Financial Data and Key Metrics Changes - The company generated net income attributable to limited partners of $332 million and adjusted EBITDA of $634 million during Q3 2025, with adjusted gross margin remaining relatively flat compared to the previous quarter [16][19] - Operating and maintenance expenses decreased by 5%, or $12 million, quarter over quarter, attributed to reduced asset maintenance and repair expenses [16][18] - Cash flow from operating activities totaled $570 million, generating free cash flow of $397 million [18] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 2% sequentially, driven by higher volumes from the Chepeta plant in Utah and the DJ Basin [6][10] - Crude oil and NGLs throughput decreased by 4% sequentially, primarily due to reduced throughput in the Delaware Basin [8][10] - Produced water throughput remained flat sequentially, with expectations for a 40% year-over-year increase in Q4 2025 due to the Aris acquisition [10][12] Market Data and Key Metrics Changes - The Delaware Basin achieved record natural gas throughput, while the DJ Basin showed strong sequential growth [3][6] - The Powder River Basin experienced decreased throughput due to previously unloaded volumes subsiding [7][12] - The company expects low double-digit year-over-year throughput growth for natural gas in the Delaware Basin and low to mid-single digits for crude oil and NGLs [10][12] Company Strategy and Development Direction - The acquisition of Aris Water Solutions positions the company as a leader in produced water midstream solutions in the Delaware Basin, enhancing commercial capabilities [4][22] - The company aims to capture $40 million in annual run rate synergies from the Aris acquisition and is focused on organic growth alongside potential inorganic opportunities [4][14][67] - The company plans to maintain a disciplined capital allocation framework while pursuing growth opportunities in both Texas and New Mexico [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to address produced water challenges in the Delaware Basin and highlighted the importance of regulatory engagement [4][22] - The company anticipates continued throughput growth in 2026, particularly in the Delaware Basin, despite potential declines in the Powder River Basin due to commodity price weakness [14][57] - Management emphasized the successful execution of cost reduction initiatives, which are expected to continue benefiting the company in 2026 [17][58] Other Important Information - The company expects capital expenditures to be at least $1.1 billion in 2026, with budgeting processes already underway [20] - The company declared a quarterly distribution of $0.91 per unit, consistent with the prior quarter [18] Q&A Session Summary Question: Discussion on O&M expense sustainability - Management indicated that the reduction in O&M expenses is sustainable and that further improvements are expected [28][29][33] Question: Potential for distribution step-ups with major projects - Management confirmed that distribution step-ups are possible with the completion of major projects or acquisitions, while maintaining a cautious approach to yield management [34][36] Question: Update on the Pathfinder project and pore space agreement - Management noted that the pore space agreement enhances project efficiency and allows for better growth potential in New Mexico [40][41][42] Question: Plans for expanding gas and oil infrastructure in New Mexico - Management stated that both organic and inorganic growth strategies will be pursued to expand infrastructure in New Mexico [44][46] Question: Outlook for 2026 and potential portfolio gaps - Management expects overall product growth across all three product lines in 2026, with a focus on leveraging the Aris acquisition for growth [55][57]