Financial Data and Key Metrics Changes - Third quarter 2025 net income totaled $940 million or $1.49 per share, a 10% increase compared to the second quarter [8] - Third quarter adjusted EBITDA increased 7% compared to the second quarter, totaling $2.12 billion, which included $7 million of one-time transaction costs [3][8] - Year-to-date, transaction costs included in adjusted EBITDA have totaled $59 million [9] Business Line Data and Key Metrics Changes - The acquired NLink and Medallion assets contributed nearly $470 million in adjusted EBITDA during the third quarter, continuing their meaningful contribution to year-over-year earnings growth [8] - Natural gas liquids (NGL) raw feed throughput volumes increased, with Rocky Mountain region volumes averaging over 490,000 barrels per day, a 5% increase compared to the second quarter [11] - Crude oil volumes increased sequentially, demonstrating resiliency in the Midland gathering business [15] Market Data and Key Metrics Changes - In the Permian Basin, volumes increased 5% compared to the second quarter, averaging 1.55 billion cubic feet per day [16] - The Rocky Mountain region processed volumes averaged 1.7 billion cubic feet per day in the third quarter, a 4% increase compared to the second quarter [17] - Refined products tariff rate benefited from July adjustments, where rates were increased by a mid-single-digit percentage as expected [15] Company Strategy and Development Direction - The company aims to capture approximately $250 million of synergy-related adjusted EBITDA in 2025, with nearly $500 million of synergies realized since the Magellan acquisition [4][5] - The focus remains on operational efficiencies and capturing additional synergies, with a disciplined approach to capital allocation and cash flow generation [6][10] - The company is optimistic about growth opportunities in the Permian Basin and is actively assessing opportunities to expand integrated operations [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong fundamentals and the ability to navigate near-term challenges while delivering results for investors and customers [6][20] - The current commodity price environment is expected to drive moderation and increased optimization of drilling and completion activities across the basins [18] - Management remains confident in the trajectory of earnings growth into 2026, driven by synergies and growth projects coming online [23][29] Other Important Information - The company repurchased more than 600,000 shares of common stock and retired over $500 million in senior notes [8] - The long-term leverage target remains at 3.5 times, expected to be approached in the fourth quarter of 2026 on a run-rate basis [9] - The company is in active discussions regarding numerous potential AI-driven data center projects, leveraging its intrastate assets located in key natural gas supply and demand centers [19] Q&A Session Summary Question: Can you frame up tailwinds versus headwinds for earnings growth into next year? - Management identified synergies and growth projects coming online as tailwinds, while market share growth in the Permian and other areas will also fuel growth [23] Question: How do you think about executing on buybacks versus debt paydown? - The company is starting to be more flexible in capital allocation as it approaches its debt to EBITDA target, allowing for stock buybacks alongside debt management [24] Question: Can you quantify the potential impact of Waha spreads widening? - Management noted that the widening spreads have had a positive impact, leveraging capacity across systems to grow gathering and processing for customers [30] Question: How do you see the Sunbelt Connector project competing in the market? - The company believes the Sunbelt Connector is competitive due to its existing connections and efficient expansions, with significant interest from customers [35] Question: What are the early indications for volumes across supply-push assets? - Management is confident that drilling activity will maintain volume levels flat, with positive growth expected from the Permian and Bakken regions [39][40] Question: Can you provide an update on LPG export commercialization efforts? - The company is pleased with its contracting strategy and continues to see strong interest in its docks for LPG exports [42] Question: Is gas egress a limitation for growth in the Mid-Continent? - Management believes there is still room for growth in the Mid-Continent and is prepared to implement measures if egress becomes a concern [46] Question: How do you view the blending business in a mid-cycle environment? - The blending business has seen a 15% increase in volume year-to-date, positioning the company well for future opportunities as spreads normalize [68]