Core Viewpoint - Hess Midstream LP has revised its financial and operational outlook for the upcoming years due to a slowdown in drilling activity by Chevron in the Bakken region, projecting oil throughput volumes to plateau while gas throughput is expected to grow through 2027 [1][2]. Financial Outlook - The company anticipates Chevron will reduce its rig count in the Bakken from four to three by the fourth quarter of 2025, leading to a plateau in oil throughput volumes in 2026 [2]. - Adjusted EBITDA for 2026 is projected to be flat compared to 2025, with growth expected to resume in 2027 driven by increasing gas volumes and inflation-linked provisions in commercial contracts [3]. - The long-term leverage target remains at three times Adjusted EBITDA, with capital spending reduced due to the removal of the Capa gas plant project from the forward plan [4]. Capital Return Strategy - Hess Midstream aims for targeted annual distribution growth of at least 5% through 2027, with flexibility for potential share repurchases as part of incremental shareholder returns [5]. - Lower capital expenditures combined with EBITDA growth in 2027 are expected to result in higher adjusted free cash flow [4]. Gas Throughput Guidance - For 2025, the company has cut its full-year gas throughput guidance due to adverse weather, scheduled maintenance, and reduced third-party volumes [5]. - Gas gathering volumes are now expected to average between 455 and 465 million cubic feet (MMcf) per day, while gas processing volumes are projected between 440 and 450 MMcf per day, down from earlier expectations [6].

Core Viewpoint - EXEL Industries reported a decline in revenue and recurring EBITDA for the first half of 2024-2025, primarily due to lower volumes in Agricultural Spraying, while maintaining a focus on debt reduction and cash flow optimization [5][13]. Financial Performance - Revenue for the first half of 2024-2025 was €443.4 million, down 10.0% from €492.7 million in the same period of 2023-2024 [5][6]. - Recurring EBITDA decreased to €20.3 million, representing 4.6% of revenue, compared to 6.2% in the previous year [7][5]. - Net income was €1.5 million, a decline from €4.7 million in the first half of 2023-2024 [7][5]. Debt and Cash Flow Management - The Group's net financial debt improved by €38 million, standing at €174.5 million compared to €212.7 million in the previous year, due to efforts in reducing working capital requirements (WCR) and inventory levels [9][5]. - Despite a negative change in WCR of €30 million, the Group's focus on cash flow generation and debt reduction remains a priority [9][13]. Segment Performance - Agricultural Spraying revenue fell by €53.4 million, or 21.5%, reflecting a significant decline in volumes [4][6]. - Other segments, such as Sugar Beet and Industrial Spraying, showed stable or slight growth, with Sugar Beet revenue remaining relatively unchanged [4][6]. Future Outlook - Order intake in Agricultural Spraying is showing limited visibility but signs of recovery in Europe, while market conditions for Sugar Beet Harvesting remain uncertain [12][15]. - The Group plans to continue aligning production capacities and cost structures with business levels in response to lower volumes [15][12]. Investment and Capex - Capital expenditures (Capex) amounted to €15.6 million, including ongoing construction of a new plant in Stains, France [10].

Core Insights - Vallourec reported strong first quarter 2025 results, achieving a Group EBITDA of €207 million with a 21% EBITDA margin, despite a 3% sequential decline [5][8] - The company anticipates a second quarter 2025 Group EBITDA between €170 million and €200 million, with expected improvement in the second half of 2025 compared to the first half [4][5] Financial Performance - Group revenues for Q1 2025 were €991 million, a decrease of €74 million from Q4 2024, but an increase of €1 million year-over-year [8] - Tubes volume sold was 314,000 tonnes, down from 362,000 tonnes in Q4 2024, but up 21% year-over-year [8] - Iron ore volume sold reached 1.6 million tonnes, an increase of 0.26 million tonnes sequentially and 0.2 million tonnes year-over-year [8] - Adjusted free cash flow was €168 million, with total cash generation of €104 million, improving the net cash position to €112 million, up €91 million sequentially [5][8] Market Position and Strategy - The company has focused on premium products and has established strong positions with global national oil companies and resilient independent US producers [7] - International bookings continued to show strong momentum, supporting expectations for improved profitability in the second half of 2025 [6][7] - US market prices have been on an upward trend, although they have not yet fully reflected the impact of recently announced tariffs [6] Future Outlook - The company expects Tubes EBITDA per tonne to remain flat to slightly higher sequentially, with volumes anticipated to be flat to slightly down [5] - In the Mine & Forest segment, production sold is expected to be around 1.5 million tonnes, with profitability dependent on prevailing iron ore market prices [5] - The company is well-positioned to navigate market changes due to substantial operational changes made over the past three years [7][8]

Financial Data and Key Metrics Changes - First quarter revenues decreased by 0.6% year-over-year but grew approximately 1% when adjusted for foreign exchange [28] - Adjusted EBITDA for the quarter was $39.3 million, representing 11.1% of sales, down from 12.2% in the same quarter last year [28] - Adjusted diluted earnings per share decreased to $0.51 from $0.62 year-over-year [29] Business Line Data and Key Metrics Changes - Automotive Climate and Comfort Solutions revenue increased by 3.8% year-over-year or 5.3% when excluding foreign exchange effects, driven by strong growth in lumbar and massage comfort solutions [28] - Medical segment revenues increased by 6% year-over-year when adjusted for foreign exchange, primarily due to growth in Europe [28] Market Data and Key Metrics Changes - The outlook for 2025 annual volumes has declined by 2% compared to previous reports, with a notable 10% decline expected in North America, which constitutes about 40% of the company's business [9][33] - The company is closely monitoring dealer inventory levels and customer demand schedules to adapt to market changes [9] Company Strategy and Development Direction - The company is focused on expanding revenue while increasing margins and cash flow, with a strategic emphasis on scaling four core technology platforms: thermal management, air moving devices, pneumatic solutions, and valve systems [12][36] - The company is actively pursuing opportunities in adjacent markets, particularly in the medical sector, leveraging existing technologies without significant incremental investments [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased economic uncertainty due to tariffs but expressed confidence in the company's ability to mitigate impacts and maintain a strong balance sheet [6][10] - The company is committed to driving profitable growth and operational excellence, with plans to optimize production across regions [18][20] Other Important Information - The company received $400 million in new automotive business awards during the quarter, including significant wins with Japanese OEMs and Volvo [24][25] - The company was recognized as General Motors Supplier of the Year for the third time, highlighting strong relationships and innovative technology [27] Q&A Session Summary Question: How much pass-through revenue is incorporated in the guidance? - Management indicated that the impact of tariffs is relatively limited, with only a small portion of the overall business affected, primarily in Mexico and North America [42] Question: Why is the approach to adjacent markets different this time? - Management clarified that the focus is on scaling existing technologies into adjacent markets rather than developing new products, emphasizing the use of current capital equipment [45] Question: What are the booking dynamics in Q1? - Management stated that the first quarter's new program awards were in line with expectations, despite appearing lower than previous quarters [50] Question: How is the company maintaining its sales guidance despite weaker industry forecasts? - Management explained that while North American volumes are under pressure, favorable foreign exchange impacts and tariff pass-throughs are helping to maintain guidance [51]

Financial Data and Key Metrics Changes - In Q4 2024, the company generated net investment income (NII) of $2.1 million or $0.20 per share, down from $4.1 million or $0.39 per share in Q3 2024, primarily due to uneven cash flows from CLOs [23][24] - The net asset value (NAV) per share decreased to $11.79 as of December 31, 2024, from $12.04 as of September 30, 2024, while total net assets increased to $136 million from $126 million [25][26] - The asset coverage ratio improved to 169.7% from 166.2% in the previous quarter, with total debt outstanding at approximately $195 million [26] Business Line Data and Key Metrics Changes - The corporate portfolio grew by 34% in 2024, reaching $240 million, with first lien loans comprising 71% of the portfolio at year-end, up from 67% [29] - The CLO joint venture (JV) has deployed approximately $40 million through December 31, 2024, and is expected to become a significant income source for the company [30][31] Market Data and Key Metrics Changes - The company experienced a total return on stock of nearly 80% over the past two years, outperforming the Cliffwater and S&P BDC indices, with a cumulative return on NAV per share exceeding 30% [14] Company Strategy and Development Direction - The company aims to enhance portfolio quality by increasing secured debt positions and focusing on cash-generating assets, with a target return of high teens to 20% from the CLO JV [28][29] - The strategy includes a measured approach to capital deployment, prioritizing credit quality and seeking investments with minimal risk of permanent capital loss [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in covering the increased dividend in Q1 2025 and anticipates that NII will improve in subsequent quarters, setting the stage for growth in 2025 [20][55] - The company is optimistic about its ability to generate sustainable returns and deliver increasing value to shareholders in 2025 and beyond [21][41] Other Important Information - The Board of Directors authorized a cash distribution of $0.37 per share for Q1 2025, representing a 5.7% increase from the previous quarter [27] - The company has a $25 million undrawn revolver available to meet remaining commitments for the CLO JV [48] Q&A Session Summary Question: Has the CLO JV been fully funded? - The JV is not fully funded, with some uncommitted capital still to be drawn as of December 31 [45] Question: How will the company raise capital to finish funding the JV? - The company has $8 million in cash and equivalents and a $25 million unfunded revolver available to meet the remaining commitment [47][48] Question: Why is the JV only investing in Apex CLOs? - The current investment mix is focused on Apex due to strategic partnerships, but diversification may occur over time [50] Question: How does spread compression impact CLO cash flows? - Despite spread compression, the company expects high teens to 20% IRRs from CLO cash flow generation [52] Question: What is the outlook for the Maverick Gaming position? - The company evaluates the position quarterly and monitors the situation closely, but specific details cannot be disclosed [56][59] Question: What is the target size or contribution of the CLO JV to total results? - The company targets CLO exposure to grow to around 20% of its asset base over time [62] Question: What is the outlook for the corporate portfolio pipeline? - The company sees a stable pipeline with some opportunities in the secondary market, but immediate repayments are not expected [70]