Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $4.30 for 2025, which is the top of the guidance range and represents a 6% increase from the previous year and a 9% average annual growth from 2023 [5][6] - This marks the 11th consecutive year of achieving adjusted earnings results at or above the annual guidance range [6] - Weather-normalized total retail electricity sales increased by 1.7% compared to 2024, significantly higher than the cumulative growth seen over the last decade [7][8] Business Line Data and Key Metrics Changes - Georgia Power saw a 2.5% increase in sales from 2024, with all customer classes showing growth, particularly commercial sales which increased by 17% year-over-year [8][9] - The company added 39,000 new residential electric customers and 25,000 new customers in natural gas distribution [8] - Industrial electricity sales grew by 1.4% in 2025, with gains in primary metals, lumber, paper, and transportation segments [9] Market Data and Key Metrics Changes - The company is experiencing robust economic development activity, with over 120 companies either locating new facilities or expanding operations in its service territories, expected to create over 21,000 new jobs [10][11] - The total large load pipeline has increased to over 75 GW, with 26 signed contracts representing 10 GW of fully contracted electric service agreements [19] Company Strategy and Development Direction - The company is focused on sustainable growth through significant investments in energy infrastructure, with a capital investment forecast of $81 billion over the next five years, primarily at state-regulated utilities [25][26] - The strategy includes an "all-of-the-above" approach to energy sourcing, incorporating natural gas, battery energy storage, and other resources to meet growth opportunities [49][92] - The company aims to maintain a disciplined approach to pricing large load contracts, ensuring benefits for existing customers while capturing growth [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve long-term growth, projecting adjusted EPS growth of 7%-9% from 2026 through 2028 [34][35] - The company anticipates retail electric sales to grow at least 3% in 2026, with an average annual growth of 10% projected from 2026 to 2030 [18] - Management highlighted the importance of regulatory frameworks that allow for flexible pricing and contract negotiations to support growth while ensuring rate stability for existing customers [22][24] Other Important Information - The company has a strong dividend track record, having increased dividends for 24 consecutive years, with projections for continued modest increases in the future [32] - The company is committed to maintaining strong investment-grade credit ratings and has proactively addressed $9 billion of equity needs [29][30] Q&A Session Summary Question: Future growth outlook beyond 2028 - Management indicated confidence in achieving growth targets based on current projects and economic expansion, with potential upside from Southern Power [45][46] Question: Impact of near-term contracts on current plans - Management confirmed that the near-term contracts are included in the current forecast and are expected to be signed imminently [55][56] Question: Data center growth and zoning issues - Management expressed confidence in the progress of data center projects across Georgia, Alabama, and Mississippi, despite ongoing conversations about regulations [62][63] Question: Opportunities for onsite or bridge power solutions - Management noted continued demand for temporary power solutions, indicating a strong market for bridge solutions [84] Question: Southern Power's recontracting opportunities - Management highlighted the potential for recontracting capacity at significantly higher rates, estimating future prices around $20-$25 per kilowatt month [92][94]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported consolidated net income of $90 million and EBITDA of $591 million [4] - The fourth quarter consolidated net loss was $116 million, with EBITDA of $51 million, impacted by accelerated depreciation and extended downtime [4] - The net loss attributable to CVI shareholders for Q4 2025 was $110 million, with losses per share of $1.10 and adjusted EBITDA of $91 million [7] Business Segment Data and Key Metrics Changes - In the petroleum segment, EBITDA for Q4 2025 was $73 million, a significant increase from $9 million in Q4 2024, driven by higher crack spreads and increased throughput [7] - The fertilizer segment reported adjusted EBITDA of $20 million for Q4 2025, down from $50 million in the prior year, affected by ammonia utilization rates and operational issues [11] - The renewable segment experienced a breakeven adjusted EBITDA for Q4 2025, a decline from $9 million in Q4 2024, due to loss of tax credits and reduced throughput [10] Market Data and Key Metrics Changes - Combined total throughput for Q4 2025 was approximately 218,000 bbl per day, with a utilization rate of 97% [8] - RINs prices averaged $6.05 per bbl for Q4 2025, a decline from previous levels, impacting the company's capture rate [9] - The estimated accrued RFS obligation on the balance sheet was $72 million at year-end, representing 59 million RINs [9] Company Strategy and Development Direction - The company aims to focus on safe and reliable operations, reevaluating commercial optimization opportunities to improve margin capture in the petroleum segment [18][19] - Plans include expanding asset footprint and pursuing geographic diversity while maintaining a disciplined approach to capital allocation [20] - The company is optimistic about refining sector fundamentals, anticipating steady demand growth for refined products [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding RINs and the potential for SRE grants, emphasizing the economic harm caused by compliance with the RFS [23] - In the fertilizer segment, strong demand for nitrogen fertilizers is expected due to anticipated corn planting increases [24] - The company is optimistic about the Midcontinent market, expecting improved dynamics with new pipeline developments [49] Other Important Information - Cash flow from operations for Q4 2025 was breakeven, with free cash flow usage of $55 million [12] - Total consolidated capital spending for 2025 was $197 million, with projections for 2026 estimated at $200 million-$240 million [13] - The company completed a $1 billion senior notes offering to extend debt maturity profiles and improve financial flexibility [15][16] Q&A Session Summary Question: Expansion plans and asset acquisition strategy - The company is looking for proactive engagement in M&A discussions, focusing on both refining and fertilizer sectors while maintaining financial discipline [28][29] Question: Dividend return expectations - Management indicated that a clear path to further debt reduction is necessary before considering a return to dividends, emphasizing sustainability [32][33] Question: Ramping up WCS runs at Coffeyville refinery - The company is increasing WCS processing due to favorable market conditions and upgraded facility capabilities [38][39] Question: RIN prices and mitigation strategies - Management acknowledged rising RIN prices and is exploring blending more barrels and acquiring additional blending capacity to mitigate exposure [41][42] Question: Capture rates and pipeline projects - The company is optimistic about improving capture rates and sees potential benefits from new pipeline infrastructure in the Midcontinent [48][49]

Financial Performance and Key Metrics - In 2025, the company generated $4.3 billion in free cash flow before working capital, despite a 14% decline in oil prices from 2024 [4][5] - Cash flow from operations increased by 27% year-over-year on a normalized basis, excluding OxyChem [4] - The company repaid $4 billion in debt, reducing principal debt to $15 billion, with a tender offer expected to lower it further to $14.3 billion [5][22] Operational Achievements - The company set a new annual production record of 1.4 million barrels of oil equivalent per day, exceeding guidance while spending $300 million less in capital than planned [6] - Achieved a 107% organic reserves replacement ratio and a 98% all-in reserves replacement ratio at a finding and development cost below the DD&A rate [6][7] - Total resource base now stands at 16.5 billion barrels of oil equivalent, with 84% of this resource breaking even below $50 per barrel [7][8] Business Line Performance - The midstream segment delivered strong results, with adjusted pretax income surpassing guidance by over $500 million, driven by gas marketing optimization and higher sulfur prices [7][21] - The company achieved record safety performance across global operations in 2025, launching a remote operations command center to enhance safety and operational efficiency [7][8] Strategic Direction and Industry Position - The company aims to maintain production through safe operations and deliver a sustainable and growing dividend, with an 8% increase announced for the quarterly dividend [10][23] - Focus on investing in high-return oil and gas projects while advancing mid-cycle projects to reduce sustaining capital requirements over time [10][25] - The company is positioned to drive sustainable free cash flow growth and deliver long-term value to shareholders [4][10] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to unlock further value through disciplined capital allocation and strong operational performance [20][23] - The company expects to improve free cash flow by more than $1.2 billion in 2026, driven by operational savings and interest savings [23] - Management highlighted the importance of maintaining flexibility in capital spending to adapt to market conditions [25][28] Other Important Information - The company completed the sale of OxyChem, which was a strategic move to strengthen the balance sheet and focus on high-return oil and gas assets [3][5] - The company plans to enter 2026 with a capital spending range of $5.5 billion to $5.9 billion, reflecting a reduction from 2025 [10][25] Q&A Session Summary Question: Can you walk through the lower CapEx guidance relative to the previous quarter? - Management explained that the reduction was due to improved project optimization and cost efficiencies achieved by the teams [34][36] Question: What is the outlook for the Horn Mountain waterflood project? - Management indicated that the project is expected to support a sustaining production profile with lower declines due to ongoing initiatives [41][42] Question: How sustainable are the cost savings into 2027? - Management noted that the structural savings achieved are expected to continue, with a focus on operational efficiencies and well performance [55][59] Question: What is the status of the low-carbon ventures and their impact on cash flow? - Management confirmed that capital for low-carbon ventures will decrease as STRATOS ramps up, and partnerships are anticipated to help move forward with future opportunities [74]

Financial Data and Key Metrics Changes - The company achieved a record quarterly leasing volume of nearly 4 million sq ft with a weighted average rent roll-up of 25.7%, marking the fifth consecutive quarter of double-digit rent growth [5][9] - Normalized FFO grew 113% year-over-year, reaching $18.9 million or $0.29 per share, which was at the high end of guidance [12][5] - Same property cash basis NOI increased by 5.2% year-over-year [5] - Total shareholder return exceeded 55% in 2025, ranking the company third among all U.S. REITs [5] Business Line Data and Key Metrics Changes - The company completed 42 new and renewal leases and two rent resets totaling 7.3 million sq ft, expected to generate an increase of approximately $10.6 million in annualized rental revenue [7] - Renewals represented the majority of leasing activity, with a tenant retention rate of 96% [9] - Notable lease renewals included Amazon and Restoration Hardware, with significant roll-ups in rent [9][10] Market Data and Key Metrics Changes - Consolidated occupancy at year-end was 94.5%, a 40 basis point increase from Q3 [7] - The company owns 409 properties across 39 states, totaling approximately 60 million sq ft, with a weighted average lease term of seven years [6] Company Strategy and Development Direction - The company is focused on leasing priorities, particularly a 2.2 million sq ft land parcel in Hawaii and a 535,000 sq ft property in Indianapolis [8] - The company aims to generate organic cash flow growth and reduce leverage, which has declined from 12.4x to 11.8x over the last year [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and momentum, positioning the company well for 2026 [8] - The company noted that tenant retention remains strong, and there are no material known move-outs expected [23][25] - Management indicated that while construction has slowed, the company has not seen significant issues with competing supply [45] Other Important Information - The company successfully refinanced $1.2 billion of floating rate debt into fixed rate debt, resulting in annual cash savings of over $8 million [6] - The company ended the quarter with cash on hand of $95 million and restricted cash of $88 million, with a total net debt to total assets ratio of 69% [14] Q&A Session Summary Question: What is the non-cash interest amount for the quarter? - The non-cash interest amount for the quarter is $4.5 million [20] Question: Can you provide an update on another asset that was under contract for sale? - The company had a property under LOI for about $50 million, but the tenant preferred to engage in a renewal discussion instead of purchasing the property [21] Question: Are there any known move-outs we need to be aware of? - There are no material known move-outs at this point, and progress is being made on expirations [22][23] Question: Are there any changes in the marketing process for the Indianapolis and Hawaii vacancies? - Progress is being made in Indianapolis, and discussions are ongoing in Hawaii, but no concessions can be made due to the nature of the ground lease [24][25] Question: How did interest expense change from Q4 to Q1? - The change is primarily due to the number of days in the quarter, with 92 days in Q4 and 90 in Q1 [26] Question: What is the thought process around refinancing the Monmouth JV loan? - The company is actively evaluating refinance opportunities and has flexibility due to the extension option [42]

Financial Data and Key Metrics Changes - Southern Company reported adjusted earnings per share (EPS) of $4.30 for 2025, marking a 6% increase from the previous year and 9% average annual growth from 2023, achieving the top of its guidance range for the 11th consecutive year [4][3] - The company has maintained a strong dividend track record, with increases every year for the past 24 years, contributing to predictable and sustainable financial results [4][31] Business Line Data and Key Metrics Changes - Retail electricity sales increased by 1.7% in 2025 compared to 2024, significantly higher than the cumulative growth over the last decade [5][6] - Georgia Power experienced a 2.5% growth in electricity sales, with commercial sales up 17% year-over-year, driven by large load data center customers [6][7] - Industrial electricity sales grew by 1.4%, with gains in primary metals, lumber, paper, and transportation segments [8] Market Data and Key Metrics Changes - The company anticipates retail electric sales to grow at least 3% across its electric operating companies in 2026, with an average annual growth projection of 10% from 2026 through 2030 [17] - The total large load pipeline has increased to over 75 GW, with 26 signed contracts representing 10 GW of fully contracted electric service agreements [18] Company Strategy and Development Direction - Southern Company is focused on sustainable growth through significant investments in energy infrastructure, with a capital investment forecast of $81 billion over the next five years, primarily at state-regulated utilities [24][25] - The company is exploring opportunities for new natural gas generation and enhancements to existing generation assets to meet future market demands [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture growth opportunities, citing robust economic development activity and the addition of over 21,000 new jobs in its service territories [9][10] - The company is positioned to benefit from the increasing demand for reliable energy, with expectations of improved pricing for its natural gas fleet as contracts come up for renewal [13][14] Other Important Information - Southern Company has a disciplined approach to pricing large load contracts, ensuring that existing customers benefit from the growth while maintaining rate stability [22][23] - The company is committed to preserving its strong investment-grade credit ratings while addressing $9 billion of equity needs [27][30] Q&A Session Summary Question: Inquiry about the company's long-term growth outlook beyond 2028 - Management highlighted confidence in achieving growth targets based on the execution of projects and economic expansion in service territories [45][46] Question: Clarification on the 3 GW of near-term load and its impact on the current plan - Management confirmed that the 3 GW contracts are included in the current forecast and are expected to be signed imminently [55][56] Question: Discussion on the impact of affordability legislation on data center projects - Management acknowledged ongoing conversations about the impact of legislation but expressed confidence in the continued advancement of data center projects [81][83] Question: Inquiry about the potential for new gas expansion and its alignment with data center needs - Management stated that any new gas development would be approached with a disciplined risk profile, ensuring long-term contracts with creditworthy counterparties [97]

Financial Performance and Key Metrics - In 2025, the company generated $4.3 billion in free cash flow before working capital, despite a 14% decline in oil prices from 2024 [4][20] - Cash flow from operations increased by 27% year-over-year on a normalized basis, excluding OxyChem [4][20] - The company repaid $4 billion in debt, reducing principal debt to $15 billion, with a target to further reduce it to $14.3 billion [5][23] Operational Achievements - The company set a new annual production record of 1.4 million barrels of oil equivalent per day, exceeding guidance while spending $300 million less in oil and gas capital than planned [6][12] - Achieved a 107% organic reserves replacement ratio and a 98% all-in reserves replacement ratio at a finding and development cost below the DD&A rate [7] - Total resource base now stands at 16.5 billion barrels of oil equivalent, with 84% of this resource base breaking even below $50 per barrel [8][9] Business Line Performance - The midstream segment delivered strong results, with adjusted pretax income surpassing guidance by over $500 million, driven by gas marketing optimization and higher sulfur prices [8][22] - The company achieved record safety performance across global operations in 2025, launching a remote operations command center to enhance safety and operational efficiency [8][9] Strategic Direction and Industry Competition - The company plans to maintain production through safe operations and aims to deliver a sustainable and growing dividend, with an 8% increase announced [10][11] - Focus on investing in high-return oil and gas projects while advancing mid-cycle projects to reduce sustaining capital requirements over time [11][12] - The company is positioned to drive sustainable free cash flow growth and deliver long-term value to shareholders [4][10] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to unlock further value through disciplined capital allocation and strong operational performance [20][24] - The company expects to improve free cash flow by more than $1.2 billion in 2026, driven by operational savings and interest savings [24] - The company anticipates production to average approximately 1.45 million barrels of oil equivalent per day in 2026, despite lower capital spending [12][27] Other Important Information - The company completed the sale of OxyChem, which strengthened the balance sheet and accelerated deleveraging [20][23] - The capital spending plan for 2026 is expected to range from $5.5 billion to $5.9 billion, reflecting a reduction from 2025 [11][26] - The company is focused on maintaining flexibility in capital allocation to adapt to oil price uncertainty [26] Q&A Session Summary Question: Can you walk through the lower CapEx guidance relative to the previous guidance? - Management noted that the reduction was due to improved project optimization and cost efficiencies achieved by the teams [32][33] Question: What is the expected impact of the Horn Mountain waterflood project on sustaining production? - Management indicated that the project is expected to lower decline rates and improve reliability, contributing to sustaining production levels [41][42] Question: How sustainable are the cost savings achieved in 2025 for 2027? - Management suggested that the structural savings are expected to continue into 2027, with ongoing optimization efforts [53][57]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported consolidated net income of $90 million and EBITDA of $591 million [4] - The fourth quarter consolidated net loss was $116 million, with EBITDA of $51 million, impacted by accelerated depreciation and extended downtime at the fertilizer facility [4][6] - Adjusted EBITDA for the fourth quarter was $91 million, with adjusted losses per share of $0.80 [6] Business Segment Data and Key Metrics Changes - Petroleum segment generated EBITDA of $411 million for the full year, with adjusted EBITDA of $73 million for Q4 2025, up from $9 million in Q4 2024 due to higher crack spreads and increased throughput [4][6] - Fertilizer segment EBITDA was $211 million for the full year, with Q4 adjusted EBITDA of $20 million, down from $50 million in the prior year due to planned turnaround and startup issues [4][11] - Renewable segment reported a loss of $22 million for the full year, with breakeven adjusted EBITDA for Q4 2025, down from $9 million in Q4 2024 [4][10] Market Data and Key Metrics Changes - Combined total throughput for Q4 2025 was approximately 218,000 barrels per day, with throughput utilization at 97% of nameplate capacity [7] - Benchmark cracks for Q4 softened to an average of $22.70 per barrel, with realized margin adjusted for various liabilities at $9.92 per barrel, representing a 44% capture rate [8] - RINs prices declined approximately 18 cents per barrel from Q3 2025 levels, averaging $6.05 per barrel for Q4 [9] Company Strategy and Development Direction - The company aims to focus on safe and reliable operations, reevaluating commercial optimization opportunities to improve margin capture in the petroleum segment [18][19] - Plans to expand asset footprint with a disciplined approach to capital allocation, targeting growth in both refining and fertilizer segments [20] - The company is optimistic about refining sector fundamentals, anticipating steady demand growth for refined products and a slowdown in global refining capacity additions [21] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the refining margins despite RINs pressures, expecting continued support from EPA actions regarding SRE petitions [22] - In the fertilizer segment, strong demand for nitrogen fertilizers is anticipated due to projected corn planting increases [23] - The company is optimistic about the Midcontinent market dynamics with new pipeline developments expected to enhance operational opportunities [49] Other Important Information - Cash flow from operations for Q4 was breakeven, with free cash flow usage of $55 million [12] - Total consolidated capital spending for 2025 was $197 million, with an estimated $200 million-$240 million for 2026 [13] - The company completed a $1 billion senior notes offering to extend debt maturity profiles and improve financial flexibility [14][15] Q&A Session Summary Question: Expansion plans and asset acquisition strategy - The company is looking for proactive engagement in M&A discussions, focusing on both refining and fertilizer sectors while maintaining financial discipline [26][27] Question: Dividend return expectations - Management indicated that a clear path to further debt reduction is necessary before considering a modest dividend return, emphasizing sustainability in any future dividend [30][31][32] Question: Ramping up WCS runs at Coffeyville refinery - The company is increasing WCS processing due to favorable market conditions and upgraded facility capabilities, aiming for throughput of 20,000 barrels per day [36][37] Question: RIN prices and blending strategies - Management acknowledged rising RIN prices and is exploring options to blend more barrels and acquire additional blending capacity to mitigate exposure [39][40][41] Question: Capture rates and pipeline projects - The company is optimistic about improving capture rates and sees potential benefits from new pipeline projects enhancing market dynamics in the Midcontinent [45][48]

Financial Data and Key Metrics Changes - The company achieved a record quarterly leasing volume of nearly 4 million sq ft with a weighted average rent roll-up of 25.7%, marking the fifth consecutive quarter of double-digit rent growth [5][10] - Normalized FFO grew 113% year-over-year, reaching $18.9 million or $0.29 per share, which was at the high end of guidance [5][13] - Same property cash basis NOI increased by 5.2% year-over-year, totaling $85.7 million [5][13] - Total shareholder return exceeded 55% in 2025, ranking the company third among all U.S. REITs [5] Business Line Data and Key Metrics Changes - The company completed 42 new and renewal leases and two rent resets, totaling 7.3 million sq ft during 2025 [7] - Notable lease renewals included Amazon for 2.3 million sq ft with a roll-up in rent of 26.8% and Restoration Hardware for 1.2 million sq ft with a roll-up of 29% [10][11] - The tenant retention rate was reported at 96% for the quarter [10] Market Data and Key Metrics Changes - Consolidated occupancy at year-end was 94.5%, a 40 basis point increase from the previous quarter [7] - The company’s portfolio includes 409 properties across 39 states, totaling approximately 60 million sq ft, with a weighted average lease term of seven years [6] Company Strategy and Development Direction - The company is focused on leasing priorities, particularly a 2.2 million sq ft land parcel in Hawaii and a 535,000 sq ft property in Indianapolis [9] - The company aims to generate organic cash flow growth and reduce leverage, which has improved from 12.4x to 11.8x over the last year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and momentum, positioning the company well for 2026 [9][16] - The company noted that while construction has slowed, tenant retention remains strong, and there is no significant concern regarding competing supply in core markets [45] Other Important Information - The company successfully refinanced $1.2 billion of floating rate debt into fixed rate debt, resulting in annual cash savings of over $8 million [6] - The annualized dividend was increased from $0.04 to $0.20 per share [6] Q&A Session Summary Question: What is the non-cash interest amount for the quarter? - The non-cash interest amount for the quarter is $4.5 million [20] Question: Can you provide an update on another asset that was under contract for sale? - The property was under LOI for about $50 million, but the tenant preferred to engage in a renewal discussion instead of purchasing [21] Question: Are there any known move-outs we need to be aware of? - There are no material move-outs at this point, and progress is being made on expirations for 2026 and 2027 [22] Question: Are there any changes in the marketing process for the Indianapolis and Hawaii vacancies? - Progress is being made in Indianapolis, with lease comments currently being exchanged [24] - In Hawaii, discussions are ongoing, but the complexity of the parcel presents timing delays [25] Question: How did interest expense change from Q4 to Q1? - The interest expense is forecasted to be $61.5 million for Q1, influenced by the number of days in the quarter [26] Question: What is the thought process around refinancing the Monmouth JV loan? - The company is actively evaluating refinance opportunities and has flexibility due to the extension option [42]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1 billion, operating cash flow of $705 million, and earnings of $466 million, representing increases of 43%, 33%, and 40% respectively compared to 2024 [5] - Adjusted net income reached a record $510 million, a 47% increase over 2024 [5][6] - The adjusted EBITDA margin was maintained at 82% for the year, supported by strong gold prices and stable cash G&A [6] Business Line Data and Key Metrics Changes - Gold contributed 78% of total revenue for the year, with significant revenue growth from the stream segment, which increased over 110% year-over-year to $265 million [11][19] - Royalty revenue for the quarter was up 42% year-over-year to $111 million, driven by strong performance from the Cortez CC zone and Peñasquito [11] Market Data and Key Metrics Changes - Metal prices significantly impacted revenue, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [19] - The company expects its revenue mix to remain consistent post-acquisition, maintaining the highest gold revenue percentage among large-cap peers in the royalty and streaming sector [19] Company Strategy and Development Direction - The company made several acquisitions, including Sandstorm Gold and Horizon Copper, to diversify and strengthen its portfolio [7][8] - The integration of the Sandstorm and Horizon portfolios is largely complete, with a focus on rationalizing and simplifying operations [9] - The company plans to host an investor day on March 31st to provide context for 2025 activities and guidance for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position following a record year, emphasizing the strength of the underlying portfolio [32] - The company anticipates a steady state moving forward, with expectations for continued strong performance in 2026 [27][28] Other Important Information - The company paid over $118 million in dividends to shareholders and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual dividend increase [6] - The company ended the year with outstanding debt of $900 million, with plans to reduce this to $725 million early in 2026 [28][29] Q&A Session Summary Question: What does the deal pipeline look like currently? - Management indicated that the deal pipeline remains strong, with ongoing activity despite market volatility [34][36] Question: Regarding Hod Maden, what is the company's involvement in discussions about the construction decision? - Management confirmed satisfaction with the technical report and stated that they are involved in discussions with SSR regarding development strategy and spending [43][46] Question: Can you elaborate on the mechanics behind the potential conversion of the Mara option into a gold stream? - The company can convert a small royalty into a 20% gold stream by investing approximately $225 million over the construction period [49][50] Question: What is the company's strategy regarding debt repayment versus new investments? - Management emphasized that finding good investments remains a priority, and they are not prioritizing debt repayment over new opportunities [85][88] Question: Why doesn't the company provide preliminary royalty revenue expectations? - The company explained that information rights limit their ability to provide estimates until after operators report their results [60][62]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1 billion, operating cash flow of $705 million, and earnings of $466 million, representing increases of 43%, 33%, and 40% respectively compared to 2024 [5] - Adjusted net income reached a record $510 million, a 47% increase over 2024 [5][6] - The adjusted EBITDA margin was maintained at 82% for the year, supported by strong gold prices and stable cash G&A [6] Business Line Data and Key Metrics Changes - Gold contributed 78% of total revenue for the year, with significant revenue growth from the stream segment, which increased over 110% year-over-year [6][11] - Royalty revenue for the fourth quarter was up 42% year-over-year to $111 million, driven by strong performance from the Cortez CC zone in Peñasquito [11] Market Data and Key Metrics Changes - Metal prices significantly impacted revenue, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [19] - The company expects its revenue mix to remain consistent post-acquisition, maintaining the highest gold revenue percentage among large-cap peers in the royalty and streaming sector [19] Company Strategy and Development Direction - The company completed several acquisitions, including Sandstorm Gold and Horizon Copper, to diversify and strengthen its portfolio [7][8] - The integration of the acquired portfolios is largely complete, with a focus on rationalizing and simplifying operations to enhance value [9] - The company plans to host an investor day to provide context for 2025 activities and guidance for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position following a record year, emphasizing the strength of the underlying portfolio [32] - The company anticipates a steady state moving forward, with expectations for continued strong performance in 2026 [28] Other Important Information - The company paid over $118 million in dividends and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual dividend increase [6] - The company ended the year with outstanding debt of $900 million, with plans to reduce it further to $725 million early in 2026 [29] Q&A Session Summary Question: What does the deal pipeline look like currently? - Management indicated that the deal pipeline remains strong, with ongoing activity despite market volatility [34][36] Question: Regarding Hod Maden, were the recent technical report numbers satisfactory? - Management expressed satisfaction with the technical report and noted that a delay in construction decisions could provide more time for strategic planning [43][46] Question: Can you elaborate on the potential conversion of the Mara option into a gold stream? - The company can convert a small royalty into a 20% gold stream by investing approximately $225 million during the construction period [49][50] Question: What drove the outperformance in other metals revenue? - The outperformance was primarily attributed to higher metal prices [51][53] Question: What is the strategy for the Pueblo Viejo silver stream? - Management does not perceive a lack of incentive for the operator to prioritize silver recovery and believes ongoing efforts are being made to improve both gold and silver recovery [57][80] Question: What is the company's focus regarding transaction sizes? - The company is still focused on transactions in the $100 million to $500 million range, while remaining open to larger opportunities if they arise [82][84]