Financial Data and Key Metrics Changes - For Q3 2025, net income was $176 million, a slight decrease from $180 million in Q2 2025. Adjusted EBITDA increased to $321 million from $316 million in the previous quarter, primarily due to higher third-party gas gathering and processing throughput volumes [9][10] - Total revenues, excluding pass-through revenues, increased by approximately $7 million, with gathering revenues up by about $4 million and processing revenues up by approximately $3 million [9][10] - The gross adjusted EBITDA margin for Q3 was maintained at approximately 80%, above the target of 75%, indicating strong operating leverage [10] Business Line Data and Key Metrics Changes - Throughput volumes averaged 462 million cubic feet per day for gas processing, 130,000 barrels of oil per day for crude terminaling, and 137,000 barrels of water per day for water gathering, with a 3% increase in gas gathering and processing compared to Q2 [5][10] - Capital expenditures for Q3 were approximately $80 million, with adjusted free cash flow of about $187 million [10][12] Market Data and Key Metrics Changes - The company expects fourth quarter volumes to be relatively flat compared to Q3 due to lower expected third-party volumes and planned maintenance at the Little Missouri Ford gas plant [6][11] Company Strategy and Development Direction - The company remains committed to a strategy prioritizing the return of capital to shareholders, supported by excess free cash flow and a long-term leverage target of three times adjusted EBITDA [7][12] - The removal of the Kappa gas plant from future plans is expected to lead to significantly lower capital expenditures, enhancing free cash flow for shareholder returns [6][12] Management's Comments on Operating Environment and Future Outlook - Management noted that gas represents 75% of revenues, and future growth is expected to be driven by gas-to-oil ratios (GORs) as Chevron operates three rigs, maintaining oil production while allowing gas volumes to increase [17][36] - The company anticipates continued growth in free cash flow through 2027, supporting targeted annual distribution growth of at least 5% [12][31] Other Important Information - A $100 million share and unit repurchase was executed in Q3, and distributions were increased by 2.4%, approximately 10% on an annualized basis per Class A share [5][11] - Full-year 2025 capital expenditures are now expected to total approximately $270 million, with adjusted free cash flow projected at $760 million to $770 million [12] Q&A Session Summary Question: Trends in Bakken and GORs - Management indicated that GORs have not been increasing due to active drilling programs, and they expect oil to plateau while gas volumes increase over time [16][17] Question: 2028 MVC Expectations - Guidance for 2026 and 2028 MVCs will be provided after the budget process concludes in December [18][19] Question: Future Buybacks - The company expressed confidence in maintaining financial flexibility for capital returns, including potential share repurchases, supported by lower capital expenditures [20][24] Question: CapEx Outlook - Management confirmed that expected capital expenditures will be significantly lower than previous guidance, with a base level around $125 million for ongoing operations [23][24] Question: Relationship with Chevron - The integration with Chevron has been positive, with successful board meetings and distribution increases, indicating a strong partnership moving forward [26][27] Question: 2026 EBITDA Outlook - Management expects EBITDA to be flat in 2026 despite rising gas volumes, with further details to be provided after the budget process [30][31]