Core Viewpoint - MPLX is actively streamlining operations and expanding its natural gas assets through significant transactions, including a billion-dollar divestiture and a recent acquisition [1][6]. Group 1: Company Operations - MPLX has entered into a billion-dollar agreement to divest its gathering and processing assets in the Rocky Mountain region, expected to close in Q4 of this year [1]. - The company recently completed the acquisition of Northwind Midstream for $2.375 billion, enhancing its capabilities in sour gas gathering and processing in New Mexico [6]. - MPLX operates a diverse network of assets, including natural gas gathering and processing facilities, oil terminals, and transport facilities [2]. Group 2: Financial Performance - In Q2 2025, MPLX reported $1.4 billion in distributable cash flow, allowing for $1.1 billion in capital returns to shareholders, including a quarterly dividend [7]. - The current dividend is $0.9565 per share, annualizing to $3.83, which provides a forward yield of 7.5% [7]. Group 3: Analyst Outlook - RBC's analyst Elvira Scotto views MPLX as a compelling income play among large-cap MLPs, with a price target of $58, indicating a potential upside of 13% [8]. - The consensus rating for MPLX is Strong Buy, based on 7 reviews, with 6 Buys and 1 Hold, suggesting a 14% gain potential from the current price of $51.28 [8].

Core Viewpoint - Artisan Partners Asset Management (APAM) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, tracking EPS estimates from sell-side analysts through the Zacks Consensus Estimate [2]. - Changes in future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates for Artisan Partners suggest an improvement in the company's underlying business, likely leading to an increase in stock price [6]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [8]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10][11]. Recent Earnings Estimate Revisions - Artisan Partners is projected to earn $3.66 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 6.4% over the past three months [9].

Group 1 - Artisan Partners Asset Management announced a preliminary AUM of $178.1 billion as of August 31 [1] - This represents an increase from the preliminary AUM of $175.0 billion at July 31 [1] - Artisan Funds and Artisan Global Funds accounted for $87.0 billion of the total AUM at the end of August [1]

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $178.1 billion as of August 31, 2025 [1] - Artisan Funds and Artisan Global Funds contributed $87.0 billion to the total AUM, while separate accounts and other AUM accounted for $91.1 billion [1] AUM by Strategy - The Growth Team's AUM includes: - Global Opportunities: $19.772 billion - Global Discovery: $1.840 billion - U.S. Mid-Cap Growth: $11.029 billion - U.S. Small-Cap Growth: $2.973 billion - Franchise: $0.883 billion [2] - The Global Equity Team's AUM includes: - Global Equity: $0.405 billion - Non-U.S. Growth: $14.898 billion [2] - The U.S. Value Team's AUM includes: - Value Equity: $5.357 billion - U.S. Mid-Cap Value: $2.510 billion - Value Income: $0.017 billion [2] - The International Value Group's AUM includes: - International Value: $51.203 billion - International Explorer: $0.859 billion [2] - The Global Value Team's AUM includes: - Global Value: $33.714 billion - Select Equity: $0.341 billion [2] - The Sustainable Emerging Markets Team's AUM is $2.127 billion [2] - The Credit Team's AUM includes: - High Income: $12.708 billion - Credit Opportunities: $0.337 billion - Floating Rate: $0.087 billion - Custom Credit Solutions: $0.442 billion [2] - The Developing World Team's AUM is $4.844 billion [2] - The Antero Peak Group's AUM includes: - Antero Peak: $2.211 billion - Antero Peak Hedge: $0.262 billion [2] - The International Small-Mid Team's AUM is $5.259 billion [2] - The EMsights Capital Group's AUM includes: - Global Unconstrained: $1.043 billion - Emerging Markets Debt Opportunities: $1.228 billion - Emerging Markets Local Opportunities: $1.682 billion [2] Separate Accounts and Other AUM - Separate account and other AUM consists of assets managed through vehicles other than Artisan Funds or Artisan Global Funds, including traditional separate accounts and Artisan-branded collective investment trusts [3] - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $116.2 million for which Artisan Partners provides investment models to managed account sponsors [4] Company Overview - Artisan Partners is a global investment management firm offering a wide range of high value-added investment strategies to sophisticated clients worldwide [5] - The firm has been focused on attracting experienced investment professionals since its inception in 1994 [5]

Group 1 - Artisan Partners Asset Management Inc. (APAM) has seen a 6.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 6.3%, significantly higher than the industry average of 2.7% [1] - Bar Harbor Bankshares (BHB) has experienced a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 4%, compared to the industry average of 2.6% [2] - First Financial Bancorp. (FFBC) has recorded a 6.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2 - Another company mentioned has a dividend yield of 3.6%, which is above the industry average of 3.2% [3]

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $175.0 billion as of July 31, 2025 [1] - Artisan Funds and Artisan Global Funds contributed $85.3 billion to the total AUM, while separate accounts and other AUM accounted for $89.7 billion [1] AUM by Strategy - The Growth Team's AUM includes: - Global Opportunities: $20,253 million - U.S. Mid-Cap Growth: $10,917 million - U.S. Small-Cap Growth: $2,858 million - The Global Equity Team's AUM includes: - Non-U.S. Growth: $14,787 million - The U.S. Value Team's AUM includes: - Value Equity: $5,058 million - U.S. Mid-Cap Value: $2,404 million - The International Value Group's AUM includes: - International Value: $50,036 million - The Global Value Team's AUM includes: - Global Value: $32,636 million - The Credit Team's AUM includes: - High Income: $12,468 million - The Developing World Team's AUM includes: - Developing World: $4,737 million - The Antero Peak Group's AUM includes: - Antero Peak: $2,288 million - The International Small-Mid Team's AUM includes: - Non-U.S. Small-Mid Growth: $5,264 million - The EMsights Capital Group's AUM includes: - Emerging Markets Local Opportunities: $1,641 million [2] Additional Information - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $121.8 million for which Artisan Partners provides investment models to managed account sponsors [3] - Artisan Partners is a global investment management firm offering a range of investment strategies since 1994, focusing on attracting experienced investment professionals [4]

Core Insights - Artisan Partners Asset Management (APAM) manages approximately $167 billion in assets under management (AUM) across various active investment strategies [1] Group 1: Business Model - The company employs a "talent-driven business model" that focuses on acquiring 'star' portfolio managers to differentiate itself in the investment management industry [1]

[Part I Financial Information](index=4&type=section&id=Part%20I%20Financial%20Information) This section details the company's unaudited consolidated financial statements, management's analysis, market risk, and internal controls [Unaudited Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q2 and H1 2025 and 2024, with detailed notes Consolidated Statements of Financial Condition Condensed Consolidated Balance Sheet (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $244,929 | $201,172 | | Total Assets | $1,444,685 | $1,618,756 | | Borrowings | $199,512 | $199,430 | | Total Liabilities | $840,407 | $868,837 | | Total Stockholders' Equity | $419,077 | $422,002 | Consolidated Statements of Operations Key Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $282,749 | $270,818 | $559,896 | $535,169 | | Total Operating Income | $79,772 | $86,645 | $166,307 | $164,288 | | Net Income Attributable to APAM | $67,555 | $57,574 | $128,694 | $117,055 | | Diluted EPS | $0.94 | $0.80 | $1.78 | $1.66 | Consolidated Statements of Cash Flows Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $208,816 | $222,903 | | Net cash used in investing activities | ($5,540) | ($24,651) | | Net cash used in financing activities | ($122,902) | ($139,776) | | Net increase in cash and cash equivalents | $80,374 | $58,476 | Note 5. Borrowings - As of June 30, 2025, total gross borrowings were **$200 million**, consisting of three series of senior notes. The company has no outstanding balance on its **$100 million** revolving credit facility[43](index=43&type=chunk)[44](index=44&type=chunk) - On June 3, 2025, the company agreed to issue **$50 million** of Series G Senior Notes at **5.43%** to pay off the **$60 million** Series D notes maturing in August 2025, using cash on hand for the remainder[43](index=43&type=chunk) Note 9. Revenue From Contracts with Customers Management Fees by Vehicle (in thousands) | Vehicle | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Artisan Funds | $165,959 | $157,202 | $326,932 | $310,204 | | Artisan Global Funds | $13,596 | $13,008 | $27,369 | $25,468 | | Separate accounts and other | $103,194 | $100,587 | $205,595 | $199,447 | Note 10. Compensation and Benefits Compensation and Benefits Breakdown (in thousands) | Component | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Salaries, incentive comp & benefits | $136,533 | $129,365 | $270,512 | $258,463 | | Long-term incentive compensation | $29,343 | $17,425 | $50,525 | $38,207 | | **Total Compensation & Benefits** | **$165,876** | **$146,790** | **$321,037** | **$296,670** | - During H1 2025, Artisan granted **$46.8 million** of franchise capital awards (long-term cash awards) to investment team members. The unrecognized compensation expense for these awards was **$131.1 million** as of June 30, 2025[80](index=80&type=chunk)[82](index=82&type=chunk) Note 11. Income Taxes and Related Payments - The effective tax rate was **20.6%** for the six months ended June 30, 2025, compared to **20.5%** for the same period in 2024[84](index=84&type=chunk) - The liability for amounts payable under the Tax Receivable Agreements (TRAs) decreased from **$341.5 million** at year-end 2024 to **$312.8 million** as of June 30, 2025, primarily due to payments made[89](index=89&type=chunk)[184](index=184&type=chunk) Note 16. Subsequent Events - On July 29, 2025, the company declared a quarterly dividend of **$0.73 per share** of Class A common stock, payable on August 29, 2025[109](index=109&type=chunk) - New tax legislation (OBBBA), signed into law on July 4, 2025, is expected to reduce deferred tax assets by approximately **$10 million** in Q3 2025, with changes effective for the company starting in 2027[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operational results, including AUM growth, revenue, and compensation trends Overview and Recent Highlights - AUM increased by **8%** during Q2 2025 to **$175.5 billion**, primarily due to **$15.2 billion** in market appreciation, which was partially offset by **$1.9 billion** in net client cash outflows[118](index=118&type=chunk) Q2 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $282.8M | $270.8M | | GAAP Operating Margin | 28.2% | 32.0% | | Adjusted Operating Margin | 31.7% | 32.2% | | Diluted EPS | $0.94 | $0.80 | | Adjusted EPS | $0.83 | $0.82 | AUM and Investment Performance Change in Assets Under Management (in millions) | Period | Beginning AUM | Net Client Cash Flows | Investment Returns & Other | Ending AUM | | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | $162,390 | ($1,863) | $15,212 | $175,545 | | **Q2 2024** | $160,384 | ($1,610) | $204 | $158,887 | | **H1 2025** | $161,208 | ($4,703) | $19,350 | $175,545 | | **H1 2024** | $150,167 | ($2,132) | $11,028 | $158,887 | - For Q2 2025, **14 of 27** investment strategies experienced net outflows totaling **$3.0 billion**, partially offset by **$1.1 billion** of net inflows from the remaining strategies[126](index=126&type=chunk) AUM by Asset Class as of June 30, 2025 (in millions) | Asset Class | AUM | % of Total | | :--- | :--- | :--- | | Equity | $156,117 | 88.9% | | Fixed Income | $15,583 | 8.9% | | Alternative | $3,845 | 2.2% | | **Total** | **$175,545** | **100.0%** | Results of Operations (Q2 2025 vs Q2 2024) - Revenues increased by **$12.0 million (4%)** in Q2 2025 compared to Q2 2024, driven by a **5%** increase in average AUM. The weighted average management fee slightly decreased from **68.8 bps** to **68.1 bps**[140](index=140&type=chunk)[144](index=144&type=chunk) - Total compensation and benefits rose by **$19.0 million (13%)**, primarily due to an **$11.9 million** increase in long-term incentive compensation costs, which included a **$9.3 million** impact from market valuation changes[140](index=140&type=chunk)[147](index=147&type=chunk) - Non-operating income increased significantly to **$41.1 million** from **$3.4 million**, mainly due to a **$37.8 million** aggregate increase in net investment gains from consolidated and nonconsolidated investment products[140](index=140&type=chunk)[150](index=150&type=chunk) Results of Operations (H1 2025 vs H1 2024) - For H1 2025, revenues increased by **$24.7 million (5%)** compared to H1 2024, driven by a **7%** increase in average AUM. The weighted average management fee decreased from **69.0 bps** to **67.8 bps**[154](index=154&type=chunk)[155](index=155&type=chunk) - Total compensation and benefits for H1 2025 increased by **$24.3 million (8%)**, largely due to a **$12.3 million** rise in long-term incentive compensation and a **$7.2 million** increase in incentive compensation tied to higher revenues[154](index=154&type=chunk)[158](index=158&type=chunk) Supplemental Non-GAAP Financial Information GAAP vs. Non-GAAP Reconciliation Highlights | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.94** | **$0.80** | **$1.78** | **$1.66** | | **Adjusted Net Income per Share** | $0.83 | $0.82 | $1.66 | $1.58 | | **Operating Margin (GAAP)** | **28.2%** | **32.0%** | **29.7%** | **30.7%** | | **Adjusted Operating Margin** | 31.7% | 32.2% | 31.9% | 31.6% | Liquidity and Capital Resources Liquidity Position (in millions) | Component | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $244.9 | $201.2 | | Accounts receivable | $117.0 | $118.7 | | Seed investments | $139.0 | $154.9 | | Undrawn revolving credit | $100.0 | $100.0 | - The company expects to make TRA payments totaling approximately **$38.9 million** in fiscal 2025, of which **$29.2 million** was paid in Q2 2025[186](index=186&type=chunk)[192](index=192&type=chunk) - The company's dividend policy is to pay approximately **80%** of cash generated each quarter, with a potential special dividend at year-end[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to market risk disclosures since the last annual Form 10-K report - There have been no material changes in Quantitative and Qualitative Disclosures Regarding Market Risk from those previously reported in the Form 10-K for the year ended December 31, 2024[195](index=195&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and no material changes to internal controls as of June 30, 2025 - Based on an evaluation as of June 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[197](index=197&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[198](index=198&type=chunk) [Part II Other Information](index=50&type=section&id=Part%20II%20Other%20Information) This section addresses legal proceedings and key risk factors impacting the company's operations [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to legal proceedings expected to materially affect its financial position or operations - As of the report date, there are no legal or administrative proceedings that management believes may have a material adverse effect on the company's consolidated financial position, cash flows, or results of operations[199](index=199&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the detailed discussion of potential risks in the company's latest annual Form 10-K - The company directs investors to the "Risk Factors" section in its latest annual report on Form 10-K for a discussion of potential risks and uncertainties[200](index=200&type=chunk)

Financial Data and Key Metrics Changes - The ending AUM reached $176 billion, an increase of 8% compared to March [24] - Average AUM for the quarter was flat sequentially but up 5% compared to June of the previous year [24] - Year-to-date average AUM improved by 7% over the prior year's six-month period [25] - Revenues for the quarter increased by 2% compared to March and by 4% compared to the same quarter last year [26] - Adjusted operating income increased slightly compared to the prior quarter and by 3% compared to the same quarter last year [27] - Adjusted net income per adjusted share was flat compared to last quarter and up slightly compared to the second quarter of 2024 [27] Business Line Data and Key Metrics Changes - The credit team's flagship high income strategy outperformed its benchmark by 170 basis points annually after fees [11] - The high income strategy is ranked number two of 154 products in its eVestment universe [11] - The credit team manages more than $13 billion across its franchise [12] - The Developing World Strategy has compounded capital at an average annual rate of 11.59% since inception [15] - Each of Artisan's five emerging market strategies has positive year-to-date net flows, raising a net $700 million across the group so far this year [17] Market Data and Key Metrics Changes - Net client cash outflows during June were $1.9 billion, driven by lower gross equity inflows and outflows compared to the prior quarter [25] - The second quarter represents the twelfth consecutive quarter of positive flows for the fixed income business [25] - Emerging markets are seeing a positive uptick in interest, particularly in local opportunities and sustainable emerging markets [44] Company Strategy and Development Direction - The company is focused on evolving its investment platform to include multi-asset and alternative investments [22] - There is a strategic emphasis on M&A opportunities in the alternatives asset classes, particularly in real estate and private equity [33][36] - The company aims to align its distribution with clients who value long-term asset allocation for high value-added investing [21] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious risk-aware environment affecting institutional clients, leading to a backing off on risk [46] - The company is optimistic about allocations in emerging markets and fixed income strategies [53] - Management expects revenue to benefit from an 8% increase in AUM in Q3, along with a reduction in costs associated with the China Post Venture Team [28] Other Important Information - The company declared a quarterly dividend of $0.73 per share, a 7% increase over the prior quarter [30] - The balance sheet remains strong with approximately $140 million of seed capital invested in seeded products [28] Q&A Session Summary Question: What areas or asset classes is the company most open to pursue for M&A? - The company is focused on talent-driven opportunities and sees M&A as a potent opportunity, particularly in alternatives and real estate [32][33] Question: How should the company think about capacity constraints and reopening strategies? - The company is managing capacity judiciously and is freeing up capacity in some growth strategies [38][39] Question: Can you provide more details on the two institutional mandates mentioned? - The company is seeing interest in emerging markets and has positive opportunities with sustainable emerging markets [44][52] Question: What is the outlook for seed capital needs this year? - The company is well positioned regarding seed capital and expects opportunities to redeploy capital over the next twelve to eighteen months [66]

Financial Data and Key Metrics Changes - Ending AUM reached $176 billion, an increase of 8% compared to March [23] - Average AUM for the quarter was flat sequentially but up 5% year-over-year [23] - Year-to-date average AUM improved by 7% over the prior year's six-month period [23] - Revenues for the quarter increased by 2% compared to March and 4% compared to the same quarter last year [25] - Adjusted operating income increased slightly compared to the prior quarter and 3% year-over-year [26] - Adjusted net income per adjusted share was flat compared to last quarter and up slightly compared to the second quarter of 2024 [26] Business Line Data and Key Metrics Changes - The credit team manages over $13 billion across its franchise, with continued positive flows in fixed income [11] - The high income strategy has outperformed its benchmark by 170 basis points annually after fees [10] - The Developing World Strategy has compounded capital at an average annual rate of 11.59% since inception [14] - Artisan's five emerging market strategies have positive year-to-date net flows, raising a net $700 million across the group [15] Market Data and Key Metrics Changes - Net client cash outflows during June were $1.9 billion, driven by lower gross equity inflows and outflows compared to the prior quarter [24] - The second quarter marked the twelfth consecutive quarter of positive flows for the fixed income business [24] - Institutional clients are showing increased interest in emerging markets and fixed income strategies [44] Company Strategy and Development Direction - The company is focused on evolving its investment platform to include multi-asset and alternative investments [21] - There is a strong emphasis on talent-driven opportunities for M&A, particularly in alternatives and private equity [33][36] - The company aims to expand its distribution to align with clients valuing long-term asset allocation for high-value added investing [20] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious risk-aware environment affecting gross flows, with a focus on credit as a growth area [46] - The company is optimistic about allocations in emerging markets and fixed income strategies, especially with the ten-year anniversary of the Developing World strategy [44][52] - Management expressed confidence in the firm's ability to execute well for investment talent, clients, and shareholders under new leadership [21] Other Important Information - The company declared a quarterly dividend of $0.73 per share, a 7% increase over the prior quarter [30] - The balance sheet remains strong with approximately $140 million of seed capital invested in seeded products [28] Q&A Session Summary Question: What areas or asset classes is the company most open to pursue for M&A? - The company is focused on talent-driven opportunities, particularly in alternatives and private equity, with interest in real estate and secondaries business [33][36] Question: How should the company think about capacity constraints and timing for reopening? - The company is managing capacity judiciously, particularly in growth strategies, and is working with intermediated wealth clients to maintain consistency [38][39] Question: Can you elaborate on the two institutional mandates mentioned? - The company is seeing interest in emerging markets and fixed income strategies, with positive movement around rebalancing in global equity [42][44] Question: What is the outlook for seed capital needs this year? - The company is well positioned regarding seed capital and expects opportunities to redeploy capital for additional seed or acquisitions in the next 12 to 18 months [64][66]