Core Insights - Enbridge Inc. (ENB) is scheduled to report its third-quarter 2025 results on November 7, before market opening [1] Group 1: Q2 Earnings Performance - In the last reported quarter, Enbridge's adjusted earnings were 47 cents per share, exceeding the Zacks Consensus Estimate of 41 cents, driven by higher contributions from Gas Transmission and Gas Distribution and Storage segments [2] - Enbridge has surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 5.61% [2] Group 2: Q3 Estimates and Trends - The Zacks Consensus Estimate for third-quarter earnings per share is 39 cents, reflecting a 2.5% decline from the prior year's reported figure [3] - The estimated revenue for the third quarter is $10.86 billion, indicating a 0.5% decrease from the year-ago figure of $10.91 billion [3][5] Group 3: Business Model and Performance Factors - Enbridge's low-risk business model, with over 98% of its EBITDA generated from regulated or long-term take-or-pay contracts, is expected to support stable earnings and cash flows [4] - Increased financing costs and higher maintenance expenses for midstream assets are anticipated to negatively impact overall profitability in the upcoming quarter [5][6] Group 4: Earnings Prediction - The current Earnings ESP for Enbridge is -3.42%, indicating that the model does not predict an earnings beat for this quarter [7] - Enbridge holds a Zacks Rank of 3, suggesting a neutral outlook [8]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a just-equity bid of $243 million, distributable cash flow of $158 million, and free cash flow of $51 million [14] - Adjusted EBITDA for the midstream logistics segment was $151 million, down 13% year-over-year, primarily due to lower commodity prices and higher operating expenses [15] - The updated full-year adjusted EBITDA guidance range is now $965 million to $1.005 billion, reflecting a decline from previous expectations due to commodity price volatility [16][21] Business Line Data and Key Metrics Changes - The midstream logistics segment faced challenges from lower commodity prices and increased costs, while the pipeline transportation segment generated an adjusted EBITDA of $95 million [15] - The startup of the King's Landing facility is expected to enhance processing capacity, with over 100 million cubic feet per day being consistently flowed [5][6] Market Data and Key Metrics Changes - Waha natural gas pricing has declined by over 50% since February, significantly impacting the company's earnings and operational decisions [17] - The Delaware Basin rig count has decreased by nearly 20% since the beginning of the year, indicating a cautious stance from producers [20] Company Strategy and Development Direction - The company is focused on executing a multi-year organic investment strategy, including projects like King's Landing and the ECCC pipeline, to enhance market access and deliver value [13][10] - A new agreement with Competitive Power Ventures to connect to a 1,350-megawatt energy center demonstrates the company's ability to unlock value through strategic partnerships [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the past quarters and emphasized the need for improved forecasting and cost management [12] - Despite current headwinds, management remains confident in the long-term strategy and the potential for value creation through organic growth initiatives [21] Other Important Information - The company has secured a five-year European LNG pricing agreement, which will enhance its service offerings and provide customers with diversified pricing exposure [10] - The company is actively pursuing opportunities in the data center market, leveraging its infrastructure to connect gas supply to power generation sources [77] Q&A Session Summary Question: Impact of producer delays on future development - Management indicated that delays are primarily within the current quarter and are not significantly pushing development into 2026, with most benefits expected in 2026 [26][29] Question: Development expectations in the Yazo formation - Management noted that the northwest shelf is seeing good geology and continued activity, with robust EMP M&A activity indicating potential future development [32][34] Question: Hedging strategy for commodity exposure - The company is relatively well-hedged for 2025 and aims to maintain 40-80% of equity volumes hedged on a rolling 12-month basis for 2026 [45] Question: Timing for King's Landing 2 announcement - Management stated that planning for King's Landing 2 is contingent on the development activity and gas packages coming online, with a potential 24-month timeline for the project [46][48] Question: Managing Waha exposure until 2028 - The company is actively managing existing capacity and has secured additional capacity to the Gulf Coast to mitigate exposure [72] Question: Update on in-basin power project - Management confirmed ongoing discussions with upstream customers regarding the power project, which is seen as important for managing controllable costs [73]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $243 million, distributable cash flow of $158 million, and free cash flow of $51 million for the third quarter [19] - The updated full-year adjusted EBITDA guidance range is now $965 million to $1,005 million, reflecting a decrease due to various challenges [19][20] - The adjusted EBITDA for the Midstream Logistics segment decreased by 13% year-over-year to $151 million, primarily due to lower commodity prices and higher operating expenses [19] Business Line Data and Key Metrics Changes - The Midstream Logistics segment's adjusted EBITDA was impacted by lower Kinetic Marketing contributions and higher costs, despite increased volumes across Delaware North and South assets [19] - The Pipeline Transportation segment generated an adjusted EBITDA of $95 million [19] Market Data and Key Metrics Changes - Waha natural gas pricing has declined by over 50% since February, significantly impacting the company's earnings and operational decisions [20] - The Delaware Basin rig count has decreased by nearly 20% since the beginning of the year, indicating a more cautious stance from producers [22] Company Strategy and Development Direction - The company is focused on advancing strategic infrastructure projects like King's Landing and the ECCC pipeline, aiming to enhance market access and deliver value to customers [17][26] - Kinetic has finalized an agreement with Competitive Power Ventures to connect its pipeline network to a new power generation facility, showcasing its ability to unlock value through strategic partnerships [11][12] - The company is also pursuing an acid gas injection project to increase its total acid gas capacity, which is expected to strengthen its competitive position [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in integrating the Delaware North system and the impact of commodity price volatility on operations [15][20] - The company is committed to improving forecasting assumptions and reducing controllable costs to enhance operational performance [16] - Despite the current challenges, management remains confident in the long-term strategy and the potential for organic growth initiatives [24][26] Other Important Information - The company received over $500 million in cash proceeds from the sale of EPIC Crude, which has been used to pay down debt and reduce leverage [24] - The company has executed a five-year European LNG pricing agreement, enhancing its service offerings and market access [13] Q&A Session Summary Question: Impact of producer delays on future development - Management indicated that delays are primarily within the current quarter and not significantly pushing into 2026, with most benefits expected in 2026 [31][32] Question: Development expectations in the Lieso formation - Management noted that the Northwest Shelf is seeing good geology and continued activity, with capabilities to provide sour gas takeaway [35][36] Question: 2026 growth outlook - Management is currently assessing the level of activity for 2026, with expectations for Kings Landing and ECCC to contribute positively [41][44] Question: Hedging strategy for commodity exposure - The company is relatively well-hedged for 2025 and aims to maintain a hedging range of 40% to 80% for equity volumes in 2026 [54] Question: Managing Waha exposure until 2028 - The company is actively managing existing capacity and has secured additional capacity to the Gulf Coast for future needs [91] Question: Update on in-basin power project - Management is in discussions with upstream customers regarding a power project, which is seen as important for managing controllable costs [93] Question: Data center infrastructure investments - The company is positioned to connect its pipeline network to power generation sources for potential data center projects, indicating growth opportunities [100][102]

Financial Performance - The company reported $243 million in Adjusted EBITDA for the third quarter of 2025[8] - Free Cash Flow for the quarter was $51 million[8] - Capital Expenditures totaled $154 million[8] - The Leverage Ratio stood at 39x, but pro forma for the EPIC Crude Sale, it would be 37x[8] - $176 million of Class A common stock was repurchased year-to-date, with $100 million repurchased in 3Q25[10] Segment Performance - Midstream Logistics Adjusted EBITDA was $151 million, a 13% year-over-year decrease[13] - Pipeline Transportation Adjusted EBITDA was $95 million, a 1% year-over-year decrease[15] - Midstream Logistics contributed 61% and Pipeline Transportation 39% to the 3Q25 Adjusted EBITDA[16] Guidance and Assumptions - The company revised its FY 2025 Adjusted EBITDA Guidance to a range of $965 million to $1005 billion[10] - FY 2025 Capital Guidance was tightened to a range of $485 million to $515 million[10] - Fixed Fee contributes 85% and Commodity contributes 15% to the 2025E Gross Profit Sources[23]

Core Insights - Energy Transfer LP (ET) reported a revenue of $19.95 billion for the quarter ended September 2025, reflecting a decrease of 3.9% year-over-year and a significant miss of 12.9% compared to the Zacks Consensus Estimate of $22.91 billion [1] - The earnings per share (EPS) for the quarter was $0.28, down from $0.32 in the same quarter last year, resulting in an EPS surprise of -15.15% against the consensus estimate of $0.33 [1] Financial Performance Metrics - Gathered volumes in the midstream segment were reported at 21,581.00 BBtu/D, exceeding the two-analyst average estimate of 21,480.99 BBtu/D [4] - NGLs produced were 1,149 million barrels, slightly below the average estimate of 1,152.73 million barrels [4] - Equity NGLs stood at 67 million barrels, surpassing the average estimate of 64.62 million barrels [4] - NGL and refined products terminal volumes reached 1,660 million barrels, exceeding the average estimate of 1,543.19 million barrels [4] - NGL fractionation volumes were reported at 1,123 million barrels, below the average estimate of 1,158.2 million barrels [4] - Refined products transportation volumes were 601 million barrels, slightly above the average estimate of 589.13 million barrels [4] - NGL transportation volumes were 2,487 million barrels, exceeding the average estimate of 2,307.15 million barrels [4] Adjusted EBITDA Performance - Adjusted EBITDA for intrastate transportation and storage was $230 million, below the average estimate of $259.92 million [4] - Adjusted EBITDA for interstate transportation and storage was $431 million, compared to the average estimate of $479.4 million [4] - Adjusted EBITDA for crude oil transportation and services was $746 million, slightly below the average estimate of $755.57 million [4] - Adjusted EBITDA for NGL and refined products transportation and services was $1.05 billion, close to the average estimate of $1.06 billion [4] - Overall adjusted EBITDA for the midstream segment was $751 million, below the average estimate of $836.62 million [4] Stock Performance - Shares of Energy Transfer LP have returned -0.7% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $3.84 billion, a decrease from $3.96 billion in Q3 2024, but flat year over year when excluding non-recurring items [3][4] - Year-to-date adjusted EBITDA reached $11.8 billion, compared to $11.6 billion for the same period in 2024 [4] - Distributable cash flow (DCF) attributable to partners was approximately $1.9 billion for the first nine months of 2025 [4] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA increased to $1.1 billion from $1 billion in Q3 2024, driven by higher throughput [4] - Midstream segment adjusted EBITDA decreased to $751 million from $816 million in Q3 2024, impacted by a one-time business interruption claim in the previous year [5] - Crude oil segment adjusted EBITDA was $746 million, down from $768 million in Q3 2024, affected by lower transportation revenues [5] - Interstate natural gas segment adjusted EBITDA was $431 million, down from $460 million in Q3 2024, but included a $43 million increase from a prior tax obligation resolution [6] - Intrastate natural gas segment adjusted EBITDA decreased to $230 million from $329 million in Q3 2024, despite increased volumes [6] Market Data and Key Metrics Changes - The company experienced strong volumes in natural gas interstate and intrastate pipelines, with significant demand growth expected in gas-fired power plants and data centers [8][10] - The Desert Southwest Pipeline project is fully contracted under long-term commitments, indicating strong market demand [9] Company Strategy and Development Direction - The company plans to spend approximately $4.6 billion on organic growth capital projects in 2025, down from a previous estimate of $5 billion [7] - Future growth capital is expected to be around $5 billion in 2026, primarily focused on natural gas segments [7] - The company is expanding its NGL business to meet international demand and enhancing its crude oil pipeline network [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to meet future energy demand growth, leveraging strong relationships and a backlog of growth projects [24][25] - The company is focused on capital discipline and ensuring projects meet risk-return criteria before proceeding [23][26] Other Important Information - The company is exploring the conversion of one of its NGL pipelines to natural gas service due to competitive pressures and potential revenue increases [14][46] - The Bethel natural gas storage facility expansion is expected to double its capacity, enhancing reliability and addressing demand growth [14][67] Q&A Session Summary Question: Clarification on guidance for the year - Management clarified that the guidance does not include Parkland's acquisition and expects to be slightly below the initial guidance without it [28] Question: Details on Lake Charles LNG project - Management indicated that they are close to securing necessary contracts for FID but emphasized the importance of financial discipline and securing equity partners [29][30][32] Question: Financial impact of recent data center deals - Management highlighted the significant potential revenue from data centers and the strategic importance of the Hugh Brinson pipeline in connecting to these facilities [34][36][38] Question: Growth backlog and CapEx outlook - Management confirmed a strong backlog of high-return projects and indicated that the CapEx for next year is projected at $5 billion [56][57] Question: Converting NGL pipes to natural gas service - Management discussed the potential conversion of NGL pipelines to natural gas service, citing competitive pressures and higher anticipated revenues [44][46][47] Question: Earnings growth from new projects - Management expressed optimism about maintaining earnings levels and potential growth from new projects, particularly in collaboration with Enbridge [48][50][52]

Financial Performance - Q3 2025 Adjusted EBITDA was $384 billion[7] - Excluding non-recurring items, Adjusted EBITDA was flat compared to Q3 2024 of $396 billion[7] - Distributable Cash Flow attributable to partners was $190 billion in Q3 2025[7] - YTD 2025 Growth Capital Expenditures were $31 billion and Maintenance Capital Expenditures were $711 million[7] - 2025 Expected Growth Capital is ~$46 billion, down from ~$50 billion[7] Operational Highlights - Total NGL exports increased by 13%, setting a new partnership record[7] - NGL transportation volumes increased by 11%, setting a new partnership record[7] - NGL and refined products terminal volumes increased by 10%, setting a new partnership record[7] - Midstream gathered volumes increased by 3%, setting a new partnership record[7] - Interstate natural gas transportation up 8%[7] - Intrastate natural gas transportation up 5%[7] Strategic Initiatives - Announced the 15 Bcf/d Desert Southwest expansion project, including a 516-mile natural gas pipeline[7] - Reached positive FID on the construction of a new storage cavern at Bethel natural gas storage facility, doubling capacity to over 12 Bcf[7]

Financial Data and Key Metrics Changes - The reported adjusted EBITDA for the third quarter was $1.275 billion, representing a 19% increase year-over-year and a 10% sequential increase [18] - Full year 2025 adjusted EBITDA is now estimated to be around the top end of the $4.65 billion to $4.85 billion range [18] - Available liquidity at the end of the third quarter was $2.3 billion, with a pro forma consolidated leverage ratio of approximately 3.6 times [18] Business Line Data and Key Metrics Changes - Permian natural gas inlet volumes averaged a record 6.6 billion cubic feet per day in the third quarter, an 11% increase year-over-year [11] - NGL volumes increased by about 180,000 barrels per day compared to the previous year [6] - NGL pipeline transportation volumes averaged a record 1.02 million barrels per day, and fractionation volumes averaged 1.13 million barrels per day [14][15] Market Data and Key Metrics Changes - The company experienced strong growth in both the Midland and Delaware basins, with a noted increase in Delaware activity [92] - The company expects at least 10% growth in Permian volumes for 2025, with strong low double-digit growth anticipated for 2026 [11] Company Strategy and Development Direction - The company announced several new growth projects, including the Speedway NGL transportation expansion and the Yeti gas processing plant [7] - The strategy focuses on executing large capital projects while investing in high-return projects to transform into a large investment-grade integrated NGL infrastructure company [9] - The company aims to grow adjusted EBITDA, increase common dividends per share, and generate significant free cash flow while maintaining a strong balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued Permian volume growth driven by customer success and industry trends [7] - The company is well-positioned to manage potential headwinds from low commodity prices and maintenance on natural gas pipes [51] - Management noted that the expected increase in free cash flow will be durable, even in a strong growth environment [9] Other Important Information - The company plans to recommend an increase in the annual common dividend to $5 per share, a 25% increase from the previous level [19] - The company repurchased $156 million in common shares during the third quarter, totaling $642 million year-to-date [19] Q&A Session Summary Question: How have things unfolded versus original expectations? - Management indicated that volumes have largely materialized consistent with or better than expectations, driven by producer performance and some volatility providing additional marketing opportunities [24] Question: What is the outlook for growth in the Permian? - Management expressed confidence in continued growth, supported by bottom-up forecasts from producers and a strong commercial team [27] Question: Can you discuss operational leverage and future expansions? - Management noted that downstream spending will be modest after major projects come online, with a focus on rateable fracs as volumes grow [36] Question: What is the rationale behind recent project announcements? - Management emphasized a capital-efficient approach, leveraging existing volumes and ensuring operational flexibility for producers [44] Question: How do you view the competitive landscape in the Permian? - Management acknowledged the competitive nature but highlighted their unique assets and strong commercial relationships as key advantages [106]

Financial Data and Key Metrics Changes - Targa Resources reported adjusted EBITDA for Q3 2025 at $1.275 billion, representing a 19% increase year-over-year and a 10% sequential increase [18] - The company expects full-year 2025 adjusted EBITDA to be around the top end of the guidance range of $4.65 billion to $4.85 billion [18] - Available liquidity at the end of Q3 was $2.3 billion, with a pro forma consolidated leverage ratio of approximately 3.6x, within the long-term target range of 3x-4x [18] Business Line Data and Key Metrics Changes - Permian natural gas inlet volumes averaged a record 6.6 billion cubic feet per day in Q3, an 11% increase year-over-year [11] - NGL volumes increased by about 180,000 barrels per day compared to the previous year, driven by growth in the Permian [6] - NGL pipeline transportation volumes averaged a record 1.02 million barrels per day, and fractionation volumes averaged 1.13 million barrels per day in Q3 [14][15] Market Data and Key Metrics Changes - The company noted that October volumes were impacted by producer shut-ins due to low commodity prices and storms, but these volumes have largely returned [11] - The outlook for NGL supply growth remains strong, supported by ongoing projects and expansions in the Permian [15] Company Strategy and Development Direction - Targa Resources is focused on executing large capital projects while investing in high-return projects to transform into a large investment-grade integrated NGL infrastructure company [9] - The company announced several new growth projects, including the Speedway NGL transportation expansion and the Yeti gas processing plant, to accommodate continued volume growth [7] - The strategy emphasizes maintaining a strong investment-grade balance sheet while increasing common dividends and reducing share count [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued Permian volume growth, supported by customer success and a favorable industry trend of rising gas-to-oil ratios [8] - The company anticipates a durable increase in free cash flow, even in a strong growth environment [9] - Management acknowledged some conservatism in Q4 guidance due to potential headwinds from maintenance and commodity price fluctuations [51] Other Important Information - Targa plans to recommend an increase in the annual common dividend to $5 per share, a 25% increase from the previous level, effective Q1 2026 [19] - The company repurchased $156 million in common shares during Q3, bringing year-to-date repurchases to $642 million [18] Q&A Session Summary Question: How have things unfolded versus original expectations? - Management noted that volumes have largely materialized consistent with or better than initial forecasts, driven by producer performance and some volatility providing additional marketing opportunities [24] Question: What is the outlook for growth in the Permian? - Management expressed confidence in continued growth, supported by bottom-up forecasts from producers and a strong commercial position [27] Question: Can you discuss operational leverage and future expansions? - Management indicated that downstream spending will be modest post-2027, focusing on rateable fracs as projects come online [34] Question: What is the rationale behind recent project announcements? - Management emphasized a capital-efficient approach, leveraging existing volumes and ensuring operational reliability for producers [42] Question: How do you view the competitive landscape in the Permian? - Management acknowledged ongoing competition but highlighted Targa's unique capabilities and strong commercial relationships as key advantages [105]

Financial Performance (Q3 2025) - Adjusted EBITDA increased by 19% from Q3 2024 [9] - Adjusted EBITDA increased by 10% from Q2 2025 [15] - Net income attributable to Targa Resources Corp was $478.4 million for the three months ended September 30, 2025 [36] - Adjusted EBITDA was $1,274.8 million for the three months ended September 30, 2025 [36] - Estimated Adjusted EBITDA for full year 2025 is $4,850 million [42] Segment Performance (Q3 2025) - G&P segment operating margin increased by $53 million compared to Q3 2024 [10] - L&T segment operating margin increased by $91 million compared to Q3 2024 [11] - G&P segment operating margin increased by $50 million compared to Q2 2025 [16] - L&T segment operating margin increased by $78 million compared to Q2 2025 [16] - Gathering and Processing adjusted operating margin was $873.7 million [40] - Logistics and Transportation adjusted operating margin was $808.8 million [40] Operational Performance (Q3 2025) - Field G&P Natural Gas Inlet Volumes increased to 6,622 MMcf/d [20] - NGL Production increased to 1,017 MBbl/d [21] - NGL Pipeline Transportation Volumes increased to 1,134 MBbl/d [24]