Recently, MPLX has been conducting transactions designed to streamline its operations and to expand its active natural gas assets. In August, the company entered into a billion-dollar agreement to divest its gathering and processing assets in the Rocky Mountain region. The agreement, with Harvest Midstream, is expected to close during the fourth quarter of this year.The first stock on our list here is MPLX, a $52 billion player in North America’s energy sector midstream segment. Midstream companies own and ...

Group 1 - Oneok Inc. reported $8.04 billion in revenue for Q1 2025, a year-over-year increase of 68.2% [1] - The EPS for the same period was $1.04, down from $1.09 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $7 billion by 14.89%, while the EPS fell short of the consensus estimate of $1.23 by 15.45% [1] Group 2 - Oneok's stock has returned -18.1% over the past month, compared to the S&P 500 composite's -0.7% change [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - Raw feed throughput for Natural Gas Liquids was 1,293 MBBL/d, below the average estimate of 1,369.48 MBBL/d [4] - Adjusted EBITDA for Natural Gas Liquids was $635 million, compared to the average estimate of $686.37 million [4] - Adjusted EBITDA for Refined Products & Crude was $471 million, below the estimated $527.44 million [4] - Adjusted EBITDA for Natural Gas Pipelines was $212 million, exceeding the average estimate of $171.15 million [4] - Adjusted EBITDA for Natural Gas Gathering and Processing was $491 million, below the average estimate of $529 million [4]

Financial Data and Key Metrics Changes - In Q4 2024, adjusted EBITDA was reported at $237 million, with distributable cash flow of $155 million and free cash flow of $32 million [16] - For the full year 2024, adjusted EBITDA reached $971 million, representing a 16% year-over-year increase, and an 18% increase when normalizing for November impacts [11][19] - Capital expenditures for 2024 totaled $265 million, which was approximately $15 million below the midpoint of the guidance range [11][19] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated adjusted EBITDA of $150 million in Q4, up 3% year-over-year but down 14% sequentially due to negative Waha prices [16][17] - The Pipeline Transportation segment reported adjusted EBITDA of $92 million, up nearly 9% year-over-year, driven by volume growth and contributions from EPIC Crude [18] Market Data and Key Metrics Changes - Average gas processed volumes for 2024 were 1.64 billion cubic feet per day, up 13% year-over-year [10] - The average gas daily price at Waha was negative $1.4 per MMBtu for the first half of November, impacting volumes and margins [16][17] Company Strategy and Development Direction - The company aims for a 10% compound annual growth rate (CAGR) in EBITDA over the next five years, focusing on both organic growth and strategic M&A opportunities [26][40] - Kinetic is positioned to capitalize on the growing demand for natural gas and liquids, with significant growth expected in the Permian Basin and Gulf Coast [12][13] - The company is exploring a large-scale gas-fired power generation facility to manage electricity costs and capitalize on natural gas price volatility [14][80] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 was transformational, with significant M&A activity and organic growth, particularly in the Delaware Basin [6][9] - The company has implemented new risk measures to prevent operational headwinds experienced in November and expects a strong rebound in operational performance [10][17] - Management expressed confidence in achieving a 15% growth in adjusted EBITDA for 2025, with key assumptions including a 20% growth in gas processed volumes [19][21] Other Important Information - The company increased its cash dividend by 4%, marking the first return of capital to shareholders since its merger [9] - Kinetic's leverage ratio improved to 3.4 times, down 0.6 times year-over-year, reflecting disciplined capital management [19][24] Q&A Session Summary Question: What infrastructure is needed to achieve the 10% EBITDA CAGR? - Management indicated that they are seeing outsized market share performance and have structural changes that will create incremental EBITDA opportunities [26][27] Question: Are there still M&A opportunities in 2025? - Management confirmed that opportunities remain, but they maintain a high bar for attractiveness in potential transactions [32][33] Question: What are the expectations for producer customer activity in 2025? - Management noted robust activity levels across both Northern and Southern Delaware, with significant drilling capital being allocated to New Mexico [45][46] Question: How does the company manage risks associated with pipeline maintenance? - Management acknowledged the regular seasonal maintenance and emphasized the importance of having incremental length for Gulf Coast capacity to mitigate risks [51][54] Question: Can you clarify the economic contribution of the Barilla Draw acquisition? - Management stated that the initial phase involves gas gathering services, with processing expected to ramp up later in the decade, contributing to margin expansion [98] Question: What is the timeline for the power generation project? - Management indicated that if the project reaches FID this year, it could be operational by the end of 2027, with potential for further projects in New Mexico [100][102]