Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA attributable to Plains of $754 million for Q1 2025, with the crude oil segment adjusted EBITDA at $559 million, impacted by winter weather and refinery downtime [5][10] - The NGL segment reported adjusted EBITDA of $189 million, benefiting from higher frac spreads and NGL sales volumes [11] Business Line Data and Key Metrics Changes - The NGL segment's transition to more fee-based earnings continues, with a 30,000 barrel per day fractionation project placed into service [7] - The crude segment experienced two strategic transactions, including the acquisition of the remaining 50% equity in the Cheyenne Pipeline and the acquisition of Black Knight Midstream for approximately $55 million [8][10] Market Data and Key Metrics Changes - The company expects a $60 to $65 WTI price environment for the remainder of the year, which may lead to EBITDA guidance being in the lower half of the respective ranges [6] - The NGL segment remains largely insulated from lower commodity prices, with approximately 80% of estimated C3 plus spec products sales hedged for 2025 [7] Company Strategy and Development Direction - The company continues to execute on its efficient growth strategy, generating significant free cash flow and maintaining a flexible balance sheet [7][13] - The focus remains on distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases [21] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty regarding trade tariffs and OPEC dynamics, which are creating volatility in the market [5][6] - The company remains optimistic about the medium to long-term outlook despite current market conditions, emphasizing the cyclical nature of commodity markets [6][39] Other Important Information - The company has successfully deployed approximately $1.3 billion into bolt-on acquisitions over the last several years, indicating a commitment to pursuing attractive risk-adjusted returns [9] - The management acknowledged the retirement of Harry Pofonis, the President and Co-Founder, recognizing his contributions to the company [9] Q&A Session Summary Question: Thoughts on capital allocation in the current environment - The company remains committed to distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases as a component of capital allocation [21][22] Question: M&A landscape and volatility impact - Volatile markets create questions, but the company believes it is well-positioned to pursue attractive deals while maintaining capital discipline [23][24] Question: Earnings cadence in Canada with new fractionation complex - The expanded capacity at the PFS facility in Edmonton will ramp up over the remainder of the year and into next year, contributing gradually to earnings [27][28] Question: Insights on Permian volumes and producer conversations - The company has seen over 100,000 barrels per day growth from the end of last year, with producers adopting a wait-and-see approach due to market volatility [35][36] Question: Acquisition multiples for recent deals - Both recent acquisitions met the company's return thresholds, with a focus on capital discipline and risk-adjusted returns [41][42] Question: Capital expenditure guidance and 2026 outlook - The investment capital guidance for 2025 remains unchanged at $400 million, with expectations for 2026 to align with long-term capital guidance [45][46] Question: Hedging philosophy and frac spread - The company maintains a consistent hedging strategy, with approximately 80% of estimated C3 plus spec products sales hedged for 2025 [47][48] Question: Demand signals and refining market health - The global refining market remains healthy, with strong crack spreads and refineries running at high capacity [71][73]

Financial Performance - Plains All American Pipeline (PAA) reported $754 million in Adjusted EBITDA attributable to PAA for 1Q25[5] - The company reaffirmed its full-year Adjusted EBITDA guidance of $2.80 - $2.95 billion[5] - PAA's leverage ratio stood at 3.3x in 1Q25[5] - Distributable Cash Flow available to Common Unitholders is $1.875 billion, with a Common Unit Distribution Ratio Coverage of 175%[22] - Adjusted Free Cash Flow (excluding changes in Assets & Liabilities) is +/- $1.095 billion[22, 26] Segment Performance - The Crude Oil segment contributed $559 million to Adjusted EBITDA in 1Q25[5] - The NGL segment contributed $189 million to Adjusted EBITDA in 1Q25[5] - The company anticipates $2.41 billion in Adjusted EBITDA from the Crude Oil segment and $450 million from the NGL segment for the full year 2025[22] Growth Strategy - Plains has invested approximately $1.3 billion in bolt-on acquisitions since the second half of 2022, targeting a return threshold of 15%+[11] - The company expects $300 - $400 million of annual growth capex[10] - The company is targeting ~$0.15/unit annual distribution growth from 2026 until ~160% common unit coverage is reached[26]

Core Insights - Plains All American Pipeline reported strong operational and financial performance for Q1 2025, with significant cash flow generation and a focus on efficient growth through acquisitions and projects [3][5][4]. Financial Performance - Net income attributable to Plains All American Pipeline (PAA) was $443 million for Q1 2025, a 67% increase from $266 million in Q1 2024 [4][5]. - Diluted net income per common unit rose to $0.49, up 69% from $0.29 in the previous year [4][5]. - Net cash provided by operating activities increased by 53% to $639 million compared to $419 million in Q1 2024 [4][5]. - The company declared a distribution of $0.38 per common unit, representing a 20% increase from $0.3175 in the same period last year [4][5]. Segment Performance - Crude Oil Segment Adjusted EBITDA was $559 million, a slight increase of 1% from $553 million in Q1 2024, driven by higher tariff volumes and contributions from acquisitions [10]. - NGL Segment Adjusted EBITDA increased by 19% to $189 million, primarily due to higher frac spreads and sales volumes [11]. Strategic Developments - Plains acquired the remaining 50% interest in Cheyenne Pipeline, enhancing integration from the Guernsey market to Cushing, Oklahoma [5]. - The company also acquired Black Knight Midstream's Permian Basin crude oil gathering business for approximately $55 million [5]. - The Fort Saskatchewan fractionation complex debottleneck project was placed into service, enhancing fee-based cash flow in Canada [5]. Capital Structure - The leverage ratio at the end of Q1 2025 was 3.3x, within the target range of 3.25x - 3.75x [5]. - Total assets increased to $27.059 billion from $26.562 billion year-over-year [25][27]. Cash Flow and Expenditures - Adjusted Free Cash Flow was reported at $(308) million, a decrease from $70 million in Q1 2024, influenced by significant cash outflows for acquisitions [54][56]. - Total investment capital expenditures for Q1 2025 were $130 million, up from $79 million in Q1 2024 [36].

Core Viewpoint - Energy Transfer LP is experiencing volatility in 2025, but recent Q1 results indicate strong growth potential, with a 7.8% yield and expectations for accelerating growth in the future [1][6]. Financial Performance - Energy Transfer reported a net income of $1.32 billion for Q1, translating to $0.36 per diluted unit, reflecting a year-over-year growth of approximately 6.5% and surpassing analysts' expectations of $0.33 per unit [2]. - Revenue decreased by 2.8% year-over-year to $21 billion, while distributable cash flow fell from $2.36 billion in Q1 2024 to $2.31 billion in the recent quarter [4]. Volume Growth - The company experienced volume growth across various segments: interstate natural gas transportation volumes increased by 3%, crude oil volumes surged by 10%, natural gas liquids (NGLs) volumes rose by 4%, and NGL exports jumped by 5% [3]. Industry Outlook - CEO Marshall McCrea expressed optimism about the industry, anticipating a rebound after a temporary slowdown, particularly highlighting strong future demand for oil and gas products [5]. - International demand for butane, ethane, and propane, especially from China, is expected to remain robust, with no anticipated challenges in selling out terminal capacity [5]. Growth Initiatives - Energy Transfer is focusing on the data center market, with plans to explore opportunities with around 150 data centers in Texas and other states, indicating significant growth potential [5]. - The company plans to invest approximately $5 billion in organic growth capital projects this year, with most projects expected to come online in 2025 or 2026 [5]. Investment Appeal - The company offers a strong income investment opportunity with a forward distribution yield of 7.8% and a recent distribution increase of over 3% [6]. - Energy Transfer's business model is resilient, primarily fee-based, with limited exposure to commodity prices, and the balance sheet is reported to be the strongest in its history [6][7].

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) is anticipated to show improvements in both revenue and earnings for the first quarter of 2025, with revenues expected to reach $13.12 billion, reflecting a 9.35% increase year-over-year, and earnings estimated at 43 cents per unit, indicating a 4.88% increase from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for PAA's first-quarter revenues is $13.12 billion, which is a 9.35% increase from the same quarter last year [1]. - The consensus estimate for earnings is 43 cents per unit, representing a 4.88% increase from the year-ago figure [2]. - PAA has a mixed surprise history, missing earnings estimates in two of the last four quarters while surpassing in the other two, resulting in an average positive surprise of 3.47% [3][4]. Earnings Prediction - The current Earnings ESP for PAA is -4.05%, indicating that the model does not predict a likely earnings beat this time [5]. - PAA's Zacks Rank is 3 (Hold), which does not suggest a strong likelihood of an earnings surprise compared to other companies in the sector [6]. Operational Factors - PAA operates a vast network of pipelines and storage facilities in key North American oil-producing regions, which is crucial for the efficient transportation of crude oil and is expected to positively impact earnings [8]. - A significant portion of PAA's cash flow comes from fee-based contracts, providing stable income streams that are less affected by short-term oil price fluctuations [9]. - Recent bolt-on acquisitions have expanded PAA's pipeline operations, contributing positively to earnings through operational synergies [10]. - The company has focused on reducing debt levels and enhancing operational efficiency, leading to improved margins [11]. Market Position - PAA's current trailing 12-month EV/EBITDA is 8.8X, which is lower than the industry average of 11.4X, indicating that the stock is trading at a discount [12]. - Over the past six months, PAA's units have declined by 1.6%, which is better than the industry's 8.2% loss [14]. Investment Outlook - PAA is positioned as a leading midstream energy company with a strategically located network that plays a vital role in linking upstream producers with downstream markets [15]. - The company benefits from long-term, fee-based contracts that ensure stable earnings and reduce exposure to commodity price fluctuations [16]. - Future performance is expected to be driven by strategic joint ventures, ongoing debt reduction, and a strong presence in the Permian Basin [18].

Financial Data and Key Metrics Changes - The first quarter was described as a transformational quarter for the company, successfully exiting the soda ash business and simplifying the balance sheet, which is expected to significantly reduce future cash costs [6][10] - The anticipated annual cash costs of running and sustaining the business have been reduced to approximately $425 million to $450 million [19][20] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment is expected to see a significant increase in financial contribution due to new production facilities, Shenandoah and Salamanca, which will add nearly 200,000 barrels of oil per day of incremental production capacity [9][10] - The Marine Transportation segment is on pace to post record earnings in 2025, supported by steady demand and limited new construction in the market [16][18] - The Onshore Transportation and Services segment has seen steady volumes and is expected to increase as new offshore projects commence production [19] Market Data and Key Metrics Changes - Gulf Coast refinery utilization has recovered from approximately 80% in January to roughly 94% in late April, supporting the need for transportation of heavy and intermediate products [17][18] - The demand for moving petroleum products from the Gulf Coast to East and Mid-Atlantic markets remains steady due to inadequate regional refining capacity [18] Company Strategy and Development Direction - The company plans to implement a capital allocation strategy focusing on redeeming high-cost preferred units, paying down debt, and returning capital to unitholders [20] - The management is optimistic about the long-term value creation potential from the offshore expansion projects and the overall midstream energy space [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of mechanical issues affecting production, expecting volume levels to return to normalized levels by the end of the second quarter or third quarter [11][40] - The company believes that deepwater projects are more resilient during low price environments compared to onshore shale plays, with significant capital already invested [14][40] Other Important Information - The Department of Interior's new permitting procedures are expected to expedite the development of domestic energy resources, potentially bringing forward opportunities that were previously slated for later [15] - Ten of the 22 active deepwater drilling rigs in the Gulf of America are working on leases dedicated to the company's pipeline infrastructure [16] Q&A Session Summary Question: Thoughts on capital allocation and distribution - Management indicated a likely flat distribution for the second quarter, with potential adjustments in the third quarter based on project timelines and mechanical issue resolutions [23] Question: Quantifying additional infield and subsea opportunities - Management noted that there are seven active rigs drilling for potential production increases, with typical wells expected to produce 7,000 to 10,000 barrels per day [26][31] Question: Segment margin guidance for offshore segment - Management anticipates that the offshore segment will contribute significantly to annual EBITDA guidance, with OTS and marine segments expected to remain consistent with the first quarter [30] Question: Confidence in resolution of producer issues - Management expressed confidence based on real-time data from producers and noted that producers are incentivized to resolve issues quickly [40] Question: Target leverage ratio and distribution coverage ratio - The long-term target leverage ratio is around four times, with expectations to reach this ratio rapidly as segment margins increase [42]

Financial Data and Key Metrics Changes - The first quarter was described as a transformational quarter for the company, successfully exiting the soda ash business and simplifying the balance sheet, which is expected to significantly reduce future cash costs [5][6] - The anticipated annual cash costs of running and sustaining the business have been reduced to approximately $425 million to $450 million [18][20] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment is expected to see a significant increase in financial contribution due to new production facilities, Shenandoah and Salamanca, which will add nearly 200,000 barrels of oil per day of incremental production capacity [8][9] - The Marine Transportation segment is on pace to post record earnings in 2025, supported by steady demand and limited new construction in the market [15][17] - The Onshore Transportation and Services segment has seen steady volumes and is expected to increase as new offshore projects commence production [18] Market Data and Key Metrics Changes - Gulf Coast refinery utilization has recovered from approximately 80% in January to roughly 94% in late April, supporting the need for transportation of heavy and intermediate products [16][17] - The demand for moving petroleum products from the Gulf Coast to East and Mid-Atlantic markets remains steady due to inadequate regional refining capacity [17] Company Strategy and Development Direction - The company is focused on generating excess cash flow and plans to implement a capital allocation strategy that includes redeeming high-cost preferred units, paying down debt, and returning capital to unitholders [19][20] - The management is optimistic about the long-term value creation potential from the offshore expansion projects and the overall midstream energy space [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of mechanical issues affecting production, with expectations for volume levels to return to normal by the end of the second quarter or third quarter [10][39] - The company believes that deepwater projects are more resilient during periods of low commodity prices compared to onshore shale plays, with significant capital already invested [12][13] Other Important Information - The Department of Interior's new permitting procedures are expected to expedite the development of domestic energy resources, potentially bringing forward opportunities that were previously slated for later [14] - Ten of the 22 active deepwater drilling rigs in the Gulf of America are working on leases dedicated to the company's pipeline infrastructure, indicating a strong strategic position [15] Q&A Session Summary Question: Thoughts on capital allocation and distribution - Management indicated that they are likely to maintain a flat distribution for the second quarter but will consider movements in the quarterly distribution for the third quarter and beyond [23] Question: Quantifying additional infield and subsea opportunities - Management noted that there are several active rigs drilling in fields dedicated to the company, with expectations for additional production in the range of 7,000 to 10,000 barrels per day from new wells [25][26] Question: Segment margin guidance for offshore segment - Management stated that while they do not provide segment guidance, they anticipate that the offshore segment will contribute significantly to overall EBITDA, especially as new projects come online [30] Question: Crude oil price impact on producer activity - Management expressed confidence that producers are incentivized to maintain production despite price fluctuations, citing low marginal lifting costs in the Gulf [40] Question: Target leverage ratio and distribution coverage ratio - The long-term target leverage ratio is around four times, with management confident in reaching this target rapidly as segment margins increase [41][42] Question: Marine segment day rates and new construction - Management indicated that day rates need to increase by 30% to 40% and be sustained for several years to incentivize new construction in the Marine segment [43]

Financial Data and Key Metrics Changes - The company reported first quarter adjusted EBITDA of $57.5 million and capital expenditures of $20.6 million, with the majority of CapEx spent in the Rockies and Mid Con segments [13] - Net debt stood at approximately $959 million, with available borrowing capacity totaling approximately $354 million at the end of the first quarter [13] Business Line Data and Key Metrics Changes - The Rockies segment generated adjusted EBITDA of $24.9 million, an increase of $1.6 million from the fourth quarter, primarily due to an 8.8% increase in liquids volume throughput [13] - The Mid Con segment reported adjusted EBITDA of $22.5 million, an increase of $9.6 million relative to the fourth quarter, primarily due to the acquisition of Tall Oak and an increase in volume throughput [16] - The Permian Basin segment reported adjusted EBITDA of $8.3 million, an increase of $0.5 million relative to the fourth quarter, due to higher volume throughput on the Double E pipeline [15] Market Data and Key Metrics Changes - In the Rockies segment, 30 new wells were connected during the first quarter, including 22 in the DJ Basin and 8 in the Williston Basin [8] - Average daily volumes on the Double E pipeline grew by 8% quarter over quarter, averaging close to 700 million cubic feet per day [11] Company Strategy and Development Direction - The company remains focused on executing strategic objectives and maintaining a strong balance sheet to navigate the current macroeconomic environment [6] - The acquisition of Moonrise Midstream is expected to expand the company's footprint in the DJ Basin and provide additional operating synergies [7] Management's Comments on Operating Environment and Future Outlook - Management noted a significant reduction in crude oil prices, which may dampen activity levels in the second half of the year, particularly in the crude-oriented Rockies segment [7] - The outlook for natural gas remains strong, which could mitigate potential downside exposure associated with the crude segment [7] Other Important Information - The Board of Directors reinstated the cash dividend on the Series A preferred stock, marking a step towards reinstating the common dividend in the future [7] - The company connected 41 wells during the first quarter, maintaining an active customer base with six active drilling rigs [7] Q&A Session Summary Question: What is the outlook for the second half of the year regarding completion schedules? - Management indicated that customers expect second half completion schedules to largely remain intact despite potential slippage if crude prices weaken further [9] Question: How is the company addressing the current crude price environment? - The company is in close communication with its customer base to evaluate the implications of the current crude price environment on well completion activities [9]

Core Viewpoint - Energy Transfer LP reported earnings that met expectations, with earnings per share of 36 cents and revenue of $21.02 billion, although revenue was below analyst forecasts and lower year-over-year [1][2]. Financial Performance - Earnings per share exceeded analysts' forecasts by three cents and were 12.5% higher year-over-year [2]. - Revenue of $21.02 billion was 2.8% lower year-over-year and below the expected $22.28 billion [2]. Investment Structure - Energy Transfer operates as a Master Limited Partnership (MLP), allowing it to avoid corporate taxes by distributing much of its free cash flow to investors [3]. - Distributions are tax-deferred until shares are sold, providing a tax advantage for investors [4]. Historical Returns - Investors have seen a total return of over 240% in the last five years, although the stock remains below its all-time high set in 2015, with a total return of just 14% over the last decade [5]. Distribution Concerns - The company cut its distribution in half in 2020 but has since increased it at an average annualized rate of around 27% over the last three years [7]. - Other MLPs like Enbridge Inc. and Enterprise Product Partners L.P. offer attractive distributions and a longer history of dividend increases [8]. Stock Performance and Outlook - In 2025, ET stock's total return was -12.3%, influenced by declining oil prices and increased production from OPEC+ nations [9]. - Current stock price forecast is $22.09, indicating a potential upside of 27.62% based on 11 analyst ratings [10]. Future Projects - Energy Transfer has several major projects under construction, including the Lenorah II processing plant in the Permian Basin, expected to go online by the end of the current quarter [11].

Financial Data and Key Metrics Changes - Kinetic reported first quarter adjusted EBITDA of $250 million, a 7% year-over-year increase driven by process gas volume growth and margin expansion in the Midstream Logistics segment [7][14] - Distributable cash flow was $157 million, and free cash flow reached $120 million [14] - The company affirmed full-year adjusted EBITDA guidance of $1.09 billion to $1.15 billion, expecting a meaningful acceleration in adjusted EBITDA growth during the second half of the year [16][17] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated adjusted EBITDA of $159 million, up 11% year-over-year due to increased process gas volumes and margin expansion from Northern Delaware assets [14] - The Pipeline Transportation segment reported adjusted EBITDA of $94 million, down 2% year-over-year, primarily due to the absence of contributions from Gulf Coast Express following the sale of equity interest [16] Market Data and Key Metrics Changes - Kinetic's operations are primarily focused on the Permian Basin, which is expected to remain resilient despite macroeconomic challenges [9][10] - The company anticipates over 1 billion cubic feet per day of gas growth per year, even if Permian crude production remains flat [10] Company Strategy and Development Direction - Kinetic is focused on providing flow assurance and operational reliability to producer customers, with a strong emphasis on organic and inorganic growth opportunities [10][12] - The company announced a $500 million share repurchase program, reflecting management's confidence in Kinetic's value proposition [13][21] - Future capital expenditures are expected to be discretionary and flexible, with less than $50 million of committed growth capital in 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated volatility and macroeconomic uncertainty but expressed confidence in Kinetic's ability to navigate these challenges [7][20] - The company is seeing some indirect impacts of lower commodity prices, leading to adjustments in gas process volume growth assumptions from approximately 20% to high teens growth [18][19] - Management remains optimistic about the long-term growth outlook, projecting a 10% compound annual growth rate through 2029 [23][26] Other Important Information - Kinetic has made substantial progress on strategic projects, including the commissioning of the King's Landing complex [7][19] - The company has a strong hedging strategy, with approximately 83% of expected gross profit sourced from fixed fee agreements [17][18] Q&A Session Summary Question: Long-term growth drivers - Management highlighted that the 10% compound annual growth rate is supported by contractual resets and growth in New Mexico, with a focus on operational efficiency [23][26] Question: Capital allocation and buybacks - Management confirmed a flexible approach to capital allocation, emphasizing the value seen in the current share price and the potential for M&A opportunities [28][30] Question: Macro environment and CapEx adjustments - Management indicated that further production cuts could lead to adjustments in capital expenditures, but emphasized a customer-specific approach to decision-making [49][52] Question: Commodity exposure and hedging - Management stated that approximately 83% of gross profit is fee-based, with plans to continue hedging against commodity price fluctuations [61][63] Question: Performance of acquired assets - The Barilla Draw acquisition has exceeded expectations, with significant activity anticipated in the coming years [105][106]