, can you maybe touch on a high level, you know, what type of contracting that plant and the pipeline have? You know, is it MVC? Is it mostly contracted or just any more color there would be great? Yeah, sure.

So this is Thipel. One, I think the asset fits well in our kind of overall integrated strategy most of the contracts are kind of mbc backed with some firm with some firm obligations there you know as we think about you know the footprint one of the things that this asset does for us is it gives us processing north of the river we've always been kind of south of the river if you're familiar with that area and so i think it opens up some potential flexibility that we can leverage as we gotcha that makes sense and then maybe just one on Trident, you know, I know that shortly after announcing it, Golden Pass came out talking about

them being one of the anchor shippers. I know in the press release today, you kind of know LNG and industrial demand. You know, could you touch on maybe just the high level makeup of the demand contract?

Is it mostly LNG or is there also some, you know, power and industrial demand you're seeing as well so i will i will tell you this um you know since the last time we've spoken i can't i won't say any names but we've got some power behind behind power demand behind uh the contracts uh and we continue to work with industrials and even expand the the pipe from the one and a half that we've got you know all the way up to the two we could get through gotcha

super helpful i appreciate the time today thanks thank you our next caller is john mckay with Goldman Sachs.

Hey, thanks for the time. First one, I want to go back to, I think it was Spiro's question just on touching on the $2.5 billion a year. Can you kind of frame up, is that a ceiling on how much you think you can spend a year? Can that number move higher? And I guess, generally speaking, how do you think about setting that? Is that a leverage question? Is that a free cash? Is that a dividend? Just framing that up for us to be helpful.

So, you know, the $2.5 billion, looking at all the projects that we have in the backlog and other things, you know, that we think are, you know, what we think we can spend. And it's, I mean, it's over the next several, you know, on average. So, yes, I mean, it's not going to be perfect. It's not going to be perfect in each year. So it can be loppy and that depends on the project timing. Trying to give you a sense of what we see in terms, you know, we can fund $2.5 billion generally generated cash, some years a little bit more than that. If it's lumpy during that time frame, we've got our balance sheets in good shape, expected at the end of 25 at 3.8 times. And so we can absorb that lumpiness, you know, once those projects will continue to look at that number and update it and, you know, significant new projects to the backlog, then I think we have the potential that that number increases over time. But we have made some, as you pointed out earlier, you know, some estimate of some additional growth beyond what's in the backlog. Because as someone noted, the backlog adds up to 8.1, and, you know, if you snap, you get 10.

I appreciate that. Thank you. Maybe just a second one from me. We've talked a lot about these big kind of marquee projects you've added. Is there anything you can share on kind of knock-on effects across the rest of the Kinder system now that you're going to be moving a lot more gas? Is there, you know, some kind of operating leverage on the rest of the footprint that you could think about adding to these returns?

This is Seifel again. So, you know, as we think about, you know, as you put these arteries in across with the developments that are coming in around data centers, you know, and just power kind of leverage our footprint to to kind of establish capital you know one of the things that jeanne talked about was you know kind of the smalls one you know the small capital efficient projects there's there's opportunities on top of these large expansions for those type of projects strategic areas that we can you know and that really applies across the footprint you know we're also looking at some opportunities you know moving out west to the desert southwest you know those might be, that might be an area where we can see some primary and secondary expansion.

And the other thing I point out, that'll connect, that'll give us the ability to deliver more value to our customers and sharing some of that.

I think the message here that all the team is trying to deliver is we have an unparalleled needs the most new natural gas delivery system. What we're saying, I think, lends itself expansion opportunities coming off of this great footprint that we have. I mean, that's really our whole strategy over the next several years is to move, fall, extend it, and drive home real nice earnings growth and growth in EBITDA.

That's great. Thank you, Rich. Appreciate the time.

Thank you. Our next caller is Gabe Moraine with Mizzouho. You may go ahead, sir.

Hey, good afternoon, everyone. I just want to start out by saying that I think Pete's, based on how the share price has performed, Pete's making a good case for saving himself work and not holding analyst days in future years, too. But with that said, I wanted to ask a question on the MSX project timeline being four years plus or minus and being almost two years longer than a similarly sized intrastate project. Is that a question of permitting, right-of-way, conservatism? Is there any conservatism built into that? And fitting into the regime change in D.C. with the new administration, you know, is there anything on the permitting wish list for discussions you've had that you maybe think can expedite something, which I think is your first kind of greenfield-ish interstate in some time?

We generally think an intrastate certificate is usually two-ish years. And that's sort of the timeline that you see, the difference in the timeline that you see between Trident. You know, we came up with these schedules, you know, when we sanctioned these projects, so late last year, I would say that they were what we thought we would get under the prior administration. And so, you know, to the extent that FERC speeds up their timeline, you know, we could, you know, we could get it potentially. I think the flip side of that is we want to make sure that we get a good FERC permit that we can defend in court. And so we don't want them to skip or shortcut any of their processes. So we want to make sure that hopefully they can do that faster under this administration.

Thanks, Kim.

And I know there will be some more details on 25 guidance in the not-too-distant future, because maybe just one on your nat gas sensitivity that you've got to the 10 cent change in gas prices it's a bit higher this year than last kind of one of what's behind that yeah sure i know it's not a big piece of things that's a sensitivity that we've had in the past um so it's not anything new gabe it's been hard to quantify um because producers on the gathering side um you the contract that they pay can move up and down with some gas prices. And so that's what's this year. We are right in the middle. Again, no difference from price.

Thanks Kim.

Thank you. Jeremy Tonit with JP Morgan. You may go ahead, sir.

Hi, good afternoon.

Good afternoon, Jeremy.

Just want to circle back, I guess, new administration, you know, new look out there. Just wondering, you know, Kinder's looked at expansions in the Northeast before, but state-level permitting issues has impacted the calculus of moving forward with those type of projects. Just wondering if you're tracking anything on the federal side that maybe would change, I guess, the permitting process or laws otherwise that would kind of, I guess, change your outlook. I mean, clearly the need for more gas logistics in the Northeast is there, but just, you know, you see anything on the permitting side that might make you kind of look at things differently.

Yeah, no, you know, it's not the federal permits that are the real problem in the Northeast. I mean, we can get the federal permits, it's the state permits, and I don't see anything changing there. The other thing I'd say about the Northeast is the commercial, you know, it's the commercial structure with the, does not allow for demand charges if you're an IPP, and so it makes it harder for the IPPs to contract on a facility. And so, you know, those are the two largest hurdles we have not seen.

Got it. Understood. And I might be dating myself a little bit here, but if I go back, I think it's around the 2009 timeframe with Rocky's Express, I think it was described as the pig in the boa constrictor at that point. And there was a big, you know, move in the industry as far as, you know, unconventional production supply push out of basins and everyone was running on the same steel and construction at the same time and led to some cost inflation issues uh at that point in time we see inflationary environment in the background now just wondering you know how you think about i guess those risks going forward and you know how with encs uh you see out there that you think can you know best protect you just wonder i'm sure you guys are very thoughtful in all this but wanted to see a way of Yeah.

You know, we are already engaged in procurement. I'm not going to go pipe by pipe, but on some of the pipes, you know, we have already, you know, on others, I think we will do so in the not-too-distant future. You know, I think we're working hard to try to mitigate that risk.

Got it. Okay. Thank you.

Thank you. At this time, I am showing no further questions.

Okay. Thank you all very much. Have a pleasant evening.