Financial Data and Key Metrics Changes - For full year 2024, the company reported a net income of $659 million and adjusted EBITDA of $1,136 million, representing a growth of approximately 12% from 2023 [14][18] - The adjusted EBITDA for Q4 was $298 million, an increase from $287 million in Q3, driven by higher throughput volumes [18][19] - The company anticipates adjusted EBITDA for 2025 to be in the range of $1,235 million to $1,285 million, reflecting an approximate 11% growth at the midpoint compared to 2024 [10][22] Business Line Data and Key Metrics Changes - Gas processing volumes averaged 447 million cubic feet per day in Q4, with full year 2024 averaging 420 million cubic feet per day [9][10] - Crude terminaling volumes averaged 127,000 barrels of oil per day in Q4, with a full year average of 123,000 barrels per day [9][10] - Water gathering volumes averaged 130,000 barrels of water per day in Q4, with a full year average of 125,000 barrels per day [9][10] Market Data and Key Metrics Changes - Bakken net production averaged 208,000 barrels of oil equivalent per day in Q4, with a full year average of 204,000 barrels per day, marking a 12% year-over-year increase [7][8] - The company expects gas volumes to grow by more than 25% from 2024 through 2027, driven by Hess' planned development activity and increasing third-party volumes [6][10] Company Strategy and Development Direction - The company plans to maintain annual capital expenditures in the range of approximately $250 million to $300 million through 2027, focusing on disciplined, low-cost investments to meet growing basin demand [12][24] - A new gas processing plant with a capacity of 125 million cubic feet per day is set to begin construction in 2025, expected to support throughput growth through at least the end of the decade [10][12] - The company aims to generate sustainable cash flow and return additional capital to shareholders, with a targeted distribution growth of at least 5% annually through 2027 [16][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory supported by Hess production and third-party opportunities, with a disciplined approach to capital allocation [35][36] - The company anticipates a strong recovery in volumes following severe winter weather impacts in Q1 2025, with expectations for significant growth in EBITDA throughout the year [57][58] - Management highlighted the importance of maintaining a strong balance sheet while prioritizing shareholder returns through unit repurchases and distribution increases [16][25] Other Important Information - The company has returned $1.95 billion to shareholders since 2021 through accretive repurchases, with a distribution per Class A share growth of approximately 55% since 2021 [16][18] - The gross adjusted EBITDA margin for Q4 was maintained at approximately 80%, above the 75% target, indicating strong operating leverage [18] Q&A Session Summary Question: Multi-year growth outlook and EBITDA growth potential - Management explained that the MVCs provide visibility to the volumes underpinning growth, with gas processing expected to drive significant revenue [27][29][30] Question: Long-term outlook in Bakken and potential for M&A - Management confirmed no plans to expand outside of Bakken, focusing on organic growth supported by Hess production and potential third-party volumes [34][35][36] Question: Capital expenditures and future growth CapEx - Management indicated that the increase in CapEx is driven by activity phasing and efficiency improvements, with expectations for a step down in CapEx post-2027 [41][44][45] Question: Capital allocation program and potential changes - Management reiterated confidence in the return on capital framework, emphasizing continued unit repurchases and distribution growth, while considering public participation in repurchases as ownership changes [48][50] Question: Use of leverage and financial flexibility - Management discussed the balance between leverage capacity and excess free cash flow, maintaining a focus on shareholder returns while exploring organic growth opportunities [53][55] Question: Q1 guidance and weather impacts - Management acknowledged the unpredictability of Q1 weather but expressed confidence in recovery and growth in volumes for the remainder of the year [56][57][58]