Kinetik Holdings Inc (KNTK) 2024 Q1 法說會逐字稿

Good morning and thank you for attending the Kinetik First Quarter 2024 Results Call. My name is Elisa, and I will be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

早安，感謝您參加 Kinetik 2024 年第一季業績電話會議。我叫 Elisa，今天我將擔任你們的主持人。在通話的演示部分，所有線路將被靜音，最後有機會提問和回答。

I would now like to pass the call to our host, Alex Durkee's, Investor Relations. Alex please go ahead.

現在我想將電話轉給我們的東道主 Alex Durkee 的投資者關係部門。亞歷克斯請繼續。

Thank you. Good morning, and welcome to Kinetik's First Quarter 2024 Earnings Conference Call. Our speakers today are Jamie Welch, our President and Chief Executive Officer; and Trevor Howard, our Chief Financial Officer. Other members of our senior management team are also in attendance for this morning's call.

謝謝。早安，歡迎參加 Kinetik 2024 年第一季財報電話會議。今天的演講者是我們的總裁兼執行長傑米·韋爾奇 (Jamie Welch)；和我們的財務長特雷弗·霍華德。我們高階管理團隊的其他成員也出席了今天早上的電話會議。

The press release we issued yesterday, the slide presentation and access to the webcast for today's call (technical difficulty) remarks, including the question-and-answer section will provide forward-looking statements and actual results could differ from what is described in these statements. These statements are not guarantees of future performance and involve a number of risks and assumptions. We may also provide certain performance measures that do not conform to US GAAP. We've provided schedules that reconcile these non-GAAP measures as part of our earnings press release. After our prepared remarks, we will open the call to Q&A.

我們昨天發布的新聞稿、幻燈片演示以及今天電話會議的網路廣播（技術難度）言論，包括問答部分，將提供前瞻性陳述，實際結果可能與這些陳述中描述的有所不同。這些陳述不是對未來業績的保證，並且涉及許多風險和假設。我們也可能提供某些不符合美國公認會計原則的績效衡量標準。作為我們收益新聞稿的一部分，我們提供了協調這些非公認會計準則衡量標準的時間表。在我們準備好發言後，我們將開始問答環節。

With that, I will turn the call over to Jamie.

這樣，我會將電話轉給傑米。

Thank you, Alex. Good morning, everyone, and thank you for joining our call today. Kinetik had an exceptional start to 2024 with continued momentum throughout April and early May. We reported our first quarter results yesterday afternoon, exceeding our own internal budget and positioning Kinetik for a strong year ahead.

謝謝你，亞歷克斯。大家早安，感謝您今天加入我們的電話會議。 Kinetik 在 2024 年取得了一個出色的開局，並在整個 4 月和 5 月初保持了持續的成長勢頭。昨天下午，我們公佈了第一季業績，超越了我們自己的內部預算，並為 Kinetik 未來一年的強勁表現奠定了基礎。

First quarter adjusted EBITDA was $234 million, a 25% increase year-over-year, reflecting robust underlying volume growth and contributions from the Permian Highway Pipeline expansion and Delaware Link. We processed gas volumes of 1.53 billion cubic feet per day, representing 13% growth year-over-year and down less than 1% quarter-over-quarter, due to planned maintenance at several processing facilities, Alpine High curtailments as a result of depressed Waha prices and winter weather in January.

第一季調整後 EBITDA 為 2.34 億美元，年增 25%，反映出強勁的基礎銷售成長以及二疊紀公路管線擴建和德拉瓦連線的貢獻。我們每天處理天然氣量為 15.3 億立方英尺，同比增長 13%，環比下降不到 1%，原因是多個加工設施計劃進行維護，Alpine High 由於經濟低迷而停產。 。

During the quarter, we completed our planned maintenance projects at our Diamond Cryo East Toya and Pecos Bend processing facilities. We opportunistically scheduled these projects ahead of the ramp in producer turn-in-line activity starting in March and the Lee County contract commencement on April 1. As a result of the massive bed change outs, we have improved our plant recoveries and system efficiencies.

本季度，我們完成了 Diamond Cryo East Toya 和 Pecos Bend 加工設施的計畫維護項目。我們趁機在 3 月開始的生產商上線活動增加和 4 月 1 日李縣合約開始之前安排了這些項目。

I would like to thank the operations team for their hard work and commitment to safety during this time. They did a phenomenal job ensuring safe operations and system reliability for our customers. More recently, we completed our system-wide front-end amine treating project with the installation at our Pecos Bend processing facility in April. We can now offer enhanced blending and treating services across our system and accept gas that previously did not meet our gas quality specifications.

我要感謝營運團隊在此期間的辛勤工作和對安全的承諾。他們在確保我們客戶的安全操作和系統可靠性方面做得非常出色。最近，我們在 4 月於 Pecos Bend 加工工廠完成了全系統前端胺處理專案的安裝。我們現在可以在整個系統中提供增強的混合和處理服務，並接受以前不符合我們的氣體品質規格的氣體。

As producers explore different benches such as the Avalon and Bone Spring and further expand the boundaries of the Delaware Basin. Treating and blending will become critical to manage the elevated levels of H2S and CO2 and Kinetik stands ready to support this next phase of growth out of the basin. As we shared during our February call, we placed our gathering system expansion into Lee County, New Mexico in service on January 18, over 2 months ahead of schedule.

隨著生產商探索阿瓦隆和骨泉等不同的長凳，並進一步擴大特拉華盆地的邊界。處理和混合對於控制 H2S 和 CO2 水平升高至關重要，Kinetik 已準備好支持該盆地下一階段的成長。正如我們在 2 月的電話會議中分享的那樣，我們已於 1 月 18 日將位於新墨西哥州李縣的收集系統擴展投入使用，比原計劃提前了 2 個多月。

The NVC-backed agreement went into effect on April 1, and we are currently receiving volumes well above that threshold. The expansion into Lee County, combined with our enhanced treating and blending capabilities, positions Kinetik to capture incremental market share in New Mexico.

NVC 支援的協議於 4 月 1 日生效，目前我們收到的數量遠高於該閾值。向李縣的擴張，加上我們增強的處理和混合能力，使 Kinetik 能夠在新墨西哥州佔領增量市場份額。

Furthermore, with the in-service of the PHP expansion in Delaware Link, we can now offer producers and integrated wellhead to Gulf Coast solution. With volatile and even negative natural gas prices at Waha since early March, it has been top of mind for producers to access premium priced natural gas markets, particularly along the Gulf Coast, which offers more price stability. Waha gas daily prices averaged negative $0.72 per MMBtu in the month of March and April. Many of our customers benefited handsomely during this period by having their gas sold at Gulf Coast markets rather than in-basin at the Waha Hub.

此外，隨著 Delaware Link 的 PHP 擴展投入使用，我們現在可以為生產商和墨西哥灣沿岸解決方案提供整合井口。自3月初以來，瓦哈天然氣價格一直波動甚至為負，生產商首先考慮的是進入優質天然氣市場，尤其是價格較穩定的墨西哥灣沿岸地區。 3 月和 4 月，瓦哈天然氣日平均價格為每 MMBtu 負 0.72 美元。在此期間，我們的許多客戶透過在墨西哥灣沿岸市場而不是在瓦哈樞紐的盆地銷售天然氣而獲得了豐厚的收益。

As a reminder, Kinetik's equity gas exposure shifted from Waha to the Gulf Coast following the in-service of the PHP expansion on December 1. The depressed in-basin Waha prices had not only generated opportunities with Kinetik's reserve PHP capacity, but have also further strengthened our partnerships with existing and new customers in need of egress out of the basin.

需要提醒的是，自12 月1 日PHP 擴建項目投入使用後，Kinetik 的權益天然氣敞口從Waha 轉向墨西哥灣沿岸。推動了PHP 產能的成長。

We continue to forecast pressured in-basin pricing until additional pipeline capacity is placed in service. However, Kinetik and our customers are very well positioned with egress from the Permian to demand centers along the Gulf Coast. March was payment on March 7, the core shareholders completed their commitment to reinvest their dividends. This commitment was important in that it enabled us to execute upon key financial priorities, such as fully redeeming the Series A preferred in 2022 and fund our elevated 2023 capital program. It further demonstrated strong alignment with all stakeholders.

我們繼續預測盆地定價將面臨壓力，直到額外的管道容量投入使用。然而，Kinetik 和我們的客戶處於非常有利的位置，可以從二疊紀盆地出口到墨西哥灣沿岸的需求中心。 3月7日為派息日，核心股東完成了股利再投資承諾。這項承諾非常重要，因為它使我們能夠執行關鍵的財務優先事項，例如在 2022 年完全贖回 A 輪優先股，並為我們的 2023 年提高資本計畫提供資金。它進一步表明了與所有利害關係人的緊密合作。

Moving forward, we're excited for all shareholders to now receive cash dividends starting with the first quarter dividend payment today. Subsequently, in March, we facilitated a secondary offering, which fully exited Apache's remaining ownership in Kinetik. When combined with the prior secondary offering in December, we increased our public float to nearly $1.5 billion and quadrupled our average daily trading volume to nearly $30 million. We saw exceptionally high investor demand and participation in the secondary, and I want to thank our investors for their continued support and belief in the Kinetik story.

展望未來，我們很高興所有股東從今天第一季股利開始獲得現金股利。隨後，在 3 月份，我們促成了二次發行，完全退出了 Apache 在 Kinetik 中的剩餘所有權。加上先前 12 月的二次發行，我們的公眾持股增加到近 15 億美元，每日平均交易量增加了四倍，達到近 3000 萬美元。我們看到投資者對二級市場的需求和參與度異常高，我要感謝我們的投資者對 Kinetik 故事的持續支持和信任。

And with that, I would now like to hand the call over to Trevor.

現在，我想將電話轉交給特雷弗。

Thanks, Jamie. In the first quarter, we reported adjusted EBITDA of $234 million. For the quarter, we generated an adjusted distributable cash flow of $155 million and free cash flow was $108 million.

謝謝，傑米。第一季度，我們報告調整後 EBITDA 為 2.34 億美元。本季度，我們調整後的可分配現金流為 1.55 億美元，自由現金流為 1.08 億美元。

Looking at our segment results, our Midstream Logistics segment generated an adjusted EBITDA of $143 million in the quarter, up 20% year-over-year, largely driven by increased processed gas volumes and enhanced marketing opportunities captured on our PHP capacity.

從我們的部門表現來看，我們的中游物流部門本季調整後 EBITDA 為 1.43 億美元，年成長 20%，這主要是由於加工氣體量的增加以及我們的 PHP 產能捕獲的行銷機會的增加。

Shifting to our Pipeline Transportation segment, we generated an adjusted EBITDA of $96 million, up 32% year-over-year and 12% quarter-over-quarter. Sequential growth within the segment was driven by 3 full months of contributions from Delaware Link and the PHP expansion.

轉向管道運輸部門，我們的調整後 EBITDA 為 9,600 萬美元，年增 32%，季增 12%。該細分市場的連續成長是由 Delaware Link 和 PHP 擴展的整整 3 個月的貢獻所推動的。

To date, our commodity exposure pertaining to our equity volumes is approximately 50% hedged on average across commodities, with a higher hedge percentage on propane, butane and crude. Total capital expenditures for the quarter were $61 million, which was lower than our internal expectations, as we completed the New Mexico gathering expansion and several planned maintenance projects in the quarter.

迄今為止，我們與股票交易量相關的商品風險敞口平均約 50% 對沖，其中丙烷、丁烷和原油的對沖比例較高。本季的總資本支出為 6,100 萬美元，低於我們的內部預期，因為我們在本季度完成了新墨西哥州集油擴建和幾個計劃中的維護項目。

Our leverage ratio for the credit agreement stands at 3.8x. In addition to the series of steps taken in March, generating incremental value for shareholders, which Jamie touched on earlier, we also executed an accounts receivable securitization facility for $150 million in April. We used the proceeds from the AR facility to pay down our existing term loan A to $1 billion, allowing us to extend the maturity of the Term A an additional 6 months to December 2026.

我們的信貸協議槓桿率為 3.8 倍。除了 Jamie 早些時候提到的 3 月採取的一系列為股東創造增量價值的步驟之外，我們還在 4 月執行了 1.5 億美元的應收帳款證券化融資。我們利用 AR 融資的收益將現有的定期貸款 A 償還至 10 億美元，使我們能夠將 A 期貸款的期限再延長 6 個月至 2026 年 12 月。

Looking ahead, we continue to expect volatile commodity prices in 2024, especially for natural gas. As an industry, we collectively benefit from a more constructive natural gas price environment. However, Kinetik stands well positioned relative to its peers with capacity on PHP allowing us to provide access to Gulf Coast pricing to our customers and to continue to capture incremental marketing opportunities.

展望未來，我們預期 2024 年大宗商品價格將持續波動，尤其是天然氣。作為一個產業，我們共同受益於更具建設性的天然氣價格環境。然而，Kinetik 相對於具有 PHP 能力的同行處於有利地位，使我們能夠為客戶提供墨西哥灣沿岸定價並繼續抓住增量行銷機會。

Despite current gas prices, oil-directed producer activity remains unchanged on our system, and we have seen the return of activity at Alpine High following curtailed volumes in March in response to negative gas prices at the Waha Hub. We expect to see a step-up in volumes in the second quarter that continues through the remainder of the year, reflecting the completion of planned maintenance projects, the Mexico MVCs and customer development activity heavily weighted in the second and third quarters.

儘管目前的天然氣價格很高，但我們系統中以石油為導向的生產商活動仍然沒有變化，而且我們已經看到Alpine High 的活動在3 月份因瓦哈中心的負天然氣價格而減少產量後有所恢復。我們預計第二季的銷售將持續成長，並持續到今年剩餘時間，這反映出計劃維護專案的完成、墨西哥 MVC 和客戶開發活動在第二季和第三季佔據重要地位。

Before shifting to Q&A, I would like to share the significant progress we have made on our sustainability initiatives. We entered into a first-of-its-kind agreement with Infinium, an industry leader in the production of synthetic eFuels to dedicate the sale of carbon dioxide captured from one of our processing complexes for use as a feedstock in the production of ultra-low carbon eFuels using their proprietary process at Infinium's project Roadrunner.

在進入問答環節之前，我想先分享我們在永續發展舉措方面取得的重大進展。我們與合成電子燃料生產領域的行業領導者 Infinium 簽訂了一項史無前例的協議，專門銷售從我們的一個加工綜合體中捕獲的二氧化碳，用作生產超低燃料電池的原料。項目中使用其專有工藝。

Notably, there are 0 capital or operating cost to Kinetik, and this project will create another revenue stream for Kinetik. Our hope is that this partnership can serve as a model for others in the industry and support broader decarbonization efforts. Throughout 2023, we made strong progress in our Scope 1 and Scope 2 greenhouse gas and methane emissions intensity reduction initiatives. When compared to the 2021 baseline, we have reduced greenhouse gas and methane emissions intensity by 12% and 34%, respectively. And we have now surpassed our 2030 methane emissions intensity reduction target of 30%, well ahead of schedule.

值得注意的是，Kinetik 的資本或營運成本為零，該專案將為 Kinetik 創造另一個收入來源。我們希望這種夥伴關係能成為業界其他人的典範，並支持更廣泛的脫碳努力。 2023 年全年，我們在範圍 1 和範圍 2 溫室氣體和甲烷排放強度削減措施方面取得了重大進展。與 2021 年基準相比，我們的溫室氣體和甲烷排放強度分別降低了 12% 和 34%。我們現在已經超額完成了 2030 年甲烷排放強度削減 30% 的目標，大大提前了。

Despite this early achievement, which required considerable financial and human capital investment, we remain focused on furthering our sustainability efforts as a key pillar of Kinetik's everyday operations. We look forward to providing even more detail this summer in our upcoming 2023 sustainability report.

儘管這項早期成就需要大量的財務和人力資本投資，但我們仍然專注於進一步推動永續發展工作，將其作為 Kinetik 日常營運的關鍵支柱。我們期待在今年夏天即將發布的 2023 年永續發展報告中提供更多詳細資訊。

And with that, I would like to open the line for Q&A.

至此，我想開通問答專線。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) The first question comes from the line of Michael Blum with Wells Fargo. Your line is now open.

謝謝。我們現在開始問答環節。 （操作員說明）第一個問題來自富國銀行的麥可布魯姆（Michael Blum）。您的線路現已開通。

Thanks. Good morning everyone. I guess first question is just really on the full year guidance. In the press release, you noted that you sort of exceeded your internal forecast for Q1. So just wondering, does that imply that you could be coming towards the higher end of that range?

謝謝。大家，早安。我想第一個問題實際上是關於全年指導。在新聞稿中，您指出第一季的業績超出了內部預測。所以只是想知道，這是否意味著您可能正在接近該範圍的高端？

Michael, very good question. Early days, we're obviously just -- we've got -- we're just looking at even April numbers right now. And obviously, things are trending well with respect to our overall guidance range. So I think we want to wait before making any statements about where we think we're going to ultimately end up. We've got 3 quarters to go, 1 quarter down. I feel like it's the end of the first quarter of a sports game, and we've got still a ways ahead of us. But things are really looking good, which is fantastic. And I just can't complement the operations team more. They have done a hell of a job with all of the -- I think I'm not sure if I spoke to you, but what we did say, Michael, when we've spoken to a number of investors is, we had every reason to stub our toe in the first quarter, not that we didn't communicate it because we did all this maintenance or the most of bed changeouts, yes, we saw some winter weather in January. But last time I checked, that's what winter's all about.

邁克爾，非常好的問題。在早期，我們顯然只是──我們已經──我們現在只是看四月的數字。顯然，就我們的整體指導範圍而言，情況趨勢良好。因此，我認為我們需要等待，然後再就我們認為最終的結果發表任何聲明。剩下 3 個季度，還有 1 個季度。我感覺這就像一場體育比賽第一節結束了一樣，我們還有很長的路要走。但事情看起來確實不錯，這太棒了。我無法為營運團隊提供更多補充。他們在所有方面都做得非常出色——我想我不確定我是否與你交談過，但是邁克爾，當我們與一些投資者交談時，我們確實說過，我們擁有每一個之所以在第一季度絆倒我們的腳趾，並不是因為我們沒有溝通，因為我們做了所有這些維護或大部分床鋪更換，是的，我們在一月份看到了一些冬天的天氣。但上次我查了一下，這就是冬天的全部。

And we had negative pricing with Waha. So we had Apache curtailing, some of the Alpine High volumes, you had a parade of factors that would then give you a reason and cause to say, we didn't hit what we should have because and the short answer is, we saw it, we took it and we kept going. And that's a phenomenal, I think, that is a phenomenal complement to the resilience of the business and the operational performance of the system.

我們對娃哈哈進行了負定價。所以我們有阿帕契削減，一些阿爾卑斯高容量，你有一系列的因素，然後會給你一個理由和理由說，我們沒有達到我們應該達到的目標，因為簡短的答案是，我們看到了它，我們接受了它並繼續前進。我認為，這是對業務彈性和系統營運表現的驚人補充。

Okay. Great. No, that makes sense. And then I just wanted to ask on GCX. Any updates there in terms of potential expansion, just to level set up. I think at this point, there's no -- the sales process is kind of on hold. And then kind of the broader question is, you have an appetite to participate in some of these greenfield Permian gas takeaway projects that are sort of percolating? Thanks.

好的。偉大的。不，這是有道理的。然後我就想問GCX。任何關於潛在擴展的更新，只是為了級別設定。我認為在這一點上，銷售流程有點被擱置。然後更廣泛的問題是，您有興趣參與其中一些正在滲透的綠地二疊紀天然氣外送項目嗎？謝謝。

So as it relates -- on GCX on the expansion, I think we've been pretty consistent saying that we feel confident, it's going to happen. It was just a question of time. Yes, just for the audience, I would tell you just so everyone appreciates. Cash price today, Waha this morning, minus $3 folks, minus $3 bucks. So if that isn't a drive for help from everyone to say, look, we need more egress capacity. I don't know what is. As it relates to participation on the greenfield side, yes, we totally believe that we need more egress. I think we've seen a lot of the commentary from folks like Case at Diamondback and others. We got to get together and we got to fix this. We just got to because this is not fun for anybody. We're in a very privileged position, and we recognize that because we have this PHP capacity, which is incredibly valuable. Our customers appreciate it, new customers appreciate it, and it really helps us differentiate our services versus everybody else. And even saying that, we recognize we need, as an industry, to get behind -- behind and coalesce behind the position that says we need more egress out of this basin because this will be one of the significant impediments we think, to the ultimate potential out of the Permian Basin.

因此，就 GCX 的擴展而言，我認為我們一直非常一致地表示，我們有信心，這將會發生。這只是時間問題。是的，只是為了觀眾，我會告訴你，這樣每個人都會欣賞。今天現金價格，瓦哈今天早上，減 3 美元，夥計們，減 3 美元。因此，如果這不是每個人都尋求幫助的動力，那麼我們需要更多的出口容量。我不知道是什麼。由於它涉及綠地方面的參與，是的，我們完全相信我們需要更多的出口。我想我們已經看到了很多來自響尾蛇凱斯等人的評論。我們必須聚在一起解決這個問題。我們必須這樣做，因為這對任何人來說都不好玩。我們處於非常有利的地位，我們認識到這一點，因為我們擁有 PHP 能力，這是非常有價值的。我們的客戶很欣賞它，新客戶也很欣賞它，這確實幫助我們將我們的服務與其他公司區分開來。即便如此，我們認識到，作為一個行業，我們需要支持並聯合支持這樣的立場：我們需要更多的出口從這個盆地流出，因為這將是我們認為最終實現這一目標的重大障礙之一。疊紀盆地的潛力。

Thank you.

謝謝。

The next question comes from the line of Spiro Dounis with Citi. Your line is now open.

下一個問題來自花旗銀行的 Spiro Dounis。您的線路現已開通。

Thanks, operator. Good morning team. Jamie, maybe if we could go back to the outlook for the rest of the year perspective, a lot of the year still left to go, but wondering if you could just put a finer point on some of the tailwinds you're seeing that were not contemplated in the original guidance. I know Trevor talked about the Alpine High activity coming back. I imagine that was not foreseen. So curious how many of those sort of tailwinds are sort of adding up here?

謝謝，接線生。早上好，團隊。傑米，也許我們可以回顧一下今年剩餘時間的前景，今年還有很多時間，但我想知道您是否可以對您所看到的一些有利因素提出更具體的觀點原指南中沒有考慮到。我知道特雷弗談到了阿爾卑斯高中活動的回歸。我想這是沒有預見的。很好奇這裡有多少這樣的順風車？

So Spiro, thanks for that question. Good morning. Looking forward to seeing you on Tuesday. All right. As far as I would say, there are various components. When Trevor mentioned Alpine High coming back, that's really just lifting the curtailment. I would say, it's the operational performance that's really been the tailwinds here. It's the recoveries have been fantastic. If you recall, when we did this call at the end of February, we said we had a lot of plant maintenance we needed to do, most of bed change-outs. First time I think we had done it at Diamond. We had East Toya, we had Pecos Bend. We had it across the board. We had compressor maintenance. We had lots going on. Now that we're through that, the recoveries have been fantastic. They really have been fantastic. And so, (technical difficulty) because I really want to hop on operational performance and reliability, because that's how you grow this business and I think we -- our team, led by Matt Wall, have done a phenomenal job. So recoveries in particular, are tailwinds.

Spiro，謝謝你提出這個問題。早安.期待週二見到您。好的。據我所知，有各種組件。當特雷弗（Trevor）提到阿爾派恩高中（Alpine High）回歸時，這實際上只是取消了限電。我想說，營運績效才是真正的推動因素。康復效果非常好。如果您還記得，當我們在二月底進行這次電話會議時，我們說我們需要進行大量設備維護，其中大部分是床位更換。我第一次認為我們是在鑽石做到的。我們有 East Toya，我們有 Pecos Bend。我們全面了解了。我們進行了壓縮機維護。我們發生了很多事情。現在我們已經度過了難關，恢復情況非常好。他們真的很棒。所以，（技術難度）因為我真的很想提高營運績效和可靠性，因為這就是發展這項業務的方式，我認為我們——我們的團隊，在馬特沃爾（Matt Wall）的領導下，做得非常出色。因此，復甦尤其是順風車。

I would say we're seeing green shoots here and there, as Trevor mentioned, all directed drilling hasn't changed. The only customer system that change behavior for negative gas prices was Alpine High, and that's out there for the world to see. And it really -- we haven't missed a beat. And if anything, I think that reinforces the just the strength of the fundamentals of the business that we've got. And we're above thresholds coming out of New Mexico, as far as volumes are concerned. We're doing really well.

我想說，正如特雷弗所提到的，我們到處都看到了萌芽，所有定向鑽探都沒有改變。唯一能改變負油價行為的顧客系統是 Alpine High，這是全世界有目共睹的。確實——我們沒有錯過任何一個節拍。如果有什麼不同的話，我認為這增強了我們現有業務的基本面實力。就數量而言，我們超過了來自新墨西哥州的閾值。我們做得很好。

Got it. That's great to hear. Second one, maybe just turning to market share. You talked about maybe 2 areas where you could see a little bit more gains there. One, was on the treating side, it sounds you're able to accept a broader range of gas quality now. So first, curious if you're seeing the volume impact from that just yet and how to think about the upside there? And then you also mentioned more customers or new customers on the egress side. I guess how much more room is there for you to gain on that side?

知道了。聽到這個消息我很高興。第二個，也許只是轉向市場佔有率。您談到了也許您可以在兩個領域看到更多收益。一是在治療方面，聽起來您現在能夠接受更廣泛的氣體質量範圍。首先，想知道您是否已經看到了成交量的影響以及如何看待其中的好處？然後您也提到出口端有更多的客戶或新客戶。我猜你在這方面還有多少進步空間？

I think as far as let's go in reverse order. On the egress side, we have customers every day. Both existing and new customers approaching us about new packages of gas customers, we're always open for them to tell us that they would like to, in fact, have Gulf Coast pricing. When you do a weighted average sales price calculation for residue gas, we give people an option. They can have Waha. They can have a mix of Waha and Gulf Coast. And so we have more and more customers telling us, hey, we want more Gulf Coast, right? And I would say the relationships we have and the way you build the relationships is you continue to embed that concept of partnership. And that concept of partnership, I think, a news to your benefit as you think about future development and opportunities that you get. So we do have people. We've got space that we can manage not just because we're the majority owner of PHP and how it's performing, but also just given the space that we've contractually taken. And we've got -- this is a constant dialogue with some many of these folks. And then, Trevor, do you want to just take that first question on the trading side?

我認為讓我們以相反的順序進行。在出口方面，我們每天都有顧客。無論是現有客戶還是新客戶向我們詢問新的天然氣客戶套餐，我們始終願意讓他們告訴我們，他們實際上希望獲得墨西哥灣沿岸定價。當您對殘餘氣體進行加權平均銷售價格計算時，我們為人們提供了一個選擇。他們可以擁有娃哈。他們可以混合瓦哈和墨西哥灣沿岸。因此，越來越多的客戶告訴我們，嘿，我們想要更多墨西哥灣沿岸的產品，對嗎？我想說的是，我們擁有的關係以及建立關係的方式是繼續嵌入夥伴關係的概念。我認為，當您考慮未來的發展和獲得的機會時，這種夥伴關係的概念對您來說是一個有益的消息。所以我們確實有人。我們擁有可以管理的空間，不僅因為我們是 PHP 及其執行方式的主要所有者，而且還因為我們按照合約佔用了空間。我們與其中一些人進行了持續的對話。然後，特雷弗，你想回答交易方面的第一個問題嗎？

Yes. Thanks for the question, Spiro. I'd say, we are seeing some benefits on the volume side, but really where we see it is margin expansion, which is fantastic, right? Because that's 100% incremental to the bottom line without taking up what is really a precious asset in the basin right now, which is any remaining spare processing capacity. So we're seeing the benefits right now that with system-wide front and a mean treating fully complete. We have an immediate step up in margin. And then the commercial team is working right now to continue to sell out the remaining space, both for suite and sour gas treating and processing.

是的。謝謝你的提問，斯皮羅。我想說，我們在銷售方面看到了一些好處，但實際上我們看到的是利潤率擴張，這太棒了，對吧？因為這對利潤來說是 100% 的增量，而沒有佔用該盆地目前真正寶貴的資產，即任何剩餘的閒置處理能力。因此，我們現在看到了系統範圍內的前端和完全完整的平均處理所帶來的好處。我們的利潤率立即提高。然後，商業團隊現在正在努力繼續出售剩餘空間，用於套房和酸性氣體處理和加工。

And we are seeing, as we mentioned in the February call, we've got some customers that actually have really elevated levels of CO2. And we're obviously now fully accommodating that. And obviously, we have a stair step or a tiering structure pretty much across the board in the context of how we get treating fees. We've got H2S. We have CO2. We even have -- we are seeing some nitrogen coming out, right? And what's interesting about our business is because of the size of the system and the sources from where we're pulling the gas, we have a lot of sweet gas, which is -- has virtually no impurities in it, and we have gas which has higher levels of impurities. And obviously, the blend of the 2 makes pipelines backed gas that it meets all tariffs. And it's obviously massively beneficial to the customers and the producers. And we get paid for it, as Trevor pointed out. So it's a win-win, we think, across the board.

正如我們在二月的電話會議中提到的，我們看到，我們的一些客戶的二氧化碳含量實際上確實很高。顯然我們現在完全適應了這一點。顯然，在我們如何收取治療費方面，我們幾乎全面採用了階梯或分層結構。我們有 H2S。我們有二氧化碳。我們甚至看到一些氮氣出來，對吧？我們業務的有趣之處在於，由於系統的規模和我們提取天然氣的來源，我們有大量的低硫氣體，其中幾乎沒有雜質，而且我們擁有的氣體具有較高的雜質含量。顯然，兩者的結合使得管道支持的天然氣滿足所有關稅。這顯然對客戶和生產商來說是巨大的好處。正如特雷弗指出的那樣，我們為此獲得報酬。因此，我們認為，這是一個全面的雙贏。

Got it. That's great. I will leave it there and look forward to seeing you all next week.

知道了。那太棒了。我會把它留在那裡，期待下週見到大家。

We'll see you Tuesday.

我們週二見。

Thank you. The next question comes from the line of Tristan Richardson with Scotiabank. Your line is now open.

謝謝。下一個問題來自豐業銀行的特里斯坦·理查森 (Tristan Richardson)。您的線路現已開通。

Hi good morning guys. Jamie, maybe could you talk a little bit about the NGL side of downstream. I mean, we're closing in on a couple of third-party pipe expansions. Can you talk about how you see your NGL solutions trending once we see these expansions online? And then particularly in the context of thinking about Kinetik barrels that may come up for recontracting.

嗨，大家早安。 Jamie，也許您可以談談下游的 NGL 方面。我的意思是，我們即將進行幾個第三方管道擴建。您能否談談，當我們看到這些線上擴充功能後，您如何看待您的 NGL 解決方案的趨勢？然後特別是在考慮可能需要重新承包的 Kinetik 桶的背景下。

Tristan, good morning, thank you for the question. So as far -- I think we've been pretty clear as far as on the NGL side. We have 3 different commitments. We have commitment to Lone Star with respect to some of the legacy plants. We inherited one with Cap Rock. There was obviously some in relation to what is Eagle Core Midstream Ventures, which is primarily is East Toya and one of the Pecos Bend. And then we have the enterprise -- the enterprise commitment that we have inherited in large part because Enterprise was the only connection to Diamond Cryo. And as you all know, Apache was one of the foundation shippers on the Shin Oak pipeline. So we have contracts with Lone Star come up in 2026. There are two of them, and they will roll off. And then we obviously have our dedication with -- or commitment with Targa on Grand Prix and that will continue out through beginning of early 2030s.

特里斯坦，早安，謝謝你的提問。到目前為止，我認為我們在 NGL 方面已經非常清楚了。我們有 3 項不同的承諾。我們對 Lone Star 的一些遺留工廠做出了承諾。我們從 Cap Rock 那裡繼承了一間。顯然有一些與 Eagle Core Midstream Ventures 有關，主要是 East Toya 和 Pecos Bend 之一。然後我們有企業——我們繼承的企業承諾在很大程度上是因為企業是與 Diamond Cryo 的唯一聯繫。眾所周知，阿帕契是新橡樹管道的基礎運輸商之一。因此，我們與 Lone Star 的合約將於 2026 年簽訂。然後，我們顯然對 Targa 大獎賽做出了奉獻或承諾，這將持續到 2030 年初。

And then we obviously have what we have at Diamond CRYO. Where we -- if you go back to first principles and think about the merger, where you saw the open space in the entire -- the system complex from a processing standpoint was Diamond. Our job is to be to fill up Diamond Cryo. It is the best recoveries. We expanded it from 600 to 720, is the only other tenant that sits at Diamond Cryo is Apache. And so we've been utilizing that space. And therefore, we have a very, I would say, a mutually beneficial, very flexible arrangement with EPD on Shin Oak that really gives us flexibility. It's very beneficial economically. And we obviously own 1/3 of Shin Oak as well. So we think literally, all the stars are aligned to make a good outcome.

然後我們顯然擁有 Diamond CRYO 所擁有的東西。我們——如果你回到首要原則並考慮合併，你會看到整個開放空間——從處理的角度來看，系統複雜性就是鑽石。我們的工作是填充 Diamond Cryo。這是最好的恢復。我們將其從 600 人擴展到 720 人，Diamond Cryo 唯一的其他租戶是 Apache。所以我們一直在利用這個空間。因此，我想說，我們與環保署就 Shin Oak 達成了一項非常互惠互利、非常靈活的安排，這確實為我們提供了靈活性。這在經濟上是非常有利的。我們顯然也擁有 Shin Oak 的 1/3。所以我們認為，從字面上看，所有的星星都齊心協力才能產生好的結果。

As it relates to future barrels, we'll decide that as it relates certainly to further expansions, we've got flexibility with respect to Cap Rock flexibility as -- when that contract obviously rolls off. So we've got plenty of flexibility that we can think about sort of what to do next. It's something that Anne Psencik and the team spent a lot of time focused on as we think about the future. We see all these announcements. We're trying to work out whether in fact, obviously, the basin has been pretty tight right now. In fact, they've been jamming like -- I'm looking at any every barrel they can because when you're at negative $3, it's not a good day and you want to get as much recovery of ethane in the stream as you possibly can. And we're still trying to work out whether in fact, what the fundamentals will look like, we're going to see a lot of pricing pressure going forward, so more power to the customer than necessarily to the owner of the infrastructure. Time will tell how this is all going to play out. We're not the only ones with obviously these mid '25, '26 time frames. There's what, 1.5 million barrels a day of incremental expansions that are coming on. So it's not insignificant, right, by her and Daytona and other things. So I do think that, look, it's going to be a really interesting segment to watch. As I said, we're not the only ones. There's lots of other dedications that will roll off. As you see, I would say, sort of the NGL 1.0 contracts roll off in the '25, '26, '27 time frame and see exactly what happens.

由於它與未來的桶子有關，我們將決定，因為它肯定與進一步的擴張有關，所以當合約明顯到期時，我們在 Cap Rock 的靈活性方面擁有靈活性。因此，我們有足夠的靈活性，可以考慮下一步該做什麼。 Anne Psencik 和團隊在思考未來時花了很多時間關注這一點。我們看到所有這些公告。我們正在努力弄清楚盆地現在是否確實非常緊張。事實上，他們一直在幹擾——我正在尋找他們能找到的每一桶，因為當你的價格為負 3 美元時，這不是一個好日子，你希望在氣流中回收盡可能多的乙烷。可能可以。我們仍在努力弄清楚，事實上，基本面會是什麼樣子，我們是否會看到未來面臨很大的定價壓力，因此客戶的權力一定比基礎設施所有者的權力更大。時間會告訴我們這一切將如何發展。我們並不是唯一一家擁有 25 年、26 年中期時間框架的公司。每天 150 萬桶的增量擴張正在進行中。所以，對於她和代托納以及其他事情來說，這並不是微不足道的，對吧。所以我確實認為，看，這將是一個非常有趣的片段。正如我所說，我們不是唯一的人。還有很多其他的奉獻精神將會不斷湧現。正如你所看到的，我想說，NGL 1.0 合約在 25 年、26 年、27 年時間範圍內滾動，看看到底會發生什麼。

Appreciate it, as always, Jamie. And then maybe more near term, just thinking you talked about lead counting project volumes coming in, in April and May above men's, maintenance done in time to see March turn-in-lines increasing. I mean, is there a particular cadence we should think about for turn-in-lines for the rest of the year as you talk about the low double-digit expectations for '24?

一如既往地欣賞它，傑米。然後也許是更近期的事情，想想你談到的潛在客戶計數項目量，四月和五月的項目量高於男性，維護工作及時完成，以看到三月的上交線增加。我的意思是，當您談到 24 年的兩位數低預期時，我們是否應該考慮今年剩餘時間的排隊節奏？

Trevor, what do you think?

特雷弗，你覺得怎麼樣？

Yes. Thanks for the question, Tristan. It's -- look, it's quite consistent from what we have seen over the past few years, especially coming out of winter storm, where most of our TIL development, not 70% to 80% of our TIL development really takes place. And late in the first quarter, second quarter and then by September, generally, we see most of our TILs in the year. So we should expect a similar volume ramp that we saw last year, where producers are bringing wells on right now. We're going to have the return of Alpine High curtailments in the second quarter once the maintenance issues on the egress pipes clear up and in-basin pricing recovers. And come mid-summer, we should see higher levels of volume and that should continue to tick up throughout the balance of the year until our producers are completed with the TIL programs for fiscal year 2024.

是的。謝謝你的提問，特里斯坦。看，這與我們過去幾年所看到的情況非常一致，尤其是在冬季暴風雨過後，我們的大部分 TIL 開發都在此時進行，而不是 70% 到 80% 的 TIL 開發真正發生。一般來說，我們會在第一季末、第二季以及 9 月看到一年中的大部分 TIL。因此，我們應該預期產量會與去年類似，生產商現在正在開井。一旦出口管道的維護問題得到解決並且流域內定價恢復，我們將在第二季度恢復 Alpine High 限電。到了仲夏，我們應該會看到更高的產量水平，並且在今年剩餘時間裡，產量應該會繼續增加，直到我們的生產商完成 2024 財年的 TIL 計劃。

Appreciate it. Thanks, gentlemen.

欣賞它。謝謝，先生們。

Thanks, Tristan.

謝謝，特里斯坦。

Thank you. The next question comes from the line of Keith Stanley with Wolfe Research. Your line is now open.

謝謝。下一個問題來自沃爾夫研究中心的基斯‧史丹利。您的線路現已開通。

Hi, good morning. First, I just wanted to follow up on the Alpine High curtailment. So you're expecting them to come back once the maintenance ends, I guess, later this month? And how good do you feel about them doing that and keeping volumes on? And then just how meaningful is Alpine High to overall Kinetik G&P volumes at this point?

早安.首先，我只是想跟進 Alpine High 的限電情況。所以你希望他們在維護結束後回來，我想是在本月晚些時候？您對他們這樣做並保持產量有多大感覺？那麼此時 Alpine High 對 Kinetik G&P 的整體銷售有何意義呢？

Keith, good morning. So as far as we did see actually, we've already seen a return of volumes. I think you've got to be mindful shutting in PDP for extended periods of time, you do risk the potential for a reservoir damage. So you got to be conscious and cognizant of not doing something that may, in fact, have longer-lasting ramifications. And I think, look, we're seeing the return of those volumes, and they can be they can be very much increased almost immediately in the context of just the way they've got an auto choke system that operates pretty much across the board.

基思，早安。因此，就我們實際看到的情況而言，我們已經看到了銷量的回升。我認為您必須注意長時間關閉 PDP，否則確實有可能造成水庫損壞的風險。因此，你必須有意識地認識到，不要做實際上可能產生更持久影響的事情。我認為，看，我們正在看到這些銷量的回歸，並且它們可以幾乎立即大幅增加，因為他們擁有幾乎全面運行的自動阻風門系統。

As it relates to the overall the impact, as we think about the return, and we think about what's going to happen and how important it is for us. What you should see is, yes, it pro forma Callon, you've got probably 28% of your volumes, I think, sort of sit with Apache between DXL, Callon and obviously, Alpine High and only Alpine High is impacted from a gas -- because of gas prices. And despite that, our business has basically done incredibly well as far as profit is concerned. And as I said, that strength has continued into April, and we're seeing it in the context of even in the first week of May.

因為它關係到整體影響，當我們考慮回報時，我們會考慮將會發生什麼以及它對我們有多重要。你應該看到的是，是的，它是卡倫的形式，我想你可能有28% 的交易量，有點像阿帕奇坐在DXL、卡倫之間，顯然，阿爾卑斯高，只有阿爾卑斯高受到氣體的影響－因為汽油價格。儘管如此，就利潤而言，我們的業務基本上表現得非常好。正如我所說，這種強勁勢頭一直持續到四月，我們甚至在五月的第一周就看到了這種勢頭。

So, I think as we think about our business, it's nice to have and I still -- I think, look, whether -- when it comes back and if it fully comes back in the next 2 weeks out of the pipeline maintenance with the balance of GTX and PHP and sort of everything should be then done. And then we're just obviously waiting for (inaudible)? Right. And the question is when that comes online.

因此，我認為，當我們考慮我們的業務時，擁有它很好，我仍然 - 我認為，看看，是否 - 當它恢復時，如果它在未來兩週內完全恢復，不再進行管道維護， GTX 和PHP 的平衡以及所有事情都應該完成。然後我們顯然只是在等待（聽不清楚）？正確的。問題是何時上線。

Keith, I'd also jump in with the -- it's a small amount of equity space that we do have on PHP. It actually acts as a nice natural hedge where we do see in-basin gas prices that warrant curtailments, it's actually a net positive for the company, given the open space. And so it's actually been -- it's been a nice hedge here in March and in April, while we're getting through this maintenance and shoulder season in the basin.

Keith，我也想加入進來——這是我們在 PHP 上擁有的一小部分股權空間。它實際上是一個很好的自然對沖，我們確實看到盆地內的天然氣價格需要削減，考慮到開放空間，這實際上對公司來說是一個淨積極因素。事實上，在三月和四月，當我們正在經歷盆地的維護和淡季時，這裡是一個很好的對沖。

That's helpful. Thanks. Second question, just how are you thinking at this point about growth opportunities into next year? It seems like you have some more opportunities. You have a new plant potentially of maybe a Phase II in New Mexico, GCX expansion. Should we think of investments and growth for the company is accelerating into next year as you look at the opportunity set or just any thoughts around that?

這很有幫助。謝謝。第二個問題，您目前如何看待明年的成長機會？看來你還有一些機會。您有一座新工廠，可能是新墨西哥州 GCX 擴建工程的第二階段。當你審視機會集時，我們是否應該考慮公司的投資和成長將加速到明年？

Look, I think, Keith, as far as growth opportunities, we're always looking at growth opportunities across the board. We've been very successful on the organic side, and we'll continue to look for those opportunities. We think that they are highly accretive to the value complex that is Kinetik. And as we think about 2025 and those and the opportunities out there, look, you've identified some that obviously we have talked about already, and we'll continue to sort of see what we are able to secure and see how that sort of -- obviously, what that means as far as the overall trajectory of EBITDA. And obviously, we are very mindful of making sure that we are thinking about the capital discipline on.

基思，我認為，就成長機會而言，我們一直在全面尋找成長機會。我們在有機方面非常成功，我們將繼續尋找這些機會。我們認為它們對 Kinetik 的價值綜合體具有高度增值作用。當我們思考 2025 年以及那裡的機會時，你看，你已經確定了一些我們顯然已經討論過的內容，我們將繼續看看我們能夠獲得什麼，並看看如何實現這一目標。這對於EBITDA 的整體軌跡意味著什麼。顯然，我們非常注意確保我們正在考慮資本紀律。

Thank you.

謝謝。

Thank you. The next question comes from the line of John Mackay with Goldman Sachs. Your line is now open.

謝謝。下一個問題來自高盛的約翰·麥凱。您的線路現已開通。

Hey good morning. Thanks for the time. Figured it might ask on the Infinium agreement. I think the projects used to come online in 2026. Just interested if you guys could kind of frame up what the size of the opportunity could be for you guys if there's more of this that you can do kind of what to watch next.

嗨，早安。謝謝你的時間。我想它可能會詢問 Infinium 協議。我認為這些項目曾經在 2026 年上線。

John, good morning. Thank you. We've got Tyler Milam, who runs our new Energy Ventures business and has been the architect with the -- on the Infinium deal. So Tyler, do you want to take that away?

約翰，早安。謝謝。我們有泰勒·米拉姆 (Tyler Milam)，他負責我們新的能源創投業務，並且是 Infinium 交易的架構師。那麼泰勒，你想把它拿走嗎？

Sure. Thanks, Jamie. Hey John, yes, so just to let you know, this is just one of our cryogenic complexes that we have contracted with Project Road Runner via Infinium. And so to kind of qualify, I guess, versus even quantify, what we are -- have still on the slate is we're still evaluating our other 3 complexes. And so I think there's definitely some room to run, and we continue to daily see the best way to not only reduce our greenhouse gas emissions as our corporate objective, but also turning that into a revenue stream at no capital to our organization.

當然。謝謝，傑米。嘿約翰，是的，只是想讓你知道，這只是我們透過 Infinium 與 Project Road Runner 簽訂合約的低溫綜合體之一。因此，我想，為了某種程度的限定，而不是量化，我們仍然在評估我們的其他 3 個綜合體。因此，我認為肯定還有一些運行空間，我們每天都在不斷尋找最佳方法，不僅將減少溫室氣體排放作為我們的企業目標，而且還將其轉化為我們組織無需資本的收入流。

Yes, John, it's interesting that the whole concept behind Infinium was predicated on the conversion of what was a traditional suite system, which was the old BCP Eagle Claw Cap Rock to a system that could take sour gas. We are seeing greater levels of sour gas. We, therefore, see much more CO2 tonnage created and Tyler working with Infinium said, with all the CO2 tonnage, this is a stream that we can give you by pipe, and they can then obviously, using their process, they can convert it into eFuels. No capital, no OpEx for us. It's fully paid for. We got a really nice return. So we're getting paid on the treating side by our customers. And with the byproduct that we're creating, which is incremental direct CO2, we are getting paid for the CO2 stream.

是的，約翰，有趣的是，Infinium 背後的整個概念是基於將傳統套件系統（即舊的 BCP Eagle Claw Cap Rock）轉換為可以吸收酸氣的系統。我們看到酸性氣體含量較高。因此，我們看到更多的二氧化碳噸位被創造出來，泰勒與 Infinium 合作說，對於所有二氧化碳噸位，這是我們可以通過管道為您提供的流，然後他們顯然可以使用他們的流程將其轉換為電子燃料。沒有資本，我們就沒有營運支出。已經完全付清了。我們得到了非常好的回報。因此，我們的治療方是由客戶支付報酬的。透過我們正在創造的副產品，即增量直接二氧化碳，我們可以從二氧化碳流中獲得報酬。

That's great. That makes sense. And you kind of touched on my next question. You touched on it a little bit earlier on the call, too. But maybe you can kind of just frame up the size of this sour gas opportunity overall. I mean it feels pretty large. It feels like there's some producers pushing in there and maybe some of your midstream peers aren't necessarily keeping up. So just wondering, if you could kind of frame up that broader opportunity on both gathering, processing, treating side, et cetera.

那太棒了。這就說得通了。你有點觸及了我的下一個問題。您在電話會議的早些時候也談到了這一點。但也許你可以從整體上確定這個酸性氣體機會的規模。我的意思是感覺相當大。感覺好像有一些生產商在推動，也許你的一些中游同行不一定跟上。所以我想知道，您是否可以在收集、加工、處理等方面建立更廣泛的機會。

We'll let Mr. Kendrick take the floor.

我們將讓肯德里克先生發言。

Hi John, this is Chris. Look, it's a great question. And as we've alluded to earlier, as we continue to go north in the basin and as our customers drill shallower formations, we see a higher amount of CO2 and some higher amount of nitrogen. So one of our goals has been, once our trading is installed is to add additional fees and treat that gas.

嗨約翰，我是克里斯。聽著，這是一個很好的問題。正如我們之前提到的，隨著我們繼續向盆地北部移動，隨著我們的客戶鑽探更淺的地層，我們看到了更高含量的二氧化碳和更高含量的氮。因此，我們的目標之一是，一旦我們的交易完成，就是增加額外的費用並處理這些天然氣。

One other point I'd like to make, too, is we have some incremental treating capacities down at Diamond. So, Matt and the operations team is looking at ways to optimize our system to be able to add more CO2 to the system, so we can extract fees there. So I think the opportunity is great. I think the oil cuts are great from these benches. So the customers want a solution to be able to treat not only the CO2, but handle the nitrogen. So we try to get in front of that and are currently talking to a number of producers about a solution there.

我還想指出的另一點是，我們在 Diamond 擁有一些增量處理能力。因此，馬特和營運團隊正在尋找優化我們系統的方法，以便能夠為系統添加更多二氧化碳，這樣我們就可以在那裡收取費用。所以我認為機會很大。我認為這些長凳的減油效果非常好。因此，客戶希望有一種解決方案不僅能夠處理二氧化碳，還能處理氮氣。因此，我們試圖解決這個問題，目前正在與一些生產商討論解決方案。

And it's also true, I think, Chris, that on the shallower formations to Avalon and Bone Spring, we see less water produced water.

克里斯，我認為，在阿瓦隆和骨泉的較淺地層上，我們看到的水產生的水也較少。

That's right.

這是正確的。

So I do think there is an element on this, which is the produced water and the gathering and disposal of that is an element, significant costs from the producer side. Not having to deal with as much water is obviously a huge net benefit for them. So I do think that goes into the overall equation of the decision-making process for our producers and where they're focusing. And so therefore, our ability to take wider ranges of CO2, high levels of H2S and even nitrogen and blamed it and treated is a massive competitive advantage for us in the context of what our customers are now focusing on.

所以我確實認為這其中有一個因素，那就是產出水，其收集和處理是一個因素，生產者方面的成本很高。不必處理那麼多的水顯然對他們來說是一個巨大的淨收益。所以我確實認為這涉及到我們的製作人決策過程的整體方程式以及他們關注的重點。因此，在我們的客戶現在關注的背景下，我們能夠吸收更廣泛的二氧化碳、高濃度的硫化氫甚至氮氣，並對其進行處理和處理，這對我們來說是一個巨大的競爭優勢。

Super. Thanks for that.

極好的。感謝那。

Thank you. The next question comes from the line of Neel Mitra with Bank of America. Your line is now open.

謝謝。下一個問題來自 Neel Mitra 與美國銀行的對話。您的線路現已開通。

Hi. Thanks for taking my question. Jamie, just wanted to kind of touch on the cadence of rich gas growth going through April and May. It seems like that's been strong, but I was wondering with the gas takeaway situation right now, if there's been any producer issues with getting the gas out of the basin. I know there's been a lot of ethane recovery and maybe moving to markets that are less than desirable. But just trying to understand the flow assurance there.

你好。感謝您提出我的問題。傑米，只是想談談四月和五月豐富天然氣成長的節奏。這似乎很強勁，但我想知道現在的天然氣外賣情況，是否存在生產商將天然氣從盆地中取出的問題。我知道乙烷回收量很大，可能會轉移到不太理想的市場。但只是想了解那裡的流量保證。

Yes. And Neel, thank you. Good morning. I think as we mentioned both in our prepared remarks and maybe an answer to another question, the oil-directed drilling cadence has not changed at all. If anything, we've seen it really continue to pick up, which is somewhat typical. Second quarter through third quarter is literally, I want to say, prime time as far as turn-in-line activity is concerned, that's when it all happens because you sort of -- you're out of the pockets of the year where you have the potential for some challenging climate and weather. But I think what's interesting for us, and again, this comes back to, I would say, almost the switchboard that Kindred's got as far as the number of customers calling, everybody knows that we've got space on PHP. They are literally banging down his door saying, can I, can I, will we, will you take my guess, I have gas here, I need help. And look, we are very customer focused, and we're very customer-centric. And our viewpoint is we've got space that we can basically fit in packages of gas, we can give people a hand. We want to see more activity. And so we look at our role as being a partner with our customers in the context of helping them achieve their ultimate goals.

是的。還有尼爾，謝謝你。早安.我認為正如我們在準備好的發言中以及可能在回答另一個問題時提到的那樣，石油導向的鑽探節奏根本沒有改變。如果有什麼不同的話，那就是我們看到它確實在繼續回升，這有點典型。我想說，就排隊活動而言，第二季度到第三季度實際上是黃金時間，這一切都發生在這個時候，因為你在這一年裡已經沒有錢了。的氣候和天氣。但我認為對我們來說有趣的是，這又回到了，我想說，幾乎 Kindred 的總機就呼叫的客戶數量而言，每個人都知道我們有 PHP 空間。他們實際上是在敲門說，我可以嗎？ 我可以嗎？ 我們可以嗎？看，我們非常以客戶為中心，我們非常以客戶為中心。我們的觀點是，我們有足夠的空間基本上可以容納天然氣包，我們可以為人們提供幫助。我們希望看到更多的活動。因此，我們將自己的角色視為客戶的合作夥伴，幫助他們實現最終目標。

Chris, would you add anything?

克里斯，你能補充點什麼嗎？

Jamie, I think that's right. I think Jamie alluded to this earlier, Neel, that having the PHP space is one big differentiator for us, and it has allowed us to provide egress takeaway, not see the curtailments and unlike maybe some of our peers that don't have access to the Gulf Coast. So it's been a great tool to have, and we're going to continue to use it to help grow our business.

傑米，我認為這是對的。我認為Jamie 早些時候提到過這一點，Neel，擁有PHP 空間對我們來說是一個很大的區別，它使我們能夠提供出口外賣，不會看到削減，並且不像我們的一些同行那樣無法造訪墨西哥灣沿岸。因此，它是一個很棒的工具，我們將繼續使用它來幫助發展我們的業務。

Got it. And then second question. Now the Apache exited the position and we have a bigger public float you're still a capital constraint in the sense that you want to get to investment grade, and it looks like you're on the path there, and you expanded into other puts it the Permian and the New Mexico area. How are you looking at M&A now in terms of maybe like a bolt-on gathering system, given that you've been able to integrate your upstream and your downstream position like with PHP and other downstream solutions for those customers? And how would that work in terms of maintaining your leverage ratios and also increasing the public float. Is that something that you are considering or have on as an option?

知道了。然後是第二個問題。現在阿帕奇退出了這個職位，我們擁有更大的公眾持股量，從某種意義上說，你仍然是資本限制，因為你想達到投資級別，而且看起來你正在那裡的道路上，並且你擴展到了其他看跌期權它是二疊紀和新墨西哥地區。鑑於您已經能夠像 PHP 和其他為這些客戶提供的下游解決方案一樣整合您的上游和下游位置，您現在如何看待併購？就維持槓桿率和增加公眾持股而言，這將如何發揮作用。這是您正在考慮或作為選擇的事情嗎？

Neel, well, I think we have said consistently that we look at lots of different opportunities, both organic and inorganic. And we have a very high bar as it relates to all opportunities where we look through the lens of short-cycle value accretion, we look at overall value accretion to the complex. We look at leverage and ratings impact. So we take everything into consideration. And look, when we find something that checks all the boxes, that's -- look, that's what will happen as far as the opportunities that are out there. And I think what we've continued to do is just evaluate. But now, we've been very happy with our organic growth strategy. And we very much believe that we've got that now with the completion of the capital program for last year, we're very focused on the execution side, and that's what you've seen obviously in the first quarter, and that's how we forecasted for the balance of the year.

尼爾，嗯，我想我們一直說過，我們會尋找許多不同的機會，包括有機的和無機的。我們有一個非常高的標準，因為它涉及我們透過短週期價值增值的視角來看待的所有機會，我們著眼於綜合體的整體價值增值。我們關注槓桿率和評級影響。所以我們會考慮一切。看，當我們找到符合所有條件的東西時，那就是——看，就現有的機會而言，這就是將會發生的事情。我認為我們繼續做的就是評估。但現在，我們對我們的有機成長策略非常滿意。我們非常相信，隨著去年資本計劃的完成，我們現在非常關注執行方面，這就是你在第一季明顯看到的，這就是我們的方式預計今年剩餘時間。

Perfect. Thank you.

完美的。謝謝。

Thank you. This will conclude the question-and-answer session for today's call. I would now like to hand the call back over to the team for any final remarks.

謝謝。今天電話會議的問答環節到此結束。我現在想將電話轉回給團隊以徵求最後意見。

Thank you very much, everybody, for your time this morning. We look forward to seeing you. I know it's a busy time of year, lots of conferences and stuff, so we look forward to seeing you in the next 30 days. Thank you. Bye-bye.

非常感謝大家今天早上抽出寶貴的時間。我們期待您的光臨。我知道這是一年中的繁忙時期，有很多會議和其他活動，所以我們期待在接下來的 30 天內見到您。謝謝。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。