WEBVTT - EQT Says High Power Bills to Drive Energy Development

0:00:02.520 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:07.960 --> 0:00:11.680
<v Speaker 2>You're listening to Bloomberg Business Week with Carol Masser and

0:00:11.760 --> 0:00:14.160
<v Speaker 2>Tim Steneveek on Bloomberg Radio.

0:00:14.320 --> 0:00:18.239
<v Speaker 3>Bloomberg reported over the summer that businesses and households served

0:00:18.239 --> 0:00:20.400
<v Speaker 3>by the largest US power grid will spend a record

0:00:20.480 --> 0:00:24.720
<v Speaker 3>sixteen point one billion to ensure electricity supplies amid a

0:00:24.840 --> 0:00:28.360
<v Speaker 3>massive artificial intelligence driven demand search. We are talking about

0:00:28.360 --> 0:00:31.080
<v Speaker 3>this a lot, and having said that, we just talked

0:00:31.120 --> 0:00:33.960
<v Speaker 3>about what Nvidia's doing with open Ai and their spend.

0:00:34.440 --> 0:00:37.320
<v Speaker 3>That price increase though prompted calls from utilities and energy

0:00:37.320 --> 0:00:39.800
<v Speaker 3>groups to build more generations. So we want to see

0:00:39.800 --> 0:00:41.320
<v Speaker 3>what our next guest has to say about it. He

0:00:41.440 --> 0:00:43.560
<v Speaker 3>is in the midst of it, Toby Rice, his president

0:00:43.640 --> 0:00:46.520
<v Speaker 3>CEO of EQT, the nearly thirty one billion dollar market

0:00:46.520 --> 0:00:51.720
<v Speaker 3>cap vertically integrated energy company obviously specializing in net gas. Toby,

0:00:51.760 --> 0:00:54.600
<v Speaker 3>good to have you here. I want to start big

0:00:54.920 --> 0:00:57.880
<v Speaker 3>on broad the macro. How would you describe it right

0:00:57.880 --> 0:00:58.280
<v Speaker 3>now for you?

0:00:58.800 --> 0:01:00.600
<v Speaker 2>Well, business natural gas markets.

0:01:00.640 --> 0:01:02.040
<v Speaker 4>In one word, I would say it's going to be

0:01:02.080 --> 0:01:04.680
<v Speaker 4>very vautal in the short term, and one word for

0:01:04.720 --> 0:01:07.360
<v Speaker 4>the long term, I'd say incredibly exciting when you look

0:01:07.400 --> 0:01:10.280
<v Speaker 4>at the three major themes that are that are hitting

0:01:10.360 --> 0:01:11.080
<v Speaker 4>energy right now.

0:01:11.120 --> 0:01:12.880
<v Speaker 2>The desire to continue to evolve our.

0:01:12.840 --> 0:01:17.560
<v Speaker 4>Energy systems, replacing coal with natural gas major theme ais

0:01:17.600 --> 0:01:20.080
<v Speaker 4>what everybody's talking about right now. That's a major that's

0:01:20.120 --> 0:01:21.840
<v Speaker 4>going to be a major source of demand. And then

0:01:21.840 --> 0:01:24.520
<v Speaker 4>providing energy security to our allies is still a thing

0:01:24.560 --> 0:01:26.160
<v Speaker 4>and that's going to be playing on the energy. You

0:01:26.200 --> 0:01:28.160
<v Speaker 4>step back and you add it all up, we're talking

0:01:28.160 --> 0:01:31.600
<v Speaker 4>about a twenty to forty percent increase and natural gas

0:01:31.640 --> 0:01:32.479
<v Speaker 4>demand in this country.

0:01:32.720 --> 0:01:35.000
<v Speaker 3>Well, let me just ask you because before that, let's

0:01:35.000 --> 0:01:35.280
<v Speaker 3>go back.

0:01:35.319 --> 0:01:36.160
<v Speaker 2>That's longer term.

0:01:36.160 --> 0:01:38.120
<v Speaker 3>But I know our BI people have put some research

0:01:38.160 --> 0:01:41.240
<v Speaker 3>and they talked about North American gases at an inflection,

0:01:41.319 --> 0:01:43.640
<v Speaker 3>and they talked about AI data centers and adding to

0:01:43.720 --> 0:01:48.080
<v Speaker 3>domestic demand near Appalachians supply, will energy exports sustained global?

0:01:48.360 --> 0:01:50.000
<v Speaker 2>But so tell us about the shorter term.

0:01:50.120 --> 0:01:51.680
<v Speaker 3>Is there a little bit of an inflection point for you?

0:01:51.960 --> 0:01:54.840
<v Speaker 4>I'd say the next the next three to five years,

0:01:55.080 --> 0:01:57.320
<v Speaker 4>data centers and fueling the AI revolution is going to

0:01:57.320 --> 0:01:59.320
<v Speaker 4>be a very big focus. But keep in mind we're

0:01:59.360 --> 0:02:01.840
<v Speaker 4>going to be doubling US LG exports over the next

0:02:01.920 --> 0:02:04.400
<v Speaker 4>five years. So we're doing both of these at once.

0:02:05.400 --> 0:02:07.160
<v Speaker 4>And the good news is that we've got the natural

0:02:07.240 --> 0:02:08.920
<v Speaker 4>resource in this country. It's just going to come down

0:02:08.960 --> 0:02:11.200
<v Speaker 4>to how fast we can actually get this infrastructure built.

0:02:11.520 --> 0:02:14.120
<v Speaker 4>Focusing specifically on the power demand side of things. When

0:02:14.160 --> 0:02:17.160
<v Speaker 4>you step back and look at electrify everything, not just AI,

0:02:17.240 --> 0:02:20.880
<v Speaker 4>we're looking at a ten to eighteen Bcfi day natural

0:02:20.960 --> 0:02:23.200
<v Speaker 4>gas demand to meet that. That's a ten to eighteen

0:02:23.240 --> 0:02:27.040
<v Speaker 4>percent increase in demand and about four to six about

0:02:27.080 --> 0:02:28.959
<v Speaker 4>forty percent of that is going to be for data centers,

0:02:29.639 --> 0:02:31.400
<v Speaker 4>so it's going to be this can be really big.

0:02:31.480 --> 0:02:33.840
<v Speaker 4>We're seeing these opportunities happen in our backyard.

0:02:33.919 --> 0:02:36.840
<v Speaker 2>EQT. We signed up over one and a half Bcfi

0:02:36.880 --> 0:02:40.520
<v Speaker 2>day of natural gas fee ad for those and.

0:02:40.560 --> 0:02:42.519
<v Speaker 4>This is a market that's about one hundred bcf a

0:02:42.600 --> 0:02:45.120
<v Speaker 4>day just to make the numbers ballpark, So one and

0:02:45.160 --> 0:02:47.720
<v Speaker 4>a half Bcfi day of natural gas supply for these

0:02:47.800 --> 0:02:50.760
<v Speaker 4>data centers in Pennsylvania. This is going to generate enough

0:02:50.840 --> 0:02:53.840
<v Speaker 4>power to almost power to New York cities. So these

0:02:53.880 --> 0:02:57.000
<v Speaker 4>are major league infrastructure projects in a grid that desperately

0:02:57.080 --> 0:02:58.680
<v Speaker 4>needs more power generation.

0:02:59.120 --> 0:03:03.480
<v Speaker 1>The tech companies to talk about nuclear power generation powering

0:03:03.520 --> 0:03:05.720
<v Speaker 1>their data centers. The President likes to talk about the

0:03:05.760 --> 0:03:08.400
<v Speaker 1>promise of nuclear power, and I say promise of it

0:03:08.480 --> 0:03:10.079
<v Speaker 1>because we know how to do it, but it just

0:03:10.160 --> 0:03:12.440
<v Speaker 1>takes a long time and it's very expensive. How do

0:03:12.520 --> 0:03:16.000
<v Speaker 1>you view the increased interest in recent years in nuclear

0:03:16.080 --> 0:03:17.440
<v Speaker 1>power as a threat to your business?

0:03:18.000 --> 0:03:20.920
<v Speaker 4>I think that natural gas is the clear winner right now.

0:03:21.520 --> 0:03:23.360
<v Speaker 4>This has been a big question that people have been

0:03:23.400 --> 0:03:25.880
<v Speaker 4>asking over the last call it eighteen months. What is

0:03:26.000 --> 0:03:28.960
<v Speaker 4>going to power this AI revolution? What was originally thought

0:03:29.000 --> 0:03:31.520
<v Speaker 4>to be renewable is going to pick this up? Then

0:03:31.520 --> 0:03:33.520
<v Speaker 4>people went to nuclear and realize it's going to take

0:03:33.600 --> 0:03:36.480
<v Speaker 4>too long to get it done. Comes back to natural gas. Why,

0:03:36.560 --> 0:03:39.040
<v Speaker 4>because we have the track record of scale and speed.

0:03:39.120 --> 0:03:41.480
<v Speaker 4>If you look over the last ten years, we've seen

0:03:41.560 --> 0:03:45.760
<v Speaker 4>natural gas power demand increase fourteen bcfday. So think about

0:03:46.080 --> 0:03:48.520
<v Speaker 4>how much we're planning on doing. We've done that with

0:03:48.680 --> 0:03:51.960
<v Speaker 4>natural gas. Now, longer term, we think nuclear is going

0:03:52.040 --> 0:03:55.160
<v Speaker 4>to be a great option. But understand this, natural gas

0:03:55.320 --> 0:03:58.200
<v Speaker 4>has a vehicle to become zero carbon, and that's why

0:03:58.240 --> 0:04:00.680
<v Speaker 4>we're spending a little bit of money today on carbon

0:04:00.760 --> 0:04:04.520
<v Speaker 4>capture that will enable natural gas to be the first

0:04:04.640 --> 0:04:07.280
<v Speaker 4>reliable affordable zero carbon energy solution.

0:04:07.360 --> 0:04:08.800
<v Speaker 2>The world does not have that today, you know.

0:04:08.920 --> 0:04:11.040
<v Speaker 3>Just like there's a big spend in AI and data centers,

0:04:11.080 --> 0:04:12.800
<v Speaker 3>there seems to be a big spend and that energy

0:04:12.880 --> 0:04:15.640
<v Speaker 3>to support it and what's needed. You have announced multiple

0:04:16.240 --> 0:04:18.240
<v Speaker 3>long term sales and purchase agreements, I think just in

0:04:18.320 --> 0:04:21.800
<v Speaker 3>the last few months. Some are fearing an oversupply to

0:04:21.960 --> 0:04:24.599
<v Speaker 3>be in twenty twenty seven twenty twenty nine. What are

0:04:24.680 --> 0:04:27.960
<v Speaker 3>you hearing from LERG buyers about kind of your demand

0:04:28.120 --> 0:04:30.920
<v Speaker 3>visibility window and how confident are you. It sounds like

0:04:30.960 --> 0:04:33.039
<v Speaker 3>you're pretty confident on a longer term pull for LERG

0:04:33.440 --> 0:04:34.760
<v Speaker 3>or us LG specifically.

0:04:34.880 --> 0:04:37.560
<v Speaker 4>Yeah, on the energy front, we certainly wouldn't disagree. We

0:04:37.680 --> 0:04:40.839
<v Speaker 4>do see a little bit of an oversupply situation globally

0:04:40.960 --> 0:04:43.280
<v Speaker 4>for energy that could lead to software prices in that

0:04:43.400 --> 0:04:45.799
<v Speaker 4>twenty seven to twenty nine time frame that you mentioned.

0:04:46.640 --> 0:04:48.160
<v Speaker 4>And you say, well, Tob, why did you just go

0:04:48.279 --> 0:04:50.720
<v Speaker 4>and sign up for a massive amount of energy. It's

0:04:50.760 --> 0:04:53.560
<v Speaker 4>because our contracts are going to be starting. We're going

0:04:53.640 --> 0:04:55.880
<v Speaker 4>to be getting that exposure in twenty thirty, so this

0:04:56.000 --> 0:04:58.880
<v Speaker 4>oversupply will pass and then we're back to a tight

0:04:59.000 --> 0:05:02.280
<v Speaker 4>situation and that's where energy is hitting the market. When

0:05:02.279 --> 0:05:04.800
<v Speaker 4>you want to talk about demand, just step back and

0:05:04.920 --> 0:05:07.120
<v Speaker 4>look at this world. For a world that's going to

0:05:07.160 --> 0:05:10.720
<v Speaker 4>continue to care about climate and emissions, replacing the coal

0:05:10.800 --> 0:05:12.880
<v Speaker 4>in this world is going to require an additional one

0:05:13.000 --> 0:05:15.560
<v Speaker 4>hundred and seventy BCF a day of natural gas. If

0:05:15.600 --> 0:05:17.600
<v Speaker 4>you care about the people living on this planet, it's

0:05:17.600 --> 0:05:19.640
<v Speaker 4>going to take an additional one hundred and twenty BC

0:05:19.760 --> 0:05:20.160
<v Speaker 4>other day.

0:05:20.320 --> 0:05:22.560
<v Speaker 3>Sure are you that people care about that? We are

0:05:22.760 --> 0:05:26.640
<v Speaker 3>certainly feeling this year a pushback well when it comes

0:05:26.720 --> 0:05:29.800
<v Speaker 3>to concerns about carbon emissions and climate. Yeah, there's not

0:05:29.920 --> 0:05:31.719
<v Speaker 3>from everyone, and I have to be very careful because

0:05:31.720 --> 0:05:33.480
<v Speaker 3>there's a lot of folks that are working really hard

0:05:33.920 --> 0:05:34.559
<v Speaker 3>on this area.

0:05:34.760 --> 0:05:37.640
<v Speaker 2>Yeah, but how Yeah, the confident and comfortable are on

0:05:37.720 --> 0:05:38.560
<v Speaker 2>the energy transition.

0:05:38.640 --> 0:05:40.720
<v Speaker 4>There's a ton of people that are passionate about this,

0:05:40.920 --> 0:05:43.600
<v Speaker 4>and that passion is not going to go away with

0:05:43.800 --> 0:05:46.120
<v Speaker 4>just one election. But I think what is happening now

0:05:46.240 --> 0:05:48.240
<v Speaker 4>is people are stepping back and they're looking at the

0:05:48.360 --> 0:05:50.280
<v Speaker 4>plans they put in place, and they're looking at the

0:05:50.400 --> 0:05:53.120
<v Speaker 4>results of those plans. And what we're seeing is that

0:05:53.240 --> 0:05:56.520
<v Speaker 4>Americans energy bills are up over thirty five percent. Now,

0:05:56.640 --> 0:05:58.839
<v Speaker 4>renewables is not to blame for all of that. We've

0:05:58.880 --> 0:06:02.800
<v Speaker 4>had a massive infrastructure cancelation movement that's prevented us from

0:06:02.800 --> 0:06:06.119
<v Speaker 4>getting energy infrastructure built. That's the root cause of this issue.

0:06:06.400 --> 0:06:08.120
<v Speaker 4>But when you step back and look at how much,

0:06:08.200 --> 0:06:10.280
<v Speaker 4>how big of an impact this has had. We spent

0:06:10.400 --> 0:06:14.040
<v Speaker 4>over two trillion dollars on renewables last year, and put

0:06:14.080 --> 0:06:17.080
<v Speaker 4>that in perspective, we spent over one point three billion

0:06:17.120 --> 0:06:22.080
<v Speaker 4>dollars in oil and gas the energy solution that provides again, yeah,

0:06:22.480 --> 0:06:24.800
<v Speaker 4>two trillion dollars in renewables. Who what do you mean?

0:06:24.880 --> 0:06:28.080
<v Speaker 2>We spent the world invested over two trillion dollars.

0:06:27.880 --> 0:06:31.440
<v Speaker 4>In renewables built out and yeah, and then for comparison,

0:06:31.880 --> 0:06:35.680
<v Speaker 4>oil and gas investments that provides over eighty percent of

0:06:35.760 --> 0:06:39.119
<v Speaker 4>the world's energy, we invested over one point three trillion dollars.

0:06:39.200 --> 0:06:42.320
<v Speaker 2>So this has been a very big theme. But it's

0:06:42.320 --> 0:06:42.800
<v Speaker 2>coming out.

0:06:42.720 --> 0:06:45.560
<v Speaker 3>Show to you that people are this is the future's renewables.

0:06:45.600 --> 0:06:48.000
<v Speaker 3>That's where they're spending money. Is that what you're saying?

0:06:48.240 --> 0:06:50.840
<v Speaker 4>If you went by where people were spending money, that

0:06:51.120 --> 0:06:53.640
<v Speaker 4>does not necessarily mean what's going to be the future.

0:06:53.680 --> 0:06:55.440
<v Speaker 4>The future of energy is going to be the energy

0:06:55.480 --> 0:06:58.960
<v Speaker 4>solution that is affordable, reliable, and clean and has all

0:06:59.000 --> 0:07:01.640
<v Speaker 4>three of those attu in check. I think the energy

0:07:01.720 --> 0:07:05.360
<v Speaker 4>transition maybe has prioritized the clean aspects of energy. But

0:07:05.480 --> 0:07:08.080
<v Speaker 4>as we're seeing right now, Americans are scratching their heads

0:07:08.400 --> 0:07:11.560
<v Speaker 4>looking to see the record amounts of energy investments that

0:07:11.640 --> 0:07:14.800
<v Speaker 4>we're making and the record amounts of energy production in

0:07:14.880 --> 0:07:17.400
<v Speaker 4>this country, and their energy bills are up thirty five percent.

0:07:17.440 --> 0:07:20.320
<v Speaker 4>They're scratching their heads. Why is this happening. It's because

0:07:20.360 --> 0:07:22.440
<v Speaker 4>the solutions that we're putting on the field need to

0:07:22.440 --> 0:07:24.200
<v Speaker 4>be the right solutions, and that is natural gas.

0:07:24.400 --> 0:07:26.400
<v Speaker 1>But it's also because, as you said, the demand has

0:07:26.440 --> 0:07:28.680
<v Speaker 1>gone up. For years, it was kind of flat, it

0:07:28.760 --> 0:07:31.000
<v Speaker 1>was stable, and then we saw this huge increase in

0:07:31.080 --> 0:07:33.600
<v Speaker 1>demand for power here in the US. So demand has

0:07:33.600 --> 0:07:34.400
<v Speaker 1>a lot to do with it too.

0:07:34.640 --> 0:07:37.360
<v Speaker 4>Well. Demand hasn't really started to pick up just yet.

0:07:37.400 --> 0:07:39.040
<v Speaker 4>We're coming out of it. I think we're looking at

0:07:39.160 --> 0:07:44.640
<v Speaker 4>massive growth prospects. But this really is a repercussion from

0:07:44.680 --> 0:07:50.000
<v Speaker 4>all of the not under investment in reliable infrastructure over

0:07:50.000 --> 0:07:53.800
<v Speaker 4>the past decade now this country, in America, since twenty eighteen,

0:07:53.840 --> 0:07:56.680
<v Speaker 4>it's become almost impossible to get a pipeline built in

0:07:56.720 --> 0:07:58.960
<v Speaker 4>this country. We own an asset called Mountain Valley Pipeline.

0:07:59.000 --> 0:08:01.560
<v Speaker 4>Took an Act of Congress to get that pipeline built.

0:08:01.640 --> 0:08:04.960
<v Speaker 4>So infrastructure has been incredibly challenged, and that is really

0:08:05.080 --> 0:08:08.200
<v Speaker 4>strained markets and really put some stress on the system.

0:08:08.200 --> 0:08:10.520
<v Speaker 1>So let's talk about those challenges. Are you having constructive

0:08:10.520 --> 0:08:13.200
<v Speaker 1>conversations or are you having any conversations with the Trump

0:08:13.200 --> 0:08:16.360
<v Speaker 1>administration representatives from the Trump administration to try to ease

0:08:16.440 --> 0:08:17.680
<v Speaker 1>those regulatory delays.

0:08:17.960 --> 0:08:23.680
<v Speaker 4>So this administration truly understands how important affordable and reliable

0:08:24.000 --> 0:08:27.920
<v Speaker 4>is in the energy equation. You know, Secretary right fabulous

0:08:28.120 --> 0:08:30.720
<v Speaker 4>really understands energy, all forms of energy. So I think

0:08:30.760 --> 0:08:34.360
<v Speaker 4>we're going to have some practical approach towards energy solutions

0:08:34.360 --> 0:08:36.959
<v Speaker 4>that we put in place. But that being said, the

0:08:37.040 --> 0:08:39.719
<v Speaker 4>executive branch is not going to dictate the types of

0:08:39.840 --> 0:08:41.839
<v Speaker 4>energy that we put in this country. We're going to

0:08:41.920 --> 0:08:45.599
<v Speaker 4>need Congress to act to pass meaningful permit reform so

0:08:45.679 --> 0:08:48.040
<v Speaker 4>we can get back to letting the most cost effective, reliable,

0:08:48.160 --> 0:08:49.080
<v Speaker 4>cleanest form of energy.

0:08:49.080 --> 0:08:50.840
<v Speaker 1>Do you consider wind power a form of energy?

0:08:51.000 --> 0:08:51.440
<v Speaker 2>Absolutely?

0:08:51.559 --> 0:08:54.040
<v Speaker 1>It doesn't seem like this administration supports that.

0:08:54.920 --> 0:08:57.120
<v Speaker 4>Yeah, I mean, was that a mistake, Well, I would

0:08:57.160 --> 0:09:01.040
<v Speaker 4>say it's as a as a sponsor of a pipeline,

0:09:01.480 --> 0:09:04.840
<v Speaker 4>mount value pipeline has been subjective to tremendous political force.

0:09:05.240 --> 0:09:07.319
<v Speaker 4>This is a situation where I think we would be

0:09:07.400 --> 0:09:09.600
<v Speaker 4>in a much better place if we would let market

0:09:09.679 --> 0:09:11.800
<v Speaker 4>forces dictate the energy that makes its way to the

0:09:11.840 --> 0:09:14.439
<v Speaker 4>playing field, let political force take the back seat. Unfortunately,

0:09:14.960 --> 0:09:16.559
<v Speaker 4>we are going to need some help from our leaders

0:09:16.640 --> 0:09:19.120
<v Speaker 4>in Washington, DC. I hope they notice that we've got

0:09:19.160 --> 0:09:21.679
<v Speaker 4>a massive demand surge coming. We do not have the

0:09:21.800 --> 0:09:24.319
<v Speaker 4>right infrastructure set up right now. We need to do

0:09:24.360 --> 0:09:27.000
<v Speaker 4>a massive build out. And just for people to understand

0:09:27.040 --> 0:09:29.040
<v Speaker 4>the race that we're in right now, this is a

0:09:29.200 --> 0:09:31.480
<v Speaker 4>national security threat for US. We have got to win

0:09:31.600 --> 0:09:34.240
<v Speaker 4>the race for AI. And right now, how we're faring

0:09:34.280 --> 0:09:36.480
<v Speaker 4>in the US where we put in six gigawatts of

0:09:36.559 --> 0:09:40.440
<v Speaker 4>reliable power generation this last year China put over sixty

0:09:40.720 --> 0:09:43.880
<v Speaker 4>of gigawatts of reliable power gen most of that call,

0:09:44.040 --> 0:09:46.679
<v Speaker 4>so we are not keeping pace. We need to do

0:09:46.760 --> 0:09:47.199
<v Speaker 4>a lot more.

0:09:47.400 --> 0:09:48.120
<v Speaker 2>Just want to go back to.

0:09:48.200 --> 0:09:50.960
<v Speaker 3>Cost just because it's cheap, and I understand there's other

0:09:51.000 --> 0:09:53.080
<v Speaker 3>parameters that you're putting in there. I mean, there are

0:09:53.400 --> 0:09:55.520
<v Speaker 3>net gas, there are leaks and so on and so

0:09:55.640 --> 0:09:59.360
<v Speaker 3>forth that do impact the environment. So it's not the

0:09:59.559 --> 0:10:02.640
<v Speaker 3>cleanest and purest. There are problems with it. And I

0:10:02.800 --> 0:10:05.920
<v Speaker 3>just wonder if we're always constantly chasing the cheapest thing

0:10:06.080 --> 0:10:08.839
<v Speaker 3>out there that's not necessarily a good thing. And just

0:10:08.920 --> 0:10:11.520
<v Speaker 3>bring up all the manufacturing that we've put outside the

0:10:11.640 --> 0:10:13.439
<v Speaker 3>United States just because it was a cheaper good that

0:10:13.640 --> 0:10:15.920
<v Speaker 3>we're finding maybe that wasn't such a good strategy. So

0:10:16.120 --> 0:10:18.320
<v Speaker 3>I just want to bring that back to the energy

0:10:18.360 --> 0:10:21.199
<v Speaker 3>sector that maybe sometimes things have to be expensive to

0:10:21.280 --> 0:10:23.760
<v Speaker 3>get to a really, really smart solution.

0:10:24.440 --> 0:10:27.000
<v Speaker 4>I think we need to take a holistic approach when

0:10:27.000 --> 0:10:28.840
<v Speaker 4>we're looking at energy, and we need to look at

0:10:28.920 --> 0:10:33.560
<v Speaker 4>the balance between cost, reliability, and the carbon footprint associated

0:10:33.640 --> 0:10:35.439
<v Speaker 4>with that energy. That's why when we look at those

0:10:35.480 --> 0:10:38.000
<v Speaker 4>attributes for natural gas, that's why we believe that this

0:10:38.120 --> 0:10:40.839
<v Speaker 4>is the energy solution of the future. When you look

0:10:40.880 --> 0:10:44.200
<v Speaker 4>at regions that ignore and just over prioritize the clean

0:10:44.240 --> 0:10:47.079
<v Speaker 4>aspects of energy, you have situations like Europe, and we've

0:10:47.080 --> 0:10:48.400
<v Speaker 4>seen what's happened there.

0:10:49.200 --> 0:10:50.680
<v Speaker 2>It's been a crisis.

0:10:50.960 --> 0:10:53.520
<v Speaker 4>Thank goodness for American America and the energy that we've

0:10:53.520 --> 0:10:55.120
<v Speaker 4>been able to provide them to get them through this

0:10:55.240 --> 0:10:55.880
<v Speaker 4>with our LERG.

0:10:56.280 --> 0:10:57.840
<v Speaker 2>So it's got to be a balanced approach.

0:10:57.880 --> 0:10:59.520
<v Speaker 4>It's not all going to be about cost, it's not

0:10:59.600 --> 0:11:02.000
<v Speaker 4>all going to be about reliability or carbon footprint. It's

0:11:02.000 --> 0:11:04.520
<v Speaker 4>got to be a healthy balance of three. Right now,

0:11:04.640 --> 0:11:06.800
<v Speaker 4>we need to get back to the affordable, reliable.

0:11:07.000 --> 0:11:08.439
<v Speaker 3>Speaking of balance, and I just want to go to

0:11:08.480 --> 0:11:10.760
<v Speaker 3>your balance sheet because there is a spend right everybody's

0:11:10.800 --> 0:11:13.360
<v Speaker 3>doing it because they are chasing this AI spend and

0:11:13.440 --> 0:11:15.400
<v Speaker 3>trying to be there in terms of support. You guys

0:11:15.440 --> 0:11:17.880
<v Speaker 3>have talked about working down to a twenty twenty six

0:11:18.000 --> 0:11:20.839
<v Speaker 3>year in debt target of five billion. I think that

0:11:20.960 --> 0:11:24.160
<v Speaker 3>was after the Equatransdale tell us about what you're considering

0:11:24.200 --> 0:11:26.120
<v Speaker 3>to help prop up your balanchet and just got about

0:11:26.160 --> 0:11:27.280
<v Speaker 3>thirty seconds, three.

0:11:27.200 --> 0:11:29.240
<v Speaker 4>Seconds out thirty thirty thirty seconds. I'll tell you what

0:11:29.679 --> 0:11:32.360
<v Speaker 4>our priority, What our priorities are right now. Insure the

0:11:32.440 --> 0:11:35.000
<v Speaker 4>reliable production of energy. Right now, we produce a little

0:11:35.040 --> 0:11:37.120
<v Speaker 4>bit over a million barrels a day of energy.

0:11:37.240 --> 0:11:39.199
<v Speaker 3>So anything that you need to do to meet that,

0:11:39.480 --> 0:11:40.840
<v Speaker 3>We're not worried about the spend.

0:11:40.679 --> 0:11:42.600
<v Speaker 2>For maintenance volumes levels.

0:11:42.640 --> 0:11:45.959
<v Speaker 4>We're going to be reliably providing the future by signing

0:11:46.040 --> 0:11:48.800
<v Speaker 4>up these growth contracts, both on energy and the data

0:11:48.840 --> 0:11:52.000
<v Speaker 4>sat to build out and from a cleanliness perspective. We've

0:11:52.040 --> 0:11:54.800
<v Speaker 4>already made the investments and we've already slashed our methane emissions.

0:11:54.800 --> 0:11:57.320
<v Speaker 4>We've got one of the best environmental programs that.

0:11:57.400 --> 0:11:59.559
<v Speaker 3>Sounds like the spend and the Debt's okay for now. Yes,

0:12:00.000 --> 0:12:01.840
<v Speaker 3>I'm going to leave with there. Toby Rice, Presidents CE

0:12:01.960 --> 0:12:03.640
<v Speaker 3>of Equal e q T

0:12:06.600 --> 0:12:06.920
<v Speaker 4>MHM