Financial Data and Key Metrics Changes - The company reported a TCE income of $38,800 per available day and $37,300 per calendar day, exceeding guidance of $35,000 per day [3] - Q2 profit was $35 million, translating to an EPS of $0.23, with a declared dividend of $0.22 per share [4][25] - The net profit after tax for Q2 was $43 million, including $16 million from BW LPG India and $6 million from product services [25] - The net leverage ratio decreased to 31% from 33% at the end of the previous year [26] Business Line Data and Key Metrics Changes - Product Services achieved a gross profit of $15 million and a profit after tax of $6 million in Q2 [4] - The time charter portfolio constituted 44% of total shipping exposure, with 32% fixed rate time charter [21] - The average bar value at risk was $6 million, reflecting a balanced trading book [25] Market Data and Key Metrics Changes - The VLGC market is experiencing solid fundamentals with growth in U.S. export volumes supported by high domestic LPG production [7] - U.S. LPG exports to India exceeded 1 million tonnes in 2025, compared to less than 100,000 tonnes for the entire 2024 [11] - The global fleet growth is low, with only 409 ships currently in service and seven more expected to be delivered in 2025 [10] Company Strategy and Development Direction - The company aims to grow its time charter portfolio to around 40% to protect against market volatility [37] - The focus remains on managing drydocking schedules and optimizing fleet utilization to enhance revenue generation [5][21] - The company is monitoring the LPG FFA market, which is currently pricing the balance of 2025 at low $60,000 per day for the Middle East Japan benchmark leg [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical events on market volatility and shipping rates [3] - The outlook for U.S. LPG exports is positive, driven by increased production and terminal expansions [18] - The Panama Canal's congestion is a significant factor affecting shipping rates and operational efficiency [14][75] Other Important Information - The company finalized a $380 million term loan and revolving credit facility to finance its fleet [6] - The operating cash breakeven per day is estimated to be $19,100 for the own fleet and $21,700 for the total fleet [27] - The company maintains a strong liquidity position with $287 million in cash and $421 million in undrawn revolving credit facilities [28] Q&A Session Summary Question: Fleet growth and capacity concerns - Management acknowledged the fleet growth but noted that increased LPG volumes from the U.S. and the Middle East would absorb the new capacity [36] Question: Impact of Panama Canal registration restrictions - Management indicated that fewer ships would go through the Panama Canal, potentially leading to more vessels sailing around South Africa [39][46] Question: Purchase options on time charter vessels - Management confirmed there are no immediate purchase options but some are available later in the decade [49] Question: Q3 guidance and drydocking impact - Management explained that the time charter portfolio affects Q3 guidance, and drydocking schedules are also a factor [50][52] Question: Current freight market sustainability - Management noted that while there is downside risk at $70,000 per day, the market seems able to sustain these rates [73][74]

Dorian LPG (LPG) Q1 2026 Earnings Call August 01, 2025 10:00 AM ET Company ParticipantsTheodore Young - CFO & TreasurerJohn Hadjipateras - Chairman of the Board, President & CEOTaro Rasmussen - Chartering ManagerJohn Lycouris - Director & Head - Energy TransitionOmar Nokta - Managing DirectorOperatorGood morning and welcome to the Dorian LPG First Quarter twenty twenty six Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was reported at $2.4 billion, with distributable cash flow (DCF) of $1.9 billion, providing 1.6 times coverage [6][20] - Net income attributable to common unitholders remained stable at $1.4 billion for both Q2 2025 and Q2 2024, while net income per common unit increased by 3% to $0.66 [16][17] - Distributable cash flow increased by $127 million or 7% compared to the previous year, primarily due to lower sustaining capital expenditures [17][20] Business Line Data and Key Metrics Changes - The company set five volumetric records, processing 7.8 billion cubic feet of natural gas per day and transporting over 1 million barrels per day of refined products and petrochemicals [6][7] - The Neches River Terminal began operations with an initial capacity to load 120,000 barrels of ethane per day, expected to increase to 360,000 barrels per day with future expansions [9][15] Market Data and Key Metrics Changes - Export volumes rose by 5 million barrels quarter-over-quarter, but gross operating margin declined by $37 million due to market pricing and a 60% drop in spot rates [12] - The company noted that spot terminal fees for LPG exports have significantly decreased from $0.10 to $0.15 per gallon to lower levels [12] Company Strategy and Development Direction - The company is focused on organic growth projects worth nearly $6 billion, including new gas processing plants in the Permian [7][8] - The competitive landscape for LPG exports is becoming increasingly challenging, with new midstream companies entering the market [11][13] - The company aims to leverage its existing infrastructure to maintain competitive advantages and meet customer needs through brownfield expansions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic and geopolitical challenges, emphasizing the importance of U.S. energy exports [10][11] - The management team believes that the demand for U.S. ethane and ethylene remains strong in Asia and Europe, despite recent market pressures [13][14] - The company anticipates continued profitability in the Permian Basin, with producers maintaining their guidance despite market fluctuations [40][42] Other Important Information - The company declared a distribution of $0.545 per common unit for Q2 2025, a 3.8% increase from the previous year [18] - Total capital investments for 2025 were reported at $1.3 billion, with growth capital expenditures expected to remain in the range of $4 to $4.5 billion for 2025 [19][20] Q&A Session Summary Question: Ramp-up of new assets in the second half of 2025 - Management indicated that the new processing plants are expected to ramp up quickly, with high utilization rates anticipated [23][24][26] Question: Capital allocation and buyback strategy - The company plans to continue opportunistic buybacks, with expectations of increased free cash flow in 2026 [28][30] Question: LPG export fees and market dynamics - Management confirmed that they are 85-90% contracted for LPG exports through the end of the decade, indicating that significant margin compression challenges are likely over [73] Question: Outlook for PDH and refined product services - Operating rates for PDH have improved, but management noted that they have not yet met expectations [49] Question: Impact of potential LNG projects on Haynesville Shale - The company is optimistic about the Acadian gas system and expects to benefit from increased activity in the Haynesville [68][69] Question: Strategic importance of growth backlog - Management emphasized the importance of maintaining a robust growth backlog to attract equity investment and support future capital allocation decisions [89][90]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was reported at $2.4 billion, with distributable cash flow (DCF) providing 1.6 times coverage and retaining $740 million of DCF [5][15][18] - Net income attributable to common unitholders remained stable at $1.4 billion for both Q2 2025 and Q2 2024, while net income per common unit increased by 3% to $0.66 [14][15] - Distributable cash flow increased by $127 million or 7% to $1.9 billion for Q2 2025, primarily due to lower sustaining capital expenditures compared to the previous year [15][17] Business Line Data and Key Metrics Changes - The company set five volumetric records, processing 7.8 billion cubic feet of natural gas per day and transporting over 1 million barrels per day of refined products and petrochemicals [5][6] - The Neches River Terminal began operations with an initial capacity to load 120,000 barrels of ethane per day, expected to reach full operational capacity in the first half of 2026 [7] Market Data and Key Metrics Changes - Export volumes rose by 5 million barrels quarter-over-quarter, but gross operating margin declined by $37 million due to market pricing and a 60% drop in spot rates [10][11] - The company noted a shift in the LPG export market, with spot terminal fees previously ranging from $0.10 to $0.15 per gallon, now facing increased competition [9][10] Company Strategy and Development Direction - The company is focused on organic growth projects worth nearly $6 billion, including gas processing plants in the Permian [6][12] - The competitive advantage lies in existing export infrastructure, allowing the company to meet customer needs through brownfield expansions [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic and geopolitical challenges but expressed confidence in the company's positioning to succeed despite these headwinds [5][8] - The management highlighted the importance of energy and global trade, indicating potential future challenges due to competitive pressures in the LPG export market [9][12] Other Important Information - The company declared a distribution of $0.545 per common unit for Q2 2025, a 3.8% increase from the previous year [16] - Total capital investments for 2025 were reported at $1.3 billion, with growth capital expenditures expected to remain unchanged at $4 to $4.5 billion for 2025 [17][18] Q&A Session Summary Question: How should we think about the ramp-up of $6 billion of assets coming online in the second half of 2025? - Management indicated that processing plants are expected to ramp up quickly, with high utilization rates anticipated [21][23][25] Question: Will the buyback program increase in anticipation of 2026 being a lean year? - Management confirmed that they are being opportunistic with buybacks and expect larger opportunities in 2026 as free cash flow increases [27][29] Question: How do you see the LPG export market evolving? - Management stated that they are 85-90% contracted through the end of the decade and will defend their market position [32][74] Question: What are the lessons learned from the BIS ethane incident during Q2? - Management noted that while they were largely unscathed, the incident compromised the U.S. brand for reliable supply and energy security [45][46] Question: How do you view the outlook for PDH and octane enhancement? - Operating rates for PDHs have improved, but management is still not satisfied with performance, while octane enhancement margins have normalized but remain healthy [48][49]

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints of the Report - The PG futures contract price fluctuated and declined. Although the chemical demand is expected to be strong, the decline in oil prices and the weakening of international LPG prices led to a weaker futures price. The cheapest deliverable is East China civil LPG at 4486. The basis strengthened to 433 (+93). The inter - month reverse spread strengthened due to weak spot and main contract roll - over. The registered warrant volume is 8804 lots (+500), with Qingdao Yunda adding 500 lots. The external market price continued to weaken, and the oil - gas ratio increased. It is expected that the domestic LPG market will continue a narrow - range oscillation [1] Group 3: Summary Based on Relevant Content Price and Market Data - From July 18 to July 24, 2025, the prices of South China LPG, East China LPG, and Shandong LPG showed certain fluctuations. The daily change on July 24 was 0 for South China, East China, and Shandong LPG. The price of propane CFR South China increased by 1, and propane CIF Japan increased by 16. The MB propane spot price increased by 1. The price of Shandong alkylated oil remained unchanged, and the price of Shandong ether - after carbon four increased by 50. The main contract basis decreased by 56 [1] - The monthly spread declined, with the 08 - 09 spread at 31 and the 08 - 10 spread at - 402. The US - to - Far - East arbitrage window is closed. On Thursday, the cheapest deliverable was East China civil LPG at 4443. FEI and CP rebounded, PP strengthened significantly, the production profit of FEI and CP to PP oscillated, and the CP production cost is lower than FEI [1] Weekly Outlook - The PG futures contract price fluctuated and declined. The decline in oil prices and the weakening of international LPG prices led to a weaker futures price despite strong chemical demand expectations. The cheapest deliverable is East China civil LPG at 4486. The basis strengthened to 433 (+93). The inter - month reverse spread strengthened due to weak spot and main contract roll - over. The registered warrant volume is 8804 lots (+500), with Qingdao Yunda adding 500 lots [1] - The external market price continued to weaken, and the oil - gas ratio increased. In terms of regional spreads, PG - CP reached 27 (+8), FEI - MB reached 163 (+6), FEI - CP reached - 5.5 (+9.5); the US - Asia arbitrage window opened; AFEI propane declined significantly, and the CP arrival discount decreased slightly. FEI - MOPJ increased to - 43.75 (-1.75) [1] - PDH profit improved, and MTBE export profit declined. With high unloading volumes, port inventories increased significantly, and factory inventories increased slightly. The commercial volume decreased by 0.98%, mainly due to reduced external sales from the main refinery in Maoming, South China, increased self - use in Shandong, and limited supply in East China [1] - Chemical demand is strong; PDH operating rate increased significantly to 71.78% (+10.91pct) due to the restart of Zhongjing Petrochemical Phase III and Zhenhua Petrochemical, and the increased load of Quanzhou Guoheng and Hebei Haiwei at the end of last week. Liaoning Jinfa plans to resume operation next week; the alkylation operating rate increased, and Qifa Chemical's alkylation unit plans to resume production next week; MTBE export orders increased. However, weak combustion demand is expected to keep the domestic LPG market in a narrow - range oscillation [1]

Group 1: Report Industry Investment Rating No relevant content provided. Group 2: Core Viewpoints - The domestic LPG market is expected to continue a narrow - range oscillating trend due to weak combustion demand. Although the chemical demand outlook is strong, the decline in oil prices and international LPG prices has led to a downward trend in the PG market. The cheapest deliverable is the East China civil LPG at 4486. The basis has strengthened to 433 (+93), and the inter - month reverse spread has strengthened. The inventory at ports has increased under high unloading volumes, while the plant inventory has slightly increased. Chemical demand is strong, with the PDH operating rate rising significantly to 71.78% (+10.91pct), and the alkylation operating rate increasing. However, the MTBE export profit has declined [1]. Group 3: Summary by Relevant Catalogs Daily Data - From July 17 to July 23, 2025, the prices of South China LPG, East China LPG, Shandong LPG, propane CFR South China, propane CIF Japan, MB propane spot, CP forecast contract price, Shandong ether - after carbon four, and Shandong alkylated oil showed different changes. The daily change on July 23 showed that South China LPG increased by 20, propane CFR South China increased by 10, propane CIF Japan increased by 19, MB propane spot increased by 2, and CP forecast contract price increased by 18, while other prices remained unchanged. The basis increased by 2 [1]. - The futures market showed that the 08 - 09 spread was 41, and the 08 - 10 spread was - 383. The US - Far East arbitrage window was open. The cheapest deliverable on Wednesday was the East China civil LPG at 4443. FEI and CP continued to decline, PP dropped significantly, and the production profit of PP made from FEI and CP improved, with the CP production cost lower than that of FEI [1]. Weekly Viewpoints - **Market Trend**: The PG futures market oscillated downward. Although the chemical demand outlook is strong, the decline in oil prices and international LPG prices has led to a weakening of the market. The domestic LPG market is expected to continue a narrow - range oscillating trend due to weak combustion demand [1]. - **Basis and Spread**: The basis strengthened to 433 (+93), and the inter - month reverse spread strengthened due to weak spot prices and the shift of the main contract. The number of registered warrants increased by 500 to 8804 hands, with 500 hands added by Qingdao Yunda [1]. - **Regional Spreads and Arbitrage**: The PG - CP spread reached 27 (+8), the FEI - MB spread reached 163 (+6), the FEI - CP spread reached - 5.5 (+9.5), and the US - Asia arbitrage window was open. The FEI - MOPJ spread moved up to - 43.75 (-1.75) [1]. - **Profit and Inventory**: The PDH profit improved, while the MTBE export profit declined. The port inventory increased significantly, and the plant inventory increased slightly. The commodity volume decreased by 0.98% mainly due to reduced supply in South China, increased self - use in Shandong, and limited supply in East China [1]. - **Chemical Demand**: Chemical demand is strong. The PDH operating rate increased significantly to 71.78% (+10.91pct) due to the restart of some plants. The alkylation operating rate increased, and the MTBE export orders increased [1].

Financial Data and Key Metrics Changes - Targa reported record quarterly adjusted EBITDA of $1,179 million, a 22% increase year-over-year, primarily driven by higher Permian volumes [5][14][15] - The adjusted EBITDA increased 5% sequentially, attributed to the Badlands transaction and higher marketing margins [14] - The company expects full-year 2025 adjusted EBITDA to be in the range of $4,650 million to $4,850 million [14] Business Line Data and Key Metrics Changes - In the Permian, natural gas inlet volumes averaged over 6,000 million cubic feet per day, an 11% increase from a year ago, despite a 1% decrease from the previous quarter due to winter weather impacts [9][10] - NGL pipeline transportation volumes averaged 844,000 barrels per day, and fractionation volumes averaged 980,000 barrels per day, both impacted by winter weather events [11] - LPG export loadings averaged 13,400,000 barrels per month during the first quarter, with continued strength in cargo loadings [12][13] Market Data and Key Metrics Changes - The forward crude price curve has shifted lower, but customers are not indicating material changes to their drilling programs for 2025 and 2026, suggesting continued volume growth [6][10] - The demand for LPGs globally remains strong, with long-term contracts in place, positioning the company well in the market [12][13] Company Strategy and Development Direction - The company aims to maintain a strong investment-grade balance sheet, invest in high-return integrated projects, and return increasing capital to shareholders [14][17] - Targa's integrated asset footprint and strong financial position, with over 90% fee-based revenue, are expected to generate attractive returns [7][14] - The company is focused on expanding its footprint in the Permian Basin and enhancing its logistics and transportation capabilities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and outlook for 2025, citing strong producer relationships and multiyear drilling programs [6][24] - The company is well-prepared to navigate global tariff impacts and has managed operating costs effectively [13][14] - Management noted that the current environment allows for opportunistic share repurchases, with a focus on maintaining financial flexibility [14][49] Other Important Information - Targa has successfully completed a $2 billion debt offering to fund share repurchases and general corporate purposes [14][15] - The company has a pro forma consolidated leverage ratio of approximately 3.6 times, well within its long-term target range [15][17] Q&A Session Summary Question: How does Targa differ from others regarding customer relationships and positioning in the Permian? - Management highlighted their strong G&P footprint and relationships with well-capitalized producers, which provide resilience in drilling programs [22][24] Question: Can you elaborate on CapEx direction for 2026 relative to 2025? - Management indicated that CapEx will depend on activity levels, with ongoing growth capital projects expected to support future growth [26][30] Question: Are there any signs of optimization opportunities due to market volatility? - Management noted that they are seeing more opportunities to monetize positions, particularly in gas and NGL marketing [34][35] Question: What is the current hedging strategy and fee floor status? - Management confirmed that they are hedged 90% through 2026, which mitigates commodity price impacts on operating results [38][102] Question: How is the LPG export activity and destination changing? - Management reported no material change in activity levels but noted some shifts in cargo destinations due to market dynamics [43][46] Question: Would Targa consider small-scale bolt-on deals in the current environment? - Management stated that they remain open to bolt-on acquisitions if they meet return criteria, while focusing on organic growth opportunities [59][60] Question: What is the outlook for Permian production if crude prices remain flat? - Management suggested a baseline growth of 2% to 3% in gas production under flat crude oil conditions, with confidence in capturing a larger share of drilled volumes [98][105]