Financial Data and Key Metrics Changes - The company reported adjusted EBITDA for the second quarter of $1,163 million, an 18% increase year-over-year, primarily driven by higher Permian volumes and margin contributions from the Badlands assets [18][19][21] - The full-year 2025 adjusted EBITDA is estimated to be in the range of $4,650 million to $4,850 million [19] Business Line Data and Key Metrics Changes - In the Permian, natural gas inlet volumes averaged a record 6,300 million cubic feet per day in the second quarter, an 11% increase year-over-year [12] - NGL pipeline transportation volumes averaged a record 961,000 barrels per day, while fractionation volumes averaged 969,000 barrels per day during the second quarter [15][16] - The fractionation volumes were impacted by a planned turnaround, but are now exceeding 1,000,000 barrels per day post-turnaround [16] Market Data and Key Metrics Changes - The company noted that while the Permian rig count has softened, the number of rigs on its system remains largely unchanged, indicating stability in its operations [7] - The demand for natural gas and NGLs is expected to continue increasing, supported by strong customer performance across the value chain [10] Company Strategy and Development Direction - The company is focused on increasing adjusted EBITDA, common dividends per share, and reducing share count while maintaining a strong investment-grade balance sheet [10][21] - The company plans to invest in integrated growth opportunities and return increasing capital to shareholders over the long term [10][21] - The company is preparing for growth in 2027 and beyond by ordering long lead items for additional Permian plants [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth on the Permian system for the remainder of 2025 and into 2026, supported by ongoing discussions with producers [7][9] - The company highlighted its differentiated growth profile, outperforming crude and gas production growth rates over the past five years [8][9] Other Important Information - The company repurchased $324 million in common shares during the second quarter and authorized a new $1 billion share repurchase program [21][22] - The company expects net growth capital spending for 2025 to be approximately $3 billion, with maintenance capital spending of $250 million [20] Q&A Session Summary Question: Thoughts on outperforming the basin - Management noted that the combination of having the largest footprint and being over some of the best rock in the Midland and Delaware Basins contributes to their ability to outperform [25][26] Question: Outlook on NGL margins - Management indicated that they have a growing supply from their gas processing footprint and are well-positioned due to long-term contracts, despite concerns about overbuild and margin pressures [28][30] Question: Competition in the Northern Delaware - Management acknowledged increased competition but emphasized their established capabilities and long-term contracts that provide a competitive advantage [37][42] Question: Capital expenditures for 2026 - Management stated that they will assess producer budgeting cycles to inform their 2026 capital budget, but they expect to continue capital-efficient spending aligned with growth opportunities [46] Question: Confidence in future volume growth - Management expressed confidence based on observed volume ramp-up and the expected contributions from new processing plants coming online [54][56] Question: Expectations for Bull Run extension - Management described the Bull Run extension as a natural extension of their capabilities, supported by existing volumes and expected growth [60][61] Question: Balancing buybacks with other capital uses - Management emphasized an opportunistic approach to share repurchases while maintaining flexibility to invest in organic growth projects [62][64] Question: Performance of Badlands assets - Management confirmed that the Badlands transaction has met expectations, with overall volumes remaining flat but potential for future increases [69][70] Question: Approach to LPG export docks and competition - Management reiterated their strong position due to long-term contracts and the ability to meet growing global demand, despite new entrants in the market [81][83]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA for Q2 2025 of $1,163 million, an 18% increase year-over-year, primarily driven by higher Permian volumes and margin improvements across segments [19][20] - Full-year 2025 adjusted EBITDA is estimated to be in the range of $4,650 million to $4,850 million [20] - The company had $3,500 million of available liquidity at the end of Q2 2025, with a pro forma consolidated leverage ratio of 3.6 times, within the long-term target range of three to four times [20][21] Business Line Data and Key Metrics Changes - Natural gas inlet volumes in the Permian averaged a record 6,300 million cubic feet per day in Q2 2025, an 11% increase year-over-year [12] - NGL pipeline transportation volumes averaged a record 961,000 barrels per day, while fractionation volumes averaged 969,000 barrels per day during the same period [15] - The company experienced a planned turnaround at its fractionation complex, which reduced capacity for two-thirds of Q2, but volumes have since increased to over 1,000,000 barrels per day post-turnaround [15][16] Market Data and Key Metrics Changes - The Permian gas production growth has outpaced crude production, with associated gas growth averaging 13% per year over the past five years, while crude production has averaged 8% [8][9] - The company’s year-over-year volume growth averaged 17%, outperforming both associated gas and crude production [9] - The company is well-positioned for growth due to its footprint across high-quality rock in the Permian Basin and strong relationships with world-class producers [9][10] Company Strategy and Development Direction - The company aims to increase adjusted EBITDA and return capital to shareholders through share repurchases and dividends, while maintaining a strong investment-grade balance sheet [10][22] - The company is focused on integrated growth opportunities, with a capital spending plan of approximately $3,000 million for 2025 [21] - The company is preparing for future growth by ordering long lead items for additional Permian plants and enhancing connectivity through pipeline extensions [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth in volumes for the remainder of 2025 and into 2026, despite some macroeconomic volatility [6][10] - The company noted that ongoing discussions with producers indicate robust growth potential, supported by a strong demand for natural gas and NGLs [10][9] - Management highlighted the resilience of the business model amid commodity price volatility and global trade concerns [18] Other Important Information - The company announced a retirement of a key executive, Scott Pryor, effective March 1, 2026, with Ben Branstetter set to succeed him [4][5] - The company repurchased $324 million in common shares during Q2 2025, continuing its strategy of opportunistic share repurchases [20][22] - A new $1,000 million common share repurchase program was authorized, bringing total available repurchase capacity to approximately $1,600 million [22] Q&A Session Summary Question: Ability to outperform peers in the basin - Management highlighted the largest footprint and strong relationships with active producers as key factors for continued outperformance [26][27] Question: Outlook for NGL margins - Management noted growing supply and long-term contracts as supportive of margins, despite concerns about overbuilding [29][30] Question: Competition in the Northern Delaware - Management acknowledged increased competition but emphasized Targa's established capabilities and strategic positioning in sour gas treatment [38][39] Question: Capital expenditures for future projects - Management indicated that capital expenditures would be informed by producer budgeting cycles and ongoing project efficiencies [47][48] Question: Performance of Badlands assets post-acquisition - Management confirmed that the Badlands assets are performing as expected, with potential for increased production in the future [71][72] Question: LPG export docks performance - Management clarified that while dock loadings were strong, sequential volume fluctuations were due to market dynamics and contract structures [80][84] Question: Impact of new pipeline capacity on pricing - Management expressed optimism about new egress pipelines unlocking the basin and potentially improving pricing dynamics [90][92] Question: Use of third-party NGL transport - Management indicated that utilizing third-party transport allows for capital efficiency and diversification of transport options [93][94] Question: Capital costs for processing plants - Management acknowledged rising costs but emphasized effective cost management strategies to maintain competitive returns [100]

Financial Performance - For the quarter ended June 2025, Energy Transfer LP reported revenue of $19.24 billion, down 7.2% year-over-year, and EPS of $0.32 compared to $0.35 in the same quarter last year [1] - The reported revenue was a surprise of -23.83% compared to the Zacks Consensus Estimate of $25.26 billion, while the EPS met the consensus estimate [1] Key Metrics - Gathered volumes for midstream operations were 21,329.00 BBtu/D, exceeding the average estimate of 20,762.51 BBtu/D [4] - NGLs produced were 1,181 million barrels, surpassing the estimated 1,098.09 million barrels [4] - Adjusted EBITDA for intrastate transportation and storage was $284 million, below the average estimate of $319.2 million, while interstate transportation and storage achieved $470 million, above the estimate of $423.8 million [4] Stock Performance - Shares of Energy Transfer LP returned -0.4% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Hess Midstream LP is conducting its Q1 2025 earnings conference call, indicating a focus on financial performance and operational updates for the quarter [1]. Group 1: Company Overview - The conference call is hosted by Jennifer Gordon, Vice President of Investment Relations, who acknowledges the participation of attendees and mentions the availability of the earnings release on the company's website [3]. - John Gatling, President and COO, is also present to provide insights into the company's operations during the call [5]. Group 2: Financial Reporting - The earnings release for Q1 2025 was issued earlier in the day, highlighting the company's financial performance for the quarter [3]. - The call includes discussions on projections and forward-looking statements, which are subject to various risks and uncertainties [4].