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 ...

Financial Data and Key Metrics Changes - In Q1 2025, the company generated $274 million of EBITDA, representing a 3% year-over-year increase, driven by higher gathering and processing volumes, with processing volumes setting a record at 1.65 Bcf per day [12][13] - Free cash flow after dividends was $79 million, a 7% increase year-over-year, marking the eleventh consecutive quarter of positive free cash flow after dividends [13] - Leverage declined to approximately 2.9 times as of March 31, 2025, indicating improved financial health [13][14] Business Line Data and Key Metrics Changes - The company reported an increase in gathering and processing volumes, with expectations for low to mid single-digit year-over-year growth in gathering volumes for 2025 compared to 2024 [12] - The capital expenditures as a percentage of EBITDA stood at 17%, showcasing the company's capital efficiency compared to peers in the midstream industry [14] Market Data and Key Metrics Changes - The Appalachian region has seen a surge in natural gas demand, particularly for power generation and data centers, with expectations for significant gas supply requirements for decades to come [8][10] - The percentage of data centers expected to be powered by natural gas increased from 50% to 70%, indicating a growing market opportunity [10] Company Strategy and Development Direction - The company is focused on capital efficiency and returning capital to shareholders, with plans to allocate approximately 65% of its EBITDA for dividends, debt reduction, and share repurchases [14][15] - The strategy includes a flexible capital allocation approach to direct funds to the highest return opportunities, with a focus on maintaining low debt levels [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for natural gas demand, particularly in the context of data centers and industrial uses in the Appalachian region [21][22] - The company is well-positioned to capitalize on growth opportunities due to its significant infrastructure and investment-grade upstream counterparties [9][10] Other Important Information - The company has achieved substantial reuse savings from compressor station projects, totaling approximately $30 million at the Torrey's Peak station and over $50 million across three stations [6] - The company has secured materials and pricing for pipelines through 2026, mitigating potential impacts from tariffs and macroeconomic factors [7] Q&A Session Summary Question: Potential for in-basin demand growth - Management noted ongoing discussions about local power demand, particularly for data centers, and expressed confidence in the company's infrastructure to support this growth [21][22] Question: Outlook for propane and risk mitigation strategy - Management reiterated confidence in the long-term outlook for propane, emphasizing its unique position in the residential and commercial markets [23][26] Question: Joint venture outlook and liquid-rich production - Management indicated comfort with current production levels and noted that future evaluations would depend on market prices and long-term outlooks [27][29] Question: Data centers commercialization and AM's benefits - Management stated that conversations are ongoing regarding infrastructure build-out to meet demand, but specifics are still early [34] Question: Capital allocation strategy and M&A opportunities - Management confirmed a continued focus on debt reduction and share buybacks while remaining open to strategic M&A opportunities [35][36] Question: LPG market impact on AM's volumes - Management indicated that current natural gas prices would not significantly impact production levels, maintaining a stable operational approach [40][41] Question: Cost optimization strategies - Management acknowledged potential opportunities for cost optimization but noted that discussions are still in early stages [42][43] Question: Water service expectations - Management confirmed expectations to service 70 to 75 wells as previously guided, anticipating similar volumes in Q2 [46]

Financial Data and Key Metrics Changes - Antero Midstream generated $274 million of EBITDA in Q1 2025, representing a 3% year-over-year increase, driven by higher gathering and processing volumes, with processing volumes setting a company record at 1.65 Bcf per day [12] - Free cash flow after dividends was $79 million, a 7% increase year-over-year, marking the eleventh consecutive quarter of positive free cash flow after dividends [13] - Leverage declined to approximately 2.9 times as of March 31, 2025, indicating improved financial stability [13] Business Line Data and Key Metrics Changes - The company reported an increase in gathering and processing volumes, with expectations for low to mid single-digit year-over-year growth in gathering volumes for 2025 compared to 2024 [12] - Capital expenditures as a percentage of EBITDA stood at 17%, highlighting Antero Midstream's capital efficiency compared to peers in the midstream industry [14] Market Data and Key Metrics Changes - The Appalachian region is experiencing significant growth in natural gas demand, particularly for power generation and data centers, with expectations for natural gas demand to double for powering data centers by 2030 [10] - The percentage of data centers expected to be powered by natural gas has increased from 50% to 70%, indicating a strong market trend [10] Company Strategy and Development Direction - Antero Midstream is focused on capital efficiency and returning capital to shareholders, with plans to allocate approximately 65% of its EBITDA for dividends, debt reduction, and share repurchases [15] - The company is well-positioned for future growth due to its investment-grade upstream counterparty and extensive natural gas and water systems in the region [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for natural gas demand, particularly in the Appalachian region, and highlighted ongoing discussions regarding local power demand [21] - The medium to long-term outlook for the company is viewed as increasingly positive, with a flexible capital allocation strategy to capitalize on high-return opportunities [16] Other Important Information - Antero Midstream has achieved significant reuse savings of approximately $30 million at the Torrey's Peak compressor station and over $50 million across all three stations constructed with relocated underutilized units [6] - The company has secured materials and pricing for its capital projects through 2026, minimizing impacts from tariffs and macroeconomic factors [7] Q&A Session Summary Question: Potential for in-basin demand growth - Management noted ongoing discussions about local power demand, particularly for data centers, and expressed confidence in Antero Midstream's infrastructure to support future growth [21][22] Question: Outlook for propane and risk mitigation strategy - Management reiterated confidence in the long-term outlook for propane, emphasizing its unique position in the residential and commercial markets [23][26] Question: Joint venture production outlook - Management indicated that current production is running about 4% over nameplate capacity, with potential for reevaluation based on future prices and market conditions [28][29] Question: Capital allocation strategy - Management confirmed a continued focus on debt reduction and share buybacks, while remaining open to M&A opportunities as they arise [35][36] Question: Water service expectations - Management expects to service a similar number of wells in Q2 as in Q1, maintaining guidance of 70 to 75 wells serviced [46][47]

Amplify Energy Corporation (AMPY) , a U.S.-based exploration and production company, recently announced that it has signed a termination agreement with Juniper Capital Advisors, L.P., for their previously announced merger deal. Both parties mutually agreed upon the decision. The decision was primarily influenced by extreme market volatility, likely resulting from recent disruptions in the energy sector.Per the terms of the Termination Agreement, Juniper Capital Advisors is expected to receive $800,000 in ca ...

Core Insights - Elliott Investment Management is a top-five shareholder in Phillips 66 and has launched a podcast series called "Streamline 66" to discuss the company's operations and potential value-unlocking strategies [1][5] Group 1: Podcast Insights - The latest episode features Michael Heim, a founder of Targa Resources, who emphasizes the need for Phillips 66 to adopt a strategy focused on organic growth and to have a board that supports this direction [2][6] - Heim notes that Phillips 66 possesses high-quality assets located in major U.S. basins, which should allow it to compete effectively with peers if managed properly [6] Group 2: Proxy Solicitation - Elliott has filed a definitive proxy statement with the SEC to solicit votes for its slate of director nominees at the upcoming annual meeting of Phillips 66 [4] - Stockholders are encouraged to review the proxy statement and related documents for important information regarding the election and the participants in the solicitation [4] Group 3: Company Background - As of December 31, 2024, Elliott manages approximately $72.7 billion in assets and has a diverse investor base, including pension plans and sovereign wealth funds [5]