Core Insights - The company has successfully acquired the remaining 45% operating interest in EPIC Crude Holdings for approximately $1.3 billion, including $500 million of debt, and has agreed to a potential earn-out payment of up to $157 million tied to future expansions [1][5] - The acquisition is expected to generate a mid-teens unlevered return and improve the company's cash flow stability by focusing more on crude operations [5][6] - The company reported a third-quarter adjusted EBITDA of $669 million, with crude oil segment adjusted EBITDA of $593 million benefiting from higher volumes and contributions from recent acquisitions [4][8] Acquisition Details - The acquisition of EPIC Crude Pipeline allows the company to operate 100% of the entity, enhancing control and synergy capture [2][5] - The company anticipates a 2026 adjusted EBITDA multiple of approximately 10x, with expectations for improvement over the coming years [5][6] - The acquisition is part of a broader strategy to optimize the company's asset base and reduce leverage while maintaining capital discipline [3][7] Financial Performance - The company has narrowed its full-year 2025 adjusted EBITDA guidance range to $2.84 to $2.89 billion, reflecting lower realized crude prices and contributions from the EPIC acquisition [9] - Capital spending for the year is expected to be approximately $490 million, with maintenance capital trending closer to $215 million [9] - The company issued $1.25 billion of senior unsecured notes to repay maturing senior notes and partially fund the EPIC acquisition [10] Strategic Focus - The company aims to enhance its crude-focused portfolio, with a more stable cash flow stream following the divestiture of its NGL business, expected to close by 2026 [3][6] - The management emphasizes the importance of crude oil in the global energy landscape and plans to leverage synergies from the EPIC acquisition to drive growth [11][12] - The company is confident in its ability to navigate market dynamics and expects improving fundamentals in the long term due to global energy demand growth [12][41] Market Outlook - The company remains bullish on North American oil growth, particularly in the Permian and Canadian regions, despite near-term market volatility [33][35] - There are expectations for continued demand for crude oil, driven by underinvestment in organic supply growth and diminishing OPEC spare capacity [12][35] - The management is exploring opportunities for additional Canadian crude egress to enhance market access [59][60]