Financial Data and Key Metrics Changes - In Q4, mineral and royalty production was 30,900 BOE per day, a decrease of 11% from the prior quarter [11] - Total production for the quarter was 32,100 BOE per day, completing the year at the high end of updated guidance [11] - Net income for Q4 was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05x coverage for the period [13] Business Line Data and Key Metrics Changes - The company signed development agreements with Revenant Energy and Katouris Energy, placing approximately 500,000 gross acres into development [4] - Minimum drilling commitments ramp up to 37 gross wells per year by 2031, with a total of 50 gross wells expected over the same period [4][5] - Aethon brought several new wells online in the Shelby Trough, producing about 25 MMcf-30 MMcf a day, with additional wells expected in Q1 [4] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by significant assets near Gulf Coast LNG facilities [14] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders through strategic acquisitions and development agreements [6][9] - A new opportunity is being built in the Haynesville expansion area, expected to add significant inventory and scale [5] - The company is strategically increasing G&A in 2026 to support increased activity levels [9] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as a turning point with new and increased development in the Shelby Trough and Haynesville expansion areas [11] - The company remains confident in its ability to fund distributions and grow throughout the year based on minimum commitments and ongoing activity [32][33] - Management is optimistic about long-term growth due to substantial industry-leading inventory and advantageous proximity to key demand centers [9] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which is expected to enhance subsurface evaluation and accelerate development [12] - The proprietary nature of these surveys may provide opportunities to license the data to the industry, potentially generating additional revenue [12][37] Q&A Session Summary Question: Guidance for production levels throughout 2026 - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026 due to new development agreements and high-interest projects [20][21] Question: Pipeline of potential new development agreements - Management welcomes both existing and new partners for development agreements and is focused on diversifying new developments [23] Question: Activity in the Permian and its priority - Management is excited about high-interest activity in the Permian and anticipates increased leasing and activity throughout 2026 and 2027 [28][29] Question: Funding the distribution through cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong hedges in place for natural gas [32][33] Question: Seismic expenses and their impact on adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to two specific shoots to be completed in early 2027 [35][36]

In addition to these developments, we are building another new opportunity in our Haynesville expansion area that we believe will add significant inventory and scale to the current development. Based on existing subsurface analysis, we believe we can continue to expand the Shelby Trough Haynesville Basin towards the Western Haynesville. With our continued focus on increasing production from existing assets and driving long-term value for our unitholders, we have also entered into a LOI with a reputable oper ...

Financial Data and Key Metrics Changes - In Q4 2025, mineral and royalty production was 30.9 thousand BOE per day, a decrease of 11% from the prior quarter, while total production for the quarter was 32.1 thousand BOE per day [11] - Net income for the fourth quarter was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05 times coverage for the period [13] Business Line Data and Key Metrics Changes - The company signed development agreements with Revenant Energy and Caturus Energy, placing approximately 500,000 gross acres into development, with commitments ramping up to 37 gross wells per year by 2031 [4] - Aethon brought several new wells online in the Shelby Trough at about 25-30 MMcf a day, with additional wells expected in Q1 2026 [4][5] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by significant assets near Gulf Coast LNG facilities [14] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders through strategic acquisitions and development agreements [6][9] - A new opportunity is being built in the Haynesville expansion area, expected to add significant inventory and scale to current developments [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth for unitholders, citing substantial industry-leading inventory and advantageous proximity to key demand centers [9] - The company expects 2026 to be a turning point with new and increased development in the Shelby Trough and Haynesville expansion areas [11] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which are expected to enhance subsurface evaluation and accelerate development [12] - The company has updated the presentation of adjusted EBITDA and distributable cash flow to exclude seismic acquisition costs [13] Q&A Session Summary Question: Guidance for the year and production cadence - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026 due to new development agreements and high-interest projects [19][20] Question: Pipeline of potential new development agreements - Management stated they welcome both existing and new partners for development agreements, emphasizing diversification in their approach [22][23] Question: Activity in the Permian and leasing outside Coterra - Management highlighted excitement about high-interest developments in the Permian, with increased activity expected in 2026 and 2027 [29][30] Question: Funding the distribution through distributable cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong hedges in place for natural gas [32][34] Question: Seismic expenses and adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to the seismic shoots completed by early 2027 [36][38]