Financial Data and Key Metrics Changes - In Q4, mineral and royalty production was 30,900 BOE per day, a decrease of 11% from the prior quarter [11] - Total production for the quarter was 32,100 BOE per day, completing the year at the high end of updated guidance [11] - Net income for Q4 was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05x coverage for the period [13] Business Line Data and Key Metrics Changes - The company signed development agreements with Revenant Energy and Katouris Energy, placing approximately 500,000 gross acres into development [4] - Minimum drilling commitments ramp up to 37 gross wells per year by 2031, with a total of 50 gross wells expected over the same period [4][5] - Aethon brought several new wells online in the Shelby Trough, producing about 25 MMcf-30 MMcf a day, with additional wells expected in Q1 [4] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by significant assets near Gulf Coast LNG facilities [14] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders through strategic acquisitions and development agreements [6][9] - A new opportunity is being built in the Haynesville expansion area, expected to add significant inventory and scale [5] - The company is strategically increasing G&A in 2026 to support increased activity levels [9] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as a turning point with new and increased development in the Shelby Trough and Haynesville expansion areas [11] - The company remains confident in its ability to fund distributions and grow throughout the year based on minimum commitments and ongoing activity [32][33] - Management is optimistic about long-term growth due to substantial industry-leading inventory and advantageous proximity to key demand centers [9] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which is expected to enhance subsurface evaluation and accelerate development [12] - The proprietary nature of these surveys may provide opportunities to license the data to the industry, potentially generating additional revenue [12][37] Q&A Session Summary Question: Guidance for production levels throughout 2026 - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026 due to new development agreements and high-interest projects [20][21] Question: Pipeline of potential new development agreements - Management welcomes both existing and new partners for development agreements and is focused on diversifying new developments [23] Question: Activity in the Permian and its priority - Management is excited about high-interest activity in the Permian and anticipates increased leasing and activity throughout 2026 and 2027 [28][29] Question: Funding the distribution through cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong hedges in place for natural gas [32][33] Question: Seismic expenses and their impact on adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to two specific shoots to be completed in early 2027 [35][36]

Financial Data and Key Metrics Changes - In the fourth quarter, mineral and royalty production was 30.9 thousand BOE per day, a decrease of 11% from the prior quarter, while total production for the quarter was 32.1 thousand BOE per day [11] - Net income for the fourth quarter was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05 times coverage for the period [13] Business Line Data and Key Metrics Changes - The company achieved significant commercial milestones, including development agreements with Revenant Energy and Caturus Energy, placing approximately 500,000 gross acres into development [4] - Aethon brought several new wells online in the Shelby Trough at about 25-30 MMcf a day, with additional wells expected to come online in the first quarter [4][5] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by the company's significant assets near Gulf Coast LNG facilities [15] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders, with a comprehensive commercial strategy that includes grassroots acquisitions and high-interest development agreements [9] - The company is strategically increasing G&A in 2026 to support the anticipated increase in activity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2026 will be a turning point, with new and increased development in the Shelby Trough and Haynesville expansion areas [11] - The company is monitoring increasing activity levels in the Haynesville and commodity price dynamics as it looks towards 2026 production and distribution [11] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which are expected to enhance subsurface evaluation and accelerate development [12] - The company has invested about $240 million in its acquisition program since launching in 2023 [6] Q&A Session Summary Question: Guidance for the year and production cadence - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026, primarily due to new development agreements and high-interest projects [20][21] Question: Pipeline of potential new development agreements - Management stated that they welcome both existing partners and newcomers for new developments, indicating a diverse approach to expanding their asset base [24] Question: Activity in the Permian and liquids guidance - Management highlighted excitement about high-interest activity in the Permian, with expectations for increased activity and volumes primarily in 2026 and 2027 [30][31] Question: Funding the distribution through cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong development commitments [34][35] Question: Seismic expenses and adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to the seismic shoots completed by early 2027 [37]

Market Overview - Oil prices have had their strongest start to a year since 2022, with ICE Brent futures up 18% since the beginning of the year [5] - Brent monthly call option volumes reached an all-time high of 5.8 million contracts last month due to rising volatility and anticipation of US military strikes on Iran [5] - The net positioning of hedge funds in ICE Brent futures has been bullish, with a reported net length of 263,186 contracts as of February 17, more than doubling since early January 2026 [6] Price Movements - WTI price is at $66.58, up by $0.24 (+0.36%) [2] - Brent price is at $71.77, up by $0.28 (+0.39%) [2] - Natural Gas (Nymex) price is at $2.953, down by $0.032 (-1.11%) [2] Rig Count and Production - Total rig count stands at 551, down from 588 a year ago, with 409 oil rigs and 133 gas rigs [3] - The Permian Basin has 239 active rigs, with a slight increase of 1 rig from the previous week [4] Company Developments - ENI is considering revamping its oil trading business, aiming for a partnership with Mercuria [7] - Shell is expected to advance its Dragon gas field offshore Venezuela, targeting first gas by Q4 2027 after receiving US approval [7] - Azule Energy, a BP-ENI joint venture, has started production at its Ndungu field in Angola, aiming for a peak output of 60,000 b/d [8] - Mubadala Energy acquired a 15% interest in Chevron's Nargis offshore concession in Egypt, taking over ENI's previous 45% stake [8] Geopolitical Context - Oil markets remain tense amid ongoing US-Iran nuclear talks, with ICE Brent hovering around $72 per barrel despite macroeconomic concerns [9] - Goldman Sachs has raised its 2026 price forecast for Brent and WTI by $8 per barrel to $64 and $60, respectively, assuming no disruptions from Iran [10]

Adjusted EBITDA is a supplemental non-GAAP (as defined below) financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to the Company, plus net income (loss) attributable to non-controlling interest ("net income (loss)") before interest expense, net, non-cash share-based compensation expense, depletion, impairment, non-cash (gain) loss on deri ...

Financial Data and Key Metrics Changes - In Q4 2025, mineral and royalty production was 30.9 thousand BOE per day, a decrease of 11% from the prior quarter, while total production for the quarter was 32.1 thousand BOE per day [11] - Net income for the fourth quarter was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05 times coverage for the period [13] Business Line Data and Key Metrics Changes - The company signed development agreements with Revenant Energy and Caturus Energy, placing approximately 500,000 gross acres into development, with commitments ramping up to 37 gross wells per year by 2031 [4] - Aethon brought several new wells online in the Shelby Trough at about 25-30 MMcf a day, with additional wells expected in Q1 2026 [4][5] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by significant assets near Gulf Coast LNG facilities [14] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders through strategic acquisitions and development agreements [6][9] - A new opportunity is being built in the Haynesville expansion area, expected to add significant inventory and scale to current developments [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth for unitholders, citing substantial industry-leading inventory and advantageous proximity to key demand centers [9] - The company expects 2026 to be a turning point with new and increased development in the Shelby Trough and Haynesville expansion areas [11] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which are expected to enhance subsurface evaluation and accelerate development [12] - The company has updated the presentation of adjusted EBITDA and distributable cash flow to exclude seismic acquisition costs [13] Q&A Session Summary Question: Guidance for the year and production cadence - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026 due to new development agreements and high-interest projects [19][20] Question: Pipeline of potential new development agreements - Management stated they welcome both existing and new partners for development agreements, emphasizing diversification in their approach [22][23] Question: Activity in the Permian and leasing outside Coterra - Management highlighted excitement about high-interest developments in the Permian, with increased activity expected in 2026 and 2027 [29][30] Question: Funding the distribution through distributable cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong hedges in place for natural gas [32][34] Question: Seismic expenses and adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to the seismic shoots completed by early 2027 [36][38]

Core Insights - WesCan Energy Corp. has successfully transitioned to a self-sustaining operational model characterized by strong cash flow and organic de-leveraging following a high-impact multilateral well executed in late 2025 [1][4] Financial Performance - Cash flow from operating activities surged by 596% to $492,548 in Q3 2026, compared to $70,752 in Q3 2025 [6] - Average production increased by 55% to 225 barrels of oil equivalent per day (boe/d) in Q3 2026 from 146 boe/d in the same period last year [6] - Operating netbacks improved by 137% to $28.22 per boe from $11.90 per boe in Q3 2025, achieved through cost discipline and an 18% reduction in total operating costs [6] - The company's working capital deficiency improved by over $1.1 million year-over-year, ending the period at $1,263,009 compared to $2,379,964 in the prior year [6] - General and Administrative expenses remained disciplined at $91,748 for the quarter, reflecting a minimal corporate overhead structure [6] Strategic Outlook - The company is evaluating a potential new high-impact drilling location for late 2026, aiming to accelerate expansion while maintaining its organic debt-repayment trajectory [3] - WesCan intends to seek targeted equity financing specifically to fund the 2026 drilling program [3]

Core Viewpoint - Kosmos Energy has significantly outperformed larger competitors like Exxon and Chevron, showcasing its potential as a leveraged play on rising oil prices [2][3]. Group 1: Stock Performance - Kosmos' stock has surged 62.20% over the past month, far exceeding Exxon's 11.81% gain and Chevron's 10.39% rise during the same period [2]. - Over a longer timeframe, Kosmos is up approximately 25%, while Chevron has gained nearly 21% [1]. Group 2: Operational Focus - Kosmos operates primarily in offshore oil fields in Ghana, Senegal, and the Gulf of Mexico, providing it with high leverage to crude prices [3]. - Unlike Exxon and Chevron, which have diversified operations including refining and downstream activities, Kosmos' earnings are more sensitive to fluctuations in oil prices [4][6]. Group 3: Business Models - Exxon and Chevron utilize integrated business models that encompass upstream production, refining, chemicals, and global distribution, allowing for steadier returns across market cycles [5]. - The structural advantages of Exxon and Chevron enable them to fund substantial buybacks, maintain dividends, and invest consistently, while Kosmos remains heavily reliant on favorable oil prices [6]. Group 4: Market Dynamics - While Kosmos is currently leading in stock performance, Exxon and Chevron maintain a foundational role in the oil market, suggesting that stability may be more critical than rapid growth in the face of oil price volatility [7].

Citi Research February 16, 2026 Geopolitics, politics, to drive the oil market in 2026 - OPEC+ spare capacity buffers the upside, 'peace deals' can drive substantial downside Maximilian Layton AC Global Head | Commodities max.layton@citi.com +44 20 7986 4556 Anthony YuenAC Energy Head anthony.yuen@citi.com +852 2501 2731 Francesco MartocciaAC Energy Strategy francesco.martoccia@citi.com +39 02 8906 4571 Eric G. LeeAC Energy Strategy eric.g.lee@citi.com +1 212 723 1474 Arkady GevorkyanAC Commodities Strategy ...

Key Takeaways Halliburton signed an MOU with Pertamina to deploy advanced drilling tech in Indonesia.HAL will use multi-stage fracking, acid stimulation and cementing to lift output from mature fields.Partnership adds AI and closed-loop automation to improve efficiency, safety and energy security.Halliburton (HAL) , a major global oil and gas equipment and services company, has formed a new partnership with Pertamina, Indonesia’s state-owned energy company. The two companies signed a memorandum of understan ...

22 February 2026 | 6:57PM EST Commodities Research OIL ANALYST Raising Our Price Forecast on Lower OECD Stocks Despite Same Global Surplus; Geopolitical Risks Persist Daan Struyven +1(212)357-4172 | daan.struyven@gs.com Goldman Sachs & Co. LLC Yulia Zhestkova Grigsby +1(646)446-3905 | yulia.grigsby@gs.com Goldman Sachs & Co. LLC Alexandra Paulus +1(212)902-7111 | alexandra.paulus@gs.com Goldman Sachs & Co. LLC Filippo Cuscito +44(20)7051-9073 | filippo.cuscito@gs.com Goldman Sachs International Investors sh ...