Financial Data and Key Metrics Changes - The company reported approximately $120 million in quarterly adjusted EBITDA, an increase from $102 million in the same period of 2024, indicating a year-over-year growth of approximately 17.6% [12] - Distributable cash flow as adjusted was $73 million, with a DCF coverage ratio of approximately 1.22 times, expected to rise as growth projects contribute to results [13] - The full-year EBITDA guidance remains between $480 million to $520 million [12][15] Business Line Data and Key Metrics Changes - For the Gathering and Processing segment, adjusted EBITDA was $78 million compared to $55 million in 2024, primarily due to acquisitions [13] - Wholesale Marketing and Terminalling adjusted EBITDA decreased to $23 million from $30 million in the prior year, attributed to last summer's agreements [13] - Storage and transportation adjusted EBITDA remained stable at $17 million, while investments in pipeline joint ventures contributed $11 million, up from $8 million in 2024 [13] Market Data and Key Metrics Changes - The company is focused on enhancing its competitive position in both Midland and Delaware Basins through water acquisitions and increased dedication [5] - The integration of two water gathering systems is progressing well, expected to enhance crude and water offerings in specific counties [11] Company Strategy and Development Direction - The company aims to strengthen its position as a premier full-service provider in the Permian Basin, with ongoing efforts in acid gas injection and sour gas handling capabilities [4][5] - The successful commissioning of the new Libbey plant is expected to fill to capacity in 2025, contributing to future growth [4][8] - The company intends to remain prudent in managing leverage and coverage while rewarding stakeholders through leading distributions, with a recent increase to $1.115 per unit [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the EBITDA guidance despite commodity price volatility, citing strong relationships with producers and low breakeven costs in the area [36][38] - The company is optimistic about the uptick in crude volumes for Q3, indicating a strong start to the second half of the year [37] Other Important Information - The capital expenditures for the second quarter were approximately $119 million, with $115 million allocated to growth projects, including the completion of the Libbey II gas processing plant [15] - The company has increased its liquidity by $700 million through a high-yield notes offering, bringing total availability to over $1 billion [12] Q&A Session Summary Question: Trends in processing plant volumes and potential expansions - Management confirmed that the commissioning of the plant was completed on time and is currently flowing gas, expecting to reach full capacity by year-end [20][21] Question: Competitive environment for sour gas treating capacity - Management acknowledged the recent asset transactions in the Delaware Basin and emphasized their comprehensive strategy around natural gas, which includes gathering, treating, and processing [24][26] Question: M&A opportunities and market outlook - Management stated that any M&A activity would need to be free cash flow accretive and align with their strategy, while also being open to both acquisition and divestiture opportunities [32][34] Question: Producer plans and guidance outlook - Management reiterated confidence in their guidance, citing strong relationships with producers and favorable conditions in the Permian Basin [36][38]