Financial Data and Key Metrics Changes - In Q4 2025, the company generated record Adjusted EBITDA of $636 million, with an increase of approximately 5% sequentially, excluding negative non-cash cumulative revenue recognition adjustments [10][11][31] - For the full year 2025, the company reported a record Adjusted EBITDA of $2.48 billion, exceeding the midpoint of its guidance range [36] - The net income attributable to limited partners for Q4 2025 was $187 million, impacted by $120 million of transaction costs from the Aris acquisition [31] Business Line Data and Key Metrics Changes - Natural gas throughput decreased by 4% sequentially in Q4 2025, primarily due to lower volumes from the Delaware Basin and Powder River Basin, partially offset by record throughput from the DJ Basin [21] - Produced water throughput increased by 121% sequentially, driven by the Aris acquisition [22] - For the full year 2025, natural gas throughput averaged 5.2 billion cubic feet per day, a 4% year-over-year increase, while crude oil and NGLs throughput averaged 514,000 barrels per day, a 1% year-over-year increase [25] Market Data and Key Metrics Changes - The company expects natural gas throughput to remain flat year-over-year in 2026, with crude oil and NGL throughput declining by low- to mid-single digits [26] - The Delaware Basin is anticipated to be the primary driver of throughput growth, despite expected declines in the DJ and Powder River Basins [40] Company Strategy and Development Direction - The company aims for mid- to low-single-digit Adjusted EBITDA growth in the long term, supported by producers' development plans and undrilled inventory on serviced acreage [44][46] - The Aris acquisition is expected to contribute meaningfully to Adjusted EBITDA in 2026 and enhance the company's produced water solutions capabilities [10][16] Management's Comments on Operating Environment and Future Outlook - Management noted increased macroeconomic and commodity price-driven volatility affecting producer activity levels, particularly in the Delaware Basin [5][7] - The company remains confident in its long-term growth strategy despite a transition year in 2026, with stable long-term contract structures supporting financial stability [9][10] Other Important Information - The capital expenditure program for 2026 has been reduced to a midpoint of $925 million, down from at least $1.1 billion, reflecting a disciplined approach to capital allocation [9][40] - The company achieved $40 million in targeted cost synergies from the Aris acquisition, with 85% expected to be realized by the end of Q1 2026 [17] Q&A Session Summary Question: How is the company thinking about M&A and inorganic growth? - Management reiterated that the strategy remains unchanged, focusing on capital deployment to sustain or grow distributions, with a preference for M&A opportunities that offer synergies [52][56] Question: Can you elaborate on the Waha pricing situation? - Management indicated that new egress solutions expected in the second half of the year should help alleviate pricing volatility, and they are working with customers to find commercial solutions [58][59] Question: What is the expected growth rate for the water business compared to gas and oil? - Management expects the water business to grow faster than gas and oil, with core business growth projected at 2%-3% over time [70]

Core Insights - Targa Resources Corp. (NYSE:TRGP) is recognized as one of the best performing stocks in the S&P 500 over the past five years [1] Analyst Updates - Targa Resources Corp. shares are trading near consensus valuation levels, with a consensus price target of $213.00 indicating a 3.60% upside as of February 6, 2026. Over 90% of analysts covering the company remain bullish, suggesting incremental revisions rather than broad re-ratings [2] - Morgan Stanley raised its price target for Targa Resources Corp. to $266 from $264 on January 28, 2026, while maintaining an 'Overweight' rating, citing a strong start to the earnings season and the energy sector's contribution to S&P 500 performance despite stable commodity prices [3] - Scotiabank increased its target for Targa Resources Corp. from $199 to $224 on January 16, 2026, while keeping its 'Outperform' rating, attributing the increase to favorable conditions from LNG exports and rising power demand, which are expected to create more opportunities and an upward bias in long-term estimates [4] Company Overview - Targa Resources Corp. is a midstream energy company that provides natural gas gathering, processing, transportation, and NGL logistics services to support U.S. production, power demand, and LNG export growth [5]

Core Viewpoint - The Williams Companies, Inc. (NYSE:WMB) is recognized as a strong investment opportunity in the energy sector, particularly in the context of rising power demand and LNG exports, which are expected to enhance long-term growth prospects for gas infrastructure operators [2]. Group 1: Analyst Ratings and Price Targets - Scotiabank has raised its price target for The Williams Companies from $61 to $66 while maintaining a 'Sector Perform' rating, reflecting a broader reset in energy infrastructure valuations [2]. - UBS has reiterated a 'Buy' rating on The Williams Companies with a price target of $78, highlighting progress on two significant pipeline projects [3]. Group 2: Pipeline Developments - The Northeast Supply Enhancement project has secured essential water permits, which are crucial for meeting its target in-service date of Q4 2027, with an estimated incremental EBITDA of approximately $150 million at a 6.0x-7.0x build multiple, pending further approvals [4]. - The Constitution pipeline is projected to contribute about $180 million in EBITDA, with construction expected to commence in Q4 2026 and service anticipated by April 2028 [5]. Group 3: Company Overview - The Williams Companies focuses on operating natural gas gathering, processing, and pipeline infrastructure across the U.S., owning and developing large-scale transmission assets that support power generation, LNG exports, and domestic energy demand [5].

Core Viewpoint - Western Midstream Partners, LP announced a quarterly cash distribution of $0.910 per unit for Q4 2025, maintaining the same level as the previous quarter [1] Group 1: Financial Announcements - The fourth-quarter distribution is payable on February 13, 2026, to unitholders of record as of February 2, 2026 [1] - The Partnership plans to report its Q4 2025 results after market close on February 18, 2026, with a conference call scheduled for February 19, 2026, at 9:00 a.m. Central [2][3] Group 2: Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in various activities including gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, and crude oil [4] - A significant portion of WES's cash flows is secured through fee-based contracts, reducing direct exposure to commodity price volatility [4]

Core Viewpoint - Targa Resources Corp. is set to release its Q4 2025 earnings, with analysts projecting significant growth in earnings per share (EPS) compared to the previous year [1][2]. Financial Performance - Analysts expect Targa Resources to report a profit of $2.35 per share on a diluted basis for Q4 2025, representing a 63.2% increase from $1.44 per share in the same quarter last year [2]. - For the current fiscal year, the projected EPS is $8.36, which is a 45.6% increase from $5.74 in fiscal 2024. The EPS is anticipated to rise by approximately 19.1% year over year to $9.96 in fiscal 2026 [3]. Stock Performance - Over the past 52 weeks, Targa Resources' shares have declined by 13%, underperforming the S&P 500 Index's increase of 16.9% and the State Street Energy Select Sector SPDR ETF's return of 2.3% [4]. - Despite the decline, shares saw a slight increase on December 1 following the announcement of a $1.25 billion cash acquisition of Stakeholder Midstream, LLC, which enhances Targa's operations in natural gas and crude services in the Permian Basin [5]. Analyst Ratings - The stock has a "Strong Buy" rating overall, with 18 out of 22 analysts recommending a "Strong Buy," one suggesting a "Moderate Buy," and three advising a "Hold." The average analyst price target is $207.91, indicating a potential upside of 12.2% from current levels [6].

Core Insights - Targa Resources has agreed to acquire Stakeholder Midstream for $1.25 billion in cash, enhancing its operations in the Permian Basin [1][2] - The acquisition is expected to close in the first quarter of 2026, pending regulatory approval [3] Company Overview - Stakeholder Midstream provides natural gas gathering, treating, processing services, and crude oil gathering and storage in the Permian Basin, operating approximately 480 miles (772 km) of natural gas pipelines [1][2] - The company has a daily cryogenic natural gas processing and sour treating capacity of around 180 million cubic feet per day [1] Financial Aspects - Stakeholder's assets are supported by long-term, fee-based contracts across approximately 170,000 dedicated acres, with low decline rates ensuring a stable volume profile [2] - Targa anticipates that Stakeholder will contribute around $200 million in annual free cash flow with minimal capital expenditure requirements [4] Strategic Implications - Targa's CEO highlighted that the acquisition is a strategic move to create shareholder value, supported by a stable to modestly growing volume profile and minimal capital needs [3][4] - The company plans to finance the acquisition using available liquidity, including cash on hand and its existing $3.5 billion revolving credit facility, with a limited impact on its leverage ratio [5] Advisory Roles - RBC Capital Markets is acting as the financial advisor to Targa, while Jefferies serves as the exclusive financial advisor to Stakeholder [5][6]

Core Viewpoint - Targa Resources Corp. has entered into a definitive agreement to acquire Stakeholder Midstream, LLC for $1.25 billion in cash, enhancing its midstream infrastructure and cash flow generation capabilities in the Permian Basin [1][10]. Acquisition Details - The acquisition price of $1.25 billion represents approximately 6 times the estimated unlevered adjusted free cash flow for 2026 [10]. - Stakeholder operates natural gas gathering, treating, and processing services, along with crude gathering and storage services, featuring around 480 miles of natural gas pipelines and a processing capacity of approximately 180 million cubic feet per day [2][10]. - Stakeholder's assets are supported by long-term, fee-based contracts across approximately 170,000 dedicated acres, which exhibit low decline rates, ensuring a stable volume profile [2][10]. Financial Impact - Targa anticipates that Stakeholder will generate unlevered adjusted free cash flow of about $200 million annually, with minimal capital needs and low integration costs [3][10]. - The transaction is expected to have a limited impact on Targa's leverage ratio, maintaining it within the long-term target range of 3.0 to 4.0 times [7][10]. Strategic Fit - The acquisition is viewed as a strategic move to enhance Targa's existing operations, leveraging strong relationships with major producers in the region and complementing its sour gas treating and carbon capture capabilities [4][5][10]. - Targa's CEO emphasized that this transaction aligns with the company's strategy to create shareholder value through balance sheet strength and organic growth opportunities [4][5]. Transaction Timeline and Advisors - The completion of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2026 [7]. - RBC Capital Markets is serving as Targa's financial advisor, while Jefferies is acting as the exclusive financial advisor to Stakeholder [8].

Group 1 - ONEOK has attracted investor interest due to stable oil prices and increasing U.S. natural gas demand, alongside a strengthened balance sheet and expanded pipeline and processing footprint [2] - The stock is currently trading nearly 40% lower than its one-year peak and has a price-to-sales ratio below the average of the past three years, indicating potential as a value investment [3] - ONEOK provides natural gas gathering, processing, storage, and transportation services across the U.S., in addition to owning a parking garage and leasing office space in Tulsa, Oklahoma [4] Group 2 - ONEOK has demonstrated reasonable revenue growth of 58.4% over the last twelve months and an average of 16.4% over the past three years, with a strong average operating margin of approximately 21.2% [8] - The stock is trading at a modest price-to-earnings (PE) multiple of 12.5, despite its positive fundamentals [8] - Historical data shows average forward returns of 12.7% for six months and 25.8% for twelve months, with a win rate exceeding 70% for both timeframes [9]

Company Overview - Kinetik Holdings (NYSE: KNTK) is a significant player in the US oil and gas infrastructure sector, involved in gathering natural gas, liquids, crude oil, and water from production sites, as well as compressing, transporting, processing, and treating these resources [1]. Analyst Experience - The analyst has over 10 years of experience researching companies across various sectors, including commodities like oil, natural gas, gold, and copper, as well as technology companies such as Google and Nokia, and numerous emerging market stocks [1]. Investment Focus - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, where they have researched hundreds of different companies, with a particular interest in metals and mining stocks, while also being comfortable with other industries like consumer discretionary/staples, REITs, and utilities [1].

Core Viewpoint - Western Midstream Partners, LP announced a quarterly cash distribution of $0.910 per unit for Q3 2025, maintaining the same level as the previous quarter [1] Group 1: Financial Announcements - The cash distribution is annualized at $3.64 per unit and will be payable on November 14, 2025, to unitholders of record by October 31, 2025 [1] - The Partnership plans to report its Q3 2025 results after market close on November 4, 2025, with a conference call scheduled for November 5, 2025, at 8:00 a.m. Central [2][3] Group 2: Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in various activities including gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, crude oil, and produced water [4] - A significant portion of WES's cash flows is secured through fee-based contracts, reducing direct exposure to commodity price volatility [4]