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].

Core Viewpoint - South Bow Corp. reported its second-quarter 2025 financial and operational results, highlighting stable performance despite challenges in the market and ongoing projects related to its spinoff from TC Energy [1]. Financial Performance - Revenue for Q2 2025 was $524 million, with a net income of $96 million, translating to $0.46 per share [8]. - Normalized EBITDA for Q2 2025 was $250 million, a 6% decrease from Q1 2025, primarily due to lower contributions from the Marketing segment [5][8]. - Distributable cash flow reached $167 million in Q2 2025 [5]. - The company maintained total long-term debt of $5.8 billion and net debt of $4.9 billion, with a net debt-to-normalized EBITDA ratio of 4.6 times as of June 30, 2025 [5][8]. Operational Performance - Average throughput on the Keystone Pipeline was approximately 544,000 barrels per day (bbl/d) in Q2 2025, with the U.S. Gulf Coast segment averaging about 760,000 bbl/d [5]. - The company completed construction of a 150,000-barrel crude oil storage tank as part of the Blackrod Connection Project, which is expected to be operational in early 2026 [5]. - South Bow successfully completed cleanup and reclamation of the Milepost 171 incident site, with costs estimated at $58 million, largely recoverable through insurance [5][12]. Returns to Shareholders - The company declared dividends totaling $104 million, or $0.50 per share, during Q2 2025, with the next dividend payment scheduled for October 15, 2025 [5][8]. - South Bow's capital allocation priorities include paying a sustainable base dividend and strengthening its investment-grade financial position [23]. Outlook - The demand for uncommitted capacity on the Keystone Pipeline is expected to remain low in the near term due to excess pipeline egress capacity in the Western Canadian Sedimentary Basin [13]. - South Bow anticipates a modest increase in its net debt-to-normalized EBITDA ratio through 2025, with expectations to begin reducing leverage once the Blackrod Connection Project starts generating cash flow in 2026 [14].

Core Insights - Delek Logistics Partners reported solid GAAP earnings per share of $0.83, exceeding consensus estimates by a penny, while GAAP revenue fell to $246.4 million, missing expectations by $6.9 million [1][2] - Adjusted EBITDA surged to $120.9 million, an 18.1% increase year-over-year, driven by recent acquisitions and facility expansions [1][6] - The company achieved its 50th consecutive quarterly distribution increase, raising the distribution per unit to $1.115, up 2.3% from the previous year [1][7] Financial Performance - Q2 2025 EPS was $0.83, slightly down from $0.87 in Q2 2024, reflecting a 4.6% year-over-year decline [2] - Revenue for Q2 2025 was $246.4 million, down 6.9% from $264.6 million in Q2 2024 [2] - Adjusted EBITDA reached $120.9 million, up from $102.4 million in Q2 2024, marking an 18.1% increase [2][6] - Distributable cash flow, as adjusted, rose to $72.5 million, a 7.0% increase from $67.8 million in Q2 2024 [2][7] Business Operations - Delek Logistics operates as a master limited partnership, focusing on midstream infrastructure for oil, gas, and water producers in the Permian Basin [3] - Recent focus has been on expanding asset footprint in the Delaware and Midland Basins, including investments in new gas processing plants [4] - The completion of the Libby 2 gas processing plant enhances the company's processing capacity, addressing strong regional demand [5] Revenue Sources - Affiliate revenues dropped to $114.1 million from $156.8 million in Q2 2024, indicating a shift towards increasing third-party contributions [8][10] - Third-party revenues rose by 22.7% year-over-year, reaching $132.3 million, highlighting a strategic move to reduce dependence on Delek Holdings [10] Capital Expenditures and Debt - Capital expenditures increased significantly to $119.2 million, primarily for growth projects, compared to $10.2 million in Q2 2024 [11] - Total debt rose to $2.2 billion as of June 30, 2025, with a leverage ratio of approximately 4.32x [12] Future Outlook - The company reaffirmed its FY2025 Adjusted EBITDA guidance at $480 million to $520 million, indicating confidence in operational execution [14] - Management expressed intentions to continue increasing distributions in the future, with a focus on third-party revenue growth and asset integration [15]

Core Insights - MPLX LP reported a net income of $1,048 million for Q2 2025, a decrease from $1,176 million in Q2 2024, and a total net income of $2,174 million for the first half of 2025, slightly down from $2,181 million in the same period of 2024 [1][5][10] Financial Performance - Adjusted EBITDA for Q2 2025 was $1,690 million, up from $1,653 million in Q2 2024, with the Crude Oil and Products Logistics segment contributing $1,138 million and the Natural Gas and NGL Services segment contributing $552 million [2][5][10] - Net cash provided by operating activities was $1,736 million for Q2 2025, with distributable cash flow of $1,420 million and adjusted free cash flow of $1,130 million [3][5][10] - The distribution per common unit for Q2 2025 was $0.9565, resulting in a distribution coverage ratio of 1.5x [3][5][10] Segment Performance - The Crude Oil and Products Logistics segment saw a 4% increase in adjusted EBITDA to $1,138 million, driven by higher rates and throughputs, despite increased operating expenses [7][10] - The Natural Gas and NGL Services segment experienced a slight decrease in adjusted EBITDA to $552 million, attributed to higher operating expenses and project spending [9][10] Strategic Developments - MPLX announced the acquisition of Northwind Midstream for $2.375 billion, aimed at enhancing its Natural Gas and NGL growth strategies in the Permian basin [4][12][10] - The company reported a 5% year-over-year adjusted EBITDA growth in the first half of 2025, supporting its mid-single digit growth strategy [4][10] Financial Position and Liquidity - As of June 30, 2025, MPLX had $1.4 billion in cash and a leverage ratio of 3.1x, indicating stable cash flows [15][10] - The company repurchased $100 million of common units in Q2 2025 and has an additional $320 million remaining under its unit repurchase authorization [16][10]