Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $243 million for the second quarter, with distributable cash flow of $153 million and free cash flow of $8 million [15] - Adjusted EBITDA guidance for 2025 has been revised to a range of $1,030 million to $1,090 million, reflecting a 5% decrease from previous estimates [16][20] - The company expects to achieve an annualized adjusted EBITDA of approximately $1,200 million in the fourth quarter of 2025, representing a 24% year-over-year growth [14] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated adjusted EBITDA of $151 million, up 3% year-over-year, primarily due to increased processed gas volumes from Northern Delaware assets [15] - The Pipeline Transportation segment also saw adjusted EBITDA of $97 million, up 3% year-over-year, benefiting from increased ownership in EPIC and modest outperformance at PHP [15] Market Data and Key Metrics Changes - The company has revised its full-year processed gas volume growth assumption from 20% to mid-teens due to delays in the commissioning of Kings Landing and producer development activities [16] - The company anticipates exiting 2025 with processed gas volumes at approximately 2 billion cubic feet per day [17] Company Strategy and Development Direction - The company is focused on expanding its footprint and volumes in Northern Delaware, with significant progress on capital growth projects [6][11] - The construction of the ECCC pipeline is expected to enhance the movement of sweet rich gas from New Mexico to Texas, with in-service anticipated in 2026 [10] - The company is pursuing both organic and inorganic growth opportunities, with a preference for organic growth at this time due to current market valuations [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance despite macroeconomic uncertainties and geopolitical pressures [6] - The company is optimistic about the potential for significant earnings growth and free cash flow generation through the end of the decade [14] - Management noted that while commodity price volatility has created headwinds, they expect to see a meaningful ramp in processed gas volumes as Kings Landing comes online [17][19] Other Important Information - The company has repurchased $173 million of its Class A common stock since May, representing nearly 2.5% of outstanding shares [21] - The company is experiencing significant cost inflation, particularly in electricity and leased compression, but expects unit costs to decrease as volumes ramp up [19] Q&A Session Summary Question: Can you walk through the building blocks to reach the $1,200 million run rate for Q4 2025? - Management explained that the building blocks include expected contributions from Kings Landing and other projects, with confidence in achieving the target despite some delays [28][30] Question: What is the expected cadence for share buybacks moving forward? - Management indicated that buybacks will depend on stock price and market conditions, with a focus on capital allocation based on fundamental value [34] Question: Can you provide insights on NGL recontracting and its potential timing? - Management noted that recontracting could occur earlier than expected due to increased interest from NGL pipeline operators [38][40] Question: What is the current status of Kings Landing 2 and its timeline for FID? - Management stated that they are midway through the process, with key components like acid gas injection and electricity being critical for progress [44] Question: How does the company view the macroeconomic environment and its impact on operations? - Management highlighted that while there are shifts in timing for producer activity, the overall quality of rock remains strong, and they expect to catch up with development plans [56][60] Question: How has the hedging strategy evolved in light of commodity price volatility? - Management indicated that they are more active in hedging and expect the impact of pricing to be relatively flat moving into 2026 [82] Question: What are the expectations for capital expenditures in the coming years? - Management emphasized the need to prioritize capital allocation carefully, focusing on high-return projects while managing overall spending [88][90]

Financial Data and Key Metrics Changes - For Q2 2025, net income was $180 million compared to $161 million in Q1 2025, and adjusted EBITDA increased to $316 million from $292 million in Q1 2025 [16][18] - Adjusted EBITDA margin for Q2 was maintained at approximately 80%, above the target of 75%, indicating strong operating leverage [17] - The company expects adjusted free cash flow of approximately $725 million to $775 million for the full year 2025, with capital expenditures projected at $300 million [10][19] Business Line Data and Key Metrics Changes - In Q2 2025, throughput volumes averaged 449 million cubic feet per day for gas processing, 137,000 barrels per day for crude terminaling, and 138,000 barrels per day for water gathering, with gas processing and oil terminaling volumes increasing by approximately 6% and 10% respectively from Q1 2025 [12][13] - Gathering revenues increased by approximately $16 million, processing revenues by $9 million, and terminaling revenues by $4 million compared to Q1 2025 [17] Market Data and Key Metrics Changes - The company is reaffirming its full-year 2025 oil and gas throughput guidance, expecting volume growth in Q3 2025, partially offset by higher seasonal maintenance activity [13] - The North Dakota Pipeline Authority anticipates that Bakken gas will grow over the long term, with oil remaining relatively flat [32] Company Strategy and Development Direction - The company aims to continue delivering operational excellence and financial performance, with a focus on a disciplined, low-risk investment strategy to meet basin demand while maintaining reliable operations [14] - The financial strategy prioritizes return of capital to shareholders, with a targeted annual distribution growth of at least 5% through 2027 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and growth trajectory, with expectations of approximately 10% volume growth across all oil and gas systems in 2025 compared to 2024 [9] - The company highlighted the importance of the partnership with Chevron to optimize the Bakken development, maintaining a focus on high utilization of infrastructure [60][61] Other Important Information - Hess Midstream's senior unsecured debt was upgraded to an investment grade rating of BBB- following the Chevron merger [10] - The company has returned over $2 billion to shareholders through repurchases since 2021 and increased distributions per Class A share by more than 60% [10] Q&A Session Summary Question: Insights on Chevron's view on Bakken and rig count changes - Management indicated that they are currently running four rigs and have seen strong upstream performance, with updates to the development plan expected towards the end of the year [22][24] Question: Capital allocation and appetite for buybacks - Management confirmed that they expect to continue repurchases at a rate of approximately $100 million per quarter, maintaining their financial flexibility of $1.25 billion through 2027 [25][26] Question: Trends in Gas-to-Oil Ratios (GORs) and Bakken outlook - Management noted that GORs are expected to increase over the long term, with Bakken gas anticipated to grow, while oil production remains stable [31][32] Question: Guidance and performance expectations - Management expressed confidence in maintaining guidance, with expectations of higher EBITDA in the second half of the year despite some seasonal maintenance costs [41][42] Question: Governance structure post-GIP exit - Management emphasized the importance of balanced governance and the implementation of mechanisms requiring independent director approval for key decisions [52][53] Question: Chevron's involvement in buybacks - Management clarified that there would be no change in the buyback strategy, with participation expected to align with public ownership levels [45][46]

Core Insights - Energy Transfer LP (ET) is strategically positioned with a vast midstream infrastructure network of nearly 140,000 miles of pipelines across North America, providing a competitive advantage in natural gas, NGL, crude oil, and refined product transportation [1][2][8] - The company's geographic and product diversification enhances cash flow stability and reduces exposure to single commodities or regions, supported by long-term contracts and fee-based earnings [2][4] - Energy Transfer is well-positioned to capitalize on the growing demand for U.S. energy exports, with Gulf Coast assets enabling it to serve international markets [3][5] Infrastructure and Operations - The extensive midstream infrastructure allows Energy Transfer to capture volumes from multiple basins, including Permian, Eagle Ford, and Marcellus, linking them to key demand centers and export hubs [1][2] - The focus on operational efficiency and cost discipline positions the company for sustained growth and strong cash flows [4] Market Position and Financial Performance - Energy Transfer's units have increased by 10.1% over the past year, outperforming the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 6.3% [11] - The Zacks Consensus Estimate indicates an increase in earnings per unit of 2.86% for 2025 and 4.26% for 2026 [7] - Energy Transfer units are currently trading at a trailing 12-month EV/EBITDA of 10.25X, below the industry average of 11.53X, indicating undervaluation [9] Export Capabilities - The company's Gulf Coast assets, including LNG and NGL export terminals, are crucial for accessing global markets and enhancing margins [3][5] - Currently, 80 countries and territories benefit from Energy Transfer's exports, highlighting its international reach [3]

Core Insights - Energy Transfer LP (ET) benefits from a fee-based contract model that provides consistent cash flows and shields the company from commodity price volatility [1][2][4][5] Company Overview - Energy Transfer generates nearly 90% of its earnings from fee-based contracts, with only 10% from commodity and spread exposure, indicating a well-balanced asset mix that supports strong earnings [2][9] - The company operates 130,000 miles of pipelines across 44 states, facilitating the transportation of oil and gas products from major basins such as the Permian, Eagle Ford, and Marcellus [3] Financial Performance - The stable cash flow from fee-based contracts supports Energy Transfer's strong distribution policy and debt reduction efforts, maintaining a solid credit profile and lowering financing costs [4] - The Zacks Consensus Estimate for Energy Transfer's earnings per unit for 2025 and 2026 has increased by 2.86% and 4.26%, respectively, over the past 60 days [8] Market Position - Energy Transfer's units have appreciated by 10.2% over the past year, outperforming the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 6% [10] - The company's units are currently trading at a trailing 12-month EV/EBITDA of 10.17X, which is below the industry average of 11.39X, suggesting that the firm is undervalued compared to its peers [9][12] Industry Context - Midstream operators like Energy Transfer leverage fee-based contracts to generate stable revenues, allowing them to focus on operational efficiency and capital discipline [6] - Other companies in the sector, such as Enterprise Products Partners and Kinder Morgan, also rely heavily on fee-based income to maintain strong cash flows and support infrastructure expansions [7]

Company Overview - Summit Midstream Corporation (NYSE: SMC) has effectively managed a significant debt burden while facing challenges in the oil and gas market [2]. Performance Analysis - The company has underperformed since the last recommendation due to weak oil and gas pricing impacting continued drilling activities [2]. Investment Strategy - The Value Portfolio focuses on constructing retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2].

June 17, 2025 Forward-Looking Statements & Non-GAAP Financial Measures Disclosure Investor Contacts Blake Fernandez NGL Business Divestment Establishing Midstream Crude Oil "Pure Play" Vice President, Investor Relations Blake.Fernandez@plains.com Michael Gladstein Director, Investor Relations Michael.Gladstein@plains.com Investor Relations 866-809-1291 plainsIR@plains.com 2 ▪ Except for the historical information contained herein, the matters discussed in this presentation consist of forward-looking stateme ...

Financial Data and Key Metrics Changes - For Q1 2025, net income was $161 million, down from $172 million in Q4 2024 [11] - Adjusted EBITDA for Q1 2025 was $292 million, compared to $298 million in Q4 2024, primarily due to lower volumes and revenues [11] - Total revenues, excluding pass-through revenues, decreased by approximately $13 million, driven by lower throughput volumes [11] - Adjusted free cash flow for Q1 2025 was approximately $191 million [12] Business Line Data and Key Metrics Changes - Gas processing throughput averaged 424 million cubic feet per day, crude terminaling averaged 125,000 barrels per day, and water gathering averaged 126,000 barrels per day [5] - Processing revenues decreased by approximately $7 million, and gathering revenues decreased by approximately $6 million due to lower throughput volumes [11] Market Data and Key Metrics Changes - Hess reported first quarter net production for the Bakken averaged 195,000 barrels of oil equivalent per day, with expectations for Q2 production to be in the range of 210,000 to 215,000 barrels, reflecting a 9% increase at the midpoint compared to Q1 [5] Company Strategy and Development Direction - The company remains focused on disciplined, low-risk investments to meet basin demand while maintaining reliable operations and strong financial performance [7] - Capital expenditures for 2025 are expected to total approximately $300 million, unchanged from previous guidance [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong recovery in volumes following challenging weather conditions in January and February [42] - The company anticipates adjusted EBITDA in the second half of 2025 to be approximately 11% higher than in the first half [13] Other Important Information - The company has returned $1.95 billion to shareholders since the beginning of 2021 through share repurchases and has increased distributions per Class A share by approximately 57% since 2021 [9] - The company expects to generate over $1.25 billion of financial flexibility through 2027 for incremental shareholder returns [10] Q&A Session Summary Question: Bakken outlook in light of ongoing macroeconomic volatility - Management noted that activity levels remain stable, with no changes in Hess's plans to run four rigs for the rest of the year, supported by established MVCs through 2027 [19][20] Question: Volumes in excess of MVCs and performance against MVCs - Management indicated that MVCs are set at approximately 80% of nomination, with third parties expected to represent about 10% of total volume [24] Question: Risk of rig reduction in the current macro environment - Management reaffirmed that they are looking past short-term volatility and expect consistent activity levels in the Bakken [30][31] Question: Buybacks and secondaries - Management clarified that there is no specific plan for secondaries and expects to continue multiple repurchases per year, with flexibility for $1.25 billion through 2027 [36][37] Question: Gas processing volumes recovery - Management reported a strong recovery in volumes and expressed optimism about meeting guidance for the year [42][43] Question: Impact of oil prices on rig count - Management stated that they are prepared for price volatility and expect to maintain the four-rig program, with improved well economics reducing breakeven costs [45][48] Question: Gas growth in the basin and egress - Management anticipates gas volumes to continue increasing over time, supported by existing export agreements [55][66]