格隆汇1月6日｜加拿大中游能源股也未能幸免于委内瑞拉冲突后引发的普遍价格下跌，但加拿大皇家银 行的Maurice Choy指出，如果跌势持续，这可能会开启买入良机。分析师补充称，特别是如果投资者持 有与该机构一致的观点，即在稳定的安全环境下，通过每年100亿美元的投资将委内瑞拉的产量恢复至 日产300万桶的水平是一项极高难度的挑战。Choy表示，在未来几周和几个月内，中游企业在确认2026 年前景的同时，可能会释放出增长预期大体保持完好的信号，而对于更长期的项目，则会根据上游客户 的信号采取"观望"态度。 ...

Financial Data and Key Metrics Changes - The company provided guidance indicating a 4% growth in EBITDA from 2025 to 2026 and an 8% growth in earnings [6] - The debt to EBITDA ratio is expected to end the year at 3.8 times, within the target range of 3.5 to 4.5 times [6] - Expansion capital expenditures (CapEx) guidance was raised from approximately $2.5 billion to over $3 billion per year for the next few years [6] Business Line Data and Key Metrics Changes - The current backlog of approved expansion projects is $9.3 billion, significantly up from $3 billion two years ago, with 90% of this backlog associated with natural gas projects [9] - The company is evaluating over $10 billion in potential projects, primarily focused on natural gas, driven by similar demand drivers as the existing backlog [13][14] Market Data and Key Metrics Changes - Natural gas demand is expected to grow by over 20% between the end of 2024 and 2030, with estimates ranging from 22 to 28 billion cubic feet per day (BCF) [11] - The growth in demand is primarily driven by LNG exports, power generation, and exports to Mexico [12] Company Strategy and Development Direction - The company sees significant opportunities in the midstream space, particularly in natural gas, and plans to expand its existing asset base to meet market demand [7][12] - The company is focused on maintaining a strong balance sheet to capitalize on M&A opportunities as they arise, while also pursuing organic growth through its project backlog [64][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current regulatory environment, noting improvements in permitting processes, particularly with the Corps of Engineers and FERC [46][47] - There is a recognition of potential supply chain constraints, particularly regarding compression equipment, but current projects are on track [52][56] Other Important Information - The company has a substantial gas storage footprint of 700 billion cubic feet (BCF), with 75% regulated and 25% unregulated [32] - Recent expansions in gas storage facilities have been successful, with ongoing projects expected to enhance capacity [33] Q&A Session Summary Question: What is the current backlog and growth potential? - The current backlog of approved expansion projects is $9.3 billion, significantly up from $3 billion two years ago, with a strong growth outlook in the natural gas sector [9] Question: How does the company view competition in the market? - The company acknowledges competition from other pipelines but believes there is ample opportunity for growth in the natural gas market, particularly in the Southeast [20] Question: What is the company's stance on M&A? - The company remains open to M&A opportunities but emphasizes the need for flexibility and opportunism in pursuing such deals [64][66] Question: How is the regulatory environment impacting operations? - Management noted improvements in the regulatory environment, particularly in permitting timelines, but expressed a desire for further reductions in these timelines [46][48] Question: What are the company's plans for capital returns? - The company plans to maintain a conservative approach to dividend growth to preserve capital for expansion opportunities, with potential for faster growth in the future as projects come online [60][62]

Core Viewpoint - Kinder Morgan's Q3 2025 earnings met estimates, with adjusted EPS of 29 cents and total revenues of $4.15 billion, indicating a positive performance trend [2][3]. Financial Performance - Adjusted EPS for Q3 2025 was 29 cents, matching the Zacks Consensus Estimate, and increased from 25 cents year-over-year [2]. - Total revenues reached $4.15 billion, surpassing the Zacks Consensus Estimate of $4.13 billion and up from $3.70 billion in the prior-year quarter [2]. Segmental Analysis - Natural Gas Pipelines segment saw adjusted EBDA rise to $1.4 billion from $1.27 billion year-over-year, driven by higher transported and gathering volumes [4]. - Product Pipelines segment's EBDA increased to $288 million from $276 million, attributed to higher diesel fuel volumes [5]. - Terminals segment generated EBDA of $274 million, up from $267 million, with liquids utilization at 94.6% [5]. - CO2 segment's EBDA fell to $136 million from $160 million year-over-year [6]. Operational Highlights - Operations and maintenance expenses totaled $786 million, slightly down from $790 million a year ago, while total operating costs rose to $3.08 billion from $2.68 billion [7]. - Kinder Morgan reported a project backlog of $9.3 billion, with a significant portion related to natural gas projects [7]. Balance Sheet - As of September 30, 2025, Kinder Morgan had $71 million in cash and cash equivalents, with long-term debt amounting to $31.3 billion [8]. Outlook - For the year, Kinder Morgan projected net income of $2.8 billion and estimated adjusted EPS of $1.27, with a net debt-to-adjusted EBITDA ratio expected at 3.8x by the end of 2025 [9]. - Recent estimates for the stock have trended upward, indicating a promising outlook [10][12].

Financial Data and Key Metrics Changes - The company generated net income attributable to limited partners of $332 million and adjusted EBITDA of $634 million in Q3 2025, with adjusted gross margin remaining relatively flat compared to the previous quarter [17][20] - Operating and maintenance expenses decreased by 5%, or $12 million quarter-over-quarter, due to reduced asset maintenance and repair expenses [17][18] - Cash flow from operating activities totaled $570 million, generating free cash flow of $397 million [19] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 2% sequentially, driven by higher throughput from the Chipeta plant in Utah and increased volumes in South Texas [7] - Crude oil and NGLs throughput decreased by 4% sequentially, primarily due to decreased throughput from the Delaware Basin [8] - Produced water throughput remained flat sequentially, with expectations for a 40% year-over-year increase in Q4 2025 due to the Aris acquisition [10][19] Market Data and Key Metrics Changes - The Delaware Basin throughput was in line with expectations, with low double-digit year-over-year growth anticipated for natural gas and low to mid-single digits for crude oil and NGLs [10][12] - The DJ Basin is expected to see flat year-over-year throughput growth for natural gas and low to mid-single digits for crude oil and NGLs [12] - The Powder River Basin is projected to have flat throughput growth for both natural gas and crude oil and NGLs [12] Company Strategy and Development Direction - The acquisition of Aris Water Solutions positions the company as a leader in produced water midstream solutions in the Delaware Basin, enhancing its commercial capabilities [4][24] - The company aims to capture $40 million in annual run rate synergies from the Aris acquisition and is focused on organic growth alongside potential inorganic opportunities [4][15][67] - The company is maintaining a disciplined capital allocation framework while planning for significant capital expenditures in 2026 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to address produced water challenges in the Delaware Basin and highlighted the importance of regulatory engagement [4][24] - The company anticipates continued throughput growth in the Delaware Basin, driven by the Aris acquisition and ongoing projects [10][15] - Management acknowledged potential commodity price weakness impacting certain basins but remains optimistic about overall growth prospects [12][58] Other Important Information - The company expects to be at the high end of its previously announced 2025 adjusted EBITDA guidance range of $2.35 billion to $2.55 billion, including contributions from Aris [20] - The company declared a quarterly distribution of $0.91 per unit, consistent with the prior quarter [19] Q&A Session Summary Question: Discussion on O&M expense sustainability - Management confirmed that the reduction in O&M expenses is sustainable and ongoing cost management initiatives are expected to yield further improvements [30][34] Question: Potential for distribution step-ups with major projects - Management indicated that distribution step-ups are possible with major projects or acquisitions, but will be balanced against market conditions and yield considerations [35][37] Question: Update on the Pathfinder project and pore space agreement - Management noted that the pore space agreement enhances project efficiency and flexibility, with positive implications for returns [40][41] Question: Plans for expanding gas and oil infrastructure in New Mexico - Management plans to pursue both organic and inorganic growth opportunities in New Mexico, leveraging the Aris footprint [45][46] Question: Outlook for 2026 and potential portfolio gaps - Management expects overall product growth across all three product lines in 2026, with a focus on the Delaware Basin and cost-cutting initiatives [56][58] Question: Synergies from the Aris acquisition - Management is confident in achieving the $40 million in synergies and anticipates additional operational synergies to emerge in the near term [64][67]

Financial Data and Key Metrics Changes - MPLX reported adjusted EBITDA of $1.8 billion for the third quarter, reflecting a 3% increase year-over-year [15] - Year-to-date adjusted EBITDA reached $5.2 billion, showing a 4% growth compared to the same period last year [5] - Distributable cash flows amounted to $1.5 billion, supporting a return of $1.1 billion to unit holders [5][15] - The company increased its quarterly distribution by 12.5% for the second consecutive year, marking a total annualized base distribution growth of over 50% in the past four years [4][17] Business Line Data and Key Metrics Changes - In the crude oil and products logistics segment, adjusted EBITDA increased by $43 million compared to Q3 2024, driven by higher rates despite flat pipeline volumes and a 3% decline in terminal volumes [13] - The natural gas and NGL services segment saw adjusted EBITDA rise by $9 million year-over-year, with gathered volumes increasing by 3% primarily due to production growth in the Utica [14] - Processing volumes in the Utica increased by 24% year-over-year, while Marcellus processing utilization was at 95% for the quarter [15] Market Data and Key Metrics Changes - MPLX's investments are primarily focused on natural gas and NGL services, with over 90% of total investments allocated to these segments this year [10] - The company is advancing its strategic growth objectives in the Permian Basin, with significant expansions planned for its processing and treating capabilities [8][10] Company Strategy and Development Direction - MPLX aims for mid-single-digit adjusted EBITDA growth anchored in the Marcellus and Permian basins, supported by strategic acquisitions and capital deployment [5][10] - The company is optimizing its competitive position through acquisitions, including full ownership of the Bangle NGL Pipeline System and a Delaware Basin sour gas treating business [6][8] - MPLX is focused on expanding gathering infrastructure and enhancing butane blending at terminals to maximize asset utilization [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining mid-single-digit adjusted EBITDA growth, with expectations for stronger growth in 2026 compared to 2025 [22][24] - The company anticipates that adjusted EBITDA growth will not be linear, with a focus on throughput growth from existing and new assets [17] - Management highlighted the importance of strategic partnerships and operational excellence in driving cash flow growth and delivering capital returns to unit holders [18] Other Important Information - MPLX maintains a solid balance sheet with leverage below its comfort level of four times, entering the quarter with a cash balance of $1.8 billion [16] - The company is progressing on schedule and on budget for its Gulf Coast Fractionation facility and LPG export terminal, expected to enter service in 2028 [9] Q&A Session Summary Question: EBITDA growth outlook - Management indicated that growth from 2025 to 2026 is expected to be stronger than from 2024 to 2025, supported by recent acquisitions and projects coming online [22][23] Question: Power LOI and opportunity set - Management discussed the importance of the LOI with MPC, emphasizing the potential for in-basin demand and lower-cost reliable power for producer customers [26] Question: Permian sour gas opportunity - Management confirmed that no additional AGI wells are needed to run the sour gas asset at full capacity, with a $500 million incremental capital investment planned [32] Question: Data center opportunities - Management is evaluating additional letters of intent for data center opportunities, with a focus on supporting producer customers [34] Question: In-basin demand growth - Management highlighted growth in the Marcellus and Utica regions, with expectations for new greenfield pipelines to support demand [50] Question: Distribution growth policy - Management sees a path for 12.5% distribution growth for the next couple of years, with evaluations ongoing beyond that period [65] Question: Impact of crude oil prices on logistics segment - Management noted strong demand and throughput in the logistics segment, supported by partnerships with Marathon Petroleum [71][72]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was reported at $2.4 billion, with distributable cash flow (DCF) of $1.8 billion, providing a coverage ratio of 1.5x [10][18] - Net income attributable to common unitholders was $1.3 billion, or $0.61 per common unit on a fully diluted basis [14] - The partnership declared a distribution of $0.545 per common unit, representing a 3.8% increase over the same period in 2024 [14] - Total capital investments for Q3 2025 were $2 billion, including $1.2 billion for growth capital projects [17] Business Line Data and Key Metrics Changes - PDH plants showed improvement, with PDH 1 averaging 95% of nameplate capacity, while PDH 2 resumed operations after a turnaround [11] - The company purchased approximately 2.5 million common units under its buyback program for $80 million in Q3 2025 [14] - Total repurchases for the first nine months of 2025 reached $250 million, totaling approximately 8 million common units [15] Market Data and Key Metrics Changes - The company expects an inflation inflection point in discretionary free cash flow in 2026, following a four-year period of significant investments [16] - The consolidated leverage ratio was reported at 3.3x on a net basis, above the target range of 2.75x-3.25x due to capital expenditures on large projects [19] Company Strategy and Development Direction - The company announced a $3 billion increase to its buyback program, raising it from $2 billion to $5 billion, indicating a strong commitment to returning capital to unitholders [12] - Strategic investments in pipelines, marine terminals, and key acquisitions are expected to capitalize on long-term growth from the Haynesville and Permian basins [12] - The company is nearing the end of a multi-year capital deployment cycle that began in 2022, with a focus on organic growth capital expenditures returning to a mid-cycle range of approximately $2 billion-$2.5 billion per year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming projects, including the Bahia Pipeline and Seminole Pipeline Conversion, which are expected to enhance capacity and flexibility [10] - The management team highlighted that the Permian Basin remains primarily an oil basin, with the addition of more gas pipelines being beneficial for producers [23] - Management noted that the macroeconomic environment is not a concern, as they believe price will create supply and demand [26][46] Other Important Information - The company expects to see growth in cash distributions to partners commensurate with distributable cash flow per unit in the near term [17] - The acquisition of natural gas gathering systems from Occidental is expected to unlock significant revenue opportunities [93] Q&A Session Summary Question: Will the new Permian gas pipelines drive more production? - Management indicated that the Permian Basin is primarily an oil basin, and the new pipelines will enhance NGL transportation, benefiting producers [23] Question: Is there unlimited demand for LPG in Asia? - Management noted that both residential/commercial and petrochemical demand are growing, and the U.S. will export what's needed to balance the market [25][26] Question: What is the capital allocation outlook for the next few years? - Management expects organic growth CapEx in the $2 billion-$2.5 billion range, with a focus on splitting free cash flow between buybacks and debt pay down [36] Question: How is the integration of the Occidental assets going? - The acquisition is strategic, with significant organic growth opportunities expected, including an incremental $200 million in revenue [93] Question: What is the outlook for the Permian sour gas opportunity? - Management remains optimistic about the Permian sour gas opportunity, with additional treating capacity expected to come online [98]

Core Insights - Targa Resources Corp. (NYSE:TRGP) is recognized as a leading midstream energy company with a robust infrastructure connecting North American natural gas and natural gas liquids to key markets, providing stable fee-based revenue streams for long-term investors [1][4] Group 1: Recent Developments - In September 2025, Targa launched the Forza Pipeline Project in the Delaware Basin, a 36-mile pipeline capable of transporting up to 750,000 dekatherms per day, enhancing its capacity to meet rising demand for cleaner fuel infrastructure [2] - Approximately 90% of Targa's earnings are derived from multi-year, fee-based contracts, which protect the company from commodity price fluctuations [4] Group 2: Market Position and Growth Potential - BMO Capital initiated a "Buy" rating for Targa, highlighting its strong asset base and strategic positioning in the Delaware and Midland basins, making it a top stock in the midstream energy sector [3] - Targa's controlling position in the Mont Belvieu fractionation hub, along with strong insider ownership and improving EBIT margins, bolsters its long-term growth outlook [4]

Summary of ONEOK Fireside Chat - September 30, 2025 Company Overview - **Company**: ONEOK (NYSE: OKE) - **Industry**: Midstream Energy Key Points and Arguments Strategic Acquisitions - ONEOK has been highly acquisitive in the midstream space, doubling its size through mergers and acquisitions (M&A) since the early 2000s [2][3] - The company has established specific criteria for future acquisitions, focusing on projects that are credit accretive and provide scale [4][8] - Recent acquisitions include Magellan, Easton, EnLink, and Medallion, with five acquisitions completed in two years [5][4] Market Position and Integration - ONEOK is currently focused on integrating recent acquisitions and extending existing assets rather than pursuing new acquisitions aggressively [6][7] - The company aims to diversify its operations beyond the Bakken region, seeking demand-pull businesses [6][7] Volume Growth and Market Dynamics - The company anticipates modest volume growth across key basins, including Bakken, Mid Continent, and Permian, despite some winter-related volume declines [12][19] - The Mid Continent region has shown unexpected growth, particularly in the Cherokee formation [13][14] - The Permian Basin continues to grow, with producers becoming more efficient in drilling operations [20][21] Financial Outlook - ONEOK targets mid to upper single-digit growth in EBITDA for 2026, driven by volume growth and capital projects [23] - The company is completing several projects that will contribute to incremental growth, including the Denver expansion project [27][28] Risks and Market Sentiment - The primary risk to achieving growth targets is potential slowdowns in producer activity due to fluctuating crude oil prices [30][31] - There is skepticism in the market regarding the company's ability to model the impact of multiple acquisitions on earnings [10][11] New Projects and Infrastructure - The Sunbelt Connector project aims to address growing demand in Phoenix, with plans to connect refined products from various regions [33][34] - The company is optimistic about the returns from this project, which will include a larger pipeline to accommodate future demand [35][36] Capital Expenditure and Financial Strategy - ONEOK's growth capital expenditure (CapEx) is projected to remain around $3 billion, with expectations for a decrease in future years as projects are completed [40][42] - The company plans to utilize tax savings from new legislation to enhance cash flow and reduce leverage [42] Ethane Market and Export Opportunities - There is potential for increased ethane recovery in the Mid Continent region due to rising demand from export projects [47][49] - ONEOK is supportive of ethane export projects, recognizing their positive impact on pricing and demand [51][52] Natural Gas and LNG Demand - The company is well-positioned to benefit from increasing LNG demand, particularly in Louisiana, where it has seen unexpected growth in natural gas assets [55][56] - The Mid Continent region is viewed as an option for natural gas production, with expectations for increased activity as prices rise [57][58] Competition and Market Share - ONEOK holds a 60% market share in the Bakken for gas processing, with limited competition expected to impact its operations significantly [71][72] - The company maintains strong relationships with producers, which helps mitigate competitive risks [75] Additional Important Insights - The company is expanding its gas storage capabilities to manage increased gas flow and maintenance needs [66][68] - ONEOK's integrated systems provide a competitive advantage, allowing for streamlined operations and customer relationships [75]

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]