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 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 - 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 - 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 ...

The AES (AES) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Speaker0 Hello, everybody, and welcome to the AES Corporation Q1 twenty twenty five Financial Review Call. My name is Emily, and I'll be moderating your call today. After the presentation, you will have the opportunity to ask any questions. I will now hand the call over to Susan Harcourt, Vice President of Investor Relations to begin. Susan, please go ahead. Speaker1 Thank you, operator. Good morning and welcome to our first quarter twenty twenty ...