Financial Data and Key Metrics Changes - The fourth quarter results exceeded internal expectations, with strong growth in the offshore pipeline transportation segment driven by steady base volumes and contributions from new wells [5][10] - The company exited the year with effectively zero outstanding under its $800 million senior secured revolving credit facility, reflecting strong liquidity [6] - The quarterly common unit distribution was increased to $0.18 per unit, representing a 9.1% year-over-year increase [6] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment saw a 19% increase in Segment Margin and a 16% increase in total volumes compared to the previous quarter, marking the third consecutive quarter of growth [10] - The marine transportation segment returned to normalized operating performance as refinery customers increased runs of heavy crude oil, leading to higher volumes of intermediate black oil for transport [5][16] - The onshore transportation and services segment performed in line with expectations, with increased throughput volumes across Texas and Raceland terminals [21] Market Data and Key Metrics Changes - The Gulf of America remains a world-class basin with strong long-term interest, as evidenced by the recent lease sale generating over $300 million in high bids for 181 tracts [14][15] - The market conditions for both brown water and blue water fleets stabilized, with increased demand for inland transportation due to refinery runs of heavy crudes [16][17] Company Strategy and Development Direction - The company is focused on deepwater Gulf of America growth, with expectations for increased production volumes and drilling schedules from offshore producer customers [7][9] - The management emphasized a disciplined approach to capital allocation, including debt reduction and evaluating future distribution increases [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential disruptions from hurricanes and higher marine maintenance in 2026, but remains optimistic about exceeding guidance based on customer feedback [29][30] - The company views the recent acquisition of LLOG by Harbour Energy as a positive development, with plans to double production from the acquired asset [46][47] Other Important Information - The company plans to maintain flexibility in evaluating future organic and inorganic opportunities while focusing on long-term value creation for stakeholders [22][23] - The marine transportation segment is expected to benefit from additional volumes produced in the Gulf of America and increased crude imports [16][17] Q&A Session Summary Question: Guidance for 2026 and EBITDA impact from disruptions - Management expects a $5 million-$10 million reduction in Segment Margin due to anticipated downtime and higher marine maintenance [29][30] Question: Capital allocation and leverage ratio targets - The long-term target for leverage ratio is around 4, with evaluations for distribution growth occurring quarterly [31][32] Question: Opportunities for acquiring remaining interests in offshore systems - Management expressed comfort with existing positions and potential for increased exposure without significant capital expenditure [39][40] Question: Impact of customer consolidation on long-term expectations - The acquisition of LLOG is seen as a positive, with expectations for increased production benefiting the company [46][47] Question: Details on offshore guidance for Salamanca and Shenandoah - Management is confident in achieving the 15%-20% guidance based on discussions with producer customers [52][53]

Financial Data and Key Metrics Changes - The fourth quarter results exceeded internal expectations, with strong growth in the offshore pipeline transportation segment driven by steady base volumes and contributions from new wells [5][10] - The quarterly common unit distribution was increased to $0.18 per unit, representing a 9.1% year-over-year increase [6] - The company exited the year with effectively zero outstanding under its $800 million senior secured revolving credit facility [6] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment saw a 19% increase in segment margin and a 16% increase in total volumes compared to the previous quarter, marking the third consecutive quarter of sequential improvement [10] - The marine transportation segment returned to normalized operating performance, benefiting from increased refinery runs of heavy crude oil [5][16] - The onshore transportation and services segment performed in line with expectations, with increased throughput volumes across terminals and pipelines [21] Market Data and Key Metrics Changes - The Gulf of America remains a world-class basin with strong long-term interest, as evidenced by recent lease sales generating over $300 million in high bids [14][15] - The market for marine transportation is expected to remain structurally tight due to effectively zero new supply of Jones Act vessels [20] Company Strategy and Development Direction - The company is focused on deepwater Gulf of America growth, with ongoing discussions with offshore producer customers indicating expected production volumes and drilling schedules for 2026 and beyond [7][9] - The management emphasizes a disciplined approach to capital allocation, including debt reduction and evaluating future distribution increases [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the top end of the 2026 EBITDA guidance range, despite potential disruptions from hurricanes and maintenance [30] - The company anticipates that the long-term fundamentals of the marine transportation sector remain strong, with increasing demand for heavy crude processing [18][21] Other Important Information - The company plans to complete additional wells at Salamanca and Shenandoah, which are expected to significantly increase production [11][12] - The management team remains committed to building long-term value for stakeholders and recognizes the importance of safe and responsible operations [23] Q&A Session Summary Question: Guidance for 2026 and EBITDA impact from disruptions - Management expects a $5 million-$10 million reduction in segment margin due to anticipated downtime and higher marine maintenance [29] Question: Capital allocation and leverage ratio targets - The long-term target leverage ratio is around 4, with the board evaluating distribution growth quarterly based on free cash flow and EBITDA performance [32][33] Question: Opportunities for acquiring remaining interests in offshore systems - Management is open to increasing exposure in existing offshore systems but emphasizes the substantial existing capacity already available [39][40] Question: Impact of customer consolidation on long-term expectations - The acquisition of LLOG by Harbour Energy is viewed positively, with expectations to double production, benefiting the company [47] Question: Specifics on offshore guidance for Salamanca and Shenandoah - Management is comfortable with achieving the 15%-20% guidance based on discussions with producer customers, emphasizing that any underperformance would be a timing issue [53][54] Question: Impact of dry docking on maintenance CapEx - An increase of $15 million-$20 million in maintenance capital expenditures is expected due to dry docking schedules [56] Question: Incremental inland barge utilization from heavier crude runs - High utilization rates are anticipated to drive up day rates as more heavy crude is processed [58]

Financial Data and Key Metrics Changes - The fourth quarter results exceeded internal expectations, with strong growth in the offshore pipeline transportation segment driven by steady base volumes and contributions from new wells [5][11] - The quarterly common unit distribution was increased to $0.18 per unit, representing a 9.1% year-over-year increase [6] - The company exited the year with effectively zero outstanding under its $800 million senior secured revolving credit facility [6] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment saw a 19% increase in segment margin and a 16% increase in total volumes compared to the previous quarter, marking the third consecutive quarter of sequential improvement [11] - The marine transportation segment returned to normalized operating performance, benefiting from increased refinery runs of heavy crude oil [5][16] - The onshore transportation and services segment performed in line with expectations, with increased throughput volumes across Texas and Riceland terminals [20] Market Data and Key Metrics Changes - The recent BOEM lease sale generated over $300 million in high bids for 181 tracts, indicating strong long-term interest in the central Gulf of Mexico [14][15] - The market for marine transportation remains structurally tight due to effectively zero net new supply of Jones Act vessels [19] Company Strategy and Development Direction - The company is focused on deepwater Gulf of America growth, with ongoing discussions with offshore producer customers regarding expected production volumes and drilling schedules for 2026 and beyond [7][8] - The management emphasized a disciplined approach to capital allocation, including debt reduction and evaluating future distribution increases [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the top end of the 2026 EBITDA guidance range, despite potential disruptions from hurricanes and maintenance [9][28] - The company views the recent acquisition of LLOG by Harbour Energy as a positive development, with plans to double production from the acquired asset by 2028 [46][47] Other Important Information - The company anticipates a heavier maintenance capital year due to dry dockings, with an expected increase in maintenance CapEx of $15 million to $20 million [55] - The management team remains committed to building long-term value for stakeholders and maintaining flexibility for future opportunities [22] Q&A Session Summary Question: Guidance for 2026 and EBITDA impact from disruptions - Management expects a $5 million to $10 million reduction in segment margin due to anticipated downtime and higher marine maintenance [26][27] Question: Capital allocation and leverage ratio targets - The long-term target leverage ratio is around 4, with the board evaluating distribution growth quarterly based on performance [30][31][32] Question: Opportunities for acquiring remaining interests in offshore systems - Management is open to increasing exposure in existing offshore systems but emphasized the substantial existing capacity already available [37][39] Question: Impact of customer consolidation on long-term expectations - The acquisition of LLOG by Harbour Energy is seen as a positive, with plans to double production benefiting the company [46][47] Question: Specifics on offshore guidance for Salamanca and Shenandoah - Management is comfortable with achieving the 15%-20% guidance based on discussions with producer customers [51][53]

Financial Data and Key Metrics Changes - The second quarter results were generally in line with expectations, with a focus on future growth opportunities [5] - The company expects to generate increasing amounts of free cash flow starting in the third quarter of 2025, providing financial flexibility for stakeholders [11][18] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment saw a sequential increase in volumes as previously impacted offshore wells were brought back online [12] - The marine transportation segment performed in line with expectations, with strong demand fundamentals for the inland fleet, while the blue water fleet faced softer demand [13][15] - The onshore transportation and services segment also performed as expected, with strong volumes through Texas and Riceland terminals [16] Market Data and Key Metrics Changes - Demand for inland transportation equipment is expected to increase as refiners begin their turnaround season, which historically drives demand [14] - The marine transportation market is experiencing some short-term challenges, but long-term fundamentals remain constructive due to limited supply additions [15] Company Strategy and Development Direction - The company is focused on the successful commissioning of the Shenandoah production facility, which has a capacity of 120,000 barrels per day, and is expected to ramp up production significantly [5][7] - Future developments include the Shenandoah South discovery and the Monument discovery, which will further enhance the company's production capabilities [9][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the projected timeline for Salamanca's initial production by the end of the third quarter, despite potential weather disruptions [21] - The company remains committed to reducing leverage and improving the balance sheet while considering capital returns to unitholders starting in 2025 [25][36] Other Important Information - The company highlighted that delays in production will not significantly impact its ability to generate free cash flow or its outlook for 2026 and beyond [18] - Management emphasized the importance of maintaining financial flexibility to pursue strategic opportunities and enhance stakeholder value [18][19] Q&A Session Summary Question: Timing on Salamanca production - Management feels confident about the projected timeline for Salamanca's initial production by the end of the third quarter, with no significant weather disruptions expected [21] Question: Capital return timing - Management indicated that capital returns could potentially start in 2025, depending on the performance of new projects [25] Question: New commercial opportunities - Management stated there are no new commercial opportunities currently identified, focusing instead on ramping up existing offshore projects [26] Question: Portfolio satisfaction and divestiture candidates - Management expressed satisfaction with the current portfolio and indicated no plans for significant divestitures, focusing on existing business lines [27] Question: Monument development timeline - Management confirmed that Monument is expected to be the next significant development after Salamanca, with additional volumes anticipated in 2026 [28] Question: Marine transportation segment trends - Management noted that while the marine transportation segment faced some short-term challenges, utilization rates remain high, supporting future rate increases [32][34] Question: Leverage ratio timeline and balancing shareholder returns - Management indicated that discussions regarding leverage ratios and shareholder returns will be more defined as 2026 approaches, with potential distributions considered in the fourth quarter of 2025 [36][37] Question: Confidence in adjusted EBITDA guidance - Management expressed cautious optimism about meeting the low end of the adjusted EBITDA guidance, based on early production results [39]