Group 1: Investment Opportunities - The average energy stock yields around 3.6%, while Enbridge and Enterprise Products Partners yield 6% and 6.8% respectively, presenting a strong opportunity for income-focused investors [1] - Enbridge has a three-decade streak of annual dividend increases, while Enterprise has a 26-year streak of distribution hikes, indicating reliability in income generation [7] - The income generated by Enbridge and Enterprise is likely to constitute the majority of total returns for investors, with expectations of slow and steady growth in income streams due to regular fee increases and capital investments [8] Group 2: Industry Dynamics - The energy sector is characterized by volatility, particularly in the upstream and downstream segments, which are influenced by rapid price changes in oil and natural gas [3][4] - The midstream segment, which includes companies like Enbridge and Enterprise, connects upstream and downstream operations and charges fees for transportation and storage, leading to more consistent revenue streams [5] - Midstream companies are essential for energy distribution, and their financial performance is more closely tied to demand rather than fluctuating commodity prices [5] Group 3: Company Strengths - Enbridge and Enterprise are recognized as midstream giants, maintaining strong financial positions with credit ratings of BBB+ and A- respectively, providing them with the financial flexibility to support their dividends [7] - The relatively stable nature of midstream businesses makes them less exciting but more reliable compared to oil producers, making them suitable for dividend-focused investors [9] - The size, financial strength, and consistent rewards to income investors position Enbridge and Enterprise as attractive options for those looking to add energy stocks to their portfolios [9]

Core Viewpoint - The past year has been favorable for investors in midstream companies, with many experiencing double-digit growth year over year, including DT Midstream (NYSE: DTM) which has significantly outperformed small-cap midstream peers [1] Group 1: Company Performance - DT Midstream has shown strong performance, aligning with the positive trend in the midstream sector [1] Group 2: Industry Insights - The midstream sector has generally benefited from favorable market conditions, leading to substantial gains for investors [1]

Core Points - Brookfield Infrastructure Partners L.P. announced the issuance of $250 million in Fixed-to-Fixed Reset Rate Subordinated Notes due September 1, 2055, with an initial interest rate of 5.598% until September 1, 2030, and subsequent resets every five years [1][2] - The net proceeds from the offering will be used for general corporate purposes, including repayment of outstanding debt [1] - The Notes will be issued by Brookfield Infrastructure Finance ULC, a wholly-owned subsidiary, and are guaranteed on a subordinated basis by Brookfield Infrastructure and certain subsidiaries [2][3] Company Overview - Brookfield Infrastructure is a leading global infrastructure company that operates high-quality, long-life assets in utilities, transport, midstream, and data sectors across the Americas, Asia Pacific, and Europe [7] - The company focuses on assets with contracted and regulated revenues that generate predictable and stable cash flows [7] - Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, which manages over $1 trillion in assets [8]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated net income attributable to limited partners of $300 million and adjusted EBITDA of $594 million, with a decrease in adjusted gross margin by $8 million compared to Q4 2024 [16][18] - The company maintained a trailing twelve-month net leverage ratio of just below three times at quarter end, with liquidity of approximately $2.4 billion [6][17] Business Line Data and Key Metrics Changes - Natural gas throughput decreased by 2% sequentially, primarily due to lower volumes from the DJ Basin and Powder River Basin, while crude oil and NGL throughput decreased by 6% [9][10] - The adjusted gross margin for natural gas assets increased by $0.05 per 1,000 cubic feet, driven by higher excess natural gas liquids volumes and pricing [10][11] Market Data and Key Metrics Changes - The company expects mid-single-digit percentage growth in year-over-year throughput for natural gas and produced water, and low-single-digit growth for crude oil and NGLs [12][14] - Delaware Basin is anticipated to continue being the main engine of throughput growth in 2025, with modest growth expected across all product lines [12][14] Company Strategy and Development Direction - The company emphasizes prudent capital allocation and maintaining a strong balance sheet, with net leverage at or below 3x, allowing for growth while increasing distributions [19][20] - The company is focused on organic growth projects backed by minimum volume commitments, which provide stability during commodity price fluctuations [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that recent market volatility has not changed their strategy, and they remain prepared to adjust plans based on customer activity and market conditions [6][19] - The company is closely monitoring customer capital discipline and operational efficiency in light of recent commodity price weakness [12][44] Other Important Information - The company declared a quarterly distribution of $0.91 per unit, representing a 4% increase over the prior quarter [17] - Bob Phillips, former CEO of Crestwood Equity Partners, has joined the board as an independent director, bringing significant midstream expertise [21][22] Q&A Session Summary Question: How will capital allocation change in a slower growth environment? - Management stated that their strategy remains unchanged, and they are prepared to take advantage of potential acquisitions if organic growth opportunities slow [24][25] Question: What is the guidance for the rest of the year? - Management expects volumes to pick up, driven by West Texas and Uinta, with no material changes to the outlook [26][27] Question: Any updates on the PATHFINDER project? - Management reported positive discussions with customers and midstream players, seeking minimum volume commitments for the pipeline [32][33] Question: How recent are conversations with producer customers regarding CapEx cuts? - Management indicated that conversations are ongoing and real-time, with no significant changes in guidance despite some producers announcing CapEx cuts [42][44] Question: How would CapEx look in a flat Permian production environment? - Management suggested that CapEx would likely be at the low end of the current guidance range if flat production occurs [66][68]

Financial Data and Key Metrics Changes - The company reported net income attributable to limited partners of $302 million and adjusted EBITDA of $594 million for Q1 2025 [15] - Adjusted gross margin decreased by $8 million compared to the previous quarter, primarily due to decreased throughput and the absence of favorable revenue recognition adjustments from the previous quarter [15][16] - Free cash flow for the first quarter was $399 million, with cash flow from operating activities totaling $531 million [17] Business Line Data and Key Metrics Changes - Natural gas throughput decreased by 2% sequentially, primarily due to lower volumes from the DJ Basin and Powder River Basin, partially offset by growth in South Texas and Utah [9] - Crude oil and NGL throughput decreased by 6% sequentially, with operated crude oil and NGLs throughput down by 3% [10] - Produced water throughput also decreased by 2% sequentially due to timing of wells coming online and increased recycling activity [10] Market Data and Key Metrics Changes - The Delaware Basin is expected to continue being the main engine of throughput growth in 2025, with modest year-over-year throughput increases anticipated for all product lines [12] - The company expects average year-over-year throughput growth of mid-single digits for natural gas and produced water, and low-single digits for crude oil and NGLs [12] Company Strategy and Development Direction - The company has completed the commissioning of the North Loving plant, increasing natural gas processing capacity by approximately 13% [5] - The company emphasizes prudent capital allocation and plans to maintain a strong balance sheet with net leverage at or below 3x, allowing for growth while increasing distributions [20] - The company is focused on organic growth projects backed by minimum volume commitments to ensure stability during commodity price fluctuations [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent market volatility has not changed their strategy or priorities, and they remain optimistic about potential acquisition opportunities [24] - The company is closely monitoring customer activity and capital discipline in light of recent commodity price weakness, but has not adjusted its guidance [26][44] - Management expressed confidence in their ability to navigate various business environments due to a strong contract portfolio and engaged workforce [70] Other Important Information - The company declared a quarterly distribution of $0.91 per unit, representing a 4% increase over the prior quarter [17] - Bob Phillips, former CEO of Crestwood Equity Partners, has joined the board as an independent director, bringing significant midstream expertise [20] Q&A Session Summary Question: How will capital allocation change in a slower growth environment? - Management stated that their strategy remains unchanged, and they are prepared to take advantage of acquisition opportunities if organic growth slows [24] Question: What is the guidance for the second half of the year? - Management confirmed that they expect volumes to pick up, driven by West Texas and Uinta, with no material changes to their outlook [26] Question: Any updates on the PATHFINDER project contracts? - Management reported positive conversations with customers and midstream providers, seeking minimum volume commitments for the pipeline [32] Question: How recent are conversations with producer customers regarding CapEx cuts? - Management indicated that discussions are ongoing and real-time, with no significant changes in guidance despite some producers announcing CapEx cuts [41][44] Question: How will CapEx look if Permian production is flat? - Management suggested that CapEx would likely be at the low end of guidance if production remains flat, as they can adjust spending based on producer activity [66] Question: What are the priorities for return of capital and buybacks? - Management emphasized that capital allocation focuses on sustaining or growing distributions, with buybacks considered if returns on equity exceed growth opportunities [52]

Financial Data and Key Metrics Changes - Delek reported a net loss of $173 million or negative $2.78 per share for Q1 2025, with an adjusted net loss of $144 million or negative $2.32 per share and adjusted EBITDA of $26.5 million [19][20] - The increase in adjusted EBITDA was driven by a $42.2 million increase in refining due to a higher margin environment and sequentially higher throughputs [19] - Logistics segment delivered $117 million in adjusted EBITDA, a $9 million increase over the previous record [20] Business Line Data and Key Metrics Changes - Total throughput in Tyler was approximately 69,000 barrels per day with a production margin of $7.82 per barrel [13] - El Dorado's total throughput was approximately 76,000 barrels per day with a production margin of $3.83 per barrel [14] - Big Spring's throughput was approximately 59,000 barrels per day with a production margin of $4.86 per barrel [15] - Cross Springs achieved a record throughput of approximately 85,000 barrels per day with a production margin of $6.4 per barrel [16] Market Data and Key Metrics Changes - The refining margin environment was around $4 below mid-cycle, impacting overall performance [4] - Supply and marketing contributed a loss of $23.7 million, driven by seasonal low demand trends in wholesale marketing and asphalt [17] Company Strategy and Development Direction - The company is focused on a sum of the parts strategy and midstream deconsolidation, aiming to increase third-party cash flow at DKL to around 80% [7][8] - The Enterprise Optimization Plan (EOP) aims to improve cash flow by $120 million annually starting in the second half of 2025 [9] - The company is committed to a disciplined approach to capital allocation, including share buybacks and dividends [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the potential for a cleaner runway into the summer driving season [6] - The company remains optimistic about the prospects for 2025 and beyond, particularly in light of the support for domestic energy production [11] Other Important Information - The company paid $16 million in dividends and repurchased $32 million of its shares during the quarter [9] - The company expects operating expenses for Q2 2025 to be between $215 million and $225 million, reflecting higher throughput [22] Q&A Session Summary Question: Discussion on DKL and full year EBITDA guidance - Management reiterated guidance for DKL, highlighting strong positions in both Midland and Delaware areas, with expectations for high volumes [28] Question: Capital returns strategy and sustainability of dividend yield - Management emphasized a focus on free cash flow and a balanced approach between buybacks and dividends, indicating confidence in share price value [31][35] Question: Supply and marketing improvements in Q2 - Management noted strong demand and positive trends in RAC, with expectations for further improvements in wholesale marketing and asphalt categories [40][41] Question: Dynamics in the Southwest market - Management reported strong cracks in the Southwest, particularly in Arizona markets, countering concerns about sluggish starts [44] Question: Small refinery exemptions (SREs) - Management confirmed that SREs would be pursued retroactively from 2019, with optimism about receiving support from the EPA [49][52] Question: Opportunities for upside beyond EOP targets - Management acknowledged potential for upside beyond the $120 million target, with ongoing focus on operational improvements [57] Question: Intercompany transactions and their impact - Management clarified that recent intercompany transactions are aimed at optimizing asset allocation and enhancing deconsolidation efforts [71][72] Question: Operational expenditure guidance - Management explained that increased OpEx guidance is primarily due to the addition of a new natural gas plant, with expectations for further improvements in the second half of the year [92][93]

Financial Data and Key Metrics Changes - The company reported a first quarter net loss of $0.24 per share and returned over $1,300,000,000 to shareholders through dividends and repurchases [18][19] - Adjusted EBITDA for the quarter was approximately $2,000,000,000, lower sequentially by $145,000,000 due to decreased results in refining and marketing and renewable diesel segments [19][21] - Operating cash flow excluding changes in working capital was $1,000,000,000 for the quarter, driven by the strength and growth of the midstream business [23] Business Line Data and Key Metrics Changes - Refining utilization was 89%, processing 2,600,000 barrels of crude per day, with significant planned turnaround activity particularly in the Gulf Coast region [5][19] - The Midstream segment adjusted EBITDA grew 8% year over year, with MPC receiving $619,000,000 in distributions from MPLX, a 12.5% increase compared to the previous year [6][20] - The renewable diesel segment faced challenges with a 70% utilization rate due to unplanned downtime, and changes in regulatory credits reduced margins across the industry [21][22] Market Data and Key Metrics Changes - Refined product inventories have drawn for the ninth straight week and are below the five-year average, which, along with lower retail prices, is expected to support demand during the summer driving season [7][8] - The company anticipates around 800,000 barrels per day coming offline across several refineries in the U.S. and Europe this year, which could strengthen margins [8][10] Company Strategy and Development Direction - The company is progressing a $1,250,000,000 standalone capital plan for 2025, with 70% targeted on high return projects [13] - Investments in the West Coast value chain are aimed at enhancing competitiveness and compliance with tighter emission regulations [9][10] - The company aims to leverage its fully integrated refining system and geographic diversification to deliver peer-leading cash generation [14] Management's Comments on Operating Environment and Future Outlook - Management noted improved refined cracks and strong demand signals, with expectations of 94% utilization in the second quarter [33][34] - The company remains optimistic about demand growth across its domestic and export businesses, with steady year-over-year demand for gasoline and growth in diesel and jet fuel [35][36] - Management emphasized the importance of operational excellence and commercial execution to deliver sustainable financial performance [28][29] Other Important Information - The company is focused on optimizing its portfolio to deliver outperformance and is committed to capital allocation that enhances competitiveness [29] - The company has a minimum cash target of $1,000,000,000 on the balance sheet to ensure sufficient liquidity [63][64] Q&A Session Summary Question: What is the current demand perspective as the company enters the second quarter? - Management observed improved refined cracks and strong demand signals, indicating readiness to meet seasonal demand [33][34] Question: How does the company view the long-term outlook for the West Coast? - Management believes investments in the LA asset provide a competitive advantage, and they are closely monitoring the regulatory environment [39][41] Question: What is the company's strategy regarding capture rates? - Management highlighted the importance of commercial performance and aims for capture rates approaching 100% through sustainable advantages [52][56] Question: What is the outlook for crude quality discounts? - The company expects to benefit from heavy crude runs and sees upside in Canadian crude pricing due to OPEC's increased volumes [71][72] Question: How sustainable is the 12.5% distribution growth from MPLX? - Management indicated that the 12.5% distribution increase is expected to be durable for multiple years, supported by growth opportunities and capital discipline [75][78] Question: What initiatives are being taken to improve the renewable diesel business? - Management is focused on optimizing operations and addressing unplanned downtime to enhance profitability [90][92]

Financial Data and Key Metrics Changes - The company reported a first quarter net loss of $0.24 per share and returned over $1,300,000,000 to shareholders through dividends and repurchases [18][25] - Adjusted EBITDA for the quarter was approximately $2,000,000,000, lower sequentially by $145,000,000 due to decreased results in refining and marketing and renewable diesel segments [19][20] - Operating cash flow excluding changes in working capital was $1,000,000,000 for the quarter, driven by the strength and growth of the midstream business [23] Business Line Data and Key Metrics Changes - Refining utilization was at 89%, processing 2,600,000 barrels of crude per day, with significant planned turnaround activity particularly in the Gulf Coast region [5][19] - The Midstream segment adjusted EBITDA grew 8% year over year, with distributions from MPLX increasing by 12.5% compared to the previous year [6][21] - The renewable diesel segment faced challenges with a 70% utilization rate due to unplanned downtime and changes in regulatory credits impacting margins [21][22] Market Data and Key Metrics Changes - Refined product inventories have drawn for the ninth straight week and are below the five-year average, which is expected to support demand as the summer driving season approaches [7][8] - The company anticipates around 800,000 barrels per day of refinery closures in the U.S. and Europe this year, which could strengthen margins [8][10] - The Gulf Coast refinery completed its closure in the first quarter, with additional closures expected in California over the next twelve months [8][10] Company Strategy and Development Direction - The company is progressing a $1,250,000,000 standalone capital plan for 2025, with 70% targeted on high return projects [13] - Investments are being made in the West Coast value chain, particularly in the Los Angeles refinery, to improve reliability and energy efficiency while complying with emission regulations [9][10] - The company aims to leverage its fully integrated refining system and geographic diversification to deliver peer-leading cash generation [14][28] Management's Comments on Operating Environment and Future Outlook - Management noted improved refined cracks and strong demand signals, indicating readiness to meet seasonal demand in the second quarter [34][36] - The company remains optimistic about demand growth across its domestic and export businesses, with steady year-over-year demand for gasoline and growth in diesel and jet fuel [36][38] - Management expressed confidence in the long-term competitive advantage of the U.S. refining industry due to accessibility to nearby crude and low-cost natural gas [11][12] Other Important Information - The company is focused on optimizing its portfolio to deliver outperformance and enhance competitiveness through capital allocation [29] - The company has a minimum target of about $1,000,000,000 of cash on the balance sheet to ensure sufficient liquidity [25][64] - The company is committed to maintaining an investment-grade credit profile while managing its balance sheet effectively [25][66] Q&A Session Summary Question: Demand perspective and economic slowdown - Management observed improved refined cracks and strong demand signals, indicating readiness to meet seasonal demand [34][36] Question: West Coast multiyear outlook - Management highlighted investments in the LA asset and its competitive advantages, while monitoring the regulatory environment closely [40][42] Question: Capture rates and commercial performance - Management emphasized the importance of commercial performance and sustainable advantages built over the years, aiming for capture rates approaching 100% [54][56] Question: Crude quality discounts and OPEC volumes - Management expressed optimism about benefiting from heavy crude runs and potential discounts from OPEC's increased volumes [72][74] Question: Midstream distribution growth sustainability - Management indicated that the 12.5% distribution increase is expected to be durable for multiple years, supported by growth opportunities in MPLX [78][81] Question: Renewable diesel business profitability - Management is focused on operational improvements and regulatory engagement to enhance profitability in the renewable diesel segment [91][96]

Financial Data and Key Metrics Changes - The company reported a first quarter net loss of $0.24 per share, with adjusted EBITDA approximately $2,000,000,000, which decreased sequentially by $145,000,000 due to lower results in refining and marketing and renewable diesel segments [18][19] - The company returned over $1,300,000,000 to shareholders through dividends and repurchases during the quarter [18] - Operating cash flow excluding changes in working capital was $1,000,000,000 for the quarter, driven by the strength and growth of the midstream business [23] Business Line Data and Key Metrics Changes - Refining utilization was at 89%, processing 2,600,000 barrels of crude per day, with significant planned turnaround activity particularly in the Gulf Coast region [4][19] - The Midstream segment adjusted EBITDA grew 8% year over year, with $619,000,000 received from MPLX, a 12.5% increase compared to the previous year [20][21] - The renewable diesel segment faced challenges with a 70% utilization rate due to unplanned downtime, but actions are being taken to optimize production [21][22] Market Data and Key Metrics Changes - Refined product inventories have drawn for the ninth straight week and are below the five-year average, which, along with lower retail prices, is expected to support demand during the summer driving season [6][7] - The company anticipates around 800,000 barrels per day coming offline across several refineries in the U.S. and Europe this year, which could strengthen margins [7][10] Company Strategy and Development Direction - The company is progressing a $1,250,000,000 standalone capital plan for 2025, with 70% targeted on high-return projects [12] - Investments are being made in the fully integrated West Coast value chain, particularly in the Los Angeles refinery, to improve reliability and energy efficiency [8][9] - The company aims to leverage its geographic diversification and integrated refining system to deliver peer-leading cash generation [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding demand, noting steady year-over-year demand for gasoline and growth in diesel and jet fuel, with no signs of an economic slowdown [36][37] - The company believes that the U.S. refining industry will remain structurally advantaged due to locational advantages and flexibility in refining systems [10][11] - Management is focused on optimizing operations and capital allocation to enhance competitiveness and deliver strong financial performance [28][29] Other Important Information - The company is managing its balance sheet to maintain an investment-grade credit profile, with a minimum target of $1,000,000,000 in cash [24][25] - The company has a strong liquidity position with $3,800,000,000 in consolidated cash and undrawn credit facilities of $5,000,000,000 [25] Q&A Session Summary Question: Demand perspective and economic slowdown - Management noted refined cracks have improved, indicating a seasonal uptick in demand, with overall utilization projected at 94% for the second quarter [34][35] Question: West Coast outlook and political environment - Management highlighted investments in the LA asset and the competitive advantage of their integrated operations, while monitoring regulatory changes closely [40][42] Question: Capture rates and commercial performance - Management emphasized the importance of commercial performance and sustainable advantages built over the years, aiming for capture rates approaching 100% [55][58] Question: Crude quality discounts and OPEC volumes - Management expressed optimism regarding benefits from heavy crude processing, anticipating discounts to improve due to OPEC's increased volumes [74][75] Question: Midstream growth and distribution sustainability - Management confirmed a durable growth outlook for MPLX distributions, supported by ongoing projects and capital discipline [78][82] Question: Renewable diesel profitability and operational reliability - Management is focused on optimizing operations and addressing challenges from Q1, with expectations for an EBITDA positive quarter in Q2 [120][121]

HOUSTON, May 5, 2025 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that Robert G. (Bob) Phillips has been appointed as an independent member of its general partner's board of directors. Mr. Phillips brings more than 47 years of experience and leadership in the midstream industry to the board, having recently retired as the Founder, Chairman, and Chief Executive Officer of Crestwood Equity Partners LP ("Crestwood") following its successful merger with ...