Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $2 billion, an increase of 614% year-over-year [17] - Adjusted diluted earnings per share rose to $1.11, reflecting significant growth [17] - Consolidated adjusted EBITDA margins improved from 21% to 22% compared to the previous year [6] Business Line Data and Key Metrics Changes - Vacation Ownership segment revenue increased by 4% to $755 million, with adjusted EBITDA rising 18% to $159 million [18] - Travel and Membership segment revenue decreased by 7% to $180 million, with adjusted EBITDA down 9% to $68 million, driven by a 13% decline in exchange transactions [18] Market Data and Key Metrics Changes - The average volume per guest (VPG) was $3,212, significantly above $3,000, indicating strong consumer demand [9] - The booking window for resort visits decreased from 130 days to 116 days year-over-year, but forward bookings remain strong [11] Company Strategy and Development Direction - The company is focusing on enhancing its technology investments to improve owner satisfaction, with the Club Wyndham app seeing a significant increase in downloads [12] - A new Margaritaville resort is planned to open in 2027, indicating ongoing expansion efforts [15] - The company is maintaining a strong capital return strategy, with a 12% increase in dividends to $0.56 per share and $70 million in share repurchases [6][21] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment has declined, but company-specific KPIs remain strong, indicating resilience in the vacation ownership business [8] - The company expects adjusted EBITDA for Q2 to be between $245 million and $255 million, reiterating its full-year adjusted EBITDA outlook [15][19] Other Important Information - The company has a leverage ratio of 3.3 times and expects it to increase in the next two quarters before declining [20] - The company generated $121 million in operating cash flow and $152 million in adjusted free cash flow for the quarter [19] Q&A Session Summary Question: Can you talk about what you've seen in April and then talk about T and M? - Management indicated that the vacation ownership business continues to perform well, with no signs of uncertainty affecting KPIs [24] Question: How is your summer rental business looking? - Summer demand through the rental program remains consistent, with solid forward bookings for the summer [35] Question: Can you provide visibility on the summer rental business? - Management confirmed that summer rentals are solid, and forward bookings look strong for the summer months [36] Question: What is the mix of closing to existing owners versus new buyers? - The new owner mix returned to historical levels, and management expects it to grow as they move into the summer [38] Question: Can you walk us through the drivers of tour flow acceleration? - Management expects easier comps and new marketing channels to drive tour flow growth in the second half of the year [47] Question: Any impact from international tourism slowdown? - The company reported that about 90% of revenue comes from North America, with no significant impact from international travel issues [67] Question: How does the company view capital allocation in the current environment? - Management remains confident in the business and cash flow, indicating no significant changes to capital allocation plans [70] Question: Can you provide more color on the uptick in delinquencies? - The increase in delinquencies was seen across all channels, but management is optimistic about improvements in collections [54] Question: How does the company plan to address potential slowdowns in new owner close rates? - Management believes they can react quickly to any changes in the market and maintain steady pricing [95]

Core Viewpoint - DOMA Perpetual believes that Pacira BioSciences' stock is undervalued, presenting an opportunity for the company to execute its largest buyback in history [1][4]. Group 1: Capital Allocation and Shareholder Value - DOMA Perpetual views the new capital allocation announcement as a strong commitment from Pacira's Board to enhance shareholder value [2]. - The combination of a $300 million share repurchase program and a focus on increasing pre-tax net income margins is expected to strengthen shareholder returns [3]. - The management is now tasked with effectively executing these initiatives to realize their potential [3]. Group 2: Growth and Financial Position - DOMA Perpetual is encouraged by Pacira's steps towards long-term value creation, indicating a period of rapid growth for the company [4]. - The new capital allocation priorities reflect Pacira's considerable momentum in scaling earnings and free cash flow, allowing for meaningful capital returns to shareholders while still investing in growth [4]. - The stock is considered undervalued relative to its historical average and the anticipated multi-year growth cycle ahead [4].

Core Viewpoint - TETRA Technologies, Inc. is committed to refreshing its Board of Directors to enhance value creation and maintain effective governance, amidst ongoing challenges from activist shareholder Brad Radoff [1][2][5]. Board Refreshment and Governance - TETRA plans to nominate Julie Sloat, a former CEO of American Electric Power, for election to its Board, while independent director Mark E. Baldwin will retire [2][3]. - Over the past five years, TETRA has proactively refreshed its Board with five retirements and four new additions, ensuring a diverse and experienced leadership team [3][4]. - The Board has focused on maintaining clear disclosures regarding governance policies and strategic planning, aiming for a well-rounded Board with expertise in various relevant fields [3][4]. Performance and Strategy - Since the appointment of CEO Brady Murphy in 2019, TETRA has achieved a total shareholder return of approximately 60%, with a five-year total shareholder return of 1117%, significantly outperforming industry indices [11][17]. - The company’s long-term strategy includes leveraging synergies between its Completion Fluids & Products and Water & Flowback Services segments, while also expanding into energy storage and desalination markets [11][7]. - TETRA has maintained disciplined capital allocation, achieving a record Return on Net Capital Employed (RONCE) of 17.8% over the last two years, up from 13.4% in 2022 [11][19]. Activist Campaign and Response - Brad Radoff has initiated an activist campaign to replace a majority of the Board's independent members, despite TETRA's efforts to engage in good faith discussions [5][6]. - The Board's Nominating, Governance and Sustainability Committee is assessing Radoff's proposed candidates, noting that some have poor records of delivering shareholder value [6][7]. - TETRA emphasizes that destabilizing the current Board would not be in the best interests of shareholders, as it continues its director refreshment approach [6][7].

Financial Data and Key Metrics Changes - Revenues increased by 4% to $335.4 million, with an improved operating loss of $20.9 million compared to $30.6 million in the prior year [34] - Adjusted EBITDA was $6 million, up from a loss of $7.2 million a year ago, and net loss improved to $1.3 million from a loss of $23.3 million [34] - Adjusted loss per diluted share improved to $0.05 compared to a loss of $0.80 last year [35] Business Segment Data and Key Metrics Changes - Children's Book Publishing and Distribution revenues increased by 5% to $203.3 million, with adjusted operating income rising to $7.6 million from $2.8 million [35] - Book Fairs revenues were $110.7 million, an increase of 8%, while Book Clubs revenues rose by 14% to $15.2 million [36][37] - Entertainment segment revenues were $12.8 million, reflecting the contribution of 9 Story Media Group, but adjusted operating loss was $2.4 million compared to a loss of $0.1 million a year ago [39] - Education Solutions segment revenues declined by 16% to $57.2 million, with adjusted operating loss increasing to $6.9 million from a loss of $0.8 million [41] Market Data and Key Metrics Changes - International segment revenues increased to $59.3 million, with major markets like Canada and the U.K. benefiting from strong sales of "Dog Man: Big Jim Begins" [45] - Excluding unfavorable foreign currency exchange impacts, segment revenues were up $2.9 million [45] Company Strategy and Development Direction - The company remains committed to capital allocation priorities, investing in growth initiatives while returning over $35 million to shareholders through share repurchases and dividends [9] - A strategic review of the Education Solutions business is underway to optimize its long-term potential [29] - The company is focused on enhancing its core and adjoining markets, leveraging its brand and distribution channels for growth opportunities [60] Management's Comments on Operating Environment and Future Outlook - Management noted increasing consumer caution in spending, particularly in discretionary categories like children's books, and uncertainty around federal education policy affecting school purchases [12][28] - The company anticipates modest revenue growth for the full year, with adjusted EBITDA forecasted at approximately $140 million, reflecting external spending pressures [10][53] - Management expressed confidence in long-term growth opportunities despite short-term headwinds [60] Other Important Information - The company has a strong balance sheet with modest debt and significant owned real estate assets, providing options for liquidity and shareholder returns [9][48] - The company repurchased 1.45 million shares for $30 million in the last quarter, with an additional $53.4 million authorized for repurchases [51][52] Q&A Session Summary Question: Outlook on backlist sales given consumer pressure - Management indicated that successful frontlist titles can drive backlist sales, particularly with key authors like Dav Pilkey and Suzanne Collins [66][67] Question: Changes in funding levels for school districts - Management noted that schools are being more cautious with spending, holding onto funds while awaiting clarity on federal funding [70][72] Question: Strategic review of Education Solutions - The review is internally led, focusing on resource allocation to ensure success in the supplemental education market [78] Question: Fair value of real estate assets - Management refrained from providing specific valuations but emphasized the importance of making information available for investor assessment [83]

Financial Data and Key Metrics Changes - In 2024, the company achieved a 180% year-on-year increase in oil production, with the Permian contributing over 60% to cash flows [7][10] - Proved reserves grew approximately 20% year-over-year despite pricing headwinds [18] - The company reported net revenue interest production in Pennsylvania at approximately 30 million cubic feet a day, up 85% from the daily average during 2024 [12] Business Line Data and Key Metrics Changes - The Permian business saw significant growth with an investment of $24 million, leading to increased production and undeveloped acreage [14] - In the Marcellus, production curtailments were estimated at 20% to 25% of net total, but the environment improved in the fourth quarter, leading to a strong start in 2025 [9][13] - The company established a new project area in Alberta, Canada, with a joint venture that adds multi-year economic inventory for approximately a $7 million drilling carry [7][16] Market Data and Key Metrics Changes - The Marcellus experienced sub $2 per Mcf net wellhead pricing, but pricing improved significantly in early 2025, with realized prices over $3.90 per Mcf [9][12] - The gathering system throughput in the Marcellus is up over 50% from the average in the third quarter of 2024 [13] Company Strategy and Development Direction - The company remains committed to its fixed dividend while exploring opportunities to reduce share count [10] - Future development in the Permian is expected to pick back up, with significant undeveloped acreage available [14][15] - The company is focused on capital allocation across multiple project areas, including a new project in Alberta [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Marcellus market, indicating a strong start to 2025 and improved cash flows [11][13] - The company is in a strong position with over $50 million of liquidity and strong free cash flows [17] Other Important Information - The operator in the Marcellus has provided clarity on a multi-year plan, which includes development scheduling for 2026 and beyond [41] - The company has not been active in share repurchases year-to-date but remains opportunistic in its capital allocation strategy [49] Q&A Session Summary Question: How many wells were drilled and completed in Alberta in 2024? - The company drilled 2 gross wells, 1 net, in the small project called Killam, and 2 gross wells in the larger Garrington area [28][30] Question: How many wells will be drilled in the larger area in 2025? - There are plans for another 2 wells to be drilled in the larger area over the remainder of 2025 [31][32] Question: What are the expectations regarding the Marcellus operator's plans into 2026? - The operator's multi-year plan includes development scheduling for 2026, 2027, and 2028, which has been included in the reserve report [41][42] Question: What is the company's hedge position for natural gas? - The company is hedged through October at roughly 30% of gas production, with plans to be aggressive in the winter months [46][47] Question: Has the company been active in share repurchases year-to-date? - The company has not been active in share repurchases but considers it an option for capital allocation [48][49]

Financial Data and Key Metrics Changes - In 2024, the company achieved a net income of BRL2.2 billion, exceeding the guidance of BRL1.9 billion, despite macroeconomic challenges and over BRL100 million negative impacts from accounting changes [10] - Adjusted net income grew 18% year over year, with adjusted basic EPS increasing by 26% compared to Q4 2023 [12] - Adjusted administrative expenses were BRL994 million, lower than the guidance of BRL1.125 billion, reflecting ongoing efficiency improvements [10][12] Business Line Data and Key Metrics Changes - The MSMB car TPV reached BRL403 billion, a 15% year-over-year growth, while total MSMB TPV exceeded expectations at BRL454 billion, a 22% increase [6][10] - The MSNB take rate was 2.55%, surpassing the guidance of 2.49%, driven by disciplined pricing and increased contributions from banking and credit solutions [8][10] - The credit portfolio grew to BRL1.2 billion, significantly exceeding the target of BRL800 million, with non-performing loans over ninety days remaining controlled at 3.61% [9][20] Market Data and Key Metrics Changes - The active client base for MSMB payments increased by 19% year over year to 4.1 million clients, with a notable acceleration in client additions [15] - Retail deposits reached BRL8.7 billion, exceeding the guidance of BRL7 billion, reflecting strong performance in bundled payments and banking offerings [7][18] - The banking active client base grew by 46% year over year to 3.1 million, outpacing the payments client base growth [18] Company Strategy and Development Direction - The company aims to establish Stone accounts as the primary financial hub for clients, focusing on enhancing the value proposition through a comprehensive ecosystem beyond payments [8] - Key initiatives for 2025 include investment products and workflow tools to accelerate deposit growth [8] - The company is committed to maximizing long-term intrinsic business value growth, emphasizing disciplined execution and prudent capital allocation [40] Management Comments on Operating Environment and Future Outlook - Management acknowledged potential macroeconomic challenges but expressed confidence in delivering sustainable long-term value creation [40] - The company plans to continue outpacing market growth and expanding its share in the MSMB payments market [6] - Management highlighted the importance of evolving client engagement and the successful execution of strategic priorities [5][10] Other Important Information - The company recognized a goodwill impairment charge of BRL3.6 billion for the software cash-generating units, which is a non-cash accounting adjustment [27] - The adjusted net cash position was BRL4.7 billion at quarter end, reflecting ongoing share repurchase activity [32] - The company expects to return excess capital to shareholders over time when value-accretive growth opportunities are not immediately available [35] Q&A Session Summary Question: Performance of banking solutions and room for improvement - Management noted that deposits are growing ahead of TPV due to successful bundling of payments and banking solutions, with expectations for continued growth as more solutions are developed [45][46] Question: View on dividends and capital structure - Management emphasized a commitment to returning capital to shareholders through share buybacks, with no specific targets for dividends at this time [50][51] Question: Pricing strategy and impact - Management confirmed that a substantial repricing initiative was implemented at the beginning of Q1 2025, with expectations for effective adjustments across the client base [58][61] Question: Guidance on basic vs. diluted EPS - Management explained the decision to guide basic EPS due to accounting volatility and the potential for double counting with share-based compensation [62][64] Question: Potential sale of software business - Management stated that no offers met the intrinsic value for the software assets, and they will focus on maximizing value through cross-selling financial services [75][76]

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue was $48.8 million, with total company adjusted EBITDA of $4.9 million and operated segment adjusted EBITDA of $9.6 million [14][29] - For the full year 2024, consolidated revenue was $122.3 million, down from $125.1 million in 2023, with total company adjusted EBITDA of $17 million [36][40] - The net loss for Q4 2024 was $13.4 million, or $0.14 per share, compared to a net income of $74.8 million, or $0.75 per share in Q4 2023 [34][36] Business Line Data and Key Metrics Changes - Energy operations generated $17.3 million in revenue for Q4 2024, significantly up from $0.8 million in the same quarter last year [29] - Manufacturing operations, following the acquisition of Deflecto, generated $23.2 million in revenue for Q4 2024 [30] - Industrial operations generated $8.2 million in revenue for Q4 2024, a slight decrease from $8.6 million in the same quarter last year [30] - Intellectual property operations generated $0.1 million in licensing revenue during Q4 2024, down from $82.8 million in the same quarter last year [30][26] Market Data and Key Metrics Changes - The energy vertical reported Benchmark's highest ever revenue this quarter, demonstrating effective operational strategies [19] - The manufacturing operations are expected to improve earnings leverage as market conditions rebound [24] Company Strategy and Development Direction - The company aims to maximize value through disciplined capital allocation and strategic acquisitions, focusing on operational efficiencies and integration of acquired businesses [9][45] - The strategy includes evaluating potential acquisition targets in both private and public markets while maintaining a strong balance sheet [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the stability offered by the company's diversified asset base [47] - The company plans to continue optimizing existing assets and exploring new acquisition opportunities to unlock shareholder value [48] Other Important Information - The company repurchased $20 million of stock at an average price of $4.61 per share, reflecting a strategic use of shareholder capital [16] - Cash, cash equivalents, and equity securities totaled $297 million at year-end 2024, down from $403.2 million at the end of 2023, primarily due to acquisitions and stock repurchases [41][42] Q&A Session Summary Question: Thoughts on the overall economy and tariffs - Management indicated that the company is insulated from tariffs due to its market position and has plans to adjust manufacturing operations if necessary [52][54] Question: Acquisition of more wells and Cherokee play potential - Management confirmed ongoing evaluation of asset packages for acquisition, focusing on operational scalability rather than geographical expansion [61][64] Question: Deflecto's gross margin performance - Management acknowledged that the fourth quarter is seasonally weak but remains committed to achieving the targeted gross margin of 15% [66] Question: Cash levels and acquisition strategy - Management clarified that the increase in cash levels is due to effective cash flow generation from acquired businesses [92] Question: Flexibility in private equity pricing - Management noted that while private equity firms typically seek high prices, there are opportunities for reasonable valuations, especially for businesses that may not fit traditional private equity models [96][97]

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue was $48.8 million, with total company adjusted EBITDA of $4.9 million and operated segment adjusted EBITDA of $9.6 million [14][29] - For the full year 2024, consolidated revenue was $122.3 million, down from $125.1 million in 2023, with total company adjusted EBITDA of $17 million [36][38] - The net loss for Q4 2024 was $13.4 million, or $0.14 per share, compared to a net income of $74.8 million, or $0.75 per share in Q4 2023 [34][36] Business Line Data and Key Metrics Changes - Energy operations generated $17.3 million in revenue for Q4 2024, significantly up from $0.8 million in the same quarter last year [29] - Manufacturing operations, following the acquisition of Deflecto, generated $23.2 million in revenue for Q4 2024 [30] - Industrial operations generated $8.2 million in revenue for Q4 2024, a slight decrease from $8.6 million in the same quarter last year [30] - Intellectual property operations generated $0.1 million in licensing revenue during Q4 2024, down from $82.8 million in the same quarter last year [30][36] Market Data and Key Metrics Changes - The energy vertical reported Benchmark's highest ever revenue this quarter, demonstrating effective operational strategies [19] - The manufacturing operations are expected to improve earnings leverage as market conditions rebound [24] Company Strategy and Development Direction - The company aims to maximize value through disciplined capital allocation and strategic acquisitions, focusing on operational efficiencies and integration synergies [9][45] - The strategy includes evaluating potential acquisition targets in both private and public markets while maintaining a strong balance sheet [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the stability offered by the company's diversified asset base [47] - The company remains optimistic about future growth opportunities, particularly in the energy sector, due to rising demand for electricity and LNG exports [21][47] Other Important Information - The company repurchased $20 million of stock at an average price of $4.61 per share, reflecting a strategic use of shareholder capital [16] - Cash, cash equivalents, and equity securities totaled $297 million at year-end 2024, down from $403.2 million at year-end 2023, primarily due to acquisitions and stock repurchases [41][42] Q&A Session Summary Question: Thoughts on the overall economy and tariffs - Management indicated that the company is insulated from tariffs due to its market position and has plans to adjust manufacturing operations if necessary [52][55] Question: Acquisition of more wells and Cherokee play potential - Management confirmed ongoing efforts to acquire additional asset packages while being disciplined about valuations, and expressed enthusiasm about the Cherokee area as it gains interest from other players [61][64] Question: Deflecto's gross margin performance - Management acknowledged that the fourth quarter is seasonally weak but remains committed to achieving the targeted gross margin of 15% [66] Question: Cash levels and acquisition strategy - Management clarified that the increase in cash levels despite significant expenditures is due to the cash-generating nature of the acquired businesses [92] Question: Flexibility in private equity pricing - Management noted that while private equity firms typically seek high prices, there are opportunities for reasonable valuations, especially for businesses that may not fit traditional private equity models [96][97]

Financial Data and Key Metrics Changes - The consolidated revenue for Q4 2024 was $137.8 million, a decrease of 4% from the previous year's Q4. Adjusted EBITDA was $21.1 million, down 17% [4] - U.S. operations saw a revenue decline of 3% and an EBITDA decrease of 8% [4] - The net debt to EBITDA ratio at the end of Q4 was 5.5 times, and 6.9 times on a lease-adjusted basis [20] Business Line Data and Key Metrics Changes - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, with revenue and EBITDA up 2732% in the four months since opening, exceeding initial expectations [5][6] - The Central Casino Hotel Cape Girardeau reported an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [9] - The East segment, including Mountaineer Casino and Rocky Gap Casino Resort, experienced a revenue decline of 7% and EBITDA down 29% [15] Market Data and Key Metrics Changes - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to an overall revenue decline of 7% [13] - The Nugget Casino Resort in Nevada saw a 10% decline in gaming revenue, impacted by low slot hold, although local credit play increased by 5% [17] Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [23] - There are plans to finalize partnership agreements for sports betting in Missouri, expected to deliver incremental high-margin EBITDA [12] - The company is considering divesting non-U.S. properties, particularly in Poland and Canada, as part of its strategic focus on North American assets [19][74] Management Comments on Operating Environment and Future Outlook - Management noted that the low-end consumer segment remains weak due to macroeconomic factors, impacting overall performance [5][27] - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives [24] - Management expressed caution regarding capital allocation due to ongoing macroeconomic uncertainty, emphasizing the need to refinance or pay down high-rate debt [50] Other Important Information - The company has no significant capital expenditures planned for 2025, expecting to spend only $4 million on growth projects and $14 million on maintenance CapEx [22] - The company has a strong cash position with no debt maturities until 2029, allowing for flexibility in growth initiatives [21] Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the primary driver is the weakness in the low-end consumer segment, which significantly impacts certain properties [27] Question: How is the conference pipeline building for the Nugget? - Management noted that while large conferences are difficult to secure in the short term, they are successfully attracting smaller events and local customers [32] Question: What impact will the Alberta Gaming Commission's suspension of gaming machine purchases have? - Management does not expect a meaningful negative impact, estimating it to be around 0.5% to 1% [35] Question: Can you elaborate on the performance of the Caruthersville property? - Management confirmed that the property has exceeded expectations, particularly in reaching customers from further distances [46] Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, providing licenses and receiving revenue percentages [63] Question: Is there a consideration for insider buying or stock buybacks? - Management expressed interest in buybacks but noted restrictions due to insider laws and blackout periods [83]

Financial Data and Key Metrics Changes - South Bow generated normalized EBITDA of $1.09 billion and distributable cash flow of $608 million in 2024 [13] - The company expects to generate normalized EBITDA of $1.01 billion in 2025, reflecting a range of 3% [15] - The net debt to normalized EBITDA ratio is forecasted to be approximately 4.8% by the end of 2025 [16] Business Line Data and Key Metrics Changes - 90% of normalized EBITDA is secured through committed arrangements, minimizing commodity price or volumetric risk [14] - The marketing segment is expected to see a reduction of approximately $30 million year-over-year due to reduced activity and certain unwinds of positions [99] Market Data and Key Metrics Changes - There is significant demand for uncommitted capacity on Keystone and continued strength in demand for capacity on the U.S. Gulf Coast segment [14] - The company has observed extreme demand in the Gulf Coast for heavy barrels out of Canada, indicating strong supply and demand fundamentals [24] Company Strategy and Development Direction - South Bow aims to leverage existing infrastructure to deliver high returns for shareholders, with a focus on capital allocation priorities and risk management [10] - The company is committed to maintaining a sustainable dividend while strengthening its investment-grade financial position [10][17] - Future growth will be pursued within risk preferences, with a focus on optimizing existing corridors and enhancing contracted strategies [12][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position entering 2025 and the ability to meet near-term deleveraging targets [16] - The ongoing uncertainty around tariffs may create headwinds for uncommitted capacity, but the company believes it can manage risks within its guidance [29] Other Important Information - The company received approval from PHMSA to lift pressure restrictions on a segment of the Keystone system, which is expected to improve operational efficiency [96] - The variable toll complaint process is ongoing, with decisions awaited from both Canadian and U.S. regulatory bodies [78] Q&A Session Summary Question: Discussion on open season and interest levels - Management noted that Western Canadian sedimentary basin has been egress constrained for years, but there is encouragement from both supply and demand fundamentals [22][24] Question: Changes in long-term debt-to-EBITDA target - Management confirmed a focus on deleveraging to reach a target of four times by 2028, emphasizing the importance of maintaining a strong balance sheet [26] Question: Guidance on tariffs and downside risks - Management indicated that 90% of EBITDA is contracted, allowing for stability despite market uncertainties, and they believe they can manage risks within a 3% range [28][29] Question: Future growth opportunities and recapitalized optionality - Management highlighted the importance of leveraging existing infrastructure and optimizing capital investments to support growth [39][40] Question: Marketing strategy and market conditions - Management is shifting towards a more contracted marketing strategy to mitigate volatility and improve shareholder value [71][106] Question: PHMSA approval impact on capacity - Management stated that the approval will enhance operational efficiency but did not provide specific throughput increases at this time [97] Question: Long-term EBITDA growth outlook - Management expressed confidence in achieving a 2% to 3% growth rate, driven by increased delivery points and capturing additional volumes [87][106]