Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [5][20] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [12] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, contributing to a record $8.7 billion for the full year [12][14] - The distribution declared for Q4 2025 was $0.55 per common unit, a 2.8% increase from Q4 2024 [12] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [7] - The company is fully contracted on its ethane export terminals and processing trains, with significant growth expected in 2026 and double-digit growth anticipated in 2027 [8][18] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 per barrel lower than in 2024, impacting pricing and spreads [6] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs in the following year [9] Company Strategy and Development Direction - The company aims for modest growth in 2026, with expectations of double-digit growth in 2027 as new assets ramp up [8][18] - The partnership with Exxon is seen as a significant opportunity, with plans to expand the Bahia pipeline to 1 million barrels per day [9][71] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has changed, with lower commodity prices affecting margins [6] - The company expects discretionary free cash flow to be around $1 billion in 2026, with a focus on buybacks and debt retirement [19] Other Important Information - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [14] - The company has returned $5 billion of capital to equity investors in 2025, with a payout ratio of 58% [14] Q&A Session Summary Question: Outlook for 2026 and 2027 growth - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with modest cash flow and EBITDA growth anticipated [28] Question: NGL export cadence and earnings contribution - Management explained that the ramp-up of earnings from NGL exports will continue into 2026, with full utilization expected by the second quarter [31] Question: Impact of Waha prices on operations - Management clarified that the company benefits from both low and high Waha prices through gas transport capacity and storage assets [34] Question: Producer customers' plans for 2026 - Management reported that Midland volumes are outperforming expectations, with a record number of well connects [36] Question: Negotiating power of large EMPs - Management expressed confidence in their ability to negotiate favorable contracts regardless of the size of the EMPs involved [41] Question: Buyback strategy and pace - Management confirmed that 50%-60% of free cash flow is expected to be allocated towards buybacks, with a mix of opportunistic and programmatic purchases [50] Question: Demand trends in international markets - Management noted that demand for U.S. LPG remains resilient, with strong interest in export capacity [55]

Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [5][22] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [12] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, contributing to a record $8.7 billion for the full year [12][15] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [6][7] - The company is fully contracted on its ethane export terminals and processing trains, with expectations for modest growth in 2026 and double-digit growth in 2027 as new assets ramp up [8][19] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 a barrel lower than in 2024, impacting price spreads and overall performance [6] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs by next year [9] Company Strategy and Development Direction - The company aims for modest adjusted EBITDA and cash flow growth in 2026, with a target of 10% growth in 2027 as new assets come online [19][22] - The partnership with ExxonMobil is seen as a significant opportunity, with plans for expansion and collaboration on various projects [9][72] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is shaped by new market realities, including lower commodity prices and weaker spreads [6][19] - The company expects discretionary free cash flow to be around $1 billion in 2026, with a focus on buybacks and debt retirement [20][21] Other Important Information - The company repurchased approximately $50 million of its common units in Q4 2025, totaling about $300 million for the year [14] - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [15][16] Q&A Session Summary Question: Outlook for 2026 and 2027 growth - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with a more favorable outlook for 2027 [30] Question: NGL export cadence and earnings contribution - Management explained that the Neches River Terminal's ramp-up will continue into 2026, with full utilization expected by the second quarter [32] Question: Impact of Waha prices on operations - Management clarified that low Waha prices benefit gas transport capacity, while higher prices allow for monetization through storage assets [35] Question: Producer customers' plans for 2026 - Management reported that Midland volumes are outperforming expectations, with a record number of well connections [37] Question: Negotiating power of larger E&Ps - Management expressed confidence in their ability to negotiate favorable contracts regardless of E&P size [42] Question: Buyback strategy and methodology - Management confirmed that 50%-60% of discretionary free cash flow is expected to be allocated towards buybacks [52] Question: Demand trends in international markets - Management noted resilient demand for U.S. LPG in new markets, indicating healthy long-term interest in export capacity [57] Question: Opportunities for collaboration with Exxon - Management highlighted ongoing collaboration with Exxon across multiple projects, emphasizing the potential for future growth [72]

Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [4] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [11] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, leading to a record $8.7 billion for the full year [11][12] - The distribution declared for Q4 2025 was $0.55 per common unit, a 2.8% increase from Q4 2024 [11] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [5] - The company has fully contracted its ethane export terminals and processing trains, with expectations for modest growth in 2026 and double-digit growth in 2027 as assets ramp up [6][17] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 per barrel lower than in 2024, impacting pricing and spreads [4] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs by next year [7][8] Company Strategy and Development Direction - The company aims for modest adjusted EBITDA and cash flow growth in 2026, with a target of 10% growth in 2027 [17] - The partnership with ExxonMobil is seen as a significant opportunity, with plans to expand the Bahia pipeline to 1 million barrels per day [14][68] - The company is focusing on long-term agreements with producers and petrochemical customers to support growth in various segments [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is shaped by new market realities, including lower crude oil prices and weaker commodity-sensitive business performance [4][5] - The management expressed confidence in the company's ability to navigate challenges and highlighted strong customer relationships as a key driver of future success [11] Other Important Information - The company repurchased approximately $50 million of its common units in Q4 2025, totaling about $300 million for the year [12] - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [13] Q&A Session Summary Question: Can you walk us through the 2026 growth outlook? - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with modest cash flow and EBITDA growth anticipated [26][28] Question: Can you expand on the NGL export cadence and earnings contribution? - Management explained that the ramp-up of earnings from the Matrix River expansion will continue into 2026, with full utilization expected by the second quarter [30] Question: How does EPD benefit from changes in Waha prices? - Management stated that the company benefits from both low and high Waha prices through gas transport capacity and storage assets [32] Question: What are producer customers saying about their plans for 2026? - Management reported that Midland volumes are outperforming expectations, with a record number of well connects and significant growth anticipated in the Delaware Basin [35] Question: Can you discuss the partnership with Exxon and future opportunities? - Management expressed optimism about the partnership with Exxon, highlighting multiple areas for collaboration and potential growth [68] Question: What is the outlook for the Haynesville Acadian expansion? - Management confirmed that the expansion is driven by a mix of private and public producers, enhancing the gathering system's capacity [82]

Core Viewpoint - L&T Onshore has secured a significant contract from Petronet LNG for the Dahej Petrochemical Complex, which involves the engineering, procurement, construction, and commissioning of large double-wall storage tanks for LNG, ethane, and propane [1][3]. Group 1: Contract Details - The contract value is estimated to be between Rs25 billion ($275.19 million) and Rs50 billion [2]. - The project will be executed on a lump sum turnkey basis and includes facilities for ethane and propane handling to support a propane dehydrogenation and polypropylene plant [3]. Group 2: Strategic Importance - This project is part of India's first integrated petrochemical complex, which utilizes cold energy from an LNG terminal, aiming to address the domestic polypropylene demand-supply gap [4][5]. - The initiative aligns with the Indian Government's Aatmanirbhar Bharat vision, enhancing local petrochemical manufacturing capabilities [5][6]. Group 3: Company Statements - E S Sathyanarayanan, head of L&T Onshore, emphasized the contract as a testament to the company's expertise in complex EPCC projects and commitment to quality and safety [4]. - Subramanian Sarma, deputy managing director and president of Larsen & Toubro, highlighted the order as a milestone in strengthening indigenous petrochemical capacity [6].

Core Insights - Petrobras and Braskem have signed long-term feedstock supply contracts valued at $17.8 billion, marking a significant milestone in the Brazilian petrochemical industry [1][2][18] Group 1: Overview of the Agreements - The agreements consist of two major contracts: one for petrochemical naphtha worth $11.3 billion and another for natural gas liquids (NGLs) worth $5.6 billion, set to commence in January 2026 [3][4] - The naphtha supply deal will provide 4.116 million tons in 2026, increasing to 4.316 million tons by 2030, ensuring a stable supply for Braskem's operations [5][6] Group 2: Strategic Shift and Expansion - Braskem is transitioning from naphtha to more competitive NGLs like ethane, aiming to enhance Brazil's position in global petrochemical production [2][11] - The $5.6 billion contract for ethane, propane, and hydrogen is crucial for expanding Braskem's Duque de Caxias facilities, expected to run for 11 years starting in 2026 [6][7] Group 3: Long-term Supply Commitments - From 2026 to 2028, Petrobras will supply 580,000 tons of ethylene equivalent annually, increasing to 725,000 tons per year starting in 2029, supporting Braskem's expansion plans [10][11] - Additional propylene supply agreements valued at approximately $940 million will further support Braskem's diverse production lines, ensuring access to necessary feedstocks [14][15] Group 4: Strategic Influence and Future Outlook - Petrobras is increasing its influence over Braskem as Novonor plans to divest its stake, indicating a trend of state-controlled entities shaping Brazil's petrochemical sector [12][13] - The collaboration between Petrobras and Braskem is expected to unlock nearly $800 million in investments, driving growth and modernization in the Brazilian petrochemical industry [7][18]

Core Insights - The LPG shipping market is increasingly influenced by global energy and petrochemical flows rather than short-term freight volatility [2] - BW LPG is the largest owner-operator in the VLGC sector, while Dorian LPG operates solely in this sector with 27 vessels [2] - Navigator Gas has the world's largest fleet of handysize liquefied gas carriers, operating 57 semi- or fully-refrigerated vessels [3] U.S. Production and Global Use - LPG production is expected to grow by 25-32% by 2030, driven by the gassy nature of maturing shale basins like the Permian [4] - LPG is gaining traction as a marine fuel, with companies adopting dual-fuel propulsion for new vessels [4] - The consolidation of naphtha-based petrochemical capacity in Europe is positive, as replacement capacity in Asia is more LPG-intensive, increasing ton-mile demand [4] Capital Discipline - Dividends are highlighted as the primary method for returning value to shareholders, with a stronger market response to dividends compared to buybacks [5] - Dorian LPG increased its quarterly cash dividend to $0.07/share from $0.05/share and raised the net income payout percentage to 30% from 25% [5] - Navigator Gas has repurchased an additional $50 million of shares for three consecutive years, with plans for continued share repurchases in 2026 [5] Fleet Supply, Regulation, and Environmental Transition - The VLGC sector has a 25% orderbook to fleet ratio, but strong demand growth and an aging fleet provide balance [6] - Navigator Gas has a benign orderbook of about 10%, with potential negative fleet growth due to scrapping of older vessels [6] - The impending ban on scrubber discharges is accelerating a shift towards alternative fuels [6] Environmental Strategies - BW LPG is shifting its fleet composition towards LPG dual fuels, while Navigator Gas is also building dual-fuel vessels [7] - The focus is moving away from scrubbers, with investments in scrubbers exceeding internal calculations, indicating a future in alternative fuels [7]

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 1.5 times [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] Business Line Data and Key Metrics Changes - The PDH plants showed improvement, with PDH1 averaging 95% of nameplate capacity, while PDH2 resumed operations after a turnaround [11] - Total capital investments in Q3 2025 were $2 billion, including $1.2 billion for growth capital projects and $583 million for the acquisition of natural gas gathering systems [17] 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 3.3 times on a net basis, above the target range of 2.75 to 3.25 times 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] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in upcoming projects, including the Bahia Pipeline and Seminole Pipeline Conversion, which are expected to enhance capacity [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] Other Important Information - The company has completed a multi-year capital deployment cycle that began in 2022, positioning itself for future growth [12] - The integration of recently acquired assets from Occidental is expected to unlock significant revenue potential, with an incremental $200 million in revenue anticipated by 2027 [92] Q&A Session Summary Question: Will the new Permian gas pipelines drive more production? - Management indicated that while the Permian Basin is primarily an oil basin, the new gas pipelines will enhance NGL transportation and be beneficial for producers [23] Question: Is there unlimited demand for LPG in Asia? - Management noted that demand is growing internationally, and the U.S. will export what is needed to balance the market, with price adjustments expected based on global demand [25][26] Question: What is the capital allocation outlook for the next few years? - The company expects organic growth capital expenditures in the range of $2 billion to $2.5 billion, with a focus on splitting free cash flow between buybacks and debt paydown [36] Question: How is the integration of Occidental's assets progressing? - The acquisition is strategic, with significant organic growth opportunities identified, including over 1,000 drillable locations [92] Question: What is the outlook for the Permian sour gas opportunity? - Management remains optimistic about the Permian sour gas opportunity, with plans for additional treating capacity coming online in the near future [96]

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 1.5 times [8][18] - Net income attributable to common unitholders was $1.3 billion, or $0.61 per common unit on a fully diluted basis [13] - The partnership declared a distribution of $0.545 per common unit, representing a 3.8% increase over the same period in 2024 [13] Business Line Data and Key Metrics Changes - The PDH plants showed improvement, with PDH1 averaging 95% of nameplate capacity and PDH2 resuming operations after a turnaround [10] - Total capital investments in Q3 2025 were $2 billion, including $1.2 billion for growth capital projects and $583 million for the acquisition of natural gas gathering systems [17] 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 [15] - The expected range of growth capital expenditures for 2025 remains at approximately $4.5 billion, with 2026 projected between $2.2 to $2.5 billion [18] 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 [11] - Strategic investments in pipelines, marine terminals, and key acquisitions are aimed at capitalizing on long-term growth from the Haynesville and Permian basins [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming projects and their potential contributions, despite Q3 results being lighter than expected [8] - 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][24] Other Important Information - The company has a consolidated liquidity of $3.6 billion, which includes availability under its credit facility and unrestricted cash [18] - The total debt principal outstanding was approximately $33.9 billion, with a weighted average cost of debt at 4.7% [18] 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 more gas pipelines will enhance NGL transportation, benefiting producers [23][24] Question: Is there unlimited demand for LPG in Asia? - Management noted that both residential and petrochemical demand are growing internationally, and the U.S. will export what's needed to balance the market [26][28] Question: What is the capital allocation outlook for the next couple of years? - Management expects organic growth CapEx in the range of $2 billion to $2.5 billion, with a split between buybacks and debt pay down [41][42] 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 by 2027 [119] Question: What is the outlook for the Permian sour gas opportunity? - Management remains optimistic about the Permian sour gas opportunity, with additional treating capacity coming online in the near future [125]

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **China Chemicals** industry, focusing on the implications of new U.S. port fees on ethane carriers for Chinese companies, particularly **Wanhua Chemical** [2][7]. Core Insights and Arguments 1. **New U.S. Port Fees**: Effective October 14, 2025, the U.S. Trade Representative (USTR) will impose a port service fee of **$50 per ton** on ethane carriers owned or operated by Chinese entities, escalating to **$80, $110, and $140** per ton in subsequent years [2][7]. 2. **Impact on Wanhua Chemical**: Wanhua, which imports U.S. ethane for its ethylene crackers, may face increased costs estimated at **Rmb1 billion** in 2026, rising to **Rmb2 billion** by 2028. This represents **6% to 7.6%** of the current consensus net profit for FY26/27 [2][7]. 3. **Mitigation Strategies**: Wanhua is reportedly working on strategies to mitigate these costs; however, failure to do so may lead to downward revisions in consensus earnings [2][7]. 4. **Geopolitical Tensions**: The combination of geopolitical tensions and China's anti-involution measures could lead to a significant slowdown in China's chemical capacity additions from **2026 to 2030** [2][7]. 5. **Stock Recommendations**: Preferred regional companies in light of these developments include **PetroChina, LG Chem, Hengli, PTTGC, and Reliance** [2][7]. Additional Important Points 1. **Limited Impact on Satellite Chemical**: Satellite Chemical operates a fleet of vessels that are largely unaffected by the new U.S. port fees, as most are owned by non-Chinese companies [11]. 2. **Delays in Satellite's ECC Phase 3**: Construction of Satellite Chemical's third ethylene cracker has been paused due to U.S.-China tensions, which may lead to downward revisions in consensus earnings for **2027-28** [11]. 3. **Wanhua's Ethylene Cracker Updates**: Wanhua's Yantai 2 ethylene cracker is fully operational, while the Yantai 1 cracker is undergoing feedstock conversion and is expected to restart in November 2025 [11]. 4. **Potential Benefits for Non-Chinese Projects**: The slowdown in Chinese ethane demand may benefit ethane cracking projects outside China, with companies like **Reliance** and **ONGC** planning to switch to ethane for better economics [11]. 5. **Market Dynamics**: A significant slowdown in Chinese net chemical capacity additions is anticipated, which may lead to a rebalancing of global supply and demand dynamics, positively impacting regional chemical companies [11]. Conclusion The conference call highlights significant challenges and potential shifts in the China Chemicals industry due to new U.S. port fees and geopolitical tensions. Companies like Wanhua Chemical may face increased costs, while other regional players could benefit from changing market dynamics.

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenues of $130 million, a decrease of 12% compared to the same period last year, primarily due to customers halting new business and canceling committed fixtures [5][6] - EBITDA for the quarter was $72 million, with adjusted EBITDA of $60 million after excluding a $12 million book gain from the sale of Navigator Venus, indicating resilience in the business [5][12] - Earnings per share was €0.31, and the company maintained a strong cash position of $287 million at the end of the quarter [6][16] Business Line Data and Key Metrics Changes - Average Time Charter Equivalent (TCE) rates were $28,216 per day, lower than the approximately $30,000 achieved in previous quarters, with utilization at 84%, also down from prior quarters [7][14] - The ethylene spot fleet was most affected, while the semi-refrigerated fleet performed better [8][12] - Throughput at the joint venture ethylene export terminal rebounded to 268,000 tonnes for the quarter, more than three times Q1 but still below full capacity [8][45] Market Data and Key Metrics Changes - The Handysize ethylene twelve-month time charter rate remained steady at around $36,000 per day, while semi-refrigerated rates dipped to about $30,000 per day, and fully refrigerated rates fell to $25,000 per day [25] - LPG exports from Iraq to Asia increased, contributing positively to the company's performance despite geopolitical challenges [10][28] - July utilization rates improved to 90%, indicating a return to more normal trading conditions [29] Company Strategy and Development Direction - The company is focusing on fleet renewal by selling older vessels and acquiring modern tonnage, with plans to sell additional older vessels in the future [9][50] - The strategic emphasis is on diversifying the fleet to mitigate risks associated with market volatility, particularly in the petrochemical and LPG sectors [26][28] - The company aims to strengthen its position in the ammonia supply chain through new vessel orders and associated time charter contracts [8][50] Management's Comments on Operating Environment and Future Outlook - Management noted that the geopolitical backdrop in Q2 was challenging but expressed optimism for Q3, expecting a return to previous operational levels [4][57] - The company anticipates continued growth in U.S. export infrastructure, which will support demand for the products transported [57] - Management highlighted the importance of a diversified customer base and operational efficiency in navigating geopolitical uncertainties [10][11] Other Important Information - The company completed a $50 million share repurchase program, buying back 3.4 million shares at an attractive price [6][41] - The balance sheet remains strong, with significant liquidity and a focus on returning capital to shareholders [17][20] - The company was included in the Russell 2000 and Russell 3000 indices, enhancing its trading liquidity and shareholder base [46][48] Q&A Session Summary Question: Outlook for Q3 and normalization of business - Management indicated that Q3 is expected to return to levels seen before Q2 disruptions, with utilization rates already improving [61][65] Question: Terminal contracts and capacity - Management refrained from disclosing specific details about contracted capacity but confirmed ongoing discussions with potential customers for additional long-term contracts [67][68] Question: Impact of tariffs and trade deals - Management expressed optimism that recent trade deals would provide clarity and stability for U.S. commodity exports, positively impacting business [85][87] Question: Financing for new builds and IMO regulations - Management is exploring various financing options for new builds and aims to secure favorable terms, while also considering the implications of new environmental regulations [88][92]