Perella Weinberg Partners (PWP) Q1 2025 Earnings Call May 02, 2025 09:00 AM ET Company Participants Taylor Reinhardt - Executive Director, Head of Communications & MarketingAndrew Bednar - CEO, Partner of New York & DirectorAlexandra Gottschalk - MD, Partner & CFODevin Ryan - Director of Financial Technology ResearchBrendan O'Brien - Senior Vice President Conference Call Participants James Yaro - Analyst Operator Please be advised that today's call is being recorded. I would now like to turn the call over t ...

Financial Data and Key Metrics Changes - The company reported first quarter 2025 earnings of $1.07 per share, an increase from adjusted earnings of $1.02 per share in the first quarter of 2024 [6][21] - The expected diluted earnings per share for 2025 is projected to be in the range of $4.85 to $5.05 [7][26] Business Line Data and Key Metrics Changes - Infrastructure investments continue to strengthen the energy grid and provide more energy resources, driving earnings growth across the company [21] - The economic outlook for service territories remains strong, with a 3% increase in total weather-normalized retail sales over the trailing twelve months ended in March [22] Market Data and Key Metrics Changes - The Missouri Public Service Commission approved a $355 million annual revenue increase, marking the fifth consecutive settlement of electric revenue requirements in the state [24] - The company expects approximately 5.5% compound annual sales growth in Missouri from 2025 through 2029, primarily driven by increasing data center demand [13] Company Strategy and Development Direction - The company remains committed to its strategic plan, focusing on delivering reliable, affordable energy while making prudent investments in energy infrastructure [5][6] - A robust pipeline of investment opportunities exceeding $63 billion is anticipated to strengthen the energy grid and support economic growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance range and expects to deliver at the midpoint or higher [26] - The company is optimistic about the legislative environment in Missouri, which supports significant investments in utility infrastructure [10] Other Important Information - The company has successfully prevented over 114,000 customer outages through smart technology investments, equating to more than 30 million outage minutes avoided [11] - The company plans to file for approval of a proposed rate structure for large load customers in the second quarter [15] Q&A Session Summary Question: Clarification on the 2.3 gigawatts referenced - Management clarified that the incremental change is from 1.8 to 2.3 gigawatts, with an additional 500 megawatts signed under construction agreements related to data centers [39] Question: Need for new generation due to load growth - Management expressed confidence that the current generation plans would be adequate to serve the 2.3 gigawatts of load growth anticipated [44] Question: Impact of potential changes to tax credits - Management highlighted the importance of maintaining tax credits for building generation resources affordably, emphasizing that these credits are crucial for customer rates [48] Question: Exposure to tariffs in the capital plan - Management estimated that about 2% of the overall capital plan could be exposed to tariffs, primarily related to battery projects, but noted that this is manageable [86][87] Question: Cost estimate for the Castle Bluff plant - Management confirmed that the cost estimate for the Castle Bluff 800 megawatt plant remains at $900 million [92] Question: EPS growth expectations - Management affirmed expectations for EPS growth to be at or above the midpoint of the 6% to 8% CAGR range for 2025 to 2029 [100]

Reinsurance Group of America (RGA) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Jeff Hopson - SVP - Investor RelationsTony Cheng - President & CEOAxel André - EVP & CFOJonathan Porter - EVP & Global Chief Risk OfficerElyse Greenspan - Managing DirectorLeslie Barbi - Executive VP & Chief Investment OfficerRyan Krueger - Managing DirectorThomas Gallagher - Senior Managing DirectorWilma Burdis - Director Conference Call Participants Suneet Kamath - Senior Research AnalystJohn Barnidge - ...

Financial Data and Key Metrics Changes - The company is pleased with its performance, reporting a 30% increase in oil production and a 20% increase in total production for 2025 [5] - The first quarter oil cut was 53%, with expectations for a modest increase in the second quarter, but no changes to the full-year guidance [7][10] Business Line Data and Key Metrics Changes - The company is focusing 90% of its program on the lower cube in the Uinta Basin, with strong confidence in the forecast from this zone [18][19] - The remaining 10% is focused on the upper cube, with positive results expected from the Douglas Creek area [19] Market Data and Key Metrics Changes - The company typically sells about 15% to 20% of its crude oil to Salt Lake City refineries, which has lower transportation costs [42] - The balance of oil is transported by rail, with efforts to maximize sales to local refineries [42] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to capital allocation, prioritizing debt reduction until leverage returns to a one-time area [12][13] - There are no specific plans for 2026 yet, but multiple scenarios are being modeled based on commodity prices [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Uinta Basin assets, noting that they have exceeded original expectations [36] - The company is comfortable with its current plans at a price of $55 per barrel, generating significant free cash flow [52] Other Important Information - The company has filed its first quarter 10-Q and is committed to transparency regarding forward-looking statements and non-GAAP measures [3] - The company is not providing specific guidance on rig plans at this time, focusing instead on production timelines [27] Q&A Session Summary Question: Clarification on oil production shape for 2025 - Management indicated no material changes to the full-year plan, with a modest increase in oil cut expected from Q1 to Q2 [8][10] Question: Cash returns and share repurchases - Management confirmed prioritization of debt reduction over share repurchases until leverage metrics improve [12][13] Question: Uinta Basin productivity expectations - Management stated that 90% of the program is focused on the lower cube, with confidence in achieving underwritten assumptions [18] Question: LOE impacts and cost expectations - Management noted that some cost increases may be one-time in nature, while others could persist [21] Question: Rig count and operational plans - Management is not providing specific timelines for rig drops but will adjust based on program needs [27] Question: Capital allocation between regions - Management indicated that returns between regions have not changed significantly, and no immediate changes to capital allocation are expected [32] Question: Oil sales to local refineries - Management confirmed that 15% to 20% of crude is sold to local refineries, optimizing transportation costs [42] Question: CapEx plans for the year - Management expects a similar run rate in the second half of the year as in the first half, with no material changes to the CapEx guidance [44] Question: Operational plans for 2026 - Management stated that no specific plans for 2026 are in place, but multiple scenarios are being considered based on market conditions [50][51]

Apple Hospitality REIT (APLE) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Justin Knight - CEO & DirectorLiz Perkins - Senior VP & CFOAri Klein - Director - Equity ResearchJay Kornreich - VP - Equity ResearchFloris van Dijkum - Managing DirectorMichael Herring - Senior Associate - Equity ResearchJack Armstrong - Equity Research Associate Conference Call Participants Michael Bellisario - Senior Research AnalystAustin Wurschmidt - Senior Equity Research Analyst Justin Knight profile of ...

Financial Data and Key Metrics Changes - The company reported a first quarter FFO of $0.74 per share, with same property net operating income increasing by 2% on a cash basis [4][29] - The midpoint of the full-year guidance has been raised to $2.79 per share, reflecting a 3.7% growth rate over the previous year [5][36] - Same property GAAP NOI grew by 4% and cash NOI grew by 2% compared to the previous year [29][32] Business Line Data and Key Metrics Changes - The portfolio was 90% occupied at the end of the first quarter, up from 88.4% a year earlier [8] - Leasing activity included 539,000 square feet of leases completed during the quarter, with a 3.2% cash rent roll-up [5][18] - Average net rent for the quarter was $35.87, with average net effective rent at $25.06 [20][21] Market Data and Key Metrics Changes - The existing supply of office buildings is declining, with JLL reporting a removal of 10 million square feet from the US office inventory since 2024 [6] - Leasing volume over the past twelve months reflects 89% of typical pre-pandemic activity, indicating a recovery in demand [7] - The broader Atlanta office market showed positive trends, with a strong leasing activity of 213,000 square feet [22] Company Strategy and Development Direction - The company is focused on both internal and external growth opportunities, prioritizing investments in lifestyle office properties in target Sunbelt markets [7][12] - The strategy includes maintaining a best-in-class balance sheet while capitalizing on market disruptions to find compelling investment opportunities [11][15] - The company aims to enhance geographic diversification over the long term, with potential investments in markets like Dallas, Charlotte, and Nashville [95] Management's Comments on Operating Environment and Future Outlook - Management noted that the office market is rebalancing, with a shortage of premium space expected soon [14] - There is optimism regarding the leasing market, with expectations of improved rental rates as demand increases and supply tightens [41][66] - The company remains well-positioned to navigate macro uncertainties due to its strong balance sheet and market presence [10][36] Other Important Information - The company completed three significant transactions during the first quarter, including the payoff of a $138 million mortgage loan [34] - The liquidity position is strong, with only $39 million outstanding on a $1 billion credit facility [35] - The company anticipates potential capital deployment into compelling investment opportunities despite macro uncertainties [37] Q&A Session Summary Question: Will the company see rent spikes due to robust demand and declining supply? - Management believes that improving demand alongside declining supply will eventually lead to positive improvements in leasing market and rental rates [39][41] Question: Is there a pipeline of acquisition opportunities? - Management noted an increase in owners exploring sales, indicating a greater volume of opportunities, although there is a bid-ask spread due to market disruptions [43][46] Question: What industries are driving leasing activity? - The leasing pipeline is diversified, with strong presence from legal, technology, and financial services sectors, particularly in Atlanta and Charlotte [52][53] Question: How is the company approaching new development? - Management evaluates new development opportunities against acquisition opportunities, considering the risk-adjusted return [55][56] Question: What is the impact of office removals on the market? - The company sees broad-based removals across markets driven by obsolete space, which is being repurposed or demolished [61][62] Question: Are there any notable trends in leasing concessions? - Management indicated that concessions are trending down, with lower tenant improvement allowances and free rent due to the quality of the portfolio [100][101]

Financial Data and Key Metrics Changes - Total operating revenues decreased by 3% year over year, impacted by divestitures and declines in commercial and wholesale revenue, as well as decreases in residential video and voice connections [44] - Free cash flow for Q1 2025 was $79 million, an increase of $18 million compared to the same quarter last year [13][19] - Cash expenses increased by 6% or $11 million compared to the prior year, with $4 million of this increase attributed to a cumulative non-cash adjustment to stock-based compensation [44] Business Line Data and Key Metrics Changes - Postpaid handset results showed year-over-year improvements, while third-party tower revenues increased by 6% due to new co-locations and escalators on renewed leases [12] - Fiber service addresses grew by 6% year over year, with 14,000 new addresses delivered in the quarter [33][42] - Residential broadband net additions were 2,800, with 8,300 coming from fiber markets, lower than prior quarters due to timing of service address delivery [34][38] Market Data and Key Metrics Changes - The company continues to face aggressive promotional competition in the wireless industry, with competitors offering multi-year price locks and aggressive pricing [14] - Demand for higher broadband speeds remains strong, with 82% of residential broadband customers taking 100 megabits or higher and 24% taking one gig or higher at the end of the quarter [42] Company Strategy and Development Direction - The company is focused on completing the proposed transaction with T-Mobile, which is expected to close in mid-2025, and is preparing for a smooth transition [9][16] - A special dividend to shareholders is anticipated following the closing of the T-Mobile transaction, with proceeds expected to be used to repay outstanding bank debt [10][18] - The fiber program has expanded the company's footprint by over 30% in the last three years, with further growth opportunities identified [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainties in the broader economy and markets but remains optimistic about the long-term potential of the tower business and fiber expansion [7][12] - The company is focused on cost optimization and expects capital expenditures to decline in 2025 as planned 5G coverage builds are largely completed [13][46] - Management expressed confidence in achieving $100 million in annual cost savings by the end of 2028 through transformation efforts [35][72] Other Important Information - The company does not plan to redeem Series UU and Series BV preferred stock, viewing them as foundational capital for future operations [10][68] - The expected cash income tax obligations related to the T-Mobile transaction are estimated to be between $225 million and $325 million [28][30] Q&A Session Summary Question: Timeline for designated entity spectrum approval - The timing is uncertain and dependent on regulatory approval by the FCC, but there is optimism for a positive outcome [52][54] Question: Free cash flow run rate - The $79 million in free cash flow is not necessarily a run rate, but capital expenditures are expected to be down in 2025, which is positive for free cash flow [55] Question: Debt exchange offer impact - The debt exchange offer will be launched about 50 days before the anticipated close, and the amount of debt exchanged will impact transaction proceeds [56][110] Question: Fiber net adds and sales efforts - Fiber net additions were lower due to timing of address delivery, but management expects improvements as construction activity ramps up [60][62] Question: Divestiture strategy and criteria - The company is focused on divesting non-core assets, particularly isolated copper markets without an economic path to fiber, ensuring that net proceeds exceed the present value of cash flows from continued operations [95][96]

Financial Data and Key Metrics Changes - Adjusted funds from operations (AFFO) for Q1 2025 were $0.75 per share, and funds available for distribution (FAD) were $0.71 per share, reflecting revenue and EBITDA growth, with leverage reduced to 3.7x debt to EBITDA [5][12] - Revenue for Q1 2025 was $277 million, up from $243 million in Q1 2024, primarily due to new investments and operator restructurings [9] - Net income for Q1 2025 was $112 million or $0.33 per share, compared to $69 million or $0.27 per share in Q1 2024 [10] Business Line Data and Key Metrics Changes - The percentage of private pay and other revenue increased from 8% ten years ago to 39% today, with expectations for continued growth in this area [8] - Maplewood paid $15.6 million in rent in Q1 2025, an increase of $3.3 million from Q4 2024, and occupancy for the Maplewood portfolio reached 94% as of April 2025 [20] Market Data and Key Metrics Changes - The UK market accounted for approximately 93% of total new investments in Q1 2025, with a strong pipeline of opportunities [23][25] - The trailing twelve-month operator EBITDAR coverage for the core portfolio increased to 1.51x as of December 31, 2024, indicating improved performance [18] Company Strategy and Development Direction - The company is focused on disciplined and sustainable investment decisions while expanding its operator base in both the US and UK markets [18][24] - Omega is looking to opportunistically fund investments with equity, positioning itself for outsized adjusted FFO growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability of Genesis to continue paying rent despite recent liquidity issues, citing strong coverage metrics [6][33] - The company remains optimistic about the overall coverage and fundamentals improving in the healthcare sector, despite potential Medicaid cuts [28][29] Other Important Information - The company raised and narrowed its full-year adjusted FFO guidance to a range between $2.95 to $3.01 per share [14] - The company has a strong balance sheet with $368 million in cash and full borrowing capacity of its $1.45 billion credit facility [12] Q&A Session Summary Question: Details on Genesis and its rent payment issues - Management indicated that Genesis's recent rent payment issues were a one-time event related to their ABL lender tightening availability, and they expect continued payments moving forward [31][33] Question: Insights on the UK portfolio acquisition - The UK acquisition was facilitated by a strong platform and relationships with multiple operators, allowing for a quick and efficient transaction [39][41] Question: Impact of immigration on labor availability - No significant impact on labor availability or wage pressures has been observed at this time [45] Question: Genesis's operating fundamentals - Coverage metrics for Genesis have improved, with the portfolio consistently above 1.5 times [47] Question: Provider tax and Medicaid changes - The greatest risk to traditional Medicaid is provider taxes, which may see slight reductions, but the overall impact remains uncertain [76][78] Question: Disposition strategy and market opportunities - The company executed dispositions to redeploy capital effectively, taking advantage of attractive offers for non-core assets [82][84]

EOG Resources (EOG) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Pearce Hammond - VP - Investor RelationsEzra Yacob - CEO & ChairmanAnn Janssen - Executive VP & CFOJeff Leitzell - EVP & COOScott Hanold - Managing Director - Energy ResearchLeo Mariani - MD & Equity ResearchDerrick Whitfield - Managing DirectorScott Gruber - Director - Oilfield Services & Equipment ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchKeith Trasko - Senior Vice President of Exploration ...

Financial Data and Key Metrics Changes - In 2024, the company generated $11.7 billion in operating cash flow and $4.9 billion in free cash flow before working capital [6] - The company achieved a record year-end proved oil and gas reserves of 4.6 billion BOE, a 15% increase from 2023 [5] - The company paid approximately $800 million in combined dividends and approved a 22% dividend increase in early 2024, followed by an additional 9% increase early this year [6] Business Line Data and Key Metrics Changes - The company reported record US oil production of 571,000 barrels per day from its Permian, Rockies, and Gulf of America assets [5] - Combined production from ongoing operations reached 1.3 million BOE per day, with significant contributions from both US and international assets [5] Market Data and Key Metrics Changes - The company noted that ongoing negotiations and macroeconomic factors, including tariffs and geopolitical events, have impacted commodity prices and created volatility in financial markets [29][32] - The company is focused on managing its operations efficiently in any price environment, with a strategy to strengthen its balance sheet through deleveraging [30] Company Strategy and Development Direction - The company closed a strategic acquisition of Crown Rock, enhancing its access to high-quality unconventional domestic oil assets [4] - The company is advancing major projects, including the commissioning of its first commercial-scale direct air capture facility, Stratos, expected to start in 2025 [4][7] - The company aims to integrate sustainability throughout its operations and has set emission reduction targets [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic focus and operational performance, positioning it well to deliver long-term value despite near-term pressures from commodity prices [32] - The company is optimistic about the growth prospects for global oil demand beyond 2030, which is seen as positive for its operations [40] Other Important Information - The company achieved its best-ever safety performance record in 2024, reflecting a commitment to safety across all segments [6] - The board is committed to ongoing refreshment of its membership to align with the evolving needs of the company [19] Q&A Session Summary Question: Are there any plans for board refreshment? - The board has committed to ongoing refreshment, with almost half of the independent directors beginning their service within the past five years [19] Question: How does the executive compensation program align with pay for performance? - A substantial portion of named executive officer compensation is performance-based, with significant at-risk pay for executives [24] Question: What is the potential impact of tariffs and the macro environment on Oxy? - The company is focused on what it can control, with ongoing assessments of the impact of tariffs and geopolitical events on operations and financial performance [29] Question: How does Oxy approach diversity and inclusion? - Oxy maintains a culture of inclusion and belonging, which is essential for recruiting and retaining talented employees [33] Question: What are Oxy's sustainability efforts? - Oxy has implemented key emission reduction targets and has sustained zero routine flaring in its US operations [36] Question: What are the growth prospects for the different commodities produced? - Oxy is well-positioned with a diversified portfolio and expects growth in oil and gas operations, particularly in the Permian Basin [40]