Steven Bender: Thank you, Jean-Marc, and good afternoon, everyone. In this morning's press release, we reported Westlake Partners' fourth quarter 2025 net income of $15 million or $0.41 per unit, consolidated net income, including OpCo's earnings, was $84 million on consolidated net sales of $323 million. The partnership had distributable cash flow for the quarter of $19 million or $0.53 per unit. Fourth quarter 2025 net income for Westlake Partners of $15 million was in line with the fourth quarter of 2024 ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a net income of $49 million or $1.38 per unit, a decrease of $13 million compared to 2024 [4][7] - Consolidated net income, including OpCo, was $299 million for the full year 2025 [4] - Fourth quarter 2025 net income was $15 million, or $0.41 per unit, consistent with the fourth quarter of 2024 [6][7] - Distributable cash flow for the fourth quarter of 2025 was $19 million, an increase of $4 million compared to the fourth quarter of 2024 [7] Business Line Data and Key Metrics Changes - The decrease in net income for the full year 2025 was attributed to lower production and sales volumes due to a planned turnaround at the Petro 1 facility [7][11] - The partnership's full year 2025 MLP distributable cash flow was $53 million, down $14 million from $67 million in 2024 [8] Market Data and Key Metrics Changes - The company maintained a strong leverage ratio below 1 time at the end of the fourth quarter [9] - The operating surplus at the end of 2025 was approximately $74 million, sufficient to cover current and future expected annual distributions [19] Company Strategy and Development Direction - The company plans to focus on growth through increasing ownership interest in OpCo, acquiring other income streams, and organic growth opportunities such as expanding ethylene facilities [12][13] - The Ethylene Sales Agreement with Westlake was successfully renewed through 2027 without changes, indicating the importance of OpCo's ethylene supply [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the business model and cash flows, expecting a recovery in distributable cash flow and coverage ratio in 2026 due to no planned turnarounds [11][12] - The company aims to continue providing long-term value and distributions to unit holders while focusing on safe operations and sustainability [13] Other Important Information - The company has made 46 consecutive quarterly distributions since its IPO in July 2014, with a 71% increase in distributions since the original minimum [10] - The fourth quarter distribution of $0.4714 per unit was paid on February 23, 2026 [9][10] Q&A Session Summary Question: Balance sheet and cash flow regarding distribution payments - The CFO clarified that the drawdown on the investment management account was related to maintenance turnaround costs, and the operating reserves were strong enough to cover distributions [17][19] Question: Financing growth initiatives - The CFO explained that any growth opportunities would likely be financed through a combination of new unit issuance and leveraging the balance sheet [21]

Core Insights - Energy Transfer LP (ET) is recognized as a strong income-focused investment due to its consistent increase in quarterly cash distributions over the past five years, having raised its payout 16 times, indicating robust financial performance and capital discipline [1][8] Company Overview - Energy Transfer operates a diversified midstream platform with assets in crude oil, NGLs, refined products, and natural gas pipelines, as well as storage and processing facilities, with a significant presence in the Permian Basin [2] - The firm also manages the Dakota Access Pipeline and has interests in export terminals, enhancing its scale and creating additional cash flow opportunities [2] Financial Strategy - The company has adopted a disciplined capital allocation strategy, focusing on balance sheet strength, organic growth projects, and returning excess cash to unitholders, which has improved financial flexibility while maintaining strong distribution coverage [3][4] Investment Opportunity - With a proven ability to grow cash payouts rapidly, a resilient business model, and improving financial metrics, Energy Transfer presents an attractive opportunity for investors seeking high income supported by durable cash flows and long-term value creation in the oil and gas midstream sector [4] Industry Trends - Midstream firms are increasingly raising cash distributions, supported by stable, fee-based contracts, disciplined capital spending, and improving balance sheets, making the sector appealing to income-focused investors [5] - Other midstream firms like Enterprise Products Partners (EPD) and Plains All American Pipeline (PAA) have also consistently increased unitholder value through regular cash distributions [6] Valuation Metrics - Energy Transfer units are currently trading at a discount relative to the industry, with a trailing 12-month EV/EBITDA of 9.3X compared to the industry average of 10.91X, indicating potential undervaluation [7][8] Performance and Growth Estimates - Energy Transfer units have appreciated by 10.3% in the past month, outperforming the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 6.4% [10] - The Zacks Consensus Estimate for Energy Transfer's 2026 earnings per unit indicates a year-over-year growth of 16.99%, with long-term earnings growth projected at 12.45% [12]

Core Insights - Ferrellgas Partners, L.P. reported a strong start to fiscal 2026, with operational improvements and successful refinancing efforts contributing to a positive outlook for the winter heating season and the full fiscal year [2][3] Financial Highlights - The company completed financing transactions in October 2025, including redeeming $650 million of Senior Notes due 2026 and issuing $650 million of new Senior Notes due 2031, which strengthened its balance sheet [3] - Revenue for the first fiscal quarter decreased by $8.9 million, or 2%, to $355.2 million, while gross profit remained flat at $195.2 million [4][17] - Adjusted EBITDA decreased by $6.5 million, or 18%, to $29.3 million compared to the prior year quarter, primarily due to increased operating and administrative expenses [5][19] Operational Highlights - Retail sales increased by $0.7 million, driven by a $2.8 million rise in sales to residential and agricultural customers, despite a decrease in wholesale sales due to the absence of significant weather events [4][10] - The retail business experienced a 37% increase in temporary heat tank sets compared to the prior year, indicating strong customer demand [9] - The wholesale business normalized due to a lack of storm-related demand, but the company maintained profitability through disciplined management of production and logistics costs [10] Balance Sheet Overview - As of October 31, 2025, total assets were $1.38 billion, a decrease from $1.42 billion at the end of the previous fiscal year [29] - Current liabilities decreased significantly from $914.5 million to $289.0 million, reflecting improved financial flexibility [29] - Long-term debt increased to $1.45 billion from $815.5 million, indicating a strategic shift in financing [29] Customer and Market Strategy - The company focused on enhancing customer service and retention, particularly in the North Central, Northeast, and Pacific regions, through investments in customer service representatives [9] - Strategic outbound calling campaigns were implemented to capture on-demand customers in preparation for the winter season [9][11]

Core Viewpoint - USA Compression Partners has shown a slight increase in share price but has underperformed compared to the S&P 500, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - In Q3, USA Compression reported an adjusted net profit of 26 cents per common unit, exceeding the Zacks Consensus Estimate of 22 cents and improving from 13 cents in the previous year [3]. - The company generated revenues of $250.3 million, a 4.3% increase year-over-year, surpassing the Zacks Consensus Estimate of $247 million, driven by a 3.4% rise in contract operations and a 23.4% increase in related-party revenues [4]. - Adjusted EBITDA rose by 10% to $160.3 million, exceeding the estimate of $146.8 million [4]. - Distributable cash flow increased to $103.8 million from $86.6 million in the prior-year quarter, with net income rising to $34.5 million from $19.3 million [5]. - The average monthly revenue per horsepower increased to $21.46 from $20.60, above the estimate of $21.42, while the horsepower utilization rate was 94%, slightly down from 94.6% a year ago [6]. Cost and Capital Expenditures - The company reported costs and expenses of $166.3 million, down 4.1% from $173.5 million in the previous year [8]. - Growth capital expenditures amounted to $37.3 million, while maintenance capital expenditures were $9 million [8]. Guidance and Future Outlook - USA Compression expects full-year 2025 adjusted EBITDA to be between $610 million and $620 million, with distributable cash flow projected to range from $370 million to $380 million [9]. - Estimates for the company have trended upward, with a 12.5% shift in consensus estimates over the past month, indicating positive market sentiment [10][12]. - The company holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [12]. Industry Context - USA Compression operates within the Zacks Oil and Gas - Mechanical and Equipment industry, where another player, Nov Inc., has seen a 6.1% gain over the past month despite reporting a slight revenue decline [13]. - Nov Inc. is expected to post earnings of $0.25 per share for the current quarter, reflecting a 39% decrease from the previous year, with a Zacks Rank 3 (Hold) [14].

Core Viewpoint - South Bow Corp. reported its third-quarter 2025 financial and operational results, highlighting stable performance and providing an outlook for 2026, with a focus on financial strength and growth opportunities [1]. Financial Performance - Revenue for Q3 2025 was $461 million, with a net income of $93 million ($0.45/share) [5][8]. - Normalized EBITDA for Q3 2025 was $254 million, a 2% increase from Q2 2025, driven by maintenance capital expenditures [5][8]. - Distributable cash flow reached $236 million, an increase of $69 million from Q2 2025, attributed to changes in U.S. tax legislation and tax optimization efforts [5][8]. - Total long-term debt remained stable at $5.8 billion, with a net debt of $4.8 billion, maintaining a net debt-to-normalized EBITDA ratio of 4.6 times as of September 30, 2025 [5][8]. - Dividends declared totaled $104 million or $0.50/share during Q3 2025, with a quarterly dividend of $0.50/share approved for payment on January 15, 2026 [5][8]. Operational Performance - Average throughput on the Keystone Pipeline was approximately 584,000 bbl/d in Q3 2025, with the U.S. Gulf Coast segment averaging about 703,000 bbl/d [5][8]. - The Blackrod Connection Project achieved mechanical completion and is on track for commercial service in early 2026, with expected cash flow increases in the latter half of 2026 and into 2027 [5][8]. - Remedial actions related to the Milepost 171 incident are ongoing, with six in-line inspections and 37 integrity digs completed to date [5][8]. Returns to Shareholders - The company declared dividends totaling $104 million in Q3 2025, maintaining a strong commitment to returning value to shareholders [5][8]. - The board approved a quarterly dividend of $0.50/share, reinforcing the company's focus on sustainable shareholder returns [5][8]. 2026 Outlook - South Bow's 2026 guidance projects normalized EBITDA of approximately $1.03 billion, with about 90% secured through committed arrangements [10][22]. - The company anticipates a modest increase in its net debt-to-normalized EBITDA ratio through 2026, reflecting ongoing investments and one-time separation costs [10][22]. - Distributable cash flow for 2026 is expected to be around $655 million, influenced by higher anticipated current taxes compared to 2025 [10][22].

Core Insights - Black Stone Minerals, L.P. reported its financial and operational results for the third quarter of 2025, highlighting a focus on leadership succession and continued growth strategies [1][3][5]. Financial and Operational Highlights - Mineral and royalty production for Q3 2025 was 34.7 MBoe/d, a 5% increase from the previous quarter, while total production was 36.3 MBoe/d [5][9]. - Net income for the quarter was $91.7 million, with Adjusted EBITDA at $86.3 million and distributable cash flow of $76.8 million [5][14][15]. - The partnership declared a distribution of $0.30 per unit for Q3 2025, maintaining the same level as the prior quarter, with a distribution coverage ratio of 1.21x [5][18]. Leadership Changes - A leadership succession plan was announced, effective January 1, 2026, with Tom Carter becoming Executive Chairman, and Fowler Carter and Taylor DeWalch appointed as co-CEOs [3][4]. - The board expressed confidence in the new leadership team to continue the company's focus on organic growth and financial discipline [4]. Production and Revenue Details - The average realized price per Boe for Q3 2025 was $30.01, a 7% decrease from the previous quarter but a 2% increase year-over-year [10]. - Oil and gas revenue for the quarter was $100.2 million, a slight decrease from $102.0 million in Q2 2025 [11]. - The partnership reported a gain on commodity derivative instruments of $27.3 million for Q3 2025 [12]. Development and Acquisition Activities - Black Stone continues to engage in development activities, with Aethon Energy operating one rig and plans for 15 wells in the current program year [19][20]. - The partnership acquired $20.3 million in additional mineral and royalty interests during Q3 2025, contributing to a total of $193.2 million in acquisitions since September 2023 [26]. Financial Position and Credit Facility - As of the end of Q3 2025, total debt was $95.0 million, reduced to $73.0 million by October 31, 2025, with approximately $3.6 million in cash on hand [5][16]. - The credit facility's maturity date was extended to October 31, 2030, with a reaffirmed borrowing base of $580.0 million [17].

Financial Data and Key Metrics Changes - Westlake Chemical Partners reported a net income of $15 million, or $0.42 per unit, for Q3 2025, which is lower than the net income for Q3 2024 due to lower margins on ethylene sales [5][6] - Consolidated net income, including OpCo's earnings, was $86 million on consolidated net sales of $309 million [6] - Distributable cash flow for the quarter was $15 million, or $0.42 per unit, a decrease of $3 million compared to Q3 2024 due to higher maintenance capital expenditures [6][7] Business Line Data and Key Metrics Changes - The completion of the planned turnaround at the Petro One Ethylene unit positively impacted sales and earnings in Q3 2025 [5] - The Partnership maintained a cumulative distribution coverage ratio of approximately 1.1 times since its IPO in 2014, despite the recent dip in coverage due to planned turnarounds [8] Market Data and Key Metrics Changes - Global industrial and manufacturing activity remains soft in 2025, affecting the global chemical industry [10] - The ethylene sales agreement with Westlake Corporation, which covers 95% of OpCo's production, continues to provide predictable fee-based cash flow [10] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquiring other qualified income streams, and expanding current ethylene facilities [11] - The renewal of the ethylene sales agreement through the end of 2027 under the same terms demonstrates the critical nature of OpCo's supply of ethylene [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the operating surplus will continue to build following the successful completion of the turnaround, expecting distributions to be well covered by cash flows [15][16] - The company remains focused on safe operations and sustainability efforts while navigating market conditions [11] Other Important Information - The Partnership announced a quarterly distribution of $0.4714 per unit for Q3 2025, marking 45 consecutive quarterly distributions since its IPO [7][8] Q&A Session Summary Question: Outlook for getting distributable cash flow up to a level where the distribution will be covered - Management indicated that the dip in coverage was due to the planned turnaround, which impacted production and sales, but expects the operating surplus to continue to build now that production is back to full capacity [15] Question: Pro forma basis for distributable cash flow without the impact of the turnaround - Management confirmed that, without the impact of the turnaround, the distributable cash flow would have been in excess of the distribution [16]

Core Insights - Ferrellgas Partners, L.P. reported growth in annual sales volume, revenue, gross profit, and adjusted EBITDA for fiscal year 2025, despite a decrease in adjusted EBITDA for the fourth quarter [2][5]. Financial Highlights - For the fourth fiscal quarter, adjusted EBITDA decreased by $10.5 million, or 31%, to $23.1 million compared to $33.6 million in the prior year quarter, primarily due to increased general and administrative expenses and operating expenses [3][4]. - For fiscal 2025, adjusted EBITDA increased by $13.3 million, or 4%, to $330.7 million compared to $317.4 million in fiscal 2024, driven by a $39.7 million increase in gross profit [5][6]. - Gross profit for fiscal 2025 reached over $1.0 billion, a 4% increase, attributed to a $101.2 million increase in revenues, partially offset by a $61.5 million increase in cost of product [6][10]. Operational Highlights - Gallons sold for the fourth fiscal quarter decreased by 3.3 million gallons, or 2%, but increased by 20.4 million gallons, or 3%, for fiscal 2025 [12]. - Retail sales increased by $2.9 million, or 2%, for the fourth fiscal quarter and $48.3 million, or 4%, for fiscal 2025, with growth across all customer types except agricultural customers [13]. - Wholesale sales increased by $0.4 million, or 0.2%, for the fourth fiscal quarter and $41.6 million, or 8%, for fiscal 2025 [14]. Expense Analysis - The increase in operating expenses for fiscal 2025 was $24.7 million, driven by increases in plant and other expenses and personnel costs [5][7]. - Interest expense increased by $9.8 million, primarily due to higher amortization of debt issuance costs and other interest charges [8]. Net Loss - The company recognized a net loss attributable to Ferrellgas Partners, L.P. of $26.8 million for the fourth fiscal quarter and $15.6 million for fiscal 2025, compared to net earnings of $110.2 million in fiscal 2024 [9][22].

Core Viewpoint - MPLX LP has completed a $2.375 billion acquisition of Northwind Delaware Holdings LLC, enhancing its natural gas and NGL value chains in the Permian Basin [1][2]. Financial Summary - The acquisition is expected to be immediately accretive to distributable cash flow and involves an estimated incremental capital of $500 million, representing a 7x multiple on forecast 2027 EBITDA and an estimated mid-teen unlevered return [2]. - The acquisition was financed through net proceeds from MPLX's $4.5 billion senior notes issued in August 2025 [2]. Operational Details - The acquired business complements MPLX's existing Delaware basin natural gas system, consisting of over 200,000 dedicated acres, 200+ miles of gathering pipelines, and two in-service acid gas injection wells with a capacity of 20 million cubic feet per day (MMcf/d), with a third well permitted to increase total capacity to 37 MMcf/d [3]. - The system currently has a sour gas treating capacity of 150 MMcf/d, with expansion projects expected to increase this capacity to 440 MMcf/d by the second half of 2026 [3]. - The system is supported by minimum volume commitments from top regional producers [3]. Company Overview - MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets, including crude oil and refined product pipelines, storage caverns, and natural gas processing facilities [4].